Exhibit
4.1
EXECUTION VERSION
COMMERCIAL VEHICLE GROUP, INC.,
as Issuer,
the SUBSIDIARY GUARANTORS named herein,
as Subsidiary Guarantors
and
U.S. Bank National Association,
as Trustee
INDENTURE
Dated as of April 26, 2011
7.875% Senior Secured Notes Due 2019
CROSS-REFERENCE TABLE
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TIA
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Indenture
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Section
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Section
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310
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(a)(1)
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7.10
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(a)(2)
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7.10
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(a)(3)
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N.A.
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(a)(4)
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N.A.
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(a)(5)
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7.10
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(b)
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7.10
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311
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(a)
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7.11
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(b)
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7.11
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312
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(a)
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2.05
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(b)
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12.03
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(c)
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12.03
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313
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(a)
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7.06
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(b)
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7.06; 11.05
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(c)
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7.06; 12.02
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(d)
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7.06
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314
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(a)
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4.02; 11.02
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314
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(a)(4)
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4.13
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(b)
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11.02
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(c)(1)
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12.04
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(c)(2)
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12.04
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(c)(3)
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N.A.
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(d)
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11.05; 11.06
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(e)
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12.05
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(f)
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N.A.
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315
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(a)
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7.01
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(b)
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7.05; 12.02
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(c)
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7.01
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(d)
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7.01
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(e)
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6.11
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316
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(a)(last sentence)
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12.06
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(a)(1)(A)
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6.05
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(a)(1)(B)
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6.04
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(a)(2)
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N.A.
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(b)
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6.07
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(c)
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9.04
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317
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(a)(1)
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6.08
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(a)(2)
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6.09
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(b)
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2.04
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318
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(a)
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12.01
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N.A. means Not Applicable.
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Note:
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This Cross-Reference Table shall not, for any purpose, be deemed to be part of the
Indenture.
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i
TABLE OF CONTENTS
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Page
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Article 1
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Definitions and Incorporation by Reference
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SECTION 1.01. Definitions
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1
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SECTION 1.02. Other Definitions
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38
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SECTION 1.03. Incorporation by Reference of Trust Indenture Act
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38
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SECTION 1.04. Rules of Construction
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39
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Article 2
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The Securities
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SECTION 2.01. Form and Dating
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40
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SECTION 2.02. Execution and Authentication
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40
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SECTION 2.03. Registrar and Paying Agent
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41
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SECTION 2.04. Paying Agent To Hold Money in Trust
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41
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SECTION 2.05. Securityholder Lists
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41
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SECTION 2.06. Transfer and Exchange
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41
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SECTION 2.07. Replacement Securities
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42
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SECTION 2.08. Outstanding Securities
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42
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SECTION 2.09. Temporary Securities
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42
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SECTION 2.10. Cancellation
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42
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SECTION 2.11. Defaulted Interest
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43
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SECTION 2.12. CUSIP Numbers, ISINs, etc
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43
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SECTION 2.13. Issuance of Additional Securities
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43
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Article 3
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Redemption
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SECTION 3.01. Notices to Trustee
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44
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SECTION 3.02. Selection of Securities to Be Redeemed
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44
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SECTION 3.03. Notice of Redemption
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44
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SECTION 3.04. Effect of Notice of Redemption
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45
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SECTION 3.05. Deposit of Redemption Price
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45
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SECTION 3.06. Securities Redeemed in Part
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45
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Article 4
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Covenants
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SECTION 4.01. Payment of Securities
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46
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SECTION 4.02. SEC Reports
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46
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i
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Page
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SECTION 4.03. Limitation on Indebtedness
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47
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SECTION 4.04. Limitation on Restricted Payments
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51
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SECTION 4.05. Limitation on Restrictions on Distributions from Restricted Subsidiaries
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55
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SECTION 4.06. Limitation on Sales of Assets and Subsidiary Stock
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57
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SECTION 4.07. Limitation on Affiliate Transactions
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61
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SECTION 4.08. Limitation on Line of Business
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62
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SECTION 4.09. Change of Control
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62
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SECTION 4.10. Limitation on Liens
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64
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SECTION 4.11. Limitation on Sale/Leaseback Transactions
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65
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SECTION 4.12. Future Guarantors
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65
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SECTION 4.13. Compliance Certificate
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66
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SECTION 4.14. Further Instruments and Acts
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66
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Article 5
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Successor Company
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SECTION 5.01. When Company May Merge or Transfer Assets
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66
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Article 6
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Defaults and Remedies
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SECTION 6.01. Events of Default
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68
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SECTION 6.02. Acceleration
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70
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SECTION 6.03. Other Remedies
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71
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SECTION 6.04. Waiver of Past Defaults
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71
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SECTION 6.05. Control by Majority
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71
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SECTION 6.06. Limitation on Suits
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71
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SECTION 6.07. Rights of Holders to Receive Payment
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72
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SECTION 6.08. Collection Suit by Trustee
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72
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SECTION 6.09. Trustee May File Proofs of Claim
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72
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SECTION 6.10. Priorities
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72
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SECTION 6.11. Undertaking for Costs
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73
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SECTION 6.12. Waiver of Stay or Extension Laws
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73
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Article 7
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Trustee
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SECTION 7.01. Duties of Trustee
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73
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SECTION 7.02. Rights of Trustee
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74
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SECTION 7.03. Individual Rights of Trustee
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75
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SECTION 7.04. Trustees Disclaimer
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76
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SECTION 7.05. Notice of Defaults
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76
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SECTION 7.06. Reports by Trustee to Holders
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76
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ii
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Page
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SECTION 7.07. Compensation and Indemnity
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76
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SECTION 7.08. Replacement of Trustee
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77
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SECTION 7.09. Successor Trustee by Merger
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78
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SECTION 7.10. Eligibility; Disqualification
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78
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SECTION 7.11. Preferential Collection of Claims Against Company
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78
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Article 8
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Discharge of Indenture; Defeasance
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SECTION 8.01. Discharge of Liability on Securities; Defeasance
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78
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SECTION 8.02. Conditions to Defeasance
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79
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SECTION 8.03. Application of Trust Money
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81
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SECTION 8.04. Repayment to Company
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81
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SECTION 8.05. Indemnity for Government Obligations
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81
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SECTION 8.06. Reinstatement
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81
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Article 9
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Amendments
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SECTION 9.01. Without Consent of Holders
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81
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SECTION 9.02. With Consent of Holders
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83
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SECTION 9.03. Compliance with Trust Indenture Act
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84
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SECTION 9.04. Revocation and Effect of Consents and Waivers
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84
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SECTION 9.05. Notation on or Exchange of Securities
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84
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SECTION 9.06. Trustee To Sign Amendments
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84
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SECTION 9.07. Payment for Consent
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85
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Article 10
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Subsidiary Guaranties
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SECTION 10.01. Guaranties
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85
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SECTION 10.02. Limitation on Liability
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87
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SECTION 10.03. Successors and Assigns
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87
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SECTION 10.04. No Waiver
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87
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SECTION 10.05. Modification
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87
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SECTION 10.06. Release of Subsidiary Guarantor
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87
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SECTION 10.07. Contribution
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88
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Article 11
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Collateral and Security
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SECTION 11.01. Collateral and Security Documents
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88
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SECTION 11.02. Recordings and Opinions
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89
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SECTION 11.03. Release of Collateral
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90
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iii
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Page
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SECTION 11.04. After-Acquired Property
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90
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SECTION 11.05. Permitted Releases Not to Impair Lien; Trust Indenture Act Requirements
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90
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SECTION 11.06. Reports, Certificates and Opinions
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91
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SECTION 11.07. Use of Trust Monies
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91
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SECTION 11.08. Suits to Protect the Collateral
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92
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SECTION 11.09. Authorization of Receipt of Funds by the Trustee Under the Security Documents
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92
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SECTION 11.10. Trustee and Second Lien Collateral Agent
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92
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Article 12
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Miscellaneous
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SECTION 12.01. Trust Indenture Act Controls
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93
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SECTION 12.02. Notices
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94
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SECTION 12.03. Communication by Holders with Other Holders
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94
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SECTION 12.04. Certificate and Opinion as to Conditions Precedent
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94
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SECTION 12.05. Statements Required in Certificate or Opinion
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95
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SECTION 12.06. When Securities Disregarded
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95
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SECTION 12.07. Rules by Trustee, Paying Agent and Registrar
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95
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SECTION 12.08. Legal Holidays
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95
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SECTION 12.09. Governing Law
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95
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SECTION 12.10. WAIVER OF JURY TRIAL
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95
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SECTION 12.11. No Recourse Against Others
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96
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SECTION 12.12. Successors
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96
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SECTION 12.13. Multiple Originals
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96
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SECTION 12.14. Table of Contents; Headings
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96
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Rule 144A/Regulation S Appendix
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Exhibit 1 Form of Initial Security
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Exhibit A Form of Exchange Security or Private Exchange Security
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Exhibit B Form of Supplemental Indenture
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iv
INDENTURE dated as of April 26, 2011, among COMMERCIAL VEHICLE
GROUP, INC., a Delaware corporation (the Company), the Subsidiary
Guarantors listed on the signature pages hereto and U.S. BANK NATIONAL
ASSOCIATION, a national banking organization (the Trustee).
Each party agrees as follows for the benefit of the other parties and for the equal and
ratable benefit of the Holders of the Companys Initial Securities, Exchange Securities and Private
Exchange Securities (in each case, as defined in the Rule 144A/Regulation S Appendix attached
hereto and, collectively, the Securities):
Article 1
Definitions and Incorporation by Reference
SECTION 1.01.
Definitions.
