Document:

Exhibit 10.(vi)

Exhibit 10(vi) 

EXECUTION COPY 

 

 

US$125,000,000 

and
 

S$220,000,000
 

FACILITY AGREEMENT 

dated 25 July 2003 

for
 

ENERGIZER ASIA INVESTMENTS PTE LTD 

arranged by 

CITIGROUP GLOBAL MARKETS SINGAPORE MERCHANT BANK LTD 

and
 

STANDARD CHARTERED BANK
 

with 

CITICORP INVESTMENT BANK (SINGAPORE) LIMITED 

acting as Agent 

Linklaters Allen & Gledhill

Ref: PHJB / TSGG 

	 
	 	 	 
	

	 

 

CONTENTS 

	
CLAUSE 
	
 
	
PAGE 

	
 
	
 
	
 

	
SECTION 1 

	
INTERPRETATION 

	
 

	
1. 
	
Definitions and interpretation 
	
1 

	
 
	
 
	
 

	
SECTION 2 

	
THE FACILITIES 

	
 

	
2. 
	
The Facilities 
	
25 

	
3. 
	
Purpose 
	
25 

	
4. 
	
Conditions of Utilisation 
	
25 

	
 
	
 
	
 

	
SECTION 3 

	
UTILISATION 

	
 

	
5. 
	
Utilisation 
	
27 

	
 
	
 
	
 

	
SECTION 4 

	
REPAYMENT, PREPAYMENT AND CANCELLATION 

	
 

	
6. 
	
Repayment 
	
29 

	
7. 
	
Prepayment and cancellation 
	
29 

	
 
	
 
	
 

	
SECTION 5 

	
COSTS OF UTILISATION 

	
 

	
8. 
	
Interest 
	
32 

	
9. 
	
Interest Periods 
	
33 

	
10. 
	
Changes to the calculation of interest 
	
33 

	
11. 
	
Fees 
	
34 

	
 
	
 
	
 

	
SECTION 6 

	
ADDITIONAL PAYMENT OBLIGATIONS 

	
 

	
12. 
	
Tax gross up and indemnities 
	
36 

	
13. 
	
Increased costs 
	
38 

	
14. 
	
Other indemnities 
	
39 

	
15. 
	
Mitigation by the Lenders 
	
40 

	
16. 
	
Costs and expenses 
	
40 

	
 
	
 
	
 

	
SECTION 7 

	
GUARANTEE 

	
 

	
17. 
	
Guarantee and indemnity 
	
42 

	
 
	
 
	
 

	
SECTION 8 

	
REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT 

	
 

	
18. 
	
Representations 
	
46 

	
19. 
	
Information undertakings 
	
53 

	
20. 
	
Financial covenants 
	
58 

	
21. 
	
General undertakings 
	
59 

	
22. 
	
Negative Undertakings - The Group 
	
62 

	
23. 
	
Negative Covenants - The Regional Group 
	
67 

	
24. 
	
Events of Default 
	
71 

	
 
	
 
	
 

	
SECTION 9 

	
CHANGES TO PARTIES 

	
 

	
25. 
	
Changes to the Lenders 
	
76 

	
26. 
	
Changes to the Obligors 
	
79 

 

	 
	 	 	 
	

	 

 

	
 
	
 
	
 

	
SECTION 10 

	
THE FINANCE PARTIES 

	
 
	
 
	
 

	
27. 
	
Role of the Agent and the Arranger 
	
80 

	
28. 
	
Conduct of business by the Finance Parties 
	
85 

	
29. 
	
Sharing among the Finance Parties 
	
85 

	
 
	
 
	
 

	
SECTION 11 

	
ADMINISTRATION 

	
 
	
 
	
 

	
30. 
	
Payment mechanics 
	
87 

	
31. 
	
Set-off 
	
89 

	
32. 
	
Disclosure of information 
	
89 

	
33. 
	
Notices 
	
91 

	
34. 
	
Calculations and certificates 
	
94 

	
35. 
	
Partial invalidity 
	
94 

	
36. 
	
Remedies and waivers 
	
94 

	
37. 
	
Amendments and waivers 
	
94 

	
38. 
	
Counterparts 
	
95 

	
 
	
 
	
 

	
SECTION 12 

	
GOVERNING LAW AND ENFORCEMENT 

	
 

	
39. 
	
Governing law 
	
96 

	
40. 
	
Enforcement 
	
96 

THE SCHEDULES 

	
SCHEDULE 
	
PAGE 

	 	 
	
SCHEDULE 1   The Original Lenders 
	
97 

	
SCHEDULE 2   Conditions precedent 
	
98 

	
SCHEDULE 3   Requests 
	
100 

	
SCHEDULE 4   Form of Transfer Certificate 
	
103 

	
SCHEDULE 5   Form of Compliance Certificate 
	
105 

	
SCHEDULE 6   Existing Security, Contingent Obligations and Investments 
	
106 

	
SCHEDULE 7   Timetables 
	
108 

	
SCHEDULE 8   Litigation 
	
109 

	
SCHEDULE 9   Subsidiaries 
	
113 

	
SCHEDULE 10 Standing Payment Instructions 
	
129 

	 
	 	 	 
	

	 

 

 

THIS AGREEMENT is dated 25 July 2003 and made between: 

(1)  ENERGIZER ASIA INVESTMENTS PTE LTD, a company incorporated in Singapore under registration number 200302032C as borrower (the "Borrower"); 

(2)  ENERGIZER HOLDINGS, INC.,a company incorporated in Missouri with charter number 00474545, ENERGIZER SINGAPORE PTE LTD.,a company incorporated in Singapore with registered number 194600106W and SONCA PRODUCTS LTD.,a company incorporated in Hong Kong under registered number 167972 as guarantors (the "Guarantors"); 

(3)  CITIGROUP GLOBAL MARKETS SINGAPORE MERCHANT BANK LTDand STANDARD CHARTERED BANK(whether acting individually or together the "Arranger"); 

(4)  THE FINANCIAL INSTITUTIONSlisted in Schedule 1 as lenders (the "Original Lenders"); and 

(5)  CITICORP INVESTMENT BANK (SINGAPORE) LIMITEDas agent of the other Finance Parties (the "Agent"). 

IT IS AGREED as follows: 

SECTION 1 

INTERPRETATION 

1.   Definitions and interpretation 

1.1 Definitions 

In this Agreement: 

"Acquisition" means any transaction, or any series of related transactions, consummated on or after the date of this Agreement, by which Energizer Holdings or any of its Subsidiaries: 

(i)   acquires any going business or all or substantially all of the assets of any firm, corporation or division thereof, whether through purchase of assets, merger or otherwise; or 

(ii)  directly or indirectly acquires (in one transaction or as the most recent transaction in a series of transactions) at least a majority (in number of votes) of the shares and/or securities of a corporation which have ordinary voting power for the election of directors (other than securities having such power only by reason of the happening of a contingency) or a majority (by percentage of voting power) of the outstanding equity interests of another person. 

"Affiliate" means, in relation to any person, a Subsidiary of that person or a Holding Company of that person or any other Subsidiary of that Holding Company or any other person directly or indirectly controlling, controlled by or under control with such person. 

"Agent's Spot Rate of Exchange" means the spot rate of exchange for the purchase of the relevant currency with US Dollars in the Singapore foreign exchange market at or about 11:00 a.m. on a particular day displayed on page "ASAP" of the Reuters screen. 

	 
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"Agreement Accounting Principles" means generally accepted accounting principles as in effect in the United States from time to time or, in the case of the calculation of financial ratios and other financial tests required by this Agreement, except as provided in Clause 19.3 (Requirements as to financial statements), as of the date of this Agreement, in all cases, applied in a manner consistent with that used in preparing the Original Financial Statements. 

"APLMA" means the Asia Pacific Loan Market Association Limited. 

"Approved Fund" means any person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business and that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender, or (c) an entity or an Affiliate of an entity that administers or managers a Lender. 

"Authorisation" means: 

(a)  an authorisation, consent, approval, resolution, licence, exemption, filing, notarisation, lodgement or registration; or 

(b)  in relation to anything which will be fully or partly prohibited by law or regulation if a Governmental Agency intervenes or acts in any way within a specified period after lodgement, filing, registration or notification, the expiry of that period without intervention or action. 

"Availability Period" means: 

(a)  in relation to Facility A, the period from and including the date of this Agreement to and including the date which is one Month after the date of this Agreement; and 

(b)  in relation to Facility B, the period from and including the date of this Agreement to and including the date which is one Month prior to the Termination Date applicable to Facility B. 

"Available Commitment" means, in relation to a Facility, a Lender's Commitment under that Facility minus: 

(a)  the amount of its participation in any outstanding Loans under that Facility; and 

(b)  in relation to any proposed Utilisation, the amount of its participation in any Loans that are due to be made under that Facility on or before the proposed Utilisation Date, 

other than, in relation to Facility B only, that Lender's participation in any Facility B Loans that are due to be repaid or prepaid on or before the proposed Utilisation Date. 

"Available Facility" means, in relation to a Facility, the aggregate for the time being of each Lender's Available Commitment in respect of that Facility. 

"Benefit Plan" means a defined benefit plan as defined in Section 3(35) of ERISA (other than a Multiemployer Plan or Foreign Pension Plan) in respect of which an Obligor or an ERISA Affiliate is, or within the immediately preceding six (6) years was, an "employer" as defined in Section 3(5) of ERISA. 

	 
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"Board of Governors" means the Board of Governors of the Federal Reserve System of the US (or any successor). 

"Break Costs" means the amount (if any) by which: 

(a)  the interest which a Lender should have received for the period from the date of receipt of all or any part of its participation in a Loan or Unpaid Sum to the last day of the current Interest Period in respect of that Loan or Unpaid Sum, had the principal amount of that Loan or Unpaid Sum received been paid on the last day of that Interest Period; 

exceeds: 

(b)  the amount which that Lender would be able to obtain by placing an amount equal to the principal amount of that Loan or Unpaid Sum received by it on deposit with a leading bank in the Relevant Interbank Market for a period starting on the Business Day following receipt or recovery and ending on the last day of the current Interest Period. 

"Business Day" means a day (other than a Saturday or Sunday) on which banks are open for general business in Singapore and, in relation to any date for payment or purchase of US Dollars, New York City. 

"Capital Stock" means: 

(i)   in the case of a corporation, shares or capital stock; 

(ii)  in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock; 

(iii)  in the case of a partnership, partnership interests (whether general or limited); and 

(iv)  any other interest or participation that confers on a person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing person. 

"Capitalised Lease" of a person means any lease of an asset by such person as lessee which would be capitalised on a balance sheet of such person prepared in accordance with Agreement Accounting Principles. 

"Capitalised Lease Obligations" of a person means the amount of the obligations of such person under Capitalised Leases which would be capitalised on a balance sheet of such person prepared in accordance with Agreement Accounting Principles. 

"Cash Equivalents" means: 

(a)  marketable direct obligations issued or unconditionally guaranteed by the United States government and backed by the full faith and credit of the United States government; 

(b)  domestic and Eurodollar certificates of deposit and time deposits, bankers' acceptances and floating rate certificates of deposit issued by any commercial bank organised under the laws of the United States, any state thereof, the District of Columbia, any foreign bank, or its branches or agencies (fully protected against currency fluctuations for any such deposits with a term of more than ninety (90) days); 

(c)  shares of money market, mutual or similar funds having assets in excess of US$100,000,000 and at least 95% of the investments of which are limited to investment 

 

	 
	 	-3-	 
	

	 

 

grade securities (being securities rated at least Baa by Moody's Investors Service, Inc. or at least BBB by Standard & Poor's Ratings Group); and 

(d)  commercial paper of United States and foreign banks and bank holding companies and their Subsidiaries and United States and foreign finance, commercial industrial or utility companies which, at the time of acquisition, are rated A-1 (or better) by Standard & Poor's Ratings Group or P-1 (or better) by Moody's Investors Service, Inc.; 

provided that the maturities of such Cash Equivalents described in the foregoing paragraphs (a), (b), (c) and (d) shall not exceed 365 days; 

(e)  repurchase obligations of any commercial bank organised under the laws of the United States, any state thereof, the District of Columbia, any foreign bank, or its branches or agencies having a term not more than thirty (30) days, with respect to securities issued or fully guaranteed or insured by the United States government; 

(f)   securities with maturities of one year or less from the date of acquisition issued or fully guaranteed by any state, commonwealth, territory, political subdivision, taxing authority or by any foreign government, the securities of which state, commonwealth, territory, political subdivision, taxing authority or foreign government (as the case may be) are rated at least BBB by Standard & Poor's Ratings Group or at least Baa by Moody's Investors Service, Inc.; 

(g)  securities with maturities of one year or less from the date of acquisition backed by standby letters of credit issued by any commercial bank organised under the laws of the United States, any state thereof or the District of Columbia (which commercial bank shall have a short-term debt rating of A-1 (or better) by Standard & Poor's Ratings Group or P-1 by Moody's Investors Service, Inc.), or by any foreign bank (which foreign bank shall have a rating of B or better from Thomson BankWatch Global Issuer Rating or, if not rated by Thomson BankWatch Global Issuer Rating, which foreign bank shall be an institution acceptable to the Agent), or its branches or agencies; or 

(h)  shares of money market mutual or similar funds at least 95% of the assets of which are invested in the types of investments satisfying the requirements of paragraphs (a) to (g) of this definition. 

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

(a)  any "person" or "group" (within the meaning of Sections 13(d) and 14(d)(2) of the US Securities Exchange Act of 1934) becomes the "beneficial owner" (as defined in Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of thirty percent (30%) or more of the voting power of the then outstanding Capital Stock of Energizer Holdings entitled to vote generally in the election of the directors of Energizer Holdings; 

(b)  during any period of 12 consecutive calendar months, the board of directors of Energizer Holdings shall cease to have as a majority of its members individuals who either: 

(i)   were directors of Energizer Holdings on the first day of such period; or 

	 
	 	-4-	 
	

	 

 

(ii)  were elected or nominated for election to the board of directors of Energizer Holdings at the recommendation of or other approval by at least majority of the Directors then still in office at the time of such election or nomination who were directors of Energizer Holdings on the first day of such period, or whose election or nomination for election was so approved; or 

(c)  Energizer Holdings consolidates with or merges into another corporation or conveys, transfers or leases all or substantially all of its property to any person, or any corporation consolidates with or merges into Energizer Holdings, in either event pursuant to a transaction in which the outstanding Capital Stock of Energizer Holdings is reclassified or changed into or exchanged for cash, securities or other property. 

"Commitment" means a Facility A Commitment or Facility B Commitment. 

"Companies Act" means the Companies Act (Chapter 50) Statutes of the Republic of Singapore. 

"Compliance Certificate" means a certificate substantially in the form set out in Schedule 5 (Form of Compliance Certificate). 

"Consolidated Assets" means the total assets of Energizer Holdings and its Subsidiaries on a consolidated basis. 

"Consolidated Domestic Assets" means the total assets of Energizer Holdings and each of its consolidated Subsidiaries that is incorporated under the laws of any jurisdiction in the United States. 

"Consolidated Net Worth" means, as of any date, all amounts which would be included under shareholders' equity (including capital stock, additional paid-in capital and retained earnings) on the consolidated balance sheet of Energizer Holdings and its consolidated Subsidiaries determined in accordance with Agreement Accounting Principles. 

"Consolidated Total Capitalisation" means, as of any date, the sum of (i) Indebtedness of Energizer Holdings and its consolidated Subsidiaries and (ii) Consolidated Net Worth, all determined in accordance with Agreement Accounting Principles. 

"Contingent Obligation", as applied to any person, means any Contractual Obligation, contingent or otherwise, of that person with respect to any Indebtedness or other obligation or liability of another person, including, without limitation, any such Indebtedness, obligation or liability of another person directly or indirectly guaranteed, endorsed (otherwise than for collection or deposit in the ordinary course of business), co-made or discounted or sold with recourse by that person, or in respect of which that person is otherwise directly or indirectly liable, including Contractual Obligations (contingent or otherwise) arising through any agreement to purchase, repurchase, or otherwise acquire such Indebtedness, obligation or liability or any security therefor, or to provide funds for the payment or discharge thereof (whether in the form of loans, advances, stock purchases, capital contributions or otherwise), or to maintain solvency, assets, level of income, or other financial condition, or to make payment other than for value received. The amount of any Contingent Obligation shall be equal to the present value of the portion of the obligation so guaranteed or otherwise supported, in the case of known recurring 

 

	 
	 	-5-	 
	

	 

 

obligations, and the maximum reasonably anticipated liability in respect of the portion of the obligation so guaranteed or otherwise supported assuming such person is required to perform thereunder, in all other cases. 

"Contractual Obligation", as applied to any person, means any provision of any equity or debt securities issued by that person or any indenture, mortgage, deed of trust, security agreement, pledge agreement, guarantee, contract, undertaking, agreement or instrument, in any case in writing, to which that person is a party or by which it or any of its assets is bound, or to which it or any of its assets is subject. Without in any way limiting the foregoing, as used with respect to any member of the Group, Contractual Obligations shall include, without limitation, the Financing Facilities and any instruments, documents or agreements executed or delivered in connection therewith by which any member of the Group is bound. 

"Customary Permitted Liens" means: 

(a)  Liens (other than Environmental Security and Liens in favour of the IRS or the PBGC or any Plan) with respect to the payment of Taxes, assessments or governmental charges in all cases which are not yet due or (if foreclosure, distraint, sale or other similar proceedings shall not have been commenced or any such proceeding after being commenced is stayed) which are being contested in good faith by appropriate proceedings properly instituted and diligently conducted and with respect to which adequate reserves or other appropriate provisions are being maintained as may be required in accordance with Agreement Accounting Principles; 

(b)  statutory Liens of landlords and Liens of suppliers, mechanics, carriers, materialmen, warehousemen or workmen and other similar Liens imposed by law created in the ordinary course of business for amounts not yet due or which are being contested in good faith by appropriate proceedings properly instituted and diligently conducted and with respect to which adequate reserves or other appropriate provisions are being maintained as may be required in accordance with Agreement Accounting Principles; 

(c)  Liens (other than Environmental Security and Liens in favour of the IRS or the PBGC or any Plan) incurred or deposits made in the ordinary course of business in connection with workers' compensation, unemployment insurance or other types of social security benefits or to secure the performance of bids, tenders, sales, contracts (other than for the repayment of Indebtedness), surety, appeal and performance bonds; provided that (A) all such Liens does not in the aggregate materially detract from the value of each member of the Group's assets taken as a whole or materially impair the use thereof in the operation of each member of the Group's businesses taken as a whole, and (B) all Liens securing bonds to stay judgments or in connection with appeals do not secure at any time an aggregate amount exceeding US$30,000,000; 

(d)  Liens arising with respect to zoning restrictions, easements, licences, reservations, covenants, rights-of-way, utility easements, building restrictions and other similar charges or encumbrances on the use of real property which do not in any case materially detract from the value of the property subject thereto or interfere with the ordinary conduct of the business of each member of the Group; 

	 
	 	-6-	 
	

	 

 

(e)  Liens of attachment or judgment with respect to judgments, writs, warrants of attachment, or similar process against any member of the Group which do not or would not constitute an Event of Default under Clause 24.10 (Judgments, creditors' process); 

(f)   any interest or title of the lessor in the property subject to any operating lease entered into by any member of the Group in the ordinary course of business; and 

(g)  Liens of commercial depository institutions arising in the ordinary course of business constituting a statutory or common law right of setoff against amounts on deposit with any such institution. 

"Default" means an Event of Default or any event or circumstance specified in Clause 24 (Events of Default ) which would (with the expiry of a grace period, the giving of notice, the making of any determination under the Finance Documents or any combination of any of the foregoing) be an Event of Default. 

"Disqualified Stock" means any preferred stock and any Capital Stock that, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable), or upon the happening of any event, matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable at the option of the holder thereof, in whole or in part, on or prior to the date that is 91 days after 27 June 2006. 

"DOL" means the United States Department of Labour and any person succeeding to the functions thereof. 

"EBIT" has the meaning given hereto in Clause 20 (Financial covenants). 

"EBITDA" has the meaning given hereto in Clause 20 (Financial covenants). 

"Energizer Holdings" means Energizer Holdings, Inc, a company incorporated in Missouri with charter number 00474545. 

"Energizer Singapore" means Energizer Singapore Pte Ltd, a company registered in Singapore under registration number 194600106W. 

"Environment" means living organisms including the ecological systems of which they form part and the following media: 

(a)  air (including air within natural or man-made structures, whether above or below ground); 

(b)  water (including territorial, coastal and inland waters, water under or within land and water in drains and sewers); and 

(c)  land (including land under water). 

"Environmental Law" means all laws and regulations of any applicable jurisdiction which: 

(a)  have as a purpose or effect the protection of, and/or prevention of harm or damage to, the Environment; 

(b)  provide remedies or compensation for harm or damage to the Environment; or 

(c)  relate to Hazardous Substances or health and safety matters. 

	 
	 	-7-	 
	

	 

 

"Environmental Licence" means any Authorisation required at any time under Environmental Law. 

"Environmental Security" means a security in favour of any Governmental Authority for (a) any liability under Environmental Law, or (b) damages arising from, or costs incurred by such Governmental Authority in response to, an actual or threatened release, escape, discharge, migration or leaching of a Hazardous Substance into the Environment. 

"Equity Interests" means Capital Stock and all warrants, options or other rights to acquire Capital Stock (but excluding any debt security that is convertible into, or exchangeable for, Capital Stock). 

"ERISA" means the US Employee Retirement Income Security Act of 1974, as amended from time to time, including (unless the context otherwise requires) any rules or regulations promulgated thereunder. 

"ERISA Affiliate" means each person (as defined in Section 3(9) of ERISA) that is a member of a controlled group of, or under common control with, any Obligor, within the meaning of Section 414(b), (c), (m) or (o) of the Internal Revenue Code. 

"ERISA Event" means: 

(a)  any reportable event as defined in Section 4043 of ERISA and the regulations issued under such section, with respect to any Benefit Plan, excluding however, such events as to which the PBGC by regulation waived the requirement of Section 4043(a) of ERISA that it be notified within 30 days after such event occurs; 

(b)  the withdrawal of Energizer Holdings or any ERISA Affiliate from a Benefit Plan during a plan year in which Energizer Holdings or such ERISA Affiliate was a "substantial employer" as defined in Section 4001(a)(2) of ERISA with respect to such plan; 

(c)  the imposition of an obligation under Section 4041 of ERISA to provide affected parties written notice of intent to terminate a Benefit Plan in a distress termination described in Section 4041(c) of ERISA; 

(d)  the institution by the PBGC or any foreign governmental authority of proceedings to terminate or appoint a trustee to administer a Benefit Plan or Foreign Pension Plan; 

(e)  any event or condition which might constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Benefit Plan; or 

(f)   the partial or complete withdrawal of Energizer Holdings or any ERISA Affiliate from a Multiemployer Plan. 

"Event of Default" means any event or circumstance specified as such in Clause 24 (Events of Default ). 

"Facility" means Facility A or Facility B. 

"Facility A" means the term loan facility made available under this Agreement as described in Clause 2 (The Facilities ). 

"Facility A Commitment" means: 

	 
	 	-8-	 
	

	 

 

(a)  in relation to an Original Lender, the amount in US Dollars set opposite its name under the heading "Facility A Commitment" in Schedule 1 (The Original Lenders) and the amount of any other Facility A Commitment transferred to it under this Agreement; and 

(b)  in relation to any other Lender, the amount in US Dollars of any Facility A Commitment transferred to it under this Agreement, 

to the extent not cancelled, reduced or transferred by it under this Agreement. 

"Facility A Lender" means; 

(a)  any Original Facility A Lender; and 

(b)  any person which has become a Facility A Lender in accordance with Clause 25 (Changes to the Lenders ), 

which in each case has not ceased to be a Facility A Lender in accordance with this Agreement. 

"Facility A Loan" means a loan made or to be made under Facility A or the principal amount outstanding for the time being of that loan. 

"Facility B" means the revolving loan facility made available under this Agreement as described in Clause 2 (The Facilities ). 

"Facility B Commitment" means: 

(a)  in relation to an Original Lender, the amount in Singapore Dollars set opposite its name under the heading "Facility B Commitment" in Schedule 1 (The Original Lenders) and the amount of any other Facility B Commitment transferred to it under this Agreement; and 

(b)  in relation to any other Lender, the amount in Singapore Dollars of any Facility B Commitment transferred to it under this Agreement, 

to the extent not cancelled, reduced or transferred by it under this Agreement. 

"Facility B Lender" means: 

(a)  any Original Facility B Lender; and 

(b)  any person which has become a Facility B Lender in accordance with Clause 25 (Changes to the Lenders ), 

which in each case has not ceased to be a Facility B Lender in accordance with the terms of this Agreement. 

"Facility B Loan" means a loan made or to be made under Facility B or the principal amount outstanding for the time being of that loan. 

"Facility Office" means the office or offices notified by a Lender to the Agent in writing on or before the date it becomes a Lender (or, following that date, by not less than five Business Days' written notice) as the office or offices through which it will perform its obligations under this Agreement. 

	 
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"Fee Letter" means any letter or letters dated on or about the date of this Agreement between the Arranger and the Borrower (or the Agent and the Borrower) setting out any of the fees referred to in Clause 11 (Fees). 

"Finance Document" means this Agreement, any Hedging Document, any Fee Letter, any Transfer Certificate and any other document designated as such by the Agent and the Borrower. 

"Finance Party" means the Agent, the Arranger or a Lender. 

"Financial Indebtedness" of any person means any indebtedness, without double counting, for or in respect of: 

(a)  moneys borrowed; 

(b)  any amount raised under any acceptance credit, bill acceptance or bill endorsement facility; 

(c)  any amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument; 

(d)  the amount of any liability in respect of any lease or hire purchase contract which would, in accordance with Agreement Accounting Principles, be treated as a finance or capital lease; 

(e)  receivables sold or discounted (other than any receivables to the extent they are sold on a non-recourse basis); 

(f)  any amount raised under any other transaction (including any forward sale or purchase agreement) having the commercial effect of a borrowing; 

(g)  any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price (and, when calculating the value of any derivative transaction, only the marked to market value shall be taken into account); 

(h)  shares which are expressed to be redeemable; 

(i)   any counter-indemnity obligation in respect of a guarantee, indemnity, bond, standby or documentary letter of credit or any other instrument issued by a bank or financial institution; 

(j)   any Disqualified Stock (and the amount of Financial Indebtedness relating to Disqualified Stock shall be the aggregate amount of the liquidation preference of such Disqualified Stock); and 

(k)  the amount of any liability in respect of any guarantee or indemnity for any of the items referred to in paragraphs (a) to (j) above. 

"Financing Facilities" means the US Facility, the Receivables Purchase Facility, the Senior Notes and this Agreement. 

"Foreign Employee Benefit Plan" means any employee benefit plan as defined in Section 3(3) of ERISA which is maintained or contributed to for the benefit of the employees of Energizer Holdings or any member of the Group, but which is not covered by ERISA pursuant to Section 4(b)(4) of ERISA. 

	 
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"Foreign Pension Plan" means any employee pension benefit plan (as defined in Section 3(2) of ERISA) which: 

(a)  is maintained or contributed to for the benefit of employees of Energizer Holdings or any other member of the Group; 

(b)  is not covered by ERISA pursuant to Section 4(b)(4) thereof; and 

(c)  under applicable local law, is required to be funded through a trust or other funding vehicle. 

"Governmental Agency" means any government or any governmental agency, semi-governmental or judicial entity or authority (including, without limitation, any stock exchange or any self-regulatory organisation established under any law or regulation). 

"Group" means Energizer Holdings and its Subsidiaries for the time being. 

"Hazardous Substance" means any waste, pollutant, contaminant or other substance (including any liquid, solid, gas, ion, living organism or noise) that may be harmful to human health or other life or the Environment or a nuisance to any person or that may make the use or ownership of any affected land or property more costly. 

"Hedging Arrangements" means any commodity, currency or interest purchase, cap or collar agreement, forward rate agreements, commodity, interest rate or currency future or option contract, foreign exchange or currency purchase or sale agreement, interest rate swap, currency swap or combined interest rate and currency swap agreement and any other similar agreement. 

"Hedging Bank" means, at any time, a Lender or an Affiliate of a Lender party to any Hedging Document at that time. 

"Hedging Documents" means any Hedging Arrangements entered into by the Borrower in order to hedge the Borrower's exposure to fluctuations in interest and/or exchange rates arising in connection with Loans borrowed by it under this Agreement. 

"Holding Company" means, in relation to a company or corporation, any other company or corporation in respect of which it is a Subsidiary. 

"Increased Costs" has the meaning given to it in Clause 13.1 (Increased Costs ). 

"Indebtedness" of any person means, without duplication, such person's: 

(a)  obligations for borrowed money; 

(b)  obligations representing the deferred purchase price of property or services (other than accounts payable arising in the ordinary course of such person's business payable on terms customary in the trade), which purchase price is due more than six months from the date of incurrence of the obligation in respect thereof, provided that the related obligations are not interest bearing; 

(c)  obligations, whether or not assumed, secured by Liens or payable out of the proceeds or production from assets now or hereafter owned or acquired by such person; 

(d)  obligations which are evidenced by notes, acceptances or other instruments; 

	 
	 	-11-	 
	

	 

 

(e)  Capitalised Lease Obligations; 

(f)   Contingent Obligations in respect of Indebtedness; 

(g)  obligations with respect to letters of credit; 

(h)  Off-Balance Sheet Liabilities; 

(i)  Receivables Facility Attributed Indebtedness; and 

(j)  Disqualified Stock (and the amount of Indebtedness relating to Disqualified Stock shall be the aggregate amount of the liquidation preference of such Disqualified Stock). 

The amount of Indebtedness of any person at any date shall be without duplication: 

(i)   the outstanding balance at such date of all unconditional obligations as described above and the maximum liability of any such Contingent Obligations at such date; and 

(ii)  in the case of Indebtedness of others secured by a Lien to which the property or assets owned or held by such person is subject, the lesser of the fair market value at such date of any asset subject to a Lien securing the Indebtedness of others and the amount of the Indebtedness secured. 

"Indirect Tax" means any goods and services tax, consumption tax, value added tax or any Tax of a similar nature. 

"Information Memorandum" means the document dated 20 May 2003 (and any update thereof) in the form approved by Energizer Holdings and the Borrower concerning the Group and the Regional Group which, at the Borrower's request and on its behalf, was prepared in relation to this transaction and distributed by the Arranger to selected financial institutions before the date of this Agreement. 

"Internal Revenue Code" means the United States Internal Revenue Code of 1986, as amended and the regulations promulgated and any rulings issued thereunder. 

"Interest Expense" has the meaning given to it in Clause 20 (Financial covenants). 

"Interest Expense Coverage Ratio" has the meaning given to it in Clause 20 (Financial covenants ). 

"Interest Period" means, in relation to a Loan, each period determined in accordance with Clause 9 (Interest Periods) and, in relation to an Unpaid Sum, each period determined in accordance with Clause 8.3 (Default interest). 

"Investment" means, with respect to any person: 

(a)  any purchase or other acquisition by that person of any Indebtedness, Equity Interests or other securities, or of a beneficial interest in any Indebtedness, Equity Interests or other securities, issued by any other person; 

(b)  any purchase by that person of all or substantially all of the assets of a business conducted by another person; and 

	 
	 	-12-	 
	

	 

 

(c)  any loan, advance (other than deposits with financial institutions available for withdrawal on demand, prepaid expenses, accounts receivable, advances to employees and similar items made or incurred in the ordinary course of business) or capital contribution by that person to any other person, including all Indebtedness to such person arising from a sale of property by such person other than in the ordinary course of its business. 

"IRS" means the United States Internal Revenue Service and any person succeeding to the functions thereof. 

"Judicial Manager" means any judicial manager appointed pursuant to the provisions of the Companies Act. 

"Lender" means a Facility A Lender or a Facility B Lender. 

"Leverage Ratio" has the meaning given to it in Clause 20 (Financial covenants). 

"Lien" means any lien (statutory or other), mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance or preference, priority or security agreement or preferential arrangement of any kind or nature whatsoever (including, without limitation, the interest of a vendor or lessor under any conditional sale, Capitalised Lease or other title retention agreement). 

"Loan" means a Facility A Loan or a Facility B Loan. 

"Majority Facility A Lenders" means, at any time, the Majority Lenders calculated, for the purpose of this definition, by excluding the Facility B Loans and the Facility B Commitments. 

"Majority Facility B Lenders" means, at any time, the Majority Lenders calculated, for the purpose of this definition, by excluding the Facility A Loans and the Facility A Commitments. 

"Majority Lenders" means a Lender or Lenders whose Available Commitments and participations in the Loans then outstanding aggregate more than 50% of the Available Facilities and all the Loans then outstanding. For the purposes of this definition, any Available Commitment or participation denominated in a currency other than US Dollars shall be converted to US Dollars at the Agent's Spot Rate of Exchange at the time determination under this definition is made. 

"Margin" means, in relation to a particular Interest Period: 

(a)  for each Interest Period with a Quotation Date occurring in the period from and including the date of this Agreement to and including the date 5 Business Days after receipt by the Agent of Energizer Holdings' audited consolidated financial statements for the year ending 30 September 2003 and the Compliance Certificate relating thereto: 

(i)   in relation to Facility A, 1.00 per cent. per annum; and 

(ii)  in relation to Facility B, 0.90 per cent. per annum; and 

(b)  for each other Interest Period, the percentage rate per annum determined by reference to the Total Borrowings/EBITDA Ratio as shown in the most recent Compliance Certificate received by the Agent prior to the commencement of that Interest Period, in accordance with the following table: 

	 
	 	-13-	 
	

	 

 

	
Ratio 
	
Applicable Margin for Facility A 
	
Applicable Margin for Facility B 

	

	

	

	
Less than or equal to 2.00:1.00 
	
0.875 per cent. per annum 
	
0.775 per cent. per annum 

	
Higher than 2.00:1.00 but less than or equal to 2.50:1.00 
	
1.00 per cent. per annum 
	
0.90 per cent. per annum 

	
Higher than 2.50:1.00 
	
1.25 per cent. per annum 
	
1.15 per cent. per annum 

provided that: 

(i)   there will be no Margin reduction or increase for a particular Interest Period if the Quotation Day for that Interest Period is within 5 Business Days of the date on which the Agent has received a Compliance Certificate (and the financial statements required to be delivered with that Compliance Certificate); 

(ii)  if by the fifth Business Day before the Quotation Day for an Interest Period, the Agent has not received a Compliance Certificate (or any financial statement with which that Compliance Certificate is required by this Agreement to be delivered) due on or before that day, the applicable Margin for that Interest Period will be: 

(A)    in relation to Facility A, 1.25 per cent. per annum; and 

(B)    in relation to Facility B, 1.15 per cent. per annum; and 

(iii)  there will be no Margin reduction for a particular Interest Period if, on the Quotation Day for that Interest Period a Default is continuing. 

"Margin Stock" means margin stock or margin security within the meaning of Regulation T, U or X. 

"Market Disruption Event" has the meaning given to it in Clause 10.2 (Market disruption). 

"Material Adverse Effect" means a material adverse effect on or material adverse change in: 

(a)  the consolidated condition (financial or otherwise), assets, operations, prospects or business of the Obligors taken as a whole; 

(b)  the ability of the Obligors (taken as a whole) to perform and comply with any of the obligations under any Finance Document, in any material respect; or 

(c)  the ability of any Finance Party to enforce, in any material respect, any Finance Document or its rights or remedies under any Finance Document. 

"Material Domestic Subsidiary" means each consolidated Subsidiary (other than any SPV) of Energizer Holdings: 

(a)  incorporated under the laws of any jurisdiction in the United States; and 

(b)  the total assets of which exceed, as at the end of any calendar quarter or, in the case of consummation of a Permitted Acquisition, at the time of consummation of such Permitted 

 

	 
	 	-14-	 
	

	 

 

Acquisition (calculated by Energizer Holdings on a pro formabasis taking into account the consummation of such Permitted Acquisition), three per cent. of the Consolidated Domestic Assets of Energizer Holdings and its consolidated Subsidiaries (other than SPVs). 

"Material Foreign Subsidiary" means each consolidated Subsidiary (other than any SPV and each member of the Regional Group) of Energizer Holdings: 

(a)  incorporated or organised under the laws of any jurisdiction outside the United States; and 

(b)  the total assets of which exceed, as at the end of any calendar quarter or, in the case of consummation of a Permitted Acquisition, at the time of consummation of such Permitted Acquisition (calculated by Energizer Holdings on a pro formabasis taking into account the consummation of such Permitted Acquisition), five per cent. of the Consolidated Assets of Energizer Holdings and its consolidated Subsidiaries (other than SPVs). 

"Material Subsidiaries" means each of Energizer Holdings' Material Domestic Subsidiaries and Material Foreign Subsidiaries. 

"Month" means a period starting on one day in a calendar month and ending on the numerically corresponding day in the next calendar month, except that: 

(a)  (subject to paragraph (c) below) if the numerically corresponding day is not a Business Day, that period shall end on the next Business Day in that calendar month in which that period is to end if there is one, or if there is not, on the immediately preceding Business Day; 

(b)  if there is no numerically corresponding day in the calendar month in which that period is to end, that period shall end on the last Business Day in that calendar month; and 

(c)  if an Interest Period begins on the last Business Day of a calendar month and, consistent with the terms of this Agreement, that Interest Period is to be of a duration equal to a whole number of Months, that Interest Period shall end on the last Business Day in the calendar month in which that Interest Period is to end. 

The above rules will only apply to the last Month of any period. 

"Multiemployer Plan" means, at any time, a multiemployer plan (as defined in Section 4001(a)(3) of ERISA) then or at any time during the previous six years maintained for, or contributed to (or to which there is or was an obligation to contribute) on behalf of, employees of any Obligor or ERISA Affiliate. 

"Net Income" has the meaning given hereto in Clause 20 (Financial covenants). 

"Non-ERISA Commitments" means: 

(a)  each pension, medical, dental, life, accident insurance, disability, group insurance, sick leave, profit sharing, deferred compensation, bonus, stock option, stock purchase, retirement, savings, severance, stock ownership, performance, incentive, hospitalisation or other insurance, or other welfare, benefit or fringe benefit plan, policy, trust, understanding or arrangement of any kind; and 

	 
	 	-15-	 
	

	 

 

(b)  each employee collective bargaining agreement and each agreement, understanding or arrangement of any kind, with or for the benefit of any present or prior officer, director, employee or consultant (including, without limitation, each employment, compensation, deferred compensation, severance or consulting agreement or arrangement and any agreement or arrangement associated with a change in ownership of any member of the Group), 

to which an Obligor or an ERISA Affiliate is a party or with respect to which an Obligor or an ERISA Affiliate is or will be required to make any payment other than any Plans. 

"Obligor" means the Borrower or a Guarantor. 

"Off-Balance Sheet Liabilities" of a person means, without duplication: 

(a)  any Receivables Facility Attributed Indebtedness and repurchase obligation or liability of such person or any of its Subsidiaries with respect to Receivables or notes receivable sold by such person or any of its Subsidiaries (calculated to include the unrecovered investment of purchasers or transferees of Receivables or notes receivable or any other obligation of Energizer Holdings or such transferor to purchasers/transferees of interests in Receivables or notes receivables or the agent for such purchasers/transferees); 

(b)  any liability under any sale and leaseback transactions which do not create a liability on the consolidated balance sheet of such person; 

(c)  any liability under any financing lease or so-called "synthetic" lease transaction; or 

(d)  any obligations arising with respect to any other transaction which is the functional equivalent of or takes the place of borrowing but which does not constitute a liability on the consolidated balance sheets of such person and its Subsidiaries. 

"Original Facility A Lender" means a Lender listed in Schedule 1 (The Original Lenders) as having a Facility A Commitment. 

"Original Facility B Lender" means a Lender listed in Schedule 1 (The Original Lenders) as having a Facility B Commitment. 

"Original Financial Statements" means: 

(a)  in relation to Energizer Holdings, the audited consolidated financial statements of the Group for the financial year ended 30 September 2002; and 

(b)  in relation to each of Energizer Singapore and Sonca Products, its audited unconsolidated financial statements for its financial year ended 31 December 2002 and 30 September 2002, respectively, as delivered to the Lenders together with the Information Memorandum. 

"Party" means a party to this Agreement. 

"PBGC" means the Pension Benefit Guaranty Corporation of the USA established pursuant to Section 4002 of ERISA or any entity succeeding to all or any of its functions under ERISA. 

"Permitted Acquisition" has the meaning given hereto in Clause 22.6 (Conduct of business; New Subsidiaries; Acquisitions). 

	 
	 	-16-	 
	

	 

 

"Permitted Hedging Arrangements" means any foreign exchange or interest rate swap transactions for spot or forward delivery entered into in the ordinary course of business (and not for investment for speculative purposes) entered into by any member of the Group to hedge its or its Subsidiaries' reasonably estimated currency or interest rate exposures. 

"Permitted Receivables Transfer" means: 

(a)  a sale or other transfer by a member of the Group in its capacity as a party to a Receivables Purchase Document to an SPV of Receivables and Related Security for fair market value and without recourse (except for limited recourse typical of such structured finance transactions); and/or 

(b)  a sale or other transfer by an SPV to (a) purchasers of or other investors in such Receivables and Related Security or (b) any other person (including an SPV) in a transaction in which purchasers or other investors purchase or are otherwise transferred such Receivables and Related Security, in each case pursuant to and in accordance with the terms of the Receivables Purchase Documents. 

"Plan" means an employee benefit plan defined in Section 3(3) of ERISA in respect of which Energizer Holdings or any member of the Group is, or within the immediately preceding six (6) years was, an "employer" as defined in Section 3(5) of ERISA. 

"Quotation Day" means, in relation to any period for which an interest rate is to be determined, two Singapore Business Days before the first day of that period, unless market practice differs in the Relevant Interbank Market for a currency, in which case the Quotation Day for that currency will be determined by the Agent in accordance with market practice in the Relevant Interbank Market (and if quotations for that currency and period would normally be given by leading banks in the Relevant Interbank Market on more than one day, the Quotation Day will be the last of those days). 

"Receivable(s)" means and includes all of Energizer Holdings and its Subsidiaries' presently existing and hereafter arising or acquired accounts, accounts receivable, and all present and future rights of Energizer Holdings and its Subsidiaries to payment for goods sold or leased or for services rendered (except those evidenced by instruments or chattel paper), whether or not they have been earned by performance, and all rights in any merchandise or goods which any of the same may represent, and all rights, title, security and guarantees with respect to each of the foregoing, including, without limitation, any right of stoppage in transit. 

"Receivables and Related Security" means Receivables and the related security and collections with respect thereto which are sold or transferred by any member of the Group in its capacity as a party to a Receivables Purchase Document or SPV in connection with any Permitted Receivables Transfer. 

"Receivables Facility Attributed Indebtedness" means the amount of obligations outstanding under a receivables purchase facility on any date of determination that would be characterised as principal if such facility were structured as a secured lending transaction rather than as a purchase. 

	 
	 	-17-	 
	

	 

 

"Receivables Facility Financing Costs" means such portion of the cash fees, service charges, and other costs, as well as all collections or other amounts retained by purchasers of receivables pursuant to a receivables purchase facility, which are in excess of amounts paid to Energizer Holdings and its consolidated Subsidiaries under any receivables purchase facility for the purchase of receivables pursuant to such facility and are the equivalent of the interest component of the financing if the transaction were characterised as an on-balance sheet transaction. 

"Receivables Purchase Documents" means (i) the 2000 Receivables Sale Agreement and (ii) the 2000 Receivables Purchase Agreement, or any other series of receivables purchase or sale agreements generally consistent with terms contained in comparable structured finance transactions pursuant to which a member of the Group sells or transfers to SPVs all of their respective right, title and interest in and to certain Receivables and Related Security for further sale or transfer to other purchasers of or investors in such assets (in any such case, together with the other documents, instruments and agreements executed in connection therewith), as any such agreements may be amended, restated, supplemented or otherwise modified from time to time, or any replacement or substitution therefor. 

"Receivables Purchase Facility" means the securitisation facility made available to Energizer Holdings, pursuant to which the Receivables and Related Security of members of the Group are transferred to one or more SPVs, and thereafter to certain investors, pursuant to the terms and conditions of the Receivables Purchase Documents. 

"Reference Banks" means the principal Singapore offices of Citibank, N.A. and Standard Chartered Bank or such other banks as may be appointed by the Agent in consultation with the Borrower. 

"Regional Group" means the Borrower and the Regional Guarantors. 

"Regional Group Consolidated Assets" means (without double counting) the total assets of each member of the Regional Group on a consolidated basis. 

"Regional Group Net Worth" means, as of any date, all amounts which (without double counting) would be included under shareholders' equity (including capital stock, additional paid-in capital and retained earnings) on the balance sheet for each member of the Regional Group determined in accordance with Agreement Accounting Principles. 

"Regional Guarantors" means Energizer Singapore and Sonca Products. 

"Regulation T", "Regulation U" or "Regulation X" means Regulation T, U or, as the case may be, X of the Board of Governors as from time to time in effect and all official rulings and interpretations thereunder or thereof. 

"Relevant Interbank Market" means the Singapore interbank market. 

"Repayment Instalment" means each instalment for repayment of the Facility A Loan specified in paragraph (a) of Clause 6.1 (Repayment of Facility A Loan). 

"Repeating Representations" means each of the representations set out in Clause 18 (Representations). 

	 
	 	-18-	 
	

	 

 

"Rollover Loan" means one or more Facility B Loans: 

(a)  made or to be made on the same day that one or more maturing Facility B Loans is or are due to be repaid; 

(b)  the aggregate amount of which is equal to or less than the maturing Facility B Loan(s); and 

(c)  made or to be made to the Borrower for the purpose of refinancing the maturing Facility B Loan(s). 

"Screen Rate" means: 

(a)  in relation to SIBOR, the SIBOR rate for US Dollars for the relevant period; and 

(b)  in relation to SOR, the swap offer rate for Singapore Dollars for the relevant period, 

displayed on page 50157 of the Moneyline Telerate screen under the caption "Association of Banks in Singapore SIBOR and Swap Offer Rate fixing at 11 am Singapore time". If the agreed page is replaced or service ceases to be available, the Agent may specify another page or service displaying the appropriate rate after consultation with the Borrower and the Lenders. 

"Security" means a mortgage, charge, pledge, lien or other security interest securing any obligation of any person or any other agreement or arrangement having a similar effect. 

"Selection Notice" means a notice substantially in the form set out in Part II of Schedule 3 (Requests) given in accordance with Clause 9 (Interest Periods) in relation to Facility A. 

"Senior Management Team" means (a) any of the president, any vice president (including any executive vice president), the chief financial officer, the treasurer, the chief executive officer, secretary or any other member of management of an Obligor and (b) any chief executive officer, president, vice president, chief financial officer, treasurer, secretary or any other member of management of any Material Domestic Subsidiary. 

"Senior Note Purchase Agreements" means, collectively, the 2000 Note Purchase Agreement and the 2003 Note Purchase Agreement. 

"Senior Notes" means, collectively, the 2000 Senior Notes and the 2003 Senior Notes. 

"SIBOR" means, in relation to any Loan: 

(a)  the applicable Screen Rate; or 

(b)  (if no Screen Rate is available for the Interest Period of that Loan) the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Agent at its request quoted by the Reference Banks to leading banks in the Singapore interbank market, 

as of the Specified Time on the Quotation Day for the offering of deposits in US Dollars for a period comparable to the Interest Period for that Loan. 

"Singapore" means The Republic of Singapore. 

	 
	 	-19-	 
	

	 

 

"Singapore Business Day" means a day (other than Saturday or Sunday) on which deposits may be dealt in on the Relevant Interbank Market and banks are open for general business in Singapore. 

"Singapore Dollars" or "S$" means the lawful currency of Singapore. 

"Sonca Products" means Sonca Products Ltd, a company registered in Hong Kong under registration number 167972. 

"SOR" means, in relation to any Loan: 

(a)  the applicable Screen Rate as of the Specified Time on the Quotation Day for the offering of deposits in Singapore Dollars for a period comparable to the Interest Period for that Loan; or 

(b)  (if no Screen Rate is available for Singapore Dollars for the Interest Period of that Loan) the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Agent at its request quoted by the Reference Banks to leading banks in the Singapore interbank market, to be, in relation to the Interest Period for that Loan, equal to Y (rounded upwards to four decimal places) calculated by each Reference Bank in accordance with the following formula: 

 

	
 
	
 
	
 
	
365 
	
 
	
F 
	
 
	
36500 
	
 
	
F 
	
 
	
 
	
365 

	
Y 
	
= 
	
R 
	

	
+ 
	

 
	
+ 
	

 
	
+ 
	

 
	
R 
	
X 
	

 

	
 
	
 
	
 
	
360 
	
 
	
S 
	
 
	
N 
	
 
	
S 
	
 
	
 
	
360 

where

 

	
F 
	
= 
	
the premium (being a positive number) or the discount (being a negative number), as the case may be, which would have been paid or received by such Reference Bank in offering to sell US Dollars forward in exchange for Singapore Dollars on the last day of that Interest Period in the Singapore interbank market as of the Specified Time on the Quotation Day; 

	
S 
	
= 
	
the exchange rate at which such Reference Bank sells US Dollars spot in exchange for Singapore Dollars in the Singapore foreign exchange market, as quoted by such Reference Bank as of the Specified Time on the Quotation Day; 

	
R 
	
= 
	
the rate at which such Reference Bank is offering US Dollar deposits for that Interest Period in an amount comparable to the US Dollar equivalent of that Loan (such US Dollar equivalent to be determined by such Reference Bank at such rate or rates as such Reference Bank determines to be most appropriate) to prime banks in the Singapore interbank market as of the Specified Time on the Quotation Day; and 

	
N 
	
= 
	
the actual number of days in that Interest Period. 

 

"Specified Time" means a time determined in accordance with Schedule 7 (Timetables). 

	 
	 	-20-	 
	

	 

 

"SPV" means any special purpose entity established for the purpose of purchasing receivables in connection with a receivables securitisation transaction permitted under the terms of this Agreement. 

"Standing Payment Instruction" means: 

(a)  in relation to an Original Lender, payment instructions set out below the name of that Lender on Schedule 10 (Standing Payment Instructions); 

(b)  in relation to any other Lender, payment instructions set out in the Transfer Certificate to which that Lender is signatory, 

or such other payment instructions as that Lender may notify to the Agent by not less than 5 Business Day's notice. 

"Subsidiary" means, in relation to the Borrower, a subsidiary within the meaning of section 5 of the Companies Act and, in relation to any other person (the "first Person") at any particular time, any other person which is then either controlled, or more than 50% of whose issued ordinary or common equity share capital or ownership interests having ordinary voting power (or the like) is or are then beneficially owned, directly or indirectly, by the first Person. 

"Tax" means any tax, levy, impost, duty or other charge or withholding of a similar nature (including any penalty or interest payable in connection with any failure to pay or any delay in paying any of the same). 

"Termination Date" means: 

(a)  in relation to Facility A, the date which is 5 years after the date of this Agreement; and 

(b)  in relation to Facility B, the date which is 3 years after the date of this Agreement. 

"Third Parties Act" means the Contract (Rights of Third Parties) Act 1999 of the United Kingdom. 

"Total Borrowings" has the meaning given hereto in Clause 20 (Financial covenants). 

"Total Commitments" means the aggregate of the Total Facility A Commitments and the Total Facility B Commitments. 

"Total Facility A Commitments" means the aggregate of the Facility A Commitments, being US$125,000,000 at the date of this Agreement. 

"Total Facility B Commitments" means the aggregate of the Facility B Commitments, being S$220,000,000 at the date of this Agreement. 

"Transfer Certificate" means a certificate substantially in the form set out in Schedule 4 (Form of Transfer Certificate), in a recommended form of the APLMA from time to time or in any other form agreed between the Agent and the Borrower. 

"Transfer Date" means, in relation to a transfer, the later of: 

(a)  the proposed Transfer Date specified in the Transfer Certificate; and 

(b)  the date on which the Agent executes the Transfer Certificate. 

	 
	 	-21-	 
	

	 

 

"2000 Note Purchase Agreement" means that certain Note Purchase Agreement dated as of 1 April 2000 among Energizer Holdings and the "Purchasers" referred to therein, under which Energizer Holdings has issued senior unsecured notes in the aggregate principal amount of US$175,000,000 (the "2000 Senior Notes"), which shall be pari passuwith the obligations hereunder and any obligation under the Hedging Documents, as such Note Purchase Agreement may be amended, modified or supplemented from time to time in a manner that is not materially adverse to the interests of the Lenders. 

"2000 Receivables Purchase Agreement" means that certain Receivables Purchase Agreement, dated as of 4 April 2000, as amended, extended or replaced in a manner permitted by this Agreement, among Energizer Receivables Funding Corporation, a Delaware corporation, as the seller thereunder, Eveready Battery Company, a Delaware Corporation, as the servicer thereunder, Falcon Asset Securitization Corporation and Bank One, as the agent thereunder. 

"2000 Receivables Sale Agreement" means that certain Receivables Sale Agreement, dated as of 4 April 2000, as amended, extended or replaced in a manner permitted by this Agreement, between Eveready Battery Company, Inc., a Delaware corporation, and Energizer Receivables Funding Corporation, a Delaware corporation and SPV. 

"2000 Senior Notes" has the meaning given to it in the definition of "2000 Note Purchase Agreement". 

"2003 Note Purchase Agreement" means that certain Note Purchase Agreement dated as of 1 June 2003 among Energizer Holdings and the "Purchasers" referred to therein, under which Energizer Holdings has issued senior unsecured notes in the aggregate principal amount of US$700,000,000 (the "2003 Senior Notes"), which shall be pari passuwith the obligations hereunder and any obligations under the Hedging Documents, as such Note Purchase Agreement may be amended, modified or supplemented from time to time in a manner that is not materially adverse to the interests of the Lenders. 

"2003 Senior Notes" has the meaning given to it in the definition of "2003 Note Purchase Agreement". 

"Unpaid Sum" means any sum due and payable but unpaid by an Obligor under the Finance Documents. 

"US" or "United States" means the United States of America. 

"US Dollars" or "US$" means the lawful currency of the United States of America. 

"US Facility" means the Revolving Credit Agreement dated 27 June 2003 among Energizer Holdings, the institutions listed therein as Lenders, Bank One, NA, as administrative agent, Citibank N.A., as syndication agent and Bank of America, N.A. as documentation agent. 

"Utilisation" means a utilisation of a Facility. 

"Utilisation Date" means the date of a Utilisation, being the date on which the relevant Loan is to be made. 

"Utilisation Request" means a notice substantially in the form set out in Part I of Schedule 3 (Requests). 

	 
	 	-22-	 
	

	 

 

1.2 Construction 

(a)  Unless a contrary indication appears, any reference in this Agreement to: 

(i)   the "Agent", the "Arranger", any "Finance Party", any "Lender", any "Obligor" or any "Party" shall be construed so as to include its successors in title, permitted assigns and permitted transferees; 

(ii)  "assets" includes present and future properties, revenues and rights of every description; 

(iii)  the "control" or "controlling" of one person (the "first person") by another person (the "second person") or the person being "controlled" by the second person means that the second person (whether directly or indirectly and whether by the ownership of share capital, the possession of voting power, contract or otherwise) has the power to appoint and/or remove all or a majority of the members of the board of directors or other governing body of the first person or otherwise controls or has the power of control over the affairs and policies of the first person and for the purposes of the definition of "Affiliate" in Clause 1.1 (Definitions), other than where such definition is referred to in the definition of "Hedging Bank", means, in addition to the foregoing, that the second person is the beneficial owner of greater than 10 per cent. or more of any class of voting shares or securities or other voting interests of the first person; 

(iv) a "Finance Document" or any other agreement or instrument is a reference to that Finance Document or other agreement or instrument as amended or novated; 

(v)  a "guarantee" also includes an indemnity, and any other obligation (whatever called) of any person to pay, purchase, provide funds (whether by the advance of money, the purchase of or subscription for shares or other securities, the purchase of assets or services, or otherwise) for the payment of, indemnify against the consequences of default in the payment of, or otherwise be responsible for, any indebtedness of any other person. 

(vi)  "indebtedness" includes any obligation (whether incurred as principal or as surety) for the payment or repayment of money, whether present or future, actual or contingent; 

(vii) a "person" includes any person, firm, company, corporation, government, state or agency of a state or any association, trust or partnership (whether or not having separate legal personality) or two or more of the foregoing; 

(viii)a "regulation" includes any regulation, rule, official directive, request or guideline (whether or not having the force of law) of any governmental, intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation; 

(ix)  a provision of law is a reference to that provision as amended or re-enacted; and 

(x)   a time of day is a reference to Singapore time. 

(b)  Section, Clause and Schedule headings are for ease of reference only. 

	 
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(c)  Unless a contrary indication appears, a term used in any other Finance Document or in any notice or certificate given under or in connection with any Finance Document has the same meaning in that Finance Document, notice or certificate as in this Agreement. 

(d)  A Default (other than an Event of Default) is "continuing" if it has not been remedied or waived and an Event of Default is "continuing" if it has not been waived. 

1.3 Third Party Rights 

(a)  Except as provided in a Finance Document, the terms of a Finance Document may be enforced and enjoyed only by a Party to it and the operation of the Third Parties Act is excluded. 

(b)  Notwithstanding any provision of any Finance Document, the consent of any person who is not a party to a Finance Document is not required to vary, rescind or terminate that Finance Document. 

	 
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SECTION 2 

THE FACILITIES 

2.   The Facilities 

2.1 The Facilities 

Subject to the terms of this Agreement: 

(a)  the Facility A Lenders make available to the Borrower, a term loan facility in US Dollars in an aggregate amount equal to the Total Facility A Commitments; and 

(b)  the Facility B Lenders make available to the Borrower, a revolving loan facility in Singapore Dollars in an aggregate amount equal to the Total Facility B Commitments. 

2.2 Finance Parties' rights and obligations 

(a)  The obligations of each Finance Party under the Finance Documents are several. Failure by a Finance Party to perform its obligations under the Finance Documents does not affect the obligations of any other Party under the Finance Documents. No Finance Party is responsible for the obligations of any other Finance Party under the Finance Documents. 

(b)  The rights of each Finance Party under or in connection with the Finance Documents are separate and independent rights and any debt arising under the Finance Documents to a Finance Party from an Obligor shall be a separate and independent debt. 

(c)  A Finance Party may, except as otherwise stated in the Finance Documents, separately enforce its rights under the Finance Documents. 

3.   Purpose 

3.1 Purpose 

Without prejudice to the other provisions of this Agreement, the Borrower shall apply all amounts borrowed by it under each Facility towards refinancing existing Financial Indebtedness of the Group (including intercompany obligations) and otherwise for general corporate purposes of the Group. 

3.2 Monitoring 

No Finance Party is bound to monitor or verify the application of any amount borrowed pursuant to this Agreement. 

4.   Conditions of Utilisation 

4.1 Initial conditions precedent 

The Borrower may not deliver a Utilisation Request unless the Agent has received all of the documents and other evidence listed in and appearing to comply with the requirements of Schedule 2 (Conditions precedent) in form and substance satisfactory to the Agent. The Agent shall notify the Borrower and the Lenders promptly upon being so satisfied. 

	 
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4.2 Further conditions precedent 

The Lenders will only be obliged to comply with Clause 5.4 (Lenders' participation) if on the date of the Utilisation Request and on the proposed Utilisation Date: 

(a)  in the case of the first Utilisation, the Agent has received evidence, in a form satisfactory to it, that Energizer Holdings has given irrevocable written notice of prepayment of certain of its existing Financial Indebtedness, such prepayment to be made on or before the date falling 2 Business Days after the first Utilisation Date; 

(b)  in the case of a Rollover Loan, no Event of Default is continuing or would result from the proposed Loan and, in the case of any other Loan, no Default is continuing or would result from the proposed Loan; and 

(c)  the Repeating Representations to be made by each Obligor are true in all material respects. 

4.3 Maximum number of Loans 

The Borrower may not deliver a Utilisation Request if as a result of the proposed Utilisation: 

(a)  more than one Facility A Loan would be outstanding; or 

(b)  more than five Facility B Loans would be outstanding. 

	 
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SECTION 3 

UTILISATION 

5.   Utilisation 

5.1 Delivery of a Utilisation Request 

The Borrower may utilise a Facility by delivery to the Agent of a duly completed Utilisation Request not later than the Specified Time. 

5.2 Completion of a Utilisation Request 

(a)  Each Utilisation Request is irrevocable and will not be regarded as having been duly completed unless: 

(i)   it identifies the Facility to be utilised; 

(ii)  the proposed Utilisation Date is a Business Day within the Availability Period applicable to that Facility; 

(iii)  the currency and amount of the Utilisation comply with Clause 5.3 (Currency and amount); 

(iv)  the proposed Interest Period complies with Clause 9 (Interest Periods); and 

(v)  it specifies the account and bank (which must be in the principal financial centre of the country of the currency of the Utilisation) to which the proceeds of the Utilisation are to be credited. 

(b)  Only one Loan may be requested in each Utilisation Request. 

5.3 Currency and amount 

(a)  The currency specified in a Utilisation Request: 

(i)   relating to Facility A, must be US Dollars; and 

(ii)  relating to Facility B, must be Singapore Dollars. 

(b)  The amount of the proposed Loan must be: 

(i)   if the Facility to be utilised is Facility A, a minimum of US$10,000,000 and an integral multiple of US$1,000,000 or, if less, the Available Facility for Facility A; or 

(ii)  if the Facility to be Utilised is Facility B, a minimum of S$10,000,000 and an integral multiple of S$1,000,000 or, if less, the Available Facility for Facility B; and 

(iii)  in any event such that its amount is less than or equal to the Available Facility for the relevant Facility. 

5.4 Lenders' participation 

(a)  If the conditions set out in this Agreement have been met, each Facility A Lender shall make its participation in each Facility A Loan available by the Utilisation Date through its Facility Office and each Facility B Lender shall make its participation in each Facility B Loan available by the Utilisation Date through its Facility Office. 

	 
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(b)  The amount of each Lender's participation in each Loan will be equal to the proportion borne by its Available Commitment to the Available Facility immediately prior to making the Loan. 

(c)  The Agent shall notify (i) each Facility A Lender of the amount of the Facility A Loan and the amount of its participation in the Facility A Loan and (ii) each Facility B Lender of the amount of each Facility B Loan and the amount of its participation in that Facility B Loan, in each case, by the Specified Time. 

	 
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SECTION 4 

REPAYMENT, PREPAYMENT AND CANCELLATION 

6.   Repayment 

6.1 Repayment of Facility A Loans 

(a)  The Facility A Loan outstanding at the end of the Availability Period for Facility A shall be repaid on the following dates in the following amounts until such time as no amount remains outstanding under Facility A: 

 

	
Facility A Repayment Date 
	
Repayment Instalment 

	
6 Months after the date of this Agreement 
	
US$10,000,000 

	
12 Months after the date of this Agreement 
	
US$10,000,000 

	
18 Months after the date of this Agreement 
	
US$10,000,000 

	
24 Months after the date of this Agreement 
	
US$10,000,000 

	
30 Months after the date of this Agreement 
	
US$10,000,000 

	
36 Months after the date of this Agreement 
	
US$15,000,000 

	
42 Months after the date of this Agreement 
	
US$15,000,000 

	
48 Months after the date of this Agreement 
	
US$15,000,000 

	
54 Months after the date of this Agreement 
	
US$15,000,000 

	
Termination Date relating to Facility A 
	
US$15,000,000 

(b)  The Borrower may not reborrow any part of Facility A which is repaid. 

6.2 Repayment of Facility B Loans 

Subject to Clause 30.4 (Netting of payments), the Borrower shall repay each Facility B Loan on the last day of its Interest Period. 

7.   Prepayment and cancellation 

7.1 Illegality 

(a)  If it becomes unlawful in any applicable jurisdiction for a Lender to perform any of its obligations as contemplated by this Agreement or to fund or maintain its participation in any Loan: 

(i)   that Lender shall promptly notify the Agent upon becoming aware of that event; 

(ii)  upon the Agent notifying the Borrower (the "notification date"), that Lender's Commitment shall be treated as if cancelled for all purposes of this Agreement (other than Clause 25 (Changes to the Lenders)), and that Lender shall have no obligation to fund or participate in any Loan to be made following the notification date, and the Borrower may deliver a notice pursuant to Clause 25.7 (Replacement of certain Lenders) requesting a replacement of that Lender. 

	 
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(b)  If by the earlier of (A) the sixth Business Day following delivery of the Borrower's notice pursuant to Clause 25.7 (Replacement of certain Lenders), (B) the date specified by the Lender in the notice delivered to the Agent pursuant to sub-paragraph (a)(i) of this Clause 7.1 (such date being no earlier than the last day of any applicable grace period permitted by law), and (C) the last day of the Interest Period for each Loan outstanding on the notification date (the earlier of such dates being the "relevant date"), that Lender has not been replaced: 

(i)   the Commitment of that Lender will be immediately cancelled; and 

(ii)  the Borrower shall repay that Lender's participation in the Loans on the last day of the Interest Period for each Loan occurring on or after the relevant date or, if earlier, the date specified by the Lender in the notice delivered to the Agent pursuant to sub-paragraph (a)(i) of this Clause 7.1. 

7.2 Change of control 

If Energizer Holdings ceases to wholly own (directly or indirectly) and control any member of the Regional Group or there is a Change of Control: 

(a)  the Borrower shall promptly notify the Agent upon becoming aware of that event; 

(b)  the Borrower may not make a Utilisation (except for a Rollover Loan) unless otherwise agreed by the Majority Lenders; and 

(c)  if the Majority Lenders so require, the Agent shall, by not less than 30 days' notice to the Borrower, cancel the Facilities and declare all outstanding Loans, together with accrued interest, and all other amounts accrued under the Finance Documents immediately due and payable, whereupon the Facilities will be cancelled and all such outstanding amounts will become immediately due and payable. 

7.3 Voluntary cancellation of Facility B 

The Borrower may, if it gives the Agent not less than 5 Business Days' (or such shorter period as the Majority Facility B Lenders may agree) prior notice, cancel the whole or any part (being a minimum amount of S$10,000,000 and an integral multiple of S$1,000,000) of the Available Facility relating to Facility B only. Any cancellation under this Clause 7.3 shall reduce the Commitments of the Lenders rateably under Facility B. 

