Document:

Exhibit 4(a)(6)(1)

 

Execution Version

 

US $200,000,000

 

LOAN AGREEMENT

 

Dated as of December 13, 2012

 

between

 

GRUMA, S.A.B. de C.V.,

as Borrower,

 

and

 

GOLDMAN SACHS BANK USA

as Administrative Agent, Sole Lead Arranger and Bookrunner

 

 

TABLE OF CONTENTS

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE I DEFINITIONS
    	
1
    
	
1.01
    	
Certain Defined Terms
    	
1
    
	
1.02
    	
Other Interpretive   Provisions
    	
18
    
	
1.03
    	
Accounting Principles
    	
18
    
	
 
    	
 
    	
 
    
	
ARTICLE II THE TERM LOANS
    	
19
    
	
2.01
    	
Commitments to Make the   Term Loans
    	
19
    
	
2.02
    	
Repayment of the Term   Loans; Promise to Pay; Evidence of Indebtedness
    	
19
    
	
2.03
    	
Procedure for Borrowing
    	
19
    
	
2.04
    	
Continuation Election;   Conversion
    	
20
    
	
2.05
    	
Prepayments
    	
21
    
	
2.06
    	
[Reserved]
    	
21
    
	
2.07
    	
[Reserved]
    	
21
    
	
2.08
    	
Interest
    	
21
    
	
2.09
    	
Fees
    	
22
    
	
2.10
    	
Computation of Interest and   Fees
    	
22
    
	
2.11
    	
Payments by the Company
    	
22
    
	
2.12
    	
Payments by the Banks to   the Administrative Agent
    	
23
    
	
2.13
    	
Sharing of Payments, Etc.
    	
24
    
	
2.14
    	
Incremental Facilities
    	
24
    
	
 
    	
 
    	
 
    
	
ARTICLE III TAXES, YIELD PROTECTION AND ILLEGALITY
    	
25
    
	
3.01
    	
Taxes
    	
25
    
	
3.02
    	
Illegality
    	
27
    
	
3.03
    	
Inability to Determine   Rates
    	
28
    
	
3.04
    	
Increased Costs and   Reduction of Return
    	
28
    
	
3.05
    	
Funding Losses
    	
29
    
	
3.06
    	
Reserves on Term Loans
    	
29
    
	
3.07
    	
Certificates of Banks
    	
30
    
	
3.08
    	
Change of Lending Office
    	
30
    
	
3.09
    	
Substitution of Bank
    	
30
    
	
3.10
    	
Survival
    	
30
    
	
 
    	
 
    	
 
    
	
ARTICLE IV CONDITIONS PRECEDENT
    	
31
    
	
4.01
    	
Conditions to Closing Date
    	
31
    
	
 
    	
 
    	
 
    
	
ARTICLE V REPRESENTATIONS AND WARRANTIES
    	
33
    
	
5.01
    	
Corporate Existence and   Power
    	
33
    
	
5.02
    	
Corporate Authorization; No   Contravention
    	
33
    
	
5.03
    	
No Additional Governmental   Authorization
    	
34
    
	
5.04
    	
Binding Effect
    	
34
    
	
5.05
    	
Litigation
    	
34
    
	
5.06
    	
Financial Information; No   Material Adverse Effect; No Default
    	
34
    
	
5.07
    	
Pari Passu
    	
35
    
	
5.08
    	
Taxes
    	
35
    
	
5.09
    	
Environmental Matters
    	
35
    

 

i

 

TABLE OF CONTENTS

(Continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
5.10
    	
Compliance with Social   Security Legislation, Etc.
    	
36
    
	
5.11
    	
Assets; Patents; Licenses, Etc.
    	
36
    
	
5.12
    	
Subsidiaries
    	
37
    
	
5.13
    	
Commercial Acts
    	
37
    
	
5.14
    	
Proper Legal Form
    	
37
    
	
5.15
    	
Full Disclosure
    	
37
    
	
5.16
    	
Investment Company Act
    	
37
    
	
5.17
    	
Margin Regulations
    	
37
    
	
5.18
    	
ERISA Compliance
    	
38
    
	
5.19
    	
Anti-Terrorism Laws
    	
39
    
	
5.20
    	
Hedging Policy
    	
39
    
	
 
    	
 
    	
 
    
	
ARTICLE VI AFFIRMATIVE COVENANTS
    	
40
    
	
6.01
    	
Financial Statements and   Other Information
    	
40
    
	
6.02
    	
Notice of Default and   Litigation
    	
41
    
	
6.03
    	
Maintenance of Existence;   Conduct of Business
    	
41
    
	
6.04
    	
Insurance
    	
42
    
	
6.05
    	
Maintenance of Governmental   Approvals
    	
42
    
	
6.06
    	
Use of Proceeds
    	
42
    
	
6.07
    	
Application of Cash   Proceeds from Sales and Other Dispositions
    	
42
    
	
6.08
    	
Payment of Obligations
    	
42
    
	
6.09
    	
Pari Passu
    	
43
    
	
6.10
    	
Compliance with Laws
    	
43
    
	
6.11
    	
Maintenance of Books and   Records
    	
43
    
	
6.12
    	
Take-Out Financing
    	
43
    
	
6.13
    	
Further Assurances;   Additional Indebtedness
    	
44
    
	
 
    	
 
    	
 
    
	
ARTICLE VII NEGATIVE COVENANTS
    	
45
    
	
7.01
    	
Negative Pledge
    	
45
    
	
7.02
    	
Investments
    	
46
    
	
7.03
    	
Mergers, Consolidations,   Sales and Leases
    	
47
    
	
7.04
    	
Restricted Payments
    	
47
    
	
7.05
    	
Limitations on Ability to   Prohibit Dividend Payments by Subsidiaries
    	
48
    
	
7.06
    	
Limitation on Incurrence of   Indebtedness by Subsidiaries
    	
48
    
	
7.07
    	
Transactions with   Affiliates
    	
48
    
	
7.08
    	
No Subsidiary Guarantees of   Certain Indebtedness
    	
48
    
	
7.09
    	
Interest Coverage Ratio
    	
48
    
	
7.10
    	
Maximum Leverage Ratio
    	
49
    
	
7.11
    	
Limitation on Hedging   Transactions
    	
49
    
	
 
    	
 
    	
 
    
	
ARTICLE VIII EVENTS OF DEFAULT
    	
49
    
	
8.01
    	
Events of Default
    	
49
    
	
8.02
    	
Remedies
    	
51
    
	
8.03
    	
Rights Not Exclusive
    	
52
    
	
 
    	
 
    	
 
    
	
ARTICLE IX THE ADMINISTRATIVE AGENT
    	
52
    

 

ii

 

TABLE OF CONTENTS

(Continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
9.01
    	
Appointment and   Authorization
    	
52
    
	
9.02
    	
Delegation of Duties
    	
52
    
	
9.03
    	
Liability of Administrative   Agent
    	
52
    
	
9.04
    	
Reliance by Administrative   Agent
    	
53
    
	
9.05
    	
Notice of Default
    	
53
    
	
9.06
    	
Credit Decision
    	
54
    
	
9.07
    	
Indemnification
    	
54
    
	
9.08
    	
Administrative Agent in   Individual Capacity
    	
55
    
	
9.09
    	
Successor Administrative   Agent
    	
55
    
	
 
    	
 
    	
 
    
	
ARTICLE X MISCELLANEOUS
    	
55
    
	
10.01
    	
Amendments and Waivers
    	
55
    
	
10.02
    	
Notices
    	
56
    
	
10.03
    	
No Waiver; Cumulative   Remedies
    	
57
    
	
10.04
    	
Costs and Expenses
    	
57
    
	
10.05
    	
Indemnification by the   Company
    	
58
    
	
10.06
    	
Payments Set Aside
    	
59
    
	
10.07
    	
Successors and Assigns
    	
59
    
	
10.08
    	
Assignments,   Participations, Etc.
    	
59
    
	
10.09
    	
Confidentiality
    	
62
    
	
10.10
    	
Set-off
    	
62
    
	
10.11
    	
Notification of Addresses,   Lending Offices, Etc.
    	
63
    
	
10.12
    	
Counterparts
    	
63
    
	
10.13
    	
Severability
    	
63
    
	
10.14
    	
Governing Law
    	
63
    
	
10.15
    	
Consent to Jurisdiction;   Waiver of Jury Trial
    	
63
    
	
10.16
    	
Waiver of Immunity
    	
64
    
	
10.17
    	
Payment in Dollars;   Judgment Currency
    	
64
    
	
10.18
    	
No Fiduciary Duty
    	
64
    

 

iii

 

LOAN AGREEMENT

 

This LOAN AGREEMENT is entered into as of December 13, 2012, among GRUMA, S.A.B. DE C.V., a sociedad anónima bursátil de capital variable organized under the laws of Mexico (the “Company”), the several financial institutions from time to time party to this Agreement (collectively, the “Banks” and individually, a “Bank”), GOLDMAN SACHS BANK USA, as Administrative Agent for the Banks (the “Administrative Agent”), Sole Lead Arranger and Bookrunner.

 

WHEREAS, the Company desires to obtain Term Loans from the Banks in an aggregate principal amount of up to US$200,000,000; and

 

WHEREAS, the Banks are willing, on the terms and subject to the conditions hereinafter set forth (including Article IV), to make such Term Loans to the Company;

 

NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained herein, the parties hereto agree as follows:

 

ARTICLE I
 DEFINITIONS

 

1.01                        Certain Defined Terms.  As used in this Agreement and in any Schedules and Exhibits to this Agreement, the following terms have the following meanings:

 

“2011 Facilities” means the following outstanding credit facilities:

 

(a)                                 Loan Agreement, dated as of March 22, 2011, entered into by and between the Company, the several financial institutions from time to time party to such loan agreement, and BBVA Bancomer, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA Bancomer as administrative agent for such banks;

 

(b)                                 Loan Agreement, dated as of June 15, 2011, entered into by and between the Company, the several financial institutions from time to time party to such loan agreement, and BBVA Bancomer, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA Bancomer as administrative agent for such banks;

 

(c)                                  Loan Agreement, dated as of June 15, 2011, entered into by and between the Company and Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch; and

 

(d)                                 Loan Agreement, dated as of June 16, 2011, entered into by and between the Company and Bancomext;

 

“Additional Indebtedness” has the meaning specified in Section 4.01(n).

 

“ADM” means means Archers-Daniels-Midland Company and its Affiliates.

 

1

 

“ADM Acquisition Agreement” means the stock purchase agreement to be executed by and between the Company and ADM pursuant to which the Company will purchase 106,335,069 shares of the Company, 3,857,175 shares of Valores Azteca, 25,797 equity interests in Valores Mundiales, and 300 equity interests in Consorcio Andino from ADM.

 

“Administrative Agent” means Goldman Sachs, in its capacity as administrative agent for the Banks hereunder, and any successor administrative agent appointed pursuant to Section 9.09.

 

“Administrative Agent’s Payment Account” means the following account:

 

Bank: Citibank N.A.

ABA: 021000089

Account #: 30627664

Account Name: Goldman Sachs Bank USA

 

“Administrative Agent’s Payment Office” means the address in New York City for payments set forth on the signature pages hereto, or such other address as the Administrative Agent may from time to time specify to the other parties hereto.

 

“Administrative Questionnaire” means an administrative details form supplied by the Administrative Agent and completed by a Bank.

 

“Affected Bank” has the meaning specified in Section 3.02(a).

 

“Affiliate” means, as to any Person, any other Person which, directly or indirectly, is in control of, is controlled by, or is under common control with, such Person. A Person shall be deemed to control another Person if the controlling Person possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of the other Person, whether through the ownership of voting securities, by contract, or otherwise.

 

“Agreement” means this Loan Agreement, as from time to time amended, supplemented, restated or otherwise modified.

 

“Alternate Base Rate” means, for any day, a fluctuating rate of interest per annum equal to the greatest of (a) the rate of interest most recently determined by Goldman Sachs as its “prime rate”, (b) the Federal Funds Rate most recently announced by the Administrative Agent plus 0.50% and (c) the LIBOR that would be calculated as of such day (or if such date is not a Business Day, as of the next preceding Business Day) in respect of a proposed LIBOR Loan with a one-month Interest Period plus 1.0%.  The “prime rate” is a rate set by Goldman Sachs based upon various factors, including Goldman Sachs’ costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above, or below such announced rate. Any change in such rate announced by Goldman Sachs shall take effect at the opening of business on the day specified in the public announcement of such change.

 

“Anti-Terrorism Laws” has the meaning specified in Section 5.19(a).

 

2

 

“Applicable Margin” means, in the case of LIBOR Loans, 3.00% per annum and, in the case of Base Rate Loans, 2.00% per annum plus, in each case, the Step-up Margin.

 

“Arranger” means Goldman Sachs Bank USA.

 

“Assignee” has the meaning specified in Section 10.08(a).

 

“Assignment and Acceptance” has the meaning specified in Section 10.08(a).

 

“Attorney Costs” means and includes all reasonable and documented fees and disbursements of any law firm or other external counsel, and, without duplication, the allocated cost of internal legal services and all reasonable and documented disbursements of internal counsel.

 

“Bank” has the meaning specified in the introductory clause hereto, and includes each Substitute Bank and each Assignee which becomes a Bank pursuant to Section 10.08.

 

“Base Rate Loan” means a Term Loan bearing interest at a fluctuating rate of interest per annum determined by reference to the Alternate Base Rate.

 

“Board of Directors” means the board of directors of the Company.

 

“Borrowing” means the borrowing hereunder consisting of Term Loans to the Company of the same type made on the Closing Date by the Banks under Article II and having the same Interest Period.

 

“Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks in New York City, New York or Mexico City, Mexico are authorized or required by law or administrative rule to close; provided, however, with respect only to any determination of LIBOR, the term “Business Day” shall also exclude any day on which banks are not open for dealings in US Dollar deposits in the London interbank market.

 

“Capital Adequacy Regulation” means any general guideline, request or directive of any central bank or other Governmental Authority, or any other law rule or regulation, whether or not having the force of law, in each case, regarding capital adequacy or liquidity of any bank or of any corporation controlling a bank.

 

“Capital Expenditures” means, for any period, without duplication, any expenditures of the Company and its Subsidiaries for fixed or capital assets related to the Company’s Core Business which, in accordance with IFRS, would be classified as capital expenditures.

 

“Cash Equivalent Investment” means, at any time:

 

(a)                                 any direct obligation of (or unconditionally guaranteed by) the United States of America or a state thereof, any OECD country or other foreign government in a jurisdiction in which the Company or any of its Subsidiaries currently has or could have operations (or any agency or political subdivision thereof, to the extent such obligations are supported by the full faith and credit of the United States of America or a State thereof, any OECD country or other

 

3

 

foreign government in a jurisdiction in which the Company or any of its Subsidiaries currently has or could have operations) maturing not more than one year after such time;

 

(b)                                 commercial paper maturing not more than 270 days from the date of issue, which is issued by either:

 

(i)                                     any corporation rated A-l or higher by S&P or P-l or higher by Moody’s, or

 

(ii)                                  any Bank (or its holding company); or

 

(c)                                  any certificate of deposit, time deposit or bankers acceptance, maturing not more than one year after its date of issuance, which is issued by any bank which has (x) a credit rating of A2 or higher from Moody’s or A or higher from S&P and (y) a combined capital and surplus greater than US$500,000,000.

 

“Closing Date” means the date on which all conditions precedent set forth in Section 4.01 are satisfied or waived by all the Banks and the Term Loans are made.

 

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

 

“Company” has the meaning specified in the introductory clause hereto.

 

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

 

“Consolidated EBITDA” means, for any Measurement Period, for the Company and its Consolidated Subsidiaries, an amount equal to the sum, without duplication, of (a) consolidated operating income (determined in accordance with IFRS) for such Measurement Period and (b) the amount of depreciation and amortization expense deducted during such Measurement Period in determining such consolidated operating income.

 

“Consolidated Interest Charges” means, for any Measurement Period, for the Company and its Consolidated Subsidiaries, the sum of (a) all interest, premium payments, fees, charges and related expenses of the Company and its Consolidated Subsidiaries in connection with borrowed money (including capitalized interest) or in connection with the deferred purchase price of assets, in each case to the extent treated as interest in accordance with IFRS, and (b) the portion of rent expense of the Company and its Consolidated Subsidiaries with respect to such period under capital or financial leases that is treated as interest in accordance with IFRS.

 

“Consolidated Net Worth” means, at any time, all amounts which, in accordance with IFRS, would be included under shareholders’ equity on a consolidated balance sheet of the Company and its Subsidiaries.

 

“Consolidated Subsidiary” means, with respect to the Company, any Subsidiary or other entity the accounts of which would, under IFRS, be consolidated with those of the Company in the consolidated financial statements of the Company and, at any date with respect to any Person, any Subsidiary or other entity the accounts of which would be consolidated with those of such Person in the consolidated financial statements of such Person as of such date.

 

4

 

“Consorcio Andino” means Consorcio Andino, S.L.

 

“Contractual Obligation” means, as to any Person, any provision of any security issued by such Person or of any agreement, undertaking, contract, indenture, mortgage, deed of trust or other instrument, document or agreement to which such Person is a party or by which it or any of its Property is bound.

 

“Continuation Date” means any date on which, under Section 2.04, the Company continues the Term Loans as the same type. In the case of a LIBOR Loan, the Continuation Date must be the last day of any Interest Period for such LIBOR Loan.

 

“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.

 

“Core Business” means, with respect to the Company and its Subsidiaries, the production and distribution of corn flour, the production and distribution of tortillas and other related products, the production and distribution of wheat flour and any other food related business in which the Company and its Subsidiaries are engaged in, or may engage in, from time to time, or businesses ancillary thereto or in support thereof.

 

“Default” means any event or circumstance which, with the giving of notice, the lapse of time, the making of a determination, or any combination thereof, would (if not cured, waived or otherwise remedied during such time) constitute an Event of Default.

 

“Disposition” means the sale, transfer, license or other disposition (including any sale and leaseback transaction) of any property by any Person other than in the ordinary course of business, including any sale, assignment, transfer or other disposition with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith; provided, however, that any financing involving, or secured by, the future sale of accounts receivable (or any similar financing transaction) will not be considered to be a sale or disposition in the ordinary course of business.

 

“Dollars” and “US$” each means lawful money of the United States.

 

“Eligible Assignee” means (a) a Bank, (b) an Affiliate of a Bank so long as such Person, upon execution of an Assignment Agreement is entitled to receive additional amounts under Section 3.01(a) in amounts not in excess of the amounts the assignor would have been entitled to receive were the assignee a Foreign Financial Institution, (c) a Foreign Financial Institution, (d) an Export Credit Agency, (e) a Mexican Financial Institution or (f) any other Person (other than a natural Person) approved by the Company in its absolute discretion; provided that, notwithstanding the foregoing, “Eligible Assignee” shall not include the Company or any of the Company’s Subsidiaries or Affiliates.

 

“Environmental Laws” means all federal, national, state, provincial, departmental, municipal, local and foreign laws, including common law, statutes, rules, regulations, ordinances, normas técnicas (technical standards) and codes, together with all orders, decrees,

 

5

 

judgments or injunctions issued, promulgated, approved or entered thereunder by any Governmental Authority having jurisdiction over the Company, its Subsidiaries or their respective properties, in each case relating to environmental, health and safety, natural resources or land use matters.

 

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

 

“ERISA” means the Employee Retirement Income Security Act of 1974 as amended, and any successor statute thereto, as interpreted by the rules, and regulations thereunder, all as the same may be in effect from time to time.  References to sections of ERISA shall be construed also to refer to any successor sections.

 

“ERISA Affiliate” means any trade or business (whether or not incorporated) under common control with the Company within the meaning of Section 4001(a)(14) of ERISA, or is a member of a group that includes the Company and that is treated as a single employer under 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) a withdrawal by the Company or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which it 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 Company 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 Plan amendment as a termination under Section 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan; (e) an event or condition which might reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of, a trustee to administer, any Pension Plan or Multiemployer Plan; or (f) the imposition of any liability under Title IV of ERISA, other than PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the Company or any ERISA Affiliate.

 

“Event of Default” means any of the events or circumstances specified in Section 8.01.

 

“Executive Order” has the meaning specified in Section 5.19(a) (Anti-Terrorism Laws).

 

“Export Credit Agency” means an official non-Mexican Financial Institution for the promotion of exports duly registered in Book I (Libro I) Section 5 (Sección 5) of the Foreign Banks, Financial Entities, Pension and Retirement Funds and Investment Funds Registry

 

6

 

(Registro de Bancos, Entidades de Financiamiento, Fondos de Pensiones y Jubilaciones y Fondos de Inversión del Extranjero) of the Ministry of Finance for purposes of Rule II.3.9.1 of the Resolución Miscelanea Fiscal for the year 2012 and Article 196-II of the Mexican Income Tax Law (or any successor provision).

 

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

 

“Fee Letter” means the fee letter, dated December 13, 2012 between Goldman Sachs and the Company.

 

“Fiscal Quarter” means a period of three (3) consecutive calendar months ending on March 31, June 30, September 30 or December 31 of each year.

 

“Fiscal Year” means any period of twelve consecutive calendar months ending on December 31 of each year.

 

“Foreign Financial Institution” means a bank or financial institution (i) registered in Book I (Libro I), Section 1 (Sección 1) or Section 2 (Sección 2) of the Foreign Banks, Financial Entities, Pension and Retirement Funds and Investment Funds Registry (Registro de Bancos, Entidades de Financiamiento, Fondos de Pensiones y Jubilaciones y Fondos de Inversión del Extranjero) maintained by the Ministry of Finance for purposes of Rule II.3.9.1 of the Resolución Miscelánea Fiscal for the year 2012 and Article 195-I of the Ley del Impuesto Sobre la Renta (or any successor provisions thereof), (ii) which is a resident (or, if such entity is lending through a branch or agency, the principal office of which is a resident) for tax purposes in a jurisdiction with which Mexico has entered into a treaty for the avoidance of double-taxation which is in effect, and (iii) which is the effective beneficiary (beneficiario efectivo) of any interest paid hereunder.