ABL Credit Facility
means the Amended and Restated Credit Facility under the Loan and
Security Agreement, dated as of April 26, 2011, by and among the Company, each other borrower party
thereto, the lenders party thereto in their capacities as lenders thereunder and Bank of America,
N.A., as agent for such lenders, including any Guarantees, collateral documents, instruments and
other agreements executed in connection therewith, and any amendments, supplements, modifications,
extensions, renewals, restatements, refundings or refinancings thereof and any indentures or credit
facilities or commercial paper facilities with banks or other institutional lenders or investors
that replace, refund or refinance any part of the loans, notes, other credit facilities or
commitments thereunder, including any such replacement, refunding or refinancing facility or
indenture that increases the amount permitted to be borrowed thereunder or alters the maturity
thereof (provided that such increase in borrowings is permitted under Section 4.03) or adds
Restricted Subsidiaries as additional borrowers or guarantors thereunder and whether by the same or
any other agent, lender, group of lenders, investor or group of investors.
Additional Assets
means (1) any capital expenditure or other acquisition of property, plant
or equipment used in a Related Business; (2) the Capital Stock of a Person that becomes a
Restricted Subsidiary as a result of the acquisition of such Capital Stock by the Company or
another Restricted Subsidiary; or (3) Capital Stock constituting a minority interest in any Person
that at such time is a Restricted Subsidiary;
provided
,
however
, that any such
Restricted Subsidiary described in clause (2) or (3) above is primarily engaged in a Related
Business.
Additional Securities
means Securities issued under this Indenture after the Issue Date and
in compliance with Sections 2.13, 4.03 and 4.10, it being understood that any Securities issued in
exchange for or replacement of any Initial Security issued on the Issue Date shall not be an
Additional Security, including any such Securities issued pursuant to a Registration Rights
Agreement.
Affiliate
of any specified Person means any other Person, directly or indirectly,
controlling or controlled by or under direct or indirect common control with such specified Person.
For the purposes of this definition, control when used with respect to any Person means the
power to direct the management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms controlling and
controlled have meanings correlative to the foregoing.
After-Acquired Property
means any property of the Company or any Subsidiary Guarantor
acquired after the Issue Date that is intended to secure the Obligations under this Indenture and
the Securities pursuant to this Indenture and the Security Documents, including property of the
Issuer or any Subsidiary Guarantor acquired using the proceeds from any issuance of Additional
Securities.
Applicable Premium
means, with respect to any Security on any redemption date, the greater
of (1) 1.0% of the principal amount of such Security and (2) the excess of (A) the present value
at such redemption date of (i) the redemption price of such Security at April 15, 2014 (such
redemption price being set forth in the table in Section 5 of the Securities), plus (ii) all
required interest payments due on such Security through April 15, 2014 (excluding accrued but
unpaid interest to the redemption date), computed using a discount rate equal to the Treasury Rate
as of such redemption date plus 50 basis points, over (B) the principal amount of such Security.
Asset Disposition
means any direct or indirect sale, lease, transfer or other disposition
(or series of related sales, leases, transfers or dispositions) by the Company or any Restricted
Subsidiary, including any disposition by means of a merger, consolidation or similar transaction
(each referred to for the purposes of this definition as a disposition), of
(1) any shares of Capital Stock of a Restricted Subsidiary (other than directors
qualifying shares or shares required by applicable law to be held by a Person other than the
Company or a Restricted Subsidiary);
(2) all or substantially all of the assets of any division or line of business of the
Company or any Restricted Subsidiary; or
(3) any other assets of the Company or any Restricted Subsidiary outside of the
ordinary course of business of the Company or such Restricted Subsidiary
other than, in the case of clauses (1), (2) and (3) above,
(A) a disposition by a Restricted Subsidiary to the Company or by the Company or a
Restricted Subsidiary to a Restricted Subsidiary;
(B) for purposes of Section 4.06 only, (i) a disposition that constitutes a Restricted
Payment (or would constitute a Restricted Payment but for the exclusions from the definition
thereof (including a Permitted Investment)) and that is not prohibited by Section 4.04 and
(ii) a disposition of all or substantially all of the assets of the Company in accordance
with Section 5.01;
2
(C) a disposition of assets or Capital Stock with a fair market value of less than $2.5
million;
(D) a disposition of cash or Temporary Cash Investments;
(E) the creation of a Lien (but not the sale or other disposition of the property
subject to such Lien);
(F) sales of accounts receivable and related assets of the type specified in the
definition of Qualified Receivables Transaction for the fair market value thereof or in
connection with a Permitted Factoring Program for the fair market value thereof or the
creation of a Lien on any such accounts receivable or related assets in connection with a
Qualified Receivables Transaction or a Permitted Factoring Program;
(G) any exchange of like property pursuant to Section 1031 of the Code for use in a
Related Business;
(H) any sale, transfer or other disposition of defaulted receivables for collection;
(I) a disposition of assets that are worn out, obsolete or damaged or no longer used in
the business of the Company or any Restricted Subsidiary, as the case may be, in the
ordinary course of business;
(J) the licensing or sublicensing of intellectual property or other general intangibles
and licenses, sublicenses, leases or subleases of other property in the ordinary course of
business which, in each case, does not materially interfere with the business of the Company
and its Restricted Subsidiaries;
(K) for purposes of clauses (a)(1) and (2) of Section 4.06 only, the disposition of any
property or other assets of the Company or any of its Restricted Subsidiaries by reason of
theft, loss, physical destruction or damage, taking or similar event;
(L) any surrender or waiver of contract rights or the settlement, release, recovery on
or surrender of contract, tort or other claims of any kind;
(M) foreclosures on assets subject to Liens otherwise permitted to be incurred by the
Company or any of its Restricted Subsidiaries under this Indenture;
(N) any sale of Capital Stock, Indebtedness or other securities of an Unrestricted
Subsidiary;
(O) for purposes of clauses (a)(1) and (2) of Section 4.06 only, dispositions of
Investments in joint ventures (including Foreign Subsidiaries), to the extent required by,
or made pursuant to buy/sell arrangements between the joint venture parties;
(P) any sale of inventory, consignment arrangement or similar arrangement for the sale
of property in the ordinary course of business; and
3
(Q) the sale, transfer or other disposition of Hedging Obligations incurred pursuant to
Section 4.03.
Attributable Debt
in respect of a Sale/Leaseback Transaction means, as at the time of
determination, the present value (discounted at the interest rate borne by the Securities,
compounded semiannually) of the total obligations of the lessee for rental payments during the
remaining term of the lease included in such Sale/ Leaseback Transaction (including any period for
which such lease has been extended);
provided
,
however
, that if such Sale/Leaseback
Transaction results in a Capital Lease Obligation, the amount of Indebtedness represented thereby
will be determined in accordance with the definition of Capital Lease Obligation.
Average Life
means, as of the date of determination, with respect to any Indebtedness, the
quotient obtained by dividing (1) the sum of the products of the numbers of years from the date of
determination to the dates of each successive scheduled principal payment of or redemption or
similar payment with respect to such Indebtedness multiplied by the amount of such payment by (2)
the sum of all such payments.
Board of Directors
means the Board of Directors of the Company or any committee thereof duly
authorized to act on behalf of such Board.
Borrowing Base
means, as of any date, an amount equal to: (1) 80% of the face amount of all
accounts receivable owned by the Company and its Restricted Subsidiaries as of the end of the most
recent fiscal quarter preceding such date;
plus
(2) 50% of the book value of all inventory owned by
the Company and its Restricted Subsidiaries as of the end of the most recent fiscal quarter
preceding such date;
provided
,
however
, that (a) if Indebtedness is being incurred
to finance an acquisition pursuant to which any accounts receivable or inventory will be acquired
(whether through the direct acquisition of assets or the acquisition of Capital Stock of a Person),
Borrowing Base shall include the applicable percentage of any accounts receivable and inventory to
be acquired in connection with such acquisition and (b) any accounts receivable owned by a
Receivables Subsidiary, or which the Company or any of its Subsidiaries has agreed to transfer to a
Receivables Subsidiary, shall be excluded for purposes of determining such amount.
Business Day
means each day which is not a Legal Holiday.
Capital Lease Obligation
means an obligation that is required to be classified and accounted
for as a capital lease for financial reporting purposes in accordance with GAAP, and the amount of
Indebtedness represented by such obligation shall be the capitalized amount of such obligation
determined in accordance with GAAP; and the Stated Maturity thereof shall be the date of the last
payment of rent or any other amount due under such lease prior to the first date upon which such
lease may be terminated by the lessee without payment of a penalty. For purposes of Section 4.10,
a Capital Lease Obligation will be deemed to be secured by a Lien on the property being leased.
Capital Stock
of any Person means any and all shares, interests (including partnership
interests), rights to purchase, warrants, options, participations or other equivalents of
4
or interests in (however designated) equity of such Person, including any Preferred Stock, but
excluding any debt securities convertible into such equity.
Change of Control
means the occurrence of any of the following events:
(1) any person (as such term is used in Sections 13(d) and 14(d) of the Exchange
Act) is or becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the
Exchange Act, except that for purposes of this clause (1) such person shall be deemed to
have beneficial ownership of all shares that any such person has the right to acquire,
whether such right is exercisable immediately or only after the passage of time), directly
or indirectly, of more than 35% of the total voting power of the Voting Stock of the
Company;
(2) the adoption of a plan relating to the liquidation or dissolution of the Company;
or
(3) the merger or consolidation of the Company with or into another Person or the
merger of another Person with or into the Company, or the sale of all or substantially all
of the assets of the Company (determined on a consolidated basis) to another Person other
than a transaction following which (i) in the case of a merger or consolidation transaction,
holders of securities that represented 100% of the Voting Stock of the Company immediately
prior to such transaction (or other securities into which such securities are converted as
part of such merger or consolidation transaction) own directly or indirectly at least a
majority of the voting power of the Voting Stock of the surviving Person in such merger or
consolidation transaction immediately after such transaction and in substantially the same
proportion as before the transaction and (ii) in the case of a sale of assets transaction,
each transferee becomes an obligor in respect of the Securities and a Subsidiary of the
transferor of such assets.
Code
means the Internal Revenue Code of 1986, as amended.
Collateral
means all of the property and assets of the Company or any of the Subsidiary
Guarantors from time to time constituting collateral pursuant to the Security Documents;
provided
,
however
, that in no event shall the term Collateral include any
Excluded Assets.