7.4 Mandatory Cancellation 

The Available Facility relating to each Facility shall be cancelled immediately following the last day of the Availability Period relating to that Facility. 

7.5 Voluntary prepayment of Facility A Loan 

(a)  Subject to paragraph (b) below and paragraph (h) of Clause 7.7 (Restrictions), the Borrower may, if it gives the Agent not less than 5 Business Days' (or such shorter period as the Majority Facility A Lenders may agree) prior notice, prepay the whole or any part of the Facility A Loan (but, if in part, being an amount that reduces the Facility A Loan by a minimum amount of US$10,000,000 and an integral multiple of US$1,000,000). 

(b)  The Facility A Loan may only be prepaid after the last day of the Availability Period (or, if earlier, the day on which the applicable Available Facility is zero). 

	 
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7.6 Right of repayment and cancellation in relation to a single Lender 

(a)  If: 

(i)   by reason of the introduction after the date of this Agreement of or any change after the date of this Agreement in (or in the interpretation, administration or application of) any law or regulation, any sum payable to any Lender by an Obligor is required to be increased under paragraph (c) of Clause 12.2 (Tax gross-up) to a greater extent than would have been required had that payment been made on the date of this Agreement; or 

(ii)  any Lender claims indemnification from the Borrower under Clause 12.3 (Tax indemnity) or Clause 13.1 (Increased costs), 

the Borrower may, whilst the circumstance giving rise to the requirement or indemnification continues, give the Agent notice of cancellation of the Commitment of that Lender and its intention to procure the repayment of that Lender's participation in the Loans. 

(b)  On receipt of a notice referred to in paragraph (a) above, the Commitment of that Lender shall immediately be reduced to zero. 

(c)  On the last day of each Interest Period which ends after the Borrower has given notice under paragraph (a) above (or, if earlier, the date specified by the Borrower in that notice), the Borrower shall repay that Lender's participation in each Loan. 

7.7 Restrictions 

(a)  Any notice of cancellation or prepayment given by any Party under this Clause 7 shall be irrevocable and, unless a contrary indication appears in this Agreement, shall specify the date or dates upon which the relevant cancellation or prepayment is to be made and the amount of that cancellation or prepayment. 

(b)  Any prepayment under this Agreement shall be made together with accrued interest on the amount prepaid and, subject to any Break Costs, without premium or penalty. 

(c)  The Borrower may not reborrow any part of Facility A which is prepaid. 

(d)  Unless a contrary indication appears in this Agreement, any part of Facility B which is prepaid may be reborrowed in accordance with the terms of this Agreement. 

(e)  The Borrower shall not repay or prepay all or any part of the Loans or cancel all or any part of the Commitments except at the times and in the manner expressly provided for in this Agreement. 

(f)   No amount of the Total Commitments cancelled under this Agreement may be subsequently reinstated. 

(g)  If the Agent receives a notice under this Clause 7 it shall promptly forward a copy of that notice to either the Borrower or the affected Lender, as appropriate. 

(h)  Any prepayment under this Clause 7 (Prepayment and cancellation) shall satisfy the obligations under Clause 6.1 (Repayment of Facility A Loans) in inverse order of maturity. 

 

	 
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SECTION 5 

COSTS OF UTILISATION 

8.         Interest 

8.1      Calculation of interest 

(a)  The rate of interest on the Facility A Loan for each Interest Period is the percentage rate per annum which is the aggregate of the applicable: 

(i)   Margin; and 

(ii)  SIBOR. 

(b)  The rate of interest on each Facility B Loan for each Interest Period is the percentage rate per annum which is the aggregate of the applicable: 

(i)   Margin; and 

(ii)  SOR. 

8.2       Payment of interest 

The Borrower shall pay accrued interest on each Loan on the last day of each Interest Period (and, if the Interest Period is longer than six Months, on the dates falling at six monthly intervals after the first day of the Interest Period). 

8.3       Default interest 

(a)  If an Obligor fails to pay any amount payable by it under a Finance Document on its due date, or after the occurrence of an Event of Default and for so long as that Event of Default is continuing, interest shall accrue on the overdue amount and any other amount owed to the Finance Parties, whether or not due, from the due date of that amount or the date of that Event of Default, as the case may be, up to the date of actual payment (both before and after judgment) at a rate which, subject to paragraph (b) below, is the sum of 2 per cent and the rate which would have been payable if such amounts had, during the relevant period, constituted a Loan in the currency of such amounts for successive Interest Periods, each of a duration selected by the Agent (acting reasonably). Any interest accruing under this Clause 8.3 shall be immediately payable by the Obligor on demand by the Agent. 

(b)  If any Event of Default occurs on, or any overdue amount consists of all or part of a Loan which became due on, a day which was not the last day of an Interest Period relating to that Loan: 

(i)   the first Interest Period for which default interest accrues shall have a duration equal to the unexpired portion of the current Interest Period relating to that Loan; and 

(ii)  the rate of interest applying to the relevant amount during that first Interest Period shall be the sum of 2 per cent and the rate which would have applied if the overdue amount had not become due or the Event of Default had not occurred. 

(c)  Default interest (if unpaid) arising on the relevant amount will be compounded with that amount at the end of each Interest Period applicable to that amount but will remain immediately due and payable. 

	 
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8.4       Notification of rates of interest 

The Agent shall promptly notify the relevant Lenders and the Borrower of the determination of a rate of interest under this Agreement. 

9.         Interest Periods 

9.1       Selection of Interest Periods 

(a)  The Borrower may select an Interest Period for a Loan in the Utilisation Request for that Loan or (if the Loan has already been borrowed) in a Selection Notice. 

(b)  Each Selection Notice for a Facility A Loan is irrevocable and must be delivered to the Agent by the Borrower not later than the Specified Time. 

(c)  If the Borrower fails to deliver a Selection Notice to the Agent in accordance with paragraph (b) above, the relevant Interest Period will be one Month. 

(d)  Subject to this Clause 9, the Borrower may select an Interest Period of one, two, three or six Months or any other period agreed between the Borrower and the Agent (acting on the instructions of all the Lenders participating in the relevant Loan). 

(e)  An Interest Period for a Loan shall not extend beyond the Termination Date applicable to its Facility. 

(f)   Each Interest Period for a Facility A Loan shall start on the Utilisation Date or (if already made) on the last day of the preceding Interest Period for that Loan. 

(g)  A Facility B Loan has one Interest Period only. 

9.2      Non-Business Days 

If an Interest Period would otherwise end on a day which is not a Business Day, that Interest Period will instead end on the next Business Day in that calendar month (if there is one) or the preceding Business Day (if there is not). 

10.      Changes to the calculation of interest 

10.1    Absence of quotations 

Subject to Clause 10.2 (Market disruption), if SIBOR or, if applicable, SOR is to be determined by reference to the Reference Banks but a Reference Bank does not supply a quotation by the Specified Time on the Quotation Day, the applicable SIBOR or SOR shall be determined on the basis of the quotations of the remaining Reference Banks. 

10.2    Market disruption 

(a)  If a Market Disruption Event occurs in relation to a Loan for any Interest Period, then the rate of interest on each Lender's share of that Loan for the Interest Period shall be the rate per annum which is the sum of: 

(i)   the Margin; and 

(ii)  the rate notified to the Agent by that Lender as soon as practicable and in any event before interest is due to be paid in respect of that Interest Period, to be that which expresses as a percentage rate per annum the cost to that Lender of funding its participation in that Loan from whatever source it may reasonably select. 

	 
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(b)  In this Agreement "Market Disruption Event" means: 

(i)   at or about noon on the Quotation Day for the relevant Interest Period the Screen Rate is not available or the Screen Rate is zero or negative and none or only one of the Reference Banks supplies a rate to the Agent to determine SIBOR or, if applicable, SOR for the relevant currency and Interest Period; or 

(ii)  before close of business in Singapore on the Quotation Day for the relevant Interest Period, the Agent receives notifications from a Lender or Lenders (whose participations in a Loan exceed 35 per cent. of that Loan) that the cost to it or them of obtaining matching deposits in the Relevant Interbank Market would be in excess of SIBOR or, if applicable, SOR. 

10.3     Alternative basis of interest or funding 

(a)  If a Market Disruption Event occurs and the Agent or the Borrower so requires, the Agent and the Borrower shall enter into negotiations (for a period of not more than thirty days) with a view to agreeing a substitute basis for determining the rate of interest. 

(b)  Any alternative basis agreed pursuant to paragraph (a) above shall, with the prior consent of all the Lenders and the Borrower, be binding on all Parties. 

10.4     Break Costs 

(a)  The Borrower shall, within three Business Days of demand by a Finance Party, pay to that Finance Party its Break Costs attributable to all or any part of a Loan or Unpaid Sum being paid by the Borrower on a day other than the last day of an Interest Period for that Loan or Unpaid Sum. 

(b)  Each Lender shall, as soon as reasonably practicable after a demand by the Agent, provide a certificate confirming the amount of its Break Costs for any Interest Period in which they accrue. 

11.       Fees 

11.1     Commitment fee 

(a)  The Borrower shall pay to the Agent (for the account of each Lender) a fee in Singapore Dollars computed at the rate of 0.45 per cent. per annum on that Lender's Available Commitment under Facility B for the Availability Period applicable to Facility B. 

(b)  The accrued commitment fee is payable on the last day of each successive period of three Months which ends during the Availability Period for Facility B, on the last day of that Availability Period and, if cancelled in full, on the cancelled amount of the relevant Lender's Commitment at the time the cancellation is effective. 

11.2      Arrangement fee 

The Borrower shall pay to the Arranger an arrangement fee in the amount and at the times agreed in a Fee Letter. 

	 
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11.3     Agency fee 

The Borrower shall pay to the Agent (for its own account) an agency fee in the amount and at the times agreed in a Fee Letter. 

	 
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SECTION 6 

ADDITIONAL PAYMENT OBLIGATIONS 

12.      Tax gross up and indemnities 

12.1     Definitions 

(a)  In this Agreement: 

"Tax Credit" means a credit against, relief or remission for, or repayment of any Tax. 

"Tax Deduction" means a deduction or withholding for or on account of Tax from a payment under a Finance Document. 

"Tax Payment" means either the increase in a payment made by an Obligor to a Finance Party under Clause 12.2 (Tax gross-up) or a payment under Clause 12.3 (Tax indemnity). 

(b)  Unless a contrary indication appears, in this Clause 12 a reference to "determines" or "determined" means a determination made in the absolute discretion of the person making the determination. 

12.2     Tax gross-up 

(a)  All payments to be made by an Obligor to any Finance Party under or in connection with a Finance Document shall be made free and clear of and without any Tax Deduction, unless a Tax Deduction is required by law in which case the sum payable by that Obligor shall be increased to the extent necessary to ensure that the Finance Party concerned receives a sum, net of any Tax Deduction, equal to the sum which it would have received if no Tax Deduction had been required. 

(b)  An Obligor shall promptly upon becoming aware that it must make a Tax Deduction (or that there is any change in the rate or the basis of a Tax Deduction) notify the Agent accordingly. Similarly, a Lender shall notify the Agent on becoming so aware in respect of a payment payable to that Lender. If the Agent receives such notification from a Lender it shall notify the Borrower and that Obligor. 

(c)  If an Obligor is required to make a Tax Deduction, that Obligor shall make that Tax Deduction and any payment required in connection with that Tax Deduction within the time allowed and in the minimum amount required by law. 

(d)  Within thirty days of making either a Tax Deduction or any payment required in connection with that Tax Deduction, the Obligor making that Tax Deduction shall deliver to the Agent for the Finance Party entitled to the payment an original receipt (or certified copy thereof) evidencing to the reasonable satisfaction of that Finance Party that the Tax Deduction has been made or (as applicable) any appropriate payment has been paid to the relevant taxing authority. 

12.3     Tax indemnity 

(a)  Without prejudice to Clause 12.2 (Tax gross-up), if any Finance Party is required to make any payment of or on account of Tax on or in relation to any sum received or receivable under or in connection with the Finance Documents (including any sum deemed for purposes of Tax to be received or receivable by such Finance Party, whether or not actually received or receivable) or

 

	 
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if any liability in respect of any such payment is asserted, imposed, levied or assessed against any Finance Party, the Borrower shall (within three Business Days of demand by the Agent) indemnify the Finance Party which determined it has suffered a loss or liability as a result against such payment or liability together with any interest, penalties, costs and expenses payable or incurred in connection therewith. 

(b)  Paragraph (a) above shall not apply: 

(i)   with respect to any Tax imposed: 

(A)  by the jurisdiction in which that Finance Party is incorporated; or 

(B)  by the jurisdiction in which its Facility Office is located, 

which is calculated by reference to the net income actually received or receivable (but, for the avoidance of doubt, not including any sum deemed for purposes of Tax to be received or receivable by that Finance Party but not actually received or receivable) by that Finance Party; or 

(ii)  to the extent a loss, liability or cost is compensated for by an increased payment under Clause 12.2 (Tax gross-up). 

(c)  A Finance Party making, or intending to make, a claim under paragraph (a) above shall promptly notify the Agent of the event which will give, or has given, rise to the claim, whereupon the Agent shall notify the Borrower. 

(d)  A Finance Party shall, on receiving a payment from an Obligor under this Clause 12.3, notify the Agent. 

12.4     Tax Credit 

If an Obligor makes a Tax Payment and the relevant Finance Party determines that: 

(a)  a Tax Credit is attributable either to an increased payment of which that Tax Payment forms part, or to that Tax Payment; and 

(b)  that Finance Party has obtained, utilised and fully retained that Tax Credit on an affiliated group basis, 

the Finance Party shall pay an amount to the Obligor which that Finance Party determines will leave it (after that payment) in the same after-Tax position as it would have been in had the Tax Payment not been required to be made by the Obligor. 

12.5     Stamp taxes 

The Borrower shall pay and, within three Business Days of demand, indemnify each Finance Party against any cost, loss or liability that Finance Party incurs in relation to all stamp duty, registration and other similar Taxes payable in respect of any Finance Document. 

12.6     Indirect Tax 

(a)  All consideration expressed to be payable under a Finance Document by any Party to a Finance Party shall be deemed to be exclusive of any Indirect Tax. If any Indirect Tax is chargeable on any supply made by any Finance Party to any Party in connection with a Finance Document, that Party shall pay (unless that Party is the Agent or the Arranger, in which case the Borrower shall 

 

	 
	 	-37-	 
	

	 

 

pay) to the Finance Party (in addition to and at the same time as paying the consideration) an amount equal to the amount of the Indirect Tax. 

(b)  Where a Finance Document requires any Party to reimburse a Finance Party for any costs or expenses, that Party shall also at the same time pay and indemnify the Finance Party against all Indirect Tax incurred by the Finance Party in respect of the costs or expenses. 

13.       Increased costs 

13.1     Increased costs 

(a)  Subject to Clause 13.3 (Exceptions) the Borrower shall, within three Business Days of a demand by the Agent, pay for the account of a Finance Party the amount of any Increased Costs incurred by that Finance Party or any of its Affiliates as a result of (i) the introduction after the date of this Agreement of or any change in (or in the interpretation, administration or application of) any law or regulation or (ii) compliance with any law or regulation made after the date of this Agreement provided that if the Borrower is required to pay the amount of any Increased Costs incurred by such Finance Party, and such Finance Party is a Lender, the Borrower may issue a notice pursuant to Clause 25.7 (Replacement of certain Lenders ). The term "law" and "regulation" in this paragraph (a) shall include, without limitation, any law or regulation concerning capital adequacy, prudential limits, liquidity reserve assets or Tax. 

(b)  In this Agreement "Increased Costs" means: 

(i)   a reduction in the rate of return from any Facility or on a Finance Party's (or its Affiliate's) overall capital (including, without limitation, as a result of any reduction in the rate of return on capital brought about by more capital being required to be allocated by that Finance Party or one of its Affiliates); 

(ii)  an additional or increased cost; or 

(iii)  a reduction of any amount due and payable under any Finance Document, 

which is incurred or suffered by a Finance Party or any of its Affiliates to the extent that it is attributable to that Finance Party having entered into its Commitment or funding or performing its obligations under any Finance Document. 

13.2     Increased cost claims 

(a)  A Finance Party intending to make a claim pursuant to Clause 13.1 (Increased costs) shall notify the Agent of the event giving rise to the claim, following which the Agent shall promptly notify the Borrower. 

(b)  Each Finance Party shall, as soon as practicable after a demand by the Agent, provide a certificate confirming the amount of its Increased Costs. 

13.3     Exceptions 

(a)  Clause 13.1 (Increased costs) does not apply to the extent any Increased Cost is: 

(i)   attributable to a Tax Deduction required by law to be made by an Obligor; 

	 
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(ii)  compensated for by Clause 12.3 (Tax indemnity) (or would have been compensated for under Clause 12.3 (Tax indemnity) but was not so compensated solely because any of the exclusions in paragraph (b) of Clause 12.3 (Tax indemnity) applied); or 

(iii)  attributable to the wilful breach by the relevant Finance Party or its Affiliates of any law or regulation. 

(b)  In this Clause 13.3, a reference to a "Tax Deduction" has the same meaning given to the term in Clause 12.1 (Definitions). 

14.       Other indemnities 

14.1     Currency indemnity 

(a)  If any sum due from an Obligor under the Finance Documents (a "Sum"), or any order, judgment or award given or made in relation to a Sum, has to be converted from the currency (the "First Currency") in which that Sum is payable into another currency (the "Second Currency") for the purpose of: 

(i)   making or filing a claim or proof against that Obligor; 

(ii)  obtaining or enforcing an order, judgment or award in relation to any litigation or arbitration proceedings, 

that Obligor shall as an independent obligation, within three Business Days of demand, indemnify each Finance Party to whom that Sum is due against any cost, loss or liability arising out of or as a result of the conversion including any discrepancy between (A) the rate of exchange used to convert that Sum from the First Currency into the Second Currency and (B) the rate or rates of exchange available to that person at the time of its receipt of that Sum. 

(b)  Each Obligor waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency or currency unit other than that in which it is expressed to be payable. 

14.2     Other indemnities 

The Borrower shall, within three Business Days of demand, indemnify each Finance Party against any cost, loss or liability incurred by that Finance Party as a result of: 

(a)  the occurrence of any Default; 

(b)  the Information Memorandum or any other information produced or approved by or on behalf of an Obligor in connection with the Facilities being or being alleged to be misleading and/or deceptive in any respect; 

(c)  any enquiry, investigation, subpoena (or similar order) or litigation with respect to any Obligor or with respect to the transactions contemplated or financed under the Finance Documents; 

(d)  the use of proceeds of any Loan; 

(e)  a failure by an Obligor to pay any amount due under a Finance Document on its due date, including without limitation, any cost, loss or liability arising as a result of Clause 29 (Sharing among the Finance Parties); 

	 
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(f)  funding, or making arrangements to fund, its participation in a Loan requested by the Borrower in a Utilisation Request but not made by reason of the operation of any one or more of the provisions of this Agreement (other than to the extent by reason of default or negligence by that Finance Party); or 

(g)  a Loan (or part of a Loan) not being prepaid in accordance with a notice of prepayment given by the Borrower. 

14.3     Indemnity to the Agent 

The Borrower shall promptly indemnify the Agent against any cost, loss or liability incurred by the Agent (acting reasonably) as a result of: 

(a)  investigating any event which it reasonably believes is a Default; or 

(b)  acting or relying on any notice, request or instruction which it reasonably believes to be genuine, correct and appropriately authorised. 

15.       Mitigation by the Lenders 

15.1     Mitigation 

(a)  Each Finance Party shall, in consultation with the Borrower, take all reasonable steps to mitigate any circumstances which arise and which would result in any amount becoming payable under or pursuant to, or cancelled pursuant to, any of Clause 7.1 (Illegality), Clause 12 (Tax gross-up and indemnities) (other than Clause 12.6 (Indirect Tax)) or Clause 13 (Increased costs) including (but not limited to) transferring its rights and obligations under the Finance Documents to another Affiliate or Facility Office (whether pursuant to a request from the Borrower under Clause 25.7 (Replacement of certain Lenders) or otherwise). 

(b)  Paragraph (a) above does not in any way limit the obligations of any Obligor under the Finance Documents. 

15.2     Limitation of liability 

(a)  The Borrower shall indemnify each Finance Party for all costs and expenses reasonably incurred by that Finance Party as a result of steps taken by it under Clause 15.1 (Mitigation). 

(b)  A Finance Party is not obliged to take any steps under Clause 15.1 (Mitigation ) if, in the opinion of that Finance Party (acting reasonably), to do so might be expected to be prejudicial to it. 

16.       Costs and expenses 

16.1     Transaction expenses 

The Borrower shall, within 3 Business Days of demand, pay the Agent and the Arranger the amount of all costs and out-of-pocket expenses (including legal fees) reasonably incurred by any of them in connection with the negotiation, preparation, printing, execution and syndication of: 

(a)  this Agreement and any other documents referred to in this Agreement; and 

(b)  any other Finance Documents executed after the date of this Agreement. 

	 
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16.2     Amendment costs 

If an Obligor requests an amendment, waiver or consent, the Borrower shall, within three Business Days of demand, reimburse the Agent for the amount of all costs and out-of-pocket expenses (including legal fees) reasonably incurred by the Agent in responding to, evaluating, negotiating or complying with that request or requirement. 

16.3     Enforcement costs 

The Borrower shall, within three Business Days of demand, pay to each Finance Party the amount of all costs and out-of-pocket expenses (including legal fees) incurred by that Finance Party in connection with the enforcement of, or the preservation of any rights under, any Finance Document. 

 

	 
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SECTION 7 

GUARANTEE 

17.      Guarantee and indemnity 

17.1     Guarantee and indemnity 

Each Guarantor irrevocably and unconditionally jointly and severally: 

(a)  guarantees to each Finance Party punctual performance by the Borrower of all the Borrower's obligations under the Finance Documents; 

(b)  undertakes with each Finance Party that whenever the Borrower does not pay any amount when due under or in connection with any Finance Document, that Guarantor shall immediately on demand pay that amount as if it was the principal obligor; and 

(c)  indemnifies each Finance Party immediately on demand against any cost, loss or liability suffered by that Finance Party: 

(i)   if any obligation guaranteed by it (or anything which would have been an obligation if not unenforceable, invalid or illegal) is or becomes unenforceable, invalid or illegal; or 

(ii)  if, as a result of the introduction of or any change in (or the interpretation, administration or application of) any law or regulation, or compliance with any law, regulation or administrative procedure made after the date of this Agreement, there is a change in the currency, timing, place or manner in which any obligation guaranteed by the Guarantor is payable, or there is a reduction in any amount receivable by a Finance Party under any Finance Document, 

in each case the amount of the cost, loss or liability shall be equal to the amount which that Finance Party would otherwise have been entitled to recover or receive. 

17.2     Continuing guarantee 

This guarantee is a continuing guarantee and will extend to the ultimate balance of sums payable by any Obligor under the Finance Documents, regardless of any intermediate payment or discharge in whole or in part. 

17.3     Reinstatement 

If any payment by an Obligor or any discharge given by a Finance Party (whether in respect of the obligations of any Obligor or any security for those obligations or otherwise) is avoided or reduced for any reason including, without limitation, as a result of insolvency, breach of fiduciary or statutory duties or any other reason: 

(a)  the liability of each Obligor shall continue as if the payment, discharge, avoidance or reduction had not occurred; and 

	 
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(b)  each Finance Party shall be entitled to recover the value or amount of that security or payment from each Obligor, as if the payment, discharge, avoidance or reduction had not occurred. 

17.4     Waiver of defences 

The obligations of each Guarantor under this Clause 17 will not be affected by an act, omission, matter or thing which, but for this Clause, would reduce, release or prejudice any of its obligations under this Clause 17 (without limitation and whether or not known to it or any Finance Party) including: 

(a)  any time, waiver or consent granted to, or composition with, any Obligor or other person; 

(b)  the release of any other Obligor or any other person under the terms of any composition or arrangement with any creditor of any member of the Group; 

(c)  the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, execute, take up or enforce, any rights against, or security over assets of, any Obligor or other person or any non-presentation or non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any security; 

(d)  any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of an Obligor or any other person; 

(e)  any amendment (however fundamental) or replacement of a Finance Document or any other document or security; 

(f)   any unenforceability, illegality or invalidity of any obligation of any person under any Finance Document or any other document or security; 

(g)  any insolvency or similar proceedings; or 

(h)  this Agreement or any other Finance Document not being executed by or binding against any person. 

17.5     Immediate recourse 

Each Guarantor waives any right it may have of first requiring any Finance Party (or any trustee or agent on its behalf) to proceed against or enforce any other rights or security or claim payment from any person before claiming from that Guarantor under this Clause 17. This waiver applies irrespective of any law or any provision of a Finance Document to the contrary. 

17.6     Appropriations 

Until all amounts which may be or become payable by the Obligors under or in connection with the Finance Documents have been irrevocably paid in full, each Finance Party (or any trustee or agent on its behalf) may: 

(a)  refrain from applying or enforcing any other moneys, security or rights held or received by that Finance Party (or any trustee or agent on its behalf) in respect of those amounts, or apply and enforce the same in such manner and order as it sees fit (whether against those amounts or otherwise) and no Guarantor shall be entitled to the benefit of the same; and 

	 
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(b)  hold in an interest-bearing suspense account any moneys received from any Guarantor or on account of any Guarantor's liability under this Clause 17. 

17.7     Deferral of Guarantors' rights 

Until all amounts which may be or become payable by the Obligors under or in connection with the Finance Documents have been irrevocably paid in full and unless the Agent otherwise directs, no Guarantor will exercise any rights which it may have by reason of performance by it of its obligations under the Finance Documents: 

(a)  to be indemnified by an Obligor; 

(b)  to claim any contribution from any other guarantor of, or provider of Security or any other assurance for, any Obligor's obligations under the Finance Documents; and/or 

(c)  to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Finance Parties under the Finance Documents or of any other guarantee or security taken pursuant to, or in connection with, the Finance Documents by any Finance Party, 

provided that, until such time as the US Facility ceases to be in effect, the foregoing shall not prohibit Energizer Holdings from receiving payment of any obligation owed to it by another Obligor for so long as the guarantees and indemnities given by Energizer Holdings in this Clause 17 remain in effect. 

17.8     Additional security 

This guarantee is in addition to and is not in any way prejudiced by any other guarantee or security now or subsequently held by any Finance Party. 

17.9     Benefits 

(a)  Each Guarantor acknowledges that: 

(i)   it will receive valuable direct or indirect benefits as a result of the transactions financed by the Finance Documents and entering into the Finance Documents to which it is a party is for its commercial benefit; 

(ii)  those benefits will constitute reasonably equivalent value and/or fair consideration for the purpose of any applicable law; 

(iii)  but for the agreement by each of the Guarantors to execute and deliver this Agreement, the Agent and the Lenders would not have made available the Facilities on the terms set forth in this Agreement; 

(iv)  each Finance Party has acted in good faith in connection with the guarantee given by each Guarantor and the transactions contemplated by the Finance Documents; and 

(v)  it has not incurred and does not intend to incur debts beyond its ability to pay as they mature. 

(b)  Energizer Holdings represents and warrants that, and shall ensure that at all times: 

(i)   the aggregate value (calculated as the lesser of fair valuation and present saleable value) of Energizer Holdings' assets is greater than the aggregate amount of its debts

	 
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 (including its obligations under the Finance Documents) and any amount that will be required to pay the probable liabilities in respect of those debts; 

(ii)  its capital is not unreasonably small to carry on its business as conducted or proposed to be conducted; and 

(iii)  it has not made a transfer or incurred any obligation under any Finance Document with the intent to hinder, delay or defraud any of its present or future creditors. 

(c)  Without limiting the generality of the foregoing, with respect to any obligation guaranteed under this Clause 17 that, in accordance with the original express terms of the Finance Document pursuant to which such obligation was created, was denominated in US Dollars or Singapore Dollars, each Guarantor affirms its guarantee, as a primary obligation, to pay the Agent (for the benefit of the Finance Parties) strictly in accordance with the terms of that Finance Document, including all amounts and in the currency expressly agreed to under that Finance Document. 

17.10   Currency Conversions 

(a)  Subject to paragraph (c) of Clause 17.9 (Benefits), each Guarantors' liability under this Agreement shall be to pay the Agent (for the benefit of the Finance Parties) the full amount of the Borrower's obligations pursuant to the Finance Documents in each currency in which they are for the time being denominated, regardless of any law, regulation or administrative procedures made after the date of this Agreement, provided that (i) if and to the extent that a Guarantor does not pay such amount in such currency the Agent may accept payment of all or part of such amount in any other currency and/or (ii) the Agent, wheresoever incorporated, may require a Guarantor, in substitution for its liability to pay such amount in such currency, to pay an amount in US Dollars or Singapore Dollars which is equivalent to the amount of such currency remaining unpaid (and in either case the provisions of paragraph (b) below shall apply) to an account specified by the Agent. 

(b)  The equivalent on any day in one currency of any amount denominated in another currency shall be an amount in the first currency equal to the amount which the Agent would have received if the Agent had on such day (or, if such day shall not be a Business Day, on the next succeeding Business Day) made a purchase of the first currency with such amount of such other currency at the then prevailing spot rate of exchange of the Agent less all costs, charges and expenses normally incurred by the Agent or on its behalf in connection with such a purchase. 

17.11   Third Party Rights 

The provisions in this Clause 17 (Guarantee and indemnity) shall be for the benefit of each Hedging Bank, and each Hedging Bank shall be deemed to be a Finance Party for the purpose of this Clause 17. Accordingly, any Hedging Bank not party to this Agreement may enjoy the benefit of or enforce the terms of this Clause 17 in accordance with the provisions of the Third Parties Act as if it were a Finance Party for the purposes of this Clause 17. 

	 
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SECTION 8 

REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT 

18.      Representations 

Each Obligor makes the representations and warranties set out in this Clause 18 to each Finance Party on the date of this Agreement. 

18.1     Status 

(a)  It and each of its Subsidiaries is a corporation, limited liability company, partnership or other commercial entity, duly incorporated or organised, validly existing and in good standing under the law of its jurisdiction of incorporation. 

(b)  It and each of its Subsidiaries has the power to own and operate its assets and carry on its business as it is being, and is proposed to be, conducted. 

(c)  It and each of its Subsidiaries is duly qualified to do business as a foreign entity and is in good standing under the laws of each jurisdiction (other than its jurisdictions of incorporation) in which it does business and in which failure to be so qualified and in good standing could reasonably be expected to have a Material Adverse Effect. 

18.2     Binding obligations 

The obligations expressed to be assumed by it in each Finance Document are, subject to any general principles of law limiting its obligations which are specifically referred to in any legal opinion accepted pursuant to Clause 4 (Conditions of Utilisation), legal, valid, binding and enforceable obligations. 

18.3     Non-conflict with other obligations 

The entry into, delivery and performance by it of, and the transactions contemplated by, the Finance Documents do not and will not: 

(a)  conflict with 

(i)   any law or regulation applicable to it; 

(ii)  its or any of its Subsidiaries' constitutional documents; or 

(iii)  any agreement or instrument binding upon it or any of its Subsidiaries or any of its or any of its Subsidiaries' assets, except to the extent such conflict could not reasonably be expected to have a Material Adverse Effect; and 

(b)  result in or require the creation or imposition of any Security whatsoever upon any of the assets of an Obligor. 

18.4     Power and authority 

It has the requisite power to enter into, perform and deliver, and has taken all necessary action to authorise its entry into, performance and delivery of, the Finance Documents to which it is a party and the transactions contemplated by those Finance Documents. 

18.5     Validity and admissibility in evidence 

All Authorisations required or desirable: 

	 
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(a)  to enable it lawfully to enter into, deliver, exercise its rights and perform and comply with its obligations in the Finance Documents to which it is a party; and 

(b)  to make the Finance Documents to which it is a party admissible in evidence in its jurisdiction of incorporation, 

have been obtained or effected and are in full force and effect. 

18.6     Governing law and enforcement 

(a)  Subject to any matters specifically referred to in any legal opinion accepted pursuant to Clause 4 (Conditions of Utilisation), the choice of English law as the governing law of the Finance Documents will be recognised and enforced in its jurisdiction of incorporation. 

(b)  Subject to any matters specifically referred to in any legal opinion accepted pursuant to Clause 4 (Conditions of Utilisation), any judgment obtained in England in relation to a Finance Document will be recognised and enforced in its jurisdiction of incorporation. 

18.7     Deduction of Tax 

Subject to any matters specifically referred to in any legal opinion accepted pursuant to Clause 4 (Conditions of Utilisation), it is not required under the law applicable where it is incorporated or resident or at its address for the purpose of this Agreement to make any deduction for or on account of Tax from any payment it may make under any Finance Document. 

18.8     No filing or stamp taxes 

Under the law of its jurisdiction of incorporation it is not necessary that the Finance Documents be filed, recorded or enrolled with any court or other authority in that jurisdiction or that any stamp, registration or similar tax be paid on or in relation to the Finance Documents or the transactions contemplated by the Finance Documents. 

18.9     Tax Examinations 

(a)  All deficiencies which have been asserted against it or any of its Subsidiaries as a result of any federal, state, local or foreign Tax examination for each taxable year in respect of which an examination has been conducted have been fully paid or finally settled or are being contested in good faith, and no issue has been raised by any taxing authority in any such examination which, by application of similar principles, reasonably can be expected to result in assertion by such taxing authority of a material deficiency for any other year not so examined which has not been reserved for in its audited financial statements to the extent, if any, required by Agreement Accounting Principles. 

(b)  Except as permitted pursuant to Clause 21.7 (Payment of Taxes and claims; Tax consolidation) , neither it nor any of its Subsidiaries anticipates any material Tax liability with respect to the years for which a Tax examination has not been closed pursuant to applicable law. 

18.10   Payment of Taxes 

(a)  Each member of the Group has paid when due all Taxes required to be paid by it other than any Taxes: 

(i)   being contested by it in good faith; 

	 
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(ii)  for which adequate reserves are being maintained in accordance with Agreement Accounting Principles; and 

(iii)  where payment can be lawfully withheld and will not result in the imposition of any penalty nor in any Security ranking in priority to the claims of any Finance Party under any Finance Document. 

(b)  It has no knowledge of any proposed Tax assessment against it or any of its Subsidiaries that, if made, will have or could reasonably be expected to have a Material Adverse Effect. 

18.11   No default 

(a)  No Default is continuing or might reasonably be expected to result from the making of any Utilisation. 

(b)  No other event or circumstance is outstanding which constitutes (or which would, with the lapse of time, the giving of notice, the making of any determination under the relevant document or any combination of the foregoing, constitute) a default under any other agreement or instrument which is binding on it or any of its Subsidiaries or to which its (or any of its Subsidiaries') assets are subject which could reasonably be expected to have a Material Adverse Effect. 

18.12   No misleading information 

 

Any factual information provided by or on behalf of any member of the Group (whether for the purposes of the Information Memorandum or otherwise in connection with the Facility), taken as a whole, does not contain, as of the date, furnished, any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein, in light of the circumstances under which they were made, not misleading. 

18.13   Financial statements 

(a)  Its Original Financial Statements (if any) were prepared in accordance with Agreement Accounting Principles consistently applied. 

(b)  Its Original Financial Statements (if any) fairly represent its financial condition and operations (consolidated in the case of Energizer Holdings and consolidated and unconsolidated in the case of each member of the Regional Group) as at the end of and for the relevant financial year. 

(c)  There is no material loss contingency within the meaning of Agreement Accounting Principles which has not been reflected in its Original Financial Statements (if any) or in any of its other financial statements prepared and delivered pursuant to this Agreement for the financial period during which such material loss contingency was incurred. 

(d)  There has been no material adverse change in its condition (financial or otherwise), assets, operations, prospects or business (or in the consolidated condition (financial or otherwise), assets, operations, prospects or business of Energizer Holdings, the Group or the Regional Group) since 30 September 2002 or any other event which has had or would reasonably be expected to have a Material Adverse Effect. 

	 
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18.14   Pari passu ranking 

Its payment obligations under the Finance Documents rank at least pari passuwith the claims of all its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law in its place of incorporation applying to companies generally. 

18.15   No proceedings pending or threatened 

(a)  Except as set forth in Schedule 8 (Litigation) (the "Disclosed Litigation"), as of the date hereof, there is no action, suit, proceeding, arbitration or, to the knowledge of any member of the Senior Management Team, investigation before or by any Governmental Agency or private arbitrator pending or to the knowledge of any member of the Senior Management Team, threatened against any Obligor, any of their Subsidiaries or any property of any of them. Neither (a) any of the Disclosed Litigation nor (b) from and after the date hereof, any other action, suit, proceeding, arbitration or, to the knowledge of any member of the Senior Management Team, investigation before or by any Governmental Agency or private arbitrator pending or, to the knowledge of any member of the Senior Management Team, threatened against any Obligor, any of their Subsidiaries or any property of any of them (i) challenges the validity or the enforceability of any material provision of the Finance Documents or (ii) has had or could reasonably be expected to have a Material Adverse Effect. 

(b)  No litigation, arbitration, administrative or, to its knowledge, investigative proceeding of or before any court, arbitral body or agency (including any arising from or relating to Environmental Law) which, if adversely determined, could reasonably be expected to have a Material Adverse Effect have (to the best of its knowledge and belief) been started or threatened against it or any of its Subsidiaries or its or their assets. 

(c)  No attempt to organise its or its Subsidiaries employees and no labour disputes are pending or, to its knowledge, threatened, planned or contemplated, which could reasonably be expected to have a Material Adverse Effect. 

(d)  Neither it nor any of its Subsidiaries is: 

(i)   in violation of any law or regulation applicable to it or any of its assets which violation will have or could reasonably be expected to have a Material Adverse Effect; or 

(ii)  subject to or in default with respect to any final judgment, writ, injunction, restraining order or order of any nature, decree, rule or regulation of any court, agency or Governmental Authority which will have or could reasonably be expected to have a Material Adverse Effect. 

18.16   Environmental laws, licences and releases 

(a)  It and each of its Subsidiaries has: 

(i)   complied in all material respects with all Environmental Laws to which it may be subject; 

(ii)  obtained all material Environmental Licences required or desirable in connection with its business; and 

(iii)  complied in all material respects with the terms of those Environmental Licences. 

(b)  No: 

	 
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(a)  property currently or previously owned, leased, occupied or controlled by it or any of its Subsidiaries (including any offsite waste management or disposal location utilised by it or any of its Subsidiaries) is contaminated with any Hazardous Substance; and 

(b)  discharge, release, leaching, migration or escape of any Hazardous Substance into the Environment has occurred or is occurring on, under or from that property, 

in each case in circumstances where that would result in material remediation costs or material penalties to any member of the Group or give rise to any material Contingent Obligation. 

(c)  For the purposes of this Clause 18.16, "material" means any noncompliance or other basis for liability which could reasonably be likely to subject any member of the Group to liability, individually or in the aggregate with each other basis for liability under this Clause 18.16, in excess of US$30,000,000. 

18.17   Authorised signatories 

Each person specified as its authorised signatory in any document accepted by the Agent pursuant to paragraph 1(c) of Schedule 2 (Conditions precedent) or delivered to the Agent pursuant to paragraph (h) of Clause 19.4 (Information: miscellaneous) is, subject to any notice to the contrary delivered to the Agent pursuant to Clause 19.4, authorised to sign all Finance Documents and all Utilisation Requests and other notices on its behalf under or in connection with the Finance Documents. 

18.18   Subsidiaries 

(a)  Schedule 9 (Subsidiaries) identifies all Subsidiaries of Energizer Holdings, both direct and indirect, and indicates the respective holdings of each as of the date of this Agreement and, except as notified to the Agent in writing following the date of this Agreement, as of each Utilisation Date. 

(b)  Each member of the Regional Group is directly or indirectly, a wholly-owned and controlled Subsidiary of Energizer Holdings. 

18.19   ERISA 

(a)  No Benefit Plan has incurred any material accumulated funding deficiency (as defined in Sections 302(a)(2) of ERISA and 412(a) of the Internal Revenue Code) whether or not waived. 

(b)  No Obligor nor any ERISA Affiliate has incurred any material liability to the PBGC which remains outstanding other than the payment of premiums. 

(c)  As of the last day of the most recent prior plan year, the market value of assets under each Benefit Plan, other than any Multiemployer Plan, was not by a material amount less than the present value of benefit liabilities thereunder (determined in accordance with the actuarial valuation assumptions described therein). 

(d)  No Obligor nor any ERISA Affiliate has: 

(i)   failed to make a required contribution or payment to a Multiemployer Plan of a material amount; or 

(ii)  incurred a material complete or partial withdrawal under Section 4203 or Section 4205 of ERISA from a Multiemployer Plan. 

	 
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(e)  No Obligor nor any ERISA Affiliate has failed to make an instalment or any other payment of a material amount required under Section 412 of the Internal Revenue Code on or before the due date for such instalment or other payment. 

(f)  Each Plan, Foreign Employee Benefit Plan and Non-ERISA Commitment complies in all material respects in form, and has been administered in all material respects in accordance with its terms and, in accordance with all applicable laws and regulations, including but not limited to ERISA and the Internal Revenue Code. 

(g)  There have been no and there is no prohibited transaction described in Section 406 of ERISA or Section 4975 of the Internal Revenue Code with respect to any Plan for which a statutory or administrative exemption does not exist which could reasonably be expected to subject an Obligor or an ERISA Affiliate to material liability. 

(h)  No Obligor nor any ERISA Affiliate has taken or failed to take any action which would constitute or result in an ERISA Event, which action or inaction could reasonably be expected to subject an Obligor or an ERISA Affiliate to material liability. 

(i)  No Obligor nor any ERISA Affiliate is subject to any material liability under, or has any potential material liability under, Sections 4063, 4064, 4069, 4204 or 4212(c) of ERISA. 

(j)  The present value of the aggregate liabilities to provide all of the accrued benefits under any Foreign Pension Plan do not exceed the current fair market value of the assets held in trust or other funding vehicle for such plan by a material amount. 

(k)  With respect to any Foreign Employee Benefit Plan other than a Foreign Pension Plan, reasonable reserves have been established in accordance with prudent business practice or where required by ordinary accounting practices in the jurisdiction in which such plan is maintained. 

(l)  In this Clause 18.19, "material" means any amount, non-compliance or other basis for liability which could reasonably be expected to subject any member of the Group to liability, individually or in the aggregate with each other basis for liability under this Clause 18.19, in excess of US$30,000,000. 

18.20   Securities Activities 

(a)  The proceeds of the Loans will not be used, directly or indirectly, in whole or in part, for "purchasing" or "carrying" Margin Stock or for any purpose which might (whether immediately, incidentally or ultimately) cause all or any part of the Loans to be a "purpose credit" within the meaning of Regulation U or Regulation X and no member of the Group is engaged in the business of extending credit for the purpose of "purchasing" or "carrying" Margin Stock. 

(b)  Following the application of the proceeds of each Loan, not more than 25 per cent. of the value of the assets of the Group (on a consolidated basis) will be invested in Margin Stock. 

(c)  Neither any Obligor nor any agent acting on its behalf has taken or will take any action which might cause any Finance Document or any document delivered under or in connection with any Finance Document to violate any regulation of the Board of Governors (including Regulation T, U or X) or violate the United States Securities Exchange Act of 1934 or any applicable US federal or state securities law. 

	 
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18.21  Material Agreements 

(a)  Neither it nor any of its Subsidiaries is a party to or otherwise bound by any agreement, arrangement or instrument or subject to any charter or other corporate or similar obligation or liability which individually or in the aggregate will have or could reasonably be expected to have a Material Adverse Effect. 

(b)  Neither it nor any of its Subsidiaries has received notice of or has knowledge that: 

(i)   it is in default in the performance, observance or fulfilment of any of the obligations, covenants or conditions contained in any agreement or instrument applicable to it; or 

(ii)  any condition exists which, with the giving of notice or the lapse of time or both, would constitute a default with respect to any such agreement, arrangement or instrument, 

in each case, except where such default or defaults, if any, individually or in the aggregate will not have or could not reasonably be expected to have a Material Adverse Effect. 

18.22   Assets and Properties 

(a)  It (and each other member of the Group) has good and marketable title to, or valid leases and licences of or is otherwise entitled to use, all material assets necessary or desirable for it to carry on its business as it is being or is proposed to be conducted, (except insofar as marketability may be limited by any laws or regulations of any agency or Governmental Authority affecting such assets). 

(b)  Substantially all of its assets and/or each of its Subsidiaries' assets are in adequate operating condition and repair, ordinary wear and tear expected. 

(c)  Neither any Finance Document nor any transaction contemplated by any Finance Document, will affect any right, title or interest of it or its Subsidiaries in and to any of its assets in a manner that has or could reasonably be expected to have a Material Adverse Effect. 

18.23   US Statutory Indebtedness Restrictions 

No member of the Group is: 

(a)  a "holding company", an "affiliate" of a "holding company" or a "subsidiary company" of a "holding company" within the meaning of, or subject to regulation under, the United States Public Utility Holding Company Act of 1935; 

(b)  a "public utility" within the meaning of, or subject to regulation under, the United States Federal Power Act of 1920; 

(c)  an "investment company" or a company "controlled" by an "investment company" within the meaning of the United States Investment Company Act of 1940; or 

(d)  subject to regulation under any United States federal or state law or regulation that limits its ability to incur or guarantee indebtedness. 

18.24   Insurance 

(a)  The insurances required by Clause 21.5 (Insurance) are in full force and effect as required by this Agreement. 

	 
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(b)  No event or circumstance has occurred, and there has been no failure to disclose a material fact, which would entitle any insurer to reduce or avoid its liability under any such insurance. 

18.25   Repetition 

The Repeating Representations are deemed to be made by each Obligor by reference to the facts and circumstances then existing on the date of each Utilisation Request and the first day of each Interest Period. 

19.      Information undertakings 

The undertakings in this Clause 19 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force. 

19.1    Financial statements 

Each Obligor shall supply to the Agent in sufficient copies for all the Lenders: 

(a)  as soon as the same become available, but in any event within 90 days after the end of each of its financial years: 

(i)   its audited consolidated financial statements for that financial year; and 

(ii)  (in the case of each Obligor other than Energizer Holdings) its audited unconsolidated financial statements for that financial year; and 

(b)  as soon as the same become available, but in any event within 45 days after the end of each quarter (other than the last quarter) of each of its financial years: 

(i)   its consolidated financial statements for that financial quarter; and 

(ii)  (in the case of each Obligor other than Energizer Holdings) its unconsolidated financial statements for that financial quarter. 

19.2    Compliance Certificate 

(a)  Energizer Holdings shall supply to the Agent, with each set of financial statements delivered pursuant to paragraph (a)(i) or (b)(i) of Clause 19.1 (Financial statements), a Compliance Certificate: 

(i)   setting out (in reasonable detail) computations as to compliance with Clause 20 (Financial covenants) as at the date as at which those financial statements were drawn up; 

(ii)  certifying that the financial statements delivered with that Compliance Certificate fairly represent the consolidated financial position of the Group as at the dates indicated and the results of their operations and cash flows for the periods indicated in accordance with Agreement Accounting Principles, subject (save in the case of financial statements delivered pursuant to paragraph (a) of Clause 19.1 (Financial statements)) to normal year-end audit adjustments and the absence of footnotes; and 

(iii)  stating that the Repeating Representations are true and correct in all material respects and no Default exists (or if a Default does exist, stating the nature and status thereof) as of the date of such Compliance Certificate. 

	 
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(b)  Each Compliance Certificate shall be signed by the chief financial officer or treasurer of Energizer Holdings. 

19.3     Requirements as to financial statements 

(a)  Each set of financial statements delivered by an Obligor (other than Energizer Holdings) pursuant to paragraph (a) of Clause 19.1 (Financial statements) shall be certified by a director of the relevant company as fairly representing, in accordance with Agreement Accounting Principles, its (or, as the case may be, its consolidated) financial condition and operations as at the end of and for the period in relation to which those financial statements were drawn up. 

(b)  Each set of financial statements delivered by Energizer Holdings pursuant to paragraph (a) of Clause 19.1 (Financial statements) or by any Obligor pursuant to paragraph (b) of Clause 19.1 (Financial statements) shall be certified by the Chief Financial Officer or Treasurer of Energizer Holdings as fairly representing, in accordance with Agreement Accounting Principles, its (or, as the case may be, its consolidated or the relevant Obligors' consolidated or unconsolidated) financial condition and operations as at the end of and for the period in relation to which those financial statements were drawn up. 

(c)  Each Obligor shall procure that each set of its financial statements delivered pursuant to Clause 19.1 (Financial statements) is prepared using Agreement Accounting Principles, and accounting practices and financial reference periods consistent with those applied in the preparation of the Original Financial Statements provided that if any changes in generally accepted accounting principles in the United States as at the date of this Agreement are required or permitted after the date of this Agreement and are adopted by Energizer Holdings or any of its Subsidiaries with the agreement of its independent auditors and such changes result in a change in the method of calculation of any of the financial covenants, tests, restrictions or standards in this Agreement or in the related definitions or terms used in this Agreement ("Accounting Changes"), the Parties agree, at Energizer Holdings' request, to enter into negotiations, in good faith, in order to amend such provisions in a credit neutral manner so as to reflect equitably such changes with the desired result that the criteria for evaluating the financial condition of Energizer Holdings and its Subsidiaries shall be the same after such changes as if such changes had not been made. Until such provisions are amended in a manner reasonably satisfactory to the Majority Lenders, no Accounting Change shall be given effect in such calculations and all financial statements and reports required to be delivered under this Agreement shall be prepared in accordance with Agreement Accounting Principles without taking into account such Accounting Changes. In the event such amendment is entered into, all references in this Agreement to Agreement Accounting Principles as of the date of this Agreement shall mean generally accepted accounting principles as in effect in the United States as of the date of such amendment. 

19.4     Information: miscellaneous 

Each Obligor shall supply to the Agent (in sufficient copies for all the Lenders, if the Agent so requests): 

(a)  copies of all financial statements, reports and notices, if any, sent by Energizer Holdings to its securities holders or filed with the US Securities and Exchange Commission by 

 

	 
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Energizer Holdings (other than Reports on Form 8-K which contain only information furnished pursuant to Item 12 thereof) promptly after they are dispatched or filed; 

(b)  all documents dispatched by each Obligor other than Energizer Holdings to its creditors generally or required to be dispatched to any shareholder pursuant to applicable law or regulation promptly after they are dispatched; 

(c)  promptly upon becoming aware of them, the details of any litigation, arbitration or administrative proceedings which are current, threatened or pending against any member of the Group, and which might, if adversely determined, have a Material Adverse Effect; 

(d)  promptly upon becoming aware of them, the details of any material labour dispute affecting any member of the Group; 

(e)  promptly upon becoming aware of the addition or removal of a Subsidiary from the list of Material Subsidiaries delivered pursuant to Clause 4.1 (Initial conditions precedent), an updated list of its Material Subsidiaries; 

(f)   promptly upon becoming aware of them and within 10 days of receipt by it, the details of any claim, notice or other communication received by it in respect of (i) any actual or alleged breach of or liability under Environmental Law and (ii) any actual or alleged liability as a result of discharge, release, leaching, migration or escape of any Hazardous Substance which, if substantiated, in the case of any member of the Group, could reasonably be expected to result in liabilities of, and/or expenditure by, one or more members of the Group in excess of US$25,000,000 (or its equivalent in another currency or currencies) individually or in aggregate or, in the case of any member of the Regional Group otherwise could reasonably be expected to have a Material Adverse Effect; 

(g)  promptly, such further information regarding the financial condition, business and operations of any member of the Group as any Finance Party (through the Agent) may reasonably request; and 

(h)   promptly, notice of any change in the authorised signatories of any Obligor, signed by a Director or authorised officer or the secretary of that Obligor whose specimen signature has previously been provided to the Agent, accompanied (where relevant) by a specimen signature of each new signatory. 

19.5     Notification of default 

Each Obligor shall notify the Agent of: 

(a)  any Default (specifying its nature and the steps, if any, being taken to remedy it); and 

(b)  any other development, financial or otherwise, which could reasonably be expected to have a Material Adverse Effect (specifying its nature and the steps if any being taken to remedy it), 

promptly upon becoming aware of its occurrence (unless that Obligor is aware that a notification has already been provided by another Obligor). 

	 
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19.6     ERISA Notices 

Energizer Holdings shall deliver or cause to be delivered to the Agent and the Lenders, at its expense, the following information and notices as soon as reasonably possible, and in any event: 

(a)  within ten (10) Business Days after any Obligor or any ERISA Affiliate obtains knowledge that an ERISA Event has occurred which could reasonably be expected to subject Energizer Holdings to liability individually or in the aggregate in excess of US$20,000,000, a written statement of the chief financial officer or the treasurer of Energizer Holdings describing such ERISA Event and the action, if any, which the Obligor or ERISA Affiliate has taken, is taking or proposes to take with respect thereto, and when known, any action taken or threatened by the IRS, DOL or PBGC with respect thereto; 

(b)  within ten (10) Business Days after the filing of any funding waiver request with the IRS, a copy of such funding waiver request and thereafter all communications received by an Obligor or an ERISA Affiliate with respect to such request within ten (10) Business Days such communication is received; and 

(c)  within ten (10) Business Days after an Obligor or an ERISA Affiliate knows or has reason to know that: 

(i)   a Benefit Plan or a Multiemployer Plan has been terminated; 

(ii)  the administrator or plan sponsor of a Benefit Plan or a Multiemployer Plan intends to terminate a Multiemployer Plan; or 

(iii)  the PBGC has instituted or will institute proceedings to terminate a Benefit Plan or a Multiemployer Plan, a notice describing such matter. 

For purposes of this Clause 19.6, an Obligor and an ERISA Affiliate shall be deemed to know all facts known by the administrator of any Plan of which such Obligor or ERISA Affiliate is the plan sponsor. 

19.7     Use of websites 

(a)  Each Obligor may satisfy its obligation under this Agreement to deliver any information in relation to those Lenders (the "Website Lenders") who accept this method of communication by posting this information onto an electronic website designated by the Borrower and the Agent (the "Designated Website") if: 

(i)   the Agent expressly agrees (after consultation with each of the Lenders) that it will accept communication of the information by this method; 

(ii)  both the Borrower and the Agent are aware of the address of and any relevant password specifications for the Designated Website; and 

(iii)  the information is in a format previously agreed between the Borrower and the Agent. 

If any Lender (a "Paper Form Lender") does not agree to the delivery of information electronically then the Agent shall notify the Borrower accordingly and the relevant Obligor shall supply the information to the Agent (in sufficient copies for each Paper Form Lender) in paper

 

	 
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 form. In any event the relevant Obligor shall supply the Agent with at least one copy in paper form of any information required to be provided by it. 

(b)  The Agent shall supply each Website Lender with the address of and any relevant password specifications for the Designated Website following designation of that website by the Borrower and the Agent. 

(c)  Each Obligor shall promptly upon becoming aware of its occurrence notify the Agent if: 

(i)   the Designated Website cannot be accessed due to technical failure; 

(ii)  the password specifications for the Designated Website change; 

(iii)  any new information which is required to be provided under this Agreement is posted onto the Designated Website; 

(iv)  any existing information which has been provided under this Agreement and posted onto the Designated Website is amended; or 

(v)  the Borrower becomes aware that the Designated Website or any information posted onto the Designated Website is or has been infected by any electronic virus or similar software. 

If an Obligor notifies the Agent under paragraph (c)(i) or paragraph (c)(v) above, all information to be provided by an Obligor under this Agreement after the date of that notice shall be supplied in paper form unless and until the Agent and each Website Lender is satisfied that the circumstances giving rise to the notification are no longer continuing. 

(d)  Any Website Lender may request, through the Agent, one paper copy of any information required to be provided under this Agreement which is posted onto the Designated Website. The relevant Obligor shall comply with any such request within ten Business Days. 

19.8     Access to books, premises and records 

(a)  Each Obligor shall (and shall ensure that each member of the Group will): 

(i)   keep books and records which accurately reflect in all material respects all of its business, affairs and transactions; and 

(ii)  permit any Finance Party or any of its representatives, professional advisers or contractors, at reasonable times and intervals, and upon reasonable notice, to visit any of its offices or premises (including, without limitation, in connection with environmental compliance, hazards or liabilities), to inspect any of its books and records and to discuss its financial matters with its officers and auditors. 

(b)  Each Obligor hereby authorises its auditors to discuss any of the Group's affairs, finances and accounts with the officers and independent certified public accountants of any Finance Party or any of its representatives, all upon reasonable notice and at such reasonable times during normal business hours, as often as may be reasonably requested (provided that an officer of the Group may, if it so desires, be present at and participate in any such discussion), and to inspect any of its books and records. 

	 
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(c)  Each Obligor hereby authorises each firm which prepared any report delivered to any Finance Party in connection with the Finance Documents to discuss such report with any Finance Party. 

(d)  If an Event of Default has occurred and is continuing, each Obligor shall, upon request by the Agent, turn over copies of any of its books and records to the Agent or its representatives. 

20.       Financial covenants 

20.1     Maximum Leverage Ratio 

(a)  Energizer Holdings shall ensure that the ratio (the "Leverage Ratio") of (i) Total Borrowings to (ii) EBITDA at any time shall not be greater than 3.50 to 1.00. 

(b)  The Leverage Ratio shall be calculated, in each case, determined as of the last day of each financial quarter based upon: 

(i)   Total Borrowings, Total Borrowings as of the last day of each such financial quarter; and 

(ii)  for EBITDA, the actual amount for the four-quarter period ending on such day, calculated, with respect to Permitted Acquisitions, on a pro forma basis using unadjusted historical audited and reviewed unaudited financial statements obtained from the seller (with the EBITDA component thereof broken down by fiscal quarter in Energizer Holdings' reasonable judgment). 

20.2     Minimum Interest Expense Coverage Ratio 

(a)  Energizer Holdings shall ensure that the ratio (the "Interest Expense Coverage Ratio") for any applicable period of (i) EBIT for such period to (ii) Interest Expense for such period is greater than 3.00 to 1.00 for each financial quarter. 

(b)  The Interest Expense Coverage Ratio shall be calculated, as of the last day of each financial quarter for the four-quarter period ending on such day calculated, with respect to Permitted Acquisitions, on a pro forma basis using unadjusted historical audited and reviewed unaudited financial statements obtained from the seller (with the EBITDA component thereof broken down by financial quarter in the reasonable judgement of Energizer Holdings). 

20.3    Definitions 

In this Clause 20 (Financial covenants): 

"EBIT" means, for any period, on a consolidated basis for the Group, the sum of the amounts for such period, without double-counting, of (i) Net Income, plus (ii) Interest Expense to the extent deducted in computing Net Income, plus (iii) charges against income for foreign, federal, state and local Taxes to the extent deducted in computing Net Income, plus (iv) any additional non-cash charges (except any non-cash charges that require accrual of a reserve for anticipated future cash payments for any period) to the extent deducted in computing Net Income, plus (v) other extraordinary non-cash charges to the extent deducted in computing Net Income minus (vi) extraordinary gains to the extent added in computing Net Income. 

"EBITDA" means, for any period, on a consolidated basis for the Group, the sum of the amounts for such period, without duplication, of (i) EBIT, plus (ii) depreciation expense to the extent deducted in computing Net Income,

 

	 
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plus (iii) amortisation expenses, including, without limitation, amortisation of goodwill and other intangible assets, to the extent deducted in computing Net Income. 

"Interest Expense" means, for any period, the total interest expense of the Group, whether paid or accrued, including, without duplication, Off-Balance Sheet Liabilities (including Receivables Facility Financing Costs) and the interest component of Capitalised Leases, all as determined in conformity with Agreement Accounting Principles. 

"Net Income" means, for any period, the net earnings (or loss) after taxes of Energizer Holdings and its Subsidiaries on a consolidated basis for such period taken as a single accounting period determined in conformity with Agreement Accounting Principles. 

"Total Borrowings" means the sum of all Indebtedness of Energizer Holdings and its Subsidiaries as determined in conformity with Agreement Accounting Principles. 

21.      General undertakings 

The undertakings in this Clause 21 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force. 

21.1     Corporate existence, etc 

Except as permitted pursuant to Clause 22.8 (Restrictions on fundamental changes), each Obligor shall, and shall cause each of its Subsidiaries to, at all times maintain its existence and preserve and keep, or cause to be preserved and kept, in full force and effect its rights and franchises material to its businesses. 

21.2     Authorisations 

Each Obligor shall promptly: 

(a)  obtain, comply with and do all that is necessary to maintain in full force and effect; and 

(b)  supply certified copies to the Agent of, 

any Authorisation required under any law or regulation of its jurisdiction of incorporation to enable it to perform its obligations under the Finance Documents and to ensure the legality, validity, enforceability or admissibility in evidence in its jurisdiction of incorporation of any Finance Document or (in the case of paragraph (a) above only) otherwise required for a purpose specified in Clause 18.5 (Validity and admissibility in evidence ). 

21.3     Corporate powers; conduct of business 

(a)  Each Obligor shall, and shall cause each of its Material Subsidiaries to, qualify and remain qualified to do business in each jurisdiction in which the nature of its business requires it to be so qualified and where the failure to be so qualified would have or could reasonably be expected to have a Material Adverse Effect. 

(b)  Except as expressly provided in paragraph (b) of the definition of "Permitted Acquisition" set out in Clause 22.6 (Conduct of business; New Subsidiaries; Acquisitions), Energizer Holdings shall, and will cause each of its Material Subsidiaries to, carry on and conduct its business in substantially the same manner and in substantially the same fields of enterprise as it is presently conducted at the date of this Agreement unless the failure of its Material Subsidiaries to carry on

 

	 
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and conduct its business as so described could not reasonably be expected to have a Material Adverse Effect. 

(c)  Energizer Holdings may create, acquire in a Permitted Acquisition or capitalise any Subsidiary (a "New Subsidiary") after the date hereof if no Default shall have occurred and be continuing or would result therefrom. 

21.4     Compliance with laws 

Each Obligor shall (and shall ensure that its Subsidiaries will) comply in all respects with all laws to which it may be subject, if failure so to comply would materially impair its ability to perform its obligations under the Finance Documents. 

21.5     Insurance 

Each Obligor shall (and shall ensure that each of its Subsidiaries will) maintain in full force and effect insurances on and in relation to its business and assets with reputable underwriters or insurance companies against those risks, and to the extent, usually insured against by prudent companies located in the same or a similar location and carrying on a similar business. 

21.6    Environmental undertakings 

Each Obligor shall (and shall ensure that its Subsidiaries will): 

(a)  comply with all Environmental Laws to which it may be subject; 

(b)  obtain all Environmental Licences required or desirable in connection with its business; and 

(c)  comply with the terms of all those Environmental Licences, 

except where failure to do so will not have or is not reasonably likely to subject Energizer Holdings or any of its Subsidiaries, individually or in aggregate, to liability in excess of US$30,000,000. 

21.7     Payment of Taxes and claims; Tax consolidation 

Each Obligor shall pay, and cause each of its Subsidiaries to pay: 

(a)  all Taxes, assessments and other governmental charges imposed upon it or on any of its properties or assets or in respect of any of its franchises, business, income or assets before any penalty or interest accrues thereon; and 

(b)  all claims (including, without limitation, claims for labour, services, materials and supplies) for sums which have become due and payable and which by law have or may become secured by a Security and/or Lien (other than a Security or Lien permitted by Clause 22.2 (Liens) or Clause 23.2 (Negative pledge)) upon any of its or such Subsidiary's assets, prior to the time when any penalty or fine shall be incurred with respect thereto, 

provided however, that no such Taxes, assessments and governmental charges referred to in paragraph (a) above or claims referred to in paragraph (b) above (and interest, penalties or fines relating thereto) need be paid if being contested in good faith by appropriate proceedings diligently instituted and conducted and if such reserve or other appropriate provision, if any, as shall be required in conformity with Agreement Accounting Principles shall have been made therefor. 

	 
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21.8     ERISA compliance 

Energizer Holdings shall, and shall cause each of its Subsidiaries to, establish, maintain and operate all Plans to comply in all material respects with the provisions of ERISA and shall operate all Plans and Non-ERISA Commitments to comply in all material respects with the applicable provisions of the Internal Revenue Code, all other applicable laws, and the regulations and interpretations thereunder and the respective requirements of the governing documents for such Plans and Non-ERISA Commitments, except for any non-compliance which, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. 

21.9     Maintenance of assets 

Each Obligor shall cause all assets necessary for the conduct of its business or the business of any of its Subsidiaries to be maintained and kept in good condition, repair and working order and shall supply all necessary equipment and shall cause to be made all necessary repairs, renewals, replacements, betterments and improvements to such assets or equipment, all as in its judgment may be necessary for the conduct of its or its Subsidiaries' business; provided, however, that nothing in this Clause 21.9 shall prevent any member of the Group from discontinuing the operation or maintenance of any such asset or equipment if such discontinuance is, in its judgment, desirable in the conduct of its business or the business of any Subsidiary and not disadvantageous in the reasonable opinion of Energizer Holdings in any material respect to the Finance Parties. 

21.10   Use of proceeds 

The Borrower shall use the proceeds of the Loans in accordance with Clause 3.1 (Purpose) provided that it shall not lend or otherwise make available by financial accommodation or otherwise, directly or indirectly, to any Subsidiary of Energizer Holdings which is a guarantor of Energizer Holdings' obligations under the US Facility, any proceeds of the Loan in circumstances where the right to repayment of such amount would be subordinated (or otherwise subject to restrictions on repayment) to the rights of any person to whom Energizer Holdings' obligations under the US Facility are owed. 

21.11   Subordination 

Energizer Holdings shall procure that any loan or other financial accommodation made by it to another member of the Group, directly or indirectly, which is not a guarantor of Energizer Holdings' obligations under the US Facility is not subordinated (or otherwise subject to restrictions on repayment) to the rights of any person to whom Energizer Holdings' obligations under the US Facility are owed. 

21.12   Pari passu 

Each Obligor shall ensure that its obligations under the Finance Documents rank at all times at least pari passuin right of priority and payment with the claims of all its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law applying to companies generally. 

	 
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22.      Negative Undertakings - The Group 

The undertakings in this Clause 22 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force. 