 

“Funding Losses” has the meaning specified in Section 3.05 (Funding Losses).

 

“GAAP” means generally accepted accounting principles set forth as “generally accepted” in the applicable jurisdiction, issued by and consistent with the opinions and pronouncements of the applicable accounting board or agency or similar institution in such jurisdiction or such other principles as may be approved by a significant segment of the accounting profession in such jurisdiction, consistently applied during a relevant period.

 

“Gimsa” means Grupo Industrial Maseca, S.A.B. de C.V.

 

“Goldman Sachs” means Goldman Sachs Bank USA.

 

7

 

“Governmental Authority” means, with respect to any Person, any nation or government, any state, province or other political or administrative subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, any entity or branch of power exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, and any corporation or other entity exercising such functions and owned or controlled, through stock or capital ownership or otherwise, by any of the foregoing having jurisdiction over such Person.

 

“Guaranty Obligation” means, as to any Person, (a) any obligation, contingent or otherwise, of such Person guarantying or having the economic effect of guarantying any Indebtedness or other obligation payable or performable by another Person (the “primary obligor”) in any manner, whether directly or indirectly, and including an aval and 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 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 obligees in respect of such Indebtedness or other obligation of the payment or performance thereof or to protect such obligees 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; provided that the term “Guaranty Obligation” shall not include endorsements of instruments for deposit or collection in the ordinary course of business.  The amount of any Guaranty Obligation 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 Guaranty Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guarantying Person in good faith.

 

“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.

 

“Hedging Policy” means the policy of the Company and its Subsidiaries with respect to Hedging Transactions, a current copy of which is attached as Exhibit H, as amended from time to time with the approval of the Board of Directors of the Company (or of a committee duly delegated by such Board of Directors comprised of two or more members thereof).

 

“Hedging Transaction” means (a) any and all derivative transactions, 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,

 

8

 

cross-currency rate swap transactions, currency options, spot contracts, swaptions, forward purchase transactions, future transactions or any other similar transactions or option or any other transactions involving or settled by reference to one or more rates, currencies, commodities, equity or debt instruments or securities or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any such obligations or liabilities under any Master Agreement.

 

“IFRS” means the International Financial Reporting Standards, as adopted by the International Accounting Standards Board.

 

“IMSS” means the Instituto Mexicano del Seguro Social of Mexico.

 

“Inbursa Pagare” means the promissory note issued by the Company as of the date hereof in a principal amount of US$100,000,000 in favor of Banco Inbursa, S.A. Institución de Banca Múltiple, Grupo Financiero Inbursa.

 

“Increased Amount Date” has the meaning specified in Section 2.14.

 

“Indebtedness” of any Person means at any date, without duplication:

 

(a)                                 any obligation of such Person in respect of borrowed money and any obligation of such Person evidenced by bonds, notes, debentures or similar instruments;

 

(b)                                 any obligation of such Person in respect of a lease or hire purchase contract which would, under IFRS (or, in the case of Persons organized under laws of any state of the United States, U.S. GAAP therein), be treated as a financial or capital lease;

 

(c)                                  any indebtedness of others secured by a Lien on any asset of such Person, whether or not such indebtedness is assumed by such Person;

 

(d)                                 any obligations of such Person to pay the deferred purchase price of fixed assets or services if such deferral extends for a period in excess of 60 days; and

 

(e)                                  with respect to the Company, all Guaranty Obligations of the Company in respect of obligations of third parties unrelated to the Company’s existing Core Business as of the date hereof;

 

provided, however, that the following liabilities shall be explicitly excluded from the definition of the term “Indebtedness”:

 

(i)                                     trade accounts payable, including any obligations in respect of letters of credit that have been issued in support of trade accounts payable;

 

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(ii)                                  expenses that accrue and become payable in the ordinary course of business;

 

(iii)                               customer advance payments and customer deposits received in the ordinary course of business; and

 

(iv)                              obligations for ad valorem taxes, value added taxes, or any other taxes or governmental charges.

 

“Indemnified Liabilities” has the meaning set forth in Section 10.05.

 

“Indemnitees” has the meaning set forth in Section 10.05.

 

“INFONAVIT” means Instituto Nacional del Fondo de la Vivienda para los Trabajadores of Mexico.

 

“Interest Coverage Ratio” means, as of the last day of any Fiscal Quarter, the ratio of (a) Consolidated EBITDA to (b) Consolidated Interest Charges, in each case determined for the relevant Measurement Period.

 

“Interest Payment Date” means (a) as to any LIBOR Loan, the last day of each Interest Period applicable to such Term Loan; provided that if any Interest Period for a LIBOR Loan exceeds three months, the respective dates that fall every three months after the beginning of such Interest Period shall also be Interest Payment Dates; and (b) as to any Base Rate Loan, the last Business Day of each Fiscal Quarter, the date of any repayment or prepayment of the principal of such Term Loan and the Maturity Date.

 

“Interest Period” means, as to each LIBOR Loan, the period commencing on the date of such LIBOR Loan (including conversions, extensions or renewals) and ending on the date one, two or three months thereafter, as selected by the Company in its Notice of Borrowing or Notice of Continuation; provided, however, that:

 

(a)                                 if any Interest Period would otherwise end on a day that is not a Business Day, that Interest Period shall be extended to the following 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 next preceding Business Day;

 

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

 

(c)                                  no Interest Period shall extend beyond the Maturity Date.

 

“Investment” means, as to any Person, any acquisition or investment by such Person, whether by means of (a) the purchase or other acquisition of capital stock or other securities of another Person, (b) a debt, loan, advance or capital contribution to, guaranty or debt of, or purchase or other acquisition of any other debt or equity participation or interest in, another

 

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Person, including any partnership or joint venture interest in such other Person or (c) the purchase or other acquisition (in one transaction or a series of transactions) of all or a substantial portion of the business or Property or other beneficial ownership of any other Person or the assets of another person that constitute a business unit or division.  For purposes of covenant compliance, the amount of any Investment shall be the amount actually invested, without adjustment for subsequent increases or decreases in the value of such Investment.

 

“Investment Bank” means one or more investment banks reasonably satisfactory to Goldman Sachs and the Company.

 

“IRS” means the United States Internal Revenue Service.

 

“Joinder Agreement” has the meaning specified in Section 2.14.

 

“Lending Office” means, as to any Bank, the office or offices of such Bank specified as its “Lending Office” in the Administrative Questionnaire, as from time to time amended, or such other office or offices as such Bank may from time to time notify the Company and the Administrative Agent.

 

“LIBOR” means for any Interest Period with respect to any LIBOR Loan, the rate per annum equal to the rate determined by Administrative Agent to be the offered rate which appears on the page of the Reuters Screen which displays an average British Bankers Association Interest Settlement Rate (such page currently being LIBOR01 page) for deposits (for delivery on the first day of such period) with a term equivalent to such period in Dollars, determined as of approximately 11:00 a.m. (London, England time) on the date that is two Business Days prior to the first day of such Interest Period (the “Determination Date”), or (b) in the event the rate referenced in the preceding clause (a) does not appear on such page or service or if such page or service shall cease to be available, the rate per annum equal to the rate determined by Administrative Agent to be the offered rate on such other page or other service which displays an average British Bankers Association Interest Settlement Rate for deposits (for delivery on the first day of such period) with a term equivalent to such period in Dollars, determined as of approximately 11:00 a.m. (London, England time) on such Determination Date, or (c) in the event the rates referenced in the preceding clauses (a) and (b) are not available, the rate per annum equal to the offered quotation rate to first class banks in the London interbank market by JPMorgan Chase Bank, N.A. for deposits (for delivery on the first day of the relevant period) in Dollars of amounts in same day funds comparable to the principal amount of the applicable Term Loan of Administrative Agent, in its capacity as a Lender, for which the LIBOR is then being determined with maturities comparable to such period as of approximately 11:00 a.m. (London, England time) on such Determination Date.

 

“LIBOR Loan” means a Term Loan bearing interest, at all times during an Interest Period applicable to such Term Loan, at a fixed rate of interest determined by reference to LIBOR.

 

“Lien” means with respect to any Property, any security interest, mortgage, deed of trust, fideicomiso, pledge, usufruct, fiduciary transfer, charge or deposit arrangement, encumbrance, lien (statutory or other) or preferential arrangement (including a securitization) of any kind or

 

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nature whatsoever in respect of any Property that has the practical effect of creating a security interest.

 

“Loan Documents” means this Agreement, the Term Notes, the Notice of Borrowing, and each Notice of Continuation, any Assignment and Acceptance, the Fee Letter, and all other related agreements and documents issued or delivered hereunder or thereunder or pursuant hereto or thereto, in each case as such Loan Document may be amended, supplemented or otherwise amended from time to time.

 

“Majority Banks” means at any time Banks then holding at least 51% of the then aggregate unpaid principal amount of the Term Loans, or, if no such principal amount is then outstanding, Banks then having at least 51% of the Term Commitments.

 

“Material Adverse Effect” means (a) a material adverse change in, or a material adverse effect upon, the operations, business, assets, liabilities (actual or contingent), properties or condition (financial or otherwise) or operating results of the Company and its Subsidiaries taken as a whole; (b) a material impairment of the ability of the Company to perform its obligations under any Loan Document; (c) a material adverse effect upon the legality, validity, binding effect or enforceability against the Company of any Loan Document; or (d) a material adverse change in any of the rights and remedies of the Administrative Agent or the Banks under the Loan Documents.

 

“Material Subsidiary” means, at any time, any Subsidiary of the Company that meets any of the following conditions:

 

(a)                                 the Company’s and its Subsidiaries’ investments in or advances to such Subsidiary exceed 10% of the total assets of the Company and its Consolidated Subsidiaries as of the end of the Company’s most recently completed Fiscal Year; or

 

(b)                                 the Company’s and its Subsidiaries’ proportionate share of the total assets (after intercompany eliminations) of such Subsidiary exceeds 10% of the total assets of the Company and its Consolidated Subsidiaries as of the end of the Company’s most recently completed Fiscal Year; or

 

(c)                                  the Company’s and its Subsidiaries’ equity in the earnings before income tax and employee statutory profit sharing of such Subsidiary exceeds 10% of such earnings of the Company and its Consolidated Subsidiaries as of the end of the Company’s most recently completed Fiscal Year, all as calculated by reference to the then latest audited financial statements (or consolidated financial statements, as the case may be) of such Subsidiary and the then latest audited consolidated financial statements of the Company and its Subsidiaries;

 

provided that, notwithstanding the foregoing, the Venezuelan Subsidiaries shall not be considered Material Subsidiaries.

 

“Maturity Date” means the first anniversary of the Closing Date, or if such day is not a Business Day, the next succeeding Business Day.

 

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“Maximum Leverage Ratio” means, as of the end of the most recently completed Fiscal Quarter, the ratio of (a) Total Funded Debt of the Company and its Consolidated Subsidiaries as of the last day of such Fiscal Quarter to (b) Consolidated EBITDA of the Company and its Consolidated Subsidiaries determined for the relevant Measurement Period.

 

“Measurement Period” means any period of four (4) consecutive Fiscal Quarters of the Company, ending with the most recently completed Fiscal Quarter, taken as one accounting period.

 

“Mexican Financial Institution” means a banking institution (institución de crédito) organized under and existing pursuant to and in accordance with the laws of Mexico and duly authorized to conduct banking activities in Mexico by the Mexican Ministry of Finance.

 

“Mexico” means the United Mexican States.

 

“Ministry of Finance” means the Ministry of Finance and Public Credit (Secretaria de Hacienda y Credito Publico) and/or any of its agencies including, without limitation, the Servicio de Administración Tributaria of Mexico.

 

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

 

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

 

“New Term Commitments” has the meaning specified in Section 2.14.

 

“New Term Lender” has the meaning specified in Section 2.14.

 

“New Term Loans” has the meaning specified in Section 2.14.

 

“Notice of Borrowing” means a notice in substantially the form of Exhibit A.

 

“Notice of Continuation” means a notice in substantially the form of Exhibit B.

 

“Obligations” means all advances, debts, liabilities, obligations, covenants and duties arising under any Loan Document owing by the Company to any Bank, the Administrative Agent, or any indemnified person, whether direct or indirect (including those acquired by assignment), absolute or contingent, due or to become due, now existing or hereafter arising.

 

“OECD” means the Organization for Economic Cooperation and Development.

 

“OFAC” has the meaning specified in Section 5.19(b)(v).

 

“Originating Bank” has the meaning specified in Section 10.08(e).

 

“Other Currency” has the meaning set forth in Section 10.17(b).

 

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“Other Taxes” means, with respect to any Person, any present or future stamp, court or documentary taxes or any other excise or property taxes, or charges, imposts, duties, fees or similar levies which arise from any payment made hereunder or any other Loan Document or from the execution, delivery or registration of, or otherwise with respect to, this Agreement or any other Loan Document and which are actually imposed, levied, collected or withheld by any Governmental Authority.

 

“Participant” has the meaning specified in Section 10.08(e).

 

“Patriot Act” has the meaning specified in Section 5.19(a).

 

“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA and any successor entity performing similar functions.

 

“Pension Plan” means any “employee pension benefit plan” (as such term is defined in Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and is sponsored or maintained by the Company or any ERISA Affiliate or to which the Company or any ERISA Affiliate contributes or has an obligation to contribute, or in the case of a multiple employer plan (as described in Section 4064(a) of ERISA) has made contributions at any time during the immediately preceding five plan years.

 

“Permitted Equity Acquisition” means any Investment or any Restricted Payment by the Company pursuant to the ADM Acquisition Agreement, provided:

 

(a)                                 immediately prior to, and after giving effect thereto, no Default or Event of Default shall have occurred and be continuing or would result therefrom;

 

(b)                                 all required approvals, authorizations, waivers or consents of, or notices to, or registrations with, any Governmental Authority or third parties, if any, shall have been obtained and be in full force and effect;

 

(c)                                  such Permitted Equity Acquisition shall not (A) contravene the terms of the Company’s acta constitutiva or estatutos sociales in effect, (B) conflict with or result in any breach, violation or contravention of, or the creation of any Lien under, or give rise to any right to accelerate or require prepayment, repurchase or redemption of any obligation under or constitute a default in respect of (x) any document evidencing any Contractual Obligation to which the Company is a party or (y) any order, injunction, writ or decree of any Governmental Authority to which the Company or its Property is subject; or (iii) violate or contravene, in any material respect, any Requirement of Law;

 

(d)                                 the representations and warranties contained in Article V are true and correct on and as of such date, as though made on and as of such date.

 

(e)                                  the Company shall be in compliance with the financial covenants set forth in Section 7.09 and Section 7.10 on a pro forma basis after giving effect to such Permitted Equity Acquisition;

 

(f)                                   Such Investment shall be consummated on or prior to December 31, 2012;

 

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(g)                                  The Administrative Agent shall be satisfied with the Company’s liquidity position after giving effect to the consummation of the Permitted Equity Acquisition; and

 

(h)                                 the Company shall have delivered to the Administrative Agent, prior to the consummation of such Permitted Equity Acquisition, copies of the purchase agreements related to the proposed Permitted Equity Acquisition (and any related documents) as well as such certificates and legal opinions as may be reasonably requested by the Administrative Agent.

 

“Permitted Hedging Transaction” means any Hedging Transaction that;

 

(a)                                 is not for speculative purposes and was not entered into and is not being maintained with the aim of obtaining profits based on changing market values; and

 

(b)                                 is based on or associated with the underlying value of a product, instrument, security, commodity, interest rate, currency, index or measure of risk or value that is used by the Company or any of its Subsidiaries in the ordinary course of business; and

 

(c)                                  is in compliance with the Hedging Policy.

 

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

 

“Plan” means any “employee benefit plan” (as such term is defined in Section 3(3) of ERISA) established by the Company or any ERISA Affiliate.

 

“Pro Rata Share” means with respect to each Bank its Term Pro Rata Share.

 

“Process Agent” has the meaning specified in Section 10.15(d).

 

“Property” means any asset, revenue or any other property, whether tangible or intangible, including any right to receive income.

 

“Register” has the meaning set forth in Section 10.08(c).

 

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

 

“Requirement of Law” means, as to any Person, any law (statutory or common), treaty, rule or regulation or order, decree or other determination of an arbitrator or a court or other Governmental Authority, including any Environmental Law, in each case applicable to or binding upon such Person or any of its property or to which the Person or any of its property is subject.

 

“Responsible Officer” means the chief executive officer or the president of the Company, or the general manager or any other officer having substantially the same authority and responsibility or the chief financial officer or the treasurer of the Company, or any other officer having substantially the same authority and responsibility.

 

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“Restricted Payment” means with respect to any Person:

 

(a)                                 any dividend or other distribution (whether in cash, securities or other Property) with respect to any shares of capital stock of the Company or any Subsidiary; and

 

(b)                                 any payment (whether in cash, securities or other Property), including any sinking fund or similar deposit, purchase, redemption, retirement, acquisition, cancellation or termination of any such shares of capital stock, or of any option, warrant or other right to acquire any such shares of capital stock, partnership interest or other interest in, such Person.

 

“RFB Holdings” means RFB Holdings de México, S.A. de C.V.

 

“RFB Holdings Acquisition Agreement” means the stock purchase agreement to be executed by and between the Company and RFB Holdings pursuant to which the Company and/or any of its Subsidiaries would purchase 208,596 equity interests in Valores Mundiales, and 4,000 equity interests in Consorcio Andino from RFB Holdings.

 

“S&P” means Standard & Poor’s Ratings Service, presently a division of The McGraw-Hill Companies, Inc. and its successors.

 

“SAR” means the Sistema de Ahorro para el Retiro of Mexico.

 

“Step-up Margin” means a rate per annum equal to (i) 0% during the 90 day period after the Closing Date, (ii) 0.50% beginning at the 91st day following the Closing Date and ending at the 180th day following the Closing Date, (iii) 1.00% beginning at the 181st day following the Closing Date and ending at the 270th day following the Closing Date, and (iv) 1.50% beginning at the 271st day following the Closing Date and ending on the Maturity Date.

 

“Subsidiary” of a Person means any corporation, partnership, joint venture, limited liability company, trust, estate or other entity of which more than 50% of the voting stock or other equity interests (in the case of Persons other than corporations), is owned or controlled directly or indirectly by such Person, or one or more of the Subsidiaries of such Person, or a combination thereof. Unless the context otherwise clearly requires, references herein to a “Subsidiary” refer to a Subsidiary of the Company.

 

“Substitute Bank” means (A) a commercial bank (i) registered with the Ministry of Finance for purposes of Article 195 of the Mexican Income Tax Law and (ii) resident (or the principal office of which is a resident, if lending through a branch or agency) for tax purposes in a jurisdiction (or a branch or agency of a financial institution that is a resident of a jurisdiction) that is party to an income tax treaty with Mexico that is in effect on the date of substitution, acceptable to the Company and the Administrative Agent, each of whose consent will not be unreasonably withheld (including a bank that is already a Bank hereunder) that assumes the Term Commitment of a Bank, or is an assignee of the Term Loan of a Bank, pursuant to the terms of this Agreement or (B) a multiple banking institution (institución de banca múltiple) that is organized as a sociedad anónima under Mexican law and is authorized to engage in the business of banking by the Ministry of Finance.

 

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“Take-Out-Financing” means Indebtedness of the Company or any of its Subsidiaries that may be incurred or issued after the Closing Date to refinance the Term Loans pursuant to Section 6.12.

 

“Taxes” means any and all present or future taxes, duties, levies, assessments, imposts, deductions, withholdings or similar charges, and all liabilities with respect thereto, including any related interest or penalties, imposed by Mexico or any political subdivision or taxing authority thereof or therein or by any jurisdiction from which the Company shall make any payment hereunder or under the Term Notes, excluding, however, income, franchise or similar taxes imposed on the Administrative Agent or any Bank by a jurisdiction as a result of the Administrative Agent or such Bank being organized under the laws of such jurisdiction or being a resident of such jurisdiction to which income under this Agreement is attributable or having a permanent establishment in such jurisdiction or its Lending Office being located in such jurisdiction.

 

“Term Commitment” means with respect to each Bank, the obligation of such Bank to make a Term Loan to the Company hereunder on the Closing Date in the principal amount set forth opposite such Bank’s name on Schedule 1.01 under the heading “Term Commitments.” “Term Commitments” means the aggregate amount of Term Commitments of all Banks.

 

“Term Loan” has the meaning specified in Section 2.01(a).

 

“Term Loan Percentage” means, with respect to each Bank, a fraction (expressed as a decimal, rounded to the fourth decimal place), the numerator of which is the aggregate principal amount of the outstanding Term Loan of such Bank and the denominator of which is the aggregate principal amount of all outstanding Term Loans.

 

“Term Note” means a promissory note of the Company payable to a Bank, in the form of Exhibit C (as such promissory note may be replaced from time to time), evidencing the Indebtedness of the Company to such Bank resulting from such Bank’s Term Loans.

 

“Term Pro Rata Share” means, with respect to each Bank, a fraction (expressed as a decimal, rounded to the fourth decimal place) the numerator of which is the Term Commitment of such Bank and the denominator of which is the Term Commitments of the Banks.  The initial Term Pro Rata Share for each bank is the Pro Rata Share set forth as such opposite the name of such Bank on Schedule 1.01.