Commodity Agreement
means any commodity futures contract, commodity option, commodity swap
agreement, commodity collar agreement, commodity cap agreement or other similar agreement or
arrangement entered into by the Company or any Restricted Subsidiary designed to protect the
Company or any of its Restricted Subsidiaries against fluctuations in the price of commodities
actually used in the ordinary course of business of the Company and its Restricted Subsidiaries.
Company
means the party named as such in this Indenture until a successor replaces it and,
thereafter, means the successor and, for purposes of any provision contained herein and required by
the TIA, each other obligor on the indenture securities.
5
Consolidated Coverage Ratio
as of any date of determination means the ratio of:
(1) the aggregate amount of EBITDA for the period of the most recent four consecutive
fiscal quarters prior to the date of such determination for which financial statements are
available to
(2) Consolidated Interest Expense for such four fiscal quarters;
provided
,
however
, that
(A) if the Company or any Restricted Subsidiary has Incurred any Indebtedness since the
beginning of such period that remains outstanding or if the transaction giving rise to the
need to calculate the Consolidated Coverage Ratio is an Incurrence of Indebtedness, or both,
EBITDA and Consolidated Interest Expense for such period shall be calculated after giving
effect on a pro forma basis to such Indebtedness as if such Indebtedness had been Incurred
on the first day of such period (except that in making such computation, the amount of
Indebtedness Incurred for working capital purposes under any Revolving Credit Facility
outstanding on the date of such calculation will be deemed to be (i) the average daily
balance of such Indebtedness during such four fiscal quarters or such shorter period for
which such facility was outstanding or (ii) if such facility was created after the end of
such four fiscal quarters, the average daily balance of such Indebtedness during the period
from the date of the creation of such facility to the date of such calculation);
(B) if the Company or any Restricted Subsidiary has repaid, repurchased, defeased or
otherwise discharged any Indebtedness since the beginning of such period or if any
Indebtedness is to be repaid, repurchased, defeased or otherwise discharged (in each case
other than Indebtedness Incurred for working capital purposes under any Revolving Credit
Facility) on the date of the transaction giving rise to the need to calculate the
Consolidated Coverage Ratio, EBITDA and Consolidated Interest Expense for such period shall
be calculated on a pro forma basis as if such discharge had occurred on the first day of
such period and as if the Company or such Restricted Subsidiary had not earned the interest
income actually earned during such period in respect of cash or Temporary Cash Investments
used to repay, repurchase, defease or otherwise discharge such Indebtedness;
(C) if since the beginning of such period the Company or any Restricted Subsidiary
shall have made any Asset Disposition (including any sale, lease, transfer or other
disposition that would constitute an Asset Disposition but for the exclusions contained in
clauses (C) and (G) of the definition thereof), EBITDA for such period shall be reduced by
an amount equal to EBITDA (if positive) directly attributable to the assets which are the
subject of such Asset Disposition for such period, or increased by an amount equal to EBITDA
(if negative), directly attributable thereto for such period and Consolidated Interest
Expense for such period shall be reduced by an amount equal to the Consolidated Interest
Expense directly attributable to any Indebtedness of the Company or any Restricted
Subsidiary repaid, repurchased, defeased or otherwise discharged with
6
respect to the Company and its continuing Restricted Subsidiaries in connection with
such Asset Disposition for such period (or, if the Capital Stock of any Restricted
Subsidiary is sold, the Consolidated Interest Expense for such period directly attributable
to the Indebtedness of such Restricted Subsidiary to the extent the Company and its
continuing Restricted Subsidiaries are no longer liable for such Indebtedness after such
sale);
(D) if since the beginning of such period the Company or any Restricted Subsidiary (by
merger or otherwise) shall have made an Investment in any Restricted Subsidiary (or any
Person which becomes a Restricted Subsidiary) or an acquisition of assets, including any
acquisition of assets occurring in connection with a transaction requiring a calculation to
be made hereunder, which constitutes all or substantially all of an operating unit of a
business, EBITDA and Consolidated Interest Expense for such period shall be calculated after
giving pro forma effect thereto (including the Incurrence of any Indebtedness) as if such
Investment or acquisition had occurred on the first day of such period;
(E) if since the beginning of such period any Person (that subsequently became a
Restricted Subsidiary or was merged with or into the Company or any Restricted Subsidiary
since the beginning of such period) shall have made any Asset Disposition (including any
sale, lease, transfer or other disposition that would constitute an Asset Disposition but
for the exclusions contained in clauses (C) and (G) of the definition thereof), any
Investment or acquisition of assets that would have required an adjustment pursuant to
clause (C) or (D) above if made by the Company or a Restricted Subsidiary during such
period, EBITDA and Consolidated Interest Expense for such period shall be calculated after
giving pro forma effect thereto as if such Asset Disposition, Investment or acquisition had
occurred on the first day of such period;
(F) if since the beginning of such period any Person was designated as an Unrestricted
Subsidiary or redesignated as, or otherwise became, a Restricted Subsidiary, EBITDA and
Consolidated Interest Expense shall be calculated on a pro forma basis as if such event had
occurred on the first day of such period; and
(G) if, since the beginning of such period, the Company has classified any of its
businesses as discontinued operations, EBITDA and Consolidated Interest Expense shall be
calculated on a pro forma basis as to exclude the impact of such discontinued operations on
or after the date such operations are classified as discontinued.
For purposes of this definition, whenever pro forma effect is to be given to an acquisition of
assets, the amount of income or earnings relating thereto and the amount of Consolidated Interest
Expense associated with any Indebtedness Incurred in connection therewith, the pro forma
calculations shall be determined in good faith by a responsible financial or accounting Officer of
the Company (and shall include any applicable Pro Forma Cost Savings). If any Indebtedness bears a
floating rate of interest and is being given pro forma effect, the interest on such Indebtedness
shall be calculated as if the rate in effect on the date of determination had been the applicable
rate for the entire period (taking into account any Interest Rate Agreement applicable
7
to such Indebtedness if such Interest Rate Agreement has a remaining term in excess of 12 months).
Consolidated Interest Expense
means, for any period, the total interest expense of the
Company and its consolidated Restricted Subsidiaries (but excluding any loss on early
extinguishment of Indebtedness), plus, to the extent not included in such total interest expense,
and to the extent incurred by the Company or its Restricted Subsidiaries, without duplication:
(1) interest expense attributable to Capital Lease Obligations;
(2) amortization of debt discount and debt issuance cost (other than the debt issuance
costs incurred in connection with the Transactions);
(3) capitalized interest;
(4) non-cash interest expense;
(5) commissions, discounts and other fees and charges owed with respect to letters of
credit and bankers acceptance financing;
(6) net payments pursuant to Hedging Obligations relating to Interest Rate Agreements;
provided
,
however
, that any net receipts pursuant to such Hedging
Obligations shall be included as a reduction of interest expense;
(7) dividends accrued in respect of all Disqualified Stock of the Company and all
Preferred Stock of any Restricted Subsidiary, in each case held by Persons other than the
Company or a Restricted Subsidiary (other than dividends payable solely in Capital Stock
(other than Disqualified Stock) of the Company);
provided
,
however
, that
such dividends will be multiplied by a fraction the numerator of which is one and the
denominator of which is one minus the effective combined tax rate of the issuer of such
Preferred Stock (expressed as a decimal) for such period (as estimated by the chief
financial officer of the Company in good faith);
(8) interest incurred in connection with Investments in discontinued operations;
(9) interest accruing on any Indebtedness of any other Person to the extent such
Indebtedness is Guaranteed by (or secured by the assets of) the Company or any Restricted
Subsidiary; and
(10) the cash contributions to any employee stock ownership plan or similar trust to
the extent such contributions are used by such plan or trust to pay interest or fees to any
Person (other than the Company) in connection with Indebtedness Incurred by such plan or
trust.
Consolidated Net Income
means, for any period, the net income of the Company and its
consolidated Subsidiaries;
provided
,
however
, that there shall not be included in
such Consolidated Net Income:
8
(1) any net income of any Person (other than the Company) if such Person is not a
Restricted Subsidiary, except that, subject to the exclusion contained in clause (4) below,
the Companys equity in the net income of any such Person for such period shall be included
in such Consolidated Net Income up to the aggregate amount of cash actually distributed by
such Person during such period to the Company or a Restricted Subsidiary as a dividend or
other distribution (subject, in the case of a dividend or other distribution paid to a
Restricted Subsidiary, to the limitations contained in clause (3) below);
(2) any net income (or loss) of any Person acquired by the Company or a Subsidiary in
a pooling of interests transaction (or any transaction accounted for in a manner similar to
a pooling of interests) for any period prior to the date of such acquisition;
(3) any net income of any Restricted Subsidiary if such Restricted Subsidiary is
subject to restrictions, directly or indirectly, on the payment of dividends or the making
of distributions by such Restricted Subsidiary, directly or indirectly, to the Company,
except that:
(A) subject to the exclusion contained in clause (4) below, the Companys
equity in the net income of any such Restricted Subsidiary for such period shall be
included in such Consolidated Net Income up to the aggregate amount of cash actually
distributed by such Restricted Subsidiary during such period to the Company or
another Restricted Subsidiary as a dividend or other distribution (subject, in the
case of a dividend or other distribution paid to another Restricted Subsidiary, to
the limitation contained in this clause); and
(B) the Companys equity in a net loss of any such Restricted Subsidiary for
such period shall be included in determining such Consolidated Net Income;
(4) any gain (or loss) realized upon the sale or other disposition of any assets of
the Company, its consolidated Subsidiaries or any other Person (including pursuant to any
sale-and-leaseback arrangement) which is not sold or otherwise disposed of in the ordinary
course of business and any gain (or loss) realized upon the sale or other disposition of any
Capital Stock of any Person;
(5) extraordinary gains or losses;
(6) the cumulative effect of a change in accounting principles;
(7) any non-cash goodwill impairment charges or other intangible asset impairment
charges incurred subsequent to the date of this Indenture resulting from the application of
SFAS No. 142 or any other non-cash asset impairment charges incurred subsequent to the date
of this Indenture resulting from the application of SFAS No. 144;
(8) any non-recurring costs and expenses incurred in connection with the Transactions
or any other acquisition of, or Investment in, a Person in a Related Business;
9
(9) any non-cash compensation charges, including any such charges arising from stock
options, restricted stock grants or other equity-incentive programs;
(10) any net after-tax income or loss from discontinued operations and any net
after-tax gains or losses on the disposition of discontinued operations;
(11) any inventory purchase accounting adjustments made as a result of any acquisition
of a Person in a Related Business;
(12) any unrealized gain or loss resulting from the application of SFAS No. 133 with
respect to Hedging Obligations; and
(13) any non-cash gain or loss attributable to the early extinguishment of
Indebtedness,
in each case, for such period. Notwithstanding the foregoing, for the purpose of Section 4.04
only, there shall be excluded from Consolidated Net Income any repurchases, repayments or
redemptions of Investments, proceeds realized on the sale of Investments or return of capital to
the Company or a Restricted Subsidiary to the extent such repurchases, repayments, redemptions,
proceeds or returns increase the amount of Restricted Payments permitted under such Section
pursuant to Section 4.04(a)(3)(D).
