Document:

Exhibit 10.1

 

CREDIT AGREEMENT

 

dated as of

 

August 27, 2013

 

among

 

EPIQ SYSTEMS, INC.

as Borrower,

 

THE OTHER CREDIT PARTIES PARTY HERETO,

 

THE LENDERS PARTY HERETO,

 

and

 

KEYBANK NATIONAL ASSOCIATION,

as the LC Issuer, Swing Line Lender and Administrative Agent

 

KEYBANK NATIONAL ASSOCIATION,

PNC BANK, NATIONAL ASSOCIATION,

and

SILICON VALLEY BANK,

as Joint Lead Arrangers and Joint Book Runners

 

SILICON VALLEY BANK,

as Syndication Agent

 

PNC BANK, NATIONAL ASSOCIATION,

as Documentation Agent

 

 

TABLE OF CONTENTS

 

	
ARTICLE   I DEFINITIONS AND TERMS
    	
1
    
	
Section   1.01
    	
Certain Defined Terms
    	
1
    
	
Section   1.02
    	
Computation of Time Periods
    	
33
    
	
Section   1.03
    	
Accounting Terms
    	
33
    
	
Section   1.04
    	
Terms Generally
    	
34
    
	
Section   1.05
    	
Times of Day; Deliveries
    	
34
    
	
Section   1.06
    	
Letter of Credit Amounts
    	
34
    
	
 
    	
 
    	
 
    
	
ARTICLE   II THE TERMS OF THE CREDIT FACILITIES
    	
34
    
	
Section   2.01
    	
Establishment of the Credit Facilities
    	
34
    
	
Section   2.02
    	
Revolving Loans and Term Loans
    	
35
    
	
Section   2.03
    	
[Reserved]
    	
35
    
	
Section   2.04
    	
Swing Line
    	
35
    
	
Section   2.05
    	
Letters of Credit
    	
37
    
	
Section   2.06
    	
Notice of Borrowing
    	
42
    
	
Section   2.07
    	
Funding Obligations; Disbursement   of Funds
    	
43
    
	
Section   2.08
    	
Evidence of Obligations
    	
44
    
	
Section   2.09
    	
Interest; Default Rate
    	
45
    
	
Section   2.10
    	
Conversion and Continuation of   Loans
    	
47
    
	
Section   2.11
    	
Fees
    	
47
    
	
Section   2.12
    	
Termination and Reduction of   Commitments
    	
49
    
	
Section   2.13
    	
Voluntary, Scheduled and   Mandatory Prepayments of Loans
    	
49
    
	
Section   2.14
    	
Method and Place of Payment
    	
53
    
	
Section   2.15
    	
Defaulting Lenders
    	
54
    
	
Section   2.16
    	
Cash Collateral for Credit   Support
    	
56
    
	
 
    	
 
    	
 
    
	
ARTICLE   III TAXES, YIELD PROTECTION AND ILLEGALITY
    	
57
    
	
Section   3.01
    	
Taxes
    	
57
    
	
Section   3.02
    	
Illegality
    	
61
    
	
Section   3.03
    	
Inability to Determine Rates
    	
61
    
	
Section   3.04
    	
Increased Costs; Reserves on   Eurodollar Rate Loans
    	
62
    
	
Section   3.05
    	
Compensation for Losses
    	
63
    
	
Section   3.06
    	
Mitigation Obligations;   Replacement of Lenders
    	
64
    
	
Section   3.07
    	
Survival
    	
64
    
	
 
    	
 
    	
 
    
	
ARTICLE   IV GUARANTY
    	
64
    
	
Section   4.01
    	
The Guaranty
    	
64
    
	
Section   4.02
    	
Obligations Unconditional
    	
65
    
	
Section   4.03
    	
Reinstatement
    	
66
    
	
Section   4.04
    	
Certain Additional Waivers
    	
66
    
	
Section   4.05
    	
Remedies
    	
66
    
	
Section   4.06
    	
Rights of Contribution
    	
66
    
	
Section   4.07
    	
Guarantee of Payment; Continuing   Guarantee
    	
66
    
	
Section   4.08
    	
Keepwell
    	
66
    
	
 
    	
 
    	
 
    
	
ARTICLE   V CONDITIONS PRECEDENT
    	
67
    
	
Section   5.01
    	
Conditions Precedent at Closing   Date
    	
67
    
	
Section   5.02
    	
Conditions Precedent to All   Credit Events
    	
70
    

 

i

 

	
ARTICLE   VI REPRESENTATIONS AND WARRANTIES
    	
71
    
	
Section   6.01
    	
Existence, Qualification and   Power
    	
71
    
	
Section   6.02
    	
Authorization; No Contravention
    	
71
    
	
Section   6.03
    	
Governmental Authorization; Other   Consents
    	
71
    
	
Section   6.04
    	
Binding Effect
    	
71
    
	
Section   6.05
    	
Financial Statements; No Material   Adverse Effect
    	
71
    
	
Section   6.06
    	
Litigation
    	
72
    
	
Section   6.07
    	
No Default
    	
72
    
	
Section   6.08
    	
Collateral Representations
    	
72
    
	
Section   6.09
    	
Environmental Compliance
    	
74
    
	
Section   6.10
    	
Insurance
    	
74
    
	
Section   6.11
    	
ERISA Compliance
    	
75
    
	
Section   6.12
    	
Taxes
    	
75
    
	
Section   6.13
    	
Subsidiaries
    	
75
    
	
Section   6.14
    	
Margin Regulations; Investment   Company Act
    	
76
    
	
Section   6.15
    	
Intellectual Property, etc.
    	
76
    
	
Section   6.16
    	
Disclosure
    	
76
    
	
Section   6.17
    	
Compliance with Laws
    	
77
    
	
Section   6.18
    	
Labor Matters
    	
77
    
	
Section   6.19
    	
Solvency
    	
77
    
	
Section   6.20
    	
Anti-Terrorism Law Compliance
    	
77
    
	
Section   6.21
    	
Collateral Documents
    	
77
    
	
Section   6.22
    	
Classification as Senior   Indebtedness
    	
78
    
	
 
    	
 
    	
 
    
	
ARTICLE   VII AFFIRMATIVE COVENANTS
    	
78
    
	
Section   7.01
    	
Reporting Requirements
    	
78
    
	
Section   7.02
    	
Books, Records and Inspections
    	
81
    
	
Section   7.03
    	
Insurance
    	
82
    
	
Section   7.04
    	
Payment of Taxes and Claims
    	
83
    
	
Section   7.05
    	
Corporate and other Entity   Franchises
    	
83
    
	
Section   7.06
    	
Compliance with Statutes, etc.
    	
83
    
	
Section   7.07
    	
Compliance with Environmental   Laws
    	
83
    
	
Section   7.08
    	
Additional Guarantors
    	
84
    
	
Section   7.09
    	
Pledged Assets
    	
84
    
	
Section   7.10
    	
Senior Debt
    	
85
    
	
Section   7.11
    	
Maintenance of Properties
    	
85
    
	
Section   7.12
    	
Further Assurances
    	
85
    
	
Section   7.13
    	
Use of Proceeds
    	
87
    
	
Section   7.14
    	
Interest Rate Hedging
    	
88
    
	
Section   7.15
    	
Maintenance of Ratings
    	
88
    
	
 
    	
 
    	
 
    
	
ARTICLE   VIII NEGATIVE COVENANTS
    	
88
    
	
Section   8.01
    	
Changes in Business
    	
88
    
	
Section   8.02
    	
Consolidation, Merger, Asset   Sales, etc.
    	
88
    
	
Section   8.03
    	
Liens
    	
90
    
	
Section   8.04
    	
Indebtedness
    	
92
    
	
Section   8.05
    	
Investments
    	
94
    
	
Section   8.06
    	
Restricted Payments
    	
97
    
	
Section   8.07
    	
Consolidated Total Net Leverage   Ratio
    	
98
    
	
Section   8.08
    	
Burdensome Agreements; Negative   Pledges; Etc.
    	
98
    
	
Section   8.09
    	
Transactions with Affiliates
    	
99
    
	
Section   8.10
    	
Anti-Terrorism Laws
    	
99
    

 

ii

 

	
Section   8.11
    	
Prepayment, Amendment of Junior   Indebtedness, Etc.
    	
99
    
	
Section   8.12
    	
[Reserved]
    	
100
    
	
Section   8.13
    	
Ownership of Subsidiaries
    	
100
    
	
Section   8.14
    	
Organizational Documents; Fiscal   Year
    	
100
    
	
Section   8.15
    	
[Reserved]
    	
100
    
	
Section   8.16
    	
Use of Proceeds
    	
100
    
	
 
    	
 
    	
 
    
	
ARTICLE   IX EVENTS OF DEFAULT
    	
100
    
	
Section   9.01
    	
Events of Default
    	
100
    
	
Section   9.02
    	
Remedies
    	
103
    
	
Section   9.03
    	
Application of Certain Payments   and Proceeds
    	
103
    
	
 
    	
 
    	
 
    
	
ARTICLE   X THE ADMINISTRATIVE AGENT
    	
105
    
	
Section   10.01
    	
Appointment
    	
105
    
	
Section   10.02
    	
Delegation of Duties
    	
105
    
	
Section   10.03
    	
Exculpatory Provisions
    	
105
    
	
Section   10.04
    	
Reliance by Administrative Agent
    	
106
    
	
Section   10.05
    	
Notice of Default
    	
106
    
	
Section   10.06
    	
Non-Reliance
    	
106
    
	
Section   10.07
    	
No Reliance on Administrative   Agent’s Customer Identification Program
    	
107
    
	
Section   10.08
    	
Patriot Act
    	
107
    
	
Section   10.09
    	
Indemnification
    	
107
    
	
Section   10.10
    	
The Administrative Agent in   Individual Capacity
    	
107
    
	
Section   10.11
    	
Successor Administrative Agent
    	
108
    
	
Section   10.12
    	
Other Agents
    	
109
    
	
Section   10.13
    	
Collateral and Guaranty Matters
    	
109
    
	
Section   10.14
    	
Secured Cash Management Banks and   Secured Hedge Banks
    	
110
    
	
Section   10.15
    	
Administrative Agent May File   Proofs of Claim
    	
110
    
	
 
    	
 
    	
 
    
	
ARTICLE   XI MISCELLANEOUS
    	
111
    
	
Section   11.01
    	
Payment of Expenses etc.
    	
111
    
	
Section   11.02
    	
Indemnification
    	
111
    
	
Section   11.03
    	
Right of Setoff
    	
112
    
	
Section   11.04
    	
Equalization
    	
112
    
	
Section   11.05
    	
Notices
    	
113
    
	
Section   11.06
    	
Successors and Assigns
    	
115
    
	
Section   11.07
    	
No Waiver; Remedies Cumulative;   Enforcement
    	
119
    
	
Section   11.08
    	
Governing Law; Submission to   Jurisdiction; Venue; Waiver of Jury Trial
    	
120
    
	
Section   11.09
    	
Counterparts
    	
121
    
	
Section   11.10
    	
Integration
    	
121
    
	
Section   11.11
    	
Headings Descriptive
    	
121
    
	
Section   11.12
    	
Amendment or Waiver
    	
121
    
	
Section   11.13
    	
Survival of Indemnities
    	
127
    
	
Section   11.14
    	
Domicile of Loans
    	
127
    
	
Section   11.15
    	
Confidentiality
    	
127
    
	
Section   11.16
    	
General Limitation of Liability
    	
128
    
	
Section   11.17
    	
No Duty
    	
128
    
	
Section   11.18
    	
Lenders and Agent Not Fiduciary   to Credit Parties, etc.
    	
128
    
	
Section   11.19
    	
Survival of Representations and   Warranties
    	
129
    
	
Section   11.20
    	
Severability
    	
129
    
	
Section   11.21
    	
Independence of Covenants
    	
129
    
	
Section   11.22
    	
Interest Rate Limitation
    	
129
    

 

iii

 

	
Section   11.23
    	
Payments Set Aside
    	
129
    
	
Section   11.24
    	
Subordination of Intercompany   Debt
    	
130
    
	
Section   11.25
    	
Patriot Act
    	
130
    
	
Section   11.26
    	
Electronic Execution of Documents
    	
130
    
	
Section   11.27
    	
Replacement of Lenders
    	
130
    

 

iv

 

EXHIBITS

 

	
Exhibit A-1
    	
Form of Revolving Facility Note
    	
 
    
	
Exhibit A-2
    	
Form Term Note
    	
 
    
	
Exhibit A-3
    	
Form of Swing Line Note
    	
 
    
	
Exhibit B-1
    	
Form of Notice of Borrowing
    	
 
    
	
Exhibit B-2
    	
Form of Notice of Continuation or Conversion
    	
 
    
	
Exhibit B-3
    	
Form of LC Request
    	
 
    
	
Exhibit C
    	
Form of Compliance Certificate
    	
 
    
	
Exhibit D
    	
Form of Closing Certificate
    	
 
    
	
Exhibit E
    	
Form of Assignment Agreement
    	
 
    
	
Exhibit F
    	
Form of Joinder Agreement
    	
 
    

 

SCHEDULES

 

	
Schedule 1
    	
Commitments and Applicable Percentages
    	
 
    
	
Schedule 2
    	
Guarantors
    	
 
    
	
Schedule 3
    	
Existing Letters of Credit
    	
 
    
	
Schedule 6.03
    	
Required Consents
    	
 
    
	
Schedule 6.06
    	
Litigation
    	
 
    
	
Schedule 6.08(b)
    	
Deposit and Securities Accounts
    	
 
    
	
Schedule 6.08(c)
    	
Owned Real Property
    	
 
    
	
Schedule 6.08(d)
    	
Leaseholds
    	
 
    
	
Schedule 6.08(e)
    	
Additional Equity Investments
    	
 
    
	
Schedule 6.08(f)
    	
Collateral Locations
    	
 
    
	
Schedule 6.08(g)
    	
Material Agreements
    	
 
    
	
Schedule 6.08(h)
    	
Documents, Instruments and Chattel Paper
    	
 
    
	
Schedule 6.08(i)
    	
Commercial Tort Claims and Letter of Credit Rights
    	
 
    
	
Schedule 6.08(j)
    	
States of Incorporation, Chief Executive Offices,   etc.
    	
 
    
	
Schedule 6.10
    	
Insurance
    	
 
    
	
Schedule 6.11(d)
    	
Pension Plans
    	
 
    
	
Schedule 6.13
    	
Subsidiaries
    	
 
    
	
Schedule 6.15
    	
Intellectual Property
    	
 
    
	
Schedule 6.21
    	
Filing Offices
    	
 
    
	
Schedule 7.12
    	
Other Post Closing Matters
    	
 
    
	
Schedule 8.03
    	
Existing Liens
    	
 
    
	
Schedule 8.04
    	
Existing Indebtedness
    	
 
    
	
Schedule 8.05
    	
Existing Investments
    	
 
    
	
Schedule 8.05(o)
    	
Permitted Foreign Subsidiary Loans, Guaranties and   Investments
    	
 
    
	
Schedule 8.09
    	
Transactions with Affiliates
    	
 
    

 

v

 

THIS CREDIT AGREEMENT (this “Agreement”) is entered into as of August 27, 2013, among the following:

 

(i)                                     EPIQ SYSTEMS, INC., a Missouri corporation (herein, together with its successors and assigns, the “Borrower”);

 

(ii)                                  each Subsidiary signatory hereto (herein, together with any other Subsidiary that becomes a party hereto by Joinder Agreement or otherwise after the date hereof, collectively, the “Subsidiary Guarantors” and, individually, “Subsidiary Guarantor”);

 

(iii)                               the lenders from time to time party hereto (herein, together with their respective successors and permitted assigns, collectively, the “Lenders” and, individually, “Lender”); and

 

(iv)                              KEYBANK NATIONAL ASSOCIATION, as Administrative Agent (as hereinafter defined), Swing Line Lender (as hereinafter defined) and LC Issuer (as hereafter defined).

 

RECITALS:

 

(1)                                 The Borrower has requested that the Lenders provide the Term Loans, the Revolving Loans and, directly or through participation, the Swing Loans and Letters of Credit; and

 

(2)                                 Subject to and upon the terms and conditions set forth herein, the Lenders, the Swing Line Lender and the LC Issuer are willing to extend credit and make available to the Borrower the Credit Facilities provided for herein for the foregoing purposes.

 

AGREEMENT:

 

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

 

ARTICLE I

 

DEFINITIONS AND TERMS

 

Section 1.01                                       Certain Defined Terms.  As used herein, the following terms shall have the meanings herein specified unless the context otherwise requires:

 

“Acquisition” means, with respect to any Person, any transaction or series of related transactions for the purpose of or resulting, directly or indirectly, in (a) the acquisition by such Person of (i) all or substantially all of the assets of another Person or (ii) any business or division of another Person, (b) the acquisition by such Person of more than of 50% of the Equity Interest of another Person, or (c) the acquisition by such Person of another Person by a merger, consolidation, amalgamation or any other combination with such Person.

 

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

 

“Administrative Questionnaire” means an administrative questionnaire in a form supplied 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 Parties” has the meaning specified in Section 11.05(e).

 

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

 

“Aggregate Credit Facility Exposure” means, at any time, the sum of (i) the Aggregate Revolving Facility Exposure at such time and (ii) the aggregate principal amount of the Term Loans outstanding at such time.

 

“Aggregate Revolving Facility Exposure” means, at any time, the sum of (i) the aggregate principal amounts of all Revolving Loans made by all Lenders and outstanding at such time, (ii) the aggregate amount of the LC Outstandings at such time and (iii) the aggregate principal amount of all Swing Loans outstanding at such time.

 

“Agreement” means this Credit Agreement, as the same may from time to time be amended, restated, supplemented or otherwise modified.

 

“Anti-Terrorism Laws” means any Laws relating to terrorism, trade sanctions programs and embargoes, import/export licensing, money laundering or bribery and any regulation, order or directive promulgated, issued or enforced pursuant to such Laws, in each case, as amended, supplemented or replaced from time to time.

 

“Applicable Margin” means:

 

(a)                                 For the purposes of calculating the interest rate applicable to the Term Loan, 2.75% per annum for Base Rate Loans, and (B) 3.75% per annum for Eurodollar Loans; and

 

(b)                                 For the purposes of calculating (i) the interest rate applicable to Revolving Loans, (ii) the Commitment Fee pursuant to Section 2.11(a), and (iii) the LC Fee applicable to outstanding Letters of Credit pursuant to Section 2.11(b):

 

(A)                               From the Closing Date through the date on which the Borrower delivers its audited consolidated financial statements and Compliance Certificate for the fiscal year ending December 31, 2013 pursuant to Section 7.01(a) and 7.01(c), respectively, (1) 2.50% per annum for Base Rate Loans, (2) 3.50% per annum for Eurodollar Loans and the LC Fee payable pursuant to Section 2.11(b) and (3) 0.50% per annum for the Commitment Fee payable pursuant to Section 2.11(a); and

 

(B)                               Thereafter, the applicable percentage per annum set forth below, determined by reference to the Consolidated Total Net Leverage Ratio as set forth on the most recent Compliance Certificate received by the Administrative Agent pursuant to Section 7.01(c):

 

	
Consolidated Total Net Leverage
   Ratio
    	
 
    	
Applicable Margin for
   Base Rate Loans
    	
 
    	
Applicable Margin for
   Eurodollar Loans and
   LC Fee under Section
   2.11(b)
    	
 
    	
Applicable Margin for
   Commitment Fee
   under Section 2.11(a)
    	
 
    
	
> 3.25 to 1.0
    	
 
    	
3.00
    	
%
    	
4.00
    	
%
    	
0.50
    	
%
    
	
> 3.25 to 1.0 but < 2.25 to 1.0
    	
 
    	
2.50
    	
%
    	
3.50
    	
%
    	
0.50
    	
%
    
	
< 2.25 to 1.0
    	
 
    	
2.00
    	
%
    	
3.00
    	
%
    	
0.375
    	
%
    

 

2

 

Changes in the Applicable Margin based upon changes in the Consolidated Total Net Leverage Ratio shall become effective on the third Business Day following the date that the required consolidated financial statements are delivered to the Administrative Agent pursuant to Section 7.01(a) or Section 7.01(b), as applicable, accompanied by a Compliance Certificate in accordance with Section 7.01(c), demonstrating the computation of the Consolidated Total Net Leverage Ratio.  Notwithstanding the foregoing provisions, if the Borrower has failed to timely deliver its consolidated financial statements referred to in Section 7.01(a) or Section 7.01(b), accompanied by a Compliance Certificate in accordance with Section 7.01(c), and such failure has continued for five Business Days, the Applicable Margin at such time shall be the highest percentage indicated therefor in the above matrix unless waived by the Administrative Agent and the Required Lenders, regardless of the Consolidated Total Net Leverage Ratio at such time (provided that the Applicable Margin shall be determined based on the Consolidated Total Net Leverage Ratio at and after such financial statements and Compliance Certificate are delivered to the Administrative Agent and the Lenders).  The above matrix does not modify or waive, in any respect, any rights of the Administrative Agent and the Lenders to charge any default rate of interest in accordance with the terms hereof or any of the other rights and remedies of the Administrative Agent and the Lenders hereunder.  Notwithstanding anything to the contrary contained herein, the determination of the Applicable Margin for any period shall be subject to the provisions of Section 2.09(h).

 

“Applicable Percentage” means as to each Lender (a) with respect to such Lender’s Revolving Commitment at any time (subject to adjustment as provided in Section 2.15(a)(iv), the percentage of the Total Revolving Commitment represented by such Lender’s Revolving Commitment at such time; provided that if the Total Revolving Commitment has been terminated or if the Total Revolving Commitment has expired, then the Applicable Percentage of each Lender shall be determined based on the Applicable Percentage of such Lender most recently in effect, giving effect to any subsequent assignments and (b) with respect to such Lender’s outstanding Term Loans at any time, the percentage of the total aggregate principal amount of the Term Loan represented by the Term Loans held by such Lender at such time.  The initial Applicable Percentage of each Lender in respect of each Credit Facility is set forth opposite the name of such Lender on Schedule 1 or in the Assignment Agreement pursuant to which such Lender becomes a party hereto, as applicable.

 

“Approved Bank” has the meaning provided in clause (b) of the definition of “Cash Equivalents.”

 

“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.

 

“Asset Sale” means, with respect to any Person, the sale, lease, transfer or other disposition by such Person (including by means of a Sale and Leaseback Transaction, and by means of mergers, consolidations, amalgamations and liquidations of the Borrower or any Subsidiary) of any or all of the assets or property of such Person (including, without limitation, the Equity Interests of any Subsidiary of such Person); provided that the term Asset Sale shall not include any Equity Issuance.

 

“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 Agreement” means an Assignment and Assumption Agreement substantially in the form of Exhibit E.

 

3

 

“Attributable Indebtedness” means, with respect to any Person on any date, (a) in respect of any Capital Lease, the capitalized amount thereof that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP, (b) in respect of any Synthetic Lease, the capitalized amount of the remaining lease payments under the relevant lease that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if such lease were accounted for as a Capital Lease or (c) in respect of any Securitization Transaction, the outstanding principal amount of such financing, after taking into account reserve accounts and making appropriate adjustments, determined by the Administrative Agent in its reasonable judgment.

 

“Audited Financial Statements” means the audited consolidated balance sheet of the Borrower and its Subsidiaries for the fiscal year ended December 31, 2012 and the related consolidated statements of income or operations, shareholders’ equity and cash flows for such fiscal year of the Borrower and its Subsidiaries, including the notes thereto.

 

“Authorized Officer” means, with respect to a Credit Party, any of the following officers of such Credit Party: the Chairman, the President, the Senior Vice President of Finance, the Chief Executive Officer, the Chief Financial Officer or the Treasurer, or, in the case of any of the foregoing, such other Person as is authorized in writing to act on behalf of such Credit Party and is reasonably acceptable to the Administrative Agent.  Unless otherwise qualified, all references herein to an Authorized Officer shall refer to an Authorized Officer of the Borrower.

 

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

 

“Base Rate” means, for any day, a fluctuating interest rate per annum as shall be in effect from time to time which rate per annum shall at all times be equal to the highest of (i) the rate of interest established by KeyBank, from time to time, as its “prime rate” (or successor rate) whether or not publicly announced, which interest rate may or may not be the lowest rate charged by it for commercial loans or other extensions of credit, (ii) the Federal Funds Effective Rate in effect on such date, determined one Business Day in arrears, plus 1⁄2 of 1% and (iii) except during any period of time in which a notice delivered to the Borrower pursuant to Section 3.03 shall remain in effect, the Eurodollar Rate plus 1.00%.

 

“Base Rate Loan” means any Loan bearing interest at a rate based upon the Base Rate in effect from time to time.

 

“Borrower” has the meaning specified in the first paragraph of this Agreement.

 

“Borrower Materials” has the meaning specified in Section 7.01.

 

“Borrowing” means a Revolving Borrowing, a Term Borrowing or the incurrence of a Swing Loan.

 

“Business Day” means (i) any day other than Saturday, Sunday or any other day on which commercial banks in Cleveland, Ohio and/or New York, New York are authorized or required by law to close and (ii) with respect to any matters relating to Eurodollar Loans, any day that is a Business Day pursuant to clause (i) above that is also a London Banking Day.

 

“Calculation Date” means the date of the applicable Specified Transaction which gives rise to the requirement to calculate the financial covenant set forth in Section 8.07 on a Pro Forma Basis.

 

4

 

“Calculation Period” means, in respect of any Calculation Date, the period consisting of the four consecutive fiscal quarters of the Borrower and its Subsidiaries ended as of the last day of the most recent fiscal quarter of the Borrower and its Subsidiaries preceding such Calculation Date (whether or not such quarters are all within the same fiscal year) for which the Administrative Agent has received the Required Financial Information.

 

“Capital Expenditures” means, with respect to any Person for any period, any expenditure in respect of the purchase or other acquisition of any fixed or capital asset (excluding normal replacements and maintenance which are properly charged to current operations) for property, plant or equipment that has a useful life of more than one year, which, in accordance with GAAP, would be classified as a capital expenditure.

 

“Capital Lease” means, with respect to any Person, any lease of any property (whether real, personal or mixed) by that Person as lessee that, in conformity with GAAP, is required to be accounted for as a capital lease on the balance sheet of that Person.

 

“Cash Collateralize” means to pledge and deposit with or deliver to the Administrative Agent, for the benefit of the Administrative Agent, LC Issuer or Swing Line Lender (as applicable) and the Lenders, as collateral for LC Outstandings, Obligations in respect of Swing 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 LC Issuer or Swing Line Lender benefitting from such collateral shall agree in its sole discretion, other credit support, in each case pursuant to documentation in form and substance reasonably satisfactory to (a) the Administrative Agent and (b) the LC Issuer 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.

 

“Cash Equivalents” means any of the following:

 

(a)                                 securities issued or directly and fully guaranteed or insured by the United States or any agency or instrumentality thereof (provided that the full faith and credit of the United States is pledged in support thereof) having maturities of not more than 360 days from the date of acquisition;

 

(b)                                 U.S. dollar denominated time deposits, certificates of deposit and bankers’ acceptances of (i) any Lender, (ii) any domestic commercial bank of recognized standing having capital and surplus in excess of $500,000,000 or (iii) any bank (or the parent company of such bank) whose short-term commercial paper rating from S&P is at least A-1, A-2 or the equivalent thereof or from Moody’s is at least P-1, P-2 or the equivalent thereof (any such bank, an “Approved Bank”), in each case with maturities of not more than 360 days from the date of acquisition;

 

(c)                                  commercial paper issued by any Lender or any Approved Bank or by the parent company of any Lender or any Approved Bank and commercial paper issued by, or guaranteed by, any industrial or financial company with a short-term commercial paper rating of at least A-1 or the equivalent thereof by S&P or at least P-1 or the equivalent thereof by Moody’s, or guaranteed by any industrial company with a long-term unsecured debt rating of at least A or A2, or the equivalent of each thereof, from S&P or Moody’s, as the case may be, and in each case maturing not more than 360 days after the date of acquisition;

 

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(d)                                 fully collateralized repurchase agreements entered into with any Lender or any Approved Bank having a term of not more than 30 days and covering securities described in clause (a) above;

 

(e)                                  Investments, classified in accordance with GAAP as current assets, in money market investment programs registered under the Investment Company Act of 1940, which are administered by reputable financial institutions that have the highest rating obtainable from either Moody’s or S&P and the portfolios of which are limited to Investments of the types described in clauses (a) through (d) above; and

 

(f)                                   demand deposit accounts maintained in the Ordinary Course of Business.

 

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

 

“Cash Management Bank” means any Person that (a) is a party to a Cash Management Agreement in its capacity as such and (b) at the time such Person enters into a Cash Management Agreement, is also a Lender or an Affiliate of a Lender.

 

“CERCLA” means the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as the same may be amended from time to time, 42 U.S.C. § 9601 et seq.

 

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

 

“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, implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rule, 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” shall mean any of the following events:

 

(a)                                 any “person” or “group” (other than Tom Olofson or Christopher Olofson) (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person or group shall be deemed to have “beneficial ownership” of all Equity Interests that such person or group has the right to acquire, whether such right is exercisable immediately or only after the passage of time (such right, an “option right”)), directly or indirectly, of 30% or more of the Voting Stock of the Borrower on a fully-diluted basis (and taking into account all such securities that such “person” or “group” has the right to acquire pursuant to any option right); or

 

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(b)                                 during any period of 12 consecutive months, a majority of the members (other than vacant seats) of the board of directors or other equivalent governing body of the Borrower cease to be composed of individuals (i) who were members of that board or equivalent governing body on the first day of such period, (ii) whose election or nomination to that board or equivalent governing body was approved by individuals referred to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body or (iii) whose election or nomination to that board or other equivalent governing body was approved by individuals referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body (excluding, in the case of both clause (ii) and clause (iii), any individual whose initial nomination for, or assumption of office as, a member of that board or equivalent governing body occurs as a result of an actual or threatened solicitation of proxies or consents for the election or removal of one or more directors by any person or group other than a solicitation for the election of one or more directors by or on behalf of the board of directors); or

 

(c)                                  the occurrence of a “change of control” (or other term of similar import used therein) as defined in any agreement with respect to Permitted Unsecured Debt.

 

“Charges” has the meaning provided in Section 11.22.

 

“CIP Regulations” has the meaning provided in Section 10.07.

 

“Claims” has the meaning set forth in the definition of “Environmental Claims.”

 

“Closing Date” means the date of this Agreement.

 

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

 

“Collateral” means a collective reference to all real and personal property on which Liens are granted or purported to be granted to the Administrative Agent (for the benefit of the Secured Creditors) pursuant to any Collateral Document.

 

“Collateral Documents” means, collectively, the Security Agreement, the Mortgages and each of the other mortgages, collateral assignments, security agreements, pledge agreements, control agreements or other similar agreements delivered to the Administrative Agent pursuant to the terms of Sections 7.08 and 7.09 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 Creditors.

 

“Commitment” means with respect to each Lender, its Revolving Commitment or its Term Commitment, as the context may require.

 

“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.

 

“Competitor” means any Person that (a) is a direct competitor of the Borrower that derives significant revenue from the business of providing technology-enabled services for the global legal profession and (b) in each case is identified in writing by the Borrower to the Administrative Agent in a list to be delivered prior to the Closing Date (which list may be updated after completion of the primary syndication of the Term Loans funded on the Closing Date); provided that at no time shall any bank, financial institution, institutional investor, fund or broker be deemed to be (i) a direct competitor of the

 

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Borrower or any of its Subsidiaries or (ii) a Competitor solely on the basis of its ownership of a non-controlling minority equity position in a direct competitor of the Borrower or any of its Subsidiaries.

 

“Compliance Certificate” has the meaning provided in Section 7.01(c).

 

“Confidential Information” has the meaning provided in Section 11.15(b).

 

“Consolidated Cash on Hand” means, as of any date of determination, the sum of the amount of cash and Cash Equivalents of the Borrower and the Subsidiary Guarantors on a consolidated basis as set forth on (or that would be set forth on) the consolidated balance sheet of the Borrower and its Subsidiaries as of the most recent fiscal quarter end for which the Administrative Agent has received the Required Financial Information (it being understood that such amount shall exclude in any event any cash and Cash Equivalents identified on such balance sheet as “restricted” (other than cash or Cash Equivalents restricted in favor of the Administrative Agent or the other holders of the Obligations) or otherwise subject to a security interest in favor of any other Person (other than security interests under the Collateral Documents and described in clauses (c), (h) (other than to the extent of the amount of the applicable judgment) and (o) of Section 8.03).

 

“Consolidated Current Assets” means, on any date, all assets of the Borrower and its Subsidiaries on such date which, in accordance with GAAP, would be classified on a consolidated balance sheet of the Borrower and its Subsidiaries as “current assets,” other than cash and Cash Equivalents and deferred tax assets.

 

“Consolidated Current Liabilities” means, on any date, all liabilities of the Borrower and its Subsidiaries on such date which, in accordance with GAAP, would be classified on a consolidated balance sheet of the Borrower and its Subsidiaries as “current liabilities,” other than the current portion of Consolidated Funded Indebtedness and deferred tax liabilities.

 

“Consolidated EBITDA” means, for any period, for the Borrower and its Subsidiaries on a consolidated basis, an amount equal to Consolidated Net Income for such period plus, without duplication (a) the sum of the following to the extent deducted in calculating such Consolidated Net Income (except in the case of clause (xi) below): (i) Consolidated Interest Charges, (ii) the provision for federal, state, local, franchise and foreign income taxes payable by the Borrower and its Subsidiaries, (iii) depreciation and amortization expense, (iv) other losses and non-recurring expenses of the Borrower and its Subsidiaries reducing such Consolidated Net Income which do not represent a cash item in such period or any future period, (v) costs, fees and expenses incurred in connection with the Transaction; provided the aggregate amount added back pursuant to this clause (v) for all periods shall not exceed $8,500,000, (vi) unamortized costs, fees and expenses incurred in connection with (A) permitted Investments, issuances of Equity Interests, issuances of Indebtedness and dispositions, in each case, solely to the extent permitted under this Agreement, in an aggregate amount not to exceed $5,000,000 in any trailing twelve month period and (B) any Acquisition (occurring prior to, on or subsequent to the Closing Date) whether or not consummated (including bonuses paid to employees on or about the applicable closing date in connection therewith) in an aggregate amount not to exceed $10,000,000 in any trailing twelve month period, (vii) expenses and charges which will be indemnified or reimbursed to the extent such amounts are covered by funds in a valid escrow account or similar arrangement, (viii) technology expenses in connection with any data center transition and/or consolidation that have been incurred prior to the Closing Date or within six months thereafter in an aggregate amount not to exceed $4,000,000, (ix) additional technology expenses incurred after the Closing Date in connection with any data center transition and/or consolidation in an aggregate amount not to exceed $4,000,000 in any trailing twelve month period, (x) one time compensation charges incurred in connection with Permitted Acquisitions, including, but not limited to, stay bonuses paid to existing management and severance costs in an aggregate amount not to exceed

 

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$3,000,000 in any trailing twelve month period; provided that stay bonuses may only be included pursuant to this clause (x) for the eighteen (18) month period immediately following the consummation of the Permitted Acquisition pursuant to which the stay bonus was created, (xi) cash proceeds of business interruption insurance, (xii) cash purchase price adjustments paid to sellers in connection with Permitted Acquisitions, (xiii) charges and expenses related to contingent and/or deferred consideration in connection with Permitted Acquisitions, (xiv) integration and reorganization charges incurred prior to December 31, 2013 in an aggregate amount not to exceed $1,000,000 and (xv) charges, fees, costs and expenses incurred or paid in connection with the Loan Documents; provided that in no event shall the aggregate amount added back pursuant to clauses (vi), (ix) and (x) above in any trailing twelve month period exceed 10% of Consolidated EBITDA for such period minus (b) each of the following to the extent included in calculating such Consolidated Net Income: (i) federal, state, local and foreign income tax credits and (ii) all items increasing Consolidated Net Income which are non-cash and are not expected to convert to cash within one year.

 

“Consolidated Funded Indebtedness” means, as of any date of determination, for the Borrower and its Subsidiaries on a consolidated basis, without duplication, all Indebtedness of the Borrower and its Subsidiaries outstanding as of such date (other than contingent obligations under commercial letters of credit, obligations consisting of surety, appeal and similar bonds incurred in the Ordinary Course of Business and Indebtedness of the type described in clause (g) of the definition thereof) in an amount that would be reflected on a consolidated balance sheet of the Borrower and its Subsidiaries as of such date in accordance with GAAP; provided that earnout obligations shall not be considered “Indebtedness” for the purposes of this definition unless such obligations have become liabilities as Indebtedness of the consolidated balance sheet of the Borrower and its subsidiaries as of such date of determination.

 

“Consolidated Interest Charges” means, for any period, without duplication, the sum of (a) total interest expense (including, without limitation, that which is capitalized and that which is attributable to Capital Leases or Synthetic Leases) of the Borrower and its Subsidiaries on a consolidated basis with respect to all outstanding Indebtedness of the Borrower and its Subsidiaries plus (b) the net amount payable (or minus the net amount receivable) under Interest Rate Protection Agreements to which Borrower or any of its Subsidiaries are a party during such period (irrespective of whether actually paid or received during such period); provided that, for the avoidance of doubt, Consolidated Interest Charges shall not include any interest expense resulting from the amortization of any loan fees and interest expense resulting from imputed interest that is added to the principal balance of the underlying Indebtedness.

 

“Consolidated Net Income” means for any period, the net income (or loss) of the Borrower and its Subsidiaries on a consolidated basis for such period taken as a single accounting period determined in conformity with GAAP; provided  that, without duplication, each of the following shall be excluded in the determination of Consolidated Net Income for any applicable period: (a) any extraordinary gains and charges for such period, (b) the cumulative effect of a change in accounting principles during such period to the extent included in Consolidated Net Income, (c) any impairment charges or asset write-offs or write downs related to intangible assets and the amortization of intangibles arising pursuant to GAAP, (d) any non-cash compensation charge or expense, (e) the income (or loss) of any Person that is not a wholly-owned Subsidiary of the Borrower except to the extent of the amount of dividends or other distributions actually paid in cash by such Person to the Borrower or any of its Subsidiaries during such period and the payment of such dividends or distributions was not at the time subject to the consent of a third party or prohibited by operation of the terms of its charter or of any agreement, instrument, judgment decree, order, rule or governmental regulation applicable to such Person, (f) the cumulative effect of foreign currency translations during such period to the extent included in Consolidated Net Income, (g) any gains or losses from discontinued operations, (h) any after-tax gains or losses attributable to Asset Sales or other asset dispositions outside of Ordinary Course of Business (including events resulting in Insurance

 

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and Condemnation Events) and (i) net after-tax income attributable to the early extinguishment of Indebtedness.

 

“Consolidated Total Net Leverage Ratio” means, as of the last day of any fiscal quarter of the Borrower, the ratio of (a) Consolidated Funded Indebtedness as of such date minus Consolidated Cash on Hand at such date in an aggregate amount not to exceed (i) in the case of any calculation on or prior to the first anniversary of the Closing Date, $50,000,000 or (ii) in the case of any calculation thereafter, $10,000,000 to (b) Consolidated EBITDA for the four fiscal quarter period ending on such date; provided that the Consolidated Total Net Leverage Ratio shall be determined on a Pro Forma Basis.

 

“Consolidated Working Capital” means, on any date, Consolidated Current Assets minus Consolidated Current Liabilities on such date; provided that all such amounts shall be adjusted on a pro forma basis to account for Permitted Acquisitions consummated during such period; provided, further, in calculating Consolidated Working Capital as of any date, the impact of the following items shall be ignored: (a) customer deposits, including those received in advance of the performance of services and other forms of unearned revenue, (b) unpaid liabilities and deposits relating to value added taxes and other taxes collected from customers and similar items that are required to be remitted to Governmental Authorities, (c) accrued but unpaid income taxes and (d) liabilities relating to accrued and unpaid capital expenditures.

 

“Contingent Obligations” means contingent indemnification obligations, Letters of Credit that have been Cash Collateralized in accordance with the terms of Section 2.16 and obligations arising under Hedge Agreements and Cash Management Agreements, in each case, permitted to survive the termination of the Commitments.

 

“Continue,” “Continuation” and “Continued” each refers to a continuation of a Eurodollar Loan for an additional Interest Period as provided in Section 2.10.

 

“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.

 

“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.

 

“Convert,” “Conversion” and “Converted” each refers to a conversion of Loans of one Type into Loans of another Type.

 

“Covered Entity” means (a) the Borrower, each of the Borrower’s Subsidiaries, all Guarantors and all pledgors of Collateral and (b) each Person that, directly or indirectly, is in control of any Person described in clause (a) above.  For purposes of this definition, control of a Person shall mean the direct or indirect (x) ownership of, or power to vote, 25% or more of the issued and outstanding Equity Interests having ordinary voting power for the election of directors of such Person or other Person performing similar functions for such Person or (y) power to direct or cause the direction of the management and policies of such Person whether by ownership of Equity Interests, contract or otherwise.

 

“Credit Event” means any of the following (a) a Borrowing, (b) any Conversion or Continuation or (c) any LC Issuance.

 

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“Credit Facilities” means, collectively, the revolving and term loan credit facilities established and made available to the Borrower pursuant to this Agreement, and “Credit Facility” means any of them, as applicable.

 

“Credit Facility Exposure” means, for any Lender at any time, the sum of (a) such Lender’s Revolving Facility Exposure at such time and (b) the principal amount of the Term Loans held by such Lender as such time.

 

“Credit Party” means the Borrower or any Guarantor.

 

“Debt Issuance” means the issuance of any Indebtedness by a Credit Party or any of its Subsidiaries (excluding any Indebtedness of the Credit Parties and their Subsidiaries permitted to be incurred pursuant to Section 8.04 hereof).

 

“Debtor Relief Laws” means the Bankruptcy Code, 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, act or condition described in Section 9.01 that with notice or lapse of time, or both (in each case, as set forth in Section 9.01), would constitute an Event of Default.

 

“Defaulting Lender” means, subject to Section 2.15(b), any Lender that (a) has failed to (i) fund all or any portion of its Loans within two Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender’s determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the Administrative Agent, any Issuing Bank, any Swing Line Lender or any other Lender any other amount required to be paid by it hereunder (including in respect of its participation in Letters of Credit or Swing Loans) within two Business Days of the date when due, (b) has notified the Borrower, the Administrative Agent or any LC Issuer or Swing Line Lender in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender’s obligation to fund a Loan hereunder and states that such position is based on such Lender’s determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Administrative Agent and the Borrower), 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, or (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity; provided, that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a Defaulting Lender

 

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under clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 2.15(b)) upon delivery of written notice of such determination to the Borrower, each LC Issuer, each Swing Line Lender and each Lender.

 

“Default Rate” means, (a) when used with respect to Obligations other than LC Fees, an interest rate equal to (i) the Base Rate plus (ii) the Applicable Margin, if any, applicable to Base Rate Loans plus (iii) 2% per annum; provided, however, that with respect to a Eurodollar Loan, the Default Rate shall be an interest rate equal to the interest rate (including any Applicable Margin) otherwise applicable to such Loan plus 2% per annum, in each case to the fullest extent permitted by applicable Laws and (b) when used with respect to LC Fees, a rate equal to the Applicable Margin plus 2% per annum.

 

“Dollars,” “U.S. Dollars” and the sign “$” each means lawful money of the United States.

 

“Domestic Subsidiary” means any Subsidiary organized under the Laws of the United States, any State thereof, or the District of Columbia.

 

“Eligible Assignee” means any person that meets the requirements to be an assignee under Section 11.06(b)(iii) and (v) (subject to such consents, if any, that may be required under, and other restrictions set forth in, Section 11.06(b)(iii)).

 

“Environmental Claims” means any and all administrative or judicial actions, suits, demand letters, claims, liens, orders, written notices of non-compliance or violation, or administrative or judicial proceedings (hereafter “Claims”) asserted, issued or arising under any Environmental Law or any permit issued under any Environmental Law, including, without limitation, (i) any and all Claims by any Governmental Authority for enforcement, cleanup, removal, response, remedial or other actions or damages pursuant to any applicable Environmental Law, and (ii) any and all Claims by any third party seeking damages, contribution, indemnification, cost recovery, compensation or injunctive relief resulting from the storage, treatment or Release of any Hazardous Materials or arising from alleged injury or threat of injury to health, safety or the environment.

 

“Environmental Laws” means any and all Federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, licenses, agreements or governmental restrictions relating to the protection of human health and the environment or the regulation of Hazardous Materials.

 

“Equity Interests” means, with respect to any Person, (a) all of the shares of capital stock of (or other ownership or profit interests in) such Person, (b) all 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, (c) all securities convertible into or exchangeable for (i) shares of capital stock of (or other ownership or profit interests in) such Person or (ii) warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests) and (d) all 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.

 

“Equity Issuance” means any issuance by any Credit Party or any Subsidiary of its Equity Interests.  Notwithstanding the foregoing, the term “Equity Issuance” shall not include any Debt Issuance.

 

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

 

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“ERISA Affiliate” means any trade or business (whether or not incorporated) under common control with the Borrower 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 of the Borrower 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; (c) a complete or partial withdrawal by the Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent to terminate, 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 Sections 303, 304 and 305 of ERISA; or (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 the Borrower or any ERISA Affiliate.

 

“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 or the successor thereto if the British Bankers Association is no longer making a LIBOR Rate available (“LIBOR”), as published by Reuters (or such other commercially available source providing quotations of 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 the rate referred to in clause (i) above is not available at any such time for any reason, then the rate referred to in clause (i) shall instead be the interest rate per annum at which KeyBank is offered deposits in Dollars, for delivery on the first day of such Interest Period in same day funds in the approximate amount of the Eurodollar Loan being made, Converted or Continued and with a term equivalent to such Interest Period, at approximately 11:00 a.m. (London time) two Business Days prior to the commencement of such Interest Period in the interbank eurodollar market where the Eurodollar and foreign currency and exchange operations in respect of its Eurodollar Loans are then being conducted.

 

(b)                                 for any interest calculation with respect to a Base Rate Loan on any date, the rate per annum equal to (i) 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 the rate referred to in clause (i) above is not available at any such time for any reason, then the rate referred to in clause (i) shall instead be the interest rate at which KeyBank is offered 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, at approximately 11:00 a.m. (London time) two Business Days prior to the commencement of such Interest Period in the interbank eurodollar market where the Eurodollar and foreign currency and exchange operations in respect of its Eurodollar Loans are then being conducted.

 

“Eurodollar Loan” means each Loan bearing interest at a rate based upon clause (a) of the definition of “Eurodollar Rate”.

 

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“Event of Default” has the meaning provided in Section 9.01.

 

“Excess Cash Flow” means, with respect to any fiscal year period of the Borrower and its Subsidiaries on a consolidated basis, an amount equal to (a) Consolidated EBITDA for such period minus, without duplication, (b) Capital Expenditures or other capitalized expenses paid for during such fiscal year with operating cash flow or the proceeds of Revolving Borrowings minus (c) Consolidated Interest Charges for such period paid in cash minus (d) foreign, federal, state, local and other income taxes and franchise taxes actually paid by the Borrower and its Subsidiaries during such period on a consolidated basis minus (e) all scheduled payments of principal on Consolidated Funded Indebtedness made during such period, minus (f) all mandatory prepayments of Consolidated Funded Indebtedness (other than the Obligations) made in cash during such period; provided that (i) such payments are otherwise permitted hereunder, (ii) if such Indebtedness consists of a revolving line of credit, the commitments under such line of credit are permanently reduced by the amount of such prepayment and (iii) such prepayments are not made, directly or indirectly, using proceeds, payments or any other amounts available from events or circumstances that were not included in determining Consolidated Net Income for such period), minus (g) all cash items added back to Consolidated Net Income in the calculation of Consolidated EBITDA for such period minus (h) any increase in Consolidated Working Capital for such fiscal year, measured as of the last day of such fiscal year by comparison with Consolidated Working Capital on the first day of such fiscal year, minus (i) Restricted Payments permitted by Section 8.06 and made in cash during such period, minus (j) consideration paid and certain costs and expenses incurred in connection with Permitted Acquisitions and other Investments effected during such period and permitted pursuant to Section 8.05 (other than Section 8.05(a), but including, without limitation, any deferred or contingent consideration, unpaid holdback obligations, escrowed amounts and similar items) plus (k) any decrease in Consolidated Working Capital for such fiscal year, measured as of the last day of such fiscal year by comparison with Consolidated Working Capital on the first day of such fiscal year.

 

“Excluded Accounts” means (i) deposit and/or securities accounts the balance of which consists primarily of (A) withheld income taxes and federal, state or local employment taxes in such amounts as are required to be paid to the IRS or state or local government agencies within the following two months with respect to employees of any of the Credit Parties or (B) amounts required to be paid over to an employee benefit plan pursuant to DOL Reg. Sec. 2510.3-102 on behalf of or for the benefit of employees of one or more Credit Parties, (ii) all segregated deposit and/or securities accounts established as and constituting (and the balance of which consists solely of funds set aside in connection with) taxes accounts, payroll accounts and trust accounts, (iii) zero balance and disbursement accounts, (iv) accounts located in foreign jurisdictions, (v) from the date of the consummation of a Permitted Acquisition through and including the six month anniversary of such date, accounts acquired in connection with Permitted Acquisitions and (vi) any such account that has (and will continue to have) a maximum balance that does not exceed $250,000 (provided that the aggregate maximum average monthly balance of all such accounts deemed Excluded Accounts by operation of this clause (vi) at any one time shall not exceed $750,000).

 

“Excluded Asset Sale” means any Asset Sale permitted by Sections 8.02(a) through (e) and (g) through (n).

 

“Excluded Foreign Holding Company” means any Domestic Subsidiary substantially all of whose assets consist of Equity Interests in one or more Foreign Subsidiaries.

 

“Excluded Issuance” means the issuance of Equity Interests by the Borrower.

 

“Excluded Property” means, with respect to any Credit Party, including any Person that becomes a Credit Party after the Closing Date as contemplated by Section 7.08, the following: (a) computer

 

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equipment provided to bankruptcy trustees and located on their premises in the ordinary course of the Credit Parties’ business, (b) computer equipment placed in offices of the Credit Parties’ customers but only to the extent the aggregate value of all such computer equipment is immaterial, (c) fractional interests in aircraft where a pledge is prohibited by the agreement among the holders of such interests, (d) Equity Interests in (i) any Foreign Subsidiary or Excluded Foreign Holding Company directly owned by a Credit Party in excess of (x) sixty-five percent (65%) of the total combined voting power of all classes of Equity Interests of such Foreign Subsidiary or Excluded Foreign Holding Company and (y) one hundred percent (100%) of the non-voting Equity Interests of such Foreign Subsidiary or Excluded Foreign Holding Company and (ii) any indirect Foreign Subsidiary or Excluded Foreign Holding Company, (e) permits, licenses and contracts which by the terms of such permits, licenses and contracts prohibit the assignment of such agreements (to the extent such prohibition is enforceable at Law after giving effect to the applicable anti-assignment provisions of the UCC or other relevant Law), other than proceeds and receivables thereof, (f) fixed assets subject to a purchase money Lien or Capital Lease with an underlying contract or agreement that prohibits the granting of a second Lien on such fixed assets, but only to the extent such prohibition is enforceable at Law after giving effect to the applicable anti-assignment provisions of the UCC and only as long as such Liens attach to such fixed assets, (g) any owned Real Property with a fair market value less than $750,000, (h) any leased Real Property, (i) any motor vehicle covered by a certificate of title, (j) any Excluded Account (other than clause (v) of the definition thereof) and (k) any “intent-to-use” application for registration of a trademark filed pursuant to Section 1(b) of the Lanham Act, 15 U.S.C. § 1051, prior to the filing of a “Statement of Use” pursuant to Section 1(d) of the Lanham Act, to the extent that, and during the period, if any, in which, the grant of a security interest therein would impair the validity or enforceability of any registration that issues from such intent-to-use application under applicable federal law.

 

“Excluded Subsidiary” means (a) any Foreign Subsidiary, (ii) any Excluded Foreign Holding Company and (c) any Immaterial Subsidiary.

 

“Excluded Swap Obligation” means, 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 Guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time the Guaranty of such Guarantor, or the grant by such Guarantor of a security interest, becomes effective with respect to such Swap Obligation; provided that, for the avoidance of doubt, in determining whether any Guarantor is an “eligible contract participant” under the Commodity Exchange Act, the keepwell agreement set forth in Section 4.08 shall be taken into account. If a Swap Obligation arises under a Master Agreement governing more than one Hedge Agreement, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to Hedge Agreements for which such Guaranty or security interest is or becomes illegal.

 

“Excluded Taxes” means, with respect to the Administrative Agent, any Lender, the LC Issuer or any other recipient of any payment to be made by or on account of any obligation of the Borrower hereunder, (a) Taxes imposed on or measured by its overall net income (however denominated), and franchise Taxes imposed on it (in lieu of net income Taxes), by the jurisdiction (or any political subdivision thereof) under the Laws of which such recipient is organized or in which its principal office is located or in which it is doing business (other than solely as a result of entering into this Agreement) or, in the case of any Lender, in which its applicable Lending Office is located, (b) any branch profits Taxes imposed by the United States or any similar Tax imposed by any other jurisdiction in which the Borrower is located, (c) any backup withholding Tax that is required by the Code to be withheld from amounts payable to a Lender that has failed to comply with clause (A) of Section 3.01(e)(ii), (d) in the case of a

 

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Foreign Lender (other than an assignee pursuant to a request by the Borrower under Section 11.27), any United States federal withholding Tax that (i) is required to be 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) or (ii) is attributable to such Foreign Lender’s failure or inability (other than as a result of a Change in Law) to comply with Section 3.01(e), except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new Lending Office (or assignment), to receive additional amounts from the Borrower with respect to such withholding Tax pursuant to Section 3.01(a)(ii) or Section 3.01(c) and (e) any United States federal withholding Taxes imposed under FATCA.

 

“Existing Credit Agreement” means that certain Fourth Amended and Restated Credit and Security Agreement dated as of April 25, 2011 by and among the Borrower and certain of its material domestic subsidiaries, as borrowers, the lenders from time to time party thereto and KeyBank, as administrative agent.

 

“Existing Letters of Credit” means the letters of credit described on Schedule 3.

 

“FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations promulgated thereunder or any official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code.

 

“Federal Funds Effective Rate” means, for any period, a fluctuating interest rate equal for each day during such period to the weighted average of the rates on overnight Federal Funds transactions with members of the Federal Reserve System arranged by Federal Funds brokers, as published for such day (or, if such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average of the quotations for such day on such transactions received by the Administrative Agent from three Federal Funds brokers of recognized standing selected by the Administrative Agent.

 

“Fee Letter” means the letter, dated July 2, 2013, between the Administrative Agent and the Borrower, which details certain fees payable by the Borrower in connection with this Agreement.

 

“Fees” means all amounts payable pursuant to, or referred to in, Section 2.11.

 

“Flood Hazard Property” has the meaning specified in Section 7.12(d)(iv).

 

“Foreign Lender” means any Lender that is organized under the Laws of a jurisdiction other than that in which the Borrower is resident for tax purposes (including such a Lender when acting in the capacity of the LC Issuer).  For purposes of this definition, the United States, each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction.

 

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

 

“Fronting Exposure” means, at any time there is a Defaulting Lender, (a) with respect to the LC Issuer, such Defaulting Lender’s Applicable Percentage of the outstanding LC Outstandings other than LC Outstandings 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 Loans other than Swing 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.

 

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“Fund” means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its activities.

 

“GAAP” means generally accepted accounting principles in the United States as in effect from time to time.

 

“Governmental Authority” means the government of the United States and 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 supranational 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 or other obligation payable or performable by another Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation, (ii) to purchase or lease property, securities or services for the purpose of assuring the obligee in respect of such Indebtedness or other obligation of the payment or performance of such Indebtedness or other obligation, (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 other obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or other obligation of the payment or performance thereof 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 or other obligation of any other Person, whether or not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien).  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” shall mean, collectively, (a) each Subsidiary Guarantor identified as a “Guarantor” on the signature pages hereto, (b) each other Subsidiary that joins as a Guarantor pursuant to Section 7.08 or otherwise, (c) with respect to (i) any a Hedge Agreement between any Credit Party (other than the Borrower) and any Hedge Bank that are permitted to be incurred pursuant to Section 8.04 and any Cash Management Agreement between any Credit Party (other than the Borrower) and any Cash Management Bank, the Borrower and (ii) the payment and performance by each Specified Credit Party of its obligations under its Guaranty with respect to all Swap Obligations, the Borrower, and (d) the successors and permitted assigns of the foregoing, and “Guarantor” means any of them.  A list of the Guarantors as of the Closing Date is set forth on Schedule 2.

 

“Guaranty” means the Guaranty made by the Guarantors in favor of the Secured Creditors pursuant to Article IV.

 

“Hazardous Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to any Environmental Law.

 

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“Hedge Agreement” means (a) any Interest Rate Protection Agreements, (b) 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 (c) 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.

 

“Hedge Bank” means any Person that (a) is a party to a Hedge Agreement in its capacity as such and (b) at the time it enters into such Hedge Agreement is also a Lender or an Affiliate of a Lender.

 

“Hedge Termination Value” means, in respect of any one or more Hedge Agreements, after taking into account the effect of any legally enforceable netting agreement relating to such Hedge Agreements, (a) for any date on or after the date such Hedge Agreements 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 Hedge Agreements, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Hedge Agreements (which may include a Lender or any Affiliate of a Lender).

 

“Honor Date” has the meaning specified in Section 2.05(f)(i).

 

“Immaterial Subsidiary” means, as of any date, any Subsidiary that (a) had (or would have, if newly formed, created or acquired) total assets representing 1% or less of the total consolidated assets of the Borrower and its Subsidiaries on the last day of the most recent fiscal quarter ended prior to such date of determination (such quarter end date, the “Test Date”) and (b) generated (or would have generated, if newly formed, created or acquired) 1% or less of the Consolidated EBITDA of the Borrower and its Subsidiaries for the four fiscal quarter period ended as of the Test Date; provided that (i) the total assets held by all Subsidiaries treated as Immaterial Subsidiaries hereunder shall not exceed 3.0% or more of the total consolidated assets of the Borrower and its Subsidiaries as of the Test Date and (ii) the total Consolidated EBITDA generated by all Subsidiaries treated as Immaterial Subsidiaries hereunder shall not exceed 3.0% or more of the Consolidated EBITDA of the Borrower and its Subsidiaries for the four fiscal quarters period ended as of the Test Date.

 

“Incremental Facilities” and “Incremental Facility” have the meaning provided in Section 11.12(b).

 

“Indebtedness” means, with respect to any Person as a particular time, (a) all obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person under conditional sale or other title retention agreements relating to property purchased by such Person (other than customary reservations or retentions of title under agreements with suppliers entered into in the Ordinary Course of Business), (d) all obligations of such Person issued or assumed as the deferred purchase price of property or services (other than obligations under deferred compensation arrangements) purchased by such Person (other than trade

 

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debt incurred in the Ordinary Course of Business and due within six months of the incurrence thereof), (e) all Attributable Indebtedness of such Person, (f) with respect to any Hedge Agreement of such Person, the Hedge Termination Value thereof as of such date, (g) all direct or contingent reimbursement obligations arising under letters of credit, bankers’ acceptances, bank guaranties, surety bonds and similar instruments, (h) the principal component or liquidation preference of all Equity Interests issued by such Person and which by the terms thereof could, other than in connection with a Change of Control, at any time prior to the date that is 180 days after the Maturity Date applicable to the Term Loan be (at the request of the holders thereof or otherwise) subject to mandatory sinking fund payments, mandatory redemption or other acceleration, (i) all Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on, or payable out of the proceeds of production from, property owned or acquired by such Person, whether or not the obligations secured thereby have been assumed, (j) all Guarantees of such Person in respect of any of the foregoing, and (k) the Indebtedness of the types referred to in the foregoing clauses (a) through (j) of any partnership or unincorporated joint venture in which such Person is a general partner or a joint venturer to the extent such Indebtedness is recourse to such Person.

 

“Indemnified Taxes” means Taxes other than Excluded Taxes.

 

“Indemnitees” has the meaning provided in Section 11.02.

 

“Insolvency Event” means, with respect to any Person, (a) the commencement of a voluntary case by such Person seeking relief under the Bankruptcy Code or the seeking of relief by such Person under any bankruptcy or insolvency or analogous law in any jurisdiction outside of the United States; (b) the commencement of an involuntary case against such Person under the Bankruptcy Code and the petition is not dismissed within 60 days after commencement of the case or any order of relief or other order approving any such case is entered; (c) such Person applies for or consents to the appointment of a receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer for it or for all or any substantial part of its property, (d) such Person commences (including by way of applying for or consenting to the appointment of, or the taking of possession by, a rehabilitator, receiver, custodian, trustee, conservator or liquidator (collectively, a “conservator”) of such Person or all or any substantial portion of its property) any other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency, liquidation, rehabilitation, conservatorship or similar law of any jurisdiction whether now or hereafter in effect relating to such Person; (e) any such proceeding of the type set forth in clause (d) above is commenced against such Person to the extent such proceeding is consented to by such Person or remains undismissed for a period of 60 days; (f) such Person is adjudicated insolvent or bankrupt; (g) such Person suffers any appointment of any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer or the like for it or any substantial part of its property that continues undischarged or unstayed for a period of 60 days; or (h) such Person makes a general assignment for the benefit of creditors or generally does not pay its debts as such debts become due.

 

“Insurance and Condemnation Event” means the receipt by any Credit Party or any of its Subsidiaries of any cash insurance proceeds (excluding proceeds of business interruption insurance, if any) or condemnation award payable by reason of theft, loss, physical destruction or damage, taking or similar event with respect to any of their respective property in an amount greater than $500,000.

 

“Intercompany Debt” has the meaning specified in Section 11.24.

 

“Interest Period” means, with respect to each Eurodollar Loan, the period commencing on the date such Eurodollar Loan is disbursed or Converted to or Continued as a Eurodollar Loan, and ending on the date one, two, three or six months thereafter, as selected by the Borrower in the Notice of Borrowing or Notice of Continuation or Conversion, as applicable; provided, however, that (a) each Interest Period

 

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occurring thereafter in respect of such Eurodollar Loan shall commence on the day on which the next preceding Interest Period expires; (b) if any Interest Period begins on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period, such Interest Period shall end on the last Business Day of such calendar month; (c) if any Interest Period would otherwise expire on a day that is not a Business Day, such Interest Period shall expire on the next succeeding Business Day; provided, however, that if any Interest Period would otherwise expire on a day that is not a Business Day but is a day of the month after which no further Business Day occurs in such month, such Interest Period shall expire on the next preceding Business Day; (d) no Interest Period for any Eurodollar Loan may be selected that would end after the Maturity Date of the facility under which such Loan was made; and (e) if, upon the expiration of any Interest Period, the Borrower has failed to (or may not) elect a new Interest Period to be applicable to the respective Borrowing of Eurodollar Loans as provided above, the Borrower shall be deemed to have elected to Convert such Borrowing to Base Rate Loans effective as of the expiration date of such current Interest Period.

 

“Interest Rate Protection Agreement” means any interest rate swap agreement, any interest rate cap agreement, any interest rate collar agreement or other similar interest rate management agreement or arrangement, in each case providing for the transfer or mitigation of interest risks either generally or under specific contingencies.

 

“Interim Financial Statements” means, collectively, the unaudited consolidated balance sheet of the Borrower and its Subsidiaries dated June 30, 2013, and the related statements of operations and cash flows of the Borrower and its Subsidiaries for the six-month period ended on such date.

 

“Investment” in any Person means (a) any Acquisition of such Person, (b) any other acquisition of Equity Interests, bonds, notes, debentures, partnership, joint ventures or other ownership interests or other securities of such other Person, (c) any deposit with, or advance, loan or other extension of credit to, such Person (other than (x) deposits made in connection with the purchase of equipment, inventory and supplies in the Ordinary Course of Business and (y) travel and similar advances to employees in the Ordinary Course of Business) or (d) any other capital contribution to or investment in such Person, including, without limitation, any Guarantee (including any support for a letter of credit issued on behalf of such Person) incurred for the benefit of such Person.  Investments which are capital contributions or purchases of Equity Interests which have a right to participate in the profits of the issuer thereof shall be valued at the amount (or, in the case of any Investment made with property other than cash, the book value of such property) actually contributed or paid (including cash and non-cash consideration and any assumption of Indebtedness) to purchase such Equity Interests or other Property as of the date of such contribution or payment less the amount of all returns of capital in respect of such Investment (including, without limitation, pursuant to the disposition or liquidation of all or part of such Investment) through and including the date of determination.  Investments which are loans, advances or other extensions of credit or Guarantees shall be valued at the principal amount of such loan, advance or extension of credit outstanding as of the date of determination or, as applicable, the principal amount of the loan or advance outstanding as of the date of determination actually guaranteed by such Guarantees (as determined by reference to the definition of Guarantee).

 

“IP Rights” has the meaning provided in Section 6.15.

 

“IRS” means the United States Internal Revenue Service.

 

“Joinder Agreement” means a Joinder Agreement substantially in the form of Exhibit F hereto, executed and delivered by a new Guarantor in accordance with the provisions of Section 7.08.

 

“KeyBank” means KeyBank National Association, and its successors.

 

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“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.

 

“LC Documents” means, with respect to any Letter of Credit, any documents executed in connection with such Letter of Credit, including the Letter of Credit itself.

 

“LC Fee” means the letter of credit fee payable pursuant to Section 2.11(b) in respect of Letters of Credit.

 

“LC Issuance” means the issuance of any Letter of Credit by the LC Issuer for the account of an LC Obligor in accordance with the terms of this Agreement, and shall include any amendment thereto that increases the Stated Amount thereof or extends the expiry date of such Letter of Credit.

 

“LC Issuer” means KeyBank, in its capacity as issuer of Letters of Credit hereunder, or any successor issuer of Letters of Credit hereunder.

 

“LC Obligor” means, with respect to each LC Issuance, the Borrower or the Subsidiary of the Borrower for whose account such Letter of Credit is issued.

 

“LC Outstandings” means, at any time, the sum, without duplication, of (i) the aggregate Stated Amount of all outstanding Letters of Credit and (ii) the aggregate amount of all Unreimbursed Drawings with respect to Letters of Credit.

 

“LC Participant” has the meaning provided in Section 2.05(g)(i).

 

“LC Participation” has the meaning provided in Section 2.05(g)(i).

 

“LC Request” has the meaning provided in Section 2.05(b).

 

“LC Sublimit” means, at any time, the lesser of (a) the Total Revolving Commitment then in effect and (b) $15,000,000.  The LC Sublimit is part of, and not in addition to, the Total Revolving Commitment.

 

“Lead Arranger” means KeyBank National Association, in its capacity as sole lead arranger and sole book manager for the Credit Facilities.

 

“Leaseholds” means, with respect to any Person, all of the right, title and interest of such Person as lessee or licensee in, to and under leases and licenses of land, improvements and fixtures.

 

“Lender” and “Lenders” have the meaning provided in the first paragraph of this Agreement and includes any other Person that becomes a party hereto pursuant to an Assignment Agreement, other than any such Person that ceases to be a party hereto pursuant to an Assignment Agreement.  Unless the context otherwise requires, the term “Lenders” includes the Swing Line Lender.

 

“Lender Register” has the meaning provided in Section 2.08(b).

 

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“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 the Borrower and the Administrative Agent.

 

“Letter of Credit” means any standby Letter of Credit issued by the LC Issuer under this Agreement pursuant to Section 2.05 for the account of any LC Obligor and shall include the Existing Letters of Credit.

 

“Lien” means any mortgage, pledge, security interest, hypothecation, encumbrance, lien or charge of any kind (including any agreement to give any of the foregoing, any conditional sale or other title retention agreement or any financing lease in the nature thereof).  For the avoidance of doubt, and in accordance with Sections 9-509 and 9-510 of the UCC, to the extent UCC financing statement filed against a debtor is ineffective as a result of the fact that the secured party identified thereon is not authorized to file such UCC financing statement, such UCC financing statement shall not constitute a Lien for so long as such UCC financing statement remains ineffective under the UCC.

 

“Loan” means any Revolving Loan, Term Loan or Swing Loan.

 

“Loan Documents” means this Agreement, the Notes, the Collateral Documents, the Fee Letter, each Joinder Agreement, each Letter of Credit and each other LC Document, and any agreement creating or perfecting rights in Cash Collateral pursuant to Section 2.16 or any other applicable provision of this Agreement.

 

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

 

“Margin Stock” has the meaning provided in Regulation U.

 

“Master Agreement” has the meaning specified in the definition of “Hedge Agreement.”

 

“Material Adverse Effect” means any or all of the following: (a) any material adverse effect on the operations, business, properties or financial condition of the Borrower and its Subsidiaries, taken as a whole; (b) any material adverse effect on the ability of the Credit Parties, taken as a whole, to perform their obligations under the Loan Documents or a material impairment of the rights and remedies of the Administrative Agent or the Lenders under the Loan Documents; or (c) any material adverse effect on the validity, effectiveness or enforceability, as against any Credit Party, of the Loan Documents to which it is a party.

 

“Material Agreements” means any contract, agreement, license or arrangement to which a Credit Party is party that (a) the termination, expiration or breach of which could reasonably be expected to cause a Material Adverse Effect or (b) relates to any Material Indebtedness of such Person.

 

“Material Indebtedness” means, as to any Person, any particular Indebtedness of such Person (including any Guarantees of the Indebtedness of other Persons) in an aggregate principal amount of $10,000,000.

 

“Maturity Date” means the earlier of (a) the date that the applicable Commitments have been terminated pursuant to Section 9.02 and (b)(i) with respect to Revolving Loans and Letters of Credit, the Revolving Facility Maturity Date and (ii) with respect to the Term Loan, August 27, 2020.

 

“Maximum Rate” has the meaning provided in Section 11.22.

 

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“Minimum Borrowing Amount” means (i) with respect to any Base Rate Loan, $500,000, with minimum increments thereafter of $500,000, (ii) with respect to any Eurodollar Loan, $1,000,000, with minimum increments thereafter of $500,000, and (iii) with respect to Swing Loans, $500,000, with minimum increments thereafter of $100,000.

 

“Moody’s” means Moody’s Investors Service, Inc. and its successors.

 

“Mortgage Policies” has the meaning specified in Section 7.12(d)(iii).

 

“Mortgaged Properties” has the meaning specified in Section 7.12(d)(i).

 

“Mortgages” has the meaning specified Section 7.12(d)(i).

 

“Multiemployer Plan” means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which the Borrower 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 the aggregate cash or Cash Equivalents proceeds received by any Credit Party or any Subsidiary in respect of any Asset Sale, Debt Issuance or Insurance and Condemnation Event, net of (a) costs, fees and expenses (including, without limitation, legal, accounting and investment banking fees and expenses, relocation fees and expenses, remediation, repair or closure expenses, title insurance premiums, recordation, transfer or similar taxes and fees, and sales commissions, in each case paid or to be paid) associated therewith, (b) with respect to any Asset Sale, (i) amounts held in escrow or provided as a reserve to be applied as part of the purchase price of such Asset Sale and (ii) the principal amount, premium or penalty, if any, interest and other amounts paid with respect to any Indebtedness for borrowed money that is secured by the asset(s) sold in such Asset Sale and that is required to be permanently repaid with such proceeds (other than any such Indebtedness assumed by the purchaser of such asset(s), (c) any amount required to compensate or reimburse a Credit Party, including, without limitation, in connection with an indemnification payment and (d) any taxes paid or payable as a result thereof; it being understood that “Net Cash Proceeds” shall include, without limitation, any cash or Cash Equivalents received upon the sale or other disposition of any non-cash consideration received by any Credit Party or any Subsidiary in any Asset Sale, Debt Issuance or Insurance and Condemnation Event and, with respect to any Asset Sale, any cash released from escrow to a Credit Party or a Subsidiary as part of the purchase price in connection with such Asset Sale.

 

“Non-Credit Party” means a Subsidiary that is not a Credit Party.

 

“Non-Credit Party Exposure” means the aggregate amount, incurred on or after the Closing Date, of loans by a Credit Party to, investments by a Credit Party in, Guarantees by a Credit Party of Indebtedness of, and Letters of Credit issued to or for the benefit of, a Foreign Subsidiary that is a Non-Credit Party.

 

“Note” means a Revolving Facility Note, a Term Note or a Swing Line Note, as applicable.

 

“Notice of Borrowing” has the meaning provided in Section 2.06(b).

 

“Notice of Continuation or Conversion” has the meaning provided in Section 2.10(b).

 

“Notice Office” means the office of the Administrative Agent at 4900 Tiedeman Road Brooklyn, Ohio 44144, Attention: LaShawn Dalton (facsimile: (216) 370-6114; telephone: (216) 813-

 

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4819; email: Lashawn_Dalton@KeyBank.com), or such other office as the Administrative Agent may designate in writing to the Borrower from time to time.

 

“Notice of Swing Loan Refunding” has the meaning provided in Section 2.04(b).

 

“NPL” means the National Priorities List under CERCLA.

 

“Obligations” means all advances to, and debts, liabilities, obligations, covenants and duties of, any Credit Party arising under any Loan Document, or otherwise with respect to any Loan, Letter of Credit, Secured Cash Management Agreement or Secured Hedge Agreement, 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 Credit Party or any Subsidiary thereof 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 “Obligations” of a Guarantor shall exclude any Excluded Swap Obligations of such Guarantor.

 

“Operating Lease” as applied to any Person means any lease of any property (whether real, personal or mixed) by that Person as lessee that, in conformity with GAAP, is not accounted for as a Capital Lease on the balance sheet of that Person.

 

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

 

“Ordinary Course of Business” means, in respect of any transaction involving any Credit Party or any Subsidiary of a Credit Party, the ordinary course of such Person’s business, as conducted by such Person in accordance with past practice and undertaken in good faith (and not otherwise in violation of, or for the purpose of evading, any covenant or restriction in any Loan Document).

 

“Other Taxes” means all present or future stamp or documentary Taxes or any other excise or property Taxes, charges or similar levies 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.

 

“Participant” has the meaning specified in Section 11.06(c).

 

“Participant Register” has the meaning specified in Section 11.06(d).

 

“Patriot Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT Act) Act of 2001.

 

“Payment Office” means the office of the Administrative Agent at 4900 Tiedeman Road Brooklyn, Ohio 44144, Attention: LaShawn Dalton (facsimile: (216) 370-6114; telephone: (216) 813-4819; email: Lashawn_Dalton@KeyBank.com), or such other office as the Administrative Agent may designate in writing to the Borrower from time to time.

 

“PBGC” means the Pension Benefit Guaranty Corporation established pursuant to Section 4002 of ERISA, or any successor thereto.

 

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“Pension Plan” means any employee pension benefit plan within the meaning of Section 3(2) of ERISA (not including a Multiemployer Plan) that is maintained or is contributed to by the Borrower and any ERISA Affiliate and is either covered by Title IV of ERISA.

 

“Permitted Acquisition” means any Acquisition permitted by Section 8.05(i).

 

“Permitted Business” means the business engaged in by the Borrower and its Subsidiaries on the Closing Date, and businesses, operations and activities reasonably related and/or complementary or ancillary thereto and reasonable extensions and expansions thereof.

 

“Permitted Foreign Subsidiary Loans, Guaranties and Investments” means:

 

(a)                                 the investments by the Borrower or a Domestic Subsidiary in a Foreign Subsidiary, in such amounts existing as of the Closing Date and set forth on Schedule 8.05(o) hereto;

 

(b)                                 the loans by the Borrower or a Domestic Subsidiary to a Foreign Subsidiary, in such amounts existing as of the Closing Date and set forth on Schedule 8.05(o) hereto;

 

(c)                                  any investment by a Foreign Subsidiary in, or loan from a Foreign Subsidiary to, or guaranty from a Foreign Subsidiary of Indebtedness of, the Borrower or its Subsidiaries; and

 

(d)                                 any Non-Credit Party Exposure, not otherwise permitted under this definition, up to the aggregate amount for all Foreign Subsidiaries, when combined with all Permitted Investments, not to exceed $50,000,000 at any time outstanding.

 

“Permitted Investment” means an investment of the Borrower or its Subsidiaries in the stock (or other debt or equity instruments) of a Person (other than the Borrower or its Subsidiaries), so long as the aggregate amount of all such investments of the Borrower or its Subsidiaries (taken as a whole) does not exceed, at any time, an aggregate amount (as determined when each such investment is made) of $5,000,000 (net of any returns of capital realized on such investments).

 

“Permitted Lien” means any Lien permitted by Section 8.03.

 

“Permitted Refinancing Indebtedness” means with respect to any Indebtedness, any refinancing thereof; provided, however, that (i) no Event of Default shall have occurred and be continuing after giving effect thereto, (ii) any such refinancing Indebtedness shall (a) either (x) not have covenants, defaults, rights or remedies more burdensome in the aggregate to the obligor than the Indebtedness being refinanced or (y) not have covenants, defaults, rights or remedies more burdensome in the aggregate than the corresponding provisions of this Agreement, (b) not have a stated maturity or Weighted Average Life to Maturity that is shorter than the Indebtedness being refinanced, (c) be at least as subordinate to the Obligations as the Indebtedness being refinanced (and unsecured if the refinanced Indebtedness is unsecured), (d) not require the payment of cash interest earlier than was required by the terms of the Indebtedness being refinanced, and (e) be in an initial principal amount that does not exceed the principal amount so refinanced, plus all accrued and unpaid interest thereon, plus the stated amount of any premium and other payments required to be paid in connection with such refinancing pursuant to the terms of the Indebtedness being refinanced, plus, in either case, the amount of reasonable expenses of the Credit Parties or any of their Subsidiaries incurred in connection with such refinancing, and (iii) the obligors and/or guarantors on such refinancing Indebtedness shall be the same, or a subset of the, obligors and/or guarantors on such Indebtedness being refinanced.

 

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“Permitted Unsecured Debt” means any unsecured Indebtedness of the Borrower in the form of senior or subordinated unsecured notes issued pursuant to a public offering or pursuant to a Rule 144A transaction or other private placement transaction that (i) has a maturity date no earlier than the date that is six months after the Maturity Date of the Term Loan (or, if applicable, the maturity date of any then outstanding Incremental Facility structured as a separate term loan tranche) and (ii) does not have covenants, defaults, rights or remedies more burdensome in the aggregate than the corresponding provisions of the Loan Documents unless such provisions are added to the applicable Loan Documents; provided that in the case of subordinated unsecured notes, such notes are subordinated (by written terms or written agreement, in either case, in form and substance reasonably satisfactory to the Administrative Agent and the Required Lenders) in favor of the prior payment in full of the Obligations (other than Contingent Obligations).

 

“Person” means any individual, partnership, joint venture, firm, corporation, limited liability company, association, trust or other enterprise or any Governmental Authority.

 

“Platform” has the meaning specified in Section 7.01.

 

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

 

“Pro Forma Basis” means, in connection with the calculation as of the applicable Calculation Date of the financial covenant set forth in Section 8.07 in respect of a proposed transaction (a “Specified Transaction”) as of the date on which such Specified Transaction is to be effected, the making of such calculation after giving effect on a pro forma basis to:

 

(a)                                 the consummation of such Specified Transaction as of the first day of the applicable Calculation Period;

 

(b)                                 the assumption, incurrence or issuance of any Indebtedness by any of the Borrower and its Subsidiaries (including any Person which becomes a Subsidiary pursuant to or in connection with such Specified Transaction) in connection with such Specified Transaction, as if such Indebtedness had been assumed, incurred or issued (and the proceeds thereof applied) on the first day of such Calculation Period (with any such Indebtedness bearing interest at a floating rate being deemed to have an implied rate of interest for the applicable period equal to the rate which is or would be in effect with respect to such Indebtedness as of the applicable Calculation Date);

 

(c)                                  the permanent repayment, retirement or redemption of any Indebtedness (other than revolving Indebtedness, except to the extent accompanied by a permanent commitment reduction) by any of the Borrower and its Subsidiaries (including any Person which becomes a Subsidiary pursuant to or in connection with such Specified Transaction) in connection with such Specified Transaction, as if such Indebtedness had been repaid, retired or redeemed on the first day of such Calculation Period;

 

(d)                                 other than in connection with such Specified Transaction, any assumption, incurrence or issuance of any Indebtedness by any of the Borrower and its Subsidiaries during the period beginning with the first day of the applicable Calculation Period through and including the applicable Calculation Date, as if such Indebtedness had been assumed, incurred or issued (and the proceeds thereof applied) on the first day of such Calculation Period (with any such Indebtedness bearing interest at a floating rate being deemed to have an implied rate of interest for the applicable period equal to the weighted average of the interest rates actually in effect with

 

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respect to such Indebtedness during the portion of such period that such Indebtedness was outstanding); and

 

(e)                                  other than in connection with such Specified Transaction, the permanent repayment, retirement or redemption of any Indebtedness (other than revolving Indebtedness, except to the extent accompanied by a permanent commitment reduction) by any of the Borrower and its Subsidiaries during the period beginning with the first day of the applicable Calculation Period through and including the applicable Calculation Date, as if such Indebtedness had been repaid, retired or redeemed on the first day of such Calculation Period.

 

(f)                                   With respect to any Permitted Acquisition or Asset Sale occurring during the applicable Calculation Period, income statement and other balance sheet items attributable to the Person or property acquired and/or Person or assets disposed of, respectively, in such transaction shall be included or excluded, respectively, in such calculations, in each case to the extent related to such Calculation Period and in accordance with the principles set forth in Section 1.03(c).

 

“Pro Forma Compliance Certificate” means a certificate of an Authorized Officer of the Borrower delivered to the Administrative Agent in connection with the Specified Transaction, such certificate to contain reasonably detailed calculations in form and substance reasonably satisfactory to the Administrative Agent, upon giving effect to the applicable Specified Transaction on a Pro Forma Basis, of the financial covenant set forth in Section 8.07 for the applicable Calculation Period.

 

“Public Lender” has the meaning specified in Section 7.01.

 

“Qualified ECP Guarantor” shall mean, in respect of any Swap Obligation, each Credit Party that has total assets exceeding $10,000,000 at the time the relevant Guaranty or grant of the relevant security interest becomes effective with respect to such Swap Obligation or such other Credit Party as constitutes an “eligible contract participant” under the Commodity Exchange Act or any regulations promulgated thereunder and can cause another Person to qualify as an “eligible contract participant” at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

 

“Real Property” means, with respect to any Person at any time, all of the right, title and interest of such Person in and to land, together with improvements and fixtures thereon.

 

“Regulation D” means Regulation D of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor to all or a portion thereof establishing reserve requirements.

 

“Regulation U” means Regulation U of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor to all or a portion thereof establishing margin requirements.

 

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

 

“Release” or “Released” means any release, spill, leak, discharge, presence of, abandonment, disposal, pumping, pouring, emitting, emptying, injecting, leaching, dumping, depositing, dispersing, allowing to escape or migrate into or otherwise enter the environment (including ambient air, surface water, groundwater, wetlands, land, surface, and subsurface strata or within any building, structure, facility or fixture) of any Hazardous Materials.

 

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“Reportable Event” means any of the events set forth in Section 4043(c) of ERISA, except those events for which the 30 day notice period has been waived and where the Borrower would satisfy any financial soundness safe harbor set forth in regulations issued by the PBGC.

 

“Repricing Transaction” means (a) any prepayment or repayment of Term Loans in whole or in part with the proceeds of senior secured Indebtedness (including by way of conversion by a Lender of its Term Loans into new senior secured term loans) incurred by the Borrower or any of its Subsidiaries from a substantially concurrent issuance or incurrence of syndicated term loans provided by one or more banks or other financial institutions for which the “all-in yield” thereof is lower than the “all-in yield” on the date of such voluntary prepayment with respect to the Term Loans, (b) any amendment to this Agreement that reduces the “all-in yield” with respect to the Term Loans (in the case of each of clauses (a) and (b) above, as determined by the Administrative Agent consistent with generally accepted financial practice and, in any event, (x) excluding any structuring, arrangement, underwriting or similar fees paid or payable to the applicable lead arranger for such facility not shared with the applicable lenders and (y) including interest rate margins, any interest rate floors, original issue discount and upfront fees (based on the lesser of a four-year life to maturity and the remaining life to maturity for the purposes of determining any increases to the applicable interest rate margin) applicable to such new or replacement tranche of term loans) or (c) any prepayment made to a Lender as the result of a mandatory assignment of all or a portion of its Term Loans pursuant to Section 11.27 following such Lender’s failure to consent to an amendment of this Agreement described in clause (b) of this definition.

 

“Required Financial Information” means, with respect to each fiscal period or quarter of the Borrower and its Subsidiaries, (a) the financial statements required to be delivered pursuant to Section 7.01(a) or Section 7.01(b) for such fiscal period or quarter, and (b) the Compliance Certificate required by Section 7.01(c) to be delivered with the financial statements described in clause (a) above.

 

“Required Lenders” means, (a) at any time prior to the date on which the Commitments have been terminated, Lenders whose Credit Facility Exposure and Unused Revolving Commitments constitute more than 50% of the sum of the Aggregate Credit Facility Exposure and the Unused Total Revolving Commitment, and (b) at any time on or after the date on which the Commitments have been terminated, the Lender or Lenders that hold more than 50% of the sum of (i) the Aggregate Revolving Facility Exposure and (ii) the outstanding principal amount of the Term Loans.  The unfunded Commitments of, and the outstanding Loans, LC Outstandings and participations therein held or deemed held by any Defaulting Lender shall be excluded for the purposes of making a determination of Required Lenders.

 

“Required Revolving Lenders” means Revolving Lenders holding more than 50% of the sum of aggregate Revolving Commitments (or, if the Revolving Commitments have expired or been terminated, the aggregate unpaid principal amount of the Revolving Loans and participations in outstanding Letters of Credit and Swing Loans); provided that whenever there are one or more Defaulting Lenders, the unfunded Commitments of, and the outstanding Loans, LC Outstandings and participations therein held or deemed held by any Defaulting Lender shall be excluded for the purposes of making a determination of Required Revolving Lenders.

 

“Restricted Payment” means any dividend or other distribution (whether in cash, securities or other property) with respect to any Equity Interest of any Person or any of its 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 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 such Equity Interests.

 

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“Revolving Borrowing” means the incurrence of Revolving Loans consisting of one Type of Revolving Loan by the Borrower from all of the Lenders having Revolving Commitments in respect thereof on a pro rata basis on a given date (or resulting from Conversions or Continuations on a given date) in the same currency, having in the case of any Eurodollar Loans the same Interest Period.

 

“Revolving Commitment” means, with respect to each Revolving Lender, the obligation of such Lender to (a) make Revolving Loans to the Borrower pursuant to Section 2.02(b), (b) purchase participations in LC Outstandings and (c) purchase participations in Swing Loans, in an aggregate principal amount at any one time outstanding not to exceed the amount set forth opposite such Lender’s name in Schedule 1 as its “Revolving Commitment” or in the case of any Lender that becomes a party hereto pursuant to an Assignment Agreement, the amount set forth in such Assignment Agreement, as such commitment may be adjusted from time to time in accordance with this Agreement.

 

“Revolving Facility Availability Period” means the period from the Closing Date until the Revolving Facility Maturity Date.

 

“Revolving Facility Exposure” means, for any Lender at any time, the sum of (i) the principal amount of Revolving Loans made by such Lender and outstanding at such time, (ii) such Lender’s Applicable Percentage of the LC Outstandings at such time and (iii) such Lender’s Applicable Percentage of the outstanding Swing Loans at such time.

 

“Revolving Facility Incremental Lender” has the meaning specified in Section 11.12(b)(i).

 

“Revolving Facility Note” means a promissory note substantially in the form of Exhibit A-1.

 

“Revolving Facility Maturity Date” means August 27, 2018.

 

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

 

“Revolving Loan” means, with respect to each Lender, any loan made by such Lender pursuant to Section 2.02(b).

 

“Sale and Leaseback Transaction” means, with respect to any Credit Party or any Subsidiary, any arrangement, directly or indirectly, with any Person whereby such Credit Party or such Subsidiary shall sell or transfer any property used or useful in its business, whether now owned or hereafter acquired, and thereafter rent or lease such property or other property that it intends to use for substantially the same purpose or purposes as the property being sold or transferred.

 

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

 

“SEC” means the United States Securities and Exchange Commission.

 

“SEC Regulation D” means Regulation D as promulgated under the Securities Act of 1933.

 

“Secured Cash Management Agreement” means any Cash Management Agreement to which a Credit Party is a party and to which the applicable counterparty is a Cash Management Bank.

 

“Secured Creditors” means, collectively, the Administrative Agent, the Lenders, the LC Issuer, the Swing Line Lender, each Hedge Bank that is party to a Secured Hedge Agreement, each Cash Management Bank that is party to a Secured Cash Management Agreement, each co-agent or sub-agent

 

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appointed by the Administrative Agent, any other holder of the Obligations, and the respective successors and assigns of each of the foregoing.