 

“Total Funded Debt” means, at any time, on a consolidated basis and without duplication, the outstanding principal balance of all Indebtedness for borrowed money of the Company and its Consolidated Subsidiaries and guarantees by the Company of obligations of third parties unrelated to the Company’s Core Business.

 

“type” means, with respect to any Term Loan, its character as a Base Rate Loan or a LIBOR Loan.

 

“Unfunded Pension Liability” means the excess of a Pension Plan’s benefit liabilities under Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s assets,

 

17

 

determined in accordance with the assumptions used for funding the Pension Plan pursuant to Section 412 of the Code for the applicable plan year.

 

“United States” and “US” each means the United States of America.

 

“Valores Azteca” means Valores Azteca, S.A. de C.V.

 

“Valores Mundiales” means Valores Mundiales, S.L.

 

“Venezuelan Subsidiaries” means (i) each of Derivados de Maiz Seleccionado C.A. and Molinos Nacionales, C.A., together with their respective direct and indirect Subsidiaries, and (ii) any Subsidiary of the Company that is organized after the date of this Agreement if such new Subsidiary is organized under the laws of Venezuela.

 

“Weighted Average Yield” means with respect to any Term Loan or New Term Loan, on any date of determination, the weighted average yield to maturity, in each case, based on the interest rate applicable to such Term Loan or New Term Loan on such date and giving effect to all upfront or similar fees or original issue discount payable with respect to such Term Loan or New Term Loan.

 

“Withdrawal Liability” has the meaning given such term under Part I of Subtitle E of Title IV of ERISA.

 

1.02                        Other Interpretive Provisions.

 

(a)                                 The meanings of defined terms are equally applicable to the singular and plural forms of the defined terms.

 

(b)                                 The words “hereof”, “herein”, “hereunder” and similar words refer to this Agreement as a whole and not to any particular provision of this Agreement; and Section, paragraph, Schedule and Exhibit references are to this Agreement unless otherwise specified.

 

(c)                                  The terms “including” and “include” are not limiting and mean “including without limitation” and “include without limitation”.

 

(d)                                 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 “to and including”.

 

(e)                                  The captions and headings of this Agreement are for convenience of reference only and shall not affect the interpretation of this Agreement

 

1.03                        Accounting Principles.

 

(a)                                 Unless the context otherwise clearly requires, all accounting terms not expressly defined herein shall be construed, and all financial computations required under this Agreement shall be made, in accordance with IFRS, consistently applied.

 

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(b)                                 References herein to “Fiscal Year” and “Fiscal Quarter” refer to such fiscal periods of the Company.

 

ARTICLE II
 THE TERM LOANS

 

2.01                        Commitments to Make the Term Loans.

 

(a)                                 (i)                                     Each Bank, severally and not jointly with the other Banks, agrees, on the terms and subject to the conditions hereinafter set forth, to make a term loan in Dollars (each such loan, a “Term Loan”) to the Company in a single disbursement on the Closing Date, in a principal amount not to exceed such Bank’s Term Commitment.

 

(ii)          No amounts prepaid or repaid with respect to any Term Loan may be reborrowed.

 

(iii)       The Term Loans shall be made from the Banks ratably in accordance with their Term Pro Rata Shares.

 

(b)                                 Term Loans made on the Closing Date shall be LIBOR Loans and the Company shall deliver to the Administrative Agent a funding indemnity letter in form and substance satisfactory to the Administrative Agent.

 

2.02                        Repayment of the Term Loans; Promise to Pay; Evidence of Indebtedness.

 

(a)                                 The Company agrees to pay the principal amount of the Term Loans in a single installment on the Maturity Date, and further agrees to pay all unpaid interest accrued thereon, in accordance with the terms of this Agreement and any Term Notes evidencing the Term Loans owing by the Company to the Bank.  Each Bank’s Term Loan shall be evidenced by a Term Note payable to the order of such Bank in a principal amount equal to such Bank’s Term Loan, maturing on the Maturity Date.  The Company shall execute and deliver to each Bank on the Closing Date a Term Note to evidence the Term Loan owing to such Bank and thereafter after giving effect to any assignment thereof pursuant to Section 10.08.

 

(b)                                 [Reserved].

 

(c)                                  It is the intent of the Company and the Banks that the Term Notes qualify as pagarés under Mexican law.  To the extent of any inconsistencies between the terms of any Term Note and this Agreement, this Agreement shall prevail.

 

(d)                                 Upon payment in full of the Term Loans, the Administrative Agent, on behalf of the Banks, agrees to promptly deliver to the Company customary documentation, including any payoff letters, evidencing such payment by the Company.

 

2.03                        Procedure for Borrowing.

 

(a)                                 The Borrowing of Term Loans on the Closing Date shall be made upon the Company’s irrevocable written notice delivered to the Administrative Agent in the form of a

 

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Notice of Borrowing (which notice must be received by the Administrative Agent prior to 11:00 a.m. (New York City time) three Business Days prior to the Closing Date, specifying:

 

(i)             the aggregate amount of the Borrowing, which shall not exceed the aggregate Term Commitments; and

 

(ii)          the duration of the initial Interest Period applicable to such Term Loans.  If the Notice of Borrowing shall fail to specify the duration of the Interest Period for any Borrowing, such Interest Period shall, subject to clauses (b) and (c) of the definition of “Interest Period,” be three months.

 

(b)                                 [Reserved].

 

(c)                                  Each Bank will make each Term Loan to be made by it hereunder on the Closing Date to the Administrative Agent for the account of the Company by 11:00 a.m. (New York City time) by wire transfer of immediately available funds to the Administrative Agent’s Payment Account or such other account designated by the Administrative Agent for such purposes by notice to the Banks.  The proceeds of all such Term Loans will then be made available to the Company by the Administrative Agent, pursuant to Section 6.06, in like funds as received by the Administrative Agent, by wire transfer in accordance with the Notice of Borrowing.

 

(d)                                 All Term Loans shall be of the same type and have the same Interest Period.

 

2.04                        Continuation Election; Conversion.

 

(a)                                 The Company may, upon irrevocable written notice to the Administrative Agent, elect, as of the last day of any Interest Period for any Borrowing of Term Loans that are LIBOR Loans, to continue such LIBOR Loans for a further Interest Period.

 

(b)                                 The Company shall deliver a Notice of Continuation to be received by the Administrative Agent not later than 11:00 a.m. (New York City time) three Business Days prior to the date of any proposed continuation of Term Loans that are LIBOR Loans, specifying:

 

(i)             the Continuation Date, which shall be a Business Day; and

 

(ii)          the duration of the next Interest Period with respect thereto.

 

(c)                                  If upon the expiration of any Interest Period for LIBOR Loans, the Company has failed to select timely a new Interest Period, the Company shall, subject to clauses (b) and (c) of the definition of “Interest Period,” be deemed to have elected to continue such Term Loans as LIBOR Loans having an Interest Period of one month. Any such automatic continuation shall be effective as of the last day of the Interest Period then in effect with respect to the applicable LIBOR Loans.

 

(d)                                 The Administrative Agent will promptly notify each Bank of its receipt of a Notice of Continuation, or, if no timely notice is provided by the Company, the Administrative Agent will promptly notify each Bank of the Company’s deemed election of continuation.

 

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(e)                                  During the existence of a Default or an Event of Default, no Term Loans may be continued as LIBOR Loans without the consent of the Majority Banks, and the Majority Banks may demand that any or all of the then outstanding LIBOR Loans be converted immediately to Base Rate Loans.

 

(f)                                   After giving effect to the continuation of any Borrowing of Term Loans, all Libor Term Loans shall have the same Interest Period.

 

2.05                        Prepayments.

 

(a)                                 Subject to Section 3.05, the Company may, at any time or from time to time, upon not less than three Business Days’ irrevocable notice to the Administrative Agent, voluntarily prepay the Term Loans in whole or in part, in minimum principal amounts of US$10,000,000 or any multiple of $1,000,000 in excess thereof.  The notice of prepayment shall specify the date and amount of such prepayment.  The Administrative Agent will promptly notify each Bank of its receipt of any such notice, and of such Bank’s Term Loan Percentage of such prepayment.  Any such prepayment shall be applied on a pro rata basis among each of the Banks according to each Bank’s Term Loan Percentage.

 

(b)                                 No later than the third Business Day following the date of receipt by the Company or any of its Subsidiaries of any cash proceeds from the incurrence of any Take-Out-Financing, the Company shall prepay the Term Loans in an aggregate amount equal to 100% of such proceeds, net of underwriting discounts and commissions and other reasonable costs and expenses associated therewith, including reasonable legal fees and expenses.  Any such prepayment shall be applied on a pro rata basis among each of the Banks according to each Bank’s Term Loan Percentage.

 

2.06                        [Reserved].

 

2.07                        [Reserved].

 

2.08                        Interest.

 

(a)                                 Subject to the provisions of paragraph (c) below, (i) each LIBOR Loan shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate per annum equal to LIBOR for such Interest Period plus the Applicable Margin, and (ii) each Base Rate Loan shall bear interest on the outstanding principal amount thereof from the date of conversion at a rate per annum equal to the Alternate Base Rate plus the Applicable Margin.

 

(b)                                 Interest on each Term Loan shall be paid in arrears on each Interest Payment Date. Interest shall also be paid on the date of any prepayment or repayment of Term Loans under Section 2.05 with respect to the portion of the Term Loans so prepaid or repaid, and upon payment (including prepayment) in full of the Term Loans. During the existence of any Event of Default, interest shall be payable on demand.

 

(c)                                  Any overdue principal and, to the extent permitted by applicable law, overdue interest or other amounts payable hereunder) shall bear interest payable on demand for each day from the date payment thereof was due to the date of actual payment at a rate per annum equal to

 

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(i) in the case of the principal amount of any Term Loan, (A) the interest rate then in effect, including the Applicable Margin then in effect plus (B) 2% and (ii) in the case of interest or any other amount, (A) the Alternate Base Rate plus (B) the Applicable Margin then in effect plus (C) 2%.

 

(d)                                 Anything herein to the contrary notwithstanding, the obligations of the Company to any Bank hereunder shall be subject to the limitation that payments of interest shall not be required for any period for which interest is computed hereunder, to the extent (but only to the extent) that contracting for or receiving such payment by such Bank would be contrary to the provisions of any law applicable to such Bank limiting the highest rate of interest that may be lawfully contracted for, charged or received by such Bank, and in such event the Company shall pay such Bank interest at the highest rate permitted by applicable law.

 

2.09                        Fees.  On the Closing Date, the Company shall pay to the Administrative Agent for the account of each Bank, or an Affiliate of a Bank specified to the Company by such Bank, a structuring fee as agreed upon by the Company in accordance with the Fee Letter in all cases free and clear of any and all withholding or equivalent taxes.

 

2.10                        Computation of Interest and Fees.

 

(a)                                 Computation of interest on Base Rate Loans, when the Alternate Base Rate is determined based on the Administrative Agent’s prime rate or Federal Funds Rate, shall be calculated on the basis of a year of 365 or 366 days, as the case may be, and the actual number of days elapsed (including the first day but excluding the last day). All other computations of interest and fees which are computed on a per annum basis shall be calculated on the basis of a year of 360 days and the actual number of days elapsed (including the first day but excluding the last day).

 

(b)                                 Each determination of LIBOR or the applicable Alternate Base Rate by the Administrative Agent shall be conclusive and binding on the Company and the Banks in the absence of manifest error.

 

(c)                                  The Administrative Agent shall notify the Company and the Banks of any change in the Administrative Agent’s prime rate used in determining the Alternate Base Rate promptly following the public announcement of such change.

 

2.11                        Payments by the Company.

 

(a)                                 Subject to Section 3.01, all payments to be made by the Company shall be made without condition or deduction for any set-off, counterclaim or other defense. Except as otherwise expressly provided herein, all payments by the Company shall be made to the Administrative Agent for the account of the Banks at the Administrative Agent’s Payment Office, and shall be made in Dollars and in immediately available funds, no later than 12:00 noon (New York City time) on the date specified herein.  The Administrative Agent will promptly distribute to each Bank its pro rata share (or other applicable share as expressly provided herein) of such payment in like funds as received by wire to such Bank’s Lending Office. Any payment received by the Administrative Agent later than 12:00 noon (New York

 

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City time) may be deemed, at the election of the Administrative Agent, to have been received on the following Business Day and any applicable interest shall continue to accrue.

 

(b)                                 Subject to the provisions set forth in the definition of “Interest Period” herein, whenever any payment is due on a day other than a Business Day, such payment shall be made on the following Business Day, and such extension of time shall in such case be included in the computation of interest.

 

(c)                                  Unless the Administrative Agent receives notice from the Company prior to the date on which any payment is due to the Banks that the Company will not make such payment in full as and when required, the Administrative Agent may assume that the Company has made such payment in full to the Administrative Agent on such date in immediately available funds and the Administrative Agent may (but shall not be so required), in reliance upon such assumption, distribute to each Bank on such due date an amount equal to the amount then due such Bank. If and to the extent the Company has not made such payment in full to the Administrative Agent, each Bank shall forthwith on demand repay to the Administrative Agent amount distributed to such Bank to the extent not paid by the Company, together with interest thereon at the Federal Funds Rate for each day from the date such amount is distributed to such Bank until the date recovered by the Administrative Agent; provided that if any amount remains unpaid by any Bank for more than five Business Days, such Bank shall pay interest thereon to the Administrative Agent at a rate per annum equal to the Alternate Base Rate, plus the Applicable Margin then in effect, plus 2%.

 

2.12                        Payments by the Banks to the Administrative Agent.

 

(a)                                 Unless the Administrative Agent receives notice from a Bank that such Bank will not make available, as and when required hereunder, to the Administrative Agent for the account of the Company the amount of such Bank’s Pro Rata Share of the Borrowing to be made on the Closing Date, the Administrative Agent may, but shall not be required to, assume that each Bank has made such amount available to the Administrative Agent on such date in accordance with this Agreement and the Administrative Agent may in its sole discretion (but shall not be so required), in reliance upon such assumption, make available to the Company on such date a corresponding amount.  If and to the extent any Bank shall not have made its full amount available to the Administrative Agent in immediately available funds and the Administrative Agent in such circumstances has made available to the Company such amount, such Bank shall on the Business Day following the Closing Date make such amount available to the Administrative Agent, together with interest at the Federal Funds Rate for each day during such period. If such amount is so made available, such payment to the Administrative Agent shall constitute such Bank’s Term Loan on the Closing Date for all purposes of this Agreement. If such amount is not made available to the Administrative Agent on the Business Day following the Closing Date, the Administrative Agent will notify the Company of such failure to fund and, upon demand by the Administrative Agent, the Company shall pay such amount to the Administrative Agent for the Administrative Agent’s account, together with interest thereon for each day elapsed since the Closing Date, at a rate per annum equal to the interest rate applicable at the time to the Term Loans comprised in such Borrowing; provided that if the Company fails to pay such amount to the Administrative Agent within five Business Days after the date of notification of such failure from the Administrative Agent, the Company shall pay interest

 

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thereon to the Administrative Agent at a rate per annum equal to the Alternate Base Rate, plus the Applicable Margin then in effect, plus 2%.

 

(b)                                 The obligations of the Banks hereunder to make Term Loans are several and not joint.  The failure of any Bank to make any Term Loan on the Closing Date shall not relieve any other Bank of any obligation hereunder to make a Term Loan on such date, but no Bank shall be responsible for the failure of any other Bank to make the Term Loan to be made by such other Bank on the Closing Date.

 

2.13                        Sharing of Payments, Etc.

 

If, other than as expressly provided elsewhere herein, any Bank shall obtain on account of the Term Loans made by it any payment (whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise) in excess of its pro rata share of such payment (or other share contemplated hereunder), such Bank shall immediately (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Term Loans of the other Banks to the extent necessary to cause such purchasing Bank to share the benefit of all such excess payments pro rata with each of them; provided, however, that (A) if any such participations are purchased and all or any portion of such excess payment is thereafter recovered from the purchasing Bank, such participations shall, to that extent, be rescinded and each other Bank shall repay to the purchasing Bank the purchase price paid therefor, together with an amount equal to such paying Bank’s ratable share (according to the proportion of (i) the amount of such paying Bank’s required repayment to (ii) the total amount so recovered from the purchasing Bank) of any interest or other amount paid or payable by the purchasing Bank in respect of the total amount so recovered, and (B) the provisions of this paragraph shall not be construed to apply to any payment made by the Company pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a Bank as consideration for the assignment of or sale of a participation in any of its Term Loans to any assignee or participant, other than to the Company or any Subsidiary thereof (as to which the provisions of this paragraph shall apply).  The Company agrees that any Bank so purchasing an interest from another Bank may, to the fullest extent permitted by law, exercise all its rights of payment (including the right of set-off) with respect to such participation as fully as if such Bank were the direct creditor of the Company in the amount of such participation.  The Administrative Agent will keep records (which shall be conclusive and binding in the absence of manifest error) of interests purchased under paragraph (b) above and will in each case notify the Banks and the Company following any such purchases or repayments.  Each Bank that purchases an interest in the Term Loans pursuant to paragraph (b) above shall from and after such purchase have the right to give all notices, requests, demands, directions and other communications under this Agreement with respect to the portion of the Obligations purchased to the same extent as though the purchasing Bank were the original owner of the Obligations purchased.

 

2.14                        Incremental Facilities.

 

(a)                                 The Company may by written notice to the Administrative Agent elect to request prior to the Maturity Date, the establishment of one or more new term loan commitments (the “New Term Commitments”), by an amount not in excess of US$100,000,000 in the aggregate.  Each such notice shall specify (A) the date (each, an “Increased Amount Date”) on which the

 

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Company proposes that the New Term Commitments, as applicable, shall be effective, which shall be a date not less than 3 Business Days (or such shorter period agreed by the Administrative Agent) after the date on which such notice is delivered to the Administrative Agent and (B) the identity of each Lender or other Person that is an Eligible Assignee (each, a  “New Term Lender”) to whom the Company proposes any portion of such New Term Commitments be allocated and the amounts of such allocations; provided that any Lender approached to provide all or a portion of the New Term Commitments may elect or decline, in its sole discretion, to provide a New Term Commitment.  Such New Term Commitments shall become effective, as of such Increased Amount Date; provided that (1) no Default or Event of Default shall exist on such Increased Amount Date before or after giving effect to such New Term Commitments; (2) both before and after giving effect to the making of any New Term Loans, the representations and warranties contained in Article V shall be true and correct as of the Increased Amount Date, as though made on and as of such date; (3) the Company shall be in pro forma compliance with each of the covenants set forth in Section 7.09 and 7.10 as of the last day of the most recently ended Fiscal Quarter after giving effect to such New Term Commitments; (4) the Company shall reimburse the Administrative Bank for all reasonable costs and expenses (including Attorney Costs) incurred in connection with the New Term Commitments; and (5) the New Term Commitments shall be effected pursuant to one or more joinder agreements in form and substance satisfactory to the Administrative Agent (the “Joinder Agreement”) executed and delivered by the Company, the New Term Lender and the Administrative Agent.

 

(b)                                 On any Increased Amount Date on which any New Term Commitments are effective, subject to the satisfaction of the foregoing terms and conditions, (i) each New Term Lender of shall make a loan to the Company (a “New Term Loan”) in an amount equal to its New Term Commitment, and (ii) each New Term Lender shall become a Lender hereunder with respect to the New Term Commitment and the New Term Loans made pursuant thereto.

 

(c)                                  The terms and provisions of the New Term Loans and New Term Commitments shall be identical to the existing Term Loans, it being understood that the Weighted Average Yield applicable to the New Term Loans shall not be greater than the applicable Weighted Average Yield payable pursuant to the terms of this Agreement as amended through the date of such calculation with respect the Term Loans unless the interest rate with respect to the Term Loans is increased so as to cause the then applicable Weighted Average Yield under this Agreement on the Term Loans to equal the Weighted Average Yield then applicable to the New Term Loans.  Each Joinder 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 opinion of Administrative Agent to effect the provision of this Section 2.14.

 

ARTICLE III
 TAXES, YIELD PROTECTION AND ILLEGALITY

 

3.01                        Taxes.

 

(a)                                 Any and all payments by the Company to or for the account of any Bank or the Administrative Agent pursuant to this Agreement and any other Loan Document shall be made

 

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free and clear of, and without deduction or withholding for, any Taxes.  In addition, the Company shall pay all Other Taxes.

 

(b)                                 If the Company shall be required by law to deduct or withhold any Taxes or Other Taxes from or in respect of any sum payable hereunder or under any other Loan Document to any Bank or the Administrative Agent, then:

 

(i)             the sum payable shall be increased as necessary so that, after making all required deductions and withholdings (including deductions and withholdings applicable to additional sums payable under this Section 3.01), such Bank or the Administrative Agent, as the case may be, receives and retains an amount equal to the sum it would have received and retained had no such deductions or withholdings been made;

 

(ii)          the Company shall make such deductions and withholdings;

 

(iii)       the Company shall pay the full amount deducted or withheld to the relevant taxing authority or other authority in accordance with applicable law; and

 

(iv)      in the event of an increase, after the date of this Agreement, in the Mexican withholding tax rate to a rate in excess of the rate applicable to each Bank party hereto on the date hereof, the Company shall also pay to each Bank or the Administrative Agent for the account of such Bank, at the time interest is paid, all additional amounts that such Bank specifies as necessary to preserve the after-tax yield such Bank would have received if such Taxes or Other Taxes had not been imposed;

 

provided, however, that the Company shall not be required in any circumstance to increase any such amounts payable to any Bank or the Administrative Agent with respect to withholding tax in excess of the rate applicable to a Person that is a Foreign Financial Institution, including during the occurrence and continuance of a Default or an Event of Default.