Consolidated Secured Debt Ratio
as of any date of determination means the ratio of (1) the
aggregate principal amount of Secured Indebtedness (and without duplication the aggregate net
investment outstanding under any Qualified Receivables Transaction or Permitted Factoring Program)
on the date of determination after giving pro forma effect to all such Secured Indebtedness to be
Incurred on such date to (2) EBITDA for the most recently ended four fiscal quarters for which
financial statements are available immediately preceding the date of determination, with (A) such
pro forma adjustments to EBITDA as would be required under the definition of Consolidated Coverage
Ratio in performing a calculation thereof and (B) the amount of Secured Indebtedness on the date
of determination being calculated in accordance with the principles required to be applied in
performing a calculation of Indebtedness under the definition of Consolidated Coverage Ratio.
continuing
means, with respect to any Default or Event of Default, that such Default or
Event of Default has not been cured or waived.
Credit Facilities
means, with respect to the Company or any of its Restricted Subsidiaries,
one or more debt facilities, including the ABL Credit Facility, or other financing arrangements
(including commercial paper facilities or indentures) providing for revolving credit loans, term
loans, letters of credit, receivables financing (including through the sale of receivables to such
lenders or to special purpose entities formed to borrow from such lenders against such receivables)
or other Indebtedness, including any notes, mortgages, Guarantees, collateral documents,
instruments and other agreements executed in connection therewith, and any amendments, supplements,
modifications, extensions, renewals, restatements, refundings or refinancings thereof and any
indentures or credit facilities or commercial paper facilities that replace, refund or refinance
any part of the loans, notes, other credit facilities or commitments thereunder, including any such
replacement, refunding or refinancing facility or indenture that
10
increases the amount permitted to be borrowed thereunder or alters the maturity thereof
(provided that such increase in Indebtedness is permitted under Section 4.03) or adds Restricted
Subsidiaries as additional borrowers or guarantors thereunder and whether by the same or any other
agent, lender, group of lenders, investor or group of investors.
Currency Agreement
means any foreign exchange contract, currency swap agreement or other
similar agreement with respect to currency values.
Default
means any event which is, or after notice or passage of time or both would be, an
Event of Default.
Designated Non-cash Consideration
means the fair market value of non-cash consideration
received by the Company or any Restricted Subsidiary in connection with an Asset Disposition that
is so designated as Designated Non-cash Consideration pursuant to an Officers Certificate, or, in
the case of Designated Non-cash Consideration with a fair market value of $5.0 million or greater,
pursuant to a resolution of the Board of Directors, in each case, setting forth the basis of such
valuation.
Discharge of First Lien Obligations
means, subject to any reinstatement of First Lien
Obligations in accordance with the Intercreditor Agreement, (a) indefeasible payment in full in
cash of the principal of and interest (including interest accruing on or after the commencement of
any Insolvency or Liquidation Proceeding at the rate provided for in the respective First Lien
Document, whether or not such interest would be allowed in any such Insolvency or Liquidation
Proceeding) and premium, if any, on all Indebtedness under the First Lien Documents and termination
of all commitments of the First Lien Lenders to lend or otherwise extend credit under the First
Lien Documents, (b) indefeasible payment in full in cash of all other First Lien Obligations
(including letter of credit reimbursement obligations) that are due and payable or otherwise
accrued and owing at or prior to the time such principal, interest, and premium are paid and (c)
termination or cash collateralization (in an amount and manner, and on terms, reasonably
satisfactory to the First Lien Collateral Agent) of all letters of credit issued under the First
Lien Documents.
Disqualified Stock
means, with respect to any Person, any Capital Stock which by its terms
(or by the terms of any security into which it is convertible or for which it is exchangeable at
the option of the holder) or upon the happening of any event:
(1) matures or is mandatorily redeemable (other than redeemable only for Capital Stock
of such Person which is not itself Disqualified Stock) pursuant to a sinking fund obligation
or otherwise;
(2) is convertible or exchangeable at the option of the holder for Indebtedness or
Disqualified Stock; or
(3) is mandatorily redeemable or must be purchased upon the occurrence of certain
events or otherwise, in whole or in part,
in each case on or prior to the 180th day after the earlier of the Stated Maturity of the
Securities and the date the Securities are no longer outstanding;
provided
,
however
, that any Capital Stock
11
that would not constitute Disqualified Stock but for provisions thereof giving holders thereof the
right to require such Person to purchase or redeem such Capital Stock upon the occurrence of an
asset sale or change of control occurring prior to the first anniversary of the earlier of the
Stated Maturity of the Securities and the date the Securities are no longer outstanding shall not
constitute Disqualified Stock if (A) the asset sale or change of control provisions applicable
to such Capital Stock are not more favorable to the holders of such Capital Stock than the terms
applicable to the Securities in Sections 4.06 and 4.09 of this Indenture and (B) any such
requirement only becomes operative after compliance with such terms applicable to the Securities,
including the purchase of any Securities tendered pursuant thereto.
The amount of any Disqualified Stock that does not have a fixed redemption, repayment or
repurchase price will be calculated in accordance with the terms of such Disqualified Stock as if
such Disqualified Stock were redeemed, repaid or repurchased on any date on which the amount of
such Disqualified Stock is to be determined pursuant to this Indenture;
provided
,
however
, that if such Disqualified Stock could not be required to be redeemed, repaid or
repurchased at the time of such determination, the redemption, repayment or repurchase price will
be the book value of such Disqualified Stock as reflected in the most recent financial statements
of such Person. The Company may designate, in an Officers Certificate delivered to the Trustee at
the time of issuance, any Preferred Stock of the Company or any Restricted Subsidiary that would
not otherwise be Disqualified Stock to be Disqualified Stock for all purposes under this
Indenture.
EBITDA
for any period means the sum of Consolidated Net Income, plus the following to the
extent deducted in calculating such Consolidated Net Income:
(1) all provision for taxes of the Company and its consolidated Restricted
Subsidiaries (including, without limitation, federal, state, local, foreign income,
franchise, state single business unitary and similar tax expense);
(2) Consolidated Interest Expense;
(3) depreciation and amortization expense of the Company and its consolidated
Restricted Subsidiaries (excluding amortization expense attributable to a prepaid item that
was paid in cash in a prior period);
(4) fees and expenses related to a Qualified Receivables Transaction or a Permitted
Factoring Program (the Receivables Fee and Expenses);
(5) any net after-tax losses attributable to the termination of any employee pension
benefit plan (the Termination Losses);
(6) extraordinary, non-recurring or unusual losses or expenses relating to severance,
relocation costs, executive recruiting costs and curtailments or modifications to pension
and post-retirement employee benefit plans (the Extraordinary Losses);
(7) all other non-cash charges of the Company and its consolidated Restricted
Subsidiaries (excluding any such non-cash charge to the extent that it represents an accrual
of or reserve for cash expenditures in any future period) less all non-cash items of
12
income of the Company and its consolidated Restricted Subsidiaries (other than accruals
of revenue by the Company and its consolidated Restricted Subsidiaries in the ordinary
course of business and other than reversals (to the extent made without any payment in cash)
of accruals or reserves previously excluded from EBITDA);
(8) to the extent non-recurring and not capitalized, any fees, costs and expenses of
the Company and its Restricted Subsidiaries Incurred as a result of Equity Offerings,
Investments or Asset Dispositions permitted hereunder and the issuance, repayment or
amendment of Capital Stock or Indebtedness permitted hereunder (in each case, whether or not
consummated), including (i) such fees, costs and expenses related to the offering of the
Securities and the amendment of the ABL Credit Facility and (ii) any amendment of other
modification of the Securities; and
(9) the amount of any restructuring charge or reserve or other plant closure costs,
including any onetime costs incurred in connection with acquisitions after the Issue Date
and costs related to the closure and/or consolidation of facilities in connection therewith;
in each case for such period. Notwithstanding the foregoing, the provision for taxes based on the
income or profits of, the depreciation and amortization and non-cash charges of, the Receivables
Fees and Expenses of, the Termination Losses of and the Extraordinary Losses of a Restricted
Subsidiary that is not a Subsidiary Guarantor shall be added to Consolidated Net Income to compute
EBITDA only to the extent (and in the same proportion, including by reason of minority interests)
that the net income or loss of such Restricted Subsidiary was included in calculating Consolidated
Net Income and only if a corresponding amount would be permitted at the date of determination to be
dividended to the Company by such Restricted Subsidiary without prior approval (that has not been
obtained), pursuant to the terms of its charter and all agreements, instruments, judgments,
decrees, orders, statutes, rules and governmental regulations applicable to such Restricted
Subsidiary or its stockholders.