 

“Secured Hedge Agreement” means any Hedge Agreement required or permitted under Article VII or VIII to which a Credit Party is a party and to which the applicable counterparty is a Hedge Bank.

 

“Securitization Transaction” means, with respect to any Person, any financing transaction or series of financing transactions (including factoring arrangements) pursuant to which such Person or any Subsidiary of such Person may sell, convey or otherwise transfer, or grant a security interest in, accounts, payments, receivables, rights to future lease payments or residuals or similar rights to payment to a special purpose subsidiary or affiliate of such Person.

 

“Security Agreement” means the Security and Pledge Agreement, dated as of the Closing Date, among the Credit Parties and the Administrative Agent.

 

“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 (taken as a going concern) 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 general 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 generally pay its debts and liabilities, contingent obligations and other commitments as they mature in the Ordinary Course of Business.  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.

 

“Specified Credit Party” shall mean means each Credit Party that is, at the time on which the relevant Guarantee or grant of the relevant security interest under the Loan Documents by such Credit Party becomes effective with respect to a Swap Obligation, a corporation, partnership, proprietorship, organization, trust or other entity that would not be an “eligible contract participant” under the Commodity Exchange Act at such time but for the effect of Section 4.08.

 

“Specified Transaction” has the meaning specified in the definition of “Pro Forma Basis”.

 

“Stated Amount” of each Letter of Credit at any time means the maximum amount available to be drawn thereunder at such time (regardless of whether any conditions or other requirements for drawing could then be met).

 

“Subsidiary” of any Person means (a) any corporation more than 50% of whose stock of any class or classes having by the terms thereof ordinary voting power to elect a majority of the directors of such corporation (irrespective of whether or not at the time stock of any class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time owned by such Person directly or indirectly through Subsidiaries, and (b) any partnership, limited liability company, association, joint venture or other entity in which such Person directly or indirectly through Subsidiaries, owns more than 50% of the Equity Interests of such Person at the time or in which such Person, one or more other Subsidiaries of such Person or such Person and one or more Subsidiaries of such Person, directly or indirectly, has the power to direct the policies, management and affairs thereof.

 

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Unless otherwise expressly provided, all references herein to “Subsidiary” shall mean a Subsidiary of the Borrower.

 

“Subsidiary Guarantor” has the meaning provided in the introductory paragraph hereof.

 

“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.

 

“Swing Line Sublimit” means, at any time, the lesser of (a) the Total Revolving Commitment then in effect and (b) $10,000,000.  The Swing Line Sublimit is part of, and not in addition to, the Total Revolving Commitment.

 

“Swing Line Lender” means KeyBank or any successor Swing Line Lender hereunder.

 

“Swing Line Note” means a promissory note substantially in the form of Exhibit A-3.

 

“Swing Loan” means any loan made by the Swing Line Lender pursuant to Section 2.04.

 

“Swing Loan Maturity Date” means, with respect to any Swing Loan, the earlier of (i) the last day of the period for such Swing Loan as established by the Swing Line Lender and agreed to by the Borrower, which shall be 30 days or less, and (ii) the Revolving Facility Maturity Date.

 

“Swing Loan Participation” has the meaning provided in Section 2.04(c).

 

“Swing Loan Participation Amount” has the meaning provided in Section 2.04(c).

 

“Swing Loan Purchase Date” has the meaning provided in Section 2.04(c).

 

“Synthetic Lease” means any synthetic lease, tax retention Operating Lease, off-balance sheet loan or similar off-balance sheet financing arrangement whereby the arrangement is considered borrowed money indebtedness for tax purposes but is classified as an Operating Lease or does not otherwise appear on a balance sheet under GAAP.

 

“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 Borrowing” means the incurrence of Term Loans consisting of one Type of Term Loan by the Borrower from all of the Lenders having Term Commitments in respect thereof on a pro rata basis on a given date (or resulting from Conversions or Continuations on a given date) in the same currency, having in the case of any Eurodollar Loans the same Interest Period.

 

“Term Commitment” means, with respect to each Lender, the obligation of such Lender to make Term Loans to the Borrower on the Closing Date in the amount set forth opposite such Lender’s name in Schedule 1 as its “Term Commitment”.  As of the Closing Date, the amount of the Term Commitments of all the Lenders is $300,000,000.

 

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

 

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“Term Note” means a promissory note substantially in the form of Exhibit A-2.

 

“Term Loan” means, with respect to each Lender, any loan made by such Lender pursuant to Section 2.02(a).

 

“Test Date” has the meaning provided in the definition of “Immaterial Subsidiary”.

 

“Total Revolving Commitment” means, at any time, the sum of the Revolving Commitments of the Revolving Lenders in effect at such time.  As of the Closing Date, the amount of the Total Revolving Commitment is $100,000,000.

 

“Transaction” means, collectively, (a) the entering into by the Credit Parties and their applicable Subsidiaries of the Loan Documents to which they are or are intended to be a party, (b) the refinancing of certain outstanding Indebtedness of the Borrower and its Subsidiaries and the termination of all commitments with respect thereto, and (c) the payment of the fees and expenses incurred in connection with the consummation of the foregoing.

 

“Treasury Regulations” means the United States Treasury regulations promulgated under the Code.

 

“Type” means any type of Loan determined with respect to the interest option and currency denomination applicable thereto, which in each case shall be a Base Rate Loan or a Eurodollar Loan.

 

“UCC” means the Uniform Commercial Code as in effect from time to time.  Unless otherwise specified, the UCC shall refer to the UCC as in effect in the State of New York.

 

“United States” and “U.S.” each means United States of America.

 

“Unreimbursed Drawing” means, with respect to any Letter of Credit, the aggregate amount of the draws made on such Letter of Credit that have not been reimbursed by the Borrower or the applicable LC Obligor or converted to a Revolving Loan pursuant to Section 2.05(f)(i), and, in each case, all interest that accrues thereon pursuant to this Agreement.

 

“Unused Revolving Commitment” means, for any Lender at any time, the excess of (i) such Lender’s Revolving Commitment at such time over (ii) such Lender’s Revolving Facility Exposure at such time.

 

“Unused Total Revolving Commitment” means, at any time, the excess of (i) the Total Revolving Commitment at such time over (ii) the Aggregate Revolving Facility Exposure at such time.

 

“U.S. Person” means any Person that is a “United States person” as defined in Section 7701(a)(30) of the Code.

 

“Voting Stock” means, with respect to any Person, Equity Interests issued by such Person the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such Person, even though the right so to vote has been suspended by the happening of such a contingency.

 

“Weighted Average Life to Maturity” means when applied to any Indebtedness at any date, the number of years obtained by dividing: (i) the sum of the products obtained by multiplying (a) the amount of each then remaining installment, sinking fund, serial maturity or other required payments of principal,

 

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including payment at final maturity, in respect thereof, by (b) the number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment; by (ii) the then outstanding principal amount of such Indebtedness.

 

Section 1.02                                       Computation of Time Periods.  In this Agreement in the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including,” the words “to” and “until” each means “to but excluding” and the word “through” means “through and including.”

 

Section 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, applied in a manner consistent with that used in preparing the Audited Financial Statements, 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 FAS 141R, FASB ASC 825 and FASB ASC 470-20 on financial liabilities shall be disregarded.

 

(b)                           Changes in GAAP.  If at any time any change in GAAP would affect the computation of any financial ratio or requirement or any covenant set forth in any Loan Document, the application of any representation or warranty or any other provision hereof and either the Borrower or the Required Lenders shall so request, the Administrative Agent, the Lenders and the Borrower shall negotiate in good faith to amend such ratio or requirement or covenant to preserve the original intent thereof in light of such change in GAAP (subject to the approval of the Required Lenders); provided  that, if any party shall so request, then until so amended, (i) 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.

 

(c)                            Effect of Acquisitions and Asset Sales.  Notwithstanding anything to the contrary contained herein, the parties hereto acknowledge and agree that, for purposes of all calculations made under the financial covenant set forth in Section 8.07 (including without limitation for purposes of the definition of “Pro Forma Basis” set forth in Section 1.01), (i) after consummation of a divestiture of any Subsidiary or business or line of business (A) income statement items (whether positive or negative) attributable to the Person or property disposed of shall be excluded, and (B) Indebtedness which is retired shall be excluded and deemed to have been retired as of the first day of the applicable period and (ii) after consummation of any Permitted Acquisition (A) income statement items (whether positive or negative) attributable to the Person or property acquired, to the extent not otherwise included in such income statement items for the Borrower and its Subsidiaries in accordance with GAAP or in accordance with any defined terms set forth in Section 1.01, shall be included to the extent relating to any period applicable in such calculations, and (B) to the extent not retired in connection with such acquisition, Indebtedness of the Person or property acquired shall be deemed to have been incurred as of the first day of the applicable period.

 

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Section 1.04                                       Terms Generally.  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, (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person’s successors and permitted assigns, (c) the words “herein,” “hereof” and “hereunder,” and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Sections, Schedules and Exhibits shall be construed to refer to Sections of, and Schedules and Exhibits to, this Agreement, (e) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all Real Property, tangible and intangible assets and properties, including cash, securities, accounts and contract rights, and interests in any of the foregoing, and (f) any reference to any law shall include all statutory and regulatory rules, regulations, orders and 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. 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.”  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.

 

Section 1.05                                       Times of Day; Deliveries.  Except as otherwise specifically provided herein, all references herein to times of day shall be references to Eastern time (daylight or standard, as applicable).  If any payment, document or other delivery to be made by the Borrower shall come due or deliverable on a day other than a Business Day, payment or delivery shall be made on the next succeeding Business Day, and, to the extent applicable, such extension of time shall be reflected in computing interest or fees, as the case may be.

 

Section 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 LC 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.

 

ARTICLE II

 

THE TERMS OF THE CREDIT FACILITIES

 

Section 2.01                                       Establishment of the Credit Facilities.  On the Closing Date, and subject to and upon the terms and conditions set forth in this Agreement and the other Loan Documents, the Administrative Agent, the Lenders, the Swing Line Lender and the LC Issuer agree to establish the Credit Facilities for the benefit of the Borrower; provided, however, that at no time will (i) the Aggregate Credit Facility Exposure exceed the Aggregate Commitments, (ii) the Aggregate Revolving Facility Exposure exceed the Total Revolving Commitment or (iii) the Credit Facility Exposure of any Lender exceed the aggregate amount of such Lender’s Commitment.

 

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Section 2.02                                       Revolving Loans and Term Loans.

 

(a)                                 The Term Loan.  Subject to the terms and conditions set forth herein, each Term Lender severally agrees to make a single loan to the Borrower on the Closing Date in an amount equal to such Term Lender’s Term Commitment.  Term Loans may, at the option of the Borrower, be incurred and maintained as, or Converted into, Term Loans that are Base Rate Loans or Eurodollar Loans; provided that all Term Loans made as part of the same Term Borrowing shall consist of Term Loans of the same Type.  Amounts borrowed under this Section 2.02(a) and repaid or prepaid may not be reborrowed.

 

(b)                                 Revolving Loans. During the Revolving Facility Availability Period, each Revolving Lender severally agrees, on the terms and conditions set forth in this Agreement, to make a Revolving Loan or Revolving Loans to the Borrower from time to time pursuant to such Lender’s Revolving Commitment, which Revolving Loans (i) may, except as set forth herein, at the option of the Borrower, be incurred and maintained as, or Converted into, Revolving Loans that are Base Rate Loans or Eurodollar Loans and (ii) may be repaid or prepaid and reborrowed in accordance with the provisions hereof; provided that, after giving effect to any Revolving Borrowing (A) the Revolving Facility Exposure of any Lender shall not exceed such Lender’s Revolving Commitment and (B) the Aggregate Revolving Facility Exposure shall not exceed the Total Revolving Commitment.

 

Section 2.03                                       [Reserved]

 

Section 2.04                                       Swing Line.

 

(a)                                 Swing Loans.  During the Revolving Facility Availability Period, the Swing Line Lender agrees, on the terms and conditions set forth in this Agreement and in reliance on the agreements of the Revolving Lenders set forth in this Section 2.04, to make a Swing Loan or Swing Loans to the Borrower from time to time, which Swing Loans (i) shall be payable on the Swing Loan Maturity Date applicable to each such Swing Loan; (ii) shall be made only in U.S. Dollars and (iii) may be repaid or prepaid and reborrowed in accordance with the provisions hereof; provided, however, that after giving effect to any Swing Loan (A) the aggregate principal amount of Swing Loans outstanding shall not exceed the Swing Line Sublimit, (B) the Revolving Facility Exposure of any Lender shall not exceed such Lender’s Revolving Commitment and (C) the Aggregate Revolving Facility Exposure shall not exceed the Total Revolving Commitment; provided  further that no Swing Loan shall be made if the proceeds thereof would be used to repay, in whole or in part, any outstanding Swing Loan.  No more than five Swing Loans may be outstanding at any time.  Notwithstanding the foregoing, the Swing Line Lender shall not be obligated to make a Swing Loan if at that time any Revolving Lender is at that time a Defaulting Lender, unless the Swing Line Lender has entered into agreements (including delivery of Cash Collateral reasonably satisfactory to the Swing Line Lender with the Borrower and/or such Revolving Lender to eliminate the Swing Line Lender’s Fronting Exposure with respect to the Defaulting Lender (after giving effect to Section 2.15(a)(iv)) arising from either the Swing Loan then proposed to be issued or that Swing Line Lender and all other Swing Loans to which the Swing Line Lender has actual or potential Fronting Exposure in respect of such Defaulting Lender).

 

(b)                                 Swing Loan Refunding.  The Swing Line Lender may at any time, in its sole and absolute discretion, direct that the Swing Loans owing to it be refunded by delivering a notice to such effect to the Administrative Agent and the Borrower, specifying the aggregate principal amount thereof (a “Notice of Swing Loan Refunding”).  Promptly upon receipt of a Notice of

 

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Swing Loan Refunding, the Administrative Agent shall give notice of the contents thereof to the Lenders with Revolving Commitments and the Borrower.  Each such Notice of Swing Loan Refunding shall be deemed to constitute delivery by the Borrower of a Notice of Borrowing requesting Revolving Loans consisting of Base Rate Loans in the amount of the Swing Loans to which it relates.  Each Lender with a Revolving Commitment (including the Swing Line Lender) hereby unconditionally agrees (notwithstanding that any of the conditions specified in Section 5.02 or elsewhere in this Agreement shall not have been satisfied, but subject to the provisions of paragraph (d) below) to make a Revolving Loan to the Borrower in the amount of such Lender’s Applicable Percentage of the aggregate amount of the Swing Loans to which such Notice of Swing Loan Refunding relates.  Each such Lender shall make the amount of such Revolving Loan available to the Administrative Agent in immediately available funds at the Payment Office not later than 1:00 P.M., if such notice is received by such Lender prior to 11:00 A.M., or not later than 1:00 P.M. on the next Business Day, if such notice is received by such Lender after such time (and the Administrative Agent may apply Cash Collateral available with respect to the applicable Swing Loan).  The proceeds of such Revolving Loans shall be made immediately available to the Swing Line Lender and applied by it to repay the principal amount of the Swing Loans to which such Notice of Swing Loan Refunding relates.

 

(c)                                  Swing Loan Participation.  If prior to the time a Revolving Loan would otherwise have been made as provided above as a consequence of a Notice of Swing Loan Refunding, an Event of Default shall have occurred and be continuing or one or more of the Lenders with Revolving Commitments shall determine that it is legally prohibited from making a Revolving Loan under such circumstances, each Lender (other than the Swing Line Lender), or each Lender (other than such Swing Line Lender) so prohibited, as the case may be, shall, on the date such Revolving Loan would have been made by it (the “Swing Loan Purchase Date”), purchase an undivided participating interest (a “Swing Loan Participation”) in the outstanding Swing Loans to which such Notice of Swing Loan Refunding relates, in an amount (the “Swing Loan Participation Amount”) equal to such Lender’s Applicable Percentage of such outstanding Swing Loans.  On the Swing Loan Purchase Date, each such Lender or each such Lender so prohibited, as the case may be, shall pay to the Swing Line Lender, in immediately available funds, such Lender’s Swing Loan Participation Amount, and promptly upon receipt thereof the Swing Line Lender shall, if requested by such other Lender, deliver to such Lender a participation certificate, dated the date of the Swing Line Lender’s receipt of the funds from, and evidencing such Lender’s Swing Loan Participation in, such Swing Loans and its Swing Loan Participation Amount in respect thereof.  If any amount required to be paid by a Lender to the Swing Line Lender pursuant to the above provisions in respect of any Swing Loan Participation is not paid on the date such payment is due, such Lender shall pay to the Swing Line Lender on demand interest on the amount not so paid at the overnight Federal Funds Effective Rate from the due date until such amount is paid in full.  Whenever, at any time after the Swing Line Lender has received from any other Lender such Lender’s Swing Loan Participation Amount, the Swing Line Lender receives any payment from or on behalf of the Borrower on account of the related Swing Loans, the Swing Line Lender will promptly distribute to such Lender its ratable share of such amount based on its Applicable Percentage of such amount on such date on account of its Swing Loan Participation (appropriately adjusted, in the case of interest payments, to reflect the period of time during which such Lender’s participating interest was outstanding and funded); provided, however, that if such payment received by the Swing Line Lender is required to be returned, such Lender will return to the Swing Line Lender any portion thereof previously distributed to it by the Swing Line Lender.

 

(d)                                 Obligations Unconditional.  Each Lender’s obligation to make Revolving Loans pursuant to Section 2.04(b) and/or to purchase Swing Loan Participations in connection with a Notice of Swing Loan Refunding shall be subject to the conditions that (i) such Lender shall have

 

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received a Notice of Swing Loan Refunding complying with the provisions hereof and (ii) at the time the Swing Loans that are the subject of such Notice of Swing Loan Refunding were made, the Swing Line Lender making the same had no actual written notice from another Lender that an Event of Default had occurred and was continuing, but otherwise shall be absolute and unconditional, shall be solely for the benefit of the Swing Line Lender, and shall not be affected by any circumstance, including, without limitation, (A) any set-off, counterclaim, recoupment, defense or other right that such Lender may have against any other Lender, any Credit Party, or any other Person, or any Credit Party may have against any Lender or other Person, as the case may be, for any reason whatsoever; (B) the occurrence or continuance of a Default or Event of Default; (C) any event or circumstance involving a Material Adverse Effect; (D) any breach of any Loan Document by any party thereto; or (E) any other circumstance, happening or event, whether or not similar to any of the foregoing.

 

Section 2.05                                       Letters of Credit.

 

(a)                                 The Letter of Credit Commitment.

 

(i)                                     Subject to the terms and conditions set forth herein (A) the Borrower may request the LC Issuer at any time and from time to time to issue, for the account of any the Borrower or any Subsidiary of the Borrower, and (B) the LC Issuer agrees, in reliance on the agreements of the Revolving Lenders set forth herein, to issue from time to time Letters of Credit denominated and payable in Dollars, and to amend or extend Letters of Credit previously issued by it, and in each case in such form as may be reasonably approved by the LC Issuer and the Administrative Agent; provided, however, that after giving effect to any LC Issuance (1) the LC Outstandings shall no exceed the LC Sublimit, (2) the Revolving Facility Exposure of any Lender shall not exceed such Lender’s Revolving Commitment and (3) the Aggregate Revolving Facility Exposure shall not exceed the Total Revolving Commitment.  Subject to Section 2.05(c) below, each Letter of Credit shall have an expiry date (including any renewal periods) occurring not later than the earlier of (A) one year from the date of issuance thereof, or (B) thirty (30) days prior to the Revolving Facility Maturity Date.  On the Closing Date, the LC Issuer shall be deemed, without further action by any party hereto, to have granted to each LC Participant and each LC Participant shall be deemed to have purchased from the LC Issuer a participation in each Existing Letter of Credit in accordance with Section 2.05(g) below.  On and after the Closing Date, each Existing Letter of Credit shall constitute a Letter of Credit for the purposes hereof.

 

(ii)                                  The LC Issuer shall be under no obligation to issue any Letter of Credit if (A) subject to Section 2.05(c), the expiry date of the requested Letter of Credit would occur more than twelve months after the date of issuance or last extension; (B) the expiry date of the requested Letter of Credit would occur after the Revolving Facility Maturity Date; (C) any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain the LC Issuer from issuing the Letter of Credit, or any Law applicable to the LC Issuer or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over the LC Issuer shall prohibit, or request that the LC Issuer refrain from, the issuance of letters of credit generally or the Letter of Credit in particular or shall impose upon the LC Issuer with respect to the Letter of Credit any restriction, reserve or capital requirement (for which the LC Issuer is not otherwise compensated hereunder) not in effect on the Closing Date, or shall impose upon the LC Issuer any unreimbursed loss, cost or expense which was not applicable on the Closing Date (for which the LC Issuer is not otherwise compensated hereunder) and which the LC Issuer in good faith deems material to it; (D) the issuance of the Letter of Credit would violate one or more policies of the LC Issuer applicable to borrowers generally; (E) the Letter of Credit is in an initial Stated Amount of less than $250,000;

 

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(F) the Letter of Credit is to be denominated in a currency other than Dollars, (G) the Letter of Credit contains any provision for automatic reinstatement of the Stated Amount after any drawing thereunder or (H) any Revolving Lender is at that time a Defaulting Lender, unless LC Issuer has entered into arrangements, including delivery of Cash Collateral satisfactory to the LC Issuer (in its sole discretion) with the Borrower and/or such Revolving Lender to eliminate the LC Issuer’s Fronting Exposure (after giving effect to Section 2.15(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 LC Outstandings as to which the LC Issuer has actual or potential Fronting Exposure in respect of such Defaulting Lender.  The Lender shall be under no obligation to amend any Letter of Credit if (A) the Lender 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 thereof.

 

(b)                                 LC Requests.  Whenever the Borrower desires that a Letter of Credit be issued for its account or the account of any eligible LC Obligor, the Borrower shall give the Administrative Agent and the LC Issuer written or telephonic notice (in the case of telephonic notice, promptly confirmed in writing if so requested by the Administrative Agent) which, if in the form of written notice, shall be substantially in the form of Exhibit B-3 (each such request, a “LC Request”), or transmit by electronic communication (if arrangements for doing so have been approved by the LC Issuer), prior to 11:00 a.m. at least three Business Days (or such shorter period as may be reasonably acceptable to the relevant LC Issuer) prior to the proposed date of issuance (which shall be a Business Day), which LC Request shall include such supporting documents that the LC Issuer customarily requires in connection therewith (including, in the case of a Letter of Credit for an account party other than the Borrower, an application for, and if applicable a reimbursement agreement with respect to, such Letter of Credit).  In the event of any inconsistency between any of the terms or provisions of any LC Document and the terms and provisions of this Agreement respecting Letters of Credit, the terms and provisions of this Agreement shall control.

 

(c)                                  Auto-Renewal Letters of Credit.  If an LC Obligor so requests in any applicable LC Request, the LC Issuer shall issue a Letter of Credit that has automatic renewal provisions; provided, however, that any Letter of Credit that has automatic renewal provisions must permit the LC Issuer to prevent any such renewal 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 in each such twelve-month period to be agreed upon at the time such Letter of Credit is issued.  Once any such Letter of Credit that has automatic renewal provisions has been issued, the Lenders shall be deemed to have authorized (but may not require) the LC Issuer to permit the renewal of such Letter of Credit at any time to an expiry date not later than thirty (30) days prior to the Revolving Facility Maturity Date; provided, however, that the LC Issuer shall not permit any such renewal if (i) the LC Issuer has determined that it would have no obligation at such time to issue such Letter of Credit in its renewed form under the terms hereof, or (ii) it has received notice (which may be by telephone or in writing) on or before the day that is two Business Days before the date that the LC Issuer is permitted to send a notice of non-renewal from the Administrative Agent, any Lender or the Borrower that one or more of the applicable conditions specified in Section 5.02 is not then satisfied.

 

(d)                                 Applicability of ISP.  Unless otherwise expressly agreed by the LC Issuer and the applicable LC Obligor, when a Letter of Credit is issued (including any such agreement applicable to an Existing Letter of Credit), the rules of the “International Standby Practices 1998” published by the Institute of International Banking Law & Practice (or such later version thereof as may be in effect at the time of issuance) shall apply to each Letter of Credit.

 

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(e)                                  Notice of LC Issuance.  The LC Issuer shall, on the date of each LC Issuance by it, give the Administrative Agent, each applicable Lender and the Borrower written notice of such LC Issuance, accompanied by a copy to the Administrative Agent of the Letter of Credit or Letters of Credit issued by it.  The LC Issuer shall provide to the Administrative Agent a quarterly (or monthly if requested by any applicable Lender) summary describing each Letter of Credit issued by the LC Issuer and then outstanding and an identification for the relevant period of the daily aggregate LC Outstandings represented by Letters of Credit issued by the LC Issuer.

 

(f)                                   Reimbursement Obligations.

 

(i)                                     Upon receipt from the beneficiary of any Letter of Credit of any notice of drawing under such Letter of Credit, the LC Issuer shall notify the Borrower and the Administrative Agent thereof.  Not later than 11:00 a.m. on the date one Business Day after the day of any payment by the LC Issuer under a Letter of Credit (each such date, an “Honor Date”), the Borrower shall reimburse the LC Issuer (or cause it to be reimbursed) by making payment directly to the LC Issuer in immediately available funds in Dollars at the payment office of the LC Issuer in an amount equal to such drawing.  To the extent reimbursement is not so made when required, (A) the Borrower will be deemed to have given a Notice of Borrowing for Revolving Loans that are Base Rate Loans in an aggregate principal amount sufficient to reimburse any such Unreimbursed Drawing (plus interest at the rate provided below in this Section 2.05(f)(i)) and the Administrative Agent shall promptly give notice to the Lenders of such deemed Notice of Borrowing, and (B) the Lenders shall, subject to Section 5.02, make the Revolving Loans contemplated by such deemed Notice of Borrowing (which Revolving Loans shall be considered made under Section 2.02), and the proceeds of such Revolving Loans shall be disbursed directly to the LC Issuer to the extent necessary to effect such reimbursement and repayment of the Unreimbursed Drawing, with any excess proceeds to be made available to the Borrower in accordance with the applicable provisions of this Agreement.  To the extent such Unreimbursed Drawing is not reimbursed prior to 1:00 P.M. on the date such reimbursement is required to be made pursuant to the foregoing, interest on such Unreimbursed Drawing shall accrue, from and including the date paid or disbursed to but not including the date the LC Issuer is reimbursed therefor at a rate per annum that shall be the rate then applicable to Revolving Loans pursuant to Section 2.09(a)(i) that are Base Rate Loans; provided, however, if such amount cannot be reimbursed on the date of such payment or disbursement because one or more conditions precedent to such Credit Event cannot be satisfied, such amount shall thereafter bear interest at the applicable Default Rate, and shall be payable on demand.

 

(ii)                                  Obligations Absolute.  The Borrower’s obligation under this Section 2.05 to reimburse (or to cause any LC Obligor for whose account a Letter of Credit was issued to reimburse) the LC Issuer with respect to Unreimbursed Drawings (including, in each case, interest thereon) shall be absolute and unconditional under any and all circumstances and irrespective of any setoff, counterclaim or defense to payment that such LC Obligor may have or have had against the LC Issuer, the Administrative Agent or any Lender, including, without limitation, any defense based upon the failure of any drawing under a Letter of Credit to conform to the terms of the Letter of Credit or any non-application or misapplication by the beneficiary of the proceeds of such drawing; provided, however, that no LC Obligor shall be obligated to reimburse the LC Issuer for any wrongful payment made by the LC Issuer under a Letter of Credit as a result of acts or omissions constituting willful misconduct or gross negligence on the part of the LC Issuer.

 

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(g)                                  LC Participations.

 

(i)                                     Immediately upon each LC Issuance, the LC Issuer shall be deemed to have sold and transferred to each Lender with a Revolving Commitment, and each such Lender (each an “LC Participant”) shall be deemed irrevocably and unconditionally to have purchased and received from the LC Issuer, without recourse or warranty, an undivided interest and participation in (an “LC Participation”), to the extent of such Lender’s Applicable Percentage of the Stated Amount of such Letter of Credit in effect at such time of issuance, such Letter of Credit, each substitute Letter of Credit, each drawing made thereunder, the obligations of any LC Obligor under this Agreement with respect thereto (although the LC Fee described in Section 2.11(b) relating thereto shall be payable directly to the Administrative Agent for the account of the Lenders as provided in Section 2.11(b), and the LC Participants shall have no right to receive any portion of any fees of the nature contemplated by Section 2.11(c) or (d), the obligations of any LC Obligor under any LC Documents pertaining thereto, and any security for, or guaranty pertaining to, any of the foregoing).

 

(ii)                                  In determining whether to pay under any Letter of Credit, the LC Issuer shall not have any obligation relative to the LC Participants other than to determine that any documents required to be delivered under such Letter of Credit have been delivered and that they appear to comply on their face with the requirements of such Letter of Credit.  Any action taken or omitted to be taken by the LC Issuer under or in connection with any Letter of Credit, if taken or omitted in the absence of gross negligence or willful misconduct, shall not create for the LC Issuer any resulting liability.

 

(iii)                               If the LC Issuer makes any payment under any Letter of Credit and the LC Issuer shall not have been reimbursed for such amount in full pursuant to Section 2.05(f), the LC Issuer shall promptly notify the Administrative Agent, and the Administrative Agent shall promptly notify each LC Participant of such failure, and each LC Participant shall promptly and unconditionally pay to the Administrative Agent for the account of the LC Issuer (and the Administrative Agent may apply Cash Collateral provided for this purpose), the amount of such LC Participant’s Applicable Percentage of such payment in Dollars and in same-day funds; provided, however, that no LC Participant shall be obligated to pay to the Administrative Agent its Applicable Percentage of such unreimbursed amount for any wrongful payment made by the LC Issuer under a Letter of Credit as a result of acts or omissions constituting willful misconduct or gross negligence on the part of the LC Issuer.  If the Administrative Agent so notifies any LC Participant required to fund a payment under a Letter of Credit prior to 11:00 A.M. on any Business Day, such LC Participant shall make available to the Administrative Agent for the account of the relevant LC Issuer such LC Participant’s Applicable Percentage of the amount of such payment on such Business Day in same-day funds.  If and to the extent such LC Participant shall not have so made its Applicable Percentage of the amount of such payment available to the Administrative Agent for the account of the relevant LC Issuer, such LC Participant agrees to pay to the Administrative Agent for the account of the LC Issuer, forthwith on demand, such amount, together with interest thereon, for each day from such date until the date such amount is paid to the Administrative Agent for the account of the LC Issuer at the Federal Funds Effective Rate.  The failure of any LC Participant to make available to the Administrative Agent for the account of the relevant LC Issuer its Applicable Percentage of any payment under any Letter of Credit shall not relieve any other LC Participant of its obligation hereunder to make available to the Administrative Agent for the account of the LC Issuer its Applicable Percentage of any payment under any Letter of Credit on the date required, as specified above, but no LC Participant shall be responsible for the failure of any other LC Participant to make available to the Administrative Agent for the account of the LC Issuer such other LC Participant’s Applicable Percentage of any such payment.

 

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(iv)                              Whenever the LC Issuer receives a payment of a reimbursement obligation as to which the Administrative Agent has received for the account of the LC Issuer any payments from the LC Participants pursuant to subpart (iii) above, the LC Issuer shall pay to the Administrative Agent and the Administrative Agent shall promptly pay to each LC Participant that has paid its Applicable Percentage thereof, in same-day funds, an amount equal to such LC Participant’s Applicable Percentage of the principal amount thereof and interest thereon accruing after the purchase of the respective LC Participations, as and to the extent so received.

 

(v)                                 The obligations of the LC Participants to make payments to the Administrative Agent for the account of the LC Issuer with respect to Letters of Credit shall be irrevocable and not subject to counterclaim, set-off or other defense or any other qualification or exception whatsoever and shall be made in accordance with the terms and conditions of this Agreement under all circumstances, including, without limitation, any of the following circumstances:

 

(A)                               any lack of validity or enforceability of this Agreement or any of the other Loan Documents;

 

(B)                               the existence of any claim, set-off defense or other right that any LC Obligor may have at any time against a beneficiary named in a Letter of Credit, any transferee of any Letter of Credit (or any Person for whom any such transferee may be acting), the Administrative Agent, the LC Issuer, any Lender, or other Person, whether in connection with this Agreement, any Letter of Credit, the transactions contemplated herein or any unrelated transactions (including any underlying transaction between the applicable LC Obligor and the beneficiary named in any such Letter of Credit), other than any claim that the applicable LC Obligor may have against any LC Issuer for gross negligence or willful misconduct of the LC Issuer in making payment under any applicable Letter of Credit;

 

(C)                               any draft, certificate or other document presented under the 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;

 

(D)                               the surrender or impairment of any security for the performance or observance of any of the terms of any of the Loan Documents; or

 

(E)                                the occurrence of any Default or Event of Default.

 

(vi)                              To the extent the LC Issuer is not indemnified by the Borrower, the LC Participants will reimburse and indemnify the LC Issuer, in proportion to their respective Applicable Percentages, for and against any and all liabilities, obligations, losses, damages, penalties, claims, actions, judgments, costs, expenses or disbursements of whatsoever kind or nature that may be imposed on, asserted against or incurred by the LC Issuer in performing its respective duties in any way related to or arising out of LC Issuances by it; provided, however, that no LC Participants shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, claims, actions, judgments, costs, expenses or disbursements resulting from the LC Issuer’s gross negligence or willful misconduct.

 

(h)                                 Role of LC Issuer with respect to Letters of Credit.  The Borrower agrees that, in paying any drawing under a Letter of Credit, the LC Issuer shall not have any responsibility to obtain any document (other than any sight draft, certificates and documents expressly required by such Letter of Credit) or to ascertain or inquire as to the validity or accuracy of any such document

 

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or the authority of the Person executing or delivering any such 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 LC Issuer, the Lenders, any of their Related Parties nor any correspondent or assignee of the LC Issuer shall be liable for any of the matters described in clauses (A) through (E) of Section 2.05(g)(v); provided, however, that anything in such clauses to the contrary notwithstanding, the Borrower may have a claim against the LC Issuer, and the LC 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 the LC Issuer’s willful misconduct or gross negligence or the LC Issuer’s willful 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, the LC Issuer may accept documents that appear on their face to be in order, without responsibility for further investigation, regardless of any notice or information to the contrary, and the LC 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.

 

(i)                                     Conflict with Issuer Documents.  In the event of any conflict between the terms hereof and the terms of any LC Documents, the terms hereof shall control.

 

(j)                                    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 LC 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.

 

Section 2.06                                       Notice of Borrowing.

 

(a)                                 Time of Notice.  Each Borrowing of a Loan (other than a Continuation or Conversion) shall be made upon notice in the form provided for below which shall be provided by the Borrower to the Administrative Agent at its Notice Office not later than (i) in the case of each Borrowing of a Eurodollar Loan, 1:00 P.M. at least three Business Days’ prior to the date of such Borrowing, (ii) in the case of each Borrowing of a Base Rate Loan, prior to 1:00 P.M. on the proposed date of such Borrowing, and (iii) in the case of any Borrowing of Swing Loans, prior to 2:00 P.M. on the proposed date of such Borrowing.

 

(b)                                 Notice of Borrowing.  Each request for a Borrowing (other than a Continuation or Conversion) shall be made by an Authorized Officer of the Borrower by delivering written notice of such request substantially in the form of Exhibit B-1 (each such notice, a “Notice of Borrowing”) or by telephone (to be confirmed immediately in writing by delivery by an Authorized Officer of the Borrower of a Notice of Borrowing), and in any event each such request shall be irrevocable and shall specify (i) the aggregate principal amount of the Loans to be made pursuant to such Borrowing, (ii) the date of the Borrowing (which shall be a Business Day), (iii) the Type of Loans such Borrowing will consist of, and (iv) in the case of a Eurodollar Loan, the initial Interest Period and (v) in the case of a Swing Loan, the applicable Swing Loan Maturity Date (which shall be no later than the 30th day following the day on which the Borrowing occurs).  If the applicable Notice of Borrowing fails to specify (i) a Type of Loan, then the applicable Loans

 

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shall be made as Base Rate Loans and (ii) with respect to a Eurodollar Loan, an Interest Period, the Borrower will be deemed to have specified an Interest Period of one month.  Without in any way limiting the obligation of the Borrower to confirm in writing any telephonic notice permitted to be given hereunder, the Administrative Agent may act prior to receipt of written confirmation without liability upon the basis of such telephonic notice believed by the Administrative Agent in good faith to be from an Authorized Officer of the Borrower entitled to give telephonic notices under this Agreement on behalf of the Borrower.  In each such case, the Administrative Agent’s record of the terms of such telephonic notice shall be conclusive absent manifest error.

 

(c)                                  Minimum Borrowing Amount.  The aggregate principal amount of each Borrowing by the Borrower shall not be less than the Minimum Borrowing Amount.

 

(d)                                 Maximum Borrowings.  More than one Borrowing may be incurred hereunder on any day; provided, however, that (i) if there are two or more Borrowings on a single day by the Borrower that consist of Eurodollar Loans, each such Borrowing shall have a different initial Interest Period, (ii) at no time shall there be more than seven Borrowings of Eurodollar Loans outstanding hereunder and (iii) at no time shall there be more than five Borrowings of Swing Loans outstanding hereunder.

 

Section 2.07                                       Funding Obligations; Disbursement of Funds.

 

(a)                                 Several Nature of Funding Obligations.  The Commitments of each Lender hereunder and the obligation of each Lender to make Loans, acquire and fund Swing Loan Participations, and LC Participations, as the case may be, are several and not joint obligations.  No Lender shall be responsible for any default by any other Lender in its obligation to make Loans or fund any participation hereunder and each Lender shall be obligated to make the Loans provided to be made by it and fund its participations required to be funded by it hereunder, regardless of the failure of any other Lender to fulfill any of its Commitments hereunder.  Nothing herein and no subsequent termination of the Commitments pursuant to Section 2.12 shall be deemed to relieve any Lender from its obligation to fulfill its commitments hereunder and in existence from time to time or to prejudice any rights that the Borrower may have against any Lender as a result of any default by such Lender hereunder.

 

(b)                                 Borrowings Pro Rata.  Except with respect to the making of Swing Loans by the Swing Line Lender, all Revolving Loans and Term Loans hereunder shall be made and LC Participations acquired by each applicable Lender on a pro rata basis based upon each Lender’s Applicable Percentage of the amount of such Borrowing or Letter of Credit in effect on the date the applicable Borrowing is to be made or the Letter of Credit is to be issued.  Swing Loan Participations shall be acquired by each applicable Lender on a pro rata basis based upon each Lender’s Applicable Percentage of the amount of such Swing Loan as provided in Section 2.04(c).

 

(c)                                  Notice to Lenders. The Administrative Agent shall promptly give each Lender, as applicable, written notice (or telephonic notice promptly confirmed in writing) of each proposed Borrowing, or Conversion or Continuation thereof, and LC Issuance, and of such Lender’s proportionate share thereof or participation therein and of the other matters covered by the Notice of Borrowing, Notice of Continuation or Conversion, or LC Request, as the case may be, relating thereto.

 

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(d)                                 Funding of Loans.

 

(i)                                     Loans Generally.  No later than 2:00 p.m. on the date specified in each Notice of Borrowing, each Lender will make available its amount, if any, of each Borrowing requested to be made on such date to the Administrative Agent at the Payment Office in Dollars and in immediately available funds and the Administrative Agent promptly will make available to the Borrower by depositing to its account at the Payment Office (or such other account as the Borrower shall specify) the aggregate of the amounts so made available in the type of funds received.

 

(ii)                                  Swing Loans.  No later than 3:00 p.m. on the date specified in each Notice of Borrowing, the Swing Line Lender will make available to the Borrower by depositing to its account at the Payment Office (or such other account as the Borrower shall specify) the aggregate of Swing Loans requested in such Notice of Borrowing.

 

(e)                                  Advance Funding.  Unless the Administrative Agent shall have been notified by any Lender prior to the date of Borrowing that such Lender does not intend to make available to the Administrative Agent its portion of the Borrowing or Borrowings to be made on such date, the Administrative Agent may assume that such Lender has made such amount available to the Administrative Agent on such date of Borrowing, and the Administrative Agent, in reliance upon such assumption, may (in its sole discretion and without any obligation to do so) make available to the Borrower a corresponding amount.  If such corresponding amount is not in fact made available to the Administrative Agent by such Lender and the Administrative Agent has made the same available to the Borrower, the Administrative Agent shall be entitled to recover such corresponding amount from such Lender.  If such Lender does not pay such corresponding amount forthwith upon the Administrative Agent’s demand therefor, the Administrative Agent shall promptly notify the Borrower, and the Borrower shall within one Business Day pay such corresponding amount to the Administrative Agent.  The Administrative Agent shall also be entitled to recover from such Lender or the Borrower, as the case may be, interest on such corresponding amount in respect of each day from the date such corresponding amount was made available by the Administrative Agent to the Borrower to the date such corresponding amount is recovered by the Administrative Agent at a rate per annum equal to (i) if paid by such Lender, the overnight Federal Funds Effective Rate or (ii) if paid by the Borrower, the then-applicable rate of interest, calculated in accordance with Section 2.09, for the respective Loans (but without any requirement to pay any amounts in respect thereof pursuant to Section 3.05).

 

Section 2.08                                       Evidence of Obligations.

 

(a)                                 Loan Accounts of Lenders.  Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the Obligations of the Borrower to such Lender resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder.

 

(b)                                 Loan Accounts of Administrative Agent; Lender Register.  The Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan and Borrowing made hereunder, the Type thereof, the currency in which such Loan is denominated, the Interest Period and applicable interest rate and, in the case of a Swing Loan, the Swing Loan Maturity Date applicable thereto, (ii) the amount and other details with respect to each Letter of Credit issued hereunder, (iii) the amount of any principal due and payable or to become due and payable from the Borrower to each Lender hereunder, (iv) the amount of any sum received by the Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof, and (v) the other details relating to the Loans, Letters of Credit and other Obligations.  In addition, the Administrative Agent, acting solely for this purpose as an agent of the Borrower (and such

 

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agency being solely for tax purposes), shall maintain a register (the “Lender Register”) on or in which it will record the names and addresses of the Lenders and any LC Issuer, and the Commitments, and principal amount of the Loans and LC Outstandings owing to each of the Lenders pursuant to the terms hereof from time to time.  Notwithstanding anything in this Agreement to the contrary, each Person whose name is recorded in the Lender Register pursuant to the terms hereof shall be treated as a Lender or LC Issuer, as applicable, for all purposes hereunder.  The Administrative Agent will make the Lender Register available to any Lender or the Borrower upon its request.

 

(c)                                  Effect of Loan Accounts, etc.  The entries made in the accounts maintained pursuant to Section 2.08(b) shall be prima facie evidence of the existence and amounts of the Obligations recorded therein; provided, that the failure of the Administrative Agent to maintain such accounts or any error (other than manifest error) therein shall not in any manner affect the obligation of any Credit Party to repay or prepay the Loans or the other Obligations in accordance with the terms of this Agreement.

 

(d)                                 Notes.  Upon request of any Lender or the Swing Line Lender, the Borrower will execute and deliver to such Lender or the Swing Line Lender, as the case may be, (i) a Revolving Facility Note with blanks appropriately completed in conformity herewith to evidence the Borrower’s obligation to pay the principal of, and interest on, the Revolving Loans made to it by such Lender, (ii) a Term Note with blanks appropriately completed in conformity herewith to evidence the Borrower’s obligation to pay the principal of, and interest on, the Term Loans made to it by such Lender and (iii) a Swing Line Note with blanks appropriately completed in conformity herewith to evidence the Borrower’s obligation to pay the principal of, and interest on, the Swing Loans made to it by the Swing Line Lender; provided, however, that the decision of any Lender or the Swing Line Lender to not request a Note shall in no way detract from the Borrower’s obligation to repay the Loans and other amounts owing by the Borrower to such Lender or the Swing Line Lender.

 

Section 2.09                                       Interest; Default Rate.

 

(a)                                 Interest on Revolving Loans.  The outstanding principal amount of each Revolving Loan made by each Lender shall bear interest at a fluctuating rate per annum that shall at all times be equal to (i) during such periods as such Revolving Loan is a Base Rate Loan, the Base Rate plus the Applicable Margin in effect from time to time, and (ii) during such periods as such Revolving Loan is a Eurodollar Loan, the relevant Eurodollar Rate for such Eurodollar Loan for the applicable Interest Period plus the Applicable Margin in effect from time to time.

 

(b)                                 Interest on Term Loans.  The outstanding principal amount of each Term Loan made by each Lender shall bear interest at a fluctuating rate per annum that shall at all times be equal to (i) during such periods as such Term Loan is a Base Rate Loan, the Base Rate plus the Applicable Margin in effect from time to time, and (ii) during such periods as such Term Loan is a Eurodollar Loan, the relevant Eurodollar Rate for such Eurodollar Loan for the applicable Interest Period plus the Applicable Margin in effect from time to time; provided, however, in no event shall (i) the Eurodollar Rate be less than 1.00% for the purposes of these interest calculations with respect to Term Loans and (ii) the Base Rate be less than 2.00% for the purposes of these interest calculation with respect to Term Loans.

 

(c)                                  Interest on Swing Loans.  The outstanding principal amount of each Swing Loan shall bear interest from the date of the Borrowing at a rate per annum that shall be equal to the 

 

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Base Rate plus the Applicable Margin then in effect for Revolving Loans that are Base Rate Loans.  Each Swing Loan shall bear interest for a minimum of one day.

 

(d)                                 Default Interest.  Notwithstanding the above provisions, (i) immediately upon the occurrence of an Event of Default under Section 9.01(h) or (ii) at the election of the Required Lenders (or the Administrative Agent at the direction of the Required Lenders), upon the occurrence of any Event of Default under Section 9.01(a), (A) the principal amount of all outstanding Obligations hereunder shall bear interest, payable on demand, at a rate per annum equal to the Default Rate, and (B) the LC Fee shall be increased by an additional 2% per annum in excess of the LC Fee otherwise applicable thereto.  In addition, if any amount (other than amounts as to which the foregoing subparts (A) and (B) are applicable) payable by the Borrower under the Loan Documents is not paid when due, whether at stated maturity, by acceleration, or otherwise, at the election of the Required Lenders (or the Administrative Agent at the direction of the Required Lenders), such amount shall bear interest, payable on demand, at a rate per annum equal to the Default Rate.

 

(e)                                  Accrual and Payment of Interest.  Interest shall accrue from and including the date of any Borrowing to but excluding the date of any prepayment or repayment thereof and shall be payable by the Borrower as follows: (i) in respect of each Base Rate Loan, quarterly in arrears on the last Business Day of each March, June, September and December, (ii) in respect of each Eurodollar Loan, on the last day of each Interest Period applicable thereto and, in the case of an Interest Period in excess of three months, on the dates that are successively three months after the commencement of such Interest Period, and (iii) in respect of any Swing Loan, on the Swing Loan Maturity Date applicable thereto and (iv) in respect of any interest payable pursuant to Section 2.09(d), on demand.

 

(f)                                   Computations of Interest.  All computations of interest on Eurodollar Loans and Swing Loans hereunder shall be made on the actual number of days elapsed over a year consisting of 360 days.  All computations of interest on Base Rate Loans (including Base Rate Loans determined by reference to the Eurodollar Rate) and Unreimbursed Drawings hereunder shall be made on the actual number of days elapsed over a year consisting of 365 or 366 days, as applicable.

 

(g)                                  Information as to Interest Rates.  The Administrative Agent, upon determining the interest rate for any Borrowing, shall promptly notify the Borrower and the Lenders thereof.  Any changes in the Applicable Margin shall be determined by the Administrative Agent in accordance with the provisions set forth in the definition of “Applicable Margin” and the Administrative Agent will promptly provide notice of such determinations to the Borrower and the Lenders.  Any such determination by the Administrative Agent shall be conclusive and binding absent manifest error.

 

(h)                                 Retroactive Adjustments of the Applicable Margin.  If, as a result of any restatement of or other adjustment to the financial statements of the Borrower or for any other reason, the Borrower or the Required Lenders determine that (i) the Consolidated Total Net Leverage Ratio as calculated by the Borrower as of any applicable date was inaccurate and (ii) a proper calculation of the Consolidated Total Net Leverage Ratio would have resulted in a higher Applicable Margin for such period the Borrower shall be obligated to pay to the Administrative Agent for the account of the applicable Lenders or the LC Issuer, as the case may be, promptly on demand by the Administrative Agent (or, after the occurrence of an actual or deemed entry of an order for relief with respect to the Borrower under the Bankruptcy Code, automatically and without further action by the Administrative Agent, any Lender or the LC Issuer), an amount equal 

 

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to the excess of the amount of interest and fees that should have been paid for such period over the amount of interest and fees actually paid for such period.  This Section 2.09(h) shall not limit the rights of the Administrative Agent, any Lender or the LC Issuer, as the case may be, under any other provision of this Agreement.  The Borrower’s obligations under this paragraph shall survive the termination of the Total Revolving Commitment and the repayment of all other Obligations hereunder.

 

Section 2.10                                       Conversion and Continuation of Loans.

 

(a)                                 Conversion and Continuation of Revolving Loans.  The Borrower shall have the right, subject to the terms and conditions of this Agreement, to (i) Convert all or a portion of the outstanding principal amount of Loans of one Type made to it into a Borrowing or Borrowings of another Type of Loans that can be made to it pursuant to this Agreement and (ii) Continue a Borrowing of Eurodollar Loans, as the case may be, at the end of the applicable Interest Period as a new Borrowing of Eurodollar Loans with a new Interest Period; provided, however, that (i) if the Borrower effects any Conversion of Eurodollar Loans into Base Rate Loans on a date other than the last day of an Interest Period for such Eurodollar Loans, the Borrower shall pay on demand any amounts due to the Lenders under Section 3.05 and (ii) during the existence and continuation of (A) an Event of Default under Sections 9.01(a) or 9.01(h) and (B) any other Event of Default following written notice from the Administrative Agent at the direction of the Required Lenders, no Loans may be Continued as or Converted to Eurodollar Loans.

 

(b)                                 Notice of Continuation and Conversion.  Each Continuation or Conversion of a Loan shall be made upon notice in the form provided for below provided by the Borrower to the Administrative Agent at its Notice Office not later than (i) in the case of each Continuation of or Conversion into a Eurodollar Loan, prior to 1:00 P.M. at least three Business Days’ prior to the date of such Continuation or Conversion, and (ii) in the case of each Conversion to a Base Rate Loan, prior to 1:00 P.M. on the proposed date of such Conversion.  Each such request shall be made by an Authorized Officer of the Borrower delivering written notice of such request substantially in the form of Exhibit B-2 (each such notice, a “Notice of Continuation or Conversion”) or by telephone (to be confirmed immediately in writing by delivery by an Authorized Officer of the Borrower of a Notice of Continuation or Conversion), and in any event each such request shall be irrevocable and shall specify (A) the Borrowings to be Continued or Converted, (B) the date of the Continuation or Conversion (which shall be a Business Day), and (C) the Interest Period or, in the case of a Continuation, the new Interest Period.  If a Notice of Continuation or Conversion delivered by the Borrower fails to specify an Interest Period, the Borrower will be deemed to have specified and Interest Period of one month.  Without in any way limiting the obligation of the Borrower to confirm in writing any telephonic notice permitted to be given hereunder, the Administrative Agent may act prior to receipt of written confirmation without liability upon the basis of such telephonic notice believed by the Administrative Agent in good faith to be from an Authorized Officer of the Borrower entitled to give telephonic notices under this Agreement on behalf of the Borrower.  In each such case, the Administrative Agent’s record of the terms of such telephonic notice shall be conclusive absent manifest error.

 

Section 2.11                                       Fees.

 

(a)                                 Commitment Fees.  The Borrower shall pay to the Administrative Agent, for the account of each Revolving Lender in accordance with its Applicable Percentage, a Commitment Fee (the “Commitment Fee”) equal to the Applicable Margin times the actual daily amount by which the Total Revolving Commitment exceeds the sum of (i) the aggregate principal amount of the Revolving Loans and (ii) the LC Outstandings (subject to adjustment as provided in Section

 

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2.15).  The Commitment Fee shall accrue at all times during the Revolving Facility Availability Period, including at any time during which one or more of the conditions in Article V 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 Closing Date, and on the last day of the Revolving Facility Availability Period.  Swing Loans shall not count as usage of the Revolving Commitments and a reduction of available Revolving Commitments for the purposes of the calculation of the Commitment Fee pursuant to this Section 2.11(a).

 

(b)                                 LC Fees.  The Borrower agrees to pay to the Administrative Agent, for the ratable benefit of each Lender with a Revolving Commitment based upon each such Lender’s Applicable Percentage, a fee in respect of each Letter of Credit issued hereunder for the period from the date of issuance of such Letter of Credit until the expiration or termination date thereof (including any extensions of such expiration date that may be made at the election of the account party or the beneficiary), computed for each day at a rate per annum equal to the Applicable Margin times the daily amount available to be drawn under such Letter of Credit.  For the purposes of computing the daily amount available to be drawn under such Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.06.  The foregoing fee shall be payable quarterly in arrears on the last Business Day of  March, June, September and December and on the Revolving Facility Maturity Date; provided, however, any such LC 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 LC Issuer pursuant to Section 2.05 and Section 2.16 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 2.15(a)(iv), with the balance of such fee, if any, payable to the LC Issuer for its own account.

 

(c)                                  Fronting Fees.  The Borrower agrees to pay directly to the LC Issuer, for its own account, a fronting fee in respect of each Letter of Credit issued by it, payable quarterly in arrears, computed at the rate of 0.25% per annum on the Stated Amount thereof for the period from the date of issuance (or increase, renewal or extension) to the expiration date thereof (including any extensions or early terminations of such expiration date which may be made at the election of the beneficiary thereof).

 

(d)                                 Additional Charges of LC Issuer.  The Borrower agrees to pay directly to the LC Issuer upon each LC Issuance, drawing under, or amendment, extension, renewal or transfer of, a Letter of Credit issued by it such amount as shall at the time of such LC Issuance, drawing under, amendment, extension, renewal or transfer be the processing charge that the LC Issuer is then customarily charging for issuances of, drawings under or amendments, extensions, renewals or transfers of, letters of credit issued by it.

 

(e)                                  Administrative Agent Fees.  The Borrower shall pay to the Administrative Agent, on the Closing Date and thereafter, for its own account, the fees set forth in the Fee Letter.

 

(f)                                   Computations of Fees.  All computations of Commitment Fees pursuant to Section 2.11(a), LC Fees and fronting fees hereunder shall be made on the actual number of days elapsed over a year consisting of 360 days.  With respect to the fees payable pursuant to Sections 2.11(a) and (b) above, if there is any change in the Applicable Margin during any quarter, the actual daily amount shall be computed and multiplied by the Applicable Margin separately for each period during such quarter that such Applicable Margin was in effect.

 

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Section 2.12                                       Termination and Reduction of Commitments.

 

(a)                                 Mandatory Termination of Revolving Commitments.  All of the Revolving Commitments shall terminate on the Revolving Facility Maturity Date.

 

(b)                                 Voluntary Termination of the Total Revolving Commitment.  Upon at least three Business Days’ prior irrevocable (except as provided below) written notice (or telephonic notice confirmed in writing) by the Borrower to the Administrative Agent at its Notice Office (which notice the Administrative Agent shall promptly transmit to each of the Lenders), the Borrower shall have the right to terminate in whole the Total Revolving Commitment; provided that (i) all outstanding Revolving Loans and Unreimbursed Drawings are contemporaneously prepaid in accordance with Section 2.13 and (ii) either (A) there are no outstanding Letters of Credit, (B) the Borrower shall contemporaneously cause all outstanding Letters of Credit to be surrendered for cancellation, or (C) the Borrower shall have made other arrangements with respect to such Letters of Credit satisfactory to the Administrative Agent and LC Issuer; provided further that a notice of termination of the Total Revolving Commitment may state that such notice is conditioned on the effectiveness of other credit facilities, in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied.

 

(c)                                  Partial Reduction of Total Revolving Commitment.  Upon at least three Business Days’ prior irrevocable written notice (except as provided below) (or telephonic notice confirmed in writing) to the Administrative Agent at its Notice Office (which notice the Administrative Agent shall promptly transmit to each of the Lenders), the Borrower shall have the right to partially and permanently reduce the Unused Total Revolving Commitment; provided, however, that (i) any such reduction shall apply to proportionately (based on each Lender’s Applicable Percentage) and permanently reduce the Revolving Commitment of each Lender, (ii) in the event that such reduction shall result in a Total Revolving Commitment that is less than the then-effective LC Sublimit, such reduction shall apply to permanently reduce the LC Sublimit to an amount equal to the then effective Total Revolving Commitment (as so reduced), (iii) no such reduction shall be permitted if the Borrower would be required to make a mandatory prepayment of Loans or cash collateralize Letters of Credit pursuant to Section 2.13, and (iv) any partial reduction shall be in the amount of at least $5,000,000 (or, if greater, in integral multiples of $200,000); provided, further, that a notice of partial reduction of the Total Revolving Commitment may state that such notice is conditioned on the occurrence of other transactions, in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied.

 

(d)                                 Term Commitments.  The aggregate Term Commitments shall be automatically and permanently reduced to zero on the date of the Term Borrowing.

 

Section 2.13                                       Voluntary, Scheduled and Mandatory Prepayments of Loans.

 

(a)                                 Voluntary Prepayments.  The Borrower shall have the right to prepay from time to time any of the Loans owing hereunder, in whole or in part, without premium or penalty (except as specified in subparts (c) and (e) below). The Borrower shall give the Administrative Agent at the Notice Office written or telephonic notice (in the case of telephonic notice, promptly confirmed in writing if so requested by the Administrative Agent) of its intent to prepay the Loans, the amount of such prepayment and (in the case of Eurodollar Loans) the specific Borrowing(s) pursuant to which the prepayment is to be made, which notice shall be received by the Administrative Agent by (x) 11:00 a.m. two Business Days prior to the date of such prepayment, in the case of any prepayment of Eurodollar Loans, (y) 11:00 a.m. on the date of such prepayment, in the case of any prepayment of Base Rate Loans (other than Swing Loans), and (z) by 11:00 a.m. on the date of 

 

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such prepayment, in the case of any prepayment of Swing Loans, and which notice shall promptly be transmitted by the Administrative Agent to each of the affected Lenders; provided that:

 

(i)                                     each partial prepayment of the Loans pursuant to this Section 2.13(a) shall be in an aggregate principal amount of at least (A) in the case of any prepayment of a Eurodollar Loan, $500,000 (or, if less, the full amount of such Borrowing), or an integral multiple of $250,000 in excess thereof (or, if less, the full amount of such Borrowing), (B) in the case of any prepayment of a Base Rate Loan, $500,000 (or, if less, the full amount of such Borrowing), or an integral multiple of $250,000 in excess thereof (or, if less, the full amount of such Borrowing), and (C) in the case of any prepayment of a Swing Loan, in the full amount thereof;

 

(ii)                                  each voluntary prepayment of a Term Loan shall be applied to the remaining principal payments of such Term Loan as directed by the Borrower, and each such prepayment shall be paid to the Lenders in accordance with their respective Applicable Percentages thereof;

 

(iii)                               with respect to any such voluntary prepayment, the Borrower shall designate the Types of Loans that are to be repaid or prepaid and the specific Borrowing(s) pursuant to which such repayment or prepayment is to be made; provided, however, that (i) the Borrower shall first so designate all Loans that are Base Rate Loans and Eurodollar Loans with Interest Periods ending on the date of repayment or prepayment prior to designating any other Eurodollar Loans for repayment or prepayment, and (ii) if the outstanding principal amount of Eurodollar Loans made pursuant to a Borrowing is reduced below the applicable Minimum Borrowing Amount as a result of any such repayment or prepayment, then all the Loans outstanding pursuant to such Borrowing shall, in the case of Eurodollar Loans, be Converted into Base Rate Loans.  In the absence of a designation by the Borrower as described in the preceding sentence, the Administrative Agent shall, subject to the above, make such designation in its sole discretion with a view, but no obligation, to minimize breakage costs owing under Article III.

 

If such notice of voluntary prepayment is given by the Borrower pursuant to this Section 2.13(a), the Borrower shall make such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein; provided that if a notice of prepayment is given in connection with a conditional notice of termination of the Revolving Commitments as contemplated by Section 2.12(b) or (c), then such notice of prepayment may be revoked if such notice of termination is revoked in accordance with Section 2.12(b) or (c).

 

(b)                                 Mandatory Payments.  The Loans shall be subject to mandatory repayment or prepayment, and the LC Outstandings shall be subject to cash collateralization requirements, in accordance with the following provisions:

 

(i)                                     Maturity.  The entire principal amount of all outstanding Loans of each Credit Facility shall be repaid in full on the applicable Maturity Date for such Credit Facility.

 

(ii)                                  Revolving Loans Exceed the Revolving Commitments.  If on any date (after giving effect to any other payments on such date) (A) the Revolving Facility Exposure of any Lender exceeds such Lender’s Revolving Commitment or (B) the Aggregate Revolving Facility Exposure exceeds the Total Revolving Commitment, then, in the case of each of the foregoing, the Borrower shall, within one Business Day, prepay Revolving Loans, Swing Loans and Unreimbursed Drawings and/or Cash Collateralize the LC Outstandings in an aggregate amount at least equal to such excess.

 

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(iii)                               LC Outstandings Exceed LC Sublimit.  If on any date the LC Outstandings exceed the LC Sublimit, then the applicable LC Obligor or the Borrower shall, on such day, at the option of the Borrower, either, within one Business Day, (A) amend to reduce, or cancel and terminate, outstanding Letters of Credit in an amount sufficient to eliminate such excess or (B) pay (or cause to be paid) to the Administrative Agent an amount in cash equal to such excess and the Administrative Agent shall hold such payment as security for the reimbursement obligations of the applicable LC Obligors hereunder in respect of Letters of Credit pursuant to a cash collateral agreement to be entered into in form and substance reasonably satisfactory to the Administrative Agent, the LC Issuer and the Borrower (which shall permit certain investments in Cash Equivalents reasonably satisfactory to the Administrative Agent, the LC Issuer and the Borrower until the proceeds are applied to any Unreimbursed Drawing or to any other Obligations in accordance with any such cash collateral agreement and which shall provide for regular remittance to the Borrower of any interest accrued on such cash collateral amount).

 

(iv)                              Excess Cash Flow.  Within 5 days after the earlier of (A) the date the Required Financial Information is delivered for each fiscal year and (B) the date the Required Financial Information is required to be delivered with respect to each fiscal year of the Borrower (commencing with the fiscal year ending December 31, 2014), the Borrower shall prepay the Loans and/or Cash Collateralize the LC Outstandings in an aggregate amount equal to (i) an amount equal to (A) if the Consolidated Total Net Leverage Ratio as of the end of such fiscal year is equal to or greater than 3.25 to 1.00, 50% and (B) if the Consolidated Total Net Leverage Ratio as of the end of such fiscal year is less than 3.25 to 1.00 but equal to or greater than 2.75 to 1.00, 25%, of Excess Cash Flow for such fiscal year less (ii) an amount equal to the sum of (A) the aggregate principal amount of all voluntary prepayments of the Term Loans made by the Borrower during such fiscal year and (B) all voluntary prepayments of Revolving Loans made by the Borrower during such fiscal year  to the extent accompanied by an equivalent permanent reduction of the Revolving Commitments (such prepayment to be applied as set forth in clause (ix) below).  Notwithstanding the foregoing, if the Consolidated Total Net Leverage Ratio as of the end of such fiscal year is less than 2.75 to 1.00, no prepayment from Excess Cash Flow shall be required pursuant to this clause (iv) for such fiscal year.

 

(v)                                 Asset Sales.  Not later than five Business Days following the receipt by a Credit Party (or a Subsidiary) of cash proceeds in respect of any Asset Sale or related series of Asset Sales (other than an Excluded Asset Sale) for which the Net Cash Proceeds exceed $1,000,000, the Borrower shall prepay the Loans and/or Cash Collateralize the LC Outstandings in an aggregate amount equal to 100% of the Net Cash Proceeds derived from such Asset Sale (or related series of Asset Sales) (such prepayment to be applied as set forth in clause (ix) below); provided, however, that, so long as no Event of Default shall have occurred and be continuing, such Net Cash Proceeds shall not be required to be so applied to the extent the Borrower delivers to the Administrative Agent a certificate stating that it intends to use such Net Cash Proceeds to acquire assets used or useful in the business of the Borrower and its Subsidiaries (which will become Collateral if the assets sold or disposed of were Collateral) within 270 days of the receipt of such Net Cash Proceeds, it being expressly agreed that any Net Cash Proceeds not so reinvested within such 270 day period shall be paid to the Administrative Agent and applied to repay the Loans and/or cash collateralize the LC Outstandings within two Business Days following the expiration of such period.

 

(vi)                              Debt Issuances.  Not later than five Business Days following the receipt by any Credit Party or any of its Subsidiaries of proceeds from any Debt Issuance, the Borrower shall prepay the Loans and/or Cash Collateralize the LC Outstandings in an aggregate amount equal to 

 

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100% of the Net Cash Proceeds of such Debt Issuance (such prepayment to be applied as set forth in clause (ix) below).

 

(vii)                           [Reserved].

 

(viii)                        Insurance and Condemnation Event.  Not later than five Business Days following an Insurance and Condemnation Event, the Borrower shall prepay the Loans and/or Cash Collateralize the LC Outstandings in an aggregate amount equal to 100% of the Net Cash Proceeds received as a result of such Insurance and Condemnation Event (such prepayment to be applied as set forth in clause (ix) below); provided, however, that, so long as no Event of Default shall have occurred and be continuing, such Net Cash Proceeds shall not be required to be so applied to the extent the Borrower delivers to the Administrative Agent a certificate stating that it intends to use such Net Cash Proceeds to either (A) replace or repair the assets affected by such Insurance and Condemnation Event or (B) acquire assets used or useful in the business of the Borrower and its Subsidiaries (in each case which will become Collateral if the assets affected by such Insurance and Condemnation Event were Collateral) within 270 days of the receipt of such Net Cash Proceeds, it being expressly agreed that any Net Cash Proceeds not reinvested within such 270 day period shall be paid to the Administrative Agent and applied to repay the Loans and/or cash collateralize the LC Outstandings within two Business Days following the expiration of such period.

 

(ix)                              Application of Mandatory Prepayments.  All amounts required to be prepaid pursuant to clauses (iv), (v), (vi) or (viii) of this Section 2.13(b) shall be applied as follows: (A) first, to the Term Loans (ratably to the remaining principal installments thereof (including the principal installment due on the applicable Maturity Date)) until paid in full, (B) second, to outstanding Swing Loans, (C) third, to the outstanding Revolving Loans (without a corresponding permanent reduction in the Total Revolving Commitment) and (D) fourth, paid to the Administrative Agent, which shall hold such amounts as security for the reimbursement obligations of the Borrower hereunder in respect of Letters of Credit pursuant to a cash collateral agreement to be entered into in form and substance reasonably satisfactory to the Administrative Agent, each LC Issuer and the Borrower until the proceeds are applied to any Unreimbursed Drawing or to any other Obligations in accordance with any such cash collateral agreement and which shall provide for regular remittance to the Borrower of any interest accrued on such cash collateral amount.  Within each such category, such prepayments shall be applied first to Base Rate Loans and then to Eurodollar Loans in order of Interest Period maturities (beginning with the earliest to mature).  If the outstanding principal amount of Eurodollar Loans made pursuant to a Borrowing is reduced below the applicable Minimum Borrowing Amount as a result of any such repayment or prepayment, then all the Loans outstanding pursuant to such Borrowing shall, in the case of Eurodollar Loans, be Converted into Base Rate Loans.  In the absence of a designation by the Borrower as described in the preceding sentence, the Administrative Agent shall, subject to the above, make such designation in its sole discretion with a view, but no obligation, to minimize breakage costs owing under Article III.

 

(c)                                  Breakage and Other Compensation.  Any prepayment made pursuant to this Section 2.13 shall be accompanied by any amounts payable in respect thereof under Article III.

 

(d)                                 Scheduled Payments of Term Loan.  The principal amount of the Term Loan shall be repaid in consecutive calendar quarterly installments as follows, unless accelerated sooner pursuant to Section 9.02 (which amounts shall be reduced as a result of the application of prepayments in accordance with the order or priority set forth in Section 2.13(b)(ix)):

 

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Principal Amortization
    Payment Dates
    	
 
    	
Term Loan Principal
    Amortization Payment
    	
 
    
	
December 31,   2013
    	
 
    	
$750,000
    	
 
    
	
March 31,   2014
    	
 
    	
$750,000
    	
 
    
	
June 30,   2014
    	
 
    	
$750,000
    	
 
    
	
September 30,   2014
    	
 
    	
$750,000
    	
 
    
	
December 31,   2014
    	
 
    	
$750,000
    	
 
    
	
March 31,   2015
    	
 
    	
$750,000
    	
 
    
	
June 30,   2015
    	
 
    	
$750,000
    	
 
    
	
September 30,   2015
    	
 
    	
$750,000
    	
 
    
	
December 31,   2015
    	
 
    	
$750,000
    	
 
    
	
March 31,   2016
    	
 
    	
$750,000
    	
 
    
	
June 30,   2016
    	
 
    	
$750,000
    	
 
    
	
September 30,   2016
    	
 
    	
$750,000
    	
 
    
	
December 31,   2016
    	
 
    	
$750,000
    	
 
    
	
March 31,   2017
    	
 
    	
$750,000
    	
 
    
	
June 30,   2017
    	
 
    	
$750,000
    	
 
    
	
September 30,   2017
    	
 
    	
$750,000
    	
 
    
	
December 31,   2017
    	
 
    	
$750,000
    	
 
    
	
March 31,   2018
    	
 
    	
$750,000
    	
 
    
	
June 30,   2018
    	
 
    	
$750,000
    	
 
    
	
September 30,   2018
    	
 
    	
$750,000
    	
 
    
	
December 31,   2018
    	
 
    	
$750,000
    	
 
    
	
March 31,   2019
    	
 
    	
$750,000
    	
 
    
	
June 30,   2019
    	
 
    	
$750,000
    	
 
    
	
September 30,   2019
    	
 
    	
$750,000
    	
 
    
	
December 31,   2019
    	
 
    	
$750,000
    	
 
    
	
March 31,   2020
    	
 
    	
$750,000
    	
 
    
	
June 30,   2020
    	
 
    	
$750,000
    	
 
    
	
Maturity Date of Term Loan
    	
 
    	
Remaining   Principal Balance of Term Loan
    	
 
    

 

(e)                                  Repricing Transactions.  In connection with any Repricing Transaction that is consummated in respect of all or any portion of the Term Loans during the period from the Closing Date to but excluding the date six months after the Closing Date, the Borrower shall pay to the Term Lenders a fee equal to 1% of the aggregate principal amount of the Term Loans prepaid or repriced in connection with such Repricing Transaction.  Notwithstanding the foregoing, it is understood and agreed that the fee described in this Section 2.13(e) shall not be applicable to any such transaction that results in or involves a Change of Control of the Borrower.

 

Section 2.14                                       Method and Place of Payment.

 

(a)                                 Generally.  All payments made by the Borrower hereunder under any Note or any other Loan Document, shall be made without setoff, counterclaim or other defense.

 

(b)                                 Application of Payments.  Except as specifically set forth elsewhere in this Agreement and subject to Section 9.03, (i) all payments and prepayments of Loans and Unreimbursed Drawings with respect to Letters of Credit shall be applied by the Administrative Agent on a pro rata basis based upon each Lender’s Applicable Percentage of the amount of such 

 

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prepayment, and (ii) all payments or prepayments of Swing Loans shall be applied by the Administrative Agent to pay or prepay such Swing Loans.

 

(c)                                  Payment of Obligations.  Except as specifically set forth elsewhere in this Agreement, all payments under this Agreement with respect to any of the Obligations shall be made to the Administrative Agent on the date when due and shall be made at the Payment Office in immediately available funds and shall be made in Dollars.

 

(d)                                 Timing of Payments.  Any payments under this Agreement that are made later than 1:00 p.m. (Eastern time) shall be deemed to have been made on the next succeeding Business Day.  Whenever any payment to be made hereunder shall be stated to be due on a day that is not a Business Day, the due date thereof shall be extended to the next succeeding Business Day and, with respect to payments of principal, interest shall be payable during such extension at the applicable rate in effect immediately prior to such extension.

 

(e)                                  Distribution to Lenders.  Upon the Administrative Agent’s receipt of payments hereunder, the Administrative Agent shall immediately distribute to each Lender or the LC Issuer, as the case may be, its ratable share, if any, of the amount of principal, interest, and Fees received by it for the account of such Lender.  Payments received by the Administrative Agent in Dollars shall be delivered to the Lenders or the LC Issuer, as the case may be, in Dollars in immediately available funds; provided, however, that if at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal, Unreimbursed Drawings, interest and Fees then due hereunder then, except as specifically set forth elsewhere in this Agreement and subject to Section 9.03, such funds shall be applied, first, towards 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 second, towards payment of principal and Unreimbursed Drawings then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal and Unreimbursed Drawings then due to such parties.

 

Section 2.15                                       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 11.12(c).

 

(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 IX or otherwise, and including any amounts made available to the Administrative Agent by that Defaulting Lender pursuant to Section 11.03), shall be applied at such time or times as may be 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 the LC Issuer or Swing Line Lender hereunder; third, if so determined by the Administrative Agent or requested by the LC 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 Loan or Letter of Credit; fourth, as the Borrower may request (so long

 

54

 

as no 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, as determined by the Administrative Agent; 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, the LC Issuer or Swing Line Lender as a result of any judgment of a court of competent jurisdiction obtained by any Lender, the LC 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 other extension of credit resulting from a drawing under any Letter of Credit in respect of which that Defaulting Lender has not fully funded its appropriate share and (y) such Loans or other extensions of credit resulting from a drawing under any Letter of Credit were made at a time when the conditions set forth in Section 5.02 were satisfied or waived, such payment shall be applied solely to pay the Loans of and such other obligations in respect of Letter of Credit owed to, all non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans or such obligations in respect of Letters of Credit 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 2.15 shall be deemed paid to and redirected by that Defaulting Lender, and each Lender irrevocably consents hereto.

 

(iii)                               Certain Fees.  That Defaulting Lender (A) shall not be entitled to receive any Commitment Fee pursuant to Section 2.11(a) 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) except to the extent allocable to that portion of its Revolving Commitment used to fund Revolving Loans funded by it after it became Defaulting Lender (and the Borrower shall (1) be required to pay to each of the LC Issuer and the Swing Line Lender, as applicable, the amount of such fee allocable to its Fronting Exposure arising from that Defaulting Lender and (2) not be required to pay the remaining amount of such fee that otherwise would have been required to have been paid to that Defaulting Lender) and (B) shall be limited in its right to receive LC Fees as provided in Section 2.11(b).

 

(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 Swing Loans or Letters of Credit pursuant to Sections 2.04 and 2.05, the “Applicable Percentage” of each non-Defaulting Lender shall be computed without giving effect to the Revolving 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 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 Loans as of any date shall not exceed the positive difference, if any, of (1) the Revolving Commitment of that non-Defaulting Lender as of such date minus (2) the aggregate outstanding principal amount of the Revolving Loans of that Lender as of such date, plus (3) such Lender’s Applicable Percentage of the LC Outstandings as of such date, plus (4) such Lender’s Applicable Percentage of the aggregate outstanding principal amount of the Swing Loans of such date.

 

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(b)                                 Defaulting Lender Cure.  If the Borrower, the Administrative Agent, Swing Line Lender and the LC Issuer 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 outstanding Loans and funded and unfunded participations in Letters of Credit and Swing Loans to be held on a pro rata basis by the Lenders in accordance with their Applicable Percentages (without giving effect to Section 2.15(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.

 

Section 2.16                                       Cash Collateral for Credit Support.

 

(a)                           Certain Credit Support Events.  Upon request of the Administrative Agent or LC Issuer if (i) the LC Issuer has honored any full or partial drawing request under any Letter of Credit and such drawing has not been reimbursed on the applicable Honor Date, or (ii) as of the date thirty (30) days prior to the Revolving Facility Maturity Date, any Letter of Credit remains outstanding, the Borrower shall, in each case, within one (1) Business Day, Cash Collateralize the Stated Amount of all then outstanding Letters of Credit.  At any time that there shall exist a Defaulting Lender, and to the extent the Fronting Exposure attributable to such Defaulting Lender cannot be reallocated among the non-Defaulting Lenders as provided in Section 2.15(a)(iv) above, then within one (1) Business Day following the request of the Administrative Agent, the LC Issuer or the Swing Line Lender, as applicable, the Borrower shall deliver to the Administrative Agent Cash Collateral in an amount sufficient to cover the Fronting Exposure (after giving effect to Section 2.15(a)(iv) and any Cash Collateral provided by the Defaulting Lender) attributable to such 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 KeyBank.  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, the LC 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 2.16(c).  If at any time the Administrative Agent determines that Cash Collateral is subject to any right or claim of any Person other than 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 in respect of Letters of Credit or Swing Loans shall be held and applied to the satisfaction of the specific LC Outstandings, Swing Loans, obligations to fund 

 

56

 

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 the applicable requirements of Section 11.06) 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 Credit Party shall not be released during the continuance of an Event of Default (and following application as provided in this Section 2.16 may be otherwise applied in accordance with Section 9.03).

 

ARTICLE III

 

TAXES, YIELD PROTECTION AND ILLEGALITY

 

Section 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 the Credit Parties hereunder or under any other Loan Document shall to the extent permitted by applicable Laws be made free and clear of and without reduction or withholding for any Taxes.  If, however, applicable Laws require any Credit Party or the Administrative Agent to withhold or deduct any Tax, such Tax shall be withheld or deducted in accordance with such Laws as determined by such Credit Party or the Administrative Agent, as the case may be, upon the basis of the information and documentation to be delivered pursuant to subsection (e) below.

 

(ii)                                  If any Credit Party or the Administrative Agent shall be required by the Code to withhold or deduct any Taxes, including both United States federal backup withholding and withholding Taxes, from any payment, then (A) such Credit Party or the Administrative Agent, as the case may be, shall withhold or make such deductions as are determined by the Administrative Agent to be required based upon the information and documentation it has received pursuant to subsection (e) below, (B) such Credit Party or the Administrative Agent shall timely pay the full amount of Taxes withheld or deducted to the relevant Governmental Authority in accordance with the Code, 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 Borrower shall be increased as necessary so that after any required withholding or the making of all required deductions (including deductions applicable to additional sums payable under this Section 3.01) the Administrative Agent, Lender or LC Issuer, as the case may be, receives an amount equal to the sum it would have received had no such withholding or deduction been made for Indemnified Taxes or Other Taxes.

 

(b)                                 Payment of Other Taxes by the Credit Parties.  Without limiting the provisions of subsection (a) above, the Credit Parties shall timely pay any Other Taxes to the relevant Governmental Authority in accordance with applicable Laws.

 

(c)                                  Tax Indemnifications.  (i) Without limiting the provisions of subsection (a) or (b) above, the Credit Parties shall, and do hereby, jointly and severally, indemnify the Administrative 

 

57

 

Agent, each Lender and the LC Issuer, and shall make payment in respect thereof within ten (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) paid by the Administrative Agent, such Lender or the LC Issuer, as the case may be, and any penalties, interest and 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 or the LC Issuer (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender or the LC Issuer, shall be conclusive absent manifest error.

 

(ii)                                        Without limiting the provisions of subsection (a) or (b) above, each Lender and the LC Issuer shall, and does hereby, indemnify the Administrative Agent and shall make payment in respect thereof within ten (10) days after demand therefor, (x) against any Indemnified Taxes attributable to such Lender or the LC Issuer (but only to the extent that any Credit Party has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Credit Parties to do so), (y) against any Taxes attributable to such Lender’s failure to comply with the provisions of Section 11.06(d) relating to the maintenance of a Participant Register and (z) against any Excluded Taxes attributable to such Lender or the LC Issuer, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  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 and the LC Issuer hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender or the LC Issuer, as the case may be, under this Agreement or any other Loan Document against any amount due to the Administrative Agent under this clause (ii).  The agreements in this clause (ii) shall survive the resignation and/or replacement of the Administrative Agent, any assignment of rights by, or the replacement of, a Lender or the LC Issuer, the termination of the Aggregate Commitments and the repayment, satisfaction or discharge of all other Obligations.

 

(d)                                 Evidence of Payments.  Upon request by any Credit Party or the Administrative Agent, as the case may be, after any payment of Taxes by any Credit Party or the Administrative Agent to a Governmental Authority as provided in this Section 3.01, each Credit Party shall deliver to the Administrative Agent or the Administrative Agent shall deliver to the Borrower, as the case may be, the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of any return required by Laws to report such payment or other evidence of such payment reasonably satisfactory to the Borrower or the Administrative Agent, as the case may be.

 

(e)                                  Status of Lenders; Tax Documentation.  (i) Each Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and to the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent 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 Documents 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 

 

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Lender’s status for withholding tax purposes in the applicable jurisdiction.  In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements.  Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Section 3.01(e)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender’s reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

 

(ii)                                  Without limiting the generality of the foregoing, if the Borrower is a U.S. Person,

 

(A)                               any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent, on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the request of the Borrower or the Administrative Agent), executed originals of IRS Form W-9 or such other documentation or information prescribed by applicable Laws or reasonably requested by the Borrower or the Administrative Agent (in such number of copies as shall be requested by the recipient) 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;

 

(B)                               each Foreign Lender that is entitled under the Code or any applicable treaty to an exemption from or reduction of withholding tax with respect to 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 IRS Form W-8BEN claiming eligibility for benefits of an income tax treaty to which the United States is a party,

 

(II)                              executed originals of IRS Form W-8ECI,

 

(III)                         executed originals of IRS Form W-8IMY and all required supporting documentation, or

 

(IV)                          in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under section 881(c) of the Code, (x) a certificate to the effect that 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) of the Code, or (C) a “controlled foreign corporation” described in section 881(c)(3)(C) of the Code and (y) executed originals of  IRS Form W-8BEN;

 

(C)                               any Foreign Lender shall, to the extent it is legally entitled to do so, 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 reasonable request of the Borrower or the Administrative Agent), executed originals of any other form prescribed by applicable Laws as a 

 

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basis for claiming exemption from or a reduction in United States federal withholding Tax duly completed together with such supplementary documentation as may be prescribed by applicable law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and

 

(D)                               if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Administrative Agent and the Borrower at the time or times prescribed by Law or reasonably requested by the Administrative Agent or the Borrower such documentation prescribed by applicable Law (including prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Administrative Agent or the Borrower as may be necessary for the Administrative Agent and the Borrower to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.  Solely for purposes of this clause (D), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.

 

(iii)                               Each Lender agrees that if any form or certification it previously delivered pursuant to this Section 3.01 expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.

 

(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 the LC Issuer, or have any obligation to pay to any Lender or the LC Issuer, any refund of Taxes withheld or deducted from funds paid for the account of such Lender or the LC Issuer, as the case may be. If the Administrative Agent, any Lender or the LC Issuer determines, in its sole discretion, that it has received a refund (including any application or carryover of such refund amount to reduce any amount otherwise payable to the refunding Governmental Authority) of any Taxes or Other Taxes as to which it has been indemnified by any Credit Party or with respect to which any Credit Party has paid additional amounts pursuant to this Section 3.01, it shall pay to such Credit Party an amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid, by such Credit Party under this Section 3.01 with respect to the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses incurred by the Administrative Agent, such Lender or the LC Issuer, 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 each Credit Party, upon the request of the Administrative Agent, such Lender or the LC Issuer, agrees to repay the amount paid over to such Credit Party (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Administrative Agent, such Lender or the LC Issuer in the event the Administrative Agent, such Lender or the LC Issuer is required to repay such refund to such Governmental Authority.  Notwithstanding anything to the contrary in this subsection, in no event will the applicable recipient be required to pay any amount to a Credit Party pursuant to this subsection the payment of which would place the recipient in a less favorable net after-Tax position than such recipient would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid.  This subsection shall not be construed to require the Administrative Agent, any Lender or the LC Issuer 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.

 

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Section 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 the interest on which 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, (a) any obligation of such Lender to make or continue Eurodollar Loans or to convert Base Rate Loans to Eurodollar Loans shall be suspended and (b) 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 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, (a) the Borrower shall, upon demand from such Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all Eurodollar 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 Loans to such day, or immediately, if such Lender may not lawfully continue to maintain such Eurodollar Loans and (b) 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.

 

Section 3.03                                       Inability to Determine Rates.

 

If the Required Lenders determine that for any reason in connection with any request for a Eurodollar Loan or a Base Rate Loan as to which the interest rate is determined with reference to the Eurodollar Rate, 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 Loan, (b) adequate and reasonable means do not exist for determining the Eurodollar Rate for any requested Interest Period with respect to a proposed Eurodollar Loan or in connection with an existing or proposed Base Rate Loan as to which the interest rate is determined by reference to the Eurodollar Rate, or (c) the Eurodollar Rate for any requested Interest Period with respect to a proposed Loan does not adequately and fairly reflect the cost to the Lenders of funding such Loan, the Administrative Agent will promptly notify the Borrower and all Lenders.  Thereafter, the obligation of the Lenders to make or maintain Eurodollar Loans or Base Rate Loans as to which the interest rate is determined with reference to the Eurodollar Rate shall be suspended in each case until the Administrative Agent revokes such notice.  Upon receipt of such notice, the Borrower may revoke any pending request for a Borrowing, Conversion or Continuation of Eurodollar Loans or a Base Rate Loan as to which the interest rate is determined with reference to the Eurodollar Rate or, failing that, will be deemed to have converted such request into a request for a Borrowing of Base Rate Loans as to which the interest rate is not determined by reference to the Eurodollar Rate in the amount specified therein.

 

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Section 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 the LC Issuer;

 

(ii)                                  subject any Lender or the LC 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 Eurodollar Loan made by it, or change the basis of taxation of payments to such Lender or the LC Issuer in respect thereof (except for Indemnified Taxes or Other Taxes covered by Section 3.01 and the imposition of, or any change in the rate of, any Excluded Tax payable by such Lender or the LC Issuer); or

 

(iii)                               impose on any Lender or the LC Issuer or the London interbank market any other condition, cost or expense affecting this Agreement or Eurodollar Loans made by such Lender or any Letter of Credit or participation therein;

 

and the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any Loan the interest on which is determined by reference to the Eurodollar Rate (or of maintaining its obligation to make any such Loan), or to increase the cost to such Lender or the LC 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 the LC Issuer hereunder (whether of principal, interest or any other amount) then, upon request of such Lender or the LC Issuer, the Borrower will pay to such Lender or the LC Issuer, as the case may be, such additional amount or amounts as will compensate such Lender or the LC Issuer, as the case may be, for such additional costs incurred or reduction suffered.

 

(b)                                 Capital Requirements.  If any Lender or the LC Issuer determines that any Change in Law affecting such Lender or the LC Issuer or any Lending Office of such Lender or such Lender’s or the LC 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 the LC Issuer’s capital or on the capital of such Lender’s or the LC 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 the LC Issuer, to a level below that which such Lender or the LC Issuer or such Lender’s or the LC Issuer’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s or the LC Issuer’s policies and the policies of such Lender’s or the LC Issuer’s holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender or the LC Issuer, as the case may be, such additional amount or amounts as will compensate such Lender or the LC Issuer or such Lender’s or the LC Issuer’s holding company for any such reduction suffered.

 

(c)                                  Certificates for Reimbursement.  A certificate of a Lender or the LC Issuer setting forth the amount or amounts necessary to compensate such Lender or the LC Issuer or its holding company, as the case may be, as specified in subsection (a) or (b) of this Section 3.04 and delivered to the Borrower shall be conclusive absent manifest error.  The Borrower shall pay such Lender or the LC Issuer, as the case may be, the amount shown as due on any such certificate within ten (10) days after receipt thereof.

 

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(d)                                 Delay in Requests.  Failure or delay on the part of any Lender or the LC Issuer to demand compensation pursuant to the foregoing provisions of this Section 3.04 shall not constitute a waiver of such Lender’s or the LC Issuer’s right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender or the LC Issuer pursuant to the foregoing provisions of this Section 3.04 for any increased costs incurred or reductions suffered more than nine months prior to the date that such Lender or the LC 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 the LC 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 nine-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), 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 10 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 days prior to the relevant payment date, such additional interest shall be due and payable 10 days from receipt of such notice.

 

Section 3.05                                       Compensation for Losses.

 

Upon demand of any Lender (with a copy to the Administrative Agent) 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 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 11.13;

 

including any loss of anticipated profits and 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.

 

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 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 Loan was in fact so funded.

 

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Section 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, the LC Issuer or any Governmental Authority for the account of any Lender or the LC Issuer pursuant to Section 3.01, or if any Lender gives a notice pursuant to Section 3.02, then such Lender or the LC 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 the LC 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 the LC Issuer, as the case may be, to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender or the LC Issuer, as the case may be.  The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender or the LC 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, the Borrower may replace such Lender in accordance with Section 11.27.