 

(c)                                  Subject to the proviso contained in the last paragraph of Section 3.01(b) above, the Company agrees to indemnify and hold harmless each Bank and the Administrative Agent for the full amount of (i) Taxes and (ii) Other Taxes (including deductions and withholdings applicable to additional sums payable under this Section 3.01) in the amount that such Bank or the Administrative Agent, as the case may be, specifies as necessary to preserve the after-tax yield such Bank or the Administrative Agent would have received if such Taxes or Other Taxes had not been imposed, and any liability (including penalties, interest, additions to tax and expenses) arising therefrom or with respect thereto, whether or not such Taxes or Other Taxes were correctly or legally asserted. Payment under this paragraph (c) indemnification shall be made within 30 days after the date any Bank or the Administrative Agent makes written demand therefor.

 

(d)                                 Within 30 days after the date of any payment by the Company of Taxes or Other Taxes, the Company shall furnish to the Administrative Agent (which shall forward the same to each Bank) the original or a certified copy of a receipt, or other evidence satisfactory to the Administrative Agent, evidencing payment thereof.

 

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(e)                                  Each Bank shall, from time to time at the reasonable request of the Company or the Administrative Agent (as the case may be), promptly furnish to the Company or the Administrative Agent (as the case may be), such forms, documents or other information (which shall be accurate and complete) as may be reasonably required to establish any available exemption from, or reduction in the amount of, applicable Taxes; provided, however, that none of any Bank or the Administrative Agent shall be obliged to (i) disclose information regarding its tax affairs or computations to the Company in connection with this paragraph (e) or any other information that is protected by bank secrecy provisions or (ii) furnish any such form, document or other information if doing so would materially prejudice its legal or commercial position.  Each of the Company and the Administrative Agent shall be entitled to rely on the accuracy of any such forms, documents or other information furnished to it by any Person and shall have no obligation to make any additional payment or indemnify any Person for any Taxes, in excess of applicable Taxes payable to a Foreign Financial Institution, interest or penalties that would not have became payable by such Person had such documentation been accurate or delivered.

 

(f)                                   Should any Bank become subject to Taxes and not be entitled to indemnification under Section 3.01(c) or Section 10.05 with respect to Taxes imposed by the relevant Governmental Authority, the Company shall take such steps as the Bank shall reasonably request at the expense of the applicable Bank to assist the Bank to recover such Taxes.

 

3.02                        Illegality.

 

(a)                                 If any Bank determines that any Requirement of Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for any Bank or its applicable Lending Office to make, maintain or fund any Term Commitment or any Term Loan contemplated by this Loan Agreement, or materially restricts the authority of such Bank to purchase or sell, or to take deposits of, Dollars in the London interbank market, or to determine or charge interest rates based upon LIBOR, then, on notice thereof by such Bank to the Company through the Administrative Agent, such Bank, together with Banks giving notice, shall be an “Affected Bank” and by written notice to the Company and to the Administrative Agent:

 

(i)             any obligation of such Bank to make or continue Term Loans as LIBOR Loans shall be suspended until the circumstances giving rise to such determination no longer exist;

 

(ii)          [Reserved];

 

(iii)       such Affected Bank may require, only if such Requirement of Law prohibits the maintenance of LIBOR Loans, that all outstanding LIBOR Loans, made by it be converted to Base Rate Loans, in which event all such LIBOR Loans shall be automatically converted to Base Rate Loans as of the effective date of such notice as provided in paragraph (b) below; and

 

(iv)      if it is also illegal for the Affected Bank to make Base Rate Loans, such Term Loans shall bear interest until the end of the next Interest Period at a commensurate rate to be agreed upon by the Administrative Agent and the Affected Bank and, so long as no Event of Default shall have occurred and be continuing, the Company, unless it is unlawful for such Affected Bank to do so or it would materially restrict the authority of such Affected Bank to

 

27

 

purchase or sell, or to take deposits of Dollars in the London interbank market; in such case or after the end of such Interest Period such Affected Bank may continue such Term Loans at such rate or declare all amounts owed to them by the Company to the extent of such illegality to be due and payable; provided, however, the Company has the right, with the consent of the Administrative Agent, to find an additional Bank to purchase the Affected Banks’ rights and obligations.

 

In the event any Bank shall exercise its rights under (i) above with respect to any Term Loans, all payments and prepayments of principal that would otherwise have been applied to repay the Term Loans that would have been made by such Bank shall instead be applied to repay the Base Rate Loans resulting from the conversion, of such LIBOR Loans.  Upon any such prepayment or conversion, the Company shall also pay interest on the amount so prepaid or converted.

 

(b)                                 For purposes of this Section 3.02, a notice to the Company by any Bank shall be effective as to each identified Term Loan, if lawful, on the last day of the Interest Period currently applicable to such Term Loan; in all other cases such notice shall be effective on the date of receipt by the Company.

 

3.03                        Inability to Determine Rates.  If the Administrative Agent determines, or in the case of clause (c) below is informed by the Majority Banks, in connection with any request for a LIBOR Loan or a continuation thereof that (a) Dollar deposits are not being offered to banks in the London interbank market for the applicable amount and Interest Period of such LIBOR Loan, (b) adequate and reasonable means do not exist for determining LIBOR applicable to such Interest Period, or (c) LIBOR for such LIBOR Loan does not adequately and fairly reflect the cost to the Majority Banks of making or maintaining such LIBOR Loan, the Administrative Agent will promptly notify the Company and each Bank.  Thereafter, the obligation of the Banks to make or maintain LIBOR Loans shall be suspended until the Administrative Agent revokes such notice.  Upon receipt of such notice, the Company may revoke any pending request for a continuation of LIBOR Loans or, failing that, will be deemed to have converted such request into a request for conversion to Base Rate Loans in the amount specified therein.

 

3.04                        Increased Costs and Reduction of Return.

 

(a)                                 If any Bank reasonably determines that, due to either (i) the introduction of, or any change in, or any change in the interpretation or application of, any Requirement of Law or (ii) the compliance by such Bank with any guideline, directive or request from any central bank or other Governmental Authority (whether or not having the force of law), there shall be any increase in the cost to such Bank of agreeing to make or making, funding or maintaining its Term Loans to the Company or to reduce any amount receivable hereunder (in either case other than payment on account of taxes), then the Company shall be liable for, and shall, from time to time, upon demand from such Bank (with a copy of such demand to be sent to the Administrative Agent), promptly pay to the Administrative Agent for the account of such Bank, additional amounts as are sufficient to compensate such Bank for such increased costs or reduced amount receivable.

 

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(b)                                 If any Bank reasonably determines that (i) the introduction of any Capital Adequacy Regulation, (ii) any change in any Capital Adequacy Regulation, (iii) any change in the interpretation or administration of any Capital Adequacy Regulation by any central bank or other Governmental Authority charged with the interpretation or administration thereof, or (iv) compliance by the Bank (or its Lending Office) with any Capital Adequacy Regulation affects or would affect the amount of capital or liquidity required or expected to be maintained by such Bank or any corporation controlling such Bank and determines that the amount of such capital or liquidity is increased as a consequence of its Term Commitment, Term Loans or obligations under this Agreement, then, upon demand of such Bank to the Company through the Administrative Agent, the Company shall pay to the Administrative Agent for the account of such Bank, from time to time as specified by such Bank, additional amounts sufficient to compensate the Bank for such increase.

 

(c)                                  Notwithstanding anything to the contrary herein, it is understood and agreed that the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub.L. 111-203, H.R. 4173), all requests, rules, guidelines and directives relating thereto, all interpretations and applications thereof and any compliance by a Bank with any request or directive relating thereto, shall, for the purposes of this Agreement, be deemed to be adopted subsequent to the date hereof.

 

3.05                        Funding Losses.  The Company shall reimburse each Bank and hold each Bank harmless from (in each case by prompt payment of any relevant amounts to the Administrative Agent for the account of such Bank) any loss or expense that the Bank may sustain or incur, including but not limited to, any loss incurred in obtaining, liquidating or redeploying deposits bearing interest by reference to LIBOR from third parties (“Funding Losses”) as a consequence of:

 

(a)                                 the failure of the Company to make on a timely basis any payment of principal of any Term Loan;

 

(b)                                 the failure of the Company to borrow or continue a Term Loan after the Company has given (or is deemed to have given) a Notice of Borrowing or a Notice of Continuation;

 

(c)                                  the failure of the Company to make any prepayment in accordance with any notice delivered under Section 2.05; or

 

(d)                                 the prepayment (including pursuant to Section 2.05) or other payment (including after acceleration thereof) of any Term Loan on a day that is not the last day of the relevant Interest Period therefor; including any such loss or expense arising from the liquidation or reemployment of funds obtained by such Bank to maintain such Term Loan or from fees payable to terminate the deposits from which such funds were obtained.  The Company shall also pay any customary and reasonable administrative fees charged by such Bank in connection with the foregoing.

 

3.06                        Reserves on Term Loans.  The Company shall pay to each Bank, as long as such Bank 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 such Bank’s LIBOR Loans equal to the

 

29

 

actual costs of such reserves allocated to such LIBOR Loans by such Bank (as determined by such Bank in good faith, which determination shall be conclusive, absent manifest error), payable on each date on which interest is payable on such Term Loans, provided the Company shall have received at least 15 days’ prior written notice (with a copy to the Administrative Agent) of such additional interest from such Bank. If a Bank fails to give notice 15 days prior to the relevant Interest Payment Date, such additional interest shall be payable 15 days from receipt of such notice.

 

3.07                        Certificates of Banks.

 

(a)                                 Any Bank claiming reimbursement or compensation under this Article III shall deliver to the Company (with a copy to the Administrative Agent) a certificate setting forth in reasonable detail the amount payable to such Bank hereunder and the reasons for such claim and such certificate shall be conclusive and binding on the Company in the absence of manifest error.

 

(b)                                 Each Bank agrees to notify the Company of any claim for reimbursement pursuant to Section 3.04 or 3.06 not later than 60 days after any officer of such Bank responsible for the administration of this Agreement receives actual knowledge of the event giving rise to such claim. If any Bank fails so to give notice, the Company shall only be required to reimburse or compensate such Bank, retroactively, for claims pertaining to the period of 60 days immediately preceding the date the claim was made.

 

3.08                        Change of Lending Office.  Each Bank agrees that, upon the occurrence of any event giving rise to an obligation of the Company under Section 3.01, Section 3.02, Section 3.04 or Section 3.06 with respect to such Bank, it will, if requested by the Company, use reasonable efforts (subject to overall policy considerations of such Bank) to designate another Lending Office for any Term Loans affected by such event or take other action; provided that such Bank and its Lending Office suffer no economic, legal or regulatory disadvantage, with the object of avoiding the consequence of the event giving rise to the obligation under any such section.  Nothing in this section shall affect or postpone any of the Obligations of the Company or the right of any Bank provided in Section 3.01, Section 3.02, Section 3.04 or Section 3.06.

 

3.09                        Substitution of Bank.  Upon the receipt by the Company from any Bank of a claim for compensation under Section 3.01 (including, in particular, Section 3.01(b)(iv)), 3.02, Section 3.04 or Section 3.06, or giving rise to the operation of Section 3.02, the Company may, at its option, (i) request such Bank to use its best efforts to seek a Substitute Bank willing to assume such Bank’s Term Loan) or (ii) replace such Bank with a Substitute Bank or Substitute Banks that shall succeed to the rights and obligations of such Bank under this Agreement upon execution of an Assignment and Acceptance; or (iii) remove such Bank; provided, however, that such Bank shall not be replaced or removed hereunder until such Bank has been repaid in full all amounts owed to it pursuant to this Agreement and the other Loan Documents (including Sections 2.09, 3.01, 3.04 and 3.06) unless any such amount is being contested by the Company in good faith.

 

3.10                        Survival.  The agreements and obligations of the Company in this Article III shall survive the payment of all other Obligations.

 

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ARTICLE IV
 CONDITIONS PRECEDENT

 

4.01                        Conditions to Closing Date.  The obligation of each Bank to make any Term Loan to be made by it on the Closing Date is subject to the satisfaction of each of the following conditions precedent and the Administrative Agent shall have received on or before the Closing Date evidence thereof, in form and substance satisfactory to the Administrative Agent and each Bank, and, except for the Term Notes, in sufficient copies for each Bank:

 

(a)                                 Loan Agreement and Term Notes.  This Agreement shall have been duly executed by each of the parties hereto and each of the Term Notes duly executed by the Company;

 

(b)                                 Organizational Documents.  The Administrative Agent shall have received copies, certified by a notary public as to authenticity and by an officer of the Company as to effectiveness, of each of the (i) acta constitutiva and (ii) the estatutos sociales of the Company as in effect on the Closing Date;

 

(c)                                  Resolutions; Incumbency.

 

(i)             The Administrative Agent shall have received copies of all applicable powers-of-attorney (poderes) designating the Persons authorized to execute this Agreement and the other Loan Documents on behalf of the Company, certified by a Mexican notary public and by the Secretary or an Assistant Secretary of the Company;

 

(ii)          The Administrative Agent shall have received a certificate of the Secretary or Assistant Secretary of the Company (1) certifying the names and true signatures of the officers of the Company authorized to execute, deliver and perform, as applicable, this Agreement and all other Loan Documents to be delivered by it hereunder; and (2) attaching copies of all documents evidencing all necessary corporate action and governmental approvals, if any, with respect to the authorization for the execution, delivery and performance of each such Loan Document and the transactions contemplated hereby and thereby; and

 

(iii)       Such certificates shall state that the resolutions or other information referred to in such certificates have not been amended, modified, revoked or rescinded as of the date of such certificates;

 

(d)                                 Authorizations. All approvals, authorizations, waivers or consents of, or notices to, or registrations with, any Governmental Authority (including, without limitation, exchange control approvals) or third parties, if any, required in connection with the execution, delivery and performance by the Company of this Agreement on the Closing Date shall have been obtained and shall be in full force and effect.  The Administrative Agent shall have received evidence satisfactory to it of such approvals and their effectiveness and if no such approvals, authorizations, waivers, consents, notices or registrations are necessary, a certificate executed by an authorized officer of the Company, shall be delivered to the Administrative Agent so stating;

 

(e)                                  Change in Condition.  There shall have occurred no circumstance and/or event of a financial, political or economic nature in Mexico or in the international financial, banking or

 

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capital markets that has a reasonable likelihood having a Material Adverse Effect on the Company and its Subsidiaries;

 

(f)                                   Process Agent.  The acceptance by the Process Agent of an irrevocable appointment to act as agent for service of process for the Company in connection with any proceeding relating to this Agreement or the Term Notes brought in New York together with a copy certified by a Mexican notary public of the power of attorney granted by the Company in favor of the Process Agent;

 

(g)                                  Legal Opinions.  (i) An opinion of Paul Hastings LLP, special New York counsel to the Company, substantially in the form of Exhibit F; and (ii) an opinion of Salvador Vargas, Esq., General Counsel of the Company, substantially in the form of Exhibit G;

 

(h)                                 Payment of Fees.  The Company shall have paid, and the Administrative Agent shall have received satisfactory evidence thereof, (i) all fees and expenses then due and payable to the Banks and the Administrative Agent on or prior to the Closing Date, and (ii) all reasonable costs and expenses to the extent due and payable to the Administrative Agent on the Closing Date, together with Attorney Costs for the preparation and execution of this Agreement of the Administrative Agent to the extent invoiced prior to or on the Closing Date, plus such additional amounts of Attorney Costs as shall constitute its reasonable estimate of Attorney Costs incurred or to be incurred by it through the closing proceedings (provided that such estimate shall not thereafter preclude a final settling of accounts between the Company and the Administrative Agent), and (iii) any other amounts then due and payable under the Term Loans, in each case subject to the terms of the Fee Letter;

 

(i)                                     Representations and Warranties.  The representations and warranties of the Company contained in this Agreement or in any other Loan Document, or which are contained in any document furnished at any time under or in connection herewith or therewith, shall be true and correct in all material respects on and as of the Closing Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date;

 

(j)                                    No Material Adverse Effect.  There has occurred since December 31, 2011, no event or circumstance that has had or could reasonably be expected to have a Material Adverse Effect;

 

(k)                                 No Existing Default.  No Default or Event of Default shall have occurred and be continuing either prior to or after giving effect to the Borrowings contemplated to be made on the Closing Date.

 

(l)                                     Certificate.   The Administrative Agent shall have received a certificate signed by a Responsible Officer of the Company, dated as of the Closing Date, stating that:

 

(i)             the representations and warranties contained in Article V are true and correct on and as of such date, as though made on and as of such date;

 

(ii)          no Default or Event of Default has occurred and is continuing; and

 

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(iii)       there has occurred since December 31, 2011, (A) no event or circumstance that has had or could reasonably be expected to have a Material Adverse Effect and (B) no event or circumstance of a financial, political or economic nature in Mexico which has had or could reasonably be expected to have a material adverse effect on the ability of the Company to perform its obligations under this Agreement or any other Loan Document;

 

(m)                             Notice of Borrowing.  The Administrative Agent shall have received a Notice of Borrowing from the Company; and

 

(n)                                 Other Indebtedness.  The Company shall have incurred (or shall incur concurrently with the funding of the Term Loans on the Closing Date) the Inbursa Pagare and other Indebtedness, in an aggregate principal amount of US$200,000,000 (the “Additional Indebtedness”) under terms which, taken as a whole, are not more restrictive than the terms under this Agreement to fund a portion of a Permitted Equity Acquisition and for other general corporate purposes of the Company. The Administrative Agent shall have received copies of the relevant documentation relating to the Additional Indebtedness.

 

(o)                                 Other Documents.  The Administrative Agent shall have received such other certificates, powers of attorney, approvals, opinions, documents or materials as the Administrative Agent or any Bank (through the Administrative Agent) may reasonably request.

 

ARTICLE V
 REPRESENTATIONS AND WARRANTIES

 

The Company represents and warrants to the Administrative Agent and each Bank as of the Closing Date that:

 

5.01                        Corporate Existence and Power.

 

(a)                                 The Company is a sociedad anonima bursátil de capital variable, and the Company and each of its Subsidiaries are duly organized and validly existing under the laws of its corresponding jurisdiction;

 

(b)                                 The Company and each of its Subsidiaries has all requisite corporate power and authority and all requisite governmental licenses, authorizations, consents and approvals to (i) conduct its business and to own its Properties except to the extent that the failure to obtain any such governmental license, authorization, consent or approval could not reasonably be expected to have a Material Adverse Effect and (ii) (with respect to the Company only) to execute, deliver and perform all of its obligations under this Agreement and the Term Notes; and

 

(c)                                  The Company and each of its Subsidiaries is in compliance with all Requirements of Law, except to the extent that the failure to comply therewith could not reasonably be expected to have a Material Adverse Effect.

 

5.02                        Corporate Authorization; No Contravention.  The execution and delivery of, and performance by the Company under this Agreement and each other Loan Document have been duly authorized by all necessary corporate action, and do not and will not:

 

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(a)                                 contravene the terms of the Company’s acta constitutiva or estatutos sociales in effect,

 

(b)                                 conflict with or result in any breach, violation or contravention of, or the creation of any Lien under, or give rise to any right to accelerate or require prepayment, repurchase or redemption of any obligation under or constitute a default in respect of (i) any document evidencing any Contractual Obligation to which the Company is a party or (ii) any order, injunction, writ or decree of any Governmental Authority to which the Company or its Property is subject; or

 

(c)                                  violate or contravene any Requirement of Law.

 

5.03                        No Additional Governmental Authorization.  No approval (including exchange control approval), consent, exemption, authorization, registration or other action by, or notice to, or filing with, any Governmental Authority or other third party is necessary or required in connection with the execution, delivery or performance by, or enforcement against, the Company of this Agreement or any other Loan Document other than any which have been obtained and are in full force and effect.

 

5.04                        Binding Effect.  This Agreement has been and each other Loan Document, when delivered hereunder, will have been, duly executed and delivered by the Company.  This Agreement constitutes, and each other Loan Document when so delivered will constitute, a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, concurso mercantil, quiebra, or similar laws affecting the enforcement of creditors’ rights generally or by equitable principles relating to enforceability (regardless of whether enforcement thereof is sought in a proceeding at law or in equity).

 

5.05                        Litigation.  Except as disclosed in Schedule 5.05 on the date hereof and, with respect to Section 5.05(b) only, as otherwise disclosed by the Company (i) in the Financial Statements delivered pursuant to Section 6.01(a) or (ii) in the most recent annual report of the Company either on Form 20-F as filed with the Securities and Exchange Commission, or in an annual report filed with the Mexican Stock Exchange, or (iii) in an event-driven report filed with the Securities and Exchange Commission or with the Mexican Stock Exchange, there are no actions, suits, proceedings, claims or disputes pending, or to the best knowledge of the Company, threatened or contemplated, at law, in equity, in arbitration or before any Governmental Authority, by or against the Company or any of its Material Subsidiaries, which:

 

(a)                                 purport to affect the legality, validity or enforceability of this Agreement or any other Loan Document or any of the transactions contemplated hereby or thereby; or

 

(b)                                 if determined adversely to the Company or such Material Subsidiary, could reasonably be expected to have a Material Adverse Effect.

 

5.06                        Financial Information; No Material Adverse Effect; No Default.

 

(a)                                 The Company’s audited consolidated financial statements for the Fiscal Year ended December 31, 2011 (copies of which have been furnished to the Administrative Agent and

 

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each Bank) are complete and correct in all material respects, have been prepared in accordance with IFRS and fairly present in accordance with IFRS the financial condition of the Company and its Consolidated Subsidiaries as of such date and the results of their operations for the Fiscal Year ended December 31, 2011.