Equity Offering
means either (i) an underwritten primary public offering of common stock of
the Company pursuant to an effective registration statement under the Securities Act or (ii) a
private placement of common stock of the Company.
Exchange Act
means the U.S. Securities Exchange Act of 1934, as amended.
Excluded Assets
means
(i) all motor vehicles and other assets subject to a certificate of title (other than
aircraft) the perfection of a security interest in which is excluded from the Uniform
Commercial Code in the relevant jurisdiction;
(ii) any General Intangible (as defined in the Uniform Commercial Code) or other
rights arising under contracts, Instruments (as defined in the Uniform Commercial Code),
licenses, license agreements or other documents, to the extent (and only to the extent) that
the grant of a security interest would (x) constitute a violation of a restriction in favor
of a third party on such grant, unless and until any required consents shall have been
obtained, (y) give any other party the right to terminate its obligations thereunder, or (z)
violate any law;
provided
,
however
, that (1) any portion of any such General
13
Intangible or other right shall cease to be excluded pursuant to this clause (ii) at
the time and to the extent that the grant of a security interest therein does not result in
any of the consequences specified above and (2) the limitation set forth in this clause (ii)
above shall not affect, limit, restrict or impair the grant by a grantor of a security
interest in any such General Intangible or other right, to the extent that an otherwise
applicable prohibition or restriction on such grant is rendered ineffective by any
applicable law, including the Uniform Commercial Code;
(iii) property (whether real, personal or mixed, or tangible or intangible), and
proceeds thereof, owned by any obligor on the date hereof or hereafter acquired that is
subject to a Lien securing a purchase money obligation or capital lease permitted to be
incurred pursuant to this Indenture, for so long as the contract or other agreement in which
such Lien is granted (or the documentation providing for such purchase money obligation or
capital lease) validly prohibits the creation of any other Lien on such property;
(iv) applications filed in the U.S. Patent and Trademark Office to register trademarks
or service marks on the basis of any obligors intent to use such trademarks or service
marks unless and until the filing of a Statement of Use or Amendment to Allege Use has
been filed and accepted, whereupon such applications shall be automatically subject to the
Lien granted herein and deemed included in the Collateral;
(v) any property or assets to the extent that such grant of a security interest is
prohibited by any applicable law or requires a consent not obtained of any governmental
authority pursuant to such applicable law;
(vi) more than 65% of the Capital Stock of any Foreign Subsidiary which represent
Voting Stock to the extent a greater percentage would result in adverse tax consequences to
the Company;
(vii) Capital Stock and other securities of a Subsidiary to the extent a pledge of
such Collateral is limited because such pledge would otherwise require the filing with the
SEC of separate financial statements of such Subsidiary as described in the Security
Documents;
(viii) de minimis Capital Stock of any indirect Foreign Subsidiary or other foreign
person held by the Company or any Subsidiary Guarantor solely for the benefit of any Person
other than the Company or any Subsidiary Guarantor;
(ix) all tax, payroll, employee benefit, fiduciary and trust accounts; and
(x) accounts receivable and any assets related thereto owned by a Receivables
Subsidiary or which the Company or its Subsidiaries have agreed to transfer to a Receivables
Subsidiary or as part of a Permitted Factoring Program.
First Lien Collateral Agent
means the agent under the ABL Credit Facility and any permitted
successor thereto.
14
First Lien Documents
means the ABL Credit Facility, the other Loan Documents (as defined in
the ABL Credit Facility), each of the other agreements, documents and instruments providing for or
evidencing any other First Lien Obligation and any other document or instrument executed or
delivered at any time in connection with any First Lien Obligation (including any intercreditor or
joinder agreement among holders of First Lien Obligations), to the extent such are effective at the
relevant time, as each may be amended, modified, restated, supplemented, replaced, refinanced,
renewed or extended from time to time.
First Lien Lenders
means the Lenders (or a similar term) from time to time party to, and
as defined in, the ABL Credit Facility or any other Credit Facility secured by a first-lien
security interest in the Collateral, together with their respective successors and permitted
assigns;
provided
,
however
, that the term First Lien Lender shall in any event
also include each letter of credit issuer and swingline lender under the ABL Credit Facility,
including the Issuing Bank and any Agent under (and each as defined in) the ABL Credit
Facility.
First Lien Obligations
means all Obligations under and as defined in the ABL Credit Facility
of the Company and the Subsidiary Guarantors and under any other document relating to the ABL
Credit Facility and all obligations under any other Credit Facilities Incurred under clause (1) of
paragraph (b) under Section 4.03 the obligations under which are secured by first-lien security
interests in the assets or properties of the Company and its Subsidiaries. First Lien Obligations
shall in any event include:
(a) all interest accrued or accruing, or which would accrue, absent commencement of an
Insolvency or Liquidation Proceeding (and the effect of provisions such as Section 502(b)(2)
of the U.S. Bankruptcy Code), on or after the commencement of an Insolvency or Liquidation
Proceeding in accordance with the rate specified in the relevant First Lien Document,
whether or not the claim for such interest is allowed or allowable as a claim in such
Insolvency or Liquidation Proceeding;
(b) any and all fees and expenses (including attorneys and/or financial consultants
fees and expenses) incurred by the First Lien Collateral Agent and the First Priority
Secured Parties on or after the commencement of an Insolvency or Liquidation Proceeding,
whether or not the claim for such fees and expenses is allowed or allowable under Section
502 or 506(b) of the U.S. Bankruptcy Code or any other provision of the U.S. Bankruptcy Code
or any similar federal, state or foreign law for the relief of debtors as a claim in such
Insolvency or Liquidation Proceeding; and
(c) all obligations and liabilities of the Company and each Subsidiary Guarantor under
each First Lien Document to which it is a party which, but for the automatic stay under
Section 362(a) of the U.S. Bankruptcy Code, would become due and payable.
First Priority Secured Parties
has the meaning given to such term in the Intercreditor
Agreement.
Foreign Cash Investments
means any Investment rated P-1 or A-1 or better by Moodys or
Standard & Poors, respectively, (i) in direct obligations issued by, or guaranteed by, the
government of a country that is a member of the Organization for Economic Cooperation and
15
Development (the OECD) or any agency or instrumentality thereof;
provided
,
however
, that such obligations mature within 180 days of the date of acquisition thereof,
and (ii) in time deposits or negotiable certificates of deposit or money market securities issued
by any commercial banking institution that is a member of an applicable central bank of a country
that is a member of the OECD having surplus of at least $50.0 million in the aggregate at all
times, payable on demand or maturing within 180 days of the acquisition thereof;
provided
,
however
, that such time deposits, negotiable certificates of deposit and money market
securities are permitted under the Credit Facilities.
Foreign Subsidiary
means any Restricted Subsidiary of the Company that is not organized
under the laws of the United States of America or any State thereof or the District of Columbia.
GAAP
means generally accepted accounting principles in the United States of America as in
effect as of the Issue Date, including those set forth in
(1) the opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants;
(2) statements and pronouncements of the Financial Accounting Standards Board;
(3) such other statements by such other entity as approved by a significant segment of
the accounting profession; and
(4) the rules and regulations of the SEC governing the inclusion of financial
statements (including pro forma financial statements) in periodic reports required to be
filed pursuant to Section 13 of the Exchange Act, including opinions and pronouncements in
staff accounting bulletins and similar written statements from the accounting staff of the
SEC;
except with respect to any reports or financial information required to be delivered pursuant to
Section 4.02, which shall be prepared in accordance with GAAP as in effect on the date thereof;
provided
,
however
, that, at any time after adoption of IFRS by the Company for its
financial statements and reports for all financial reporting purposes, the Company may elect to
apply IFRS for all purposes of this Indenture, and, upon any such election, references in this
Indenture to GAAP shall be construed to mean IFRS as in effect on the date of such election;
provided further,
however
, that (1) any such election once made shall be
irrevocable (and shall only be made once), (2) all financial statements and reports required to be
provided after such election pursuant to this Indenture shall be prepared on the basis of IFRS, (3)
from and after such election, all ratios, computations and other determinations based on GAAP
contained in this Indenture shall be computed in conformity with IFRS with retroactive effect being
given thereto assuming that such election had been made on the Issue Date, (4) such election shall
not have the effect of rendering invalid any Restricted Payment made prior to the date of such
election pursuant to Section 4.04 or any Incurrence of Indebtedness Incurred prior to the date of
such election pursuant to Section 4.03 (or any other action conditioned on (x) the Company and the
Subsidiary Guarantors having been able to Incur $1.00 of additional Indebtedness under the
16
incurrence test set forth in clause (a) of Section 4.03 or (y) the Consolidated Coverage Ratio
being a specified amount) if such Restricted Payment, Incurrence or other action was valid under
this Indenture on the date made, Incurred or taken, as the case may be and (5) all accounting terms
and references in this Indenture to accounting standards shall be deemed to be references to the
most comparable terms or standards under IFRS. The Company shall give notice of any election to
the Trustee and the Holders within 15 days of such election. For the avoidance of doubt, solely
making an election (without any other action) referred to in this definition will not be treated as
an Incurrence of Indebtedness.
Guarantee
means any obligation, contingent or otherwise, of any Person directly or
indirectly guaranteeing any Indebtedness of any Person and any obligation, direct or indirect,
contingent or otherwise, of such Person
(1) to purchase or pay (or advance or supply funds for the purchase or payment of)
such Indebtedness of such Person (whether arising by virtue of partnership arrangements, or
by agreements to keep-well, to purchase assets, goods, securities or services, to
take-or-pay or to maintain financial statement conditions or otherwise); or
(2) entered into for the purpose of assuring in any other manner the obligee of such
Indebtedness of the payment thereof or to protect such obligee against loss in respect
thereof (in whole or in part);
provided
,
however
, that the term Guarantee shall not include endorsements for
collection or deposit in the ordinary course of business. The term Guarantee used as a verb has
a corresponding meaning.