22.1     Subsidiary Indebtedness 

Energizer Holdings shall not permit any of its Subsidiaries directly or indirectly to create, incur, assume or otherwise become or remain directly or indirectly liable with respect to any Indebtedness, except: 

(a)   Indebtedness of the Guarantors under Clause 17 (Guarantee and indemnity); 

(b)  Indebtedness in respect of guarantees executed by any member of the Group with respect to any Indebtedness of Energizer Holdings, provided such Indebtedness is not incurred by Energizer Holdings in violation of this Agreement; 

(c)  Indebtedness secured by Customary Permitted Liens; 

(d)  Indebtedness constituting Contingent Obligations permitted by Clause 22.5 (Contingent Obligations); 

(e)  Indebtedness arising from loans (a) from any Subsidiary of Energizer Holdings to any wholly-owned Subsidiary of Energizer Holdings or (b) from Energizer Holdings to any wholly-owned Subsidiary; 

(f)   Indebtedness in respect of Permitted Hedging Arrangements; 

(g)  Indebtedness with respect to surety, appeal and performance bonds obtained by any member of the Group (other than Energizer Holdings) in the ordinary course of business; 

(h)  Indebtedness incurred in connection with the Receivables Purchase Documents, provided, that Receivables Facility Attributed Indebtedness incurred in connection therewith does not exceed US$250,000,000 in the aggregate at any time; or 

(i)   other Indebtedness in addition to that referred to elsewhere in this Clause 22.1 incurred by any Subsidiary of Energizer Holdings; provided that no Default shall have occurred and be continuing at the date of such incurrence or would result therefrom and provided further that the aggregate outstanding amount of all Indebtedness incurred by any such Subsidiary (other than Indebtedness incurred pursuant to clauses (a), (b), (e), (f) and (h)) of this Clause 22.1) shall not at any time exceed 20 per cent. of Energizer Holdings Consolidated Total Capitalisation. 

22.2     Liens 

No member of the Group shall (and Energizer Holdings shall procure that none of its Subsidiaries will) directly or indirectly create, incur, assume or permit to exist any Lien on or with respect to any of their respective property or assets except: 

(a)  Liens, if any, created by, or in connection with, the US Facility or otherwise securing the obligations under the US Facility; 

(b)  Customary Permitted Liens; 

(c)  Liens arising under the Receivables Purchase Documents; and 

	 
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(d)  other Liens, including any Liens listed in Part 1 of Schedule 6 (Existing Security, Contingent Obligations and Investments), (i) securing Indebtedness of Energizer Holdings and/or (ii) securing Indebtedness of Energizer Holdings' Subsidiaries as permitted pursuant to Clause 22.1 (Subsidiary Indebtedness), all of which, when taken together, secure Indebtedness in an aggregate outstanding principal amount not to exceed five per cent. of Consolidated Assets at any time. 

22.3     Disposals 

(a)  Subject to paragraph (b) below, no member of the Group shall (and Energizer Holdings shall ensure that none of its Subsidiaries will) enter into a single transaction or a series of transactions (whether related or not and whether voluntary or involuntary) to sell, lease, transfer or otherwise dispose of any asset. 

(b)  Paragraph (a) above does not apply to any sale, lease, transfer or other disposal: 

(i)   made in the ordinary course of trading of the disposing entity; 

(ii)  of an asset that is obsolete, excess or no longer used or useful in the ordinary course of trading; 

(iii)  permitted under Clause 22.9 (Sale and leasebacks) or Clause 23.3 (Disposals); 

(iv)  any transfer or an interest in Receivables, Receivables and Related Security, accounts or notes receivable on a limited recourse basis under the Receivables Purchase Documents, provided such transfer qualifies as a legal sale and as a sale under Agreement Accounting Principles and that the amount of Receivables Facility Attributable Indebtedness does not exceed US$250,000,000 at any one time outstanding; or 

(v)  where the transaction is for not less than fair market value and, when aggregated with any other sale, lease, transfer or other disposal (each such transaction being valued at book value), other than any permitted under paragraphs (i) to (iv) above, occurring during the financial year in which such proposed transaction occurs, does not exceed 15 per cent. of Energizer Holdings Consolidated Assets (such Consolidated Assets being as calculated as at the end of the financial year immediately preceding that in which such transaction is proposed to be entered into). 

22.4     Investments 

Except to the extent permitted pursuant to Clause 22.7 (Transactions with shareholders and Affiliates) below, no member of the Group shall (and Energizer Holdings shall ensure that none of its Subsidiaries will) directly or indirectly make or own any Investment except: 

(a)  Investments in cash and Cash Equivalents; 

(b)  any Investments listed in Part II of Schedule 6 (Existing Security, Contingent Obligations and Investments) except to the extent the amount of such Investment exceeds the amount stated in that Schedule; 

(c)  Investments in trade receivables or received in connection with the bankruptcy or reorganisation of suppliers and customers and in settlement of delinquent obligations of, and other disputes with, customers and suppliers arising in the ordinary course of business; 

	 
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(d)  Investments consisting of deposit accounts maintained by Energizer Holdings or its Subsidiaries; 

(e)  Investments consisting of non-cash consideration from a sale, assignment, transfer, lease, conveyance or other disposition of property permitted by Clause 22.3 (Disposals); 

(f)   Investments in any consolidated Subsidiaries (other than joint ventures); 

(g)  Investments in joint ventures and nonconsolidated Subsidiaries in an aggregate amount not to exceed US$50,000,000; 

(h)  Investments constituting Permitted Acquisitions; 

(i)   Investments constituting Financial Indebtedness permitted by Clause 22.1 (Subsidiary Indebtedness) or Contingent Obligations permitted by Clause 22.5 (Contingent Obligations); 

(j)   Investments in the SPVs (a) required in connection with the Receivables Purchase Documents and (b) resulting from the transfers permitted by sub-paragraph (b)(iv) of Clause 22.3 (Disposals); 

(k)  Investments permitted pursuant to Clause 23.4 (Loans and guarantees); and 

(l)   Investments in addition to those referred to elsewhere in this Clause in an aggregate amount not to exceed US$50,000,000. 

22.5     Contingent Obligations 

Energizer Holdings shall ensure that none of its Subsidiaries will directly or indirectly create or become or be liable with respect to any Contingent Obligation, except: 

(a)  recourse obligations resulting from endorsements of negotiable instruments for collection in the ordinary course of business; 

(b)  any Contingent Obligations listed in Part III of Schedule 6 (Existing Security, Contingent Obligations and Investments) except to the extent the amount of such Contingent Obligations exceeds the amount stated in that Schedule; 

(c)  obligations, warranties, and indemnities, not relating to Indebtedness of any person, which have been or are undertaken or made in the ordinary course of business and not for the benefit of or in favour of an Affiliate of Energizer Holdings or such Subsidiary; 

(d)  Contingent Obligations with respect to surety, appeal and performance bonds obtained by Energizer Holdings or any Subsidiary in the ordinary course of business; 

(e)  Contingent Obligations of the Guarantors under the Finance Documents; 

(f)   Contingent Obligations of Subsidiaries which are guarantors under a guarantee of the Indebtedness evidenced by the Senior Notes, the Senior Note Purchase Agreements or the US Facility; 

	 
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(g)  Contingent Obligations of Energizer Holdings or any of its Subsidiaries arising under the Receivables Purchase Documents; 

(h)  Contingent Obligations of non-US Subsidiaries of Energizer Holdings represented by guarantees of obligations of non-US Subsidiaries; and 

(i)   Contingent Obligations incurred in the ordinary course of business by any of Energizer Holdings' Subsidiaries in respect of obligations of any Subsidiary of Energizer Holdings. 

22.6     Conduct of Business; New Subsidiaries; Acquisitions 

Without in any way limiting Clause 21.3 (Corporate powers, conduct of business), Clause 23.5 (Acquisition and investments), Clause 23.6 (Merger) or Clause 23.8 (Change of business), Energizer Holdings shall not (and shall procure that its Subsidiaries do not) make any Acquisitions, other than Acquisitions meeting the following requirements or otherwise approved by the Majority Lenders (each such Acquisition constituting a "Permitted Acquisition"): 

(a)  the purchase is consummated pursuant to a negotiated acquisition agreement on a non-hostile basis pursuant to an acquisition agreement approved by the board of directors or other applicable governing body of the seller prior to the commencement thereof; 

(b)  the businesses being acquired shall be consumer product companies or other businesses that are in substantially the same fields of enterprise or related or incidental to the businesses or activities engaged in by Energizer Holdings and its Subsidiaries as of the date of this Agreement (or which each member of the Group may engage in accordance with the terms of this Agreement), as well as suppliers to or distributors of products similar to those of Energizer Holdings and its Subsidiaries; provided, however, that Energizer Holdings and its Subsidiaries shall be permitted to acquire businesses that do not satisfy the foregoing criteria in this paragraph (iii) so long as the aggregate purchase price for all such acquisitions does not exceed 5 per cent. of Energizer Holdings' consolidated tangible net assets (on a pro forma basis) as of the date of the consummation of such Acquisition; and 

(c)  prior to each such Acquisition, Energizer Holdings shall determine that after giving effect to such Acquisition and the incurrence of any Indebtedness by Energizer Holdings or any of its Subsidiaries, to the extent permitted by Clause 22.1 (Subsidiary Indebtedness), in connection therewith, on a pro forma basis using historical audited and reviewed unaudited financial statements obtained from the seller, broken down by financial quarter in Energizer Holdings' reasonable judgment, as if the Acquisition and such incurrence of Financial Indebtedness had occurred on the first day of the twelve Month period ending on the last day of Energizer Holdings' most recently completed financial quarter, Energizer Holdings would have been in compliance with the financial covenants in Clause 20 (Financial covenants) and not otherwise in Default. 

22.7     Transactions with shareholders and Affiliates 

Except for: 

(a)  the transactions set forth in Part IV of Schedule 6 (Existing Security, Contingent Obligations and Investments), 

	 
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(b)  Permitted Receivables Transfers; and 

(c)  Investments permitted by Clause 22.4 (Investments), 

Energizer Holdings shall not (and shall procure that its Subsidiaries do not) directly or indirectly enter into or permit to exist any transaction (including, without limitation, the purchase, sale, lease or exchange of any asset or the rendering of any service) with any holder or holders of any of the Equity Interests of Energizer Holdings, or with any Affiliate of Energizer Holdings which is not its Subsidiary, on terms that are less favourable to Energizer Holdings or any of its Subsidiaries, as applicable, than those that might be obtained in an arm's length transaction at the time from persons who are not such a holder or Affiliate. 

22.8     Restriction on fundamental changes 

Energizer Holdings shall not (and shall procure that its Subsidiaries do not) enter into any merger or consolidation, or liquidate, wind-up or dissolve (or suffer any liquidation or dissolution), or convey, lease, sell, transfer or otherwise dispose of, in one transaction or series of transactions, all or substantially all of Energizer Holdings' or any such Subsidiary's business or property, whether now or hereafter acquired, except: 

(a)  transactions permitted under Clauses 22.3 (Disposals) or 22.6 (Conduct of business; New Subsidiaries; Acquisitions); and 

(b)  a Subsidiary of Energizer Holdings (other than a member of the Regional Group) may be merged into, liquidated into or consolidated with Energizer Holdings (in which case Energizer Holdings shall be the surviving corporation) or any wholly-owned Subsidiary of Energizer Holdings. 

22.9     Sales and leasebacks 

Energizer Holdings shall not (and shall procure that its Subsidiaries do not) become liable, directly, by assumption or by Contingent Obligation, with respect to any lease, whether an operating lease or a Capitalised Lease, of any property (whether real or personal or mixed): 

(a)  which it or one of its Subsidiaries sold or transferred or is to sell or transfer to any other person; or 

(b)  which it or one of its Subsidiaries intends to use for substantially the same purposes as any other property which has been or is to be sold or transferred by it or one of its Subsidiaries to any other person in connection with such lease, unless in either case the sale involved is not prohibited under Clause 22.3 (Disposals) and the lease involved is not prohibited under Clause 22.1 (Subsidiary Indebtedness). 

22.10   Margin Regulations 

Neither Energizer Holdings nor any of its Subsidiaries shall use all or any portion of the proceeds of any credit extended under this Agreement to purchase or carry Margin Stock. 

22.11   ERISA 

Each Obligor shall not: 

(a)  permit to exist any accumulated funding deficiency (as defined in Sections 302 of ERISA and 412 of the Code), with respect to any Benefit Plan, whether or not waived; 

	 
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(b)  terminate, or permit any ERISA Affiliate to terminate, any Benefit Plan which would result in liability of Energizer or any Group member under Title IV of ERISA; 

(c)  fail, or permit any ERISA Affiliate to fail, to pay any required instalment or any other payment required under Section 412 of the Internal Revenue Code on or before the due date for such instalment or other payment; or 

(d)  permit any unfunded liabilities with respect to any Foreign Pension Plan, 

except where such transactions, events, circumstances, or failures are not, individually or in the aggregate, reasonably expected to result in liability individually or in the aggregate in excess of US$25,000,000 or have a Material Adverse Effect. 

22.12   Corporate Documents 

Energizer Holdings shall not (and shall procure that each of its Subsidiaries will not) amend, modify or otherwise change any of the terms or provisions in any of their respective constituent documents as in effect on the date of this Agreement in any manner adverse to the interests of the Lenders, without the prior written consent of the Majority Lenders. 

22.13   Financial Year 

Neither Energizer Holdings nor any of its consolidated Subsidiaries shall change its fiscal year for accounting or tax purposes from that used at the date of this Agreement. 

22.14   Hedging Obligations 

Energizer Holdings shall not and shall not permit any of its Subsidiaries to enter into any Hedging Arrangements other than Permitted Hedging Arrangements. 

22.15   Issuance of Disqualified Stock 

Neither Energizer Holdings, nor any of its Subsidiaries shall issue any Disqualified Stock. 

23.       Negative Covenants - The Regional Group 

Without in any way limiting Clause 22 (Negative Undertakings - the Group), the undertakings in this Clause 23 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Document or any Commitment is in force. 

23.1     Financial Indebtedness 

No member of the Regional Group shall incur or permit to subsist any Financial Indebtedness other than: 

(a)  Financial Indebtedness arising under the Finance Documents; 

(b)  Financial Indebtedness arising under any trade credit with tenor of less than 12 Months arising in the ordinary course of trading on normal commercial terms; 

(c)  Financial Indebtedness arising under a Permitted Hedging Arrangement; 

(d)  Financial Indebtedness due from one member of the Regional Group to another to the extent expressly permitted under Clauses 21.10 (Use of proceeds) and 23.4 (Loans and Guarantees); and 

	 
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(e)  Financial Indebtedness with tenor of less than 12 Months and incurred in the ordinary course of business, the aggregate outstanding principal amount of which does not exceed 20 per cent. of Regional Group Net Worth. 

23.2    Negative pledge 

(a)  No member of the Regional Group shall create or permit to subsist any Security over any of its assets. 

(b)  No member of the Regional Group shall: 

(i)   sell, transfer or otherwise dispose of any of its assets on terms whereby they are or may be leased to or re-acquired by any member of the Regional Group; 

(ii)  sell, transfer or otherwise dispose of any of its receivables on recourse terms; 

(iii)  enter into or permit to subsist any title retention arrangement; 

(iv)  enter into or permit to subsist any arrangement under which money or the benefit of a bank or other account may be applied, set-off or made subject to a combination of accounts; or 

(v)  enter into or permit to subsist any other preferential arrangement having a similar effect, 

in circumstances where the arrangement or transaction is entered into primarily as a method of raising Financial Indebtedness or of financing the acquisition of an asset. 

(c)  Paragraphs (a) and (b) above do not apply to: 

(i)   any Security listed in Part 1 of Schedule 6 (Existing Security, Contingent Obligations and Investments) except to the extent the principal amount secured by that Security exceeds the amount stated in that Schedule; 

(ii)  any netting or set-off arrangement entered into by any member of the Regional Group in the ordinary course of its banking arrangements for the purpose of netting debit and credit balances; 

(iii)  any lien arising by operation of law and in the ordinary course of trading so long as the debt which it secures is paid when due or contested in good faith by appropriate proceedings and properly provisioned; 

(iv)  title retention arrangements arising pursuant to a supplier's usual terms of supply provided that there is no default in payment for any goods so supplied (and no other event is subsisting) which might entitle the supplier to reclaim possession of the relevant goods; or 

(v)  other Security, including Security permitted under sub-paragraph (c)(i) above, securing Financial Indebtedness of a member of the Regional Group (as permitted pursuant to Clause 23.1 (Financial Indebtedness)), all of which, when taken together, secures Financial Indebtedness in an aggregate outstanding principal amount not to exceed 5 per cent. of Regional Group Consolidated Assets at any time. 

	 
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23.3     Disposals 

(a)  No member of the Regional Group shall enter into a single transaction or a series of transactions (whether related or not and whether voluntary or involuntary) to sell, lease, transfer or otherwise dispose of any asset. 

(b)  Paragraph (a) above does not apply to any sale, lease, transfer or other disposal of an asset: 

(i)   made in the ordinary course of trading of the disposing entity; 

(ii)  made in the ordinary course of business of obsolete or excess equipment or equipment that is no longer used or useful in the business of any member of the Regional Group; 

(iii)  in exchange for other assets comparable or superior as to type, value and quality and for a similar purpose; or 

(iv)  where the higher of the market value or consideration receivable (when aggregated with the higher of the market value or consideration receivable for any other sale, lease, transfer or other disposal, other than any permitted under paragraphs (i) to (iii) above) does not exceed 15 per cent. of the Regional Group Consolidated Assets (such Regional Group Consolidated Assets being calculated as at 31 December of the year immediately preceding the year in which such transaction is proposed to be entered into) in any calendar year and such sale, lease, transfer or other disposal could not reasonably be expected to have a Material Adverse Effect. 

23.4    Loans and guarantees 

(a)  No member of the Regional Group shall: 

(i)   make any loan, or provide any form of credit or financial accommodation, to any other person; or 

(ii)  give or issue any guarantee, indemnity, bond or letter of credit to or for the benefit of any person; or 

(iii)  permit to subsist any guarantee of any Financial Indebtedness of any of its Subsidiaries. 

(b)  Paragraph (a) above does not apply to: 

(i)   any guarantee or indemnity given pursuant to the Finance Documents; 

(ii)  trade credit given in the ordinary course of trading on normal commercial terms; 

(iii)  loans made to employees as part of their terms of employment; or 

(iv)  any loan, credit or financial accommodation made or provided to, or any guarantee, indemnity, bond or letter of credit given or issued to, or for the benefit of, any wholly-owned, direct or indirect, Subsidiary of Energizer Holdings (other than (a) a Subsidiary of Energizer Holdings incorporated in any jurisdiction of the United States or (b) any other Subsidiary of Energizer Holdings if the rights of the member of the Regional Group making, providing, giving or issuing, as the case may be, such loan, credit, financial accommodation, guarantee, letter of credit, bond or indemnity would be subordinated (or otherwise subject to restrictions) to the rights of any other person), the outstanding principal amounts of which, or liabilities under which, as the case may be, in aggregate

 

	 
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 do not exceed US$20,000,000 (or its equivalent in any other currency or currencies), provided that: 

(A)  each member of the Regional Group shall, at the time such loan, credit or financial accommodation is made or provided or such guarantee, indemnity, bond or letter of credit is given or issued, be deemed to represent and warrant that, taking into account its future liabilities and revenues, it is able to, and will remain able to, pay all amounts owed by it under the Finance Documents as such amounts fall due, notwithstanding the making or provision of such loan, credit or financial accommodation or the giving or issue of such guarantee, bond, indemnity or letter of credit, as the case may be; and 

(B)  Energizer Holdings shall, in each Compliance Certificate, notify the Agent of the aggregate of the outstanding principal amounts of and/or the outstanding liabilities under, as the case may be, any such loan, credit or financial accommodation that has been made or provided and any such guarantee, indemnity, bond or letter of credit that has been given or issued, provided that such outstanding principal amounts, or such outstanding liabilities, as the case may be, in aggregate equal or exceed US$5,000,000 (or its equivalent) as at such date. 

23.5     Acquisitions and investments 

No member of the Regional Group shall: 

(a)  invest in or acquire, whether by incorporation or otherwise, any share in or any security issued by any person, or any interest therein or in the capital of any person, or make any capital contribution to any person (other than any investment, acquisition or capital contribution by the Borrower in the Regional Guarantors); 

(b)  invest in or acquire any business or going concern, or the whole or substantially the whole business of the assets, property or business of any person or any assets that constitute a division or operating unit of the business of any person; or 

(c)  enter into any joint venture, consortium, partnership or similar arrangement with any person. 

23.6     Merger 

No member of the Regional Group shall enter into any amalgamation, demerger, merger or corporate reconstruction. 

23.7     Arm's length dealings 

No member of the Regional Group shall enter into any arrangement, agreement or commitment with any person or pay any fees, commissions or other sums on any account whatsoever to any persons other than as required by the Finance Documents or on terms which are at least as good as those it would obtain in the ordinary course of trading, on an arm's length basis unless the Majority Lenders have given their prior written consent to such arrangement, agreement or commitment. 

	 
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23.8    Change of business 

(a)    The Borrower shall procure that no material change is made to the general nature of the business of the Borrower or the Regional Group taken as a whole from that carried on at the date of this Agreement. 

(b)    Each member of the Regional Group shall carry on and conduct its business in substantially the same manner and in substantially the same fields of enterprise as it is presently conducted at the date of this Agreement unless, in the case of a Regional Guarantor, the failure to carry on and conduct its business as so described would not reasonably be expected to have a Material Adverse Effect. 

24.    Events of Default 

Each of the events or circumstances set out in Clause 24 is an Event of Default. 

24.1    Non-payment 

(a)    An Obligor does not pay on the due date any amount of principal of a Loan at the place at and in the currency in which it is expressed to be payable. 

(b)    An Obligor does not pay within 5 Business Days of the due date any other amount payable pursuant to a Finance Document at the place at and in the currency in which it is expressed to be payable. 

24.2    Financial and negative covenants 

Any requirement of Clause 20 (Financial covenants), Clause 22 (Negative Undertakings - the Group) or Clause 23 (Negative Undertakings - the Regional Group) (other than any requirement to notify the Agent pursuant to sub-paragraph (b)(iv)(B) of Clause 23.4 (Loans and guarantees)) is not satisfied. 

24.3    Other obligations 

(a)    An Obligor does not comply with any provision of the Finance Documents (other than those referred to in Clause 24.1 (Non-payment) and Clause 24.2 (Financial and negative covenants)) including, for the avoidance of doubt, any requirement to notify the Agent pursuant to sub-paragraph (b)(iv)(B) of Clause 23.4 (Loans and guarantees). 

(b)    No Event of Default under paragraph (a) above will occur if the failure to comply is capable of remedy and is remedied within 30 days of the earlier to occur of the Agent or any Lender giving notice thereof to the Borrower or the date on which a member of the Senior Management Team of an Obligor becomes aware of the failure to comply or should have know of such failure to comply. 

24.4    Misrepresentation 

Any representation or statement made or deemed to be made by an Obligor in the Finance Documents or any other document delivered by or on behalf of any Obligor under or in connection with any Finance Document is or proves to have been incorrect or misleading in any material respect when made or deemed to be made. 

 

	 
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24.5    Cross default 

(a)    Any Indebtedness of any member of the Group or Financial Indebtedness of any member of the Regional Group is not paid when due nor within any originally applicable grace period. 

(b)    Any Indebtedness of any member of the Group or Financial Indebtedness of any member of the Regional Group is declared to be or otherwise becomes due and payable (or otherwise redeemable or repurchaseable) prior to its specified maturity as a result of any actual or potential default, event of default, credit review event or any similar event (however described). 

(c)    Any creditor of any member of the Group or Regional Group becomes entitled to declare any Indebtedness of any member of the Group or any Financial Indebtedness of any member of the Regional Group due and payable (or otherwise redeemable or repurchaseable) prior to its specified maturity as a result of any actual or potential default, event of default, credit review event or any similar event (however described). 

(d)    No Event of Default will occur under this Clause 24.5 if the aggregate amount, without double counting, of all Indebtedness (in the case of members of the Group) and all Financial Indebtedness (in the case of members of the Regional Group) falling within paragraphs (a) to (c) above is less than US$30,000,000 (or its equivalent in any other currency or currencies). 

24.6    Insolvency 

(a)    A member of the Regional Group is unable to, or is presumed or deemed to be unable to or admits its inability to pay its debts, suspends making payments on any of its debts or, by reason of actual or anticipated financial difficulties, commences negotiations with one or more of its creditors with a view to rescheduling any of its indebtedness. 

(b)    The value of the assets of any member of the Regional Group is less than its liabilities (taking into account contingent and prospective liabilities). 

(c)    A moratorium is declared in respect of any indebtedness of any member of the Regional Group. 

24.7    Insolvency proceedings 

Any corporate action, legal proceedings or other procedure or step is taken in relation to: 

(a)    the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution, administration or reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise) of any member of the Regional Group; 

(b)    a composition, assignment or arrangement with any creditor of any member of the Regional Group; 

(c)    the appointment of a liquidator, Judicial Manager, receiver, administrator, administrative receiver, compulsory manager or other similar officer in respect of any member of the Regional Group or any of its assets; or 

(d)    enforcement of any Security over any assets of any member of the Regional Group, 

or any analogous procedure or step is taken in any jurisdiction unless, in each case, such procedure or step is frivolous or vexatious and is discharged within 10 days of being taken. 

	 
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24.8    US Involuntary Bankruptcy; Appointment of Receiver, Etc. 

(a)    An involuntary case shall be commenced against Energizer Holdings or any of its Material Subsidiaries and the petition shall not be dismissed, stayed, bonded or discharged within sixty (60) days after commencement of the case; or a court having jurisdiction in the premises shall enter a decree or order for relief in respect of Energizer Holdings or any of its Material Subsidiaries in an involuntary case, under any applicable bankruptcy, insolvency or other similar law now or hereinafter in effect; or any other similar relief shall be granted under any applicable federal, state, local or foreign law. 

(b)    A decree or order of a court having jurisdiction in the premises for the appointment of a receiver, liquidator, sequestrator, trustee, custodian or other officer having similar powers over Energizer Holdings or any of its Material Subsidiaries or over all or a substantial part of the assets of Energizer Holdings or any of its Material Subsidiaries shall be entered; or an interim receiver, trustee or other custodian of Energizer Holdings or any of its Material Subsidiaries or of all or a substantial part of the assets of Energizer Holdings or any of its Material Subsidiaries shall be appointed or a warrant of attachment, execution or similar process against any substantial part of the assets of Energizer Holdings of its or any of its Material Subsidiaries shall be issued and any such event shall not be stayed, dismissed, bonded or discharged within sixty (60) days after entry, appointment or issuance or any order, judgment or decree shall be entered against Energizer Holdings decreeing its involuntary dissolution or split up and such order shall remain undischarged and unstayed for a period in excess of sixty (60) days or Energizer Holdings shall otherwise dissolve or cease to exist. 

24.9    US Voluntary Bankruptcy; Appointment of Receiver, Etc. 

Energizer Holdings or any of its Material Subsidiaries shall (i) commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, (ii) consent to the entry of an order for relief in an involuntary case, or to the conversion of an involuntary case to a voluntary case, under any such law, (iii) consent to the appointment of or taking possession by a receiver, trustee or other custodian for all or a substantial part of its property, (iv) make any assignment for the benefit of creditors, (v) take any corporate action to authorise any of the foregoing or (vi) is generally not paying, or admits in writing its inability to pay, its debts as they become due. 

24.10    Judgments, creditors' process 

(a)    Any money judgment (other than a money judgment covered by insurance as to which the insurance company has not disclaimed or reserved the right to disclaim coverage) made or given by any court of competent jurisdiction against a member of the Group or its assets involving in any single case or in the aggregate an amount in excess of US$30,000,000 (or its equivalent) shall remain undischarged, unvacated, unbonded or unstayed for a period of 60 days or, if earlier, by the date 15 days prior to the date of any proposed sale thereunder. 

(b)    Any expropriation, attachment, sequestration, distress or execution affects any asset or assets of a member of the Group having in any single case or in the aggregate a value of US$30,000,000 (or its equivalent) and is not discharged within 60 days or, if earlier, by the date 15 days prior to the date of any proposed sale thereunder. 

	 
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24.11    Declared company 

An Obligor is declared by the Minister of Finance of Singapore to be a company to which Part IX of the Companies Act applies. 

24.12    Unlawfulness 

It is or becomes unlawful for an Obligor to perform any of its obligations under the Finance Documents. 

24.13    Repudiation 

An Obligor repudiates a Finance Document or evidences an intention to repudiate a Finance Document or any Finance Document ceases to be in full force and effect. 

24.14    ERISA Event 

Any ERISA Event occurs which the Majority Lenders believe is reasonably likely to subject any member of the Group to liability individually or in the aggregate in excess of US$30,000,000. 

24.15    Waiver of Minimum Funding Standard 

If the plan administrator of any Plan applies under Section 412(d) of the Internal Revenue Code for a waiver of the minimum funding standards of Section 412(a) of the Internal Revenue Code and the Majority Lenders believe the substantial business hardship upon which the application for the waiver is based could reasonably be expected to subject any member of the Group to liability individually or in the aggregate in excess of US$30,000,000. 

24.16    Environmental Matters 

Any member of the Group shall be the subject of any proceeding or investigation pertaining to: 

(a)    the release by the Borrower or any of its Subsidiaries of any Hazardous Substance into the Environment; 

(b)    the liability of the Borrower or any of its Subsidiaries arising from the release by any other person of any Hazardous Substance into the Environment; or 

(c)    any violation of any Environmental Law or Environmental Licence by any member of the Group, 

which has or is reasonably likely to subject any member of the Group to liability individually or in the aggregate in excess of US$30,000,000. 

24.17    Receivables Purchase Document Events 

A "Termination Event" (as defined in the 2000 Receivables Sale Agreement), an "Amortization Event" (as defined in the 2000 Receivables Purchase Agreement) or any other breach or event of like import under any replacement Receivables Purchase Documents permitted hereby (any such event, a "Receivables Facility Trigger Event") shall: 

(a)    occur with respect to the conduct or performance of (i) any member of the Group party to such Receivables Purchase Document, (ii) any servicer of the Receivables (so long as such servicer is Energizer Holdings or a Subsidiary thereof) under the Receivables Purchase Documents, (iii) any guarantor of the obligations of any member of the Group party to such Receivables Purchase Document or servicer under the Receivables Purchase Documents or (iv) any of their respective Subsidiaries other than an SPV; and 

	 
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(b)    result in the termination of reinvestments of collections or proceeds of Receivables and Related Security under any agreements evidencing Receivables Facility Attributed Indebtedness, 

it being understood and agreed that the occurrence of a Receivables Facility Trigger Event resulting solely from (i) the conduct or performance of an SPV and/or (ii) the performance or quality of the Receivables securing the obligations under the Receivables Purchase Documents, taken together with the circumstances described in paragraph (b) above shall not give rise to an Event of Default under this Clause 24.17. 

24.18    Acceleration 

On and at any time after the occurrence of an Event of Default the Agent may, and shall if so directed by the Majority Lenders, by notice to the Borrower: 

(a)    cancel the Total Commitments whereupon they shall immediately be cancelled; 

(b)    declare that all or part of the Loans, together with accrued interest, and all other amounts accrued or outstanding under the Finance Documents be immediately due and payable, whereupon they shall become immediately due and payable; and/or 

(c)    declare that all or part of the Loans be payable on demand, whereupon they shall immediately become payable on demand by the Agent on the instructions of the Majority Lenders. 

24.19    Automatic Acceleration 

If an Event of Default occurs under Clause 24.8 (US Involuntary Bankruptcy; Appointment of Receiver, Etc.) or Clause 24.9 (US Voluntary Bankruptcy; Appointment of Receiver, Etc.) in relation to Energizer Holdings, each amount expressed by Clause 17 (Guarantee and indemnity) to be payable by Energizer Holdings on demand shall, after that Event of Default has occurred, be immediately due and payable by Energizer Holdings without the need for any demand or other claim on Energizer Holdings. 

	 
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SECTION 9 

CHANGES TO PARTIES 

25.    Changes to the Lenders 

25.1    Assignments and transfers by the Lenders 

Subject to this Clause 25, a Lender (the "Existing Lender") may: 

(a)    assign any of its rights; or 

(b)    transfer by novation any of its rights and obligations, 

to another bank or financial institution or to a trust, fund or other entity which is regularly engaged in or established for the purpose of making, purchasing or investing in loans, securities or other financial assets (the "New Lender"). 

25.2    Conditions of assignment or transfer 

(a)    The consent of the Borrower is required for an assignment or transfer by a Lender, unless the assignment or transfer is to another Lender or an Affiliate of a Lender or an Approved Fund of a Lender or a Default is continuing. 

(b)    The consent of the Borrower to an assignment or transfer must not be unreasonably withheld or delayed. The Borrower will be deemed to have given its consent five Business Days after the Lender has requested it unless consent is expressly refused by the Borrower within that time. 

(c)    Unless the Agent and, if the consent of the Borrower is required pursuant to paragraph (a) above, the Borrower otherwise agree, any assignment or transfer by a Lender must be (when the amount of the participation being assigned or transferred is aggregated with the Existing Lender's Available Commitment being transferred) in a minimum amount equal to: 

(i)    in relation to Facility A, US$5,000,000; and 

(ii)    in relation to Facility B, S$5,000,000, 

or if less, the Existing Lender's participation in the Loans in that Facility and the Existing Lender's Available Commitment in respect of that Facility. 

(d)    An assignment will only be effective on receipt by the Agent of written confirmation from the New Lender (in form and substance satisfactory to the Agent) that the New Lender will assume the same obligations to the other Finance Parties as it would have been under if it was an Original Lender. 

(e)    A transfer will only be effective if the procedure set out in Clause 25.5 (Procedure for transfer) is complied with. 

(f)    If: 

(i)    a Lender assigns or transfers any of its rights or obligations under the Finance Documents or changes its Facility Office; and 

(ii)    as a result of circumstances existing at the date the assignment, transfer or change occurs, an Obligor would be obliged to make a payment to the New Lender or Lender acting through its new Facility Office under Clause 12 (Tax gross-up and indemnities) or Clause 13 (Increased Costs), 

	 
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then the New Lender or Lender acting through its new Facility Office is only entitled to receive payment under those Clauses to the same extent as the Existing Lender or Lender acting through its previous Facility Office would have been if the assignment, transfer or change had not occurred. 

25.3    Assignment or transfer fee 

The New Lender shall, on the date upon which an assignment or transfer takes effect or the Transfer Certificate is delivered to the Agent in accordance with Clause 25.5 (Procedure for transfer), pay to the Agent (for its own account) a fee of US$1,000. 

25.4    Limitation of responsibility of Existing Lenders 

(a)    Unless expressly agreed to the contrary, an Existing Lender makes no representation or warranty and assumes no responsibility to a New Lender for: 

(i)    the legality, validity, effectiveness, adequacy or enforceability of the Finance Documents or any other documents; 

(ii)    the financial condition of any Obligor; 

(iii)    the performance and observance by any Obligor of its obligations under the Finance Documents or any other documents; or 

(iv)    the accuracy of any statements (whether written or oral) made in or in connection with any Finance Document or any other document, 

and any representations or warranties implied by law are excluded. 

(b)    Each New Lender confirms to the Existing Lender and the other Finance Parties that it: 

(i)    has made (and shall continue to make) its own independent investigation and assessment of the financial condition and affairs of each Obligor and its related entities in connection with its participation in this Agreement and has not relied exclusively on any information provided to it by the Existing Lender in connection with any Finance Document; and 

(ii)    will continue to make its own independent appraisal of the creditworthiness of each Obligor and its related entities whilst any amount is or may be outstanding under the Finance Documents or any Commitment is in force. 

(c)    Nothing in any Finance Document obliges an Existing Lender to: 

(i)    accept a re-transfer from a New Lender of any of the rights and obligations assigned or transferred under this Clause 25; or 

(ii)    support any losses directly or indirectly incurred by the New Lender by reason of the non-performance by any Obligor of its obligations under the Finance Documents or otherwise. 

	 
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25.5    Procedure for transfer 

(a)    Subject to the conditions set out in Clause 25.2 (Conditions of assignment or transfer) a transfer is effected in accordance with paragraph (b) below when the Agent executes an otherwise duly completed Transfer Certificate delivered to it by the Existing Lender and the New Lender. The Agent shall, as soon as reasonably practicable after receipt by it of a duly completed Transfer Certificate appearing on its face to comply with the terms of this Agreement and delivered in accordance with the terms of this Agreement, execute that Transfer Certificate. 

(b)    On the Transfer Date: 

(i)    to the extent that in the Transfer Certificate the Existing Lender seeks to transfer by novation its rights and obligations under the Finance Documents each of the Obligors and the Existing Lender shall be released from further obligations towards one another under the Finance Documents and their respective rights against one another under the Finance Documents shall be cancelled (being the "Discharged Rights and Obligations"); 

(ii)    each of the Obligors and the New Lender shall assume obligations towards one another and/or acquire rights against one another which differ from the Discharged Rights and Obligations only insofar as that Obligor and the New Lender have assumed and/or acquired the same in place of that Obligor and the Existing Lender; 

(iii)    the Agent, the Arranger, the New Lender and other Lenders shall acquire the same rights and assume the same obligations between themselves as they would have acquired and assumed had the New Lender been an Original Lender with the rights and/or obligations acquired or assumed by it as a result of the transfer and to that extent the Agent, the Arranger and the Existing Lender shall each be released from further obligations to each other under the Finance Documents; and 

(iv)    the New Lender shall become a Party as a "Lender". 

25.6    Participations 

For the avoidance of doubt, nothing in this Agreement shall prevent any Lender from entering into any sub-participation, risk participation, credit default swap or other similar transaction with any other person. 

25.7    Replacement of Certain Lenders 

(a)    Without in any way limiting the obligations of the Obligors under the Finance Documents (including, without limitation, pursuant to Clauses 7.1 (Illegality) or 13.1 (Increased Costs)), in the event that a Lender (an "Affected Lender") is entitled to repayment or prepayment pursuant to Clause 7.1 (Illegality) or to payment of its Increased Costs pursuant to Clause 13.1 (Increased Costs) and such payments are not payable to any other Lender pursuant to Clauses 7.1 (Illegality) or 13.1 (Increased Costs), the Borrower may deliver a notice to such Affected Lender (with a copy to the Agent) requesting the Affected Lender to transfer all of such Affected Lender's rights and obligations under the Finance Documents (including, without limitation, its Commitment) to one or more financial institutions or other persons that comply with the provisions of this Clause 25 (Changes to Lenders), which the Borrower shall have engaged for such purposes (a "Replacement Lender") and notified to the Affected Lender in the Borrower's notice and, on receipt of such notice, such Affected Lender shall use its reasonable efforts to make such transfer in accordance with the foregoing provisions of this Clause 25 (Changes to the Lenders) within five (5) Business Days from the date of such notice (or in the case of Clause 7.1 (Illegality), if earlier, the date specified by the Affected Lender in the notice delivered to the Agent pursuant to sub-paragraph (a)(i) of that Clause 7.1(Illegality) or, if earlier, the last day of the Interest Period for each Loan outstanding on the notification date (as defined in Clause 7.1 (Illegality)). 

	 
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(b)    The Agent agrees, upon the written request of the Borrower following the occurrence of an event entitling the Borrower to deliver a notice under this Clause 25.7, to use its reasonable efforts to help the Borrower engage one or more financial institutions to act as a Replacement Lender. 

(c)    For the avoidance of doubt, an Affected Lender need not effect any transfer pursuant to this Clause 25.7, unless prior to (or on) such transfer it receives in cash, all amounts due and owing to the Affected Lender under each Finance Document, including, without limitation, the aggregate outstanding principal amount of the Loans owed to such Affected Lender, together with accrued interest thereon until the date of such transfer. 

26.    Changes to the Obligors 

No Obligor may assign any of its rights or transfer any of its rights or obligations under the Finance Documents. 

	 
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SECTION 10 

THE FINANCE PARTIES 

27.    Role of the Agent and the Arranger 

27.1    Appointment of the Agent 

(a)    The Arranger and each Lender appoints the Agent to act as its agent under and in connection with the Finance Documents. 

(b)    The Arranger and each Lender authorises the Agent to exercise the rights, powers, authorities and discretions specifically given to the Agent under or in connection with the Finance Documents together with any other incidental rights, powers, authorities and discretions. 

27.2    Duties of the Agent 

(a)    The Agent shall promptly forward to a Party the original or a copy of any document which is delivered to the Agent for that Party by any other Party. 

(b)    Except where a Finance Document specifically provides otherwise, the Agent is not obliged to review or check the adequacy, accuracy or completeness of any document it forwards to another Party. 

(c)    If the Agent receives notice from a Party referring to this Agreement, describing a Default and stating that the circumstance described is a Default, it shall promptly notify the Lenders. 

(d)    If the Agent is aware of the non-payment of any principal, interest, commitment fee or other fee payable to a Finance Party (other than the Agent or the Arranger) under this Agreement it shall promptly notify the other Finance Parties. 

(e)    The Agent's duties under the Finance Documents are solely mechanical and administrative in nature. The Agent shall have no other duties save as expressly provided in the Finance Documents to which it is party. 

27.3    Role of the Arranger 

Except as specifically provided in the Finance Documents, the Arranger has no obligations of any kind to any other Party under or in connection with any Finance Document. 

27.4    No fiduciary duties 

(a)    Nothing in this Agreement constitutes the Agent or the Arranger as a trustee or fiduciary of any other person. 

(b)    Neither the Agent nor the Arranger shall be bound to account to any Lender for any sum or the profit element of any sum received by it for its own account. 

27.5    Business with the Group 

The Agent and the Arranger may accept deposits from, lend money to and generally engage in any kind of banking or other business with any member of the Group. 

27.6    Rights and discretions of the Agent 

(a)    The Agent may rely on: 

	 
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(i)    any representation, notice or document believed by it to be genuine, correct and appropriately authorised; and 

(ii)    any statement purportedly made by a director, authorised signatory or employee of any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power to verify. 

(b)    The Agent may assume (unless it has received notice to the contrary in its capacity as agent for the Lenders) that: 

(i)    no Default has occurred (unless it has actual knowledge of a Default arising under Clause 24.1 (Non-payment)); 

(ii)    any right, power, authority or discretion vested in any Party or the Majority Lenders has not been exercised; and 

(iii)    any notice or request made by an Obligor (other than a Utilisation Request or Selection Notice) is made on behalf of and with the consent and knowledge of all the Obligors. 

(c)    The Agent may engage, pay for and rely on the advice or services of any lawyers, accountants, surveyors or other experts. 

(d)    The Agent may act in relation to the Finance Documents through its personnel and agents. 

(e)    The Agent may disclose to any other Party any information it reasonably believes it has received as agent under this Agreement. 

(f)    Notwithstanding any other provision of any Finance Document to the contrary, neither the Agent nor the Arranger is obliged to do or omit to do anything if it would or might in its reasonable opinion constitute a breach of any law or regulation or a breach of a fiduciary duty or duty of confidentiality. 

27.7    Majority Lenders' instructions 

(a)    Unless a contrary indication appears in a Finance Document, the Agent shall (i) exercise any right, power, authority or discretion vested in it as Agent in accordance with any instructions given to it by the Majority Lenders (or, if so instructed by the Majority Lenders, refrain from exercising any right, power, authority or discretion vested in it as Agent) and (ii) not be liable for any act (or omission) if it acts (or refrains from taking any action) in accordance with an instruction of the Majority Lenders. 

(b)    Unless a contrary indication appears in a Finance Document, any instructions given by the Majority Lenders will be binding on all the Finance Parties. 

(c)    The Agent may refrain from acting in accordance with the instructions of the Majority Lenders (or, if appropriate, the Lenders) or under paragraph (d) below until it has received such security as it may require for any cost, loss or liability (together with any associated Indirect Tax) which it may incur in complying with the instructions. 

(d)    In the absence of instructions from the Majority Lenders (or, if appropriate, the Lenders), the Agent may act (or refrain from taking action) as it considers to be in the best interest of the Lenders. 

	 
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(e)    The Agent is not authorised to act on behalf of a Lender (without first obtaining that Lender's consent) in any legal or arbitration proceedings relating to any Finance Document. 

27.8    Responsibility for documentation 

Neither the Agent nor the Arranger: 

(a)    is responsible for the adequacy, accuracy and/or completeness of any information (whether oral or written) supplied by the Agent, the Arranger, an Obligor or any other person given in or in connection with any Finance Document or the Information Memorandum; or 

(b)    is responsible for the legality, validity, effectiveness, adequacy or enforceability of any Finance Document or any other agreement, arrangement or document entered into, made or executed in anticipation of or in connection with any Finance Document. 

27.9    Exclusion of liability 

(a)    Without limiting paragraph (b) below, the Agent will not be liable for any action taken by it, or for omitting to take action under or in connection with any Finance Document, unless directly caused by its gross negligence or wilful misconduct. 

(b)    No Party (other than the Agent) may take any proceedings against any officer, employee or agent of the Agent in respect of any claim it might have against the Agent or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Finance Document. Any third party referred to in this paragraph (b) may enjoy the benefit of or enforce the terms of this paragraph in accordance with the provisions of the Third Parties Act. 

(c)    The Agent will not be liable for any delay (or any related consequences) in crediting an account with an amount required under the Finance Documents to be paid by the Agent if the Agent has taken all necessary steps as soon as reasonably practicable to comply with the regulations or operating procedures of any recognised clearing or settlement system used by the Agent for that purpose. 

27.10    Lenders' indemnity to the Agent 

(a)    Subject to paragraph (b) below, each Lender shall (in proportion to its Available Commitments and participations in the Loans then outstanding to the Available Facilities and all the Loans then outstanding) indemnify the Agent, within three Business Days of demand, against any cost, loss or liability incurred by the Agent (otherwise than by reason of the Agent's gross negligence or wilful misconduct) in acting as Agent under the Finance Documents (unless the Agent has been reimbursed by an Obligor pursuant to a Finance Document). 

(b)    If the Available Facilities are then zero each Lender's indemnity under paragraph (a) above shall be in proportion to its Available Commitments to the Available Facilities immediately prior to their reduction to zero, unless there are then any Loans outstanding in which case it shall be in proportion to its participations in the Loans then outstanding to all the Loans then outstanding. 

27.11    Resignation of the Agent 

(a)    The Agent may resign and appoint one of its Affiliates acting through an office in Singapore as successor by giving notice to the other Finance Parties and the Borrower. 

	 
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(b)    Alternatively the Agent may resign by giving notice to the other Finance Parties and the Borrower, in which case the Majority Lenders (after consultation with the Borrower) may appoint a successor Agent. 

(c)    If the Majority Lenders have not appointed a successor Agent in accordance with paragraph (b) above within 30 days after notice of resignation was given, the Agent (after consultation with the Borrower) may appoint a successor Agent (acting through an office in Singapore). 

(d)    The retiring Agent shall, at its own cost, make available to the successor Agent such documents and records and provide such assistance as the successor Agent may reasonably request for the purposes of performing its functions as Agent under the Finance Documents. 

(e)    The Agent's resignation notice shall only take effect upon the appointment of a successor. 

(f)    Upon the appointment of a successor, the retiring Agent shall be discharged from any further obligation in respect of the Finance Documents but shall remain entitled to the benefit of this Clause 27. Its successor and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party. 

(g)    After consultation with the Borrower, the Majority Lenders may, by notice to the Agent, require it to resign in accordance with paragraph (b) above. In this event, the Agent shall resign in accordance with paragraph (b) above. 

27.12    Confidentiality 

(a)    In acting as agent for the Finance Parties, the Agent shall be regarded as acting through its agency division which shall be treated as a separate entity from any other of its divisions or departments. 

(b)    If information is received by another division or department of the Agent, it may be treated as confidential to that division or department and the Agent shall not be deemed to have notice of it. 

(c)    Notwithstanding any other provision of any Finance Document to the contrary, neither the Agent nor the Arranger are obliged to disclose to any person (i) any confidential information or (ii) any other information if the disclosure would or might in its reasonable opinion constitute a breach of any law or regulation or a breach of any contractual or fiduciary duty. 

27.13    Relationship with the Lenders 

The Agent may treat each Lender as a Lender, entitled to payments under this Agreement and acting through its Facility Office unless it has received not less than five Business Days prior notice from that Lender to the contrary in accordance with the terms of this Agreement. 

27.14    Credit appraisal by the Lenders 

Without affecting the responsibility of any Obligor for information supplied by it or on its behalf in connection with any Finance Document, each Lender confirms to the Agent and the Arranger that it has been, and will continue to be, solely responsible for making its own independent appraisal and investigation of all risks arising under or in connection with any Finance Document including but not limited to: 

(a)    the financial condition, status and nature of each member of the Group; 

	 
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(b)    the legality, validity, effectiveness, adequacy or enforceability of any Finance Document and any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document; 

(c)    whether that Lender has recourse, and the nature and extent of that recourse, against any Party or any of its respective assets under or in connection with any Finance Document, the transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document; and 

(d)    the adequacy, accuracy and/or completeness of the Information Memorandum and any other information provided by the Agent, any Party or by any other person under or in connection with any Finance Document, the transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document. 

27.15    Reference Banks 

If a Reference Bank (or, if a Reference Bank is not a Lender, the Lender of which it is an Affiliate) ceases to be a Lender, the Agent shall (in consultation with the Borrower) appoint another Lender or an Affiliate of a Lender or any bank approved by the Majority Lenders to replace that Reference Bank. If a Reference Bank ceases generally to offer quotations for SIBOR or SOR, the Agent shall (in consultation with the Borrower) appoint another bank or financial institution approved by the Majority Lenders to replace that Reference Bank. 

27.16    Agent's Management Time 

Any amount payable to the Agent under Clause 14.3 (Indemnity to the Agent), Clause 16 (Costs and expenses) and Clause 27.10 (Lenders' indemnity to the Agent) shall include the cost of utilising the Agent's management time or other resources and will be calculated on the basis of such reasonable daily or hourly rates as the Agent may notify to the Borrower and the Lenders, and is in addition to any fee paid or payable to the Agent under Clause 11 (Fees). 

27.17    Deduction from amounts payable by the Agent 

If any Party owes an amount to the Agent under the Finance Documents the Agent may, after giving notice to that Party, deduct an amount not exceeding that amount from any payment to that Party which the Agent would otherwise be obliged to make under the Finance Documents and apply the amount deducted in or towards satisfaction of the amount owed. For the purposes of the Finance Documents that Party shall be regarded as having received any amount so deducted. 

27.18    Money Laundering 

Unless mandatorily required by applicable law or regulation to which the Agent is subject, the Agent shall not be responsible to any other Party for providing any certification or documents with respect to information (except in respect of itself) required for any anti-money laundering due diligence purpose. Such certificates and related documents shall be provided directly by the Borrower and other Obligors provided that the request for such information may be made through the Agent. 

	 
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27.19    Hedging Banks 

Except as otherwise stated in this Agreement, the Agent shall have no liability under the Finance Documents whatsoever to any Hedging Bank. 

28.    Conduct of business by the Finance Parties 

No provision of this Agreement will: 

(a)    interfere with the right of any Finance Party to arrange its affairs (tax or otherwise) in whatever manner it thinks fit; 

(b)    oblige any Finance Party to investigate or claim any credit, relief, remission or repayment available to it or the extent, order and manner of any claim; or 

(c)    oblige any Finance Party to disclose any information relating to its affairs (tax or otherwise) or any computations in respect of Tax. 

29.    Sharing among the Finance Parties 

29.1    Payments to Finance Parties 

If a Finance Party (a "Recovering Finance Party") receives or recovers any amount from an Obligor other than in accordance with Clause 30 (Payment mechanics) and applies that amount to a payment due under the Finance Documents then: 

(a)    the Recovering Finance Party shall, within three Business Days, notify details of the receipt or recovery to the Agent; 

(b)    the Agent shall determine whether the receipt or recovery is in excess of the amount the Recovering Finance Party would have been paid had the receipt or recovery been received or made by the Agent and distributed in accordance with Clause 30 (Payment mechanics), without taking account of any Tax which would be imposed on the Agent in relation to the receipt, recovery or distribution; and 

(c)    the Recovering Finance Party shall, within three Business Days of demand by the Agent, pay to the Agent an amount (the "Sharing Payment") equal to such receipt or recovery less any amount which the Agent determines may be retained by the Recovering Finance Party as its share of any payment to be made, in accordance with Clause 30.6 (Partial payments). 

29.2    Redistribution of payments 

The Agent shall treat the Sharing Payment as if it had been paid by the relevant Obligor and distribute it between the Finance Parties (other than the Recovering Finance Party) in accordance with Clause 30.6 (Partial payments). 

29.3    Recovering Finance Party's rights 

(a)    On a distribution by the Agent under Clause 29.2 (Redistribution of payments), the Recovering Finance Party will be subrogated to the rights of the Finance Parties which have shared in the redistribution. 

	 
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(b)    If and to the extent that the Recovering Finance Party is not able to rely on its rights under paragraph (a) above, the relevant Obligor shall be liable to the Recovering Finance Party for a debt equal to the Sharing Payment which is immediately due and payable. 

29.4    Reversal of redistribution 

If any part of the Sharing Payment received or recovered by a Recovering Finance Party becomes repayable and is repaid by that Recovering Finance Party, then: 

(a)    each Finance Party which has received a share of the relevant Sharing Payment pursuant to Clause 29.2 (Redistribution of payments) shall, upon request of the Agent, pay to the Agent for account of that Recovering Finance Party an amount equal to the appropriate part of its share of the Sharing Payment (together with an amount as is necessary to reimburse that Recovering Finance Party for its proportion of any interest on the Sharing Payment which that Recovering Finance Party is required to pay); and 

(b)    that Recovering Finance Party's rights of subrogation in respect of any reimbursement shall be cancelled and the relevant Obligor will be liable to the reimbursing Finance Party for the amount so reimbursed. 

29.5    Exceptions 

(a)    This Clause 29 shall not apply to the extent that the Recovering Finance Party would not, after making any payment pursuant to this Clause, have a valid and enforceable claim against the relevant Obligor. 

(b)    A Recovering Finance Party is not obliged to share with any other Finance Party any amount which the Recovering Finance Party has received or recovered as a result of taking legal or arbitration proceedings, if: 

(i)    it notified that other Finance Party of the legal or arbitration proceedings; and 

(ii)    that other Finance Party had an opportunity to participate in those legal or arbitration proceedings but did not do so as soon as reasonably practicable having received notice and did not take separate legal or arbitration proceedings. 

	 
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SECTION 11 

ADMINISTRATION 

30.    Payment mechanics 

30.1    Payments to the Agent 

(a)    On each date on which an Obligor or a Lender is required to make a payment under a Finance Document, that Obligor or Lender shall make the same available to the Agent (unless a contrary indication appears in a Finance Document) for value on the due date at the time and in such funds specified by the Agent as being customary at the time for settlement of transactions in the relevant currency in the place of payment. 

(b)    Payment shall be made to the following accounts of the Agent: 

 

	For payment in US$:
	Bank	: 	Citibank N.A., New York
	Swift	: 	CITIUS33
	For Account of	: 	Citicorp Investment Bank (Singapore) Limited
	Account No.	: 	10999866
	For payment in S$:  

 

Citibank NA Singapore for the account of Citicorp Investment Bank (S) Limited account No. 0-010698-014, 

or to such account in the principal financial centre of the country of that currency with such bank as the Agent specifies to the Parties after the date of this Agreement. 

30.2    Distributions by the Agent 

(a)    Each payment received by the Agent under the Finance Documents for another Party shall, subject to Clause 30.3 (Distributions to an Obligor) and Clause 30.5 (Clawback) and to paragraph (b) below, be made available by the Agent by payment as soon as practicable after receipt to the Party entitled to receive payment in accordance with this Agreement (in the case of a Lender, for the account of its Facility Office), to such account as that Party may notify to the Agent by not less than five Business Days' prior notice, with a bank in the principal financial centre of the country of that currency. Any notice given to the Agent by a Party under this paragraph (a) is only effective when the original notice is received by the Agent signed by an authorised officer of that Party. 

(b)    Notwithstanding paragraph (a) above, any payment to be made under the Finance Documents by the Agent to a Lender in US Dollars or Singapore Dollars shall be made in accordance with that Lender's Standing Payment Instruction for that currency. 

30.3    Distributions to an Obligor 

The Agent may (with the consent of the Obligor or in accordance with Clause 31 (Set-off)) apply any amount received by it for that Obligor in or towards payment (on the date and in the currency and funds of receipt) of any amount due from that Obligor under the Finance Documents or in or towards purchase of any amount of any currency to be so applied. 

	 
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30.4    Netting of Payments 

Notwithstanding Clause 6.2 (Repayment of Facility B Loans) or Clauses 30.1 (Payments to the Agent) to 30.3 (Distributions to an Obligor) or any other provision of the Finance Documents, if on any date an amount (the "first amount") is to be advanced by a Lender under this Agreement and an amount (the "second amount") is due from the Borrower to that Lender under the Finance Documents in the same currency, that Lender shall apply the first amount in or towards payment of the second amount. The relevant Lender shall remain obliged to advance any excess (or, as the case may be, the Obligors shall remain liable in respect of any shortfall) in accordance with this Clause 30. Nothing in this Clause 30.4 shall be effective to create a charge. 

30.5    Clawback 

(a)    Where a sum is to be paid to the Agent under the Finance Documents for another Party, the Agent is not obliged to pay that sum to that other Party (or to enter into or perform any related exchange contract) until it has been able to establish to its satisfaction that it has actually received that sum. 

(b)    If the Agent pays an amount to another Party and it proves to be the case that the Agent had not actually received that amount, then the Party to whom that amount (or the proceeds of any related exchange contract) was paid by the Agent shall on demand refund the same to the Agent together with interest on that amount from the date of payment to the date of receipt by the Agent, calculated by the Agent to reflect its cost of funds. 

30.6    Partial payments 

(a)    If the Agent receives a payment that is insufficient to discharge all the amounts then due and payable by an Obligor under the Finance Documents, the Agent shall apply that payment towards the obligations of that Obligor under the Finance Documents in the following order: 

(i)    first, in or towards payment pro rata of any unpaid fees, costs and expenses of the Agent or the Arranger under the Finance Documents; 

(ii)    secondly, in or towards payment pro rata of any accrued interest, fee or commission due but unpaid under this Agreement; 

(iii)    thirdly, in or towards payment pro rata of any principal due but unpaid under this Agreement; and 

(iv)    fourthly, in or towards payment pro rata of any other sum due but unpaid under the Finance Documents. 

(b)    The Agent shall, if so directed by the Majority Facility A Lenders and the Majority Facility B Lenders, vary the order set out in paragraphs (a)(ii) to (iv) above. 

(c)    Paragraphs (a) and (b) above will override any appropriation made by an Obligor. 

30.7    No set-off by Obligors 

All payments to be made by an Obligor under the Finance Documents shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim. 

	 
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30.8    Business Days 

(a)    Any payment which is due to be made on a day that is not a Business Day shall be made on the next Business Day in the same calendar month (if there is one) or the preceding Business Day (if there is not). 

(b)    During any extension of the due date for payment of any principal or an Unpaid Sum under this Agreement interest is payable on the principal or Unpaid Sum at the rate payable on the original due date. 

30.9    Currency of account 

(a)    Subject to paragraphs (b) to (e) below, US Dollars is the currency of account and payment for any sum due from an Obligor under any Finance Document. 

(b)    A repayment of a Loan or Unpaid Sum or a part of a Loan or Unpaid Sum shall be made in the currency in which that Loan or Unpaid Sum is denominated on its due date. 

(c)    Each payment of interest shall be made in the currency in which the sum in respect of which the interest is payable was denominated when that interest accrued. 

(d)    Each payment in respect of costs, expenses or Taxes shall be made in the currency in which the costs, expenses or Taxes are incurred. 

(e)    Any amount expressed to be payable in a currency other than US Dollars shall be paid in that other currency. 

31.    Set-off 

Without prior notice to any Obligor, a Finance Party may, but is not obliged to, set off any matured obligation due from an Obligor under the Finance Documents (to the extent beneficially owned by that Finance Party) against any matured obligation owed by that Finance Party to that Obligor (whether or not matured), regardless of the place of payment, booking branch or currency of either obligation. If the obligations are in different currencies, the Finance Party may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off. 

32.    Disclosure of information 

32.1    General 

Without prejudice to Clause 32.2 (Tax) or to the rights of the Finance Parties to disclose information relating to any Obligor, the Regional Group or the Group whether under the common law or the Banking Act, Chapter 19 of Singapore (as amended or re-enacted from time to time, the "Banking Act") or otherwise, each Obligor consents to each Finance Party, its officers (as defined in the Banking Act) and agents and all persons to whom Section 47 of the Banking Act applies disclosing any customer information (as defined in the Banking Act) and any other information relating to any Obligor, the Group, the Regional Group and the Finance Documents as that Finance Party shall consider necessary for any such purposes as it thinks fit, and any other information (including personal data) relating to the Obligors and the Obligors' account relationship (including deposit accounts) and/or dealing relationship with that Finance Party, including

 

	 
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but not limited to details of the Facilities, any Finance Document, any security taken, transactions undertaken and balances and positions with each Lender and any information which is in the public domain to: 

(a)    any of that Finance Party's agents, contractors or third party service providers or professional advisers who are under a duty of confidentiality to the Lender and who provide administrative, telecommunications, computer, payment, collections, security, clearing, credit reference or checking, or other services or facilities to that Finance Party under or in connection with the Facility, this Agreement or any other Finance Document and/or the operation of that Finance Party's business, whether in Singapore or outside Singapore; 

(b)    that Finance Party's head office, branches, representative offices, Subsidiaries, related corporations or Affiliates, in Singapore or overseas (collectively the "Related Parties" and each a "Related Party") for any database or data processing purposes or any other purposes whatsoever, notwithstanding that a Related Party's principal place of business may be outside of Singapore or that the Obligor's information following disclosure may be collected, held, processed or used by any Related Party in whole or in part outside of Singapore; 

(c)    any regulatory, supervisory or other authority, court of law, tribunal or person, in Singapore or any other jurisdiction, where such disclosure is required by law, regulation, judgment or order of court or order of any tribunal or otherwise in connection with any legal proceedings taken against any Obligor in connection with the Finance Documents; 

(d)    any actual or potential New Lender or other assignee or transferee of any rights and obligations of that Finance Party or other participants in any of its rights and/or obligations under or relating to the Facilities, this Agreement or any other Finance Document and any security therefor for any purposes connected with the proposed assignment or transfer; 

(e)    any insurer (whether of that Finance Party or an Obligor or otherwise), guarantor or provider of security; 

(f)    any of that Finance Party's Affiliates or any other person: 

(i)    with (or through) whom that Finance Party enters into (or may potentially enter into) any sub-participation in relation to, or any other transaction under which payments are to be made by reference to, the Finance Documents or any Obligor; 

(ii)    who is a person, or who belongs to a class of persons, specified in the second column of the Sixth Schedule to the Banking Act (the "Sixth Schedule") but only for the purposes specified in the first column of the Sixth Schedule and subject always to the conditions (if any) set out in the third column of the Sixth Schedule; and 

	 
	 	-90-	 
	

	 

 

(iii)    to whom that Finance Party is under a duty to disclose subject, however, to the restrictions on any such disclosure set out in Section 47 of the Banking Act or in the Sixth Schedule. 

This Clause 32.1 is not, and shall not be deemed to constitute, an express or implied agreement by any Finance Party with any Obligor for a higher degree of confidentiality than that prescribed in Section 47 of the Banking Act and in the Sixth Schedule to the Banking Act. 

32.2    Tax 

Notwithstanding any other term of this Agreement, confidential information shall not include, and each Finance Party (and each employee, representative or other agent of any Finance Party) may disclose to any and all persons, without limitation of any kind, the "tax treatment" and "tax structure" (in each case, within the meaning of US Treasury Regulation Section 1.6011-4) of the transactions contemplated hereby and all materials of any kind (including opinions or other tax analyses) that are or have been provided to such Finance Party relating to such tax treatment or tax structure; provided that (unless otherwise permitted pursuant to the terms of this Agreement) (a) this Clause is not intended to permit disclosure of any other information to the extent not related to such tax treatment or tax structure and (b) with respect to any document or similar item that in either case contains information concerning such tax treatment or tax structure of the transactions contemplated by this Agreement as well as other information, this Clause shall only apply to such portions of the document or similar item that relate to such tax treatment or tax structure. 

33.    Notices 

33.1    Communications in writing 

Any communication to be made under or in connection with the Finance Documents shall be made in writing and, unless otherwise stated, may be made by fax, letter or under Clause 33.5 (Electronic communication) by email. 

33.2    Addresses 

The address, fax number and (if applicable) email address (and the department or officer, if any, for whose attention the communication is to be made) of each Party for any communication or document to be made or delivered under or in connection with the Finance Documents is: 

(a)    in the case of the Borrower, that identified with its name below; 

(b)    in the case of each Original Lender or any other Obligor, that identified with its name below; 

(c)    in the case of each Lender that becomes a Party after the date of this Agreement, that notified in writing to the Agent on or prior to the date on which it becomes a Party; and 

(d)    in the case of the Agent, that identified with its name below, 

or any substitute address, fax number or department or officer as the Party may notify to the Agent (or the Agent may notify to the other Parties, if a change is made by the Agent) by not less than five Business Days' notice. 

	 
	 	-91-	 
	

	 

 

33.3    Delivery 

(a)    Any communication or document made or delivered by one person to another under or in connection with the Finance Documents will only be effective: 

(i)    if sent by fax before 5 p.m. (local time in the place to which it is sent) on a working day in that place, when sent or, if sent by fax at any other time, at 9 a.m. (local time in the place to which it is sent) on the next working day in that place, provided, in each case, that the person sending the fax shall have received a transmission receipt; or 

(ii)    if by way of letter, when it has been left at the relevant address or three Business Days after being deposited in the post postage prepaid in an envelope addressed to it at that address; or 

(iii)    if by way of email, if it complies with the rules under Clause 33.5 (Electronic communication) 

and, if a particular department or officer is specified as part of its address details provided under Clause 33.2 (Addresses), if addressed to that department or officer. For this purpose, working days are days other than Saturdays, Sundays and bank holidays. 