 

(b)                                 The Company’s consolidated unaudited financial statements for the Fiscal Quarter ended September 30, 2012 (copies of which have been furnished to the Administrative Agent and each Bank) are complete and correct in all material respects, have been prepared in accordance with IFRS and fairly present in accordance with IFRS the financial condition of the Company and its Consolidated Subsidiaries as of such date and the results of their operations for the period covered thereby, subject to the absence of footnotes and to normal year-end audit adjustments.

 

(c)                                  Since the date of the most recent audited annual financial statements, there has occurred no development, event or circumstance, either individually or in the aggregate, which has had, or could reasonably be expected to have, a Material Adverse Effect.

 

(d)                                 As of the Closing Date, neither the Company nor any of its Material Subsidiaries is in default under or with respect to any Contractual Obligation in any respect which, individually or together with all such defaults, could reasonably be expected to have a Material Adverse Effect, or that would, if such default had occurred after the Closing Date, create an Event of Default under Section 8.01(e).

 

5.07                        Pari Passu.  The Obligations constitute direct, unconditional and general obligations of the Company and rank pari passu in all respects with all other unsecured and unsubordinated Indebtedness of the Company, except those ranking senior by operation of law (and not by contract or agreement).

 

5.08                        Taxes.  The Company and its Material Subsidiaries have timely filed all tax returns and reports required to be filed under the laws of Mexico, and have timely paid all taxes, assessments, fees and other governmental charges levied or imposed upon them or their Properties, including related interest and penalties, otherwise due and payable, except (i) those which are being contested in good faith by appropriate proceedings and for which adequate reserves have been provided in accordance with IFRS; and (ii) those to the extent that non-compliance therewith could not be reasonably expected, individually or in the aggregate, to have a Material Adverse Effect.

 

5.09                        Environmental Matters.

 

(a)                                 The on-going operations of the Company and each of its Subsidiaries are in compliance in all material respects with all applicable Environmental Laws except as set forth on Schedule 5.09 or except to the extent that the failure to comply therewith could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect;

 

(b)                                 The Company and each of its Subsidiaries have obtained all environmental, health and safety permits necessary or required for its operations, all such permits are in good standing, and the Company and each of its Subsidiaries is in compliance with all material terms and conditions of such permits, except as set forth on Schedule 5.09 or except to the extent that the

 

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failure to obtain, and maintain in full force and effect, any such permit, or to the extent that failure to comply with the material terms thereof, could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect;

 

(c)                                  To the best of the knowledge of the Company, after reasonable investigation, no Property currently or formerly owned or operated by the Company or any Subsidiary (including soils, groundwater, surface water, buildings or other structures) has been contaminated with any substance that could reasonably be expected to require investigations or remediation under any Environmental Law or has incurred any liability for any release of any substance on any third party property except as could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect; and

 

(d)                                 Neither the Company nor any Subsidiary has received any notice, demand, letter, claim or request for information indicating that it may be in violation of or subject to liability under any Environmental Law or is subject to any order, decree, injunction or other arrangement with any Governmental Authority relating to any Environmental Law except as set forth on Schedule 5.09 or except as could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.

 

5.10                        Compliance with Social Security Legislation, Etc.  The Company and each of its Material Subsidiaries is in compliance with all Requirements of Law relating to social security legislation, including all rules and regulations of INFONAVIT, IMSS and SAR, except to the extent that noncompliance therewith could not be reasonably expected to have a Material Adverse Effect.

 

5.11                        Assets; Patents; Licenses, Etc.

 

(a)                                 The Company and each of its Subsidiaries has good and marketable title to, or valid leasehold interests in, all Property that is reasonably necessary to or used in the ordinary conduct of or is otherwise material to, their business, except to the extent that the failure to have such good and marketable title or valid leasehold interests could not be reasonably expected, individually or in the aggregate, to have a Material Adverse Effect.

 

(b)                                 The Company and each of its Subsidiaries owns or are licensed or otherwise has the right to use all of the material trademarks, trade names, copyrights, patents, contractual franchises, licenses, authorizations, other intellectual property and other rights that are reasonably necessary for the operation of its business, without conflict with the rights of any other Person, except to the extent that the failure to be so licensed or otherwise have such rights could not be reasonably expected, individually or in the aggregate, to have a Material Adverse Effect.

 

(c)                                  The Company and each of its Subsidiaries have insurance with financially sound, responsible and reputable insurance companies in such amounts and covering such risks as are usually carried by companies of good repute engaged in similar businesses and owning and/or operating properties similar to those owned and/or operated by the Company or such Subsidiary, as the case may be, in the same general areas in which the Company or such Subsidiary owns and/or operates its properties, in accordance with normal industry practice, except to the extent

 

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that the failure to maintain such insurance could not be reasonably expected, individually or in the aggregate, to have a Material Adverse Effect.

 

5.12                        Subsidiaries.

 

(a)                                 A complete and correct list of all Material Subsidiaries of the Company as of the Closing Date, showing the correct name thereof, the jurisdiction of its incorporation and the percentage of shares of each class outstanding owned by the Company and each Material Subsidiary of the Company is set forth in Schedule 5.12(a).

 

(b)                                 A list of all agreements, which by their terms, expressly prohibit or limit the payment of dividends or other distributions to the Company by a Material Subsidiary or the making of loans to the Company by a Material Subsidiary is set forth in Schedule 5.12(b), except for any such agreements that have been entered into after the Closing Date and are otherwise permitted by Section 7.05.

 

5.13                        Commercial Acts.  The obligations of the Company under this Agreement and the Term Notes are commercial in nature and are subject to civil and commercial law, and the execution and performance of this Agreement constitute private and commercial acts and not governmental or public acts and the Company is subject to legal action in respect of its Obligations.

 

5.14                        Proper Legal Form.  This Agreement is, and when executed and delivered each Term Note will be, in proper legal form under the laws of Mexico for the enforcement thereof against the Company under the laws of Mexico; provided that in the event any legal proceedings are brought in the courts of Mexico, a Spanish translation of the documents prepared by a court-approved translator would be required in such proceedings, including this Agreement, shall be required.

 

5.15                        Full Disclosure.  All written information other than forward-looking information heretofore furnished by the Company to the Administrative Agent or any Bank for purposes of or in connection with this Agreement is, and all such information hereafter furnished by the Company to the Administrative Agent on any Bank will be, true and accurate in all material respects on the date as of which such information is stated or certified. All written forward-looking information heretofore furnished in writing to the Administrative Agent or the Banks has been prepared in good faith based upon assumptions the Company believes to be reasonable.  The Company has disclosed to the Administrative Agent and the Banks in writing any and all facts known to it that it believes are reasonably expected to have a Material Adverse Effect.

 

5.16                        Investment Company Act.  Both immediately before and after giving effect to this Agreement and the transactions contemplated herein, neither the Company nor any of its Subsidiaries is, or will be required to register as, an “investment company” or an “affiliated person” or “promoter” of, or “principal underwriter” of or for, an “investment company”, as such terms are defined in the Investment Company Act of 1940, as amended.

 

5.17                        Margin Regulations.  Neither the Company nor any of its Subsidiaries is generally engaged in the business of purchasing or selling “margin stock” (as such term is defined in Regulations T, U or X of the Board of Governors of the Federal Reserve System of the United

 

37

 

States) or extending credit for the purpose of purchasing or carrying margin stock. No part of the proceeds of the Term Loan will be used, whether directly or indirectly, and whether immediately, incidentally or ultimately, for any purpose that entails a violation of, or that is inconsistent with, the provisions of Regulation T, U or X of the Board of Governors of the U.S. Federal Reserve System, or that entails a violation by the Company of any other regulations of the Board of Governors of the US Federal Reserve System.

 

5.18                        ERISA Compliance.

 

(a)                                 Each Plan is in compliance in all material respects with the applicable provisions of ERISA, the Code and other federal or state laws. Each Plan that is intended to qualify under Section 401(a) of the Code has received a favorable determination letter from the IRS or an application for such a letter is currently being processed by the IRS with respect thereto and, to the best knowledge of the Company, nothing has occurred which would prevent, or cause the loss of, such qualification, or such Plan is a prototype or volume submitter plan that is subject to an opinion letter from the IRS.  The Company and each ERISA Affiliate have made all required contributions to each Plan subject to Section 412 of the Code, and no application for a funding waiver or an extension of any amortization period pursuant to Section 412 of the Code has been made with respect to any Plan.

 

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

 

(c)                                  (i) No ERISA Event has occurred, or to the best knowledge of the Company, is reasonably expected to occur; (ii) no Pension Plan has any Unfunded Pension Liability; (iii) neither the Company nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability under Title IV of ERISA with respect to any Pension Plan (other than premiums due and not delinquent under Section 4007 of ERISA; (iv) neither the Company nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability (and no event has occurred which, with the giving of notice, under Section 4219 of ERISA, would result in such liability) under Section 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and (v) neither the Company nor any ERISA Affiliate has engaged in a transaction that could be subject to Section 4069 or 4212(c) of ERISA.

 

(d)                                 None of the Company or any of its Material Subsidiaries are a party to any labor dispute that could reasonably be expected to have a Material Adverse Effect, and there are no strikes, walkouts, lockouts or slowdowns against the Company or its Subsidiaries pending or, to the best knowledge of the Company or its Subsidiaries, threatened, except as would not be expected to have a Material Adverse Effect on the business, financial condition or operations of the Company or such Material Subsidiary.  There is no unfair labor practice complaint pending against any of the Company or its Subsidiaries or, to the best knowledge of any of the Company or its Subsidiaries, threatened against any of them that could reasonably be expected to have a Material Adverse Effect.  There is no grievance or significant arbitration Proceeding arising out of or under any collective bargaining agreement pending against any of the Company or its

 

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Subsidiaries or, to the best knowledge of any of the Company or its Subsidiaries, threatened against any of them, in each case that could reasonably be expected to have a Material Adverse Effect.

 

5.19                        Anti-Terrorism Laws.

 

(a)                                 Neither the Company nor, to its knowledge, any of its Affiliates is in violation of any laws 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 (the “Patriot Act”).

 

(b)                                 Neither the Company nor, to its knowledge, any of its Affiliates acting or benefiting in any capacity in connection with the Term Loan is any of the following:

 

(i)             a Person or entity that is listed in the annex to, or is otherwise subject to the provisions of, the Executive Order;

 

(ii)          a Person or entity owned or Controlled by, or acting for or on behalf of, any Person or entity that is listed in the annex to, or is otherwise subject to the provisions of, the Executive Order;

 

(iii)       a Person or entity with which any Bank is prohibited from dealing or otherwise engaging in any transaction by any Anti-Terrorism Law;

 

(iv)      a Person or entity that commits, threatens or conspires to commit or supports “terrorism” as defined in the Executive Order; or

 

(v)         a Person or entity that is named as a “specially designated national and blocked person” on the most current list published by the US Treasury Department Office of Foreign Assets Control (“OFAC”) at its official website or any replacement website or other replacement official publication of such list.

 

(c)                                  Neither the Company nor, to the Company’s knowledge, any of the Company’s Affiliates acting in any capacity in connection with the Term Loan (i) conducts any business or engages in making or receiving any contribution of funds, goods or services to or for the benefit of any Person known to the Company to be a Person described in clause (b)(ii) above, (ii) deals in, or otherwise engages in any transaction relating to, any property or interests in property blocked pursuant to the Executive Order or (iii) engages in or conspires to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law.

 

5.20                        Hedging Policy.  The Hedging Policy has been approved by the Board of Directors of the Company (or by a committee duly delegated by such Board of Directors that is comprised of two or more members thereof) and is currently in effect.

 

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ARTICLE VI
 AFFIRMATIVE COVENANTS

 

The Company covenants and agrees that for so long as any Term Loan or other Obligation remains unpaid or any Bank has any Term Commitment hereunder:

 

6.01                        Financial Statements and Other Information.

 

(a)                                 The Company will deliver to the Administrative Agent:

 

(i)             as soon as available and in any case within 120 days after the end of each Fiscal Year, consolidated financial statements for such Fiscal Year audited by independent accountants of recognized international standing, including an annual audited consolidated balance sheet and the related consolidated statements of income, changes in equity and changes in financial position, prepared in accordance with IFRS consistently applied (except as otherwise discussed in the notes to such financial statements), which financial statements shall present fairly in accordance with IFRS the financial condition of the Company and its Consolidated Subsidiaries as at the end of the relevant Fiscal Year and the results of the operations of the Company and its Consolidated Subsidiaries for such Fiscal Year, reported on by independent accountants of recognized international standing; and

 

(ii)          as soon as available and in any event within 120 days after the end of each Fiscal Year, an English translation of the audited consolidated financial statements of the Company.

 

(b)                                 The Company will deliver to the Administrative Agent:

 

(i)             as soon as available and in any case within 60 days after the end of each of the first three Fiscal Quarters, unaudited consolidated financial statements for each such quarter period for the Company and its Consolidated Subsidiaries, including therein an unaudited consolidated balance sheet and the related consolidated statements of income prepared in accordance with IFRS, consistently applied (except as otherwise discussed in the notes to such statements), which financial statements shall present fairly in accordance with IFRS the financial condition of the Company and its Consolidated Subsidiaries as at the end of the relevant quarter and the results of the operations of the Company and its Consolidated Subsidiaries for such quarter and for the portion of the Fiscal Year then ended except for the absence of complete footnotes and except for normal, recurring year-end accruals and subject to normal year-end adjustments; and

 

(ii)          as soon as available and in any event within 90 days after the end of each of the first three Fiscal Quarters, an English translation of the unaudited quarterly consolidated financial statements of the Company.

 

(c)                                  Concurrently with the delivery of the financial statements pursuant to paragraphs (a)(i) and (b)(i) above, the Company will deliver to the Administrative Agent a Compliance Certificate, substantially in the form of Exhibit D, signed by a Responsible Officer of the Company.

 

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(d)                                 To the extent not otherwise provided pursuant to clause (a) or (b) above, the Company will furnish to the Administrative Agent, promptly after they are publicly available, copies of all financial statements and financial reports filed by the Company with any Governmental Authority (if such statement or reports are required to be filed for the purpose of being publicly available) or filed with any Mexican or other securities exchange (including the Luxembourg Stock Exchange) and which are publicly available.

 

(e)                                  The Company will furnish to the Administrative Agent, promptly upon request of the Administrative Agent or any Bank (through the Administrative Agent), such additional information regarding the business, financial or corporate affairs of the Company and its Subsidiaries as the Administrative Agent or any Bank may reasonably request, including for know-your-customer and anti-money laundering rules and regulations, including the Patriot Act.

 

(f)                                   The Administrative Agent will promptly deliver to each of the Banks copies of the documents provided by the Company pursuant to this Section 6.01.

 

6.02                        Notice of Default and Litigation.  The Company will furnish to the Administrative Agent, not later than five Business Days after the Company obtains knowledge thereof (and the Administrative Agent will notify each Bank thereof):

 

(a)                                 notice of any Default or Event of Default, signed by a Responsible Officer, describing such Default or Event of Default and the steps that the Company proposes to take in connection therewith;

 

(b)                                 notice of any litigation, action or proceeding pending or threatened against the Company or any of its Material Subsidiaries before any Governmental Authority, in which there is a probability of success by the plaintiff on the merits and which, if determined adversely to the Company or such Material Subsidiary, individually or in the aggregate, could be reasonably expected to have a Material Adverse Effect;

 

(c)                                  notice of the modification of any consent, license, approval or authorization referred to in Section 4.01(d); and

 

(d)                                 the occurrence of any ERISA Event that, alone or together with any other ERISA Events that have occurred, could reasonably be expected to result in liability of the Company and its Subsidiaries in an aggregate amount exceeding US$5,000,000.

 

6.03                        Maintenance of Existence; Conduct of Business.

 

(a)                                 The Company will, and will cause each of its Material Subsidiaries to (i) maintain in effect its corporate existence and all registrations necessary therefor; (ii) take all reasonable actions to maintain all rights, privileges, titles to property, franchises and the like necessary or desirable in the normal conduct of its business, activities or operations; and (iii) keep all its Property in good working order or condition; provided, however, that this covenant shall not prohibit any transaction by the Company or any of its Material Subsidiaries otherwise permitted under Section 7.03 nor require the Company to maintain any such right, privilege, title to property or franchise or to preserve the corporate existence of any Subsidiary, if the Company shall determine in good faith that the maintenance or preservation thereof is no longer desirable

 

41

 

in the conduct of the business of the Company or its Material Subsidiaries and that the loss thereof could not reasonably be expected to have a Material Adverse Effect.

 

(b)                                 The Company will, and will cause its Material Subsidiaries to, continue to engage in business of the same general type as now conducted by the Company and its Material Subsidiaries.

 

6.04                        Insurance.  The Company will, and will cause each of its Subsidiaries to, maintain insurance with financially sound, responsible and reputable insurance companies in such amounts and covering such risks as are usually carried by companies of good repute engaged in similar businesses and owning and/or operating properties similar to those owned and/or operated by the Company or such Subsidiary, as the case may be, in the same general areas in which the Company or such Subsidiary owns and/or operates its properties; provided that the Company and its Subsidiaries shall not be required to maintain such insurance if the failure to maintain such insurance could not reasonably be expected to have a Material Adverse Effect.

 

6.05                        Maintenance of Governmental Approvals.  The Company will maintain in full force and effect all governmental approvals (including any exchange control approvals), consents, licenses and authorizations which may be necessary or appropriate under any applicable law or regulation for the conduct of its business (except that the failure to maintain any such approval, consent, license or authorization could not reasonably be expected to have a Material Adverse Effect) or for the performance of this Agreement and for the validity or enforceability hereof.  The Company will file all applications necessary for, and shall use its reasonable best efforts to obtain, any additional authorization as soon as possible after determination that such authorization or approval is required for the Company to perform its obligations hereunder.

 

6.06                        Use of Proceeds.  The Company will use the proceeds of the Term Loans for general corporate purposes and to finance the Permitted Equity Acquisition.

 

6.07                        Application of Cash Proceeds from Sales and Other Dispositions.  The Company will, and will cause each of its Subsidiaries to, apply 100% of the net cash proceeds received from any sale, conveyance, transfer or Disposition of assets (including from any sale, conveyance, transfer or Disposition resulting from casualty or condemnation, and including any amounts received under any insurance policy representing any insurance payments that have not been and will not be applied in payment for repairs or for the replacement of any Property which has been damaged or destroyed) to (i) the repayment of any Indebtedness then outstanding, (ii) investment in assets relating to the Company’s Core Business, or (iii) any combination thereof.

 

6.08                        Payment of Obligations.  The Company will, and will cause each of its Material Subsidiaries to, pay all taxes, assessments and other governmental charges imposed upon it or any of its Property in respect of any of its franchises, businesses, income or profits before any penalty or interest accrues thereon, and pay all claims (including claims for labor, services, materials and supplies) for sums which have become due and payable and which by law have or might become a Lien upon its Property, except if the failure to make such payment has no reasonable likelihood of having a Material Adverse Effect or if such charge or claim is being contested in good faith by appropriate provision promptly initiated and diligently conducted and

 

42

 

if such reserves or other appropriate provision, if any, as shall be required by IFRS shall have been made therefor.

 

6.09                        Pari Passu.  The Company will cause the Term Loans to rank pari passu in all respects with all other unsecured and unsubordinated Indebtedness of the Company, except those ranking senior by operation of law (and not by contract or agreement).

 

6.10                        Compliance with Laws.  The Company will, and will cause each of its Subsidiaries to, comply in all respects with all applicable Requirements of Law, including all applicable Environmental Laws and all Requirements of Law relating to social security and ERISA, including INFONAVIT, IMSS and SAR, except where the necessity of compliance therewith is contested in good faith by appropriate proceedings promptly initiated and diligently conducted and if such reserves or other appropriate provision, if any, as shall be required by IFRS shall have been made therefor except where any non-compliance could not reasonably be expected to have a Material Adverse Effect.

 

6.11                        Maintenance of Books and Records.

 

(a)                                 The Company will, and will cause each of its Mexican Subsidiaries to, maintain books, accounts and other records in accordance with IFRS, and the Company will cause its Subsidiaries organized under laws of any other jurisdiction to maintain their books and records in accordance either with the generally accepted accounting principles of the applicable jurisdiction or IFRS.

 

(b)                                 The Company will, and will cause each Material Subsidiary to, permit representatives of the Administrative Agent to visit and inspect any of their respective properties and to examine their respective corporate, financial and operating books and records, all at such reasonable times during normal business hours and as often as may be reasonably desired upon reasonable advance notice to the Company or such Material Subsidiary; provided, however, that when an Event of Default exists the Administrative Agent may do any of the foregoing at the expense of the Company at any time during normal business hours and without advance notice.