Guaranty Agreement
means a supplemental indenture, in the form of Exhibit B hereto, pursuant
to which a Subsidiary Guarantor Guarantees the Companys obligations with respect to the Securities
on the terms provided for in this Indenture.
Hedging Obligations
of any Person means the obligations of such Person pursuant to any
Interest Rate Agreement, Currency Agreement or Commodity Agreement.
Holder
or
Securityholder
means the Person in whose name a Security is registered on the
Registrars books.
IFRS
means the International Financial Reporting Standards as issued by the International
Accounting Standards Board.
Immaterial Subsidiary
means, as of any date, any Restricted Subsidiary (i) whose total
assets, as of that date, are less than $1.0 million and whose total assets, as of that date and
together with the total assets of all Immaterial Subsidiaries as of such date, are less than $10.0
million and (ii) whose total revenues for the most recent 12-month period do not exceed $1.0
million and whose total revenues for the most recent 12-month period, together with the total
revenues for the most recent 12-month period for all Immaterial Subsidiaries, do not exceed $10.0
million;
provided
,
however
, that a Restricted Subsidiary will not be considered to
be an Immaterial Subsidiary if it, directly or indirectly, Guarantees or otherwise provides direct
credit support for any Indebtedness of the Company or any Subsidiary Guarantor.
17
Incur
means issue, assume, Guarantee, incur or otherwise become liable for;
provided
,
however
, that any Indebtedness of a Person existing at the time such
Person becomes a Restricted Subsidiary (whether by merger, consolidation, acquisition or otherwise)
shall be deemed to be Incurred by such Person at the time it becomes a Restricted Subsidiary. The
term Incurrence when used as a noun shall have a correlative meaning. Solely for purposes of
determining compliance with Section 4.03:
(1) amortization of debt discount or the accretion of principal with respect to a
non-interest bearing or other discount security;
(2) the payment of interest in the form of additional Indebtedness of the same
instrument or the payment of dividends on Capital Stock in the form of additional Capital
Stock of the same class and with the same terms;
(3) the obligation to pay a premium in respect of Indebtedness arising in connection
with the issuance of a notice of redemption or making of a mandatory offer to purchase such
Indebtedness;
(4) changes in the principal amount of any Indebtedness that is denominated in a
currency other than U.S. dollars solely as a result of fluctuations in exchange rates or
currency values; and
(5) the reclassification of any outstanding Capital Stock as Indebtedness due to a
change in accounting principles so long as such Capital Stock was issued prior to, and not
in contemplation of, such accounting change
will not be deemed to be the Incurrence of Indebtedness.
Indebtedness
means, with respect to any Person on any date of determination (without
duplication):
(1) the principal in respect of (A) indebtedness of such Person for money borrowed and
(B) indebtedness evidenced by notes, debentures, bonds or other similar instruments for the
payment of which such Person is responsible or liable, including, in each case, any premium
on such indebtedness to the extent such premium has become due and payable;
(2) all Capital Lease Obligations of such Person and all Attributable Debt in respect
of Sale/Leaseback Transactions entered into by such Person;
(3) all obligations of such Person issued or assumed as the deferred purchase price of
property, all conditional sale obligations of such Person and all obligations of such Person
under any title retention agreement (but excluding any accounts payable or other liability
to trade creditors arising in the ordinary course of business);
(4) all obligations of such Person for the reimbursement of any obligor on any letter
of credit, bankers acceptance or similar credit transaction (other than obligations with
respect to letters of credit securing obligations (other than obligations described in
18
clauses (1) through (3) above) entered into in the ordinary course of business of such
Person to the extent such letters of credit are not drawn upon or, if and to the extent
drawn upon, such drawing is reimbursed no later than the tenth Business Day following
payment on the letter of credit);
(5) the amount of all obligations of such Person with respect to the redemption,
repayment or other repurchase of any Disqualified Stock of such Person or, with respect to
any Preferred Stock of any Subsidiary of such Person, the principal amount of such Preferred
Stock to be determined in accordance with this Indenture (but excluding, in each case, any
accrued dividends);
(6) all obligations of the type referred to in clauses (1) through (5) of other
Persons and all dividends of other Persons for the payment of which, in either case, such
Person is responsible or liable, directly or indirectly, as obligor, guarantor or
otherwise, including by means of any Guarantee;
(7) all obligations of the type referred to in clauses (1) through (6) of other
Persons secured by any Lien on any property or asset of such Person (whether or not such
obligation is assumed by such Person), the amount of such obligation being deemed to be the
lesser of the fair market value of such property or assets and the amount of the obligation
so secured; and
(8) to the extent not otherwise included in this definition, Hedging Obligations of
such Person.
Notwithstanding the foregoing, in connection with the purchase by the Company or any Restricted
Subsidiary of any business, the term Indebtedness will exclude post-closing payment adjustments
to which the seller may become entitled to the extent such payment is determined by a final closing
balance sheet or such payment depends on the performance of such business after the closing;
provided
,
however
, that, at the time of closing, the amount of any such payment is
not determinable and, to the extent such payment thereafter becomes fixed and determined, the
amount is paid within 30 days thereafter.
The amount of Indebtedness of any Person at any date shall be the outstanding balance at such
date of all obligations as described above;
provided
,
however
, that in the case of
Indebtedness sold at a discount, the amount of such Indebtedness at any time will be the accreted
value thereof at such time.
The amount of Indebtedness represented by a Hedging Obligation shall be equal to:
(1) zero if such Hedging Obligation has been Incurred pursuant to Section 4.03(b)(7),
or
(2) the termination value of such Hedging Obligation if not Incurred pursuant to
Section 4.03(b)(7).
Indenture
means this Indenture as amended or supplemented from time to time.
19
Independent Qualified Party
means an investment banking firm, accounting firm or appraisal
firm of national standing;
provided
,
however
, that such firm is not an Affiliate of
the Company.
Insolvency or Liquidation Proceeding
means (a) any voluntary or involuntary case or
proceeding under the U.S. Bankruptcy Code with respect to the Company or any Subsidiary Guarantor,
(b) any other voluntary or involuntary insolvency, reorganization or bankruptcy case or proceeding,
or any receivership, liquidation, reorganization or other similar case or proceeding with respect
to the Company or any Subsidiary Guarantor or with respect to a material portion of its respective
assets, (c) any liquidation, dissolution, reorganization or winding up of the Company or any
Subsidiary Guarantor, whether voluntary or involuntary and whether or not involving insolvency or
bankruptcy or (d) any assignment for the benefit of creditors or any other marshalling of assets
and liabilities of the Company or any Subsidiary Guarantor.
Intercreditor Agreement
means the Intercreditor Agreement dated on or about the Issue Date
among the Second Lien Collateral Agent, the First Lien Collateral Agent, the Company and each
Subsidiary Guarantor named therein (the 2011 Intercreditor Agreement), or other intercreditor
agreements, consistent with the 2011 Intercreditor Agreement, among the Second Lien Collateral
Agent and an agent for lenders providing a Credit Facility from time to time, in each case as such
agreement may be amended, restated, supplemented, modified, extended or renewed from time to time.
Interest Rate Agreement
means any interest rate swap agreement, interest rate cap agreement
or other financial agreement or arrangement designed to manage, hedge or protect against
fluctuations in interest rates.
Investment
in any Person means any direct or indirect advance, loan (other than advances to
customers in the ordinary course of business that are recorded as accounts receivable on the
balance sheet of the lender) or other extensions of credit (including by way of Guarantee or
similar arrangement) or capital contribution to (by means of any transfer of cash or other property
to others or any payment for property or services for the account or use of others), or any
purchase or acquisition of Capital Stock, Indebtedness or other similar instruments issued by such
Person. If the Company or any Restricted Subsidiary issues, sells or otherwise disposes of any
Capital Stock of a Person that is a Restricted Subsidiary such that, after giving effect thereto,
such Person is no longer a Restricted Subsidiary, any Investment by the Company or any Restricted
Subsidiary in such Person remaining after giving effect thereto will be deemed to be a new
Investment at such time. The acquisition by the Company or any Restricted Subsidiary of a Person
that holds an Investment in a third Person will be deemed to be an Investment by the Company or
such Restricted Subsidiary in such third Person at such time. Except as otherwise provided for
herein, the amount of an Investment shall be its fair market value at the time the Investment is
made and without giving effect to subsequent changes in value.
20
For purposes of the definition of Unrestricted Subsidiary, the definition of Restricted
Payment and Section 4.04:
(1)
Investment
shall include the portion (proportionate to the Companys equity
interest in such Subsidiary) of the fair market value of the net assets of any Subsidiary of
the Company at the time that such Subsidiary is designated an Unrestricted Subsidiary;
provided
,
however
, that upon a redesignation of such Subsidiary as a
Restricted Subsidiary, the Company shall be deemed to continue to have a permanent
Investment in an Unrestricted Subsidiary equal to an amount (if positive) equal to (A) the
Companys Investment in such Subsidiary at the time of such redesignation less (B) the
portion (proportionate to the Companys equity interest in such Subsidiary) of the fair
market value of the net assets of such Subsidiary at the time of such redesignation; and
(2) any property transferred to or from an Unrestricted Subsidiary shall be valued at
its fair market value at the time of such transfer, in each case as determined in good faith
by the Board of Directors.
Issue Date
means April 26, 2011.
Legal Holiday
means a Saturday, a Sunday or a day on which banking institutions are not
required to be open in the State of New York.
Lien
means any mortgage, pledge, security interest, encumbrance, lien or charge of any kind
(including any conditional sale or other title retention agreement or lease in the nature thereof).
Moodys
means Moodys Investors Service, Inc. and any successor to its rating agency
business.