(b)    Any communication or document to be made or delivered to the Agent will be effective only when actually received by the Agent and then only if it is expressly marked for the attention of the department or officer identified with the Agent's signature below (or any substitute department or officer as the Agent shall specify for this purpose). 

(c)    All notices from or to an Obligor shall be sent through the Agent. 

(d)    Any communication or document made or delivered to the Borrower in accordance with this Clause will be deemed to have been made or delivered to each of the Obligors. 

33.4    Notification of address and fax number 

Promptly upon receipt of notification of an address, fax number and email address or change of address, fax number or email address pursuant to Clause 33.2 (Addresses) or changing its own address, fax number or email address the Agent shall notify the other Parties. 

33.5    Electronic communication 

(a)    Any communication to be made between the Agent and a Lender under or in connection with the Finance Documents may be made by electronic mail or other electronic means, if the Agent and the relevant Lender: 

(i)    agree that, unless and until notified to the contrary, this is to be an accepted form of communication; 

(ii)    notify each other in writing of their electronic mail address and/or any other information required to enable the sending and receipt of information by that means; and 

(iii)    notify each other of any change to their electronic mail address or any other such information supplied by them. 

	 
	 	-92-	 
	

	 

 

Any Lender which sets out an email address as part of its "administration details" provided by it to the Agent from time to time in connection with the Finance Documents is deemed to agree to receiving communications from the Agent by electronic mail to that email address. 

(b)    Any electronic communication made: 

(i)    by the Agent to a Lender will be effective when it is sent by the Agent unless the Agent receives a message indicating failed delivery; and 

(ii)    by a Lender to the Agent will be effective only when actually received by the Agent and then only if it is addressed in such a manner as the Agent shall specify to that Lender for this purpose. 

(c)    The Agent or a Lender shall notify any affected Parties promptly upon becoming aware that its electronic mail system or other electronic means of communication cannot be used due to technical failure (and that failure is or is likely to be continuing for more than 2 Business Days). Until the Agent or that Lender has notified the other affected Parties that the failure has been remedied, all notices between those parties shall be sent by fax or letter in accordance with this Clause 33 (Notices). 

(d)    Each Party acknowledges and agrees that the privacy and integrity of electronic transmissions cannot be guaranteed. To the extent that any information relating to the Finance Documents is transmitted electronically, each Obligor agrees to release each Finance Party, and each Lender agrees to release each other Finance Party from any loss or liability incurred in connection with the electronic transmission of such information, including the unauthorised interception, alteration or fraudulent generation and transmission of electronic transmissions by third parties provided that the transmitting Party has taken all reasonable prudent precautions to protect the integrity of its electronic communication system. 

33.6    Reliance 

(a)    Any notice sent under this Clause 33 can be relied on by the recipient if the recipient reasonably believes the notice to be genuine and if it bears what appears to be the signature (original or facsimile) of an authorised signatory of the sender or, as applicable, if it is sent from an email address notified for this purpose pursuant to Clause 33.5 (Electronic communication) (in each case without the need for further enquiry or confirmation). 

(b)    Each Party must take reasonable care to ensure that no forged, false or unauthorised notices are sent to another Party. 

33.7    English language 

(a)    Any notice given under or in connection with any Finance Document must be in English. 

(b)    All other documents provided under or in connection with any Finance Document must be: 

(i)    in English; or 

(ii)    if not in English, and if so required by the Agent, accompanied by a certified English translation and, in this case, the English translation will prevail unless the document is a constitutional, statutory or other official document. 

	 
	 	-93-	 
	

	 

 

34.    Calculations and certificates 

34.1    Accounts 

In any litigation or arbitration proceedings arising out of or in connection with a Finance Document, the entries made in the accounts maintained by a Finance Party are prima facie evidence of the matters to which they relate. 

34.2    Certificates and Determinations 

Any certification or determination by a Finance Party of a rate or amount under any Finance Document is, in the absence of manifest error, conclusive evidence of the matters to which it relates. 

34.3    Day count convention 

Any interest, commission or fee accruing under a Finance Document will accrue from day to day and, in relation to Facility A, is calculated on the basis of the actual number of days elapsed and a year of 360 days and, in relation to Facility B, on the basis of the actual number of days elapsed and on year of 365 days or, in any case where the practice in the Relevant Interbank Market differs, in accordance with that market practice. 

35.    Partial invalidity 

If, at any time, any provision of the Finance Documents is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions nor the legality, validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired. 

36.    Remedies and waivers 

No failure to exercise, nor any delay in exercising, on the part of any Finance Party, any right or remedy under the Finance Documents shall operate as a waiver, nor shall any single or partial exercise of any right or remedy prevent any further or other exercise or the exercise of any other right or remedy. The rights and remedies provided in this Agreement are cumulative and not exclusive of any rights or remedies provided by law. 

37.    Amendments and waivers 

37.1    Required consents 

(a)    Subject to Clause 37.2 (Exceptions) any term of the Finance Documents may be amended or waived only with the consent of the Majority Lenders and the Obligors and any such amendment or waiver will be binding on all Parties. 

(b)    The Agent may effect, on behalf of any Finance Party, any amendment or waiver permitted by this Clause. 

37.2    Exceptions 

(a)    An amendment or waiver that has the effect of changing or which relates to: 

(i)    the definition of "Majority Lenders", "Majority Facility A Lenders" or "Majority Facility B Lenders" in Clause 1.1 (Definitions); 

	 
	 	-94-	 
	

	 

 

(ii)    an extension to the date of payment of any amount under the Finance Documents; 

(iii)    a reduction in the Margin or a reduction in the amount of any payment of principal, interest, fees or commission payable; 

(iv)    an increase in or an extension of any Commitment; 

(v)    a change to the Borrower or Guarantors other than in accordance with Clause 26 (Changes to the Obligors); 

(vi)    any provision which expressly requires the consent of all the Lenders; or 

(vii)    Clause 2.2 (Finance Parties' rights and obligations), Clause 25 (Changes to the Lenders), Clause 29 (Sharing among the Finance Parties), or this Clause 37, 

shall not be made without the prior consent of all the Lenders. 

(b)    An amendment or waiver which relates to the rights or obligations of the Agent or the Arranger may not be effected without the consent of the Agent or the Arranger. 

(c)    Except where the consent of all Lenders is required by any Finance Document, an amendment or waiver which relates solely to the rights or obligations of the Facility A Lenders shall not be effective without the consent of the Majority Facility A Lenders and shall not require the consent of any Facility B Lender. 

(d)    Except where the consent of all Lenders is required by any Finance Document, an amendment or waiver which relates solely to the rights and obligations of the Facility B Lenders shall not be effective without the consent of the Majority Facility B Lenders and shall not require the consent of any Facility A Lender. 

38.    Counterparts 

Each Finance Document may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of the Finance Document. 

	 
	 	-95-	 
	

	 

SECTION 12 

GOVERNING LAW AND ENFORCEMENT 

39.    Governing law 

This Agreement is governed by English law. 

40.    Enforcement 

40.1    Jurisdiction 

(a)    The courts of England have exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement (including a dispute regarding the existence, validity or termination of this Agreement) (a "Dispute"). 

(b)    The Parties agree that the courts of England are the most appropriate and convenient courts to settle Disputes and accordingly no Party will argue to the contrary. 

(c)    This Clause 40.1 is for the benefit of the Finance Parties only. As a result, no Finance Party shall be prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction. To the extent allowed by law, the Finance Parties may take concurrent proceedings in any number of jurisdictions. 

40.2    Service of process 

Without prejudice to any other mode of service allowed under any relevant law, each Obligor (other than an Obligor incorporated in England and Wales): 

(a)    irrevocably appoints the offices of Bryan Cave at 33 Cannon Street, London, EC4M 5TE, England as its agent for service of process in relation to any proceedings before the English courts in connection with any Finance Document; and 

(b)    agrees that failure by a process agent to notify the relevant Obligor of the process will not invalidate the proceedings concerned. 

40.3    Waiver of consequential damages etc. 

(a)    Each Obligor irrevocably agrees that, in connection with the Finance Documents and the transactions contemplated thereby, no Finance Party nor any of their respective Affiliates, officers, employees or agents shall be liable to the Borrower (except to the extent of its own gross negligence or wilful misconduct) nor liable, on any theory of liability, for any special, indirect, consequential or punitive damages and the Borrower agrees not to sue upon any such claim for any such damages, whether or not accrued and whether or not known or suspected to exist in its favour. 

(b)    Any third party referred to in paragraph (a) above may enjoy the benefit of or enforce the terms of that paragraph in accordance with the provisions of the Third Parties Act. 

This Agreement has been entered into on the date stated at the beginning of this Agreement. 

 

	 
	 	-96-	 
	

	 

 

SCHEDULE 1
The Original Lenders

	
Name of Original Lender 
	
Facility A Commitment 
	
Facility B Commitment 

	 	 	 
	
Standard Chartered Bank 
	
US$18,500,000 
	
S$33,000,000 

	 	 	 
	
Citibank, N.A., Singapore Branch 
	
US$10,000,000 
	
S$18,000,000 

	 	 	 
	
DBS Bank Ltd. 
	
US$10,000,000 
	
S$17,000,000 

	 	 	 
	
Bank of China, Singapore Branch 
	
US$8,250,000 
	
S$14,500,000 

	 	 	 
	
Credit Lyonnais, Singapore Branch 
	
US$8,250,000 
	
S$14,500,000 

	 	 	 
	
Norddeutsche Landesbank Girozentrale, Singapore Branch 
	
US$8,250,000 
	
S$14,500,000 

	 	 	 
	
Oversea-Chinese Banking Corporation Limited 
	
US$8,250,000 
	
S$14,500,000 

	 	 	 
	
SANPAOLO IMI S.p.A., Singapore Branch 
	
US$8,250,000 
	
S$14,500,000 

	 	 	 
	
Sumitomo Mitsui Banking Corporation, Singapore Branch 
	
US$8,250,000 
	
S$14,500,000 

	 	 	 
	
The Bank of Tokyo-Mitsubishi, Ltd., Singapore Branch 
	
US$8,250,000 
	
S$14,500,000 

	 	 	 
	
United Overseas Bank Limited 
	
US$8,250,000 
	
S$14,500,000 

	 	 	 
	
The Bank of Nova Scotia Asia Limited 
	
US$7,500,000 
	
S$13,000,000 

	 	 	 
	
Bank of America, N.A. 
	
US$5,000,000 
	
S$9,000,000 

	 	 	 
	
Mizuho Corporate Bank, Ltd., Singapore Branch 
	
US$5,000,000 
	
S$9,000,000 

	 	 	 
	
Westpac Banking Corporation 
	
US$3,000,000 
	
S$5,000,000 

	 	 	 
	
Total 
	
US$125,000,000 
	
S$220,000,000 

	
    

	 	- 97 - 	 
	

	 

SCHEDULE 2
Conditions precedent

1.   Obligors

 

(a)   A copy of the constitutional documents of each Obligor.

 

(b)   A copy of a resolution of the board of directors of each Obligor: 

 

(i)    approving the terms of, and the transactions contemplated by, the Finance Documents to which it is a party and resolving that it execute the Finance Documents to which it is a party and, in the case of each Guarantor, giving reasons for such execution, to the effect that is in the best interests of that Guarantor;

 

(ii)   authorising a specified person or persons to execute the Finance Documents to which it is a party on its behalf; and

 

(iii)  authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices (including, if relevant, any Utilisation Request and Selection Notice) to be signed and/or despatched by it under or in connection with the Finance Documents to which it is a party.

 

(c)   A specimen of the signature of each person authorised by the resolution referred to in paragraph (b) above. 

 

(d)  A copy of a resolution signed by all the holders of the issued shares in (i) Sonca Products and (ii) the Borrower approving the terms of, and the transactions contemplated by, the Finance Documents to which Sonca Products or the Borrower, as the case may be, is a party. 

 

(e)  A certificate of a director or the secretary of the relevant Obligor confirming that: 

 

(i)    borrowing or guaranteeing, as appropriate, the Total Commitments would not cause any borrowing, guaranteeing or similar limit binding on that Obligor to be exceeded; and

 

(ii)   each copy document relating to it specified in this Schedule 2 is correct, complete and in full force and effect as at a date no earlier than the date of this Agreement. 

 

(f)   A certification of good standing relating to Energizer Holdings. 

 

2.  Legal opinions

 

(a)  A legal opinion of Linklaters Allen & Gledhill, legal advisers to the Arranger and the Agent in England and Wales, substantially in the form distributed to the Original Lenders prior to signing this Agreement. 

 

(b)  A legal opinion of Linklaters, legal advisers to the Arranger and the Agent in Hong Kong, substantially in the form distributed to the Original Lenders prior to signing this Agreement. 

 

(c)  A legal opinion of Allen & Gledhill, legal advisers to the Arranger and the Agent in Singapore, substantially in the form distributed to the Original Lenders prior to signing this Agreement.

 

(d)  A legal opinion of Bryan Cave, legal advisers to the Borrower and the Guarantors in Missouri, substantially in the form distributed to the Original Lenders prior to signing this Agreement. 

	
    

	 	- 98 - 	 
	

	 

(e)  A legal opinion of Colin Ng & Partners, legal advisers to the Borrower and Energizer Singapore in Singapore, substantially in the form distributed to the Original Lenders prior to signing this Agreement. 

 

3.    Other documents and evidence

 

(a)   Evidence that any process agent referred to in Clause 40.2 ( Service of process ) has accepted its appointment.

 

(b)  A copy of any other Authorisation or other document, opinion or assurance which the Agent considers to be necessary or desirable (if it has notified the Borrower accordingly) in connection with the entry into and performance of the transactions contemplated by any Finance Document or for the validity and enforceability of any Finance Document.

 

(c)   The Original Financial Statements.

 

(d)   Evidence that the fees, costs and expenses then due from the Borrower pursuant to Clause 11 ( Fees ) and Clause 16 ( Costs and expenses ) have been paid or will be paid by the first Utilisation Date. 

 

(e)   A list of Material Subsidiaries as at the date of this Agreement.

 

(f)    A list of Subsidiaries of Energizer Holdings that are guarantors of its obligations under the US Facility. 

 

(g)   A copy of the Section 76A(6) Certificate issued by Energizer Singapore and addressed to the Agent, pursuant to Section 76A(6) of the Companies Act. 

	
    

	 	- 99 - 	 
	

	 

SCHEDULE 3
Requests

PART I
Utilisation Request

From:  Energizer Asia Investments Pte Ltd

 

To:    Citicorp Investment Bank (Singapore) Limited

 

Dated:

    

Dear Sirs 

Energizer Asia Investments Pte Ltd - US$125,000,000 and S$220,000,000 Facility Agreement
dated 25 July 2003 (the "Agreement")

1.   We refer to the Agreement. This is a Utilisation Request. Terms defined in the Agreement have the same meaning in this Utilisation Request unless given a different meaning in this Utilisation Request. 

 

2.   We wish to borrow a Loan on the following terms:

 

 

	Proposed Utilisation Date: 	[__________] (or, if that is not a Business Day, the next Business Day) 
	 	 
	Facility to be utilised:   	[Facility A]/[Facility B] * 
	 	 
	Currency of Loan: 	[US Dollars/Singapore Dollars]*  
	 	 
	Amount: 	[__________]  or, if less, the Available Facility  
	 	 
	Interest Period:   	[__________]  

 

3.    We confirm that each condition specified in Clause 4.2 ( Further conditions precedent ) is satisfied on the date of this Utilisation Request.

4.    The proceeds of this Loan should be credited to: 

 

	[For US$ payments 	 	
 :
	 	 
	 	 	
 
	 	 
	For Account of	 	
 :
	 	Bank of America, N.A., Singapore
	 	 	
 
	 	 
	Account No.	 	
  :
	 	57163 027
	 	 	
 
	 	 
	SWIFT Code 	 	
 :
	 	BOFASG2X 
	 	 	
 
	 	 
	Favouring 	 	
 :
	 	ENERGIZER ASIA INVESTMENTS PTE LTD]* 
	 	 	
 
	 	 
	[For S$ payments	 	
 :
	 	 
	 	 	
 
	 	 
	For Account of 	 	
 :
	 	Bank of America, N.A., Singapore
	 	 	
 
	 	 
	Account No. 	 	
: 
	 	57163 019 
	 	 	
 
	 	 
	SWIFT Code 	 	
: 
	 	BOFASG2X 
	 	 	
 
	 	 
	Favouring 	 	
 :
	 	ENERGIZER ASIA INVESTMENTS PTE LTD]* 

 

*    Delete as appropriate. 

	 
	 	- 100 - 	 
	

	 

5.    This Utilisation Request is irrevocable. 

Yours faithfully 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

authorised signatory for
Energizer Asia Investments Pte Ltd

 

	
    

	 	 - 101 -	 
	

	 

PART II
Selection Notice
Applicable to a Facility A Loan

From:  Energizer Asia Investments Pte Ltd

 

To:    Citicorp Investment Bank (Singapore) Limited 

 

Dated:

 

Dear Sirs

 

Energizer Asia Investments Pte Ltd - US$125,000,000 and S$220,000,000 Facility Agreement
dated 25 July 2003 (the "Agreement")

1.   We refer to the Agreement. This is a Selection Notice. Terms defined in the Agreement have the same meaning in this Selection Notice unless given a different meaning in this Selection Notice.

 

2.   We refer to the following Facility A Loan[s] in US Dollars with an Interest Period ending on [__________]. *
 

3.   We request that the next Interest Period for the above Facility A Loan[s] is [__________]. 

 

4.   This Selection Notice is irrevocable. 

Yours faithfully 

 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

authorised signatory for
Energizer Asia Investments Pte Ltd

 

*    Insert details of all Facility A Loans which have an Interest Period ending on the same date.

 

	
    

	 	 - 102 -	 
	

	 

SCHEDULE 4
Form of Transfer Certificate

To:  Citicorp Investment Bank (Singapore) Limited as Agent

 

From:  [The Existing Lender] (the " Existing Lender ") and [The New Lender] (the " New Lender ")

 

Dated:

 

Energizer Asia Investments Pte Ltd - US$125,000,000 and S$220,000,000 Facility Agreement
dated 25 July 2003 (the "Agreement")

1.     We refer to the Agreement. This is a Transfer Certificate. Terms defined in the Agreement have the same meaning in this Transfer Certificate unless given a different meaning in this Transfer Certificate.

 

2.    We refer to Clause 25.5 ( Procedure for transfer ):

 

(a)  The Existing Lender and the New Lender agree to the Existing Lender transferring to the New Lender by novation all or part of the Existing Lender's Commitment, rights and obligations referred to in the Schedule in accordance with Clause 25.5 ( Procedure for transfer ). 

 

(b)  The proposed Transfer Date is [__________].

 

(c)  The Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of Clause 33.2 ( Addresses ) are set out in the Schedule.

 

3.    The New Lender expressly acknowledges the limitations on the Existing Lender's obligations set out in paragraph (c) of Clause 25.4 ( Limitation of responsibility of Existing Lenders ).

 

This Transfer Certificate may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Transfer Certificate.

 

This Transfer Certificate is governed by English law. 

THE SCHEDULE

 

Commitment/rights and obligations to be transferred 

	
Available Commitment

Transferred 
	
Participation in Loans

Transferred 
	
Next Interest Payment Date 

	
Facility A : US$[?] 
	
Facility A : US$[?] 
	
Facility A : [?] 

	
Facility B : S$[?] 
	
Facility B : S$[?] 
	
Facility B : [?] 

	
    

	 	- 103 - 	 
	

	 

Administration Details: 

	
 
	
US$ 
	
S$ 

	
New Lender's Standing Payment Instructions: 
	
[                                            ] 
	
[                                            ] 

	 	 	 
	
Facility Office address: 
	
[                                            ] 
	
[                                            ] 

	 	 	 
	
Telephone: 
	
[                                            ] 
	
[                                            ] 

	 	 	 
	
Fax: 
	
[                                            ] 
	
[                                            ] 

	 	 	 
	
Email Address: 
	
[                                            ]
	
[                                            ] 

	 	 	 
	
Attn/Ref: 
	
[                                            ] 
	
[                                            ] 

	
[Existing Lender]  
	
 
	
[New Lender]  

	
By:
	
 
	
By:

This Transfer Certificate is accepted by the Agent and the Transfer Date is confirmed as [ ]. 

Citicorp Investment Bank (Singapore) Limited 

By: 

	
    

	 	- 104 - 	 
	

	 

SCHEDULE 5
Form of Compliance Certificate

To:  Citicorp Investment Bank (Singapore) Limited as Agent

 

From:  Energizer Holdings, Inc. 

 

Dated:        [      ] 200[  ] 

 

Dear Sirs

 

Energizer Asia Investments Pte Ltd - US$125,000,000 and S$220,000,000 Facility Agreement
dated 25 July 2003 (the " Agreement")

1.    We refer to the Agreement. This is a Compliance Certificate. Terms defined in the Agreement have the same meaning when used in this Compliance Certificate unless given a different meaning in this Compliance Certificate.

 

2.    We confirm that on the last day of the financial quarter ending on [__________] 200[  ]:

 

(a)  the Leverage Ratio was [__________ ] to 1.00 and has not at any time during such financial quarter exceeded 3.50:1.00; and

 

(b)  the Interest Expense Coverage Ratio was [__________ ] to 1.00 (being greater than 3.00 to 1.00); [and

 

(c)  the aggregate of the outstanding principal amounts of and/or the outstanding liabilities under any loan, credit or financial accommodation made or provided and any guarantee, indemnity, bond or letter of credit given or issued in accordance with Clause 23.4 ( Loans and guarantees ) was US$[__________] (or its equivalent).] 

 

3.    [We confirm that the Repeating Representations are true in all material respects and no Default is continuing.] * 

 

 

 
 

	Signed: 	 	. . . . . . . . . . . . . . . . . 	 	. . . . . . . . . . . . . . . . . 
	 	 	Officer of 	 	Officer of 
	 	 	Energizer Holdings, Inc. 	 	Energizer Holdings, Inc. 

 

 

[ [insert applicable certification language] 

. . . . . . . . . . . . . . . . . . . . . . . . .

for and on behalf of
[name of auditors of the Borrower]

*    If this statement cannot be made, the certificate should identify any Default that is continuing and the steps, if any, being taken to remedy it.

	
    

	 	 - 105 -	 
	

	 

SCHEDULE 6
Existing Security, Contingent Obligations and Investments

PART I
Existing Liens

	
Name of member of Group 
	
Security 
	
Total Principal Amount of Indebtedness Secured 

	
Liens securing immaterial and de minimis Indebtedness. 

PART II
Existing Investments

	
Name of member of Group 
	
Investment 
	
Amount of Investment 

	
Energizer International, Inc. 
	
Energizer LLC (Russia) 
	
(5%) 

	
 
	
Eveready Batteries Kenya Ltd. (Kenya) 
	
(14%) 

	
Eveready Battery Company, Inc. 
	
Eveready de Colombia, S.A. (Colombia) 
	
(10%) 

	
EBC (India) Co. Ltd. 
	
Eveready Energizer Miniatures Limited 
	
(49%) (joint venture)*  

	
Energizer Hong Kong Limited 
	
Eveready Hong Kong Company (Hong Kong) 
	
(50%) (joint venture) 

	
Energizer France 
	
FIBAT SA (France) 
	
(20%) ** (dormant) 

	
MKTE, Inc. 
	
Two intercompany notes from Eveready Battery Company, Inc. 
	
(1) $27,100,145.30 and (2) $312,693,584.31 

	
Partnership of Sonca Products Limited &

Energizer Hong Kong Limited 
	
Eveready Hong Kong Company (Hong Kong) 
	
 

	
Energizer Czech spol. s r.o. 
	
Ecobat s r.o (Czech Republic) 
	
(33-1/3%) ** 

	
Energizer Polska sp. zo.o. 
	
Reba Organizoja Odzysku S.A. (Poland) 
	
(25%) ** 

	
Energizer SA (Switzerland) 
	
Ecopilhas Lda. (Portugal) 
	
(20%) ** 

	
Other immaterial Investments. Investments in subsidiaries disclosed on Schedule 18.18 
	
 
	
 

 

*    in liquidation

**  non-profit 

	
    

	 	- 106 - 	 
	

	 

PART III
Existing Contingent Obligations

	
Name of member of Group 
	
Contingent Obligations 
	
Amount of Contingent Obligations 

	
Guaranties of immaterial and de minimis obligations arising in the ordinary course of business and not related to the borrowing of money. 

PART IV
Transactions with shareholders and Affiliates

	
Name of member of Group 
	
Description of transaction with shareholder and/or Affiliate 

	
None. 
	
 

	
    

	 	- 107 - 	 
	

	 

SCHEDULE 7
Timetables

"D - " refers to the number of Business Days before the relevant Utilisation Date/the first day of the relevant Interest Period.

 

	
 
	
Loans in US Dollars 
	
Loans in Singapore Dollars 

	
Delivery of a duly completed Utilisation Request (Clause 5.1 ( Delivery of a Utilisation Request )) or a Selection Notice (Clause 9.1 ( Selection of Interest Periods )) 
	
D - 3 10:00 a.m. 
	
D - 3 10:00 a.m. 

	
Agent notifies the Lenders of the Loan in accordance with Clause 5.4 ( Lenders' participation ) 
	
D - 3 Noon 
	
D - 3 Noon 

	
SIBOR or SOR is fixed (in accordance with the definitions in Clause 1.1 ( Definitions )) 
	
Quotation Day as of 11:00 a.m. 
	
Quotation Day as of 11:00 a.m. 

	
    

	 	- 108 - 	 
	

	 

SCHEDULE 8
Litigation

The following table sets forth various litigation matters: 

 

	
NAME OF CASE 
	
MATTER TYPE 
	
DESCRIPTION OF CASE 

	
Abiney, et al. v. EBC Dorcy International, Inc. 
	
Product Liability 
	
Plaintiff alleges personal injuries on March 12, 1998 from leaking batteries in a small portable lantern. 

	
Border, et al. v. EBC, Johnson Controls, et al 
	
Product Liability 
	
Plaintiff alleges personal injuries on February 2, 1996 from leaking car battery. We are being indemnified by Johnson Controls. 

	
Comins v. Rival, EBC, Johnson Controls 
	
Product Liability 
	
Plaintiff alleges personal injuries on December 16, 1996 from leaking batteries in a mini-vac. 

	
EBC v. A. Rajab & A. Silsilah 
	
Breach of Contract 
	
Breach of contract suit relating to distribution agreement. 

	
Lindsey, et al. v. Gelco, et al 
	
Personal Injuries 
	
Plaintiff alleges personal injuries on August 16, 1997 in an automobile accident. 

	
Long v. EBC, et al 
	
Product Liability 
	
Plaintiff alleges personal injuries on May 8, 1996 from leaking batteries in a portable television set. 

	
Nationwide Ins. Co., et al. v. Tabler, et al. v. EBC 
	
Insurance 
	
Subrogation suit relating to an August 28, 1998 incident when chemical fallout damaged vehicle. 

	
Phillips v. EBC 
	
Personal Injury 
	
Plaintiff alleges personal injuries on March 17, 1999, from leaking 9V batteries in an illuminated bow tie 

	
Popa v. EBC 
	
Personal Injury 
	
Plaintiff alleges personal injuries during 1935 – 1943 when he developed mesophelioma. Case has been dormant since 1998. 

	
Rossi v. EBC 
	
Product Liability 
	
Plaintiff alleges personal injuries on January 26, 1996 when batteries leaked. 

	
Armstrong v. EBC 
	
Product Liability 
	
Alleged personal injury from leakage and rupture of batteries in diving light January 6, 2000 

	
Ahmad, by GAL v. EBC 
	
Product Liability 
	
Alleged injuries from defective batteries on January 9, 2000 

 

	
    

	 	- 109 - 	 
	

	 

	NAME OF CASE 	MATTER TYPE 	DESCRIPTION OF CASE 
	
Abdo v. Target, EBC 
	
Product Liability 
	
Battery leakage from a GTX Radio purchased @ Target caused alleged injuries on March 23, 2000 

	
Bozorth, et al v. EBC, Wal-Mart 
	
Product Liability 
	
Batteries purchased at Wal-Mart leaked causing alleged injury to lap on December 4, 2000 

	
Bratcher v. EBC 
	
Product Liability 
	
Battery leakage onto lap causing alleged injuries on October 16, 1999 

	
Cama v. EBC 
	
Product Liability 
	
Alleged personal injury from leakage from battery in radio on February 11, 1999 

	
Hechinger Investment v. EBC 
	
Bankruptcy 
	
Complaint to avoid & recover preferential transfers in bankruptcy on September 6, 2001 

	
Kremmel v. Energizer Battery 
	
Product Liability 
	
Alleged personal injury from leakage from batteries in TV on January 2, 2001 

	
Parker v. EBC 
	
Product Liability 
	
Alleged personal injury from batteries while opening package on June 30, 2001 

	
Poppish v. RPCo, EBC, et al 
	
Product Liability 
	
Alleged personal injury from leakage from batteries in TV on November 2, 1999 

	
Rainer Pacific Management v. EBC 
	
Product Liability 
	
Alleged strip mall fire from battery charger 

	
Scata, Nunzio v. EBC, et al 
	
Product Liability 
	
Alleged personal injury and proposed damage from leakage from batteries in package on December 14, 1999 

	
Schlenther v. EBC 
	
Personal Injury 
	
Plaintiff alleges personal injuries on 7/16/99 when AA batteries leaked from Motorola pager onto his skin. 

	
Service Merchandise v. EBC 
	
Bankruptcy 
	
Recovery of preferential transfers in bankruptcy action August 22, 2001 

	
Sterling, Jerry, et al v. EBC 
	
Product Liability 
	
Alleged personal injury from leakage from lantern battery still in package on January 20, 2002 

	
Sturiale v. EBC 
	
Product Liability 
	
Alleged personal injury from leakage from batteries in flashlight on February 1, 2002 

	
Torbush v. EBC 
	
Personal Injury 
	
Plaintiff alleges personal injuries on 12/24/98 when batteries leaked from remote control and injured eye. 

 

	
    

	 	- 110 - 	 
	

	 

	NAME OF CASE 	MATTER TYPE 	DESCRIPTION OF CASE 
	
Testa v. EBC 
	
Personal Injury 
	
Plaintiff alleges personal injuries on 2/2/98 from batteries, which leaked from reading light onto hands. Device and batteries destroyed, do not know if in fact our product. 

	
Washington v. EBC 
	
Product Liability 
	
Alleged personal injury from battery leakage on April 24, 2000 

	
Australia 
	
 
	
 

	
Linda Mrocki 
	
Product Liability 
	
10-12cm cut to the Plaintiff's right lower leg allegedly caused by a faulty Schick EXII razor. Claim threatened but not filed. Incident date: September 4, 2001 

	
Austria 
	
 
	
 

	
Wilkinson Sword GmbH (Austria) 
	
 
	
Outstanding claim of WS Austria against Vassileva GmbH. 

	
Brazil 
	
 
	
 

	
Miguel Alves Pereira 
	
Employment 
	
Labor Claim related to cancelled employment agreement. Incident date: November 23, 1992. 

	
China 
	
 
	
 

	
State Administration of Taxation 
	
Tax 
	
Investigation of Warner-Lambert (Guangzhou) Limited's tax records; however, the State Administration of Taxation did not follow up with another investigation. 

	
Germany 
	
 
	
 

	
Ferrero OHG mbH 
	
Trademark 
	
Regional Court ruled for Wilkinson Sword GmbH on June 14, 2001 prohibiting Wilkinson Sword GmbH from using the "DUPLO" trademark. 

	
Accuracy Surgical Ltd. 
	
Breach of Contract and Trademark 
	
Dispute regarding (1) obligation of Wilkinson Sword GmbH to accept products of Accuracy Surgical Ltd. and (2) right of Accuracy Surgical Ltd. to sell products with a Wilkinson Sword logo in Asia. Lawsuit pending at the High Court of Sindh at Karachi, Pakistan since 1994. 

 

	
    

	 	- 111 - 	 
	

	 

	NAME OF CASE 	MATTER TYPE 	DESCRIPTION OF CASE 
	
Wilhelm Drache KG GmbH & Co ("Drache") 
	
Real Estate 
	
Drache claims the violation of public building law due to an exhaust installation erected by Wilkinson Sword GmbH near the border to Drache's neighboring real estate. No lawsuit filed. 

	
Hong Kong 
	
 
	
 

	
Hong Kong Inland Revenue Department 
	
Tax 
	
Queries in connection with certain transactions involving Warner-Lambert Trading Company Limited and affiliates and subsidiaries during the years of assessment of 1997/1998 and 1999/2000 respectively, and with Warner-Lambert Trading Company Limited's organization and operations during the years of assessment of 2000/2001 and 2001/2002 respectively. 

	
Italy 
	
 
	
 

	
Cingolani 
	
Stock Options 
	
Former Marketing Manager for Wilkinson claiming payment as a consequence of the sale of stock options. Incident date: June 6, 2002 

	
Netherlands 
	
 
	
 

	
General Inspection Service (Algemene Inspectiediens, AID) 
	
Conviction payment of Euro 375 and recall of product 
	
Alleged use of hair of a protected species (for shaving brushes) under the Netherlands Nature Protection Act 

	
    

	 	- 112 - 	 
	

	

SCHEDULE 9

Subsidiaries

(Subsidiaries are effectively 100% wholly owned unless otherwise indicated.) 

*   In liquidation
** Non-profit

	
 
	
Subsidiary Name 
	
Jurisdictions of 

Incorporation 
	
Foreign Qualification 
	
Shares Authorized and Issued and

Outstanding; Owner 
	
Interests in any Person not a Corporation 

	
 
	
Berec Overseas Investments Limited 
	
UK 
	
 
	
Authorized: 100 

Issued: 100 

Energizer Holdings UK Company 
	
 

	
 
	
EBC Batteries, Inc. 
	
Delaware 
	
India 
	
Authorized: 1,000 

Issued: 1,000 

Energizer International, Inc. 
	
 

	
 
	
EBC Uruguay S.A. 
	
Uruguay 
	
 
	
Authorized: 1,400,000 

Issued: 350,000 

Energizer International, Inc. 
	
 

	
 
	
Energizer Asia Pacific, Inc. 
	
Delaware 
	
Hong Kong 
	
Authorized: 1,000 

Issued: 1,000 

Energizer International, Inc. 
	
 

	
 
	
Energizer Australia Pty. Ltd. 
	
Australia 
	
 
	
Authorized: 200,000,000 

Issued: 6,000,000 

Energizer International, Inc. 
	
 

 

	
    

	 	- 113 - 	 
	

	 

	 	
Subsidiary Name  
	
Jurisdictions of 

Incorporation 
	
Foreign Qualification 
	
Shares Authorized and Issued and

Outstanding; Owner 
	
Interests in any Person not a Corporation 

	
 
	
Energizer Canada Inc. 
	
Canada 
	
 
	
Common Stock 

Authorized: unlimited 

Issued: 28,500,100 

Energizer International, Inc. (38%) 

10,961,576 

Energizer Holdings, Inc. (62%) 

17,538,524 
	
 

	
 
	
Energizer (China) Co., Ltd. 
	
China 
	
 
	
$41,000,000 paid in capital 

Energizer International, Inc. 
	
 

	
 
	
Energizer Hellas A.E. 
	
Greece 
	
 
	
Authorized: 100,100 

Issued: 100,100 

Energizer International, Inc. (99.9%)100,087 

Eveready Battery Company, Inc.: 13 shares 
	
 

	
 
	
Energizer Hong Kong Limited 
	
Hong Kong 
	
 
	
Authorized: 400,000 

Issued: 400,000 

Energizer International, Inc. 
	
 

	
 
	
Energizer Hungary Trading Ltd. 
	
Hungary 
	
 
	
Authorized: 37,457,000 HUF 

Issued: 37,457,000 HUF 

Energizer International, Inc. 
	
 

	
 
	
EBC (India) Co. Private Limited 
	
India 
	
 
	
Authorized: 35,000,000 

Issued: 32,776,589 (94%) Energizer International, Inc. 

Energizer Singapore Pte. Ltd.: 

1 share 
	
 

 

	
    

	 	- 114 - 	 
	

	 

	 	Subsidiary Name 	
Jurisdictions of 

Incorporation  
	
Foreign Qualification 
	
Shares Authorized and Issued and

Outstanding; Owner 
	 
Interests in any Person not a Corporation 

	
 
	
Energizer India Private Limited 
	
India 
	
 
	
Authorized: 35,000,000 

Issued: 33,781,800 

EBC (India) Co. Ltd. 

1 share to Anil Gadi (nominee) 
	
joint venture 

	
 
	
Energizer Insurance Company Ltd. 
	
Bermuda 
	
 
	
Authorized: 120,000 

Issued: 120,000 

Eveready Battery Company, Inc. 
	
 

	
 
	
Energizer International, Inc.    

	
Delaware (holding company) 
	
 
	
Authorized: 1,000 

Issued: 1,000 

Eveready Battery Company, Inc. 
	
 

	
 
	
Energizer Italia, S.p.A. 
	
Italy 
	
 
	
Authorized: 250,000 

Issued: 250,000 

Energizer International, Inc. – 247,500 

Eveready Battery Company, Inc. – 2,500 
	
 

	
 
	
Energizer Japan, Inc. 

	
Delaware 
	
Japan 
	
Authorized: 5,000 

Issued: 10 

Energizer International, Inc. 
	
 

	
 
	
Energizer Korea, Ltd. 

	
Korea 
	
 
	
Authorized: 1,000,000 

Issued: 538,000 

Energizer International, Inc. 
	
 

	
 
	
Energizer Lanka Limited 
	
Sri Lanka 
	
 
	
Authorized: 20,000,000 

Issued: 15,120,000 

Energizer International, Inc. (60.6%) 9,172,000 

Local Partners (39.4%) 5,948,000 
	
 

 

	
    

	 	- 115 - 	 
	

	 

	 	Subsidiary Name 	
Jurisdictions of 

Incorporation 
	
Foreign Qualification 
	
Shares Authorized and Issued and

Outstanding; Owner 
	
Interests in any Person not a Corporation 

	
 
	
Energizer LLC 

 

	
Russia 
	
 
	
Capital: $US 2,350,000 

Energizer International, Inc. (5%) 

Energizer Holdings, Inc. (95%) 
	
 

	
 
	
Energizer Limited        

	
United Kingdom 
	
 
	
Authorized: 20,000,000 

Issued: 16,280,000 

Energizer Holdings UK Company 
	
 

	
 
	
Energizer Malaysia Sdn. Bhd. 

	
Malaysia 
	
 
	
Authorized: 10,000,000 

Issued: 7,920,000 

Energizer International, Inc. (80%) 6,336,000 

Local Shareholders 

(20%) 1,584,000 
	
 

	
 
	
Energizer Middle East and Africa Limited 
	
Delaware 
	
UAE 

Lebanon 

Ivory Coast 

Ethiopia 
	
Authorized: 1,000 

Issued: 850 

Energizer International, Inc. 
	
 

	
 
	
Energizer Philippines, Inc. 

	
Philippines 
	
 
	
Authorized: 550,000 

Issued: 550,000 

Energizer International, Inc. 
	
 

 

	
    

	 	- 116 - 	 
	

	 

	 	Subsidiary Name 	
Jurisdictions of 

Incorporation  
	
Foreign Qualification 
	
Shares Authorized and Issued and

Outstanding; Owner 
	
Interests in any Person not a Corporation 

	
 
	
Energizer Polska Spolka zo.o 
	
Poland 
	
 
	
Authorized: 345,253 

Issued: 345,253 

Energizer International, Inc. 
	
 

	
 
	
Energizer Puerto Rico, Inc. 

	
Puerto Rico 
	
 
	
Authorized: 10,000 

Issued: 10 

Energizer International, Inc. 
	
 

	
 
	
Energizer SA 

	
Switzerland    
	
 
	
Authorized: 14,000 

Issued: 14,000 

Energizer International, Inc. 
	
 

	
 
	
Energizer Sales Limited 

	
Barbados 
	
 
	
Authorized: unlimited 

Issued: 1,000 

Eveready Battery Co., Inc. 
	
 

	
 
	
Energizer Slovakia, Spol. s r.o.            
	
Slovak Republic 
	
 
	
Authorized: 35,079,000 Skk 

Issued: 1 

Energizer International, Inc. 
	
 

	
 
	
Energizer (South Africa) Ltd.            
	
Delaware 
	
South Africa 
	
Authorized: 1,000 

Issued: 1,000 

Energizer International, Inc. 
	
 

	
 
	
Energizer (Thailand) Limited 

	
Thailand 
	
 
	
Authorized: 640,000 

Issued: 640,000 

Energizer International, Inc. 
	
 

	
 
	
Energizer Holdings UK Company            
	
UK    
	
 
	
Authorized: 25,000,000 

Issued: 13,835,000 

Energizer Investments U.K. Limited 
	
 

 

	
    

	 	 - 117 -	 
	

	 

	 	Subsidiary Name 	
Jurisdictions of 

Incorporation 
	
Foreign Qualification 
	
Shares Authorized and Issued and

Outstanding; Owner 
	
Interests in any Person not a Corporation 

	
 
	
Energizer Ireland Limited 

	
Ireland    
	
 
	
Common Stock 

Authorized: 640,000 

Issued: 480,000 

Berec Overseas Investments Ltd. (99.9%) 479,600 

Energizer Financial Services Centre Limited (0.1%) 400 

Preferred Stock 

Authorized: 20,000 

Issued: 20,000 

Berec Overseas Investments Ltd. (99%) 19,818 
	
 

	
 
	
Ever Ready Limited            
	
UK 
	
 
	
Authorized: 100 

Issued: 2 

Energizer Holdings UK Co. 
	
 

	
 
	
Eveready Batteries Kenya Ltd. 

 
	
Kenya 
	
 
	
Authorized: 210,000 

Issued: 210,000 

Energizer International, Inc. (14%) 29,390 
	
 

	
 
	
Eveready Battery Company, Inc. 
	
Delaware 
	
Qualified in all U.S. states 
	
Authorized: 1,000 

Issued: 1,000 

Energizer Holdings, Inc. 
	
 

	
 
	
Eveready de Chile S.A.    

	
Chile 
	
 
	
Authorized: 47,300 

Issued: 47,300 

Energizer Argentina S.A. (99%) 

46,827 shares 

(4 Individuals) 

473 Shares 
	
 

 

	
    

	 	- 118 - 	 
	

	 

	 	Subsidiary Name 	
Jurisdictions of 

Incorporation  
	
Foreign Qualification 
	
Shares Authorized and Issued and

Outstanding; Owner  
	
Interests in any Person not a Corporation 

	
 
	
Eveready de Colombia, S.A. 

	
Colombia 
	
 
	
Authorized: 500,000 

Issued: 67,802 

Energizer International, Inc. (90%) 61,002 

Eveready Battery Co. Inc. 

(10%) 6,800 
	
 

	
 
	
Eveready de Mexico S.A. de C.V. 
	
Mexico 
	
 
	
Authorized: 1,000 

Issued: 1,000 

Energizer International, Inc 
	
 

	
 
	
Eveready de Venezuela, C.A. 
	
Venezuela 
	
 
	
Authorized: 2,282,757 

Issued: 2,282,757 

Energizer International, Inc. 
	
 

	
 
	
Eveready Ecuador C.A.            
	
Ecuador    
	
 
	
Authorized: 996,186,111 

Issued: 996,186,111 

Energizer International, Inc. 
	
 

	
 
	
Energizer Egypt S.A.E.    
	
Egypt 
	
 
	
Authorized: 655,060 

Issued: 655,060 

Energizer International, Inc. (63.4%)    
	
 

	
* 
	
Eveready Energizer Miniatures Limited 

	
India 
	
 
	
Authorized: 1,000,000 

Issued: 490,000 

EBC (India) Co. Private Ltd. (49%) 240,100 
	
Joint Venture 

	
* 
	
Eveready Ghana Limited                 
	
Ghana 
	
 
	
Class A 

Authorized: 98,301,344 

Issued: 98,301,344 

Energizer International, Inc. (66%, holds 100% of Class A shares) 

Class B 

Authorized: 49,150,672 

Issued: 49,150,672 
	
 

 

	
    

	 	- 119 - 	 
	

	 

	 	Subsidiary Name	 Jurisdictions of 
Incorporation
	
 Foreign

Qualification
	
Shares Authorized and Issued and

Outstanding; Owner 
	
Interests in any Person not a Corporation 

	
 
	
Eveready Hong Kong Company        
	
Hong Kong    
	
 
	
50/50 Partnership between Sonca Products Limited & Energizer Hong Kong Limited 
	
 

	
 
	
Energizer NZ Limited    
	
New Zealand 
	
 
	
Authorized: 1,000,000 

Issued: 1,000,000 

Energizer International, Inc. 
	
 

	
 
	
Eveready NZ Limited                
	
New Zealand 
	
 
	
Authorized: 100 

Issued: 100 

Energizer NZ Ltd. 
	
 

	
 
	
Energizer Singapore Pte. Ltd.    
	
Singapore 
	
 
	
Authorized: 1,000,000 

Issued: 700,000 

Energizer Cayman Islands, Ltd. 
	
 

	
 
	
P.T. Energizer Indonesia        
	
Indonesia    
	
 
	
Authorized: 23,000 

Issued: 23,000 

Energizer International, Inc. (80%) P.T. Bintang Niagu Sukses (20%) (held in trust) (Energizer International, Inc. 100% beneficial owner)    
	
 

 

	 	- 120 - 	 
	

	 

	 	Subsidiary Name	
Jurisdictions of

Incorporation
	
Foreign Qualification
	
Shares Authorized and Issued and

Outstanding; Owner
	
Interests in any Person not a Corporation 

	
 
	
P.T. Energizer Trading Indonesia 

 

 
	
Indonesia 
	
 
	
Authorized: 1,000 

Issued: 1,000 

PT Energizer Indonesia (80%) 

P.T. Bintang Niagu Sukses (20%) 

(Energizer Indonesia 

100% owner) 
	
 

	
* 
	
Energizer Austria Ges.m.b.H.         
	
Austria    
	
 
	
Capital: 1,200,000 Austrian Schillings 

Energizer International, Inc.     
	
 

	
 
	
Energizer Belgium S.A.        
	
Belgium 
	
 
	
Authorized: 24,000 

Issued: 23,993 Energizer International, Inc. 

7 – Eveready Battery Co., Inc. 
	
 

	
 
	
Energizer Deutschland G.m.b.H.        
	
Germany 
	
 
	
Authorized: DM 18,700,000 

Issued: DM 18,700,000 

Energizer International, Inc. 

(99.9%) 18,698,000 

Energizer SA (0.1%) 2000 
	
 

	
 
	
Halde Zweiunddreißigste Verwaltungsgesellschaft mbH 
	
Germany 
	
 
	
Authorized: Euro 25,000 

Issued: Euro 25,000.00 – one share 

Halde Einunddreißigste Verwaltungsgesellschaft mbH 
	
 

	
 
	
Halde Einunddreißigste Verwaltungsgesellschaft mbH 
	
Germany 
	
 
	
Authorized: Euro 25,000 

Issued: Euro 25,000.00 – one share 

Energizer Deutschland GmbH 
	
 

 

	
    

	 	- 121 - 	 
	

	 

	 	 Subsidiary Name	
 Jurisdictions of

Incorporation
	
Foreign Qualification
	
Shares Authorized and Issued and

Outstanding; Owner
	
Interests in any Person not a Corporation 

	
 
	
Energizer Management Holding Verwaltungs GmbH 
	
Germany 
	
 
	
Authorized: Euro 25,000 

Issued: Euro 25,000 

Energizer International, Inc. 2 shares: Euro 500 and Euro 24,500 
	
 

	
 
	
Energizer Finanzierungs GbR 
	
Germany 
	
 
	
Contributions: $1,000,000 

Energizer Holdings, Inc.: $900,000 

Energizer Group, Inc.: $100,000 
	
Partnership 

	
 
	
Energizer France 

	
France 
	
 
	
Authorized: 1,750,450 shares 

Issued: 1,750,450 

Energizer International, Inc. (99.9%) 1,750,389 
	
 

	
 
	
Wilkinson Sword France SAS 
	
France 
	
 
	
Authorized: 796,060 shares at 10 euros each 

Issued: 7,960,000 Euro 

Halde Zweiunddreißigste Verwaltungsgesellschaft mbH 
	
 

	
 
	
Energizer Czech, spol. s.r.o.                
	
Czech Republic 
	
 
	
Authorized: 300,000,000 CZK 

Issued: 300,000,000 CZK 

Energizer International, Inc. 
	
 

	
 
	
Energizer Financial Service Centre Limited            
	
UK 
	
 
	
Authorized: 50,000 

Issued: 50,000 

Energizer Holdings UK Company 
	
 

	
 
	
Energizer Argentina S.A.             
	
Argentina 
	
 
	
Authorized: 17,479.163 

Issued: 17,479,163 

Energizer International, Inc. – 17,314,163 

Eveready Battery Co., Inc. – 165,000 
	
 

 

	 	- 122 - 	 
	

	 

	 	 Subsidiary Name	
Jurisdictions of 

Incorporation  
	
Foreign Qualification 
	
Shares Authorized and Issued and

Outstanding; Owner  
	
Interests in any Person not a Corporation 

	
* 
	
Energizer do Brasil Ltda.    
	
Brazil    
	
 
	
Authorized: 9,000,000 quotas 

Issued: 9,000,000 quotas 

Energizer International, Inc. 
	
 

	
 
	
MKTE, Inc.        
	
Delaware (holding company)    
	
 
	
Authorized: 1,000 

Issued: 1,000 

Eveready Battery Company, Inc. 
	
 

	
 
	
Energizer Trust Ltd.    

 
	
UK    
	
 
	
Authorized: 100 

Issued: 2 

Energizer Holdings UK Company        
	
 

	
 
	
Sonca Products Limited            
	
Hong Kong 
	
 
	
Authorized: 120,000 

Issued: 117,000 

Energizer International, Inc. 
	
 

	
* 
	
WER (MVL) (1998) Limited                
	
UK 
	
 
	
Authorized: 11,000,000 

Issued: 7,000,000 

Energizer Holdings UK Company 
	
 

 

	 	- 123 - 	 
	

	 

	
 
	
Subsidiary Name 
	
Jurisdictions of 

Incorporation 
	
Foreign Qualification 
	
Shares Authorized and Issued

and Outstanding; Owner 
	
Interests in any Person not a Corporation 

	
 
	
Energizer Receivables Funding Corporation        
	
Delaware 
	
Missouri 
	
Authorized: 1,000 

Issued: 100 

Energizer Battery, Inc. 
	
 

	
 
	
Schick & Energizer Perú S.A. 
	
Peru 
	
 
	
Authorized: 50 

Issued: 50 

Energizer International, Inc. 

(98%) 49 shares 

Eveready Ecuador C.A. 

(2%) 1 share 
	
 

	
 
	
Energizer 

Battery 

Manufacturing, Inc. 
	
Delaware 
	
Qualified in AK, GA, CA, PA, HI, TN, FL, MO, OH, VT, NC & TX 
	
Authorized: 100 

Issued: 100 

Eveready Battery Company, Inc.    
	
 

	
 
	
Energizer Battery, Inc. 

 
	
Delaware 
	
Qualified in all US states and DC 
	
Authorized: 100 

Issued: 100 

Eveready Battery Company, Inc. 
	
 

	
** 

+ 
	
FIBAT SA                    
	
France    
	
 
	
Authorized: 2,500 

Issued: 2,500 

Energizer France (20%) 
	
 

	
** 
	
Ecobat s.r.o 

	
Czech Republic    
	
 
	
Capitalization: CZK 300,000 

Energizer Czech Spol. sr.o.: CZK 100,000 (33-1/3%) 
	
 

	
** 
	
Ecopilhas Lda.         
	
Portugal    
	
 
	
Capitalization: 60,000 Euros 

Energizer SA (20%) 
	
 

 

	
    

	 	- 124 - 	 
	

	 

 

	
 
	
Subsidiary Name 
	
Jurisdictions of 

Incorporation 
	
Foreign Qualification 
	
Shares Authorized and Issued and

Outstanding; Owner 
	
Interests in any Person not a Corporation 

	
** 
	
Reba Organizacja Odzysku S.A.                     
	
Poland    
	
 
	
Authorized: 500,000 shares 

Issued: 500,000 shares 

Energizer Polska sp. zo.o (25%) 
	
 

	
 
	
Schick Manufacturing, Inc. 
	
Delaware 
	
Qualified in CT, IL & PA 
	
Authorized: 100 shares 

Issued: 100 shares 

Eveready Battery Company, Inc. 
	
 

	
 
	
Schick Taiwan Ltd. 

 
	
Delaware 
	
Qualified in Taiwan 
	
Authorized: 100 shares 

Issued: 100 shares 

Energizer International, Inc. 
	
 

	
 
	
Energizer Group, Inc. 

 
	
Delaware 
	
 
	
Authorized: 1,000 

Issued: 1,000 

Energizer Holdings, Inc. 
	
 

	
 
	
Energizer Cayman Islands, Ltd. 
	
Cayman Islands 
	
 
	
Authorized: 50,000 

Issued: 1,001 shares to 

Energizer International, Inc. 
	
 

	
 
	
Schick Cayman Islands, Ltd. 
	
Cayman Islands 
	
 
	
Authorized: 50,000 

Issued: 1 share to 

Energizer Cayman Islands, Ltd. 
	
 

	
 
	
Schick Japan K.K. 
	
Japan 
	
 
	
Authorized: 800 

Issued: 200 

Energizer International, Inc. 
	
 

	
 
	
Energizer Investments U.K. Limited 
	
United Kingdom 
	
 
	
Authorized: 2 

Issued: 2 shares to 

Energizer International, Inc. 
	
 

 

	
    

	 	- 125 - 	 
	

	 

	
 
	
Subsidiary Name 
	
Jurisdictions of 

Incorporation 
	
Foreign Qualification 
	
Shares Authorized and Issued and

Outstanding; Owner 
	
Interests in any Person not a Corporation 

	
 
	
Energizer Asia Investments Pte. Ltd. 
	
Singapore 
	
 
	
Authorized: 500,000 

Issued: 2 shares to 

Energizer Cayman Islands, Ltd. 
	
 

	
 
	
Schick North America, Inc. 
	
Delaware 
	
 
	
Authorized: 100 

Issued: 100 

Eveready Battery Company, Inc. 
	
 

	
 
	
Wilkinson Sword Ges.m.b.H 
	
Austria 
	
 
	
Authorized: 50,000 Euros 

Issued: one share (50.00 Euros) 

Halde Zweiunddreißigste Verwaltungsgesellschaft mbH 
	
 

	
 
	
Wilkinson Sword GmbH 
	
Germany 
	
 
	
Registered Capital: 12,340,000 Euro. 2 shares in the amounts of Euro 7,328,650 and Euro 5,011,350 held by Halde Zweiunddreißigste Verwaltungsgesellschaft mbH 
	
 

	
 
	
Wilkinson Sword Verwaltungs GmbH 
	
Germany 
	
 
	
Registered Capital: 4,602,500 Euro. 2 shares in the amounts of Euro 4,602,000 and Euro 500 held by 

Halde Zweiunddreißigste Verwaltungsgesellschaft mbH 
	
 

	
 
	
N.V. Wilkinson Sword S.A. 
	
Belgium 
	
 
	
Authorized: 461 shares (115,000 Euros) 

Issued: 

Energizer Belgium S.A. (460 shares) 

Energizer International, Inc. (1 share) 
	
 

 

	
    

	 	- 126 - 	 
	

	 

	
 
	
Subsidiary Name 
	
Jurisdictions of 

Incorporation 
	
Foreign Qualification 
	
Shares Authorized and Issued and

Outstanding; Owner 
	
Interests in any Person not a Corporation 

	
 
	
Wilkinson Sword S.p.A. 
	
Italy 
	
 
	
Authorized: 100,000 

Issued: 100,000 

Energizer Italia S.p.A. (98%) 

Energizer International, Inc. (2%) 
	
 

	
 
	
Wilkinson Sword B.V. 
	
Netherlands 
	
 
	
Authorized: 2,000 shares (par value 500 Euro) 

Issued: 400 shares 

Halde Zweiunddreißigste Verwaltungsgesellschaft mbH 
	
 

	
 
	
Schick Asia Limited 
	
Hong Kong 
	
 
	
Ordinary Authorized: 5,944 

Issued:5,600 

Schick Cayman Islands Ltd.: 5,599 

Baker & McKenzie (Nominees): 1 share 

 

Preferred Authorized: 5,600 

Issued:5,600 

Schick Cayman Islands Ltd.: 5,599 

Baker & McKenzie (Nominees): 1 share 
	
 

	
 
	
Schick (Guangzhou) Company Limited 
	
China 
	
 
	
Schick Asia Limited 

US$7,500,000 (Fully paid up) 
	
 

	
 
	
Wilkinson Sword Artigos de Higiene Lda. 
	
Portugal 
	
 
	
Authorized: 821,000 Euros 

Issued: 821,000 Euros (3 shares) 

Halde Zweiunddreißigste Verwaltungsgesellschaft mbH 
	
 

 

	
    

	 	- 127 - 	 
	

	 

	
 
	
Subsidiary Name 
	
Jurisdictions of 

Incorporation 
	
Foreign Qualification 
	
Shares Authorized and Issued and

Outstanding; Owner 
	
Interests in any Person not a Corporation 

	
 
	
Wilkinson Sword S.A.E. 
	
Spain 
	
 
	
Authorized: 1,572,426 Euros 

Issued: 262,071 shares 

Halde Zweiunddreißigste Verwaltungsgesellschaft mbH 
	
 

	
 
	
Wilkinson Sword Limited 
	
United Kingdom 
	
 
	
Ordinary Authorized: 6,350,000 

Issued: 6,350,000 

Energizer Holdings UK Company 

Ordinary A: 19,882,283 

Issued: 19,882,283 

Energizer Holdings UK Company 
	
 

	
 
	
Wilkinson Sword (1999) Ltd. 
	
United Kingdom 
	
 
	
Ordinary Authorized: 100 

Issued: 1 

Wilkinson Sword Limited 
	
 

	
 
	
Wilkinson Sword Tras Urunleri Ticarat Limited Sirketi 
	
Turkey 
	
 
	
Ordinary Authorized: 600 

Issued: 600 

Wilkinson Sword GmbH: 599 shares 

Wilkinson Sword Verwaltungs GmbH 1 share 
	
 

	
 
	
Wilkinson Sword Sp. Zo. o. 
	
Poland 
	
 
	
Authorized: 51,500 shares 

Issued: 51,500 shares 

Wilkinson Sword GmbH 
	
 

	
    

	 	- 128 - 	 
	

	

SCHEDULE 10

Standing Payment Instructions 

	
Bank of America, N.A. 

	
For payment in US$ 

	
Bank 
	
: 
	
Bank of America, N.A., New York 

	
CHIPS 
	
: 
	
046346 

	
For Account of 
	
: 
	
Bank of America, N.A., Singapore 

	
Account No. 
	
: 
	
97492 

	
For payment in S$ 

	
Bank 
	
: 
	
Monetary Authority of Singapore 

	
For Account of 
	
: 
	
Bank of America, N.A., Singapore 

	
Bank Code 
	
: 
	
7065 

	
Reference 
	
: 
	
Energizer syndicated credit facility 

	
Attention 
	
: 
	
Credit Services & Note Dept 

	
 
	
 
	
 

	
Bank of China, Singapore Branch 

	
For payment in US$ 

	
Bank 
	
: 
	
Bank of China, New York Branch 

	
CHIPS 
	
: 
	
102595 

	
For Account of 
	
: 
	
Bank of China, Singapore Branch 

	
Account No. 
	
: 
	
7001-1000144-007-001 

	
Reference 
	
: 
	
Credit Admin-"Credit Admin-Energizer" 

	
For payment in S$ 

	
Bank 
	
: 
	
Monetary Authority of Singapore 

	
For Account of 
	
: 
	
Bank of China, Singapore Branch 

	
Bank Code 
	
: 
	
7083 

	
Reference 
	
: 
	
Syndicated Loan: Energizer Asia Investment Pte Ltd 

	
Attention 
	
: 
	
Ms Low Wai Munn - Credit Administration Department 

	
 
	
 
	
 

	
Citibank, N.A., Singapore Branch 

	
For payment in US$ 

	
Bank 
	
: 
	
Citibank, N.A. New York 

	
CHIPS ABA 
	
: 
	
0008 

	
CHIPS UID 
	
: 
	
033180 

	
SWIFT 
	
: 
	
CITISGSG 

	
For Account of 
	
: 
	
Citibank N.A., Singapore Branch 

	
Account No. 
	
: 
	
10991581 

 

	 
	 	 - 129 -	 
	

	 

	
For payment in S$ 

	
Bank 
	
: 
	
Monetary Authority of Singapore 

	
For Account of 
	
: 
	
Citibank N.A., Singapore Branch 

	
Bank Code 
	
: 
	
7214 

	
Reference 
	
: 
	
Energizer Syndicated Loan 

	
 
	
 
	
 

	
Credit Lyonnais, Singapore Branch 

	
For payment in US$ 

	
Bank 
	
: 
	
Credit Lyonnais New York 

	
SWIFT 
	
: 
	
CRLY US 33 

	
For Account of 
	
: 
	
Credit Lyonnais Singapore 

	
Account No. 
	
: 
	
01-09377-0001-00 

	
Reference 
	
: 
	
Energizer Asia 

	
Attention 
	
: 
	
Linda Seah/Serene Teo 

	
 
	
 
	
 

	
For payment in S$ 

	
Bank 
	
: 
	
Monetary Authority of Singapore 

	
SWIFT 
	
: 
	
MASGSGSG 

	
For Account of 
	
: 
	
Credit Lyonnais Singapore 

	
Bank Code 
	
: 
	
7861 

	
Reference 
	
: 
	
Energizer Asia 

	
Attention 
	
: 
	
Linda Seah/Serene Teo 

	
 
	
 
	
 

	
DBS Bank Ltd. 

	
For payment in US$ 

	
Bank 
	
: 
	
Bank of New York, New York 

	
CHIPS ABA 
	
: 
	
0001 

	
CHIPS UID 
	
: 
	
034675 

	
For Account of 
	
: 
	
DBS Bank Ltd 

	
Reference 
	
: 
	
Energizer US$250 Million Guaranteed Credit Facilities 

	
Attention 
	
: 
	
Ms Tey Bee Kuan 

	
For payment in S$ 

	
Bank 
	
: 
	
Monetary Authority of Singapore 

	
For Account of 
	
: 
	
DBS Bank Ltd. 

	
Bank Code 
	
: 
	
7171 

	
Reference 
	
: 
	
Energizer US$250 Million Guaranteed Credit Facilities 

	
Attention 
	
: 
	
Ms Tey Bee Kuan 

 

	 
	 	- 130 - 	 
	

	 

	
Mizuho Corporate Bank, Ltd., Singapore Branch 

	
For payment in US$ 

	
Bank 
	
: 
	
JPMorgan Chase Bank, New York 

	
CHIPS UID 
	
: 
	
125179 

	
For Account of 
	
: 
	
Mizuho Corporate Bank, Ltd., Singapore Branch 

	
Account No. 
	
: 
	
400928140 

	
For payment in S$ 

	
Bank 
	
: 
	
Monetary Authority of Singapore 

	
For Account of 
	
: 
	
Mizuho Corporate Bank, Ltd., Singapore Branch 

	
Bank Code 
	
: 
	
7621 

	
 
	
 
	
 

	
Norddeutsche Landesbank Girozentrale, Singapore Branch 

	
For payment in US$ 

	
Bank 
	
: 
	
JP Morgan Chase Bank, New York 

	
CHIPS 
	
: 
	
340328 

	
For Account of 
	
: 
	
Nord/LB S'pore 

	
Account No. 
	
: 
	
001-1-746-500 

	
Reference 
	
: 
	
Energizer 

	
Attention 
	
: 
	
Ms Lim Huey Ling/Ms Sarah Lim 

	
For payment in S$ 

	
Bank 
	
: 
	
DBS Bank Ltd, Singapore 

	
SWIFT 
	
: 
	
DBSSSGSG 

	
For Account of 
	
: 
	
Nord/LB S'pore 

	
Account No. 
	
: 
	
001-052218-3 

	
Reference 
	
: 
	
Energizer 

	
Attention 
	
: 
	
Ms Lim Huey Ling/Ms Sarah Lim 

	
 
	
 
	
 

	
Oversea-Chinese Banking Corporation Limited 

	
For payment in US$ 

	
Bank 
	
: 
	
JP Morgan Chase NY 

	
CHIPS UID 
	
: 
	
010275 

	
For Account of 
	
: 
	
OCBC Singapore 

	
Reference 
	
: 
	
Energizer Asia Investments PL 

	
Attention 
	
: 
	
Ms Chee Hwee Hoon & Annie Kho 

 

	 
	 	- 131 - 	 
	

	 

	
For payment in S$ 

	
Bank 
	
: 
	
Monetary Authority of Singapore 

	
For Account of 
	
: 
	
OCBC Singapore 

	
Bank Code 
	
: 
	
7339 

	
Reference 
	
: 
	
Principal and Interest Settlement - Loan Settlement 

	
 
	
 
	
 

	
SANPAOLO IMI S.p.A., Singapore Branch 

	
For payment in US$ 

	
Bank 
	
: 
	
Wachovia Bank N.A., New York International Branch, New York 

	
CHIPS UID 
	
: 
	
242335 

	
For Account of 
	
: 
	
SANPAOLO IMI S.p.A., Singapore 

	
For payment in S$ 

	
Bank 
	
: 
	
Monetary Authority of Singapore 

	
For Account of 
	
: 
	
SANPAOLO IMI S.p.A., Singapore 

	
Bank Code 
	
: 
	
8350 

	
 
	
 
	
 

	
Standard Chartered Bank 

	
For payment in US$ 

	
Bank 
	
: 
	
Standard Chartered Bank, New York 

	
CHIPS UID 
	
: 
	
057220 

	
SWIFT 
	
: 
	
SCBLSGSG 

	
For Account of 
	
: 
	
Standard Chartered Bank, Singapore 

	
Account No. 
	