 

Section 3.07                                       Survival.

 

All of the Borrower’s obligations under this Article III shall survive termination of the Aggregate Commitments, repayment of all other Obligations hereunder and resignation of the Administrative Agent.

 

ARTICLE IV

 

GUARANTY

 

Section 4.01                                       The Guaranty.

 

Each of the Guarantors hereby jointly and severally guarantees to each Secured Creditor as hereinafter provided, as primary obligor and not as surety, the prompt payment in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory cash collateralization, upon demand or otherwise, and at all times thereafter) of any and all Obligations, whether for principal, interest, premiums, fees, indemnities, damages, costs, expenses or otherwise, of the Borrower to the Secured Creditors, and whether arising hereunder or under any other Loan Document, any Secured Cash Management Agreement or Secured Hedge Agreement, strictly in accordance with the terms thereof.  The Guarantors hereby further agree that if any of the Obligations are not paid in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory cash collateralization, upon demand or otherwise), the Guarantors will, jointly and severally, promptly pay the same, without any demand or notice whatsoever, and that in the case of any extension of time of payment or renewal of any of the Obligations, the same will be promptly paid in full when due (whether at extended maturity, as a mandatory prepayment, by acceleration, as a mandatory cash collateralization or otherwise) in accordance with the terms of such extension or renewal.

 

Notwithstanding any provision to the contrary contained herein or in any other of the Loan Documents, Secured Hedge Agreements or Secured Cash Management Agreements, the obligations of each Guarantor under this Agreement and the other Loan Documents shall be limited to an aggregate amount equal to the largest amount that would not render such obligations subject to avoidance under the Debtor Relief Laws or any comparable provisions of any applicable state law.

 

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Section 4.02                                       Obligations Unconditional.

 

The obligations of the Guarantors under Section 4.01 are joint and several, absolute and unconditional, irrespective of the value, genuineness, validity, regularity or enforceability of any of the Loan Documents, Secured Hedge Agreements or Secured Cash Management Agreements, or any other agreement or instrument referred to therein, or any substitution, release, impairment or exchange of any other guarantee of or security for any of the Obligations, and, to the fullest extent permitted by applicable law, irrespective of any law or regulation or other circumstance whatsoever which might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor (other than payment in full of the Obligations), it being the intent of this Section 4.02 that the obligations of the Guarantors hereunder shall be absolute and unconditional under any and all circumstances.  Each Guarantor agrees that such Guarantor shall have no right of subrogation, indemnity, reimbursement or contribution against the Borrower or any other Guarantor for amounts paid under this Article IV until such time as the Obligations (other than Contingent Obligations) have been paid in full and the Commitments have expired or terminated.  Without limiting the generality of the foregoing, it is agreed that, to the fullest extent permitted by law, the occurrence of any one or more of the following shall not alter or impair the liability of any Guarantor hereunder, which shall remain absolute and unconditional as described above:

 

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

 

(b)                           any of the acts mentioned in any of the provisions of any of the Loan Documents, any Secured Hedge Agreement or any Secured Cash Management Agreement, or any other agreement or instrument referred to in the Loan Documents, such Secured Hedge Agreements or such Secured Cash Management Agreements shall be done or omitted;

 

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

 

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

 

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

 

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

 

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Section 4.03                                       Reinstatement.

 

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

 

Section 4.04                                       Certain Additional Waivers.

 

Each Guarantor agrees that such Guarantor shall have no right of recourse to security for the Obligations, except through the exercise of rights of subrogation pursuant to Section 4.02 and through the exercise of rights of contribution pursuant to Section 4.06.

 

Section 4.05                                       Remedies.

 

The Guarantors agree that, to the fullest extent permitted by law, as between the Guarantors, on the one hand, and the Administrative Agent and the Lenders, on the other hand, the Obligations may be declared to be forthwith due and payable as provided in Section 9.02 (and shall be deemed to have become automatically due and payable in the circumstances provided in said Section 9.02) for purposes of Section 4.01 notwithstanding any stay, injunction or other prohibition preventing such declaration (or preventing the Obligations from becoming automatically due and payable) as against any other Person and that, in the event of such declaration (or the Obligations being deemed to have become automatically due and payable), the Obligations (whether or not due and payable by any other Person) shall forthwith become due and payable by the Guarantors for purposes of Section 4.01.  The Guarantors acknowledge and agree that their obligations hereunder are secured in accordance with the terms of the Collateral Documents and that the Lenders may exercise their remedies thereunder in accordance with the terms thereof.

 

Section 4.06                                       Rights of Contribution.

 

The Guarantors agree among themselves that, in connection with payments made hereunder, each Guarantor shall have contribution rights against the other Guarantors as permitted under applicable law.  Such contribution rights shall be subordinate and subject in right of payment to the obligations of such Guarantors under the Loan Documents and no Guarantor shall exercise such rights of contribution until all Obligations (other than Contingent Obligations) have been paid in full and the Commitments have terminated.

 

Section 4.07                                       Guarantee of Payment; Continuing Guarantee.

 

The guarantee in this Article IV is a guaranty of payment and not of collection, is a continuing guarantee, and shall apply to all Obligations whenever arising.

 

Section 4.08                                       Keepwell.

 

Each Qualified ECP Guarantor hereby jointly and severally absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each Specified Credit Party to honor all of such Specified Credit Party’s obligations under this Agreement and the other Loan Documents in respect of Swap Obligations; provided, however, that each Qualified 

 

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ECP Guarantor shall only be liable under this Section 4.08 for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this Section 4.08 or otherwise under this Agreement voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount. The obligations of each Qualified ECP Guarantor under this Section 4.08 shall remain in full force and effect until the Obligations (other than Contingent Obligations) have been paid in full and the Commitments have expired or terminated.  Each Qualified ECP Guarantor intends that this Section 4.08 constitute, and this Section 4.08 shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each Specified Credit Party for all purposes of Section la(18)(A)(v)(II) of the Commodity Exchange Act.

 

ARTICLE V

 

CONDITIONS PRECEDENT

 

Section 5.01                                       Conditions Precedent at Closing Date.  The occurrence of the Closing Date, the effectiveness of this Agreement, and the obligation of the Lenders to make Loans and of the LC Issuer to issue Letters of Credit, is subject to the satisfaction of each of the following conditions on or prior to the Closing Date:

 

(a)                           Loan Documents.  Receipt by the Administrative Agent executed counterparts of this Agreement and the other Loan Documents required to be delivered on the Closing Date.

 

(b)                           Notes.  The Borrower shall have executed and delivered to the Administrative Agent the appropriate Note or Notes for the account of each Lender that has requested the same.

 

(c)                            Fees.  The Borrower shall have paid (or, concurrently with the funding of the Loans, will pay) (A) to the Administrative Agent, for its own account, the fees required to be paid by it on the Closing Date described in the Fee Letter, (B) all fees payable to the Lenders on the Closing Date agreed to by the Borrower on or prior to the Closing Date, and (C) all fees, charges and disbursements of counsel of 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 fees, 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, in each case, such amounts may be offset against the proceeds of the Loans; provided that such estimate shall not thereafter preclude a final settling of accounts between the Borrower and the Administrative Agent.

 

(d)                           Corporate Resolutions and Approvals.  The Administrative Agent shall have received certified copies of the resolutions of the Board of Directors or equivalent governing body of each Credit Party approving the Loan Documents to which such Credit Party is a party, and of all documents evidencing other necessary corporate action and governmental approvals, if any, with respect to the execution, delivery and performance by such Credit Party of the Loan Documents to which it is a party.

 

(e)                            Incumbency Certificates.  The Administrative Agent shall have received a certificate of the Secretary or an Assistant Secretary or other Authorized Officer reasonably acceptable to the Administrative Agent of each Credit Party certifying the names and true signatures of the officers of such Credit Party authorized to sign the Loan Documents to which such Credit Party is a party and any other documents to which such Credit Party is a party that may be executed and delivered in connection herewith.

 

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(f)                             Opinions of Counsel.  The Administrative Agent shall have received such opinions of counsel from counsel to the Credit Parties as the Administrative Agent shall reasonably request, each of which shall be addressed to the Administrative Agent and each of the Lenders and dated the Closing Date and in form and substance reasonably satisfactory to the Administrative Agent.

 

(g)                            Corporate Charter and Good Standing Certificates.  The Administrative Agent shall have received:  (i) a certified copy of the Certificate or Articles of Incorporation (or equivalent formation document) of each Credit Party and any and all amendments and restatements thereof, certified as of a recent date by the relevant Secretary of State and as of the Closing Date by the secretary or other Authorized Officer of such Credit Party; and (ii) a certified copy of a good standing certificate for each Credit Party, dated as of a recent date, from (A) the Secretary of State of the state of its incorporation or formation and (B) each other state where such Credit Party has material operations.

 

(h)                           Closing Certificate.  The Administrative Agent shall have received a certificate substantially in the form of Exhibit D, dated as of the Closing Date, of an Authorized Officer of the Borrower, certifying that the conditions set forth in Sections 5.01(l), (p), (q) and 5.02(b) have been satisfied.

 

(i)                               Existing Indebtedness.  On the Closing Date, after giving effect to the transactions contemplated herein, the Borrower and its Subsidiaries shall have outstanding no Indebtedness other than (A) the Loans and Letters of Credit issued hereunder and (B) Indebtedness permitted under Section 8.04.  All other Indebtedness (other than the Existing Letters of Credit) and agreements in respect thereof shall be terminated and all Liens securing such Indebtedness shall be released or arrangements, to the satisfaction of the Administrative Agent, shall have been made for such release.

 

(j)                              Proceedings and Documents.  All corporate and other proceedings and all documents incidental to the transactions contemplated hereby shall be in form and substance reasonably satisfactory to the Administrative Agent and the Lenders and the Administrative Agent and counsel.

 

(k)                           Personal Property Collateral.  The Administrative Agent shall have received:

 

(i)                                     searches of UCC filings in such jurisdictions as deemed appropriate by the Administrative Agent, copies of the financing statements on file in such jurisdictions and evidence that no Liens exist other than Permitted Liens;

 

(ii)                                  proper financing statements in form appropriate for filing under the UCC in the jurisdictions of organization of each Credit Party, to perfect the Administrative Agent’s security interest in the Collateral for the benefit of the Secured Creditors;

 

(iii)                               searches of ownership of, and Liens on, the IP Rights of each Credit Party in the appropriate United States governmental offices;

 

(iv)                              if applicable, all certificates evidencing any Pledged Equity, together with duly executed in blank, undated stock powers attached thereto;

 

(v)                                 duly executed notices for filing with the United States Patent and Trademark Office and United States Copyright Office of the grant of security interest in 

 

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patents, trademarks and/or copyrights, each in the form required by the Security Agreement, to perfect the Administrative Agent’s security interest in the Collateral for the benefit of the Secured Creditors;

 

(vi)                              if applicable, all debt instruments and chattel paper in the possession of any of the Credit Parties, together with allonges or assignments required to be pledged and delivered to the Administrative Agent under the Security Agreement; and

 

(vii)                           a perfection certificate, in form and substance reasonably acceptable to the Administrative Agent, executed and delivered on behalf of the Credit Parties by an Authorized Officer of the Borrower.

 

(l)                               Governmental and Other Consents.  Receipt by the Administrative Agent of evidence that all governmental, shareholder and material third party consents and approvals necessary in connection with the Transaction and expiration of all applicable waiting periods without any action being taken by any Governmental Authority that could restrain, prevent or impose any material adverse conditions on the Transaction or that could seek or threaten any of the foregoing.

 

(m)                       Evidence of Insurance.  Receipt by the Administrative Agent of (i) copies of certificates of insurance (together with applicable endorsements) of the Credit Parties evidencing insurance (including, without limitation, flood hazard insurance, worker’s compensation insurance, liability insurance, casualty insurance and business interruption insurance) meeting the requirements set forth in the Loan Documents, including, but not limited to, naming the Administrative Agent, on behalf of the Lenders, as (x) an additional insured under the general liability insurance policy of the Credit Parties and (y) Lenders’ loss payee under the property and/or casualty insurance policies with respect to the assets and properties of the Credit Parties that constitute Collateral and (ii) a completed “Life-of-Loan” Federal Emergency Management Agency Standard Flood Hazard Determination with respect to each Mortgaged Property located in the United States and, with respect to each Mortgaged Property that is a Flood Hazard Property, a notice about special flood hazard area status and flood disaster assistance duly executed by the Borrower and/or each Subsidiary relating thereto.

 

(n)                           Solvency.  The Administrative Agent shall have received a certificate executed by the Chief Financial Officer of the Borrower as of the Closing Date, in form and substance satisfactory to the Administrative Agent, regarding the Solvency of the Credit Parties on a consolidated basis.

 

(o)                           Financial Statements.  The Administrative Agent shall have received:

 

(i)                                     the Interim Financial Statements; and

 

(ii)                                  pro forma forecasts prepared by management of the Borrower, giving effect to all elements of the Transaction to be effected on or before the Closing Date, of consolidated balance sheets and statements of income or operations and cash flows of the Borrower and its Subsidiaries (A) on a quarterly basis for fiscal years 2013 and 2014 and (B) on an annual basis for fiscal years 2015 through 2018, and the Administrative Agent shall be satisfied that the projected EBITDA set forth therein is sustainable during such periods.

 

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(p)                           Debt Ratings.  The Administrative Agent shall have received evidence that (i) the Credit Facilities shall have received a debt rating from Moody’s and S&P and (ii) the Borrower shall have received a (x) corporate family rating from Moody’s and (y) a corporate rating from S&P.

 

(q)                           Patriot Act.  Each Credit Party shall have provided to the Administrative Agent and the Lenders the documentation and other information requested by the Administrative Agent in order to comply with requirements of the Patriot Act

 

(r)                              Miscellaneous.  The Credit Parties shall have provided to the Administrative Agent and the Lenders such other items and shall have satisfied such other conditions as may be reasonably required by the Administrative Agent or the Lenders.

 

Section 5.02                                       Conditions Precedent to All Credit Events.  The obligations of the Lenders, the Swing Line Lender and the LC Issuer to honor any request for a Borrowing or other Credit Event (other than a Notice of Conversion or Continuation) is subject, at the time thereof, to the satisfaction of the following conditions:

 

(a)                           Notice.  The Administrative Agent (and in the case of clause (ii) below, the LC Issuer) shall have received, as applicable, (i) a Notice of Borrowing meeting the requirements of Section 2.06(b) with respect to any Borrowing (other than a Continuation or Conversion), and (ii) an LC Request meeting the requirements of Section 2.05(b) with respect to each LC Issuance.

 

(b)                           No Default; Representations and Warranties.  At the time of each Credit Event and also after giving effect thereto, (i) there shall exist no Default or Event of Default and (ii) all representations and warranties of the Credit Parties contained herein or in the other Loan Documents shall be true and correct in all material respects (except that if any such representation or warranty contains any materiality qualifier, such representation or warranty shall be true and correct in all respects) with the same effect as though such representations and warranties had been made on and as of the date of such Credit Event, except to the extent that such representations and warranties expressly relate to an earlier specified date, in which case such representations and warranties shall have been true and correct in all material respects (except that if any such representation or warranty contains any materiality qualifier, such representation or warranty shall be true and correct in all respects) as of the date when made (except that for purposes of this Section 5.02, the representations and warranties contained in Section 6.05(a) and (b), shall be deemed to refer to the most recent statements furnished pursuant to Sections 7.01(a) and (b), respectively).

 

The acceptance of the benefits of each Credit Event shall constitute a representation and warranty by the Borrower to the Administrative Agent, the Swing Line Lender, the LC Issuer and each of the Lenders that all of the applicable conditions specified in Section 5.01 and Section 5.02 have been satisfied as of the times referred to in such Sections.  With respect to any request for a Conversion of Base Rate Loans to Eurodollar Loans or a Continuation of Eurodollar Loans, (i) the Administrative Agent shall have received a Notice of Continuation or Conversion meeting the requirements of Section 2.10(b) with respect to such Conversion or Continuation and (ii) at the time of such Credit Event and after giving effect thereto, there shall exist (A) no Event of Default under Sections 9.01(a) or 9.01(h) or (B) any other Event of Default with respect to which the Administrative Agent has delivered written notice to the Borrower as provided in Section 2.10(a).

 

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ARTICLE VI

 

REPRESENTATIONS AND WARRANTIES

 

To induce the Administrative Agent, the Lenders and the LC Issuer to enter into this Agreement and to make the Loans and to issue and to participate in the Letters of Credit provided for herein, the Borrower and the other Credit Parties each makes the following representations and warranties to, and agreements with, the Administrative Agent, the Lenders and the LC Issuer:

 

Section 6.01                                       Existence, Qualification and Power.  Each Credit Party and each of its Subsidiaries (a) is duly organized or formed, validly existing and, as applicable, in good standing (or comparable concept in the applicable jurisdiction) under the Laws of the jurisdiction of its incorporation or formation, (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 (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 clauses (a) (solely as such relates to good standing (or comparable concept in the applicable jurisdiction)), (b)(i) or (c), to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect.

 

Section 6.02                                       Authorization; No Contravention.  The execution, delivery and performance by each Credit Party of each Loan Document to which such Person is 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 Organizational Documents; (b) violate any applicable law or (c) conflict with or result in any breach or contravention of, or result in or require the creation of any Lien (other than Liens created under the Loan Documents) under (i) any material Contractual Obligation to which such Person is a party or affecting such Person or the property 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.

 

Section 6.03                                       Governmental Authorization; Other Consents.  No material 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 the execution, delivery or performance by, or enforcement against, any Credit Party of this Agreement or any other Loan Document, except for (a) the authorizations, approvals, actions, notices and filings listed on Schedule 6.03, all of which (i) have been obtained or made and are in full force and effect and (b) filings to perfect the Liens created by the Collateral Documents.

 

Section 6.04                                       Binding Effect.  This Agreement has been, and each other Loan Document, when delivered hereunder, will have been, duly executed and delivered by each Credit 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 Credit Party, enforceable against each Credit Party that is party thereto in accordance with its terms, except as enforceability may be limited by applicable Debtor Relief Laws and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).

 

Section 6.05                                       Financial Statements; No Material Adverse Effect.

 

(a)                                 The Audited Financial Statements (i) were prepared in accordance with GAAP in all material respects consistently applied throughout the period covered thereby, except as 

 

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otherwise expressly noted therein; (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, and (iii) show all Material Indebtedness and other material liabilities, direct or contingent, of the Borrower and its Subsidiaries, respectively, as of the date thereof, including liabilities for Taxes, material commitments and Indebtedness, in each case as required to be reflected therein in accordance with GAAP.

 

(b)                                The Interim Financial Statements (i) were prepared in accordance with GAAP in all material respects consistently applied throughout the period covered thereby, except as 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)                                  The forecasts delivered pursuant to Section 5.01 or Section 7.01(d) were prepared in good faith on the basis of the assumptions stated therein, which assumptions were believed to be reasonable in light of the conditions existing at the time such assumptions were made, and represented, at the time when made, the Borrower’s good faith estimate of its future financial conditions and performance (it being understood by the Administrative Agent and the Lenders that projections are not a guaranty of performance, are inherently uncertain and that actual results may be materially different).

 

(d)                                 Since December 31, 2012, 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.

 

Section 6.06                                       Litigation.  Except as set forth on Schedule 6.06, as of the Closing Date, there are no actions, suits, proceedings, claims or disputes pending or, to the knowledge of the Credit Parties, threatened, at law, in equity, in arbitration or before any Governmental Authority, by or against any Credit Party or against any of its properties that (a) purport to affect or pertain to this Agreement or any other Loan Document or the consummation of the Transaction or (b) either individually or in the aggregate could reasonably be expected to have a Material Adverse Effect.

 

Section 6.07                                       No Default.  No Credit Party is in default under any Contractual Obligation that could, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

Section 6.08                                       Collateral Representations.

 

(a)                                 Each Credit Party has good marketable title in fee simple to, or valid leasehold interests in, all Real Property necessary 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.  The properties of the Borrower and its Subsidiaries are not subject to any Liens other than Permitted Liens.

 

(b)                                 Schedule 6.08(b) sets forth a complete and accurate list as of the Closing Date of all Deposit Accounts (as defined in the UCC) and Securities Accounts (as defined in the UCC) of each Credit Party at any bank or other financial institution, in each case other than Excluded Accounts.

 

(c)                                  Schedule 6.08(c) sets forth a complete and accurate list as of the Closing Date of all Real Property owned by each Credit Party showing for each such Real Property as of the 

 

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Closing Date the street address, county or other relevant jurisdiction, state and record owner thereof.  Each Credit Party and each Subsidiary has good, marketable and insurable fee simple title to the Real Property owned by such Person, free and clear of all Liens, other than Permitted Liens.

 

(d)                                 Schedule 6.08(d) sets forth a complete and accurate list of as of the Closing Date of all Leaseholds of each Credit Party is the lessee, showing as of the date hereof the street address, county or other relevant jurisdiction, state, lessor and lessee.  To the actual knowledge of the Credit Parties, each such lease is the legal, valid and binding obligation of the lessor thereof, enforceable in accordance with its terms (except as such enforceability may be limited by applicable Debtor Relief Laws and by general equitable principles).

 

(e)                                  Schedule 6.08(e) sets forth a complete and accurate list as of the Closing Date of all certificated and uncertificated Equity Interests (other than Equity Interests of Subsidiaries) owned or held by any Credit Party as of the Closing Date, showing as of the date hereof the amount and issuer thereof.

 

(f)                                   Schedule 6.08(f) sets forth a complete and accurate list as of the Closing Date of all locations (other than locations owned by a Credit Party or tangible personal property in transit or out for repair or servicing, which is located in the Ordinary Course of Business at a customer location, or is in the possession of employees in the Ordinary Course of Business) where any inventory, equipment or other tangible personal property of a Credit Party with a fair market value equal to or greater than $1,000,000 is located as of the Closing Date.  Except as specifically noted on Schedule 6.08(f), as of the Closing Date, no personal property of any Credit Party with a fair market value equal to or greater than $1,000,000 is (i) is stored with a bailee, warehouseman, processor or similar Person or (ii) consigned to any Person.

 

(g)                                  Schedule 6.08(g) sets forth a complete and accurate list of all Material Agreements as of the Closing Date.

 

(h)                                 Schedule 6.08(h) sets forth a complete and accurate list of as of the Closing Date of the following owned or held by each Credit Party, in each case with a value (or representing property with a value or any amount payable) equal to or greater than $500,000:  all Documents (as defined in the UCC), Instruments (as defined in the UCC), Tangible Chattel Paper (as defined in the UCC) and Electronic Chattel Paper, including the name of (i) the applicable Credit Party and (ii) in the case of Electronic Chattel Paper, the account debtor.  The aggregate amount/value of all such items not included on Schedule 6.08(h) as a result of the foregoing dollar threshold does not exceed $1,000,000.

 

(i)                                     Schedule 6.08(i) sets forth a complete and accurate list as of the Closing Date of all (i) Letter-of-Credit Rights (as defined in the UCC) of each Credit Party in or of an amount equal or greater than $500,000 and (ii) Commercial Tort Claims (as defined in the UCC) of each Credit Party that have a reasonable possibility of yielding net proceeds equal to or greater than $500,000, and (A) in the case of any such Letter-of-Credit Right including the name of the issuer or nominated person, as applicable, and (B) in the case of any such Commercial Tort Claim, describing such claim in reasonable detail.  The aggregate amount/value of all such items not included on Schedule 6.08(i) as a result of the foregoing dollar threshold does not exceed $1,000,000.

 

(j)                                    Schedule 6.08(j) sets for the following information for each Credit Party as of the Closing Date: (i) exact legal name and any former legal names during the five years prior to the Closing Date, (ii) the state of incorporation or formation, (iii) the type of organization, (iv) the 

 

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location of the chief executive office and principal place of business, (v) the federal tax identification number and, (vi) if applicable, state organization number.  Except as set forth on Schedule 6.08(j) hereto, no Credit Party has been a party to a merger, consolidation or other change in corporate structure within the past five years.

 

Section 6.09                                       Environmental Compliance.

 

(a)                                 None of the Credit Parties or their Subsidiaries, and to the knowledge of the Credit Parties, no other Person has caused to exist any facts or circumstances that could reasonably be expected to give rise to liability under Environmental Laws with respect to their respective businesses, operations and properties, where such liability could reasonably be expected to have a Material Adverse Effect.

 

(b)                                 Except in each case as where the existence and/or occurrence of any of the following could not reasonably be expected to have a Material Adverse Effect:

 

(i)                                     (A) none of the properties currently or formerly owned by any Credit Party or any of its Subsidiaries is listed or proposed for listing on the NPL or on the CERCLIS or any analogous foreign, state or local list or is adjacent to any such property; (B) no Credit Party or any Subsidiary, and to the knowledge of the Credit Parties, no other Person, has operated any 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 Credit Party or any of its Subsidiaries or on any property formerly owned or operated by any Credit Party or any of its Subsidiaries; (C) there is no asbestos or asbestos-containing material on any property currently owned or operated by any Credit Party or any of its Subsidiaries; and (D) Hazardous Materials have not been Released, discharged or disposed of on any property currently or formerly owned or operated by any Credit Party or any of its Subsidiaries.

 

(ii)                                  No Credit 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 actual or threatened Release, discharge or disposal of Hazardous Materials at any site, location or operation of any Credit Party or any Subsidiary, 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 formerly owned or operated by any Credit Party or any of its Subsidiaries have been disposed of in a manner not reasonably expected to result in material liability to any Credit Party or any of its Subsidiaries

 

Section 6.10                                       Insurance.  The properties of the Credit Parties and their 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 (including, without limitation, business interruption and flood hazard insurance) as are customarily carried by companies of a similar size engaged in similar businesses and owning similar properties in localities where the Credit Party or the applicable Subsidiary operates; provided, that, if the Borrower determines, or the Administrative Agent determines, in its reasonable discretion, that the Credit Parties’ insurance provider or providers are no longer financially sound and, in the case of such determination by the Administrative Agent, upon written notice thereof to the Borrower, the Credit Parties shall have 90 days to obtain the insurance coverage required by Section 7.03 from another insurance provider reasonably acceptable to the Administrative Agent.  The present insurance coverage of the Credit Parties as of the Closing Date is outlined as to carrier, policy number, expiration date, type and amount on Schedule 6.10.

 

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Section 6.11                                       ERISA Compliance.

 

(a)                                 Each Pension Plan is in compliance in all material respects with the applicable provisions of ERISA, the Code and other Federal or state laws.  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 IRS to the effect that the form of such Pension Plan is qualified under Section 401(a) of the Code and the trust related thereto has been determined by the IRS 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 IRS.  To the best knowledge of the Borrower, nothing has occurred that would prevent or cause the loss of such tax-qualified status.

 

(b)                                 There are no pending or, to the best knowledge of the Borrower, threatened claims, actions or  lawsuits, or action by any Governmental Authority, with respect to any Pension Plan that  could reasonably be expected to have a Material Adverse Effect.  There has been no prohibited transaction or violation of the fiduciary responsibility rules with respect to any Pension Plan that has resulted or could reasonably be expected to result in a Material Adverse Effect.

 

(c)                                  Except as cannot reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect (i) no ERISA Event has occurred, and neither the Borrower 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 with respect to any Pension Plan; (ii) the Borrower and each ERISA Affiliate has met all applicable requirements under the Pension Funding Rules in respect of each Pension Plan, and no waiver of the minimum funding standards under the Pension Funding Rules has been applied for or obtained; (iii) neither the Borrower nor any ERISA Affiliate has incurred any liability to the PBGC other than for the payment of premiums, and there are no premium payments which have become due that are unpaid; (iv) neither the Borrower nor any ERISA Affiliate has engaged in a transaction that could be subject to Section 4069 or Section 4212(c) of ERISA; and (v) no Pension Plan has been terminated by the plan administrator thereof nor by the PBGC, and 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.

 

(d)                                 Neither the Borrower nor any ERISA Affiliate maintains or contributes to, or has any unsatisfied obligation to contribute to, or liability under, any active or terminated Pension Plan other than (A) on the Closing Date, those listed on Schedule 6.11(d) hereto and (B) thereafter, Pension Plans not otherwise prohibited by this Agreement.

 

Section 6.12                                       Taxes.  The Credit Parties and their Subsidiaries have filed all U.S. federal, state and other material tax returns and reports required to be filed, and have paid all U.S. federal, state and other material Taxes, assessments, fees and other governmental charges levied or imposed upon them or their properties, income or assets otherwise due and payable, except those which are being contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves have been provided in accordance with GAAP.  There is no proposed Tax assessment against any Credit Party or any Subsidiary thereof that would, if made, have a Material Adverse Effect.  Neither any Credit Party nor any Subsidiary thereof is party to any Tax sharing agreement other than (i) Tax sharing agreements between any of the Credit Parties and (ii) Tax sharing agreements entered into in the Ordinary Course of Business, the primary subject of which is not Taxes.

 

Section 6.13                                       Subsidiaries.  Schedule 6.13 hereto sets forth, as of the Closing Date, the name of each direct or indirect Subsidiary of the Borrower, its form of organization, its jurisdiction of organization, the total number of issued and outstanding shares or other interests of Equity Interests 

 

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thereof, the classes and number of issued and outstanding shares or other interests of Equity Interests of each such class, the name of each holder of Equity Interests thereof and the number of shares or other interests of such Equity Interests held by each such holder and the percentage of all outstanding shares or other interests of such class of Equity Interests held by such holders.  All of the outstanding Equity Interests owned or held by a Credit Party in each of its Subsidiaries have been validly issued, are fully paid and, to the extent applicable, non-assessable and are owned by such Credit Party free and clear of all Liens except those created under the Collateral Documents.

 

Section 6.14                                       Margin Regulations; Investment Company Act.

 

(a)                                 No Credit Party is engaged, and no Credit Party will engage, principally or as one of its important activities, in the business of purchasing or carrying Margin Stock, or extending credit for the purpose of purchasing or carrying Margin Stock.

 

(b)                                 None of the Credit Parties or any Subsidiary of a Credit Party (i)  is or is required to be registered as an “investment company” under the Investment Company Act of 1940 or (ii) subject to regulation under any other Law which limits its ability to incur Indebtedness under the Loan Documents.

 

Section 6.15                                       Intellectual Property, etc.  Each Credit Party owns, or possesses the right to use, all of the material trademarks, service marks, trade names, copyrights, patents, patent rights, franchises, licenses, domain names and other intellectual property rights (the “IP Rights”) that are reasonably necessary for the operation of their respective businesses, and to the best of its knowledge without conflict with the rights of any other Person.  Set forth on Schedule 6.15 is a list as of the Closing Date of (a) all trademarks, patents and copyrights owned by each Credit Party and registered or pending registration with, as applicable, the United States Copyright Office, the United States Patent and Trademark Office or, in the case of foreign patents, trademarks and copyrights, the equivalent office for the applicable jurisdiction, (b) all material domain names held or used by any Credit Party and (c) all licenses (other than general business software) of each Credit Party (including annual royalty payments where applicable) under which it is the licensee with respect to any material IP Rights of such Person.  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 Credit Party infringes upon any rights in any material respect held by any other Person. No claim or litigation regarding any of the foregoing is pending or, to the best knowledge of the Credit Parties, threatened, which, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.  Except as described on Schedule 6.15, as of the Closing Date none of the IP Rights owned by a Credit Party or any Subsidiary is subject to a licensing agreement or similar arrangement granting another person the right to use such IP Rights.

 

Section 6.16                                       Disclosure.  Each Credit Party has disclosed to the Administrative Agent and the Lenders all agreements, instruments and corporate or other restrictions to which it or any of its Subsidiaries or any other Credit Party is subject, and all other matters known to it, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.  Except with respect to budgets, pro formas, projections, and general industry and economic information, no report, financial statement, certificate or other information prepared and furnished (whether in writing or orally) by or on behalf of any Credit Party to the Administrative Agent or any Lender in connection with the transactions contemplated hereby 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, in the light of the circumstances under which they were made, not materially misleading; provided that, with respect to projected financial information, the Credit Parties represent only that such 

 

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information was prepared in good faith based upon assumptions believed by the Borrower to be reasonable in light of the conditions existing at the time such assumptions were made.

 

Section 6.17                                       Compliance with Laws.  Each Credit Party 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.

 

Section 6.18                                       Labor Matters.  There are no collective bargaining agreements or Multiemployer Plans covering the employees of any Credit Party or any Subsidiary thereof as of the Closing Date.

 

Section 6.19                                       Solvency.

 

The Credit Parties, together with their Subsidiaries, on a consolidated basis, are Solvent.

 

Section 6.20                                       Anti-Terrorism Law Compliance.  No Covered Entity is in violation of any law or regulation, or is identified in any list of any government agency (including, without limitation, the U.S. Office of Foreign Asset Control list, Executive Order No. 13224 or the Patriot Act), in each case, that prohibits or limits the conduct of business with or the receiving of funds, goods or services to or for the benefit of certain Persons specified therein or that prohibits or limits any Lender or LC Issuer from making any advance or extension of credit to the Borrower or from otherwise conducting business with the Borrower.

 

Section 6.21                                       Collateral Documents.

 

(a)                                 Subject to any applicable exceptions set forth therein, the Security Agreement, upon execution and delivery thereof by the parties thereto, will create in favor of the Administrative Agent, for the benefit of the Secured Creditors, a legal, valid and enforceable security interest in the Collateral described therein (except as such enforceability may be limited by applicable Debtor Relief Laws and by general equitable principles) and (i) when the Pledged Equity, together with endorsements in blank, required to be delivered on the Closing Date to the Administrative Agent under the Security Agreement is delivered to the Administrative Agent in the State of Ohio, the Lien created under the Security Agreement shall constitute a fully perfected first priority Lien, subject only to non-consensual Permitted Liens, on, and security interest in, all right, title and interest of the applicable Credit Parties in such Pledged Equity, in each case prior and superior in right to any other person, subject only to holders of non-consensual Permitted Liens and (ii) when financing statements in appropriate form are filed and maintained in the offices specified on Schedule 6.21, the Lien created under the Security Agreement will constitute a fully perfected Lien on, and security interest in, all right, title and interest of the applicable Credit Parties as of the Closing Date in such Collateral described therein to the extent that a security interest in such Collateral may be perfected by such filing (other than Intellectual Property, as defined in the Security Agreement), in each case prior and superior in right to any other Person, other than with respect to Permitted Liens.

 

(b)                                 Subject to any applicable exceptions set forth therein, upon the recordation of the Security Agreement (or the ancillary grant or security agreement specified therein) with the United States Patent and Trademark Office and the United States Copyright Office, together with the financing statements in appropriate form filed in the offices specified on Schedule 6.21, the 

 

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Security Agreement shall provide for a fully perfected Lien on, and security interest in, all right, title and interest of the applicable Credit Parties in the Intellectual Property (as defined in the Security Agreement) in which a security interest may be perfected by filing in the United States and its territories and possessions, in each case prior and superior in right to any other person, other than with respect to Permitted Liens (it being understood that subsequent recordings in the United States Patent and Trademark Office and the United States Copyright Office may be necessary to perfect a Lien on registered trademarks, trademark applications and copyrights acquired by the Credit Parties after the date hereof).

 

(c)                                 The Mortgages, if any, upon recordation thereof in the filing offices specified on Schedule 6.21, are effective to create in favor of the Administrative Agent, for the benefit of the Secured Creditors, a legal, valid and enforceable Lien (except as such enforceability may be limited by applicable Debtor Relief Laws and by general equitable principles) on all of the applicable Credit Party’s right, title and interest in and to the Mortgaged Property thereunder.

 

Section 6.22                                       Classification as Senior Indebtedness.

 

The Obligations constitute “Senior Indebtedness”, “Senior Debt”, “Designated Senior Indebtedness” or any similar designation under and as defined in any agreement governing any subordinated Indebtedness and the subordination provisions set forth in each such agreement are legally valid and enforceable against the parties thereto (except as such enforceability may be limited by applicable Debtor Relief Laws and by general equitable principles).

 

ARTICLE VII

 

AFFIRMATIVE COVENANTS

 

Each Credit Party hereby covenants and agrees that on the Closing Date and thereafter, so long as this Agreement is in effect and until such time as the Commitments have been terminated, no Notes remain outstanding and the Loans, together with interest, Fees and all other Obligations incurred hereunder (other than Contingent Obligations) and under the other Loan Documents, have been paid in full, as follows:

 

Section 7.01                                       Reporting Requirements.  The Borrower will furnish, or cause to be furnished, to the Administrative Agent for distribution to the Lenders:

 

(a)                           Annual Financial Statements.  Within 90 days after the close of each fiscal year, the consolidated balance sheets of the Borrower and its consolidated Subsidiaries as at the end of such fiscal year and the related consolidated statements of income (loss), of stockholders’ equity and of cash flows for such fiscal year, in each case setting forth comparative figures for the preceding fiscal year, all in reasonable detail and prepared in accordance with GAAP (except as noted therein), audited and accompanied by a report and opinion with respect to such consolidated financial statements of independent public accountants of recognized national standing reasonably acceptable to the Administrative Agent (it being agreed that Deloitte LLP is reasonably acceptable to the Administrative Agent), 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 a qualification or exception for the fiscal year ending within twelve (12) months immediately preceding the scheduled maturity of the Loans or Permitted Unsecured Debt solely as a result of such scheduled maturity).

 

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(b)                           Quarterly Financial Statements.  Within 45 days after the end of the first three fiscal quarters of each fiscal year, the unaudited consolidated balance sheets of the Borrower and its consolidated Subsidiaries as at the end of such quarterly period and the related unaudited consolidated statements of income (loss), stockholders’ equity and cash flows for such quarterly period and for the fiscal year to date, setting forth in each case comparative figures for the related periods in the prior fiscal year, all in reasonable detail and duly certified on behalf of the Borrower by the chief financial officer of the Borrower (or another Authorized Officer of the Borrower reasonably acceptable to the Administrative Agent), subject to changes resulting from year-end audit adjustments and the absence of footnotes.

 

(c)                            Compliance Certificates.  At the time of the delivery of the financial statements provided for in subparts (a) and (b) above, (A) a certificate (a “Compliance Certificate”), substantially in the form of Exhibit C, signed by the chief financial officer of the Borrower (or another Authorized Officer reasonably acceptable to the Administrative Agent), and (B) a copy of management’s discussion and analysis with respect to such financial statements;

 

(d)                           Budgets and Forecasts.  Not later than 60 days after the commencement of any fiscal year, commencing with the fiscal year ending December 31, 2013, a consolidated budget in reasonable detail for each of the four fiscal quarters of such fiscal year, as customarily prepared by management for its internal use, setting forth, with appropriate discussion, the forecasted balance sheet, income statement, operating cash flows and capital expenditures of the Borrower and its Subsidiaries for the period covered thereby, and the principal assumptions upon which forecasts and budget are based.

 

(e)                            Notices.  Promptly, and in any event within five Business Days, after the Borrower or any other Credit Party obtains knowledge thereof, notice of:

 

(i)                                     the occurrence of any event that constitutes a Default or Event of Default, which notice shall specify the nature thereof, the period of existence thereof and what action the Borrower proposes to take with respect thereto; provided that any Event of Default resulting solely from the failure of any Credit Party to give notice of a Default as required by this clause (i) shall be deemed waived upon the cure or waiver of such Default without any further action hereunder;

 

(ii)                                  the commencement of, or any other material development concerning, any litigation or governmental or regulatory proceeding pending against any Credit Party or any of its Subsidiaries or the occurrence of any other event, if the same could reasonably be expected to have a Material Adverse Effect; or

 

(iii)                               the occurrence of any material ERISA Event.

 

(f)                             Environmental Matters.  Promptly after the Borrower or any other Credit Party obtains knowledge of the assertion or occurrence thereof, notice of any action or proceeding against or of any noncompliance by any Credit Party or any of its Subsidiaries with any Environmental Law (or permit issued thereunder) that could reasonably be expected to have a Material Adverse Effect.

 

(g)                            SEC Reports and Registration Statements; Other Indebtedness.

 

(i)                                     Within three Business Days after transmission thereof or other filing with the SEC, copies of all annual, quarterly or current reports that the Borrower files with the 

 

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SEC on Form 10-K, 10-Q or 8-K (or any successor forms); provided, however, that the Borrower may also comply with this subpart by publishing such statements and reports on its internet website or in another publicly accessible electronic database, and

 

(ii)                                  Within three Business Days after the furnishing thereof, copies of any statement or report furnished to any shareholders generally or any holder of any Material Indebtedness of any Credit Party or any Subsidiary thereof pursuant to the terms of any indenture, loan or credit or similar agreement and not otherwise required to be furnished to the Administrative Agent pursuant to any other clause of this Section 7.01;

 

(h)                           Annual, Quarterly and Other Reports.  Within three Business Days after transmission thereof to its stockholders, copies of all annual, quarterly and other reports and all proxy statements that the Borrower furnishes to its stockholders generally; provided, however, that the Borrower may also comply with this subpart by publishing such statements and reports on its internet website or in another publicly accessible electronic database.

 

(i)                               Auditors’ Letters, etc.  Within three Business Days of receipt thereof, a copy of any detailed audit report, management letter or recommendations submitted to the board of directors (or audit commitment of the board of directors) of the Borrower by its independent accountants in connection with the accounts or books of a Credit Party or any of its Subsidiaries, or any annual audit of any of them.

 

(j)                              Insurance; Intellectual Property; Real Property.  Concurrently with the delivery of the annual financial statements for each fiscal year of the Borrower are required to be delivered pursuant to Section 7.01(a):

 

(i)                                     updated insurance certificates summarizing the insurance coverage in effect for the Credit Parties and their Subsidiaries as of such date;

 

(ii)                                  a report supplementing Schedules 6.08(b), 6.08(c), and 6.08(f),  including a list and description (including the street address, county or other relevant jurisdiction, state, and record owner thereof) of all Real Property acquired during such fiscal year; and

 

(iii)                               a report supplementing Schedule 6.15, setting forth a list of registration numbers for all patents, trademarks, service marks, trade names and copyrights awarded to any Credit Party during such fiscal year.

 

Each such report required to be delivered pursuant to this Section 7.01(j) shall be signed by an Authorized Officer of the Borrower and to be in a form reasonably satisfactory to the Administrative Agent.

 

(k)                           Excess Cash Flow.  Concurrently with the delivery of the Required Financial Information required to be delivered with respect to each fiscal year of the Borrower (commencing with the fiscal year ending December 31, 2014), a certificate containing the calculation of Excess Cash Flow for such fiscal year.

 

(l)                               Other Notices.  Promptly after the transmission or receipt thereof, as applicable, copies of all notices received or sent by a Credit Party or any Subsidiary thereof to or from the holders of any Material Indebtedness or any trustee with respect thereto.

 

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(m)                       Other Information.  Within 10 days after a request therefor, the Borrower shall use commercially reasonable efforts to deliver to the Administrative Agent such other information or documents relating to the financial condition, properties and operations of any Credit Party or any of their Subsidiaries as the Administrative Agent may reasonably request from time to time.

 

The Credit Parties hereby acknowledge that (a) the Administrative Agent and/or the Lead Arranger will make available to the Lenders and the LC Issuer materials and/or information provided by or on behalf of the Borrower and other Credit Parties hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on Syndtrak 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 Credit Parties hereby agree that (i) all Borrower Materials that are to be made available to Public Lenders 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; (ii) by marking Borrower Materials “PUBLIC,” the Credit Parties shall be deemed to have authorized the Administrative Agent, the Lead Arranger, the LC Issuer and the Lenders to treat such Borrower Materials as not containing any material non-public information with respect to the applicable issuer or its securities for purposes of United States federal and state securities laws (provided, however, that to the extent such Borrower Materials constitute Confidential Information, they shall be treated as set forth in Section 11.15); (iii) all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Side Information;” and (iv) the Administrative Agent and the Lead Arranger 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 that is not designated “Public Side Information.”

 

Section 7.02                                       Books, Records and Inspections.  Each Credit Party will, and will cause each of its Subsidiaries to,

 

(a)                           maintain proper books of record and account, in which full, true and correct entries in all material respects in conformity with GAAP consistently applied shall be made; 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 Credit Party or such Subsidiary, as the case may be.

 

(b)                           permit representatives of the Administrative Agent (including independent contractors engaged by the Administrative Agent) to visit and inspect any of its properties and assets, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss the affairs, finances and accounts of the Credit Parties and their Subsidiaries with the directors, officers, and independent public accountants thereof, all at the expense of the Borrower and at such reasonable times during normal business hours and as often as may be reasonably requested by the Administrative Agent, upon reasonable advance notice to the Borrower; provided, however, that, unless an Event of Default has occurred and is continuing, or unless otherwise agreed to in writing by the Borrower, in its sole discretion, the Administrative Agent (and its designated representatives) shall be limited to one such inspection during each fiscal year of the Borrower; provided, further, when an Event of Default exists the Administrative Agent (or any of its representatives) may do any of the foregoing at the expense of the Borrower at any time during normal business hours and without advance notice; provided, further, that, notwithstanding the foregoing, the Borrower shall be given reasonable prior written 

 

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notice of and a representative of the Borrower shall be given reasonable opportunity to be present at any meetings with the Credit Parties’ accountants.

 

Notwithstanding anything to the contrary in this Section, none of the Borrower or any Credit Party will be required to disclose, permit the inspection, examination or making copies or abstracts of, or discussion of, any documents, information or other matter (i) that constitutes non-financial trade secrets or non-financial proprietary information, (ii) in respect of which disclosure to the Administrative Agent or any Lender (or their respective representatives or contractors) is prohibited by Law or any binding agreement or (iii) that is subject to attorney client or similar privilege or constitutes attorney work product.

 

Section 7.03                                       Insurance.

 

(a)                           Maintain, with financially sound and reputable insurance companies, insurance (subject to customary deductibles and retentions) in such amounts and against such risks as are customarily maintained by similarly situated companies engaged in the same or similar businesses operating in the same or similar locations and cause the Borrower and its Subsidiaries to be listed as insured and the Administrative Agent to be listed as a lender’s loss payee on its property and property casualty policies and as an additional insured on its general liability policies.  Notwithstanding the foregoing, (i) the Borrower and the Subsidiaries may self-insure with respect to such risks with respect to which companies of established reputation engaged in the same general line of business in the same general area usually self-insure and (ii) if the Borrower determines, or Administrative Agent determines, in its reasonable discretion, that the Credit Parties’ insurance provider or providers are no longer financially sound and, in the case of such determination by the Administrative Agent, upon written notice thereof to the Borrower, the Credit Parties shall have 90 days to obtain the insurance coverage required by this Section 7.03 from another insurance provider reasonably acceptable to the Administrative Agent.

 

(b)                           If any portion of any Mortgaged Property is at any time located in an area specifically identified by the Federal Emergency Management Agency (or any successor agency) as a Special Flood Hazard Area with respect to which flood insurance has been made available under the National Flood Insurance Act of 1968 (as now or hereafter in effect or successor act thereto), then the Borrower shall, or shall cause each applicable Subsidiary to (i) maintain, or cause to be maintained, with a financially sound and reputable insurer (subject to clause (ii) of the second sentence of Section 7.03(a)), flood insurance in an amount and otherwise sufficient to comply with all applicable rules and regulations promulgated pursuant to Flood Insurance Laws and (ii) deliver to the Administrative Agent evidence of such compliance in form and substance reasonably acceptable to the Administrative Agent.

 

(c)                            In connection with the covenants set forth in this Section 7.03, it is understood and agreed that: (i) none of the Administrative Agent, the Lenders, the LC Issuer and their respective agents or employees shall be liable for any loss or damage insured by the insurance policies required to be maintained under this Section 7.03, it being understood that (A) the Credit Parties shall look solely to their insurance companies or any other parties other than the aforesaid parties for the recovery of such loss or damage and (B) such insurance companies shall have no rights of subrogation against the Administrative Agent, the Lenders, any LC Issuer or their agents or employees.  If, however, the insurance policies, as a matter of the internal policy of such insurer, do not provide waiver of subrogation rights against such parties, as required above, then the Borrower, on behalf of itself and behalf of each of its Subsidiaries, hereby agrees, to the extent permitted by law, to waive, and further agrees to cause each of their Subsidiaries to waive, its right of recovery, if any, against the Administrative Agent, the Lenders, any LC Issuer and their 

 

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agents and employees; and (ii) the designation of any form, type or amount of insurance coverage by the Administrative Agent under this Section 7.03 shall in no event be deemed a representation, warranty or advice by the Administrative Agent or the Lenders that such insurance is adequate for the purposes of the business of the Borrower and the Subsidiaries or the protection of their properties.

 

Section 7.04                                       Payment of Taxes and Claims.  Each Credit Party will, and will cause each of its Subsidiaries to, pay and discharge, all federal, state, and other material Taxes imposed upon it or upon its income or profits, or upon any properties belonging to it, prior to the date on which penalties attach thereto, and all lawful claims that, if unpaid, would become a Lien (other than a Permitted Lien); provided, however, that neither a Credit Party nor any of its Subsidiaries shall be required to pay any such Tax that is being contested in good faith and by appropriate proceedings if it has maintained adequate reserves with respect thereto in accordance with GAAP.

 

Section 7.05                                       Corporate and other Entity Franchises.  Each Credit Party will do, and will cause each of its Subsidiaries to do or cause to be done, all things necessary to preserve and keep in full force and effect its corporate or other entity existence, rights and authority in its jurisdiction of organization; provided, however, that nothing in this Section 7.05 shall be deemed to prohibit any transaction permitted by Section 8.02.

 

Section 7.06                                       Compliance with Statutes, etc.  Each Credit Party will, and will cause each of its Subsidiaries to, comply with all applicable statutes, regulations and orders of, and all applicable restrictions imposed by, all Governmental Authorities, except in each case as would not reasonably expected to have a Material Adverse Effect.

 

Section 7.07                                       Compliance with Environmental Laws.  Without limitation of the covenants contained in Section 7.06:

 

(a)                           each Credit Party will, and will cause each of its Subsidiaries to, comply in all material respects, with all Environmental Laws applicable to its or their ownership, lease or use of all Real Property now or hereafter owned, leased or operated by a Credit Party or any of its Subsidiaries, and will promptly pay or cause to be paid all costs and expenses incurred in connection with such compliance, except to the extent that such compliance with Environmental Laws is being contested in good faith and by appropriate proceedings and for which adequate reserves have been established to the extent required by GAAP, and an adverse outcome in such proceedings is not reasonably likely to have a Material Adverse Effect.

 

(b)                           each Credit Party will keep or cause to be kept, and will cause each of its Subsidiaries to keep or cause to be kept, all Real Property now or hereafter owned by a Credit Party or any of its Subsidiaries free and clear of any Liens imposed pursuant to Environmental Laws other than Permitted Liens.

 

(c)                            no Credit Party nor any of its Subsidiaries will generate, use, treat, store, Release or dispose of Hazardous Materials on any Real Property now or hereafter owned, leased or operated by such Person or transport or arrange for transport of Hazardous Materials to or from any such Real Property other than in compliance with applicable Environmental Laws and in the Ordinary Course of Business, except for such noncompliance as is not reasonably likely to have a Material Adverse Effect.

 

(d)                           If required to do so under any applicable order issued under any Environmental Law by any Governmental Authority, each will undertake, and will cause each of its Subsidiaries 

 

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to undertake, any clean up, removal, remedial or other action necessary to remove and clean up any Hazardous Materials from any Real Property owned, leased or operated by such Credit Party or any of its Subsidiaries in accordance with, in all material respects, the requirements of all applicable Environmental Laws and in accordance with, in all material respects, such orders of all Governmental Authorities, except to the extent that such Credit Party or such Subsidiary is contesting such order in good faith and by appropriate proceedings and for which adequate reserves have been established to the extent required by GAAP.

 

Section 7.08                                       Additional Guarantors.  The Borrower will notify the Administrative Agent at the time that any Person becomes a Subsidiary and promptly thereafter (and in any event within 30 days), cause any such Subsidiary that is a Domestic Subsidiary (other than any Domestic Subsidiary that is an Excluded Subsidiary) to (a) become a Guarantor by executing and delivering to the Administrative Agent a Joinder Agreement, and (b) deliver to the Administrative Agent items of the types referred to for each of the initial Credit Parties pursuant to Sections 5.01(d), (e), (f) and (g), all in form, content and scope reasonably satisfactory to the Administrative Agent.

 

Section 7.09                                       Pledged Assets.

 

(a)                                 Equity Interests.  The Credit Parties will cause (i) 100% of the issued and outstanding Equity Interests of each Domestic Subsidiary (other than any Domestic Subsidiary that is an Excluded Subsidiary) of the Borrower, (ii) 65% of combined voting power of the issued and outstanding Equity Interests entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) in each Foreign Subsidiary and each Excluded Foreign Holding Company directly owned by the Borrower or any Domestic Subsidiary other than an Excluded Foreign Holding Company and (iii) 100% of the issued and outstanding Equity Interests not entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) in each Foreign Subsidiary and each Excluded Foreign Holding Company directly owned by the Borrower or any Domestic Subsidiary (other than Excluded Foreign Holding Companies), in each case to be subject at all times to a first priority, perfected Lien (subject only to non-consensual Permitted Liens) in favor of the Administrative Agent (for the benefit of the Secured Creditors) pursuant to the terms and conditions of the Collateral Documents or such other security documents as the Administrative Agent shall reasonably request (it being understood that no foreign law security documents shall be required as of the Closing Date, but, if at any time after the Closing Date, any Foreign Subsidiary or Excluded Foreign Holding Company, individually or together with its Subsidiaries, (i) holds more than 20% of the total consolidated assets of the Borrower and its Subsidiaries as of any applicable Test Date or (ii) generates more than 20% of Consolidated EBITDA of the Borrower and its Subsidiaries for the four fiscal quarter period ending as of any applicable Test Date, then the Credit Parties shall promptly thereafter cause to be delivered to the Administrative Agent such local law security documents as the Administrative Agent shall reasonably request and deem necessary for the purpose of effecting such Lien on 65% of combined voting power of the issued and outstanding Equity Interests entitled to vote of such Foreign Subsidiary or Excluded Foreign Holding Company and ensuring the validity and enforceability of such Lien under applicable local law, and a customary legal opinion covering the creation and perfection of such Lien under such applicable local law).

 

(b)                                 Other Assets.  Each Credit Party will (i) cause all of its owned Real Property with a fair market value in excess of $750,000 and, to the extent required by the Security Agreement, personal property (other than Excluded Property) to be subject at all times (except as expressly contemplated otherwise not required by the Loan Documents) to first priority (subject to Permitted Liens), perfected and, in the case of Real Property, title insured, Liens in favor of the Administrative Agent (for the benefit of the Secured Creditors) to secure the Obligations, in each

 

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case pursuant to the terms and conditions of this Agreement (including, without limitation Sections 7.12 below) and the Collateral Documents or, with respect to any property with a fair market value in excess of $750,000 acquired after the Closing Date, such other additional security documents as the Administrative Agent shall reasonably request, and (ii) deliver such other documentation as the Administrative Agent may reasonably request (in accordance with the provisions hereof and of the Security Agreement) in connection with the foregoing, including, without limitation, appropriate UCC financing statements, real estate title insurance policies, surveys, appraisals, environmental reports, evidence of insurance (including flood hazard insurance where required by applicable regulation), landlord’s waivers, certified resolutions and other organizational and authorizing documents of such Person, favorable opinions of counsel to such Person (which shall cover, among other things, the enforceability of the documentation referred to above and the perfection of the Administrative Agent’s Liens thereunder) and other items of the types required to be delivered for each of the initial Credit Parties pursuant to Section 5.01 (and in the case of owned Real Property, other items of the type described in Section 7.12(d)), all in form, content and scope reasonably satisfactory to the Administrative Agent.

 

Section 7.10                                       Senior Debt.  Each Credit Party will designate all Obligations as “Senior Debt,” “Designated Senior Debt” (or any comparable term) under, and as defined in, the documentation governing any permitted Material Indebtedness of such Credit Party (to the extent applicable).

 

Section 7.11                                       Maintenance of Properties.  Each Credit Party will, and will cause each of its Subsidiaries to, (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 and casualty and condemnation events excepted and (b) make all necessary repairs thereto and renewals and replacements thereof except, in each case, where the failure to do so could not reasonably be expected to have a Material Adverse Effect.

 

Section 7.12                                       Further Assurances.

 

(a)                                 General.  Each Credit Party will, promptly upon the reasonable written request of the Administrative Agent, or the Required Lenders through the Administrative Agent, (a) correct any material defect or error that may be discovered in any Loan Document or in the execution, acknowledgment, filing or recordation thereof, and (b) do, execute, acknowledge, deliver, record, re-record, file, re-file, register and re-register any and all such further acts, deeds, certificates, assurances and other instruments as the Administrative Agent, or the Required Lenders through the Administrative Agent, may reasonably require from time to time in order to (i) carry out more effectively the purposes of the Loan Documents, (ii) to the fullest extent permitted by applicable law, subject any Credit Party’s or any of its Subsidiaries’ properties, assets, rights or interests (other than Excluded Property) to the Liens now or hereafter intended to be covered by any of the Collateral Documents, (iii) perfect and maintain the validity, effectiveness and priority (subject to Permitted Liens) of any of the Collateral Documents and any of the Liens intended to be created thereunder and (iv) assure, convey, grant, assign, transfer, preserve, protect and confirm more effectively unto the Secured Creditors, the rights granted or now or hereafter intended to be granted to the Secured Creditors under any Loan Document or under any other instrument executed in connection with any Loan Document to which any Credit Party or any of its Subsidiaries is or is to be a party, and cause each of its Subsidiaries to do so.

 

(b)                                 Collateral Consents.

 

(i)                                     In the case of any tangible personal property that is Collateral with a fair market value equal to or greater than $1,000,000 and that is either (a) located at a premises leased by a 

 

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Credit Party or (b) in the possession or control of a warehouseman, bailee or agent, in each case, other than with respect to tangible personal property in transit or out for repair or servicing, which is located in the Ordinary Course of Business at a customer location, or is in the possession of employees in the Ordinary Course of Business, the Borrower will use commercially reasonable efforts to deliver to the Administrative Agent all such customary estoppel letters, bailee letters, consents and waivers from the landlords on such Real Property or such warehouseman, bailee or agent, as applicable, as may be reasonably required by the Administrative Agent.

 

(ii)                                  In the event that after the Closing Date, other than with respect to tangible personal property in transit or out for repair or servicing, which is located in the Ordinary Course of Business at a customer location, or is in the possession of employees in the Ordinary Course of Business, any Credit Party (i) occupies a leased location where it stores or houses inventory or other tangible personal property that is Collateral or (ii) stores inventory or other tangible personal property that is Collateral with a with a of a warehouseman, bailee or agent, in each case with fair market value equal to or greater than $1,000,000, such Credit Party shall notify the Administrative Agent and, if requested by the Administrative Agent, use commercially reasonable efforts to deliver or cause to be delivered to the Administrative Agent all such customary estoppel letters, bailee letters, consents and waivers from the landlords on such Real Property or such warehouseman, bailee or agent, as applicable, as may be reasonably required by the Administrative Agent.

 

(c)                                  Deposit and Securities Accounts.

 

(i)                                     On or before October 27, 2013 (or such later date as may be consented to by the Administrative Agent in its sole discretion), for each Deposit Account (as defined in the UCC) or Securities Account (as defined in the UCC) set forth on Schedule 6.08(b) (other than any such account that is an Excluded Account), the applicable Credit Parties shall either (A) close such account or (B) execute and deliver (or cause to be executed and delivered) to the Administrative Agent, a control agreement in form and substance reasonably acceptable to the Administrative Agent.

 

(ii)                                  From and after the Closing Date, the Credit Parties shall not establish any new Deposit Account or Securities Account with any financial institution unless the applicable Credit Party shall have executed and delivered (or caused to be executed and delivered) to the Administrative Agent within 30 days after the opening of such new Deposit Account or Securities Accounts, a control agreement with respect to such account (other than any such account that is an Excluded Account) in form and substance reasonably acceptable to the Administrative Agent.

 

(d)                                 Real Property.  On or before October 27, 2013 (or such later date as may be consented to by the Administrative Agent in its sole discretion), each applicable Credit Party shall deliver to the Administrative Agent in each case in form and substance reasonably satisfactory to the Administrative Agent:

 

(i)                                     fully executed and notarized mortgages, deeds of trust, trust deeds or deeds to secure debt (each, as the same may be amended, modified, restated or supplemented from time to time, a “Mortgage” and collectively the “Mortgages”) encumbering the fee interest of any Credit Party in each of the owned Real Properties with a fair market value in excess of $750,000 (other than any such Real Property that is Excluded Property) identified on Schedule 6.08(c) (each a “Mortgaged Property” and collectively the “Mortgaged Properties”);

 

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(ii)                                  maps or plats of an as built survey of the sites of the Real Property covered by the Mortgages certified to the Administrative Agent and the title insurance company issuing the policies referred to in Section 7.12(d)(iii) (the “Title Insurance Company”) in a manner and in form reasonably satisfactory to each of the Administrative Agent and the Title Insurance Company, dated a date reasonably satisfactory to each of the Administrative Agent and the Title Insurance Company by an independent professional licensed land surveyor (or civil engineer), which maps or plats and the surveys on which they are based shall be sufficient to delete any standard printed survey exception contained in the applicable title policy;

 

(iii)                               fully paid American Land Title Association Lender’s Extended Coverage title insurance policies issued by a title company reasonably acceptable to the Administrative Agent (the “Mortgage Policies”) with respect to each Mortgaged Property, assuring the Administrative Agent that each of the Mortgages creates a valid and enforceable first priority mortgage lien (except as such enforceability may be limited by applicable Debtor Relief Laws and by general equitable principles) on the applicable Mortgaged Property, free and clear of all defects and encumbrances except Permitted Liens, which Mortgage Policies shall otherwise be in form and substance reasonably satisfactory to the Administrative Agent and shall include such endorsements as are reasonably requested by the Administrative Agent and is available in the applicable jurisdiction;

 

(iv)                              with respect to any Mortgaged Property that is in an area designated by the Federal Emergency Management Agency as having special flood or mud slide hazards (a “Flood Hazard Property”) and where the community in which such Mortgaged Property is located is participating in the National Flood Insurance Program, copies of insurance policies or certificates of insurance of the Credit Parties and their Subsidiaries evidencing flood insurance satisfactory to the Administrative Agent and naming the Administrative Agent as additional loss payee on behalf of the Lenders;

 

(v)                                 a legal opinion of local counsel in the applicable jurisdiction covering customary matters related to the Mortgages required by this Section 7.12;

 

(vi)                              a current appraisal of each Mortgaged Property or other estimate of current fair market value reasonably acceptable to the Administrative Agent;

 

(vii)                           an environmental assessment for each Mortgaged Property, prepared by environmental engineers reasonably acceptable to the Administrative Agent, and accompanied by such reports, certificates studies or data as the Administrative Agent may reasonably require; and

 

(viii)                        such assignments of leases, estoppel letters, attornment agreements, subordination agreements, consents, waivers and releases as the Administrative Agent may reasonably require with respect to other Persons having an interest in any Mortgaged Property.

 

(e)                            Other Post Closing Matters.  Execute and deliver the documents and complete the tasks set forth on Schedule 7.12, in each case within the time limits specified on such schedule.

 

Section 7.13                                       Use of Proceeds.  The Borrower will use the proceeds of the Credit Events (a) to refinance existing Indebtedness of the Borrower and its Subsidiaries (including all Indebtedness 

 

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outstanding under the Existing Credit Agreement), and to pay fees and expenses incurred in connection with the Transaction and the transactions under this Agreement, and (b) thereafter for working capital and other general corporate purposes not in contravention of any Law or of any Loan Document (including, without limitation, payment of dividends, repurchases of Equity Interests, Capital Expenditures and Permitted Acquisitions).

 

Section 7.14                                       Interest Rate Hedging.  Within 90 days following the Closing Date, and continuing until the second anniversary thereof, the Borrower shall obtain and maintain protection against fluctuations in interest rates pursuant to one or more Interest Rate Protection Agreements (on terms and with one or more counterparties reasonably acceptable to the Administrative Agent) such that at least 50% of total Indebtedness represented by the Term Loans outstanding as of the Closing Date shall either (x) effectively bear interest at a fixed rate or (y) be subject to an interest rate cap, in each case in form and substance reasonably acceptable to the Administrative Agent.

 

Section 7.15                                       Maintenance of Ratings.  The Borrower shall use commercially reasonable efforts to (a) 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, and (b) obtain and thereafter maintain a public rating by each of S&P and Moody’s for each of the revolving and term loan facilities described herein (it being understood and agreed that the Borrower shall not be required to maintain any such ratings at a particular level).

 

ARTICLE VIII

 

NEGATIVE COVENANTS

 

Each Credit Party hereby covenants and agrees that on the Closing Date and thereafter, so long as this Agreement is in effect and until such time as the Commitments have been terminated, no Notes remain outstanding and the Loans, together with interest, Fees and all other Obligations (other than Contingent Obligations) incurred hereunder and under the other Loan Documents, have been paid in full, as follows:

 

Section 8.01                                       Changes in Business.  Neither any Credit Party nor any of its Subsidiaries will engage in any business if, as a result, the general nature of the business, taken on a consolidated basis, which would then be engaged in by the Borrower and its Subsidiaries, would be substantially changed from the Permitted Business.

 

Section 8.02                                       Consolidation, Merger, Asset Sales, etc.  No Credit Party will, nor will it permit any of its Subsidiaries to, dissolve, liquidate or wind up its affairs, merge, consolidate, sell, transfer, lease, license or otherwise dispose of its property or assets (including, without limitation, pursuant to a Sale and Leaseback Transaction) or agree to do so at a future time except the following, without duplication, shall be expressly permitted:

 

(a)                           the sale, transfer, lease or other disposition of (i) cash, Cash Equivalents, inventory and other personal property in the Ordinary Course of Business, (ii) any equipment or other personal property that is obsolete, worn out or no longer used in the conduct of such Person’s business, (iii) equipment by means of trade-in so long as such equipment is replaced substantially concurrently with like-kind or other equipment used or useful in the conduct of such Person’s business, and (iv) receivables in connection with compromises and settlements of receivables in the Ordinary Course of Business;

 

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(b)                           the disposition of property or assets as a result of a casualty or condemnation event, so long as the Net Cash Proceeds received by the applicable Credit Party or Subsidiary as a result thereof are used to prepay the Loans or to repair, replace or acquire fixed or capital assets in replacement of the assets subject to such event in accordance with the terms of Section 2.13(b)(viii);

 

(c)                            the sale, lease, transfer or other disposition of property or assets from (i) a Credit Party to another Credit Party and (ii) a Subsidiary that is not a Credit Party to a Credit Party or to another Subsidiary that is not a Credit Party;

 

(d)                           (i) the merger or consolidation of the Borrower with any of its Subsidiaries; provided that the Borrower shall be the surviving or continuing entity, (ii) the merger or consolidation of any Subsidiary of the Borrower with another Subsidiary of the Borrower that is a Credit Party or that becomes a Credit Party simultaneously therewith and (iii) the merger or consolidation of any Subsidiary of the Borrower that is not a Credit Party with and into any other Subsidiary of the Borrower that is not a Credit Party;

 

(e)                            (i) non-exclusive licenses of IP Rights to another Person (x) entered into in the Ordinary Course of Business and (y) that do not interfere with the business of the Credit Parties in any material respect, or (ii) the lapse, abandonment or other dispositions of IP Rights that is, in the reasonable good faith judgment of the Borrower or such other applicable Subsidiary, no longer economically practicable or commercially desirable to maintain or useful in the conduct of the business of the Borrower or any of its Subsidiaries;

 

(f)                             other Asset Sales not otherwise permitted hereunder; provided that: (i) the fair market value of all such assets sold or otherwise disposed of by the Credit Parties and their Subsidiaries in all such transactions consummated in reliance on this clause (f) shall not exceed $25,000,000 in the aggregate during the term of this Agreement, (ii) at least 75% of the consideration received therefor by the Credit Party or its Subsidiary is in the form of cash or Cash Equivalents (such consideration and to be in an aggregate amount not less than the fair market value of the property disposed and the portion of such consideration consisting of cash and Cash Equivalents to be paid contemporaneously with the consummation of such transaction), (iii) the Net Cash Proceeds therefrom are used to prepay the Loans or to acquire fixed or capital assets in replacement of the disposed assets to the extent required by the terms of Section 2.13(b)(v) and (iv) no Default or Event of Default would exist both before and after giving effect thereto;

 

(g)                            in connection with any Permitted Acquisition, any Subsidiary of the Borrower or 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) (x) the Person surviving such merger shall be a wholly-owned Subsidiary of the Borrower (except where the Borrower is the merging party) and (y) in the case where the Borrower is the merging party, the Borrower shall be the surviving party and (ii) in the case of any such merger to which any Credit Party (other than the Borrower) is a party, such Credit Party is the surviving Person;

 

(h)                           any Restricted Payment that is permitted hereunder or the making of an Investment that is permitted hereunder;

 

(i)                               the granting of Permitted Liens;

 

(j)                              the forgiveness of notes received pursuant to Section 8.05(m);

 

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(k)                           leases, licenses, subleases, or sublicenses entered into in the Ordinary Course of Business, to the extent that they do not materially interfere with the business of the Borrower or any Subsidiary;

 

(l)                               Excluded Issuances and other equity issuances by the Borrower;

 

(m)                       issuances or dispositions of options or equity stock to management of any Credit Party or any Subsidiary as part of any management compensation plan or otherwise in the Ordinary Course of Business; and

 

(n)                           the unwinding of any Hedge Agreement.

 

Section 8.03                                       Liens.  No Credit Party will, nor will it permit any of its Subsidiaries to, create, incur, assume or suffer to exist any Lien upon or with respect to any property or assets of any kind of such Credit Party or any such Subsidiary whether now owned or hereafter acquired, except (the following, the “Permitted Liens”):

 

(a)                           Liens pursuant to any Loan Document;

 

(b)                           Liens existing as of the Closing Date and listed on Schedule 8.03 and any renewals or extensions thereof; provided that (i) the property covered thereby is not changed, (ii) the amount of obligations secured or benefited thereby is not increased except as contemplated by Section 8.04(b), (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 8.04(b);

 

(c)                            Liens for taxes, assessments or other governmental charges, fines, fees or levies not yet due or, if past due, which are being contested in good faith and by appropriate proceedings diligently conducted and for which adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP;

 

(d)                           carrier’s, warehousemen’s, landlord’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, if overdue for a period of more than 90 days, that are (x) not involving amounts in excess of $500,000 or (y) being contested in good faith and by appropriate proceedings diligently conducted and for which adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP;

 

(e)                            pledges or deposits in the Ordinary Course of Business in connection with workers’ compensation, unemployment insurance and other social security legislation, other than any Lien imposed by ERISA, that would reasonably be expected to result in a Material Adverse Effect;

 

(f)                             deposits to secure the performance of bids, trade contracts and leases (other than Capital Leases and other Indebtedness), statutory obligations, government obligations (including utility obligations), surety, customs and appeal bonds, performance bonds, licenses, indemnity, statutory, regulatory, contractual or warranty requirements (including rights of offset and setoff) and other obligations of a like nature, in each case incurred in the Ordinary Course of Business;

 

(g)                            (i) easements, covenants, conditions, restrictions, licenses, leases, rights-of-way, survey exceptions, zoning and building code restrictions, encroachments and other similar 

 

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encumbrances affecting Real Property which, in the aggregate, do not materially diminish the value of the property subject thereto or materially interfere with the ordinary conduct of the business of the applicable Person and (ii) any exceptions to title set forth in the Mortgage Policies that are acceptable to the Administrative Agent;

 

(h)                           Liens securing judgments and awards for the payment of money not constituting an Event of Default under Section 9.01(g);

 

(i)                               Liens securing Indebtedness permitted under Section 8.04(e); provided that (i) such Liens do not at any time encumber any property other than the property financed by such Indebtedness and the proceeds thereof, (ii) the Indebtedness secured thereby does not exceed the cost or fair market value, whichever is lower, of such property being acquired on the date of acquisition and (iii) such Liens attach to such property concurrently with or within 180 days after the acquisition thereof;

 

(j)                              Liens arising solely from precautionary UCC financing statement filings with respect to Operating Leases entered into by a Credit Party or any Subsidiary in the Ordinary Course of Business;

 

(k)                           Liens of a collection bank on items in the course of collection arising under Section 4-210 of the UCC as in effect in the State of New York or any similar section under any applicable UCC or any similar requirement of law of any foreign jurisdiction and statutory or common law bankers liens and rights of set-off with respect to customary depositary arrangements entered into by a Credit Party or any Subsidiary in the Ordinary Course of Business;

 

(l)                               Liens securing Indebtedness permitted under Section 8.04(h) and any Permitted Refinancing Indebtedness in respect thereof; provided that (i) such Liens and are not created in contemplation of or in connection with such Person becoming a Subsidiary or such property or assets being so acquired, (ii) such Liens will not apply to any other property of a Credit Party or any Subsidiary, and (iii) such Liens will secure only those obligations secured by such Liens on the date such Person becomes a Subsidiary or such property or asset is so acquired;

 

(m)                       Liens on the amounts payable to any Person under an insurance policy securing Indebtedness of such Person incurred to finance the premium for such insurance policy and permitted under Section 8.04(i);

 

(n)                           Liens securing reimbursement obligations with respect to commercial letters of credit which encumber documents and other assets relating to such letters of credit and products and proceeds thereof;

 

(o)                           bankers’ Liens, rights of setoff and other similar Liens existing solely with respect to cash and Cash Equivalents on deposit, in each case granted in the Ordinary Course of Business in favor of the bank or banks with which such accounts are maintained, securing amounts owing to such bank with respect to cash management and operating account arrangements, including those involving pooled accounts and netting arrangements; provided that in no case shall any such Liens secure (either directly or indirectly) the repayment of any Indebtedness;

 

(p)                           Liens solely on any cash earnest money deposits made in connection with any letter of intent or purchase agreement permitted hereunder;

 

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(q)                           Liens on margin deposits securing exchange traded or other commodities Hedge Agreements entered into in the Ordinary Course of Business for bona fide hedging purposes and not for purposes of speculation; and

 

(r)                              other Liens securing Indebtedness or other obligations otherwise permitted hereunder; provided that the aggregate principal amount of all such Indebtedness and other liabilities shall not exceed $1,000,000 at any time outstanding.

 

Section 8.04                                       Indebtedness.  No Credit Party will, nor will it permit any Subsidiary to, contract, create, incur, assume or suffer to exist any Indebtedness, except:

 

(a)                           Indebtedness under the Loan Documents;

 

(b)                           Indebtedness outstanding on the Closing Date and listed on Schedule 8.04 and any renewals, refinancings and extensions thereof; provided that (i) that the amount of such Indebtedness is not increased at the time of such refinancing, refunding, renewal or extension except by an amount equal to a reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such refinancing and by an amount equal to any existing commitments unutilized thereunder and the direct or any contingent obligor with respect thereto is not changed, as a result of or in connection with such refinancing, refunding, renewal or extension, and (ii) the terms relating to principal amount, amortization, maturity, collateral (if any) and subordination (if any), and other material terms taken as a whole, of any such refinancing, refunding, renewing or extending Indebtedness, and of any agreement entered into and of any instrument issued in connection therewith, are no less favorable in any material respect to the Credit Parties or the Lenders than the terms of any agreement or instrument governing the Indebtedness being refinanced, refunded, renewed or extended and the interest rate applicable to any such refinancing, refunding, renewing or extending Indebtedness does not exceed the then applicable market interest rate;

 

(c)                            Indebtedness of the Borrower owed to another Credit Party or of a Subsidiary owed to the Borrower or another Credit Party, which Indebtedness shall (i) in the case of Indebtedness owed to a Credit Party, constitute Collateral under the Security Agreement, (ii) be on terms (including subordination terms) reasonably acceptable to the Administrative Agent and (iii) be otherwise permitted under the provisions of Section 8.05; and, provided  further that, with respect to any such Indebtedness in an original principal amount equal to or greater than $1,000,000, the applicable Credit Parties shall cause such Indebtedness to be evidenced by a promissory note and cause such promissory note to be delivered to the Administrative Agent in accordance with the provisions of the Security Agreement;

 

(d)                           obligations (contingent or otherwise) of the Borrower or any Subsidiary existing or arising under any Hedge Agreement; provided that (i) such obligations are (or were) entered into by such Person in the Ordinary Course of Business for the purpose of mitigating risks associated with liabilities, commitments, investments, assets, or property held or reasonably anticipated by such Person, or changes in the value of securities issued by such Person, and not for purposes of speculation or taking a “market view” and (ii) such Hedge Agreement does not contain any provision exonerating the non-defaulting party from its obligation to make payments on outstanding transactions to the defaulting party;

 

(e)                            Indebtedness in respect of Capital Leases and purchase money Indebtedness incurred to finance the acquisition of fixed or capital assets (and Permitted Refinancing Indebtedness with respect thereto); provided that (i) the aggregate amount of all such 

 

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Indebtedness permitted under this Section 8.04(e) shall not exceed $30,000,000 at any one time outstanding and (ii) such Indebtedness when incurred shall not exceed the purchase price of the asset(s) financed;

 

(f)                             (i) Guarantees by any Credit Party in respect of Indebtedness of any other Credit Party otherwise permitted hereunder and (ii) Guarantees by any Credit Party of the Indebtedness of a Subsidiary that is not a Credit Party so long as the related Investment by the applicable Credit Party in such Subsidiary is otherwise permitted under Section 8.05 (other than clause (e) thereof);

 

(g)                            Permitted Unsecured Debt (and unsecured Guarantees thereof by any Guarantor); provided that (i) no Default or Event of Default has occurred or is continuing after giving effect to the incurrence of such Permitted Unsecured Debt and (ii) after giving effect to the incurrence of such Permitted Unsecured Debt on a Pro Forma Basis (A) the Borrower is in compliance with Section 8.07 and (B) the Consolidated Total Net Leverage Ratio would be less than or equal to 4.25 to 1.00 (in each case, as demonstrated in a Pro Forma Compliance Certificate delivered by the Borrower to the Administrative Agent prior to the incurrence of such Indebtedness);

 

(h)                           Indebtedness (i) of a Person existing at the time such Person becomes a Subsidiary following the Closing Date and (ii) acquired or assumed by a Credit Party or any Subsidiary in connection with any acquisition or asset purchase permitted hereunder; provided that (i) such Indebtedness is in existence at the time such Person becomes a Subsidiary or such acquisition or asset purchase shall occur and is not created in connection with or in contemplation of such Person becoming a Subsidiary or such acquisition or asset purchase, and (ii) the aggregate principal amount of all such Indebtedness shall not exceed $20,000,000 at any time outstanding;

 

(i)                               Indebtedness representing installment insurance premiums of the Borrower or any of its Subsidiaries owing to insurance companies in the Ordinary Course of Business or in respect of bid, performance or surety, statutory, appeal or similar bonds and completion guarantees, worker’s compensation claims, self-insurance obligations, governmental contracts and leases provided in the Ordinary Course of Business;

 

(j)                              Permitted Foreign Subsidiary Loans, Guaranties and Investments;

 

(k)                           other Indebtedness (that does not constitute Non-Credit Party Exposure) of Foreign Subsidiaries, in addition to the Indebtedness listed above, in an aggregate amount for all Foreign Subsidiaries not to exceed $3,000,000 at any time outstanding;

 

(l)                               Indebtedness arising from agreements of any Credit Party providing for indemnification, adjustment of purchase price or acquisition price or similar obligations, in each case, incurred or assumed in connection with any Permitted Acquisition or disposition of any business, assets or a Subsidiary not prohibited by this Agreement;

 

(m)                       Indebtedness consisting of promissory notes issued by any of the Credit Parties to finance the repurchase or redemption of Equity Interests for which Restricted Payments are permitted to be made pursuant to Section 8.06;

 

(n)                           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;

 

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(o)                           guarantees arising under customary indemnity agreements to title insurers to cause such title insurers to issue to Administrative Agent title insurance policies;

 

(p)                           Indebtedness arising in connection with endorsement of instruments for deposit in the Ordinary Course of Business;

 

(q)                           Obligations pursuant to any Cash Management Agreement incurred in the Ordinary Course of Business;

 

(r)                              Indebtedness relating to judgments or awards not constituting an Event of Default under Section 9.01(g); and

 

(s)                             other Indebtedness of the Borrower or any Subsidiary in an aggregate principal amount not to exceed $10,000,000 at any time outstanding.

 

Section 8.05                                       Investments.  No Credit Party will, nor will it permit any of its Subsidiaries to, directly or indirectly, make or commit to make any Investment, except:

 

(a)                           Investments held in the form of Cash Equivalents;

 

(b)                           Investments consisting of loans and other advances to officers, directors and employees of a Credit Party or any Subsidiary in an aggregate amount not to exceed $750,000 at any time outstanding;

 

(c)                            (i) Investments by the Credit Parties in their respective Subsidiaries outstanding on the Closing Date, (ii) additional Investments by a Credit Party or any Subsidiary in any Credit Party, (iii) additional Investments by a Credit Party or any Subsidiary in any Domestic Subsidiary that is not a Credit Party (including investments made in respect of joint ventures or other similar agreements) in an aggregate amount for all such Investments made in reliance on this clause (c)(iii) not to exceed $5,000,000 (excluding the proceeds of Excluded Issuances) at any time outstanding; provided that if any Investment described in this clause (iii) is evidenced by a note, such note shall be pledged to the Administrative Agent, for the benefit of the Secured Creditors and (iv) Investments by a Foreign Subsidiary in any other Foreign Subsidiary;

 

(d)                           (i) Investments consisting of extensions of credit in the nature of accounts receivable, notes receivable or similar Investments arising from the grant of trade credit in the Ordinary Course of Business, and (ii) 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)                            Guarantees permitted by Section 8.04(f);

 

(f)                             Investments existing as of the Closing Date (in addition to those referred to in Section 8.05(c)(i)) and set forth on Schedule 8.05;

 

(g)                            to the extent constituting Investments, Hedge Agreements permitted under Section 8.04(d);

 

(h)                           any reinvestment of the proceeds of any Insurance and Condemnation Event and/or Asset Sale as contemplated by Section 2.13(b)(v) or Section 2.13(b)(viii); or

 

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(i)                               Investments consisting of an Acquisition by a the Borrower or any Subsidiary; provided that

 

(i)                                     Same or Similar Line of Business.  The property acquired (or the property of the Person acquired) in such Acquisition is used or useful in the Permitted Business;

 

(ii)                                  Guaranty and Collateral Requirements. (A) The Administrative Agent shall have received all items, including in respect of the Equity Interests or property acquired in such Acquisition and/or in respect of any Subsidiary that is formed to effect such Acquisition, required to be delivered by the terms of Section 7.08 and/or Section 7.09 and (B) if the Acquisition is to be effected by a merger of a Credit Party with and into another Person, the surviving entity of such merger shall be a Credit Party;

 

(iii)                               Non-Hostile.  In the case of an Acquisition of the Equity Interests of another Person, the board of directors (or other comparable governing body) of such other Person shall have duly approved such Acquisition; provided that such approval shall not be required in connection with a court-approved sale;

 

(iv)                              Pro Forma Compliance Certificate; Positive EBITDA.  (A) The Borrower shall have delivered to the Administrative Agent a Pro Forma Compliance Certificate demonstrating that, upon giving effect to such Acquisition on a Pro Forma Basis, the Consolidated Total Net Leverage Ratio would be no greater than 4.25 to 1.00 and (B) the target of such Acquisition shall have positive EBITDA for the twelve month period preceding the Acquisition (taking into account verifiable cost add backs which either meet the standards for pro forma adjustments under Regulation S-X or otherwise approved by the Administrative Agent in its reasonable discretion);

 

(v)                                 Continued Accuracy of Representations and Warranties.  The representations and warranties made by the Credit Parties in any Loan Document shall be true and correct in all material respects at and as if made as of the date of such Acquisition (after giving effect thereto and any Indebtedness assumed or incurred in connection therewith) except to the extent such representations and warranties expressly relate to an earlier date;

 

(vi)                              Partnership Interests.  If such transaction involves the purchase of an interest in a partnership between the Borrower or a Subsidiary as a general partner and entities unaffiliated with such Person as the other partners, such transaction shall be effected by having such equity interest acquired by a corporate or limited liability holding company directly or indirectly wholly-owned by the Borrower formed for the purpose of effecting such transaction;

 

(vii)                           Minimum Liquidity.  After giving pro forma effect to such Acquisition, the sum of (x) the Unused Total Revolving Commitment and (y) Consolidated Cash on Hand shall be at least $20,000,000;

 

(viii)                        No Event of Default.  No Event of Default shall have occurred and be continuing or would result from such Acquisition;

 

(ix)                              Delivery of Pre-Closing Items.  At least five (5) days before the scheduled closing date for such Acquisition, delivery by the Borrower of (A) a certificate 

 

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of an Authorized Officer of the Borrower (1) including a description of the proposed Acquisition and (2) attaching and certifying the definitive purchase agreement (or comparable document) (or, if no definitive purchase agreement has then been entered into, the then most recent draft thereof-with the final definitive purchase agreement to follow as soon as available prior to the applicable closing date) and related documentation for such Acquisition, (B) due diligence materials, financial statements and a quality of earnings report, if available, related to the Acquisition and (C)  in the case of the acquisition of owned Real Property with a fair market value in excess of $750,000, to the extent requested by the Administrative Agent, an environmental assessment with respect to such Real Property reasonably satisfactory to the Administrative Agent; provided that if the total consideration paid or such Acquisition is less than $25,000,000, the items described in this Section 8.05(i)(ix) may be delivered within ten (10) days after the consummation of such Acquisition;

 

(x)                                 Foreign Acquisitions.  The total consideration paid or payable (including all transaction costs, Indebtedness incurred or assumed in connection with such transaction and the maximum amount of all deferred payments, including earnouts, but excluding the proceeds of Excluded Issuances) for all Acquisitions of the Equity Interests of a Person not organized under the laws of a state of the United States or the District of Columbia or of property all or substantially all of which is not located within the United States shall not exceed $100,000,000 (excluding the proceeds of Excluded Issuances) for all such Acquisitions consummated after the Closing Date;

 

(j)                              any endorsement of a check or other medium of payment for deposit or collection through normal banking channels or similar transaction in the normal course of business;

 

(k)                           notes from directors, officers and employees in exchange for capital stock of the Borrower or its Subsidiaries purchased by such directors, officers or employees pursuant to a stock ownership or purchase plan or compensation plan;

 

(l)                               any performance guaranty provided to a Person by the Borrower or its Subsidiaries in connection with an Acquisition permitted hereunder, provided that such guaranty (A) is not secured by any assets of a Credit Party, and (B) after giving effect to such guaranty, no Default or Event of Default shall exist under this Agreement;

 

(m)                       any Investment received in connection with dispositions permitted pursuant to Section 8.02 hereof, so long as any such Investments that shall be securities are promptly pledged to Administrative Agent, for the benefit of the Secured Creditors;

 

(n)                           Investments resulting from pledges or deposits described in Section 8.03(e), (f), (h), (o), (p) and (q);

 

(o)                           any Permitted Investment or Permitted Foreign Subsidiary Loans, Guaranties and Investments, so long as no Default or Event of Default shall exist prior to or after giving effect to such loan, guaranty or investment; and

 

(p)                           additional Investments (other than an Acquisition) not otherwise permitted hereunder; provided that the aggregate amount of Investments made after the Closing Date in reliance on this clause (p) and clause (c)(iii) above shall not exceed $1,000,000 (excluding the proceeds of Excluded Issuances) in the aggregate at any time outstanding

 

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Section 8.06                                       Restricted Payments.  No Credit Party will, nor will it permit any of its Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment; provided that:

 

(a)                           (i) each Subsidiary of the Borrower may make Restricted Payments (directly or indirectly) to the Borrower, (ii) Domestic Subsidiaries may make Restricted Payments to other Domestic Subsidiaries and (iii) Foreign Subsidiaries may make Restricted Payments to other Foreign Subsidiaries and to Credit Parties;

 

(b)                           the Borrower and each Subsidiary may declare and make dividend payments or other distributions payable solely in the Equity Interests of such Person;

 

(c)                            so long as no Default or Event of Default shall have occurred and be continuing or would directly or indirectly be caused as a result thereof, the Borrower may make Restricted Payments to effect the redemption, purchase or other acquisition or retirement for value of its common stock (or stock equivalents with respect to its common stock) from any present or former employee, director or officer (or the assigns, estate, heirs or current or former spouses thereof) of the Borrower or any of the Borrower’s Subsidiaries upon the death, disability or termination of employment of such employee, director or officer; provided, however, that the aggregate amount of Restricted Payments made in reliance on this subsection (c) shall not exceed $1,000,000 (excluding the proceeds of Excluded Issuances) in any fiscal year;

 

(d)                           so long as no Default or Event of Default shall have occurred and be continuing or would directly or indirectly be caused as a result thereof, the Borrower may make Restricted Payments to repurchase Equity Interests pursuant to net share settlements for vesting of restricted stock awards and option exercises in an amount not to exceed $4,000,000 in any fiscal year; and

 

(e)                            subject to the following proviso, the Borrower may make additional Restricted Payments (including, without limitation, the payment of dividends and equity repurchases) as follows:

 

(i)                                     Restricted Payments made prior to the first anniversary of the Closing Date in an aggregate amount for all such Restricted Payments made in reliance on this clause (i) not to exceed $15,000,000;

 

(ii)                                  Restricted Payments in an aggregate amount not to exceed 50% of Consolidated Net Income on a cumulative basis for all quarterly periods from the Closing Date and ending prior to the date of such Restricted Payment less the aggregate amount of all Restricted Payments made in reliance on this Section 8.06(e)(ii) prior to the date of such Restricted Payment; and

 

(iii)                               Restricted Payments in an amount equal to 100% of the Net Cash Proceeds of Equity Issuances by, or capital contributions made to, the Borrower after the Closing Date and prior to the date of such Restricted Payment less the aggregate amount of all Restricted Payments made in reliance on this Section 8.06(e)(iii) prior to the date of such Restricted Payment; and

 

(iv)                              additional Restricted Payments in an aggregate amount not to exceed $25,000,000 for all such Restricted Payments made in reliance on this clause (iv) after the Closing Date;

 

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provided that, in the cases of each clauses (i), (ii), (iii) and (iv) of this Section 8.06(e), (A) no Default or Event of Default shall have occurred and be continuing both prior to and after giving effect to such Restricted Payment, (B) after giving effect to such Restricted Payment on a Pro Forma Basis, the Consolidated Total Net Leverage Ratio is less than or equal to 4.25 to 1.00 (as demonstrated in a Pro Forma Compliance Certificate delivered by the Borrower to the Administrative Agent (1) in the case of declared dividends, at the time such Restricted Payment is declared by the Board of Directors of the Borrower, (2) in the case of scheduled share repurchases, at the beginning of any fiscal quarter in which the Borrower is scheduled to make such share repurchase and (3) in all other cases, prior to making such Restricted Payment) and (C) after giving pro forma effect to the making of such Restricted Payment, the Unused Total Revolving Commitments shall be at least $25,000,000; provided, further, that the consummation of any Restricted Payment pursuant to this Section 8.06(e) shall be deemed to be a representation that all of the applicable requirements of this Section 8.06(e) have been satisfied after giving pro forma effect to any such Restricted Payment pursuant to this Section 8.06(e).