Net Available Cash
from an Asset Disposition means cash payments and the fair market value
of cash equivalents received therefrom (including any cash payments received by way of deferred
payment of principal pursuant to a note or installment receivable or otherwise and proceeds from
the sale or other disposition of any securities (other than cash equivalents) received as
consideration, but only as and when received, but excluding any other consideration received in the
form of assumption by the acquiring Person of Indebtedness or other obligations relating to such
properties or assets or received in any other non-cash form), in each case net of
(1) all legal, accounting, investment banking, title and recording tax expenses,
commissions and other fees and expenses incurred, and all federal, state, provincial,
foreign and local taxes required to be accrued as a liability under GAAP, as a consequence
of such Asset Disposition;
(2) all payments made on any Indebtedness which is secured by any assets subject to
such Asset Disposition, in accordance with the terms of any Lien upon or other security
agreement of any kind with respect to such assets, or which must by its terms, or in order
to obtain a necessary consent to such Asset Disposition, or by applicable law, be repaid out
of the proceeds from such Asset Disposition;
21
(3) all distributions and other payments required to be made to minority interest
holders in Restricted Subsidiaries as a result of such Asset Disposition;
(4) the deduction of appropriate amounts provided by the seller as a reserve, in
accordance with GAAP, against any liabilities associated with the property or other assets
disposed in such Asset Disposition and retained by the Company or any Restricted Subsidiary
after such Asset Disposition; and
(5) any portion of the purchase price from an Asset Disposition placed in escrow,
whether as a reserve for adjustment of the purchase price, for satisfaction of indemnities
in respect of such Asset Disposition or otherwise in connection with that Asset Disposition;
provided
,
however
, that upon the termination of that escrow, Net Available
Cash will be increased by any portion of funds in the escrow that are released to the
Company or any Restricted Subsidiary.
Net Cash Proceeds
means, with respect to any issuance or sale of Capital Stock or
Indebtedness, the cash proceeds of such issuance or sale net of attorneys fees, accountants fees,
underwriters or placement agents fees, discounts or commissions and brokerage, consultant and
other fees actually incurred in connection with such issuance or sale and net of taxes paid or
payable as a result thereof.
Obligations
means, with respect to any Indebtedness, all obligations for principal, premium,
interest, penalties, fees, indemnifications, reimbursements, and other amounts payable pursuant to
the documentation governing such Indebtedness.
Offering Circular
means the Confidential Offering Circular dated April 13, 2011, relating to
the sale of the Initial Securities.
Officer
means the Chairman of the Board, the President, any Vice President, the Treasurer or
the Secretary or any Assistant Secretary of the Company.
Officers Certificate
means a certificate signed by two Officers.
Opinion of Counsel
means a written opinion from legal counsel who is acceptable to the
Trustee. The counsel may be an employee of or counsel to the Company.
Other Second Lien Obligations
means other Indebtedness and related Obligations of the
Company and its Restricted Subsidiaries that are equally and ratably secured with the Securities
and designated by the Company as an Other Second Lien Obligation.
Permitted Asset Swap
means the substantially concurrent purchase and sale or exchange of
Additional Assets or a combination of Additional Assets and cash or cash equivalents;
provided
that any cash or cash equivalents received must be applied in accordance with
Section 4.06.
Permitted Factoring Program
means any and all agreements or facilities entered into by the
Company or any of its Subsidiaries for the purpose of factoring its or its
22
Subsidiaries receivables or payables for cash consideration, including on a delayed payment
basis.
Permitted Investment
means an Investment by the Company or any Restricted Subsidiary in:
(1) the Company, a Restricted Subsidiary or a Person that will, upon the making of
such Investment, become a Restricted Subsidiary;
provided
,
however
, that the
primary business of such Restricted Subsidiary is a Related Business;
(2) another Person, if as a result of such Investment, such other Person is merged or
consolidated with or into, or transfers or conveys all or substantially all of its assets
to, the Company or a Restricted Subsidiary;
provided
,
however
, that such
Persons primary business is a Related Business;
(3) cash and Temporary Cash Investments;
(4) receivables owing to the Company or any Restricted Subsidiary if created or
acquired in the ordinary course of business and payable or dischargeable in accordance with
customary trade terms;
provided
,
however
, that such trade terms may include
such concessionary trade terms as the Company or any such Restricted Subsidiary deems
reasonable under the circumstances;
(5) payroll, travel and similar advances to cover matters that are expected at the
time of such advances ultimately to be treated as expenses for accounting purposes and that
are made in the ordinary course of business;
(6) loans or advances to employees made in the ordinary course of business consistent
with past practices of the Company or such Restricted Subsidiary and not exceeding $2.0
million in the aggregate outstanding at any one time;
(7) stock, obligations or securities received in settlement of debts created in the
ordinary course of business and owing to the Company or any Restricted Subsidiary or in
satisfaction of judgments or settlements, compromises or resolutions of litigation,
arbitration or other disputes;
(8) any Person to the extent such Investment represents the non-cash portion of the
consideration received for (A) an Asset Disposition as permitted pursuant to Section 4.06 or
(B) a disposition of assets not constituting an Asset Disposition;
provided
,
however
, that such non-cash portion of the consideration received in an Asset
Disposition or a disposition of assets not constituting an Asset Disposition shall be
pledged as Collateral under the Security Documents to the extent the assets subject to such
Asset Disposition or a disposition of assets not constituting an Asset Disposition
constituted Collateral, with the Lien on such Collateral securing the Securities being of
the same priority with respect to the Securities as the Lien on the assets which were
disposed;
23
(9) any Person where such Investment was acquired by the Company or any of its
Restricted Subsidiaries (A) in exchange for any other Investment or accounts receivable
held by the Company or any such Restricted Subsidiary in connection with or as a result
of a bankruptcy, workout, reorganization or recapitalization of the issuer of such other
Investment or accounts receivable or (B) as a result of a foreclosure by the Company or any
of its Restricted Subsidiaries with respect to any secured Investment or other transfer of
title with respect to any secured Investment in default;
(10) any Person to the extent such Investments consist of prepaid expenses, negotiable
instruments held for collection and lease, utility and workers compensation, performance
and other similar deposits made in the ordinary course of business by the Company or any
Restricted Subsidiary;
(11) any Person to the extent such Investments consist of Hedging Obligations
otherwise permitted under Section 4.03;
(12) any Person to the extent such Investment exists on the Issue Date, and any
extension, modification or renewal of any such Investments existing on the Issue Date, but
only to the extent not involving additional advances, contributions or other Investments of
cash or other assets or other increases thereof (other than as a result of the accrual or
accretion of interest or original issue discount or the issuance of pay-in-kind securities),
in each case, pursuant to the terms of such Investment as in effect on the Issue Date;
(13) Persons to the extent such Investments, when taken together with all other
Investments made pursuant to this clause (13) and outstanding on the date such Investment is
made, do not exceed the greater of (A) $25.0 million and (B) 5% of Total Assets (with the
fair market value of each Investment being measured at the time made and without giving
effect to subsequent changes in value);
provided
,
however
, that if any
Investment pursuant to this clause (13) is made in any Person that is not a Restricted
Subsidiary at the date of the making of such Investment and such Person becomes a Restricted
Subsidiary after such date, such Investment shall thereafter be deemed to have been made
pursuant to clause (1) above and shall cease to have been made pursuant to this clause (13)
for so long as such Person continues to be a Restricted Subsidiary;
(14) Investments resulting from the acquisition of a Person that at the time of such
acquisition held instruments constituting Investments that were not acquired in
contemplation of the acquisition of such Person;
(15) any Investment in a Receivables Subsidiary or any Investment by a Receivables
Subsidiary in any other Person in connection with a Qualified Receivables Transaction or any
Investment under a Permitted Factoring Program, including Investments of funds held in
accounts permitted or required by the arrangements governing such Qualified Receivables
Transaction, Permitted Factoring Program or any related Indebtedness;
24
(16) Guarantees permitted under Section 4.03 and Guarantees in the ordinary course of
business of obligations (other than Indebtedness) of suppliers, customers or lessees of the
Company or any of its Restricted Subsidiaries;
(17) repurchases of the Securities (including Additional Securities);
(18) Investments consisting of purchases and acquisitions of inventory, supplies,
material or equipment;
(19) advances to customers or suppliers in the ordinary course of business that are,
in conformity with GAAP, recorded as accounts receivable, prepaid expenses or deposits on
the balance sheet of the Company or the Restricted Subsidiaries and endorsements for
collection or deposit arising in the ordinary course of business;
(20) Investments consisting of earnest money deposits required in connection with a
purchase agreement or letter of intent permitted by this Indenture; and
(21) endorsements of negotiable instruments and documents in the ordinary course of
business.
For purposes of this definition, in the event that a proposed Investment (or portion thereof)
meets the criteria of more than one of the categories of Permitted Investments described in clauses
(1) through (21) above, or is otherwise entitled to be Incurred or made pursuant to Section 4.04,
the Company will be entitled to classify (but not reclassify) such Investment (or portion thereof)
in one or more of such categories set forth above or under Section 4.04.