: 
	
3582-088503-001 

	
Reference 
	
: 
	
Loan Syndications Unit / Energizer 

	
For payment in S$ 

	
Bank 
	
: 
	
The Monetary Authority of Singapore 

	
For Account of 
	
: 
	
Standard Chartered Bank, Singapore 

	
Bank Code 
	
: 
	
7144 

	
Branch Code 
	
: 
	
001 

	
Reference 
	
: 
	
Loan Syndications Unit / Energizer 

	
 
	
 
	
 

	
Sumitomo Mitsui Banking Corporation, Singapore Branch 

	
For payment in US$ 

	
Bank 
	
: 
	
JP Morgan Chase Bank, New York (CHASUS33) 

	
CHIPS UID 
	
: 
	
141695 

	
For Account of 
	
: 
	
Sumitomo Mitsui Banking Corporation, Singapore Branch 

	
Account No. 
	
: 
	
001-1-746468 

 

	 
	 	- 132 - 	 
	

	 

	
For payment in S$ 

	
Bank 
	
: 
	
The Monetary Authority of Singapore 

	
For Account of 
	
: 
	
Sumitomo Mitsui Banking Corporation, Singapore Branch 

	
Bank Code 
	
: 
	
7472 

	
 
	
 
	
 

	
The Bank of Nova Scotia Asia Limited 

	
For payment in US$ 

	
Bank 
	
: 
	
The Bank of Nova Scotia New York City, New York 

	
SWIFT 
	
: 
	
NOSCUS33 

	
For Account of 
	
: 
	
The Bank of Nova Scotia, Singapore 

	
Account No. 
	
: 
	
6020-35 

	
CHIPS UID 
	
: 
	
089795 

	
For payment in S$ 

	
Bank 
	
: 
	
Oversea-Chinese Banking Corporation, Singapore 

	
SWIFT 
	
: 
	
OCBCSGSG 

	
For Account of 
	
: 
	
The Bank of Nova Scotia, Singapore Branch 

Favouring The Bank of Nova Scotia Asia Limited 

	
 
	
 
	
 

	
Account No. 
	
: 
	
501-010920-001 

	
 
	
 
	
 

	
The Bank of Tokyo-Mitsubishi, Ltd., Singapore Branch 

	
For payment in US$ 

	
Bank 
	
: 
	
The Bank of Tokyo-Mitsubishi Ltd, New York Branch 

	
CHIPS UID 
	
: 
	
077082 

	
For Account of 
	
: 
	
The Bank of Tokyo-Mitsubishi, Ltd., Singapore Branch 

	
Account No. 
	
: 
	
30006550 

	
For payment in S$ 

	
Bank 
	
: 
	
Monetary Authority of Singapore 

	
For Account of 
	
: 
	
The Bank of Tokyo-Mitsubishi, Ltd., Singapore Branch 

	
Bank Code 
	
: 
	
7126 

 

	 
	 	- 133 - 	 
	

	 

	
United Overseas Bank Limited 

	
For payment in US$ 

	
Bank 
	
: 
	
Deutsche Bank Trust Co. Americas New York 

	
CHIPS UID 
	
: 
	
010762 

	
For Account of 
	
: 
	
United Overseas Bank Limited (Singapore) 

	
Account No. 
	
: 
	
CP0103 

	
Reference 
	
: 
	
Payment for Energizer Asia Investment Pte Ltd for value xxxx 

	
Attention 
	
: 
	
Mr Daniel Tay/Loans Admin 

	
For payment in S$ 

	
Bank 
	
: 
	
Monetary Authority of Singapore 

	
For Account of 
	
: 
	
United Overseas Bank Limited 

	
Bank Code 
	
: 
	
7375 

	
Reference 
	
: 
	
Payment for Energizer Asia Investment Pte Ltd for value xxxx 

	
Attention 
	
: 
	
Mr Daniel Tay/Loans Admin 

	
 
	
 
	
 

	
Westpac Banking Corporation 

	
For payment in US$ 

	
Bank 
	
: 
	
Chase Manhattan Bank N.A., New York, USA 

	
SWIFT 
	
: 
	
CHASUS33 

	
CHIPS UID 
	
: 
	
142544 

	
For Account of 
	
: 
	
Westpac Banking Corporation, Singapore Branch 

	
Account No. 
	
: 
	
001-1-910213 

	
Reference 
	
: 
	
Energizer Syndication, Attention Daniel Chee 

	
For payment in S$ 

	
Bank 
	
: 
	
Oversea-Chinese Banking Corporation Ltd 

	
SWIFT 
	
: 
	
OCBCSGSG 

	
For Account of 
	
: 
	
Westpac Banking Corporation, Singapore Branch 

	
Account No. 
	
: 
	
501-050777-001 

 

	 
	 	- 134 - 	 
	

	 

	
The Borrower 

	
ENERGIZER ASIA INVESTMENTS PTE LTD 

	
Address
	
:
	
 

	
Fax No 
	
:
	
 

	
Attention 
	
:
	
 

	
 
	
 
	
 

	
By: 
	
 
	
 

	
 
	
 
	
 

	
The Guarantors 

	
ENERGIZER HOLDINGS, INC. 

	
Address
	
:
	
 

	
Fax No
	
:
	
 

	
Attention
	
:
	
 

	
 
	
 
	
 

	
By: 
	
 
	
 

	
By: 
	
 
	
 

	
 
	
 
	
 

	
ENERGIZER SINGAPORE PTE LTD. 

	
Address: 
	
 
	
 

	
Fax No: 
	
 
	
 

	
Attention: 
	
 
	
 

	
 
	
 
	
 

	
By: 
	
 
	
 

	
By: 
	
 
	
 

	
 
	
 
	
 

	
SONCA PRODUCTS LTD 

	
Address
	
:
	
 

	
Fax No
	
:
	
 

	
Attention
	
:
	
 

	
 
	
 
	
 

	
By: 
	
 
	
 

	
By: 
	
 
	
 

 

	 
	 	- 135 - 	 
	

	 

	
The Arranger 

	
CITIGROUP GLOBAL MARKETS SINGAPORE MERCHANT BANK LTD 

	
 
	
 
	
 

	
By: 
	
 
	
 

	
 
	
 
	
 

	
STANDARD CHARTERED BANK 

	
 
	
 
	
 

	
By: 
	
 
	
 

	
 
	
 
	
 

	
The Original Lenders 

	
BANK OF AMERICA, N.A. 

	
Address 
	
: 
	
9 Raffles Place 

	
 
	
 
	
#18-00 

	
 
	
 
	
Republic Plaza Tower 1 

	
 
	
 
	
Singapore 048619 

	
Fax No 
	
: 
	
+65 6239 3266 

	
Tel No 
	
: 
	
+65 6239 3192/+65 6239 3208 

	
Emai: 
	
: 
	
kathy.chew@bankofamerica.com/joy.h.tan@bankofamerica.com 

	
Attention 
	
: 
	
Kathy Chew/Joy Tan 

	
 
	
 
	
 

	
By: 
	
 
	
 

	
 
	
 
	
 

	
BANK OF CHINA, SINGAPORE BRANCH 

	
Address 
	
: 
	
4 Battery Road 

	
 
	
 
	
Bank of China Building 

	
 
	
 
	
Singapore 049908 

	
Fax No 
	
: 
	
+65 6535 0567 

	
Tel No 
	
: 
	
+65 6439 8462/+65 6439 8837/+65 6439 8836 

	
Email 
	
: 
	
cmsg@bank-of-china.com 

	
Attention 
	
: 
	
Ms Tho Huey Pin/Ms Cecilia Yeong/Ms Neo Sze Wee 

	
 
	
 
	
Credit Administration Department 

	
 
	
 
	
 

	
By: 
	
 
	
 

 

	 
	 	- 136 - 	 
	

	 

	
CITIBANK, N.A., SINGAPORE BRANCH 

	
Address 
	
: 
	
3 Temasek Avenue 

	
 
	
 
	
#12-00 Centennial Tower 

	
 
	
 
	
Singapore 039190 

	
Fax No 
	
: 
	
+65 6328 5893 

	
Tel No 
	
: 
	
+65 6328 5669 

	
Email 
	
: 
	
sok.leng.ang@citigroup.com 

	
Attention 
	
: 
	
Ang Sok Leng/Michael Nelson 

	
 
	
 
	
 

	
By: 
	
 
	
 

	
 
	
 
	
 

	
CREDIT LYONNAIS, SINGAPORE BRANCH 

	
Address 
	
: 
	
No. 3 Temasek Avenue 

	
 
	
 
	
#11-01 Centennial Tower 

	
 
	
 
	
Singapore 039190 

	
Fax No 
	
: 
	
+65 6333 8541 

	
Tel No 
	
: 
	
+65 6832 0958/+65 6832 0793 

	
Email 
	
: 
	
linda.seah@creditlyonnais.fr/serene.teo@creditlyonnais.fr 

	
Attention 
	
: 
	
Linda Seah/Serene Teo 

	
 
	
 
	
 

	
By: 
	
 
	
 

	
 
	
 
	
 

	
DBS BANK LTD. 

	
Address 
	
: 
	
6 Shenton Way 

	
 
	
 
	
DBS Building Tower One 

	
 
	
 
	
Singapore 068809 

	
Fax No 
	
: 
	
+65 6224 2742 

	
Tel No 
	
: 
	
+65 6878 6170/+65 6878 2013 

	
Email 
	
: 
	
cynthiatan@dbs.com/beekuan@dbs.com 

	
Attention 
	
: 
	
Ms Cynthia Tan/Ms Tey Bee Kuan 

	
 
	
 
	
 

	
By: 
	
 
	
 

 

	 
	 	- 137 - 	 
	

	 

	
MIZUHO CORPORATE BANK, LTD., SINGAPORE BRANCH 

	
Address 
	
: 
	
168 Robinson Road 

	
 
	
 
	
#13-00 Capital Tower 

	
 
	
 
	
Singapore 068912 

	
Fax No 
	
: 
	
+65 6416 0590/+65 6416 0379 

	
Tel No 
	
: 
	
+65 6416 0350/+65 6416 0576/+65 6416 0586 

	
Email 
	
: 
	
jonathan.tan@mizuho-cb.com/jennie.ang@mizuho-cb.com/yvonne.lim@mizuho-cb.com 

	
Attention 
	
: 
	
Jonathan Tan/Jennie Ang/Yvonne Lim 

	
 
	
 
	
 

	
By: 
	
 
	
 

	
 
	
 
	
 

	
NORDDEUTSCHE LANDESBANK GIROZENTRALE, SINGAPORE BRANCH 

	
Address 
	
: 
	
6 Shenton Way 

	
 
	
 
	
#16-00 

	
 
	
 
	
DBS Building Tower 2 

	
Fax No 
	
: 
	
Singapore 068809 

	
Tel No 
	
: 
	
+65 6324 7090 

	
Email 
	
: 
	
+65 6420 3853/+65 6420 3858 

	
Attention 
	
: 
	
Ms Lim Huey Ling/Ms Sarah Lim 

	
 
	
 
	
 

	
By: 
	
 
	
 

	
 
	
 
	
 

	
OVERSEA-CHINESE BANKING CORPORATION LIMITED 

	
Address 
	
: 
	
65 Chulia Street 

	
 
	
 
	
#10-00 OCBC Centre 

	
 
	
 
	
Singapore 049513 

	
Fax No 
	
: 
	
+65 6536 9327/+65 6536 6449 

	
Tel No 
	
: 
	
+65 6530 6019/+65 6530 6188 

	
Email 
	
: 
	
Tanksalex@ocbc.com.sg/Leewljuana@ocbc.com.sg 

	
Attention 
	
: 
	
Alex Tan/Juana Lee 

	
 
	
 
	
 

	
By: 
	
 
	
 

 

	 
	 	- 138 - 	 
	

	 

	
SANPAOLO IMI S.P.A., SINGAPORE BRANCH 

	
Address 
	
: 
	
6 Temasek Boulevard 

	
 
	
 
	
#42-04/05 Suntec Tower Four 

	
 
	
 
	
Singapore 038986 

	
Fax No 
	
: 
	
+65 6333 8252 

	
Tel No 
	
: 
	
+65 6333 8270/+65 6335 9109 

	
Email 
	
: 
	
singapore.sg@sanpaoloimi.com 

	
Attention 
	
: 
	
Ms Gwee Siew Lan, Vice President/Ms Vivien Liew, Loan Administration Officer 

	
 
	
 
	
 

	
By: 
	
 
	
 

	
 
	
 
	
 

	
STANDARD CHARTERED BANK 

	
Address 
	
: 
	
6 Battery Road #07-00 

	
 
	
 
	
Singapore 049909 

	
 
	
 
	
+65 6538 9363/+65 6222 1990 

	
Fax No 
	
: 
	
+65 6530 3072 

	
Tel No 
	
: 
	
Debbie.Chan@sg.standardchartered.com/Anny.Rodjito@sg.standardchartered.com 

	
Email 
	
: 
	
Anny Rodjito/Debbie Chan 

	
 
	
 
	
 

	
By: 
	
 
	
 

	
 
	
 
	
 

	
SUMITOMO MITSUI BANKING CORPORATION, SINGAPORE BRANCH 

	
Address 
	
: 
	
3 Temasek Avenue 

	
 
	
 
	
#06-01 Centennial Tower 

	
 
	
 
	
Singapore 039190 

	
Fax No 
	
: 
	
+65 6882 0023 

	
Tel No 
	
: 
	
+65 6882 0530 

	
Email 
	
: 
	
cathrine_lai@sg.smbc.co.jp/veronica_lee@sg.smbc.co.jp/hazel_wong@sg.smbc.co.jp 

	
Attention 
	
: 
	
Catherine Lai/Veronica Lee/Hazel Wong 

	
 
	
 
	
 

	
By: 
	
 
	
 

 

	 
	 	- 139 - 	 
	

	 

	
THE BANK OF NOVA SCOTIA ASIA LIMITED 

	
Address 
	
: 
	
10 Collyer Quay 

	
 
	
 
	
#15-01 

	
 
	
 
	
Ocean Building 

	
Fax No 
	
: 
	
Singapore 049315 

	
Tel No 
	
: 
	
+65 6532 7554 

	
Email 
	
: 
	
+65 6535 8688 

	
Attention 
	
: 
	
kok_ang_low@scotiacapital.com 

	
Address 
	
: 
	
Mr Low Kok Ang/Gabriel Low 

	
 
	
 
	
 

	
By: 
	
 
	
 

	
 
	
 
	
 

	
THE BANK OF TOKYO-MITSUBISHI, LTD., SINGAPORE BRANCH 

	
Address 
	
: 
	
9 Raffles Place 

	
 
	
 
	
#01-01 Republic Plaza 

	
 
	
 
	
Singapore 048619 

	
Fax No 
	
: 
	
+65 6231 1460 

	
Tel No 
	
: 
	
+65 6231 1594/+65 6231 1596/+65 6231 1595 

	
Email 
	
: 
	
ricky_lui@btmspr.com.sg/daniel_aw@btmspr.com.sg 

	
Attention 
	
: 
	
Ms Beatrice Chan/Ms Penny Teoh/Mr Baby Teo 

	
 
	
 
	
 

	
By: 
	
 
	
 

	
 
	
 
	
 

	
UNITED OVERSEAS BANK LIMITED 

	
Address 
	
: 
	
1 Raffles Place 

	
 
	
 
	
#10-00 OUB Centre 

	
 
	
 
	
Singapore 048616 

	
Fax No 
	
: 
	
+65 6538 2449/+65 6538 4945 

	
Tel No 
	
: 
	
+65 6530 2286/+65 6530 2653/+65 6530 2550/+65 6530 2549 

	
Email 
	
: 
	
Jeffrey.LingOC@UOBgroup.com/Wong.WaiHoong@UOBgroup.com/ Philip.PhuaTP@UOBgroup.com 

	
Attention 
	
: 
	
Jeffrey Ling/Wong Wai Hoong/Philip Phua/Lynnette Ning 

	
 
	
 
	
 

	
By: 
	
 
	
 

 

	 
	 	- 140 - 	 
	

	 

	
WESTPAC BANKING CORPORATION 

	
Address 
	
: 
	
77 Robinson Road 

	
 
	
 
	
#19-00 SIA Building 

	
 
	
 
	
Singapore 068896 

	
Fax No 
	
: 
	
+65 6532 6781 

	
Tel No 
	
: 
	
+65 6530 9547/+65 6530 9545 

	
Email 
	
: 
	
dchee@westpac.com.au/jong@westpac.com.au 

	
Attention 
	
: 
	
Daniel Chee/Josephine Ong 

	
 
	
 
	
 

	
By: 
	
 
	
 

	
 
	
 
	
 

	
The Agent 
	
 
	
 

	
CITICORP INVESTMENT BANK (SINGAPORE) LIMITED 

	
Address 
	
: 
	
300 Tampines Avenue 5 

	
 
	
 
	
#07-00 Tampines Junction 

	
 
	
 
	
Singapore 529653 

	
Fax No 
	
: 
	
+65 6787 0026 

	
Attention 
	
: 
	
Mr Arthur Lee/Mr Ng Kim Tat 

	
 
	
 
	
 

	
By: 
	
 
	
 

	 
	 	 - 141 -Exhibit 10.(vii)

Exhibit 10(vii) 

 

 

EXECUTION COPY 

 

REVOLVING CREDIT AGREEMENT 

Dated as of June 27, 2003 

Among 

ENERGIZER HOLDINGS, INC.

THE INSTITUTIONS FROM TIME TO TIME 

PARTIES HERETO AS LENDERS 

BANK ONE, NA, 

as Administrative Agent, 

CITIBANK, N.A., 

as Syndication Agent 

and 

BANK OF AMERICA, N.A., 

as Documentation Agent 

BANC ONE CAPITAL MARKETS, INC., 

and 

CITIGROUP GLOBAL MARKETS INC.

as Co-Lead Arrangers and Joint Bookrunners 

SIDLEY AUSTIN BROWN & WOOD 

Bank One Plaza 

10 South Dearborn Street 

Chicago, Illinois 60603 

	 
	 	 	 
	

	
 TABLE OF CONTENTS

 

 

	
Page

	
 TABLE OF CONTENTS  

	 	 
	
ARTICLE I:

	
DEFINITIONS 
	
1 

	
 
	
 

	
1.1 
	
Certain Defined Terms 
	
1 

	
1.2 
	
References 
	
24 

	
 
	
 
	
 

	
ARTICLE II: 

	
THE REVOLVING LOAN FACILITY 
	
24 

	
 
	
 

	
2.1 
	
Revolving Loans 
	
24 

	
2.2 
	
Swing Line Loans 
	
25 

	
2.3 
	
Rate Options for all Advances; Maximum Interest Periods 
	
26 

	
2.4 
	
Optional Payments 
	
27 

	
2.5 
	
Reduction of Revolving Loan Commitments 
	
27 

	
2.6 
	
Method of Borrowing 
	
27 

	
2.7 
	
Method of Selecting Types and Interest Periods for Advances 
	
27 

	
2.8 
	
Minimum Amount of Each Advance 
	
28 

	
2.9 
	
Method of Selecting Types and Interest Periods for Conversion and Continuation of Advances 
	
28 

	
2.10 
	
Default Rate 
	
29 

	
2.11 
	
Method of Payment 
	
29 

	
2.12 
	
Evidence of Debt; Noteless Agreement 
	
29 

	
2.13 
	
Telephonic Notices 
	
30 

	
2.14 
	
Promise to Pay; Interest and Facility Fees; Interest Payment Dates; Interest and Fee Basis; Loan and Control Accounts 
	
30 

	
2.15 
	
Notification of Advances, Interest Rates, Prepayments and Aggregate Revolving Loan Commitment Reductions 
	
33 

	
2.16 
	
Lending Installations 
	
33 

	
2.17 
	
Non-Receipt of Funds by the Administrative Agent 
	
33 

	
2.18 
	
Termination Date 
	
34 

	
2.19 
	
Replacement of Certain Lenders 
	
34 

	
 
	
 
	
 

	
ARTICLE III 

	
THE LETTER OF CREDIT FACILITY 
	
35 

	
 
	
 

	
3.1 
	
Obligation to Issue Letters of Credit 
	
35 

	
3.2 
	
Transitional Letters of Credit 
	
35 

	
3.3 
	
Types and Amounts 
	
35 

	
3.4 
	
Conditions 
	
35 

	
3.5 
	
Procedure for Issuance of Letters of Credit 
	
36 

	
3.6 
	
Letter of Credit Participation 
	
36 

 

	 
	 	 i	 
	

	
 TABLE OF CONTENTS
(continued)

	
 Page

 

	
3.7 
	
Reimbursement Obligation 
	
37 

	
3.8 
	
Letter of Credit Fees 
	
37 

	
3.9 
	
Issuing Bank Reporting Requirements 
	
38 

	
3.10 
	
Indemnification; Exoneration 
	
38 

	
3.11 
	
Cash Collateral 
	
39 

	
 
	
 
	
 

	
ARTICLE IV: 

	
YIELD PROTECTION; TAXES 
	
39 

	
 
	
 

	
4.1 
	
Yield Protection 
	
39 

	
4.2 
	
Changes in Capital Adequacy Regulations 
	
40 

	
4.3 
	
Availability of Types of Advances 
	
41 

	
4.4 
	
Funding Indemnification 
	
41 

	
4.5 
	
Taxes 
	
41 

	
4.6 
	
Lender Statements; Survival of Indemnity 
	
43 

	
 
	
 
	
 

	
ARTICLE V: 

	
CONDITIONS PRECEDENT 
	
43 

	
 
	
 

	
5.1 
	
Initial Advances and Letters of Credit 
	
43 

	
5.2 
	
Each Advance and Letter of Credit 
	
45 

	
 
	
 
	
 

	
ARTICLE VI: 

	
REPRESENTATIONS AND WARRANTIES 
	
45 

	
 
	
 

	
6.1 
	
Organization; Corporate Powers 
	
45 

	
6.2 
	
Authority 
	
46 

	
6.3 
	
No Conflict; Governmental Consents 
	
46 

	
6.4 
	
Financial Statements 
	
47 

	
6.5 
	
No Material Adverse Change 
	
47 

	
6.6 
	
Taxes 
	
47 

	
6.7 
	
Litigation; Loss Contingencies and Violations 
	
48 

	
6.8 
	
Subsidiaries 
	
48 

	
6.9 
	
ERISA 
	
49 

	
6.10 
	
Accuracy of Information 
	
49 

	
6.11 
	
Securities Activities 
	
50 

	
6.12 
	
Material Agreements 
	
50 

	
6.13 
	
Compliance with Laws 
	
50 

	
6.14 
	
Assets and Properties 
	
50 

	
6.15 
	
Statutory Indebtedness Restrictions 
	
50 

	
6.16 
	
Insurance 
	
50 

	
6.17 
	
Labor Matters 
	
50 

	
6.18 
	
Environmental Matters 
	
51 

	
6.19 
	
Solvency 
	
51 

	
6.20 
	
Benefits 
	
51 

 

	 
	 	ii 	 
	

	
 TABLE OF CONTENTS
(continued)

	
 Page

 

	
 
	
 
	
 

	
ARTICLE VII: 

	
COVENANTS 
	
52 

	
 
	
 

	
7.1 
	
Reporting 
	
52 

	
7.2 
	
Affirmative Covenants 
	
55 

	
7.3 
	
Negative Covenants 
	
58 

	
7.4 
	
Financial Covenants 
	
64 

	
 
	
 
	
 

	
ARTICLE VIII: 

	
DEFAULTS 
	
 
	
65 

	
 
	
 
	
 

	
8.1 
	
Defaults 
	
65 

	
 
	
 
	
 

	
ARTICLE IX: 

	
ACCELERATION, DEFAULTING LENDERS; WAIVERS, AMENDMENTS AND REMEDIES 
	
68 

	
 
	
 

	
9.1 
	
Termination of Revolving Loan Commitments; Acceleration 
	
68 

	
9.2 
	
Defaulting Lender 
	
68 

	
9.3 
	
Amendments 
	
70 

	
9.4 
	
Preservation of Rights 
	
71 

	
 
	
 
	
 

	
ARTICLE X: 

	
GENERAL PROVISIONS 
	
71 

	
 
	
 

	
10.1 
	
Survival of Representations 
	
71 

	
10.2 
	
Governmental Regulation 
	
71 

	
10.3 
	
Performance of Obligations 
	
71 

	
10.4 
	
Headings 
	
72 

	
10.5 
	
Entire Agreement 
	
72 

	
10.6 
	
Several Obligations; Benefits of this Agreement 
	
72 

	
10.7 
	
Expenses; Indemnification 
	
72 

	
10.8 
	
Numbers of Documents 
	
74 

	
10.9 
	
Accounting 
	
74 

	
10.10 
	
Severability of Provisions 
	
75 

	
10.11 
	
Nonliability of Lenders 
	
75 

	
10.12 
	
GOVERNING LAW 
	
75 

	
10.13 
	
CONSENT TO JURISDICTION; JURY TRIAL 
	
75 

	
10.14 
	
Subordination of Intercompany Indebtedness 
	
76 

	
 
	
 
	
 

	
ARTICLE XI: 

	
THE ADMINISTRATIVE AGENT 
	
77 

	
 
	
 

	
11.1 
	
Appointment; Nature of Relationship 
	
78 

	
11.2 
	
Powers 
	
78 

 

	 
	 	 iii	 
	

	
 TABLE OF CONTENTS
(continued)

	
 Page

 

	
11.3 
	
General Immunity 
	
78 

	
11.4 
	
No Responsibility for Loans, Creditworthiness, Recitals, Etc 
	
78 

	
11.5 
	
Action on Instructions of Lenders 
	
79 

	
11.6 
	
Employment of Administrative Agents and Counsel 
	
79 

	
11.7 
	
Reliance on Documents; Counsel 
	
79 

	
11.8 
	
The Administrative Agent’s Reimbursement and Indemnification 
	
79 

	
11.9 
	
Rights as a Lender 
	
80 

	
11.10 
	
Lender Credit Decision 
	
80 

	
11.11 
	
Successor Administrative Agent 
	
80 

	
11.12 
	
No Duties Imposed Upon Syndication Agent, Documentation Agent or Arrangers 
	
80 

	
 
	
 
	
 

	
ARTICLE XII: 

	
SETOFF; RATABLE PAYMENTS 
	
81 

	
 
	
 

	
12.1 
	
Setoff 
	
81 

	
12.2 
	
Ratable Payments 
	
81 

	
12.3 
	
Application of Payments 
	
81 

	
12.4 
	
Relations Among Lenders 
	
82 

	
12.5 
	
Representations and Covenants Among Lenders 
	
83 

	
 
	
 
	
 

	
ARTICLE XIII: 

	
BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS 
	
83 

	
 
	
 

	
13.1 
	
Successors and Assigns 
	
83 

	
13.2 
	
Participations 
	
83 

	
13.3 
	
Assignments 
	
84 

	
13.4 
	
Confidentiality 
	
86 

	
13.5 
	
Dissemination of Information 
	
87 

	
13.6 
	
Tax Treatment 
	
87 

	
 
	
 
	
 

	
ARTICLE XIV: 

	
NOTICES 
	
87 

	
 
	
 

	
14.1 
	
Giving Notice 
	
87 

	
14.2 
	
Change of Address 
	
87 

	
 
	
 
	
 

	
ARTICLE XV: 

	
COUNTERPARTS 
	
87 

 

	 
	 	 iv	 
	

	
 TABLE OF CONTENTS

 

	
Exhibits

	 	 	 
	
EXHIBIT A 
	
-- 
	
Revolving Loan Commitments 

	
EXHIBIT B 
	
-- 
	
Form of Borrowing/Election Notice 

	
EXHIBIT C 
	
-- 
	
Form of Request for Letter of Credit 

	
EXHIBIT D 
	
-- 
	
Form of Assignment Agreement 

	
EXHIBIT E 
	
-- 
	
Form of Borrower’s Counsel’s Opinion 

	
EXHIBIT F 
	
-- 
	
List of Closing Documents 

	
EXHIBIT G 
	
-- 
	
Form of Officer’s Certificate 

	
EXHIBIT H 
	
-- 
	
Form of Compliance Certificate 

	
EXHIBIT I 
	
-- 
	
Form of Supplement to Subsidiary Guaranty 

	
 
	
 
	
 

	
Schedules

			
	
Schedule 1.1.1 
	
-- 
	
Permitted Existing Investments 

	
Schedule 1.1.2 
	
-- 
	
Permitted Existing Liens 

	
Schedule 1.1.3 
	
-- 
	
Permitted Existing Contingent Obligations 

	
Schedule 3.2 
	
-- 
	
Transitional Letters of Credit 

	
Schedule 6.3 
	
-- 
	
Conflicts; Governmental Consents 

	
Schedule 6.7 
	
-- 
	
Litigation; Loss Contingencies 

	
Schedule 6.8 
	
-- 
	
Subsidiaries 

	
Schedule 6.18 
	
-- 
	
Environmental Matters 

	
Schedule 7.3(G) 
	
-- 
	
Transactions with Shareholders and Affiliates 

	 
	 	v 	 
	

	 

 

REVOLVING CREDIT AGREEMENT 

This Revolving Credit Agreement dated as of June 27, 2003 is entered into among ENERGIZER HOLDINGS, INC., a Missouri corporation, the institutions from time to time parties hereto as Lenders, whether by execution of this Agreement or an Assignment Agreement pursuant to Section 13.3, and BANK ONE, NA, having its principal office in Chicago, Illinois, in its capacity as Administrative Agent, CITIBANK, N.A., as Syndication Agent and BANK OF AMERICA, N.A., as Documentation Agent. The parties hereto agree as follows: 

ARTICLE I: DEFINITIONS 

1.1  Certain Defined Terms.  In addition to the terms defined above, the following terms used in this Agreement shall have the following meanings, applicable both to the singular and the plural forms of the terms defined. 

As used in this Agreement: 

"Accounting Change" is defined in Section 10.9 hereof. 

"Acquisition" means any transaction, or any series of related transactions, consummated on or after the date of this Agreement, by which the Borrower or any of its Subsidiaries (i) acquires any going business or all or substantially all of the assets of any firm, corporation or division thereof, whether through purchase of assets, merger or otherwise or (ii) directly or indirectly acquires (in one transaction or as the most recent transaction in a series of transactions) at least a majority (in number of votes) of the securities of a corporation which have ordinary voting power for the election of directors (other than securities having such power only by reason of the happening of a contingency) or a majority (by percentage of voting power) of the outstanding equity interests of another Person. 

"Administrative Agent" means Bank One in its capacity as contractual representative for itself and the Lenders pursuant to Article XI hereof and any successor Administrative Agent appointed pursuant to Article XI hereof. 

"Advance" means a borrowing hereunder consisting of the aggregate amount of the several Loans made by the Lenders to the Borrower of the same Type and, in the case of Eurodollar Rate Advances, for the same Interest Period. 

"Affected Lender" is defined in Section 2.19 hereof. 

"Affiliate" of any Person means any other Person directly or indirectly controlling, controlled by or under common control with such Person. A Person shall be deemed to control another Person if the controlling Person is the "beneficial owner" (as defined in Rule 13d-3 under the Securities Exchange Act of 1934) of greater than ten percent (10%) or more of any class of voting securities (or other voting interests) of the controlled Person or possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of the controlled Person, whether through ownership of Capital Stock, by contract or otherwise. 

	 
	 	 	 
	

	 

 

"Aggregate Revolving Loan Commitment" means the aggregate of the Revolving Loan Commitments of all the Lenders, as may be reduced from time to time pursuant to the terms hereof. The initial Aggregate Revolving Loan Commitment is Three Hundred Million and 00/100 Dollars ($300,000,000.00). 

"Agreement" means this Revolving Credit Agreement, as it may be amended, restated or otherwise modified and in effect from time to time. 

"Agreement Accounting Principles" means generally accepted accounting principles as in effect in the United States from time to time, applied in a manner consistent with that used in preparing the financial statements of the Borrower referred to in Section 6.4 hereof; provided, however, except as provided in Section 10.9, that with respect to the calculation of financial ratios and other financial tests required by this Agreement, "Agreement Accounting Principles" means generally accepted accounting principles as in effect in the United States as of the date of this Agreement, applied in a manner consistent with that used in preparing the financial statements of the Borrower referred to in Section 6.4 hereof. 

"Alternate Base Rate" means, for any day, a fluctuating rate of interest per annum equal to the higher of (i) the Prime Rate for such day and (ii) the sum of (a) the Federal Funds Effective Rate for such day and (b) one-half of one percent (0.5%) per annum. 

"Applicable Facility Fee Percentage" means, as at any date of determination, the rate per annum then applicable in the determination of the amount payable under Section 2.14(C)(i) hereof determined in accordance with the provisions of Section 2.14(D)(ii) hereof. 

"Applicable Margin" means, as at any date of determination, the rate per annum then applicable to Advances of any Type at such time, determined in accordance with the provisions of Section 2.14(D)(ii) hereof. 

"Applicable L/C Fee Percentage" means, as at any date of determination, the rate per annum then applicable in the determination of the amount payable under Section 3.8(i) hereof determined in accordance with the provisions of Section 2.14(D)(ii) hereof. 

"Applicable Utilization Fee Percentage" means, as at any date of determination, the rate per annum then applicable in the determination of the amount payable under Section 2.14(C)(ii) hereof determined in accordance with the provisions of Section 2.14(D)(ii) hereof. 

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

"Arrangers" means Banc One Capital Markets, Inc. and Citigroup Global Markets Inc., in their respective capacities as the co-lead arrangers and joint bookrunners for the loan transaction evidenced by this Agreement. 

"Assignment Agreement" means an assignment and assumption agreement entered into in connection with an assignment by a Lender pursuant to Section 13.3 hereof in substantially the form of Exhibit D. 

	 
	 	2	 
	

	 

 

"Asset Sale" means, with respect to any Person, the sale, lease, conveyance, disposition or other transfer by such Person of any of its assets (including by way of a sale-leaseback transaction, and including the sale or other transfer of any of the Equity Interests of any Subsidiary of such Person) other than (i) the sale of Inventory in the ordinary course of business and (ii) the sale or other disposition of any obsolete manufacturing Equipment disposed of in the ordinary course of business. 

"Authorized Officer" means any of the president, any vice president (including any executive vice president), the chief financial officer or the treasurer of the Borrower, acting singly. 

"Bank One" means Bank One, NA, having its principal office in Chicago, Illinois, in its individual capacity, and its successors. 

"Benefit Plan" means a defined benefit plan as defined in Section 3(35) of ERISA (other than a Multiemployer Plan or Foreign Pension Plan) in respect of which the Borrower or any other member of the Controlled Group is, or within the immediately preceding six (6) years was, an "employer" as defined in Section 3(5) of ERISA. 

"Borrower" means Energizer Holdings, Inc., a Missouri corporation, together with its successors and assigns, including a debtor-in-possession on behalf of the Borrower. 

"Borrowing Date" means a date on which an Advance or Swing Line Loan is made hereunder. 

"Borrowing/Election Notice" is defined in Section 2.7 hereof. 

"Business Day" means (i) with respect to any borrowing, payment or rate selection of Loans bearing interest at the Eurodollar Rate, a day (other than a Saturday or Sunday) on which banks are open for business in Chicago, Illinois and New York, New York and on which dealings in Dollars are carried on in the London interbank market and (ii) for all other purposes a day (other than a Saturday or Sunday) on which banks are open for business in Chicago, Illinois and New York, New York. 

"Capital Stock" means (i) in the case of a corporation, capital stock, (ii) in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock, (iii) in the case of a partnership, partnership interests (whether general or limited) and (iv) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person. 

"Capitalized Lease" of a Person means any lease of property by such Person as lessee which would be capitalized on a balance sheet of such Person prepared in accordance with Agreement Accounting Principles. 

"Capitalized Lease Obligations" of a Person means the amount of the obligations of such Person under Capitalized Leases which would be capitalized on a balance sheet of such Person prepared in accordance with Agreement Accounting Principles. 

	 
	 	3	 
	

	 

 

"Cash Equivalents" means (i) marketable direct obligations issued or unconditionally guaranteed by the United States government and backed by the full faith and credit of the United States government; (ii) domestic and Eurodollar certificates of deposit and time deposits, bankers’ acceptances and floating rate certificates of deposit issued by any commercial bank organized under the laws of the United States, any state thereof, the District of Columbia, any foreign bank, or its branches or agencies (fully protected against currency fluctuations for any such deposits with a term of more than ninety (90) days); (iii) shares of money market, mutual or similar funds having assets in excess of $100,000,000 and at least 95% of the investments of which are limited to investment grade securities (i.e., securities rated at least Baa by Moody’s Investors Service, Inc. or at least BBB by Standard & Poor’s Ratings Group); and (iv) commercial paper of United States and foreign banks and bank holding companies and their subsidiaries and United States and foreign finance, commercial industrial or utility companies which, at the time of acquisition, are rated A-1 (or better) by Standard & Poor’s Ratings Group or P-1 by Moody’s Investors Service, Inc.; provided that the maturities of such Cash Equivalents described in the foregoing clauses (i) through (iv) shall not exceed 365 days; (v) repurchase obligations of any commercial bank organized under the laws of the United States, any state thereof, the District of Columbia, any foreign bank, or its branches or agencies having a term not more than thirty (30) days, with respect to securities issued or fully guaranteed or insured by the United States government; (vi) securities with maturities of one year or less from the date of acquisition issued or fully guaranteed by any state, commonwealth, territory, political subdivision, taxing authority or by any foreign government, the securities of which state, commonwealth, territory, political subdivision, taxing authority or foreign government (as the case may be) are rated at least BBB by Standard & Poor’s Ratings Group or at least Baa by Moody’s Investors Service, Inc.; (vii) securities with maturities of one year or less from the date of acquisition backed by standby letters of credit issued by any commercial bank organized under the laws of the United States, any state thereof or the District of Columbia (which commercial bank shall have a short-term debt rating of A-1 (or better) by Standard & Poor’s Ratings Group or P-1 by Moody’s Investors Service, Inc.), or by any foreign bank (which foreign bank shall have a rating of B or better from Thomson BankWatch Global Issuer Rating or, if not rated by Thomson BankWatch Global Issuer Rating, which foreign bank shall be an institution acceptable to the Administrative Agent), or its branches or agencies; or (viii) shares of money market mutual or similar funds at least 95% of the assets of which are invested in the types of investments satisfying the requirements of clauses (i) through (vii) of this definition. 

"Change" is defined in Section 4.2 hereof. 

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

(i) any "person" or "group" (within the meaning of Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934) becomes the "beneficial owner" (as defined in Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of thirty percent (30%) or more of the voting power of the then outstanding Capital Stock of the Borrower entitled to vote generally in the election of the directors of the Borrower; 

(ii) during any period of 12 consecutive calendar months, the board of directors of the Borrower shall cease to have as a majority of its members individuals who either: 

	 
	 	4	 
	

	 

 

(a) were directors of the Borrower on the first day of such period, or 

(b) were elected or nominated for election to the board of directors of the Borrower at the recommendation of or other approval by at least a majority of the directors then still in office at the time of such election or nomination who were directors of the Borrower on the first day of such period, or whose election or nomination for election was so approved; 

(iii) other than as a result of a transaction not prohibited under the terms of this Agreement, the Borrower (a) shall cease to own, of record and beneficially, with sole voting and dispositive power, 100% of the outstanding shares of Capital Stock of each of the Subsidiary Guarantors or (b) shall cease to have the power, directly or indirectly, to elect all of the members of the board of directors of each of the Subsidiary Guarantors; or 

(iv) the Borrower consolidates with or merges into another corporation or conveys, transfers or leases all or substantially all of its property to any Person, or any corporation consolidates with or merges into the Borrower, in either event pursuant to a transaction in which the outstanding Capital Stock of the Borrower is reclassified or changed into or exchanged for cash, securities or other property. 

"Citibank" means, Citibank, N.A., in its individual capacity, and its successors. 

"Closing Date" means the date of this Agreement. 

"Code" means the Internal Revenue Code of 1986, as amended, reformed or otherwise modified from time to time. 

"Commission" means the Securities and Exchange Commission of the United States of America and any Person succeeding to the functions thereof. 

"Consolidated Assets" means the total assets of the Borrower and its Subsidiaries on a consolidated basis. 

"Consolidated Domestic Assets" means the total assets of the Borrower and each of its consolidated Subsidiaries that is incorporated under the laws of any jurisdiction in the United States. 

"Consolidated Net Worth" means, as of any date, all amounts which would be included under shareholders’ equity (including capital stock, additional paid-in capital and retained earnings) on the consolidated balance sheet for the Borrower and its consolidated Subsidiaries determined in accordance with Agreement Accounting Principles. 

"Consolidated Total Capitalization" means, as of any date, the sum of (i) Indebtedness of the Borrower and its consolidated Subsidiaries and (ii) Consolidated Net Worth, all determined in accordance with Agreement Accounting Principles. 

"Contaminant" means any waste, pollutant, hazardous substance, toxic substance, hazardous waste, special waste, petroleum or petroleum-derived substance or waste, asbestos or

	 
	 	5	 
	

	 

 

polychlorinated biphenyls ("PCBs"), and includes but is not limited to these terms as defined in Environmental, Health or Safety Requirements of Law. 

"Contingent Obligation", as applied to any Person, means any Contractual Obligation, contingent or otherwise, of that Person with respect to any Indebtedness of another or other obligation or liability of another, including, without limitation, any such Indebtedness, obligation or liability of another directly or indirectly guaranteed, endorsed (otherwise than for collection or deposit in the ordinary course of business), co-made or discounted or sold with recourse by that Person, or in respect of which that Person is otherwise directly or indirectly liable, including Contractual Obligations (contingent or otherwise) arising through any agreement to purchase, repurchase, or otherwise acquire such Indebtedness, obligation or liability or any security therefor, or to provide funds for the payment or discharge thereof (whether in the form of loans, advances, stock purchases, capital contributions or otherwise), or to maintain solvency, assets, level of income, or other financial condition, or to make payment other than for value received. The amount of any Contingent Obligation shall be equal to the present value of the portion of the obligation so guaranteed or otherwise supported, in the case of known recurring obligations, and the maximum reasonably anticipated liability in respect of the portion of the obligation so guaranteed or otherwise supported assuming such Person is required to perform thereunder, in all other cases. 

"Contractual Obligation", as applied to any Person, means any provision of any equity or debt securities issued by that Person or any indenture, mortgage, deed of trust, security agreement, pledge agreement, guaranty, contract, undertaking, agreement or instrument, in any case in writing, to which that Person is a party or by which it or any of its properties is bound, or to which it or any of its properties is subject. Without in any way limiting the foregoing, as used with respect to the Borrower or any of its Subsidiaries, Contractual Obligations shall include, without limitation, the Financing Facilities and any instruments, documents or agreements executed or delivered in connection therewith by which the Borrower or such Subsidiaries are bound. 

"Controlled Group" means the group consisting of (i) any corporation which is a member of the same controlled group of corporations (within the meaning of Section 414(b) of the Code) as the Borrower; (ii) a partnership or other trade or business (whether or not incorporated) which is under common control (within the meaning of Section 414(c) of the Code) with the Borrower; and (iii) a member of the same affiliated service group (within the meaning of Section 414(m) of the Code) as the Borrower, any corporation described in clause (i) above or any partnership or trade or business described in clause (ii) above. 

"Cure Loan" is defined in Section 9.2(iii) hereof. 

"Customary Permitted Liens" means: 

(i) Liens (other than Environmental Liens and Liens in favor of the IRS or the PBGC or any Plan) with respect to the payment of taxes, assessments or governmental charges in all cases which are not yet due or (if foreclosure, distraint, sale or other similar proceedings shall not have been commenced or any such proceeding after being commenced is stayed) which are being contested in good faith by appropriate

 

	 
	 	6	 
	

	 

 

proceedings properly instituted and diligently conducted and with respect to which adequate reserves or other appropriate provisions are being maintained as may be required in accordance with Agreement Accounting Principles; 

(ii) statutory Liens of landlords and Liens of suppliers, mechanics, carriers, materialmen, warehousemen or workmen and other similar Liens imposed by law created in the ordinary course of business for amounts not yet due or which are being contested in good faith by appropriate proceedings properly instituted and diligently conducted and with respect to which adequate reserves or other appropriate provisions are being maintained as may be required in accordance with Agreement Accounting Principles; 

(iii) Liens (other than Environmental Liens and Liens in favor of the IRS or the PBGC or any Plan) incurred or deposits made in the ordinary course of business in connection with workers’ compensation, unemployment insurance or other types of social security benefits or to secure the performance of bids, tenders, sales, contracts (other than for the repayment of borrowed money), surety, appeal and performance bonds; provided that (A) all such Liens do not in the aggregate materially detract from the value of the Borrower’s or such Subsidiary’s assets or property taken as a whole or materially impair the use thereof in the operation of the Borrower’s or such Subsidiary’s businesses taken as a whole, and (B) all Liens securing bonds to stay judgments or in connection with appeals do not secure at any time an aggregate amount exceeding $30,000,000; 

(iv) Liens arising with respect to zoning restrictions, easements, licenses, reservations, covenants, rights-of-way, utility easements, building restrictions and other similar charges or encumbrances on the use of real property which do not in any case materially detract from the value of the property subject thereto or interfere with the ordinary conduct of the business of the Borrower or any of its Subsidiaries; 

(v) Liens of attachment or judgment with respect to judgments, writs or warrants of attachment, or similar process against the Borrower or any of its Subsidiaries which do not constitute a Default under Section 8.1(H) hereof; 

(vi) any interest or title of the lessor in the property subject to any operating lease entered into by the Borrower or any of its Subsidiaries in the ordinary course of business; and 

(vii) Liens of commercial depository institutions arising in the ordinary course of business constituting a statutory or common law right of setoff against amounts on deposit with any such institution. 

"Default" means an event described in Article VIII hereof. 

"Disclosed Litigation" is defined in Section 6.7 hereof. 

"Disqualified Stock" means any preferred stock and any Capital Stock that, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable), or upon the happening of any event, matures or is mandatorily redeemable, pursuant to a sinking

 

	 
	 	7	 
	

	 

 

fund obligation or otherwise, or redeemable at the option of the holder thereof, in whole or in part, on or prior to the date that is 91 days after the Revolving Loan Termination Date. 

"DOL" means the United States Department of Labor and any Person succeeding to the functions thereof. 

"Dollar" and "$" means dollars in the lawful currency of the United States. 

"EBIT" means, for any period, on a consolidated basis for the Borrower and its Subsidiaries, the sum of the amounts for such period, without duplication, of (i) Net Income, plus (ii) Interest Expense to the extent deducted in computing Net Income, plus (iii) charges against income for foreign, federal, state and local taxes to the extent deducted in computing Net Income, plus (iv) non-cash charges (except any non-cash charges that require accrual of a reserve for anticipated future cash payments for any period) to the extent deducted in computing Net Income, plus (v) other extraordinary non-cash charges to the extent deducted in computing Net Income, minus (vi) extraordinary gains to the extent added in computing Net Income. 

"EBITDA" means, for any period, on a consolidated basis for the Borrower and its Subsidiaries, the sum of the amounts for such period, without duplication, of (i) EBIT, plus (ii) depreciation expense to the extent deducted in computing Net Income, plus (iii) amortization expense, including, without limitation, amortization of goodwill and other intangible assets, to the extent deducted in computing Net Income. 

"Environmental, Health or Safety Requirements of Law" means all applicable foreign, federal, state and local laws or regulations relating to or addressing pollution or protection of the environment, or protection of worker health or safety, including, but not limited to, the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9601 et seq., the Occupational Safety and Health Act of 1970, 29 U.S.C. § 651 et seq., and the Resource Conservation and Recovery Act of 1976, 42 U.S.C. § 6901 et seq., in each case including any amendments thereto, any successor statutes, and any regulations promulgated thereunder, and any state or local equivalent thereof. 

"Environmental Lien" means a lien in favor of any Governmental Authority for (a) any liability under Environmental, Health or Safety Requirements of Law, or (b) damages arising from, or costs incurred by such Governmental Authority in response to, a Release or threatened Release of a Contaminant into the environment. 

"Environmental Property Transfer Act" means any applicable requirement of law that conditions, restricts, prohibits or requires any notification or disclosure triggered by the closure of any property or the transfer, sale or lease of any property or deed or title for any property for environmental reasons, including, but not limited to, any so-called "Industrial Site Recovery Act" or "Responsible Property Transfer Act." 

"Equipment" means all of the Borrower’s and its Subsidiaries’ present and future (i) equipment, including, without limitation, machinery, manufacturing, distribution, selling, data processing and office equipment, assembly systems, tools, molds, dies, fixtures, appliances, furniture, furnishings, vehicles, vessels, aircraft, aircraft engines, and trade fixtures, (ii) other tangible personal property (other than the Borrower’s or Subsidiary’s Inventory), and (iii) any

 

	 
	 	8	 
	

	 

 

and all accessions, parts and appurtenances attached to any of the foregoing or used in connection therewith, and any substitutions therefor and replacements, products and proceeds thereof. 

"Equity Interests" means Capital Stock and all warrants, options or other rights to acquire Capital Stock (but excluding any debt security that is convertible into, or exchangeable for, Capital Stock). 

"ERISA" means the Employee Retirement Income Security Act of 1974, as amended from time to time, including (unless the context otherwise requires) any rules or regulations promulgated thereunder. 

"Eurodollar Base Rate" means, with respect to a Eurodollar Rate Advance for the relevant Interest Period, the applicable British Bankers’ Association LIBOR rate for deposits in Dollars as reported by any generally recognized financial information service as of 11:00 a.m. (London time) two (2) Business Days prior to the first day of such Interest Period, and having a maturity equal to such Interest Period, provided that, if no such British Bankers’ Association LIBOR rate is available to the Administrative Agent, the applicable Eurodollar Base Rate for the relevant Interest Period shall instead be the rate determined by the Administrative Agent to be the rate at which Bank One or one of its Affiliate banks offers to place deposits in Dollars with first-class banks in the London interbank market at approximately 11:00 a.m. (London time) two (2) Business Days prior to the first day of such Interest Period, in the approximate amount of Bank One’s relevant Eurodollar Rate Loan and having a maturity equal to such Interest Period. 

"Eurodollar Rate" means, with respect to a Eurodollar Rate Advance for the relevant Interest Period, the sum of (i) the quotient of (a) the Eurodollar Base Rate applicable to such Interest Period, divided by (b) one minus the Reserve Requirement (expressed as a decimal) applicable to such Interest Period plus (ii) the then Applicable Margin; provided, however, that the foregoing adjustment for Reserve Requirements shall only be made with respect to that portion of a Eurodollar Rate Loan made by a Lender which is subject to such Reserve Requirements. 

"Eurodollar Rate Advance" means an Advance which bears interest at the Eurodollar Rate. 

"Eurodollar Rate Loan" means a Loan, or portion thereof, which bears interest at the Eurodollar Rate. 

"Excluded Taxes" means, in the case of each Lender or applicable Lending Installation and the Administrative Agent, taxes imposed on its overall net income, and franchise taxes imposed on it, by (i) the jurisdiction under the laws of which such Lender or the Administrative Agent is incorporated or organized or (ii) the jurisdiction in which the Administrative Agent’s or such Lender’s principal executive office or such Lender’s applicable Lending Installation is located. 

"Existing Bridge Credit Agreement" means that certain 364-Day Bridge Term Loan Credit Agreement, dated as of January 17, 2003, among the Borrower, the institutions from time to time parties thereto as lenders, Bank One, as the administrative agent and Bank of America,

 

	 
	 	9	 
	

	 

 

N.A., as the syndication agent, as amended by Amendment No. 1 thereto dated as of January 24, 2003 and by Amendment No. 2 thereto dated as of March 24, 2003. 

"Existing Credit Agreements" means, collectively, the Existing Bridge Credit Agreement, the Existing 5-Year Credit Agreement and the Existing 364-Day Credit Agreement. 

"Existing 5-Year Credit Agreement" means that certain 5-Year Revolving Credit Agreement, dated as of March 30, 2000, among the Borrower (as the successor by assignment and assumption to Ralston Purina Company), the institutions from time to time parties thereto as lenders, Bank One, as the administrative agent, Bank of America, N.A., as the syndication agent, and Wachovia Bank, National Association (formerly known as Wachovia Bank, N.A.), as the documentation agent, as amended by Amendment No. 1 thereto dated as of March 24, 2003. 

"Existing 364-Day Credit Agreement" means that certain 364-Day Credit Agreement, dated as of March 30, 2000, among the Borrower (as the successor by assignment and assumption to Ralston Purina Company), the institutions from time to time parties thereto as lenders, Bank One, as the administrative agent, Bank of America, N.A., as the syndication agent, and Wachovia Bank, National Association (formerly known as Wachovia Bank, N.A.), as the documentation agent, as the same has been amended and restated pursuant to the Amendment and Restatement of 364-Day Credit Agreement dated as of March 29, 2001, by the Second Amendment and Restatement of 364-Day Credit Agreement dated as of March 28, 2002 and by the Third Amendment and Restatement of 364-Day Credit Agreement dated as of March 24, 2003. 

"Facility Fee" is defined in Section 2.14(C)(i) hereof. 

"Federal Funds Effective Rate" means, for any day, an interest 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 for such day (or, if such day is not a Business Day, for the immediately preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations at approximately 10:00 a.m. (Chicago time) on such day on such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by the Administrative Agent in its reasonable discretion. 

"Financing Facilities" means the Receivables Purchase Facility, the Senior Notes and the Singapore Credit Facility. 

"Floating Rate Advance" means an Advance which bears interest by reference to the Alternate Base Rate. 

"Floating Rate Loan" means a Loan, or portion thereof, which bears interest by reference to the Alternate Base Rate. 

"Foreign Employee Benefit Plan" means any employee benefit plan as defined in Section 3(3) of ERISA which is maintained or contributed to for the benefit of the employees of the Borrower or any member of the Controlled Group, but which is not covered by ERISA pursuant to Section 4(b)(4) of ERISA. 

	 
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"Foreign Pension Plan" means any employee pension benefit plan (as defined in Section 3(2) of ERISA) which (i) is maintained or contributed to for the benefit of employees of the Borrower or any other member of the Controlled Group, (ii) is not covered by ERISA pursuant to Section 4(b)(4) thereof and (iii) under applicable local law, is required to be funded through a trust or other funding vehicle. 

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

"Governmental Acts" is defined in Section 3.10(A) hereof. 

"Governmental Authority" means any nation or government, any federal, state, local or other political subdivision thereof and any entity exercising executive, legislative, judicial, regulatory or administrative authority or functions of or pertaining to government, including any authority or other quasi-governmental entity established to perform any of such functions. 

"Hedging Arrangements" is defined in the definition of "Hedging Obligations" below. 

"Hedging Agreements" means Hedging Arrangements permitted under Section 7.3(O) that are entered into by the Borrower and any Lender or any affiliate of any Lender. 

"Hedging Obligations" of a Person means any and all obligations of such Person, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions therefor), under (i) any and all agreements, devices or arrangements designed to protect at least one of the parties thereto from the fluctuations of interest rates, commodity prices, exchange rates or forward rates applicable to such party’s assets, liabilities or exchange transactions, including, but not limited to, dollar-denominated or cross-currency interest rate exchange agreements, forward currency exchange agreements, interest rate cap or collar protection agreements, forward rate currency or interest rate options, puts and warrants or any similar derivative transactions ("Hedging Arrangements"), and (ii) any and all cancellations, buy backs, reversals, terminations or assignments of any of the foregoing. 

"Holders of Obligations" means the holders of the Obligations from time to time and the holders of the Hedging Obligations arising from time to time under Hedging Agreements and shall include their respective successors, transferees and assigns. 

"Indebtedness" of any Person means, without duplication, such Person’s (a) obligations for borrowed money, (b) obligations representing the deferred purchase price of property or services (other than accounts payable arising in the ordinary course of such Person’s business payable on terms customary in the trade), which purchase price is due more than six (6) months from the date of incurrence of the obligation in respect thereof, provided that the related obligations are not interest bearing, (c) obligations, whether or not assumed, secured by Liens or payable out of the proceeds or production from property or assets now or hereafter owned or acquired by such Person, (d) obligations which are evidenced by notes, acceptances or other instruments, (e) Capitalized Lease Obligations, (f) Contingent Obligations in respect of Indebtedness, (g) obligations with respect to letters of credit, (h) Off-Balance Sheet Liabilities,

 

	 
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(i) Receivables Facility Attributed Indebtedness and (j) Disqualified Stock. The amount of Indebtedness of any Person at any date shall be without duplication (1) the outstanding balance at such date of all unconditional obligations as described above and the maximum liability of any such Contingent Obligations at such date and (2) in the case of Indebtedness of others secured by a Lien to which the property or assets owned or held by such Person is subject, the lesser of the fair market value at such date of any asset subject to a Lien securing the Indebtedness of others and the amount of the Indebtedness secured. 

"Indemnified Matters" is defined in Section 10.7(B) hereof. 

"Indemnitees" is defined in Section 10.7(B) hereof. 

"Initial Fee Letters" means (i) that certain letter agreement dated May 5, 2003 among the Arrangers and the Borrower and (ii) that certain letter agreement dated May 5, 2003 between the Administrative Agent and the Borrower, in each case, as the same may be amended, restated, supplemented or otherwise modified from time to time. 

"Initial Funding Date" means the date on which the initial Revolving Loans are advanced and Letters of Credit are issued or deemed issued hereunder. 

"Insolvency Event" is defined in Section 10.14 hereof. 

"Intercompany Indebtedness" is defined in Section 10.14 hereof. 

"Interest Expense" means, for any period, the total interest expense of the Borrower and its consolidated Subsidiaries, whether paid or accrued, including, without duplication, Off-Balance Sheet Liabilities (including Receivables Facility Financing Costs) and the interest component of Capitalized Leases, all as determined in conformity with Agreement Accounting Principles. 

"Interest Expense Coverage Ratio" is defined in Section 7.4(B) hereof. 

"Interest Period" means, with respect to a Eurodollar Rate Loan, a period of one (1), two (2), three (3) or six (6) months and, to the extent available to all of the Lenders, nine (9) or twelve (12) months, or any other period agreed to between the Borrower and the Administrative Agent (acting on the instructions of all of the Lenders), commencing on a Business Day selected by the Borrower on which a Eurodollar Rate Advance is made to Borrower pursuant to this Agreement. Such Interest Period shall end on (but exclude) the day which corresponds numerically to such date one, two, three, six, nine or twelve months (or such other period) thereafter; provided, however, that if there is no such numerically corresponding day in such next, second, third, sixth, ninth or twelfth succeeding month (or other period), such Interest Period shall end on the last Business Day of such next, second, third, sixth, ninth or twelfth succeeding month (or other period). If an Interest Period would otherwise end on a day which is not a Business Day, such Interest Period shall end on the next succeeding Business Day, provided, however, that if said next succeeding Business Day falls in a new calendar month, such Interest Period shall end on the immediately preceding Business Day. 

	 
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"Inventory" shall mean any and all goods, including, without limitation, goods in transit, wheresoever located, whether now owned or hereafter acquired by the Borrower or any of its Subsidiaries, which are held for sale or lease, furnished under any contract of service or held as raw materials, work in process or supplies, and all materials used or consumed in the business of Borrower or any of its Subsidiaries, and shall include all right, title and interest of the Borrower or any of its Subsidiaries in any property the sale or other disposition of which has given rise to Receivables and which has been returned to or repossessed or stopped in transit by the Borrower or any of its Subsidiaries. 

"Investment" means, with respect to any Person, (i) any purchase or other acquisition by that Person of any Indebtedness, Equity Interests or other securities, or of a beneficial interest in any Indebtedness, Equity Interests or other securities, issued by any other Person, (ii) any purchase by that Person of all or substantially all of the assets of a business conducted by another Person, and (iii) any loan, advance (other than deposits with financial institutions available for withdrawal on demand, prepaid expenses, accounts receivable, advances to employees and similar items made or incurred in the ordinary course of business) or capital contribution by that Person to any other Person, including all Indebtedness to such Person arising from a sale of property by such Person other than in the ordinary course of its business. 

"IRS" means the Internal Revenue Service and any Person succeeding to the functions thereof. 

"Issuing Bank(s)" means (i) Bank One in its separate capacity as an issuer of Letters of Credit pursuant to Section 3.1 or 3.2 hereunder with respect to each Letter of Credit issued or deemed issued by Bank One upon the Borrower’s request and (ii) any Lender (other than Bank One) reasonably acceptable to the Administrative Agent, in such Lender’s separate capacity as an issuer of Letters of Credit pursuant to Section 3.1 hereunder with respect to any and all Letters of Credit issued by such Lender in its sole discretion upon the Borrower’s request. All references contained in this Agreement and the other Loan Documents to the "Issuing Bank" shall be deemed to apply equally to each of the institutions referred to in clauses (i) and (ii) of this definition in their respective capacities as issuers of any and all Letters of Credit issued by each such institution. 

"L/C Documents" is defined in Section 3.4 hereof. 

"L/C Draft" means a draft drawn on an Issuing Bank pursuant to a Letter of Credit. 

"L/C Interest" shall have the meaning ascribed to such term in Section 3.6 hereof. 

"L/C Obligations" means, without duplication, an amount equal to the sum of (i) the aggregate of the amount then available for drawing under each of the Letters of Credit, (ii) the face amount of all outstanding L/C Drafts corresponding to the Letters of Credit, which L/C Drafts have been accepted by an Issuing Bank, (iii) the aggregate outstanding amount of all Reimbursement Obligations at such time and (iv) the aggregate face amount of all Letters of Credit requested by the Borrower but not yet issued (unless the request for an unissued Letter of Credit has been denied). 

	 
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"Lenders " means the lending institutions listed on the signature pages of this Agreement and their respective successors and assigns. 

"Lending Installation" means, with respect to a Lender or the Administrative Agent, any office, branch, subsidiary or affiliate of such Lender or the Administrative Agent. 

"Letter of Credit" means the standby letters of credit (a) to be issued by an Issuing Bank pursuant to Section 3.1 hereof or (b) deemed issued by the Issuing Bank pursuant to Section 3.2 hereof. 

"Leverage Ratio" is defined in Section 7.4(A) hereof. 

"Lien" means any lien (statutory or other), mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance or preference, priority or security agreement or preferential arrangement of any kind or nature whatsoever (including, without limitation, the interest of a vendor or lessor under any conditional sale, Capitalized Lease or other title retention agreement). 

"Loan(s)" means, with respect to a Lender, such Lender’s portion of any Advance made pursuant to Section 2.1 hereof, and in the case of the Swing Line Bank, any Swing Line Loan made pursuant to Section 2.2 hereof, and collectively, all Revolving Loans and Swing Line Loans, whether made or continued as or converted to Floating Rate Loans or Eurodollar Rate Loans. 

"Loan Account" is defined in Section 2.12(a) hereof. 

"Loan Documents" means this Agreement, the Subsidiary Guaranty, any promissory notes issued pursuant to Section 2.12, the L/C Documents and all other documents, instruments and agreements executed in connection therewith or contemplated thereby, as the same may be amended, restated or otherwise modified and in effect from time to time. 

"Loan Parties" is defined in Section 5.1 hereof. 

"Margin Stock" shall have the meaning ascribed to such term in Regulation U. 

"Material Adverse Effect" means a material adverse effect upon (a) the business, condition (financial or otherwise), operations, performance, properties or prospects of the Borrower and its Subsidiaries, taken as a whole, (b) the ability of the Borrower and its Subsidiaries, taken as a whole, to perform their obligations under the Loan Documents in any material respect, or (c) the ability of the Lenders, the Issuing Banks or the Administrative Agent to enforce in any material respect the Obligations. 

"Material Domestic Subsidiary" means each consolidated Subsidiary (other than any SPV) of the Borrower (a) incorporated under the laws of any jurisdiction in the United States and (b) the total assets of which exceed, as at the end of any calendar quarter or, in the case of consummation of a Permitted Acquisition, at the time of consummation of such Permitted Acquisition (calculated by the Borrower on a pro forma basis taking into account the consummation of such Permitted Acquisition), three percent (3.0%) of the Consolidated Domestic Assets of the Borrower and its consolidated Subsidiaries (other than SPVs). 

	 
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"Material Foreign Subsidiary" means each consolidated Subsidiary (other than any SPV) of the Borrower (a) incorporated or organized under the laws of any foreign jurisdiction and (b) the total assets of which exceed, as at the end of any calendar quarter or, in the case of consummation of a Permitted Acquisition, at the time of consummation of such Permitted Acquisition (calculated by the Borrower on a pro forma basis taking into account the consummation of such Permitted Acquisition), five percent (5.0%) of the Consolidated Assets of the Borrower and its consolidated Subsidiaries (other than SPVs). 

"Material Indebtedness" means (a) any Indebtedness evidenced by the Financing Facilities or (b) any other Indebtedness (other than the Indebtedness hereunder) of a single class with an aggregate outstanding principal amount equal to or greater than $30,000,000. 

"Material Subsidiaries" means each of the Borrower’s Material Domestic Subsidiaries and Material Foreign Subsidiaries. 

"Multiemployer Plan" means a "multiemployer plan" as defined in Section 4001(a)(3) of ERISA which is, or within the immediately preceding six (6) years was, contributed to by either the Borrower or any member of the Controlled Group. 

"Net Income" means, for any period, the net earnings (or loss) after taxes of the Borrower and its Subsidiaries on a consolidated basis for such period taken as a single accounting period determined in conformity with Agreement Accounting Principles. 

"New Subsidiary" is defined in Section 7.3(F). 

"Non-ERISA Commitments" means 

(i) each pension, medical, dental, life, accident insurance, disability, group insurance, sick leave, profit sharing, deferred compensation, bonus, stock option, stock purchase, retirement, savings, severance, stock ownership, performance, incentive, hospitalization or other insurance, or other welfare, benefit or fringe benefit plan, policy, trust, understanding or arrangement of any kind; and 

(ii) each employee collective bargaining agreement and each agreement, understanding or arrangement of any kind, with or for the benefit of any present or prior officer, director, employee or consultant (including, without limitation, each employment, compensation, deferred compensation, severance or consulting agreement or arrangement and any agreement or arrangement associated with a change in ownership of the Borrower or any member of the Controlled Group); 

to which the Borrower or any member of the Controlled Group is a party or with respect to which the Borrower or any member of the Controlled Group is or will be required to make any payment other than any Plans. 

"Non Pro Rata Loan" is defined in Section 9.2 hereof. 