 

Section 8.07                                       Consolidated Total Net Leverage Ratio.

 

Commencing with the fiscal quarter ending December 31, 2013, the Credit Parties will not permit the Consolidated Total Net Leverage Ratio as of the last day of the most recently ended fiscal quarter to be greater than 4.50:1.00.

 

Section 8.08                                       Burdensome Agreements; Negative Pledges; Etc.  Each Credit Party will not, and will not permit any of its Subsidiaries to, enter into or permit to exist any Contractual Obligation that limits the ability of (a) a Subsidiary make Restricted Payments to the Borrower or any Guarantor, (b) transfer property to or invest in the Borrower or any Guarantor, (c) to transfer property to or otherwise make loans to or invest in the Borrower or any Guarantor, (d) pay any Indebtedness or other obligations owed to any Credit Party, (e) pledge its property pursuant to the Loan Documents or any renewals, extensions, refinancings, exchanges or refundings thereof or (f) any Credit Party to act as a Credit Party pursuant to the Loan Documents or any renewals, extensions, refinancings, exchanges or refundings thereof; provided, however, that clauses (a) through (f) of this Section 8.08 shall not prohibit or apply to any limitation, restriction, condition or prohibition arising under:

 

(i)                                     this Agreement and the other Loan Documents;

 

(ii)                                  Contractual Obligations that are (A) customary provisions restricting subletting or assignment of any lease governing a leasehold interest, (B) customary provisions restricting assignment of any agreement entered into in the Ordinary Course of Business, (C) restrictions on cash or other deposits imposed by customers under contracts entered into in the Ordinary Course of Business, (D) customary restrictions on leases, subleases, licenses, sublicenses, asset sale or similar agreements, including with respect to intellectual property and other similar agreements, otherwise permitted hereby so long as such restrictions relate to the assets subject thereto, (E) incurred or provided in favor of any holder of Indebtedness permitted to be incurred under Section 8.04(e) or (j) solely to the extent any such limitation relates to the property financed by and the proceeds thereof or the subject of such Indebtedness, or (F) customary provisions contained in an executed agreement relating to the sale of specific property permitted hereunder pending the consummation of such sale and (G) as in effect 

 

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with respect to any Person or its assets on the date such Person becomes a Subsidiary of the Borrower; or

 

(iii)                               Solely in the case of clauses (a), (b), (c) and (d) above, documentation in respect of Permitted Unsecured Debt; provided, that such documentation may not be more restrictive than the Loan Documents in such regards.

 

Each Credit Party will not, and will not permit its Subsidiaries to, enter into any Contractual Obligation that requires the grant of a Lien on any Collateral to secure an obligation of such Person arising under such Contractual Obligation except for Permitted Liens.

 

Section 8.09                                       Transactions with Affiliates.  Each Credit Party will not, and will not permit any of its Subsidiaries to, enter into or permit to exist any transaction or series of transactions with any Affiliate of such Person, or make any payment to any Person of any management or similar fees other than:

 

(a)                           transactions and series of transactions (i) with any Credit Party otherwise permitted hereunder, (ii) between Domestic Subsidiaries that are Non-Credit Parties otherwise permitted hereunder or (iii) between Foreign Subsidiaries and other Non-Credit Parties;

 

(b)                           except as otherwise specifically limited in this Agreement, other transactions which are entered into on terms and conditions substantially as favorable to such Person as would be obtainable by it in a comparable arms-length transaction with a Person other than an Affiliate;

 

(c)                            intercompany transactions and transactions with employees, managers and directors expressly permitted by Sections 8.02, 8.04, 8.05 or 8.06;

 

(d)                           the payment of customary and reasonable directors’ fees;

 

(e)                            the payment of reasonable compensation and expense reimbursement to officers and employees for service actually rendered to the Borrower or any Subsidiary;

 

(f)                             indemnities and reimbursement paid to directors;

 

(g)                            stock option and compensation plans of the Borrower or any Subsidiary, employment contracts with officers and management of the Borrower or any Subsidiary; and

 

(h)                           as set forth on Schedule 8.09.

 

Section 8.10                                       Anti-Terrorism Laws.  No Covered Entity shall be in violation of any Anti-Terrorism Laws or be named on any list of any government agency promulgated in connection therewith (including, without limitation, the U.S. Office of Foreign Asset Control list, Executive Order No. 13224) that prohibits or limits the conduct of business with or the receiving of funds, goods or services to or for the benefit of certain Persons specified therein or that prohibits or limits any Lender or LC Issuer from making any advance or extension of credit to the Borrower or from otherwise conducting business with the Borrower.

 

Section 8.11                                       Prepayment, Amendment of Junior Indebtedness, Etc.  No Credit Party will, nor will it permit any Subsidiary to:

 

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(a)                           (i) amend or modify any of the terms of any subordinated or other junior Indebtedness of such Person (A) if such amendment or modification would add or change any terms in a manner materially adverse to the Lenders, or (B) otherwise in violation of the relevant subordination provisions;

 

(b)                           make (i) any payment or prepayment (optional or otherwise) of, or any payments in redemption, defeasance or repurchase of, subordinated or other junior Indebtedness of such Person or (ii) any other payments in respect of subordinated or other junior Indebtedness of such Person, in each case, in violation of the relevant subordination provisions; or

 

(c)                            designate any Indebtedness (other than the Obligations or any Permitted Unsecured Debt that is senior Indebtedness) as “Designated Senior Indebtedness” (or any comparable term) for the purposes of the documentation governing any subordinated Indebtedness, or otherwise provide the holders of any Indebtedness (other than the Obligations) with the right to deliver a “Blockage Notice” or other rights customarily granted to the holders of “Designated Senior Indebtedness” (or any comparable term).

 

Section 8.12                                       [Reserved].

 

Section 8.13                                       Ownership of Subsidiaries.

 

The Credit Parties shall not (a) permit any Person (other than the Borrower or any wholly owned Subsidiary that is a Credit Party) to own any Equity Interests of any Credit Party, except (i) to qualify directors where required by applicable law or (ii) as a result of or in connection with an Investment permitted under Section 8.05 or a dissolution, merger, consolidation or disposition of a Subsidiary not prohibited by Section 8.02, (b) permit any Subsidiary to issue or have outstanding any shares of preferred Equity Interests or (c) permit, create, incur, assume or suffer to exist any Lien on any Equity Interests of any Subsidiary, except for Liens under the Loan Documents in favor of the Administrative Agent and non-consensual Permitted Liens.

 

Section 8.14                                       Organizational Documents; Fiscal Year.  No Credit Party will, nor will it permit any Subsidiary to (a) amend, modify or change its Organizational Documents in a manner materially adverse to the Lenders, (b) make any change in accounting policies or reporting practices, except as required by GAAP or as disclosed in its financial statements, or (c) change its fiscal year without the consent of the Administrative Agent (such consent not to be unreasonably withheld).

 

Section 8.15                                       [Reserved].

 

Section 8.16                                       Use of Proceeds.  No Credit Party nor any of its Subsidiaries will use the proceeds of any Credit Event, whether directly or indirectly, and whether immediately, incidentally or ultimately, to purchase or carry Margin Stock or to extend credit to others for the purpose of purchasing or carrying Margin Stock or to refund indebtedness originally incurred for such purpose.

 

ARTICLE IX

 

EVENTS OF DEFAULT

 

Section 9.01                                       Events of Default.  Any of the following specified events shall constitute an Event of Default (each an “Event of Default”):

 

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(a)                           Payments.  Any Credit Party shall (i) default in the payment when due (whether at maturity, on a date fixed for a scheduled repayment, on a date on which a required prepayment is to be made, upon acceleration or otherwise) of any principal of the Loans or any reimbursement obligation in respect of any Unreimbursed Drawing; or (ii) default, and such default shall continue for three or more Business Days, in the payment when due of any interest on the Loans, any Fees or any other Obligations; or

 

(b)                           Representations, etc.  Any representation or warranty made by the any Credit Party herein or in any other Loan Document or in any statement or certificate delivered pursuant hereto or thereto shall prove to have been untrue in any material respect on the date as of which made or deemed made; or

 

(c)                            Certain Covenants.  Any Credit Party shall default in the due performance or observance by it of any term, covenant or agreement (i) contained in Sections 7.01(e), 7.01(f), 7.01(g), 7.01(l), 7.01(m), 7.02(b), 7.03, 7.05 (with respect to the Borrower), 7.10 or Article VIII or (ii) Sections 7.01(a), 7.01(b), 7.01(c), 7.01(d), 7.01(h), 7.01(i), 7.01(j) or 7.01(k) and such default continues for five Business Days; or

 

(d)                           Other Covenants.  Any Credit Party shall default in the due performance or observance by it of any term, covenant or agreement contained in this Agreement or any other Loan Document (other than those referred to in Section 9.01(a), (b) or (c) above) and such default is not remedied within 30 days after the earlier of (i) any Responsible Officer of such Credit Party becomes aware of such occurrence thereof or (ii) the Borrower’s receipt of written notice of the occurrence thereof; or

 

(e)                            Cross Default Under Other Agreements.

 

(i)                                     Any Credit Party or any Subsidiary shall:

 

(A)                               fail to make any payment of principal when due with respect to any Material Indebtedness (other than the Obligations or Indebtedness under any Hedge Agreement), and such default shall continue after the applicable grace or cure periods, if any, specified in the agreement or instrument relating to such Indebtedness, or

 

(B)                               fail to observe or perform any agreement or condition relating to any such Material Indebtedness (and all grace or cure periods applicable to such observance, performance (including the giving of notice, if required) or condition shall have expired), the effect of which permits the holder or holders of such Material Indebtedness (other than the Obligations or Indebtedness under any Hedge Agreement) (or a trustee or agent on behalf of such holder or holders) to cause, any such Material Indebtedness (other than the Obligations or Indebtedness under any Hedge Agreement) to become due prior to its stated maturity; or

 

(ii)                                  there occurs under any Hedge Agreement an Early Termination Date (as defined in such Hedge Agreement) resulting from (A) any event of default under such Hedge Agreement as to which the Borrower or any Subsidiary is the Defaulting Party (as defined in such Hedge Agreement) or (B) any Termination Event (as so defined) under such Hedge Agreement as to which the Borrower or any Subsidiary is an Affected Party 

 

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(as so defined) and, in either event, the Hedge Termination Value owed by the Borrower or such Subsidiary as a result thereof is greater than $7,500,000; or

 

(f)                             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 under such Loan Document or satisfaction in full of all the Obligations (other than Contingent Obligations), ceases to be in full force and effect; or any Credit Party contests in any manner the validity or enforceability of any provision of any Loan Document; or any Credit Party denies that it has any or further liability or obligation under any Loan Document, or purports to revoke, terminate or rescind any Loan Document; or

 

(g)                            Judgments.  There is entered against any Credit Party:

 

(i)                                     a final judgment or order for the payment of money by a court of competent jurisdiction, that remains unpaid or unstayed and undischarged for a period (during which execution shall not be effectively stayed) of sixty (60) days after the date on which the right to appeal has expired, provided that such occurrence shall constitute an Event of Default only if the aggregate of all such judgments for all Credit Parties, shall exceed $7,500,000 (less (i) any amount that will be covered by the proceeds of insurance and is not subject to dispute by the insurance provider and (ii) any money judgment to the extent such amounts are provided by funds in a valid escrow account or similar arrangement); or

 

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

 

(h)                           Insolvency Event.  Any Insolvency Event shall occur with respect to a Credit Party or any of its Subsidiaries (other than an Immaterial Subsidiary); or

 

(i)                               ERISA.  (i) An ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan which has resulted or could reasonably be expected to result in liability of the Borrower under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of the $7,500,000, or (ii) the Borrower or any ERISA Affiliate fails to pay when due, after the expiration of any applicable grace period, any installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount in excess of the $7,500,000; or

 

(j)                              Environmental Claim.  There shall have been asserted against a Credit Party or any of its Subsidiaries an Environmental Claim that is reasonably likely to have a Material Adverse Effect (insofar as such amount is payable by a Credit Party or any of its Subsidiaries but after deducting any portion thereof that is reasonably expected to be paid by other creditworthy Persons jointly and severally liable therefor); or

 

(k)                           Change of Control.  There occurs a Change of Control; or

 

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(l)                               Subordinated Indebtedness.  At any time after the Borrower incurs Permitted Unsecured Debt that is subordinated Indebtedness, the applicable subordination provisions shall cease to be in full force in effect or is determined by a Governmental Authority or arbitral entity having jurisdiction to be void, unenforceable or otherwise not in full force and effect for any reason.

 

Section 9.02                                       Remedies.  Upon the occurrence of any Event of Default, and at any time thereafter, if any such Event of Default shall then be continuing, the Administrative Agent shall, upon the written request of the Required Lenders, by written notice to the Borrower, take any or all of the following actions, without prejudice to the rights of the Administrative Agent or any Lender to enforce its claims against any Credit Party in any manner permitted under applicable law:

 

(a)                                 declare the Commitments and any obligation of the LC Issuer to issue Letters of Credit to be terminated, whereupon such commitments and obligations shall forthwith terminate immediately without any other notice of any kind;

 

(b)                                 declare the principal of and any accrued interest in respect of all Loans, all Unreimbursed Drawings and all other Obligations owing hereunder and/or under any other Loan Document to be, whereupon the same shall become, forthwith due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower;

 

(c)                                  terminate any Letter of Credit that may be terminated in accordance with its terms; or

 

(d)                                 require that the Borrower Cash Collateralize any outstanding Letters of Credit in an amount equal to the Stated Amount thereof; and

 

(e)                                  exercise, on behalf of itself, the Lenders and the LC Issuer any other right or remedy available to it under any of the Loan Documents or applicable Laws;

 

provided, however, that upon the occurrence of an Event of Default of the type described in Section 9.01(h), the obligation of each Lender to make Loans and any obligation of the LC Issuer to issue Letters of Credit 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 LC Outstandings as aforesaid shall automatically become effective, in each case without further act of the Administrative Agent or any Lender.

 

Section 9.03                                       Application of Certain Payments and Proceeds.  After the exercise of remedies provided for in Section 9.02 (or after the Loans have automatically become immediately due and payable and the LC Outstandings have automatically been required to be Cash Collateralized as set forth in the proviso to Section 9.02), any amounts received on account of the Obligations shall, subject to the provisions of Sections 2.15 and 2.16, be applied by the Administrative Agent in the following order:

 

(i)                                     first, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (including fees, charges and disbursements of counsel to the Administrative Agent and amounts payable under Article III) payable to the Administrative Agent in its capacity as such;

 

(ii)                                  second, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal, interest and LC Fees) payable to the Lenders 

 

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and the LC Issuer (including fees, charges and disbursements of counsel to the respective Lenders and the LC 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;

 

(iii)                               third, to payment of that portion of the Obligations constituting accrued and unpaid LC Fees and interest on the Loans and Unreimbursed Drawings with respect to Letters of Credit and other Obligations arising under the Loan Documents, ratably among the Lenders and the LC Issuer in proportion to the respective amounts described in this clause third payable to them;

 

(iv)                              fourth, to payment of that portion of the Obligations constituting unpaid principal of the Loans, Unreimbursed Drawings and Obligations then owing under Secured Hedge Agreements and Secured Cash Management Agreements, ratably among the Lenders, the LC Issuer, the Hedge Banks and the Cash Management Banks in proportion to the respective amounts described in this clause fourth held by them;

 

(v)                                 fifth, to the Administrative Agent, for the account of the LC Issuer, to Cash Collateralize one hundred five percent (105%) of that portion of the of the LC Outstandings comprised of the aggregate undrawn amount of Letters of Credit (to the extent not otherwise Cash Collateralized by the Borrower pursuant to Sections 2.05 and 2.16);

 

(vi)                              sixth, to the payment of all other Obligations of the Credit Parties owing under or in respect of the Loan Documents that are then due and payable to the Administrative Agent, the LC Issuer and the Lenders, ratably based upon the respective aggregate amounts of all such Obligations owing to them on such date; and

 

(vii)                           finally, any remaining surplus after all of the Obligations have been paid in full, to the Borrower or as otherwise required by Law.

 

Subject to Sections 2.05 and 2.16, amounts used to Cash Collateralize the aggregate undrawn amount of Letters of Credit pursuant to clause fifth 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 of Credit have either been fully drawn or expired, such remaining amount shall be applied to the other Obligations, if any, in the order set forth above.

 

Excluded Swap Obligations with respect to any Guarantor shall not be paid with amounts received from such Guarantor or its assets, but appropriate adjustments shall be made with respect to payments from other Credit Parties to preserve the allocation to Obligations otherwise set forth above in this Section 9.03.

 

Notwithstanding the foregoing, 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 X hereof for itself and its Affiliates as if a “Lender” party hereto.

 

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ARTICLE X

 

THE ADMINISTRATIVE AGENT

 

Section 10.01                                Appointment.  Each Lender hereby irrevocably designates and appoints KeyBank to act as Administrative Agent as specified herein and in the other Loan Documents, and each such Lender hereby irrevocably authorizes the Administrative Agent, to take such action on its behalf under the provisions of this Agreement and the other Loan Documents and to exercise such powers and perform such duties as are expressly delegated to the Administrative Agent by the terms of this Agreement and the other Loan Documents, together with such other powers as are reasonably incidental thereto.  The Administrative Agent agrees to act as such upon the express conditions contained in this Article X.  Notwithstanding any provision to the contrary elsewhere in this Agreement, the Administrative Agent shall not have any duties or responsibilities, except those expressly set forth herein or in the other Loan Documents, nor any fiduciary relationship with any Lender or LC Issuer, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or otherwise exist against the Administrative Agent.  Except as otherwise specifically set forth herein, the provisions of this Article X are solely for the benefit of the Administrative Agent and the Lenders, and no Credit Party shall have any rights as a third-party beneficiary of any of the provisions hereof.  It is understood and agreed that the use of the term “agent” herein or in any other Loan Documents (or any other similar term) with reference to the Administrative 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 as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties.

 

Section 10.02                                Delegation of Duties.  The Administrative Agent may execute any of its duties under this Agreement or any other Loan Document by or through agents, sub-agents or attorneys-in-fact, and shall be entitled to advice of counsel concerning all matters pertaining to such duties.  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 X 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.  The Administrative Agent shall not be responsible for the negligence or misconduct of any agents, sub-agents or attorneys-in-fact selected by it with reasonable care except to the extent otherwise required by Section 10.03.

 

Section 10.03                                Exculpatory Provisions.  Neither the Administrative Agent nor any of its Related Parties shall be (a) liable for any action lawfully taken or omitted to be taken by it or such Person under or in connection with this Agreement or any other Loan Document (except for its or such Related Parties’ own gross negligence or willful misconduct) or (b) responsible in any manner to any of the Lenders for any recitals, statements, representations or warranties made by any Credit Parties or any of its Subsidiaries or any of their respective officers contained in this Agreement, any other Loan Document or in any certificate, report, statement or other document referred to or provided for in, or received by the Administrative Agent under or in connection with, this Agreement or any other Loan Document or for any failure of any Credit Party or any Subsidiary of such Credit Party or any of their respective officers to perform its obligations hereunder or thereunder.  The Administrative Agent shall not be under any obligation to any Lender 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 the Borrower or any Subsidiary of the Borrower.  The Administrative Agent shall not be responsible to any Lender for the effectiveness, genuineness, validity, enforceability, collectibility or sufficiency of this Agreement or any Loan Document or for any representations, warranties, recitals or statements made herein or therein or made in any written or oral statement or in any 

 

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financial or other statements, instruments, reports, certificates or any other documents in connection herewith or therewith furnished or made by the Administrative Agent to the Lenders or by or on behalf of the Borrower or any of its Subsidiaries to the Administrative Agent or any Lender or be required to ascertain or inquire as to the performance or observance of any of the terms, conditions, provisions, covenants or agreements contained herein or therein or as to the use of the proceeds of the Loans or of the existence or possible existence of any Default or Event of Default.

 

Section 10.04                                Reliance by Administrative Agent.  The Administrative Agent shall be entitled to rely, and shall be fully protected in relying, upon any note, writing, resolution, notice, consent, certificate, affidavit, letter, cablegram, telegram, e-mail or other electronic transmission, facsimile transmission, telex or teletype message, statement, order or other document or conversation believed by it, in good faith, 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, without limitation, counsel to the Borrower or any of its Subsidiaries), independent accountants and other experts selected by the Administrative Agent.  The Administrative Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Loan Document unless it shall first receive such advice or concurrence of the Required Lenders as it deems appropriate or it shall first be indemnified to its satisfaction by the Lenders against any and all liability and expense that may be incurred by it by reason of taking or continuing to take any such action.  The Administrative Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement and the other Loan Documents in accordance with a request of the Required Lenders or all of the Lenders, as applicable, as to any matter that, pursuant to Section 11.12, can only be effectuated with the consent of all Required Lenders, or all applicable Lenders, as the case may be), and such request and any action taken or failure to act pursuant thereto shall be binding upon all the Lenders.

 

Section 10.05                                Notice of Default.  The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default hereunder unless the Administrative Agent has received notice from a Lender or the Borrower referring to this Agreement, describing such Default or Event of Default and stating that such notice is a “notice of default.”  If the Administrative Agent receives such a notice, the Administrative Agent shall give prompt notice thereof to the Lenders.  The Administrative Agent shall take such action with respect to such Default or Event of Default as shall be reasonably directed by the Required Lenders; provided, however, that unless and until the Administrative Agent shall have received such directions, the Administrative Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable in the best interests of the Lenders.

 

Section 10.06                                Non-Reliance.  Each Lender and the LC Issuer expressly acknowledges that neither the Administrative Agent nor any of its Related Parties has made any representations or warranties to it and that no act by the Administrative Agent hereinafter taken, including, without limitation, any review of the affairs of the Credit Parties and their Subsidiaries, shall be deemed to constitute any representation or warranty by the Administrative Agent to any Lender or the LC Issuer.  Each Lender and the LC Issuer represents to the Administrative Agent that it has, independently and without reliance upon the Administrative Agent, or any other Lender, and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, assets, operations, property, financial and other conditions, prospects and creditworthiness of the Credit Parties and their Subsidiaries and made its own decision to make its Loans or issue Letters of Credit hereunder and enter into this Agreement.  Each Lender and the LC Issuer also represents that it will, independently and without reliance upon the Administrative Agent, or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement, and to make such investigation as it deems necessary to inform itself as to the business, assets, operations, property, financial and other 

 

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conditions, prospects and creditworthiness of the Credit Parties and their Subsidiaries.  The Administrative Agent shall not have any duty or responsibility to provide any Lender or the LC Issuer with any credit or other information concerning the business, operations, assets, property, financial and other conditions, prospects or creditworthiness of the Borrower or any of its Subsidiaries that may come into the possession of the Administrative Agent or any of its Related Parties.

 

Section 10.07                                No Reliance on Administrative Agent’s Customer Identification Program.  Each Lender and the LC Issuer acknowledges and agrees that neither such Lender, nor any of its Affiliates, participants or assignees or the LC Issuer, may rely on the Administrative Agent to carry out such Lender’s, Affiliate’s, participant’s, assignee’s or LC Issuer’s customer identification program, or other obligations required or imposed under or pursuant to the Patriot Act or the regulations thereunder, including the regulations contained in 31 CFR 103.121 (as hereafter amended or replaced, the “CIP Regulations”), or any other Anti-Terrorism Law, including any programs involving any of the following items relating to or in connection with the Borrower or any of its Subsidiaries, any of their respective Affiliates or agents, the Loan Documents or the transactions hereunder:  (a) any identity verification procedures, (b) any record keeping, (c) any comparisons with government lists, (d) any customer notices or (e) any other procedures required under the CIP Regulations or such other Laws.

 

Section 10.08                                Patriot Act.  Each Lender or assignee or participant of a Lender that is not organized under the Laws of the United States or a state thereof (and is not excepted from the certification requirement contained in Section 313 of the Patriot Act and the applicable regulations because it is both (a) an affiliate of a depository institution or foreign bank that maintains a physical presence in the United States or foreign country, and (b) subject to supervision by a banking authority regulating such affiliated depository institution or foreign bank) shall deliver to the Administrative Agent the certification, or, if applicable, recertification, certifying that such Lender is not a “shell” and certifying to other matters as required by Section 313 of the Patriot Act and the applicable regulations:  (i) within 10 days after the Closing Date, and (ii) at such other times as are required under the Patriot Act.

 

Section 10.09                                Indemnification.  The Lenders agree to indemnify the Administrative Agent and its Related Parties, ratably according to their pro rata share of the Aggregate Credit Facility Exposure (excluding Swing Loans), from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, reasonable expenses or disbursements of any kind whatsoever that may at any time (including, without limitation, at any time following the payment of the Obligations) be imposed on, incurred by or asserted against the Administrative Agent or such Related Parties in any way relating to or arising out of this Agreement or any other Loan Document, or any documents contemplated by or referred to herein or the transactions contemplated hereby or any action taken or omitted to be taken by the Administrative Agent or such Related Parties under or in connection with any of the foregoing, but only to the extent that any of the foregoing is not paid by the Borrower; provided, however, that no Lender shall be liable to the Administrative Agent or any of its Related Parties for the payment of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements to the extent resulting solely from the Administrative Agent’s or such Related Parties’ gross negligence or willful misconduct.  If any indemnity furnished to the Administrative Agent or any such Related Parties for any purpose shall, in the opinion of the Administrative Agent, be insufficient or become impaired, the Administrative Agent may call for additional indemnity and cease, or not commence, to do the acts indemnified against until such additional indemnity is furnished.  The agreements in this Section 10.09 shall survive the payment of all Obligations.

 

Section 10.10                                The Administrative Agent in Individual Capacity.  The Administrative Agent and its Affiliates may make loans to, accept deposits from and generally engage in any kind of business with the Borrower, its Subsidiaries and their Affiliates as though not acting as Administrative Agent hereunder and without any duty to account therefor to the Lenders.  With respect to the Loans made by it 

 

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and all Obligations owing to it, the Administrative Agent shall have the same rights and powers under this Agreement as any Lender and may exercise the same as though it were not the Administrative Agent, and the terms “Lender” and “Lenders” shall include the Administrative Agent in its individual capacity.

 

Section 10.11                                Successor Administrative Agent.

 

(a)                                The Administrative Agent may resign at any time upon not less than 30 days notice to the Lenders, the LC Issuer and the Borrower.  Upon receipt of any such notice of resignation, the Required Lenders shall have the right, with the consent of the Borrower (except to the extent an Event of Default is continuing), to appoint a successor.  If no such successor shall have been so appointed by the Required Lenders and 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 LC Issuer, appoint a successor Administrative Agent; provided, however, that if the Administrative Agent shall notify the Borrower and the Lenders that no such successor is willing to accept such appointment, then such resignation shall nonetheless become effective in accordance with such notice and (i) 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 LC Issuer 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 (ii) 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 LC Issuer directly, until such time as the Required Lenders appoint a successor Administrative Agent as provided for above in this paragraph. 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 paragraph).  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 X and Section 11.02 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.

 

(b)                                 So long as (i) no Default or Event of Default exists and is continuing and the Credit Parties are otherwise in good standing under this Agreement and (ii) the successor Administrative Agent or another Lender has agreed to assume the roles of LC Issuer or Swing Line Lender, any voluntary resignation by KeyBank as Administrative Agent pursuant to this Section 10.11 shall also constitute its resignation as LC Issuer and Swing Line Lender.  Any resignation by KeyBank as Administrative Agent pursuant to this Section 10.11 during this existence of a Default or Event of Default or when the Credit Parties are not otherwise in good standing under this Agreement shall also constitute its resignation as LC Issuer and Swing Line Lender (regardless of whether a successor Administrative Agent or another Lender has agreed to assume the roles of LC Issuer and/or Swing Line Lender).  If KeyBank resigns as an LC Issuer, it shall retain all the rights, powers, privileges and duties of the LC Issuer hereunder with respect to all Letters of Credit outstanding as of the effective date of its resignation as LC Issuer and all Obligations with respect to Letters of Credit with respect thereto, including the right to require the Lenders to make Base Rate Loans or fund risk participations in Unreimbursed Drawings pursuant to Section 2.05(f).  If KeyBank resigns as Swing Line Lender, it shall retain all the rights of the 

 

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Swing Line Lender provided for hereunder with respect to Swing 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 Loans pursuant to Section 2.04(b).  Upon the appointment by the Company of a successor LC Issuer or Swing Line Lender hereunder (which successor shall in all cases be a Lender other than a Defaulting Lender), (a) such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring LC Issuer or Swing Line Lender, as applicable, (b) the retiring LC Issuer and Swing Line Lender shall be discharged from all of their respective duties and obligations hereunder or under the other Loan Documents, and (c) the successor LC 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 KeyBank to effectively assume the obligations of KeyBank with respect to such Letters of Credit.

 

Section 10.12                                Other Agents.  Any Lender identified herein as a Co-Agent, Syndication Agent, Documentation Agent, Managing Agent, Manager, Lead Arranger, Arranger or any other corresponding title, other than “Administrative Agent,” shall have no right, power, obligation, liability, responsibility or duty under this Agreement or any other Loan Document except those applicable to all Lenders as such.  Each Lender acknowledges that it has not relied, and will not rely, on any Lender so identified in deciding to enter into this Agreement or in taking or not taking any action hereunder.

 

Section 10.13                                Collateral and Guaranty Matters.  Without limiting the provisions of Section 10.15, each Lender (including in its capacity as a potential Hedge Bank and a potential Cash Management Bank) and the LC Issuer irrevocably authorize the Administrative Agent, at its option and in its discretion, to:

 

(a)                           release any Lien on any Collateral held by the Administrative Agent under any Loan Document (i) upon termination of the Total Revolving Commitment and payment in full of all Obligations under the Loan Documents (other than Contingent Obligations) 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 LC Issuer shall have been made), (ii) that is transferred or to be transferred as part of or in connection with any Asset Sale or other disposition permitted hereunder or under any other Loan Document, (iii) owned by a Guarantor upon the release of the Guarantor from its obligations under the Loan Documents pursuant to clause (c) below, or (iv) if approved, authorized or ratified in writing in accordance with Section 11.12;

 

(b)                           subordinate 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 8.03; and

 

(c)                            release any Guarantor from its obligations under any Loan Document to which it is a party if such Person ceases to be a Subsidiary as a result of a transaction permitted hereunder.

 

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 Loan Documents pursuant to this Section 10.13.  In connection with any termination or release pursuant to this Section 10.13, the Administrative Agent will, at the Borrower’s expense, execute and deliver to the applicable Credit Party such documents as such Credit Party may reasonably request to evidence the release of such item of Collateral from the assignment and security interest granted under the Collateral Documents or to subordinate its interest in such item, or to release such Guarantor from its obligations under the Loan Documents, in each case in accordance with the terms of the Loan Documents and this Section 10.13.  

 

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The Administrative Agent shall not be responsible for or have a duty to ascertain or inquire into any representation or warranty regarding the existence, value or collectability of the Collateral, the existence, priority or perfection of the Administrative Agent’s Lien thereon, or any certificate prepared by any Credit Party in connection therewith, nor shall the Administrative Agent be responsible or liable to the Lenders for any failure to monitor or maintain any portion of the Collateral.

 

Section 10.14                                Secured Cash Management Banks and Secured Hedge Banks.  No Cash Management Bank or Hedge Bank that obtains the benefits of Section 9.03, the Guaranty or any Collateral by virtue of the provisions hereof or of 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 X 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, Obligations arising under Secured Cash Management Agreements and Secured Hedge Agreements unless the Administrative Agent has received written notice of such Obligations, together with such supporting documentation as the Administrative Agent or the Borrower (through the Administrative Agent) may request, from the applicable Cash Management Bank or Hedge Bank, as the case may be.

 

Section 10.15                                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 Credit Party, the Administrative Agent (irrespective of whether the principal of any Loan or Obligation with respect to any Letter of Credit 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 any 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, Obligations with respect to Letters of Credit 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, the LC Issuer and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders, the LC Issuer and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders, the LC Issuer and the Administrative Agent under Sections 2.11, 11.01 and 11.02) allowed in such judicial proceeding; and

 

(b)                           (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 the LC Issuer to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders and the LC Issuer, 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 2.11, 11.01 and 11.02.

 

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 the LC Issuer any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or the LC Issuer to authorize the Administrative Agent to vote in respect of the claim of any Lender or the LC Issuer in any 

 

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such proceeding.

 

ARTICLE XI

 

MISCELLANEOUS

 

Section 11.01                                Payment of Expenses etc.  The Credit Parties shall, jointly and severally, pay (or reimburse, as the case may be, for) all of the following: (i) the Administrative Agent, whether or not the transactions contemplated hereby are consummated, for all reasonable and documented out-of-pocket costs and expenses of the Administrative Agent (including the fees, charges and disbursements of external counsel) in connection with the negotiation, preparation, syndication, administration and execution and delivery of the Loan Documents and the documents and instruments referred to therein and the syndication of the Commitments; (ii) the Administrative Agent all reasonable and documented out-of-pocket costs and expenses of the Administrative Agent (including the fees, charges and disbursements of counsel) in connection with the administration of the Loan Documents and any amendment, modification, waiver or consent relating to any of the Loan Documents that is requested by any Credit Party; (iii) the Administrative Agent and Lenders all reasonable and documented out-of-pocket costs and expenses of the Administrative Agent and the Lenders in connection with the enforcement of any of the Loan Documents or the other documents and instruments referred to therein, including, without limitation,  the fees, charges and disbursements of any counsel to the Administrative Agent and any Lender); and (iv) subject to Section 3.01, any and all present and future stamp and other similar taxes with respect to the foregoing matters and save the Administrative Agent and each of the Lenders harmless from and against any and all liabilities with respect to or resulting from any delay or omission (other than to the extent attributable to any such indemnified Person) to pay such taxes.

 

Section 11.02                                Indemnification.  The Credit Parties shall, jointly and severally, indemnify the Administrative Agent, each Lender, and their respective Related Parties (collectively, the “Indemnitees”) from and hold each of them harmless against any and all losses (but excluding lost profits), out-of-pocket liabilities, actual claims, damages or reasonable and documented out-of-pocket expenses reasonably incurred by any of them as a result of, or arising out of, or in any way related to, or by reason of (i) any claim, investigation, litigation or other proceeding (regardless of whether any such Indemnitee is a party thereto or whether such claim, litigation or other proceeding is brought by a third party or by a Credit Party or any of its Affiliates) related to the entering into and/or performance of any Loan Document or any other agreement or instrument contemplated hereby or thereby, (ii) the use of the proceeds of any Loans or Letter of Credit hereunder or the consummation of any transactions contemplated in any Loan Document, (iii) the actual or alleged presence of Hazardous Materials in the air, surface water or groundwater or on the surface or subsurface of any Real Property owned, leased or operated by a Credit Party or any of its Subsidiaries, the Release, generation, storage, transportation, handling or disposal of Hazardous Materials at any location, whether or not owned or operated by the a Credit Party any of its Subsidiaries, if such Credit Party or any such Subsidiary has or is alleged to have any responsibility in respect thereof, (iv) the non-compliance of any Real Property owned, leased or operated by a Credit Party or any of its Subsidiaries with foreign, federal, state and local Laws, regulations and ordinances (including applicable permits thereunder) applicable thereto, or (v) any Environmental Claim asserted against a Credit Party or any of its Subsidiaries, in respect of any such Real Property, including, in the case of each of (i), (ii), (iii), (iv) and (v) above, without limitation, the reasonable and documented out-of-pocket fees, charges and disbursements of external counsel incurred in connection with any such investigation, litigation or other proceeding; provided that such indemnity shall not, as to any Indemnitee, be available to the extent such losses, liabilities, claims, damages or expenses (A) are determined by a court of competent jurisdiction by final and non-appealable judgment to have result from the bad faith, gross negligence or willful misconduct of such Indemnitee (or any employee or other Person that is controlled by such Indemnitee), (B) result from a claim brought by any Credit Party against an 

 

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Indemnitee for a material breach of such Indemnitee’s obligations hereunder or under any other Loan Document, if such Credit Party has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction or (C) disputes among Indemnitees (other than a proceeding that is brought by an Indemnitee against the Administrative Agent, the Lead Arranger, the LC Issuer and/or Swing Line Lender, in each case, in its capacity as such, in which case such indemnity shall apply with respect to the Administrative Agent, the Lead Arranger, the LC Issuer and/or the Swing Line Lender, as applicable, to the extent otherwise applicable as provided herein).  To the extent that the undertaking to indemnify, pay or hold harmless any Person set forth in the preceding sentence may be unenforceable because it is violative of any law or public policy, the Credit Parties shall make the maximum contribution to the payment and satisfaction of each of the indemnified liabilities that is permissible under applicable law.  This Section 11.02 shall not apply with respect to Taxes, other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

 

Section 11.03                                Right of Setoff.  In addition to any rights now or hereafter granted under applicable law or otherwise, and not by way of limitation of any such rights, upon the occurrence and during the continuance of an Event of Default, each Lender and the LC Issuer is hereby authorized at any time or from time to time, without presentment, demand, protest or other notice of any kind to the Borrower or to any other Person, any such notice being hereby expressly waived, to set off and to appropriate and apply any and all deposits (general or special, but excluding, in all cases, deposits in any Excluded Accounts) and any other Indebtedness at any time held or owing by such Lender or the LC Issuer (including, without limitation, by branches, agencies and Affiliates of such Lender or LC Issuer wherever located) to or for the credit or the account of the Borrower against and on account of the Obligations then due and owing and liabilities of the Borrower to such Lender or LC Issuer under this Agreement or under any of the other Loan Documents, including, without limitation, all claims of any nature or description arising out of or connected with this Agreement or any other Loan Document, irrespective of whether or not such Lender or LC Issuer shall have made any demand hereunder and although said Obligations, liabilities or claims, or any of them, shall be contingent or unmatured; 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 2.15 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.  Each Lender and LC Issuer agrees to promptly notify the Borrower after any such set off and application; provided, however, that the failure to give such notice shall not affect the validity of such set off and application.

 

Section 11.04                                Equalization.

 

(a)                                 Equalization.  If at any time any Lender receives any amount hereunder by voluntary payment, by realization upon security, by the exercise of the right of setoff or banker’s lien, by counterclaim or cross action or by the enforcement of any right under the Loan Documents) that is applicable to the payment of the principal of, or interest on, the Loans (other than Swing Loans), LC Participations, Swing Loan Participations or Fees (other than Fees that are intended to be paid solely to the Administrative Agent or the LC Issuer and amounts payable to a Lender under Article III), of a sum that with respect to the related sum or sums received by other Lenders is in a greater proportion than the total of such Obligation then owed and due to such Lender bears to the total of such Obligation then owed and due to all of the Lenders immediately prior to such receipt, then such Lender receiving such excess payment shall (i) notify the Administrative Agent of such fact and (ii) purchase (for cash at face value) without recourse or warranty from the other Lenders an interest in the Obligations owed to such other Lenders in such 

 

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amount, or make such other adjustments as shall be equitable, as shall result in a proportional participation by all of the Lenders in such amounts; provided that the provisions of this Section 11.04 shall not be construed to apply to (i) any payment made by or on behalf of the Borrower pursuant to and in accordance with the terms of this Agreement (including the application of funds arising from the existence of a Defaulting Lender), (ii) the application of Cash Collateral provided for in Section 2.16 and (iii) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations in LC Outstandings or Swing Loans to any assignee or participant.

 

(b)                                 Recovery of Amounts.  If any amount paid to any Lender pursuant to Section 11.04(a) above is recovered in whole or in part from such Lender, such original purchase shall be rescinded, and the purchase price restored ratably to the extent of the recovery.

 

(c)                                  Consent of Borrower.  The Borrower 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 provisions of this Section 11.04 may exercise against the Borrower rights of set-off and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.

 

Section 11.05                                Notices.

 

(a)                                 Generally.  Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in subpart (c) 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 o 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 or any other Credit Party, to the Borrower at 501 Kansas Avenue, Kansas City, KS 66105, Attention: Chief Financial Officer (Facsimile No.: 646-224-8708; Telephone No.: 913-621-9985; Email: bbraham@epiqsystems.com;

 

(ii)                                  if to the Administrative Agent, to it at the Notice Office; and

 

(iii)                               if to a Lender, to it at its address, telephone number, facsimile number or electronic mail address 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).

 

(b)                                 Receipt of Notices.  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 sent by facsimile shall be deemed to have been given when sent and receipt has been confirmed by telephone.  Notices and other communications delivered through electronic communications to the extent provided in subpart (c) below shall be effective as provided in said subpart (c).

 

(c)                                  Electronic Communications.  Notices and other communications to the Administrative Agent, the LC Issuer or any Lender hereunder and required to be delivered pursuant to Section 7.01 may be delivered or furnished by electronic communication (including e-mail and Internet or intranet web sites) pursuant to procedures approved by the Administrative

 

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Agent.  The Administrative Agent and the Borrower may, in their discretion, agree in a separate writing to accept notices and other communications to them hereunder by electronic communications pursuant to procedures approved by the Administrative Agent; 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 web site 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 web site address therefor.

 

(d)                                 Change of Address, Etc.  Each of the Borrower, the Administrative Agent, the LC Issuer and the Swing Line Lender may change its address, telecopier or telephone number for notices and other communications hereunder by notice to the other parties hereto.  Each other Lender may change its address, telecopier or telephone number for notices and other communications hereunder by notice to the Borrower, the Administrative Agent, the LC Issuer 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, telecopier number and electronic 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 a Credit Party or its securities for purposes of United States Federal or state securities laws.

 

(e)                                  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, the LC 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

 

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to any Credit Party, any Lender, the LC Issuer or any other Person for indirect, special, incidental, consequential or punitive damages (as opposed to direct or actual damages).

 

(f)                                   Reliance by Administrative Agent, LC Issuer and Lenders.  The Administrative Agent, the LC Issuer and the Lenders shall be entitled to rely and act upon any notices (including telephonic Notices of Borrowing) 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 Credit Parties shall, jointly and severally, indemnify the Administrative Agent, the LC Issuer, each Lender and the Related Parties of each of them from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of a Credit Party.  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.

 

Section 11.06                                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 Credit Party may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent (other than as permitted by Section 8.02 hereof) 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 11.06(b), (ii) by way of participation in accordance with the provisions of Section 11.06(c), or (iii) by way of pledge or assignment of a security interest subject to the restrictions of Section 11.06(e) (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 11.06 and, to the extent expressly contemplated hereby, the Affiliates and the partners, directors, officers, employees, agents, trustees and advisors of each of the Administrative Agent, the LC Issuer and the Lenders and their respective Affiliates) 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 assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitments, Loans, LC Participations and Swing Loan Participations 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 Credit Facility and the Loans at the time owing to it under such Credit 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 11.06, 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 Agreement with respect to such 

 

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assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment Agreement, as of the Trade Date, shall not be less than (1) $5,000,000 with respect to an assignment of Revolving Commitments and related Revolving Loans and (2) $1,000,000 with respect to an assignment of Term Loans, 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 concurrent 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 Loans or (B) prohibit any Lender from assigning all or a portion of its rights and obligations among separate Credit Facilities 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 11.06 and, in addition:

 

(A)                               the consent of the Borrower (such consent not to be unreasonably withheld, conditioned or delayed) shall be required unless (1) an Event of Default has occurred and is continuing at the time of such assignment, (2) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund or (3) such assignment is an assignment of Term Loans made by the Administrative Agent or Lead Arranger (or either of their respective Affiliates acting as a Lender hereunder) during the first thirty (30) days after the Closing Date in connection with the primary syndication of the Credit Facilities to a Person disclosed to the Borrower prior to the Closing Date; 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 five (5) Business Days after having received notice thereof; provided further that so long as no Event of Default under Section 9.01(a) or (h) has occurred and is continuing, no Competitor shall be an Eligible Assignee without the prior written consent of the Borrower (which may be withheld in the Borrower’s sole discretion (it being understood and agreed that in connection with any assignment by a Lender of its rights and obligations hereunder, the Administrative Agent has no duty to, and shall not be liable to the Borrower, any assignor or assignee Lender or any of their respective Affiliates for any failure to inquire or otherwise verify whether or not such assignment is being made to a Competitor, and the Administrative Agent shall have no duty to enforce any prohibition on such assignment);

 

(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 Revolving Commitment if such assignment is to a Person that is not a Lender with a Commitment in respect of the applicable Credit Facility, an Affiliate of such Lender or an Approved Fund with respect to such Lender or (2) any Term Loan to a Person that is not a Lender, an Affiliate of a Lender or an Approved Fund;

 

(C)                               the consent of the LC Issuer (such consent not to be unreasonably withheld or delayed) shall be required for any assignment that increases the obligation of 

 

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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 a Revolving Commitment.

 

(iv)                              Assignment Agreement.  The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment Agreement, together with a processing and recordation fee in the amount of $3,500; 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.  At the time of each assignment pursuant to this subsection (b), to a Person that is not already a Lender hereunder, the respective assignee Lender shall provide to the Borrower and the Administrative Agent the applicable IRS Forms (and any necessary additional documentation) described in Article III).

 

(v)                                 No Assignment to Certain Persons.  No such assignment shall be made to (A) the Borrower or any of the Borrower’s Affiliates or Subsidiaries, (B) a natural person, or (C) 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 (C).

 

(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 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.

 

At the time of any such assignment the Lender Register shall be modified to reflect the Commitments of such new Lender and of the existing Lenders (and no assignment shall be effective hereunder unless recorded in the Lender Register as provided herein).  With respect to any Lender, the transfer of any Commitment of such Lender and the rights to the principal of, and interest on, any Loan made pursuant to such Commitment shall not be effective until such transfer is recorded on the Lender Register maintained by the Administrative Agent with respect to ownership of such Commitment and Loans and prior to such recordation all amounts owing to the transferor with respect to such Commitment and Loans shall remain owing to the transferor.  The registration of assignment or transfer of all or part of any Commitments and Loans shall be recorded by the Administrative Agent on the Lender Register only upon the acceptance by the Administrative Agent of a properly executed and delivered Assignment Agreement pursuant to this subpart (b).  Subject to the acceptance and recording thereof by the Administrative Agent as 

 

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described herein, from and after the effective date specified in each Assignment Agreement, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment Agreement, 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 Agreement, be released from its obligations under this Agreement (and, in the case of an Assignment Agreement 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 Article III and Section 11.02 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 11.06(c).

 

(c)                                  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 Defaulting Lender or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lenders rights and/or obligations under this Agreement (including all or a portion of its Commitment, Loans, LC Participations and/or Swing Loan Participations) 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 LC Issuer 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 Section 11.12(a)(i) that directly affects such Participant.  Subject to subsection (d) of this Section 11.06, the Borrower agrees that each Participant shall be entitled to the benefits of Article III (subject to the requirements and limitations therein, including the requirements in Section 3.01(e) (it being understood that the documentation required under Section 3.01(e) shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to Section 11.06(b).  To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 11.03 as though it were a Lender; provided such Participant agrees to be subject to Section 11.04 as though it were a Lender.

 

(d)                                 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, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation.  Each Lender that sells a participation shall, acting solely for this purpose as an agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Loans or other obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant’s interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 

 

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5f.103-1(c) of the Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, 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.  For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

 

(e)                                  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; 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.

 

(f)                                   SEC Registration or Blue Sky Compliance.  Notwithstanding any other provisions of this Section 11.06, no transfer or assignment of the interests or obligations of any Lender hereunder or any grant of participation therein shall be permitted if such transfer, assignment or grant would require the Borrower to file a registration statement with the SEC or to qualify the Loans under the “Blue Sky” Laws of any State.

 

(g)                                  Representations of Lenders.  Each Lender initially party to this Agreement hereby represents, and each Person that becomes a Lender pursuant to an assignment permitted by this Section 11.06 will, upon its becoming party to this Agreement, represents that it is a commercial lender, other financial institution or other “accredited” investor (as defined in SEC Regulation D) that makes or acquires loans in the ordinary course of its business and that it will make or acquire Loans for its own account in the ordinary course of such business; provided, however, that subject to the preceding Sections 11.06(b) and (c), the disposition of any promissory notes or other evidences of or interests in Indebtedness held by such Lender shall at all times be within its exclusive control.

 

Section 11.07                                No Waiver; Remedies Cumulative; Enforcement.

 

(a)                                 No failure or delay on the part of the Administrative Agent or any Lender in exercising any right, power or privilege hereunder or under any other Loan Document and no course of dealing between any Credit Party and the Administrative Agent or any Lender shall operate as a waiver thereof; nor shall any single or partial exercise of any right, power or privilege hereunder or under any other Loan Document preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder or thereunder.  No notice to or demand on a Credit Party in any case shall entitle any Credit Party to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the Administrative Agent or the Lenders to any other or further action in any circumstances without notice or demand.  Without limiting the generality of the foregoing, the making of a Loan or any LC Issuance shall not be construed as a waiver of any Default or Event of Default, regardless of whether the Administrative Agent, any Lender or the LC Issuer may have had notice or knowledge of such Default or Event of Default at the time.  The rights and remedies herein expressly provided are cumulative and not exclusive of any rights or remedies that the Administrative Agent or any Lender would otherwise have.

 

(b)                                 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 Credit Parties or any of them shall be vested exclusively in, and all actions 

 

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and proceedings at law in connection with such enforcement shall be instituted and maintained exclusively by, the Administrative Agent in accordance with Section 9.02 for the benefit of all the Lenders and the LC Issuer; 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 LC Issuer or the Swing Line Lender from exercising the rights and remedies that inure to its benefit (solely in its capacity as LC 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 11.03 (subject to the terms of Section 11.04), 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 Credit 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 9.02 and (ii) in addition to the matters set forth in clauses (b), (c) and (d) of the preceding proviso and subject to Section 11.04, 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.

 

Section 11.08                                Governing Law; Submission to Jurisdiction; Venue; Waiver of Jury Trial.

 

(a)                                 THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).  TO THE FULLEST EXTENT PERMITTED BY LAW, EACH PARTY HERETO HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK GOVERNS THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS.  Any legal action or proceeding with respect to this Agreement or any other Loan Document may be brought in the Supreme Court of the State of New York sitting in New York City or in the United States District Court of the Southern District of New York, and, by execution and delivery of this Agreement, each party hereto hereby irrevocably accepts for itself and in respect of its property, generally and unconditionally, the jurisdiction of the aforesaid courts.  Each party hereto hereby further irrevocably consents to the service of process out of any of the aforementioned courts in any such action or proceeding by the mailing of copies thereof by registered or certified mail, postage prepaid, to such Person, as applicable, at its address for notices pursuant to Section 11.05, such service to become effective 30 days after such mailing or at such earlier time as may be provided under applicable law.  Nothing herein shall affect the right of the Administrative Agent or any Lender to serve process in any other manner permitted by law or to commence legal proceedings or otherwise proceed against the Borrower and/or any of the Credit Parties in any other jurisdiction.

 

(b)                                 Each party hereto hereby irrevocably waives any objection that it may now or hereafter have to the laying of venue of any of the aforesaid actions or proceedings arising out of or in connection with this Agreement or any other Loan Document brought in the courts referred to in Section 11.08(a) above and hereby further irrevocably waives and agrees not to plead or claim in any such court that any such action or proceeding brought in any such court has been brought in an inconvenient forum.

 

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(c)                                  EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS (INCLUDING, WITHOUT LIMITATION, ANY AMENDMENTS, WAIVERS OR OTHER MODIFICATIONS RELATING TO ANY OF THE FOREGOING), OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.  EACH PARTY HERETO HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS PARAGRAPH.

 

Section 11.09                                Counterparts.  This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same agreement.  A set of counterparts executed by all the parties hereto shall be lodged with the Borrower and the Administrative Agent.  Except as provided in Section 5.01, 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 telecopy or other electronic imaging means shall be effective as delivery of a manually executed counterpart of this Agreement.

 

Section 11.10                                Integration.  This Agreement, the other Loan Documents and any separate letter agreements with respect to fees payable to the Administrative Agent, for its own account and benefit and/or for the account, benefit of, and distribution to, the Lenders, constitute the entire contract among the parties relating to the subject matter hereof and thereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof or thereof.

 

Section 11.11                                Headings Descriptive.  The headings of the several Sections and other portions of this Agreement are inserted for convenience only and shall not in any way affect the meaning or construction of any provision of this Agreement.

 

Section 11.12                                Amendment or Waiver.

 

(a)                                 General.  Neither this Agreement nor any other Loan Document, nor any terms hereof or thereof, may be amended, changed, waived or otherwise modified unless such amendment, change, waiver or other modification is in writing and signed by the each Credit Party, the Administrative Agent, and the Required Lenders or by the Administrative Agent acting at the written direction of the Required Lenders; provided, however, that:

 

(i)                                     no change, waiver or other modification shall:

 

(A)                               extend or increase the Commitment of a Lender (or reinstate any Commitment of such Lender terminated pursuant to Section 9.02) directly affected thereby without the written consent of such Lender whose Commitment is being extended or increased (it being understood that a waiver of any condition precedent set forth in Section 5.02 or of any Default, mandatory prepayment shall not constitute an extension or increase of any Commitment of such Lender);

 

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(B)                               (1) reduce, extend, postpone or waive any scheduled payment of principal of any Loan or any maturity date provided for herein that is applicable to any Loan of any Lender directly affected thereby under any Loan Document (excluding mandatory prepayments and waiver or rescission of a previous acceleration) without the written consent of each Lender entitled to receive such payment, (2) extend or postpone the expiration date of any Letter of Credit as to which a Lender is an LC Participant beyond the latest expiration date for a Letter of Credit provided for herein without the written consent of such Lender or (3) extend or postpone any scheduled expiration or termination date provided for herein that is applicable to a Commitment of any Lender directly affected thereby without the written consent of such Lender;

 

(C)                               (1) reduce the principal amount of any Loan made by any Lender or (2) reduce the rate or extend the time of payment of, or excuse, postpone or waive the payment of, interest thereon, in each case without the written consent of such Lender (other than as a result of waiving the applicability of any post-default increase in interest rates);

 

(D)                               reduce the amount of any Unreimbursed Drawing as to which any Lender is an LC Participant, or reduce the rate or extend the time of payment of, or excuse the payment of, interest thereon without the written consent of such Lender (other than as a result of waiving the applicability of any post-default increase in interest rates);

 

(E)                                reduce the rate or extend the time of payment of, or excuse the payment of, any Fees to which any Lender is entitled hereunder without the written consent of each Lender entitled to receive such Fees;

 

(F)                                 except in connection with a transaction otherwise permitted under this Agreement or would result in a mandatory prepayment of the Obligations in full, release all of the Subsidiary Guarantors or Subsidiary Guarantors comprising substantially all of the credit support for the Obligations without the written consent of each Lender;

 

(G)                               except in connection with any (1) transaction permitted under this Agreement or (2) any other transaction that results in a mandatory prepayment of the Obligations in full and termination of all Commitments hereunder, release all or substantially all the Collateral securing the Obligations without the written consent of each Lender;

 

(H)                              (1) amend, modify or waive any provision of this Section 11.12(a) (other than in connection with the implementation of an Incremental Facility hereunder), (2) reduce the percentage specified in, or otherwise amend or modify, the definition of Required Lenders or Required Revolving Lenders, or (3) otherwise amend, modify or waive any other provision of any of the Loan Documents pursuant to which the consent or approval of all Lenders, or a number or specified percentage or other required grouping of Lenders or Lenders having Commitments, is by the terms of such provision explicitly required, in each case without the written consent of each Lender directly affected thereby;

 

(I)                                   except in connection with any transaction that results in a mandatory prepayment of the Obligations in full and termination of all Commitments hereunder, release the Borrower from any of its obligations hereunder or consent to the assignment 

 

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or transfer by the Borrower of any of its rights and obligations under this Agreement, in each case without the written consent of each Lender directly affected thereby; or

 

(ii)                                  (A) no provision of Section 9.03 may be amended, modified or waived so as to alter the manner of application of any payment in respect of the Obligations or proceeds of Collateral, in each case without the written consent of each Lender directly affected thereby and (B) no provision of Section 2.13(b) may be amended, modified or waived so as to alter the manner of application of proceeds of any mandatory prepayment required by Section 2.13(b), in each case without the consent of Lenders (other than Defaulting Lenders) holding in the aggregate at least a majority of the Term Loans;

 

(iii)                               (A) no provision of Section 2.05 or any other provision in this Agreement specifically relating to Letters of Credit may be amended without the consent of the LC Issuer, (B) no provision of Article IX may be amended without the consent of the Administrative Agent and (C) no provision of Section 2.04 or any other provision in this Agreement specifically relating to Swing Loans may be amended without the consent of the Swing Line Lender;

 

(iv)                              the Fee Letter may not be amended, or any rights or privileges thereunder waived, unless in writing and signed by the parties thereto; or

 

(v)                                 without the written consent of Required Revolving Lenders, no Default or Event of Default may be waived for the purposes of determining whether the conditions set forth in Section 5.02 shall have been satisfied in respect of any proposed Credit Event.

 

Any waiver or consent with respect to this Agreement given or made in accordance with this Section 11.12 shall be effective only in the specific instance and for the specific purpose for which it was given or made.

 

(b)                                 Additional Commitments.

 

(i)                                     Notwithstanding anything in this Section 11.12 to the contrary, at any time after the Closing Date and from time to time prior to the Revolving Facility Maturity Date this Agreement may be amended (or amended and restated) to give effect to (a) an increase to the Revolving Commitments on the same terms and conditions as the existing Revolving Commitments, (b) additional commitments to make term loans with terms identical to the Term Loan and/or (c) additional commitments to make term loans to be structured as a separate term loan tranche with terms different from the Term Loan (each such increase to the Revolving Commitments and/or establishment of a new tranche of term loans being referred to herein as an “Incremental Facility,” and all such increases being referred to collectively herein as the “Incremental Facilities”) to be made to the Borrower by an agreement in writing entered into by the Borrower, the Administrative Agent and each Person (including any then existing Lender) that shall agree to provide any portion of such Incremental Facility (but without the consent of any other Lender), and each such Person that shall not already be a Lender shall, at the time such agreement becomes effective, become a Lender with the same effect as if it had already been a Lender under this Agreement with the Revolving Commitment and/or term loans set forth in such Agreement; provided, however, that: (i) the aggregate principal amount of all such Incremental Facilities structured as increases to the Revolving Commitments effected after the Closing Date pursuant to this Section 11.12(b) plus the amount of the Total Revolving Commitment as of the Closing Date shall not exceed $200,000,000, (ii) the aggregate principal amount of all such Incremental Facilities effected after the Closing Date pursuant to this Section 11.12(b) shall not exceed $200,000,000, (iii) each such increase effected pursuant to this Section 11.12(b) shall be 

 

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in a minimum amount of $10,000,000 (and integral multiples of $1,000,000 in excess thereof), (iv) all representations and warranties in Article VI hereof must be true and correct in all material respects upon giving effect to any such Incremental Facility, and no Default or Event of Default shall have occurred and be continuing at the time of such request and on the date of any such increase (assuming a Borrowing in respect of any applicable increases to the Revolving Commitments), (v) no Commitment of any Lender shall be increased without the consent of such Lender, (vi) all fees and expenses owing in respect of such increase to the Administrative Agent and the Lenders shall have been paid, (vii) the Borrower shall have delivered to the Administrative Agent a Pro Forma Compliance Certificate demonstrating that, upon giving effect on a Pro Forma Basis to the incurrence of any such Incremental Facility (assuming a Borrowing of the entire Incremental Facility in respect of any applicable increases to the Revolving Commitments) and the concurrent retirement of any Indebtedness of the Borrower or any Subsidiary, (A) the Credit Parties would be in compliance with the financial covenant set forth in Section 8.07 and (B) the Consolidated Total Net Leverage Ratio shall be equal to or less than 4.25 to 1.00, in each case as of the last day of the most recently ended fiscal quarter of the Borrower for which the Administrative Agent has received the Required Financial Information, (viii) with respect to any Incremental Facility structured as a separate term loan tranche, the “all-in yield” (including interest rate margins, any interest rate floors, original issue discount and upfront fees (based on the lesser of a four-year life to maturity and the remaining life to maturity for the purposes of determining any increases to the applicable interest rate margin), but excluding any structuring, arrangement, underwriting or similar fees paid or payable to the applicable lead arranger for such facility not shared with the applicable lenders) applicable to such Incremental Facility may not exceed the total “all-in yield” (determined on the same basis) for any then-existing series of Term Loans by more than 0.50% without a corresponding increase in the all-in yield applicable to such existing Term Loans so that such all-in yield applicable to such existing Term Loans is 0.50% less than that applicable to such Incremental Facility (it being understood that the Applicable Margin for such existing Term Loans may be increased and/or additional fees may be paid to the Lenders holding such existing Term Loans to the extent necessary to satisfy such requirement), (ix) the final maturity date of any additional Incremental Facility structured as a separate term loan tranche shall be no earlier than the latest Maturity Date hereunder or, if later, the maturity date of any Incremental Facility then in effect, (x) the weighted average life to maturity of any such Incremental Facility structured as a separate term loan tranche shall not be shorter that the remaining average weighted life to maturity of the Term Loan (without giving effect to any prepayments thereof), (xi) subject to the limitations set forth above, the interest rate margin, weighted average life to maturity and final maturity applicable to any such Incremental Facility structured as a separate term loan tranche shall be determined at the time such Incremental Facility is made available by the Borrower and the Lenders providing such Incremental Facility and (xii) subject to the limitations set forth above, all other terms applicable to any Incremental Facility structured as a separate term loan tranche, if not consistent with the existing Term Loans, must be more favorable to the Borrower or reasonably acceptable to the Administrative Agent.  The Loans and Commitments established pursuant to this Section 11.12(b) shall constitute Loans and Commitments under, and shall be entitled to all the benefits afforded by, this Agreement and the other Loan Documents, and shall, without limiting the foregoing, benefit equally and ratably from the Guarantees and security interests created by the Collateral Documents.  The Borrower may offer, in consultation with the Administrative Agent, the increase to (i) existing Lenders (but no Lender will have an obligation to increase its Commitment hereunder) and (ii) if necessary because the requested commitments for such Incremental Facility cannot be obtained from existing Lenders, any third party financial institutions that otherwise would qualify as Eligible Assignees (in each case which must be reasonably acceptable to the Administrative Agent in the case of any such Person providing additional Revolving Commitments hereunder).  Upon the establishment pursuant to this Section

 

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11.12(b) of an Incremental Facility in the form of an increase to the Revolving Commitments, each Revolving Lender immediately prior to the establishment of such Incremental Facility will automatically and without further act be deemed to have assigned to each new Revolving Lender providing a portion of such Incremental Facility (each, a “Revolving Facility Incremental Lender”), and each such Revolving Facility Incremental Lender will automatically and without further act be deemed to have assumed, a portion of such Revolving Lender’s participations hereunder in outstanding Letters of Credit and Swing Loans such that, after giving effect to such Incremental Facility and each such deemed assignment and assumption of participations, the percentage of the aggregate outstanding (A) participations hereunder in Letters of Credit and (B) participations hereunder in Swing Loans held by each Revolving Lender (including each such Revolving Facility Incremental Lender) will equal such Revolving Lender’s Applicable Percentage of the Revolving Commitments.

 

(ii)           Any such amendment (or amendment and restatement) effected pursuant to this Section 11.12(b) shall amend the provisions of this Agreement and the other Loan Documents to set forth the terms of each Incremental Facility established thereby (subject to any applicable restrictions set forth in clause (i) immediately above) and to effect such other changes as the Borrower and the Administrative Agent shall deem necessary or advisable in connection with the establishment of any such Incremental Facility; provided, however, that no such agreement shall:  (A) effect any change described in Section 11.12(a) without the consent of each Person required to consent to such change under such clause (it being agreed, however, that any increase in the aggregate Revolving Commitments or establishment of any Incremental Facility consisting of a separate tranche of term loans will not, of itself, be deemed to effect any of the changes described in clauses (i) or (ii) of Section 11.12(a), and that modifications to the definitions of “Required Lenders” or “Required Revolving Lenders” or other provisions relating to voting provisions to provide the Persons providing the applicable Incremental Facility with the benefit of such provisions will not, by themselves, be deemed to effect any of the changes described in clauses (i) or (ii) of Section 11.12(a) or (B) amend Articles VII, VIII or IX in any manner that by its terms benefits one or more tranches, but not all tranches, of Loans or Commitments without the prior written consent of Lenders holding a majority in interest of the Revolving Commitments then existing, if the Lenders holding Revolving Commitments are not so benefited, and of Lenders holding a majority in interest of each separate tranche of term loans then existing and not so benefited, (it being agreed that no provision requiring the Borrower to prepay term loans of one or more Incremental Facilities with the proceeds of Asset Sales, Insurance and Condemnation Events, issuances of Indebtedness, issuances of Equity Interests, or Excess Cash Flow will be deemed to violate this clause).

 

(c)           Defaulting Lenders.  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 that by its terms requires the consent of all Lenders or each affected Lender may be effected with the consent of the applicable Lenders other than Defaulting Lenders), except that (i) the Commitment of such Lender may not be increased or extended without the consent of such Lender and (ii) 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.

 

(d)           Voting Rights of Lenders During Bankruptcy Proceedings.  Notwithstanding the fact that the consent of all the Lenders is required in certain circumstances as set forth above, (x) each Lender is entitled to vote as such Lender sees fit on any bankruptcy reorganization plan that affects the Loans, and each Lender acknowledges that the provisions of Section 1126(c) of the 

 

125

 

Bankruptcy Code supersede the unanimous consent provisions set forth herein and (y) the Required Lenders shall determine whether or not to allow a Credit Party to use cash collateral in the context of a bankruptcy or insolvency proceeding and such determination shall be binding on all of the Lenders.

 

(e)           Certain Other Transactions.  For the avoidance of doubt and notwithstanding any provision to the contrary contained in this Section 11.12:

 

(i)                                     Without limiting the provisions of Section 11.12(b) of this Agreement, and notwithstanding anything otherwise to the contrary herein, this Agreement may be amended (or amended and restated) with the written consent of the Credit Parties and the Required Lenders (A) to increase the Aggregate Commitments of the Lenders, (B) to add one or more additional borrowing tranches to this Agreement and to provide for the ratable sharing of the benefits of this Agreement and the other Loan Documents with the other then outstanding Obligations in respect of the extensions of credit from time to time outstanding under such additional borrowing tranche(s) and the accrued interest and fees in respect thereof and (C) to include appropriately the lenders under such additional borrowing tranches in any determination of Required Lenders and/or the determination of the requisite Lenders under any other provision of this Agreement corresponding to the consent rights of the other Lenders thereunder (including, without limitation, clauses (ii) and (v) of Section 11.12(a)); and

 

(ii)                                  any provision of this Agreement may be amended by an agreement in writing entered into by the Credit Parties, the Required Lenders and the Administrative Agent (and, if their rights or obligations are affected thereby, the LC Issuers and the Swing Line Lender) if (I) by the terms of such agreement the Commitment of each Lender not consenting to the amendment provided for therein shall terminate upon the effectiveness of such amendment and (II) at the time such amendment becomes effective, each Lender not consenting thereto receives payment in full of the principal of and interest accrued on each Loan made by it and all other amounts owing to it or accrued for its account under this Agreement (other than Contingent Obligations);

 

(iii)                               any waiver, amendment or modification of this Agreement that by its terms affects the rights or duties under this Agreement of the Lenders under one or more tranches but not under any other tranche may be effected by an agreement or agreements in writing entered into by the Borrower and the requisite percentage in interest of the affected tranche or tranches of Lenders that would be required to consent thereto under this Section 11.12 if such tranche or tranches of Lenders were the only tranche or tranches of Lenders hereunder at the time;

 

(iv)                              any Lender may agree to extend the Maturity Date applicable to its Loans and/or Commitments hereunder upon the request of the Borrower and without the consent of any other Lender; and

 

(v)                                 the Administrative Agent and the Credit Parties shall be permitted to amend any provision of any Loan Document (and such amendment shall become effective without any further action or consent of any other party to any Loan Document) if the Administrative Agent and the Borrower shall have jointly identified an 

 

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obvious error or any error or omission of a technical or immaterial nature in any such provision.

 

Section 11.13           Survival of Indemnities.  All indemnities set forth herein including, without limitation, in Article III (subject to the limitations set forth Section 3.04(d)), Section 10.09 or Section 11.02 shall survive the execution and delivery of this Agreement and the making and repayment of the Obligations.

 

Section 11.14           Domicile of Loans.  Each Lender may transfer and carry its Loans at, to or for the account of any branch office, subsidiary or affiliate of such Lender; provided, however, that the Borrower shall not be responsible for costs arising under Section 3.01 or Section 3.04 resulting from any such transfer (other than a transfer pursuant to Section 3.06) to the extent not otherwise applicable to such Lender prior to such transfer.

 

Section 11.15           Confidentiality.

 

(a)           Each of the Administrative Agent, the LC Issuer and the Lenders agrees to maintain the confidentiality of the Confidential Information, except that Confidential Information may be disclosed (i) to its and its Affiliates’ directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being understood that the persons to whom such disclosure is made will be informed of the confidential nature of such Confidential Information and instructed to keep such information confidential on terms substantially similar to the provisions of this Section 11.15), (ii) to any direct or indirect contractual counterparty in any Hedge Agreement (or to any such contractual counterparty’s professional advisor), so long as such contractual counterparty (or such professional advisor) agrees to be bound by the provisions of this Section 11.15, (iii) to the extent requested by any regulatory authority, (iv) to the extent required by applicable Laws or regulations or by any subpoena or similar legal process (provided that prior written notice, to the extent permitted, shall be given to the Borrower and notice thereafter shall be provided to the Borrower as soon as possible under applicable law), (v) to any other party to this Agreement, (vi) to any other creditor of any Credit Party that is a direct or intended beneficiary of any of the Loan Documents, (vii) in connection with the exercise of any remedies hereunder or under any of the other Loan Documents, or any suit, action or proceeding relating to this Agreement or any of the other Loan Documents or the enforcement of rights hereunder or thereunder, (viii) subject to an agreement containing provisions substantially the same as those of this Section 11.15, to (A) any actual or prospective assignee of or participant in any of its rights or obligations under this Agreement or (B) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to Borrower and its obligations, (ix) to any rating agency for the purpose of obtaining a credit rating applicable to any Lender, (x) with the consent of the Borrower, or (xi) to the extent such Confidential Information (A) becomes publicly available other than as a result of a breach of this Section 11.15, or (B) becomes available to the Administrative Agent, the LC Issuer or any Lender on a non-confidential basis from a source other than a Credit Party and not otherwise in violation of this Section 11.15.

 

(b)           As used in this Section 11.15, “Confidential Information” shall mean all information received from the Borrower relating to the Borrower or its business, other than any such information that is available to the Administrative Agent, the LC Issuer or any Lender on a non-confidential basis prior to disclosure by the Borrower; provided, however, that, in the case of information received from the Borrower after the Closing Date, such information is clearly identified at the time of delivery as confidential.

 

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(c)           Any Person required to maintain the confidentiality of Confidential Information as provided in this Section 11.15 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 Confidential Information as such Person would accord to its own confidential information. The Borrower hereby agrees that the failure of the Administrative Agent, the LC Issuer or any Lender to comply with the provisions of this Section 11.15 shall not relieve the Borrower, or any other Credit Party, of any of its obligations under this Agreement or any of the other Loan Documents.

 

Section 11.16           General Limitation of Liability.  No claim may be made by any Credit Party, any Lender, the Administrative Agent, the LC Issuer or any other Person against the Administrative Agent, the LC Issuer, or any other Lender or the Affiliates, directors, officers, employees, attorneys or agents of any of them for any damages other than actual compensatory damages in respect of any claim for breach of contract or any other theory of liability arising out of or related to the transactions contemplated by this Agreement or any of the other Loan Documents, or any act, omission or event occurring in connection therewith; and each Credit Party, each Lender, the Administrative Agent and the LC Issuer hereby, to the fullest extent permitted under applicable law, waive, release and agree not to sue or counterclaim upon any such claim for any special, consequential or punitive damages, whether or not accrued and whether or not known or suspected to exist in their favor.

 

Section 11.17           No Duty.  All attorneys, accountants, appraisers, consultants and other professional persons (including the firms or other entities on behalf of which any such Person may act) retained by the Administrative Agent or any Lender with respect to the transactions contemplated by the Loan Documents shall have the right to act exclusively in the interest of the Administrative Agent or such Lender, as the case may be, and shall have no duty of disclosure, duty of loyalty, duty of care, or other duty or obligation of any type or nature whatsoever to any Credit Party or to any of its Subsidiaries, or to any other Person, with respect to any matters within the scope of such representation or related to their activities in connection with such representation.  Each Credit Party agrees, on behalf of itself and its Subsidiaries, not to assert any claim or counterclaim against any such persons with regard to such matters, all such claims and counterclaims, now existing or hereafter arising, whether known or unknown, foreseen or unforeseeable, being hereby waived, released and forever discharged.

 

Section 11.18           Lenders and Agent Not Fiduciary to Credit Parties, etc.  The relationship among the Credit Parties and their Subsidiaries, on the one hand, and the Administrative Agent, the LC Issuer and the Lenders, on the other hand, is solely that of debtor and creditor, and the Administrative Agent, the LC Issuer and the Lenders have no fiduciary or other special relationship with any Credit Party or its Subsidiaries, and no term or provision of any Loan Document, no course of dealing, no written or oral communication, or other action, shall be construed so as to deem such relationship to be other than that of debtor and creditor.  Without limitation of the foregoing, 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 each other Credit Party acknowledges and agrees, and acknowledges its Affiliates’ understanding, that: (i) (A) the arranging and other services regarding this Agreement provided by the Administrative Agent and the Lead Arranger are arm’s-length commercial transactions between the Borrower, the other Credit Parties and their respective Affiliates, on the one hand, and the Administrative Agent and the Lead Arranger, on the other hand, (B) the Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (C) the Borrower and each other Credit Party 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) the Administrative Agent and the Lead Arranger each 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, any other Credit Party or any of their respective Affiliates, or any other Person and (B) neither the Administrative Agent nor the 

 

128

 

Lead Arranger has any obligation to the Borrower, any Credit 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 Lead Arranger and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Borrower, the other Credit Parties and their respective Affiliates, and neither the Administrative Agent nor the Lead Arranger has any obligation to disclose any of such interests to the Borrower, any Credit Party or any of their respective Affiliates.  To the fullest extent permitted by law, the Borrower and each other Credit Party hereby waives and releases any claims that it may have against the Administrative Agent and the Lead Arranger with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

 

Section 11.19           Survival of Representations and Warranties.  All representations and warranties herein shall survive the making of Loans and all LC Issuances hereunder, the execution and delivery of this Agreement, the Notes and the other documents the forms of which are attached as Exhibits hereto, the issue and delivery of the Notes, any disposition thereof by any holder thereof, and any investigation made by the Administrative Agent or any Lender or any other holder of any of the Notes or on its behalf.

 

Section 11.20           Severability.  Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.  Without limiting the foregoing provisions of this Section 11.20, 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 LC Issuer or the Swing Line Lender, as applicable, then such provisions shall be deemed to be in effect only to the extent not so limited.

 

Section 11.21           Independence of Covenants.  All covenants hereunder shall be given independent effect so that if a particular action, event, condition or circumstance is not permitted by any of such covenants, the fact that it would be permitted by an exception to, or would otherwise be within the limitations or restrictions of, another covenant, shall not avoid the occurrence of a Default or an Event of Default if such action is taken or event, condition or circumstance exists.

 

Section 11.22           Interest Rate Limitation.  Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts that are treated as interest on such Loan under applicable law (collectively, the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) that may be contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance with applicable law, the rate of interest payable in respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such Loan but were not payable as a result of the operation of this Section 11.22 shall be cumulated and the interest and Charges payable to such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the Base Rate to the date of repayment, shall have been received by such Lender.

 

Section 11.23           Payments Set Aside.  To the extent that any payment by or on behalf of the Borrower is made to the Administrative Agent, the LC Issuer or any Lender, or the Administrative Agent, the LC 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, the LC Issuer or such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any 

 

129

 

proceeding 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 the LC 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 Effective Rate.  The obligations of the Lenders and the LC Issuer under clause (b) of the preceding sentence shall survive the payment in full of the Obligations and the termination of this Agreement.

 

Section 11.24           Subordination of Intercompany Debt.  Each Credit Party agrees that all intercompany Indebtedness among Credit Parties (the “Intercompany Debt”) is subordinated in right of payment, to the prior payment in full of all Obligations.  Notwithstanding any provision of this Agreement to the contrary; provided that no Event of Default has occurred and is continuing and the Administrative Agent has not delivered notice revoking any rights under this Section 11.24, the Credit Parties may make and receive payments with respect to the Intercompany Debt to the extent not otherwise prohibited by this Agreement; provided, that in the event of and during the continuation of any Event of Default and after the Administrative Agent has delivered notice revoking any rights under this Section 11.24, no payment shall be made by or on behalf of any Credit Party on account of any Intercompany Debt.  In the event that any Credit Party receives any payment of any Intercompany Debt at a time when such payment is prohibited by this Section 11.24, such payment shall be paid promptly over and delivered, upon written request, to, the Administrative Agent.

 

Section 11.25           Patriot Act.  Each Lender subject to the Patriot Act hereby notifies each Credit Party that pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies such Credit Party, which information includes the name and address of such Credit Party and other information that will allow such Lender to identify such Credit Party in accordance with the Patriot Act.  Each Credit Party 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 Patriot Act.

 

Section 11.26           Electronic Execution of Documents.

 

The words “execution,” “signed,” “signature,” and words of like import 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.

 

Section 11.27           Replacement of Lenders.

 

If (i) a Lender does not consent to a proposed amendment, waiver, consent or release with respect to any Loan Document that requires the consent of such Lender and that has been approved by the Required Lenders, (ii) any Lender requests compensation under Section 3.04, (iii) 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, (iv) a Lender delivers a notice pursuant to Section 3.02 with respect to circumstances that do not affect other Lenders hereunder, or (v) any Lender is a Defaulting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative 

 

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Agent, require such Lender to assign and delegate, without recourse (in accordance with the restrictions contained in Section 11.06(b)), all its interests, rights and obligations under this Agreement to an Eligible Assignee that shall assume such obligations; provided, however, that (1) the Borrower shall have received the prior written consent of the Administrative Agent, which consent shall not be unreasonably withheld or delayed, and shall have paid the Administrative Agent the assignment fee specified in Section 11.06(b)(iv), (2) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts, including any breakage compensation under Section 3.05), (3) such assignment does not conflict with applicable Laws, and (4) in the case of any such assignment resulting from a Lender’s failure to consent to a proposed change, waiver, discharge or termination with respect to any Loan Document, the applicable amendment, modification and/or waiver of this Agreement that the Borrower has requested shall become effective upon giving effect to such assignment (and any related assignments required to be effected in connection therewith in accordance with Section 11.06)).  A Lender shall not be required to make any such assignment and 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.  In the event that the Borrower elects to replace a Lender pursuant to this Section 11.27, and such Lender does not execute an Assignment Agreement pursuant to Section 11.06 within two (2) Business Days after receipt by such Lender of a notice of replacement pursuant to this Section 11.27 of an Assignment Agreement evidencing such assignment, the Borrower and/or the Administrative Agent shall be entitled to execute such Assignment Agreement on behalf of such Lender, and any such Assignment Agreement so executed by the Borrower, the applicable replacement Lender and the Administrative Agent, shall be effective for the purposes of this Section 11.27 and Section 11.06.  Upon any such assignment and payment and compliance with the other provisions of Section 11.06, such replaced Lender shall not longer constitute a “Lender” for the purposes of this Agreement; provided that any rights of such replaced Lender to indemnification hereunder shall survive.

 

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BORROWER:
    	
EPIQ SYSTEMS, INC.,
    
	
 
    	
a Missouri corporation,
    
	
 
    	
as Borrower
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Elizabeth M. Braham
    
	
 
    	
Name: Elizabeth M. Braham
    
	
 
    	
Title:
    	
Executive Vice President, Chief Financial Officer,
    
	
 
    	
 
    	
Treasurer and Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
GUARANTORS:
    	
EPIQ SYSTEMS ACQUISITION, INC.,
    
	
 
    	
a New York corporation,
    
	
 
    	
as a Guarantor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Elizabeth M. Braham
    
	
 
    	
Name: Elizabeth M. Braham
    
	
 
    	
Title:
    	
Executive Vice President, Chief Financial Officer,
    
	
 
    	
 
    	
Treasurer and Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EPIQ CLASS ACTION & CLAIMS SOLUTIONS, INC.,
    
	
 
    	
a Rhode Island corporation,
    
	
 
    	
as a Guarantor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Elizabeth M. Braham
    
	
 
    	
Name: Elizabeth M. Braham
    
	
 
    	
Title: 
    	
Executive Vice President, Chief Financial Officer,
    
	
 
    	
 
    	
Treasurer and Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EPIQ BANKRUPTCY SOLUTIONS, LLC,
    
	
 
    	
a New York limited liability company,
    
	
 
    	
as a Guarantor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Elizabeth M. Braham
    
	
 
    	
Name: Elizabeth M. Braham
    
	
 
    	
Title:
    	
Executive Vice President, Chief Financial Officer,
    
	
 
    	
 
    	
Treasurer and Secretary
    
				

 

EPIQ SYSTEMS, INC.

CREDIT AGREEMENT

 

 

	
 
    	
HILSOFT, INC.,
    
	
 
    	
a Pennsylvania corporation,
    
	
 
    	
as a Guarantor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Elizabeth M. Braham
    
	
 
    	
Name: Elizabeth M. Braham
    
	
 
    	
Title:
    	
Executive Vice President, Chief Financial Officer,
    
	
 
    	
 
    	
Treasurer and Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EPIQ EDISCOVERY SOLUTIONS, INC.,
    
	
 
    	
a Delaware corporation,
    
	
 
    	
as a Guarantor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Elizabeth M. Braham
    
	
 
    	
Name: Elizabeth M. Braham
    
	
 
    	
Title:
    	
Executive Vice President, Chief Financial Officer,
    
	
 
    	
 
    	
Treasurer and Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ENCORE LEGAL SOLUTIONS, INC.,
    
	
 
    	
a Delaware corporation,
    
	
 
    	
as a Guarantor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Elizabeth M. Braham
    
	
 
    	
Name: Elizabeth M. Braham
    
	
 
    	
Title:
    	
Executive Vice President, Chief Financial Officer,
    
	
 
    	
 
    	
Treasurer and Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
DE NOVO LEGAL LLC,
    
	
 
    	
a Delaware limited liability company,
    
	
 
    	
as a Guarantor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Elizabeth M. Braham
    
	
 
    	
Name: Elizabeth M. Braham
    
	
 
    	
Title:
    	
Executive Vice President, Chief Financial Officer,
    
	
 
    	
 
    	
Treasurer and Secretary
    
				

 

EPIQ SYSTEMS, INC.

CREDIT AGREEMENT

 

 

	
 
    	
EPIQ SYSTEMS HOLDINGS, LLC,
    
	
 
    	
a Delaware limited liability company,
    
	
 
    	
as a Guarantor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Elizabeth M. Braham
    
	
 
    	
Name: Elizabeth M. Braham
    
	
 
    	
Title:
    	
Executive Vice President, Chief Financial Officer,
    
	
 
    	
 
    	
Treasurer and Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EPIQ TECHNOLOGY, LLC,
    
	
 
    	
a Delaware limited liability company,
    
	
 
    	
as a Guarantor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Elizabeth M. Braham
    
	
 
    	
Name: Elizabeth M. Braham
    
	
 
    	
Title:
    	
Executive Vice President, Chief Financial Officer,
    
	
 
    	
 
    	
Treasurer and Secretary
    
				

 

EPIQ SYSTEMS, INC.

CREDIT AGREEMENT

 

 

	
ADMINISTRATIVE AGENT:
    	
KEYBANK NATIONAL ASSOCIATION,
    
	
 
    	
as Administrative Agent, LC Issuer, Swing Line   Lender and a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David Wild
    
	
 
    	
Name: David Wild
    
	
 
    	
Title: Senior Vice President
    

 

EPIQ SYSTEMS, INC.

CREDIT AGREEMENT

 

 

	
LENDER:
    	
PNC Bank, National Association
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David Bentzinger
    
	
 
    	
Name: David Bentzinger
    
	
 
    	
Title: Senior Vice President
    

 

EPIQ SYSTEMS, INC.

CREDIT AGREEMENT

 

 

	
LENDER:
    	
Silicon Valley Bank,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jesse Meyer
    
	
 
    	
Name: Jesse Meyer
    
	
 
    	
Title: Vice President
    

 

EPIQ SYSTEMS, INC.

CREDIT AGREEMENT

 

 

	
LENDER:
    	
FIRSTMERIT BANK, N.A.,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Laura C. Redinger
    
	
 
    	
Name: Laura C. Redinger
    
	
 
    	
Title: Vice President
    

 

EPIQ SYSTEMS, INC.

CREDIT AGREEMENTExhibit 10.1

 

AMENDMENT AGREEMENT

 

This Amendment Agreement, dated as of August 28, 2013 (this “Amendment Agreement”) to the Original Credit Agreement referred to below and is entered into among Radiation Therapy Services, Inc., a Florida corporation (“Borrower”), Radiation Therapy Services Holdings, Inc., a Delaware corporation (“Parent”), the Subsidiaries of the Borrower identified as “Subsidiary Guarantors” on the signature pages hereto (the “Subsidiary Guarantors” together with Parent, the “Guarantors”), the Lenders signatory hereto (the “Lenders”) and Wells Fargo Bank, National Association, in its capacity as administrative agent and collateral agent (in such capacity, the “Administrative Agent”).

 

W I T N E S S E T H:

 

WHEREAS, reference is made to that certain credit agreement entered into among the Borrower, Parent, the institutions from time to time party thereto as lenders, the Administrative Agent and the other agents and arrangers named therein on May 10, 2012 (as amended, supplemented or otherwise modified from time to time prior to the date hereof, the “Original Credit Agreement”).  Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to them in the Original Credit Agreement.

 

WHEREAS, Section 10.1 of the Original Credit Agreement provides that the Original Credit Agreement may be amended, modified and waived from time to time; and

 

WHEREAS, the Borrower has requested that the Administrative Agent and the Lenders party hereto agree to amend the Original Credit Agreement in certain respects as set forth herein and the Lenders party hereto and the Administrative Agent are agreeable to the same, subject to the terms and conditions set forth herein;

 

NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties hereto hereby agree as follows:

 

Section 1.                          Amendment and Restatement

 

The Original Credit Agreement is, effective as of the Amendment and Restatement Effective Date (as defined below), hereby amended and restated as set forth in Exhibit A hereto (the Original Credit Agreement as amended hereby, the “Amended and Restated Credit Agreement” or the “Credit Agreement”).

 

The Original Credit Agreement is, effective as of the Amendment and Restatement Effective Date (as defined below), hereby amended to include Exhibit E-3 in the form attached hereto as Exhibit B.