 

6.12                        Take-Out Financing.

 

(a)                                 The Company shall use its commercial reasonable efforts so that the Investment Bank, as soon as practicable during the 6 months after the Closing Date may publicly sell or privately place in one or more offerings or placements debt securities in the international market to refinance the Term Facility (collectively, “Take-Out Financing”).  Upon notice by the Investment Bank (such notice hereinafter referred to as the “Securities Demand”), the Company will, on any one occasion after the date that is six months after the Closing Date, if all the amounts outstanding under the Term Facility shall not have been repaid in full and the Company is not in the process of otherwise effectuating the Take-Out Financing (and is not in violation of Section 6.12(b)), cause the issuance and sale of Take-Out Financing, provided that (i) the interest rate (whether floating or fixed) shall be determined by the Investment Bank in consultation with the Company in light of the then prevailing market conditions for comparable securities of issuers with similar ratings, the maximum tenor shall not exceed ten years and the Take-Out Financing shall be callable no later than on year five; (ii) the Investment Bank and the Company

 

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shall determine whether the Take-Out Financing shall be issued through a public offering or a private placement; (iii) the Take-Out Financing will be issued pursuant to an indenture or indentures, which shall contain such terms, conditions and covenants as are typical and customary for similar financings and as are reasonably satisfactory in all respects to the Investment Bank and the Company; (iv) the Investment Bank in its reasonable discretion, after consultation with the Company, shall reasonably determine the amount of each series of Take-Out Financing to be issued if the Take-Out Financing is to be issued in a series of offerings and/or placements and (v) all other arrangements with respect to the Take-Out Financing, including with respect to optional redemptions and equity claw-back rights shall be reasonably satisfactory in all respects to the Investment Bank and the Company in light of the then prevailing market conditions applicable to issuers with similar ratings.  The Company agrees to do, all things reasonably required or advisable in connection with the offering or arranging of such Take-Out Financing, including without limitation (i) the preparation of a preliminary prospectus or preliminary offering memorandum or preliminary private placement memorandum suitable for use in a customary road show and (ii) the participation of senior management and representatives of the Company and the Investment Bank in a road show.

 

(b)                                 Until the payment in full of all Term Loans outstanding under the Term Facility, the Company will not syndicate or issue, attempt to syndicate or issue, announce or authorize the announcement of the syndication or issuance of, or engage in discussions concerning the syndication or issuance of, any debt facility or any debt security of the Company (other than the Take-Out Financing and working capital debt facilities issued, refinanced or renewed in the bank debt market in the Company’s ordinary course of business), including any refinancings of any 2011 Facilities, without the prior written consent of the Investment Bank.

 

6.13                        Further Assurances; Additional Indebtedness.

 

(a)                                 The Company will, at its own cost and expense, execute and deliver to the Administrative Agent all such other documents, instruments and agreements and do all such other acts and things as may be reasonably required in the opinion of the Administrative Agent or its counsel, to enable the Administrative Agent or any Bank to exercise and enforce its rights under this Agreement and any Term Note and to carry out the intent of this Agreement.

 

(b)                                 The Company will not allow the (i) the Additional Indebtedness to have terms which, taken as a whole, as more restrictive than the terms of the Term Loans under this Agreement and (ii) the Weighted Average Yield applicable to any Additional Indebtedness (other than the Inbursa Pagare) to be greater than the applicable Weighted Average Yield payable pursuant to the terms of this Agreement as amended through the date of such calculation with respect the Term Loans unless the interest rate with respect to the Term Loans is increased so as to cause the then applicable Weighted Average Yield under this Agreement on the Term Loans to equal the Weighted Average Yield then applicable to the Additional Indebtedness (other than the Inbursa Pagare).

 

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ARTICLE VII
 NEGATIVE COVENANTS

 

The Company covenants and agrees that for so long as any Term Loan or other Obligation remains unpaid or any Bank has any Term Commitment hereunder:

 

7.01                        Negative Pledge.  The Company will not, and will not permit any of its Material Subsidiaries to, directly or indirectly, create, incur, assume or suffer to exist any Lien upon or with respect to any of its present or future Property, except:

 

(a)                                 any Lien on any Property (or, in the case of a line of credit secured by inventory or accounts receivable, class of Property) existing on the Closing Date;

 

(b)                                 any Lien on any asset securing all or any part of the purchase price of property or assets (including inventories) acquired or any portion of the cost of construction, development, alteration or improvement of any property, facility or asset or Indebtedness incurred or assumed solely for the purpose of financing all or any part of the cost of acquiring or constructing, developing, altering or improving such property, facility or asset, which Lien attached solely to such property, facility or asset during the period that such property, facility or asset was being constructed, developed, altered or improved or concurrently with or within 120 days after the acquisition, construction, development, alteration or improvement thereof;

 

(c)                                  Liens of a Subsidiary existing prior to the time such Subsidiary became a Subsidiary of the Company which (i) do not secure Indebtedness exceeding the aggregate principal amount of Indebtedness subject to such Lien prior to the time such Subsidiary became a Subsidiary of the Company, (ii) do not attach to any Property other than the Property attached pursuant to such Lien prior to the time such Subsidiary became a Subsidiary of the Company, and (iii) were not created in contemplation of such Subsidiary becoming a Subsidiary of the Company;

 

(d)                                 any Lien on any Property existing thereon at the time of the acquisition of such Property and not created in connection with or in contemplation of such acquisition;

 

(e)                                  any Lien on any Property (or, in the case of a line of credit secured by inventory or accounts receivable, class of Property) securing an extension, renewal, refunding or replacement of Indebtedness or a line of credit secured by a Lien referred to in clause (a), (b), (c) or (d) above; provided that such new Lien is limited to the Property (or, in the case of a line of credit secured by inventory or accounts receivable, class of Property) which was subject to the prior Lien immediately before such extension, renewal, refunding or replacement, and provided that the principal amount of Indebtedness or the amount of the line of credit secured by the prior Lien is not increased immediately before or in contemplation of or in connection with such extension, renewal, refunding or replacement;

 

(f)                                   any Lien securing taxes, assessments and other governmental charges, the payment of which is not yet due or the payment of which is being contested in good faith by appropriate proceedings promptly initiated and diligently conducted and for which such reserves or other appropriate provision, if any, as shall be required by IFRS or, in the case of Material

 

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Subsidiaries organized under laws of any other jurisdiction, the applicable GAAP therein, shall have been made;

 

(g)                                  Liens incurred or deposits made in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other types of social security;

 

(h)                                 statutory Liens of landlords and Liens of carriers, warehousemen, mechanics, materialmen, repairmen or the like arising in the ordinary course of business for sums not yet due or the payment of which is being contested in good faith by appropriate proceedings promptly initiated and diligently conducted and for which such reserves or other appropriate provision, if any, as shall be required by IFRS or, in the case of Material Subsidiaries organized under the laws of any other jurisdiction, the applicable GAAP therein, shall have been made;

 

(i)                                     any Lien created by attachment or judgment, unless the judgment it secures shall not, within 60 days after the entry thereof, have been discharged or execution thereof stayed pending appeal, or shall not have been discharged within 60 days after the expiration of any such stay;

 

(j)                                    any Lien created in connection with Permitted Hedging Transactions on Cash and Cash Equivalent Investments or on the commodity underlying such Permitted Hedging Transaction, to the extent such Permitted Hedging Transaction contemplates the purchase or sale of such commodity; provided that the market value of such assets subject to the Lien shall not exceed, in the aggregate, US$50,000,000 at any time outstanding;

 

(k)                                 Liens to secure working capital borrowings not exceeding in the aggregate the greater of (i) US$100,000,000 (or the equivalent in other currencies) or (ii) (A) 15% of the Consolidated Net Worth of the Company less (B) the amount of any Guaranty Obligations incurred by the Company or any of its Consolidated Subsidiaries for the account of parties other than the Company and its Consolidated Subsidiaries; and

 

(l)                                     Liens in connection with bank overdraft protection, lines of credit or similar arrangements incurred in the ordinary course of business.

 

7.02                        Investments.  The Company will not, and will not permit any of its Material Subsidiaries to, make any Investment, except:

 

(a)                                 Investments existing on the date hereof;

 

(b)                                 Investments relating to the Company’s Core Business other than Investments in any of the Venezuelan Subsidiaries;

 

(c)                                  Cash Equivalent Investments;

 

(d)                                 Investments by the Company in any Subsidiary other than a Venezuelan Subsidiary or by any Material Subsidiary in the Company or in any Subsidiary other than a Venezuelan Subsidiary, except for Investments by the Company or any Material Subsidiary, directly or indirectly, in a Venezuelan Subsidiary made pursuant to the RFB Holdings Acquisition Agreement;

 

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(e)                                  Investments consisting of extensions of credit in the nature of accounts receivable or notes receivable arising from the sale or lease of goods or services in the ordinary course of business;

 

(f)                                   Capital Expenditures;

 

(g)                                  subject to the limitations set forth in Section 7.06 and 7.08, Guaranty Obligations of the Company or any Material Subsidiary in connection with primary obligations of any Subsidiary of the Company other than a Venezuelan Subsidiary;

 

(h)                                 Permitted Hedging Transactions;

 

(i)                                     Investments by any Venezuelan Subsidiary in another Venezuelan Subsidiary with funds of such Venezuelan Subsidiary; and

 

(j)                                    the Permitted Equity Acquisition.

 

7.03                        Mergers, Consolidations, Sales and Leases.  The Company will not merge or consolidate with or into, or convey, transfer or lease its properties and assets substantially as an entirety to any Person, unless immediately after giving effect to any merger or consolidation:

 

(a)                                 no Default or Event of Default has occurred and is continuing; and

 

(b)                                 any Person formed by any such merger or consolidation with the Company or the Person which acquires by conveyance or transfer, or which leases, the properties and assets of the Company substantially as an entirety shall expressly assume in writing the due and punctual payment of the principal of, and interest on all Obligations, according to their terms, and the due and punctual performance of all of the covenants and obligations of the Company under this Agreement by an instrument in form and substance reasonably satisfactory to the Administrative Agent and shall provide an opinion of counsel acceptable to the Administrative Agent, obtained at the Company’s expense, on which the Administrative Agent and the Banks may conclusively rely.

 

7.04                        Restricted Payments.  The Company will not, and will not permit any Subsidiary to, declare or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise) to do so other than a Permitted Equity Acquisition, unless (a) the Company’s Maximum Leverage Ratio, after giving effect to the making of such Restricted Payment and, without duplication, any other Restricted Payment made since the end of the most recent Fiscal Quarter, does not exceed the Maximum Leverage Ratio permitted under Section 7.10 and (b) no Default or Event of Default shall have occurred and be continuing.

 

Notwithstanding the foregoing limitation, the Company or any Subsidiary may declare or make the following Restricted Payments:

 

(a)                                 each Subsidiary may make Restricted Payments to the Company and to wholly-owned Subsidiaries (and, in the case of a Restricted Payment by a non-wholly-owned Subsidiary, to the Company and any Subsidiary and to each other owner of capital stock of such Subsidiary on a pro rata basis based on their relative ownership interests);

 

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(b)                                 the Company and each Subsidiary may declare and make dividend payments or other distributions payable solely in the common stock of such Person;

 

(c)                                  each Subsidiary may purchase, redeem or otherwise acquire shares of its common stock or warrants or options to acquire any such shares with the proceeds received from the substantially concurrent issue of new shares of its common stock;

 

(d)                                 the Company and each Subsidiary may purchase any capital stock otherwise permitted as an Investment pursuant to Section 7.02;

 

(e)                                  the Company may purchase the stock of Gimsa; and

 

(f)                                   the Company and Gimsa may each purchase any shares of its own capital stock.

 

7.05                        Limitations on Ability to Prohibit Dividend Payments by Subsidiaries.  The Company will not, and will not permit its Material Subsidiaries to, enter into any agreement that, by its terms, expressly prohibits the payment of dividends or other distributions to the Company or the making of loans to the Company, other than in connection with the renewal or extension of any agreement listed in Schedule 5.12(b); provided that (i) the restrictions or prohibitions under such agreement are not increased as a result of such renewal or extension and (ii) in connection with any such renewal or extension of an agreement that does not already contain any such prohibition, the Company will not, and will not permit its Material Subsidiaries to, agree to or accept the inclusion of such prohibition.

 

7.06                        Limitation on Incurrence of Indebtedness by Subsidiaries.  The Company will not permit any Consolidated Subsidiary to create, incur, assume or suffer to exist any Indebtedness if, at the time of such incurrence and after giving pro forma effect thereto, the aggregate Indebtedness of all Consolidated Subsidiaries would exceed an amount equal to 30% of the Indebtedness of the Company and its Consolidated Subsidiaries.

 

7.07                        Transactions with Affiliates.  The Company will not, and will not cause or permit any of its Material Subsidiaries to, enter into any transaction with any Affiliate of the Company, except upon fair and reasonable terms no less favorable to the Company or such Subsidiary than are obtainable in a comparable arm’s-length transaction with a Person not an Affiliate of the Company.  For the avoidance of doubt, the transactions contemplated in the ADM Acquisition Agreement and the RFB Holdings Acquisition Agreement shall be considered to be upon fair and reasonable terms and no less favorable to the Company than are obtainable in a comparable arm’s-length transaction with a Person not an Affiliate of the Company.

 

7.08                        No Subsidiary Guarantees of Certain Indebtedness.  Other than in connection with its purchase of corn for its corn flour production or wheat for its wheat flour production, the Company will not permit any of its Material Subsidiaries, directly or indirectly, to guarantee or otherwise become liable or responsible for, in any manner, any Indebtedness of the Company.

 

7.09                        Interest Coverage Ratio.  The Company shall not permit its Interest Coverage Ratio, as of the last day of any Fiscal Quarter, to be less than 2.50 to 1.00.

 

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7.10                        Maximum Leverage Ratio.  The Company shall not permit its Maximum Leverage Ratio for any Measurement Period within the periods mentioned below, to be:

 

	
Period
    	
 
    	
Leverage Ratio
    
	
From Closing Date to September 30, 2013
    	
 
    	
Greater than 4.75x to 1.00x
    
	
From October 1, 2013 to the Maturity   Date
    	
 
    	
Greater than 4.5x to 1.00x
    

 

7.11                        Limitation on Hedging Transactions.  Neither the Company nor any of its Subsidiaries shall enter into any Hedging Transactions other than Permitted Hedging Transactions.

 

ARTICLE VIII
 EVENTS OF DEFAULT

 

8.01                        Events of Default.  Any of the following events shall constitute an “Event of Default”:

 

(a)                                 Non-Payment.  The Company fails to pay (i) when and as required to be paid herein, any amount of principal of any Term Loan, or (ii) within five days after the same becomes due, any interest or any other amount payable hereunder or under any other Loan Document; or

 

(b)                                 Representation or Warranty.  Any representation or warranty by the Company made herein or in any other Loan Document, or which is contained in any certificate, document or financial or other statement by the Company or any Responsible Officer of the Company, furnished at any time under this Agreement or any other Loan Document, is incorrect in any material respect on or as of the date made; or

 

(c)                                  Specific Defaults.  The Company (i) fails to perform or observe any term, covenant or agreement contained in Section 6.02(a), 6.03, 6.05, 6.06 or 6.09, fails to perform or observe any term, covenant or agreement contained in Article VII (other than Section 7.05, 7.07 or 7.08) or fails to deliver new Term Notes in exchange for the existing Term Notes as provided herein or (ii) fails to observe the covenant set forth in Section 7.11, and such default continues unremedied for a period of 3 Business Days; or

 

(d)                                 Other Defaults.  The Company fails to perform or observe any other term or covenant contained in this Agreement or in any other Loan Document, and such default continues unremedied for a period of 30 days after the date upon which written notice thereof is given to the Company by the Administrative Agent or any Bank; or

 

(e)                                  Cross-Default.  The Company or any of its Material Subsidiaries (i) fails to make any payment in respect of any Indebtedness (other than Indebtedness hereunder and under the Term Notes) having an aggregate principal amount of more than US$20,000,000 (or the equivalent in another currency) when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) and such failure continues after the applicable grace period,

 

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if any, specified in the agreement or instrument relating to such Indebtedness; or (ii) fails to perform or observe any other condition or covenant, or any other event shall occur or condition exist, under any agreement or instrument relating to any such Indebtedness, and such failure continues after the applicable grace or notice period, if any, specified in the relevant document on the date of such failure if the effect of such failure, event or condition is to cause, or to permit the holder or holders of such Indebtedness to cause, such Indebtedness to be declared to be due and payable prior to its stated maturity; or

 

(f)                                   Involuntary Proceedings. (i) A decree or order by a court having jurisdiction has been entered adjudging the Company or any Material Subsidiary as bankrupt or insolvent, or approving as properly filed a petition seeking reorganization, concurso mercantil, quiebra or bankruptcy of the Company or any Material Subsidiary and such decree or order shall have continued undischarged and unstayed for a period of 90 days; or (ii) a decree or order of a court having jurisdiction for the appointment of a receiver or liquidator or visitador, conciliador or sindico or trustee or assignee in bankruptcy or insolvency or any other similar official of the Company or any Material Subsidiary or of any substantial part of the Property of the Company or any Material Subsidiary or for the winding up or liquidation of the affairs of the Company or any Material Subsidiary has been entered, and such decree or order has continued undischarged and unstayed for a period of 90 days; or

 

(g)                                  Voluntary Proceedings.  The Company or any Material Subsidiary institutes proceedings to be adjudicated a bankrupt or consents to the filing of a bankruptcy proceeding against it, or files a petition or answer or consent seeking reorganization, concurso mercantil, quiebra or bankruptcy or consents to the filing of any such petition, or consents to the appointment of a receiver or liquidator or trustee or visitador, conciliador or sindico or assignee in bankruptcy or insolvency or any other similar official of it or any substantial part of its Property; or

 

(h)                                 Monetary Judgments.  One or more judgments, orders, attachments or embargos, decrees or arbitration awards are entered against the Company or any of its Material Subsidiaries involving in the aggregate a liability (to the extent not covered by independent third-party insurance as to which the insurer does not dispute coverage) as to any single or related series of transactions, incidents or conditions, of US$20,000,000 or more (or the equivalent thereof in another currency), and the same shall remain unsatisfied, unvacated or unstayed pending appeal for a period of 90 days after the entry thereof; or

 

(i)                                     Unenforceability.  This Agreement or any of the Term Notes for any reason is suspended or revoked or ceases to be in full force and effect in accordance with its respective terms or the binding effect or enforceability thereof is contested by the Company, or the Company denies that it has any further liability or obligation hereunder or thereunder or in respect hereof or thereof, or performance by the Company under any of the Loan Documents shall become illegal, or the Company shall assert that any obligation under a Loan Document has become illegal; or

 

(j)                                    Expropriation.  The Mexican government, the Mexican Congress or an agency or instrumentality thereof nationalizes, seizes or expropriates all or a substantial portion of the assets of the Company and its Subsidiaries, taken as a whole, or of the common stock of the

 

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Company, or the Mexican government or an agency or instrumentality thereof assumes control of the business and operations of the Company and its Subsidiaries, taken as a whole; or

 

(k)                                 Change of Control.  Graciela Moreno Hernández and/or the respective family members (including spouses, siblings and other lineal descendants, estates and heirs, or any trust or other investment vehicle for the primary benefit of any such Person or their respective family members or heirs) of the deceased Roberto Gonzalez Barrera and/or Graciela Moreno Hernandez, fail to elect the majority of the Board of the Directors of the Company.

 

8.02                        Remedies.  (a)                   If any Event of Default occurs, the Administrative Agent shall, at the request of, or may, with the consent of, the Majority Banks, take any or all of the following actions:

 

(i)             declare the unpaid principal amount of all outstanding Term Loans, all interest accrued and unpaid thereon, and all other Obligations owing or payable hereunder or under any other Loan Document to be immediately due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by the Company; and

 

(ii)          exercise on behalf of itself and the Banks all rights and remedies available to it and the Banks under the Loan Documents or applicable law;

 

provided, however, that upon the occurrence of any event specified in Section 8.01(f) or (g), the unpaid principal amount of all outstanding Term Loans and all interest and other Obligations shall automatically become due and payable without further act of the Administrative Agent or any Bank.

 

(b)                                 After the exercise of remedies provided for in this Section 8.02 (or after the Term Loans have automatically become immediately due and payable), any amounts received on account of the Obligations shall 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 Attorney Costs 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 and interest) payable to the Banks (including Attorney Costs and amounts payable under Article III), ratably among them in proportion to the amounts described in this clause Second payable to them;

 

(iii)       Third, to payment of that portion of the Obligations constituting accrued and unpaid interest on the Term Loans, ratably among the Banks in accordance with their pro rata share of such Term Loans and 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 Term Loans, ratably among the Banks in accordance with their pro rata share of the total Term Loans outstanding and in proportion to the respective amounts described in this clause Fourth held by them; and

 

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(v)         Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to the Company or as otherwise required by law.

 

8.03                        Rights Not Exclusive.  The rights provided for in this Agreement and the other Loan Documents are cumulative and are not exclusive of any other rights, powers, privileges or remedies provided by law or in equity, or under any other instrument, document or agreement now existing or hereafter arising.

 

ARTICLE IX
 THE ADMINISTRATIVE AGENT

 

9.01                        Appointment and Authorization.  Each Bank hereby irrevocably appoints, designates and authorizes Goldman Sachs, as the Administrative Agent under this Agreement, and each Bank hereby irrevocably authorizes the Administrative Agent to take such action on its behalf under the provisions of this Agreement and each other Loan Document and to exercise such powers and perform such duties as are expressly delegated to it by the terms of this Agreement or any other Loan Document, together with such powers as are reasonably incidental thereto. Furthermore, each Bank hereby authorizes and appoints the Administrative Agent as an agent (comisionista) under the terms of Articles 273 and 274 of the Mexican Commerce Code (Código de Comercio) to execute, deliver and perform any Loan Document to which the Administrative Agent is a party, as well as any other document, agreement or instrument necessary or convenient for the delivery, perfection, execution and foreclosure of the Loan Documents or Lien that may be granted in connection with this Agreement.  Notwithstanding any provision to the contrary contained elsewhere in this Agreement or in any other Loan Document, the Administrative Agent shall not have any duties or responsibilities, except those expressly set forth herein, nor shall the Administrative Agent have or be deemed to have any fiduciary relationship with any Bank or any Participant, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against the Administrative Agent. Without limiting the generality of the foregoing sentence, the use of the term “agents” herein and in the other Loan Documents 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 merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties.