"Non-U.S. Lender" is defined in Section 4.5(iv) hereof. 

	 
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"Notice of Assignment" is defined in Section 13.3(B) hereof. 

"Obligations" means all Loans, L/C Obligations, advances, debts, liabilities, obligations, covenants and duties owing by the Borrower or any of its Subsidiaries to the Administrative Agent, any Lender, the Swing Line Bank, the Arrangers, any Affiliate of the Administrative Agent or any Lender, the Issuing Banks or any Indemnitee, of any kind or nature, present or future, arising under this Agreement, the L/C Documents or any other Loan Document, whether or not evidenced by any note, guaranty or other instrument, whether or not for the payment of money, whether arising by reason of an extension of credit, loan, guaranty, indemnification, or in any other manner, whether direct or indirect (including those acquired by assignment), absolute or contingent, due or to become due, now existing or hereafter arising and however acquired. The term includes, without limitation, all interest, charges, expenses, fees, reasonable attorneys’ fees and disbursements, reasonable paralegals’ fees (and, after the occurrence and during the continuance of a Default, all attorney’s fees and disbursements and paralegals’ fees, whether or not reasonable), and any other sum chargeable to the Borrower or any of its Subsidiaries under this Agreement or any other Loan Document. 

"Off-Balance Sheet Liabilities" of a Person means, without duplication, (a) any Receivables Facility Attributed Indebtedness and repurchase obligation or liability of such Person or any of its Subsidiaries with respect to Receivables or notes receivable sold by such Person or any of its Subsidiaries (calculated to include the unrecovered investment of purchasers or transferees of Receivables or notes receivable or any other obligation of the Borrower or such transferor to purchasers/transferees of interests in Receivables or notes receivables or the agent for such purchasers/transferees), (b) any liability under any sale and leaseback transactions which do not create a liability on the consolidated balance sheet of such Person, (c) any liability under any financing lease or so-called "synthetic" lease transaction, or (d) any obligations arising with respect to any other transaction which is the functional equivalent of or takes the place of borrowing but which does not constitute a liability on the consolidated balance sheets of such Person and its Subsidiaries. 

"Originators" means the Borrower and/or any of its Subsidiaries in their respective capacities as parties to any Receivables Purchase Documents, as sellers or transferors of any Receivables and Related Security in connection with a Permitted Receivables Transfer. 

"Other Taxes" is defined in Section 4.5 hereof. 

"Participants" is defined in Section 13.2(A) hereof. 

"Payment Date" means the last day of each March, June, September and December. 

"PBGC" means the Pension Benefit Guaranty Corporation, or any successor thereto. 

"Permitted Acquisition" is defined in Section 7.3(F) hereof. 

"Permitted Existing Contingent Obligations" means the Contingent Obligations of the Borrower and its Subsidiaries as of the Closing Date identified on Schedule 1.1.3 to this Agreement. 

	 
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"Permitted Existing Investments" means the Investments of the Borrower and its Subsidiaries as of the Closing Date identified on Schedule 1.1.1 to this Agreement. 

"Permitted Existing Liens" means the Liens on assets of the Borrower and its Subsidiaries as of the Closing Date identified on Schedule 1.1.2 to this Agreement. 

"Permitted Receivables Transfer" means (i) a sale or other transfer by an Originator to a SPV of Receivables and Related Security for fair market value and without recourse (except for limited recourse typical of such structured finance transactions), and/or (ii) a sale or other transfer by a SPV to (a) purchasers of or other investors in such Receivables and Related Security or (b) any other Person (including a SPV) in a transaction in which purchasers or other investors purchase or are otherwise transferred such Receivables and Related Security, in each case pursuant to and in accordance with the terms of the Receivables Purchase Documents. 

"Person" means any individual, corporation, firm, enterprise, partnership, trust, incorporated or unincorporated association, joint venture, joint stock company, limited liability company or other entity of any kind, or any government or political subdivision or any agency, department or instrumentality thereof. 

"Plan" means an employee benefit plan defined in Section 3(3) of ERISA in respect of which the Borrower or any member of the Controlled Group is, or within the immediately preceding six (6) years was, an "employer" as defined in Section 3(5) of ERISA. 

"Prime Rate" means a rate per annum equal to the prime rate of interest announced from time to time by Bank One or its parent (which is not necessarily the lowest rate charged to any customer), changing when and as said prime rate changes. 

"Pro Rata Share" means, with respect to any Lender, the percentage obtained by dividing (A) such Lender’s Revolving Loan Commitment at such time (in each case, as adjusted from time to time in accordance with the provisions of this Agreement) by (B) the Aggregate Revolving Loan Commitment at such time; provided, however, if all of the Revolving Loan Commitments are terminated pursuant to the terms of this Agreement, then "Pro Rata Share" means the percentage obtained by dividing (x) the sum of (A) such Lender’s Revolving Loans, plus (B) such Lender’s share of the obligations to purchase participations in Swing Line Loans and Letters of Credit, by (y) the sum of (A) the aggregate outstanding amount of Revolving Loans, plus (B) the aggregate outstanding amount of all Swing Line Loans and Letters of Credit. 

"Purchasers" is defined in Section 13.3(A) hereof. 

"Receivable(s)" means and includes all of the Borrower’s and its Subsidiaries’ presently existing and hereafter arising or acquired accounts, accounts receivable, and all present and future rights of the Borrower and its Subsidiaries to payment for goods sold or leased or for services rendered (except those evidenced by instruments or chattel paper), whether or not they have been earned by performance, and all rights in any merchandise or goods which any of the same may represent, and all rights, title, security and guaranties with respect to each of the foregoing, including, without limitation, any right of stoppage in transit. 

	 
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"Receivables and Related Security" means the Receivables and the related security and collections with respect thereto which are sold or transferred by any Originator or SPV in connection with any Permitted Receivables Transfer. 

"Receivables Facility Attributed Indebtedness" means the amount of obligations outstanding under a receivables purchase facility on any date of determination that would be characterized as principal if such facility were structured as a secured lending transaction rather than as a purchase. 

"Receivables Facility Financing Costs" means such portion of the cash fees, service charges, and other costs, as well as all collections or other amounts retained by purchasers of receivables pursuant to a receivables purchase facility, which are in excess of amounts paid to the Borrower and its consolidated Subsidiaries under any receivables purchase facility for the purchase of receivables pursuant to such facility and are the equivalent of the interest component of the financing if the transaction were characterized as an on-balance sheet transaction. 

"Receivables Purchase Documents" means (i) the 2000 Receivables Sale Agreement and (ii) the 2000 Receivables Purchase Agreement, or any other series of receivables purchase or sale agreements generally consistent with terms contained in comparable structured finance transactions pursuant to which an Originator or Originators sell or transfer to SPVs all of their respective right, title and interest in and to certain Receivables and Related Security for further sale or transfer to other purchasers of or investors in such assets (in any such case, together with the other documents, instruments and agreements executed in connection therewith), as any such agreements may be amended, restated, supplemented or otherwise modified from time to time, or any replacement or substitution therefor. 

"Receivables Purchase Facility" means the securitization facility made available to the Borrower, pursuant to which the Receivables and Related Security of the Originators are transferred to one or more SPVs, and thereafter to certain investors, pursuant to the terms and conditions of the Receivables Purchase Documents. 

"Register" is defined in Section 13.3(C) hereof. 

"Regulation D" means Regulation D of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor thereto or other regulation or official interpretation of said Board of Governors relating to reserve requirements applicable to member banks of the Federal Reserve System. 

"Regulation T" means Regulation T of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor or other regulation or official interpretation of said Board of Governors relating to the extension of credit by and to brokers and dealers of securities for the purpose of purchasing or carrying margin stock (as defined therein). 

"Regulation U" means Regulation U of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor or other regulation or official interpretation of said Board of Governors relating to the extension of credit by banks, non-banks and non-broker lenders for the purpose of purchasing or carrying Margin Stock applicable to member banks of the Federal Reserve System. 

	 
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"Regulation X" means Regulation X of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor or other regulation or official interpretation of said Board of Governors relating to the extension of credit by foreign lenders for the purpose of purchasing or carrying margin stock (as defined therein). 

"Reimbursement Obligation" is defined in Section 3.7 hereof. 

"Release" means any release, spill, emission, leaking, pumping, injection, deposit, disposal, discharge, dispersal, leaching or migration into the environment, including the movement of Contaminants through or in the air, soil, surface water or groundwater. 

"Replacement Lender" is defined in Section 2.19 hereof. 

"Reportable Event" means a reportable event as defined in Section 4043 of ERISA and the regulations issued under such section, with respect to a Plan, excluding, however, such events as to which the PBGC by regulation waived the requirement of Section 4043(a) of ERISA that it be notified within thirty (30) days after such event occurs. 

"Required Lenders" means Lenders whose Pro Rata Shares, in the aggregate, are greater than fifty percent (50%); provided, however, that, if any Lender shall have failed to fund its Pro Rata Share of (i) any Revolving Loan requested by the Borrower, (ii) any Revolving Loan required to be made in connection with reimbursement for any L/C Obligations or (iii) any Swing Line Loan as requested by the Administrative Agent, which such Lender is obligated to fund under the terms of this Agreement and any such failure has not been cured, then for so long as such failure continues, "Required Lenders" means Lenders (excluding all Lenders whose failure to fund their respective Pro Rata Shares of such Revolving Loans or Swing Line Loans has not been so cured) whose Pro Rata Shares represent greater than fifty percent (50%) of the aggregate Pro Rata Shares of such Lenders; provided further, however, that, if the Revolving Loan Commitments have been terminated pursuant to the terms of this Agreement, "Required Lenders" means Lenders (without regard to such Lenders’ performance of their respective obligations hereunder) whose aggregate ratable shares (stated as a percentage) of the aggregate outstanding principal balance of all Loans and L/C Obligations are greater than fifty percent (50%). 

"Requirements of Law" means, as to any Person, the charter and by-laws or other organizational or governing documents of such Person, and any law, rule or regulation, or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject including, without limitation, the Securities Act of 1933, the Securities Exchange Act of 1934, Regulations T, U and X, ERISA, the Fair Labor Standards Act, the Worker Adjustment and Retraining Notification Act, Americans with Disabilities Act of 1990, and any certificate of occupancy, zoning ordinance, building, environmental or land use requirement or permit or environmental, labor, employment, occupational safety or health law, rule or regulation, including Environmental, Health or Safety Requirements of Law. 

	 
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"Reserve Requirement" means, with respect to an Interest Period, the maximum aggregate reserve requirement (including all basic, supplemental, marginal and other reserves) which is imposed under Regulation D on "Eurocurrency liabilities". 

"Revolving Credit Availability" means, at any particular time, the amount by which the Aggregate Revolving Loan Commitment at such time exceeds the Revolving Credit Obligations outstanding at such time. 

"Revolving Credit Obligations" means, at any particular time, the sum of (i) the outstanding principal amount of the Revolving Loans at such time, plus (ii) the outstanding principal amount of the Swing Line Loans at such time, plus (iii) the outstanding L/C Obligations at such time. 

"Revolving Loan" is defined in Section 2.1 hereof. 

"Revolving Loan Commitment" means, for each Lender, the obligation of such Lender to make Revolving Loans and to purchase participations in Letters of Credit and to participate in Swing Line Loans not exceeding the amount set forth on Exhibit A to this Agreement opposite its name thereon under the heading "Revolving Loan Commitment" or in the Assignment Agreement by which it became a Lender, as such amount may be modified from time to time pursuant to the terms of this Agreement or to give effect to any applicable Assignment Agreement. 

"Revolving Loan Termination Date" means June 27, 2006. 

"Risk-Based Capital Guidelines" is defined in Section 4.2 hereof. 

"Schick Acquisition" means the acquisition by certain Subsidiaries of the Borrower of substantially all of the stock or assets constituting a division of Pfizer Inc., a Delaware corporation, on the terms and conditions set forth in that certain Stock and Asset Purchase Agreement dated as of January 20, 2003 by and between the Borrower and Pfizer, Inc., including all schedules and exhibits thereto, as the same has been amended, supplemented or otherwise modified. 

"Senior Management Team" means (a) each Authorized Officer, the chief executive officer, secretary or any other member of management of the Borrower and (b) any chief executive officer, president, vice president, chief financial officer, treasurer, secretary or any other member of management of any Subsidiary Guarantor. 

"Senior Note Purchase Agreements" means, collectively, the 2000 Note Purchase Agreement and the 2003 Note Purchase Agreement. 

"Senior Notes" means, collectively, the 2000 Senior Notes and the 2003 Senior Notes. 

"Singapore Credit Agreement" means that certain Facility Agreement, to be dated after the Closing Date, substantially in the form delivered to the Administrative Agent prior to the execution of this Agreement, with such changes prior to the effective date thereof as are acceptable to the Administrative Agent, among Energizer Asia Investments Pte. Ltd., a company

 

	 
	 	20	 
	

	 

 

organized under the laws of Singapore and a wholly-owned Subsidiary of the Borrower, as the borrower thereunder, the financial institutions from time to time parties thereto, arranged by Citigroup Global Markets Singapore Merchant Bank Ltd. and Standard Chartered Bank, with Citicorp Investment Bank (Singapore) Limited, as the agent, under which the financial institutions party thereto have committed to make loans and other extensions of credit to Energizer Asia Investments Pte. Ltd. in an original aggregate principal amount of $125,000,000 in Dollars and the U.S. Dollar equivalent (determined as of the effective date thereof) of $125,000,000 in Singapore Dollars, as the same may be amended, modified or supplemented from time to time in a manner that is not materially adverse to the interests of the Lenders. 

"Singapore Credit Facility" means the credit facility evidenced by the Singapore Credit Agreement, the Singapore Guarantees and the other instruments, documents and agreements executed or delivered in connection therewith. 

"Singapore Guarantees" means those certain guarantees of the Indebtedness and other obligations of the borrower under the Singapore Credit Agreement by each of the Borrower, Energizer Singapore Pte. Ltd., a company organized under the laws of Singapore, and Sonca Products Ltd., a company organized under the laws of Hong Kong, as the same may be amended, modified or supplemented from time to time in a manner that is not materially adverse to the interests of the Lenders. 

"Singapore Regional Group" means each of Energizer Asia Investments Pte. Ltd., a company organized under the laws of Singapore, Energizer Singapore Pte. Ltd., a company organized under the laws of Singapore, and Sonca Products Ltd., a company organized under the laws of Hong Kong. 

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

(i) the fair value of its assets (both at fair valuation and at present fair saleable value) is equal to or in excess of the total amount of its liabilities, including, without limitation, contingent liabilities; and 

(ii) it is then able and believes that it will be able to pay its debts as they mature; and 

(iii) it has capital sufficient to carry on its business as conducted and as proposed to be conducted. 

With respect to contingent liabilities (such as litigation and guarantees), such liabilities shall be computed at the amount which, in light of all the facts and circumstances existing at the time, represent the amount which can be reasonably be expected to become an actual or matured liability. 

	 
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"SPV" means any special purpose entity established for the purpose of purchasing receivables in connection with a receivables securitization transaction permitted under the terms of this Agreement. 

"Subsidiary" of a Person means (i) any corporation more than 50% of the outstanding securities having ordinary voting power of which shall at the time be owned or controlled, directly or indirectly, by such Person or by one or more of its Subsidiaries or by such Person and one or more of its Subsidiaries, or (ii) any partnership, limited liability company, association, joint venture or similar business organization more than 50% of the ownership interests having ordinary voting power of which shall at the time be so owned or controlled. Unless otherwise expressly provided, all references herein to a "Subsidiary" means a Subsidiary of the Borrower. 

"Subsidiary Guarantors" means (i) as of the Closing Date, all of the Borrower’s Material Domestic Subsidiaries; (ii) all New Subsidiaries which are Material Domestic Subsidiaries and which have satisfied the provisions of Section 7.2(K)(a); (iii) all of the Borrower’s Subsidiaries which become Material Domestic Subsidiaries and which have satisfied the provisions of S ection 7.2(K)(b); and (iv) all other domestic Subsidiaries which become Subsidiary Guarantors in satisfaction of the provisions of Section 7.2(K)(c)(i) or any Subsidiaries which become Subsidiary Guarantors in satisfaction of the provisions of Section 7.2(K)(c)(ii), in each case with respect to clauses (i) through (iv) above, other than the SPVs and together with their respective successors and assigns. 

"Subsidiary Guaranty" means that certain Guaranty dated as of the Closing Date, executed by the Subsidiary Guarantors in favor of the Administrative Agent, for the ratable benefit of the Lenders, the Swing Line Bank and the Issuing Banks, as it may be amended, modified, supplemented and/or restated (including to add new Subsidiary Guarantors), and as in effect from time to time. 

"Supplement" shall have the meaning set forth in Section 7.2(K). 

"Swing Line Bank" means Bank One pursuant to the terms hereof. 

"Swing Line Commitment" means the commitment of the Swing Line Bank, in its discretion, to make Swing Line Loans up to a maximum principal amount of $10,000,000 at any one time outstanding. 

"Swing Line Loan" means a Loan made available to the Borrower by the Swing Line Bank pursuant to Section 2.2 hereof. 

"Taxes" means any and all present or future taxes, duties, levies, imposts, deductions, charges or withholdings, and any and all liabilities with respect to the foregoing, but excluding Excluded Taxes. 

"Termination Date" means the earliest of (a) the Revolving Loan Termination Date and (b) the date of termination in whole of the Aggregate Revolving Loan Commitment pursuant to Section 2.5 hereof or the Revolving Loan Commitments pursuant to Section 9.1 hereof. 

	 
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"Termination Event" means (i) a Reportable Event with respect to any Benefit Plan; (ii) the withdrawal of the Borrower or any member of the Controlled Group from a Benefit Plan during a plan year in which the Borrower or such Controlled Group member was a "substantial employer" as defined in Section 4001(a)(2) of ERISA with respect to such plan; (iii) the imposition of an obligation under Section 4041 of ERISA to provide affected parties written notice of intent to terminate a Benefit Plan in a distress termination described in Section 4041(c) of ERISA; (iv) the institution by the PBGC or any foreign governmental authority of proceedings to terminate or appoint a trustee to administer a Benefit Plan or Foreign Pension Plan; (v) any event or condition which might constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Benefit Plan; or (vi) the partial or complete withdrawal of the Borrower or any member of the Controlled Group from a Multiemployer Plan. 

"Transferee" is defined in Section 13.5 hereof. 

"Transitional Letters of Credit" is defined in Section 3.2 hereof. 

"2000 Note Purchase Agreement" means that certain Note Purchase Agreement dated as of April 1, 2000 among the Borrower and the "Purchasers" referred to therein, under which the Borrower has issued senior unsecured notes in the aggregate principal amount of $175,000,000 (the "2000 Senior Notes"), which shall be pari passu  with the Obligations hereunder and the Hedging Obligations, as such Note Purchase Agreement may be amended, modified or supplemented from time to time in a manner that is not materially adverse to the interests of the Lenders. 

"2000 Receivables Purchase Agreement" means that certain Receivables Purchase Agreement, dated as of April 4, 2000, as amended, extended or replaced in a manner permitted by this Agreement, among Energizer Receivables Funding Corporation, a Delaware corporation, as the seller thereunder, Eveready Battery Company, a Delaware Corporation, as the servicer thereunder, Falcon Asset Securitization Corporation and Bank One, as the agent thereunder 

"2000 Receivables Sale Agreement" means that certain Receivables Sale Agreement, dated as of April 4, 2000, as amended, extended or replaced in a manner permitted by this Agreement, between Eveready Battery Company, Inc., a Delaware corporation, and Energizer Receivables Funding Corporation, a Delaware corporation and an SPV. 

"2000 Senior Notes" is defined in the definition of "2000 Note Purchase Agreement" above. 

"2003 Note Purchase Agreement" means that certain Note Purchase Agreement dated as of June 1, 2003 among the Borrower and the "Purchasers" referred to therein, under which the Borrower has issued senior unsecured notes in the aggregate principal amount of $700,000,000 (the "2003 Senior Notes"), which shall be pari passu with the Obligations hereunder and the Hedging Obligations, as such Note Purchase Agreement may be amended, modified or

 

	 
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supplemented from time to time in a manner that is not materially adverse to the interests of the Lenders. 

"2003 Senior Notes" is defined in the definition of "2003 Note Purchase Agreement" above. 

"Type" means, with respect to any Loan, its nature as a Floating Rate Loan or a Eurodollar Rate Loan. 

"Unmatured Default" means an event which, but for the lapse of time or the giving of notice, or both, would constitute a Default. 

"Utilization Fee" is defined in Section 2.14(c)(ii) hereof. 

The foregoing definitions shall be equally applicable to both the singular and plural forms of the defined terms. Any accounting terms used in this Agreement which are not specifically defined herein shall have the meanings customarily given them in accordance with generally accepted accounting principles in existence as of the date hereof. 

1.2  References. Any references to Subsidiaries of the Borrower shall not in any way be construed as consent by the Administrative Agent or any Lender to the establishment, maintenance or acquisition of any Subsidiary, except as may otherwise be permitted hereunder. 

ARTICLE II: THE REVOLVING LOAN FACILITY 

2.1  Revolving Loans. (a) Upon the satisfaction of the conditions precedent set forth in Sections 5.1 and 5.2, as applicable, from and including the Initial Funding Date and prior to the Termination Date, each Lender severally and not jointly agrees, on the terms and conditions set forth in this Agreement, to make revolving loans to the Borrower from time to time, in Dollars, in an amount not to exceed such Lender’s Pro Rata Share of Revolving Credit Availability at such time (each individually, a "Revolving Loan" and, collectively, the "Revolving Loans"); provided, however, at no time shall the Revolving Credit Obligations exceed the Aggregate Revolving Loan Commitment. Subject to the terms of this Agreement, the Borrower may borrow, repay and reborrow Revolving Loans at any time prior to the Termination Date. The Revolving Loans made on the Initial Funding Date or on or before the third (3rd) Business Day thereafter shall initially be Floating Rate Loans and thereafter may be continued as Floating Rate Loans or converted into Eurodollar Rate Loans in the manner provided in Section 2.9 and subject to the other conditions and limitations therein set forth and set forth in this Article II and set forth in the definition of Interest Period; provided, however, that if the Borrower delivers a Borrowing/Election Notice, signed by it, together with appropriate documentation in form and substance satisfactory to the Administrative Agent indemnifying the Lenders for the amounts described in Section 4.4 on or before the third (3rd) Business Day prior to the Initial Funding Date, the Revolving Loans made on the Initial Funding Date may be Eurodollar Rate Loans. Revolving Loans made after the Initial Funding Date shall be, at the option of the Borrower, selected in accordance with Section 2.9, either Floating Rate Loans or Eurodollar Rate Loans. On the Termination Date, the Borrower shall repay in full the outstanding principal balance of the Revolving Loans. Each Advance under this Section 2.1 

 

 

	 
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shall consist of Revolving Loans made by each Lender ratably in proportion to such Lender’s respective Pro Rata Share. 

(b)  Borrowing/Election Notice; Making of Revolving Loans. The Borrower shall deliver to the Administrative Agent a Borrowing/Election Notice, signed by it, in accordance with the terms of Section 2.7. Promptly after receipt of the Borrowing/Election Notice under Section 2.7 in respect of Revolving Loans, the Administrative Agent shall notify each Lender by telex or telecopy, or other similar form of transmission, of the requested Revolving Loan. Each Lender shall make available its Revolving Loan in accordance with the terms of Section 2.6. The Administrative Agent will promptly make the funds so received from the Lenders available to the Borrower at the Administrative Agent’s office in Chicago, Illinois on the applicable Borrowing Date and shall disburse such proceeds in accordance with the Borrower’s disbursement instructions set forth in such Borrowing/Election Notice. The failure of any Lender to deposit the amount described above with the Administrative Agent on the applicable Borrowing Date shall not relieve any other Lender of its obligations hereunder to make its Revolving Loan on such Borrowing Date. 

2.2  Swing Line Loans. (A) Amount of Swing Line Loans. Upon the satisfaction of the conditions precedent set forth in Section 5.1 and 5.2, as applicable, from and including the Initial Funding Date and prior to the Termination Date, the Swing Line Bank may, in its discretion, on the terms and conditions set forth in this Agreement, make swing line loans to the Borrower from time to time, in Dollars, in an amount not to exceed the Swing Line Commitment (each, individually, a "Swing Line Loan" and collectively, the "Swing Line Loans"); provided, however, at no time shall the Revolving Credit Obligations exceed the Aggregate Revolving Loan Commitment; and provided, further, that at no time shall the sum of (a) the outstanding amount of the Swing Line Lender’s Pro Rata Share of the Swing Line Loans, plus (b) the outstanding amount of Revolving Loans made by the Swing Line Bank pursuant to Section 2.1, exceed the Swing Line Bank’s Revolving Loan Commitment at such time. Subject to the terms of this Agreement, the Borrower may borrow, repay and reborrow Swing Line Loans at any time prior to the Termination Date. 

(B) Borrowing/Election Notice for Swing Line Loans. The Borrower shall deliver to the Administrative Agent and the Swing Line Bank a Borrowing/Election Notice, signed by it, not later than 11:00 a.m. (Chicago time) on the Borrowing Date of each Swing Line Loan, specifying (i) the applicable Borrowing Date (which date shall be a Business Day and which may be the same date as the date the Borrowing/Election Notice is given), and (ii) the aggregate amount of the requested Swing Line Loan which shall be an amount not less than $1,000,000 and increments of $100,000 in excess thereof. The Swing Line Loans shall at all times be Floating Rate Loans or shall bear interest at such other rate as shall be agreed to between the Borrower and the Swing Line Bank at the time of the making of such Swing Line Loans. 

(C) Making of Swing Line Loans. Promptly after receipt of the Borrowing/Election Notice under Section 2.2(B) in respect of Swing Line Loans, the Swing Line Bank may, in its sole discretion make available its Swing Line Loan, in funds immediately available in Chicago to the Administrative Agent at its address specified pursuant to Article XIV. The Administrative Agent will promptly make the funds so received from the Swing Line Bank available to the Borrower on the Borrowing Date at the Administrative Agent’s aforesaid address. 

	 
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(D) Repayment of Swing Line Loans. Each Swing Line Loan shall be paid in full by the Borrower on or before the fifth (5th) Business Day after the Borrowing Date for such Swing Line Loan. The Borrower may at any time pay, without penalty or premium, all outstanding Swing Line Loans or, in a minimum amount of $1,000,000 and increments of $100,000 in excess thereof, any portion of the outstanding Swing Line Loans, upon notice to the Administrative Agent and the Swing Line Bank. In addition, the Administrative Agent (i) may at any time in its sole discretion with respect to any outstanding Swing Line Loan, or (ii) shall, in the event the Borrower shall not have otherwise repaid such Loan, on the fifth (5th) Business Day after the Borrowing Date of any Swing Line Loan, require each Lender (including the Swing Line Bank) to make a Revolving Loan in the amount of such Lender’s Pro Rata Share of such Swing Line Loan, for the purpose of repaying such Swing Line Loan. The making of such Revolving Loans by the Lenders shall discharge the Borrower’s obligation under the first sentence of this Section 2.2(D) and such failure to pay shall not constitute a Default by the Borrower. Promptly following receipt of notice pursuant to this Section 2.2(D) from the Administrative Agent, each Lender shall make available its required Revolving Loan or Revolving Loans, in funds immediately available in Chicago to the Administrative Agent at its address specified pursuant to Article XIV. Revolving Loans made pursuant to this Section 2.2(D) shall initially be Floating Rate Loans and thereafter may be continued as Floating Rate Loans or converted into Eurodollar Rate Loans in the manner provided in Section 2.9 and subject to the other conditions and limitations therein set forth and set forth in this Article II. Unless a Lender shall have notified the Swing Line Bank, prior to its making any Swing Line Loan, that any applicable condition precedent set forth in Sections 5.1 and 5.2, as applicable, had not then been satisfied, such Lender’s obligation to make Revolving Loans pursuant to this Section 2.2(D) to repay Swing Line Loans shall be unconditional, continuing, irrevocable and absolute and shall not be affected by any circumstances, including, without limitation, (a) any set-off, counterclaim, recoupment, defense or other right which such Lender may have against the Administrative Agent, the Swing Line Bank or any other Person, (b) the occurrence or continuance of a Default or Unmatured Default, (c) any adverse change in the condition (financial or otherwise) of the Borrower or (d) any other circumstances, happening or event whatsoever. In the event that any Lender fails to make payment to the Administrative Agent of any amount due under this Section 2.2(D), the Administrative Agent shall be entitled to receive, retain and apply against such obligation the principal and interest otherwise payable to such Lender hereunder until the Administrative Agent receives such payment from such Lender or such obligation is otherwise fully satisfied. In addition to the foregoing, if for any reason any Lender fails to make payment to the Administrative Agent of any amount due under this Section 2.2(D), such Lender shall be deemed, at the option of the Administrative Agent, to have unconditionally and irrevocably purchased from the Swing Line Bank, without recourse or warranty, an undivided interest and participation in the applicable Swing Line Loan in the amount of such Revolving Loan, and such interest and participation may be recovered from such Lender together with interest thereon at the Federal Funds Effective Rate for each day during the period commencing on the date of demand and ending on the date such amount is received. On the Termination Date, the Borrower shall repay in full the outstanding principal balance of the Swing Line Loans. 

2.3  Rate Options for all Advances; Maximum Interest Periods. The Swing Line Loans shall be Floating Rate Loans at all times or shall bear interest at such other rate as may be agreed to between the Borrower and the Swing Line Bank at the time of the making of any such Swing Line Loan. The Revolving Loans may be Floating Rate Advances or Eurodollar Rate

 

	 
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Advances, or a combination thereof, selected by the Borrower in accordance with Section 2.10. The Borrower may select, in accordance with Section 2.9, rate options and Interest Periods applicable to the Revolving Loans; provided that there shall be no more than eight (8) Interest Periods in effect with respect to all of the Loans at any time. 

2.4  Optional Payments. The Borrower may from time to time and at any time upon at least one (1) Business Day’s prior written notice repay or prepay, without penalty or premium all or any part of outstanding Floating Rate Advances in an aggregate minimum amount of $10,000,000 and in integral multiples of $1,000,000 in excess thereof. Eurodollar Rate Advances may be voluntarily repaid or prepaid prior to the last day of the applicable Interest Period, subject to the indemnification provisions contained in Section 4.4, provided, that the Borrower may not so prepay Eurodollar Rate Advances unless it shall have provided at least three (3) Business Days’ prior written notice to the Administrative Agent of such prepayment and provided, further, that optional prepayments of Eurodollar Rate Advances made pursuant to Section 2.1 shall be for the entire amount of the outstanding Eurodollar Rate Advance. 

2.5  Reduction of Revolving Loan Commitments. The Borrower may permanently reduce the Aggregate Revolving Loan Commitment in whole, or in part ratably among the Lenders, in an aggregate minimum amount of $25,000,000 and integral multiples of $5,000,000 in excess of that amount (unless the Aggregate Revolving Loan Commitment is reduced in whole), upon at least three (3) Business Day’s prior written notice to the Administrative Agent, which notice shall specify the amount of any such reduction; provided, however, that the amount of the Aggregate Revolving Loan Commitment may not be reduced below the aggregate principal amount of the outstanding Revolving Credit Obligations. All accrued Facility Fees and Utilization Fees shall be payable on the effective date of any termination of the obligations of the Lenders to make Loans hereunder and all accrued Facility Fees shall be payable upon any reduction of the Aggregate Revolving Loan Commitment on the amount so reduced. 

2.6  Method of Borrowing. Not later than 2:00 p.m. (Chicago time) on each Borrowing Date, each Lender shall make available its Revolving Loan, in immediately available funds, to the Administrative Agent at its address specified pursuant to Article XIV. The Administrative Agent will promptly make the funds so received from the Lenders available to the Borrower at the Administrative Agent’s aforesaid address. 

2.7  Method of Selecting Types and Interest Periods for Advances. The Borrower shall select the Type of Advance and, in the case of each Eurodollar Rate Advance, the Interest Period applicable to each Advance from time to time. The Borrower shall give the Administrative Agent irrevocable notice in substantially the form of Exhibit B hereto (a "Borrowing/Election Notice") not later than 11:00 a.m. (Chicago time) (a) on or before the Borrowing Date of each Floating Rate Advance and (b) three (3) Business Days before the Borrowing Date for each Eurodollar Rate Advance specifying: (i) the Borrowing Date (which shall be a Business Day) of such Advance; (ii) the aggregate amount of such Advance; (iii) the Type of Advance selected; and (iv) in the case of each Eurodollar Rate Advance, the Interest Period applicable thereto; provided, however, that with respect to the borrowing on the Initial Funding Date, such notice shall be delivered in accordance with the terms of Section 2.1(a) and shall be accompanied by the documentation specified in such Section, if applicable. The Borrower shall select Interest Periods so that, to the best of the Borrower’s knowledge, it will not

 

	 
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be necessary to prepay all or any portion of any Eurodollar Rate Advance prior to the last day of the applicable Interest Period in order to make mandatory prepayments as required pursuant to the terms hereof. Each Floating Rate Advance and all Obligations other than Loans shall bear interest from and including the date of the making of such Advance, in the case of Floating Rate Advances, and the date such Obligation is due and owing in the case of such other Obligations, to (but not including) the date of repayment thereof at the Alternate Base Rate, changing when and as such Alternate Base Rate changes. Changes in the rate of interest on that portion of the Loans maintained as Floating Rate Loans will take effect simultaneously with each change in the Alternate Base Rate. Each Eurodollar Rate Advance shall bear interest from and including the first day of the Interest Period applicable thereto to (but not including) the last day of such Interest Period at the interest rate determined as applicable to such Eurodollar Rate Advance, changing when and as the Applicable Margin changes. Changes in the rate of interest on that portion of the Loans maintained as Eurodollar Rate Advances will take effect simultaneously with each change in the Applicable Margin. 

2.8             Minimum Amount of Each Advance. Each Advance (other than an Advance to repay Swing Line Loans or a Reimbursement Obligation) shall be in the minimum amount of $10,000,000 (and in multiples of $1,000,000 if in excess thereof); provided, however, that any Floating Rate Advance may be in the amount of the unused Aggregate Revolving Loan Commitment. 

2.9  Method of Selecting Types and Interest Periods for Conversion and Continuation of Advances. 

(A)  Right to Convert. The Borrower may elect from time to time, subject to the provisions of Section 2.3 and this Section 2.9, to convert all or any part of a Loan of any Type into any other Type or Types of Loans; provided that any conversion of any Eurodollar Rate Advance shall be made on, and only on, the last day of the Interest Period applicable thereto. 

(B)  Automatic Conversion and Continuation. Floating Rate Loans shall continue as Floating Rate Loans unless and until such Floating Rate Loans are repaid or converted into Eurodollar Rate Loans. Eurodollar Rate Loans shall continue as Eurodollar Rate Loans until the end of the then applicable Interest Period therefor, at which time such Eurodollar Rate Loans shall be automatically converted into Floating Rate Loans unless the Borrower shall have repaid such Loans or given the Administrative Agent a Borrowing/Election Notice in accordance with Section 2.9(D) requesting that, at the end of such Interest Period, such Eurodollar Rate Loans continue as a Eurodollar Rate Loan. 

(C)  No Conversion Post-Default. Notwithstanding anything to the contrary contained in Section 2.9(A) or Section 2.9(B), no Loan may be converted into or continued as a Eurodollar Rate Loan (except with the consent of the Required Lenders) when any Default has occurred and is continuing. 

(D)  Borrowing/Election Notice. The Borrower shall give the Administrative Agent an irrevocable Borrowing/Election Notice of each conversion of a Floating Rate Loan into a Eurodollar Rate Loan or continuation of a Eurodollar Rate Loan not later than 11:00 a.m. (Chicago time) three (3) Business Days prior to the date of the requested conversion or

 

	 
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continuation, specifying: (i) the requested date (which shall be a Business Day) of such conversion or continuation; (ii) the amount and Type of the Loan to be converted or continued; and (iii) the amount of Eurodollar Rate Loan(s) into which such Loan is to be converted or continued, and the duration of the Interest Period applicable thereto. 

2.10  Default Rate. After the occurrence and during the continuance of a Default, the Administrative Agent or the Required Lenders may, at their option, by notice to the Borrower declare that, (a) the interest rate(s) applicable to the Obligations (other than Eurodollar Rate Advances, Letter of Credit fees under Section 3.8(i), Facility Fees and Utilization Fees) shall be equal to the Alternate Base Rate, changing as and when the Alternate Base Rate changes, or, for Eurodollar Rate Advances, the then highest Eurodollar Rate (utilizing the highest Applicable Margin in effect from time to time), in each case, plus two percent (2.00%) per annum for all Loans and other Obligations, (b) the fees payable under Section 3.8(i) with respect to Letters of Credit shall be calculated using the highest Applicable L/C Fee Percentage plus two percent (2.00%) per annum and (c) the Facility Fees and Utilization Fees shall be calculated using the highest Applicable Facility Fee Percentage or Applicable Utilization Fee Percentage, as applicable; provided, that after the occurrence and during the continuance of a Default under Sections 8.1(F), (G) or (I), the interest rate described in clause (a) above, the Letter of Credit Fee described in clause (b) above and the Facility Fee and Utilization Fee described in clause (c) above shall be applicable without any election or action on the part of the Administrative Agent or any other Lender. 

2.11  Method of Payment. All payments of principal, interest, fees, commissions and L/C Obligations hereunder shall be made, without setoff, deduction or counterclaim, in immediately available funds to the Administrative Agent at the Administrative Agent’s address specified pursuant to Article XIV or at any other Lending Installation of the Administrative Agent specified in writing by the Administrative Agent to the Borrower, by 2:00 p.m. (Chicago time) on the date when due and shall be made ratably among the Lenders (unless such amount is not to be shared ratably in accordance with the terms hereof). Each payment delivered to the Administrative Agent for the account of any Lender shall be delivered promptly by the Administrative Agent to such Lender in the same type of funds which the Administrative Agent received at its address specified pursuant to Article XIV or at any Lending Installation specified in a notice received by the Administrative Agent from such Lender. The Borrower authorizes the Administrative Agent to charge the account of the Borrower maintained with Bank One for each payment of principal, interest, fees, commissions and L/C Obligations as it becomes due hereunder. Each reference to the Administrative Agent in this Section 2.11 shall also be deemed to refer, and shall apply equally, to each Issuing Bank, in the case of payments required to be made by the Borrower to such Issuing Bank pursuant to Article III. 

2.12  Evidence of Debt; Noteless Agreement. 

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

	 
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(b)  The Administrative Agent shall also maintain accounts in which it will record (a) the amount of each Loan made hereunder, the Type thereof and the Interest Period, if any, with respect thereto, (b) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder, (c) the original stated amount of each Letter of credit and the amount of the L/C Obligations outstanding at any time and (d) the amount of any sum received by the Administrative Agent hereunder from the Borrower and each Lender’s share thereof. 

(c)  The entries made in the accounts maintained pursuant to clauses (a) and (b) above shall be prima facie evidence of the existence and amounts of the Obligations therein recorded unless the Borrower objects to information contained therein within thirty (30) days of the Borrower’s receipt of such information; provided, however, that the failure of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay the Obligations in accordance with the terms of this Agreement. 

(d)  Any Lender may request that its Loans be evidenced by a promissory note. In such event, the Borrower shall prepare, execute and deliver to such Lender a promissory note for such Loans payable to the order of such Lender and in a form approved by the Administrative Agent in its reasonable discretion and consistent with the terms of this Agreement. Thereafter, the Loans evidenced by such promissory note and interest thereon shall at all times (prior to any assignment pursuant to Section 13.3) be represented by one or more promissory notes in such form, payable to the order of the payee named therein, except to the extent that any such Lender subsequently returns any such note for cancellation and requests that such Loans once again be evidenced as described in clauses (a) and (b) above. 

2.13  Telephonic Notices. The Borrower authorizes the Lenders and the Administrative Agent to extend, convert or continue Advances, effect selections of Types of Advances and to transfer funds based on telephonic notices made by any person or persons the Administrative Agent or any Lender in good faith believes to be acting on behalf of the Borrower. The Borrower agrees to deliver promptly to the Administrative Agent a written confirmation, signed by an Authorized Officer of the Borrower, if such confirmation is requested by the Administrative Agent or any Lender, of each telephonic notice. If the written confirmation differs in any material respect from the action taken by the Administrative Agent and the Lenders, the records of the Administrative Agent and the Lenders with respect to such telephonic notice shall govern absent manifest error. In case of disagreement concerning such notices, if the Administrative Agent has recorded telephonic Borrowing/Election Notices, such recordings will be made available to the Borrower upon the Borrower’s request therefor. 

2.14  Promise to Pay; Interest and Facility Fees; Interest Payment Dates; Interest and Fee Basis; Loan and Control Accounts. 

(A)  Promise to Pay. The Borrower unconditionally promises to pay when due the principal amount of each Loan and all other Obligations incurred by it, and to pay all unpaid interest accrued thereon, in accordance with the terms of this Agreement and the other Loan Documents. 

	 
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(B)  Interest Payment Dates. Interest accrued on each Floating Rate Loan shall be payable on each Payment Date, commencing with the first such date to occur after the date hereof and on any date on which such Floating Rate Loan is prepaid, whether by acceleration or otherwise (including at maturity). Interest accrued on each Eurodollar Rate Loan shall be payable on the last day of its applicable Interest Period, on any date on which the Eurodollar Rate Loan is prepaid, whether by acceleration or otherwise, and at maturity. Interest accrued on each Eurodollar Rate Loan having an Interest Period longer than three months shall also be payable on the last day of each three-month interval during such Interest Period. Interest accrued on the principal balance of all other Obligations shall be payable in arrears (i) on each Payment Date, commencing on the first such day following the incurrence of such Obligation, (ii) upon repayment thereof in full or in part, and (iii) if not theretofore paid in full, at the time such other Obligation becomes due and payable (whether by acceleration or otherwise). 

(C)  Facility Fees, Utilization Fees and Administrative Agent’s Fees. 

(i)  The Borrower shall pay to the Administrative Agent, for the account of the Lenders in accordance with their Pro Rata Shares, from and after the Closing Date until the Termination Date, a facility fee (the "Facility Fee") accruing at the per annum rate of the then Applicable Facility Fee Percentage, on the Aggregate Revolving Loan Commitment (whether used or unused). All such Facility Fees payable under this clause (C)(i) shall be payable quarterly in arrears on each Payment Date occurring after the Closing Date (with the first such payment being calculated for the period from the Closing Date and ending on June 30, 2003), and on the Termination Date. 

(ii)  If, at the end of any fiscal quarter, the average daily amount of the Revolving Credit Obligations during such quarter exceeded fifty percent (50%) of the average daily amount of the Aggregate Revolving Loan Commitment during such quarter, the Borrower shall pay to the Administrative Agent, for the account of the Lenders in accordance with their Pro Rata Shares, a utilization fee (the "Utilization Fee") accruing at the per annum rate of the then Applicable Utilization Fee Percentage, on the average daily Revolving Credit Obligations for such quarter. All such Utilization Fees payable under this clause (C)(ii) shall be payable quarterly in arrears on each applicable Payment Date occurring after the Closing Date (with the first such payment being calculated for the period from the Closing Date and ending on June 30, 2003), and on the Termination Date. 

(iii)  The Borrower shall pay to the Administrative Agent for the sole account of the Administrative Agent and the Arrangers (unless otherwise agreed between the Administrative Agent and the Arrangers and any Lender) the fees set forth in the Initial Fee Letters, payable at the times and in the amounts set forth therein. 

(D)  Interest and Fee Basis; Applicable Margin, Applicable Facility Fee Percentage, Applicable L/C Fee Percentage and Applicable Utilization Fee Percentage. 

(i)  Interest accrued on Eurodollar Rate Advances, fees payable with respect to Letters of Credit, Facility Fees and Utilization Fees shall be calculated for actual days elapsed on the basis of a year of 360 days, and interest accrued on Floating Rate Advances and Swing Line Loans where the basis for calculation is the Alternate Base Rate shall be calculated for actual

 

	 
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days elapsed on the basis of a year of 365, or when appropriate 366, days. Interest shall be payable for the day an Obligation is incurred but not for the day of any payment on the amount paid if payment is received prior to 2:00 p.m. (Chicago time) at the place of payment. If any payment of principal of or interest on a Loan or any payment of any other Obligations shall become due on a day which is not a Business Day, such payment shall be made on the next succeeding Business Day and, in the case of a principal payment, such extension of time shall be included in computing interest, fees and commissions in connection with such payment. 

(ii)  The Applicable Margin, Applicable Facility Fee Percentage, Applicable L/C Fee Percentage and the Applicable Utilization Fee Percentage shall be determined from time to time by reference to the table set forth below, on the basis of the then applicable Leverage Ratio as described in this Section 2.14(D)(ii): 

	
 
	
Applicable Fees 

		

	
Leverage Ratio 
	
Applicable Margin 
	
Applicable L/C Fee Percentage 
	
Applicable Facility Fee Percentage 
	
Applicable Utilization Fee Percentage 

	

	
Level I 

=1.5 to 1.0 
	
0.600% 
	
0.600% 
	
0.150% 
	
0.125% 

	
Level II 

>1.5 to 1.0 and =2.0 to 1.0 
	
0.700% 
	
0.700% 
	
0.175% 
	
0.125% 

	
Level III 

>2.0 to 1.0 and =2.5 to 1.0 
	
0.800% 
	
0.800% 
	
0.200% 
	
0.125% 

	
Level IV 

>2.5 to 1.0 and =3.0 to 1.0 
	
1.000% 
	
1.000% 
	
0.250% 
	
0.125% 

	
Level V 

>3.0 to 1.0 and =3.25 to 1.0 
	
1.200% 
	
1.200% 
	
0.300% 
	
0.125% 

	
Level VI 

>3.25 to 1.0 
	
1.400% 
	
1.400% 
	
0.350% 
	
0.125% 

					

 

For purposes of this Section 2.14(D)(ii), the Leverage Ratio shall be calculated as provided in Section 7.4(A). Upon receipt of the financial statements delivered pursuant to Section 7.1(A)(i) and (ii), as applicable, the Applicable Margin, Applicable Facility Fee Percentage, Applicable L/C Fee Percentage and Applicable Utilization Fee Percentage shall be adjusted, such adjustment being effective five (5) Business Days following the Administrative Agent’s receipt of such financial statements and the compliance certificate required to be delivered in connection

 

 

	 
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therewith pursuant to Section 7.1(A)(iii); provided, that if the Borrower shall not have timely delivered its financial statements in accordance with Section 7.1(A)(i) or (ii), as applicable, then commencing on the date upon which such financial statements should have been delivered and continuing until five (5) Business Days following the date such financial statements are actually delivered, it shall be assumed for purposes of determining the Applicable Margin, Applicable Facility Fee Percentage, Applicable L/C Fee Percentage and Applicable Utilization Fee Percentage that the Leverage Ratio was greater than 3.25 to 1.0 and Level VI pricing shall be applicable. 

(iii)  Notwithstanding anything herein to the contrary, from the Closing Date to but not including the fifth Business Day following receipt of the Borrower’s financial statements delivered pursuant to Section 7.1(A)(i) for the fiscal quarter ending June 30, 2003, the Applicable Margin, Applicable Facility Fee Percentage, Applicable L/C Fee Percentage and Applicable Utilization Fee Percentage shall be set at Level III. 

2.15  Notification of Advances, Interest Rates, Prepayments and Aggregate Revolving Loan Commitment Reductions. Promptly after receipt thereof, the Administrative Agent will notify each Lender of the contents of each Aggregate Revolving Loan Commitment reduction notice, Borrowing/Election Notice repayment notice and issuance of Letter of Credit notice received by it hereunder. The Administrative Agent will notify each Lender of the interest rate applicable to each Eurodollar Rate Loan promptly upon determination of such interest rate and will give each Lender prompt notice of each change in the Alternate Base Rate. 

2.16  Lending Installations. Each Lender may book its Loans or Letters of Credit at any Lending Installation selected by such Lender and may change its Lending Installation from time to time. All terms of this Agreement shall apply to any such Lending Installation. Subject to the provisions of Section 4.6, each Lender may, by written or facsimile notice to the Administrative Agent and the Borrower, designate a Lending Installation through which Loans will be made by it and for whose account Loan payments and/or payments of L/C Obligations are to be made. 

2.17  Non-Receipt of Funds by the Administrative Agent. Unless the Borrower or a Lender, as the case may be, notifies the Administrative Agent prior to the date on which it is scheduled to make payment to the Administrative Agent of (i) in the case of a Lender, the proceeds of a Loan or (ii) in the case of the Borrower, a payment of principal, interest or fees to the Administrative Agent for the account of the Lenders, that it does not intend to make such payment, the Administrative Agent may assume that such payment has been made. The Administrative Agent may, but shall not be obligated to, make the amount of such payment available to the intended recipient in reliance upon such assumption. If such Lender or the Borrower, as the case may be, has not in fact made such payment to the Administrative Agent, the recipient of such payment shall, on demand by the Administrative Agent, repay to the Administrative Agent the amount so made available together with interest thereon in respect of each day during the period commencing on the date such amount was so made available by the Administrative Agent until the date the Administrative Agent recovers such amount at a rate per annum equal to (i) in the case of payment by a Lender, the Federal Funds Effective Rate for such day or (ii) in the case of payment by the Borrower, the interest rate applicable to the relevant Loan. 

	 
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2.18  Termination Date. This Agreement shall be effective until the Termination Date. Notwithstanding the termination of this Agreement, until all of the Obligations (other than contingent indemnity obligations) shall have been fully and indefeasibly paid and satisfied in cash (to the full extent that such Obligations are payable in cash), all financing arrangements among the Borrower and the Lenders under or in connection with this Agreement, the other Loan Documents or the Hedging Agreements shall have been terminated and all of the Letters of Credit shall have expired, been canceled or terminated, all of the rights and remedies under this Agreement and the other Loan Documents shall survive. 

2.19  Replacement of Certain Lenders. In the event a Lender ("Affected Lender") shall have: (i) failed to fund its Pro Rata Share of any Advance requested by the Borrower, or to fund a Revolving Loan in order to repay Swing Line Loans or Reimbursement Obligations, which such Lender is obligated to fund under the terms of this Agreement and which failure has not been cured, (ii) requested compensation from the Borrower under Sections 4.1, 4.2 or 4.5 to recover Taxes, Other Taxes or other additional costs incurred by such Lender which are not being incurred generally by the other Lenders, (iii) delivered a notice pursuant to Section 4.3 claiming that such Lender is unable to extend Eurodollar Rate Loans to the Borrower for reasons not generally applicable to the other Lenders or (iv) has invoked Section 10.2, then, in any such case, the Borrower or the Administrative Agent may make written demand on such Affected Lender (with a copy to the Administrative Agent in the case of a demand by the Borrower and a copy to the Borrower in the case of a demand by the Administrative Agent) for the Affected Lender to assign, and such Affected Lender shall use commercially reasonable efforts to assign pursuant to one or more duly executed Assignment Agreements five (5) Business Days after the date of such demand, to one or more financial institutions that comply with the provisions of Section 13.3 which the Borrower or the Administrative Agent, as the case may be, shall have engaged for such purpose ("Replacement Lender"), all of such Affected Lender’s rights and obligations under this Agreement and the other Loan Documents (including, without limitation, its Revolving Loan Commitment, all Loans owing to it, all of its participation interests in existing Letters of Credit, and its obligation to participate in additional Letters of Credit and Swing Line Loans hereunder) in accordance with Section 13.3. The Administrative Agent agrees, upon the occurrence of such events with respect to an Affected Lender and upon the written request of the Borrower, to use its reasonable efforts to obtain the commitments from one or more financial institutions to act as a Replacement Lender. The Administrative Agent is authorized to execute one or more of such Assignment Agreements as attorney-in-fact for any Affected Lender failing to execute and deliver the same within five (5) Business Days after the date of such demand. Further, with respect to such assignment the Affected Lender shall have concurrently received, in cash, all amounts due and owing to the Affected Lender hereunder or under any other Loan Document, including, without limitation, the aggregate outstanding principal amount of the Loans owed to such Lender, together with accrued interest thereon through the date of such assignment, amounts payable under Sections 4.1, 4.2 and 4.5 with respect to such Affected Lender and compensation payable under Section 2.14(C) in the event of any replacement of any Affected Lender under clause (ii) or clause (iii) of this Section 2.19; provided that upon such Affected Lender’s replacement, such Affected Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of Sections 4.1, 4.2, 4.4, 4.5 and 10.7, as well as to any fees accrued for its account hereunder and not yet paid, and shall continue to be obligated under Section 11.8 with respect to losses, obligations, liabilities, damages, penalties, actions, judgments, costs, expenses or disbursements for matters which occurred prior to the date

 

	 
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the Affected Lender is replaced. Upon the replacement of any Affected Lender pursuant to this Section 2.19, the provisions of Section 9.2 shall continue to apply with respect to Loans which are then outstanding with respect to which the Affected Lender failed to fund its Pro Rata Share and which failure has not been cured. 

ARTICLE III: THE LETTER OF CREDIT FACILITY 

3.1  Obligation to Issue Letters of Credit. Subject to the terms and conditions of this Agreement and in reliance upon the representations, warranties and covenants of the Borrower herein set forth, each Issuing Bank hereby agrees to issue for the account of the Borrower through such Issuing Bank’s branches as it and the Borrower may jointly agree, one or more standby Letters of Credit denominated in Dollars in accordance with this Article III, from time to time during the period, commencing on the Initial Funding Date and ending on the fifth Business Day prior to the Revolving Loan Termination Date. 

3.2  Transitional Letters of Credit. Schedule 3.2 contains a schedule of certain letters of credit issued for the account of the Borrower prior to the Initial Funding Date (the "Transitional Letters of Credit"), all of which have been issued pursuant to the Existing 5-Year Credit Agreement. Subject to the satisfaction of the conditions contained in Sections 5.1 and 5.2, from and after the Initial Funding Date such letters of credit shall be deemed to be Letters of Credit issued by the Issuing Bank pursuant to this Article III for all purposes hereunder. For purposes of clarification, each term or provision applicable to the issuance of a Letter of Credit (including conditions applicable thereto) shall be deemed to include the deemed issuance of the Transitional Letters of Credit on the Initial Funding Date. 

3.3  Types and Amounts. No Issuing Bank shall have any obligation to and no Issuing Bank shall: 

(i)  issue any Letter of Credit if on the date of issuance, before or after giving effect to the Letter of Credit requested hereunder, (a) the Revolving Credit Obligations at such time would exceed the Aggregate Revolving Loan Commitment at such time, or (b) the aggregate outstanding amount of the L/C Obligations would exceed $10,000,000; or 

(ii)  issue any Letter of Credit which has an expiration date later than the date which is the earlier of (a) one (1) year after the date of issuance thereof or (b) five (5) Business Days immediately preceding the Revolving Loan Termination Date; provided that any Letter of Credit with a one-year tenor may provide for the renewal thereof for additional one-year periods (which shall in no event extend beyond the date referred to in clause (b) above). 

3.4  Conditions. In addition to being subject to the satisfaction of the conditions contained in Sections 5.1 and 5.2, the obligation of any Issuing Bank to issue any Letter of Credit is subject to the satisfaction in full of the following conditions: 

(i)  the Borrower shall have delivered to such Issuing Bank (with copies delivered simultaneously to the Administrative Agent) at such times and in such manner as such Issuing Bank may reasonably prescribe, a request for issuance of such Letter of Credit in substantially the form of Exhibit C hereto, duly executed applications for such

 

 

	 
	 	35	 
	

	 

 

Letter of Credit, and such other documents, instructions and agreements as may be required pursuant to the terms thereof (all such applications, documents, instructions, and agreements being referred to herein as the "L/C Documents"), and the proposed Letter of Credit shall be reasonably satisfactory to such Issuing Bank as to form and content; and 

(ii)  as of the date of issuance no order, judgment or decree of any court, arbitrator or Governmental Authority shall purport by its terms to enjoin or restrain such Issuing Bank from issuing such Letter of Credit and no law, rule or regulation applicable to such Issuing Bank and no request or directive (whether or not having the force of law) from a Governmental Authority with jurisdiction over such Issuing Bank shall prohibit or request that such Issuing Bank refrain from the issuance of Letters of Credit generally or the issuance of that Letter of Credit. 

3.5  Procedure for Issuance of Letters of Credit. (a) Subject to the terms and conditions of this Article III and provided that the applicable conditions set forth in Sections 5.1 and 5.2 hereof have been satisfied, the applicable Issuing Bank shall, on the requested date, issue a Letter of Credit on behalf of the Borrower in accordance with such Issuing Bank’s usual and customary business practices and, in this connection, such Issuing Bank may assume that the applicable conditions set forth in Section 5.2 hereof have been satisfied unless it shall have received notice to the contrary from the Administrative Agent or a Lender or has knowledge that the applicable conditions have not been met. 

(b) Immediately upon such issuance, the applicable Issuing Bank shall give the Administrative Agent written or telex notice, or telephonic notice confirmed promptly thereafter in writing, of the issuance of a Letter of Credit, provided, however, that the failure to provide such notice shall not result in any liability on the part of such Issuing Bank. 

(c) The applicable Issuing Bank shall not extend (including as a result of any evergreen provision) or amend any Letter of Credit unless the requirements of this Section 3.5 are met as though a new Letter of Credit was being requested and issued. 

3.6  Letter of Credit Participation. On the date of this Agreement, with respect to the Transitional Letters of Credit, and immediately upon the issuance of each additional Letter of Credit hereunder, each Lender with a Pro Rata Share shall be deemed to have automatically, irrevocably and unconditionally purchased and received from each Issuing Bank an undivided interest and participation in and to each Letter of Credit, the obligations of the Borrower in respect thereof, and the liability of the applicable Issuing Bank thereunder (collectively, an "L/C Interest") in an amount equal to the amount available for drawing under such Letter of Credit multiplied by such Lender’s Pro Rata Share. If the Borrower fails at any time to repay a Reimbursement Obligation pursuant to Section 3.7, promptly following receipt of notice from the Administrative Agent or the applicable Issuing Bank, each Lender shall make payment to the Administrative Agent, for the account of the applicable Issuing Bank, in immediately available funds in an amount equal to such Lender’s Pro Rata Share of the amount of any unreimbursed payment of an L/C Draft or other draw under a Letter of Credit. The obligation of each Lender to reimburse the applicable Issuing Bank under this Section 3.6 shall be unconditional, continuing, irrevocable and absolute. In the event that any Lender fails to make payment to the Administrative Agent of any amount due under this Section 3.6, the Administrative Agent shall

 

	 
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be entitled to receive, retain and apply against such obligation the principal and interest otherwise payable to such Lender hereunder until the Administrative Agent receives such payment from such Lender or such obligation is otherwise fully satisfied; provided, however, that nothing contained in this sentence shall relieve such Lender of its obligation to reimburse the applicable Issuing Bank for such amount in accordance with this Section 3.6. 

3.7  Reimbursement Obligation. The Borrower agrees unconditionally, irrevocably and absolutely to pay immediately to the Administrative Agent, for the account of the Lenders, the amount of each advance drawn under or pursuant to a Letter of Credit or an L/C Draft related thereto (such obligation of the Borrower to reimburse the Administrative Agent for an advance made under a Letter of Credit or L/C Draft being hereinafter referred to as a "Reimbursement Obligation" with respect to such Letter of Credit or L/C Draft), each such reimbursement to be made by the Borrower no later than the Business Day on which the applicable Issuing Bank makes payment of each such L/C Draft or, in the case of any other draw on a Letter of Credit, the date specified in the demand of the applicable Issuing Bank. If the Borrower at any time fails to repay a Reimbursement Obligation pursuant to this Section 3.7, such failure shall not constitute a Default if the Revolving Credit Obligations do not, and after making Revolving Loans in repayment of such Reimbursement Obligation would not, exceed the Aggregate Revolving Loan Commitments and the conditions set forth in Sections 5.2(i) and (ii) have been satisfied, and the Borrower shall be deemed to have elected to borrow Revolving Loans from the Lenders, as of the date of the advance giving rise to the Reimbursement Obligation, equal in amount to the amount of the unpaid Reimbursement Obligation. Such Revolving Loans shall be made as of the date of the payment giving rise to such Reimbursement Obligation, automatically, without notice and without any requirement to satisfy the conditions precedent otherwise applicable to an Advance of Revolving Loans. Such Revolving Loans shall constitute a Floating Rate Advance, the proceeds of which Advance shall be used to repay such Reimbursement Obligation. If, for any reason, the Borrower fails to repay a Reimbursement Obligation on the day such Reimbursement Obligation arises and, for any reason, the Lenders are unable to make or have no obligation to make Revolving Loans, then such Reimbursement Obligation shall bear interest from and after such day, until paid in full, at the interest rate applicable to a Floating Rate Advance. 

3.8  Letter of Credit Fees. The Borrower agrees to pay: 

(i)  quarterly, in arrears, to the Administrative Agent for the ratable benefit of the Lenders, except as set forth in Section 9.2, a letter of credit fee at a rate per annum equal to the Applicable L/C Fee Percentage on the average daily outstanding face amount available for drawing under all standby Letters of Credit; 

(ii)  quarterly, in arrears, to the applicable Issuing Bank, a letter of credit fronting fee in an amount or at a rate per annum to be negotiated by the Borrower and the applicable Issuing Bank at the time of issuance of each standby Letter of Credit on the average daily outstanding face amount available for drawing under all Letters of Credit issued by such Issuing Bank; and 

(iii)  to the applicable Issuing Bank, all customary fees and other issuance, amendment, cancellation, document examination, negotiation, transfer and presentment

 

	 
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expenses and related charges in connection with the issuance, amendment, cancellation, presentation of L/C Drafts, negotiation, transfer and the like customarily charged by such Issuing Bank with respect to standby Letters of Credit, payable at the time of invoice of such amounts. 

3.9  Issuing Bank Reporting Requirements. Upon the request of any Lender, each Issuing Bank shall furnish to such Lender copies of any Letter of Credit and any application for or reimbursement agreement with respect to a Letter of Credit to which such Issuing Bank is party. 

3.10  Indemnification; Exoneration. In addition to amounts payable as elsewhere provided in this Article III, the Borrower hereby agrees to protect, indemnify, pay and save harmless the Administrative Agent, each Issuing Bank and each Lender from and against any and all liabilities and costs which the Administrative Agent, such Issuing Bank or such Lender may incur or be subject to as a consequence, direct or indirect, of (i) the issuance of any Letter of Credit other than, in the case of such Issuing Bank, as a result of its gross negligence or willful misconduct, as determined by the final judgment of a court of competent jurisdiction, or (ii) the failure of such Issuing Bank to honor a drawing under a Letter of Credit as a result of any act or omission, whether rightful or wrongful, of any present or future de jure or de facto Governmental Authority (all such acts or omissions herein called "Governmental Acts"). 

(B) As among the Borrower, the Lenders, the Administrative Agent and each Issuing Bank, the Borrower assumes all risks of the acts and omissions of, or misuse of such Letter of Credit by, the beneficiary of any Letters of Credit. In furtherance and not in limitation of the foregoing, subject to the provisions of the Letter of Credit applications and Letter of Credit reimbursement agreements executed by the Borrower at the time of request for any Letter of Credit, neither the Administrative Agent, any Issuing Bank nor any Lender shall be responsible (in the absence of gross negligence or willful misconduct in connection therewith, as determined by the final judgment of a court of competent jurisdiction): (i) for the form, validity, sufficiency, accuracy, genuineness or legal effect of any document submitted by any party in connection with the application for and issuance of the Letters of Credit, even if it should in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged; (ii) for the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign a Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason; (iii) for failure of the beneficiary of a Letter of Credit to comply duly with conditions required in order to draw upon such Letter of Credit; (iv) for errors, omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable, telegraph, telex, or other similar form of teletransmission or otherwise; (v) for errors in interpretation of technical trade terms; (vi) for any loss or delay in the transmission or otherwise of any document required in order to make a drawing under any Letter of Credit or of the proceeds thereof; (vii) for the misapplication by the beneficiary of a Letter of Credit of the proceeds of any drawing under such Letter of Credit; and (viii) for any consequences arising from causes beyond the control of the Administrative Agent, the Issuing Banks and the Lenders, including, without limitation, any Governmental Acts. None of the above shall affect, impair, or prevent the vesting of any Issuing Bank’s rights or powers under this Section 3.10. 

	 
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(C) In furtherance and extension and not in limitation of the specific provisions hereinabove set forth, any action taken or omitted by any Issuing Bank under or in connection with the Letters of Credit or any related certificates shall not, in the absence of gross negligence or willful misconduct, as determined by the final judgment of a court of competent jurisdiction, put such Issuing Bank, the Administrative Agent or any Lender under any resulting liability to the Borrower or relieve the Borrower of any of its obligations hereunder to any such Person. 

(D) Without prejudice to the survival of any other agreement of the Borrower hereunder, the agreements and obligations of the Borrower contained in this Section 3.10 shall survive the payment in full of principal and interest hereunder, the termination of the Letters of Credit and the termination of this Agreement. 

3.11  Cash Collateral. Notwithstanding anything to the contrary herein or in any application for a Letter of Credit, after the occurrence and during the continuance of a Default, the Borrower shall, upon the Administrative Agent’s demand, deliver to the Administrative Agent for the benefit of the Lenders and the Issuing Banks, cash, or other collateral of a type satisfactory to the Required Lenders, having a value, as determined by such Lenders, equal to 105% of the aggregate outstanding L/C Obligations. In addition, but without duplication of amounts deposited pursuant to the foregoing sentence, if the Revolving Credit Availability is at any time less than the amount of contingent L/C Obligations outstanding at any time, the Borrower shall deposit cash collateral with the Administrative Agent in an amount equal to 105% of the amount by which such L/C Obligations exceed such Revolving Credit Availability. Any such collateral shall be held by the Administrative Agent in a separate account appropriately designated as a cash collateral account in relation to this Agreement and the Letters of Credit and retained by the Administrative Agent for the benefit of the Lenders and the Issuing Banks as collateral security for the Borrower’s obligations in respect of this Agreement and each of the Letters of Credit and L/C Drafts. Such amounts shall be applied to reimburse the Issuing Banks for drawings or payments under or pursuant to Letters of Credit or L/C Drafts, or if no such reimbursement is required, to payment of such of the other Obligations as the Administrative Agent shall determine. If no Default shall be continuing, amounts remaining in any cash collateral account established pursuant to this Section 3.11 which are not to be applied to reimburse the Issuing Banks for amounts actually paid or to be paid by the Issuing Banks in respect of a Letter of Credit or L/C Draft, shall be returned promptly to the Borrower (after deduction of the Administrative Agent’s reasonable out-of-pocket expenses incurred in connection with such cash collateral account) as the Letters of Credit expire. 