 

In addition to those amendments specifically set forth herein, the Exhibits to the Credit Agreement may be modified by the Administrative Agent and the Borrower in order to reflect the existence of the Term Loans (as defined in the Amended and Restated Credit Agreement) and to reflect the other changes to the Original Credit Agreement set forth in this Amendment Agreement.

 

Schedule 1.1A to the Original Credit Agreement shall be replaced with Schedule 1 to this Amendment Agreement, and other than as specifically referred to above or in the Amended and Restated Credit Agreement, the Exhibits and the Schedules to the Original Credit Agreement shall be the Exhibits and Schedules to the Amended and Restated Credit Agreement.

 

 

Section 2.                          Term Loans

 

Subject to the next sentence and the terms and conditions hereof and of the Amended and Restated Credit Agreement, each Person signatory hereto that is identified on the signature pages hereof as a “Term Lender” shall make a term loan in Dollars on the Amendment and Restatement Effective Date in an aggregate principal amount equal to the amount of its Term Loan Commitment set forth opposite such Person’s name on Schedule 1 hereto (a “Term Loan”); provided that, with respect to any Term Lender that was a Lender under the Credit Agreement immediately prior to giving effect to the Amendment and Restatement Effective Date, such Term Lender’s obligation to fund in cash the Term Loan to be funded by such Lender shall, with respect to such Term Lender’s ratable portion of the Revolving Loans outstanding immediately prior to giving effect to this Amendment in amount not to exceed $40,000,000 in the aggregate, be reduced by the principal amount of such Revolving Loans of such Term Lender, and such Revolving Loans of such Term Lender shall be converted into Term Loans as of the Amendment and Restatement Effective Date. Amounts repaid or prepaid on account of the Term Loans may not be reborrowed.

 

Section 3.                          Reduction of Revolving Commitments

 

The Commitments of the Revolving Lenders (as defined in the Amended and Restated Credit Agreement) shall be reduced on a pro rata basis on the Amendment and Restatement Effective date as set forth in Section 2.9(b) of the Amended and Restated Credit Agreement. The parties hereto hereby waive the requirements of Section 2.6(a) of the Original Credit Agreement with respect to a reduction in Commitments.  On the Amendment and Restatement Effective Date after giving effect to this Amendment Agreement, the Commitment of each Revolving Lender shall be as set forth opposite such Revolving Lender’s name on Schedule 1 hereto.

 

Section 4.                          Amendment to the Guaranty and Collateral Agreement

 

Effective as of the Amendment and Restatement Effective Date, the Guaranty and Collateral Agreement is hereby amended as follows:

 

(a)                                 The following defined terms shall be added to Section 1.02 of the Guaranty and Collateral Agreement in alphabetical order:

 

“Qualified ECP Guarantor” means, at any time, each Loan Party with total assets exceeding $10,000,000 or that qualifies at such time as an “eligible contract participant” under the Commodity Exchange Act and can cause another person to qualify as an “eligible contract participant” at such time under §1a(18)(A)(v)(II) of the Commodity Exchange Act.

 

“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 2.07).

 

(b)                                 The definition of “Secured Obligations” in the Guaranty and Collateral Agreement is hereby amended and restated in its entirety as follows:

 

“Secured Obligations” means collectively, (a) the Obligations, (b) the due and punctual payment and performance in full of all obligations of each Loan Party to the applicable Qualified Counterparty under each Secured Swap Agreement and (c) the due and punctual payment and performance of all obligations of the Loan Parties (including overdrafts and related liabilities) to the applicable Cash Management Bank under each Secured Cash Management Agreement; provided that the “Secured Obligations” shall exclude any Excluded Swap Obligations.

 

2

 

(c)                                  The following new Section 2.07 shall be added to the Guaranty and Collateral Agreement:

 

“Section 2.07.                    Keepwell. Each Loan Party that is a Qualified ECP Guarantor at the time the Guaranty or the grant of the security interest under the Loan Documents, in each case, by any Specified Loan Party, becomes effective with respect to any Secured Swap Obligation, hereby jointly and severally, absolutely, unconditionally and irrevocably undertakes to provide such funds or other support to each Specified Loan Party with respect to such Secured Swap Obligation as may be needed by such Specified Loan Party from time to time to honor all of its obligations under this Agreement and the other Loan Documents in respect of such Secured Swap Obligation (but, in each case, only up to the maximum amount of such liability that can be hereby incurred without rendering such Qualified ECP Guarantor’s obligations and undertakings under this Article II voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations and undertakings of each Qualified ECP Guarantor under this Section shall remain in full force and effect until the Obligations have been paid in full. Each Qualified ECP Guarantor intends this Section 2.07 to constitute, and this Section 2.07 shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of, each Specified Loan Party for all purposes of the Commodity Exchange Act.”

 

(d)                                 Section 5.02 of the Guaranty and Collateral Agreement is hereby amended and restated in its entirety and replaced with the following:

 

“Application of Proceeds.  The Collateral Agent shall apply the proceeds of any collection or sale of Collateral pursuant to this Article V, including any Collateral consisting of cash, as follows:

 

FIRST, to the payment of all fees, costs and expenses and indemnities incurred by the Collateral Agent and the Administrative Agent in connection with such collection or sale or otherwise in connection with this Agreement, any other Loan Document or any of the Secured Obligations, including all court costs and the fees and expenses of its agents and legal counsel, the repayment of all advances made by the Collateral Agent hereunder or under any other Loan Document on behalf of any Grantor and any other costs or expenses incurred in connection with the exercise of any right or remedy hereunder or under any other Loan Document;

 

SECOND, to the payment in full of the Revolving Obligations then due and payable (other than any Letters of Credit that have been Cash Collateralized in an aggregate amount equal to 103% of the L/C Exposure) (the amounts so applied to be distributed among the Secured Parties pro rata in accordance with the amounts of the Revolving Obligations owed to them on the date of any such distribution);

 

THIRD, to Cash Collateralize the outstanding Letters of Credit in an aggregate amount equal to 103% of the L/C Exposure;

 

FOURTH, to the payment in full of the Term Loan Obligations then due and payable (the amounts so applied to be distributed among the Secured Parties pro rata in accordance with the amounts of the Term Loan Obligations then due and payable owed to them on the date of any such distribution); and

 

FIFTH, to the Grantors, their successors or assigns, or as a court of competent jurisdiction may otherwise direct.

 

3

 

The Collateral Agent shall have sole and absolute discretion as to the time of application of any such proceeds, moneys or balances in accordance with this Agreement.  Upon any sale of Collateral by the Collateral Agent (including pursuant to a power of sale granted by statute or under a judicial proceeding), the receipt of the Collateral Agent or of the officer making the sale shall be a sufficient discharge to the purchaser or purchasers of the Collateral so sold and such purchaser or purchasers shall not be obligated to see to the application of any part of the purchase money paid over to the Collateral Agent or such officer or be answerable in any way for the misapplication thereof.

 

The parties to each Loan Document (including each Loan Party) irrevocably agree that the terms of this “Application of Proceeds” section will survive, and will continue in full force and effect and be binding upon each of the parties hereto, in any proceeding referred to in Section 8(f) of the Credit Agreement, and such parties will not challenge the foregoing.”

 

Section 5.                          Conditions Precedent to the Effectiveness of this Amendment Agreement

 

This Amendment Agreement shall become effective as of the date (the “Amendment and Restatement Effective Date”, which the parties acknowledge is August 29, 2013) when, and only when, the following conditions precedent have been satisfied:

 

(a)                                 Administrative Agent shall have received (x) counterparts of this Amendment Agreement, duly executed by (1) the Borrower, (2) each Guarantor and (3) the Administrative Agent, (4) each Revolving Lender and (5) each of the Term Lenders (as defined in the Amended and Restated Credit Agreement).

 

(b)                                 No Default or Event of Default exists and is continuing or would exist immediately after giving effect to the transactions contemplated by this Amendment Agreement.

 

(c)                                  As of the Amendment and Restatement Effective Date and after giving effect to the transactions contemplated by this Amendment Agreement, the representations and warranties (x) set forth in Section 4 of the Credit Agreement are true and correct in all material respects as of the date hereof (except for those which expressly relate to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date) and (y) set forth in Section 6 below are true and correct in all material respects, in each case, to the extent such covenant or other agreement is not already subject to a “materiality” or “Material Adverse Effect” qualifier on and as of such date as if made on and as of such date (other than representations and warranties which speak only as of a certain date, which representations and warranties shall be made only on such date).

 

(d)                                 The Administrative Agent shall have received a completed “Life-of-Loan” Federal Emergency Management Agency standard flood hazard determination with respect to each Mortgaged Property and, if located in a Special Flood Hazard Area, together with a notice about special flood hazard area status and flood disaster assistance duly executed by the Borrower and if applicable, each Loan Party relating thereto (it being understood that all documents required to be delivered pursuant to this Section 5(d) have been delivered prior to the date hereof).

 

(e)                                  The Administrative Agent shall have received a copy of, or a certificate as to coverage under, and a declaration page relating to, the property insurance policies required by Section 6.5 of the Credit Agreement (including, without limitation, flood insurance policies) and the applicable provisions of the Security Documents, each of which shall be endorsed or otherwise amended to include a “standard” or “New York” lender’s loss payable or mortgagee endorsement (as applicable) and (ii) shall be otherwise in form and substance satisfactory to the

 

4

 

Administrative Agent (it being understood that all documents required to be delivered pursuant to this Section 5(e) have been delivered prior to the date hereof).

 

(f)                                   All accrued and unpaid (i) interest on the Revolving Loans and Swingline Loans and (ii) commitment fees pursuant to Section 2.8(a) of the Original Credit Agreement, in each case as of the Amendment and Restatement Effective Date, shall have been (or shall substantially simultaneously with the Amendment and Restatement Effective Date be) paid.

 

(g)                                  Each Revolving Lender shall have received, if requested by it at least three (3) Business Days prior to the Restatement Effective Date, one or more replacement Notes payable to the order of such Revolving Lender duly executed by the Borrower in substantially the form of Exhibit E-1 to the Original Credit Agreement with such modifications as are deemed appropriate by the Borrower and the Administrative Agent to reflect the reduction in such Revolving Lender’s Commitments set forth in Section 3 of this Amendment Agreement, evidencing such Revolving Lenders’ Commitments, as reduced; provided that such Revolving Lender shall have returned to the Borrower any Revolving Note held by it prior to the Amendment and Restatement Effective Date.

 

(h)                                 Each Term Lender executing this Amendment as a “Term Lender” shall have received, if requested by it at least three (3) Business Days prior to the Restatement Effective Date, one or more Notes payable to the order of such Term Lender duly executed by the Borrower in substantially the form of Exhibit E-3 to the Amended and Restated Credit Agreement.

 

(i)                                     The Administrative Agent shall have received a certificate of the Borrower (on behalf of the Loan Parties) certifying (A) that the (x) organizational documents and (y) agreement of limited partnership, operating agreement or bylaws of each Loan Party previously delivered to the Administrative Agent have not been amended since such date of delivery or to the extent such organizational documents, agreement of limited partnership, operating agreement or bylaws have been so amended, that a true and correct copy thereof, including all amendments thereto, is attached thereto and that such organizational documents are in full force and effect; and (B) that attached thereto is a true and complete copy of resolutions duly adopted by the Board of Directors of each Loan Party authorizing the execution, delivery and performance of the Loan Documents to which it is to be a party and, in the case of the Borrower, the borrowings thereunder, and that such resolutions have not been modified, rescinded or amended and are in full force and effect; and (C) a good standing certificate with respect to the Borrower, dated as of a reasonably recent date on or prior to the Restatement Effective Date issued by the Secretary of State in the jurisdiction of its organization.

 

(j)                                    The Administrative Agent shall have received the following executed legal opinions:

 

(1)              the legal opinion of Kirkland & Ellis LLP, counsel to Parent, the Borrower and certain other Loan Parties, in form and substance reasonably acceptable to the Administrative Agent; and

 

(2)              the legal opinions of the special counsel to Parent, the Borrower and certain other Loan Parties in the jurisdictions reasonably acceptable to the Administrative Agent.

 

(k)                                 The Borrower shall have paid to the Administrative Agent, for the account of each Term Lender party to this Amendment Agreement on the Amendment and Restatement

 

5

 

Effective Date, an amount equal to 2.50% of the aggregate principal amount of the Term Loan Commitment set forth opposite such Person’s name on Schedule 1 hereto (such amount the “Initial Yield Payment”).  Such Initial Yield Payment will be in all respects fully earned, due and payable on the Amendment and Restatement Effective Date and non-refundable and non-creditable thereafter. The parties acknowledge and agree that for tax purposes only the Initial Yield Payment shall be treated as a payment described in Treas. Reg. Section 1.1273-2(g)(2) (but not as a payment for property or for services provided by the lender).

 

Section 6.                          Representations and Warranties

 

On and as of the Amendment and Restatement Effective Date, after giving effect to the transactions contemplated by this Amendment Agreement, the Borrower hereby represents and warrants to the Administrative Agent and each Lender as follows:

 

(a)                                 this Amendment Agreement has been duly authorized, executed and delivered by the Loan Parties and constitutes the legal, valid and binding obligation of the Loan Parties enforceable against the Loan Parties in accordance with its terms and the Loan Documents, as amended by this Amendment Agreement, constitute the legal, valid and binding obligations of the Borrower enforceable against the Borrower in accordance with their respective terms; and

 

(b)                                 No consent, approval, authorization or offer of, or filing, registration or qualification with, any court or governmental authority or third party is required by the Borrower in connection with the execution, delivery or performance by such Person of this Amendment Agreement.

 

Section 7.                          Real Estate Matters

 

(a)                                 Within sixty (60) days after the Amendment and Restatement Effective Date, unless extended by the Collateral Agent in its sole discretion, the Borrower shall deliver or cause to be delivered to the Collateral Agent, with respect to each applicable existing Mortgaged Property, the following:

 

(i)                                     with respect to each applicable existing Mortgage encumbering Mortgaged Property, an amendment (each a “Mortgage Amendment”) duly executed and acknowledged by the applicable Loan Party, and in form for recording in the recording office where each such Mortgage was recorded, together with such certificates, affidavits, questionnaires or returns as shall be required in connection with the recording or filing thereof under applicable law, in each case in form and substance reasonably satisfactory to the Collateral Agent;

 

(ii)                                  with respect to each Mortgage Amendment, an endorsement to the existing Title Policy assuring the Collateral Agent that the Mortgage, as amended by the Mortgage Amendment, is a valid and enforceable first priority lien on such Mortgaged Property in favor of the Collateral Agent for the benefit of the Secured Parties free and clear of all Liens except those Liens created or permitted by the Mortgage or by the Collateral Agent, and such Mortgage Policy shall otherwise be in form and substance reasonably satisfactory to the Collateral Agent;

 

(iii)                               with respect to each Mortgage Amendment, opinions of local counsel to the Loan Parties, which opinions (x) shall be addressed to Administrative Agent and each of the Secured Parties, (y) shall cover (i) the due authorization, execution and delivery of such Mortgage Amendment and (ii) the enforceability of the respective Mortgage as amended by the Mortgage

 

6

 

Amendment, and (z) shall be in form and substance reasonably satisfactory to the Administrative Agent;

 

(iv)                              with respect to each Mortgaged Property, such affidavits, certificates, information and instruments of indemnification as shall be required to induce the title insurance company to issue the endorsement to Title Policy contemplated in subparagraph (ii) of this Section 7; and

 

(v)                                 evidence reasonably acceptable to the Collateral Agent of payment by the appropriate Loan Party of all applicable title insurance premiums, search and examination charges and related charges, mortgage recording taxes, fees, charges, costs and expenses required for the recording of the Mortgage Amendments and issuance of the endorsements to Title Policies referred to in subparagraph (ii) of this Section 7.

 

Section 8.                          Reference to and Effect on the Loan Documents

 

(a)                                 As of the Amendment and Restatement Effective Date, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein,” or words of like import, and each reference in the other Loan Documents to the Credit Agreement (including, without limitation, by means of words like “thereunder,” “thereof” and words of like import), shall mean and be a reference to the Credit Agreement as amended and restated hereby, and this Amendment Agreement and the Amended and Restated Credit Agreement shall be read together and construed as a single instrument.

 

(b)                                 As of the Amendment and Restatement Effective Date and after giving effect to the transactions contemplated by this Amendment Agreement, Borrower hereby acknowledges that it has received and reviewed a copy of the Amended and Restated Credit Agreement and acknowledges and agrees to be bound by all covenants, agreements and acknowledgments in the Amended and Restated Credit Agreement and any other Loan Document to which it is a party and to perform all obligations and duties required of it by the Amended and Restated Credit Agreement.

 

(c)                                  Except as expressly amended hereby or specifically waived above, all of the terms and provisions of the Credit Agreement and all other Loan Documents are and shall remain in full force and effect and are hereby ratified and confirmed.

 

(d)                                 The execution, delivery and effectiveness of this Amendment Agreement shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of the Lenders, the Borrower or the Administrative Agent under any of the Loan Documents, nor constitute a waiver or amendment of any other provision of any of the Loan Documents or for any purpose except as expressly set forth herein.

 

(e)                                  This Amendment Agreement shall constitute a Loan Document under the terms of the Amended and Restated Credit Agreement.

 

Section 9.                          Acknowledgement of Guarantors and Reaffirmation

 

The Guarantors acknowledge and consent to all terms and conditions of this Amendment Agreement and agree that this Amendment Agreement, the transactions contemplated hereby and all documents executed in connection herewith do not operate to reduce or discharge the Guarantors’ obligations under the Loan Documents.

 

7

 

Each Loan Party hereby (i) expressly acknowledges the terms of this Amendment Agreement and the Amended and Restated Credit Agreement, (ii) ratifies and affirms after giving effect to this Amendment Agreement and the Amended and Restated Credit Agreement its obligations under the Loan Documents (including guarantees and security agreements) executed by such Loan Party and (iii) after giving effect to this Amendment Agreement and the transactions contemplated hereby, acknowledges, renews and extends its continued liability under all such Loan Documents and agrees such Loan Documents remain in full force and effect, as amended hereby and in the Amended and Restated Credit Agreement.  Each Loan Party hereby (a) affirms and confirms its guarantees, pledges, grants and other commitments under the Security Documents and (b) agrees that, notwithstanding the effectiveness of this Amendment, (i) each Security Document, as amended hereby, shall continue to be in full force and effect and (ii) all guarantees, pledges, grants and other commitments thereunder shall continue to be in full force and effect with respect to the Obligations (as the Obligations are modified pursuant to this Amendment Agreement and the transactions contemplated hereby) and shall accrue to the benefit of the Secured Parties.  Each of the Loan Parties further agrees to take any action that may be required or that is reasonably requested by the Administrative Agent to effect the purposes of this Amendment Agreement, the transactions contemplated hereby or the Loan Documents and hereby reaffirms its obligations under each provision of each Loan Document to which it is party.

 

Section 10.                   Costs and Expenses

 

The Borrower agrees to pay all reasonable out-of-pocket costs and expenses of the Administrative Agent in connection with the preparation, reproduction, execution and delivery of this Amendment Agreement and the transactions contemplated hereby (including, without limitation, the reasonable fees and out-of-pocket expenses of counsel for the Administrative Agent with respect thereto) in accordance with Section 10.5 of the Credit Agreement.

 

Section 11.                   Execution in Counterparts

 

This Amendment Agreement may be executed in any number of counterparts and by different parties in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.  Signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are attached to the same document.  Delivery of an executed counterpart by facsimile or other electronic transmission (including Adobe pdf file) shall be effective as delivery of a manually executed counterpart of this Amendment Agreement.

 

Section 12.                   Lender Signatures

 

Each Lender that signs a signature page to this Amendment Agreement shall be deemed to have approved this Amendment Agreement and shall be further deemed for the purposes of the Loan Documents to have approved this Amendment Agreement.  Each Lender signatory to this Amendment Agreement agrees that such Lender shall not be entitled to receive a copy of any other Lender’s signature page to this Amendment, but agrees that a copy of such signature page may be delivered to the Borrower and the Administrative Agent.

 

Section 13.                   Governing Law

 

THIS AMENDMENT AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT

 

8

 

THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WILL BE REQUIRED THEREBY.

 

Section 14.                   Section Titles

 

The section titles contained in this Amendment Agreement are and shall be without substantive meaning or content of any kind whatsoever and are not a part of the agreement between the parties hereto, except when used to reference a section.  Any reference to the number of a clause, subclause or subsection of any Loan Document immediately followed by a reference in parenthesis to the title of the section of such Loan Document containing such clause, subclause or subsection is a reference to such clause, subclause or subsection and not to the entire section; provided, however, that, in case of direct conflict between the reference to the title and the reference to the number of such section, the reference to the title shall govern absent manifest error.  If any reference to the number of a section (but not to any clause, subclause or subsection thereof) of any Loan Document is followed immediately by a reference in parenthesis to the title of a section of any Loan Document, the title reference shall govern in case of direct conflict absent manifest error.

 

Section 15.                   Notices

 

All communications and notices hereunder shall be given as provided in the Amended and Restated Credit Agreement.

 

Section 16.                   Severability

 

The fact that any term or provision of this Amendment Agreement is held invalid, illegal or unenforceable as to any person in any situation in any jurisdiction shall not affect the validity, enforceability or legality of the remaining terms or provisions hereof or the validity, enforceability or legality of such offending term or provision in any other situation or jurisdiction or as applied to any person.

 

Section 17.                   Successors

 

The terms of this Amendment Agreement shall be binding upon, and shall inure to the benefit of, the Lenders, the parties hereto and their respective successors and permitted assigns.

 

Section 18.                   Waiver of Jury Trial

 

EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING WITH RESPECT TO THIS AMENDMENT AGREEMENT OR ANY OTHER LOAN DOCUMENT.

 

[Signature pages follow.]

 

9

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment Agreement to be executed by their respective officers thereunto duly authorized, as of the date first written above.

 

	
 
    	
RADIATION   THERAPY SERVICES HOLDINGS, INC., as Parent
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Bryan J. Carey
    
	
 
    	
 
    	
Name:   Bryan J. Carey
    
	
 
    	
 
    	
Title:   Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
RADIATION   THERAPY SERVICES, INC., as Borrower
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Bryan J. Carey
    
	
 
    	
 
    	
Name:
    	
Bryan   J. Carey
    
	
 
    	
 
    	
Title:
    	
Chief   Financial Officer
    

 

[RTS - Amendment Agreement]

 

 

21ST CENTURY ONCOLOGY SERVICES, INC.

 

21ST CENTURY ONCOLOGY MANAGEMENT SERVICES, INC.

 

21ST CENTURY ONCOLOGY OF ALABAMA, LLC

 

21ST CENTURY ONCOLOGY OF HARFORD COUNTY MARYLAND, LLC

 

21ST CENTURY ONCOLOGY OF JACKSONVILLE, LLC

 

21ST CENTURY ONCOLOGY OF KENTUCKY, LLC

 

21ST CENTURY ONCOLOGY OF NEW JERSEY, INC.

 

21ST CENTURY ONCOLOGY OF PENNSYLVANIA, INC.

 

21ST CENTURY ONCOLOGY OF PRINCE GEORGES COUNTY, MARYLAND, LLC

 

21ST CENTURY ONCOLOGY OF SOUTH CAROLINA, LLC

 

21ST CENTURY ONCOLOGY, LLC

 

AHLC, LLC

 

AMERICAN CONSOLIDATED TECHNOLOGIES, L.L.C.

 

ARIZONA RADIATION THERAPY MANAGEMENT SERVICES, INC.

 

ASHEVILLE CC, LLC

 

ATLANTIC UROLOGY CLINICS, LLC

 

AURORA TECHNOLOGY DEVELOPMENT, LLC

 

BERLIN RADIATION THERAPY TREATMENT CENTER, LLC

 

CALIFORNIA RADIATION THERAPY MANAGEMENT SERVICES, INC.

 

CAROLINA RADIATION AND CANCER TREATMENT CENTER, LLC

 

CAROLINA REGIONAL CANCER CENTER, LLC

 

DERM-RAD INVESTMENT COMPANY, LLC

 

DEVOTO CONSTRUCTION OF SOUTHWEST FLORIDA, INC.

 

FINANCIAL SERVICES OF SOUTHWEST FLORIDA, LLC

 

GETTYSBURG RADIATION, LLC

 

GOLDSBORO RADIATION THERAPY SERVICES, INC.

 

JACKSONVILLE RADIATION THERAPY SERVICES, LLC

 

MARYLAND RADIATION THERAPY MANAGEMENT SERVICES, LLC

 

MICHIGAN RADIATION THERAPY MANAGEMENT SERVICES, INC.

 

NEVADA RADIATION THERAPY MANAGEMENT SERVICES, INCORPORATED

 

[RTS - Amendment Agreement]

 

 

NEW ENGLAND RADIATION THERAPY MANAGEMENT SERVICES, INC.

 

NEW YORK  RADIATION THERAPY MANAGEMENT SERVICES, LLC

 

NORTH CAROLINA RADIATION THERAPY MANAGEMENT SERVICES, LLC

 

PHOENIX MANAGEMENT COMPANY, LLC

 

RADIATION THERAPY SCHOOL FOR RADIATION THERAPY TECHNOLOGY, INC.

 

RADIATION THERAPY SERVICES INTERNATIONAL, INC.

 

SAMPSON ACCELERATOR, LLC

 

SAMPSON SIMULATOR, LLC

 

WEST VIRGINIA RADIATION THERAPY SERVICES, INC.

as Subsidiary Guarantors

 

	
 
    	
By: 
    	
/s/ Bryan J. Carey
    
	
 
    	
 
    	
Name:
    	
Bryan J. Carey
    
	
 
    	
 
    	
Title: 
    	
Chief Financial Officer
    

 

 

	
 
    	
WELLS   FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Kent Davis
    
	
 
    	
 
    	
Name:
    	
Kent Davis
    
	
 
    	
 
    	
Title:
    	
Managing Director
    

 

[RTS - Amendment Agreement]

 

 

	
 
    	
WELLS   FARGO BANK, NATIONAL ASSOCIATION, as Collateral Agent, Issuing Bank
    
	
 
    	
and Swingline Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Kent Davis
    
	
 
    	
 
    	
Name:
    	
Kent Davis
    
	
 
    	
 
    	
Title:
    	
Managing Director
    

 

[RTS - Amendment Agreement]

 

 

	
 
    	
Wells Fargo Bank, National Association,
    
	
 
    	
as a Revolving Lender and a Term Lender
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Kent Davis
    
	
 
    	
 
    	
Name:
    	
Kent Davis
    
	
 
    	
 
    	
Title:
    	
Managing Director
    

 

 

	
 
    	
BARCLAYS BANK PLC,
    
	
 
    	
as a Revolving Lender
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Noam Azachi
    
	
 
    	
 
    	
Name:
    	
Noam Azachi
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

 

	
 
    	
BARCLAYS BANK PLC,
    
	
 
    	
as a Term Lender
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Noam Azachi
    
	
 
    	
 
    	
Name:
    	
Noam Azachi
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

 

	
 
    	
Beach Point SCF Loan LP,
    
	
 
    	
as a Term Lender
    
	
 
    	
 
    
	
 
    	
By: 
    	
Beach Point Capital Management LP,
    
	
 
    	
 
    	
its Investment Manager
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Carl Goldsmith
    
	
 
    	
 
    	
Name:
    	
Carl Goldsmith
    
	
 
    	
 
    	
Title:
    	
Senior Portfolio Manager
    

 

 

	
 
    	
Beach Point Loan Master Fund, L.P.
    
	
 
    	
as a Term Lender
    
	
 
    	
 
    
	
 
    	
By: 
    	
Beach Point Capital Management LP,
    
	
 
    	
 
    	
its Investment Manager
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Carl Goldsmith
    
	
 
    	
 
    	
Name:
    	
Carl Goldsmith
    
	
 
    	
 
    	
Title:
    	
Senior Portfolio Manager
    

 

 

	
 
    	
Black Diamond CLO 2006-1 (Cayman) LTD.,
    
	
 
    	
as a Revolving Lender and a Term Lender
    
	
 
    	
 
    
	
 
    	
By: 
    	
Black Diamond CLO 2006-1 Adviser, L.L.C.
    
	
 
    	
 
    	
As its Collateral Manager
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Stephen H. Deckoff
    
	
 
    	
 
    	
Name:
    	
Stephen H. Deckoff
    
	
 
    	
 
    	
Title:
    	
Managing Principal
    

 

 

	
 
    	
General Electric Capital Corporation,
    
	
 
    	
as a Revolving Lender and a Term Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Robert Wagner
    
	
 
    	
 
    	
Name:
    	
Robert Wagner
    
	
 
    	
 
    	
Title:
    	
Duly Authorized Signatory
    

 

 

	
 
    	
Morgan Stanley Bank, N.A.
    
	
 
    	
as a Revolving Lender and a Term Lender
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Alice Lee
    
	
 
    	
 
    	
Name:
    	
Alice Lee
    
	
 
    	
 
    	
Title:
    	
Authorized Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Morgan   Stanley Senior Funding, Inc.
    
	
 
    	
as   a Revolving Lender and a Term Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Alice Lee
    
	
 
    	
 
    	
Name:
    	
Alice Lee
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

 

	
 
    	
Oak Tree Capital Management, L.P.,
    
	
 
    	
solely in its capacity as investment manager on   behalf of 
    
	
 
    	
certain investment funds and separate accounts:
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Scott Graves
    
	
 
    	
 
    	
Name:
    	
Scott Graves
    
	
 
    	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Edgar Lee
    
	
 
    	
 
    	
Name:
    	
Edgar Lee
    
	
 
    	
 
    	
Title:
    	
Managing Director
    

 

 

	
 
    	
SunTrust Bank,
    
	
 
    	
as a Revolving Lender and a Term Lender
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Joshua Turner
    
	
 
    	
 
    	
Name:
    	
Joshua Turner
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

 

Exhibit A

 

[Amended and Restated Credit Agreement]

 

 

	
 
    	
 
    

AMENDED AND RESTATED CREDIT AGREEMENT

 

Dated as of August 28, 2013

 

among

 

RADIATION THERAPY SERVICES HOLDINGS, INC.,

 

RADIATION THERAPY SERVICES, INC.,
 as Borrower,

 

The Several Lenders from Time to Time Parties Hereto

 

and

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,
 as Administrative Agent, Collateral Agent, Issuing Bank and Swingline Lender,

 

SUNTRUST BANK,
 as Syndication Agent

 

GENERAL ELECTRIC CAPITAL CORPORATION,
 as Documentation Agent

 

WELLS FARGO SECURITIES, LLC,

SUNTRUST ROBINSON HUMPHREY, INC.,
 MORGAN STANLEY SENIOR FUNDING, INC.,

as Joint Lead Arrangers

 

and

 

WELLS FARGO SECURITIES, LLC,
 SUNTRUST ROBINSON HUMPHREY, INC.
 MORGAN STANLEY SENIOR FUNDING, INC.,
 as Joint Bookrunners

 

Cahill Gordon & Reindel LLP
 80 Pine Street
 New York, NY 10005

	
 
    

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    
	
SECTION 1
    
	
 
    
	
DEFINITIONS
    
	
1.1.
    	
Defined Terms
    	
1
    
	
1.2.
    	
Other Definitional Provisions
    	
39
    
	
1.3.
    	
UCC Terms
    	
40
    
	
1.4.
    	
Rounding
    	
40
    
	
1.5.
    	
References to Agreement and Laws
    	
40
    
	
1.6.
    	
Times of Day
    	
40
    
	
1.7.
    	
Timing of Payment or Performance
    	
40
    
	
 
    
	
SECTION 2
    
	
 
    
	
AMOUNT   AND TERMS OF COMMITMENTS
    
	
 
    	
 
    	
 
    
	
2.1.
    	
Term Loan Commitments
    	
41
    
	
2.2.
    	
Procedure for Term Loan Borrowings
    	
41
    
	
2.3.
    	
Repayment of Term Loans
    	
41
    
	
2.4.
    	
Revolving Commitments
    	
41
    
	
2.5.
    	
Procedure for Revolving Loan Borrowing
    	
41
    
	
2.6.
    	
Swingline Commitment
    	
42
    
	
2.7.
    	
Procedure for Swingline Borrowing; Refunding of Swingline   Loans
    	
42
    
	
2.8.
    	
Commitment Fees, Etc.
    	
44
    
	
2.9.
    	
Termination or Reduction of Commitments
    	
44
    
	
2.10.
    	
Optional Prepayments
    	
44
    
	
2.11.
    	
Mandatory Prepayments
    	
45
    
	
2.12.
    	
Conversion and Continuation Options
    	
45
    
	
2.13.
    	
Limitations on Eurodollar Tranches
    	
46
    
	
2.14.
    	
Interest Rates and Payment Dates
    	
46
    
	
2.15.
    	
Computation of Interest and Fees
    	
46
    
	
2.16.
    	
Inability to Determine Interest Rate
    	
47
    
	
2.17.
    	
Pro Rata Treatment and Payments
    	
47
    
	
2.18.
    	
Requirements of Law
    	
49
    
	
2.19.
    	
Taxes
    	
50
    
	
2.20.
    	
Indemnity
    	
52
    
	
2.21.
    	
Change of Lending Office
    	
53
    
	
2.22.
    	
Replacement of Lenders
    	
53
    
	
2.23.
    	
Defaulting Lenders
    	
54
    
	
2.24.
    	
Cash Collateralization
    	
56
    
	
2.25.
    	
Extension Offers
    	
57
    
	
2.26.
    	
Change of Control
    	
58
    

 

i

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
 
    	
SECTION 3
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
LETTERS   OF CREDIT
    	
 
    
	
 
    	
 
    	
 
    
	
3.1.
    	
Letters of Credit
    	
58
    
	
3.2.
    	
Procedure for Issuance of Letter of Credit
    	
59
    
	
3.3.
    	
Fees and Other Charges
    	
59
    
	
3.4.
    	
L/C Participations
    	
59
    
	
3.5.
    	
Reimbursement Obligation of the Borrower
    	
60
    
	
3.6.
    	
Obligations Absolute
    	
60
    
	
3.7.
    	
Letter of Credit Payments
    	
61
    
	
3.8.
    	
Applications
    	
61
    
	
3.9.
    	
Obligations of Certain Issuing Banks
    	
61
    
	
 
    	
 
    	
 
    
	
SECTION 4
    
	
 
    
	
REPRESENTATIONS   AND WARRANTIES
    
	
 
    
	
4.1.
    	
Financial Condition
    	
61
    
	
4.2.
    	
No Change
    	
61
    
	
4.3.
    	
Existence; Compliance with Law
    	
61
    
	
4.4.
    	
Power; Authorization; Enforceable Obligations
    	
62
    
	
4.5.
    	
No Legal Bar
    	
62
    
	
4.6.
    	
Litigation
    	
62
    
	
4.7.
    	
No Default
    	
62
    
	
4.8.
    	
Ownership of Property; Liens
    	
63
    
	
4.9.
    	
Licenses, Intellectual Property
    	
63
    
	
4.10.
    	
Taxes
    	
63
    
	
4.11.
    	
Federal Regulations
    	
63
    
	
4.12.
    	
Labor Matters
    	
63
    
	
4.13.
    	
ERISA
    	
63
    
	
4.14.
    	
Investment Company Act; Other Regulations
    	
64
    
	
4.15.
    	
Subsidiaries
    	
64
    
	
4.16.
    	
Use of Proceeds
    	
64
    
	
4.17.
    	
Environmental Matters
    	
64
    
	
4.18.
    	
Accuracy of Information, Etc.
    	
65
    
	
4.19.
    	
Security Documents
    	
66
    
	
4.20.
    	
Solvency
    	
66
    
	
4.21.
    	
Senior Indebtedness
    	
66
    
	
4.22.
    	
Insurance
    	
66
    
	
4.23.
    	
Anti-Terrorism Law
    	
67
    
	
4.24.
    	
Brokers’ Fees
    	
67
    
	
 
    	
 
    	
 
    
	
SECTION 5
    
	
 
    
	
CONDITIONS   PRECEDENT
    
	
 
    
	
5.1.
    	
[Reserved]
    	
67
    
	
5.2.
    	
Conditions to Each Extension of Credit
    	
67
    

 

ii

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
 
    	
SECTION 6
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
AFFIRMATIVE   COVENANTS
    	
 
    
	
 
    	
 
    	
 
    
	
6.1.
    	
Financial Statements
    	
68
    
	
6.2.
    	
Certificates; Other Information
    	
69
    
	
6.3.
    	
Payment of Taxes
    	
70
    
	
6.4.
    	
Maintenance of Existence; Compliance
    	
71
    
	
6.5.
    	
Maintenance of Property; Insurance
    	
71
    
	
6.6.
    	
Inspection of Property; Books and Records; Discussions
    	
71
    
	
6.7.
    	
Notices
    	
72
    
	
6.8.
    	
Environmental Laws
    	
72
    
	
6.9.
    	
Additional Collateral, Etc.
    	
73
    
	
6.10.
    	
Security Interests; Further Assurances
    	
74
    
	
6.11.
    	
Compliance with ERISA
    	
75
    
	
6.12.
    	
Use of Proceeds
    	
75
    
	
6.13.
    	
[Reserved]
    	
75
    
	
6.14.
    	
[Reserved]
    	
75
    
	
6.15.
    	
Modifications of OnCure Note Documents
    	
75
    
	
 
    	
 
    	
 
    
	
SECTION 7
    
	
 
    
	
NEGATIVE   COVENANTS
    
	
 
    
	
7.1.
    	
Financial Condition Covenant
    	
76
    
	
7.2.
    	
Indebtedness
    	
76
    
	
7.3.
    	
Liens
    	
78
    
	
7.4.
    	
Merger, Consolidation and Sale of Assets
    	
78
    
	
7.5.
    	
Disposition of Property
    	
80
    
	
7.6.
    	
Restricted Payments
    	
82
    
	
7.7.
    	
Payment Restrictions Affecting Restricted Subsidiaries
    	
86
    
	
7.8.
    	
[Reserved]
    	
88
    
	
7.9.
    	
Transactions with Affiliates
    	
88
    
	
7.10.
    	
[Reserved]
    	
90
    
	
7.11.
    	
[Reserved]
    	
90
    
	
7.12.
    	
Changes in Fiscal Periods
    	
90
    
	
7.13.
    	
Lines of Business
    	
90
    
	
 
    	
 
    	
 
    
	
SECTION 8
    
	
 
    
	
EVENTS OF   DEFAULT
    
	
 
    
	
SECTION 9
    
	
 
    
	
THE   AGENTS
    
	
 
    
	
9.1.
    	
Appointment
    	
93
    
	
9.2.
    	
Delegation of Duties
    	
93
    
	
9.3.
    	
Exculpatory Provisions
    	
93
    
	
9.4.
    	
Reliance by Administrative Agent and Collateral Agent
    	
94
    
	
9.5.
    	
Notice of Default
    	
94
    

 

iii

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
9.6.
    	
Non-Reliance on Agents and Other Lenders
    	
94
    
	
9.7.
    	
Indemnification
    	
95
    
	
9.8.
    	
Agent in Its Individual Capacity
    	
95
    
	
9.9.
    	
Successor Administrative Agent or Collateral Agent
    	
95
    
	
9.10.
    	
Withholding Tax
    	
96
    
	
9.11.
    	
Joint Lead Arrangers, Joint Bookrunners, Syndication Agent   and Documentation Agent
    	
96
    
	
9.12.
    	
Intercreditor Agreement
    	
96
    
	
 
    	
 
    	
 
    
	
SECTION 10
    
	
 
    
	
MISCELLANEOUS
    
	
 
    
	
10.1.
    	
Amendments and Waivers
    	
97
    
	
10.2.
    	
Notices
    	
98
    
	
10.3.
    	
No Waiver; Cumulative Remedies
    	
99
    
	
10.4.
    	
Survival of Representations and Warranties
    	
100
    
	
10.5.
    	
Payment of Expenses
    	
100
    
	
10.6.
    	
Successors and Assigns; Participations and Assignments
    	
101
    
	
10.7.
    	
Adjustments; Set-off
    	
104
    
	
10.8.
    	
Counterparts
    	
104
    
	
10.9.
    	
Severability
    	
104
    
	
10.10.
    	
Integration
    	
104
    
	
10.11.
    	
GOVERNING LAW
    	
104
    
	
10.12.
    	
Submission to Jurisdiction; Waivers
    	
105
    
	
10.13.
    	
Acknowledgements
    	
105
    
	
10.14.
    	
Releases of Guarantees and Liens
    	
106
    
	
10.15.
    	
Confidentiality
    	
106
    
	
10.16.
    	
WAIVERS OF JURY TRIAL
    	
107
    
	
10.17.
    	
USA PATRIOT Act
    	
107
    
	
10.18.
    	
No Advisory or Fiduciary Responsibility
    	
107
    
	
10.19.
    	
Subject to Intercreditor Agreement
    	
108
    
	
10.20.
    	
Interest Rate Limitation
    	
108
    

 

iv

 

SCHEDULES:

 

1.1A                                              Commitments

1.1C                                              Unrestricted Subsidiaries

1.1E                                               Existing Investments

4.4                                                       Consents, Authorizations, Filings and Notices

4.6                                                       Litigation

4.8                                                       Real Property

4.9                                                       Licenses

4.15(a)                                 Organizational Structure

4.15(b)                                 Subsidiaries

4.19(a)                                 UCC Filing Jurisdictions

4.22                                                Insurance

4.24                                                Brokers’ Fees

7.2(c)                                         Existing Indebtedness

10.2                                                Borrower’s Website

 

EXHIBITS:

 

A                                                               Form of Assignment and Assumption

B                                                               Form of Borrowing Notice

C                                                               Form of Interest Election Request

D                                                               Form of Guaranty and Collateral Agreement

E-1                                                     Form of Revolving Note

E-2                                                     Form of Swingline Note

E-3                                                     Form of Term Note

F                                                                 [RESERVED]

G                                                               [RESERVED]

H                                                              Form of Compliance Certificate

I-1                                                        Form of United States Tax Compliance Certificate for Foreign Lenders Who Are Not Partnerships for U.S. Federal Income Tax Purposes

I-2                                                        Form of United States Tax Compliance Certificate for Foreign Lenders Who Are Partnerships for U.S. Federal Income Tax Purposes

I-3                                                        Form of United States Tax Compliance Certificate for Non-U.S. Participants Who Are Not Partnerships for U.S. Federal Income Tax Purposes

I-4                                                        Form of United States Tax Compliance Certificate for Non-U.S. Participants Who Are Partnerships for U.S. Federal Income Tax Purposes

J                                                                   [RESERVED]

K                                                              Form of Account Designation Notice

L                                                                Form of Mortgage

 

v

 

AMENDED AND RESTATED CREDIT AGREEMENT (as amended, restated, supplemented or otherwise modified from time to time in accordance with the terms hereof, this “Agreement”) dated as of August 28, 2013, among Radiation Therapy Services Holdings, Inc., a Delaware corporation (together with its successors, “Parent”), Radiation Therapy Services, Inc., a Florida corporation (together with its successors, the “Borrower”), the several banks and other financial institutions or entities from time to time parties to this Agreement (the “Lenders”) and Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent, collateral agent, issuing bank and swingline lender.

 

RECITALS

 

WHEREAS, pursuant to the Amendment Agreement, the parties hereto have agreed to amend and restate in its entirety the Original Credit Agreement and to replace it in its entirety with this Agreement on the terms and subject to the conditions set forth herein.  This Agreement is the Amended and Restated Credit Agreement contemplated by the Amendment Agreement.

 

NOW, THEREFORE, in consideration of the premises and the agreements hereinafter set forth, the parties hereto hereby agree as follows:

 

SECTION 1

 

DEFINITIONS

 

1.1.                            Defined Terms.  As used in this Agreement, the terms listed in this Section 1.1 shall have the respective meanings set forth in this Section 1.1.

 

“ABR”:  shall mean, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus 1⁄2 of 1%, (c) the Eurodollar Rate for an Interest Period of one month beginning on such day (or if such day is not a Business Day, the immediately preceding Business Day) plus 1.0% and (d) solely with respect to the Term Loans, 2.0%.  For purposes hereof, “Prime Rate”:  shall mean the rate of interest per annum publicly announced from time to time by Wells Fargo as its prime rate (the Prime Rate not being intended to be the lowest or best rate of interest charged by Wells Fargo, in connection with extensions of credit to debtors).  Any change in the ABR due to a change in the Prime Rate or the Federal Funds Effective Rate shall be effective as of the opening of business on the effective day of such change in the Prime Rate or the Federal Funds Effective Rate, respectively.

 

“ABR Loans”:  shall mean Loans the rate of interest applicable to which is based upon the ABR.

 

“Accepting Lender”: shall have the meaning set forth in Section 2.25.

 

“Account Designation Notice”:  shall mean the Account Designation Notice dated as of the Closing Date from the Borrower to the Administrative Agent in substantially the form attached to the Original Credit Agreement as Exhibit K.

 

“Acquired EBITDA”:  shall mean, with respect to any Acquired Entity or Business for any period, the amount for such period of Consolidated EBITDA of such Acquired Entity or Business, all as determined on a consolidated basis for such Acquired Entity or Business.

 

1

 

“Acquired Entity or Business”:  shall mean any Person, property, business or asset acquired (other than in the ordinary course of business) during a period (but not the Acquired EBITDA of any related Person, business or assets to the extent not so acquired), to the extent not subsequently sold, transferred or otherwise disposed of by the acquiring Person or its Subsidiaries during such period.

 

“Acquired Indebtedness” means Indebtedness of a Person or any of its Subsidiaries existing at the time such Person becomes a Restricted Subsidiary of the Borrower or at the time it merges or consolidates with or into the Borrower or any of its Subsidiaries or assumed in connection with the acquisition of assets from such Person and in each case not incurred by such Person in connection with, or in anticipation or contemplation of, such Person becoming a Restricted Subsidiary of the Borrower or such acquisition, merger or consolidation.

 

“Adjustment Date”:  shall have the meaning set forth in the definition of Pricing Grid.

 

“Administrative Agent”:  shall mean Wells Fargo, as the administrative agent for the Lenders under this Agreement and the other Loan Documents, together with any of its successors permitted under Section 9.

 

“Administrative Agent Fee Letter” shall mean the letter dated the Closing Date between the Administrative Agent and the Borrower relating to certain fees payable to the Administrative Agent in its capacity as such.

 

“Affiliate” means, with respect to any specified Person, any other Person who directly or indirectly through one or more intermediaries controls, or is controlled by, or is under common control with, such specified Person.  The term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative of the foregoing.

 

“Agents”:  shall mean the collective reference to the Joint Lead Arrangers, the Joint Bookrunners, the Syndication Agent, the Documentation Agent, the Collateral Agent and the Administrative Agent.

 

“Aggregate Exposure”:  shall mean, with respect to any Lender at any time, an amount equal to the sum of (i) the aggregate then unpaid principal amount of such Lender’s Term Loans and (ii) the amount of such Lender’s Commitment then in effect or, if the Commitments of the Lenders have been terminated, the amount of such Lender’s Extensions of Credit then outstanding.

 

“Aggregate Exposure Percentage”:  shall mean, with respect to any Lender at any time, the ratio (expressed as a percentage) of such Lender’s Aggregate Exposure at such time to the Aggregate Exposure of all Lenders at such time.

 

“Agreement”:  shall have the meaning set forth in the preamble.

 

“Amendment Agreement” means that certain Amendment Agreement to this Agreement dated as of August 28, 2013 entered into among Borrower, Parent, the Subsidiary Guarantors, the Lenders signatory thereto and the Administrative Agent.

 

“Amendment and Restatement Effective Date” has the meaning set forth in the Amendment Agreement.

 

2

 

“Applicable Cash” means at any date the aggregate amount of unrestricted cash and Cash Equivalents of (x) Borrower, (y) the Subsidiary Guarantors and (z) to the extent not exceeding the percentage of the outstanding Capital Stock of such Domestic Subsidiary held (directly or indirectly) by Borrower at such date, any Domestic Subsidiary that is not a Subsidiary Guarantor (other than Medical Developers and its Subsidiaries); provided further that no cash or Cash Equivalents may be included in this clause (z) if such Domestic Subsidiary is prohibited from distributing the cash or Cash Equivalents to the Borrower by the terms of any Contractual Obligation (other than any Loan Document) or Requirement of Law applicable to such Domestic Subsidiary and such Domestic Subsidiary is prohibited from making intercompany loans of its cash to Borrower or a Subsidiary Guarantor; provided further that, for so long as the OnCure Notes are outstanding, Applicable Cash shall not include cash or Cash Equivalents of OnCure or any of its Subsidiaries.

 

“Applicable Margin”:  shall mean (x) with respect to Term Loans which are (a) Eurodollar Loans, 6.50% per annum and (b) ABR Loans, 5.50% per annum and (y) with respect to Revolving Loans, the Applicable Margin will be determined pursuant to the Pricing Grid.

 

“Applicable Percentage”:  shall mean, as to any Lender at any time, the percentage which such Lender’s Commitment then constitutes of the Total Commitments or, at any time after the Commitments shall have expired or terminated, the percentage which the aggregate principal amount of such Lender’s Revolving Loans then outstanding constitutes of the aggregate principal amount of the Revolving Loans then outstanding, provided that, in the event that the Revolving Loans are paid in full prior to the reduction to zero of the Total Extensions of Credit, the Applicable Percentages shall be determined in a manner designed to ensure that the other outstanding Extensions of Credit shall be held by the Lenders on a comparable basis.

 

“Applicable Sum” means, as of any date, the Applicable Cash as of such date plus the Available Commitments of all the Revolving Lender as of such date.

 

“Application”:  shall mean an application, in such form as the Issuing Bank may reasonably specify from time to time, requesting the Issuing Bank to open a Letter of Credit.

 

“Approved Fund”:  shall mean 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.

 

“Asset Acquisition”: shall mean (1) an Investment by the Borrower or any Restricted Subsidiary of the Borrower in any other Person pursuant to which such Person shall become a Restricted Subsidiary of the Borrower or any Restricted Subsidiary of the Borrower, or shall be merged with or into the Borrower or any Restricted Subsidiary of the Borrower, or (2) the acquisition by the Borrower or any Restricted Subsidiary of the Borrower of the assets of any Person (other than a Restricted Subsidiary of the Borrower) which constitute all or substantially all of the assets of such Person or comprises any division or line of business of such Person or any other properties or assets of such Person other than in the ordinary course of business.

 

“Asset Sale”:  shall mean any direct or indirect sale, issuance, conveyance, transfer, lease (other than operating leases entered into in the ordinary course of business), assignment or other voluntary transfer for value of any property of the Borrower or any property of any Restricted Subsidiary of the Borrower by the Borrower or any of its Restricted Subsidiaries (including any Sale and Leaseback Transaction) to any Person other than the Borrower or a Restricted Subsidiary of the Borrower (or a Person who becomes a Restricted Subsidiary of the Borrower in connection with such transaction) of:

 

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(1)                                 any Capital Stock of any Restricted Subsidiary of the Borrower; or

 

(2)                                 any other property or assets (other than Capital Stock of the Borrower) of the Borrower or any Restricted Subsidiary of the Borrower other than in the ordinary course of business; provided, however, that asset sales or other dispositions shall not include:

 

(a)                                 a transaction or series of related transactions for which the Borrower or its Restricted Subsidiaries receive aggregate consideration of less than $5,000,000;

 

(b)                                 the sale, lease, conveyance, disposition or other transfer of all or substantially all of the assets of the Borrower or a Guarantor as permitted under Section 7.4;

 

(c)                                  any Restricted Payment permitted by Section 7.6;

 

(d)                                 the sale or discount of accounts receivable, but only in connection with the compromise or collection thereof;

 

(e)                                  disposals or replacements of obsolete, damaged or worn out equipment;

 

(f)                                   any conversion of Cash Equivalents into cash or any form of Cash Equivalents;

 

(g)                                  any surrender or waiver of contract rights or the settlement, release or surrender of contract, tort or other litigation claims;

 

(h)                                 any termination or expiration of any lease or sublease of real property in accordance with its terms;

 

(i)                                     creating or granting of Liens (and any sale or disposition thereof or foreclosure thereon) not prohibited by this Agreement and the other Loan Documents;

 

(j)                                    condemnations on or the taking by eminent domain of property or assets; and

 

(k)                                 any sale of Capital Stock in, or Indebtedness or other securities of, an Unrestricted Subsidiary.

 

“Assignment and Assumption”:  shall mean an Assignment and Assumption, substantially in the form of Exhibit A.

 

“Available Commitment”:  shall mean, as to any Lender at any time, an amount equal to the excess, if any, of (a) such Lender’s Commitment then in effect over (b) such Lender’s Extensions of Credit then outstanding.

 

“Benefitted Lender”:  shall have the meaning set forth in Section 10.7(a).

 

“Board”:  shall mean the Board of Governors of the Federal Reserve System of the United States (or any successor).

 

“Board of Directors” shall mean, 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

 

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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.

 

“Board Resolution”: shall mean, with respect to any Person, a copy of a resolution certified by the Secretary or an Assistant Secretary of such Person to have been duly adopted by the Board of Directors of such Person and to be in full force and effect on the date of such certification, and delivered to the Administrative Agent.

 

“Borrowing Date”:  shall mean any Business Day specified by the Borrower as a date on which the Borrower requests the relevant Lenders to make Loans hereunder.

 

“Borrowing Notice”:  shall mean with respect to any request for a borrowing of Loans hereunder, a notice from the Borrower, substantially in the form of, and containing the information prescribed by, Exhibit B, delivered to the Administrative Agent.

 

“Broker Dealer Subsidiary”:  shall mean any Subsidiary that is registered as a broker dealer pursuant to Section 15 of the Exchange Act (as in effect from time to time) or that is regulated as a broker dealer or underwriter under any foreign securities law.

 

“Business Day”:  shall mean a day other than a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to close, provided that, with respect to notices and determinations in connection with, and payments of principal and interest on, Eurodollar Loans, such day is also a day for trading by and between banks in Dollar deposits in the interbank eurodollar market.

 

“Capital Stock” means:

 

(1)                                 with respect to any Person that is a corporation, any and all shares, interests, participations or other equivalents (however designated and whether or not voting) of corporate stock, including each class of Common Stock and Preferred Stock of such Person, and all options, warrants or other rights to purchase or acquire any of the foregoing; and

 

(2)                                 with respect to any Person that is not a corporation, any and all partnership, membership or other equity interests of such Person, and all options, warrants or other rights to purchase or acquire any of the foregoing.

 

“Capitalized Lease Obligation” means, as to any Person, the obligations of such Person under a lease that are required to be classified and accounted for as capital lease obligations under GAAP and, for purposes of this definition, the amount of such obligations at any date shall be the capitalized amount of such obligations at such date, determined in accordance with GAAP.

 

“Cash Collateralize” shall mean, to pledge and deposit with or deliver to the Administrative Agent, for the benefit of the Issuing Bank or Revolving Lenders, as collateral for L/C Exposure or obligations of Revolving Lenders to fund their respective undivided interests in respect of Letters of Credit pursuant to Section 3.4, cash or deposit account balances or, if the Administrative Agent and the Issuing Bank shall agree in their reasonable discretion, other credit support, in each case pursuant to documentation in form and substance reasonably satisfactory to the Administrative Agent and the Issuing Bank.  “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”:  shall mean (1) marketable direct obligations issued by, or unconditionally guaranteed by, the United States Government or issued by any agency thereof and backed by the full faith and credit of the United States, in each case maturing within one year from the date of acquisition thereof; (2) marketable direct obligations issued by any state of the United States of America or any political subdivision of any such state or any public instrumentality thereof maturing within one year from the date of acquisition thereof and, at the time of acquisition, having one of the two highest ratings obtainable from either Standard & Poor’s Ratings Group (“S&P”) or Moody’s Investors Service, Inc. (“Moody’s”); (3) commercial paper maturing no more than one year from the date of creation thereof and, at the time of acquisition, having a rating of at least A-1 from S&P or at least P-1 from Moody’s; (4) certificates of deposit or bankers’ acceptances maturing within one year from the date of acquisition thereof issued by any bank organized under the laws of the United States of America or any state thereof or the District of Columbia or any U.S.  branch of a foreign bank having at the date of acquisition thereof combined capital and surplus of not less than $250.0 million; (5) repurchase obligations with a term of not more than seven days for underlying securities of the types described in clause (1) above entered into with any bank meeting the qualifications specified in clause (4) above; and (6) investments in money market funds which invest substantially all their assets in securities of the types described in clauses (1) through (5) above.

 

“Cash Management Agreement”: shall mean any agreement to provide Cash Management Services.

 

“Cash Management Bank”: shall mean any Person that, at the time it enters into a Cash Management Agreement, is a Lender or an Affiliate of a Lender, in its capacity as a party to such Cash Management Agreement.

 

“Cash Management Services” means any of the following to the extent not constituting a line of credit (other than an overnight draft facility that is not in default): ACH transactions, treasury and/or cash management services, credit cards, corporate purchase cards, including controlled disbursement services, overdraft facilities, foreign exchange facilities, deposit and other accounts and merchant services.

 

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

 

(1)                                 any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of the Borrower and its Restricted Subsidiaries taken as a whole to any Person or group of related Persons for purposes of Section 13(d) of the Exchange Act (a “Group”) (whether or not otherwise in compliance with the provisions of the Loan Documents), other than to the Permitted Holders;

 

(2)                                 the approval by the holders of Capital Stock of the Borrower of any plan or proposal for the liquidation or dissolution of the Borrower (whether or not otherwise in compliance with the provisions of the Loan Documents);

 

(3)                                 the Borrower becomes aware (whether by way of a report or any other filing pursuant to Section 13(d) of the Exchange Act, proxy, vote, written notice or otherwise) that any Person or Group (other than the Permitted Holders and any entity formed for the purpose of owning Capital Stock of the Borrower) is or has become the beneficial owner, directly or indirectly, of shares representing more than 50% of the aggregate ordinary voting power represented by the issued and outstanding Capital Stock of the Borrower; or

 

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(4)                                 the replacement of a majority of the Board of Directors of the Borrower over a two year period from the directors who constituted the Board of Directors of the Borrower at the beginning of such period, and such replacement shall not have been approved by a vote of at least a majority of the Board of Directors of the Borrower then still in office who either were members of such Board of Directors at the beginning of such period or whose election as a member of such Board of Directors was previously so approved.

 

For purposes of this definition (i) a Person shall not be deemed to have beneficial ownership of securities subject to a stock purchase agreement, merger agreement or similar agreement until the consummation of the transactions contemplated by such agreement and (ii) any holding company whose only significant asset is Capital Stock of the Borrower shall not itself be considered a Person or Group for purposes of clause (1) or (3) above.

 

“Class”: shall mean (i) with respect to Commitments, all Commitments with the same Termination Date and (ii) with respect to any Loans, its character as a Revolving Loan, a Swingline Loan, a Term Loan or any other group of Loans (whether made pursuant to new Commitments or by way of conversion or extension of existing Loans) designated as a “Class” in an Extension Agreement.

 

“Closing Costs”:  shall mean non-recurring out-of-pocket costs, fees, commissions, bonuses and expenses, including without limitation attorneys’ costs, fees and expenses, investment banking costs, fees and expenses; sponsor costs, fees and expenses; non-recurring costs, fees and expenses payable under the Administrative Agent Fee Letter, in each case incurred and paid by the Permitted Holders or any of the Loan Parties in connection with the Transactions, this Agreement and the other Loan Documents and the transactions contemplated hereby and thereby or incurred in furtherance thereof.

 

“Closing Date”:  shall mean May 10, 2012.

 

“Code”:  shall mean the Internal Revenue Code of 1986, as amended from time to time.

 

“Collateral”:  shall mean all property of the Loan Parties, now owned or hereafter acquired, upon which a Lien is purported to be created by any Security Document.

 

“Collateral Agent”:  shall mean Wells Fargo, as the collateral agent for the Secured Parties under this Agreement and the other Loan Documents, together with any of its successors in such capacity.

 

“Collateralized Obligations” means all obligations for principal, premium, interest, penalties, fees, indemnifications, reimbursements, damages and other liabilities payable under the documentation governing any Indebtedness.

 

“Commitment”:  shall mean, as to any Person, the obligation of such Person, if any, to make Revolving Loans and participate or be assigned interests in Swingline Loans and Letters of Credit (in each case, whether or not such Loans or Letters of Credit are actually made, issued or drawn) in an aggregate principal and/or face amount equal to the amount set forth under “Commitment” on Schedule 1.1A hereto or in the Assignment and Assumption pursuant to which such Person became a party hereto, as the same may be changed from time to time pursuant to the terms hereof.  The amount of the Total Commitments of the Revolving Lenders as of the Closing Date is $140,000,000 and the Total Commitments shall be reduced, pursuant to Section 2.9(b), as of the Amendment and Restatement Effective Date to $100,000,000.

 

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“Commitment Fee Rate”:  shall mean a rate per annum as determined pursuant to the Pricing Grid.

 

“Commitment Period”:  shall mean the period from and including the Closing Date to the Termination Date.

 

“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.

 

“Common Stock” of any Person means any and all shares, interests or other participations in, and other equivalents (however designated and whether voting or non-voting) of such Person’s common stock, whether outstanding on the Closing Date or issued after the Closing Date, and includes, without limitation, all series and classes of such common stock.

 

“Commonly Controlled Entity”:  shall mean an entity, whether or not incorporated, that is under common control with the Borrower within the meaning of Section 4001 of ERISA or is part of a group of entities that includes the Borrower and that is treated as a single employer under Section 414 of the Code.

 

“Compliance Certificate”:  shall mean a certificate duly executed by a Responsible Officer substantially in the form of Exhibit H.

 

“Consolidated EBITDA”:  shall mean, with respect to any Person, for any period, the sum (without duplication) of (1) Consolidated Net Income; and (2) to the extent Consolidated Net Income has been reduced thereby: (a) all income, franchise or similar taxes of such Person and its Restricted Subsidiaries paid or accrued in accordance with GAAP for such period; (b) Consolidated Fixed Charges; and (c) Consolidated Non-cash Charges less any non-cash items increasing Consolidated Net Income (excluding any items which represent the reversal of any accrual of, or cash reserve for, anticipated cash charges made in any prior period or which will result in the receipt of cash in a future period or the amortization of lease incentives) for such period, all as determined on a consolidated basis for such Person and its Restricted Subsidiaries in accordance with GAAP; (d) any expenses or charges incurred in connection with any offering of Borrower’s or Parent’s Capital Stock, Permitted Investment, acquisition, recapitalization or Indebtedness permitted to be incurred under this Agreement and the Loan Documents (in each case whether or not consummated); and (e) the amount of management, monitoring, consulting, advisory fees, termination payments and related expenses paid to the Permitted Holders (or any accruals relating to such fees and related expenses) during such period pursuant to the Management Agreement.

 

“Consolidated Fixed Charge Coverage Ratio” means, with respect to any Person, the ratio of Consolidated EBITDA of such Person during the four full fiscal quarters (the “Four Quarter Period”) ending prior to the date of the transaction giving rise to the need to calculate the Consolidated Fixed Charge Coverage Ratio (the “Transaction Date”) for which internal financial statements are available to Consolidated Fixed Charges of such Person for the Four Quarter Period.  In addition to and without limitation of the foregoing, for purposes of this definition, “Consolidated EBITDA” and “Consolidated Fixed Charges” shall be calculated after giving effect on a pro forma basis for the period of such calculation to:

 

(1)                                 the incurrence or repayment of any Indebtedness of such Person or any of its Restricted Subsidiaries (and the application of the proceeds thereof) giving rise to the need to make such calculation and any incurrence or repayment of other Indebtedness (and the application of the proceeds thereof), other than the incurrence or repayment of Indebtedness in

 

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the ordinary course of business for working capital purposes pursuant to working capital facilities, occurring during the Four Quarter Period or at any time subsequent to the last day of the Four Quarter Period and on or prior to the Transaction Date, as if such incurrence or repayment, as the case may be (and the application of the proceeds thereof), occurred on the first day of the Four Quarter Period; and

 

(2)                                 any asset sales or other dispositions or Asset Acquisitions that occurred during the Four Quarter Period or after the end of the Four Quarter Period and on or prior to the Transaction Date (including without limitation, any Asset Acquisition giving rise to the need to make such calculation as a result of such Person or one of its Restricted Subsidiaries (including any Person who becomes a Restricted Subsidiary as a result of the Asset Acquisition) incurring, assuming or otherwise being liable for Acquired Indebtedness and also including any Consolidated EBITDA attributable to the assets which are the subject of the Asset Acquisition or asset sale or other disposition) and the reduction in costs and related adjustments (including, without limitation, the elimination of physician and shareholder compensation, and the normalization of rental expense) that (i) were directly attributable to such Asset Acquisition calculated on a basis that is consistent with Regulation S-X under the Securities Act as in effect on the Closing Date or (ii) were actually implemented by the business that was the subject of any such Asset Acquisition prior to the Transaction Date that are supportable and quantifiable by the underlying accounting records of such business or (iii) relate to the business that is the subject of any such Asset Acquisition and that the Borrower reasonably determines are probable based upon specifically identifiable actions to be taken within six months of the date of the Asset Acquisition), as if all such reductions in costs had been effected as of the beginning of such period.  Notwithstanding the foregoing, pro forma adjustments in respect of any Asset Acquisition of an Acquired Entity or Business for which the actual Acquired EBITDA cannot be determined due to the absence of reliable financial statements, an adjustment equal to the Acquired EBITDA for such Acquired Entity or Business for the relevant period preceding the date of such Asset Acquisition, as estimated in good faith by the chief financial officer of the Borrower shall be permitted.

 

Furthermore, in calculating “Consolidated Fixed Charges” for purposes of determining the denominator of this “Consolidated Fixed Charge Coverage Ratio”:

 

(1)                                 interest on Indebtedness being given a pro forma effect which is determined on a fluctuating basis as of the Transaction Date and which will continue to be so determined thereafter shall be deemed to have accrued at a fixed rate per annum equal to the rate of interest on such Indebtedness in effect on the Transaction Date; and

 

(2)                                 notwithstanding clause (1) above, interest on Indebtedness determined on a fluctuating basis, to the extent such interest is covered by agreements relating to Interest Swap Obligations, shall be deemed to accrue at the rate per annum resulting after giving effect to the operation of such agreements.

 

“Consolidated Fixed Charges”: shall mean, with respect to any Person for any period, the sum, without duplication, of:

 

(1)                                 Consolidated Interest Expense; plus

 

(2)                                 the amount of all cash dividend payments on any series of Disqualified Capital Stock of such Person and, to the extent permitted under this Agreement, its Restricted

 

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Subsidiaries (other than dividends paid by a Restricted Subsidiary of such Person to such Person or to a Restricted Subsidiary of such Person) paid during such period.

 

“Consolidated Interest Expense”:  shall mean, with respect to any Person for any period, the sum of, without duplication: (1) the aggregate of the interest expense of such Person and its Restricted Subsidiaries for such period determined on a consolidated basis in accordance with GAAP, including without limitation:  (a) any amortization of debt discount and amortization or write-off of deferred financing costs; (b) the net costs under Interest Swap Obligations; (c) all capitalized interest; and (d) the interest portion of any deferred payment obligation; but excluding amortization of deferred financing fees or expensing of any bridge or other financing fees and any loss on the early extinguishment of Indebtedness; and (2) the interest component of Capitalized Lease Obligations paid, accrued and/or scheduled to be paid or accrued by such Person and its Restricted Subsidiaries during such period as determined on a consolidated basis in accordance with GAAP.

 

“Consolidated Net Income”:  shall mean, with respect to any Person, for any period, the aggregate net income (or loss) of such Person and its Restricted Subsidiaries for such period on a consolidated basis, determined in accordance with GAAP; provided that there shall be excluded therefrom: (1) after tax gains (or losses) from Asset Sales (without regard to the $5,000,000 million limitation set forth in the definition thereof) or abandonments or reserves relating thereto; (2) after tax extraordinary, unusual or nonrecurring gains (or losses), costs, charges or expenses (including, without limitation, severance, relocation, transition and other restructuring costs and litigation settlements or losses and non-compete payments); (3) solely for the purpose of determining the amount available for Restricted Payments under clause (iii) of the first paragraph of Section 7.6, the net income (or loss) of any Restricted Subsidiary of the referent Person to the extent that the declaration of dividends or similar distributions by that Restricted Subsidiary of that income is restricted by a contract, operation of law or otherwise; unless such restriction with respect to the payment of dividends or similar distributions has been legally waived and except to the extent of cash dividends or distributions paid to the referent Person or to another Restricted Subsidiary of the referent Person by such Person; (4) the net income (or loss) of any Person, other than a Restricted Subsidiary of the referent Person, except to the extent of cash dividends or distributions paid to the referent Person or to a Restricted Subsidiary of the referent Person by such Person; (5) net after-tax income or loss attributable to discontinued operations (including, without limitation, operations disposed of during such period); (6) in the case of a successor to the referent Person by consolidation or merger or as a transferee of the referent Person’s assets, any earnings of the successor corporation prior to such consolidation, merger or transfer of assets; (7) non-cash compensation charges, including any such charges arising from stock options, restricted stock grants or other equity incentive programs; (8) any net after-tax gains or losses and all fees and expenses or charges relating thereto attributable to the early extinguishment of Indebtedness; (9) the effect of any non-cash items resulting from any amortization, write-up, write-down or write-off of assets (including intangible assets, goodwill and deferred financing costs in connection with any future acquisition, disposition, merger, consolidation or similar transaction or any other non-cash impairment charges incurred subsequent to the Closing Date resulting from the application of SFAS Nos. 141, 142 or 144 or other accounting pronouncements relating to purchase accounting); and (10) any net gain or loss resulting from Hedging Obligations (including pursuant to the application of SFAS No. 133).

 

“Consolidated Non-cash Charges” means, with respect to any Person, for any period, the aggregate depreciation, amortization and other non-cash charges or expenses of such Person and its Restricted Subsidiaries reducing Consolidated Net Income of such Person and its Restricted Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP (excluding any such charge which requires an accrual of or a reserve for cash charges for any future period).

 

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“Consolidated Secured Leverage” means the sum of the aggregate outstanding Secured Indebtedness for borrowed money of the Borrower and its Restricted Subsidiaries less the aggregate amount of cash and Cash Equivalents of the Borrower and its Restricted Subsidiaries.

 

“Consolidated Secured Leverage Ratio” means, as of any date of determination, the ratio of (x) Consolidated Secured Leverage at such date to (y) the aggregate amount of Consolidated EBITDA of Borrower for the period of the most recent four consecutive fiscal quarters ending prior to the date of such determination for which internal consolidated financial statements of the Borrower are available, in each case, with such pro forma adjustments as are consistent with the pro forma adjustments set forth in the definition of “Consolidated Fixed Charge Coverage Ratio”; provided that, for the purpose of determining Consolidated Secured Leverage, the aggregate amount of cash and Cash Equivalents of the Borrower and its Restricted Subsidiaries shall be determined without giving pro forma effect to the proceeds of Indebtedness incurred on such date.

 

“Consolidated Total Debt”:  shall mean, at any date, the excess of (x) the aggregate principal amount of all Indebtedness of the Borrower and its Restricted Subsidiaries within the meaning of clause (1), (2) or (3) of the definition of Indebtedness at such date, determined on a consolidated basis; provided that the percentage of the total Indebtedness included in this clause (x) of any Restricted Subsidiary that is not a Subsidiary Guarantor shall not exceed the percentage of the outstanding Capital Stock of such Restricted Subsidiary held (directly or indirectly) by Borrower at such date; provided further that the full principal amount of Indebtedness of a Restricted Subsidiary that is not a Guarantor in respect of which Borrower or a Subsidiary Guarantor has guaranteed pursuant to Section 7.2(l) shall be included in this clause (x) minus (y) the aggregate amount of unrestricted cash and Cash Equivalents of the Borrower and the Subsidiary Guarantors at such date minus (z) the aggregate amount of unrestricted cash and Cash Equivalents of all Restricted Subsidiaries that are not Subsidiary Guarantors at such date; provided that the percentage of the total cash and Cash Equivalents included in this clause (z) of any Restricted Subsidiary that is not a Subsidiary Guarantor shall not exceed the percentage of the outstanding Capital Stock of such Restricted Subsidiary held (directly or indirectly) by Borrower at such date; provided further that no cash or Cash Equivalents of any such Restricted Subsidiary that is not a Guarantor may be included in this clause (z) if such Restricted Subsidiary is prohibited from distributing the cash or Cash Equivalents to the Borrower by the terms of any Contractual Obligation (other than any Loan Document) or Requirement of Law applicable to such Restricted Subsidiary; provided that, the immediately foregoing proviso shall not apply to any Restricted Subsidiary that is not prohibited from making intercompany loans of its cash to Borrower or a Subsidiary Guarantor; provided further that at any time that the Extensions of Credit of the Lenders exceed $10,000,000, the sum of cash and Cash Equivalents included in clauses (y) and (z) of this definition shall not exceed $25,000,000 in the aggregate.

 

“Contractual Obligation”:  shall mean, 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.

 

“Covenant Parties”:  shall mean the Borrower and its Restricted Subsidiaries.

 

“Currency Agreement”: shall mean any foreign exchange contract, currency swap agreement or other similar agreement or arrangement designed to protect the Borrower or any Restricted Subsidiary of the Borrower against fluctuations in currency values.

 

“Debt Discharge”:  shall mean the payment in full of all loans outstanding under the Existing Credit Agreement and all accrued and unpaid interest, fees and other amounts owing thereunder,

 

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the termination of all commitments to extend credit thereunder and the release of all Liens securing obligations thereunder.

 

“Debtor Relief Laws”:  shall mean the Bankruptcy Code of the United States of America, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws, rules or regulations of the United States or other applicable jurisdictions from time to time in effect.

 

“Default”:  shall mean any of the events specified in Section 8, whether or not any requirement for the giving of notice, the lapse of time, or both as set forth in such Section has been satisfied.

 

“Defaulting Lender”:  shall mean, subject to Section 2.23(b), any Lender that (a) has failed to (i) fund all or any portion of its Revolving Loans within one Business Day of the date such Loans were required to be funded hereunder unless such Revolving Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Revolving Lender’s determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the Administrative Agent, the Issuing Bank, the Swingline Lender or any other Revolving Lender any other amount required to be paid by it hereunder (including in respect of its interest in Letters of Credit or its Fronted Swingline Amount) within one Business Day of the date when due, (b) has notified the Borrower, the Administrative Agent or the Issuing Bank or the Swingline Lender in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender’s obligation to fund a Loan hereunder and states that such position is based on such Lender’s determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder (provided that any such Lender that is a Revolving Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Administrative Agent and the Borrower), 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, or (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Revolving Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Revolving Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender.  Any determination by the Administrative Agent that a Lender is a Defaulting Lender under clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 2.23(b)) upon delivery of written notice of such determination to the Borrower, and in the case of any Defaulting Lender that is a Revolving Lender, to the Issuing Bank, the Swingline Lender and each other Revolving Lender.

 

“Designated Non-cash Consideration”: shall mean the fair market value of non-cash consideration received by the Borrower or one of its Restricted Subsidiaries in connection with an Asset Sale that is designated as Designated Non-cash Consideration pursuant to an officers’ certificate, setting

 

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forth the basis of such valuation, executed by a senior financial officer of the Borrower, less the amount of cash or Cash Equivalents received in connection with a subsequent sale of such Designated Non-cash Consideration.

 

“Disqualified Capital Stock” means that portion of any Capital Stock which, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable at the option of the holder thereof), or upon the happening of any event (other than an event which would constitute a Change of Control or an Asset Sale), matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or is redeemable at the sole option of the holder thereof (except, in each case, upon the occurrence of a Change of Control or an Asset Sale) on or prior to the Latest Termination Date.

 

“Disqualified Lender” means those Persons set forth in the list delivered by the Borrower (or its counsel) to the Administrative Agent and the Lenders prior to the Closing Date, and the Affiliates of such Persons.

 

“Documentation Agent”:  shall mean General Electric Capital Corporation, in its capacity as documentation agent hereunder.

 

“Dollars” and “$”:  shall mean dollars in lawful currency of the United States.

 

“Domestic Subsidiary”:  shall mean any Restricted Subsidiary of the Borrower organized under the laws of the United States, any state thereof or the District of Columbia, other than any such entity that is a Foreign Subsidiary.

 

“Eligible Assignee”:  shall mean (i) any Lender, (ii) with respect to the Term Loans only, an Affiliate of any Lender, (iii) with respect to the Term Loans only, an Approved Fund and (iv)(a) if the assignment does not include an assignment of a Commitment, any other Person approved by the Administrative Agent and the Borrower (each such approval not to be unreasonably withheld or delayed) or (b) if the assignment includes an assignment of a Commitment, any other Person approved by the Administrative Agent, the Issuing Bank, the Swingline Lender and the Borrower (each such approval not to be unreasonably withheld or delayed); provided that (x) no approval of the Borrower shall be required during the continuance of an Event of Default under Section 8(a) or 8(f) and (y) “Eligible Assignee” shall not include (i) the Parent, the Borrower or any of its Subsidiaries or any natural person, (ii) any Disqualified Lender or (iii) Vestar Capital Partners V L.P. and its Subsidiaries.

 

“Employee Benefit Plan”:  shall mean any employee benefit plan within the meaning of Section 3(3) of ERISA (other than any Multiemployer Plan) which is maintained or contributed to by Borrower or any Restricted Subsidiary or, solely with respect to an employee benefit plan subject to Title IV of ERISA, any ERISA Affiliate.

 

“Environment”:  shall mean ambient air, indoor air, surface water, groundwater, land and subsurface strata and natural resources such as wetlands, flora and fauna.

 

“Environmental Laws”:  shall mean any and all foreign, Federal, state, local or municipal laws, rules, orders, regulations, statutes, ordinances, codes, decrees, requirements of any Governmental Authority or common law regulating, relating to or imposing liability or standards of conduct concerning protection of the Environment or of human health (to the extent relating to exposure to Materials of Environmental Concern) or employee health and safety, as now or may at any time hereafter be in effect.

 

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

 

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“ERISA Affiliate”:  shall mean any Person who together with the Borrower or any Restricted Subsidiary is treated as a single employer within the meaning of Section 414(b), (c), (m) or (o) of the Code or Section 4001(b) of ERISA.

 

“Eurocurrency Reserve Requirements”:  shall mean, for any day as applied to a Eurodollar Loan, the aggregate (without duplication) of the maximum rates (expressed as a decimal fraction) of reserve requirements in effect on such day (including basic, supplemental, marginal and emergency reserves) under any regulations of the Board or other Governmental Authority having jurisdiction with respect thereto dealing with reserve requirements prescribed for eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board) maintained by a member bank of the Federal Reserve System.

 

“Eurodollar Base Rate”:  shall mean, with respect to each day during each Interest Period pertaining to a Eurodollar Loan, the rate per annum determined on the basis of the rate for deposits in Dollars for a period equal to such Interest Period commencing on the first day of such Interest Period appearing on Reuters Screen LIBOR01 Page as of 11:00 A.M., London time, two Business Days prior to the beginning of such Interest Period.  In the event that such rate does not appear on Reuters Screen LIBOR01 Page (or otherwise on such screen), the “Eurodollar Base Rate” shall be determined by reference to such other comparable publicly available service for displaying eurodollar rates as may be selected by the Administrative Agent or, in the absence of such availability, by reference to the rate at which the Administrative Agent is offered Dollar deposits at or about 11:00 A.M., two Business Days prior to the beginning of such Interest Period in the interbank eurodollar market where its eurodollar and foreign currency and exchange operations are then being conducted for delivery on the first day of such Interest Period for the number of days comprised therein.

 

“Eurodollar Loans”:  shall mean Loans the rate of interest applicable to which is based upon the Eurodollar Rate.

 

“Eurodollar Rate”:  shall mean, with respect to each day during each Interest Period pertaining to (x) a Eurodollar Loan or (y) an ABR Loan bearing interest by reference to clause (c) of the definition of ABR, a rate per annum determined for such day in accordance with the following formula (rounded upward to the nearest 1/100th of 1%):

 

	
 
    	
 
    	
Eurodollar Base Rate
    	
 
    	
 
    
	
 
    	
 
    	
1.00 - Eurocurrency Reserve Requirements;
    	
 
    	
 
    

 

provided, that solely with respect to Term Loans, the Eurodollar Rate shall not be less than 1.00% per annum.

 

“Eurodollar Tranche”:  shall mean the collective reference to Eurodollar Loans the then current Interest Periods with respect to all of which begin on the same date and end on the same later date (whether or not such Loans shall originally have been made on the same day).

 

“Event of Default”:  shall mean any of the events specified in Section 8, provided that any requirement for the giving of notice, the lapse of time, or both, has been satisfied.

 

“Excess Interest”:  shall mean any interest imposed by a relevant taxing authority in excess of underpayment rate described under Section 6621(a)(2) of the Code or similar provisions under the state or local tax laws.

 

“Exchange Act”:  shall mean the Securities Exchange Act of 1934, as amended from time to time.

 

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“Excluded Swap Obligation” means, with respect to any Guarantor, any Swap Obligation if, and to the extent that, all or a portion of the Guarantee Obligation of such Guarantor of, or the grant by such Guarantor of a security interest to secure, such Swap Obligation (or any guarantee thereof) is or becomes illegal or unlawful 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 (for the avoidance of doubt, giving effect to all provisions of the Loan Documents at the time of such Guarantee Obligation or the grant of such security interest) at the time the Guarantee Obligation of such Guarantor, or a grant by such Guarantor of a security interest, would have otherwise have become effective with respect to such Swap Obligation but for such Guarantor’s failure to constitute an “eligible contract participant” at such time.  If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such Guarantee Obligation or security interest is or becomes excluded in accordance with the first sentence of this definition.

 

“Excluded Taxes”: shall mean with respect to the Administrative Agent or any Lender, (i) Taxes imposed on the Administrative Agent or such Lender as a result of the recipient being organized or incorporated in, or having its principal office in, the jurisdiction of the Governmental Authority imposing such Tax or in the case of any Lender, having its applicable lending office in such jurisdiction, or as a result of any other present or former connection between the Administrative Agent or such Lender and such jurisdiction or any political subdivision or taxing authority thereof or therein (other than any such connection arising solely from the Administrative Agent’s or such Lender’s having executed, enforced, delivered, performed its obligations, become a party to or received any payment under this Agreement or any other Loan Document), provided that, for the avoidance of doubt, a U.S. federal withholding tax under the current version of sections 871(a), 881(a), 1441 or 1442 of the Code shall not be an Excluded Tax  under this clause (i); (ii) U.S. federal withholding tax imposed on amounts payable to a Lender pursuant to a law in effect at the time such Lender becomes a party to this Agreement or designates a new lending office (other than pursuant to Section 2.21), except to the extent that such Lender or Lender’s assignor (if any) was entitled, at the time of the designation of a new lending office or assignment, to receive additional amounts with respect to such Taxes pursuant to Section 2.19(a); (iii) any Taxes that are attributable to a Lender’s failure to comply with the requirements of Section 2.19(e) (i.e., failure to deliver a form that it is legally entitled to deliver); and (iv) any U.S. federal withholding tax imposed pursuant to FATCA.

 

“Existing Credit Agreement”:  shall mean the Amended and Restated Credit Agreement dated as of September 29, 2011, among the Borrower, the lenders party thereto, Wells Fargo Bank, National Association, as administrative agent and the other parties thereto.

 

“Existing Letters of Credit”: shall mean the letters of credit issued pursuant to the Existing Credit Agreement and set forth on Schedule 1.1F to the Original Credit Agreement.

 

“Extended Commitments”: shall have the meaning set forth in the definition of “Permitted Amendment”.

 

“Extension Agreement”: shall have the meaning set forth in Section 2.25(b).

 

“Extension Offer”: shall have the meaning set forth in Section 2.25(a).

 

“Extension Request Class”: shall have the meaning set forth in Section 2.25(a).

 

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“Extensions of Credit”:  shall mean, as to any Lender at any time, an amount equal to the sum without duplication of (a) the aggregate principal amount of all Revolving Loans held by such Lender then outstanding, (b) such Lender’s Applicable Percentage of the L/C Exposure at such time and (c) such Lender’s Applicable Percentage of the aggregate principal amount of Swingline Loans then outstanding.

 

“FATCA”:  shall mean Sections 1471 through 1474 of the Code, as of the Amendment and Restatement Effective Date, or any amended or successor version that is substantively comparable, and, in any case, any regulations promulgated thereunder or official interpretations thereof.

 

“Federal Funds Effective Rate”:  shall mean, for any day, the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average of the quotations for the day of such transactions received by Wells Fargo, from three federal funds brokers of recognized standing selected by it.

 

“Fee Payment Date”:  shall mean (a) the last Business Day of each March, June, September and December, (b) the date on which the Commitments are terminated and there is no remaining Extension of Credit and (c) the Amendment and Restatement Effective Date.

 

“Financing Transactions”:  shall mean (a) the execution, delivery and performance by each Loan Party of the Loan Documents to which it is to be a party, the borrowing of Loans, the use of proceeds thereof and the issuance of Letters of Credit and (b) the execution, delivery and performance by each Loan Party that is to be a party thereto of the Second Lien Notes Agreement and the issuance of the Second Lien Notes and, in each case, the use of the proceeds thereof.

 

“FIRREA” shall mean the Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended.

 

“Flood Insurance Laws”:  shall mean, collectively, (i) the National Flood Insurance Act of 1968 as now or hereafter in effect or any successor statute thereto, (ii) the Flood Disaster Protection Act of 1973 as now or hereafter in effect or any successor statue thereto, (iii) the National Flood Insurance Reform Act of 1994 as now or hereafter in effect or any successor statute thereto and (iv) the Flood Insurance Reform Act of 2004 as now or hereafter in effect or any successor statute thereto.

 

“Foreign Lender”: shall be as defined in Section 2.19(e).

 

“Foreign Subsidiary” means (1) a Restricted Subsidiary other than a Restricted Subsidiary that was formed under the laws of the United States or any state of the United States or the District of Columbia, (2) any Restricted Subsidiary of a Restricted Subsidiary described in clause (1), and (3) any Subsidiary of the Borrower that has no material assets other than Capital Stock of entities described in clause (1).

 

“Fronting Exposure”:  shall mean, at any time there is a Revolving Lender that is a Defaulting Lender, (a) with respect to the Issuing Bank (solely in its capacity as such), such Defaulting Lender’s Applicable Percentage times the outstanding L/C Exposure (other than L/C Exposure as to which such Defaulting Lender’s undivided interest therein has been reallocated to other Revolving Lenders pursuant to Section 2.23(a) or Cash Collateralized in accordance with Section 2.24) and (b) with respect to the Swingline Lender (solely in its capacity as such), the excess of such Defaulting Lender’s Applicable Percentage times the outstanding Swingline Loans over the amount actually paid by such

 

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Defaulting Lender in cash to the Swingline Lender respect of its Swingline Participation Amount relating to such Swingline Loans pursuant to Section 2.7(c) (such excess, such Defaulting Lender’s “Fronted Swingline Amount”); provided that the Fronting Exposure of the Swingline Lender (solely in its capacity as the Swingline Lender) shall be reduced by the amount of the Fronted Swingline Amount of such Defaulting Lender reallocated to other Revolving Lenders pursuant to Section 2.23(a)(iv).

 

“Fund”:  shall mean any Person that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business.

 

“Funding Office”:  shall mean the office of the Administrative Agent specified in Section 10.2 or such other office as may be specified from time to time by the Administrative Agent as its funding office by written notice to the Borrower and the Lenders.

 

“GAAP” means 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 entity as may be approved by a significant segment of the accounting profession of the United States, which are in effect as of the Closing Date.

 

“Governmental Authority”:  shall mean 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 (including the National Association of Insurance Commissioners).

 

“Governmental Real Property Disclosure Requirements”:  shall mean any Requirement of Law of any Governmental Authority requiring notification of the buyer, lessee, mortgagee, assignee or other transferee of any Real Property, facility, establishment or business, or notification, registration or filing to or with any Governmental Authority, in connection with the sale, lease, mortgage, assignment or other transfer (including any transfer of control) of any Real Property, facility, establishment or business, of the actual or threatened presence or Release in or into the Environment, or the use, disposal or handling of Materials of Environmental Concern on, at, under or near the Real Property, facility, establishment or business to be sold, leased, mortgaged, assigned or transferred.

 

“Group”: shall have the meaning set forth in the definition of “Change of Control.”

 

“Group Members”:  shall mean the collective reference to the Parent, the Borrower and their respective Restricted Subsidiaries.