 

9.02                        Delegation of Duties.  The Administrative Agent may execute any of its duties under this Agreement or any other Loan Document by or through agents, employees or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. The Administrative Agent shall not be responsible for the negligence or misconduct of any agent or attorney-in-fact that it selects with reasonable care.

 

9.03                        Liability of Administrative Agent.  Neither the Administrative Agent nor any of its Affiliates, officers, directors, employees, agents or attorneys-in-fact shall (a) be liable for any action taken or omitted to be taken by it or any such Person under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby (except for its own gross negligence or willful misconduct), or (b) be responsible in any manner to any Bank or any Participant for any recital, statement, representation or warranty made by the Company, or

 

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any officer thereof, contained in this Agreement or in 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 the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document, or for any failure of the Company to perform its obligations hereunder or thereunder.  Except as otherwise expressly stated therein, the Administrative Agent shall not be under any obligation to any Bank or any Participant to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the properties, books or records of the Company or any of its Subsidiaries.

 

9.04                        Reliance by Administrative Agent.

 

(a)                                 The Administrative Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, communication, signature, resolution, representation, notice, consent, certificate, affidavit, letter, telegram, facsimile, telex, teletype or telephone message, electronic mail message, statement or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons, and upon advice and statements of legal counsel (including counsel to the Company), 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 Majority Banks as it deems appropriate and, if it so requests, it shall first be indemnified to its satisfaction by the Banks against any and all liability and expense which may be incurred by it by reason of failing to take, 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 or any other Loan Document in accordance with a request or consent of the Majority Banks (or such greater number of Banks as may be expressly required hereby) and such request and any action taken or failure to act pursuant thereto shall be binding upon all of the Banks.

 

(b)                                 For purposes of determining compliance with the conditions specified in Section 4.01, each Bank that has executed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter either sent by the Administrative Agent to such Bank for consent, approval, acceptance or satisfaction, or required thereunder to be consented to or approved by or acceptable or satisfactory to such Bank unless the Administrative Agent shall have received notice from such Bank prior to the proposed Closing Date specifying its objection thereto.

 

9.05                        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, except with respect to defaults in the payment of principal, interest and fees required to be paid to the Administrative Agent for the account of the Banks, unless the Administrative Agent shall have received written notice from a Bank or the Company referring to this Agreement, describing such Default or Event of Default and stating that such notice is a “Notice of Default”. The Administrative Agent will notify the Banks of its receipt of any such notice. The Administrative Agent shall take such action with respect to such Default or Event of Default as may be directed by the Majority Banks in accordance with Article VIII; provided, however, that unless and until the Administrative

 

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Agent has received any such direction, 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 or in the best interest of the Banks.

 

9.06                        Credit Decision.  Each Bank acknowledges that neither the Administrative Agent nor any of its Affiliates, officers, directors, employees, agents or attorneys-in-fact have made any representation or warranty to it, and that no act by the Administrative Agent hereinafter taken, including any consent to and acceptance of any assignment or any review of the affairs of the Company and its Subsidiaries, shall be deemed to constitute any representation or warranty by the Administrative Agent to any Bank as to any matter, including whether the Administrative Agent has disclosed material information in its possession. Each Bank represents to the Administrative Agent that it has, independently and without reliance upon the Administrative Agent and based on such documents and information as it has deemed appropriate, made its own appraisal of an investigation into the business, prospects, operations, property, financial and other condition and creditworthiness of the Company and its Subsidiaries and all applicable bank regulatory laws relating to the transactions contemplated hereby, and made its own decision to enter into this Agreement and to extend credit to the Company hereunder. Each Bank also represents that it will, independently and without reliance upon the Administrative Agent and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make such investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of the Company and its Subsidiaries. Except for notices, reports and other documents expressly herein required to be furnished to the Banks by the Administrative Agent, the Administrative Agent shall not have any duty or responsibility to provide any Bank with any credit or other information concerning the business, prospects, operations, property, financial and other condition or creditworthiness of the Company which may come into the possession of any of the Administrative Agent or any of its Affiliates, officers, directors, employees, agents or attorneys-in-fact.

 

9.07                        Indemnification.  Whether or not the transactions contemplated hereby are consummated, the Banks shall indemnify upon demand the Administrative Agent and its Affiliates, directors, officers, agents and employees (to the extent not reimbursed by or on behalf of the Company and without limiting the obligation of the Company to do so), pro rata, and hold the Administrative Agent harmless from and against any and all Indemnified Liabilities; provided, however, that no Bank shall be liable for the payment to the Administrative Agent of any portion of such Indemnified Liabilities to the extent determined in a final, nonappealable judgment by a court of competent jurisdiction to have resulted from the Administrative Agent’s gross negligence or willful misconduct. Without limitation of the foregoing, each Bank shall reimburse the Administrative Agent upon demand for its ratable share of any costs or out-of-pocket expenses (including Attorney Costs) incurred by the Administrative Agent in connection with the preparation, execution, delivery, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, any other Loan Document, or any document contemplated by or referred to herein, to the extent that the Administrative Agent is not reimbursed for such expenses by or on behalf of the Company.  The undertaking in this Section

 

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9.07 shall survive the payment of all other Obligations and the resignation of the Administrative Agent.

 

9.08                        Administrative Agent in Individual Capacity.  Goldman Sachs and its Affiliates may make loans to, issue letters of credit for the account of, accept deposits from, acquire equity interests in and generally engage in any kind of banking, trust, financial advisory, underwriting or other business with the Company and any of the Company’s Affiliates as though Goldman Sachs were not the Administrative Agent hereunder and without notice to or consent of the Banks.  The Banks acknowledge that, pursuant to such activities, Goldman Sachs or its Affiliates may receive information regarding the Company or any of its Affiliates (including information that may be subject to confidentiality obligations in favor of the Company or such Affiliate) and acknowledge that the Administrative Agent shall be under no obligation to provide such information to them. With respect to its Term Loans, Goldman Sachs shall have the same rights and powers under this Agreement as any other Bank and may exercise such rights and powers as though it were not the Administrative Agent, and the terms “Bank” and “Banks” include Goldman Sachs in its individual capacity.

 

9.09                        Successor Administrative Agent.  The Administrative Agent may resign as Administrative Agent upon 30 days’ notice to the Banks. If the Administrative Agent resigns under this Agreement, the Majority Banks shall appoint from among the Banks a successor agent for the Banks which successor agent shall be subject to the prior approval of the Company at all times other than during the existence of an Event of Default (which consent of the Company shall not be unreasonably withheld or delayed).  If no successor agent is appointed prior to the effective date of the resignation of the Administrative Agent, the Administrative Agent may appoint, after consulting with the Banks and the Company, a successor agent from among the Banks. Upon the acceptance of its appointment as successor agent hereunder, such successor agent shall succeed to all the rights, powers and duties of the retiring Administrative Agent and the term “Administrative Agent” shall mean such successor agent and the retiring Administrative Agent’s appointment, powers and duties as Administrative Agent shall be terminated. After any retiring Administrative Agent’s resignation hereunder as Administrative Agent, the provisions of this Article IX and Sections 10.04 and 10.05 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Administrative Agent under this Agreement. If no successor agent has accepted appointment as Administrative Agent by the date which is 30 days following a retiring Administrative Agent’s notice of resignation, the retiring Administrative Agent’s resignation shall nevertheless thereupon become effective and the Banks shall perform all of the duties of the Administrative Agent hereunder until such time, if any, as the Majority Banks appoint a successor agent as provided for above.

 

ARTICLE X
 MISCELLANEOUS

 

10.01                 Amendments and Waivers.  No amendment or waiver of any provision of this Agreement or any other Loan Document, and no consent to any departure by the Company therefrom, shall be effective unless the same shall be in writing and signed by the Majority Banks and the Company and acknowledged by the Administrative Agent, and then any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that no such waiver, amendment or consent shall, unless signed

 

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by all the Banks and the Company and acknowledged by the Administrative Agent, do any of the following:

 

(a)                                 [Reserved];

 

(b)                                 postpone or delay any date fixed by this Agreement or any Term Note for any payment of principal, interest, fees or other amounts hereunder or under any other Loan Document;

 

(c)                                  reduce the principal of, or the rate of interest specified herein on, any Term Loan, or reduce the amount or change the method of calculation of any fees or other amounts payable hereunder or under any other Loan Document;

 

(d)                                 amend, modify or waive any condition set forth in Section 4.01;

 

(e)                                  amend or modify the definition of “Majority Banks” or any other provision of this Agreement specifying the percentage of Term Commitments or the percentage or number of Banks required to amend, waive or otherwise modify any rights hereunder or make any determination or take any action hereunder;

 

(f)                                   amend, modify or waive any provision of this Section 10.01; and

 

(g)                                  amend, modify or waive any provision of Section 2.13 in a manner that would alter the pro rata sharing of payments required thereby;

 

provided, further, that no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to the Majority Banks or all the Banks, as the case may be, affect the rights or duties of the Administrative Agent under this Agreement or any other Loan Document, including but not limited to Article IX.

 

10.02                 Notices.

 

(a)                                 Except as otherwise expressly provided herein, all notices, requests, demands or other communications to or upon any party hereunder shall be in English and in writing (including facsimile transmission and, subject to paragraph (c) below, electronic mail) and shall be mailed by an internationally recognized overnight courier service, transmitted by facsimile or electronic mail or delivered by hand to such party: (i) in the case of the Company or the Administrative Agent, at its address, facsimile number or electronic mail address set forth on Schedule 10.02 hereof or at such other address, facsimile number or electronic mail address as such party may designate by notice to the other parties hereto and (ii) in the case of any Bank, at its address, facsimile number or electronic mail address set forth in the Administrative Questionnaire or at such other address, facsimile number or electronic mail address as such Bank may designate by notice to the Company and the Administrative Agent.

 

(b)                                 Unless otherwise expressly provided for herein, each such notice, request, demand or other communication shall be effective upon the earlier to occur of (i) actual receipt and (ii) (A) if sent by overnight courier service or delivered by hand, when signed for by or on behalf of the party to whom such notice is directed, (B) if given by facsimile, when transmitted

 

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to the facsimile number specified pursuant to paragraph (a) above and confirmation of receipt of a legible copy is received by telephone, return facsimile or electronic mail, or (C) if given by any other means, when delivered at the address specified pursuant to paragraph (a) above; provided, however, that notices to the Administrative Agent under Article II, III, IX or X shall not be effective until received. Delivery by any Bank by facsimile transmission of an executed counterpart of any amendment or waiver or any provision of this Agreement or the Term Notes or any other Loan Document to be executed and delivered hereunder shall be effective as delivery of a manually executed counterpart thereof.

 

(c)                                  Electronic mail and internet websites may be used only to distribute routine communications, such as financial statements and other information, and to distribute Loan Documents for execution by the parties thereto, and may not be used for any other purpose.

 

(d)                                 Any agreement of the Administrative Agent and the Banks herein to receive certain notices by telephone, facsimile transmission or electronic mail is solely for the convenience and at the request of the Company.  The Administrative Agent and the Banks shall be entitled to rely on the authority of any Person that according to the books and records of the Administrative Agent is a Person authorized by the Company to give such notice and the Administrative Agent and the Banks shall not have any liability to the Company or any other Person on account of any action taken or not taken by the Administrative Agent or the Banks in reliance upon such telephonic, facsimile or electronic mail notice.  The obligation of the Company to repay the Term Loans shall not be affected in any way or to any extent by any failure by the Administrative Agent and the Banks to receive written confirmation of any telephonic, facsimile or electronic mail notice or the receipt by the Administrative Agent and the Banks of a confirmation which is at variance with the terms understood by the Administrative Agent and the Banks to be contained in the telephonic, facsimile or electronic mail notice.

 

10.03                 No Waiver; Cumulative Remedies.  No failure to exercise and no delay in exercising, on the part of the Administrative Agent or any Bank, any right, remedy, power or privilege hereunder or under any Loan Document, shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder or thereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.  The rights and remedies herein provided are cumulative and not exclusive of any rights or remedies provided by law.

 

10.04                 Costs and Expenses.  The Company agrees:

 

(a)                                 to pay or reimburse the Administrative Agent (i) upon demand for all reasonable and documented costs and expenses (including Attorney Costs) incurred by the Administrative Agent and the Banks in connection with the preparation, negotiation and execution of the Loan Documents (whether or not consummated) and (ii) within five Business Days after demand for all reasonable and documented costs and expenses incurred by the Administrative Agent in connection with any amendment, supplement, waiver or modification requested by the Company (in each case, whether or not consummated) to this Agreement or any other Loan Document, including reasonable Attorney Costs incurred by the Administrative Agent with respect thereto as agreed to in writing from time to time; and

 

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(b)                                 to pay or reimburse the Administrative Agent and each Bank within five Business Days after demand for all reasonable costs and expenses (including Attorney Costs) incurred by them in connection with the enforcement, attempted enforcement, or preservation of any rights or remedies under this Agreement or any other Loan Document during the existence of an Event of Default or after acceleration of the Term Loans (including in connection with any “workout” or restructuring regarding the Term Loans, and including in any insolvency or bankruptcy proceeding involving the Company).

 

10.05                 Indemnification by the Company.  Whether or not the transactions contemplated hereby are consummated, the Company agrees to indemnify and hold harmless the Administrative Agent, each Bank and their respective Affiliates, directors, officers, employees, counsel, agents and attorneys-in-fact (collectively the “Indemnitees”) from and against (a) any and all direct, punitive and consequential damages, claims, demands, actions or causes of action that are asserted against any Indemnitee by any Person (other than the Administrative Agent or any Bank) relating, directly or indirectly, to a claim, demand, action or cause of action that such Person asserts or may assert against the Company or any of its respective officers or directors; (b) any and all claims, demands, actions or causes of action that may at any time (including at any time following repayment of the Obligations and the resignation of the Administrative Agent or the replacement of any Bank) be asserted or imposed against any Indemnitee, arising out of or relating to, the Loan Documents, the Term Commitments, the use or contemplated use of the proceeds of any Term Loan, or the relationship of the Administrative Agent and the Banks under this Agreement or any other Loan Document; (c) any administrative or investigative proceeding by any Governmental Authority arising out of or related to a claim, demand, action or cause of action described in clause (a) or (b) above; (d) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by the Company or any of its Subsidiaries or any Environmental Liability related in any way to the Company or any of its Subsidiaries and (e) any and all liabilities (including liabilities under indemnities), losses, costs or expenses (including Attorney Costs) that any Indemnitee suffers or incurs as a result of the assertion of any foregoing claim, demand, action, cause of action or proceeding, or as a result of the preparation of any defense in connection with any foregoing claim, demand, action, cause of action or proceeding, in all cases, whether or not such claim, demand, action, cause or action or proceeding is brought by you, and whether or not an Indemnitee is a party to such claim, demand, action, cause of action or proceeding (all the foregoing, collectively, the “Indemnified Liabilities”), in all cases, whether or not caused by or arising, in whole or in part, out of the negligence of the Indemnitee; provided that no Indemnitee shall be entitled to indemnification for any claim that has been found by a final, non-appealable judgment of a court of competent jurisdiction to have been caused by its own gross negligence or willful misconduct or for any loss asserted against it by another Indemnitee, provided, however, that in no event will such Indemnitee have any liability for any indirect, special or consequential or punitive damages.  No Indemnitee shall be liable for any damages arising from the use by others of any information or other materials obtained through IntraLinks or other similar information transmission systems in connection with this Agreement, nor shall any Indemnitee have any liability for any indirect or consequential damages relating to this Agreement or any other Loan Document or arising out of its activities in connection herewith or therewith (whether before or after the Closing Date). All amounts due under this Section 10.05 shall be payable within ten (10) Business Days after demand therefor.  The agreements in this Section 10.05 shall survive the termination of the Term Commitments and repayment of all Obligations.

 

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10.06                 Payments Set Aside.  To the extent that the Company makes a payment to the Administrative Agent or any Bank, or the Administrative Agent or any Bank exercises its right of set-off, and such payment or the proceeds of such set-off or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Administrative Agent or such Bank in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any insolvency, “concurso mercantil” or bankruptcy proceeding involving the Company 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 set-off had not occurred, and (b) each Bank severally agrees to pay to the Administrative Agent upon demand its pro rata share of any amount so recovered from or repaid by the Administrative Agent.

 

10.07                 Successors and Assigns.  The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, except that the Company may not assign or transfer any of its rights or obligations under this Agreement without the prior written consent of the Administrative Agent and each Bank (and any attempted assignment or transfer by the Company without such consent 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 and, to the extent expressly contemplated hereby, the Indemnitees) any legal or equitable right, remedy or claim under or by reason of this Agreement.

 

10.08                 Assignments, Participations, Etc.

 

(a)                                 Any Bank may, with the written consent of the Company and the Administrative Agent, which consents shall not be unreasonably withheld, conditioned or delayed and, which consent of the Company shall not be required if a Default or Event of Default shall have occurred and be continuing (it being understood (x) that any resulting obligation to pay increased costs or reserves pursuant to Section 3.01, 3.04 or 3.06 as of the date of any assignment would justify the Company’s refusal to consent thereto, (y) other than in the case of a failure of an assigning Bank to comply with clause (C) below, that the consent of the Company will be deemed given unless the Company replies in writing to any request for consent within five Business Days after actual receipt of such request and (z) with respect to Eligible Assignees described in clause (f) of the definition thereof, that any assignment to any such Eligible Assignee is subject to the Company’s absolute discretion), and, if demanded by the Company pursuant to Section 3.09 shall, at any time assign to one or more Eligible Assignees (provided, however, that no written consent of the Company or the Company or the Administrative Agent shall be required in connection with any assignment by a Bank to an Affiliate of the assigning Bank so long as the Company shall not be required to pay any further amounts pursuant to Section 3.01, 3.04 or 3.06 than would have been required to be paid but for such assignment) (each an “Assignee”) all or any part of its Term Loan and the other rights and obligations of such Bank hereunder, in a minimum amount of US$5,000,000;   provided, however, that (A) if a Default or Event of Default shall have occurred and be continuing, any Bank may assign each of its Term Loans to any third party, (B) following any assignment, the provisions of Sections 10.04 and 10.05 shall inure to the benefit of the assigning Bank to the extent related to events, circumstances, claims, costs, expenses or liabilities arising prior to such assignment, (C) in the

 

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case of an assignment to an entity described in clause (f) of the definition of Eligible Assignee, the relevant Bank shall furnish to the Company information and documents relating to the proposed assignee as the Company may request and (D) the Company and the Administrative Agent may continue to deal solely and directly with such Bank in connection with the interest so assigned to an Assignee and the assignment will not be effective until (i) written notice of such assignment, together with payment instructions, addresses and related information with respect to the Assignee, shall have been given to the Company and the Administrative Agent by the assigning Bank and the Assignee; (ii) the assigning Bank and its Assignee shall have delivered to the Company and the Administrative Agent an Assignment and Acceptance in the form of Exhibit E (“Assignment and Acceptance”), together with any Term Note subject to such assignment; (iii) the assigning Bank or the Assignee has paid to the Administrative Agent a processing fee in the amount of US$3,500 (such processing fee being payable for all assignments, including, but not limited to, an assignment by a Bank to another Bank); and (iv) except if an Event of Default has occurred and is continuing, the Assignee has delivered to the Company a copy of the tax residence certificate evidencing residency as set forth above.

 

(b)                                 From and after the date that the Administrative Agent notifies the assigning Bank that it has received (and provided its consent with respect to) an executed Assignment and Acceptance and payment of the processing fee, (i) the Assignee thereunder shall be a party hereto and, to the extent that rights and obligations hereunder have been assigned to it pursuant to such Assignment and Acceptance, shall have the rights and obligations of a Bank under the Loan Documents, and (ii) the assigning Bank shall, to the extent that rights and obligations hereunder and under the other Loan Documents have been assigned by it pursuant to such Assignment and Acceptance, relinquish its rights and be released from its obligations under the Loan Documents.

 

(c)                                  The Administrative Agent, acting solely for this purpose as an agent of the Company, shall maintain at the Administrative Agent’s Payment Office a copy of each Assignment and Acceptance delivered to it and a register for the recordation of the names and addresses of the Banks, and the Term Commitments of, and principal amount of the Term Loans owing to, each Bank pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive, absent manifest error, and the Company, the Administrative Agent and the Banks may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Bank hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.  The Register shall be available for inspection by the Company and any Bank, at any reasonable time and from time to time upon reasonable prior notice.

 

(d)                                 Within ten Business Days after its receipt of notice by the Administrative Agent that it has received an executed Assignment and Acceptance and payment of the processing fee (and provided that it consents to such assignment in accordance with Section 10.08(a)), the Company shall execute and deliver to the Administrative Agent a new Term Note in the amount of such Assignee’s assigned Term Loan and, if the assigning Bank has retained a portion of its Term Loan, replacement Term Notes for the assignor Bank (such Term Notes to be in exchange for, but not in payment of, the Term Notes held by the assigning Bank). Immediately upon each Assignee’s making its processing fee payment under the Assignment and Acceptance, this Agreement shall be deemed to be amended to the extent, but only to the extent, necessary to reflect the addition of the Assignee and the resulting adjustment of the Term Loans.