ARTICLE IV: YIELD PROTECTION; TAXES 

4.1  Yield Protection. If, on or after the date of this Agreement, the adoption of any law or any governmental or quasi-governmental rule, regulation, policy, guideline or directive (whether or not having the force of law), or any change in the interpretation or administration thereof by any governmental or quasi-governmental authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by any Lender or applicable Lending Installation with any request or directive (whether or not having the force of law) of any such authority, central bank or comparable agency: 

	 
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(i)  subjects any Lender or any applicable Lending Installation to any Taxes, or changes the basis of taxation of payments (other than with respect to Excluded Taxes) to any Lender in respect of its Loans or L/C Interests, or 

(ii)  imposes or increases or deems applicable any reserve, assessment, insurance charge, special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by, any Lender or any applicable Lending Installation (other than reserves and assessments taken into account in determining the interest rate applicable to Eurodollar Rate Advances), or 

(iii)  imposes any other condition the result of which is to increase the cost to any Lender or any applicable Lending Installation of making, funding or maintaining its Loans or L/C Interests or reduces any amount receivable by any Lender or any applicable Lending Installation in connection with its Loans or L/C Interests, or requires any Lender or any applicable Lending Installation to make any payment calculated by reference to the amount of Loans or L/C Interests held or interest received by it, by an amount deemed material by such Lender, 

and the result of any of the foregoing is to increase the cost to such Lender or applicable Lending Installation of making or maintaining its Loans, L/C Interests or Revolving Loan Commitment or to reduce the return received by such Lender or applicable Lending Installation in connection with such Loans, L/C Interests or Revolving Loan Commitment, then, within fifteen (15) days of demand by such Lender, the Borrower shall pay such Lender such additional amount or amounts as will compensate such Lender for such increased cost or reduction in amount received. 

Notwithstanding the foregoing provisions of this Section 4.1, if any Lender fails to notify the Borrower of any event or circumstance which will entitle such Lender to compensation pursuant to this Section 4.1 within ninety (90) days after such Lender obtains knowledge of such event or circumstance, then such Lender shall not be entitled to compensation from the Borrower for any amount arising prior to the date which is ninety (90) days before the date on which such Lender notifies the Borrower of such event or circumstance. 

4.2  Changes in Capital Adequacy Regulations. If a Lender determines the amount of capital required or expected to be maintained by such Lender, any Lending Installation of such Lender or any corporation controlling such Lender is increased as a result of a Change, then, within fifteen (15) days of demand by such Lender, the Borrower shall pay such Lender the amount necessary to compensate for any shortfall in the rate of return on the portion of such increased capital which such Lender reasonably determines is attributable to this Agreement, its Loans, L/C Interests or its Revolving Loan Commitment hereunder (after taking into account such Lender’s customary policies as to capital adequacy). "Change" means (i) any change after the date of this Agreement in the Risk-Based Capital Guidelines or (ii) any adoption of or change in any other law, governmental or quasi-governmental rule, regulation, policy, guideline, interpretation, or directive (whether or not having the force of law) after the date of this Agreement which affects the amount of capital required or expected to be maintained by any Lender or any Lending Installation or any corporation controlling any Lender. "Risk-Based Capital Guidelines" means (i) the risk-based capital guidelines in effect in the United States on the date of this Agreement, including transition rules, and (ii) the corresponding capital

 

	 
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regulations promulgated by regulatory authorities outside the United States implementing the July 1988 report of the Basle Committee on Banking Regulation and Supervisory Practices Entitled "International Convergence of Capital Measurements and Capital Standards," including transition rules, and any amendments to such regulations adopted prior to the date of this Agreement. 

4.3  Availability of Types of Advances. If any Lender determines that maintenance of its Eurodollar Rate Loans at a suitable Lending Installation would violate any applicable law, rule, regulation, or directive, whether or not having the force of law, or if the Required Lenders determine that (i) deposits of a type and maturity appropriate to match fund Eurodollar Rate Advances are not available or (ii) the interest rate applicable to Eurodollar Rate Advances does not accurately reflect the cost of making or maintaining Eurodollar Rate Advances, then the Administrative Agent shall suspend the availability of Eurodollar Rate Advances and require any affected Eurodollar Rate Advances to be repaid or converted to Floating Rate Advances, subject to the payment of any funding indemnification amounts required by Section 4.4. 

4.4  Funding Indemnification. If any payment of a Eurodollar Rate Advance occurs on a date which is not the last day of the applicable Interest Period, whether because of acceleration, prepayment or otherwise, or a Eurodollar Rate Advance is not made on the date specified by the Borrower for any reason other than default by the Lenders, the Borrower will indemnify each Lender for any loss or cost incurred by it resulting therefrom (excluding loss of margin), including, without limitation, any loss or cost in liquidating or employing deposits acquired to fund or maintain such Eurodollar Rate Advance. 

4.5  Taxes. 

(i)  All payments by the Borrower to or for the account of any Lender or the Administrative Agent hereunder or under any of the other Loan Documents shall be made free and clear of and without deduction for any and all Taxes. If the Borrower shall be required by law to deduct any Taxes from or in respect of any sum payable hereunder to any Lender, any Issuing Bank or the Administrative Agent, (a) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section 4.5) such Lender, such Issuing Bank or the Administrative Agent (as the case may be) receives an amount equal to the sum it would have received had no such deductions been made, (b) the Borrower shall make such deductions, (c) the Borrower shall pay the full amount deducted to the relevant authority in accordance with applicable law and (d) the Borrower shall furnish to the Administrative Agent the original copy of a receipt evidencing payment thereof within thirty (30) days after such payment is made. Such Lender, such Issuing Bank or the Administrative Agent, as the case may be, shall promptly reimburse the Borrower for such payments to the extent such Lender, such Issuing Bank or the Administrative Agent receives actual knowledge that it has received any tax credit or other benefit in connection with such tax payments and that such tax credit or benefit is clearly attributable to this Agreement. 

(ii)  In addition, the Borrower hereby agrees to pay any present or future stamp or documentary taxes and any other excise or property taxes, charges or similar levies which arise from any payment made hereunder or under any promissory note issued hereunder or from the

 

	 
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execution or delivery of, or otherwise with respect to, this Agreement or any promissory note issued hereunder ("Other Taxes"). 

(iii)  The Borrower hereby agrees to indemnify the Administrative Agent and each Lender for the full amount of Taxes or Other Taxes (including, without limitation, any Taxes or Other Taxes imposed on amounts payable under this Section 4.5) paid by the Administrative Agent or such Lender and any liability (including penalties, interest and expenses) arising therefrom or with respect thereto. Payments due under this indemnification shall be made within thirty (30) days of the date the Administrative Agent or such Lender makes demand therefor pursuant to Section 4.6. 

(iv)  Each Lender that is not incorporated or organized under the laws of the United States of America or a state thereof (each a "Non-U.S. Lender") agrees that it will, not less than ten (10) Business Days after the date of this Agreement, or, if later, the date on which such Non-U.S. Lender becomes a party hereto, deliver to each of the Borrower and the Administrative Agent a United States Internal Revenue Form W-8 or W-9, as the case may be, and deliver to the Administrative Agent two duly completed copies of United States Internal Revenue Forms W-8BEN and W-8ECI, certifying in either case that it is entitled to an exemption from United States backup withholding tax. Each Non-U.S. Lender further undertakes to deliver to each of the Borrower and the Administrative Agent (x) renewals or additional copies of such form (or any successor form) on or before the date that such form expires or becomes obsolete, and (y) after the occurrence of any event requiring a change in the most recent forms so delivered by it, such additional forms or amendments thereto as may be reasonably requested by the Borrower or the Administrative Agent. All forms or amendments described in the preceding sentence shall certify that such Lender is entitled to receive payments under this Agreement without deduction or withholding of any United States federal income taxes, unless an event (including without limitation any change in treaty, law or regulation) has occurred prior to the date on which any such delivery would otherwise be required which renders all such forms inapplicable or which would prevent such Lender from duly completing and delivering any such form or amendment with respect to it and such Lender advises the Borrower and the Administrative Agent that it is not capable of receiving payments without any deduction or withholding of United States federal income tax. 

(v)  For any period during which a Non-U.S. Lender has failed to provide the Borrower with an appropriate form pursuant to clause (iv), above (unless such failure is due to a change in treaty, law or regulation, or any change in the interpretation or administration thereof by any governmental authority, occurring subsequent to the date on which a form originally was required to be provided), such Non-U.S. Lender shall not be entitled to indemnification under this Section 4.5 with respect to Taxes imposed by the United States; provided that, should a Non-U.S. Lender which is otherwise exempt from or subject to a reduced rate of withholding tax become subject to Taxes because of its failure to deliver a form required under clause (iv), above, the Borrower shall take such steps as such Non-U.S. Lender shall reasonably request (without cost to the Borrower) to assist such Non-U.S. Lender to recover such Taxes. 

(vi)  Any Lender that is entitled to an exemption from or reduction of withholding tax with respect to payments under this Agreement or any promissory note issued hereunder pursuant to the law of any relevant jurisdiction or any treaty shall deliver to the Borrower (with a

 

	 
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copy to the Administrative Agent), at the time or times prescribed by applicable law, such properly completed and executed documentation prescribed by applicable law as will permit such payments to be made without withholding or at a reduced rate. 

(vii)  If the U.S. Internal Revenue Service or any other governmental authority of the United States or any other country or any political subdivision thereof asserts a claim that the Administrative Agent did not properly withhold tax from amounts paid to or for the account of any Lender (because the appropriate form was not delivered or properly completed, because such Lender failed to notify the Administrative Agent of a change in circumstances which rendered its exemption from withholding ineffective, or for any other reason other than as a result of the gross negligence or willful misconduct of the Administrative Agent), such Lender shall indemnify the Administrative Agent fully for all amounts paid, directly or indirectly, by the Administrative Agent as tax, withholding therefor, or otherwise, including penalties and interest, and including taxes imposed by any jurisdiction on amounts payable to the Administrative Agent under this subsection, together with all costs and expenses related thereto (including attorneys fees and time charges of attorneys for the Administrative Agent, which attorneys may be employees of the Administrative Agent). The obligations of the Lenders under this Section 4.5(vii) shall survive the payment of the Obligations, the termination of the Letters of Credit and termination of this Agreement. 

4.6  Lender Statements; Survival of Indemnity. To the extent reasonably possible, each Lender shall designate an alternate Lending Installation with respect to its Eurodollar Rate Loans to reduce any liability of the Borrower to such Lender under Sections 4.1, 4.2 and 4.5 or to avoid the unavailability of Eurodollar Rate Advances under Section 4.3, so long as such designation is not, in the reasonable judgment of such Lender, disadvantageous to such Lender. Each Lender shall deliver a written statement of such Lender to the Borrower (with a copy to the Administrative Agent) as to the amount due, if any, under Section 4.1, 4.2, 4.4 or 4.5. Such written statement shall set forth in reasonable detail the calculations upon which such Lender determined such amount and shall be final, conclusive and binding on the Borrower in the absence of manifest error. Determination of amounts payable under such Sections in connection with a Eurodollar Rate Loan shall be calculated as though each Lender funded its Eurodollar Rate Loan through the purchase of a deposit of the type and maturity corresponding to the deposit used as a reference in determining the Eurodollar Rate applicable to such Loan, whether in fact that is the case or not, and without regard to loss of margin. Unless otherwise provided herein, the amount specified in the written statement of any Lender shall be payable on demand after receipt by the Borrower of such written statement. The obligations of the Borrower under Sections 4.1, 4.2, 4.4 and 4.5 shall survive payment of the Obligations, termination of the Letters of Credit and termination of this Agreement. 

ARTICLE V: CONDITIONS PRECEDENT 

5.1  Initial Advances and Letters of Credit. The Lenders shall not be required to make the initial Loans or issue any Letters of Credit (including the deemed issuance of the Transitional Letters of Credit) unless the Borrower has furnished to the Administrative Agent each of the following, with sufficient copies for the Lenders, all in form and substance satisfactory to the Administrative Agent and the Lenders: 

	 
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(1)  Copies of the Certificate of Incorporation of the Borrower and each of the Subsidiary Guarantors (collectively, the "Loan Parties"), together with all amendments and a certificate of good standing, both certified by the appropriate governmental officer in its jurisdiction of incorporation; 

(2)  Copies, certified by the Secretary or Assistant Secretary of each of the Loan Parties, of its By-Laws and of its Board of Directors’ resolutions (and resolutions of other bodies, if any are deemed necessary by counsel for any Lender) authorizing the execution of the Loan Documents entered into by it; 

(3)  An incumbency certificate, executed by the Secretary or Assistant Secretary of each of the Loan Parties, which shall identify by name and title and bear the original or facsimile signature of the officers of the Loan Parties authorized to sign the Loan Documents and the officers of the Borrower authorized to make borrowings hereunder, upon which certificate the Lenders shall be entitled to rely until informed of any change in writing by the Borrower; 

(4)  A certificate, in form and substance satisfactory to the Administrative Agent signed by the treasurer of the Borrower, stating that on the Initial Funding Date (both before and after giving effect to any proposed Loan to be made and/or Letter of Credit to be issued thereon), all of the representations in this Agreement are true and correct and no Default or Unmatured Default has occurred and is continuing; 

(5)  The written opinion of the Loan Parties’ counsel, addressed to the Administrative Agent and the Lenders, in substantially the form attached hereto as Exhibit E and containing assumptions and qualifications acceptable to the Administrative Agent and the Lenders; provided, that in the event that the Singapore Credit Agreement and related facility documents are not effective as of the Closing Date, such opinion shall include, without limitation, an opinion as to the absence of conflict between this Agreement and the then most recent draft of the Singapore Credit Agreement and other material facility documents to be executed in connection therewith, in form and substance satisfactory to the Administrative Agent, to be followed by delivery of a confirmation and update of such opinion, as and when required by Section 7.2(L)); 

(6)  Written money transfer instructions reasonably requested by the Administrative Agent, addressed to the Administrative Agent and signed by an Authorized Officer of the Borrower; 

(7)  Evidence satisfactory to the Administrative Agent that the Borrower had paid to the Administrative Agent and the Arrangers the fees agreed to in the Initial Fee Letters; 

(8)  Evidence satisfactory to the Administrative Agent that the Existing Credit Agreements have terminated and that all obligations, indebtedness and liabilities outstanding under the Existing Credit Agreements have been repaid in full (it being understood and agreed that the Transitional Letters of Credit shall be evidenced hereby in accordance with Section 3.2), or the Borrower has arranged for such termination and

 

	 
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repayment from the proceeds of the initial Loans hereunder (in each case, as documented in a payoff letter in form and substance reasonably satisfactory to the Administrative Agent); and 

(9)  Such other documents as the Administrative Agent or any Lender or its counsel may have reasonably requested, including, without limitation, the Subsidiary Guaranty, opinions of counsel, an officer’s no-default certificate and each other document reflected on the List of Closing Documents attached as Exhibit F to this Agreement. 

5.2  Each Advance and Letter of Credit. The Lenders shall not be required to make any Advance, or issue any Letter of Credit, unless on the applicable Borrowing Date, or in the case of a Letter of Credit, the date on which the Letter of Credit is to be issued, both before and after taking into account the proposed borrowing or Letter of Credit: 

(i)  There exists no Default or Unmatured Default; 

(ii)  The representations and warranties contained in Article VI are true and correct in all material respects as of such Borrowing Date or issuance date, as applicable; and 

(iii)  The Revolving Credit Obligations do not, and after making such proposed Advance or issuing such Letter of Credit would not, exceed the Aggregate Revolving Loan Commitment. 

Each Borrowing/Election Notice with respect to each such Advance and the letter of credit application with respect to each Letter of Credit shall constitute a representation and warranty by the Borrower that the conditions contained in Sections 5.2(i) and (ii) have been satisfied. Any Lender may require a duly completed officer’s certificate in substantially the form of Exhibit G hereto and/or a duly completed compliance certificate in substantially the form of Exhibit H hereto as a condition to making an Advance. 

ARTICLE VI: REPRESENTATIONS AND WARRANTIES 

In order to induce the Administrative Agent and the Lenders to enter into this Agreement and to make the Loans and the other financial accommodations to the Borrower, and to issue the Letters of Credit described herein, the Borrower represents and warrants as follows to each Lender and the Administrative Agent as of the Closing Date and thereafter on each date as required by Sections 5.1 and 5.2: 

6.1  Organization; Corporate Powers. Each of the Borrower and each of its Material Subsidiaries (i) is a corporation, limited liability company, partnership or other commercial entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, (ii) is duly qualified to do business as a foreign entity and is in good standing under the laws of each jurisdiction in which failure to be so qualified and in good standing could reasonably be expected to have a Material Adverse Effect, and (iii) has all requisite power and authority to own, operate and encumber its property and to conduct its business as presently conducted and as proposed to be conducted. 

	 
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6.2  Authority. 

(A)  Each of the Borrower and each of its Subsidiaries has the requisite power and authority to execute, deliver and perform each of the Loan Documents which are to be executed by it or which have been executed by it as required by this Agreement and the other Loan Documents and (ii) to file the Loan Documents, if any, which must be filed by it or which have been filed by it as required by this Agreement, the other Loan Documents or otherwise with any Governmental Authority. 

(B)  The execution, delivery, performance and filing, as the case may be, of each of the Loan Documents which must be executed or filed by the Borrower or any of its Subsidiaries or which have been executed or filed as required by this Agreement, the other Loan Documents or otherwise and to which the Borrower or any of its Subsidiaries is a party, and the consummation of the transactions contemplated thereby, have been duly approved by the respective boards of directors and, if necessary, the shareholders of the Borrower and its Subsidiaries, and such approvals have not been rescinded. No other action or proceedings on the part of the Borrower or its Subsidiaries are necessary to consummate such transactions. 

(C)  Each of the Loan Documents to which the Borrower or any of its Subsidiaries is a party has been duly executed, delivered or filed, as the case may be, by such party and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms (except as enforceability may be limited by bankruptcy, insolvency, or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles, including concepts of reasonableness, materiality, good faith and fair dealing and the possible unavailability of specific performance, injunctive relief or other equitable remedies (whether enforcement is sought by proceedings in equity or at law)), is in full force and effect and no material term or condition thereof has been amended, modified or waived from the terms and conditions contained in the Loan Documents delivered to the Administrative Agent pursuant to Section 5.1 without the prior written consent of the Required Lenders (or all of the Lenders if required by Section 9.3), and the Borrower and its Subsidiaries have performed and complied with all the material terms, provisions, agreements and conditions set forth therein and required to be performed or complied with by the Borrower or its Subsidiaries on or before the Initial Funding Date, and no unmatured default, default or breach of any covenant by any such party exists thereunder. 

6.3  No Conflict; Governmental Consents. The execution, delivery and performance of each of the Loan Documents to which the Borrower or any of its Subsidiaries is a party do not and will not (i) conflict with the certificate or articles of incorporation or by-laws (or equivalent constituent documents) of the Borrower or any of its Subsidiaries, (ii) constitute a tortious interference with any Contractual Obligation of any Person or conflict with, result in a breach of or constitute (with or without notice or lapse of time or both) a default under any Requirement of Law (including, without limitation, any Environmental Property Transfer Act) or Contractual Obligation of the Borrower or any of its Subsidiaries, or require termination of any Contractual Obligation, except such interference, breach or default which individually or in the aggregate could not reasonably be expected to have a Material Adverse Effect, (iii) result in or require the creation or imposition of any Lien whatsoever upon any of the property or assets of the Borrower or any of its Subsidiaries, other than Liens permitted or created by the Loan Documents, or (iv)

 

	 
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require any approval of the Borrower’s or any of its Subsidiaries’ Board of Directors (or equivalent governing body) or shareholders, as applicable, except such as have been obtained. Except as set forth on Schedule 6.3 to this Agreement, the execution, delivery and performance of each of the Loan Documents to which the Borrower or any of its Subsidiaries is a party do not and will not require any registration with, consent or approval of, or notice to, or other action to, with or by any Governmental Authority, including under any Environmental Property Transfer Act, except filings, consents or notices which have been made, obtained or given, or which, if not made, obtained or given, individually or in the aggregate could not reasonably be expected to have a Material Adverse Effect. 

6.4  Financial Statements. 

The September 30, 2002 consolidated financial statements of the Borrower and its Subsidiaries heretofore delivered to the Lenders were prepared in accordance with generally accepted accounting principles in effect on the date such statements were prepared and fairly present the consolidated financial condition and operations of the Borrower and its Subsidiaries at such date and the consolidated results of their operations for the period then ended. 

6.5  No Material Adverse Change. Since September 30, 2002 (determined by reference to the financial statements prepared with respect to the Borrower and its Subsidiaries), there has occurred no change in the business, properties, condition (financial or otherwise), performance, results of operations or prospects of the Borrower, or the Borrower and its Subsidiaries taken as a whole or any other event which has had or would reasonably be expected to have a Material Adverse Effect. 

6.6  Taxes. 

(A)  Tax Examinations. All deficiencies which have been asserted against the Borrower or any of the Borrower’s Subsidiaries as a result of any federal, state, local or foreign tax examination for each taxable year in respect of which an examination has been conducted have been fully paid or finally settled or are being contested in good faith, and no issue has been raised by any taxing authority in any such examination which, by application of similar principles, reasonably can be expected to result in assertion by such taxing authority of a material deficiency for any other year not so examined which has not been reserved for in the Borrower’s consolidated financial statements to the extent, if any, required by Agreement Accounting Principles. Except as permitted pursuant to Section 7.2(D), neither the Borrower nor any of the Borrower’s Subsidiaries anticipates any material tax liability with respect to the years which have not been closed pursuant to applicable law. 

(B)  Payment of Taxes. All tax returns and reports of the Borrower and its Subsidiaries required to be filed have been timely filed, and all taxes, assessments, fees and other governmental charges thereupon and upon their respective property, assets, income and franchises which are shown in such returns or reports to be due and payable have been paid except those items which are being contested in good faith and have been reserved for in accordance with Agreement Accounting Principles. The Borrower has no knowledge of any proposed tax assessment against the Borrower or any of its Subsidiaries that will have or could reasonably be expected to have a Material Adverse Effect, except for any such liability in respect

 

	 
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of other members of the consolidated group of which the Borrower previously was a member as a Subsidiary of Ralston Purina Company, in respect of which and solely to the extent that (i) the Borrower is entitled to be indemnified by Ralston Purina Company or its successors pursuant to that certain Tax Sharing Agreement, dated as of April 1, 2000, between Ralston Purina Company and the Borrower (as the same has been or may hereafter be amended or otherwise modified) and (ii) the Borrower’s right to indemnification for such liability is not being contested by Ralston Purina Company (or, if previously contested, any such contest has not been resolved in favor of Ralston Purina Company). 

6.7  Litigation; Loss Contingencies and Violations. Except as set forth in Schedule 6.7 (the "Disclosed Litigation"), as of the Closing Date, there is no action, suit, proceeding, arbitration or, to the knowledge of any member of the Borrower’s Senior Management Team, investigation before or by any Governmental Authority or private arbitrator pending or, to the knowledge of any member of the Borrower’s Senior Management Team, threatened against the Borrower, any of its Subsidiaries or any property of any of them. Neither (a) any of the Disclosed Litigation nor (b) from and after the Closing Date, any other action, suit, proceeding, arbitration or, to the knowledge of any member of the Borrower’s Senior Management Team, investigation before or by any Governmental Authority or private arbitrator pending or, to the knowledge of any member of the Borrower’s Senior Management Team, threatened against the Borrower, any of its Subsidiaries or any property of any of them (i) challenges the validity or the enforceability of any material provision of the Loan Documents or (ii) has had or could reasonably be expected to have a Material Adverse Effect. There is no material loss contingency within the meaning of Agreement Accounting Principles which has not been reflected in the consolidated financial statements of the Borrower prepared and delivered pursuant to Section 7.1(A) for the fiscal period during which such material loss contingency was incurred. Neither the Borrower nor any of its Subsidiaries is (A) in violation of any applicable Requirements of Law which violation will have or could reasonably be expected to have a Material Adverse Effect, or (B) subject to or in default with respect to any final judgment, writ, injunction, restraining order or order of any nature, decree, rule or regulation of any court or Governmental Authority which will have or could reasonably be expected to have a Material Adverse Effect. 

6.8  Subsidiaries. Schedule 6.8 to this Agreement (i) contains, as of the Closing Date, a description of the corporate structure of the Borrower, its Subsidiaries and any other Person in which the Borrower or any of its Subsidiaries holds an Equity Interest in excess of 5%; and (ii) accurately sets forth, as of the Closing Date, (A) the correct legal name, the jurisdiction of incorporation or organization and the jurisdictions in which each of the Borrower and the direct and indirect Subsidiaries of the Borrower are qualified to transact business as a foreign corporation, (B) the authorized, issued and outstanding shares of each class of Capital Stock of the Borrower and each of its Subsidiaries and the owners of such shares (on a fully-diluted basis), and (C) a summary of the direct and indirect partnership, joint venture, or other Equity Interests, if any, of the Borrower and each Subsidiary of the Borrower in any Person that is not a corporation. After the formation or acquisition of any New Subsidiary permitted under Section 7.3(F), if requested by the Administrative Agent, the Borrower shall provide a supplement to Schedule 6.8 to this Agreement reflecting the addition of such New Subsidiary. Except as disclosed on Schedule 6.8, none of the issued and outstanding Capital Stock of the Borrower or any of its Subsidiaries is subject to any vesting, redemption, or repurchase agreement, and there are no warrants or options outstanding with respect to such Capital Stock. The outstanding

 

	 
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Capital Stock of the Borrower and each of its Subsidiaries is duly authorized, validly issued, fully paid and nonassessable and the stock of the Borrower’s Subsidiaries is not Margin Stock. 

6.9  ERISA. No Benefit Plan has incurred any material accumulated funding deficiency (as defined in Sections 302(a)(2) of ERISA and 412(a) of the Code) whether or not waived. Neither the Borrower nor any member of the Controlled Group has incurred any material liability to the PBGC which remains outstanding other than the payment of premiums. As of the last day of the most recent prior plan year, the market value of assets under each Benefit Plan, other than any Multiemployer Plan, was not by a material amount less than the present value of benefit liabilities thereunder (determined in accordance with the actuarial valuation assumptions described therein). Neither the Borrower nor any member of the Controlled Group has (i) failed to make a required contribution or payment to a Multiemployer Plan of a material amount or (ii) incurred a material complete or partial withdrawal under Section 4203 or Section 4205 of ERISA from a Multiemployer Plan. Neither the Borrower nor any member of the Controlled Group has failed to make an installment or any other payment of a material amount required under Section 412 of the Code on or before the due date for such installment or other payment. Each Plan, Foreign Employee Benefit Plan and Non-ERISA Commitment complies in all material respects in form, and has been administered in all material respects in accordance with its terms and, in accordance with all applicable laws and regulations, including but not limited to ERISA and the Code. There have been no and there is no prohibited transaction described in Sections 406 of ERISA or 4975 of the Code with respect to any Plan for which a statutory or administrative exemption does not exist which could reasonably be expected to subject the Borrower or any of is Subsidiaries to material liability. Neither the Borrower nor any member of the Controlled Group has taken or failed to take any action which would constitute or result in a Termination Event, which action or inaction could reasonably be expected to subject the Borrower or any of its Subsidiaries to material liability. Neither the Borrower nor any member of the Controlled Group is subject to any material liability under, or has any potential material liability under, Section 4063, 4064, 4069, 4204 or 4212(c) of ERISA. The present value of the aggregate liabilities to provide all of the accrued benefits under any Foreign Pension Plan do not exceed the current fair market value of the assets held in trust or other funding vehicle for such plan by a material amount. With respect to any Foreign Employee Benefit Plan other than a Foreign Pension Plan, reasonable reserves have been established in accordance with prudent business practice or where required by ordinary accounting practices in the jurisdiction in which such plan is maintained. For purposes of this Section 6.9, "material" means any amount, noncompliance or other basis for liability which could reasonably be expected to subject the Borrower or any of its Subsidiaries to liability, individually or in the aggregate with each other basis for liability under this Section 6.9, in excess of $30,000,000. 

6.10  Accuracy of Information. The information, exhibits and reports furnished by or on behalf of the Borrower and any of its Subsidiaries to the Administrative Agent or to any Lender in connection with the negotiation of, or compliance with, the Loan Documents, the representations and warranties of the Borrower and its Subsidiaries contained in the Loan Documents, and all certificates and documents delivered to the Administrative Agent and the Lenders pursuant to the terms thereof, taken as a whole, do not contain as of the date furnished any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained herein or therein, in light of the circumstances under which they were made, not misleading. 

	 
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6.11  Securities Activities. Neither the Borrower nor any of its Subsidiaries is engaged in the business of extending credit for the purpose of purchasing or carrying Margin Stock. 

6.12  Material Agreements. Neither the Borrower nor any Subsidiary is a party to any Contractual Obligation or subject to any charter or other corporate or similar restriction which individually or in the aggregate will have or could reasonably be expected to have a Material Adverse Effect. Neither the Borrower nor any of its Subsidiaries has received notice or has knowledge that (i) it is in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any Contractual Obligation applicable to it, or (ii) any condition exists which, with the giving of notice or the lapse of time or both, would constitute a default with respect to any such Contractual Obligation, in each case, except where such default or defaults, if any, individually or in the aggregate will not have or could not reasonably be expected to have a Material Adverse Effect. 

6.13  Compliance with Laws. The Borrower and its Subsidiaries are in compliance with all Requirements of Law applicable to them and their respective businesses, in each case where the failure to so comply individually or in the aggregate could reasonably be expected to have a Material Adverse Effect. 

6.14  Assets and Properties. The Borrower and each of its Subsidiaries has legal title to all of its material assets and properties (tangible and intangible, real or personal) owned by it or a valid leasehold interest in all of its leased assets (except insofar as marketability may be limited by any laws or regulations of any Governmental Authority affecting such assets), and all such assets and property are free and clear of all Liens, except Liens permitted under Section 7.3(C). Substantially all of the assets and properties owned by, leased to or used by the Borrower and/or each such Subsidiary of the Borrower are in adequate operating condition and repair, ordinary wear and tear excepted. Neither this Agreement nor any other Loan Document, nor any transaction contemplated under any such agreement, will affect any right, title or interest of the Borrower or such Subsidiary in and to any of such assets in a manner that has or could reasonably be expected to have a Material Adverse Effect. 

6.15  Statutory Indebtedness Restrictions. Neither the Borrower nor any of its Subsidiaries is subject to regulation under the Public Utility Holding Company Act of 1935, the Federal Power Act, the Interstate Commerce Act, or the Investment Company Act of 1940, or any other federal or state statute or regulation which limits its ability to incur indebtedness or its ability to consummate the transactions contemplated hereby. 

6.16  Insurance. The insurance policies and programs in effect with respect to the respective properties, assets, liabilities and business of the Borrower and its Subsidiaries reflect coverage that is reasonably consistent with prudent industry practice. 

6.17  Labor Matters. No attempt to organize the employees of the Borrower or any of its Subsidiaries, and no labor disputes, strikes or walkouts affecting the operations of the Borrower or any of its Subsidiaries, is pending, or, to the Borrower’s knowledge, threatened, planned or contemplated, which has or could reasonably be expected to have a Material Adverse Effect. 

	 
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6.18  Environmental Matters. (A) Except as disclosed on Schedule 6.18 to this Agreement: 

(i)  the operations of the Borrower and its Subsidiaries comply in all material respects with Environmental, Health or Safety Requirements of Law; 

(ii)  the Borrower and its Subsidiaries have all material permits, licenses or other authorizations required under Environmental, Health or Safety Requirements of Law and are in material compliance with such permits; 

(iii)  neither the Borrower, any of its Subsidiaries nor any of their respective present property or operations, or, to the Borrower’s or any of its Subsidiaries’ knowledge, any of their respective past property or operations, are subject to or the subject of, any investigation known to the Borrower or any of its Subsidiaries, any judicial or administrative proceeding, order, judgment, decree, settlement or other agreement respecting: (A) any material violation of Environmental, Health or Safety Requirements of Law; (B) any material remedial action; or (C) any material claims or liabilities arising from the Release or threatened Release of a Contaminant into the environment; 

(iv)  there is not now, nor to the Borrower’s or any of its Subsidiaries’ knowledge has there ever been, on or in the property of the Borrower or any of its Subsidiaries any landfill, waste pile, underground storage tanks, aboveground storage tanks, surface impoundment or hazardous waste storage facility of any kind, any polychlorinated biphenyls (PCBs) used in hydraulic oils, electric transformers or other equipment, or any asbestos containing material that would result in material remediation costs or material penalties to the Borrower or any of its Subsidiaries; and 

(v)  neither the Borrower nor any of its Subsidiaries has any material Contingent Obligation in connection with any Release or threatened Release of a Contaminant into the environment. 

(B) For purposes of this Section 6.18 "material" means any noncompliance or other basis for liability which could reasonably be likely to subject the Borrower or any of its Subsidiaries to liability, individually or in the aggregate with each other basis for liability under this Section 6.18, in excess of $30,000,000. 

6.19  Solvency. After giving effect to (i) the Loans to be made (or, if applicable, Letters of Credit to be issued) on the Initial Funding Date or such other date as Loans requested hereunder are made (or Letters of Credit are issued), (ii) the other transactions contemplated by this Agreement and the other Loan Documents, (iii) the issuance of the 2003 Senior Notes and the consummation of the transactions contemplated by the Singapore Credit Facility (including the Singapore Guarantees) and (iv) the payment and accrual of all transaction costs with respect to the foregoing, the Borrower is, and the Borrower and its Subsidiaries taken as a whole are, Solvent. 

6.20  Benefits. Each of the Borrower and its Subsidiaries will benefit from the financing arrangement established by this Agreement. The Administrative Agent and the

 

	 
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Lenders have stated and the Borrower acknowledges that, but for the agreement by each of the Subsidiary Guarantors to execute and deliver the Subsidiary Guaranty, the Administrative Agent and the Lenders would not have made available the credit facilities established hereby on the terms set forth herein. 

ARTICLE VII: COVENANTS 

The Borrower covenants and agrees that so long as any Revolving Loan Commitments are outstanding and thereafter until all of the Obligations (other than contingent indemnity obligations) shall have been fully and indefeasibly paid and satisfied in cash, all financing arrangements among the Borrower and the Lenders shall have been terminated and all of the Letters of Credit shall have expired, been canceled or terminated, unless the Required Lenders shall otherwise give prior written consent: 

7.1  Reporting. The Borrower shall: 

(A)  Financial Reporting. Furnish to the Administrative Agent (with sufficient copies for each of the Lenders, which the Administrative Agent shall promptly deliver to the Lenders): 

(i)  Quarterly Reports. As soon as practicable, and in any event within forty-five (45) days after the end of each of the Borrower’s first three fiscal quarters, the consolidated balance sheet of the Borrower and its Subsidiaries as at the end of such period and the related consolidated statements of income and cash flows of the Borrower and its Subsidiaries for such fiscal quarter and for the period from the beginning of the then current fiscal year to the end of such fiscal quarter, certified by the chief financial officer of the Borrower on behalf of the Borrower as fairly presenting the consolidated financial position of the Borrower and its Subsidiaries as at the dates indicated and the results of their operations and cash flows for the periods indicated in accordance with Agreement Accounting Principles, subject to normal year-end audit adjustments and the absence of footnotes. 

(ii)  Annual Reports. As soon as practicable, and in any event within ninety (90) days after the end of each fiscal year, (a) the consolidated and consolidating balance sheet of the Borrower and its Subsidiaries as at the end of such fiscal year and the related consolidated and consolidating statements of income, stockholders’ equity and cash flows of the Borrower and its Subsidiaries for such fiscal year, and in comparative form the corresponding figures for the previous fiscal year along with consolidating schedules in form and substance sufficient to calculate the financial covenants set forth in Section 7.4, and (b) an audit report on the consolidated financial statements (but not the consolidating financial statements or schedules) listed in clause (a) hereof of independent certified public accountants of recognized national standing, which audit report shall be unqualified and shall state that such financial statements fairly present the consolidated financial position of the Borrower and its Subsidiaries as at the dates indicated and the results of their operations and cash flows for the periods indicated in conformity with Agreement Accounting Principles and that the examination by such accountants in connection with such consolidated financial statements has been made in accordance with generally accepted auditing standards. 

	 
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(iii)  Officer’s Compliance Certificate. Together with each delivery of any financial statement (a) pursuant to clauses (i) and (ii) of this Section 7.1(A), an Officer’s Certificate from the chief financial officer or treasurer of the Borrower, substantially in the form of Exhibit G attached hereto and made a part hereof, stating that (x) the representations and warranties of the Borrower contained in Article VI hereof shall have been true and correct in all material respects as of the date of such Officer’s Certificate and (y) as of the date of such Officer’s Certificate no Default or Unmatured Default exists, or if any Default or Unmatured Default exists, stating the nature and status thereof and (b) pursuant to clauses (i) and (ii) of this Section 7.1(A), a compliance certificate, substantially in the form of Exhibit H attached hereto and made a part hereof, signed by the Borrower’s chief financial officer or treasurer setting forth calculations for the period which demonstrate compliance, when applicable, with the provisions of Sections 7.3(A) through (Q) and Section 7.4, and which calculate the Leverage Ratio for purposes of determining the then Applicable Margin, Applicable Facility Fee Percentage, Applicable Utilization Fee Percentage and Applicable L/C Fee Percentage. 

(B)  Notice of Default and Adverse Developments. Promptly upon any of the chief executive officer, chief operating officer, chief financial officer, treasurer or controller of the Borrower obtaining actual knowledge (i) of any condition or event which constitutes a Default or Unmatured Default, or becoming aware that any Lender or Administrative Agent has given any written notice with respect to a claimed Default or Unmatured Default under this Agreement, (ii) that any Person having the authority to give such a notice has given any written notice to the Borrower or any Subsidiary of the Borrower or taken any other action with respect to a claimed default or event or condition of the type referred to in Section 8.1(E), or (iii) that any other development, financial or otherwise, which could reasonably be expected to have a Material Adverse Effect has occurred specifying (a) the nature and period of existence of any such claimed default, Default, Unmatured Default, condition or event, (b) the notice given or action taken by such Person in connection therewith, and (c) what action the Borrower has taken, is taking and proposes to take with respect thereto. 

(C)  ERISA Notices. Deliver or cause to be delivered to the Administrative Agent and the Lenders, at the Borrower’s expense, the following information and notices as soon as reasonably possible, and in any event: 

(i)  within ten (10) Business Days after any member of the Controlled Group obtains knowledge that a Termination Event has occurred which could reasonably be expected to subject the Borrower to liability individually or in the aggregate in excess of $25,000,000, a written statement of the chief financial officer of the Borrower describing such Termination Event and the action, if any, which the member of the Controlled Group has taken, is taking or proposes to take with respect thereto, and when known, any action taken or threatened by the IRS, DOL or PBGC with respect thereto; 

(ii)  within ten (10) Business Days after the filing of any funding waiver request with the IRS, a copy of such funding waiver request and thereafter all communications received by the Borrower or a member of the Controlled Group with respect to such request within ten (10) Business Days after such communication is received; and 

	 
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(iii)  within ten (10) Business Days after the Borrower or any member of the Controlled Group knows or has reason to know that (a) a Multiemployer Plan has been terminated, (b) the administrator or plan sponsor of a Multiemployer Plan intends to terminate a Multiemployer Plan, or (c) the PBGC has instituted or will institute proceedings under Section 4042 of ERISA to terminate a Multiemployer Plan, a notice describing such matter. 

For purposes of this Section 7.1(C), the Borrower and any member of the Controlled Group shall be deemed to know all facts known by the administrator of any Plan of which the Borrower or any member of the Controlled Group is the plan sponsor. 

(D)  Other Indebtedness. Deliver to the Administrative Agent (i) a copy of each regular report, notice or communication regarding potential or actual defaults (including any accompanying officer’s certificate) delivered by or on behalf of the Borrower to the holders of funded Material Indebtedness, including, without limitation holders of Indebtedness under any Financing Facility, pursuant to the terms of the agreements governing such Indebtedness, such delivery to be made at the same time and by the same means as such notice or other communication is delivered to such holders, and (ii) a copy of each notice received by the Borrower from the holders of funded Material Indebtedness who are authorized and/or have standing to deliver such notice pursuant to the terms of such Indebtedness, such delivery to be made promptly after such notice is received by Borrower. 

(E)  Other Reports. Deliver or cause to be delivered to the Administrative Agent and the Lenders copies of all financial statements, reports and notices, if any, sent by the Borrower to its securities holders or filed with the Commission by the Borrower, other than Reports on Form 8-K which contain only information furnished pursuant to Item 12 thereof. 

(F)  Environmental Notices. As soon as possible and in any event within ten (10) days after receipt by the Borrower, deliver or cause to be delivered to the Administrative Agent a copy of (i) any notice or claim to the effect that the Borrower or any of its Subsidiaries is or may be liable to any Person as a result of the Release by the Borrower, any of its Subsidiaries, or any other Person of any Contaminant into the environment, and (ii) any notice alleging any violation of any Environmental, Health or Safety Requirements of Law by the Borrower or any of its Subsidiaries if, in either case, such notice or claim relates to an event which could reasonably be expected to subject the Borrower and each of its Subsidiaries to liability individually or in the aggregate in excess of $25,000,000. 

(G)  Amendments to Financing Facilities. Promptly after the execution thereof, deliver or cause to be delivered to the Administrative Agent copies of all material amendments to any of the documents evidencing Indebtedness extended to the Borrower or any of its Subsidiaries under any of the Financing Facilities. 

(H)  Other Information. Promptly upon receiving a request therefor from the Administrative Agent, prepare and deliver to the Administrative Agent and the Lenders such other information with respect to the Borrower, any of its Subsidiaries, or their respective businesses and assets, including, without limitation, schedules identifying and describing any

 

	 
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Asset Sale (and the use of the net cash proceeds thereof), as from time to time may be reasonably requested by the Administrative Agent. 

7.2  Affirmative Covenants. 

(A)  Corporate Existence, Etc. Except as permitted pursuant to Section 7.3(H), the Borrower shall, and shall cause each of its Subsidiaries to, at all times maintain its existence and preserve and keep, or cause to be preserved and kept, in full force and effect its rights and franchises material to its businesses. 

(B)  Corporate Powers; Conduct of Business. The Borrower shall, and shall cause each of its Material Subsidiaries to, qualify and remain qualified to do business in each jurisdiction in which the nature of its business requires it to be so qualified and where the failure to be so qualified will have or would reasonably be expected to have a Material Adverse Effect. the Borrower will, and will cause each Material Subsidiary to, carry on and conduct its business in substantially the same manner and in substantially the same fields of enterprise as it is presently conducted unless the failure of the Borrower or its Material Subsidiaries to carry on and conduct its business as so described would not reasonably be expected to have a Material Adverse Effect. 

(C)  Compliance with Laws, Etc. The Borrower shall, and shall cause its Subsidiaries to, (a) comply with all Requirements of Law and all restrictive covenants affecting such Person or the business, properties, assets or operations of such Person, and (b) obtain as needed all permits necessary for its operations and maintain such permits in good standing unless, in either case, failure to comply or obtain such permits would not reasonably be expected to have a Material Adverse Effect. 

(D)  Payment of Taxes and Claims; Tax Consolidation. The Borrower shall pay, and cause each of its Subsidiaries to pay, (i) all taxes, assessments and other governmental charges imposed upon it or on any of its properties or assets or in respect of any of its franchises, business, income or property before any penalty or interest accrues thereon, and (ii) all claims (including, without limitation, claims for labor, services, materials and supplies) for sums which have become due and payable and which by law have or may become a Lien (other than a Lien permitted by Section 7.3(C)) upon any of the Borrower’s or such Subsidiary’s property or assets, prior to the time when any penalty or fine shall be incurred with respect thereto; provided, however, that no such taxes, assessments and governmental charges referred to in clause (i) above or claims referred to in clause (ii) above (and interest, penalties or fines relating thereto) need be paid if being contested in good faith by appropriate proceedings diligently instituted and conducted and if such reserve or other appropriate provision, if any, as shall be required in conformity with Agreement Accounting Principles shall have been made therefor. 

(E)  Insurance. The Borrower shall maintain for itself and its Subsidiaries, or shall cause each of its Subsidiaries to maintain in full force and effect, insurance policies and programs, with such deductibles or self-insurance amounts as reflect coverage that is reasonably consistent with prudent industry practice as determined by the Borrower. 

	 
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(F)  Inspection of Property; Books and Records; Discussions. The Borrower shall permit and cause each of the Borrower’s Subsidiaries to permit, any authorized representative(s) designated by either the Administrative Agent or any Lender to visit and inspect any of the properties of the Borrower or any of its Subsidiaries, to examine their respective financial and accounting records and other material data relating to their respective businesses or the transactions contemplated hereby (including, without limitation, in connection with environmental compliance, hazard or liability), and to discuss their affairs, finances and accounts with their officers and independent certified public accountants, all upon reasonable notice and at such reasonable times during normal business hours, as often as may be reasonably requested (provided that an officer of the Borrower or any of its Subsidiaries may, if it so desires, be present at and participate in any such discussion). The Borrower shall keep and maintain, and cause each of the Borrower’s Subsidiaries to keep and maintain, in all material respects, proper books of record and account in which entries in conformity with Agreement Accounting Principles shall be made of all dealings and transactions in relation to their respective businesses and activities. If a Default has occurred and is continuing, the Borrower, upon the Administrative Agent’s request, shall turn over copies of any such records to the Administrative Agent or its representatives. 

(G)  ERISA Compliance. The Borrower shall, and shall cause each of the Borrower’s Subsidiaries to, establish, maintain and operate all Plans to comply in all material respects with the provisions of ERISA and shall operate all Plans and Non-ERISA Commitments to comply in all material respects with the applicable provisions of the Code, all other applicable laws, and the regulations and interpretations thereunder and the respective requirements of the governing documents for such Plans and Non-ERISA Commitments, except for any noncompliance which, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. 

(H)  Maintenance of Property. The Borrower shall cause all property necessary for the conduct of its business or the business of any Subsidiary to be maintained and kept in good condition, repair and working order and supplied with all necessary equipment and shall cause to be made all necessary repairs, renewals, replacements, betterments and improvements thereof, all as in the judgment of the Borrower may be necessary for the conduct of its business; provided, however, that nothing in this Section 7.2(H) shall prevent the Borrower from discontinuing the operation or maintenance of any of such property if such discontinuance is, in the judgment of the Borrower, desirable in the conduct of its business or the business of any Subsidiary and not disadvantageous in any material respect to the Administrative Agent or the Lenders. 

(I)  Environmental Compliance. The Borrower and its Subsidiaries shall comply with all Environmental, Health or Safety Requirements of Law, except where noncompliance will not have or is not reasonably likely to subject the Borrower or any of its Subsidiaries, individually or in the aggregate, to liability in excess of $30,000,000. 

(J)  Use of Proceeds. The Borrower shall use the proceeds of the Loans solely for the general corporate purposes of the Borrower and its Subsidiaries, including, without limitation, to finance Permitted Acquisitions and to refinance indebtedness outstanding under the Existing Credit Agreements. 

	 
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(K)  Addition of Subsidiary Guarantors. 

(a)  New Subsidiaries. The Borrower shall cause each New Subsidiary that is, at any time, a Material Domestic Subsidiary (other than a SPV) to deliver to the Administrative Agent an executed Supplement to become a Subsidiary Guarantor under the Subsidiary Guaranty in the form of Exhibit I attached hereto (a "Supplement") and appropriate corporate resolutions, opinions and other documentation in form and substance reasonably satisfactory to the Administrative Agent, such Supplement and other documentation to be delivered to the Administrative Agent as promptly as possible upon the creation, acquisition of or capitalization thereof or if otherwise necessary to remain in compliance with Section 7.3(Q), but in any event within thirty (30) days of such creation, acquisition or capitalization. 

(b)  Additional Material Domestic Subsidiaries. If any consolidated Subsidiary of the Borrower (other than a New Subsidiary to the extent addressed in Section 7.2(K)(a) or a SPV) becomes a Material Domestic Subsidiary, the Borrower shall cause any such Material Domestic Subsidiary to deliver to the Administrative Agent an executed Supplement to become a Subsidiary Guarantor and appropriate corporate resolutions, opinions and other documentation in form and substance reasonably satisfactory to the Administrative Agent in connection therewith, such Supplement and other documentation to be delivered to the Administrative Agent as promptly as possible but in any event within thirty (30) days following the date on which such consolidated Subsidiary became a Material Domestic Subsidiary. 

(c)  Additional Subsidiary Guarantors. 

(i)  If at any time a member of the Senior Management Team of the Borrower has actual knowledge that the aggregate assets of all of the Borrower’s domestic consolidated Subsidiaries (other than SPVs) which are not Subsidiary Guarantors exceed ten percent (10%) of Consolidated Domestic Assets of the Borrower and its consolidated Subsidiaries (other than the SPVs), as calculated by the Borrower, the Borrower shall cause such domestic consolidated Subsidiaries as are necessary to reduce such aggregate assets to or below ten percent (10%) of such Consolidated Domestic Assets to deliver to the Administrative Agent executed Supplements to become Subsidiary Guarantors and appropriate corporate resolutions, opinions and other documentation in form and substance reasonably satisfactory to the Administrative Agent in connection therewith, such Supplements and other documentation to be delivered to the Administrative Agent as promptly as possible but in any event within thirty (30) days following the initial date on which a member of the Senior Management Team of the Borrower obtained actual knowledge that such aggregate assets exceed ten percent (10%) of such Consolidated Domestic Assets. 

(ii)  If at any time any Subsidiary of the Borrower which is not a Subsidiary Guarantor guaranties any Indebtedness of the Borrower for which the Borrower is a primary obligor (other than solely as a guarantor of obligations of its Affiliates or other third parties), other than the Indebtedness hereunder, the Borrower shall cause such Subsidiary to deliver to the Administrative Agent an executed Supplement to become a Subsidiary Guarantor and appropriate corporate resolutions, opinions and other documentation in form and substance reasonably satisfactory to the Administrative Agent in connection therewith, such Supplement and other documentation to be delivered to the Administrative Agent as promptly as possible but

 

	 
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in any event within thirty (30) days following the delivery of the guaranty of such other Indebtedness. 

(L)  Singapore Facility No-Conflicts Opinion. In the event that the Singapore Credit Agreement and related facility documents are not effective as of the Closing Date, the Borrower shall deliver, within five (5) days following the effective date thereof, a written opinion of the Loan Parties’ counsel, addressed to the Administrative Agent and the Lenders, which shall include a confirmation of the opinion as to the absence of a conflict between this Agreement and the Singapore Credit Agreement and related material facility documents to be delivered pursuant to Section 5.1(5) hereof (taking into account any changes from the draft versions thereof available as of the Closing Date to the final executed versions), in form and substance satisfactory to the Administrative Agent. 

7.3  Negative Covenants. 

(A)  Subsidiary Indebtedness. The Borrower shall not permit any of its Subsidiaries directly or indirectly to create, incur, assume or otherwise become or remain directly or indirectly liable with respect to any Indebtedness, except: 

(i)  Indebtedness of the Subsidiaries under the Subsidiary Guaranty; 

(ii)  Indebtedness in respect of guaranties executed by any Subsidiary Guarantor with respect to any Indebtedness of the Borrower, provided such Indebtedness is not incurred by the Borrower in violation of this Agreement; 

(iii)  Indebtedness in respect of obligations secured by Customary Permitted Liens; 

(iv)  Indebtedness constituting Contingent Obligations permitted by Section 7.3(E); 

(v)  Indebtedness arising from loans (a) from any Subsidiary to any wholly-owned Subsidiary or (b) from the Borrower to any wholly-owned Subsidiary; provided, that if any Subsidiary Guarantor is the obligor on such Indebtedness, such Indebtedness shall be expressly subordinate to the payment in full in cash of the Obligations on terms satisfactory to the Administrative Agent; 

(vi)  Indebtedness in respect of Hedging Obligations permitted under Section 7.3(O); 

(vii)  Indebtedness with respect to surety, appeal and performance bonds obtained by any of the Borrower’s Subsidiaries in the ordinary course of business; 

(viii)  Indebtedness incurred in connection with the Receivables Purchase Documents, provided, that Receivables Facility Attributed Indebtedness incurred in connection therewith does not exceed $250,000,000 in the aggregate at any time; and 

	 
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(ix)  Other Indebtedness in addition to that referred to elsewhere in this Section 7.3(A) incurred by the Borrower’s Subsidiaries; provided that no Default or Unmatured Default shall have occurred and be continuing at the date of such incurrence or would result therefrom; and provided further that the aggregate outstanding amount of all Indebtedness incurred by the Borrower’s Subsidiaries (other than Indebtedness incurred pursuant to clauses (i), (ii), (v), (vi) and (viii) of this Section 7.3(A)) shall not at any time exceed 20% of the Borrower’s Consolidated Total Capitalization. 

(B)  Sales of Assets. Neither the Borrower nor any of its Subsidiaries shall sell, assign, transfer, lease, convey or otherwise dispose of any property, whether now owned or hereafter acquired, or any income or profits therefrom, or enter into any agreement to do so, except: 

(i)  sales of Inventory in the ordinary course of business; 

(ii)  the disposition in the ordinary course of business of Equipment that is obsolete, excess or no longer used or useful in the Borrower’s or its Subsidiaries’ businesses; 

(iii)  any transfer of an interest in Receivables, Receivables Related Security, accounts or notes receivable on a limited recourse basis under the Receivables Purchase Documents, provided that such transfer qualifies as a legal sale and as a sale under Agreement Accounting Principles and that the amount of Receivables Facility Attributed Indebtedness does not exceed $250,000,000 at any one time outstanding; and 

(iv)  sales, assignments, transfers, leases, conveyances or other dispositions of other assets (other than pursuant to clauses (i), (ii) and (iii) above) if such transaction (a) is for not less than fair market value, and (b) when combined with all such other transactions (each such transaction being valued at book value) occurring during the fiscal year in which such proposed transaction occurred represents the disposition of not greater than fifteen percent (15%) of the Borrower’s Consolidated Assets (such Consolidated Assets being calculated for the end of the fiscal year immediately preceding that in which such transaction is proposed to be entered into). 

(C)  Liens. Neither the Borrower nor any of its Subsidiaries shall directly or indirectly create, incur, assume or permit to exist any Lien on or with respect to any of their respective property or assets except: 

(i)  Liens, if any, created by the Loan Documents or otherwise securing the Obligations; 

(ii)  Customary Permitted Liens; 

(iii)  Liens arising under the Receivables Purchase Documents; and 

(iv)  other Liens, including Permitted Existing Liens, (a) securing Indebtedness of the Borrower and/or (b) securing Indebtedness of the Borrower’s Subsidiaries as permitted pursuant to Section 7.3(A), all of which, when taken together, secure

 

	 
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Indebtedness in an aggregate outstanding principal amount not to exceed five percent (5%) of Consolidated Assets at any time. 

In addition, neither the Borrower nor any of its Subsidiaries shall become a party to any agreement, note, indenture or other instrument, or take any other action, which would prohibit the creation of a Lien on any of its properties or other assets in favor of the Administrative Agent for the benefit of itself and the Holders of Obligations, as collateral for the Obligations; provided, that any agreement, note, indenture or other instrument in connection with purchase money indebtedness (including Capitalized Leases) may prohibit the creation of a Lien in favor of the Administrative Agent for the benefit of itself and the Holders of Obligations on the items of property obtained with the proceeds of such purchase money indebtedness; provided, further, that (a) the Senior Note Purchase Agreements in connection with the Senior Notes may prohibit the creation of a Lien in favor of the Administrative Agent for the benefit of itself and the Holders of Obligations, as collateral for the Obligations; (b) the Receivables Purchase Documents may prohibit the creation of a Lien with respect to all of the assets of the SPV and with respect to the Receivables and Related Security of any of the Originators in favor of the Administrative Agent for the benefit of itself and the Holders of Obligations, as collateral for the Obligations; and (c) the Singapore Credit Agreement may prohibit the creation of a Lien by the Borrower on the Capital Stock or assets of members of the Singapore Regional Group to secure the Obligations. 

(D)  Investments. Except to the extent permitted pursuant to paragraph (G) below, neither the Borrower nor any of its Subsidiaries shall directly or indirectly make or own any Investment except: 

(i)  Investments in cash and Cash Equivalents; 

(ii)  Permitted Existing Investments in an amount not greater than the amount thereof on the Closing Date; 

(iii)  Investments in trade receivables or received in connection with the bankruptcy or reorganization of suppliers and customers and in settlement of delinquent obligations of, and other disputes with, customers and suppliers arising in the ordinary course of business; 

(iv)  Investments consisting of deposit accounts maintained by the Borrower and its Subsidiaries; 

(v)  Investments consisting of non-cash consideration from a sale, assignment, transfer, lease, conveyance or other disposition of property permitted by Section 7.3(B); 

(vi)  Investments in any consolidated Subsidiaries (other than joint ventures); 

(vii)  Investments in joint ventures and nonconsolidated Subsidiaries in an aggregate amount not to exceed $50,000,000; 

(viii)  Investments constituting Permitted Acquisitions; 

	 
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(ix)  Investments constituting Indebtedness permitted by Section 7.3(A) or Contingent Obligations permitted by Section 7.3(E); 

(x)  Investments in the SPVs (a) required in connection with the Receivables Purchase Documents and (b) resulting from the transfers permitted by Section 7.3(B)(iii); and 

(xi)  Investments in addition to those referred to elsewhere in this Section 7.3(D) in an aggregate amount not to exceed $50,000,000. 

(E)  Contingent Obligations. None of the Borrower’s Subsidiaries shall directly or indirectly create or become or be liable with respect to any Contingent Obligation, except: (i) recourse obligations resulting from endorsement of negotiable instruments for collection in the ordinary course of business; (ii) Permitted Existing Contingent Obligations; (iii) obligations, warranties, and indemnities, not relating to Indebtedness of any Person, which have been or are undertaken or made in the ordinary course of business and not for the benefit of or in favor of an Affiliate of the Borrower or such Subsidiary; (iv) Contingent Obligations with respect to surety, appeal and performance bonds obtained by the Borrower or any Subsidiary in the ordinary course of business; (v) Contingent Obligations of the Subsidiary Guarantors under the Subsidiary Guaranty; (vi) Contingent Obligations of Subsidiaries which are guarantors under a guaranty of the Indebtedness evidenced by the Senior Notes and the Senior Note Purchase Agreements; (vii) Contingent Obligations of the Borrower or any of its Subsidiaries arising under the Receivables Purchase Documents; (viii) Contingent Obligations of the Borrower, Energizer Singapore Pte. Ltd., a company organized under the laws of Singapore, and Sonca Products Ltd., a company organized under the laws of Hong Kong, under the Singapore Guarantees; (ix) Contingent Obligations of non-domestic Subsidiaries represented by guarantees of obligations of other non-domestic Subsidiaries; and (x) Contingent Obligations incurred in the ordinary course of business by any of the Borrower’s Subsidiaries in respect of obligations of any Subsidiary. 

(F)  Conduct of Business; New Subsidiaries; Acquisitions. Except as expressly provided in clause (c) in the definition of "Permitted Acquisition" below, neither the Borrower nor any of its Subsidiaries shall engage in any business other than the businesses engaged in by the Borrower and its Subsidiaries on the date of such transaction and any business or activities which are substantially similar, related or incidental thereto. The Borrower may create, acquire in a Permitted Acquisition or capitalize any Subsidiary (a "New Subsidiary") after the date hereof if (i) no Default or Unmatured Default shall have occurred and be continuing or would result therefrom; (ii) after such creation, acquisition or capitalization, all of the representations and warranties contained herein shall be true and correct; and (iii) after such creation, acquisition or capitalization the Borrower shall be in compliance with the terms of Sections 7.2(K) and 7.3(Q). 

Without in any way limiting the foregoing, neither the Borrower nor any of its Subsidiaries shall make any Acquisitions, other than Acquisitions meeting the following requirements or otherwise approved by the Required Lenders (each such Acquisition constituting a "Permitted Acquisition"): 

	 
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(a)  no Default or Unmatured Default shall have occurred and be continuing or would result from such Acquisition or the incurrence of any Indebtedness in connection therewith, and all of the representations and warranties contained herein shall be true and correct on and as of the date such Acquisition with the same effect as though made on and as of such date; 

(b)  the purchase is consummated pursuant to a negotiated acquisition agreement on a non-hostile basis pursuant to an acquisition agreement approved by the board of directors or other applicable governing body of the Seller prior to the commencement thereof; 

(c)  the businesses being acquired shall be consumer product companies or other businesses that are substantially similar, related or incidental to the businesses or activities engaged in by the Borrower and its Subsidiaries as of the Closing Date, as well as suppliers to or distributors of products similar to those of the Borrower and its Subsidiaries; provided, however, that the Borrower and its Subsidiaries shall be permitted to acquire businesses that do not satisfy the foregoing criteria in this clause (c) so long as the aggregate purchase price for all such acquisitions does not exceed five percent (5%) of the Borrower’s consolidated tangible net assets (on a pro forma  basis) as of the date of the consummation of such Acquisition; and 

(d)  prior to each such Acquisition, the Borrower shall determine that after giving effect to such Acquisition and the incurrence of any Indebtedness by the Borrower or any of its Subsidiaries, to the extent permitted by Section 7.3(A), in connection therewith, on a pro forma  basis using historical audited and reviewed unaudited financial statements obtained from the seller, broken down by fiscal quarter in the Borrower’s reasonable judgment, as if the Acquisition and such incurrence of Indebtedness had occurred on the first day of the twelve-month period ending on the last day of the Borrower’s most recently completed fiscal quarter, the Borrower would have been in compliance with the financial covenants in Section 7.4 and not otherwise in Default. 

(G)  Transactions with Shareholders and Affiliates. Except for (a) the transactions set forth on Schedule 7.3(G), (b) Permitted Receivables Transfers and (c) Investments permitted by Section 7.3(D), neither the Borrower nor any of its Subsidiaries shall directly or indirectly enter into or permit to exist any transaction (including, without limitation, the purchase, sale, lease or exchange of any property or the rendering of any service) with any holder or holders of any of the Equity Interests of the Borrower, or with any Affiliate of the Borrower which is not its Subsidiary, on terms that are less favorable to the Borrower or any of its Subsidiaries, as applicable, than those that might be obtained in an arm’s length transaction at the time from Persons who are not such a holder or Affiliate. 

(H)  Restriction on Fundamental Changes. Neither the Borrower nor any of its Subsidiaries shall enter into any merger or consolidation, or liquidate, wind-up or dissolve (or suffer any liquidation or dissolution), or convey, lease, sell, transfer or otherwise dispose of, in one transaction or series of transactions, all or substantially all of the Borrower’s or any such Subsidiary’s business or property, whether now or hereafter acquired, except (i) transactions permitted under Sections 7.3(B) or 7.3(F) (including the liquidation, winding up or dissolution of a Subsidiary in connection with a transaction permitted under Section 7.3(B)) and (ii) a Subsidiary of the Borrower may be merged into, liquidated into or consolidated with the Borrower (in which case the Borrower shall be the surviving corporation) or any wholly-owned

 

	 
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Subsidiary of the Borrower, provided if a Subsidiary Guarantor is merged into, liquidated into or consolidated with another Subsidiary of the Borrower, the surviving Subsidiary shall also be or shall become a Subsidiary Guarantor to the extent required under Section 7.2(K) or 7.3(Q) hereunder. 

(I)  Sales and Leasebacks. Neither the Borrower nor any of its Subsidiaries shall become liable, directly, by assumption or by Contingent Obligation, with respect to any lease, whether an operating lease or a Capitalized Lease, of any property (whether real or personal or mixed), (i) which it or one of its Subsidiaries sold or transferred or is to sell or transfer to any other Person, or (ii) which it or one of its Subsidiaries intends to use for substantially the same purposes as any other property which has been or is to be sold or transferred by it or one of its Subsidiaries to any other Person in connection with such lease, unless in either case the sale involved is not prohibited under Section 7.3(B) and the lease involved is not prohibited under Section 7.3(A). 

(J)  Margin Regulations; Use of Proceeds. Neither the Borrower nor any of its Subsidiaries, shall use all or any portion of the proceeds of any credit extended under this Agreement (i) to purchase or carry Margin Stock or (ii) for any purpose other than those set forth in Section 7.2(J). 

(K)  ERISA. The Borrower shall not: 

(i)  permit to exist any accumulated funding deficiency (as defined in Sections 302 of ERISA and 412 of the Code), with respect to any Benefit Plan, whether or not waived; 

(ii)  terminate, or permit any Controlled Group member to terminate, any Benefit Plan which would result in liability of the Borrower or any Controlled Group member under Title IV of ERISA; 

(iii)  fail, or permit any Controlled Group member to fail, to pay any required installment or any other payment required under Section 412 of the Code on or before the due date for such installment or other payment; or 

(iv)  permit any unfunded liabilities with respect to any Foreign Pension Plan; 

except where such transactions, events, circumstances, or failures are not, individually or in the aggregate, reasonably expected to result in liability individually or in the aggregate in excess of $25,000,000 or have a Material Adverse Effect. 

(L)  Corporate Documents. Neither the Borrower nor any of its Subsidiaries shall amend, modify or otherwise change any of the terms or provisions in any of their respective constituent documents as in effect on the date hereof in any manner adverse to the interests of the Lenders, without the prior written consent of the Required Lenders. 

(M)  Fiscal Year. Neither the Borrower nor any of its consolidated Subsidiaries shall change its fiscal year for accounting or tax purposes from a twelve-month period ending September 30 of each year. 