 

“Guarantee Obligation”:  shall mean, as to any Person (the “guaranteeing person”), any obligation, including a reimbursement, counterindemnity or similar obligation, of the guaranteeing person that guarantees or in effect guarantees, or which is given to induce the creation of a separate obligation by another Person (including any bank under any letter of credit) that guarantees or in effect guarantees, any Indebtedness, leases, dividends or other obligations (the “primary obligations”) of any other third Person (the “primary obligor”) in any manner, whether directly or indirectly, including any obligation of the guaranteeing person, whether or not contingent, (i) to purchase any such primary obligation or any property constituting direct or indirect security therefor, (ii) to advance or supply funds (1) for the purchase or payment of any such primary obligation or (2) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to purchase property, securities or services primarily for the purpose of assuring the owner of any such

 

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primary obligation of the ability of the primary obligor to make payment of such primary obligation or (iv) otherwise to assure or hold harmless the owner of any such primary obligation against loss in respect thereof; provided, however, that the term Guarantee Obligation shall not include endorsements of instruments for deposit or collection in the ordinary course of business.  The amount of any Guarantee Obligation of any guaranteeing person shall be deemed to be the lower of (a) an amount equal to the stated or determinable amount of the primary obligation in respect of which such Guarantee Obligation is made and (b) the maximum amount for which such guaranteeing person may be liable pursuant to the terms of the instrument embodying such Guarantee Obligation, unless such primary obligation and the maximum amount for which such guaranteeing person may be liable are not stated or determinable, in which case the amount of such Guarantee Obligation shall be such guaranteeing person’s maximum reasonably anticipated liability in respect thereof as determined by the Borrower in good faith.

 

“Guarantors” shall mean the collective reference to the Parent and the Subsidiary Guarantors.

 

“Guaranty and Collateral Agreement”:  shall mean the Guaranty and Collateral Agreement entered into by the Borrower, the Guarantors and the Collateral Agent, substantially in the form of Exhibit D to the Original Credit Agreement.

 

“Hedging Obligations” means, with respect to any specified Person, the obligations of such Person incurred not for speculative purposes under: (1) Interest Swap Obligations; (2) Currency Agreements; (3) any commodity futures contract, commodity option or other similar agreement or arrangement designed to protect against fluctuations in the price of commodities used by that entity at the time; and (4) other agreements or arrangements designed to protect such person against fluctuations in interest rates, currency exchange rates or commodity prices.

 

“Holdings”:  shall mean Radiation Therapy Services, LLC, a Delaware limited liability company and its successors.

 

“Immaterial Subsidiary”:  shall mean on any date, any Restricted Subsidiary of Borrower (i) to which less than $350,000 of Consolidated EBITDA of Borrower is attributable as reflected on the most recent financial statements required to be delivered pursuant to Section 6.1 on or prior to such date (or, prior to the first delivery date of such financial statements hereunder, on the most recently available financial statements of the Borrower) and (ii) that has been designated as such by the Borrower in a written notice delivered to the Administrative Agent (other than any such Restricted Subsidiary as to which the Borrower has revoked such designation by written notice to the Administrative Agent); provided that at no time shall the Immaterial Subsidiaries to which Consolidated EBITDA of Borrower is attributable (as reflected on the most recent financial statements required to be delivered pursuant to Section 6.1 on or prior to such date (or, prior to the first delivery date of such financial statements hereunder, on the most recently available financial statements of the Borrower)) exceeds $1,000,000 in the aggregate (with no Immaterial Subsidiary being deemed to have Consolidated EBITDA of Borrower attributable to it of less than zero for purposes of this proviso).  In no event shall a Restricted Subsidiary so designated as an Immaterial Subsidiary be a Subsidiary Guarantor hereunder.

 

“Indebtedness”: shall mean with respect to any Person, without duplication: (1) all indebtedness of such Person for borrowed money; (2) all indebtedness of such Person evidenced by bonds, debentures, notes or other similar instruments; (3) all Capitalized Lease Obligations of such Person; (4) all indebtedness of such Person issued or assumed as the deferred purchase price of property (but excluding any such indebtedness (a) that constitutes trade accounts payable or other accrued liabilities and (b) in the form of earn-out obligations until such obligation becomes a liability on the balance sheet of such Person in accordance with GAAP); (5) all obligations for the reimbursement of any

 

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obligor on any letter of credit, banker’s acceptance or similar credit transaction; (6) guarantees and other contingent obligations in respect of Indebtedness referred to in clauses (1) through (5) above and clause (8) below, except those incurred in the ordinary course of business and not in respect of borrowed money; (7) all obligations of any other Person of the type referred to in clauses (1) through (6) which are secured by any lien on any property or asset of such Person, the amount of such obligation being deemed to be the lesser of the fair market value of such property or asset or the amount of the obligation so secured; (8) all Obligations under currency agreements and interest swap agreements of such Person; and (9) all Disqualified Capital Stock issued by such Person with the amount of Indebtedness represented by such Disqualified Capital Stock being equal to the greater of its voluntary or involuntary liquidation preference and its maximum fixed repurchase price, but excluding accrued dividends, if any; if and to the extent that any of the foregoing Indebtedness would appear as a liability upon a balance sheet (excluding the footnotes thereto) of such Person prepared in accordance with GAAP.

 

For purposes hereof, the “maximum fixed repurchase price” of any Disqualified Capital Stock which does not have a fixed repurchase price shall be calculated in accordance with the terms of such Disqualified Capital Stock as if such Disqualified Capital Stock were purchased on any date on which Indebtedness shall be required to be determined pursuant to this Agreement, and if such price is based upon, or measured by, the fair market value of such Disqualified Capital Stock, such fair market value shall be determined reasonably and in good faith by the Board of Directors of the issuer of such Disqualified Capital Stock.

 

“Independent Financial Advisor”: shall mean a firm:  (1) which does not, and whose directors, officers and employees or Affiliates do not, have a direct or indirect financial interest in the Borrower; and (2) which, in the judgment of the Board of Directors of the Borrower, is otherwise independent and qualified to perform the task for which it is to be engaged.

 

“Initial Purchasers” means Wells Fargo Securities, LLC, Morgan Stanley & Co. and SunTrust Robinson Humphrey, Inc., as applicable, and such other initial purchasers party to the purchase agreement entered into in connection with the offer and sale of the Second Lien Notes.

 

“Insolvency”:  shall mean, with respect to any Multiemployer Plan, the condition that such Multiemployer Plan is insolvent within the meaning of Section 4245 of ERISA.

 

“Insolvent”:  shall mean pertaining to a condition of Insolvency.

 

“Insurance Subsidiary” means each of Batan Insurance and any other Subsidiary of the Borrower engaged solely in one or more of the general liability, professional liability, health and benefits and workers compensation and any other insurance businesses, providing insurance coverage for the Borrower, its Subsidiaries and any of its direct or indirect parents and the respective employees, officers or directors thereof.  Notwithstanding anything else herein to the contrary, no Insurance Subsidiary shall be required to become a Subsidiary Guarantor hereunder.

 

“Intellectual Property”:  shall mean the collective reference to all rights in intellectual property, whether arising under United States, multinational or foreign laws or otherwise, including copyrights, patents, trademarks, technology, know-how and processes, 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.

 

“Intercreditor Agreement” means the intercreditor agreement among Wells Fargo Bank, N.A., as Collateral Agent and the Notes Collateral Agent, as it may be amended, supplemented, replaced,

 

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substituted or otherwise modified from time to time in accordance with this Agreement or the Intercreditor Agreement.

 

“Interest Election Request”:  shall mean a request by the Borrower to convert or continue a borrowing of Loans in accordance with Section 2.12, substantially in the form of Exhibit C.

 

“Interest Payment Date”:  shall mean (a) as to any ABR Loan (including any Swingline Loan), the last day of each March, June, September and December to occur while such Loan is outstanding and the Termination Date of such Loan, (b) as to any Eurodollar Loan, the last day of each applicable Interest Period and the Termination Date of such Loan, and in addition where the applicable Interest Period for a Eurodollar Loan is greater than three months, then also the respective dates that fall every three months after the beginning of such Interest Period, and (c) as to any Loan, (i) the date of any repayment or prepayment made in respect thereof and (ii) the Amendment and Restatement Effective Date.

 

“Interest Period”:  shall mean, as to any Eurodollar Loan, (a) initially, the period commencing on the borrowing or conversion date, as the case may be, with respect to such Eurodollar Loan and ending one, two, three or six (or, if available to all relevant Lenders, twelve) months thereafter, as selected by the Borrower in its notice of borrowing or notice of conversion, as the case may be, given with respect thereto; and (b) thereafter, each period commencing on the last day of the next preceding Interest Period applicable to such Eurodollar Loan and ending one, two, three or six (or, if available to all Lenders, twelve) months thereafter, as selected by the Borrower by irrevocable notice to the Administrative Agent not later than 12:00 Noon, on the date that is the third Business Day prior to the last day of the then current Interest Period with respect thereto; provided that all of the foregoing provisions relating to Interest Periods are subject to the following:

 

(i)       if any Interest Period would otherwise end on a day that is not a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless the result of such extension would be to carry such Interest Period into another calendar month in which event such Interest Period shall end on the immediately preceding Business Day;

 

(ii)       the Borrower may not select an Interest Period that would extend beyond the Termination Date; and

 

(iii)      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 such Interest Period) shall end on the last Business Day of a calendar month.

 

“Interest Swap Obligations”: shall mean the obligations of any Person pursuant to any arrangement with any other Person, whereby, directly or indirectly, such Person is entitled to receive from time to time periodic payments calculated by applying either a floating or a fixed rate of interest on a stated notional amount in exchange for periodic payments made by such other Person calculated by applying a fixed or a floating rate of interest on the same notional amount and shall include, without limitation, interest rate swaps, caps, floors, collars and similar agreements.

 

“Investments”:  shall mean, with respect to any Person, any direct or indirect loan or other extension of credit (including, without limitation, a guarantee) or capital contribution to (by means of any transfer of cash or other property to others or any payment for property or services for the account or use of others), or any purchase or acquisition by such Person of any Capital Stock, bonds, notes, debentures or other securities or evidences of Indebtedness issued by, any other Person.  “Investment” shall exclude extensions of trade credit by the Borrower and its Restricted Subsidiaries in accordance with

 

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normal trade practices of the Borrower or such Restricted Subsidiary, as the case may be.  If the Borrower or any Restricted Subsidiary of the Borrower sells or otherwise disposes of any Common Stock of any direct or indirect Restricted Subsidiary of the Borrower such that, after giving effect to any such sale or disposition, the Borrower no longer owns, directly or indirectly, 100% of the outstanding Common Stock of such Restricted Subsidiary, the Borrower shall be deemed to have made an Investment on the date of any such sale or disposition equal to the fair market value of the Common Stock of such Restricted Subsidiary not sold or disposed of.

 

“IPO” means an offering of the common Capital Stock of Parent or a Person that directly or indirectly owns 100% of the Capital Stock of Parent pursuant to an effective registration statement filed with the SEC in accordance with the Securities Act, or to the equivalent registration documents filed with the equivalent authority in the applicable foreign jurisdiction.

 

“Issuing Bank”:  shall mean Wells Fargo or any Affiliate thereof or any other Lender agreed to by the Borrower and such Lender and approved by the Administrative Agent.

 

“Joint Bookrunners”: shall mean Wells Fargo Securities, LLC, SunTrust Robinson Humphrey, Inc. and Morgan Stanley Senior Funding, Inc.

 

“Joint Lead Arrangers”:  shall mean Wells Fargo Securities, LLC, SunTrust Robinson Humphrey, Inc. and Morgan Stanley Senior Funding, Inc.

 

“Junior Debt” means any Indebtedness which is (i) Subordinated Indebtedness, (ii) to the extent incurred or outstanding pursuant first paragraph of Section 7.2 or clause (a) or (q) of the second paragraph of Section 7.2, Indebtedness (X) having a Lien on any Collateral which Lien is contractually subordinated to the Lien on such Collateral securing the Secured Obligations or (Y) that is unsecured and (iii) Refinancing Indebtedness in respect of the Indebtedness referred to in immediately preceding clause (ii).  For the avoidance of doubt (x) each of the Second Lien Notes and the Senior Subordinated Notes shall constitute Junior Debt and (y) Indebtedness that is reclassified pursuant to the second to last paragraph of Section 7.2 shall not lose its status as Junior Debt solely by virtue of such reclassification.

 

“L/C Commitment”:  shall mean $15,000,000.

 

“L/C Disbursement”:  shall mean any payment made by the Issuing Bank pursuant to a Letter of Credit.

 

“L/C Exposure”:  shall mean, at any time, an amount equal to the sum of (a) the aggregate undrawn and unexpired amount of the then outstanding Letters of Credit and (b) the aggregate amount of L/C Disbursements that have not then been reimbursed by or on behalf of the Borrower.

 

“L/C Participant”:  shall mean in respect of any Letter of Credit, the collective reference to all Revolving Lenders other than the Issuing Bank in respect of such Letter of Credit.

 

“Latest Termination Date”: shall mean, as of any time, the latest termination date of any Commitments or Loans hereunder as of such time.

 

“Lenders”:  shall mean the Revolving Lenders and Term Loan Lenders; provided that, unless the context otherwise requires, each reference herein to the Lenders shall be deemed to include the Swingline Lender and the Issuing Bank.

 

“Letters of Credit”:  shall have the meaning set forth in Section 3.1(a).

 

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“Lien”:  shall mean any mortgage, pledge, hypothecation, collateral assignment, security deposit arrangement, encumbrance in the nature of a security interest, lien (statutory or other), charge or other security interest or any preference, priority or other security agreement or similar preferential arrangement (including any conditional sale or other title retention agreement and any capital lease having substantially the same economic effect as any of the foregoing).  For the avoidance of doubt, “Lien” shall not be deemed to include any license or sublicense of Intellectual Property.

 

“Loan”:  shall mean any loan made by any Lender pursuant to this Agreement.

 

“Loan Documents”:  shall mean this Agreement, the Security Documents, the Intercreditor Agreement, the OnCure Assets Intercreditor Agreement, the Notes and any amendment, waiver, supplement or other modification to any of the foregoing.

 

“Loan Parties”:  shall mean each Group Member that is a party to a Loan Document.

 

“Majority Facility Lenders”:  shall mean (a) with respect to the Term Facility, the holders (other than Defaulting Lenders) of more than 50% of the aggregate unpaid principal amount of the Term Loans and (b) with respect to the Revolving Loans and Commitments, the Majority Revolving Lenders.

 

“Majority Revolving Lenders”:  shall mean the holders (other than Defaulting Lenders) of more than 50% of the Total Commitments (or, if the Commitments have terminated, the holders (other than Defaulting Lenders) of more than 50% of the Total Extensions of Credit).

 

“Managed Care Plans”:  shall mean all health maintenance organizations, preferred provider organizations, individual practice associations, competitive medical plans and similar arrangements.

 

“Management Agreement” means the management agreement between certain of the management companies associated with the Permitted Holders and the Borrower as in effect on the Closing Date and any amendment or replacement thereof so long as any such amendment or replacement agreement is not more disadvantageous to the Lenders in any material respect than the original agreement as in effect on the Closing Date.

 

“Material Adverse Effect”:  shall mean a material adverse effect on (a) the business, property, operations or financial condition of the Borrower and its Restricted Subsidiaries taken as a whole or (b) the validity or enforceability of this Agreement, the Notes or any of the other Loan Documents, the Liens granted thereunder or the rights or remedies of the Administrative Agent or the Lenders under this Agreement, the Notes or the other Loan Documents.

 

“Materials of Environmental Concern”:  shall mean any gasoline or petroleum (including crude oil or any fraction thereof) or petroleum products, polychlorinated biphenyls, infectious, bio-hazardous and medical waste, asbestos, pollutants, contaminants, radioactivity and radioactive materials, and any other substances, materials, chemicals, wastes, compounds, mixtures or constituents in any form that are regulated pursuant to or can give rise to liability under any Environmental Law.

 

“Medical Developers”:  shall mean Medical Developers, LLC.

 

“Minimum Collateral Amount”:  shall mean, at any time, an amount equal to 103% of the Fronting Exposure of the Issuing Bank at such time.

 

“Moody’s”:  shall have the meaning set forth in the definition of “Cash Equivalents.”

 

22

 

“Mortgaged Properties”:  shall mean each owned real (or, solely to the extent relating to the property referred to in clause (iii) of Section 6.14 of the Original Credit Agreement, leasehold) property as to which the Collateral Agent for the benefit of the Secured Parties shall be required to be granted a Lien pursuant to Section 6.9 or 6.10.

 

“Mortgages”:  shall mean all fee mortgages, assignments of leases, mortgage deeds, deeds of trust, deeds to secure debt, security agreements, and other similar instruments, executed or to be executed by any Loan Party (i) which provide the Collateral Agent, for the benefit of the Secured Parties, a first priority Lien on the Mortgaged Properties subject to the Liens permitted by each Mortgage and, to the extent applicable, the OnCure Assets Intercreditor Agreement, as amended, restated, modified, extended or supplemented from time to time, substantially in the form of Exhibit L to the Original Credit Agreement.

 

“Multiemployer Plan”:  shall mean a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA.

 

“Net Cash Proceeds” means, with respect to any Asset Sale, the proceeds in the form of cash or Cash Equivalents including payments in respect of deferred payment obligations when received in the form of cash or Cash Equivalents (other than the portion of any such deferred payment constituting interest) received by the Borrower or any of its Restricted Subsidiaries from such Asset Sale net of:

 

(1)           out-of-pocket expenses and fees relating to such Asset Sale (including, without limitation, legal, accounting and investment banking fees and sales commissions);

 

(2)           taxes paid or payable after taking into account any reduction in consolidated tax liability due to available tax credits or deductions and any tax sharing arrangements;

 

(3)           repayment of Indebtedness (including any required premiums or prepayment penalties) that is secured by the property or assets that are the subject of such Asset Sale; and

 

(4)           appropriate amounts to be provided by the Borrower or any Restricted Subsidiary, as the case may be, as a reserve, in accordance with GAAP, against any liabilities associated with such Asset Sale and retained by the Borrower or any Restricted Subsidiary, as the case may be, after such Asset Sale, including, without limitation, pension and other post-employment benefit liabilities, liabilities related to environmental matters and liabilities under any indemnification obligations associated with such Asset Sale.

 

“Net Cash Proceeds Trigger” means, at any date, that the aggregate Net Cash Proceeds from Asset Sales that have not been applied pursuant to clause (3) of Section 7.5 during the most recent four full fiscal quarters ending prior to the such date for which internal financial statements are available shall have exceeded 30% of Consolidated EBITDA for such period of four full fiscal quarters.

 

“Non-Consenting Lender”:  shall have the meaning set forth in Section 2.22.

 

“Non-Defaulting Lender”:  shall mean, at any time, each Lender that is not a Defaulting Lender at such time.

 

“Non-Excluded Taxes”:  shall mean with respect to the Administrative Agent and any Lender, any Taxes other than Excluded Taxes.

 

23

 

“Non-Profit Entity”:  shall mean any entity duly acquired or formed and organized by the Borrower or any Restricted Subsidiary as a not-for-profit entity under applicable state law in furtherance of the business needs of Borrower and its Restricted Subsidiaries.

 

“Non-Wholly-Owned Subsidiary”:  shall mean any  Restricted Subsidiary (other than a Non-Profit Entity or an Insurance Subsidiary) that is not a Wholly-Owned Subsidiary.

 

“Notes”:  shall mean the collective reference to any Revolving Note, Swingline Note or Term Note.

 

“Notes Collateral Agent”:  shall mean Wilmington Trust, National Association, as collateral agent for the holders of the Second Lien Notes.

 

“Obligations”:  shall mean the unpaid principal of and interest on (including interest accruing after the maturity of the Loans and Reimbursement Obligations and interest accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to the Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) the Loans and all other obligations and liabilities of the Borrower to the Administrative Agent or to any Lender, whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred, which may arise under this Agreement, any other Loan Document, the Letters of Credit or any other document made, delivered or given in connection herewith or therewith, whether on account of principal, interest, reimbursement obligations, fees, indemnities, costs, expenses (including all fees, charges and disbursements of counsel to the Administrative Agent or to any Lender that are required to be paid by the Borrower pursuant hereto) or otherwise.

 

“OnCure” means OnCure Holdings, Inc.

 

“OnCure Acquisition” means the acquisition of OnCure by the Borrower pursuant to the OnCure Acquisition Agreement.

 

“OnCure Acquisition Agreement” means that certain Investment Agreement dated as of June 22, 2013, by and among the Borrower and OnCure.

 

“OnCure Assets Intercreditor Agreement” means that certain intercreditor agreement by and among the Collateral Agent and the OnCure Notes Collateral Agent which shall provide, among other things, for the priority upon exercise of remedies or realization on the OnCure Collateral, that the proceeds thereof are applied first to the OnCure Notes, second to the Secured Obligations and then to the other parties entitled thereto under the Intercreditor Agreement and otherwise be in form and substance reasonably satisfactory to the Administrative Agent and the Collateral Agent.

 

“OnCure Collateral” shall have the meaning set forth in the definition of OnCure Indenture.

 

“OnCure Guarantors” shall have the meaning set forth in the definition of OnCure Indenture.

 

“OnCure Indenture” means the indenture dated as of May 13, 2010 by and between Wilmington Trust FSB, as trustee, OnCure and the Persons set forth as “Guarantors” therein (the “OnCure Guarantors”), as such indenture shall be amended on or around the date of consummation of the OnCure Acquisition  to permit, among other things, the guarantee  by OnCure and the OnCure Guarantors  of the Secured Obligations and the Second Lien Notes, and to grant Liens on the “Collateral” (as defined

 

24

 

in such indenture, the “OnCure Collateral”) to secure the Secured Obligations under the Security Documents.

 

“OnCure Notes” means the 11-3/4% Senior Secured Notes due 2017 issued by OnCure, pursuant to the OnCure Indenture.

 

“OnCure Notes Collateral Agent” the “Collateral Agent” referred to in the OnCure Indenture and its successors.

 

“OnCure Notes Documents” means the OnCure Indenture, the “Collateral Agreements” referred to therein and other documents executed in connection with the OnCure Notes, whether upon the issuance, amendment or supplementation thereof.

 

“Original Credit Agreement” has the meaning assigned to such term in the Amendment Agreement.

 

“Other Taxes”:  shall mean all present or future stamp, documentary or any other excise, intangible, mortgage recording or similar Taxes arising from any payment made hereunder or under any other Loan Document or from the execution, delivery or enforcement of, or in connection with any transactions to be performed by the parties pursuant to the terms of this Agreement or any other Loan Document.

 

“Parent”:  shall have the meaning set forth in the preamble.

 

“Participant”:  shall have the meaning set forth in Section 10.6(d).

 

“PBGC”:  shall mean the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of Title IV of ERISA (or any successor).

 

“Permitted Amendment” means an amendment to this Agreement and the other Loan Documents, effected in connection with an Extension Offer pursuant to Section 2.25, providing for an extension of the Termination Date applicable to the Lenders’ Commitments or Loans of the applicable Extension Request Class for the Lenders that consent to such amendment (such Commitments being referred to as the “Extended Commitments”) and, in connection therewith, (a) an increase or decrease in the rate of interest or commitment or letter of credit fees (including through fixed interest rates and changes to the interest rate margins or rate floors) accruing on such Extended Commitments and/or (b) an addition of any affirmative or negative covenants applicable to the Borrower and the Restricted Subsidiaries that are only applicable following the Latest Termination Date.  For the avoidance of doubt, the Borrower shall be permitted to pay fees to the Lenders for extending their Commitments and/or Loans pursuant to a Permitted Amendment in connection with the consummation of the Permitted Amendment.

 

“Permitted Holder(s)” means each of Vestar Capital Partners and each of its Affiliates but not including, however, any portfolio operating companies of any of the foregoing.

 

“Permitted Investments”: shall mean:

 

(1)           Investments by the Borrower or any Restricted Subsidiary of the Borrower in any Person that is or will become immediately after such Investment a Restricted Subsidiary of the Borrower or that will merge or consolidate into the Borrower or a Restricted Subsidiary of the Borrower;

 

25

 

(2)           Investments in the Borrower by any Restricted Subsidiary of the Borrower;

 

(3)           Investments in cash and Cash Equivalents;

 

(4)           loans and advances to employees, directors and officers of the Borrower and its Restricted Subsidiaries or to any physician affiliated with the Borrower or its Restricted Subsidiaries, or to any employee of any such physician, in the ordinary course of business for bona fide business purposes not in excess of $3,000,000 at any one time outstanding;

 

(5)           Hedging Obligations entered into not for speculative purposes and otherwise in compliance with the Loan Documents;

 

(6)           Investments in securities of trade creditors or customers received pursuant to any plan of reorganization or similar arrangement upon the bankruptcy or insolvency of such trade creditors or customers or in good faith settlement of delinquent obligations of such trade creditors or customers;

 

(7)           Investments made by the Borrower or its Restricted Subsidiaries as a result of consideration received in connection with an Asset Sale made in compliance with Section 7.5 or any consideration received in connection with a disposition of assets excluded from the definition of “Asset Sale”;

 

(8)           Investments represented by guarantees that are otherwise permitted under this Agreement and the Loan Documents;

 

(9)           Investments the payment for which is Qualified Capital Stock of the Borrower;

 

(10)         Investments by the Borrower or the Restricted Subsidiaries in Unrestricted Subsidiaries, taken together with all other Permitted Investments pursuant to this clause (10) not to exceed $10,000,000 at any one time outstanding;

 

(11)         Investments relating to Insurance Subsidiaries, up to an aggregate principal amount outstanding at any one time equal to $10,000,000;

 

(12)         Investments in joint ventures not to exceed $30,000,000 at any time outstanding;

 

(13)         workers’ compensation, utility, lease and similar deposits and prepaid expenses in the ordinary course of business and endorsements of negotiable instruments and documents in the ordinary course of business;

 

(14)         receivables owing to the Borrower or a Restricted Subsidiary of the Borrower if created or acquired in the ordinary course of business and payable or dischargeable in accordance with customary trade terms; provided that such trade terms may include such concessionary trade terms as the Borrower or such Restricted Subsidiary, as the case may be, deems reasonable under the circumstances;

 

(15)         any Investments in payroll, travel and similar advances to cover matters that are expected at the time of such advances ultimately to be treated as expenses for accounting purposes;

 

26

 

(16)         any Investments existing on the Closing Date and set forth on Schedule 1.1E of the Original Credit Agreement and any modification, renewal, replacement or extension thereof; provided that the outstanding amount of such Investment may not be increased by any such modification, renewal, replacement or extension thereof unless (x) such modification, renewal, replacement or extension is required by the terms of such Investment as in existence on the Closing Date, (y) the aggregate amount by which all Investments made under this clause (16) may be increased after the Closing Date shall not exceed $20,000,000 or (z) as otherwise permitted by this Agreement and the Loan Documents;

 

(17)         Investments consisting of licensing of intellectual property pursuant to joint marketing arrangements with other Persons;

 

(18)         Investments consisting of earnest money deposits required in connection a purchase agreement or other acquisition; and

 

(19)         additional Investments not to exceed the greater of $20,000,000 and 2.0% of Total Assets at any one time outstanding, provided that if such Investment is in Capital Stock of a Person that subsequently becomes a Restricted Subsidiary, such Investment shall thereafter be deemed permitted under clause (1) above and shall not be included as having been made pursuant to this clause (19).

 

Notwithstanding the foregoing, no Investment shall be made in OnCure or any of its Subsidiaries pursuant to clause (1) or (2) above by any Person other than OnCure or any of its Subsidiaries in an aggregate amount exceeding $30,000,000 plus the aggregate amount of cash and Cash Equivalents received by Borrower or any of its Restricted Subsidiaries (other than OnCure and its Subsidiaries) in respect of or as a return of any Investment in, or any dividend or other distribution received from, OnCure and/or any of its Subsidiaries; provided that this sentence shall not limit the making of Investments in Restricted Subsidiaries that comprise Oncure and its Subsidiaries (A) to the extent such Investments are comprised of the accrual or allocation of expenses or other charges on behalf of such Restricted Subsidiaries or (B) to the extent such Investments are made within 180 days following the OnCure Acquisition and are comprised of (i) cash consideration for the purchase of OnCure and fees and expenses associated with such purchase (including fees and expenses associated with the insolvency proceeding for OnCure and fees of consultants retained in connection with such proceeding) and/or (ii) costs in connection with the implementation of cost savings and synergies related to the OnCure Acquisition.

 

“Permitted Liens”: shall mean the following types of Liens:

 

(1)           Liens for taxes, assessments or governmental charges or claims either (a) not delinquent or (b) contested in good faith by appropriate proceedings and as to which the Borrower or its Restricted Subsidiaries shall have set aside on its books such reserves as may be required pursuant to GAAP;

 

(2)           statutory Liens of landlords and Liens of carriers, warehousemen, mechanics, suppliers, materialmen, repairmen and other Liens imposed by law incurred in the ordinary course of business for sums not yet delinquent or being contested in good faith, if such reserve or other appropriate provision, if any, as shall be required by GAAP shall have been made in respect thereof;

 

(3)           Liens incurred or deposits made in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other types of social security, including any Lien securing letters of credit issued in the ordinary course of business consistent

 

27

 

with past practice in connection therewith, or to secure the performance of tenders, statutory obligations, surety and appeal bonds, bids, leases, government contracts, performance and return-of-money bonds and other similar obligations (exclusive of obligations for the payment of borrowed money);

 

(4)           judgment Liens not giving rise to an Event of Default;

 

(5)           easements, rights-of-way, zoning restrictions and other similar charges or encumbrances in respect of real property not interfering in any material respect with the ordinary conduct of the business of the Borrower or any of its Restricted Subsidiaries;

 

(6)           any interest or title of a lessor under any Capitalized Lease Obligation; provided that such Liens do not extend to any property or assets which is not leased property subject to such Capitalized Lease Obligation;

 

(7)           Liens securing Purchase Money Indebtedness; provided, however, that (a) such Purchase Money Indebtedness shall not exceed the purchase price or other cost of such property or equipment and shall not be secured by any property or equipment of the Borrower or any Restricted Subsidiary of the Borrower other than the property and equipment so acquired and (b) the Lien securing such Purchase Money Indebtedness shall be created within 90 days of such acquisition;

 

(8)           Liens upon 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;

 

(9)           Liens securing reimbursement obligations with respect to commercial letters of credit which encumber documents and other property relating to such letters of credit and products and proceeds thereof;

 

(10)         Liens encumbering deposits made to secure obligations arising from statutory, regulatory, contractual, or warranty requirements of the Borrower or any of its Restricted Subsidiaries, including rights of offset and set off;

 

(11)         Liens securing Hedging Obligations otherwise permitted under this Agreement and the other Loan Documents;

 

(12)         Liens securing Indebtedness under Currency Agreements;

 

(13)         Liens securing Acquired Indebtedness incurred in accordance with Section 7.2; provided that:

 

(a)           such Liens secured such Acquired Indebtedness at the time of and prior to the incurrence of such Acquired Indebtedness by the Borrower or a Restricted Subsidiary of the Borrower and were not granted in connection with, or in anticipation of, the incurrence of such Acquired Indebtedness by the Borrower or a Restricted Subsidiary of the Borrower; and

 

(b)           such Liens do not extend to or cover any property or assets of the Borrower or of any of its Restricted Subsidiaries other than the property or assets that

 

28

 

secured the Acquired Indebtedness prior to the time such Indebtedness became Acquired Indebtedness of the Borrower or a Restricted Subsidiary of the Borrower and are no more favorable to the lienholders than those securing the Acquired Indebtedness prior to the incurrence of such Acquired Indebtedness by the Borrower or a Restricted Subsidiary of the Borrower;

 

(14)         Liens on assets of a Restricted Subsidiary of the Borrower that is not a Guarantor to secure Indebtedness of such Restricted Subsidiary that is otherwise permitted under this Agreement and the other Loan Documents;

 

(15)         leases, subleases, licenses and sublicenses granted to others that do not materially interfere with the ordinary cause of business of the Borrower and its Restricted Subsidiaries;

 

(16)         banker’s Liens, rights of setoff and similar Liens with respect to cash and Cash Equivalents on deposit in one or more bank accounts in the ordinary course of business;

 

(17)         Liens arising from filing Uniform Commercial Code financing statements regarding leases;

 

(18)         Liens in favor of customs and revenue authorities arising as a matter of law to secure payments of custom duties in connection with the importation of goods;

 

(19)         Liens on assets of any Restricted Subsidiary of the Borrower that is not a Guarantor;

 

(20)         Liens on assets or Capital Stock of Unrestricted Subsidiaries;

 

(21)         Liens securing insurance premium financing; provided that such Liens do not extend to any property or assets other than the insurance policies and proceeds thereof;

 

(22)         Liens on Collateral securing any Collateralized Obligations in respect of the Second Lien Notes issued on the Closing Date, and, to the extent related to such Second Lien Notes issued on the Closing Date, obligations under the Second Lien Notes Documentation, including, for the avoidance of doubt, obligations in respect of exchange notes issued in exchange for the Second Lien Notes pursuant to the Registration Rights Agreement and the guarantees of such Second Lien Notes issued on the Closing Date, so long as all Liens pursuant to this clause (22) are subject to the Intercreditor Agreement in the capacity of “Second Priority Claims”;

 

(23)         Liens created pursuant to the Loan Documents and other Security Documents;

 

(24)         Liens on the Collateral in favor of any collateral agent for the benefit of the holders of the Second Lien Notes relating to such collateral agent’s administrative expenses with respect to the Collateral;

 

(25)         other Liens securing obligations incurred in the ordinary course of business which obligations do not exceed $108,000,000 at any one time outstanding; provided that any amounts secured under this clause (25) in excess of $25,000,000 may be used only to secure the obligations under the OnCure Notes (provided that any such Liens granted to secure the OnCure Notes shall only be granted pursuant to the OnCure Notes Documents) and any Refinancing thereof to the extent that such Liens would have otherwise been permitted to be incurred pursuant to clause (27) of this definition ;

 

29

 

(26)         Liens securing Collateralized Obligations in respect of any Indebtedness permitted to be incurred pursuant to Section 7.2; provided that, with respect to Liens securing obligations permitted under this clause (26), at the time of incurrence and after giving pro forma effect thereto, the Consolidated Secured Leverage Ratio would be no greater than 3.25 to 1.00; provided further that, for purposes of calculating the Consolidated Secured Leverage Ratio pursuant to this clause (26), the total amount of Indebtedness permitted to be incurred pursuant to Section 7.2(b) shall be deemed to be outstanding and secured by Liens; provided further that  the holders of such Indebtedness, or their representative, shall become party to the Intercreditor Agreement in the capacity of “Second Priority Claims” or another intercreditor agreement pursuant to which such Liens securing such Indebtedness are subordinated to the Liens securing the Secured Obligations to at least the same extent as the Liens securing the Second Lien Notes are subordinated to the Liens securing the Secured Obligations under the Intercreditor Agreement as of the Amendment and Restatement Effective Date; and

 

(27)         Liens incurred to secure obligations in respect of Indebtedness permitted by clause (k) of the second paragraph of Section 7.2; provided that such Liens do not extend to any additional property or assets other than the Liens securing such Indebtedness being Refinanced; provided further if such Liens were required to be subject to an intercreditor agreement with respect to the Indebtedness that was the subject of such Refinancing, then such Liens shall be subject to the same or another intercreditor agreement in a capacity that is at least as favorable to the Secured Parties as the intercreditor agreement as in effect immediately prior to such Refinancing.

 

“Person” means an individual, partnership, corporation, unincorporated organization, trust or joint venture, or a governmental agency or political subdivision thereof.

 

“Plan”:  shall mean any employee benefit plan (other than a Multiemployer Plan) that is covered by Title IV of ERISA or subject to the minimum funding standard of Section 412 of the Code or Section 302 of ERISA and is maintained or contributed to by the Borrower or a Commonly Controlled Entity.

 

“Pledged Stock”:  shall have the meaning assigned to such term in the Guaranty and Collateral Agreement.

 

“Preferred Stock” of any Person means any Capital Stock of such Person that has preferential rights to any other Capital Stock of such Person with respect to dividends or redemptions or upon liquidation.

 

“Pricing Grid”:  shall mean the applicable table set forth below in respect of Revolving Loans, Swingline Loans and the Commitment Fee Rate for Commitments:

 

	
Total
   Leverage Ratio
    	
 
    	
Applicable Margin
   for Eurodollar Loans
    	
 
    	
Applicable Margin
   for ABR Loans
    	
 
    	
Commitment Fee Rate
   for
   Commitments
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
> 6.25
    	
 
    	
5.75
    	
%
    	
4.75
    	
%
    	
1.00
    	
%
    
	
<6.25   and >5.00
    	
 
    	
5.50
    	
%
    	
4.50
    	
%
    	
1.00
    	
%
    
	
<5.00:1
    	
 
    	
5.00
    	
%
    	
4.00
    	
%
    	
0.50
    	
%
    

 

For the purposes of the Pricing Grid, changes in the Applicable Margin for Revolving Loans, Swingline Loans and Commitment Fee Rate resulting from changes in the Total Leverage Ratio

 

30

 

shall become effective on the date (the “Adjustment Date”) that is three Business Days after the date on which financial statements are delivered to the Lenders pursuant to Section 6.1 (commencing on the Adjustment Date in respect of the delivery of financial statements for the first fiscal quarter ending after the Closing Date) and shall remain in effect until the next change to be effected pursuant to this paragraph.  If any financial statements referred to above are not delivered within the time periods specified in Section 6.1, then, until the date that is three Business Days after the date on which such financial statements are delivered, the highest rate set forth in each column of the Pricing Grid shall apply.

 

“Properties”:  shall have the meaning set forth in Section 4.17(a).

 

“Purchase Money Indebtedness” means Indebtedness of the Borrower and its Restricted Subsidiaries incurred for the purpose of financing all or any part of the purchase price, or the cost of installation, construction or improvement, of property or equipment that is used or is useful in a Similar Business (including through the purchase of Capital Stock of any Person owning such assets).

 

“Qualified Capital Stock” means any Capital Stock that is not Disqualified Capital Stock.

 

“Qualified Counterparty”:  shall mean with respect to any Swap Agreement, any counterparty thereto that (a) is a Lender or an Affiliate of a Lender on the Closing Date or (b) at the time such Swap Agreement was entered into, was a Lender or an Affiliate of a Lender.

 

“Qualified Proceeds” means any of the following or any combination of the following:

 

(1)           cash and Cash Equivalents;

 

(2)           the fair market value of assets that are used or useful in a Similar Business; and

 

(3)           Capital Stock of a Person engaged in a Similar Business.

 

“Real Property”:  shall mean, 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 and appurtenant fixtures and equipment, all general intangibles and contract rights and other property and rights incidental to the ownership, lease or operation thereof.

 

“Refinance” means, in respect of any security or Indebtedness, to refinance, extend, renew, refund, repay, prepay, redeem, defease or retire, or to issue a security or Indebtedness in exchange or replacement for, such security or Indebtedness in whole or in part.  “Refinanced” and “Refinancing” shall have correlative meanings.

 

“Refinancing Indebtedness” means any Refinancing by the Borrower or any Restricted Subsidiary of the Borrower of Indebtedness incurred in accordance with Section 7.2 (other than pursuant to clauses (b), (d), (e), (f), (g), (h), (i), (j), (l), (m), (n) or (o) of the second paragraph of Section 7.2), in each case that does not:

 

(1)           create Indebtedness with an aggregate principal amount in excess of the aggregate principal amount of Indebtedness of such Person being Refinanced (plus accrued interest, premiums paid and the amount of fees and expenses incurred by the Borrower in connection with such Refinancing); or

 

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(2)           create Indebtedness with:  (a) a Weighted Average Life to Maturity that is less than the Weighted Average Life to Maturity of the Indebtedness being Refinanced; or (b) a final maturity earlier than the earlier of (i) the final maturity of the Indebtedness being Refinanced or (ii) the final maturity of the notes plus six months; provided that (x) if such Indebtedness being Refinanced is Indebtedness solely of the Borrower and the Guarantors (and is not otherwise guaranteed by a Restricted Subsidiary of the Borrower), then such Refinancing Indebtedness shall be Indebtedness of the Borrower and/or the Guarantors and (y) if such Indebtedness being Refinanced is subordinate in right of payment to the Obligations, then such Refinancing Indebtedness shall be subordinate in right of payment to the Obligations, as the case may be, at least to the same extent and in the same manner as the Indebtedness being Refinanced.

 

“Refunded Swingline Loans”:  shall have the meaning set forth in Section 2.7(b).

 

“Register”:  shall have the meaning set forth in Section 10.6(c).

 

“Registration Rights Agreement” means the Registration Rights Agreement, dated as of the Closing Date, among the Borrower, the Guarantors and the Initial Purchasers.

 

“Regulated Entity”:  shall mean any existing and future direct and indirect Restricted Subsidiary of the Borrower that is (i) an insurance company, (ii) a company regulated as an insurance company or (iii) otherwise subject to regulation by any governmental authority and for which the incurrence of debt (including guarantees) or the granting of Liens with respect to its assets would be prohibited or restricted or would result in a negative impact on any minimum risk-based capital, capital or similar requirement applicable to it.

 

“Regulation D”:  shall mean Regulation D of the Board as in effect from time to time.

 

“Regulation S-X”:  shall mean Regulation S-X under the Securities Exchange Act of 1934.

 

“Regulation U”:  shall mean Regulation U of the Board as in effect from time to time.

 

“Reimbursement Obligation”:  shall mean the obligation of the Borrower to reimburse the Issuing Bank pursuant to Section 3.5 for amounts drawn under any Letter of Credit.

 

“Release”:  shall mean any spilling, leaking, seepage, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, disposing, depositing, dispersing, emanating or migrating of any Material of Environmental Concern in, into, onto or through the Environment, or in, onto or from any building or structure.

 

“Reorganization”:  shall mean, with respect to any Multiemployer Plan, the condition that such plan is in reorganization within the meaning of Section 4241 of ERISA.

 

“Reportable Event”:  shall mean any of the events set forth in Section 4043(c) of ERISA, other than those events as to which the thirty day notice period is waived by applicable regulations under Section 4043 of ERISA.

 

“Required Lenders”:  shall mean, at any time, the holders (other than Defaulting Lenders) of more than 50% of the sum of (i) the aggregate unpaid principal amount of the Term Loan Commitments or Term Loans then outstanding and (ii) the Total Commitments then in effect or, if the

 

32

 

Commitments have been terminated, the Total Extensions of Credit then outstanding, excluding any Loans or Commitments held by an Affiliate of the Borrower at such time.

 

“Requirements of Law”:  shall mean, as to any Person, the certificate of incorporation and by-laws or other organizational or governing documents of such Person, and any law, 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”:  shall mean the chief executive officer, president, vice president, chief financial officer, treasurer or the chief accounting officer of the Borrower.

 

“Restricted Payment”:  shall have the meaning set forth in Section 7.6.

 

“Restricted Subsidiary” of any Person means any Subsidiary of such Person which at the time of determination is not an Unrestricted Subsidiary.

 

“Revolving Lender”:  shall mean at any time, each Lender that has a Commitment or holds an Extension of Credit at such time.

 

“Revolving Loans”:  shall have the meaning assigned to such term in Section 2.4(a).

 

“Revolving Note”:  shall mean a promissory note made by the Borrower in favor of a Lender evidencing the Revolving Loans made by such Lender, substantially in the form of Exhibit E-1 to the Original Credit Agreement, and any amendments, supplements and modifications thereto, any substitutes therefor, and any replacements, restatements, renewals or extension thereof, in whole or in part.

 

“Revolving Obligations” means all Secured Obligations other than the Term Loan Obligations; provided that “Revolving Obligations” shall exclude any Excluded Swap Obligations and any Secured Swap Obligations.

 

“S&P”:  shall have the meaning set forth in the definition of “Cash Equivalents”.

 

“Sale and Leaseback Transaction”:  shall mean any direct or indirect arrangement with any Person or to which any such Person is a party, providing for the leasing to the Borrower or a Restricted Subsidiary of Borrower of any property, whether owned by the Borrower or any Restricted Subsidiary at the Closing Date or later acquired, which has been or is to be sold or transferred by the Borrower or such Restricted Subsidiary to such Person or to any other Person from whom funds have been or are to be advanced by such Person on the security of such Property.

 

“SEC”:  shall mean the Securities and Exchange Commission, any successor thereto and any analogous Governmental Authority.

 

“Second Lien Notes”:  shall mean the $350,000,000 in aggregate principal amount of 8-7/8% senior secured notes due 2017 issued by the Borrower on the Closing Date.

 

“Second Lien Notes Documentation”:  shall mean the Second Lien Notes Indenture and any other documents delivered pursuant thereto.

 

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“Second Lien Notes Indenture”: shall mean the indenture dated of the Closing Date pursuant to which the Second Lien Notes were issued.

 

“Secured Cash Management Agreement” means any Cash Management Agreement permitted under Sections 6 and 7 of this Agreement that is entered into by and between any Loan Party or any of its Restricted Subsidiaries and a Cash Management Bank.

 

“Secured Indebtedness” means any Indebtedness secured by a Lien other than Indebtedness with respect to Cash Management Services.

 

“Secured Obligations” has the meaning assigned to such term in the Guaranty and Collateral Agreement; provided that the “Secured Obligations” shall exclude any Excluded Swap Obligations.

 

“Secured Parties”:  shall mean, collectively, the Administrative Agent, the Collateral Agent, each other Agent, the Lenders, each Qualified Counterparty to a Secured Swap Agreement and each Cash Management Bank with respect to Secured Cash Management Agreements.

 

“Secured Swap Agreement” means any Swap Agreement permitted under Sections 6 and 7 of this Agreement that is entered into by and between any Loan Party and a Qualified Counterparty and designated by the Borrower as a Secured Swap Agreement under the Loan Documents; provided, that any Swap Agreement between any Loan Party and a Qualified Counterparty in effect on the Amendment and Restatement Effective Date shall be deemed to be so designated as a Secured Swap Agreement.

 

“Security Documents”:  shall mean the collective reference to the Guaranty and Collateral Agreement, the Mortgages and all other security documents hereafter delivered to the Administrative Agent granting a Lien on any property of any Loan Party to secure the obligations and liabilities of any Loan Party under any Loan Document.

 

“Senior Subordinated Notes”:  shall mean $376,250,000 in aggregate principal amount of senior subordinated notes issued by the Borrower pursuant to the Senior Subordinated Notes Indenture and outstanding on the Closing Date.

 

“Senior Subordinated Notes Indenture”:  shall mean the indenture dated April 20, 2010 by and among the Borrower, Wells Fargo Bank, National Association, as trustee, and the other parties thereto, as amended or modified to the extent permitted hereby.

 

“Shareholders Agreement”:  shall mean that certain Securityholders Agreement, dated as of March 25, 2008 by and among Radiation Therapy Investments, LLC and the securityholders party thereto.

 

“Similar Business” means any business conducted or proposed to be conducted by the Borrower and its Restricted Subsidiaries on the Closing Date or any business that is the same, similar, complementary, reasonably related, incidental or ancillary thereto or a reasonable extension thereof, or other businesses to the extent as would not be material to the Borrower and its Subsidiaries taken as a whole.

 

“Solvent”:  shall mean, with respect to any Person, that, as of any date of determination, (a) the present fair salable value taken on a going concern basis of the assets of such Person will, as of such date, be greater than the amount that will be required to pay the probable liability of such Person on its debts as such debts become absolute and matured in the ordinary course of business, (b) such Person

 

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will not have, as of such date, an unreasonably small amount of capital with which to conduct its business, and (c) such Person will generally be able to pay its debts as they mature in the ordinary course of business.  The amount of contingent liabilities at any time shall be computed as the amount that can reasonably be expected to become an actual or matured liability.  For purposes of this definition, (i) “debt” means liability on a “claim,” and (ii) “claim” means any (x) right to payment, whether or not such a right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured or (y) right to an equitable remedy for breach of performance if such breach gives rise to a right to payment, whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured or unmatured, disputed, undisputed, secured or unsecured.

 

“Strategic Investors”: shall mean physicians, hospitals, health systems, other healthcare providers, other healthcare companies and other similar strategic joint venture partners which joint venture partners are actively involved in the day-to-day operations of providing radiation therapy and related services, or, in the case of physicians, that have retired therefrom, individuals who are former owners or employees of radiation therapy facilities purchased by the Borrower or any of its Restricted Subsidiaries.

 

“Subsidiary”, with respect to any Person, means:

 

(1)           any corporation of which the outstanding Capital Stock having at least a majority of the votes entitled to be cast in the election of directors under ordinary circumstances shall at the time be owned, directly or indirectly, by such Person; or

 

(2)           any other Person of which at least a majority of the voting interest under ordinary circumstances is at the time, directly or indirectly, owned by such Person.

 

Unless otherwise indicated, a Subsidiary shall be deemed to be a Subsidiary of Borrower.

 

“Subsidiary Guarantor”:  shall mean each Restricted Subsidiary of the Borrower other than any (a) Foreign Subsidiary, (b) Non-Wholly-Owned Subsidiary, to the extent such Non-Wholly-Owned Subsidiary is precluded from becoming a Subsidiary Guarantor (or, to so become, would require the consent of a third party that is a holder of Capital Stock of such Subsidiary) by the terms of such Non-Wholly-Owned Subsidiary’s organizational or related documents, (c) Subsidiary that is a Non-Profit Entity, (d) Insurance Subsidiary, (e) Subsidiary that is a Regulated Entity, (f) Immaterial Subsidiary, (g) Broker Dealer Subsidiary, (h) Subsidiary that is prohibited by applicable law from becoming a Subsidiary Guarantor, (i) Subsidiary to the extent the burden or cost of such Subsidiary becoming a Subsidiary Guarantor outweighs the benefit afforded thereby as determined by the Administrative Agent and the Borrower or (j) for the avoidance of doubt, Unrestricted Subsidiary; provided that any Person constituting a Guarantor as described above shall cease to constitute a Guarantor when its respective guarantee is otherwise released in accordance with the terms of the Loan Documents.

 

“Subordinated Indebtedness” means Indebtedness of the Borrower or any Guarantor that is subordinated or junior in right of payment to the Obligations.

 

“Survey”:  shall mean a survey of any Mortgaged Property (and all improvements thereon) which is (a) (i) prepared by a surveyor or engineer licensed to perform surveys in the jurisdiction where such Mortgaged Property is located, (ii) dated (or redated) not earlier than six months prior to the date of delivery thereof unless there shall have occurred within six months prior to such date of delivery any material exterior construction on the site of such Mortgaged Property or any easement, right of way or other interest in the Mortgaged Property has been granted or become effective through operation of law

 

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or otherwise with respect to such Mortgaged Property which, in either case, can be depicted on a survey, in which events, as applicable, such survey shall be dated (or redated) after the completion of such construction or if such construction shall not have been completed as of such date of delivery, not earlier than 20 days prior to such date of delivery, or after the grant or effectiveness of any such easement, right of way or other interest in the Mortgaged Property, (iii) certified by the surveyor (in a manner reasonably acceptable to the Administrative Agent) to the Administrative Agent and the Title Company, (iv) complying in all material respects with the minimum detail requirements of the American Land Title Association as such requirements are in effect on the date of preparation of such survey and (v) sufficient for the Title Company to remove all standard survey exceptions from the title insurance policy (or commitment) relating to such Mortgaged Property and issue the endorsements of the type required by Section 6.14(iii) of the Original Credit Agreement or (b) otherwise reasonably acceptable to the Administrative Agent.

 

“Swap Agreement”:  shall mean any agreement with respect to any swap, forward, future or derivative transaction or option or similar agreement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions; provided that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Borrower or any of its Subsidiaries shall be a “Swap Agreement.”

 

“Swap Obligations” 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.

 

“Swingline Commitment”:  shall mean the obligation of the Swingline Lender to make Swingline Loans pursuant to Section 2.6 in an aggregate principal amount at any one time outstanding not to exceed $15,000,000.

 

“Swingline Lender”:  shall mean Wells Fargo, in its capacity as the lender of Swingline Loans.

 

“Swingline Loans”:  shall have the meaning set forth in Section 2.6.

 

“Swingline Note”:  shall mean a promissory note made by the Borrower in favor of the Swingline Lender evidencing the Swingline Loans made by the Swingline Lender, substantially in the form of Exhibit E-2 to the Original Credit Agreement, and any amendments, supplements and modifications thereto, any substitutes therefor, and any replacements, restatements, renewals or extension thereof, in whole or in part.

 

“Swingline Participation Amount”:  shall have the meaning set forth in Section 2.7.

 

“Syndication Agent”:  shall mean SunTrust Bank, in its capacity as syndication agent hereunder.

 

“Taxes”:  shall mean any present or future income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions or withholdings (including additions to tax, penalties and interest), now or hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority.

 

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“Term Facility”:  means, at any time, (a) on or prior to the Amendment and Restatement Effective Date, the aggregate amount of the Term Loan Commitments at such time and (b) thereafter, the aggregate principal amount of the Term Loans of all Term Loan Lenders outstanding at such time.

 

“Term Loan”:  shall mean a Loan made pursuant to Section 2 of the Amendment Agreement.

 

“Term Loan Commitment”:  shall mean, as to any Lender, the obligation of such Lender, if any, to make a Term Loan to the Borrower on the Amendment and Restatement Effective Date pursuant to Section 2 of the Amendment Agreement.  The aggregate amount of the Term Loan Commitments immediately prior to the Amendment and Restatement Effective Date is $90,000,000.

 

“Term Loan Lender”:  shall mean each Lender that has a Term Loan Commitment or holds a Term Loan.

 

“Term Loan Maturity Date”:  shall mean the Termination Date.

 

“Term Loan Obligations” means all Obligations with respect to the Term Loans and all Secured Obligations (other than Obligations) with respect to (x) Secured Swap Agreements and (y) Secured Cash Management Agreements entered into with a Cash Management Bank that was a Term Loan Lender or an Affiliate of a Term Loan Lender (but not a Revolving Lender or an Affiliate of a Revolving Lender) at the time of entry into such Cash Management Agreement, as applicable; provided that the “Term Loan Obligations” shall exclude any Excluded Swap Obligations.

 

“Term Note”:  shall mean a promissory note made by the Borrower in favor of a Lender evidencing the portion of the Term Loan made by such Lender, substantially in the form of Exhibit E-3, and any amendments, supplements and modifications thereto, any substitutes therefor, and any replacements, restatements, renewals or extension thereof, in whole or in part.

 

“Termination Date”:  shall mean October 15, 2016, as such date may be extended pursuant to the terms hereof, or, if such date is not a Business Day, the next preceding Business Day.

 

“Third Party Payor Programs”:  shall mean all third party payor programs in which the Borrower and its Restricted Subsidiaries currently or in the future may participate, including, without limitation, Medicare, Medicaid, Blue Cross and/or Blue Shield, Managed Care Plans, other private insurance programs and employee assistance programs.

 

“Title Company”:  shall mean any title insurance company as shall be retained by Borrower and reasonably acceptable to the Administrative Agent.

 

“Title Policy”:  shall have the meaning assigned to such term in Section 6.14(iii) of the Original Credit Agreement.

 

“Total Assets”: shall mean, as of any date of determination, after giving pro forma effect to any acquisition of assets on such date, the sum of the amounts that would appear on the consolidated balance sheet of the Borrower and its Restricted Subsidiaries as the total assets of the Borrower and its Restricted Subsidiaries.

 

“Total Commitments”:  shall mean, at any time, the aggregate amount of the Commitments of the Lenders then in effect.

 

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“Total Extensions of Credit”:  shall mean, at any time, the aggregate amount of the Extensions of Credit of the Lenders outstanding at such time.

 

“Total Leverage Ratio”:  shall mean, as at the last day of any fiscal quarter, the ratio of (a) Consolidated Total Debt on such day to (b) the aggregate amount of Consolidated EBITDA of Borrower for the period of the most recent four consecutive fiscal quarters ending prior to the date of such determination for which internal consolidated financial statements of the Borrower are available, in each case, with such pro forma adjustments as are consistent with the pro forma adjustments set forth in the definition of “Consolidated Fixed Charge Coverage Ratio”.

 

“Transactions”:  shall mean the payment of the Closing Costs, the Debt Discharge, the Financing Transactions and the other transactions contemplated hereby.

 

“Type”:  shall mean, as to any Loan, its nature as an ABR Loan or a Eurodollar Loan.

 

“United States”:  shall mean the United States of America.

 

“United States Tax Compliance Certificate”:  shall have the meaning set forth in Section 2.19(e)(ii).

 

“Unrestricted Subsidiary” of any Person means (x) any Person listed in Schedule 1.1C to the Original Credit Agreement (unless and until designated as a Restricted Subsidiary pursuant to the provisions below) and (y):

 

(1)           any Subsidiary of such Person that at the time of determination shall be or continue to be designated an Unrestricted Subsidiary by the Board of Directors of such Person in the manner provided below; and

 

(2)           any Subsidiary of an Unrestricted Subsidiary.

 

The Board of Directors of such Person may designate any Subsidiary (including any newly acquired or newly formed Subsidiary) to be an Unrestricted Subsidiary unless such Subsidiary owns any Capital Stock of, or owns or holds any Lien on any property of, the Borrower or any Restricted Subsidiary of the Borrower that is not a Subsidiary of the Subsidiary to be so designated; provided that:

 

(1)           the Borrower delivers an officer’s certificate to the Administrative Agent that such designation complies with Section 7.6; and

 

(2)           each Subsidiary to be so designated and each of its Subsidiaries has not at the time of designation, and does not thereafter, create, incur, issue, assume, guarantee or otherwise become directly or indirectly liable with respect to any Indebtedness pursuant to which the lender has recourse to any of the assets of the Borrower or any of its Restricted Subsidiaries (other than the Capital Stock of Unrestricted Subsidiaries).

 

For purposes of making the determination of whether any such designation of a Subsidiary as an Unrestricted Subsidiary complies with Section 7.6, the portion of the fair market value of the net assets of such Subsidiary of the Borrower at the time that such Subsidiary is designated as an Unrestricted Subsidiary that is represented by the interest of the Borrower and its Restricted Subsidiaries in such Subsidiary, in each case as determined in good faith by the Board of Directors of the Borrower, shall be deemed to be an Investment.  Such designation will be permitted only if such Investment would be permitted at such time under Section 7.6.

 

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The Board of Directors of such Person may designate any Unrestricted Subsidiary to be a Restricted Subsidiary only if:

 

(1)           immediately after giving effect to such designation, the Borrower is able to incur at least $1.00 of additional Indebtedness under the first paragraph of Section 7.2; and

 

(2)           immediately before and immediately after giving effect to such designation, no Default or Event of Default shall have occurred and be continuing.  Any such designation by the Board of Directors shall be evidenced to the Administrative Agent by promptly filing with the Administrative Agent a copy of the Board Resolution giving effect to such designation and an officers’ certificate certifying that such designation complied with the foregoing provisions.

 

“Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the number of years obtained by dividing (a) the then outstanding aggregate principal amount of such Indebtedness into (b) the sum of the total of the products obtained by multiplying (i) the amount of each then remaining installment, sinking fund, serial maturity or other required payment of principal, including payment at final maturity, in respect thereof, by (ii) the number of years (calculated to the nearest one-twelfth) which will elapse between such date and the making of such payment.

 

“Wells Fargo”:  shall have the meaning set forth in the preamble.

 

“Wholly-Owned Subsidiary”:  shall mean, as to any Person, any other Person all of the Capital Stock of which (other than directors’ qualifying shares required by law) is owned by such Person directly and/or through other Wholly-Owned Subsidiaries.

 

1.2.         Other Definitional Provisions.

 

(a)           Unless otherwise specified therein, all terms defined in this Agreement shall have the defined meanings when used in the other Loan Documents or any certificate or other document made or delivered pursuant hereto or thereto.

 

(b)           As used herein and in the other Loan Documents, and any certificate or other document made or delivered pursuant hereto or thereto, (i) accounting terms relating to any Group Member not defined in Section 1.1 and accounting terms partly defined in Section 1.1, to the extent not defined, shall have the respective meanings given to them under GAAP, (ii) the words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation,” (iii) the word “incur” shall be construed to mean incur, create, issue, assume, become liable in respect of or suffer to exist (and the words “incurred” and “incurrence” shall have correlative meanings), (iv) 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, Capital Stock, securities, revenues, accounts, leasehold interests and contract rights, (v) references to agreements or other Contractual Obligations shall, unless otherwise specified, be deemed to refer to such agreements or Contractual Obligations as amended, supplemented, restated or otherwise modified from time to time and (vi) the word “knowledge” when used with respect to Borrower or any of its Subsidiaries shall be deemed to be a reference to the knowledge of any Responsible Officer.  Anything in this Agreement to the contrary notwithstanding, any obligation of a Person under a lease (whether existing now or entered into in the future) that is not (or would not be) required to be classified and accounted for as a capital lease on the balance sheet of such Person under GAAP as in effect either on the Closing Date or at the time such lease is entered into shall not be treated as a capital lease solely as a result of (x) the adoption of any changes in, or (y) changes in the application of, GAAP after the Closing Date.

 

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(c)           The words “hereof,” “herein” and “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section, Schedule and Exhibit references are to this Agreement unless otherwise specified.

 

(d)           The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms.

 

1.3.         UCC Terms.  Terms defined in the UCC in effect on the Closing Date and not otherwise defined herein shall, unless the context otherwise indicates, have the meanings provided by those definitions.  Subject to the foregoing, the term “UCC” refers, as of any date of determination, to the UCC then in effect.

 

1.4.         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).

 

1.5.         References to Agreement and Laws.  Unless otherwise expressly provided herein, references to formation documents, governing documents, agreements (including the Loan Documents) and other contractual instruments shall be deemed to include all subsequent amendments, restatements, extensions, supplements and other modifications thereto, but only to the extent that such amendments, restatements, extensions, supplements and other modifications are not prohibited by any Loan Document.

 

The Obligations under the Original Credit Agreement as of the Amendment and Restatement Effective Date shall continue to exist under this Agreement on the terms set forth herein, (b) the loans under the Original Credit Agreement outstanding as of the Amendment and Restatement Effective Date shall be Loans under and as defined in this Agreement on the terms set forth herein, (c) any letters of credit outstanding under the Original Credit Agreement as of the Amendment and Restatement Effective Date shall be Letters of Credit under and as defined in this Agreement and (d) the Collateral and the Loan Documents shall continue to secure, guarantee, support and otherwise benefit the Obligations as well as the other Obligations of the Borrower and the other Loan Parties under this Agreement and the other Loan Documents.

 

1.6.         Times of Day.  Unless otherwise specified, all references herein to times of day shall be references to Eastern time (daylight or standard, as applicable).

 

1.7.         Timing of Payment or Performance.  Unless otherwise specified, when the payment of any obligation or the performance of any covenant, duty or obligation is stated to be due or performance required on a day which is not a Business Day, the date of such payment or performance shall extend to the immediately succeeding Business Day.

 

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SECTION 2

 

AMOUNT AND TERMS OF COMMITMENTS

 

2.1.         Term Loan Commitments.

 

(a)           Subject to the terms and conditions hereof, each Term Loan Lender with a Term Loan Commitment severally agrees to make the Term Loan to the Borrower on the Amendment and Restatement Effective Date pursuant to Section 2 of the Amendment Agreement.

 

(b)           For the avoidance of doubt, Term Loans shall not be considered Eurodollar Loans or ABR Loans and will bear interest as set forth in Section 2.14.

 

2.2.         Procedure for Term Loan Borrowings.  The Borrower shall give the Administrative Agent irrevocable Borrowing Notice (which notice must be received by the Administrative Agent prior to a time reasonably acceptable to the Administrative Agent on the Borrowing Date.  Upon receipt of any such Borrowing Notice the Administrative Agent shall promptly notify each applicable Lender thereof.  Not later than 12:00 Noon, on the Borrowing Date, each Term Loan Lender shall make available to the Administrative Agent at the Funding Office an amount in immediately available funds equal to its new term loan being made as a Term Loan on the Borrowing Date; provided that certain Term Loans made on the Amendment and Restatement Effective Date shall be made through a conversion of Revolving Loans into Term Loans, as set forth in the Amendment Agreement.  The Administrative Agent shall credit the account of the Borrower on the books of such office of the Administrative Agent with the aggregate of the amounts of Term Loans made available on the Borrowing Date to the Administrative Agent by the Term Loan Lenders in immediately available funds.

 

2.3.         Repayment of Term Loans.  Subject to Section 2.26, the Borrower shall repay the entire remaining balance of the Term Loans on the Term Loan Maturity Date.

 

2.4.         Revolving Commitments.

 

(a)           Subject to the terms and conditions hereof, each Lender severally agrees to make revolving credit loans (“Revolving Loans”) to the Borrower from time to time during the Commitment Period in an aggregate principal amount at any one time outstanding which, when added to such Lender’s Applicable Percentage of the sum of (i) the L/C Exposure at such time and (ii) the aggregate principal amount of the Swingline Loans then outstanding, does not exceed the amount of such Lender’s Commitment.  During the Commitment Period the Borrower may use the Commitments by borrowing, prepaying the Revolving Loans in whole or in part, and reborrowing, all in accordance with the terms and conditions hereof.  The Revolving Loans may from time to time be Eurodollar Loans or ABR Loans, as determined by the Borrower and notified to the Administrative Agent in accordance with Sections 2.5 and 2.12.

 

(b)           The Borrower shall repay all outstanding Revolving Loans on the Termination Date.

 

2.5.         Procedure for Revolving Loan Borrowing.  The Borrower may borrow under the Commitments on any Business Day during the Commitment Period, provided that the Borrower shall give the Administrative Agent an irrevocable Borrowing Notice (which notice must be received by the Administrative Agent prior to 12:00 Noon, (a) three Business Days prior to the requested Borrowing Date, in the case of Eurodollar Loans, or (b) on the Business Day of the requested Borrowing Date, in the case of ABR Loans), specifying (i) the amount and Type of Revolving Loans to be borrowed, (ii) the

 

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requested Borrowing Date and (iii) in the case of Eurodollar Loans, the respective amounts of each such Type of Loan and the respective lengths of the initial Interest Period therefor.  Each borrowing under the Commitments shall be in an amount equal to (x) in the case of ABR Loans, $500,000 or a whole multiple of $100,000 over such amount (or, if the then aggregate Available Commitments of all Lenders are less than $500,000, such lesser amount) and (y) in the case of Eurodollar Loans, $1,000,000 or a whole multiple of $100,000 in excess thereof; provided that the Swingline Lender may request, on behalf of the Borrower, borrowings under the Commitments that are ABR Loans in other amounts pursuant to Section 2.6.  Upon receipt of any such notice from the Borrower, the Administrative Agent shall promptly notify each Revolving Lender thereof.  Each Revolving Lender will make the amount of its pro rata share of each borrowing available to the Administrative Agent for the account of the Borrower at the Funding Office prior to 2:00 P.M. on the Borrowing Date requested by the Borrower in funds immediately available to the Administrative Agent.  Such borrowing will then be made available to the Borrower by the Administrative Agent crediting the account of the Borrower on the books of such office with the aggregate of the amounts made available to the Administrative Agent by the Revolving Lenders and in like funds as received by the Administrative Agent.

 

2.6.         Swingline Commitment.

 

(a)           Subject to the terms and conditions hereof, the Swingline Lender agrees to make a portion of the credit otherwise available to the Borrower under the Commitments from time to time during the Commitment Period by making swing line loans (“Swingline Loans”) to the Borrower; provided that (i) the aggregate principal amount of Swingline Loans outstanding at any time shall not exceed the Swingline Commitment then in effect (notwithstanding that the Swingline Loans outstanding at any time, when aggregated with the Swingline Lender’s other outstanding Revolving Loans, may exceed the Swingline Commitment then in effect) and (ii) the Borrower shall not request, and the Swingline Lender shall not make, any Swingline Loan if, after giving effect to the making of such Swingline Loan, the aggregate amount of the Available Commitments of all Revolving Lenders would be less than zero.  During the Commitment Period, the Borrower may use the Swingline Commitment by borrowing, repaying and reborrowing, all in accordance with the terms and conditions hereof.  Swingline Loans shall be ABR Loans only.

 

(b)           The Borrower shall repay to the Swingline Lender the then unpaid principal amount of each Swingline Loan on the Termination Date; provided that on each date that a Revolving Loan is borrowed, the Borrower shall repay all Swingline Loans then outstanding.

 

2.7.         Procedure for Swingline Borrowing; Refunding of Swingline Loans.

 

(a)           Whenever the Borrower desires that the Swingline Lender make Swingline Loans it shall give the Swingline Lender irrevocable telephonic notice confirmed promptly in writing (which telephonic notice must be received by the Swingline Lender not later than 2:00 P.M., on the proposed Borrowing Date), specifying (i) the amount to be borrowed and (ii) the requested Borrowing Date (which shall be a Business Day during the Commitment Period).  Each borrowing under the Swingline Commitment shall be in an amount equal to $100,000 or a whole multiple of $100,000 in excess thereof.  Not later than 3:00 P.M., on the Borrowing Date specified in a notice in respect of Swingline Loans, the Swingline Lender shall make available to the Administrative Agent at the Funding Office an amount in immediately available funds equal to the amount of the Swingline Loan to be made by the Swingline Lender.  The Administrative Agent shall make the proceeds of such Swingline Loan available to the Borrower on such Borrowing Date by depositing such proceeds in the account of the Borrower with the Administrative Agent on such Borrowing Date in immediately available funds.

 

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(b)           The Swingline Lender, at any time and from time to time in its sole and absolute discretion may, on behalf of the Borrower (which hereby irrevocably directs the Swingline Lender to act on its behalf), by delivery of a Borrowing Notice given no later than 10:00 A.M., on any Business Day request each Revolving Lender to make, and each Revolving Lender hereby agrees to make, a Revolving Loan, in an amount equal to such Revolving Lender’s Applicable Percentage of the aggregate amount of the Swingline Loans (the “Refunded Swingline Loans”) outstanding on the date of such notice, to repay the Swingline Lender.  Each Revolving Lender shall make the amount of such Revolving Loan available to the Administrative Agent at the Funding Office in immediately available funds, upon receipt of notice as provided above.  The proceeds of such Revolving Loans shall be immediately made available by the Administrative Agent to the Swingline Lender for application by the Swingline Lender to the repayment of the Refunded Swingline Loans.  The Borrower irrevocably authorizes the Swingline Lender to charge the Borrower’s accounts with the Administrative Agent (up to the amount available in each such account) in order to immediately pay the amount of such Refunded Swingline Loans to the extent amounts received from the Revolving Lenders are not sufficient to repay in full such Refunded Swingline Loans.

 

(c)           If prior to the time a Revolving Loan would have otherwise been made pursuant to Section 2.7(b), one of the events described in Section 8(f) shall have occurred and be continuing with respect to the Borrower or if for any other reason, as determined by the Swingline Lender in its sole discretion, Revolving Loans may not be made as contemplated by Section 2.7(b), each Revolving Lender shall, on the date such Revolving Loan was to have been made pursuant to the notice referred to in Section 2.7(b), purchase for cash an undivided participating interest in the then outstanding Swingline Loans by paying to the Swingline Lender an amount (the “Swingline Participation Amount”) equal to (i) such Revolving Lender’s Applicable Percentage times (ii) the sum of the aggregate principal amount of Swingline Loans then outstanding that were to have been repaid with such Revolving Loans.

 

(d)           Whenever, at any time after the Swingline Lender has received from any Lender such Lender’s Swingline Participation Amount, the Swingline Lender receives any payment on account of the Swingline Loans, the Swingline Lender will distribute to such Lender its Swingline Participation Amount (appropriately adjusted, in the case of interest payments, to reflect the period of time during which such Lender’s participating interest was outstanding and funded and, in the case of principal and interest payments, to reflect such Lender’s pro rata portion of such payment if such payment is not sufficient to pay the principal of and interest on all Swingline Loans then due); provided, however, that in the event that such payment received by the Swingline Lender is required to be returned, such Lender will return to the Swingline Lender any portion thereof previously distributed to it by the Swingline Lender.

 

(e)           Each Revolving Lender’s obligation to make the Loans referred to in Section 2.7(b) and to purchase participating interests pursuant to Section 2.7(c) shall be absolute and unconditional and shall not be affected by any circumstance, including (i) any setoff, counterclaim, recoupment, defense or other right that such Revolving Lender or the Borrower may have against the Swingline Lender, the Borrower or any other Person for any reason whatsoever, (ii) the occurrence or continuance of a Default or an Event of Default or the failure to satisfy any of the other conditions specified in Section 5, (iii) any adverse change in the condition (financial or otherwise) of the Borrower, (iv) any breach of this Agreement or any other Loan Document by the Borrower, any other Loan Party or any other Revolving Lender or (v) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing; provided that a Revolving Lender shall not be required to make a Loan referred to in Section 2.7(b) or to purchase a participation in a Swingline Loan pursuant to Section 2.7(c) if (x) an Event of Default shall have occurred and was continuing at the time such Swingline Loan was made and (y) such Revolving Lender shall have notified the Swingline Lender in writing, not less than one Business Day before such Swingline Loan was made, that such Event of Default has occurred and that such Revolving Lender will not refund or participate in any Swingline Loans made while such Event of Default exists.

 

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2.8.         Commitment Fees, Etc.

 

(a)           The Borrower agrees to pay to the Administrative Agent for the account of each Revolving Lender (other than a Defaulting Lender) a commitment fee for the period from and including the Closing Date to but excluding the last day of the Commitment Period, computed at the Commitment Fee Rate on the average daily amount of the Available Commitment of such Lender, payable quarterly in arrears on each Fee Payment Date, commencing on the first such date to occur after the Closing Date; provided, however, solely for purposes of this calculation, an amount equal to such Lender’s Applicable Percentage of the Swingline Loans then outstanding shall not be deemed to reduce such Lender’s Available Commitment during the period for which payment is made.

 

(b)           The Borrower agrees to pay to the Administrative Agent the fees in the amounts and on the dates as set forth in the Administrative Agent Fee Letter.

 

2.9.         Termination or Reduction of Commitments.

 

(a)           Subject to Section 3.1, the Borrower shall have the right, upon not less than three Business Days’ notice to the Administrative Agent, to terminate the Commitments or, from time to time, to reduce the amount of the Commitments; provided that no such termination or reduction of Commitments shall be permitted if, after giving effect thereto and to any prepayments of the Revolving Loans and Swingline Loans made on the effective date thereof, the Total Extensions of Credit would exceed the Total Commitments; provided further that a notice of termination of the Commitments delivered by the Borrower may state that such notice is conditioned upon the effectiveness of other credit facilities or other debt instruments, in which case such notice may be revoked by the Borrower (by written notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied; provided further that all such reductions of Commitments shall be made ratably among the Lenders.  Any such reduction shall be in an amount equal to $1,000,000, or a whole multiple thereof (or such lesser amount as may equal the remaining amount of the Commitments) and shall reduce permanently the Commitments to which such reduction is so allocated.

 

(b)           As of the Amendment and Restatement Effective Date (i) the Commitment of each Revolving Lender shall be reduced on a pro rata basis until the Total Commitments of the Revolving Lenders as of such date equals $100,000,000 and (ii) the Term Loan Commitments shall terminate upon the funding of the Term Loans pursuant to Section 2 of the Amendment Agreement.

 

(c)           Unless previously terminated, the Commitments shall terminate on the Termination Date.

 

2.10.       Optional Prepayments.  The Borrower may at any time and from time to time prepay the Loans, in whole or in part, without (other than as set forth in the second paragraph of this Section 2.10) premium or penalty, upon irrevocable (unless otherwise agreed by the Administrative Agent) notice delivered to the Administrative Agent no later than 12:00 Noon, three Business Days prior thereto, in the case of Eurodollar Loans, and no later than 12:00 Noon, one Business Day prior thereto, in the case of ABR Loans (or on the same day in the case of Swingline Loans), which notice shall specify the date and amount of prepayment and whether the prepayment is of Eurodollar Loans or ABR Loans; provided that if a Eurodollar Loan is prepaid on any day other than the last day of the Interest Period applicable thereto, the Borrower shall also pay any amounts owing pursuant to Section 2.20.  Upon receipt of any such notice the Administrative Agent shall promptly notify each relevant Lender thereof.  If any such notice is given, the amount specified in such notice shall be due and payable on the date specified therein, together with accrued interest to such date on the amount prepaid.  Partial prepayments of Term Loans and Revolving Loans shall be in an aggregate principal amount of $500,000 or a whole

 

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multiple thereof (unless a lesser amount is required to repay such loan in full); provided further that a notice of termination of the Commitments delivered by the Borrower may state that such notice is conditioned upon the effectiveness of other credit facilities or other debt instruments, in which case such notice may be revoked by the Borrower (by written notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied.  Partial prepayments of Swingline Loans shall be in an aggregate principal amount of $100,000 or a whole multiple thereof.

 

If any Term Loans are repaid on the Term Loan Maturity Date or prepaid prior to the Term Loan Maturity Date pursuant to this Section 2.10 or upon acceleration of the Term Loans in accordance with the terms of this Agreement, Borrower shall pay ratably to the Term Lenders a cash prepayment premium simultaneously with such repayment or prepayment in a cash amount equal to (x) if such prepayment occurs on or after the second anniversary of the Amendment and Restatement Effective Date but prior to the date that is two years and six months after the Amendment and Restatement Effective Date, 1.0% of the aggregate principal amount of Term Loans prepaid, (y) if such prepayment occurs on or after the date that is two years and six months after the Amendment and Restatement Effective Date but prior to the third anniversary of the Amendment and Restatement Effective Date, 1.5% of the aggregate principal amount of Term Loans prepaid and (z) if such repayment or prepayment occurs on or after the third anniversary of the Amendment and Restatement Effective Date, 2.0% of the aggregate principal amount of Term Loans so repaid or prepaid; provided that, for the avoidance of doubt, if such prepayment is made prior to the second anniversary of the Amendment and Restatement Effective Date, no such prepayment premium shall apply. If, on or after the second anniversary of the Amendment and Restatement Effective Date, any Lender that is a Non-Consenting Lender is replaced pursuant to Section 2.22 in connection with any amendment, amendment and restatement or other modification of this Agreement, such Lender (and not any Person who replaces such Lender pursuant to Section 2.22) shall receive from Borrower the premium described in the preceding sentence with respect to its Term Loans as if it were being prepaid.

 

2.11.       Mandatory Prepayments.  If at any time the Total Extensions of Credit shall exceed the Commitments then in effect, the Borrower shall thereupon prepay the principal amount of Swingline Loans and, after all Swingline Loans have been paid in full, Revolving Loans in amount equal to such excess.  If, after giving effect to the prepayment of all outstanding Swingline Loans and Revolving Loans, the Total Extensions of Credit exceed the Commitments then in effect, the Borrower shall Cash Collateralize the L/C Exposure to the extent of such excess.

 

2.12.       Conversion and Continuation Options.

 

(a)           The Borrower may elect from time to time to convert Eurodollar Loans to ABR Loans by giving the Administrative Agent an irrevocable Interest Election Request no later than 12:00 Noon, on the Business Day preceding the proposed conversion date.  The Borrower may elect from time to time to convert ABR Loans to Eurodollar Loans by giving the Administrative Agent an irrevocable Interest Election Request no later than 12:00 Noon, on the third Business Day preceding the proposed conversion date (which notice shall specify the length of the initial Interest Period therefor), provided that no ABR Loan may be converted into a Eurodollar Loan in excess of one month when any Event of Default under Section 8(a) or (f) has occurred and is continuing and the Administrative Agent or the Required Lenders have determined in its or their sole discretion not to permit such conversions.  Upon receipt of any such notice the Administrative Agent shall promptly notify each relevant Lender thereof.

 

(b)           Any Eurodollar Loan may be continued as such upon the expiration of the then current Interest Period with respect thereto by the Borrower giving irrevocable notice to the Administrative Agent, in accordance with the applicable provisions of the term “Interest Period” set forth in Section 1.1, of the length of the next Interest Period to be applicable to such Loans, provided that no

 

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Eurodollar Loan may be continued as such at the end of the applicable Interest Period for more than one month when any Event of Default has occurred and is continuing and the Administrative Agent has or the Required Lenders have determined in its or their sole discretion not to permit such continuations, and provided further that if the Borrower shall fail to give any required notice as described above in this paragraph such Loans shall be automatically converted to ABR Loans on the last day of such then expiring Interest Period.  Upon receipt of any such notice the Administrative Agent shall promptly notify each relevant Lender thereof.

 

2.13.       Limitations on Eurodollar Tranches.  Notwithstanding anything to the contrary in this Agreement, all borrowings, conversions and continuations of Eurodollar Loans and all selections of Interest Periods shall be in such amounts and be made pursuant to such elections so that, (a) after giving effect thereto, the aggregate principal amount of the Eurodollar Loans comprising each Eurodollar Tranche shall be equal to $1,000,000 or a whole multiple of $100,000 in excess thereof and (b) no more than eight Eurodollar Tranches shall be outstanding at any one time.

 

2.14.       Interest Rates and Payment Dates.

 

(a)           Each Eurodollar Loan shall bear interest for each day during each Interest Period with respect thereto at a rate per annum equal to the Eurodollar Rate determined for such day plus the Applicable Margin.

 

(b)           Each ABR Loan, including each Swingline Loan, shall bear interest at a rate per annum equal to the ABR plus the Applicable Margin.

 

(c)           Upon the occurrence and during the continuance of an Event of Default under Section 8(a) or 8(f) or, at the election of the Required Lenders, upon the occurrence and during the continuation of any other Event of Default, (i) the principal amount of any Loan or Reimbursement Obligation not paid when due (whether at the state maturity, by acceleration or otherwise) shall bear interest at a rate per annum equal to (x) in the case of the Loans, the rate that would otherwise be applicable thereto pursuant to the foregoing provisions of this Section 2.14 plus 2% or (y) in the case of Reimbursement Obligations in respect of an L/C Disbursement, a rate equal to the sum of (A) ABR plus (B) the Applicable Margin for Revolving Loans that are ABR Loans plus in each case 2%, and (ii) any interest payable on any Loan or Reimbursement Obligation or any fee or other amount payable hereunder not be paid when due (whether at the stated maturity, by acceleration or otherwise) shall bear interest at a rate per annum equal to the rate then applicable to ABR Loans plus 2%, in each case, with respect to clauses (i) and (ii) above, from the date of such non-payment until such overdue amount is paid in full (as well after as before judgment).

 

(d)           Interest shall be payable in arrears on each Interest Payment Date, provided that interest accruing pursuant to Section 2.14(c) shall be payable from time to time on demand by the Administrative Agent.

 

2.15.       Computation of Interest and Fees.

 

(a)           Interest and fees payable pursuant hereto shall be calculated on the basis of a 360-day year for the actual days elapsed, except that, with respect to ABR Loans the rate of interest on which is calculated on the basis of the Prime Rate, the interest thereon shall be calculated on the basis of a 365- (or 366-, as the case may be) day year for the actual days elapsed.  The Administrative Agent shall as soon as practicable notify the Borrower and the relevant Lenders of each determination of a Eurodollar Rate.  Any change in the interest rate on a Loan resulting from a change in the ABR or the Eurocurrency Reserve Requirements shall become effective as of the opening of business on the day on which such

 

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change becomes effective.  The Administrative Agent shall as soon as practicable notify the Borrower and the relevant Lenders of the effective date and the amount of each such change in interest rate.

 

(b)           Each determination of an interest rate by the Administrative Agent pursuant to any provision of this Agreement shall be conclusive and binding on the Borrower and the Lenders in the absence of manifest error.  The Administrative Agent shall, at the request of the Borrower, deliver to the Borrower a statement showing the quotations used by the Administrative Agent in determining any interest rate pursuant to Section 2.14(a).

 

2.16.       Inability to Determine Interest Rate.  If prior to the first day of any Interest Period:

 

(a)           the Administrative Agent shall have determined (which determination shall be conclusive and binding upon the Borrower) that, by reason of circumstances affecting the relevant market, adequate and reasonable means do not exist for ascertaining the Eurodollar Rate for such Interest Period, or

 

(b)           the Administrative Agent shall have received notice from the Required Lenders that the Eurodollar Rate determined or to be determined for such Interest Period will not adequately and fairly reflect the cost to such Lenders (as conclusively certified by such Lenders) of making or maintaining their affected Loans during such Interest Period,

 

the Administrative Agent shall give telecopy or telephonic notice thereof to the Borrower and the relevant Lenders as soon as practicable thereafter.  If such notice is given (x) any Eurodollar Loans requested to be made on the first day of such Interest Period shall be made as ABR Loans, (y) any Loans that were to have been converted on the first day of such Interest Period to Eurodollar Loans shall be continued as ABR Loans and (z) any outstanding Eurodollar Loans shall be converted, on the last day of the then-current Interest Period, to ABR Loans.  Until such notice has been withdrawn by the Administrative Agent (which the Administrative Agent shall withdraw promptly upon obtaining knowledge that the circumstances giving rise to such inability no longer exist), no further Eurodollar Loans shall be made or continued as such, nor shall the Borrower have the right to convert Loans to Eurodollar Loans.

 

2.17.       Pro Rata Treatment and Payments.

 

(a)           Each borrowing by the Borrower from the Lenders hereunder and any reduction of the Commitments of the Lenders shall be made pro rata according to the respective Term Loan Commitments or Commitments as the case may be, of the relevant Lenders.  Each payment by the Borrower on account of commitment fees hereunder shall be made pro rata according to the respective Commitments of the relevant Lenders.

 

(b)           Each payment (including each prepayment) by the Borrower on account of principal of and interest on the Term Loans shall be made (i) in the case of principal, pro rata according to the respective outstanding principal amounts of the Term Loans then held by the Term Loan Lenders, and (ii) in the case of interest, pro rata according to the respective amounts of accrued and unpaid interest on the Term Loans then due to the Term Loan Lenders.  Amounts prepaid on account of the Term Loans may not be reborrowed.

 

(c)           Each payment (including each prepayment) by the Borrower on account of principal of and interest on the Revolving Loans shall be made (i) in the case of principal, pro rata according to the respective outstanding principal amounts of the Revolving Loans then held by the

 

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Lenders and (ii) in the case of interest, pro rata according to the respective amounts of accrued and unpaid interest on the Revolving Loans then due to the Lenders.

 

(d)           All payments (including prepayments) to be made by the Borrower hereunder, whether on account of principal, interest, fees or otherwise, shall be made without setoff or counterclaim and shall be made prior to 2:00 P.M., on the due date thereof to the Administrative Agent at the Funding Office, in Dollars and in immediately available funds.  The Administrative Agent shall distribute such payments to the applicable Lenders (or, in the case of amounts payable to them, to the Swingline Lender or Issuing Bank, or, in the case of amounts payable to it, retained by the Administrative Agent) promptly upon receipt in like funds as received.  If any payment hereunder (other than payments on the Eurodollar Loans) becomes due and payable on a day other than a Business Day, such payment shall be extended to the next succeeding Business Day.  If any payment on a Eurodollar Loan becomes due and payable on a day other than a Business Day, the maturity thereof shall be extended to the next succeeding Business Day unless the result of such extension would be to extend such payment into another calendar month, in which event such payment shall be made on the immediately preceding Business Day.  In the case of any extension of any payment of principal pursuant to the preceding two sentences, interest thereon shall be payable at the then applicable rate during such extension.

 

(e)           Unless the Administrative Agent shall have been notified in writing by any Revolving Lender prior to a borrowing that such Lender will not make the amount that would constitute its share of such borrowing available to the Administrative Agent, the Administrative Agent may assume that such Lender is making such amount available to the Administrative Agent, and the Administrative Agent may, in reliance upon such assumption, make available to the Borrower a corresponding amount.  If such amount is not made available to the Administrative Agent by the required time on the Borrowing Date therefor, such Lender shall pay to the Administrative Agent, on demand, such amount with interest thereon, at a rate equal to the greater of (i) the Federal Funds Effective Rate and (ii) a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation, for the period until such Lender makes such amount immediately available to the Administrative Agent.  A certificate of the Administrative Agent submitted to any Revolving Lender with respect to any amounts owing under this paragraph shall be conclusive in the absence of manifest error.  If such Lender’s share of such borrowing is not made available to the Administrative Agent by such Lender within three Business Days after such Borrowing Date, the Administrative Agent shall also be entitled to recover such amount with interest thereon at the rate per annum applicable to ABR Loans, on demand, from the Borrower.  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.

 

(f)            Unless the Administrative Agent shall have been notified in writing by the Borrower prior to the date of any payment due to be made by the Borrower hereunder that the Borrower will not make such payment to the Administrative Agent, the Administrative Agent may assume that the Borrower is making such payment, and the Administrative Agent may, but shall not be required to, in reliance upon such assumption, make available to the applicable Lenders their respective pro rata shares of a corresponding amount.  If such payment is not made to the Administrative Agent by the Borrower within three Business Days after such due date, the Administrative Agent shall be entitled to recover, on demand, from each Lender to which any amount which was made available pursuant to the preceding sentence, such amount with interest thereon at the rate per annum equal to the daily average Federal Funds Effective Rate.  Nothing herein shall be deemed to limit the rights of the Administrative Agent or any Lender against the Borrower.

 

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2.18.       Requirements of Law.