 

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(e)                                  Any Bank (the “Originating Bank”) may at any time sell without any consent, but with the prior written notice to the Company, to one or more entities that would have been an Eligible Assignee (a “Participant”) participating interests in all or any part of its Term Loans; provided, however, that (i) the Originating Bank’s obligations under this Agreement shall remain unchanged, (ii) the Originating Bank shall remain solely responsible for the performance of such obligations, (iii) the Company and the Administrative Agent shall continue to deal solely and directly with the Originating Bank in connection with the Originating Bank’s rights and obligations under this Agreement and the other Loan Documents and (iv) no Bank shall transfer or grant any participating interest under which the Participant has rights to approve any amendment to, or any consent or waiver with respect to, this Agreement or any other Loan Document, except to the extent such amendment, consent or waiver would require unanimous consent of the Banks as described in the first proviso to Section 10.01 and provided, further, that the Participant shall, at the time that it purchases the Participation and from time to time thereafter as the Company may reasonably request, provide to the Company documentation evidencing that it is an Eligible Assignee.  In the case of any such participation, the Bank selling such participation shall be entitled to agree to pay over to the Participant any amounts paid to such Bank pursuant to Sections 3.01 and 3.04, and if amounts outstanding under this Agreement are due and unpaid, or shall have been declared or shall have become due and payable upon the occurrence of an Event of Default, each Participant shall be deemed to have the right of set-off in respect of its participating interest in amounts owing under this Agreement to the same extent as if the amount of its participating interest were owing directly to it as a Bank under this Agreement; provided that such agreement or instrument may provide that such Bank will not, without the consent of the Participant, agree to any amendment, waiver or other modification that would (i) postpone any date upon which any payment of money is scheduled to be paid to such Participant or (ii) reduce the principal, interest, fees or other amounts payable to such Participant. Subject to paragraph (f) of this Section 10.08, the Company agrees that each Participant shall be entitled to the benefits of Sections 3.01, 3.04 and 3.05 to the same extent as if it were a Bank and had acquired its interest by assignment pursuant to paragraph (a) of this Section 10.08.  To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 10.10 as though it were a Bank, provided such Participant agrees to be subject to Section 2.13 as though it were a Bank.

 

(f)                                   A Participant shall not be entitled to receive any greater payment under Section 3.01, 3.04, 3.05 or 3.06 than the applicable Bank 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 Company’s prior written consent.

 

(g)                                  Any Bank 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 Bank, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release a Bank from any of its obligations hereunder or substitute any such pledgee or assignee for such Bank as a party hereto.

 

(h)                                 If the consent of the Company to an assignment or to an Assignee is required hereunder (including a consent to an assignment which does not meet the minimum assignment threshold specified in Section 10.08(a)), the Company shall be deemed to have given its consent

 

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five Business Days after the date notice thereof has been actually received by the Company unless such consent is expressly refused by the Company prior to such fifth Business Day.

 

10.09                 Confidentiality.  Each of the Administrative Agent and the Banks agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) 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 Information and instructed to keep such Information confidential); (b) to the extent requested by any regulatory or self-regulatory authority including any securities exchange; (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 or any suit, action or proceeding relating to this Agreement or the enforcement of rights hereunder; (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 direct or indirect contractual counterparty or prospective counterparty (or such contractual counterparty’s or prospective counterparty’s professional advisor) to any credit derivative transaction relating to obligations of the Company; (g) with the consent of the Company; or (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of this section or (ii) becomes available to the Administrative Agent or any Bank on a nonconfidential basis from a source other than the Company. In addition, the Administrative Agent and the Banks may disclose the existence of this Agreement and information about this Agreement to market data collectors, similar service providers to the lending industry, and service providers to the Administrative Agent and the Banks in connection with the administration and management of this Agreement, the other Loan Documents, the Term Commitments, and the Term Loans. For the purposes of this section, “Information” means all information received from the Company relating to the Company and/or its business, other than any such information that is available to the Administrative Agent or any Bank on a nonconfidential basis prior to disclosure by the Company; provided that, in the case of information received from the Company after the date hereof, such information shall be deemed to be confidential unless it is clearly identified in writing at the time of delivery as not confidential or it is apparent on its face that such information is not confidential.  Any Person required to maintain the confidentiality of Information as provided in this section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

 

10.10                 Set-off.  In addition to any rights and remedies of the Banks provided by law, if an Event of Default exists or the Term Loans have been accelerated, each Bank is authorized at any time and from time to time, without prior notice to the Company, any such notice being waived by the Company to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final in any currency, matured or unmatured) at any time held by, and other indebtedness at any time owing by, such Bank to or for the credit or the account of the Company against any and all Obligations owing to such Bank, now or hereafter existing, irrespective of whether or not the Administrative Agent or such Bank shall have made demand under this Agreement or any Loan Document and although such Obligations may be contingent or unmatured. Each Bank agrees promptly to notify the Company

 

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and the Administrative Agent after any such set-off and application made by such Bank; provided, however, that the failure to give such notice shall not affect the validity of such set-off and application.

 

10.11                 Notification of Addresses, Lending Offices, Etc.  Each Bank shall notify the Administrative Agent in writing of any changes in the address to which notices to such Bank should be directed, of addresses of its Lending Office, of payment instructions in respect of all payments to be made to it hereunder and of such other administrative information as the Administrative Agent shall reasonably request.

 

10.12                 Counterparts.  This Agreement may be executed in any number of separate counterparts, each of which, when so executed, shall be deemed an original, and all of said counterparts taken together shall be deemed to constitute but one and the same instrument.  Delivery of an executed counterpart of a signature page to this Agreement by facsimile shall be effective as delivery of a manually executed counterpart of this Agreement.

 

10.13                 Severability.  The illegality or unenforceability of any provision of this Agreement or any instrument or agreement required hereunder shall not in any way affect or impair the legality or enforceability of the remaining provisions of this Agreement or any instrument or agreement required hereunder.

 

10.14                 Governing Law.  This Agreement shall be governed by, and construed in accordance with, the law of the State of New York.

 

10.15                 Consent to Jurisdiction; Waiver of Jury Trial.

 

(a)                                 Each of the parties hereto hereby irrevocably and unconditionally submits, in any action or proceeding arising out of or relating to this Agreement, to the jurisdiction of any New York State or federal court sitting in New York City and any appellate court thereof.

 

(b)                                 Each of the parties hereto hereby irrevocably waives, to the fullest extent it may effectively do so, the defense of an inconvenient forum to the maintenance of such action or proceeding and any right of jurisdiction in such action or proceeding on account of its present or future place of residence or domicile.

 

(c)                                  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED UPON, OR ARISING OUT OF, THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT OR ACTIONS OF THE ADMINISTRATIVE AGENT, THE BANKS OR THE COMPANY RELATING THERETO.

 

(d)                                 The Company hereby irrevocably appoints Corporation Service Company (the “Process Agent”), with an office on the date hereof at 1180 Avenue of the Americas, Suite 210 New York, New York 10036-8401, as its agent to receive on behalf of the Company service of the summons and complaint and any other process which may be served in any action or proceeding brought in any New York state or federal court sitting in New York City. Such service may be made by mailing or delivering a copy of such process to the Company, in care of

 

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the process agent at the address specified above for such Process Agent, and the Company hereby irrevocably authorizes and directs the Process Agent to accept such service on its behalf.  Such appointment shall be contained in a notarial instrument which complies with the 1940 Protocol on Uniformity of Powers of Attorney to be utilized abroad as ratified by the United States and Mexico.

 

(e)                                  Final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

 

10.16                 Waiver of Immunity.  The Company acknowledges that the execution and performance of this Agreement and each other Loan Document is a commercial activity and to the extent that the Company has or hereafter may acquire any immunity from any legal action, suit or proceedings, from jurisdiction of any court or from set-off or any legal process (whether service or notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) with respect to itself or any of its property or assets, whether or not held for its own account, the Company hereby irrevocably and unconditionally waives and agrees not to plead or claim such immunity in respect of its obligations under this Agreement or any other Loan Document.

 

10.17                 Payment in Dollars; Judgment Currency.

 

(a)                                 All payments by the Company to the Administrative Agent hereunder shall be made in Dollars and in immediately available funds and in such funds as are customary at the time for the settlement of international transactions.

 

(b)                                 If for the purposes of obtaining judgment against the Company with respect to its obligations under this Agreement or the Term Notes in any court it is necessary to convert a sum due under this Agreement in Dollars into another currency (the “Other Currency”), the Company agrees, to the fullest extent permitted by applicable law, that the rate of exchange used shall be that at which in accordance with normal banking procedures the Administrative Agent could purchase Dollars with the Other Currency on the business day preceding that on which final judgment is given.

 

(c)                                  The obligation of the Company in respect of any sum due under this Agreement or any Term Note shall, notwithstanding any judgment in any Other Currency, be discharged only to the extent that on the Business Day following receipt by the Administrative Agent of any sum adjudged to be so due in the Other Currency the Administrative Agent may in accordance with normal banking procedures purchase Dollars with the Other Currency; if the amount of Dollars so purchased is less than the sum originally due to the Administrative Agent in Dollars, the Company hereby agrees, as a separate obligation and notwithstanding any such judgment, to indemnify the Administrative Agent and the Banks against such loss.

 

10.18                 No Fiduciary Duty.  The Administrative Agent, each Bank and their respective Affiliates (collectively, solely for purposes of this paragraph, the “Lenders”), may have economic interests that conflict with those of the Company, its stockholders and/or its Affiliates.  The Company agrees that nothing in the Loan Documents or otherwise will be deemed to create an advisory, fiduciary or agency relationship or fiduciary or other implied duty between any

 

64

 

Lender, on the one hand, and such Company, its stockholders or its Affiliates, on the other.  The Company acknowledges and agrees that (i) the transactions contemplated by the Loan Documents (including the exercise of rights and remedies hereunder and thereunder) are arm’s-length commercial transactions between the Lenders, on the one hand, and the Company, on the other, and (ii) in connection therewith and with the process leading thereto, (x) no Lender has assumed an advisory or fiduciary responsibility in favor of any Company, its stockholders or its Affiliates with respect to the transactions contemplated hereby (or the exercise of rights or remedies with respect thereto) or the process leading thereto (irrespective of whether any Lender has advised, is currently advising or will advise the Company, its stockholders or its Affiliates on other matters) or any other obligation to the Company except the obligations expressly set forth in the Loan Documents and (y) each Lender is acting solely as principal and not as the agent or fiduciary of the Company, its management, stockholders, creditors or any other Person.  The Company acknowledges and agrees that it has consulted its own legal and financial advisors to the extent it deemed appropriate and that it is responsible for making its own independent judgment with respect to such transactions and the process leading thereto.  The Company agrees that it will not claim that any Lender has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to such Company, in connection with such transaction or the process leading thereto.

 

[Remainder of page intentionally left blank]

 

65

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered by their respective officers thereunto duly authorized as of the date first written above.

 

	
 
    	
GRUMA, S.A.B. DE C.V.,
    
	
 
    	
as the Company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Raul Cavazos Morales
    
	
 
    	
 
    	
Name: Raul   Cavazos Morales
    
	
 
    	
 
    	
Title: Chief   Financial Officer 
   Attorney-In-Fact
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Salvador Vargas Guajardo
    
	
 
    	
 
    	
Name: Salvador   Vargas Guajardo
    
	
 
    	
 
    	
Title: General   Counsel
   Attorney-In-Fact
    

 

 

	
 
    	
GOLDMAN SACHS BANK USA,
    
	
 
    	
as   Admnistrative Agent and as Bank
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Charles   D. Johnston
    
	
 
    	
 
    	
Name: Charles D. Johnston
    
	
 
    	
 
    	
Title: Authorized SignatoryExhibit 4(a)(6)(2)

 

Execution Copy

 

JOINDER AGREEMENT

 

THIS JOINDER AGREEMENT, dated as of December 14, 2012 (this “Agreement”), by and among BANCO SANTANDER (MÉXICO), S.A., INSTITUCIÓN DE BANCA MÚLTIPLE, GRUPO FINANCIERO SANTANDER MÉXICO (the “New Term Lender”), GRUMA, S.A.B. de C.V., a sociedad anónima bursátil de capital variable organized under the laws of Mexico (“Borrower”), and GOLDMAN SACHS BANK USA (“GS Bank”), as Administrative Agent.

 

RECITALS:

 

WHEREAS, reference is hereby made to the Credit Agreement, dated as of December 13, 2012 (as it may be amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”; the terms defined therein and not otherwise defined herein being used herein as therein defined), by and among Borrower, the Lenders party thereto from time to time and GS Bank, as Administrative Agent; and

 

WHEREAS, subject to the terms and conditions of the Credit Agreement, Borrower may request New Term Commitments by entering into one or more Joinder Agreements with New Term Lenders.

 

NOW, THEREFORE, in consideration of the premises and agreements, provisions and covenants herein contained, the parties hereto agree as follows:

 

1.                                      New Term Commitments. The New Term Lender agrees to commit to provide the New Term Commitment as set forth on Schedule A annexed hereto, on the terms and subject to the conditions set forth below.

 

2.                                      New Term Lender. The New Term Lender (i) confirms that it has received a copy of the Credit Agreement and the other Loan Documents, together with copies of the financial statements referred to therein and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Joinder Agreement and it is sophisticated with respect to decisions to make loans similar to those contemplated to be made hereunder and it is experienced in making loans of such type; (ii) agrees that it will, independently and without reliance upon 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 decisions in taking or not taking action under the Credit Agreement; (iii) appoints and authorizes Administrative Agent to take such action as agent on its behalf and to exercise such powers under the Credit Agreement and the other Loan Documents as are delegated to Administrative Agent, as the case may be, by the terms thereof and (iv) agrees that it will perform in accordance with their terms all of the obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender.

 

3.                                      New Term Loans. The New Term Lender hereby agrees that the New Term Loans made under the New Term Commitment shall constitute Term Loans under the Credit Agreement having the same terms and conditions as those of the existing Term Loans under the Credit Agreement, including:

 

1

 

a.                                      Applicable Margin.  In the case of LIBOR Loans, 3.00% per annum and, in the case of Base Rate Loans, 2.00% per annum plus, in each case, the Step-Up Margin.

 

b.                                      Principal Payments.  One single installment on the Maturity date in accordance with Section 2.02 of the Credit Agreement.

 

c.                                       Voluntary and Mandatory Prepayments.  As set forth in Section 2.05 of the Credit Agreement.

 

d.                                      Credit Agreement Governs.  The New Term Loans shall be subject to the provisions of the Credit Agreement and the other Loan Documents.

 

4.                                      Structuring Fee.  Borrower agrees to pay to the New Term Lender on the Increased Amount Date (as defined below) a structuring fee in an amount equal to 1.00% of the amount of the New Term Commitment plus the applicable value added tax.

 

5.                                      Proposed Borrowing.  This Agreement represents Borrower’s request to borrow the New Term Loans from New Term Loan Lender as follows (the date of such borrowing, the “Increased Amount Date”):

 

a.                                      Increased Amount Date:  December 14, 2012.

 

b.                                      Amount:  $100,000,000.

 

c.                                       Interest rate:  LIBOR Loans with an initial Interest Period of 3 months.

 

d.                                      Wire Instructions:  As set forth on Schedule B annexed hereto.

 

6.                                      New Term Loans and New Term Lenders.  Borrower acknowledges and agrees that upon its execution of this Agreement and the making of the New Term Loans that such New Term Loans shall constitute “Term Loans” under, and for all purposes of, the Credit Agreement and the other Loan Documents.

 

The New Term Lender acknowledges and agrees that upon its execution of this Agreement and the making of the New Term Loans that such New Term Lender shall become a “Lender” under, and for all purposes of, the Credit Agreement and the other Loan Documents, and shall be subject to and bound by the terms thereof, and shall perform all the obligations of and shall have all rights of a Lender thereunder.

 

7.                                      Term Note. Borrower shall deliver to the New Term Lender on the Increased Amount Date a Term Note representing the New Term Lender’s Term Loans to the Borrower.

 

8.                                      Borrower’s Certifications.  By its execution of this Agreement, the undersigned officer and Borrower hereby certify that:

 

i.                                          no Default or Event of Default exists before or after giving effect to the New Term Commitments on the Increased Amount Date;

 

2

 

ii.                                       both before and after giving effect to the making of any New Term Loans, the representations and warranties contained in Article V are true and correct as of the Increased Amount Date, as though made on and as of such date;

 

iii.                                    the Borrower is in pro forma compliance with each of the covenants set forth in Section 7.09 and 7.10 as of the last day of the most recently ended Fiscal Quarter after giving effect to such New Term Commitments.

 

9.                                      Eligible Assignee.  By its execution of this Agreement, the New Term Lender represents and warrants that it is an Eligible Assignee.

 

10.                               Notice.  For purposes of the Credit Agreement, the initial notice address of the New Term Lender shall be as set forth below its signature below.

 

11.                               Recordation of the New Term Loans.  Upon execution and delivery hereof, the Administrative Agent will record the New Term Loans made by the New Term Lender in its Register.

 

12.                               Arrangers. The parties hereto agree that each reference to Goldman Sachs Bank USA as Sole Lead Arranger and Bookrunner in the Loan Documents are amended and restated to refer to GOLDMAN SACHS BANKS USA and BANCO SANTANDER (MÉXICO), S.A., INSTITUCIÓN DE BANCA MÚLTIPLE, GRUPO FINANCIERO SANTANDER MÉXICO, as Joint Lead Arrangers and Joint Bookrunners.

 

13.                               Amendment, Modification and Waiver.  This Agreement may not be amended, modified or waived except by an instrument or instruments in writing signed and delivered on behalf of each of the parties hereto.

 

14.                               Entire Agreement.  This Agreement, the Credit Agreement and the other Loan Documents constitute the entire agreement among the parties with respect to the subject matter hereof and thereof and supersede all other prior agreements and understandings, both written and verbal, among the parties or any of them with respect to the subject matter hereof.

 

15.                               GOVERNING LAW.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW YORK.

 

16.                               Severability.  Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other jurisdiction.  If any provision of this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only so broad as would be enforceable.

 

3

 

17.                               Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement.

 

[Remainder of page intentionally left blank]

 

4

 

IN WITNESS WHEREOF, each of the undersigned has caused its duly authorized officer to execute and deliver this Joinder Agreement as of December 14, 2012.

 

	
 
    	
BANCO   SANTANDER (MÉXICO), S.A., 
   INSTITUCIÓN DE BANCA MÚLTIPLE, 
   GRUPO FINANCIERO SANTANDER MÉXICO
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Mauricio Rebolledo Fernández
    
	
 
    	
Name: Mauricio Rebolledo Fernández
    
	
 
    	
Title: Managing Director Credit Markets
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Octaviano   Carlos Couttolenc Mestre
    
	
 
    	
Name: Octaviano Carlos Couttolenc Mestre
    
	
 
    	
Title: Managing Director   Corporate & Investment Banking
    
	
 
    	
 
    
	
 
    	
Notice   Address: Prol. Paseo de la Reforma   500, 
   Módulo 109
    
	
 
    	
Col. Lomas de Chapultepec
    
	
 
    	
01219  México, DF.
    
	
 
    	
México
    
	
 
    	
 
    
	
 
    	
Attention: Erika Ambrosi
    
	
 
    	
email: eambrosi@santander.com.mx
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
GRUMA,   S.A.B. de C.V.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Raul Cavazos Morales
    
	
 
    	
Name: Raul Cavazos Morales
    
	
 
    	
Title: Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Rodrigo Martinez Villarreal
    
	
 
    	
Name: Rodrigo Martinez Villarreal
    
	
 
    	
Title: International Legal Vice-President
    

 

[Joinder Agreement Signature Page]

 

 

Consented to by:

 

	
GOLDMAN SACHS BANK USA,
    	
 
    
	
as Administrative Agent
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Mark Walton
    	
 
    
	
Name: Mark Walton
    	
 
    
	
Title: Authorized Signatory
    	
 
    
			

 

[Joinder Agreement Signature Page]

 

 

SCHEDULE A
 TO JOINDER AGREEMENT

 

	
Name of New Term Lender
    	
 
    	
Type of Commitment
    	
 
    	
Amount
    	
 
    
	
BANCO   SANTANDER (MÉXICO), S.A., INSTITUCIÓN DE BANCA MÚLTIPLE, GRUPO   FINANCIERO SANTANDER MÉXICO  
    	
 
    	
New Term Commitment
    	
 
    	
$
    	
100,000,000
    	
 
    
	
 
    	
 
    	
Total:
    	
 
    	
$
    	
100,000,000
    	
 
    

 

 

SCHEDULE B
 TO JOINDER AGREEMENT

 

Flow of funds in application of the Term Loan:

 

1.                                      Payment of Fees:

 

Payment of Banco Santander (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander México structuring fee — $1,160,000

 

	
Amount:
    	
US$1,160,000 (ONE MILLION ONE HUNDRED SIXTY THOUSAND AND 00/100 US DOLLARS)
    
	
 
    	
 
    
	
To account of:
    	
Banco Santander   (México), S.A., Institución de Banca Múltiple, Grupo Financiero   Santander
    
	
 
    	
 
    
	
Wire Instructions:
    	
Bank:   JPMorgan Chase Bank, N.A.

ABA # 021 000   021

Account #   400047144

Account name:   Banco Santander (México), S.A., Institución de Banca Múltiple, Grupo   Financiero Santander

Reference Account Name: Gruma, S.A.B. de   C.V.

Beneficiary   Account # 97000070541

Contact:   Carlos de la Cruz / Rosaydée Ruiz
    

 

2.                                      Disbursement of New Term Loans principal to the Borrower:

 

	
Amount:
    	
US$98,840,000 (NINETY EIGHT MILLION EIGHT HUNDRED FORTY THOUSAND AND 00/100 US   DOLLARS)
    
	
 
    	
 
    
	
To account of:
    	
Gruma, S.A.B.   de C.V.
    
	
 
    	
 
    
	
Wire Instructions:
    	
Bank: Bank of America N.A. (Concord, CA)

Swift: ABA: 026009593

Account # 62903-27150

Account name: Gruma, S.A.B. de C.V.

Reference:   GS-GRUMA

Contact: Lourdes   Sosa

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