	 
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(N)  Subsidiary Covenants. The Borrower will not, and will not permit any Subsidiary to, create or otherwise cause to become effective any consensual encumbrance or restriction of any kind on the ability of any Subsidiary to pay dividends or make any other distribution on its stock, redeem or repurchase its stock, make any other similar payment or distribution, pay any Indebtedness or other Obligation owed to the Borrower or any other Subsidiary, make loans or advances or other Investments in the Borrower or any other Subsidiary, to sell, transfer or otherwise convey any of its property to the Borrower or any other Subsidiary or merge, consolidate with or liquidate into the Borrower or any other Subsidiary other than pursuant to (i) this Agreement, (ii) the Receivables Purchase Documents and (iii) the Singapore Credit Agreement; provided, that the Singapore Credit Agreement shall not in any way prohibit any member of the Singapore Regional Group from paying dividends or making any other distribution on its stock, redeeming or repurchasing its stock, making any other similar payment or distribution, or paying any Indebtedness or other Obligation owed to the Borrower or any Subsidiary Guarantor. 

(O)  Hedging Obligations. The Borrower shall not and shall not permit any of its Subsidiaries to enter into any Hedging Arrangements other than Hedging Arrangements entered into by the Borrower or its Subsidiaries pursuant to which the Borrower or such Subsidiary has hedged its or its Subsidiaries’ reasonably estimated interest rate, foreign currency or commodity exposure and which are of a non-speculative nature. 

(P)  Issuance of Disqualified Stock. From and after the Closing Date, neither the Borrower, nor any of its Subsidiaries shall issue any Disqualified Stock. All issued and outstanding Disqualified Stock shall be treated as Indebtedness for borrowed money for all purposes of this Agreement, and the amount of such deemed Indebtedness shall be the aggregate amount of the liquidation preference of such Disqualified Stock. 

(Q)  Non-Guarantor Subsidiaries. The Borrower will not at any time permit the aggregate assets of all of the Borrower’s domestic consolidated Subsidiaries (other than the SPVs) which are not Subsidiary Guarantors to exceed ten percent (10%) of Consolidated Domestic Assets of the Borrower and its consolidated Subsidiaries (other than the SPVs). The Borrower shall not permit any of its Subsidiaries (including non-domestic Subsidiaries) to guaranty any Indebtedness of the Borrower other than the Indebtedness hereunder unless each such Subsidiary is a Subsidiary Guarantor under the Subsidiary Guaranty. 

7.4  Financial Covenants. The Borrower shall comply with the following: 

(A)  Maximum Leverage Ratio. The Borrower shall not permit the ratio (the "Leverage Ratio") of (i) the sum of (a) all Indebtedness of the Borrower and its Subsidiaries to (ii) EBITDA at any time to be greater than 3.50 to 1.00. The Leverage Ratio shall be calculated, in each case, determined as of the last day of each fiscal quarter based upon (a) for Indebtedness, Indebtedness as of the last day of each such fiscal quarter; and (b) for EBITDA, the actual amount for the four-quarter period ending on such day, calculated, with respect to Permitted Acquisitions, on a pro forma  basis using unadjusted historical audited and reviewed unaudited financial statements obtained from the seller (with the EBITDA component thereof broken down by fiscal quarter in the Borrower’s reasonable judgment). 

	 
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(B)  Minimum Interest Expense Coverage Ratio. The Borrower shall maintain a ratio (the "Interest Expense Coverage Ratio") for any applicable period of (a) EBIT for such period to (b) Interest Expense for such period of greater than 3.00 to 1.00 for each fiscal quarter. The Interest Expense Coverage Ratio shall be calculated as of the last day of each fiscal quarter for the four-quarter period ending on such day, calculated, with respect to Permitted Acquisitions, on a pro forma  basis using unadjusted historical audited and reviewed unaudited financial statements obtained from the seller (with the EBITDA component thereof broken down by fiscal quarter in the Borrower’s reasonable judgment). 

ARTICLE VIII: DEFAULTS 

8.1  Defaults. Each of the following occurrences shall constitute a Default under this Agreement: 

(A)  Failure to Make Payments When Due. The Borrower shall (i) fail to pay when due any of the Obligations consisting of principal with respect to the Loans or (ii) shall fail to pay within five (5) Business Days of the date when due any of the other Obligations under this Agreement or the other Loan Documents. 

(B)  Breach of Certain Covenants. The Borrower shall fail duly and punctually to perform or observe any agreement, covenant or obligation binding on the Borrower or there shall otherwise be a breach of any covenant under: 

(i)  Sections 7.1 or 7.2 (other than Section 7.2(K) and (L)) and such failure or breach shall continue unremedied for thirty (30) days after the earlier to occur of (a) the date on which written notice from the Administrative Agent or any Lender is received by the Borrower of such breach and (b) the date on which a member of the Senior Management Team of the Borrower or any Subsidiary Guarantor had knowledge of the existence of such breach or should have known of the existence of such breach; or 

(ii)  Sections 7.2(K) and (L), 7.3 or 7.4. 

(C)  Breach of Representation or Warranty. Any representation or warranty made or deemed made by the Borrower to the Administrative Agent or any Lender herein or by the Borrower or any of its Subsidiaries in any of the other Loan Documents or in any statement or certificate at any time given by any such Person pursuant to any of the Loan Documents shall be false or misleading in any material respect on the date as of which made (or deemed made). 

(D)  Other Defaults. The Borrower shall default in the performance of or compliance with any term contained in this Agreement (other than as covered by paragraphs (A) or (B) of this Section 8.1), or the Borrower or any of its Subsidiaries shall default in the performance of or compliance with any term contained in any of the other Loan Documents, and such default shall continue for thirty (30) days after the earlier to occur of (a) the date on which written notice from the Administrative Agent or any Lender is received by the Borrower of such breach and (b) the date on which a member of the Senior Management Team of the Borrower or any Subsidiary Guarantor had knowledge of the existence of such breach or should have known of the existence of such breach. 

	 
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(E)  Default as to Other Indebtedness. The Borrower or any of its Subsidiaries shall fail to make any payment when due (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), beyond any period of grace provided, with respect to any Indebtedness (other than Indebtedness hereunder) which individually or together with other such Indebtedness as to which any such failure exists (other than hereunder) constitutes Material Indebtedness; or any breach, default or event of default (including any "Amortization Event" or event of like import in connection with the Receivables Purchase Facility) shall occur, or any other condition shall exist under any instrument, agreement or indenture pertaining to any such Material Indebtedness having such aggregate outstanding principal amount, beyond any period of grace, if any, provided with respect thereto, if the effect thereof is to cause an acceleration, mandatory redemption, a requirement that the Borrower or any of its Subsidiaries offer to purchase such Material Indebtedness or other required repurchase of such Material Indebtedness, or permit the holder(s) of such Material Indebtedness to accelerate the maturity of any such Material Indebtedness or require a redemption or other repurchase of such Material Indebtedness; or any such Material Indebtedness shall be otherwise declared to be due and payable (by acceleration or otherwise) or required to be prepaid, redeemed or otherwise repurchased by the Borrower or any of its Subsidiaries (other than by a regularly scheduled required prepayment) prior to the stated maturity thereof. 

(F)  Involuntary Bankruptcy; Appointment of Receiver, Etc. 

(i)  An involuntary case shall be commenced against the Borrower or any of the Borrower’s Material Subsidiaries and the petition shall not be dismissed, stayed, bonded or discharged within sixty (60) days after commencement of the case; or a court having jurisdiction in the premises shall enter a decree or order for relief in respect of the Borrower or any of the Borrower’s Material Subsidiaries in an involuntary case, under any applicable bankruptcy, insolvency or other similar law now or hereinafter in effect; or any other similar relief shall be granted under any applicable federal, state, local or foreign law. 

(ii)  A decree or order of a court having jurisdiction in the premises for the appointment of a receiver, liquidator, sequestrator, trustee, custodian or other officer having similar powers over the Borrower or any of the Borrower’s Material Subsidiaries or over all or a substantial part of the property of the Borrower or any of the Borrower’s Material Subsidiaries shall be entered; or an interim receiver, trustee or other custodian of the Borrower or any of the Borrower’s Material Subsidiaries or of all or a substantial part of the property of the Borrower or any of the Borrower’s Material Subsidiaries shall be appointed or a warrant of attachment, execution or similar process against any substantial part of the property of the Borrower or any of the Borrower’s Material Subsidiaries shall be issued and any such event shall not be stayed, dismissed, bonded or discharged within sixty (60) days after entry, appointment or issuance. 

(G)  Voluntary Bankruptcy; Appointment of Receiver, Etc. The Borrower or any of the Borrower’s Material Subsidiaries shall (i) commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, (ii) consent to the entry of an order for relief in an involuntary case, or to the conversion of an involuntary case to a voluntary case, under any such law, (iii) consent to the appointment of or taking possession by a

 

	 
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receiver, trustee or other custodian for all or a substantial part of its property, (iv) make any assignment for the benefit of creditors, (v) take any corporate action to authorize any of the foregoing or (vi) is generally not paying, or admits in writing its inability to pay, its debts as they become due. 

(H)  Judgments and Attachments. Any money judgment(s) (other than a money judgment covered by insurance as to which the insurance company has not disclaimed or reserved the right to disclaim coverage), writ or warrant of attachment, or similar process against the Borrower or any of its Subsidiaries or any of their respective assets involving in any single case or in the aggregate an amount in excess of $30,000,000 is or are entered and shall remain undischarged, unvacated, unbonded or unstayed for a period of sixty (60) days or in any event later than fifteen (15) days prior to the date of any proposed sale thereunder. 

(I)  Dissolution. Any order, judgment or decree shall be entered against the Borrower decreeing its involuntary dissolution or split up and such order shall remain undischarged and unstayed for a period in excess of sixty (60) days; or the Borrower shall otherwise dissolve or cease to exist except as specifically permitted by this Agreement. 

(J)  Loan Documents. At any time, for any reason, any Loan Document as a whole that materially affects the ability of the Administrative Agent, or any of the Lenders to enforce the Obligations ceases to be in full force and effect or the Borrower or any of the Borrower’s Subsidiaries party thereto seeks to repudiate its obligations under any Loan Document. 

(K)  Termination Event. Any Termination Event occurs which the Required Lenders believe is reasonably likely to subject either the Borrower or any of its Subsidiaries to liability individually or in the aggregate in excess of $30,000,000. 

(L)  Waiver of Minimum Funding Standard. If the plan administrator of any Plan applies under Section 412(d) of the Code for a waiver of the minimum funding standards of Section 412(a) of the Code and the Required Lenders believe the substantial business hardship upon which the application for the waiver is based could reasonably be expected to subject either the Borrower or any of its Subsidiaries to liability individually or in the aggregate in excess of $30,000,000. 

(M)  Change of Control. A Change of Control shall occur. 

(N)  Hedging Agreements. Nonpayment by the Borrower of any material obligation under any Hedging Agreement or the breach by the Borrower of any material term, provision or condition contained in any such Hedging Agreement. 

(O)  Environmental Matters. The Borrower or any of its Subsidiaries shall be the subject of any proceeding or investigation pertaining to (i) the Release by the Borrower or any of its Subsidiaries of any Contaminant into the environment, (ii) the liability of the Borrower or any of its Subsidiaries arising from the Release by any other Person of any Contaminant into the environment, or (iii) any violation of any Environmental, Health or Safety Requirements of Law which by the Borrower or any of its Subsidiaries, which, in any case, has or is reasonably likely to subject either the Borrower or its Subsidiaries to liability individually or in the aggregate in excess of $30,000,000. 

	 
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(P)  Subsidiary Guarantor Revocation. Any Subsidiary Guarantor shall terminate or revoke any of its obligations under the Subsidiary Guaranty or breach any of the material terms of such Subsidiary Guaranty. 

(Q)  Receivables Purchase Document Events. A "Termination Event" (as defined in the 2000 Receivables Sale Agreement), an "Amortization Event" (as defined in the 2000 Receivables Purchase Agreement) or any other breach or event of like import under any replacement Receivables Purchase Documents permitted hereby (any such event, a "Receivables Facility Trigger Event") shall (i) occur with respect to the conduct or performance of (a) any Originator, (b) any servicer of the Receivables (so long as such servicer is the Borrower or a Subsidiary thereof) under the Receivables Purchase Documents, (c) any guarantor of the obligations of any Originator or servicer under the Receivables Purchase Documents or (d) any of their respective Subsidiaries other than an SPV and (ii) result in the termination of reinvestments of collections or proceeds of Receivables and Related Security under any agreements evidencing Receivables Facility Attributed Indebtedness (it being understood and agreed that the occurrence of a Receivables Facility Trigger Event resulting solely from (x) the conduct or performance of an SPV and/or (y) the performance or quality of the Receivables securing the obligations under the Receivables Purchase Documents, taken together with the circumstances described in the foregoing clause (ii), shall not give rise to a Default under this Section 8.1(Q)). 

A Default shall be deemed "continuing" until cured or until waived in writing in accordance with Section 9.3. 

ARTICLE IX: ACCELERATION, DEFAULTING LENDERS; WAIVERS, AMENDMENTS AND REMEDIES 

9.1  Termination of Revolving Loan Commitments; Acceleration. If any Default described in Section 8.1(F), (G) or (I) occurs with respect to the Borrower, the obligations of the Lenders to make Loans hereunder and the obligation of the Issuing Banks to issue Letters of Credit hereunder shall automatically terminate and the Obligations shall immediately become due and payable without any election or action on the part of the Administrative Agent or any Lender. If any other Default occurs, the Required Lenders may terminate or suspend the obligations of the Lenders to make Loans hereunder and the obligation of the Issuing Banks to issue Letters of Credit hereunder, or declare the Obligations to be due and payable, or both, whereupon the Obligations shall become immediately due and payable, without presentment, demand, protest or notice of any kind, all of which the Borrower expressly waives. Without in any way limiting the foregoing, after the occurrence and during the continuance of a Default, the Administrative Agent shall be entitled to exercise its right to require cash collateral in support of 105% of the then aggregate outstanding L/C Obligations in accordance with Section 3.11. 

9.2  Defaulting Lender. In the event that any Lender fails to fund its Pro Rata Share of any Advance requested or deemed requested by the Borrower (or an Advance to repay Swing Line Loans to the Swing Line Bank or Reimbursement Obligations to the Issuing Banks), which such Lender is obligated to fund under the terms of this Agreement (the funded portion of such Advance being hereinafter referred to as a "Non Pro Rata Loan"), until the earlier of such Lender’s cure of such failure and the termination of the Revolving Loan Commitments, the

 

	 
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proceeds of all amounts thereafter repaid to the Administrative Agent by the Borrower and otherwise required to be applied to such Lender’s share of all other Obligations pursuant to the terms of this Agreement shall be advanced to the Borrower by the Administrative Agent on behalf of such Lender to cure, in full or in part, such failure by such Lender, but shall nevertheless be deemed to have been paid to such Lender in satisfaction of such other Obligations. Notwithstanding anything in this Agreement to the contrary: 

(i)  the foregoing provisions of this Section 9.2 shall apply only with respect to the proceeds of payments of Obligations and shall not affect the conversion or continuation of Loans pursuant to Section 2.9; 

(ii)  any such Lender shall be deemed to have cured its failure to fund its Pro Rata Share, of any Advance at such time as an amount equal to such Lender’s original Pro Rata Share of the requested principal portion of such Advance is fully funded to the Borrower, whether made by such Lender itself or by operation of the terms of this Section 9.2, and whether or not the Non Pro Rata Loan with respect thereto has been repaid, converted or continued; 

(iii)  amounts advanced to the Borrower to cure, in full or in part, any such Lender’s failure to fund its Pro Rata Share of any Advance ("Cure Loans") shall bear interest at the rate applicable to Floating Rate Loans in effect from time to time, and for all other purposes of this Agreement shall be treated as if they were Floating Rate Loans; 

(iv)  regardless of whether or not a Default has occurred or is continuing, and notwithstanding the instructions of the Borrower as to its desired application, all repayments of principal which, in accordance with the other terms of this Agreement, would be applied to the outstanding Floating Rate Loans shall be applied first, ratably to all Floating Rate Loans constituting Non Pro Rata Loans, second, ratably to Floating Rate Loans other than those constituting Non Pro Rata Loans or Cure Loans and, third, ratably to Floating Rate Loans constituting Cure Loans; 

(v)  for so long as and until the earlier of any such Lender’s cure of the failure to fund its Pro Rata Share of any Advance and the termination of the Revolving Loan Commitments, the term "Required Lenders" for purposes of this Agreement shall mean Lenders (excluding all Lenders whose failure to fund their respective Pro Rata Share of such Advance have not been so cured) whose Pro Rata Shares represent greater than fifty percent (50%) of the aggregate Pro Rata Shares of such Lenders; and 

(vi)  for so long as and until any such Lender’s failure to fund its Pro Rata Share of any Advance is cured in accordance with Section 9.2(ii), (A) such Lender shall not be entitled to any Facility Fees or Utilization Fees with respect to its Revolving Loan Commitment and (B) such Lender shall not be entitled to any letter of credit fees, which Facility Fees, Utilization Fees and letter of credit fees shall accrue in favor of the Lenders which have funded their respective Pro Rata Share of such requested Advance, shall be allocated among such performing Lenders ratably based upon their relative Revolving Loan Commitments, and shall be calculated based upon the average amount by which the aggregate Revolving Loan Commitments of such performing Lenders exceeds the sum of

 

	 
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(I) the outstanding principal amount of the Loans owing to such performing Lenders, plus (II) the outstanding Reimbursement Obligations owing to such performing Lenders, plus (III) the aggregate participation interests of such performing Lenders arising pursuant to Section 3.6 with respect to undrawn and outstanding Letters of Credit. 

9.3  Amendments. Subject to the provisions of this Article IX, the Required Lenders (or the Administrative Agent with the consent in writing of the Required Lenders) and the Borrower may enter into agreements supplemental hereto for the purpose of adding or modifying any provisions to the Loan Documents or changing in any manner the rights of the Lenders or the Borrower hereunder or waiving any Default hereunder; provided, however, that no such supplemental agreement shall, without the consent of each Lender (which is not a defaulting Lender under the provisions of Section 9.2) affected thereby: 

(i)  Postpone or extend the Revolving Loan Termination Date or any other date fixed for any payment of principal of, or interest on, the Loans, the Reimbursement Obligations or any fees or other amounts payable to such Lender (other than any modifications of the provisions relating to amounts, timing or application of prepayments of the Loans and other Obligations, which modifications shall require the approval only of the Required Lenders). 

(ii)  Reduce the principal amount of any Loans or L/C Obligations, or reduce the rate or extend the time of payment of interest or fees thereon (other than (a) a waiver of the application of the default rate of interest pursuant to Section 2.10 hereof and (b) as a result of a change in the definition of Leverage Ratio or any of the components thereof or the method of calculation thereof). 

(iii)  Reduce the percentage specified in the definition of Required Lenders or any other percentage of Lenders specified to be the applicable percentage in this Agreement to act on specified matters or amend the definitions of "Required Lenders" or "Pro Rata Share". 

(iv)  Increase the amount of the Revolving Loan Commitment of such Lender hereunder or increase such Lender’s Pro Rata Share. 

(v)  Permit the Borrower to assign its rights under this Agreement. 

(vi)  Other than pursuant to a transaction permitted by the terms of this Agreement, release any guarantor from its obligations under the Subsidiary Guaranty. 

(vii)   Waive or amend any of the conditions set forth in Section 5.1. 

(viii)  Amend this Section 9.3. 

No amendment of any provision of this Agreement relating to (a) the Administrative Agent shall be effective without the written consent of the Administrative Agent, (b) Swing Line Loans shall be effective without the written consent of the Swing Line Bank and (c) any Issuing Bank shall be effective without the written consent of such Issuing Bank. The Administrative Agent may

 

	 
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waive payment of the fee required under Section 13.3(B) without obtaining the consent of any of the Lenders. 

9.4  Preservation of Rights. No delay or omission of the Lenders or the Administrative Agent to exercise any right under the Loan Documents shall impair such right or be construed to be a waiver of any Default or an acquiescence therein, and the making of a Loan or the issuance of a Letter of Credit notwithstanding the existence of a Default or the inability of the Borrower to satisfy the conditions precedent to such Loan or issuance of such Letter of Credit shall not constitute any waiver or acquiescence. Any single or partial exercise of any such right shall not preclude other or further exercise thereof or the exercise of any other right, and no waiver, amendment or other variation of the terms, conditions or provisions of the Loan Documents whatsoever shall be valid unless in writing signed by the Lenders required pursuant to Section 9.3, and then only to the extent in such writing specifically set forth. All remedies contained in the Loan Documents or by law afforded shall be cumulative and all shall be available to the Administrative Agent and the Lenders until all of the Obligations (other than contingent indemnity obligations) shall have been fully and indefeasibly paid and satisfied in cash, all financing arrangements among the Borrower and the Lenders shall have been terminated and all of the Letters of Credit shall have expired, been canceled or terminated. 

ARTICLE X: GENERAL PROVISIONS 

10.1  Survival of Representations. All representations and warranties of the Borrower contained in this Agreement shall survive delivery of this Agreement and the making of the Loans herein contemplated. 

10.2  Governmental Regulation. Anything contained in this Agreement to the contrary notwithstanding, no Lender shall be obligated to extend credit to the Borrower in violation of any limitation or prohibition provided by any applicable statute or regulation. 

10.3  Performance of Obligations. The Borrower agrees that after the occurrence and during the continuance of a Default, the Administrative Agent may, but shall have no obligation to, make any payment or perform any act required of the Borrower under any Loan Document to the extent the Administrative Agent determines that such action shall be necessary or advisable in order to protect or preserve the rights of the Lenders and Issuing Banks hereunder. The Administrative Agent shall use its reasonable efforts to give the Borrower notice of any action taken under this Section 10.3 prior to the taking of such action or promptly thereafter provided the failure to give such notice shall not affect the Borrower’s obligations in respect thereof. The Borrower agrees to pay the Administrative Agent, upon demand, the principal amount of all funds advanced by the Administrative Agent under this Section 10.3, together with interest thereon at the rate from time to time applicable to Floating Rate Loans from the date of such advance until the outstanding principal balance thereof is paid in full. If the Borrower fails to make payment in respect of any such advance under this Section 10.3 within one (1) Business Day after

 

	 
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the date the Borrower receives written demand therefor from the Administrative Agent, the Administrative Agent shall promptly notify each Lender and each Lender agrees that it shall thereupon make available to the Administrative Agent, in Dollars in immediately available funds, the amount equal to such Lender’s Pro Rata Share of such advance. If such funds are not made available to the Administrative Agent by such Lender within one (1) Business Day after the Administrative Agent’s demand therefor, the Administrative Agent will be entitled to recover any such amount from such Lender together with interest thereon at the Federal Funds Effective Rate for each day during the period commencing on the date of such demand and ending on the date such amount is received. The failure of any Lender to make available to the Administrative Agent its Pro Rata Share of any such unreimbursed advance under this Section 10.3 shall neither relieve any other Lender of its obligation hereunder to make available to the Administrative Agent such other Lender’s Pro Rata Share of such advance on the date such payment is to be made nor increase the obligation of any other Lender to make such payment to the Administrative Agent. All outstanding principal of, and interest on, advances made under this Section 10.3 shall constitute Obligations subject to the terms of this Agreement until paid in full by the Borrower. 

10.4  Headings. Section headings in the Loan Documents are for convenience of reference only, and shall not govern the interpretation of any of the provisions of the Loan Documents. 

10.5  Entire Agreement. The Loan Documents embody the entire agreement and understanding among the Borrower, the Administrative Agent and the Lenders and supersede all prior agreements and understandings among the Borrower, the Administrative Agent and the Lenders relating to the subject matter thereof other than the Fee Letters or any other prior agreements or understandings which are expressly stated to survive the execution and delivery of this Agreement. 

10.6  Several Obligations; Benefits of this Agreement. The respective obligations of the Lenders hereunder are several and not joint and no Lender shall be the partner or agent of any other Lender (except to the extent to which the Administrative Agent is authorized to act as such). The failure of any Lender to perform any of its obligations hereunder shall not relieve any other Lender from any of its obligations hereunder. This Agreement shall not be construed so as to confer any right or benefit upon any Person other than the parties to this Agreement and their respective successors and assigns. 

10.7  Expenses; Indemnification. 

(A)  Expenses. The Borrower shall reimburse the Administrative Agent and the Arrangers for any reasonable costs, internal charges and out-of-pocket expenses (including reasonable attorneys’ and paralegals’ fees and time charges of attorneys and paralegals for the Administrative Agent and the Arrangers, which attorneys and paralegals may be employees of the Administrative Agent or the Arrangers) paid or incurred by the Administrative Agent or the Arrangers in connection with the preparation, negotiation, execution, delivery, syndication, review, amendment modification and, after the occurrence and during the continuance of a Default or an Unmatured Default, administration of the Loan Documents. The Borrower also agrees to reimburse the Administrative Agent and the Arrangers and the Lenders for any reasonable costs and out-of-pocket expenses (including reasonable attorneys’ and paralegals’ fees and time charges of attorneys and paralegals for the Administrative Agent ad the Arrangers and the Lenders, which attorneys and paralegals may be employees of the Administrative Agent or the Arrangers or the Lenders) paid or incurred by the Administrative Agent or the Arrangers or any Lender in connection with the collection of the Obligations and enforcement of the Loan

 

	 
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Documents; provided, that after the occurrence and during the continuance of a Default, the Borrower agrees to reimburse the Administrative Agent, the Arrangers and the Lenders for all such costs and out-of-pocket expenses, whether or not reasonable. 

(B)  Indemnity. The Borrower further agrees to defend, protect, indemnify, and hold harmless the Administrative Agent, each Arranger, the Syndication Agent and each and all of the Lenders and each of their respective Affiliates, and each of such Administrative Agent’s, Syndication Agent’s, Arranger’s, Lender’s, or Affiliate’s respective officers, directors, trustees, investment advisors, employees, attorneys and agents (including, without limitation, those retained in connection with the satisfaction or attempted satisfaction of any of the conditions set forth in Article V) (collectively, the "Indemnitees") from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs, expenses of any kind or nature whatsoever (including, without limitation, the fees and disbursements of counsel for such Indemnitees in connection with any investigative, administrative or judicial proceeding, whether or not such Indemnitees shall be designated a party thereto), imposed on, incurred by, or asserted against such Indemnitees in any manner relating to or arising out of: 

(i)  this Agreement, the other Loan Documents, or any act, event or transaction related or attendant thereto, the making of the Loans, and the issuance of and participation in Letters of Credit hereunder, the management of such Loans or Letters of Credit, the use or intended use of the proceeds of the Loans or Letters of Credit hereunder, or any of the other transactions contemplated by the Loan Documents; or 

(ii)  any liabilities, obligations, responsibilities, losses, damages, personal injury, death, punitive damages, economic damages, consequential damages, treble damages, intentional, willful or wanton injury, damage or threat to the environment, natural resources or public health or welfare, costs and expenses (including, without limitation, attorney, expert and consulting fees and costs of investigation, feasibility or remedial action studies), fines, penalties and monetary sanctions, interest, direct or indirect, known or unknown, absolute or contingent, past, present or future relating to violation of any Environmental, Health or Safety Requirements of Law arising from or in connection with the past, present or future operations of the Borrower, its Subsidiaries or any of their respective predecessors in interest, or, the past, present or future environmental, health or safety condition of any respective property of the Borrower or its Subsidiaries, the presence of asbestos-containing materials at any respective property of the Borrower or its Subsidiaries or the Release or threatened Release of any Contaminant into the environment (collectively, the "Indemnified Matters"); 

provided, however, the Borrower shall have no obligation to an Indemnitee hereunder with respect to Indemnified Matters caused by or resulting from the willful misconduct or gross negligence of such Indemnitee with respect to the Loan Documents, as determined by the final non-appealed judgment of a court of competent jurisdiction. If the undertaking to indemnify, pay and hold harmless set forth in the preceding sentence may be unenforceable because it is violative of any law or public policy, the Borrower shall contribute the maximum portion which it is permitted to pay and satisfy under applicable law, to the payment and satisfaction of all Indemnified Matters incurred by the Indemnitees. 

	 
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Each Indemnitee, with respect to any action against it in respect of which indemnity may be sought under this Section, shall give written notice of the commencement of such action to the Borrower within a reasonable time after such Indemnitee is made a party to such action. Upon receipt of any such notice by the Borrower, unless such Indemnitee shall be advised by its counsel that there are or may be legal defenses available to such Indemnitee that are different from, in addition to, or in conflict with, the defenses available to the Borrower or any of its Subsidiaries, the Borrower may participate with the Indemnitee in the defense of such Indemnified Matter, including the employment of counsel consented to by such Indemnitee (which consent shall not be unreasonably withheld); provided, however, nothing provided herein shall entitle (a) the Borrower or any of its Subsidiaries to assume the defense of such Indemnified Matter or (b) any Indemnitee to effect any settlement in respect of any indemnified matter without the Borrower’s consent, such consent not to be unreasonably withheld or delayed. 

(C)  Waiver of Certain Claims; Settlement of Claims. The Borrower further agrees to assert no claim against any of the Indemnitees on any theory of liability seeking consequential, special, indirect, exemplary or punitive damages. No settlement of any claim asserted against or likely to be asserted against an Indemnitee shall be entered into by the Borrower or any if its Subsidiaries with respect to any claim, litigation, arbitration or other proceeding relating to or arising out of the transactions evidenced by this Agreement or the other Loan Documents (whether or not the Administrative Agent or any Lender or any other Indemnitee is a party thereto) unless such settlement releases such Indemnitee from any and all liability with respect thereto. 

(D)  Survival of Agreements. The obligations and agreements of the Borrower under this Section 10.7 shall survive the termination of this Agreement. 

10.8  Numbers of Documents. All statements, notices, closing documents, and requests hereunder shall be furnished to the Administrative Agent with sufficient counterparts so that the Administrative Agent may furnish one to each of the Lenders. 

10.9  Accounting. Except as provided to the contrary herein, all accounting terms used herein shall be interpreted and all accounting determinations hereunder shall be made in accordance with Agreement Accounting Principles. If any changes in generally accepted accounting principles are hereafter required or permitted and are adopted by the Borrower or any of its Subsidiaries with the agreement of its independent certified public accountants and such changes result in a change in the method of calculation of any of the financial covenants, tests, restrictions or standards herein or in the related definitions or terms used therein ("Accounting Changes"), the parties hereto agree, at the Borrower’s request, to enter into negotiations, in good faith, in order to amend such provisions in a credit neutral manner so as to reflect equitably such changes with the desired result that the criteria for evaluating the Borrower’s and its Subsidiaries’ financial condition shall be the same after such changes as if such changes had not been made; provided, however, until such provisions are amended in a manner reasonably satisfactory to the Administrative Agent and the Required Lenders, no Accounting Change shall be given effect in such calculations and all financial statements and reports required to be delivered hereunder shall be prepared in accordance with Agreement Accounting Principles without taking into account such Accounting Changes. In the event such amendment is entered

 

	 
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into, all references in this Agreement to Agreement Accounting Principles shall mean generally accepted accounting principles as of the date of such amendment. 

10.10  Severability of Provisions. Any provision in any Loan Document that is held to be inoperative, unenforceable, or invalid in any jurisdiction shall, as to that jurisdiction, be inoperative, unenforceable, or invalid without affecting the remaining provisions in that jurisdiction or the operation, enforceability, or validity of that provision in any other jurisdiction, and to this end the provisions of all Loan Documents are declared to be severable. 

10.11   Nonliability of Lenders. The relationship between the Borrower and the Lenders and the Administrative Agent shall be solely that of borrower and lender. Neither the Administrative Agent nor any Lender shall have any fiduciary responsibilities to the Borrower. Neither the Administrative Agent nor any Lender undertakes any responsibility to the Borrower to review or inform the Borrower of any matter in connection with any phase of the Borrower’s business or operations. 

10.12  GOVERNING LAW. THE ADMINISTRATIVE AGENT ACCEPTS THIS AGREEMENT, ON BEHALF OF ITSELF AND THE LENDERS, AT CHICAGO, ILLINOIS BY ACKNOWLEDGING AND AGREEING TO IT THERE. ANY DISPUTE BETWEEN THE BORROWER AND THE ADMINISTRATIVE AGENT, ANY LENDER OR ANY OTHER HOLDER OF OBLIGATIONS ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH, THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS, AND WHETHER ARISING IN CONTRACT, TORT, EQUITY, OR OTHERWISE, SHALL BE RESOLVED IN ACCORDANCE WITH THE INTERNAL LAWS (INCLUDING 735 ILCS 105/5-1 ET SEQ. BUT OTHERWISE WITHOUT REGARD TO THE CONFLICTS OF LAWS PROVISIONS) OF THE STATE OF ILLINOIS. 

10.13  CONSENT TO JURISDICTION; JURY TRIAL. 

(A)  EXCLUSIVE JURISDICTION. EXCEPT AS PROVIDED IN SUBSECTION (B), EACH OF THE PARTIES HERETO AGREES THAT ALL DISPUTES AMONG THEM ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH, THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS WHETHER ARISING IN CONTRACT, TORT, EQUITY, OR OTHERWISE, SHALL BE RESOLVED EXCLUSIVELY BY STATE OR FEDERAL COURTS LOCATED IN CHICAGO, ILLINOIS, BUT THE PARTIES HERETO ACKNOWLEDGE THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF CHICAGO, ILLINOIS. EACH OF THE PARTIES HERETO WAIVES IN ALL DISPUTES BROUGHT PURSUANT TO THIS SUBSECTION (A) ANY OBJECTION THAT IT MAY HAVE TO THE LOCATION OF THE COURT CONSIDERING THE DISPUTE. 

(B)   OTHER JURISDICTIONS. THE BORROWER AGREES THAT THE ADMINISTRATIVE AGENT, ANY LENDER OR ANY OTHER HOLDER OF OBLIGATIONS SHALL HAVE THE RIGHT TO PROCEED AGAINST THE BORROWER

 

	 
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OR ITS PROPERTY IN A COURT IN ANY LOCATION TO ENABLE SUCH PERSON TO (1) OBTAIN PERSONAL JURISDICTION OVER THE BORROWER OR (2) IN ORDER TO ENFORCE A JUDGMENT OR OTHER COURT ORDER ENTERED IN FAVOR OF SUCH PERSON. THE BORROWER AGREES THAT IT WILL NOT ASSERT ANY PERMISSIVE COUNTERCLAIMS IN ANY PROCEEDING BROUGHT BY SUCH PERSON TO REALIZE ON ANY SECURITY FOR THE OBLIGATIONS OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF SUCH PERSON BUT SHALL ONLY BE PERMITTED TO BRING ANY SUCH PERMISSIVE COUNTERCLAIM IN A PROCEEDING BROUGHT PURSUANT TO CLAUSE (A). THE BORROWER WAIVES ANY OBJECTION THAT IT MAY HAVE TO THE LOCATION OF THE COURT IN WHICH SUCH PERSON HAS COMMENCED A PROCEEDING DESCRIBED IN THIS SUBSECTION (B). 

(C)   VENUE. THE BORROWER IRREVOCABLY WAIVES ANY OBJECTION (INCLUDING, WITHOUT LIMITATION, ANY OBJECTION OF THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS) WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH IN ANY JURISDICTION SET FORTH ABOVE. 

(D)  WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE, ARISING OUT OF, CONNECTED WITH, RELATED TO OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH. EACH OF THE PARTIES HERETO AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 

(E)  ADVICE OF COUNSEL. EACH OF THE PARTIES REPRESENTS TO EACH OTHER PARTY HERETO THAT IT HAS DISCUSSED THIS AGREEMENT AND, SPECIFICALLY, THE PROVISIONS OF SECTION 10.7 AND THIS SECTION 10.13, WITH ITS COUNSEL. 

10.14  Subordination of Intercompany Indebtedness. The Borrower agrees that any and all claims of the Borrower against any of its Subsidiaries that is a Subsidiary Guarantor with respect to any "Intercompany Indebtedness" (as hereinafter defined), any endorser, obligor or any other guarantor of all or any part of the Obligations, or against any of its properties shall be subordinate and subject in right of payment to the prior payment, in full and in cash, of all Obligations and Hedging Obligations under Hedging Agreements; provided that, and not in contravention of the foregoing, so long as no Default has occurred and is continuing the 

 

	 
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Borrower may make loans to and receive payments in the ordinary course with respect to such Intercompany Indebtedness from each such Subsidiary Guarantor to the extent permitted by the terms of this Agreement and the other Loan Documents. Notwithstanding any right of the Borrower to ask, demand, sue for, take or receive any payment from any Subsidiary Guarantor, all rights, liens and security interests of the Borrower, whether now or hereafter arising and howsoever existing, in any assets of any Subsidiary Guarantor shall be and are subordinated to the rights of the Holders of Obligations and the Administrative Agent in those assets. The Borrower shall have no right to possession of any such asset or to foreclose upon any such asset, whether by judicial action or otherwise, unless and until all of the Obligations (other than contingent indemnity obligations) and the Hedging Obligations under Hedging Agreements shall have been fully paid and satisfied (in cash) and all financing arrangements pursuant to any Loan Document or Hedging Agreement among the Borrower and the Holders of Obligations (or any affiliate thereof) have been terminated. If all or any part of the assets of any Subsidiary Guarantor, or the proceeds thereof, are subject to any distribution, division or application to the creditors of such Subsidiary Guarantor, whether partial or complete, voluntary or involuntary, and whether by reason of liquidation, bankruptcy, arrangement, receivership, assignment for the benefit of creditors or any other action or proceeding, or if the business of any such Subsidiary Guarantor is dissolved or if substantially all of the assets of any such Subsidiary Guarantor are sold, then, and in any such event (such events being herein referred to as an "Insolvency Event"), any payment or distribution of any kind or character, either in cash, securities or other property, which shall be payable or deliverable upon or with respect to any indebtedness of any Subsidiary Guarantor to the Borrower ("Intercompany Indebtedness") shall be paid or delivered directly to the Administrative Agent for application on any of the Obligations and Hedging Obligations under the Hedging Agreements, due or to become due, until such Obligations and Hedging Obligations (other than contingent indemnity obligations) shall have first been fully paid and satisfied (in cash). Should any payment, distribution, security or instrument or proceeds thereof be received by the Borrower upon or with respect to the Intercompany Indebtedness after an Insolvency Event prior to the satisfaction of all of the Obligations (other than contingent indemnity obligations) and Hedging Obligations under Hedging Agreements and the termination of all financing arrangements pursuant to any Loan Document or Hedging Agreement among the Borrower and the Holders of Obligations (and their affiliates), the Borrower shall receive and hold the same in trust, as trustee, for the benefit of the Holders of Obligations and shall forthwith deliver the same to the Administrative Agent, for the benefit of such Persons, in precisely the form received (except for the endorsement or assignment of the Borrower where necessary), for application to any of the Obligations and such Hedging Obligations, due or not due, and, until so delivered, the same shall be held in trust by the Borrower as the property of the Holders of Obligations. If the Borrower fails to make any such endorsement or assignment to the Administrative Agent, the Administrative Agent or any of its officers or employees are irrevocably authorized to make the same. The Borrower agrees that until the Obligations (other than the contingent indemnity obligations) and such Hedging Obligations have been paid in full (in cash) and satisfied and all financing arrangements pursuant to any Loan Document or Hedging Agreement among the Borrower and the Holders of Obligations (and their affiliates) have been terminated, the Borrower will not assign or transfer to any Person (other than the Administrative Agent) any claim the Borrower has or may have against any Subsidiary Guarantor. 

ARTICLE XI: THE ADMINISTRATIVE AGENT 

	 
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11.1  Appointment; Nature of Relationship. Bank One, NA, having its principal office in Chicago, Illinois is appointed by the Lenders as the Administrative Agent hereunder and under each other Loan Document, and each of the Lenders irrevocably authorizes the Administrative Agent to act as the contractual representative of such Lender with the rights and duties expressly set forth herein and in the other Loan Documents. The Administrative Agent agrees to act as such contractual representative upon the express conditions contained in this Article XI. Notwithstanding the use of the defined term "Administrative Agent," it is expressly understood and agreed that the Administrative Agent shall not have any fiduciary responsibilities to any Holder of Obligations by reason of this Agreement and that the Administrative Agent is merely acting as the representative of the Lenders with only those duties as are expressly set forth in this Agreement and the other Loan Documents. In its capacity as the Lenders’ contractual representative, the Administrative Agent (i) does not assume any fiduciary duties to any of the Holders of Obligations, (ii) is a "representative" of the Holders of Obligations within the meaning of "secured party" as defined in 9-102 of Revised Article 9 of the Uniform Commercial Code of the State of Illinois and (iii) is acting as an independent contractor, the rights and duties of which are limited to those expressly set forth in this Agreement and the other Loan Documents. Each of the Lenders, for itself and on behalf of its affiliates as Holders of Obligations, agrees to assert no claim against the Administrative Agent on any agency theory or any other theory of liability for breach of fiduciary duty, all of which claims each Holder of Obligations waives. 

11.2  Powers. The Administrative Agent shall have and may exercise such powers under the Loan Documents as are specifically delegated to the Administrative Agent by the terms of each thereof, together with such powers as are reasonably incidental thereto. The Administrative Agent shall have no implied duties or fiduciary duties to the Lenders, or any obligation to the Lenders to take any action hereunder or under any of the other Loan Documents except any action specifically provided by the Loan Documents required to be taken by the Administrative Agent. 

11.3  General Immunity. Neither the Administrative Agent nor any of its directors, officers, agents or employees shall be liable to the Borrower, the Lenders or any Lender for any action taken or omitted to be taken by it or them hereunder or under any other Loan Document or in connection herewith or therewith except to the extent such action or inaction is found in a final judgment by a court of competent jurisdiction to have arisen solely from the gross negligence or willful misconduct of such Person. 

11.4  No Responsibility for Loans, Creditworthiness, Recitals, Etc. Neither the Administrative Agent nor any of its directors, officers, agents or employees shall be responsible for or have any duty to ascertain, inquire into, or verify (i) any statement, warranty or representation made in connection with any Loan Document or any borrowing hereunder; (ii) the performance or observance of any of the covenants or agreements of any obligor under any Loan Document; (iii) the satisfaction of any condition specified in Article V, except receipt of items required to be delivered solely to the Administrative Agent; (iv) the existence or possible existence of any Default or (v) the validity, effectiveness or genuineness of any Loan Document or any other instrument or writing furnished in connection therewith. The Administrative Agent shall not be responsible to any Lender for any recitals, statements, representations or warranties herein or in any of the other Loan Documents, for the perfection or priority of the Liens on

 

	 
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collateral, if any, or for the execution, effectiveness, genuineness, validity, legality, enforceability, collectibility, or sufficiency of this Agreement or any of the other Loan Documents or the transactions contemplated thereby, or for the financial condition of any guarantor of any or all of the Obligations, the Borrower or any of its Subsidiaries. 

11.5  Action on Instructions of Lenders. The Administrative Agent shall in all cases be fully protected in acting, or in refraining from acting, hereunder and under any other Loan Document in accordance with written instructions signed by the Required Lenders (or all of the Lenders in the event that and to the extent that this Agreement expressly requires such), and such instructions and any action taken or failure to act pursuant thereto shall be binding on all of the Lenders and on all owners of Loans and on all Holders of Obligations. The Administrative Agent shall be fully justified in failing or refusing to take any action hereunder and under any other Loan Document unless it shall first be indemnified to its satisfaction by the Lenders pro rata against any and all liability, cost and expense that it may incur by reason of taking or continuing to take any such action. 

11.6  Employment of Administrative Agents and Counsel. The Administrative Agent may execute any of its duties as the Administrative Agent hereunder and under any other Loan Document by or through employees, agents, and attorney-in-fact and shall not be answerable to the Lenders, except as to money or securities received by it or its authorized agents, for the default or misconduct of any such agents or attorneys-in-fact selected by it with reasonable care. The Administrative Agent shall be entitled to advice of counsel concerning the contractual arrangement between the Administrative Agent and the Lenders and all matters pertaining to the Administrative Agent’s duties hereunder and under any other Loan Document. 

11.7  Reliance on Documents; Counsel. The Administrative Agent shall be entitled to rely upon any notice, consent, certificate, affidavit, letter, telegram, statement, paper or document believed by it to be genuine and correct and to have been signed or sent by the proper person or persons, and, in respect to legal matters, upon the opinion of counsel selected by the Administrative Agent, which counsel may be employees of the Administrative Agent. 

11.8  The Administrative Agent’s Reimbursement and Indemnification. The Lenders agree to reimburse and indemnify the Administrative Agent ratably in proportion to their respective Pro Rata Shares (i) for any amounts not reimbursed by the Borrower for which the Administrative Agent is entitled to reimbursement by the Borrower under the Loan Documents, (ii) for any other expenses incurred by the Administrative Agent on behalf of the Lenders, in connection with the preparation, execution, delivery, administration and enforcement of the Loan Documents and (iii) for any liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind and nature whatsoever which may be imposed on, incurred by or asserted against the Administrative Agent in any way relating to or arising out of the Loan Documents or any other document delivered in connection therewith or the transactions contemplated thereby, or the enforcement of any of the terms thereof or of any such other documents, provided that no Lender shall be liable for any of the foregoing to the extent any of the foregoing is found in a final non-appealable judgment by a court of competent jurisdiction to have arisen solely from the gross negligence or willful misconduct of the Administrative Agent. 

	 
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11.9  Rights as a Lender. With respect to its Revolving Loan Commitment, Loans made by it, and Letters of Credit issued by it, the Administrative Agent shall have the same rights and powers hereunder and under any other Loan Document as any Lender or Issuing Bank and may exercise the same as though it were not the Administrative Agent, and the term "Lender" or "Lenders" or "Issuing Bank" or "Issuing Banks" shall, unless the context otherwise indicates, include the Administrative Agent in its individual capacity. The Administrative Agent may accept deposits from, lend money to, and generally engage in any kind of trust, debt, equity or other transaction, in addition to those contemplated by this Agreement or any other Loan Document, with the Borrower or any of its Subsidiaries in which such Person is not prohibited hereby from engaging with any other Person. 

11.10  Lender Credit Decision. Each Lender acknowledges that it has, independently and without reliance upon the Administrative Agent, the Arrangers or any other Lender and based on the financial statements prepared by the Borrower and such other documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement and the other Loan Documents. Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent, the Arrangers 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 this Agreement and the other Loan Documents. 

11.11  Successor Administrative Agent. The Administrative Agent may resign at any time by giving written notice thereof to the Lenders and the Borrower. Upon any such resignation, the Required Lenders shall have the right to appoint, on behalf of the Borrower and the Lenders, a successor Administrative Agent. If no successor Administrative Agent shall have been so appointed by the Required Lenders and shall have accepted such appointment within thirty days after the retiring Administrative Agent’s giving notice of resignation, then the retiring Administrative Agent may appoint, on behalf of the Borrower and the Lenders, a successor Administrative Agent. Notwithstanding anything herein to the contrary, so long as no Default has occurred and is continuing, each such successor Administrative Agent shall be subject to approval by the Borrower, which approval shall not be unreasonably withheld or delayed. Such successor Administrative Agent shall be a commercial bank having capital and retained earnings of at least $500,000,000. Upon the acceptance of any appointment as the Administrative Agent hereunder by a successor Administrative Agent, such successor Administrative Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents. After any retiring Administrative Agent’s resignation hereunder as Administrative Agent, the provisions of this Article XI shall continue in effect for its benefit in respect of any actions taken or omitted to be taken by it while it was acting as the Administrative Agent hereunder and under the other Loan Documents. 

11.12  No Duties Imposed Upon Syndication Agent, Documentation Agent or Arrangers. None of the Persons identified on the cover page to this Agreement, the signature pages to this Agreement or otherwise in this Agreement as a "Syndication Agent, " "Documentation Agent" or "Arranger" shall have any right, power, obligation, liability, responsibility or duty under this Agreement other than if such Person is a Lender, those applicable to all Lenders as such.

 

	 
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Without limiting the foregoing, none of the Persons identified on the cover page to this Agreement, the signature pages to this Agreement or otherwise in this Agreement as a "Syndication Agent," "Documentation Agent" or "Arranger" shall have or be deemed to have any fiduciary duty to or fiduciary relationship with any Lender. In addition to the agreement set forth in Section 11.10, each of the Lenders acknowledges that it has not relied, and will not rely, on any of the Persons so identified in deciding to enter into this Agreement or in taking or not taking action hereunder. 

ARTICLE XII: SETOFF; RATABLE PAYMENTS 

12.1  Setoff. In addition to, and without limitation of, any rights of the Lenders under applicable law, if any Default occurs and is continuing, any indebtedness from any Lender to the Borrower (including all account balances, whether provisional or final and whether or not collected or available) may be offset and applied toward the payment of the Obligations owing to such Lender, whether or not the Obligations, or any part hereof, shall then be due. 

12.2  Ratable Payments. If any Lender, whether by setoff or otherwise, has payment made to it upon its Loans (other than payments received pursuant to Sections 4.1, 4.2 or 4.4) in a greater proportion than that received by any other Lender, such Lender agrees, promptly upon demand, to purchase a portion of the Loans held by the other Lenders so that after such purchase each Lender will hold its ratable proportion of Loans. If any Lender, whether in connection with setoff or amounts which might be subject to setoff or otherwise, receives collateral or other protection for its Obligation or such amounts which may be subject to setoff, such Lender agrees, promptly upon demand, to take such action necessary such that all Lenders share in the benefits of such collateral ratably in proportion to the obligations owing to them. In case any such payment is disturbed by legal process, or otherwise, appropriate further adjustments shall be made. 

12.3  Application of Payments. Subject to the provisions of Section 9.2, the Administrative Agent shall, unless otherwise specified at the direction of the Required Lenders which direction shall be consistent with the last sentence of this Section 12.3, apply all payments and prepayments in respect of any Obligations received after the occurrence and during the continuance of a Default or Unmatured Default in the following order: 

(A)  first, to pay interest on and then principal of any portion of the Loans which the Administrative Agent may have advanced on behalf of any Lender for which the Administrative Agent has not then been reimbursed by such Lender or the Borrower; 

(B)  second, to pay interest on and then principal of any advance made under Section 10.3 for which the Administrative Agent has not then been paid by the Borrower or reimbursed by the Lenders; 

(C)  third, to pay Obligations in respect of any fees, expenses, reimbursements or indemnities then due to the Administrative Agent; 

(D)  fourth, to pay Obligations in respect of any fees, expenses, reimbursements or indemnities then due to the Lenders and the issuer(s) of Letters of Credit; 

	 
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(E)  fifth, to pay interest due in respect of Swing Line Loans; 

(F)  sixth, to pay interest due in respect of Loans (other than Swing Line Loans) and L/C Obligations; 

(G)  seventh, to the ratable payment or prepayment of principal outstanding on Swing Line Loans; 

(H)  eighth, to the ratable payment or prepayment of principal outstanding on Loans (other than Swing Line Loans), Reimbursement Obligations and Hedging Obligations under Hedging Agreements in such order as the Administrative Agent may determine in its sole discretion; 

(I)  ninth, to provide required cash collateral, if required pursuant to Section 3.11; and 

(J)  tenth, to the ratable payment of all other Obligations. 

Unless otherwise designated (which designation shall only be applicable prior to the occurrence of a Default) by the Borrower, all principal payments in respect of Loans (other than Swing Line Loans) shall be applied to the outstanding Revolving Loans first, to repay outstanding Floating Rate Loans, and then to repay outstanding Eurodollar Rate Loans with those Eurodollar Rate Loans which have earlier expiring Interest Periods being repaid prior to those which have later expiring Interest Periods. The order of priority set forth in this Section 12.3 and the related provisions of this Agreement are set forth solely to determine the rights and priorities of the Administrative Agent, the Lenders, the Swing Line Bank and the issuer(s) of Letters of Credit as among themselves. The order of priority set forth in clauses (D) through (J) of this Section 12.3 may at any time and from time to time be changed by the Required Lenders without necessity of notice to or consent of or approval by the Borrower, or any other Person; provided, that the order of priority of payments in respect of Swing Line Loans may be changed only with the prior written consent of the Swing Line Bank. The order of priority set forth in clauses (A) through (C) of this Section 12.3 may be changed only with the prior written consent of the Administrative Agent. 

12.4  Relations Among Lenders. 

(A)  Except with respect to the exercise of set-off rights of any Lender in accordance with Section 12.1, the proceeds of which are applied in accordance with this Agreement, and except as set forth in the following sentence, each Lender agrees that it will not take any action, nor institute any actions or proceedings, against the Borrower or any other obligor hereunder or with respect to any Loan Document, without the prior written consent of the Required Lenders or, as may be provided in this Agreement or the other Loan Documents, at the direction of the Administrative Agent. 

(B)  The Lenders are not partners or co-venturers, and no Lender shall be liable for the acts or omissions of, or (except as otherwise set forth herein in case of the Administrative Agent) authorized to act for, any other Lender. The Administrative Agent shall have the exclusive right on behalf of the Lenders, at the direction of the Required Lenders, to enforce on the payment

 

	 
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of the principal of and interest on any Loan after the date such principal or interest has become due and payable pursuant to the terms of this Agreement. 

12.5  Representations and Covenants Among Lenders. Each Lender represents and covenants for the benefit of all other Lenders and the Administrative Agent that such Lender is not satisfying and shall not satisfy any of its obligations pursuant to this Agreement with any assets considered for any purposes of ERISA or Section 4975 of the Code to be assets of or on behalf of any "plan" as defined in section 3(3) of ERISA or section 4975 of the Code, regardless of whether subject to ERISA or Section 4975 of the Code. 

ARTICLE XIII: BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS 

13.1  Successors and Assigns. The terms and provisions of the Loan Documents shall be binding upon and inure to the benefit of the Borrower and the Lenders and their respective successors and assigns permitted hereby, except that (i) the Borrower shall not have the right to assign its rights or obligations under the Loan Documents without the prior written consent of each Lender, (ii) any assignment by any Lender must be made in compliance with Section 13.3, and (iii) any transfer by participation must be made in compliance with Section 13.2. Any attempted assignment or transfer by any party not made in compliance with this Section 13.1 shall be null and void, unless such attempted assignment or transfer is treated as a participation in accordance with Section 13.3(C). The parties to this Agreement acknowledge that clause (ii) of this Section 13.1 relates only to absolute assignments and this Section 13.1 does not prohibit assignments creating security interests, including, without limitation, (x) any pledge or assignment by any Lender of all or any portion of its rights under this Agreement and any promissory note to a Federal Reserve Bank or (y) in the case of a Lender which is a Fund, any pledge or assignment of all or any portion of its rights under this Agreement and any note to its trustee in support of its obligations to its trustee; provided, however, that no such pledge or assignment creating a security interest shall release the transferor Lender from its obligations hereunder unless and until the parties thereto have complied with the provisions of Section 13.3. The Administrative Agent may treat the Person which made any Loan or which holds any note as the owner thereof for all purposes hereof unless and until such Person complies with Section 13.3; provided, however, that the Administrative Agent may in its discretion (but shall not be required to) follow instructions from the Person which made any Loan or which holds any note to direct payments relating to such Loan or note to another Person. Any assignee of the rights to any Loan or any note agrees by acceptance of such assignment to be bound by all the terms and provisions of the Loan Documents. Any request, authority or consent of any Person, who at the time of making such request or giving such authority or consent is the owner of the rights to any Loan (whether or not a note has been issued in evidence thereof), shall be conclusive and binding on any subsequent holder or assignee of the rights to such Loan. 

13.2  Participations. 

(A)  Permitted Participants; Effect. Subject to the terms set forth in this Section 13.2, any Lender may, in the ordinary course of its business and in accordance with applicable law, at any time sell to one or more banks or other entities ("Participants") participating interests in any Loan owing to such Lender, any Revolving Loan Commitment of such Lender, any L/C Interest of such Lender or any other interest of such Lender under the Loan Documents on a pro rata or

 

	 
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non-pro rata basis. Notice of such participation to the Borrower and the Administrative Agent shall be required prior to any participation becoming effective with respect to a Participant which is not a Lender or an Affiliate thereof. In the event of any such sale by a Lender of participating interests to a Participant, such Lender’s obligations under the Loan Documents shall remain unchanged, such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, such Lender shall remain the owner of all Loans made by it for all purposes under the Loan Documents, all amounts payable by the Borrower under this Agreement shall be determined as if such Lender had not sold such participating interests, and the Borrower and the Administrative Agent shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under the Loan Documents except that, for purposes of Article IV hereof, the Participants shall be entitled to the same rights as if they were Lenders. 

(B)  Voting Rights. Each Lender shall retain the sole right to approve, without the consent of any Participant, any amendment, modification or waiver of any provision of the Loan Documents other than any amendment, modification or waiver with respect to any Loan, Letter of Credit or Revolving Loan Commitment in which such Participant has an interest which forgives principal, interest or fees or reduces the interest rate or fees payable pursuant to the terms of this Agreement with respect to any such Loan or Revolving Loan Commitment, postpones any date fixed for any regularly-scheduled payment of principal of, or interest or fees on, any such Loan or Revolving Loan Commitment, releases any Subsidiary Guarantor from its obligations under the Subsidiary Guaranty, or releases all or substantially all of the collateral, if any, securing any such Loan or Letter of Credit. 

(C)  Benefit of Setoff. The Borrower agrees that each Participant shall be deemed to have the right of setoff provided in Section 12.1 hereof in respect to its participating interest in amounts owing under the Loan Documents to the same extent as if the amount of its participating interest were owing directly to it as a Lender under the Loan Documents, provided that each Lender shall retain the right of setoff provided in Section 12.1 hereof with respect to the amount of participating interests sold to each Participant except to the extent such Participant exercises its right of setoff. The Lenders agree to share with each Participant, and each Participant, by exercising the right of setoff provided in Section 12.1 hereof, agrees to share with each Lender, any amount received pursuant to the exercise of its right of setoff, such amounts to be shared in accordance with Section 12.2 as if each Participant were a Lender. 

13.3  Assignments. 

(A)  Permitted Assignments. Any Lender may at any time assign to one or more banks or other entities ("Purchasers") all or any part of its rights and obligations under the Loan Documents. Such assignment shall be evidenced by an Assignment Agreement. Each such assignment with respect to a Purchaser which is not a Lender or an Affiliate of a Lender or an Approved Fund shall either (i) be in an amount equal to the entire applicable Revolving Loan Commitment and participation interests or obligations to purchase participations in existing or future Letters of Credit and Swingline Loans (or, if the Aggregate Revolving Loan Commitment has terminated, Loans and L/C Obligations) or (ii) unless each of the Administrative Agent and, if no Default has occurred and is continuing, the Borrower, otherwise consents, be in an aggregate amount not less than $5,000,000. The amount of the assignment shall be based on the

 

	 
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Revolving Loan Commitment and participation interests or obligations to purchase participations in existing or future Letters of Credit and Swingline Loans (or, if the Aggregate Revolving Loan Commitment has terminated, Loans and L/C Obligations) subject to the assignment, determined as of the date of such assignment or as of the "Trade Date," if the "Trade Date" is specified in the Assignment Agreement. 

(B)  Consents. The consent of the Borrower shall be required prior to an assignment becoming effective unless the Purchaser is a Lender, an Affiliate of a Lender or an Approved Fund, provided that the consent of the Borrower shall not be required if a Default has occurred and is continuing. The consent of the Administrative Agent shall be required prior to an assignment becoming effective unless the Purchaser is a Lender, an Affiliate of a Lender or an Approved Fund. Any consent required under this Section 13.3(B) shall not be unreasonably withheld or delayed. 

(C)  Effect; Effective Date. Upon (i) delivery to the Administrative Agent of an Assignment Agreement, together with any consents required by Sections 13.3(A) and (B), and (ii) payment of a $3,500 fee to the Administrative Agent for processing such assignment (unless such fee is waived by the Administrative Agent or unless such assignment is made to the assigning Lender’s Affiliate or successor by merger or consolidation), such assignment shall become effective on the effective date specified in such Assignment Agreement. The Assignment Agreement shall contain a representation and warranty by the Purchaser to the effect that none of the consideration used to make the purchase of the Revolving Loan Commitment and participation interests or obligations to purchase participations in existing or future Letters of Credit and Swingline Loans (or, if the Aggregate Revolving Loan Commitment has terminated, Loans and L/C Obligations) under the applicable Assignment Agreement constitutes "plan assets" as defined under ERISA and that the rights and interests of the Purchaser in and under the Loan Documents will not be "plan assets" under ERISA. On and after the effective date of such assignment, such Purchaser shall for all purposes be a Lender party to this Agreement and any other Loan Document executed by or on behalf of the Lenders and shall have all the rights, benefits and obligations of a Lender under the Loan Documents, to the same extent as if it were an original party thereto, and the transferor Lender shall be released with respect to the Revolving Loan Commitment and participation interests or obligations to purchase participations in existing or future Letters of Credit and Swingline Loans (or, if the Aggregate Revolving Loan Commitment has terminated, Loans and L/C Obligations) assigned to such Purchaser without any further consent or action by the Borrower, the Lenders or the Administrative Agent. In the case of an assignment covering all of the assigning Lender’s rights, benefits and obligations under this Agreement, such Lender shall cease to be a Lender hereunder but shall continue to be entitled to the benefits of, and subject to, those provisions of this Agreement and the other Loan Documents which survive payment of the Obligations and termination of the applicable agreement. Any assignment or transfer by a Lender of rights, benefits or obligations under this Agreement that does not comply with this Section 13.3 shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights, benefits and obligations in accordance with Section 13.2. Upon the consummation of any assignment to a Purchaser pursuant to this Section 13.3(C), the transferor Lender, the Administrative Agent and the Borrower shall, if the transferor Lender or the Purchaser desires that its Revolving Loans be evidenced by promissory notes, make appropriate arrangements so that new notes or, as

 

	 
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appropriate, replacement notes are issued to such transferor Lender and new notes or, as appropriate, replacement notes, are issued to such Purchaser, in each case in principal amounts reflecting their respective Revolving Loan Commitments (or, if the Aggregate Revolving Loan Commitment has terminated, their respective Loans), as adjusted pursuant to such assignment. 

(D)  The Register. The Administrative Agent, acting solely for this purpose as an agent of the Borrower (and the Borrower hereby designates the Administrative Agent to act in such capacity), shall maintain at one of its offices in Chicago, Illinois a copy of each Assignment Agreement delivered to it and a register (the "Register") for the recordation of the names and addresses of the Lenders, and the Revolving Loan Commitments of, and principal amounts of the Loans and L/C Obligations owing to, each Lender pursuant to the terms hereof from time to time and whether such Lender is an original Lender or the assignee of another Lender pursuant to an Assignment Agreement under this Section 13.3. The entries in the Register shall be conclusive, and the Borrower, the Administrative Agent and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice 

13.4  Confidentiality. 

(a)  Subject to Section 13.5, the Administrative Agent and the Lenders and their respective representatives shall hold all nonpublic information obtained pursuant to the requirements of this Agreement and identified as such by the Borrower in accordance with such Person’s customary procedures for handling confidential information of this nature and in accordance with safe and sound commercial lending or investment practices and in any event may make disclosure reasonably required by a prospective Transferee in connection with the contemplated participation or assignment or as required or requested by any Governmental Authority or any securities exchange or similar self-regulatory organization or representative thereof or pursuant to a regulatory examination or legal process, or to any direct or indirect contractual counterparty in swap agreements or such contractual counterparty’s professional advisor, and shall require any such Transferee to agree (and require any of its Transferees to agree) to comply with this Section 13.4. In no event shall the Administrative Agent or any Lender be obligated or required to return any materials furnished by the Borrower; provided, however, each prospective Transferee shall be required to agree that if it does not become a participant or assignee it shall return all materials furnished to it by or on behalf of the Borrower in connection with this Agreement. 

(b)  Notwithstanding anything herein to the contrary, confidential information shall not include, and each Lender (and each employee, representative or other agent of any Lender) may disclose to any and all Persons, without limitation of any kind, the "tax treatment" and "tax structure" (in each case, within the meaning of Treasury Regulation Section 1.6011-4) of the transactions contemplated hereby and all materials of any kind (including opinions or other tax analyses) that are or have been provided to such Lender relating to such tax treatment or tax structure; provided that (i) this authorization is not intended to permit disclosure of any other information to the extent not related to such tax treatment or tax structure and (ii) with respect to any document or similar item that in either case contains information concerning such tax treatment or tax structure of the transactions contemplated hereby as well as other information,

 

	 
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this sentence shall only apply to such portions of the document or similar item that relate to such tax treatment or tax structure. 

13.5  Dissemination of Information. The Borrower authorizes each Lender to disclose to any Participant or Purchaser or any other Person acquiring an interest in the Loan Documents by operation of law (each a "Transferee") and any prospective Transferee any and all information in such Lender’s possession concerning the Borrower and its Subsidiaries; provided that prior to any such disclosure, such prospective Transferee shall agree to preserve in accordance with Section 13.4 the confidentiality of any confidential information described therein. 

13.6  Tax Treatment. If any interest in any Loan Document is transferred to any Transferee which is not incorporated under the laws of the United States or any State thereof, the transferor Lender shall cause such Transferee, concurrently with the effectiveness of such transfer, to comply with the provisions of Section 4.5(iv). 

ARTICLE XIV: NOTICES 

14.1  Giving Notice. Except as otherwise permitted by Section 2.13 with respect to Borrowing/Election Notices, all notices and other communications provided to any party hereto under this Agreement or any other Loan Documents shall be in writing or by telex or by facsimile and addressed or delivered to such party at its address set forth below its signature hereto or at such other address as may be designated by such party in a notice to the other parties. Any notice, if mailed and properly addressed with postage prepaid, shall be deemed given three (3) Business Days after mailed; any notice, if transmitted by telex or facsimile, shall be deemed given when transmitted (answerback confirmed in the case of telexes); or, any notice, if transmitted by courier, one (1) Business Day after deposit with a reputable overnight carrier services, with all charges paid. 

14.2  Change of Address. The Borrower, the Administrative Agent and any Lender may each change the address for service of notice upon it by a notice in writing to the other parties hereto. 

ARTICLE XV: COUNTERPARTS 

This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one agreement, and any of the parties hereto may execute this Agreement by signing any such counterpart. This Agreement shall be effective when it has been executed by the Borrower, the Administrative Agent and the Lenders and each party has notified the Administrative Agent by telex or telephone, that it has taken such action. 

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IN WITNESS WHEREOF, the Borrower, the Lenders and the Administrative Agent have executed this Agreement as of the date first above written. 

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