 

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

 

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

 

(ii)           shall impose on such Lender any Taxes (other than (A) Non-Excluded Taxes indemnified by Section 2.19, (B) Excluded Taxes imposed on, or measured by reference to, net income (including franchise or similar (including branch profits) Taxes imposed in lieu of net income taxes) or (C) Excluded Taxes described in clauses (ii), (iii) and (iv) of the definition of Excluded Taxes),

 

and the result of any of the foregoing is to increase the cost to such Lender, by an amount that such Lender deems to be material, of making, converting into, continuing or maintaining Eurodollar Loans (or in the case of clause (ii) above, any Loans) or issuing or participating in Letters of Credit, or to reduce any amount receivable by such Lender hereunder in respect thereof, then, in any such case, the Borrower shall promptly and in any event within five Business Days pay such Lender, upon its written demand, any additional amounts necessary to compensate such Lender for such increased cost or reduced amount receivable.  If any Lender becomes entitled to claim any additional amounts pursuant to this paragraph, it shall promptly notify the Borrower (with a copy to the Administrative Agent) of the event by reason of which it has become so entitled; provided that the Borrower shall not be required to compensate a Lender pursuant to this paragraph for any amounts incurred more than six months prior to the date that such Lender notifies the Borrower of such Lender’s intention to claim compensation therefor; and provided further that, if the circumstances giving rise to such claim have a retroactive effect, then such six-month period shall be extended to include the period of such retroactive effect.

 

(b)           If any Lender shall have determined that the adoption of or any change in any Requirement of Law regarding capital adequacy or in the interpretation or application thereof or compliance by such Lender or any corporation controlling such Lender with any request or directive regarding capital adequacy (whether or not having the force of law) from any Governmental Authority made subsequent to the Closing Date shall have the effect of reducing the rate of return on such Lender’s or such corporation’s capital as a consequence of its obligations hereunder or under or in respect of any Letter of Credit to a level below that which such Lender or such corporation could have achieved but for such adoption, change or compliance (taking into consideration such Lender’s or such corporation’s policies with respect to capital adequacy) by an amount reasonably deemed by such Lender to be material and to the extent reasonably determined such increase in capital to be allocable to the existence of such Lender’s Commitments or participations in Letters of Credit hereunder, then, from time to time, after submission by such Lender to the Borrower (with a copy to the Administrative Agent) of a written request therefor, the Borrower shall pay to such Lender such additional amount or amounts as will compensate such Lender or such corporation for such reduction; provided that the Borrower shall not be required to compensate a Lender pursuant to this paragraph for any amounts incurred more than six months prior to the date that such Lender notifies the Borrower of such Lender’s intention to claim compensation therefor; and provided further that, if the circumstances giving rise to such claim have a retroactive effect, then such six-month period shall be extended to include the period of such retroactive effect.

 

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(c)           A certificate as to any additional amounts payable pursuant to this Section 2.18 submitted by any Lender to the Borrower (with a copy to the Administrative Agent) with appropriate detail demonstrating how such amounts were derived shall be conclusive in the absence of manifest error.

 

(d)           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 or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “change in Requirement of Law”, regardless of the date enacted, adopted or issued.

 

2.19.       Taxes.

 

(a)           Except as required by law (as determined in the good faith discretion of any applicable withholding agent), all payments made by any Loan Party under this Agreement and the other Loan Documents shall be made free and clear of, and without deduction or withholding for or on account of, any Taxes.  If any Non-Excluded Taxes or any Other Taxes are required by law to be withheld (as determined in the good faith discretion of any applicable withholding agent) from any amounts payable by any Loan Party to the Administrative Agent or by any Loan Party or the Administrative Agent to any Lender (which term shall, for the avoidance of doubt, include, for purposes of this Section 2.19, the Issuing Bank), the amounts payable by the applicable Loan Party shall be increased to the extent necessary to yield to the Administrative Agent or such Lender (after withholding of all Non-Excluded Taxes and Other Taxes, including Non-Excluded Taxes and Other Taxes attributable to amounts payable under this Section 2.19) interest or any such other amounts payable hereunder at the rates or in the amounts the Administrative Agent or Lender would have received had no such Non-Excluded Taxes or Other Taxes been withheld.

 

(b)           In addition, the Borrower shall pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law.

 

(c)           Whenever any Non-Excluded Taxes or Other Taxes are payable by the applicable Loan Party, as promptly as possible thereafter the Loan Party shall send to the Administrative Agent for the account of the Administrative Agent or relevant Lender, evidence reasonably satisfactory to the Administrative Agent showing payment thereof.

 

(d)           Without duplicating any Loan Party’s obligations under clause (a) or (b), the Loan Parties shall, within 10 days after written demand, indemnify the Administrative Agent and each Lender for the full amount of any Non-Excluded Taxes and Other Taxes (including any Non-Excluded Taxes and Other Taxes on amounts payable under this Section 2.19) payable by the Administrative Agent or such Lender and any reasonable costs and expenses associated therewith, whether or not such Non-Excluded Taxes or Other Taxes were correctly or legally asserted; provided that if a Loan Party reasonably believes that such Taxes were not correctly or legally asserted, the Administrative Agent or such Lender, as the case may be, will use reasonable efforts to cooperate with the Loan Party, at such Loan Party’s request and expense, to obtain a refund of such Non-Excluded Taxes and Other Taxes (which refund, if received, shall be paid to the Borrower to the extent provided in clause (f) of this Section 2.19) so long as such efforts, in the reasonable judgment of the Administrative Agent or such Lender, as the case may be, would not cause the Administrative Agent or such Lender, as the case may be, to suffer any additional costs, expenses or risk, or legal or regulatory disadvantage it; provided, further, that the Loan Parties shall not be obligated to make such payments for penalties, Excess Interest and expenses to the Administrative Agent or the Lenders pursuant to this Section, to the extent such

 

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penalty and/or expenses result from the failure of the Administrative Agent or the Lenders to make written demand for the Non-Excluded Taxes and Other Taxes within 180 days from the date on which the Administrative Agent or the Lenders have received a written notice of a claim for any Non-Excluded Taxes or Other Taxes by the relevant Governmental Authority.

 

(e)           Each Lender shall, at such times as are reasonably requested by the Borrower or the Administrative Agent, provide the Borrower and the Administrative Agent with any documentation prescribed by law or reasonably requested by the Borrower or the Administrative Agent certifying as to any entitlement of such Lender to an exemption from, or reduction in, withholding tax with respect to any payments to be made to such Lender under the Loan Documents.  Each such Lender shall, whenever a lapse in time or change in circumstances renders such documentation obsolete, expired or inaccurate in any material respect, deliver promptly to the Borrower and the Administrative Agent updated or other appropriate documentation (including any new documentation reasonably requested by the Borrower or the Administrative Agent) or promptly notify the Borrower and the Administrative Agent of its inability to do so.  Unless the Borrower or the Administrative Agent has received forms or other documents satisfactory to it indicating that payments under any Loan Document to or for a Lender are not subject to withholding tax or are subject to such Tax at a rate reduced by an applicable tax treaty, the Borrower or the Administrative Agent (as applicable) shall withhold amounts required to be withheld by applicable Laws from such payments at the applicable statutory rate.  Without limiting the foregoing:

 

(i)            Each Lender that is a United States person (as defined in Section 7701(a)(30) of the Code) shall deliver to the Borrower and the Administrative Agent on or before the date on which it becomes a party to this Agreement two properly completed and duly signed original copies of Internal Revenue Service Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding.

 

(ii)           Each Lender that is not a United States person (the “Foreign Lender”) shall deliver to the Borrower and the Administrative Agent on or before the date on which it becomes a party to this Agreement (and from time to time thereafter upon the request of the Borrower or the Administrative Agent) whichever of the following is applicable:

 

(A)          two properly completed and duly signed original copies of Internal Revenue Service Form W-8BEN (or any successor forms) claiming eligibility for the benefits of an income tax treaty to which the United States is a party, and such other documentation as required under the Code,

 

(B)          two properly completed and duly signed original copies of Internal Revenue Service Form W-8ECI (or any successor forms),

 

(C)          in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (A) a certificate substantially in the form of the applicable Exhibit I to the Original Credit Agreement (any such certificate, a “United States Tax Compliance Certificate”) and (B) two properly completed and duly signed original copies of Internal Revenue Service Form W-8BEN (or any successor forms),

 

(D)          to the extent a Foreign Lender is not the beneficial owner (for example, where the Foreign Lender is a partnership or a participating Lender), Internal Revenue Service Form W-8IMY (or any successor forms) of the Foreign Lender, accompanied by a Form W-8ECI, Form W-8BEN, United States Tax Compliance Certificate, Form W-9, Form W-8IMY or any other required information (or any successor forms) from each

 

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beneficial owner, as applicable (provided that, if one or more beneficial owners are claiming the portfolio interest exemption, the United States Tax Compliance Certificate may be provided by such Foreign Lender on behalf of such beneficial owner), or

 

(E)           two properly completed and duly signed original copies of any other form prescribed by applicable U.S. federal income tax laws (including the Treasury regulations) as a basis for claiming a complete exemption from, or a reduction in, United States federal withholding tax on any payments to such Lender under the Loan Documents.

 

(iii)          If a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.

 

Notwithstanding any other provision of this clause (e), a Lender shall not be required to deliver any form that such Lender is not legally eligible to deliver.

 

(f)            If the Administrative Agent or Lender determines, in its sole discretion exercised in good faith, that it has received a refund in respect of any Non-Excluded Taxes or Other Taxes with respect to which the Borrower has paid additional amounts pursuant to this Section 2.19, it shall promptly notify the Borrower of such refund and shall within 30 days from the date of receipt of such refund pay over the amount of such refund without interest (other than any interest paid or credited by the relevant Governmental Authority with respect to such refund) to the Borrower (but only to the extent of additional amounts paid by the Borrower under this Section 2.19 with respect to the Non-Excluded Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of the Administrative Agent or Lender; provided, however, that the Borrower, upon the written request of the Administrative Agent or Lender, agrees to repay the amount paid over to the Borrower (plus penalties, interest or other charges due to the appropriate authorities in connection therewith) to the Administrative Agent or Lender in the event the Administrative Agent or Lender is required to repay such refund to such Governmental Authority.  Nothing contained in this paragraph shall interfere with the right of each of the Administrative Agent and the Lenders to arrange its tax affairs in whatever manner it thinks fit nor to disclose any information or any computations relating to its tax affairs.

 

(g)           The agreements in this Section 2.19 shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder.

 

2.20.       Indemnity.  The Borrower agrees to indemnify each Lender for, and to hold each Lender harmless from, any loss or expense that such Lender may sustain or incur as a consequence of (a) default by the Borrower in making a borrowing of, conversion into or continuation of Eurodollar Loans after the Borrower has given a notice requesting the same in accordance with the provisions of this Agreement, (b) default by the Borrower in making any prepayment of or conversion from Eurodollar Loans after the Borrower has given a notice thereof in accordance with the provisions of this Agreement or (c) the making of a prepayment of Eurodollar Loans on a day that is not the last day of an Interest

 

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Period with respect thereto.  Such indemnification may include an amount equal to the excess, if any, of (i) the amount of interest that would have accrued on the amount so prepaid, or not so borrowed, converted or continued, for the period from the date of such prepayment or of such failure to borrow, convert or continue to the last day of such Interest Period (or, in the case of a failure to borrow, convert or continue, the Interest Period that would have commenced on the date of such failure) in each case at the applicable rate of interest for such Loans provided for herein (excluding, however, the Applicable Margin included therein, if any) over (ii) the amount of interest (as reasonably determined by such Lender) that would have accrued to such Lender on such amount by placing such amount on deposit for a comparable period with leading banks in the interbank eurodollar market.  A certificate as to any amounts payable pursuant to this Section 2.20 submitted to the Borrower by any Lender within 180 days of the incurrence of any loss or expense covered by this Section with appropriate detail demonstrating how such amounts were derived shall be conclusive in the absence of manifest error.  This covenant shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder.

 

2.21.       Change of Lending Office.  Each Lender agrees that, upon the occurrence of any event giving rise to the operation of Section 2.18 or 2.19(a) with respect to such Lender, it will, if requested by the Borrower, use reasonable efforts (subject to overall policy considerations of such Lender) to file any certificate or document reasonably requested by the Borrower or designate another lending office for any Loans affected by such event with the object of eliminating or reducing amounts payable pursuant to Section 2.18 or 2.19(a); provided that the making of such filing or such designation is made on terms that, in the reasonable judgment of such Lender, cause such Lender and its lending office(s) to suffer no economic, legal or regulatory disadvantage (except to a de minimis extent), and provided further that nothing in this Section 2.21 shall affect or postpone any of the obligations of the Borrower or the rights of any Lender pursuant to Section 2.18 or 2.19(a).

 

2.22.       Replacement of Lenders.

 

(a)           The Borrower shall be permitted to replace any Lender that (A) requests reimbursement for amounts owing pursuant to Section 2.18 or 2.19(a) or (B) becomes a Defaulting Lender, with a replacement financial institution; provided that (i) such replacement does not conflict with any Requirement of Law, (ii) prior to any such replacement, such Lender shall have taken no action under Section 2.21 that has or will eliminate the continued need for payment of amounts owing pursuant to Section 2.18 or 2.19(a), (iii) the Borrower shall be liable to such replaced Lender under Section 2.20 if any Eurodollar Loan owing to such replaced Lender shall be purchased other than on the last day of the Interest Period relating thereto, (iv) the replacement financial institution, if not already a Lender, shall be reasonably satisfactory to the Administrative Agent, (v) the replaced Lender shall be obligated to make such replacement in accordance with the provisions of Section 10.6 (provided that the Borrower shall be obligated to pay the registration and processing fee referred to therein), (vi) until such time as such replacement shall be consummated, the Borrower shall pay all additional amounts (if any) required pursuant to Section 2.18 or 2.19(a), as the case may be, (vii) the applicable replaced Lender will be paid all principal, interest and fees under Section 2.8 owed to it upon the consummation of such replacement and (viii) any such replacement shall not be deemed to be a waiver of any rights that the Borrower, the Administrative Agent or any other Lender shall have against the replaced Lender.

 

(b)           If, in connection with any proposed amendment, modification, waiver or termination pursuant to Section 10.1 requiring the consent of all affected Lenders or any Class of affected Lenders, the consent of the Required Lenders is obtained, but the consent of other Lenders whose consent is required is not obtained (any such Lender whose consent is not obtained as described in this clause (b) being referred to as a “Non-Consenting Lender”), then, at the Borrower’s request the Administrative Agent, or a Person or Persons reasonably acceptable to the Administrative Agent if not already a Lender, Affiliate of a Lender or Approved Fund, shall have the right (but shall have no obligation) to purchase all,

 

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but not less than all, from such Non-Consenting Lenders, and such Non-Consenting Lenders agree that they shall, upon the Administrative Agent’s request, sell and assign to the Administrative Agent or such Person, all Loans and Commitments of such Non-Consenting Lenders for an amount equal to the principal balance of all Loans held by the Non-Consenting Lenders and all accrued interest and fees with respect thereto through the date of sale, such purchase and sale to be consummated at par pursuant to an Assignment and Assumption; provided that in the event such Non-Consenting Lender does not execute an Assignment and Assumption, such Non-Consenting Lender shall be deemed to have consented to such Assignment and Assumption.  Any such required sale and assignment shall be treated as a prepayment for purposes of Section 2.10 and Section 2.20 and the Borrower shall be liable for any amounts payable thereunder as a result of such sale and assignment.

 

2.23.       Defaulting Lenders.

 

(a)           Defaulting Lender Adjustments.  Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by applicable law:

 

(i)            Waivers and Amendments.  Such Lender’s right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in the definitions of “Required Lenders,” “Majority Facility Lenders” and “Majority Revolving Lenders.”

 

(ii)           Defaulting Lender Waterfall. With respect to any Revolving Lender that is a Defaulting Lender, any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Section 8 or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant to Section 10.7(b) shall be applied at such time or times as may be determined by the Administrative Agent as follows: first, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; second, to the payment on a pro rata basis of any amounts owing by such Defaulting Lender to the Issuing Bank or the Swingline Lender hereunder; third, to Cash Collateralize the Issuing Bank’s Fronting Exposure with respect to such Defaulting Lender in accordance with Section 2.24; fourth, as the Borrower may request (so long as no Default or Event of Default exists), to the funding of any Revolving Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent; fifth, if so determined by the Administrative Agent and the Borrower, to be held in a deposit account and released pro rata in order to (x) satisfy such Defaulting Lender’s potential future funding obligations with respect to Revolving Loans under this Agreement and (y) Cash Collateralize the Issuing Bank’s future Fronting Exposure with respect to such Defaulting Lender with respect to future Letters of Credit issued under this Agreement, in accordance with Section 2.24; sixth, to the payment of any amounts owing to the Revolving Lenders, the Issuing Bank or the Swingline Lender as a result of any judgment of a court of competent jurisdiction obtained by any Revolving Lender, the Issuing Bank or the Swingline Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; seventh, so long as no Default or 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 such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; and eighth, to such 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 in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made or the related Letters of Credit were issued at a time when the conditions set forth in

 

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Section 5.2 were satisfied or waived, such payment shall be applied solely to pay the Loans of, and payments made by Revolving Lenders pursuant to Section 3.4 owed to, all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of, or payments made by Revolving Lenders pursuant to Section 3.4 owed to, such Defaulting Lender until such time as all Revolving Loans and funded and unfunded interests in L/C Exposure and Fronted Swingline Amounts are held by the Revolving Lenders pro rata in accordance with the Commitments without giving effect to Section 2.23(a)(iv).  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 2.23(a) shall be deemed paid to and redirected by such Defaulting Lender, and each Revolving Lender irrevocably consents hereto.

 

(iii)          Certain Fees.

 

(A)          No Defaulting Lender shall be entitled to receive any fee pursuant to Section 2.8(a) for any period during which that Revolving 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).

 

(B)          Each Defaulting Lender shall be entitled to receive fees pursuant to the first sentence of Section 3.3(a) for any period during which that Revolving Lender is a Defaulting Lender only to the extent allocable to its Applicable Percentage of the stated amount of Letters of Credit for which it has provided Cash Collateral pursuant to Section 2.24.

 

(C)          With respect to any fee pursuant to Section 3.3(a) not required to be paid to any Defaulting Lender pursuant to clause (B) above, the Borrower shall (x) pay to each Non-Defaulting Lender that portion of any such fee otherwise payable to such Defaulting Lender with respect to such Defaulting Lender’s interest in L/C Exposure that has been reallocated to such Non-Defaulting Lender pursuant to Section 2.23(a)(iv), (y) pay to the Issuing Bank the amount of any such fee otherwise payable to such Defaulting Lender to the extent allocable to the Issuing Bank’s Fronting Exposure to such Defaulting Lender and (z) not be required to pay the remaining amount of any such fee.

 

(iv)          Reallocation of Participations to Reduce Fronting Exposure.  All or any part of such Defaulting Lender’s interest in L/C Exposure and such Defaulting Lender’s Fronted Swingline Amount shall be reallocated among the Non-Defaulting Lenders in accordance with their respective Applicable Percentages (calculated without regard to such Defaulting Lender’s Commitment) but only to the extent that (x) the conditions set forth in Section 5.2 are satisfied at the time of such reallocation (and, unless the Borrower shall have otherwise notified the Administrative Agent at such time, the Borrower shall be deemed to have represented and warranted that such conditions are satisfied at such time) and (y) such reallocation does not cause the aggregate Extensions of Credit of any Non-Defaulting Lender to exceed such Non-Defaulting Lender’s Commitment.  No reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Revolving Lender having become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non-Defaulting Lender’s increased exposure following such reallocation.

 

(v)           Cash Collateral, Repayment of Swingline Loans.  If the reallocation described in Section 2.23(a)(iv) cannot, or can only partially, be effected, the Borrower shall, without prejudice to any right or remedy available to it hereunder or under law, (x) first, prepay Swingline Loans in an amount equal to the Swingline Lender’s Fronting Exposure and (y) second, Cash

 

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Collateralize the Issuing Bank’s Fronting Exposure in accordance with the procedures set forth in Section 2.24.

 

(b)           Defaulting Lender Cure.  If the Borrower, the Administrative Agent, the Swingline Lender and the Issuing Bank agree in writing that a Revolving Lender is no longer 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 Revolving Lender will, to the extent applicable, purchase at par that portion of outstanding Revolving Loans of the other Revolving Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Revolving Loans and funded and unfunded interests in Letters of Credit and the Swingline Participation Amounts to be held pro rata by the Revolving Lenders in accordance with the Commitments (without giving effect to Section 2.23(a)(iv)), whereupon such Revolving 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 Revolving 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 Non-Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Revolving Lender’s having been a Defaulting Lender.

 

(c)           New Swingline Loans/Letters of Credit.  So long as any Revolving Lender is a Defaulting Lender, (i) the Swingline Lender shall not be required to fund any Swingline Loans unless it is satisfied that it will have no Fronting Exposure after giving effect to such Swingline Loan and (ii) the Issuing Bank shall not be required to issue, extend, renew or increase any Letter of Credit unless it is satisfied that it will have no Fronting Exposure after giving effect thereto.

 

(d)           Termination of Defaulting Lender’s Commitment.  The Borrower may terminate the unused amount of the Commitment of a Defaulting Lender upon not less than three Business Days’ prior notice to the Administrative Agent (which will promptly notify the Revolving Lenders thereof), and in such event the provisions of Section 2.23(a)(ii) will apply to such Defaulting Lender as if it were still a Revolving Lender hereunder, provided that such termination will not be deemed to be a waiver or release of any claim the Borrower, the Administrative Agent, the Issuing Bank, the Swingline Lender or any Lender may have against such Defaulting Lender.

 

2.24.       Cash Collateralization

 

(a)           Cash Collateral Requirements. At any time that there shall exist a Defaulting Lender, within five Business Days following the written request of the Administrative Agent or the Issuing Bank (with a copy to the Administrative Agent) the Borrower shall Cash Collateralize the Issuing Bank’s Fronting Exposure with respect to such Defaulting Lender (determined after giving effect to Section 2.23(a)(iv) and any Cash Collateral provided by such Defaulting Lender) in an amount not less than the Minimum Collateral Amount.

 

(b)           Grant of Security Interest.  The Borrower, and to the extent provided by any Defaulting Lender, such Defaulting Lender, hereby grants to the Administrative Agent, for the benefit of the Issuing Bank, and agrees to maintain, a first priority security interest in all such Cash Collateral as security for the Defaulting Lender’s obligation to fund its interests in respect of Letters of Credit pursuant to Section 3.4, to be applied pursuant to Section 2.24(b).  If at any time the Administrative Agent determines that Cash Collateral is subject to any right or claim of any Person other than the Administrative Agent and the Issuing Bank as herein provided or that the total amount of such Cash Collateral is less than the Minimum Collateral Amount, the Borrower will, within five Business Days after demand by the Administrative Agent, pay or provide to the Administrative Agent additional Cash

 

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Collateral in an amount sufficient to eliminate such deficiency (after giving effect to any Cash Collateral provided by such Defaulting Lender).

 

(c)           Application.  Notwithstanding anything to the contrary contained in this Agreement, Cash Collateral provided under this Section 2.24 or Section 2.23 in respect of L/C Exposure shall be applied to the satisfaction of the Defaulting Lender’s obligation to fund its interests in respect of Letters of Credit (including, as to Cash Collateral provided by a Defaulting Lender, any interest accrued on such obligation) for which the Cash Collateral was so provided, prior to any other application of such property as may otherwise be provided for herein.

 

(d)           Termination of Requirement.  Cash Collateral (or the appropriate portion thereof) provided to reduce the Issuing Bank’s Fronting Exposure shall no longer be required to be held as Cash Collateral pursuant to this Section 2.24 following (i) the elimination of the Fronting Exposure that gave rise to the requirement to provide (including by the termination of Defaulting Lender status of the applicable Lender), but not with respect to any other Fronting Exposure or (ii) the determination by the Administrative Agent and the Issuing Bank that there exists excess Cash Collateral.

 

2.25.       Extension Offers

 

(a)           The Borrower may, on one or more occasions, by written notice to the Administrative Agent, make one or more offers (each, an “Extension Offer”) to all Lenders of one or more Classes (each Class subject to such an Extension Offer, an “Extension Request Class”) to make one or more Permitted Amendments pursuant to procedures reasonably specified by the Administrative Agent and reasonably acceptable to the Borrower.  Such notice shall set forth (i) the terms and conditions of the requested Permitted Amendment and (ii) the date on which such Permitted Amendment is requested to become effective (which shall not be less than 5 Business Days nor more than 30 Business Days after the date of such notice, unless otherwise agreed by the Administrative Agent). Permitted Amendments shall become effective only with respect to the Commitments and Loans of the Lenders of the Extension Request Class that accept the applicable Extension Offer (such Lenders, the “Accepting Lenders”) and, in the case of any Accepting Lender, only with respect to such Lender’s Loans and Commitments of such Extension Request Class.

 

(b)           Borrower and each Accepting Lender shall execute and deliver to the Administrative Agent an extension agreement (each, an “Extension Agreement”) and such other documentation as the Administrative Agent shall reasonably specify to evidence the Permitted Amendments and the terms and conditions thereof; provided that no Extension Agreement shall become effective unless:

 

(i)            both before and after giving effect to the effectiveness of such Extension Agreement, each of the conditions set forth in Section 5.2 shall be satisfied (it being understood that all references to “the date of such extension of credit” or similar language in Section 5.2 shall be deemed to refer to the date of such effectiveness);

 

(ii)           the Loan Parties and the Collateral Agent shall enter into such amendments, if any, to the Security Documents as may be reasonably requested by the Collateral Agent and approved (such approval not to be unreasonably withheld) by the Borrower (which shall not require any consent from any Lender) in order to ensure that the Loans and Commitments of the Accepting Lenders, as modified by the Extension Agreement, are provided with the benefit of the applicable Security Documents and shall deliver such other documents, certificates and opinions of counsel in connection therewith as may be reasonably requested by the Collateral Agent; and

 

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(iii)          the Borrower shall have delivered to the Administrative Agent such legal opinions board resolutions, secretary’s certificates, officer’s certificates and other documents as shall be reasonably requested by the Administrative Agent (and agreed to by the Borrower (such agreement not to be unreasonably withheld)) in connection therewith.

 

(c)           Each Extension Agreement shall be binding on the lenders party thereto, the Loan Parties, the Administrative Agent, the Collateral Agent and the Lenders. The Administrative Agent shall promptly notify each Lender as to the effectiveness of each Extension Agreement (provided that the failure to provide such notice shall not invalidate the Extension Agreement). Each Extension Agreement may, without the consent of any other Lenders, effect such amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in the reasonable opinion of the Administrative Agent and the Borrower, to effect the provisions of this Section (including any amendments necessary to treat the Loans and/or Commitments of the Accepting Lenders as a new “Class” of loans or commitments, as applicable, hereunder); provided that with respect to an Extension Agreement for Revolving Loans and/or Commitments, except as otherwise agreed to by each Issuing Bank and the Swingline Lender, (i) the allocation of the participation exposure with respect to any then-existing or subsequently issued or made Letter of Credit or Swingline Loan as between the commitments of such new “Class” and the remaining Commitments shall be made on a ratable basis as between the commitments of such new “Class” and the remaining Commitments until the Termination Date with respect to all such remaining Commitments and (ii) the Termination Date, as such terms are used in reference to Letters of Credit and Swingline Loans, respectively, may not be extended without the prior written consent of each Issuing Bank and the Swingline Lender, as applicable.

 

2.26.       Change of Control.  Upon the occurrence of a Change of Control, the Commitments shall be automatically terminated and Section 2.11 shall be complied with.

 

SECTION 3

 

LETTERS OF CREDIT

 

3.1.         Letters of Credit.

 

(a)           Subject to the terms and conditions hereof, the Issuing Bank agrees to issue letters of credit (“Letters of Credit”) for the account of the Borrower on any Business Day during the Commitment Period in such form as may be reasonably approved from time to time by the Issuing Bank; provided that the Issuing Bank shall have no obligation to issue, increase or extend any Letter of Credit if, after giving effect to such issuance, the L/C Exposure would exceed the L/C Commitment.  Each Letter of Credit shall (A) be denominated in Dollars and (B) expire no later than the earlier of (x) the first anniversary of its date of issuance and (y) the date that is five Business Days prior to the Termination Date, provided that any Letter of Credit with a one-year term may provide for the renewal thereof for additional one-year periods (which shall in no event extend beyond the date referred to in clause (y) above); provided further that no Letter of Credit shall be issued with an expiry date (or amended to change the expiry date to a date) later than the fifth Business Day prior to the Termination Date and no Commitments shall be reduced or terminated pursuant to Section 2.9, if after giving effect to such issuance, amendment, reduction or termination, the Total Extensions of Credit would exceed the Commitments.  Each Existing Letter of Credit shall be deemed a Letter of Credit hereunder.

 

(b)           The Issuing Bank shall not at any time be obligated to issue, amend or extend any Letter of Credit if such issuance would conflict with, or cause the Issuing Bank or any Revolving Lender to exceed any limits imposed by, any applicable Requirement of Law.

 

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3.2.         Procedure for Issuance of Letter of Credit.  The Borrower may from time to time request that the Issuing Bank issue a Letter of Credit by delivering to the Issuing Bank at its address for notices specified herein an Application therefor, completed to the reasonable satisfaction of the Issuing Bank, and such other certificates, documents and other papers and information as the Issuing Bank may reasonably request.  Upon receipt of any Application, the Issuing Bank will process such Application and the certificates, documents and other papers and information delivered to it in connection therewith in accordance with its customary procedures and shall promptly issue the Letter of Credit requested thereby (but in no event shall the Issuing Bank be required to issue any Letter of Credit earlier than three Business Days after its receipt of the Application therefor and all such other certificates, documents and other papers and information relating thereto) by issuing the original of such Letter of Credit to the beneficiary thereof or as otherwise may be agreed to by the Issuing Bank and the Borrower.  The Issuing Bank shall furnish a copy of such Letter of Credit to the Borrower and the Administrative Agent promptly following the issuance thereof.  The Issuing Bank shall promptly furnish to the Administrative Agent, which shall in turn promptly furnish to the Revolving Lenders, notice of the issuance of each Letter of Credit (including the amount thereof).

 

3.3.         Fees and Other Charges.

 

(a)           The Borrower will pay to Revolving Lenders a participation fee on the Applicable Percentage at such time of the actual daily outstanding amount all Letters of Credit at a per annum rate equal to the Applicable Margin then in effect with respect to Revolving Loans that are Eurodollar Loans, shared ratably among the Revolving Lenders and payable quarterly in arrears on each Fee Payment Date after the issuance date.  In addition, the Borrower shall pay to the Issuing Bank for its own account a fronting fee of 0.125% per annum on the face amount of each Letter of Credit issued by the Issuing Bank, payable quarterly in arrears on each Fee Payment Date after the issuance date.

 

(b)           In addition to the foregoing fees, the Borrower shall pay the Issuing Bank its standard fees charged with respect to, and reimburse the Issuing Bank for its out-of-pocket costs and expenses incurred in connection with, issuing, negotiating, effecting payment under, amending or otherwise administering any Letter of Credit issued by the Issuing Bank.

 

3.4.         L/C Participations.  The Issuing Bank irrevocably agrees to grant and hereby grants to each L/C Participant, and, to induce the Issuing Bank to issue Letters of Credit, each L/C Participant irrevocably agrees to accept and purchase and hereby accepts and purchases from the Issuing Bank, on the terms and conditions set forth below, for such L/C Participant’s own account and risk an undivided interest equal to such L/C Participant’s Applicable Percentage in the Issuing Bank’s obligations and rights under and in respect of each Letter of Credit (including, for the avoidance of doubt, each Existing Letter of Credit) and the amount of each draft paid by the Issuing Bank thereunder.  Each L/C Participant agrees with the Issuing Bank that, if a draft is paid under any Letter of Credit issued by the Issuing Bank for which the Issuing Bank is not reimbursed in full by the Borrower in accordance with the terms of this Agreement, such L/C Participant shall pay to the Issuing Bank upon demand at the Issuing Bank’s address for notices specified herein an amount equal to such L/C Participant’s Applicable Percentage of the amount of such draft, or any part thereof, that is not so reimbursed.  Each L/C Participant’s obligation to pay such amount shall be absolute and unconditional and shall not be affected by any circumstance, including (i) any setoff, counterclaim, recoupment, defense or other right that such L/C Participant may have against the Issuing Bank, the Borrower or any other Person for any reason whatsoever, (ii) the occurrence or continuance of a Default or an Event of Default or the failure to satisfy any of the other conditions specified in Section 5, (iii) any adverse change in the condition (financial or otherwise) of the Borrower, (iv) any breach of this Agreement or any other Loan Document by the Borrower, any other Loan Party or any other L/C Participant or (v) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing.  If any amount required to be paid by

 

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any L/C Participant to the Issuing Bank pursuant to this Section 3.4 in respect of any unreimbursed portion of any payment made by the Issuing Bank under any Letter of Credit is paid to the Issuing Bank within three Business Days after the date such payment is due, such L/C Participant shall pay to the Issuing Bank on demand an amount equal to the product of (A) such amount, times (B) the daily average Federal Funds Effective Rate during the period from and including the date such payment is required to the date on which such payment is immediately available to the Issuing Bank, times (C) a fraction the numerator of which is the number of days that elapse during such period and the denominator of which is 360.  If any such amount required to be paid by any L/C Participant pursuant to this Section 3.4 is not made available to the Issuing Bank by such L/C Participant within three Business Days after the date such payment is due, the Issuing Bank shall be entitled to recover from such L/C Participant, on demand, such amount with interest thereon calculated from such due date at the rate per annum equal to the sum of (x) ABR plus (y) the Applicable Margin for Revolving Loans that are ABR Loans.  A certificate of the Issuing Bank submitted to any L/C Participant with respect to any amounts owing under this Section 3.4 shall be conclusive in the absence of manifest error.  Whenever, at any time after the Issuing Bank has made payment under any Letter of Credit and has received from any L/C Participant its pro rata share of such payment in accordance with this Section 3.4, the Issuing Bank receives any payment related to such Letter of Credit (whether directly from the Borrower or otherwise, including proceeds of collateral applied thereto by the Issuing Bank), or any payment of interest on account thereof, the Issuing Bank will distribute to such L/C Participant its pro rata share thereof; provided, however, that in the event that any such payment received by the Issuing Bank shall be required to be returned by the Issuing Bank, such L/C Participant shall return to the Issuing Bank the portion thereof previously distributed by the Issuing Bank to it.

 

3.5.         Reimbursement Obligation of the Borrower.  If any draft is paid under any Letter of Credit, the Borrower shall reimburse the Issuing Bank with respect to such draft paid by the Issuing Bank for the amount of (a) the draft so paid and (b) any taxes, fees, charges or other costs or expenses incurred by the Issuing Bank in connection with such payment, not later than (i) by 12:00 Noon on the Business Day following the day that the Borrower receives notice of such draft, if such notice is received on such day prior to 1:00 P.M. or (ii) if clause (i) above does not apply, the Business Day immediately following the day that the Borrower receives such notice.  Each such payment shall be made to the Issuing Bank at its address for notices referred to herein in Dollars and in immediately available funds.  If any draft is paid under any Letter of Credit, then, unless the Borrower shall reimburse the Issuing Bank in full on the same day that such draft is paid, the unpaid amount thereof shall bear interest for each day from and including the date on which such draft is paid to but excluding the date that the Borrower makes reimbursement in full, at the rate per annum equal to the sum of (x) ABR plus (y) the Applicable Margin for Revolving Loans that are ABR Loans; provided that, if the Borrower does not make reimbursement in full on or prior to the second Business Day following the date of the applicable drawing, then Section 2.14(c) shall apply.

 

3.6.         Obligations Absolute.  The Borrower’s obligations under this Section 3 shall be absolute and unconditional under any and all circumstances and irrespective of any setoff, counterclaim or defense to payment that the Borrower may have or have had against the Issuing Bank, any beneficiary of a Letter of Credit or any other Person.  The Borrower also agrees with the Issuing Bank that the Issuing Bank shall not be responsible for, and the Borrower’s Reimbursement Obligations under Section 3.5 shall not be affected by, among other things, the validity or genuineness of documents or of any endorsements thereon, even though such documents shall in fact prove to be invalid, fraudulent or forged, or any dispute between or among the Borrower and any beneficiary of any Letter of Credit or any other party to which such Letter of Credit may be transferred or any claims whatsoever of the Borrower against any beneficiary of such Letter of Credit or any such transferee.  The Issuing Bank shall not be liable for any error, omission, interruption or delay in transmission, dispatch or delivery of any message or advice, however transmitted, in connection with any Letter of Credit, except for errors or omissions found by a

 

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final and nonappealable decision of a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of the Issuing Bank.  The Borrower agrees that any action taken or omitted by the Issuing Bank under or in connection with any Letter of Credit or the related drafts or documents, if done in the absence of gross negligence, bad faith or willful misconduct, shall be binding on the Borrower and shall not result in any liability of the Issuing Bank to the Borrower.

 

3.7.         Letter of Credit Payments.  If any draft shall be presented for payment under any Letter of Credit, the Issuing Bank shall promptly notify the Borrower and the Administrative Agent of the date and amount thereof.  The responsibility of the Issuing Bank to the Borrower in connection with any draft presented for payment under any Letter of Credit issued by the Issuing Bank shall, in addition to any payment obligation expressly provided for in such Letter of Credit, be limited to determining that the documents (including each draft) delivered under such Letter of Credit in connection with such presentment are substantially in conformity with such Letter of Credit.

 

3.8.         Applications.  To the extent that any provision of any Application related to any Letter of Credit is inconsistent with the provisions of this Section 3, the provisions of this Section 3 shall apply.

 

3.9.         Obligations of Certain Issuing Banks.  The Issuing Bank that is not the same Person as the Person serving as the Administrative Agent shall notify the Administrative Agent of (a) the amount and expiration date of each Letter of Credit issued by the Issuing Bank prior to the date of issuance thereof, (b) any amendment or modification of any such Letter of Credit prior to the time of such amendment or modification and (c) any termination, surrender, cancellation or expiry of any such Letter of Credit promptly upon the occurrence thereof.

 

SECTION 4

 

REPRESENTATIONS AND WARRANTIES

 

To induce the Administrative Agent and the Lenders to enter into this Agreement and to make the Loans and issue or participate in the Letters of Credit, the Borrower and the Subsidiary Guarantors hereby jointly and severally represent and warrant to the Administrative Agent and each Lender, as and to the extent required under Section 5. 2 that:

 

4.1.         Financial Condition.  The audited consolidated balance sheets of the Borrower and its Subsidiaries as at December 31, 2009, December 31, 2010, December 31, 2011 and December 31, 2012, and the related consolidated statements of income and of cash flows for the fiscal years ended on such dates, reported on by and accompanied by an unqualified report from Ernst & Young LLP, present fairly in all material respects the consolidated financial condition of the Borrower and its Subsidiaries as at such date, and the consolidated results of its operations and its consolidated cash flows for the respective fiscal years then ended.  All such financial statements, including the related schedules and notes thereto, have been prepared in accordance with GAAP applied consistently throughout the periods involved (except as approved by the aforementioned firm of accountants and disclosed therein).

 

4.2.         No Change.  Since December 31, 2011, there has been no development or event that has had or could reasonably be expected to have a Material Adverse Effect.

 

4.3.         Existence; Compliance with Law.  Each of Borrower and its Restricted Subsidiaries (a) is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization except, other than in the case of the Borrower, to the extent that the failure to comply therewith could not reasonably be expected to result in a Material Adverse Effect, (b) has the power and

 

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authority, and the legal right, to own and operate its property, to lease the property it operates as lessee and to conduct the business in which it is currently engaged except to the extent that the failure to comply therewith could not, in the aggregate, reasonably be expected to result in a Material Adverse Effect, (c) is duly qualified as a foreign corporation or other organization and in good standing under the laws of each jurisdiction where its ownership, lease or operation of property or the conduct of its business requires such qualification except to the extent that the failure to comply therewith could not, in the aggregate, reasonably be expected to have a Material Adverse Effect and (d) is in compliance with all Requirements of Law except to the extent that the failure to comply therewith could not, in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

4.4.         Power; Authorization; Enforceable Obligations.

 

(a)           Each Loan Party has the corporate or other organizational power and authority to make, deliver and perform its obligations under each of the Loan Documents to which it is a party and, in the case of the Borrower, to obtain extensions of credit hereunder.

 

(b)           Each Loan Party has taken all necessary organizational action to authorize the execution, delivery and performance of the Loan Documents to which it is a party and, in the case of the Borrower, to authorize the extensions of credit on the terms and conditions of this Agreement.

 

(c)           No material consent or authorization of, filing with, notice to or other act by or in respect of, any Governmental Authority is required in connection with the Transactions, except (i) consents, authorizations, filings and notices described in Schedule 4.4, which consents, authorizations, filings and notices have been obtained or made and are in full force and effect, (ii) the filings referred to in Section 4.19 and (iii) consents, authorizations, filings and notices the failure of which to make or obtain, as the case may be, could not reasonably be expected to result in a Material Adverse Effect.

 

(d)           Each Loan Document has been duly executed and delivered on behalf of each Loan Party thereto.

 

(e)           This Agreement constitutes, and each other Loan Document upon execution will constitute, a legal, valid and binding obligation of each Loan Party thereto, enforceable against each such Loan Party in accordance with its terms, subject to 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) and an implied covenant of good faith and fair dealing.

 

4.5.         No Legal Bar.  The execution and delivery of this Agreement and the other Loan Documents will not violate any Requirement of Law or any Contractual Obligation of Borrower or any of its Restricted Subsidiaries and will not result in, or require, the creation or imposition of any Lien on any of their respective properties or revenues pursuant to any Requirement of Law or any such Contractual Obligation (other than the Liens created by the Security Documents and the Second Lien Notes Documentation) except, in each case to the extent any of the foregoing could not reasonably be expected to result in a Material Adverse Effect.

 

4.6.         Litigation.  Except as set forth on Schedule 4.6, no litigation, or, to the knowledge of the Borrower, no investigation or proceeding of or before any arbitrator or Governmental Authority is pending or, to the best knowledge of the Borrower, threatened by or against any Covenant Party that could reasonably be expected to have a Material Adverse Effect.

 

4.7.         No Default.  No Default or Event of Default has occurred and is continuing.

 

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4.8.         Ownership of Property; Liens.  Each Covenant Party has marketable title to, or a valid leasehold interest in, all its real property, and marketable title to, or a valid leasehold interest in or right to use, all its material other property, and none of such property is subject to any Lien except Liens permitted by Section 7.3 except to the extent any of the foregoing could not reasonably be expected to result in a Material Adverse Effect.  As of the Closing Date, set forth on Schedule 4.8 is a complete and correct list in all material respects of all real property (including street address) (other than condominiums or co-ops) located in the United States and owned by any Covenant Party material to the operation of any Covenant Party.

 

4.9.         Licenses, Intellectual Property.  Except as in the aggregate could not reasonably be expected to have a Material Adverse Effect or as set forth in Schedule 4.9 (all of which items set forth in Schedule 4.9 in the aggregate could not reasonably be expected to have a Material Adverse Effect), each Covenant Party has all necessary licenses, permits, franchises, rights to participate in, or the benefit of valid agreements to participate in material Third Party Payor Programs and other rights necessary for the conduct of its business and for the intended use of its properties and assets to the extent necessary to ensure no material interruption in cash flow.  Each Covenant Party owns, or is licensed or otherwise has the right to use, all Intellectual Property necessary for the conduct of its business as currently conducted except to the extent that a failure could not reasonably be expected to have a Material Adverse Effect.  No material claim against any Covenant Party has been asserted in writing and is pending by any Person challenging or questioning the use of any Intellectual Property that is material to the business of the Covenant Parties or the validity or effectiveness of any such Intellectual Property, nor does the Borrower have knowledge of any valid basis for any such claim.  Except as could not reasonably be expected to result in a Material Adverse Effect, to the knowledge of the Borrower, the use of Intellectual Property by each Covenant Party does not infringe on the rights of any Person in any material respect.

 

4.10.       Taxes.  Except as would not individually or in the aggregate reasonably be expected to result in a Material Adverse Effect, (i) each Covenant Party has filed or caused to be filed all federal, state and other Tax returns that are required to be filed and has paid all Taxes shown to be due and payable on said returns or on any assessments made against it or any of its property and all other Taxes, fees or other charges imposed on it or any of its property by any Governmental Authority and has satisfied its Tax withholding obligations (in each case, other than any Taxes the validity of which is currently being contested in good faith by appropriate proceedings and with respect to which reserves in conformity with GAAP have been provided on the books of the relevant Covenant Party, provided such contest suspends the enforcement of the Taxes in question); (ii) no Tax Lien has been filed (other than Permitted Liens), and (iii) no claim is being asserted, with respect to any such Tax, fee or other charge.

 

4.11.       Federal Regulations.  No part of the proceeds of any Loans, and no other extensions of credit hereunder, will be used (a) for “buying” or “carrying” any “margin stock” within the respective meanings of each of the quoted terms under Regulation U as now and from time to time hereafter in effect or (b) for any purpose that violates the provisions of the regulations of the Board.

 

4.12.       Labor Matters.  Except as, in the aggregate, could not reasonably be expected to have a Material Adverse Effect:  (a) there are no strikes or other labor disputes against any Covenant Party pending or, to the knowledge of the Borrower, threatened; (b) hours worked by and payment made to employees of each Covenant Party have not been in violation of the Fair Labor Standards Act or any other applicable Requirement of Law dealing with such matters; and (c) all payments due from any Covenant Party on account of employee health and welfare insurance have been paid or accrued as a liability on the books of the relevant Covenant Party.

 

4.13.       ERISA.  Except as could not reasonably be expected to have a Material Adverse Effect, (i) neither a Reportable Event nor an “accumulated funding deficiency” (within the meaning of

 

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Section 412 of the Code or Section 302 of ERISA) or failure to satisfy the minimum funding standards of Section 412 of the Code has occurred during the five-year period prior to the date on which this representation is made or deemed made with respect to any Plan, and each Employee Benefit Plan during such five-year period has complied in all material respects with the applicable provisions of ERISA and the Code, (ii) no termination of a Plan has occurred, and no Lien in favor of the PBGC or a Plan has arisen, during such five-year period and (iii) the present value of all accrued benefits under each Plan (based on those assumptions used to fund such Plans) did not, as of the last annual valuation date prior to the date on which this representation is made or deemed made, exceed the value of the assets of such Plan allocable to such accrued benefits by a material amount.  Neither the Borrower nor any Commonly Controlled Entity has had a complete or partial withdrawal from any Multiemployer Plan that has resulted or could reasonably be expected to result in a Material Adverse Effect, and to the Borrower’s knowledge, neither the Borrower nor any Commonly Controlled Entity could, except as could not reasonably be expected to result in a Material Adverse Effect, become subject to any liability under ERISA if the Borrower or any such Commonly Controlled Entity were to withdraw completely from any Multiemployer Plan as of the valuation date most closely preceding the date on which this representation is made or deemed made.  To the Borrower’s knowledge, (i) no such Multiemployer Plan is in Reorganization or Insolvent and (ii) no nonexempt prohibited transaction (within the meaning of Section 4795 of the Code or Section 406 of ERISA) has occurred with respect to a Plan which could reasonably be expected to result in a Material Adverse Effect.

 

4.14.       Investment Company Act; Other Regulations.  No Covenant Party is required to be registered as an “investment company,” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended.

 

4.15.       Subsidiaries.  Attached hereto as Schedule 4.15(a) is an organization chart of each Loan Party and its Subsidiaries as of the Closing Date.  Schedule 4.15(b) sets forth the name, jurisdiction of formation and classification of each Subsidiary and, as to each such Subsidiary, the percentage of each class of Capital Stock owned by any Loan Party as of the Closing Date. As of the Closing Date, there are no outstanding subscriptions, options, warrants, calls, rights or other agreements or commitments (other than stock options granted to employees or directors and directors’ qualifying shares) of any nature relating to any Capital Stock of the Borrower or any Restricted Subsidiary, except as created by the Loan Documents or the Second Lien Notes Documentation or disclosed on Schedule 4.15(b).

 

4.16.       Use of Proceeds.  The proceeds of the Term Loans made on the Amendment and Restatement Effective Date shall be used only for the repayment of Revolving Loans on the Amendment and Restatement Effective Date and to provide ongoing working capital requirements of the Borrower and its Subsidiaries and for general corporate purposes (including without limitation, acquisitions, other Investments and payments in respect of Indebtedness, in each case, otherwise permitted under this Agreement). The proceeds of the Revolving Loans, the Swingline Loans and the Letters of Credit after the Closing Date shall be used for working capital requirements and general corporate purposes of any Covenant Party.

 

4.17.       Environmental Matters.  Except as, in the aggregate, could not reasonably be expected to have a Material Adverse Effect:

 

(a)           the facilities and properties owned, leased or operated by any Covenant Party (the “Properties”) do not contain any Materials of Environmental Concern in amounts or concentrations or under circumstances that constitute a violation of, or could reasonably be expected to give rise to liability under, any applicable Environmental Law;

 

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(b)           no Covenant Party has received any written notice of any violation, alleged violation, non-compliance, liability or potential liability relating to any Environmental Laws, nor does the Borrower have knowledge or reason to believe that any such notice will be received or is being threatened;

 

(c)           no Covenant Party has transported or disposed of from the Properties Materials of Environmental Concern in violation of, or in a manner or to a location that could reasonably be expected to give rise to liability under, any Environmental Law, nor has any Covenant Party generated, treated, stored, handled or used at, on or under any of the Properties Materials of Environmental Concern in violation of, or in a manner that could reasonably be expected to give rise to liability under, any applicable Environmental Law;

 

(d)           no judicial proceeding or governmental or administrative action is pending or, to the knowledge of the Borrower, threatened under or based on any Environmental Law, to which any Covenant Party is or to the knowledge of any Covenant Party will be named as a party, nor is any Covenant Party a party or subject to any decrees, orders, judgments or agreements which impose any obligations or liability under any Environmental Law;

 

(e)           there has been no Release or to the knowledge of the Borrower threat of Release of Materials of Environmental Concern at, on, under or from the Properties arising from or related to the operations of any Covenant Party, in violation of or in amounts or in a manner that could reasonably be expected to give rise to liability under Environmental Laws;

 

(f)            the Properties and all operations at the Properties and of each Covenant Party are in compliance, and for the past three (3) years have been in compliance, with all applicable Environmental Laws;

 

(g)           this Section 4.17 contains the sole and exclusive representations and warranties of the Borrower with respect to matters arising under Environmental Law.

 

4.18.       Accuracy of Information, Etc..  No statement or factual information with respect to any Group Member or any of its Restricted Subsidiaries contained in this Agreement, any other Loan Document or any other factual document, certificate or statement (other than any projections, pro forma financial statements or other estimates with respect to Borrower or any of its Restricted Subsidiaries and other than information of a general economic or industry nature) furnished by or by Persons directed on behalf of Borrower or any of its Restricted Subsidiaries to the Administrative Agent or the Lenders, or any of them, for use in connection with the transactions contemplated by this Agreement or the other Loan Documents, when taken as a whole, contained as of the date such statement, information, document or certificate was so furnished, any untrue statement of a material fact or omitted to state a material fact necessary to make the statements contained herein or therein not materially misleading in light of the circumstances when such statements were made.  The projections and pro forma financial information contained in the materials referenced above were, and when delivered, will be, based upon good faith estimates and assumptions believed by management of Borrower to be reasonable at the time made, it being recognized by the Administrative Agent and the Lenders that such projections and financial information as they relate to future events are not to be viewed as fact and that actual results during the period or periods covered by such financial information may differ from the projected results set forth therein by a material amount.

 

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4.19.       Security Documents.

 

(a)           The Guaranty and Collateral Agreement is effective to create in favor of the Collateral Agent, for the benefit of the Secured Parties, legal, valid and enforceable Lien under U.S. Law (subject to the effect of bankruptcy, insolvency, reorganization, receivership, moratorium and other similar laws affecting creditors’ rights) on all right, title and interest of the respective Loan Parties in the Collateral described therein and proceeds thereof to the extent required thereby.  In the case of the Pledged Stock described in any of the Security Documents, when stock certificates representing such Pledged Stock are delivered to and retained by the Collateral Agent together with the necessary endorsements, and in the case of the other Collateral described in the Guaranty and Collateral Agreement, when financing statements and other filings specified on Schedule 4.19(a) in appropriate form are filed in the offices specified on Schedule 4.19(a), the Liens created under the Guaranty and Collateral Agreement shall constitute a fully perfected Lien on, and security interest in, all right, title and interest of the Loan Parties in such Collateral and the proceeds thereof under U.S. law, as security for the Obligations to the extent a Lien on such Collateral (other than the Pledged Stock) can be perfected pursuant to such financing statements and such other filings, in each case prior and superior in right to any other Person (except Liens permitted by Section 7.3).

 

(b)           Each of the Mortgages upon execution is effective to create in favor of the Collateral Agent, for the benefit of the Secured Parties, a legal, valid and enforceable (subject to the effect of bankruptcy, insolvency, reorganization, receivership, moratorium and other similar laws affecting creditors’ rights) first priority Lien on, and security interests in, the Mortgaged Properties described therein and proceeds thereof subject to the Liens permitted by such Mortgage and, to the extent applicable, the OnCure Assets Intercreditor Agreement, and when the Mortgages are filed in the appropriate recording offices specified in the local counsel opinions delivered with respect thereto in accordance with the provisions of 6.9(b) or Section 6.14 of the Original Credit Agreement), each such Mortgage shall constitute a fully perfected Lien on, and security interest in, all right, title and interest of the Loan Parties in the Mortgaged Properties and the proceeds thereof, as security for the Obligations (as defined in the relevant Mortgage), in each case prior and superior in right to any other Person (except that the security interest created in such real property and the Mortgaged Property may be subject to the liens permitted by such Mortgage and, to the extent applicable, the OnCure Assets Intercreditor Agreement).

 

4.20.       Solvency.  On the Closing Date and the Amendment and Restatement Effective Date, the Group Members on a consolidated basis are, and after giving effect to the transactions and the incurrence of all Indebtedness and obligations being incurred in connection therewith will be, Solvent.

 

4.21.       Senior Indebtedness.  The Obligations constitute “Senior Indebtedness” and “Designated Senior Indebtedness” (or any other terms of similar meaning and import) of the Borrower under and as defined in the documents governing the Senior Subordinated Notes and any Refinancing Indebtedness (to the extent the concept of Designated Senior Indebtedness (or similar concept) exists therein) in respect thereof.  The obligations of each Subsidiary Guarantor under the Guaranty and Collateral Agreement constitute “Senior Indebtedness” and “Designated Senior Indebtedness” (or any other terms of similar meaning and import) of such Subsidiary Guarantor under and as defined in the documents governing the Senior Subordinated Notes and any Refinancing Indebtedness (to the extent the concept of Designated Senior Indebtedness (or similar concept) exists therein) in respect thereof.

 

4.22.       Insurance.  No Mortgage encumbers improved real property that is located in an area that has been identified by the Secretary of Housing and Urban Development as an area having special flood hazards and in which flood insurance has been made available under the National Flood Insurance Act of 1968, unless flood insurance has been obtained to the extent required in order to satisfy all applicable Requirements of Law in order for a Mortgage to be obtained thereon.  Schedule 4.22 to the

 

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Original Credit Agreement sets forth a true, complete and correct description of all insurance maintained by each Covenant Party as of the Closing Date.

 

4.23.       Anti-Terrorism Law.

 

(a)           No Covenant Party is in violation of any Requirement of Law in any material respect relating to terrorism or money laundering (“Anti-Terrorism Laws”), including Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001 (the “Executive Order”), and the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56.

 

(b)           No Covenant Party is any of the following:

 

(i)            a person that is listed in the annex to, or is otherwise subject to the provisions of, the Executive Order;

 

(ii)           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, the Executive Order;

 

(iii)          a person with which any Lender is prohibited from dealing or otherwise engaging in any transaction by any Anti-Terrorism Law;

 

(iv)          a person that commits, threatens or conspires to commit or supports “terrorism” as defined in the Executive Order; or

 

(v)           a person that is named as a “specially designated national and blocked person” on the most current list published by the U.S. Treasury Department Office of Foreign Assets Control (“OFAC”) at its official website or any replacement website or other replacement official publication of such list.

 

4.24.       Brokers’ Fees.  Except as set forth on Schedule 4.24, no Covenant Party has any obligation to any Person in respect of any finder’s, broker’s, investment banking or other similar fee in connection with any of the lending transactions contemplated under this Agreement.

 

SECTION 5

 

CONDITIONS PRECEDENT

 

5.1.         [Reserved].

 

5.2.         Conditions to Each Extension of Credit.  The agreement of each Lender to make any extension of credit requested to be made by it on any date is subject to the satisfaction or waiver of the following conditions precedent:

 

(a)           Representations and Warranties.  Each of the representations and warranties made by any Loan Party in or pursuant to the Loan Documents shall be true and correct in all material respects to the extent such covenant or other agreement is not already subject to a “materiality” or “Material Adverse Effect” qualifier on and as of such date as if made on and as of such date (other than representations and warranties which speak only as of a certain date, which representations and warranties shall be made only on such date).

 

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(b)           No Default.  No Default or Event of Default shall have occurred and be continuing on such date or after giving effect to the extensions of credit requested to be made on such date.

 

(c)           Applicable Sum.  After giving pro forma effect to the use of proceeds of such extension of credit, the Applicable Sum shall not be less than $15,000,000.

 

(d)           To the extent that after giving effect to such extension of credit, the Available  Commitments of all the Revolving Lenders would be less than $15,000,000, at least  5 Business Days prior to such extension of credit,  the Administrative Agent and the Lenders shall have received a certificate of a Responsible Officer of the Borrower containing a calculation (in reasonable detail)  demonstrating that such extension of credit is permitted under all Indebtedness of any Covenant Party described in Section 8(e).

 

Each borrowing by and issuance of a Letter of Credit on behalf of the Borrower hereunder after the Closing Date shall constitute a representation and warranty by the Borrower as of the date of such extension of credit that the conditions contained in this Section 5.2 have been satisfied.

 

SECTION 6

 

AFFIRMATIVE COVENANTS

 

The Borrower hereby agrees that, until the expiration or termination of the Commitments, all Letters of Credit have been terminated (or cash collateralized or backstopped on terms reasonably acceptable to Administrative Agent and the Issuing Bank) and so long as any Obligations are owing to any Lender or the Administrative Agent hereunder (other than contingent indemnification obligations), the Borrower shall and shall cause each Restricted Subsidiary to:

 

6.1.         Financial Statements.  Furnish to the Administrative Agent (and the Administrative Agent shall promptly furnish to the Lenders, by posting to Syndtrak or otherwise):

 

(a)           not later than 90 days after the end of each fiscal year of Parent, a copy of the audited consolidated balance sheet of Parent and its consolidated Subsidiaries as at the end of such year and the related audited consolidated statements of income and of cash flows for such year, setting forth in each case in comparative form the figures for the previous year, reported on without a “going concern” or like qualification or exception, or qualification arising out of the scope of the audit, by Ernst & Young LLP or other “Big Four” independent certified public accountants or other independent public accountants of nationally recognized standing reasonably acceptable to the Administrative Agent; provided that it shall not be a violation of this clause (a) if the audit and opinion accompanying the financial statements for any fiscal year is subject to a “going concern” or like qualification solely as a result of the Termination Date being scheduled to occur within a year;

 

(b)           not later than 45 days after the end of each of the first three quarterly periods of each fiscal year of Parent, the unaudited consolidated balance sheet of Parent and its consolidated Subsidiaries as at the end of such quarter and the related unaudited consolidated statements of income and of cash flows for such quarter and the portion of the fiscal year through the end of such quarter, setting forth in each case in comparative form the figures for the same quarter in the previous year, certified by a Responsible Officer as being fairly stated in all material respects (subject to normal year-end audit adjustments and the absence of footnotes);

 

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(c)           simultaneously with the delivery of each set of consolidated financial statements referred to in Sections 6.1(a) and 6.1(b) above, (x) the related consolidating financial statements reflecting the adjustments necessary to eliminate the accounts of Unrestricted Subsidiaries (if any) from such consolidated financial statements and (y) a report of Borrower’s and its Restricted Subsidiaries’ regional performance in such quarter or year, as the case may be, substantially consistent with the form of the report delivered to the administrative agent under the Existing Credit Agreement on April 14, 2012; and

 

(d)           simultaneously with the delivery of each set of consolidated financial statements referred to in Sections 6.1(a) and (b) above, supplemental consolidating financial information with respect to the Borrower and its Restricted Subsidiaries for the applicable quarterly or annual period, in a format substantially similar to the format of the supplemental consolidating financial information contained in footnote (20) to Parent’s audit for the year ended December 31, 2011 (or such other format as reasonably agreed to by the Administrative Agent).

 

All such financial statements shall be complete and correct in all material respects and shall be prepared in accordance with GAAP applied (except as approved by such accountants or a Responsible Officer, as the case may be, and disclosed therein) consistently throughout the periods reflected therein and with prior periods.  With regard to interim financial statements, such interim financial statements will not include all of the information and footnotes required by GAAP for complete financial statements and be subject to year-end adjustments.

 

Notwithstanding the foregoing, the obligations in paragraphs (a) and (b) of this Section 6.1 may be satisfied with respect to financial information of Parent and its consolidated Subsidiaries by furnishing Parent’s Form 10-K or 10-Q, as applicable, filed with the SEC; provided that such Form 10-K or 10-Q contains or is accompanied by the items required by such paragraphs.

 

Borrower hereby acknowledges that (a) the Administrative Agent and/or the Joint Lead Arrangers will make available to the Lenders materials and/or information provided by or on behalf of Borrower hereunder (collectively, “Company Materials”) by posting the Company Materials on Syndtrak or another similar electronic system (the “Platform”) and (b) certain of the Lenders may be “public-side” Lenders (i.e., Lenders that do not wish to receive material non-public information with respect to Borrower or its securities) (each, a “Public Lender”).  Borrower hereby agrees that it will identify that portion of the Company Materials that may be distributed to the Public Lenders and that (w) all such Company 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 Company Materials “PUBLIC,” Borrower shall be deemed to have authorized the Administrative Agent, the Joint Lead Arrangers and the Lenders to treat such Company 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 Company Materials constitute Information, they shall be treated as set forth in Section 10.15); (y) all Company Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Investor”; and (z) the Administrative Agent and the Joint Lead Arrangers shall be entitled to treat any Company Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated “Public Investor.”

 

6.2.         Certificates; Other Information.  Furnish to the Administrative Agent (and the Administrative Agent shall promptly furnish to the Lenders, by posting to Syndtrak or otherwise):

 

(a)           if, as of the last Business Day of any calendar month, the Available Commitments of all the Revolving Lenders is less than $15,000,000, within 5 Business Days after

 

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the end of such month, a certificate of a Responsible Officer of the Borrower containing a calculation (in reasonable detail) of the Applicable Sum as of such last Business Day of such month; (for the avoidance of doubt, no such certificate shall be required to be delivered with respect to any month for which the Available Commitments of all the Revolving Lenders is at least $15,000,000);

 

(b)           concurrently with the delivery of any financial statements pursuant to Sections 6.1(a) or (b), (i) a Compliance Certificate containing all information and calculations required by the form of such certificate attached as Exhibit H (or such other form as may be agreed to by the Administrative Agent to reflect the terms of Section 7.14), including detail with respect to the calculation of Consolidated EBITDA as of the last day of the fiscal quarter or fiscal year of Parent, as the case may be and (ii) to the extent not previously disclosed to the Administrative Agent, a description of any change in the jurisdiction of organization of any Loan Party and a list of any Intellectual Property acquired by any Loan Party since the date of the most recent report delivered pursuant to this clause (ii) (or, in the case of the first such report so delivered, since the Closing Date);

 

(c)           no later than 60 days after the end of each fiscal year of Parent and its Subsidiaries, a consolidated budget for the following fiscal year, including a detailed projected consolidated balance sheet of Parent and its consolidated Subsidiaries, the related consolidated statements of projected cash flow and projected income and a description of the underlying assumptions applicable thereto for each quarter of such fiscal year, and, as soon as available, significant revisions, if any, of such budget and projections with respect to such fiscal year, to the extent such revisions have been delivered to the Board of Directors of Parent (or one of Parent’s parent companies) for its approval;

 

(d)           as promptly as practicable after the effectiveness thereof, copies of any amendment, supplement, waiver or other modification with respect to any item of Indebtedness over $20,000,000, the Senior Subordinated Notes, the Second Lien Notes and any Refinancing Indebtedness in respect of any of the foregoing and not otherwise required to be required to be delivered under Section 6.1 or 6.2;

 

(e)           promptly after the furnishing thereof, copies of any statement or report furnished to any holder of debt securities in an aggregate principal amount of $20,000,000 for any one issue or public equity securities of the Borrower or any Restricted Subsidiary of Borrower and not otherwise required to be furnished to the Lenders pursuant to Section 6.1 or any other clause of this Section 6.2 and promptly after the same are filed, copies of all financial statements and reports that the Borrower or any Restricted Subsidiary of Borrower may make to, or file with, the SEC; and

 

(f)            promptly, such additional financial and other information concerning a Group Member as the Administrative Agent on behalf of itself or any Lender may from time to time reasonably request; provided that no such information shall be required to be so provided if the provision thereof would cause such Group Member to lose attorney-client privilege or would violate a confidentiality agreement or if such information is not reasonably available.

 

6.3.         Payment of Taxes.  Pay, discharge or otherwise satisfy at or before maturity or before they become delinquent, as the case may be, all its material Tax obligations of whatever nature, except (i) where the amount or validity thereof is being contested in good faith by appropriate proceedings and reserves in conformity with GAAP with respect thereto have been provided on the books of the relevant Covenant Party and such contest suspends the enforcement of the Taxes in question, or

 

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(ii) for failure to pay that could not individually or in the aggregate reasonably be expected to result in a Material Adverse Effect.

 

6.4.         Maintenance of Existence; Compliance.

 

(a)           (i) Except as otherwise explicitly permitted under Section 7.4, preserve, renew and keep in full force and effect its organizational existence and (ii) take all reasonable action to maintain all rights, privileges and franchises necessary in the normal conduct of its business, except, in each case, as otherwise permitted by Section 7.4 except, in the case of clause (ii) above, to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect; and (b) comply with all Requirements of Law except to the extent that failure to comply therewith could not, in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

6.5.         Maintenance of Property; Insurance.

 

(a)           (i) Keep all material property useful and necessary in its business in good working order and condition, ordinary wear and tear and ordinary damage by casualty and condemnation excepted, (ii) maintain with financially sound and reputable insurance companies insurance on all its Property in at least such amounts and against at least such risks as are prudent in its reasonable business judgment (but including in any event public liability and business interruption) as are usually insured against in the same general area by companies engaged in the same or a similar business; and (iii) provide that each insurance policy maintained or required to be maintained by any Covenant Party shall (A) name the Collateral Agent, on behalf of the Secured Parties, as loss payee pursuant to a so-called “standard mortgagee clause” or “Lender’s loss payable endorsement,” with respect to property coverage on Collateral of such Covenant Party, and shall name the Administrative Agent on behalf of the Secured Parties as an additional insured, with respect to general liability coverage, (B) provide that the insurer(s) shall endeavor to notify the Collateral Agent of any proposed cancellation of such policy at least 30 days in advance thereof (unless such proposed cancellation arises by reason of non-payment of insurance premiums in which case such notice shall be given at least 10 days in advance thereof) and (C) cause any Insurance Subsidiary to (x) conduct its insurance business in compliance with all applicable insurance laws, rules, regulations and orders and using sound actuarial principles except to the extent where such failure to comply could not reasonably be expected to result in a Material Adverse Effect and (y) maintain usual and customary stop-loss coverage and excess coverage reinsurance for individual claims.  The insurance premiums and other expenses charged by any Insurance Subsidiary to the Borrower and its Restricted Subsidiaries shall be reasonable and customary.  The Borrower will provide the Administrative Agent copies of any outside actuarial reports prepared with respect to any projection, valuation or appraisal of any Insurance Subsidiary promptly after receipt thereof.

 

(b)           If any portion of any improvements located on any Mortgaged Property is at any time located in an area identified by the Federal Emergency Management Agency (or any successor agency) as a special flood hazard area with respect to which flood insurance has been made available under the National Flood Insurance Act of 1968 (as now or hereafter in effect or successor act thereto), then the Borrower shall, or shall cause each Loan Party to maintain, or cause to be maintained, with a financially sound and reputable insurer, flood insurance in an amount and otherwise sufficient to comply with all applicable rules and regulations promulgated pursuant to the Flood Insurance Laws.

 

6.6.         Inspection of Property; Books and Records; Discussions.  (a) Keep books of records and account in which full, true and correct entries (in all material respects) in conformity with GAAP shall be made of all dealings and transactions in relation to its business and activities required by GAAP, and (b) permit representatives of any Lender (coordinated through the Administrative Agent) to visit and inspect any of its properties and examine and make abstracts from any of its books and records

 

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(other than materials protected by the attorney-client privilege and materials which such person may not disclose without violation of a confidentiality obligation binding upon it) at any reasonable time during normal business hours (and upon reasonable notice) and as often as may reasonably be desired and to discuss the business, operations, properties and financial and other condition of the Group Members with officers and employees of the Group Members and with their independent certified public accountants (provided the Borrower is given an opportunity to be present at such meetings); provided that, so long as no Event of Default has occurred and is continuing, the Administrative Agent and the Lenders shall not be entitled to exercise the foregoing rights more than once, in the aggregate, in any calendar year.

 

6.7.         Notices.  Promptly give notice to the Administrative Agent and the Administrative Agent shall furnish to the Lenders by posting to Syndtrak or otherwise of:

 

(a)           the occurrence of any Default or Event of Default;

 

(b)           any litigation, investigation or proceeding affecting any Group Member that could reasonably be expected to result in a Material Adverse Effect;

 

(c)           the following events, as soon as possible and in any event within 30 days after any Responsible Officer of the Borrower knows thereof if such event or events could reasonably be expected to result in a Material Adverse Effect:  (i) the occurrence of any Reportable Event with respect to any Plan, a failure to make any required contribution to a Plan or Multiemployer Plan, the creation of any Lien in favor of the PBGC or a Plan or any withdrawal from, or the termination, Reorganization or Insolvency of, any Multiemployer Plan or (ii) the institution of proceedings or the taking of any other action by the PBGC or the Borrower or any Commonly Controlled Entity or any Multiemployer Plan with respect to the withdrawal from, or the termination, Reorganization or Insolvency of, any Plan or Multiemployer Plan; and

 

(d)           any development or event that has had or could reasonably be expected to have a Material Adverse Effect.

 

Each notice pursuant to this Section 6.7 shall be accompanied by a statement of a Responsible Officer setting forth details of the occurrence referred to therein and stating what action the relevant Covenant Party proposes to take with respect thereto, if any.

 

6.8.         Environmental Laws.

 

(a)           Comply in all material respects with, and use commercially reasonable efforts to ensure compliance in all material respects by all tenants and subtenants, if any, at the Properties with, all applicable Environmental Laws, and obtain and comply in all material respects with and maintain, and use commercially reasonable efforts to ensure that all tenants and subtenants obtain and comply in all material respects with and maintain, any and all licenses, approvals, notifications, registrations or permits required by applicable Environmental Laws.  This clause (a) shall be deemed not breached by a noncompliance with the foregoing if, upon learning of such noncompliance, any affected Covenant Party promptly undertakes reasonable efforts to eliminate such noncompliance, and such noncompliance and the elimination thereof, in the aggregate with any other noncompliance with any of the foregoing and the elimination thereof, could not reasonably be expected to have a Material Adverse Effect.

 

(b)           Conduct and complete all investigations, studies, sampling and testing, and all material remedial, removal and other actions required for purposes of material compliance with Environmental Laws and promptly comply in all material respects with all lawful orders and directives of all Governmental Authorities regarding Environmental Laws in each case.  This clause (b) shall be

 

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deemed not breached by a failure to comply with such an order or directive if any affected Covenant Party timely challenges in good faith such order or directive in a manner consistent with all applicable Environmental Laws and pursues such challenge diligently, and the pendency and pursuit of such challenge, in the aggregate with the pendency and pursuit of any other such challenges, could not reasonably be expected to have a Material Adverse Effect.

 

6.9.         Additional Collateral, Etc.

 

(a)           With respect to any personal property or Intellectual Property acquired after the Closing Date by any Loan Party (other than any motor vehicles, or any tangible personal property evidenced by a title certificate or any other type of property expressly excluded by the Security Documents) as to which the Collateral Agent, for the benefit of the Secured Parties, does not have a perfected Lien, promptly (i) execute and deliver to the Collateral Agent such amendments to the Guaranty and Collateral Agreement or such other documents as the Collateral Agent reasonably deems necessary or advisable to grant to the Collateral Agent, for the benefit of the Secured Parties, a security interest under U.S. law in such property pursuant to the terms, conditions and limitations set forth in the Guaranty and Collateral Agreement, subject to Liens permitted under Section 7.3, and (ii) take all actions reasonably requested by the Collateral Agent to grant to the Administrative Agent, for the benefit of the Lenders, a perfected first priority security interest under U.S. law in such property pursuant to the terms, conditions and limitations set forth in the Guaranty and Collateral Agreement and, to the extent applicable, the OnCure Assets Intercreditor Agreement, including the filing of Uniform Commercial Code financing statements in such jurisdictions as may be reasonably required by the Guaranty and Collateral Agreement or under U.S. law or as may be reasonably requested by the Administrative Agent.

 

(b)           With respect to any fee interest in any real property having a value (together with improvements thereof) of at least $1,000,000 acquired after the date that is 180 days after the Closing Date by any Loan Party (other than any such property subject, or to be subject to, a Lien permitted by clause (7) of the definition of Permitted Liens or a mortgage permitted by clause (13) of the definition of Permitted Liens (but only for so long as such mortgage remains in place)), on a quarterly basis reasonably promptly within 30 days after delivery of the financial statements delivered pursuant to Section 6.1(a) or (b) execute and deliver a first priority mortgage or deed of trust subject to the Liens permitted by such mortgage or deed of trust and, to the extent applicable, the OnCure Assets Intercreditor Agreement, in a form substantially similar to the Mortgages on the Mortgaged Properties and otherwise reasonably satisfactory to the Administrative Agent, in favor of the Collateral Agent, for the benefit of the Secured Parties, covering such real property and recorded by a nationally recognized title insurance company in such manner and in such place as is required by law to establish, perfect, preserve and protect the Lien in favor of the Collateral Agent required to be granted pursuant to the Mortgage and all taxes, fees and other charges payable in connection therewith shall be paid in full.  Such Loan Party shall otherwise take such actions and execute and/or deliver to the Collateral Agent such documents as the Administrative Agent shall reasonably require to confirm the validity, perfection and priority of the Lien of any existing Mortgage or new Mortgage against such after-acquired Real Property (including a Title Policy, a Survey and local counsel opinion (in form and substance reasonably satisfactory to the Administrative Agent) and other documents of the type described in Section 6.14 of the Original Credit Agreement in respect of such Mortgage).

 

(c)           With respect to any new Restricted Subsidiary created or acquired after the Closing Date by any Loan Party or any Unrestricted Subsidiary that becomes a Restricted Subsidiary or any Restricted Subsidiary that newly meets the requirements of the definition of Subsidiary Guarantor, promptly (i) execute and deliver to the Administrative Agent such amendments to the Guaranty and Collateral Agreement as the Administrative Agent reasonably deems necessary to grant to the Administrative Agent, for the benefit of the Lenders, a perfected first priority security interest subject to

 

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Liens permitted pursuant to Section 7.3 and, to the extent applicable, the OnCure Assets Intercreditor Agreement in the Capital Stock of such Subsidiary that is owned by any Loan Party (provided such security interest shall be limited (A) in the case of a Foreign Subsidiary directly owned by a Domestic Subsidiary, to 65% of such Capital Stock in such Foreign Subsidiary and (B) in the case of any other Foreign Subsidiary or any Insurance Subsidiary or Immaterial Subsidiary, to 0% of such Capital Stock in such Foreign Subsidiary, Insurance Subsidiary or Immaterial Subsidiary), (ii) deliver to the Administrative Agent the certificates representing such Capital Stock, together with undated stock powers, in blank, executed and delivered by a duly authorized officer of the relevant Loan Party, (iii) cause such Subsidiary (unless such Subsidiary is a Foreign Subsidiary, an Insurance Subsidiary, an Immaterial Subsidiary, a Regulated Entity or a Non-Wholly-Owned Subsidiary or otherwise excluded pursuant to the definition of a Subsidiary Guarantor) (A) to become a party to the Guaranty and Collateral Agreement, (B) to take such actions necessary and reasonably requested by the Administrative Agent to grant to the Administrative Agent for the benefit of the Lenders a perfected first priority security interest subject to the Liens permitted under Section 7.3 and, to the extent applicable, the OnCure Assets Intercreditor Agreement in the Collateral described in the Guaranty and Collateral Agreement with respect to such Subsidiary, including the filing of Uniform Commercial Code financing statements in such jurisdictions as may be required by the Guaranty and Collateral Agreement or by U.S. law or as may be reasonably requested by the Administrative Agent and (C) to deliver to the Administrative Agent a certificate of such Subsidiary, substantially in the form of Exhibit I to the Guaranty and Collateral Agreement or in such other form as may be reasonably acceptable to the Administrative Agent, with appropriate insertions and attachments, and (iv) if reasonably requested by the Administrative Agent, deliver to the Administrative Agent legal opinions relating to the matters described above, which opinions shall be in form and substance, and from counsel, reasonably satisfactory to the Administrative Agent; provided that (1) the Borrower shall not be required to take, or cause any Subsidiary to take, the actions required by this paragraph (c) with respect to any such Subsidiary prior to the delivery of financial statements delivered pursuant to Section 6.1(a) or (b) for the fiscal quarter of the Borrower during which such Subsidiary was created or acquired unless (x) the aggregate amount of Investments made by Borrower and the Subsidiaries in all such Subsidiaries exceeds $10,000,000 prior to the end of such fiscal quarter or (y) an Event of Default has occurred and is continuing and (2) the Borrower shall not be required to provide the legal opinions required by this paragraph (c) if the applicable Subsidiary (on a consolidated basis) accounts for less than 1% of the assets, revenues or Consolidated EBITDA of the Borrower, in each case on a pro forma basis as of the end of and for the four fiscal quarters most recently ended for which financial statements have been delivered under Section 6.1(a) or (b) or, if prior to the first delivery date for such financial statements, for which financial statements of the Borrower are available, as though such Subsidiary had become a Subsidiary at the beginning of such period, unless such Subsidiary, together with all other Subsidiary Guarantors organized in the same jurisdiction with respect to which no opinions have been received by the Administrative Agent, account for 4% of more of the assets, revenues or Consolidated EBITDA of the Borrower (determined on the same basis as provided above).

 

6.10.       Security Interests; Further Assurances.

 

(a)           Promptly, upon the reasonable request of the Administrative Agent, at 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 Security 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 Security Document, or 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 Security Documents.  Upon the exercise by the Administrative Agent 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, use your commercially reasonable efforts to execute and deliver all applications, certifications, instruments and other documents and papers that the Administrative Agent 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, Borrower shall provide to the Administrative Agent appraisals that satisfy the applicable requirements of the Real Estate Appraisal Reform Amendments of FIRREA.

 

(b)           Notify the Administrative Agent and the Collateral Agent in writing of any change in any Loan Party’s (i) legal name, (ii) location of chief executive office or principal place of business, (iii) identity or type of organization or corporate structure, (iv) Federal Taxpayer Identification Number or organizational identification number or (v) jurisdiction of organization, in each case within 60 days after any such change occurs.  The Borrower agrees to cause each Loan Party that makes any change described in the proceeding sentence to comply with Section 6.10(a), as applicable.

 

6.11.       Compliance with ERISA.  (a) Except where the failure to so comply could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (i) comply with all material applicable provisions of ERISA and the regulations and published interpretations thereunder with respect to all Employee Benefit Plans, (ii) not take any action or fail to take action the result of which could reasonably be expected to be a liability to the PBGC or to a Multiemployer Plan, (iii) not participate in any prohibited transaction that could reasonably be expected to result in any civil penalty under ERISA or tax under the Code and (iv) operate each Employee Benefit Plan in such a manner that will not incur any tax liability under Section 4980B of the Code or any liability to any qualified beneficiary as defined in Section 4980B of the Code and (b) furnish to the Administrative Agent upon the Administrative Agent’s request such additional information about any Employee Benefit Plan as may be reasonably requested by the Administrative Agent.

 

6.12.       Use of Proceeds.  The Borrower will use the proceeds of the Loans for the purposes set forth in Section 4.16.

 

6.13.       [Reserved].

 

6.14.       [Reserved].

 

6.15.       Modifications of OnCure Note Documents.  Substantially concurrent with the closing of the OnCure Acquisition, the Borrower and the Subsidiary Guarantors shall amend, or cause to be amended, the OnCure Indenture and any other OnCure Note Documents, to permit the incurrence of Liens on the collateral securing the OnCure Notes to secure the Obligations under this Agreement and the other Loan Documents.

 

SECTION 7

 

NEGATIVE COVENANTS

 

The Borrower hereby agrees that, until the expiration or termination of the Commitments, all Letters of Credit have been terminated (or cash collateralized or backstopped on terms reasonably acceptable to Administrative Agent and the Issuing Bank) and so long as any Obligations (other than contingent indemnification obligations) are owing to any Lender or the Administrative Agent hereunder, the Borrower shall not, and shall not permit any of its Restricted Subsidiaries to:

 

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7.1.         [Reserved].

 

7.2.         Indebtedness.  Directly or indirectly, create, incur, assume, guarantee, acquire, become liable, contingently or otherwise, with respect to, or otherwise become responsible for payment of (collectively, “incur”) any Indebtedness; provided, however, the Borrower or any of its Restricted Subsidiaries that is or, upon such incurrence, becomes a Guarantor may incur Indebtedness (including, without limitation, Acquired Indebtedness) and any Restricted Subsidiary of the Borrower that is not or will not, upon such incurrence, become a Guarantor, may incur Acquired Indebtedness, in each case if on the date of the incurrence of such Indebtedness, after giving effect to the incurrence thereof, the Consolidated Fixed Charge Coverage Ratio of the Borrower is greater than 2.0 to 1.0.

 

The foregoing limitations will not apply to:

 

(a)           Indebtedness of the Borrower under the Second Lien Notes (and any exchange notes issued pursuant to the Registration Rights Agreement) issued on the Closing Date in an aggregate principal amount not to exceed $350,000,000 and the guarantees by the Guarantors thereof (and the guarantees by the Guarantors of such exchange notes);

 

(b)           Indebtedness of any Loan Party pursuant to any Loan Document;

 

(c)           other Indebtedness of the Borrower and its Restricted Subsidiaries outstanding on the Closing Date and listed on Schedule 7.2(c) (including, without limitation, the Senior Subordinated Notes, Capitalized Lease Obligations and Purchase Money Indebtedness outstanding on the Closing Date);

 

(d)           Indebtedness represented by Capitalized Lease Obligations and Purchase Money Indebtedness of the Borrower and its Restricted Subsidiaries not to exceed the greater of $50,000,000 and 4.0% of Total Assets at any one time outstanding;

 

(e)           Hedging Obligations of the Borrower or any Restricted Subsidiary;

 

(f)            Indebtedness incurred by the Borrower or any Restricted Subsidiary constituting reimbursement obligations with respect to letters of credit issued in the ordinary course of business, including without limitation letters of credit in respect of workers’ compensation claims, health, disability or other employee benefits or property, casualty or liability insurance or self-insurance or other Indebtedness with respect to reimbursement-type obligations regarding workers’ compensation claims; provided, however, that upon the drawing of such letters of credit or the incurrence of such Indebtedness, such obligations are reimbursed within 30 days following such drawing or incurrence;

 

(g)           Indebtedness of a Restricted Subsidiary of the Borrower to the Borrower or to a Restricted Subsidiary of the Borrower for so long as such Indebtedness is held by the Borrower or a Restricted Subsidiary of the Borrower or the holder of a Lien permitted under the Loan Documents, in each case subject to no Lien held by a Person other than the Borrower or a Restricted Subsidiary of the Borrower or the holder of a Lien permitted under the Loan Documents; provided that if as of any date any Person other than the Borrower or a Restricted Subsidiary of the Borrower or the holder of a Lien permitted under the Loan Documents owns or holds any such Indebtedness or holds a Lien in respect of such Indebtedness, such date shall be deemed the incurrence of Indebtedness not constituting permitted Indebtedness under this clause (g) by the issuer of such Indebtedness;

 

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(h)           Indebtedness of the Borrower to a Restricted Subsidiary of the Borrower for so long as such Indebtedness is held by a Restricted Subsidiary of the Borrower or the holder of a Lien permitted under the Loan Documents, in each case subject to no Lien other than a Lien permitted under Section 7.3; provided that (a) any Indebtedness of the Borrower to any Restricted Subsidiary of the Borrower that is not a Guarantor is unsecured and subordinated, pursuant to a written agreement, to the Borrower’s obligations under the Loan Documents and (b) if as of any date any Person other than a Restricted Subsidiary of the Borrower or the holder of a Lien permitted under Section 7.3 owns or holds any such Indebtedness or any Person holds a Lien in respect of such Indebtedness, such date shall be deemed the incurrence of Indebtedness not constituting permitted Indebtedness under this clause (h) by the Borrower;

 

(i)            Indebtedness arising from the honoring by a bank or other financial institution of a check, draft or similar instrument inadvertently (except in the case of daylight overdrafts) drawn against insufficient funds in the ordinary course of business; provided, however, that such Indebtedness is extinguished within five business days of incurrence;

 

(j)            Indebtedness of the Borrower or any of its Restricted Subsidiaries in respect of performance bonds, completion guarantees, bankers’ acceptances, workers’ compensation claims, surety or appeal bonds, payment obligations in connection with self-insurance or similar obligations, and bank overdrafts (and letters of credit in respect thereof) in the ordinary course of business;

 

(k)           Refinancing Indebtedness;

 

(l)            Indebtedness represented by guarantees by the Borrower or its Restricted Subsidiaries of Indebtedness or other obligations otherwise permitted to be incurred under the Loan Documents;

 

(m)          Indebtedness of the Borrower or any Restricted Subsidiary consisting of guarantees, indemnities or obligations in respect of purchase price adjustments, earn-outs or similar obligations in connection with the acquisition or disposition of assets or a Subsidiary;

 

(n)           Indebtedness or Disqualified Capital Stock of Persons (other than Indebtedness or Disqualified Capital Stock incurred in anticipation of such acquisition or merger) that are acquired by the Borrower or any Restricted Subsidiary or merged into the Borrower or a Restricted Subsidiary in accordance with the terms of the Loan Documents; provided that after giving effect to such acquisition either (A) the Borrower would be permitted to incur at least $1.00 of additional Indebtedness pursuant to the first paragraph of this Section 7.2 or (B) the Consolidated Fixed Charge Coverage Ratio would be greater than such Consolidated Fixed Charge Coverage Ratio immediately prior to such acquisition;

 

(o)           additional Indebtedness of the Borrower and its Restricted Subsidiaries in an aggregate principal amount not to exceed $25,000,000 at any one time outstanding;

 

(p)           Indebtedness consisting of promissory notes issued by the Borrower or any Restricted Subsidiary to current or former officers, directors and employees, their respective estates, spouses or former spouses to finance the purchase or redemption of Capital Stock of Borrower or any of its direct or indirect parent corporations permitted by Section 7.6; provided that any such obligations shall be explicitly subordinated to the Obligations;

 

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(q)           Indebtedness of the Borrower or any Restricted Subsidiary to the extent (i) the proceeds of such Indebtedness are deposited and used to defease the Second Lien Notes as described under Article 8 of the Second Lien Notes Indenture and (ii) such Indebtedness otherwise constitutes Refinancing Indebtedness in respect of the Second Lien Notes;

 

(r)            Indebtedness of Restricted Subsidiaries of the Borrower that are not Guarantors in an aggregate principal amount not to exceed the greater of $15,000,000 and 1.25% of Total Assets at any one time outstanding; and

 

(s)            Indebtedness of the Borrower or any Restricted Subsidiary consisting of the financing of insurance premiums in the ordinary course of business.

 

For purposes of determining compliance with this Section 7.2, in the event that an item of Indebtedness meets the criteria of more than one of clauses (a) through (s) above or is entitled to be incurred pursuant to the Consolidated Fixed Charge Coverage Ratio provisions of this Section 7.2, the Borrower shall, in its sole discretion, classify (or on a later date reclassify in whole or in part so long as such Indebtedness is permitted to be incurred pursuant to such provision at the time of reclassification) such item of Indebtedness in any manner that complies with this Section 7.2 (and any portion of an item of Indebtedness to be incurred under clauses (a) through (s) above on a particular date shall not be included in the calculation of the Consolidated Fixed Charge Coverage Ratio in determining the amount of Indebtedness that may be incurred on the same date pursuant to the Consolidated Fixed Charge Coverage Ratio provisions of this Section 7.2).  Accrual of interest, accretion or amortization of original issue discount, the payment of interest on any Indebtedness in the form of additional Indebtedness with the same terms, and the payment of dividends on Disqualified Capital Stock in the form of additional shares of the same class of Disqualified Capital Stock will not be deemed to be an incurrence of Indebtedness or an issuance of Disqualified Capital Stock for purposes of this Section 7.2.  The maximum amount of Indebtedness that the Borrower and its Restricted Subsidiaries may incur pursuant to this Section 7.2 shall not be deemed to be exceeded, with respect to any outstanding Indebtedness, solely as a result of fluctuations in the exchange rate of currencies.

 

The Borrower will not, and will not permit any Restricted Subsidiary that is a Guarantor to, incur or suffer to exist Indebtedness that is senior in right of payment to the Obligations or such Guarantor’s guarantee of the Obligations, as the case may be, and subordinated in right of payment to any other Indebtedness of the Borrower or such Guarantor, as the case may be.  For purposes of the Loan Documents, no Indebtedness will be deemed to be subordinated in right of payment to any other Indebtedness of the Borrower or any Guarantor solely by virtue of such Indebtedness being unsecured or secured by different collateral or by virtue of the fact that the holders of such Indebtedness have entered into one or more intercreditor agreements giving one or more of such holders priority over the other holders in the collateral held by them.

 

7.3.         Liens.  Will not, and will not cause or permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, assume or permit or suffer to exist any Liens (other than Permitted Liens) that secure Indebtedness against or upon any property or assets of the Borrower or any of its Restricted Subsidiaries whether owned on the Closing Date or acquired after the Closing Date, or any proceeds therefrom, or assign or otherwise convey any right to receive income or profits therefrom.

 

7.4.         Merger, Consolidation and Sale of Assets.  Will not, in a single transaction or series of related transactions, consolidate or merge with or into any Person, or sell, assign, transfer, lease, convey or otherwise dispose of (or cause or permit any Restricted Subsidiary of the Borrower to sell, assign, transfer, lease, convey or otherwise dispose of) all or substantially all of the Borrower’s assets

 

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(determined on a consolidated basis for the Borrower and the Borrower’s Restricted Subsidiaries) whether as an entirety or substantially as an entirety to any Person unless:

 

(1)           either:

 

(a)           the Borrower shall be the surviving or continuing corporation; or

 

(b)           the Person (if other than the Borrower) formed by such consolidation or into which the Borrower is merged or the Person which acquires by sale, assignment, transfer, lease, conveyance or other disposition the properties and assets of the Borrower and of the Borrower’s Restricted Subsidiaries substantially as an entirety (the “Surviving Entity”):

 

(x)           shall be a corporation or limited liability company organized and validly existing under the laws of the United States or any State thereof or the District of Columbia; and

 

(y)           shall expressly assume, by amendment to this Agreement and to the other Loan Documents (in form satisfactory to the Administrative Agent), executed and delivered to the Administrative Agent, the due and punctual payment of the principal of, fees and premium, if any, and interest on the Obligations and the performance of every covenant of this Agreement and the Loan Documents on the part of the Borrower to be performed or observed;

 

(2)           immediately after giving effect to such transaction and the assumption contemplated by clause (1)(b)(y) above (including giving effect to any Indebtedness and Acquired Indebtedness incurred or anticipated to be incurred in connection with or in respect of such transaction), either (a) the Borrower or such Surviving Entity, as the case may be shall be able to incur at least $1.00 of additional Indebtedness pursuant to Section 7.2 or (b) the Consolidated Fixed Charge Coverage Ratio for the Borrower or such Surviving Entity, as the case may be would be greater than such ratio immediately prior to such transaction;

 

(3)           immediately before and immediately after giving effect to such transaction and the assumption contemplated by clause (1)(b)(y) above (including, without limitation, giving effect to any Indebtedness and Acquired Indebtedness incurred or anticipated to be incurred and any Lien granted in connection with or in respect of the transaction), no Default or Event of Default shall have occurred or be continuing; and

 

(4)           the Borrower or the Surviving Entity shall have delivered to the Administrative Agent and the Collateral Agent an officers’ certificate and an opinion of counsel, each stating that such consolidation, merger, sale, assignment, transfer, lease, conveyance or other disposition and, if any amendments to the Loan Documents are required in connection with such transaction, such amendments comply with the applicable provisions of the Loan Documents and that all conditions precedent in the Loan Documents relating to such transaction have been satisfied.

 

For purposes of the foregoing, the transfer (by lease, assignment, sale or otherwise, in a single transaction or series of transactions) of all or substantially all of the properties or assets of one or more Restricted Subsidiaries of the Borrower the Capital Stock of which constitutes all or substantially all of the properties and assets of the Borrower, shall be deemed to be the transfer of all or substantially all of the properties and assets of the Borrower.

 

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Notwithstanding the foregoing clauses (1), (2) and (3), (a) the Borrower and any Restricted Subsidiary may consolidate with, merge into or sell, assign, transfer, convey, lease or otherwise dispose of all or part of its properties and assets to the Borrower or to another Restricted Subsidiary and (b) the Borrower may merge with an Affiliate that is a Person that has no material assets or liabilities and which was organized solely for the purpose of reorganizing the Borrower in another jurisdiction.

 

Upon any consolidation, combination or merger or any transfer of all or substantially all of the assets of the Borrower in accordance with the foregoing in which the Borrower is not the continuing corporation, the Surviving Entity shall succeed to, and be substituted for, and may exercise every right and power of, the Borrower under this Agreement and the other Loan Documents with the same effect as if such surviving entity had been named as such, and the Borrower shall be released from the obligations under this Agreement and the other Loan Documents.

 

Each Guarantor (other than any Guarantor whose Guarantee is to be released in accordance with the terms of this Agreement) will not, and the Borrower will not cause or permit any Guarantor to, consolidate with or merge with or into any Person other than the Borrower or any other Guarantor unless:

 

(1)           the entity formed by or surviving any such consolidation or merger (if other than the Guarantor) or to which such sale, lease, conveyance or other disposition shall have been made is a corporation, limited liability company or partnership organized and existing under the laws of the United States or any State thereof or the District of Columbia;

 

(2)           such entity assumes by supplement to this Agreement and any other applicable Loan Documents all of the obligations of the Guarantor on the Guarantee; and

 

(3)           immediately after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing.

 

Any merger or consolidation of a Guarantor with and into the Borrower (with the Borrower being the surviving entity) or another Guarantor that is a Restricted Subsidiary of the Borrower need only comply with clause (4) of the first paragraph of this Section 7.4.

 

7.5.         Disposition of Property.  Consummate an Asset Sale unless:

 

(1)           the Borrower or the applicable Restricted Subsidiary, as the case may be, receives consideration at the time of such Asset Sale at least equal to the fair market value of the assets sold or otherwise disposed of (as determined in good faith by the Borrower’s Board of Directors);

 

(2)           at least 75% of the consideration received by the Borrower or the Restricted Subsidiary, as the case may be, from such Asset Sale shall be in the form of cash, Cash Equivalents and/or Replacement Assets (as defined below) and is received at the time of such disposition; provided that (a) the amount of any liabilities (as shown on the Borrower’s or such Restricted Subsidiary’s most recent balance sheet or the notes thereto) of the Borrower or any such Restricted Subsidiary (other than liabilities that are by their terms subordinated to the Obligations) that are assumed by the transferee of any such assets, (b) any securities, notes or other obligations received by the Borrower or any such Restricted Subsidiary from such transferee that are, within 180 days after the date of the Asset Sale, converted by the Borrower or such Restricted Subsidiary into cash or Cash Equivalents, to the extent of the cash of Cash

 

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Equivalents received in that conversion and (c) Designated Non-cash Consideration received by the Borrower or any Restricted Subsidiary in connection with a joint venture with a Strategic Investor, provided that the aggregate amount of Designated Non-cash Consideration issued pursuant to this clause 2(c) since the Closing Date shall not exceed the greater of $25,000,000 and 2.0% of Total Assets of the Borrower 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, each shall be deemed to be cash for the purposes of this provision;

 

(3)           upon the consummation of an Asset Sale, the Borrower shall apply, or cause such Restricted Subsidiary to apply, the Net Cash Proceeds relating to such Asset Sale within 365 days of receipt thereof either:

 

(a)           (x)(i) to permanently reduce Commitments pursuant to Section 2.9 or (ii) prepay, acquire or otherwise retire any Indebtedness of a Restricted Subsidiary that is not a Guarantor and, in the case of any such Indebtedness under any revolving credit facility, effect a permanent reduction in the availability under such revolving credit facility; provided that if the Borrower prepays any Indebtedness of a Restricted Subsidiary that is not a Guarantor pursuant to clause (ii) of this clause (a), the Borrower shall equally and ratably reduce the Commitments by making an offer to all Revolving Lenders to reduce their Commitments pursuant to procedures reasonably satisfactory to the Administrative Agent (and upon any reduction of Commitments contemplated hereby, comply with Section 2.11) or (y) to the extent all Commitments have been terminated, there are no outstanding Revolving Obligations and all Letters of Credit have been terminated (or Cash Collateralized in an aggregate amount equal to 103% of the L/C Exposure), to prepay the Term Loan Obligations;

 

(b)           to make an investment or capital expenditure in properties and assets that replace the properties and assets that were the subject of such Asset Sale or in properties and assets (including Capital Stock) that will be used in the business of the Borrower and its Restricted Subsidiaries as existing on the Closing Date or in businesses reasonably related thereto (“Replacement Assets”);

 

(c)           with respect to any assets or Capital Stock of OnCure and/or any of its Subsidiaries, to prepay, redeem or otherwise retire Indebtedness under the OnCure Notes; and/or

 

(d)           a combination of prepayment and investment permitted by the foregoing clauses (3)(a), (3)(b) and (3)(c); and

 

(4)           if such Asset Sale involves the disposition of Collateral, the Borrower or such Subsidiary has complied with the provisions of this Agreement and the other Loan Documents.

 

It is understood and agreed that Net Cash Proceeds “applied” to reduce Commitments pursuant to this Section 7.5 shall be deemed applied to the extent of such Commitments so reduced, and to the extent Section 2.11 requires a prepayments and Cash Collateralization in an aggregate amount less than such reduction, such Net Cash Proceeds may be used for any other purpose not prohibited by the Loan Documents.

 

Pending the final application of such Net Cash Proceeds, the Borrower may temporarily reduce borrowings under this Agreement or any other revolving credit facility or otherwise use the Net

 

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Cash Proceeds in any manner that is not prohibited by the Loan Documents.  On the 366th day after an Asset Sale or such earlier date, if any, as the Board of Directors of the Borrower or of such Restricted Subsidiary determines not to apply the Net Cash Proceeds relating to such Asset Sale as set forth in clauses (3)(a), (3)(b), (3)(c) and (3)(d) of the preceding paragraph (each, a “Net Proceeds Offer Trigger Date”), such aggregate amount of Net Cash Proceeds which have not been applied on or before such Net Proceeds Offer Trigger Date as permitted in clauses (3)(a), (3)(b), (3)(c) and (3)(d) of the preceding paragraph (provided that if prior to such 366th day the Borrower or a Restricted Subsidiary enters into a binding agreement committing it to apply such Net Cash Proceeds in accordance with the requirements of clauses (3)(a), (3)(b), (3)(c) and (3)(d) of the preceding paragraph after such day, such 365-day period will be extended with respect to the amount of Net Cash Proceeds so committed for a period not to exceed 180 days) (each a “Net Proceeds Offer Amount”) shall be applied by the Borrower or such Restricted Subsidiary to (x) if the Net Cash Proceeds Trigger has not been met as of such date (the “Application Date”), first, prepay Swingline Loans, second, prepay Revolving Loans and third Cash Collateralize L/C Exposure, in each case on such date (in such order of priority until all such Net Cash Proceeds have been applied) and (y) if the Net Cash Proceeds Trigger has been met as of the Application Date, make an offer to reduce (the “Net Proceeds Offer”) to all Lenders, on a date not less than 30 nor more than 60 days following the applicable Net Proceeds Offer Trigger Date, the Commitments of all Lenders on a pro rata basis, pursuant to procedures reasonably satisfactory to the Administrative Agent, in an amount equal to the Net Proceeds Offer Amount at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, commitment fees and letter of credit fees with respect thereto; provided, however, that if at any time any non-cash consideration received by the Borrower or any Restricted Subsidiary of the Borrower, as the case may be, in connection with any Asset Sale is converted into or sold or otherwise disposed of for cash (other than interest received with respect to any such non cash consideration), then such conversion or disposition shall be deemed to constitute an Asset Sale hereunder and the Net Cash Proceeds thereof shall be applied in accordance with this Section 7.5.

 

The Borrower may defer the Net Proceeds Offer until there is an aggregate unutilized Net Proceeds Offer Amount equal to or in excess of $10,000,000 resulting from one or more Asset Sales (at which time, the entire unutilized Net Proceeds Offer Amount, and not just the amount in excess of $10,000,000, shall be applied as required pursuant to this paragraph).

 

In the event of the transfer of substantially all (but not all) of the property and assets of the Borrower and its Restricted Subsidiaries as an entirety to a Person in a transaction permitted under Section 7.4, which transaction does not constitute a Change of Control, the successor corporation shall be deemed to have sold the properties and assets of the Borrower and its Restricted Subsidiaries not so transferred for purposes of this Section 7.5, and shall comply with the provisions of this Section 7.5 with respect to such deemed sale as if it were an Asset Sale.  In addition, the fair market value of such properties and assets of the Borrower or its Restricted Subsidiaries deemed to be sold shall be deemed to be Net Cash Proceeds for purposes of this Section 7.5.

 

7.6.         Restricted Payments.  Directly or indirectly:

 

(1)           declare or pay any dividend or make any distribution (other than dividends or distributions payable in Qualified Capital Stock of the Borrower) on or in respect of shares of the Borrower’s Capital Stock to holders of such Capital Stock;

 

(2)           purchase, redeem or otherwise acquire or retire for value any Capital Stock of the Borrower;

 

(3)           make any principal payment on, purchase, defease, redeem, prepay, decrease or otherwise acquire or retire for value, prior to any scheduled final maturity, scheduled repayment

 

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or scheduled sinking fund payment, any Junior Debt or the OnCure Notes (or any Refinancing of the OnCure Notes), except any payment, purchase, redemption, defeasance or other acquisition or retirement for value of (i) any such Indebtedness in anticipation of satisfying a sinking fund obligation, principal installment or final maturity, in each case due within one year of the date of payment, purchase, redemption, defeasance, acquisition or retirement, (ii) any payment of intercompany Indebtedness to the Borrower or any of its Restricted Subsidiaries, (iii) prepayments, redemptions or retirements of the OnCure Notes pursuant to Section 7.5(3)(c) or 7.5(3)(d) and (iv) payments, purchases, redemptions, defeasances, acquisitions or retirements of the OnCure Notes with the net cash proceeds of an IPO; or

 

(4)           make any Investment (other than Permitted Investments) (each of the foregoing actions set forth in clauses (1), (2), (3) and (4) being referred to as a “Restricted Payment”);

 

if at the time of such Restricted Payment or immediately after giving effect thereto,

 

(i)             a Default or an Event of Default shall have occurred and be continuing; or

 

(ii)            the Borrower is not able to incur at least $1.00 of additional Indebtedness pursuant to the first paragraph of Section 7.2; or

 

(iii)            the aggregate amount of Restricted Payments (including such proposed Restricted Payment) made subsequent to April 20, 2010 (the amount expended for such purposes, if other than in cash, being the fair market value of such property as determined in good faith by the Board of Directors of the Borrower) shall exceed the sum of:

 

(w)          50% of the cumulative Consolidated Net Income (or if cumulative Consolidated Net Income shall be a loss, minus 100% of such loss) of the Borrower for the period beginning April 1, 2010 and to the end of the Borrower’s most recently ended fiscal quarter for which internal financial statements are available at the time the Restricted Payment occurs (treating such period as a single accounting period); plus

 

(x)           100% of the aggregate Qualified Proceeds received by the Borrower from any Person (other than a Subsidiary of the Borrower) from the issuance and sale subsequent to April 20, 2010 and on or prior to the date the Restricted Payment occurs (the “Reference Date”) of Qualified Capital Stock of the Borrower or warrants, options or other rights to acquire Qualified Capital Stock of the Borrower (but excluding any debt security that is convertible into, or exchangeable for, Qualified Capital Stock); plus

 

(y)           without duplication of any amounts included in clause (iii)(x) above, 100% of the aggregate Qualified Proceeds of any equity contribution received by the Borrower from a holder of the Borrower’s Capital Stock subsequent to the April 20, 2010 and on or prior to the Reference Date; plus

 

(z)           without duplication, the sum of:

 

(1)           the aggregate amount returned in cash and fair market value of property used or useful in a Similar Business on or with respect to Investments (other than Permitted Investments) made subsequent to April 20, 2010 whether through interest payments, principal payments, dividends or other distributions or payments;

 

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(2)           the net cash proceeds and fair market value of property used or useful in a Similar Business received by the Borrower or any of its Restricted Subsidiaries from the disposition of all or any portion of such Investments (other than to a Subsidiary of the Borrower); and

 

(3)           upon redesignation of an Unrestricted Subsidiary as a Restricted Subsidiary, the fair market value of such Subsidiary.

 

Notwithstanding the foregoing, the provisions set forth in the immediately preceding paragraph do not prohibit:

 

(1)           the payment of any dividend within 60 days after the date of declaration of such dividend if the dividend would have been permitted on the date of declaration or the redemption, repurchase or retirement of any Junior Debt or any of the OnCure Notes (or any Refinancing of the OnCure Notes), if at the date of any irrevocable redemption notice such payment would have complied with this Section 7.6;

 

(2)           any Restricted Payment, either (i) in exchange for shares of Qualified Capital Stock of the Borrower or (ii) through the application of net proceeds of a substantially concurrent sale for cash (other than to a Subsidiary of the Borrower) of shares of Qualified Capital Stock of the Borrower (provided such net proceeds are excluded from the calculation set forth under clause (iii) above);

 

(3)           the acquisition or prepayment of any Junior Debt or any of the OnCure Notes (or any Refinancing of the OnCure Notes) either (i) in exchange for (a) shares of Qualified Capital Stock of the Borrower or (b) Refinancing Indebtedness, or (ii) through the application of net proceeds of a substantially concurrent sale for cash (other than to a Subsidiary of the Borrower) (provided such net proceeds are excluded from the calculation set forth under clause (iii) above) of (a) shares of Qualified Capital Stock of the Borrower or (b) Refinancing Indebtedness;

 

(4)           repurchases by the Borrower of Capital Stock of the Borrower or any direct or indirect parent entity of the Borrower from current or former officers, directors, consultants, agents and employees of the Borrower or any of its Subsidiaries or their authorized representatives (including the heirs and estates of such Persons) pursuant to any management equity subscription agreement, stock option plan or agreement, shareholders agreement, or similar agreement, plan or arrangement, including amendments thereto, in an aggregate amount not to exceed $3,000,000 in any calendar year (with unused amounts in any calendar year being carried over to the next succeeding calendar year subject to a maximum of $6,000,000 in any calendar year); provided that such amount in any fiscal year may be increased in an amount not to exceed (a) the net cash proceeds from the sale of Qualified Capital Stock of the Borrower and, to the extent contributed to the Borrower, Capital Stock of any direct or indirect parent entity of the Borrower, in each case to any officer, director, consultant, agent or employee of the Borrower or any Restricted Subsidiary of the Borrower that occurs after the Closing Date (provided such net proceeds, to the extent used to make a Restricted Payment pursuant to this clause (4), are excluded from the calculation set forth under clause (iii) above), plus (b) the net cash proceeds of key man life insurance policies received by the Borrower or its Restricted Subsidiaries subsequent to the Closing Date;

 

(5)           the declaration and payment of dividends by the Borrower to, or the making of loans to Parent, any direct or indirect parent in amounts required for Parent or any direct or indirect parent companies to pay, in each case without duplication,

 

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(a)           franchise taxes and other fees, taxes and expenses required to maintain their corporate existence;

 

(b)           foreign, federal, state and local income taxes, to the extent such income taxes are attributable to the income of the Borrower and its Restricted Subsidiaries and, to the extent of the amount actually received from its Unrestricted Subsidiaries, in amounts required to pay such taxes to the extent attributable to the income of such Unrestricted Subsidiaries; provided that in each case the amount of such payments in any fiscal year does not exceed the amount that the Borrower and its Restricted Subsidiaries would be required to pay in respect of federal, state and local taxes for such fiscal year were the Borrower, its Restricted Subsidiaries and its Unrestricted Subsidiaries (to the extent described above) were to pay such taxes separately from any such parent entity;

 

(c)           customary salary, bonus, severance and other benefits payable to officers and employees of any direct or indirect parent company of the Borrower to the extent such salaries, bonuses, severance and other benefits are attributable to the ownership or operation of the Borrower and its Restricted Subsidiaries;

 

(d)           customary corporate indemnities owing to directors and officers of Parent or any direct or indirect parent company of Parent;

 

(e)           general corporate operating and overhead costs and expenses of any direct or indirect parent company of the Borrower to the extent such costs and expenses are attributable to the ownership or operation of the Borrower and its Restricted Subsidiaries;

 

(f)            fees and expenses related to any unsuccessful equity or debt offering or other financing transaction of such parent entity; and

 

(g)           obligations under the Management Agreement;

 

(6)           the declaration and payment of dividends on the Borrower’s common stock (or the payment of dividends to any direct or indirect parent entity to fund a payment of dividends on such entity’s common stock), following the first public offering of the Borrower’s common stock or the common stock of any of its direct or indirect parent companies after the Closing Date, of up to 6% per annum of the net cash proceeds received by or contributed to the Borrower in or from any such public offering, other than public offerings with respect to the Borrower’s common stock registered on Form S-8;

 

(7)           cash payments in lieu of fractional shares issuable as dividends on preferred stock or upon the exercise or conversion of any warrants, options or other securities of Parent, any direct or indirect parent company of Parent, the Borrower or any of its Restricted Subsidiaries;

 

(8)           the declaration and payment of dividends to holders of any class or series of Disqualified Capital Stock of the Borrower or any of its Restricted Subsidiaries and the repurchase or redemption of Disqualified Capital Stock upon any scheduled redemption date; provided that such Disqualified Capital Stock was issued in accordance with Section 7.2;

 

(9)           the purchase, repurchase, redemption, defeasance or other acquisition or retirement for value of any Junior Debt or any of the OnCure Notes (or any Refinancing of the

 

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OnCure Notes) (a) at a purchase price not greater than 101% of the principal amount of such Junior Debt or any of the OnCure Notes (or any Refinancing of the OnCure Notes) in the event of a change of control as defined under such Junior Debt in accordance with provisions similar to the corresponding provisions of the Second Lien Indenture (as in effect on the Closing Date) or the OnCure Notes Indenture, as applicable, relating to a change of control; provided that, prior to such purchase, repurchase, redemption, defeasance or acquisition or retirement, Borrower shall have complied with Section 2.26 or (b) at a purchase price not greater than 100% of the principal amount of such Junior Debt in the case of an “asset sale” as defined under such Junior Debt in accordance with provisions similar to the corresponding provisions of the Second Lien Indenture (as in effect on the Closing Date) relating to asset sales, so long as prior to such purchase, repurchase, redemption, defeasance or acquisition or retirement (i) if the Net Cash Proceeds Trigger has been met as of the Application Date, the Borrower has completed the Net Proceeds Offer as provided in Section 7.5 with respect thereto (and made all prepayments and Cash Collateralizations required by Section 2.11 as a result of such compliance) and (ii) if the Net Cash Proceeds Trigger has not been met as of such date, Borrower has complied with all of the prepayment and Cash Collateralization requirements of clause (x) of the third to last paragraph of Section 7.5 with respect thereto;

 

(10)         distributions of Capital Stock or Indebtedness of Unrestricted Subsidiaries (except to the extent of any Permitted Investment under clauses (10), (12) and (19) of the definition thereof in such Unrestricted Subsidiary);

 

(11)         repurchases of Capital Stock of Parent, any of its direct or indirect parent companies, the Borrower or any Restricted Subsidiaries deemed to occur upon exercise of stock options or warrants or other securities convertible or exchangeable into Capital Stock of Parent, any of its direct or indirect parent companies, the Borrower or any Restricted Subsidiaries if such Capital Stock represents all or a portion of the exercise price of such options or warrants; and

 

(12)         so long as no Default or Event of Default shall have occurred and be continuing, other Restricted Payments in an aggregate amount taken together with all other Restricted Payments made pursuant to this clause (12) not to exceed $15,000,000.

 

In determining the aggregate amount of Restricted Payments made for purposes of clause (iii) of the immediately preceding paragraph: (x) at any time subsequent to April 20, 2010 but prior to the Closing Date, only amounts expended pursuant to Section 4.10(a) and clauses (1), (6), (9) and (12) of Section 4.10(b) of the Senior Subordinated Notes Indenture shall be included in such calculation and (y) on or following the Closing Date, only amounts expended pursuant to such immediately preceding paragraph and clauses (1), (6), (9) and (12) above shall be included in such calculation.

 

Notwithstanding the foregoing, no Restricted Payment shall be permitted pursuant to the first paragraph of this Section 7.6 or pursuant to clause (12) above if, on a pro forma basis after giving effect thereto, the Total Extensions of Credit would exceed 75% of the Commitments.

 

7.7.         Payment Restrictions Affecting Restricted Subsidiaries.  The Borrower will not, and will not cause or permit any of its Restricted Subsidiaries to, directly or indirectly, create or otherwise cause or permit to exist or become effective any consensual encumbrance or restriction on the ability of any Restricted Subsidiary of the Borrower to:

 

(1)           pay dividends or make any other distributions on or in respect of its Capital Stock;

 

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(2)           make loans or advances to the Borrower or any other Restricted Subsidiary or to pay any Indebtedness owed to the Borrower or any other Restricted Subsidiary of the Borrower; or

 

(3)           transfer any of its property or assets to the Borrower or any other Restricted Subsidiary of the Borrower, except in each case for such encumbrances or restrictions existing under or by reason of:

 

(a)           applicable law, rule, regulation or order;

 

(b)           the Second Lien Notes Documentation;

 

(c)           customary non assignment provisions of any contract or license or any lease governing a leasehold interest of any Restricted Subsidiary of the Borrower;

 

(d)           any instrument governing Acquired Indebtedness or Capital Stock, which encumbrance or restriction is not applicable to any Person, or the properties or assets of any Person, other than the Person or the properties or assets of the Person so acquired;

 

(e)           agreements existing on the Closing Date to the extent and in the manner such agreements are in effect on the Closing Date;

 

(f)            this Agreement and other Loan Documents;

 

(g)           the Senior Subordinated Notes, the Senior Subordinated Notes Indenture and related guarantees;

 

(h)           restrictions on the transfer of assets subject to any Lien permitted under Section 7.3 imposed by the holder of such Lien;

 

(i)            customary provisions in joint venture agreements and other similar agreements (in each case relating solely to the respective joint venture or similar entity or the equity interests therein) entered into in the ordinary course of business;

 

(j)            Purchase Money Indebtedness or Capitalized Lease Obligations that, in each case, impose restrictions of the nature discussed in clause (3) above in the first paragraph of this Section 7.7 on the property so acquired;

 

(k)           contracts for the sale of assets, including without limitation, customary restrictions with respect to a Subsidiary pursuant to an agreement that has been entered into for the sale or disposition of all or substantially all of the Capital Stock or assets of such Subsidiary;

 

(l)            restrictions on cash or other deposits or net worth imposed by customers under contracts entered into in the ordinary course of business;

 

(m)          customary provisions in joint venture agreements and other similar agreements entered into in the ordinary course of business;

 

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(n)           Indebtedness or Capital Stock of any Restricted Subsidiary (i) that is a Guarantor that is incurred subsequent to the Closing Date or (ii) that is incurred by a Foreign Subsidiary of the Borrower subsequent to the Closing Date;

 

(o)           an agreement governing Indebtedness incurred to Refinance the Indebtedness issued, assumed or incurred pursuant to an agreement referred to in clauses (b), (d), (e), (g) and (h) above; provided, however, that the provisions relating to such encumbrance or restriction contained in any such Indebtedness are no less favorable to the Borrower in any material respect as determined by the Board of Directors of the Borrower in their reasonable and good faith judgment than the provisions relating to such encumbrance or restriction contained in agreements referred to in such clauses (b), (d), (e), (g) and (h); and

 

(p)           any encumbrance or restriction arising pursuant to an agreement or instrument relating to any Indebtedness permitted to be incurred subsequent to the Closing Date pursuant to Section 7.2 if the encumbrances and restrictions contained in any such agreement or instrument taken as a whole are not materially less favorable to the Lenders than (i) the encumbrances and restrictions contained in this Agreement, together with the Security Documents as in effect on the Closing Date or (ii) in comparable financings (as determined in good faith by the Borrower) and where, in the case of clause (ii), either (a) the Borrower determines at the time of incurrence or issuance of such Indebtedness that such encumbrances or restrictions will not adversely affect, in any material respect, the Borrower’s ability to make principal or interest payments on the notes or (b) such encumbrance or restriction applies only during the continuance of a default relating to such Indebtedness.

 

7.8.         [Reserved].

 

7.9.         Transactions with Affiliates.

 

(a)           The Borrower will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, enter into or permit to exist any transaction or series of related transactions (including, without limitation, the purchase, sale, lease or exchange of any property or the rendering of any service) with, or for the benefit of, any of its Affiliates (each, an “Affiliate Transaction”) involving aggregate consideration in excess of $2,500,000, other than (x) Affiliate Transactions permitted under paragraph (b) below and (y) Affiliate Transactions on terms that are no less favorable than those that might reasonably have been obtained in a comparable transaction at such time on an arm’s length basis from a Person that is not an Affiliate of the Borrower or such Restricted Subsidiary.

 

All Affiliate Transactions (and each series of related Affiliate Transactions) involving aggregate payments or other property with a fair market value in excess of $10,000,000 shall be approved by the Board of Directors of the Borrower or such Restricted Subsidiary, as the case may be, such approval to be evidenced by a Board Resolution stating that such Board of Directors has determined that such transaction complies with the foregoing provisions.  If the Borrower or any Restricted Subsidiary of the Borrower enters into an Affiliate Transaction (or a series of related Affiliate Transactions) that involves an aggregate fair market value of more than $20,000,000, the Borrower or such Restricted Subsidiary, as the case may be, shall obtain an opinion as to the fairness of such transaction or series of related transactions to the Borrower or the relevant Restricted Subsidiary, as the case may be, from a financial point of view, from an Independent Financial Advisor and file the same with the Administrative Agent.

 

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(b)           The following shall not be deemed Affiliate Transactions and, therefore, the restrictions set forth in this Section 7.9 shall not apply to:

 

(1)           reasonable fees and compensation paid to and indemnity provided on behalf of, officers, directors, employees or consultants or to professional corporations of which they are the owner of the Borrower or any Restricted Subsidiary of the Borrower as determined in good faith by the Borrower’s Board of Directors or senior management;

 

(2)           transactions between or among the Borrower and any of its Restricted Subsidiaries or between or among such Restricted Subsidiaries, provided that such transactions are not otherwise prohibited by this Agreement;

 

(3)           the payment of management, consulting, monitoring and advisory fees and related expenses to the Permitted Holders and the termination fees pursuant to the Management Agreement as in effect on April 20, 2010 or any amendment thereto (so long as such amendment is not less favorable to the Lenders in any material respect than the Management Agreement on April 20, 2010);

 

(4)           any agreement as in effect as of the Closing Date or any amendment thereto or any transaction contemplated thereby (including pursuant to any amendment thereto) in any replacement agreement thereto so long as any such amendment or replacement agreement is not more disadvantageous to the Lenders in any material respect than the original agreement as in effect on the Closing Date;

 

(5)           Restricted Payments and Permitted Investments permitted by this Agreement;

 

(6)           transactions with a Person that is an Affiliate of the Borrower solely because the Borrower owns, directly or indirectly, Capital Stock of, or controls, such Person; provided such Person does not control the Borrower;

 

(7)           the pledge of Capital Stock of Unrestricted Subsidiaries to support Indebtedness thereof;

 

(8)           issuances and sales of Capital Stock of the Borrower to Affiliates of the Borrower or the receipt of the proceeds of capital contributions in respect of Capital Stock;

 

(9)           payments made by the Borrower or any Restricted Subsidiary to the Permitted Holders for any financial advisory, financing, underwriting or placement services or in respect of other investment banking activities, including, without limitation, in connection with acquisitions or divestitures, which payments are approved by a majority of the disinterested members, if any, of the Board of Directors of the Borrower in good faith;

 

(10)         transactions with customers, clients, suppliers, or purchasers or sellers of goods or services, in each case in the ordinary course of business and otherwise in compliance with the terms of the Loan Documents that are fair to the Borrower and its Restricted Subsidiaries, in the reasonable determination of the Board of Directors of the Borrower, or are on terms at least as favorable as would reasonably have been entered into at such time with an unaffiliated party;

 

(11)         the existence of, or the performance by the Borrower or any of its Restricted Subsidiaries of its obligations under the terms of, the Shareholders Agreement (including any registration rights agreement or purchase agreements related thereto to which it was a party on the

 

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Closing Date and any similar agreement that it may enter into thereafter); provided, however, that the existence of, or the performance by the Borrower or any of its Restricted Subsidiaries of its obligations under, any future amendment to the Shareholders Agreement or under any similar agreement entered into after the Closing Date shall only be permitted by this clause (11) to the extent that the terms of any such existing agreement together with all amendments thereto, taken as a whole, or new agreement are not otherwise more disadvantageous to the Lenders in any material respect than the original agreement as in effect on the Closing Date;

 

(12)         Purchases or payments for professional liability and other insurance by the Borrower, its Restricted Subsidiaries, their respective employees or any Person that is an Affiliate of the Borrower to Batan Insurance in the ordinary course of business and at fair market value as determined by the Borrower in good faith; and

 

(13)         leasing of property or equipment from the Borrower’s employees or any person that is an Affiliate of the Borrower in the ordinary course of business and at fair market values as determined by the Borrower in good faith.

 

7.10.       [Reserved].

 

7.11.       [Reserved].

 

7.12.       Changes in Fiscal Periods.  Permit the fiscal year of the Borrower to end on a day other than December 31 or change the Borrower’s method of determining fiscal quarters; provided, however, that the Borrower may, upon written notice to the Administrative Agent, change its fiscal year to any other fiscal year reasonably acceptable to the Administrative Agent, provided further, however, that as a condition to any such change the Borrower and the Administrative Agent shall, and are hereby authorized by the Lenders to, make any adjustments to this Agreement that are necessary or appropriate to reflect such change in fiscal year.

 

7.13.       Lines of Business.  The Borrower and its Restricted Subsidiaries will not engage in any businesses which are not the same, similar, ancillary, complementary, reasonably related to, or a reasonable extension of the businesses in which the Borrower and its Restricted Subsidiaries are engaged on the Closing Date, except to such extent as would not be material to the Borrower and its Subsidiaries taken as a whole.

 

7.14.       Financial Condition Covenant.  Permit the Applicable Sum (x) to be less than $15,000,000 for more than three consecutive Business Days without notifying the Administrative Agent in writing of the same within two Business Days after such three consecutive Business Day period or (y) to be less than $15,000,000 as of the last Business Day of any month.

 

SECTION 8

 

EVENTS OF DEFAULT

 

If any of the following events shall occur and be continuing:

 

(a)           the Borrower shall fail to pay any principal of any Loan or Reimbursement Obligation when due in accordance with the terms hereof; or the Borrower shall fail to pay within 5 Business Days after the same becomes due, any interest on any Loan or Reimbursement Obligation or any fee payable pursuant to Section 2.8, or, within 20 days after the same becomes due, any other amount payable hereunder or under any other Loan Document; or

 

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(b)           any representation or warranty made or deemed made by any Loan Party herein or in any other Loan Document or that is contained in any certificate or financial statement (other than materials delivered pursuant to Section 6.2(c)) furnished by it at any time under or in connection with this Agreement or any such other Loan Document shall prove to have been inaccurate in any materially respect to the extent such covenant or other agreement is not already subject to a “materiality” or “Material Adverse Effect” qualifier on or as of the date made or deemed made; or

 

(c)           any Loan Party shall default in the observance or performance of any agreement contained in Section 6.4(a) or (b) (with respect to Parent and the Borrower only), Section 6.7(a) or Section 7 of this Agreement; or

 

(d)           any Loan Party shall default in the observance or performance of any other agreement contained in this Agreement or any other Loan Document (other than as provided in paragraphs (a) through (c) of this Section), and such default shall continue unremedied for a period of 30 days after the earlier of knowledge thereof by a Responsible Officer of a Loan Party or notice to the Borrower from the Administrative Agent or the Required Lenders; or

 

(e)           any Covenant Party shall (i) default in making any payment of any principal of any Indebtedness (including any Guarantee Obligation, but excluding the Obligations) on any scheduled or original due date with respect thereto after giving effect to applicable cure periods and consents and waivers obtained during such cure periods; or (ii) default in making any payment of any interest on any such Indebtedness (excluding the Obligations), beyond the period of grace, if any, provided in the instrument or agreement under which such Indebtedness was created and such default has not been cured or waived; or (iii) default in the observance or performance of any other agreement or condition relating to any such Indebtedness or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event shall occur or condition exist, the effect of which default or other event or condition after giving effect to applicable cure periods and consents and waivers obtained during such cure periods is to cause, or to permit the holder or beneficiary of such Indebtedness (or a trustee or agent on behalf of such holder or beneficiary) to cause, with the giving of notice if required, such Indebtedness to become due prior to its stated maturity or (in the case of any such Indebtedness constituting a Guarantee Obligation) to become payable and such default has not been waived; provided that a default, event or condition described in clause (i), (ii) or (iii) of this paragraph (e) shall not at any time constitute an Event of Default unless, at such time, one or more defaults, events or conditions of the type described in clauses (i), (ii) and (iii) of this paragraph (e) shall have occurred and be continuing with respect to Indebtedness the outstanding principal amount of which exceeds in the aggregate $15,000,000; or

 

(f)            (i) any Covenant Party (other than any Immaterial Subsidiary) shall commence any case, proceeding or other action (A) under any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts, or (B) seeking appointment of a receiver, trustee, custodian, conservator or other similar official for it or for all or any substantial part of its assets, or any Covenant Party (other than any Immaterial Subsidiary) shall make a general assignment for the benefit of its creditors; or (ii) there shall be commenced against any Covenant Party (other than any Immaterial Subsidiary) any case, proceeding or other action of a nature referred to in clause (i) above that (A) results in the entry of an order for relief or any such adjudication or appointment or (B) remains undismissed or undischarged for a period

 

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of 60 days; or (iii) there shall be commenced against any Covenant Party (other than any Immaterial Subsidiary) any case, proceeding or other action seeking issuance of a warrant of attachment, execution, distraint or similar process against all or any substantial part of its assets that results in the entry of an order for any such relief that shall not have been vacated, discharged, or stayed or bonded pending appeal within 60 days from the entry thereof; or (iv) any Covenant Party (other than any Immaterial Subsidiary) shall take any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in clause (i), (ii), or (iii) above; or (v) any Covenant Party (other than any Immaterial Subsidiary) shall admit in writing its inability to pay its debts as they become due; or

 

(g)           one or more judgments, awards or decrees shall be entered against the Borrower or any of its Restricted Subsidiaries (other than Immaterial Subsidiaries) involving for the Borrower and its Restricted Subsidiaries (other than Immaterial Subsidiaries) taken as a whole a liability (to the extent not paid or fully covered by insurance and as to which the relevant insurance company has not denied coverage) of $15,000,000 or more, and all such judgments, awards or decrees shall not have been vacated, discharged, stayed or bonded pending appeal within 30 days from the entry thereof, or

 

(h)           the security interest or lien created under any of the Security Documents shall cease, for any reason (other than by reason of (x) the express release thereof pursuant to Section 10.14, (y) the failure of the Administrative Agent or the Collateral Agent to retain possession of Collateral physically delivered to it or (z) the failure of the Administrative Agent or the Collateral Agent to timely file UCC continuation statements), to be in full force and effect, or any Loan Party or any Affiliate of any Loan Party shall so assert in writing, or any Lien created by any of the Security Documents shall cease to be enforceable and of the same effect and priority purported to be created thereby or any Loan Party or any Affiliate of any Loan Party shall so assert in writing; or

 

(i)            the guarantee contained in Section 2 of the Guaranty and Collateral Agreement shall cease, for any reason (other than in accordance with the terms thereof), to be in full force and effect or any Loan Party or any Affiliate of any Loan Party shall so assert;

 

then, and in any such event, (A) if such event is an Event of Default specified in clause (i) or (ii) of paragraph (f) above with respect to the Borrower, automatically the Commitments shall immediately terminate and the Loans (with accrued interest thereon) and all other amounts owing under this Agreement and the other Loan Documents (including all amounts of Reimbursement Obligations, whether or not the beneficiaries of the then outstanding Letters of Credit shall have presented the documents required thereunder) shall immediately become due and payable, and (B) if such event is any other Event of Default, either or both of the following actions may be taken:  (i) with the consent of the Required Lenders, the Administrative Agent may, or upon the request of the Required Lenders, shall, by notice to the Borrower declare the Commitments to be terminated forthwith, whereupon the Commitments shall immediately terminate; and (ii) with the consent of the Required Lenders, the Administrative Agent may, or upon the request of the Required Lenders, the Administrative Agent shall, by notice to the Borrower, declare the Loans (with accrued interest thereon) and all other amounts owing under this Agreement and the other Loan Documents (including all amounts of Reimbursement Obligations, whether or not the beneficiaries of the then outstanding Letters of Credit shall have presented the documents required thereunder) to be due and payable forthwith, whereupon the same shall immediately become due and payable.  With respect to all Letters of Credit with respect to which presentment for honor shall not have occurred at the time of any action taken pursuant to the previous sentence, the Borrower shall at such time deposit in a cash collateral account opened by the Administrative Agent an amount equal to the aggregate then undrawn and unexpired amount of such

 

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Letters of Credit.  Amounts held in such cash collateral account shall be applied by the Administrative Agent to the payment of Reimbursement Obligations in respect of drafts drawn under such Letters of Credit, and the unused portion thereof after all such Letters of Credit shall have expired or been fully drawn upon, if any, shall be applied to repay other Obligations.  After all such Letters of Credit shall have expired or been fully drawn upon, all Reimbursement Obligations shall have been satisfied and all other Obligations shall have been paid in full, the balance, if any, in such cash collateral account shall be returned to the Borrower (or such other Person as may be lawfully entitled thereto).  Except as expressly provided above in this Section, presentment, demand, protest and all other notices of any kind are hereby expressly waived by the Borrower.

 

SECTION 9

 

THE AGENTS

 

9.1.         Appointment.  Each Lender hereby irrevocably designates and appoints the Administrative Agent and Collateral Agent as the agents of such Lender under this Agreement and the other Loan Documents, and each such Lender irrevocably authorizes each of the Administrative Agent and Collateral Agent, in such capacities, to take such action on its behalf under the provisions of this Agreement and the other Loan Documents and to exercise such powers and perform such duties as are expressly delegated to the Administrative Agent or the Collateral Agent, as the case may be, by the terms of this Agreement and the other Loan Documents, together with such other powers as are reasonably incidental thereto.  Notwithstanding any provision to the contrary elsewhere in this Agreement or any other Loan Document, the Administrative Agent and the Collateral Agent shall not have any duties or responsibilities, except those expressly set forth herein, or any fiduciary relationship with any Lender, 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 the Administrative Agent or the Collateral Agent.

 

9.2.         Delegation of Duties.  The Administrative Agent and the Collateral Agent may execute any of their respective duties under this Agreement and the other Loan Documents by or through agents or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties.  Each of the Administrative Agent and the Collateral Agent shall not be responsible for the negligence or misconduct of any agents or attorneys in-fact selected by it with reasonable care.

 

9.3.         Exculpatory Provisions.  Neither any Agent nor any of their respective officers, directors, employees, agents, attorneys-in-fact or affiliates shall be (i) liable for any action lawfully taken or omitted to be taken by it or such Person under or in connection with this Agreement or any other Loan Document (except to the extent that any of the foregoing are found by a final and nonappealable decision of a court of competent jurisdiction to have resulted from its or such Person’s own gross negligence or willful misconduct) or (ii) responsible in any manner to any of the Lenders for any recitals, statements, representations or warranties made by any Loan Party or any officer thereof contained in this Agreement or any other Loan Document or in any certificate, report, statement or other document referred to or provided for in, or received by the Agents under or in connection with, this Agreement or any other Loan Document or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document or for any failure of any Loan Party a party thereto to perform its obligations hereunder or thereunder.  The Agents shall not be under any obligation to any Lender 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 any Loan Party.

 

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9.4.                            Reliance by Administrative Agent and Collateral Agent.  The Administrative Agent and the Collateral Agent shall each be entitled to rely, and shall be fully protected in relying, upon any instrument, writing, resolution, notice, consent, certificate, affidavit, letter, telecopy, telex or teletype message, statement, order 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 Parent or the Borrower), independent accountants and other experts selected by the Administrative Agent or the Collateral Agent, as the case may be.  The Administrative Agent may deem and treat the payee of any Note as the owner thereof for all purposes unless a written notice of assignment, negotiation or transfer thereof shall have been filed with the Administrative Agent.  The Administrative Agent and the Collateral Agent shall each be fully justified in failing or refusing to take any action under this Agreement or any other Loan Document unless it shall first receive such advice or concurrence of the Required Lenders (or, if so specified by this Agreement, all Lenders) as it deems appropriate or it shall first be indemnified to its satisfaction by the Lenders against any and all liability and expense that may be incurred by it by reason of taking or continuing to take any such action.  Each of the Administrative Agent and the Collateral Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement and the other Loan Documents in accordance with a request of the Required Lenders (or, if so specified by this Agreement, all Lenders), and such request and any action taken or failure to act pursuant thereto shall be binding upon all the Lenders and all future holders of the Loans.

 

9.5.                            Notice of Default.  Neither the Administrative Agent nor the Collateral Agent shall be deemed to have knowledge or notice of the occurrence of any Default or Event of Default unless the Administrative Agent has received notice from a Lender, Parent or the Borrower referring to this Agreement, describing such Default or Event of Default and stating that such notice is a “notice of default.”  In the event that the Administrative Agent receives such a notice, the Administrative Agent shall give notice thereof to the Lenders and the Collateral Agent.  The Administrative Agent and the Collateral Agent shall each take such action with respect to such Default or Event of Default as shall be reasonably directed by the Required Lenders (or, if so specified by this Agreement, all Lenders); provided that unless and until the Administrative Agent or the Collateral Agent, as the case may be, shall have received such directions, the Administrative Agent and the Collateral Agent each may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable in the best interests of the Lenders.

 

9.6.                            Non-Reliance on Agents and Other Lenders.

 

(a)                                 Each Lender expressly acknowledges that neither the Agents nor any of their respective officers, directors, employees, agents, attorneys-in-fact or affiliates have made any representations or warranties to it and that no act by any Agent hereafter taken, including any review of the affairs of a Loan Party or any affiliate of a Loan Party, shall be deemed to constitute any representation or warranty by any Agent to any Lender.  Each Lender represents to the Agents that it has, independently and without reliance upon any Agent or any other Lender, and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, operations, property, financial and other condition and creditworthiness of the Loan Parties and their affiliates and made its own decision to extend credit hereunder and enter into this Agreement.  Each Lender also represents that it will, independently and without reliance upon any Agent or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make such investigation as it deems necessary to inform itself as to the business, operations, property, financial and other condition and creditworthiness of the Loan Parties and their affiliates.  Except for notices, reports and other documents expressly required to be furnished to the Lenders by the Administrative Agent and the Collateral Agent hereunder or under any

 

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other Loan Document, the Administrative Agent and the Collateral Agent, as the case may be, shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, operations, property, condition (financial or otherwise), prospects or creditworthiness of any Loan Party or any affiliate of a Loan Party that may come into the possession of the Administrative Agent, the Collateral Agent or any of their respective officers, directors, employees, agents, attorneys-in-fact or affiliates.  Neither the Syndication Agent, the Documentation Agent, the Joint Lead Arrangers nor the Joint Bookrunners shall have nor shall be deemed to have any fiduciary relationship with any Lender.

 

(b)                                 For purposes of determining compliance with the conditions specified in Section 5.2 of this Agreement or Section 5 of the Amendment Agreement, each Lender 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 proposed Borrowing Date specifying its objection thereto.

 

9.7.                            Indemnification.  The Lenders agree to indemnify each Agent in its capacity as such (to the extent not reimbursed by Parent or the Borrower and without limiting the obligation of Parent or the Borrower to do so), ratably according to their respective Aggregate Exposure Percentages in effect on the date on which indemnification is sought under this Section (or, if indemnification is sought after the date upon which the Commitments shall have terminated and the Loans shall have been paid in full, ratably in accordance with such Aggregate Exposure Percentages immediately prior to such date), from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever that may at any time (whether before or after the payment of the Loans) be imposed on, incurred by or asserted against such Agent in any way relating to or arising out of, the Commitments, this Agreement, any of the other Loan Documents or any documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby or any action taken or omitted by such Agent under or in connection with any of the foregoing; provided that no Lender shall be liable for the payment of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements that are found by a final and nonappealable decision of a court of competent jurisdiction to have resulted from such Agent’s gross negligence, bad faith or willful misconduct.  The agreements in this Section shall survive the payment of the Loans and all other amounts payable hereunder.

 

9.8.                            Agent in Its Individual Capacity.  Each Agent and its affiliates may make loans to, accept deposits from and generally engage in any kind of business with any Loan Party as though such Agent were not an Agent.  With respect to its Loans made or renewed by it and with respect to any Letter of Credit issued or participated in by it, each Agent shall have the same rights and powers under this Agreement and the other Loan Documents as any Lender and may exercise the same as though it were not an Agent, and the terms “Lender” and “Lenders” shall include each Agent in its individual capacity.

 

9.9.                            Successor Administrative Agent or Collateral Agent.  The Administrative Agent or Collateral Agent may resign as Administrative Agent or Collateral Agent, as the case may be, upon 30 days’ notice to the Lenders and the Borrower.  If the Administrative Agent or the Collateral Agent shall resign as Administrative Agent or Collateral Agent, as the case may be, under this Agreement and the other Loan Documents, then the Required Lenders shall appoint from among the Lenders a successor agent for the Lenders, which successor agent shall (unless an Event of Default under Section 8(a) or Section 8(f) with respect to the Borrower shall have occurred and be continuing) be subject to approval by the Borrower (which approval shall not be unreasonably withheld or delayed), whereupon such successor agent shall succeed to the rights, powers and duties of the Administrative Agent or Collateral Agent, as the case may be, and the term “Administrative Agent” or “Collateral Agent”, as the case may be, shall mean such successor agent effective upon such appointment and approval, and the former Administrative

 

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Agent’s or Collateral Agent’s, as the case may be, rights, powers and duties as Administrative Agent or Collateral Agent, as the case may be, shall be terminated, without any other or further act or deed on the part of such former Administrative Agent or Collateral Agent, as the case may be, or any of the parties to this Agreement or any holders of the Loans.  If no successor agent has accepted appointment as Administrative Agent or Collateral Agent by the date that is 30 days following a retiring Administrative Agent’s or Collateral Agent’s, as the case may be, notice of resignation, the retiring Administrative Agent’s or Collateral Agent’s resignation shall nevertheless thereupon become effective, and the Lenders shall assume and perform all of the duties of the Administrative Agent or Collateral Agent, as the case may be, hereunder until such time, if any, as the Required Lenders and the Borrower, as applicable, appoint a successor agent as provided for above.  After any retiring Administrative Agent’s or Collateral Agent’s resignation as Administrative Agent or Collateral Agent, as the case may be, the provisions of this Section 9 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Administrative Agent or Collateral Agent, as the case may be, under this Agreement and the other Loan Documents.  Notwithstanding the foregoing, the retiring Collateral Agent shall continue to hold the Collateral created by the Loan Documents for the benefit of the Lenders until the successor Collateral Agent has been effectively appointed pursuant to this paragraph.  Notwithstanding anything to the contrary contained herein, if at any time Wells Fargo, resigns as Administrative Agent, Wells Fargo, may, upon 90 days’ notice to the Borrower resign as the Issuing Bank.  If Wells Fargo resigns as the Issuing Bank, it shall retain all the rights and obligations of the Issuing Bank hereunder with respect to all Letters of Credit outstanding as of the effective date of its resignation as the Issuing Bank and all Reimbursement Obligations with respect thereto (including the right to require the Lenders to fund risk participations in respect of any Letter of Credit pursuant to Section 3.4).

 

9.10.                     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.  If the Internal Revenue Service or any other authority of the United States or other jurisdiction asserts a claim that the Administrative Agent did not properly withhold tax from amounts paid to or for the account of any Lender for any reason (including, without limitation, because the appropriate 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), such Lender shall indemnify and hold harmless the Administrative Agent (to the extent that the Administrative Agent has not already been reimbursed by the Borrower pursuant to Section 2.18 and Section 2.19 and without limiting the obligation of the Borrower to do so) for all amounts paid, directly or indirectly, by the Administrative Agent as Taxes or otherwise, together with all expenses incurred, including legal expenses and any other out-of-pocket expenses, whether or not such tax was correctly or legally imposed or asserted by the relevant Governmental Authority.  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.

 

9.11.                     Joint Lead Arrangers, Joint Bookrunners, Syndication Agent and Documentation Agent.  Neither any of the Joint Lead Arrangers, Joint Bookrunners, the Syndication Agent nor the Documentation Agent shall have any duties or responsibilities hereunder in its capacity as such.

 

9.12.                     Intercreditor Agreement.  Each of the Administrative Agent and the Collateral Agent is authorized to (and in the case of the OnCure Assets Intercreditor Agreement, is instructed to and shall do so upon the consummation of the OnCure Acquisition) enter into the Intercreditor Agreement, the OnCure Assets Intercreditor Agreement and any other intercreditor agreement it deems reasonable in connection with any Indebtedness permitted hereunder (of junior lien priority or otherwise).

 

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SECTION 10

 

MISCELLANEOUS

 

10.1.                     Amendments and Waivers.  Neither this Agreement, any other Loan Document, nor any terms hereof or thereof may be amended, supplemented or modified except in accordance with the provisions of this Section 10.1, or, to the extent required to effectuate a Permitted Amendment, pursuant to Section 2.25.  The Required Lenders and each Loan Party party to the relevant Loan Document may, or, with the written consent of the Required Lenders, the Administrative Agent and each Loan Party party to the relevant Loan Document may, from time to time, (a) enter into written amendments, supplements or modifications hereto and to the other Loan Documents for the purpose of adding any provisions to this Agreement or the other Loan Documents or changing in any manner the rights of the Lenders or of the Loan Parties hereunder or thereunder or (b) waive, on such terms and conditions as the Required Lenders or the Administrative Agent, as the case may be, may specify in such instrument, any of the requirements of this Agreement or the other Loan Documents or any Default or Event of Default and its consequences; provided, however, that no such waiver and no such amendment, supplement or modification shall (i) forgive the principal amount or extend the final scheduled date of maturity of any Loan, reduce the stated rate of any interest or fee payable hereunder (except (x) in connection with the waiver of applicability of any post-default increase in interest rates (which waiver shall be effective with the consent of the Required Lenders) and (y) that any amendment or modification of defined terms used in the financial covenants in this Agreement shall not constitute a reduction in the rate of interest or fees for purposes of this clause (i)) or extend the scheduled date of any payment thereof, or increase the amount or extend the expiration date of any Lender’s Commitment, in each case without the written consent of each Lender (it being understood that waivers or modifications of conditions precedent, covenants or Defaults or Events of Default shall only require the consent of Required Lenders and that an increase in the available portion of any Commitment of any Lender otherwise in accordance with this Agreement shall not constitute an increase in the Commitment of any Lender) directly affected thereby in an adverse manner; (ii) eliminate or reduce the voting rights of any Lender under this Section 10.1 without the written consent of such Lender; (iii) reduce any percentage specified in the definition of Required Lenders, consent to the assignment or transfer by the Borrower of any of its rights and obligations under this Agreement and the other Loan Documents, release all or substantially all of the Collateral or release all or substantially all of the Loan Parties (or Loan Parties owning all or substantially all of the Collateral) from their obligations under the Guaranty and Collateral Agreement, in each case without the written consent of all Lenders; (iv) increase the Commitments and outstanding Term Loans under this Agreement in excess of $25 million plus the sum of the aggregate principal amount of Term Loans prepaid or repaid under this Agreement above the amount of Commitments and Term Loans outstanding on the Amendment and Restatement Effective Date without the written consent of Lenders holding at least a majority of the then outstanding principal amount of Term Loans made on the Amendment and Restatement Effective Date; (v) reduce the percentage specified in the definition of “Majority Facility Lenders” with respect to (a) the Revolving Loans and Commitments, without the written consent of the Majority Revolving Lenders and (b) the Term Facility, without the written consent of Lenders holding at least a majority of outstanding principal amount of Term Loans; (vi) amend, modify or waive any provision of Section 9 without the written consent of the Administrative Agent or, to the extent relating to the Collateral Agent, the Collateral Agent; (vii) amend, modify or waive any provision of Section 2.6 or 2.7 without the written consent of the Swingline Lender; (viii) amend, modify or waive any provision of Section 3 without the written consent of the Issuing Bank or (ix) amend, modify or waive (a) Section 7.14, (b) the definition of “Applicable Cash,” “Applicable Sum,” “Majority Revolving Lenders” or “Revolving Obligations”, (c) the provisions of Section 5.02 of the Guaranty and Collateral Agreement (with respect to the priority of Revolving Obligations), (d) any provision of a Loan Document that would result in an increase of the Revolving Obligations, (e) any provision of the Loan Document that results in shortening the final maturity of the Term Loans or providing for interim payments thereof

 

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prior to such final maturity and (f) any mandatory reductions of Commitments or mandatory prepayment required pursuant to Section 2.11 or any amendment of Section 2.11, in each case of this clause (ix), without the written consent of the Majority Revolving Lenders.  Any such waiver and any such amendment, supplement or modification shall apply equally to each of the Lenders and shall be binding upon the Loan Parties, the Lenders, the Administrative Agent, the Collateral Agent and all future holders of the Loans.  In the case of any waiver, the Loan Parties, the Lenders, the Administrative Agent and the Collateral Agent shall be restored to their former position and rights hereunder and under the other Loan Documents, and any Default or Event of Default waived shall be deemed to be cured and not continuing; but no such waiver shall extend to any subsequent or other Default or Event of Default, or impair any right consequent thereon.

 

Notwithstanding the foregoing, any amendment, modification, supplement or waiver of the conditions precedent set forth in Section 5.2 shall be permitted to be entered into by the Majority Revolving Lenders (or the Administrative Agent with the written consent of the Majority Revolving Lenders), Parent and Borrower without any further action or consent of any other party to any Loan Document (it being acknowledged and agreed that, with respect to Sections 5.2(a) and (b), this sentence shall apply solely to the conditions precedent and shall not apply to any other amendment, modification, supplement or waiver hereunder or under any other Loan Document notwithstanding that such other amendment, modification, supplement or waiver may otherwise cause or allow such conditions precedent to be satisfied).

 

Notwithstanding anything to the contrary contained in this Section 10.1, if the Administrative Agent and Parent shall have jointly identified an obvious error (including, but not limited to, an incorrect cross-reference) or any error or omission of a technical nature, in each case, in any provision of any Loan Document, then the Administrative Agent and/or the Collateral Agent (acting in their sole discretion) and the Borrower or any other relevant Loan Party shall be permitted to amend such provision or cure any ambiguity, defect or inconsistency and such amendment shall become effective without any further action or consent of any other party to any Loan Document.

 

10.2.                     Notices.  All notices, requests and demands to or upon the respective parties hereto to be effective shall be in writing (including by telecopy), and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered, or three Business Days after being deposited in the mail, postage prepaid, or, in the case of telecopy notice, when received, addressed as follows in the case of Parent, the Borrower and the Administrative Agent, and as set forth in an administrative questionnaire delivered to the Administrative Agent in the case of the Lenders, or to such other address as may be hereafter notified by the respective parties hereto:

 

	
Parent   and Borrower:
    	
 
    	
Radiation   Therapy Services Holdings, Inc.
    
	
 
    	
 
    	
c/o   Vestar Capital Partners V L.P.
    
	
 
    	
 
    	
245   Park Avenue,
    
	
 
    	
 
    	
41st   Floor
    
	
 
    	
 
    	
New   York, NY 10167
    
	
 
    	
 
    	
Attention:   James L. Elrod, Jr.
    
	
 
    	
 
    	
Telecopy:   (212) 808-4922
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
with   a copy to:
    

 

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Kirkland &   Ellis, LLP
    
	
 
    	
 
    	
300   North LaSalle Street
    
	
 
    	
 
    	
Chicago, IL   60654
    
	
 
    	
 
    	
Attention:   Christopher Butler, P.C.
    
	
 
    	
 
    	
Telecopy:   (312) 862-2200
    
	
 
    	
 
    	
 
    
	
Administrative   Agent:
    	
 
    	
Wells   Fargo Bank, National Association
    
	
 
    	
 
    	
301   South College Street
    
	
 
    	
 
    	
Charlotte,   NC 28202
    
	
 
    	
 
    	
Attention:   Kent Davis
    
	
 
    	
 
    	
Telecopy:   704-383-6647
    
	
 
    	
 
    	
Telephone:   704-715-1302
    

 

provided that any notice, request or demand to or upon the Administrative Agent or the Lenders shall not be effective until received.

 

Documents required to be delivered pursuant to Section 6.1 or Section 6.2 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 10.2 or on the SEC’s website or (ii) on which such documents are posted on the Borrower’s behalf on an Internet or Intranet website, if any, to which the Administrative Agent has access (whether a commercial, third-party website or whether sponsored by the Administrative Agent); provided that:  (i) the Borrower shall deliver copies (which may be electronic) of such documents to the Administrative Agent which so requests until a written request to cease delivering copies is given by the Administrative Agent or such Lender and (ii) the Borrower shall notify (which may be by facsimile or electronic mail) the Administrative Agent (and each Lender if there is at the time no incumbent Administrative Agent) of the posting of any such documents. The Administrative Agent shall have no obligation to request the delivery or to maintain copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by the Borrower with any such request for delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining its copies of such documents referred to in this proviso.  Furthermore, if any financial statement, certificate or other information required to be delivered pursuant to Section 6.1 or 6.2 or 6.7 or 6.9 shall be required to be delivered on any date that is not a Business Day, such financial statement, certificate or other information may be delivered to the Administrative Agent on the next succeeding Business Day after such date.

 

Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communications pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply to notices pursuant to Section 2 or 3 unless otherwise agreed by the Administrative Agent and the applicable Lender.  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.

 

10.3.                     No Waiver; Cumulative Remedies.  No failure to exercise and no delay in exercising, on the part of the Administrative Agent or any Lender, any right, remedy, power or privilege hereunder or under the other Loan Documents 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 are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

 

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10.4.                     Survival of Representations and Warranties.  All representations and warranties made hereunder, in the other Loan Documents and in any document, certificate or statement delivered pursuant hereto or in connection herewith shall survive the execution and delivery of this Agreement and the making of the Loans and other extensions of credit hereunder.

 

10.5.                     Payment of Expenses.  The Borrower agrees (a) to pay or reimburse each of the Administrative Agent, the Collateral Agent and the Joint Lead Arrangers for all their reasonable out-of-pocket costs and expenses incurred in connection with the development, preparation and execution of, and any amendment or proposed amendment (whether or not effective), supplement or modification to, this Agreement and the other Loan Documents and any other documents prepared in connection herewith or therewith, and the consummation and administration of the transactions contemplated hereby and thereby, including the reasonable fees and disbursements of Cahill Gordon & Reindel LLP, counsel to the Administrative Agent, Collateral Agent and Joint Lead Arrangers (and one local counsel to the Administrative Agent, Collateral Agent and Joint Lead Arrangers in any applicable jurisdiction as to which the Administrative Agent reasonably determines local counsel is appropriate) (provided that in no event shall the Borrower be obligated to reimburse the reasonable expenses of more than one counsel plus one counsel in each jurisdiction pursuant to this clause (a)), (b) to pay or reimburse each Lender, the Collateral Agent and the Administrative Agent for all their reasonable out-of-pocket costs and expenses incurred in connection with the enforcement or preservation of any rights under this Agreement, the other Loan Documents and any other documents prepared in connection herewith or therewith, including, without limitation, the reasonable fees and disbursements of counsel to Lenders, the Administrative Agent and the Collateral Agent (provided that in no event shall the Borrower be obligated to reimburse the reasonable expenses of more than one counsel plus one counsel in each jurisdiction, unless as reasonably determined by a Lender, representation of all the Lenders, the Administrative Agent and the Collateral Agent would create an actual or potential conflict of interest) and (c) to pay, indemnify and hold each Lender and each Agent and their respective officers, directors, employees, affiliates, partners, advisors, agents and controlling persons (each, an “Indemnitee”) harmless from and against any and all other liabilities, obligations, losses, damages, claims, penalties, actions, judgments, suits, costs or expenses (including reasonable fees, disbursements, settlement costs and other charges of counsel) of any kind or nature whatsoever (other than consequential, special or punitive damages or losses) with respect to the execution, delivery, enforcement, performance and administration of this Agreement, the other Loan Documents and any such other documents, including any of the foregoing relating to the use of proceeds of the Loans or the violation of, noncompliance with or liability under, any Environmental Law relating to the operations of any Group Member or any of the Properties, including the presence or Release or threat of Release of Materials of Environmental Concern at, on, under or from the Properties, and the reasonable fees and expenses of legal counsel in connection with claims, actions or proceedings by any Indemnitee against any Loan Party under any Loan Document (all the foregoing in this clause (c), collectively, the “Indemnified Liabilities”), provided that, in each case, the Borrower shall have no obligation hereunder to any Indemnitee with respect to Indemnified Liabilities to the extent such Indemnified Liabilities are found by a final and nonappealable decision of a court of competent jurisdiction to have resulted from (A) the bad faith, fraud, negligence, or willful misconduct of such Indemnitee (or any of such Indemnitee’s affiliates or their respective officers, directors, employees, advisors, trustees or agents), (B) a dispute arising solely among Indemnitees and not arising from an act or omission of Parent or any of its Subsidiaries or (C) a material breach by such Indemnitee (or any of such Indemnitee’s affiliates or their respective officers, directors, employees, advisors, trustees or agents) of its obligations hereunder.  In the case of any investigation, litigation or other proceeding to which the indemnity in clause (c) of this Section applies, such indemnity shall be effective whether or not such investigation, litigation or other proceeding is brought by a third party or any Group Member or an Indemnitee, and whether or not an Indemnitee is otherwise a party thereto; provided further that the Borrower shall not be required to reimburse the legal fees and expenses of more than one primary outside counsel and reasonably necessary local and specialty counsel for all Indemnitees with respect to any matter for which indemnification is

 

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sought unless, as reasonably determined by an Indemnitee’s counsel, representation of all such Indemnitees would create an actual or potential conflict of interest. The Borrower shall not be required to indemnify any Indemnitee for any Indemnified Liabilities paid or payable by such Indemnitee in, or resulting from, the settlement of any action, proceeding or investigation without the written consent of the Borrower, which consent shall not be unreasonably withheld or delayed; provided that the foregoing indemnity shall apply to any such settlement in the event that the Borrower was offered the ability to assume the defense of the action that was the subject matter of such settlement and elected not to assume.  All amounts due under this Section 10.5 shall be payable not later than 30 days after written demand accompanied by a commercially reasonably detailed invoice therefor.  Statements payable by the Borrower pursuant to this Section 10.5 shall be submitted to the address of the Borrower set forth in Section 10.2, or to such other Person or address as may be hereafter designated by the Borrower in a written notice to the Administrative Agent.  The agreements in this Section 10.5 shall survive termination of the Commitments and repayment of the Loans and all other amounts payable hereunder.

 

10.6.                     Successors and Assigns; Participations and Assignments.

 

(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 (including any affiliate of the Issuing Bank that issues any Letter of Credit), except that (i) except as permitted by Section 7.4, the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by the Borrower without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with this Section 10.6.  Nothing in this Agreement, express 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 paragraph (d) of this Section and, to the extent expressly contemplated hereby, the other Indemnitees) 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 Commitments and the Loans at the time owing to it), provided that:

 

(i)                                except in the case of an assignment to an Eligible Assignee or an assignment of the entire remaining amount of the assigning Lender’s interests under any Facility, the amount of the Commitments or Term Loans, as applicable, 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) shall not be less than $1,000,000 (or, in the case of the Revolving Loans or Commitments, $5,000,000 unless each of the Borrower and the Administrative Agent otherwise consent, provided that no such consent of the Borrower shall be required if an Event of Default under Section 8(a) or 8(f) has occurred and is continuing;

 

(ii)                             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, provided that this clause shall not be construed to prohibit the assignment of a proportionate part of all the assigning Lender’s rights and obligations in respect of each Facility.  This Section 10.6(b)(ii) shall not be construed to prohibit assignment of a proportionate part of all the assigning Lender’s rights and obligations in respect of a single Facility;

 

(iii)                          the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500 ;

 

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provided that only one such fee shall be payable in the event of simultaneous assignments to or from two or more Approved Funds or Affiliates of the same Lender; and

 

(iv)                         any Eligible Assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an administrative questionnaire in which such Eligible Assignee designates one or more credit contacts to whom all syndicate-level information (which may contain material non-public information about the Borrower, the Loan Parties and their Affiliates or their respective securities) will be made available and who may receive such information in accordance with such Eligible Assignee’s compliance procedures and applicable laws, including Federal and state securities laws.

 

Subject to acceptance and recording thereof pursuant to paragraph (c)(ii) below, from and after the effective date specified in each Assignment and Assumption the Eligible Assignee thereunder shall be a party hereto 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 2.18, 2.19, 2.20 and 10.5).  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Section 10.6 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 paragraph (d) of this Section 10.6.

 

(c)                                  Register.  (i)  The Administrative Agent, acting for this purpose as an agent of the Borrower, shall maintain at one of its offices 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 and Extensions of Credit of, and principal amount (and stated interest) of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive, and the Borrower, the Administrative Agent, the Issuing Bank 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.  The Register shall be available for inspection by the Borrower or any Lender (with respect to any entry relating to such Lender’s Loans)  at any reasonable time and from time to time upon reasonable prior notice.

 

(ii)                                   Upon its receipt of a duly completed Assignment and Assumption executed by an assigning Lender and an Eligible Assignee, the Eligible Assignee’s completed administrative questionnaire (unless the Eligible Assignee shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph (b)(iii) of this Section 10.6, all tax forms required under Section 2.19 and any written consent to such assignment required by paragraph (b)(i) of this Section 10.6, the Administrative Agent shall accept such Assignment and Assumption and record the information contained therein in the Register.  No assignment shall be effective for purposes of this Agreement unless and until it has been recorded in the Register as provided in this paragraph.  The Register shall be available for inspection by the Borrower or any Lender (with respect to any entry relating to such Lender’s Loans) at any reasonable time and from time to time upon reasonable prior notice.

 

(d)                                 Participations.  Any Lender may, without the consent of the Borrower or the Administrative Agent, sell participations to one or more banks or other entities (other than natural persons or Disqualified Lenders) (a “Participant”) in all or a portion of such Lender’s rights and obligations under this Agreement (including all or a portion of its Commitments and the Loans owing to it); provided that (A) such Lender’s obligations under this Agreement shall remain unchanged, (B) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (C) the

 

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Borrower, the Administrative Agent, the Issuing Bank and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  Any agreement 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 the Loan Documents; provided that such agreement may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver that (1) requires the consent of each Lender directly affected thereby pursuant to the proviso to the second sentence of Section 10.1 and (2) directly affects such Participant.  Subject to paragraph (e) of this Section 10.6, the Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.18, 2.19 and 2.20 (subject to the requirements and limitations of such sections) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section 10.6.  To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 10.7(b) as though it were a Lender, provided such Participant shall be subject to Section 10.7(a) as though it were a Lender.  Each Lender that sells a participation shall, acting solely for this purpose as an agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) 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.

 

(e)                                  Limitation on Participants’ Rights.  No Participant shall be entitled to receive any greater payment under Section 2.18 or 2.19 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, not to be unreasonably withheld or delayed.

 

(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 to secure obligations of such Lender (and any initial or subsequent pledgee or grantee, as the case may be, may in turn at any time and from time to time pledge or grant a security interest in all or any portion of such rights as collateral security to secure obligations of such Person), including any pledge or assignment to secure obligations to a Federal Reserve Bank or any other nation’s central bank, and this Section shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or Eligible Assignee for such Lender as a party hereto.

 

(g)                                  Electronic Execution of Assignments.  The words “execution,” “signed,” “signature,” and words of like import in any Assignment and Assumption 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 Requirement of 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.

 

(h)                                 The Borrower, upon receipt of written notice from the relevant Lender, agrees to issue Notes to any Lender requiring Notes to facilitate transactions of the type described in paragraph (d) above.

 

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10.7.                     Adjustments; Set-off.

 

(a)                                 Except to the extent that this Agreement expressly provides for payments to be allocated to a particular Lender or Lenders, if any Lender (a “Benefitted Lender”) shall receive any payment of all or part of the Obligations owing to it, or receive any collateral in respect thereof (whether voluntarily or involuntarily, by set-off, pursuant to events or proceedings of the nature referred to in Section 8(f), or otherwise), in a greater proportion than any such payment to or collateral received by any other Lender, if any, in respect of the Obligations owing to such other Lender, such Benefitted Lender shall purchase for cash from the other Lenders a participating interest in such portion of the Obligations owing to each such other Lender, or shall provide such other Lenders with the benefits of any such collateral, as shall be necessary to cause such Benefitted Lender to share the excess payment or benefits of such collateral ratably with each of the Lenders; provided, however, that if all or any portion of such excess payment or benefits is thereafter recovered from such Benefitted Lender, such purchase shall be rescinded, and the purchase price and benefits returned, to the extent of such recovery, but without interest.

 

(b)                                 In addition to any rights and remedies of the Lenders provided by law, each Lender shall have the right after the occurrence and during the continuance of an Event of Default, without prior notice to Parent or the Borrower, any such notice being expressly waived by Parent and the Borrower to the extent permitted by applicable law, upon any amount becoming overdue and payable by Parent or the Borrower hereunder (whether at the stated maturity, by acceleration or otherwise), to set off and appropriate and apply against such amount any and all deposits (general or special, time or demand, provisional or final other than payroll, tax or trust accounts), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by such Lender or any branch or agency thereof to or for the credit or the account of Parent or the Borrower, as the case may be.  Each Lender agrees promptly to notify the Borrower and the Administrative Agent after any such setoff and application made by such Lender, provided that the failure to give such notice shall not affect the validity of such setoff and application.

 

10.8.                     Counterparts.  This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed signature page of this Agreement by facsimile,.pdf file or other electronic transmission shall be effective as delivery of a manually executed counterpart hereof.  A set of the copies of this Agreement signed by all the parties shall be lodged with the Borrower and the Administrative Agent.

 

10.9.                     Severability.  Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

10.10.              Integration.  This Agreement and the other Loan Documents represent the entire agreement of Parent, the Borrower, the Administrative Agent and the Lenders with respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Administrative Agent or any Lender relative to the subject matter hereof not expressly set forth or referred to herein or in the other Loan Documents.

 

10.11.              GOVERNING LAW.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY,

 

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AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WILL BE REQUIRED THEREBY.

 

10.12.              Submission to Jurisdiction; Waivers.  Each of the parties hereto hereby irrevocably and unconditionally:

 

(a)                                 submits for itself and its property in any legal action or proceeding relating to this Agreement and the other Loan Documents to which it is a party, or for recognition and enforcement of any judgment in respect thereof, to the exclusive general jurisdiction of the courts of the City of New York, Borough of Manhattan, the courts of the United States for the Southern District of New York located in the Borough of Manhattan, and appellate courts from any thereof;

 

(b)                                 consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same;

 

(c)                                  agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to Parent or the Borrower, as the case may be at its address set forth in Section 10.2 or at such other address of which the Administrative Agent shall have been notified pursuant thereto;

 

(d)                                 agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue in any other jurisdiction; and

 

(e)                                  waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Section 10.12 any special, exemplary, punitive or consequential damages.

 

10.13.              Acknowledgements.  Each of Parent and the Borrower hereby acknowledges that:

 

(a)                                 it has been advised by counsel in the negotiation, execution and delivery of this Agreement and the other Loan Documents;

 

(b)                                 neither the Administrative Agent nor any Lender has any fiduciary relationship with or duty to Parent or the Borrower arising out of or in connection with this Agreement or any of the other Loan Documents, and the relationship between Administrative Agent and Lenders, on one hand, and Parent and the Borrower, on the other hand, in connection herewith or therewith is solely that of debtor and creditor; and

 

(c)                                  no joint venture is created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions contemplated hereby among the Lenders or among Parent, the Borrower and the Lenders.

 

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10.14.              Releases of Guarantees and Liens.

 

(a)                                 Notwithstanding anything to the contrary contained herein or in any other Loan Document, the Administrative Agent and the Collateral Agent are hereby irrevocably authorized by each Lender (without requirement of notice to or consent of any Lender except as expressly required by Section 10.1) to (A) take any action requested by the Borrower having the effect of releasing any Collateral or guarantee obligations (i) to the extent necessary to permit sale or other disposition of Collateral (other than any such sale or disposition to another Loan Party) not prohibited by any Loan Document or that has been consented to in accordance with Section 10.1, (ii) upon termination of the Total Commitments and payment in full of all then outstanding Obligations (other than contingent indemnification obligations) and the expiration or termination of all Letters of Credit (unless cash collateralized or subject to other arrangements satisfactory to the Issuing Bank) or (iii) subject to Section 10.1, if otherwise approved, authorized or ratified in writing by the Required Lenders, (B) to the extent agreed by the Administrative Agent, to subordinate any Lien on any Property granted to or held by the Administrative Agent or Collateral Agent under any Loan Document to the holder of any Lien on such Property that is permitted by Section 7.3 or (C) to release any Subsidiary Guarantor from its obligations under the Guaranty and Collateral Agreement if such Person ceases to be a Subsidiary Guarantor as a result of a disposition or any other transaction permitted under any Loan Document.

 

(b)                                 In connection with a termination or release pursuant to Section 10.14(a)(A) or (a)(C), the Administrative Agent and Collateral Agent shall promptly execute and deliver to the applicable Loan Party, at the Borrower’s expense, all documents that the applicable Loan Party shall reasonably request to evidence such termination or release.  Upon request by the Administrative Agent or the Collateral Agent at any time, the Required Lenders will confirm in writing such Administrative Agent’s and Collateral Agent’s authority to release or subordinate its interest in particular types or items of Property, or to release any Subsidiary Guarantor from its obligations under the Guaranty and Collateral Agreement pursuant to this Section 10.14.

 

10.15.              Confidentiality.  Each of the Administrative Agent, the Issuing Bank and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates’ respective partners, directors, officers, employees, agents and representatives, including accountants, legal counsel and other advisors (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) 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) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party to this Agreement, (e) in connection with the exercise of any remedies hereunder, under any other Loan Document or any suit, action or proceeding relating to this Agreement, 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 (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower and its obligations (it being understood that no disclosure shall be permitted under this clause (f) to any Disqualified Lender), (g) subject to each such Person being informed of the confidential nature of the Information and to its agreement to keep such Information confidential and subject to an agreement containing provisions substantially the same as those of this Section, to (i) an investor or prospective investor in securities issued by an Approved Fund that also agrees that Information shall be used solely for the purpose of evaluating an investment in such securities issued by the Approved Fund, (ii) a trustee, collateral manager, servicer, backup servicer, noteholder or secured party in securities issued by an Approved Fund in connection with the administration, servicing and reporting on the assets serving as collateral for

 

106

 

securities issued by an Approved Fund, or (iii) a nationally recognized rating agency that requires access to information regarding the Loan Parties, the Loans and Loan Documents in connection with ratings issued in respect of securities issued by an Approved Fund (it being understood that no disclosure shall be permitted under this clause (g) to any Disqualified Lender), (h) with the written consent of the Borrower or (i) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section 10.15 or (ii) becomes available to the Administrative Agent, the Issuing Bank or any Lender on a non-confidential basis from a source other than the Borrower; provided, however, that with respect to disclosures pursuant to clauses (b) and (c) of this Section 10.15 (other than disclosures pursuant to routine regulatory examinations) and clause (e) of this Section 10.15 (as such clause relates to suits, actions or proceedings in which disclosure is being sought by a third party), unless prohibited by applicable Requirements of Law or court order, each Lender, the Issuing Bank and the Administrative Agent shall (x) notify the Borrower in writing of any request by any Governmental Authority or representative thereof or other Person for disclosure of confidential and non-public information after receipt of such request and (y) if such disclosure of such confidential or non-public information is legally required, furnish only such portion of such information as it is legally compelled to disclose and exercise commercially reasonable efforts to obtain a protective order or other reliable assurance that confidential treatment will be accorded to the disclosed information.

 

For the purposes of this Section 10.15, “Information” means all information received from the Borrower relating to the Borrower or its business, other than any such information that is available to the Administrative Agent, the Issuing Bank or any Lender on a non-confidential basis prior to disclosure by the Borrower subject to the last paragraph of Section 6.1.  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.

 

10.16.              WAIVERS OF JURY TRIAL.  HOLDINGS, THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

10.17.              USA PATRIOT Act.  Each Lender that is subject to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”) hereby notifies the Borrower that pursuant to the requirements of the Act, it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with the Act.

 

10.18.              No Advisory or Fiduciary Responsibility.  The Administrative Agent, Syndication Agent, Documentation Agent, Joint Lead Arrangers and each Lender and their respective Affiliates (collectively, solely for purposes of this paragraph, the “Lenders”), may have economic interests that conflict with those of the Loan Parties. The Loan Parties agree that nothing in the Loan Documents will be deemed to create an advisory, fiduciary or agency relationship or fiduciary or other similar implied duty between the Lenders and the Loan Parties. In connection with all aspects of each transaction contemplated by this Agreement, the Loan Parties acknowledge and agree that (a) (i) the arranging and other services described herein are arm’s-length commercial transactions between the Loan Parties, on the one hand, and the Lenders, on the other hand, (ii) the Loan Parties have consulted their own legal, accounting, regulatory and tax advisors to the extent you have deemed appropriate and have not relied on any of the Lenders for advice in any of such regards, and (iii) the Loan Parties are capable of evaluating, and understand and accept, the terms, risks and conditions of the transactions contemplated by

 

107

 

this Agreement; and (b) (i) each Lender has been, is, and will be acting solely as a principal and, except as otherwise 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 any of Loan Parties under the Loan Documents and (ii) under the Loan Documents, no Lender has any obligation to the Loan Parties with respect to the transactions contemplated by this Agreement except those obligations expressly set forth in this Agreement and/or the other Loan Documents.  The Borrower further acknowledges and agrees that it is responsible for making its own independent judgment with respect to such transactions and the process leading thereto.

 

10.19.              Subject to Intercreditor Agreement.  Notwithstanding anything herein to the contrary, (i) the Liens and security interests granted to the Administrative Agent and the Collateral Agent pursuant to the Security Documents are expressly subject to the Intercreditor Agreement, the OnCure Assets Intercreditor Agreement and any other intercreditor agreement entered into pursuant hereto and (ii) the exercise of any right or remedy by the Administrative Agent or the Collateral Agent hereunder or under the Intercreditor Agreement, the OnCure Assets Intercreditor Agreement and any other intercreditor agreement entered into pursuant hereto is subject to the limitations and provisions of the Intercreditor Agreement, the OnCure Assets Intercreditor Agreement and such other intercreditor agreement entered into pursuant hereto.  In the event of any conflict between the terms of the Intercreditor Agreement, the OnCure Assets Intercreditor Agreement or any other such intercreditor and terms of this Agreement, the terms of the Intercreditor Agreement, the OnCure Assets Intercreditor Agreement or such other intercreditor agreement, as applicable, shall govern.

 

10.20.              Interest Rate Limitation.  Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts which are treated as interest on such Loan under applicable Requirements of Law (collectively, the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance with applicable Requirements of Law, the rate of interest payable in respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such Loan but were not payable as a result of the operation of this Section shall be cumulated and the interest and Charges payable to such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have been received by such Lender.

 

108

 

Exhibit B

 

[Form of Term Note]

 

 

[Form of]

TERM NOTE

 

$                                    New York, New York

 

[Date]

 

FOR VALUE RECEIVED, the undersigned, RADIATION THERAPY SERVICES, INC., a Florida corporation (the “Borrower”), hereby promises to pay to [                         ] (the “Lender”) or its registered assigns on the Termination Date (as defined in the Credit Agreement referred to below) in lawful money of the United States and in immediately available funds, the principal amount of                             DOLLARS ($                                  ), or, if less, the aggregate unpaid principal amount of all Term Loans of the Lender outstanding under the Credit Agreement referred to below, which sum shall be due and payable in such amounts and on such dates as are set forth in the Credit Agreement. Borrower further agrees to pay interest in like money at such office specified in Section 2.17 of the Credit Agreement on the unpaid principal amount hereof from time to time from the date hereof at the rates, and on the dates, set forth in the Credit Agreement.

 

The holder of this Note may endorse and attach a schedule to reflect the date, Type and amount of each Term Loan of the Lender outstanding under the Credit Agreement, the date and amount of each payment or prepayment of principal hereof, and the date of each interest rate conversion or continuation pursuant to Section 2.12 of the Credit Agreement and the principal amount subject thereto; provided that the failure of the Lender to make any such recordation (or any error in such recordation) shall not affect the obligations of Borrower hereunder or under the Credit Agreement.

 

This Note is one of the “Term Notes” as defined in the Amended and Restated Credit Agreement dated as of August 28, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among the Borrower, Radiation Therapy Services Holdings, Inc., the Lenders party thereto, Wells Fargo Bank, National Association, as Administrative Agent and Collateral Agent and the other parties party thereto from time to time, is subject to the provisions thereof and is subject to optional and mandatory prepayment in whole or in part as provided therein. Terms used herein which are defined in the Credit Agreement shall have such defined meanings unless otherwise defined herein or unless the context otherwise requires.

 

This Note is secured and guaranteed as provided in the Credit Agreement and the Security Documents. Reference is hereby made to the Credit Agreement and the Security Documents for a description of the properties and assets in which a security interest has been granted, the nature and extent of the security and guarantees, the terms and conditions upon which the security interest and each guarantee was granted and the rights of the holder of this Note in respect thereof.

 

 

Upon the occurrence and during the continuation of any one or more of the Events of Default specified in the Credit Agreement, all amounts then remaining unpaid on this Note shall become, or may be declared to be, immediately due and payable all as provided therein.

 

All parties now and hereafter liable with respect to this Note, whether maker, principal, surety, guarantor, endorser or otherwise, hereby waive presentment, demand, protest and all other notices of any kind.

 

THIS NOTE MAY NOT BE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE TERMS OF THE CREDIT AGREEMENT. TRANSFERS OF THIS NOTE MUST BE RECORDED IN THE REGISTER MAINTAINED BY THE ADMINISTRATIVE AGENT PURSUANT TO THE TERMS OF THE CREDIT AGREEMENT.

 

THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE  WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WILL BE REQUIRED THEREBY.

 

[Signature Page Follows]

 

 

	
 
    	
RADIATION   THERAPY SERVICES, INC., as Borrower
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

 

Schedule 1

 

	
Lender
    	
 
    	
Commitment
    	
 
    	
Term Loan
   Commitment
    	
 
    
	
Barclays Bank PLC
    	
 
    	
$
    	
10,714,285.71
    	
 
    	
$
    	
4,285,714.29
    	
 
    
	
Black Diamond CLO 2006-1 (Cayman) LTD.
    	
 
    	
$
    	
7,142,857.14
    	
 
    	
$
    	
2,857,142.86
    	
 
    
	
General Electric Capital Corporation
    	
 
    	
$
    	
14,285,714.29
    	
 
    	
$
    	
5,714,285.71
    	
 
    
	
Morgan Stanley Bank, N.A.
    	
 
    	
$
    	
17,857,142.86
    	
 
    	
$
    	
7,142,857.14
    	
 
    
	
Morgan Stanley Senior Funding, Inc.
    	
 
    	
$
    	
7,142,857.14
    	
 
    	
$
    	
2,857,142.86
    	
 
    
	
SunTrust Bank
    	
 
    	
$
    	
25,000,000.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
Wells Fargo Bank, National Association
    	
 
    	
$
    	
17,857,142.86
    	
 
    	
$
    	
7,142,857.14
    	
 
    
	
Oaktree Capital Management, L.P.(1)
    	
 
    	
—
    	
 
    	
$
    	
35,000,000.00
    	
 
    
	
Beach Point SCF Loan LP
    	
 
    	
—
    	
 
    	
$
    	
6,900,000.00
    	
 
    
	
Beach Point Loan Master Fund, LP
    	
 
    	
—
    	
 
    	
$
    	
8,100,000.00
    	
 
    
	
Total:
    	
 
    	
$
    	
100,000,000
    	
 
    	
$
    	
90,000,000
    	
 
    

 

(1)  Solely in its capacity as investment manager on behalf of certain investment funds and separate accounts.

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