Permitted Liens
means, with respect to any Person:
(1) pledges or deposits by such Person under workers compensation laws, unemployment
insurance laws or similar legislation, or good faith deposits in connection with bids,
tenders, contracts (other than for the payment of Indebtedness) or leases to which such
Person is a party, or deposits to secure public or statutory obligations of such Person or
deposits of cash or U.S. government bonds to secure surety or appeal bonds to which such
Person is a party, or deposits as security for contested taxes or import duties or for the
payment of rent, in each case Incurred in the ordinary course of business;
(2) Liens imposed by law, such as carriers, warehousemens and mechanics Liens, in
each case for sums not yet due or being contested in good faith by appropriate proceedings
or other Liens arising out of judgments or awards against such Person with respect to which
such Person shall then be proceeding with an appeal or other proceedings for review and
Liens arising solely by virtue of any statutory or common law provision relating to bankers
Liens, rights of set-off or similar rights and remedies as to deposit accounts or other
funds maintained with a creditor depository institution;
provided
,
however
,
that (A) such deposit account is not a dedicated cash collateral account and is not subject
to restrictions against access by the Company in excess of those set forth by regulations
promulgated by the Federal Reserve Board and (B) such deposit account is not intended by the
Company or any Restricted Subsidiary to provide collateral to the depository institution;
25
(3) Liens for property taxes not yet subject to penalties for non-payment or which are
being contested in good faith by appropriate proceedings;
(4) Liens in favor of issuers of surety bonds or letters of credit issued pursuant to
the request of and for the account of such Person in the ordinary course of its business;
provided
,
however
, that such letters of credit do not constitute
Indebtedness;
(5) minor survey exceptions, minor encumbrances, easements or reservations of, or
rights of others for, licenses, rights-of-way, sewers, electric lines, telegraph and
telephone lines and other similar purposes, or zoning or other restrictions as to the use of
real property or Liens incidental to the conduct of the business of such Person or to the
ownership of its properties which were not Incurred in connection with Indebtedness and
which do not in the aggregate materially adversely affect the value of said properties or
materially impair their use in the operation of the business of such Person;
(6) Liens securing Indebtedness Incurred to finance all or any part of the purchase
price or cost of design, construction, installation, upgrade or improvement of property
(real or personal, movable or immovable), plant or equipment used or to be used in the
business of such Person;
provided
,
however
, that the Lien may not extend to
any other property owned by such Person or any of its Restricted Subsidiaries at the time
the Lien is Incurred (other than assets and property affixed or appurtenant thereto), and
the Indebtedness (other than any interest thereon) secured by the Lien may not be Incurred
more than 180 days after the latest of the acquisition, completion of design, construction,
installation, upgrade or improvement, or commencement of full operation of the property
subject to the Lien;
(7) Liens to secure Indebtedness Incurred under the provisions described in clause
(b)(1) under Section 4.03;
provided
,
however
, that the holder of such Lien
either is or agrees to become bound by the terms of the Intercreditor Agreement on the same
basis as the First Lien Lenders or is subject to an intercreditor agreement consistent with
the Intercreditor Agreement on substantially the same basis as the First Lien Lenders;
(8) Liens existing on the Issue Date (other than Liens securing Obligations under the
ABL Credit Facility);
(9) Liens on property or shares of Capital Stock of another Person at the time such
other Person becomes a Subsidiary of such Person;
provided
,
however
, that
the Liens may not extend to any other property owned by such Person or any of its Restricted
Subsidiaries (other than assets and property affixed or appurtenant thereto);
(10) Liens on property at the time such Person or any of its Subsidiaries acquires the
property, including any acquisition by means of a merger or consolidation with or into such
Person or a Subsidiary of such Person;
provided
,
however
, that such Liens
are not created or incurred in connection with, or in contemplation of, such acquisition;
provided
further
,
however
, that the Liens may not extend to any
other property owned by such Person or any of its Restricted Subsidiaries (other than assets
and property affixed or appurtenant thereto);
26
(11) Liens securing Indebtedness or other obligations of a Subsidiary of such Person
owing to such Person or a Restricted Subsidiary of such Person;
(12) Liens securing Hedging Obligations so long as such Hedging Obligations, are
permitted to be Incurred under this Indenture;
(13) Liens to secure any Refinancing (or successive Refinancings) as a whole, or in
part, of any Indebtedness secured by any Lien referred to in the foregoing clause (6), (8),
(9) or (10);
provided
,
however
, that (A) such new Lien shall be limited to
all or part of the same property and assets that secured or, under the written agreements
pursuant to which the original Lien arose, could secure the original Lien (plus improvements
and accessions to such property or proceeds or distributions thereof) and (B) the
Indebtedness secured by such Lien at such time is not increased to any amount greater than
the sum of (i) the outstanding principal amount or, if greater, committed amount of the
Indebtedness described under clause (6), (8), (9) or (10) at the time the original Lien
became a Permitted Lien and (ii) an amount necessary to pay any fees and expenses, including
premiums, related to such refinancing, refunding, extension, renewal or replacement;
(14) Liens on the assets of a Foreign Subsidiary securing Indebtedness of such Foreign
Subsidiary Incurred pursuant to Section 4.03(b)(13);
(15) Liens on accounts receivable and related assets of the type specified in the
definition of Qualified Receivables Transaction Incurred in connection with a Qualified
Receivables Transaction or a Permitted Factoring Program securing Indebtedness Incurred
under the provisions described in Section 4.03(b)(12);
(16) Liens on specific items of inventory or other goods and proceeds of any Person
securing such Persons obligations in respect of bankers acceptances issued or created for
the account of such Person to facilitate the purchase, shipment or storage of such inventory
or other goods;
(17) Liens imposed pursuant to licenses, sublicenses, leases and subleases (including
landlords Liens) granted in the ordinary course of business which do not materially
interfere with the ordinary conduct of the business of the Company or any of its Restricted
Subsidiaries;
(18) Liens arising from Uniform Commercial Code financing statement filings regarding
operating leases entered into by the Company and its Restricted Subsidiaries in the ordinary
course of business;
(19) Liens securing obligations owing to and held solely by the Company or any
Subsidiary Guarantor or Liens on assets of a Restricted Subsidiary that is not a Subsidiary
Guarantor securing obligations owing to and held solely by another Restricted Subsidiary
that is not a Subsidiary Guarantor;
(20) judgment Liens (where the judgment does not constitute an Event of Default), so
long as such Lien is adequately bonded and any appropriate legal proceedings which may have
been duly initiated for the review of such judgment shall
27
not have been finally terminated
or the period within which such proceedings may be initiated shall not have expired;
(21) Liens in favor of customs and revenue authorities arising as a matter of law to
secure payment of customs duties in connection with the importation of goods;
(22) Liens arising out of conditional sale, title retention, consignment or similar
arrangements for the sale of goods entered into by the Company or any of its Restricted
Subsidiaries in the ordinary course of business;
(23) Liens securing Indebtedness in an amount which, together with all other
Indebtedness secured by Liens Incurred pursuant to this clause (23), does not exceed $5.0
million outstanding at any one time;
(24) Liens Incurred to secure cash management services in the ordinary course of
business;
(25) Liens on assets pursuant to merger agreements, stock or asset purchase agreements
and similar agreements limiting the disposition of such assets pending the closing of the
transactions contemplated thereby;
(26) Liens on insurance policies and the proceeds thereof securing the financing of
the premiums with respect thereto;
(27) Liens on any cash earnest money deposits made by the Company or any Restricted
Subsidiary in connection with any letter of intent or purchase agreement;
(28) Liens on the Collateral securing the Securities, the Subsidiary Guaranties
thereof and other Obligations under this Indenture and in respect thereof and any
Obligations owing to the Trustee or the Second Lien Collateral Agent under this Indenture or
the Security Documents; and
(29) Liens on the Collateral securing Other Second Lien Obligations permitted to be
Incurred pursuant to Sections 4.03(a) or 4.03(b)(21);
provided
,
however
,
that (A) at the time of Incurrence and after giving pro forma effect thereto, the
Consolidated Secured Debt Ratio would be no greater than 2.75 to 1.0 and (B) the holder of
such Lien either is or agrees to become bound by the terms of the Intercreditor Agreement on
the same basis as the Holders or is subject to an intercreditor agreement consistent with
the Intercreditor Agreement on the same basis as the Holders.
Notwithstanding the foregoing, Permitted Liens will not include any Lien described in clause (6),
(9) or (10) above to the extent such Lien applies to any Additional Assets acquired directly or
indirectly from Net Available Cash pursuant to Section 4.06. For purposes of this definition, the
term Indebtedness shall be deemed to include interest on such Indebtedness.
Person
means any individual, corporation, partnership, limited liability company, joint
venture, association, joint-stock company, trust, unincorporated organization, government or any
agency or political subdivision thereof or any other entity.
28
Preferred Stock
means, as applied to the Capital Stock of any Person, Capital Stock of any
class or classes (however designated) which is preferred as to the payment of
dividends or distributions, or as to the distribution of assets upon any voluntary or
involuntary liquidation or dissolution of such Person, over shares of Capital Stock of any other
class of such Person.
principal
of a Security means the principal of the Security plus the premium, if any,
payable on the Security which is due or overdue or is to become due at the relevant time.
Pro Forma Cost Savings
means cost savings that the Company reasonably determines are
probable based upon specifically identified actions to be taken within six months of the date of an
acquisition (net of any reduction in EBITDA as a result of such cost savings that the Company
reasonably determines are probable);
provided
,
however
, that the Companys chief
financial officer and chief accounting officer shall have certified in an Officers Certificate
delivered to the Trustee the specific actions to be taken, the cost savings to be achieved from
each such action, that such savings have been determined to be probable and the amount, if any, of
any reduction in EBITDA in connection therewith. Where specifically provided by this Indenture,
the Company shall give pro forma effect to such Pro Forma Cost Savings as if they had been effected
as of the beginning of the applicable period.
Purchase Money Indebtedness
means Indebtedness (including Capital Lease Obligations) (1)
consisting of the deferred purchase price of property, conditional sale obligations, obligations
under any title retention agreement, other purchase money obligations and obligations in respect of
industrial revenue bonds, mortgage financing or similar Indebtedness and (2) Incurred to finance
all or any part of the purchase price or cost of design, construction, installation, upgrade or
improvement of property (real or personal, movable or immovable), plant or equipment used or to be
used in the business of the Company or any of its Restricted Subsidiaries (including any reasonably
related fees or expenses Incurred in connection with such acquisition, construction or
improvement), whether through the direct purchase of assets or the Capital Stock of any Person
owning such assets;
provided
,
however
, that any Lien arising in connection with any
such Indebtedness shall be limited to the specific asset being financed or, in the case of real
property or fixtures, including additions and improvements, the real property on which such asset
is attached;
provided
further
,
however
, that such Indebtedness is Incurred
within 180 days after the latest of the acquisition, completion of design, construction,
installation, upgrade or improvement, or commencement of full operation of the property subject to
the Lien.
Qualified Capital Stock
of a Person means Capital Stock of such Person other than
Disqualified Stock;
provided
,
however
, that such Capital Stock shall not be deemed
Qualified Capital Stock to the extent sold to a Subsidiary of such Person or financed, directly or
indirectly, using funds (1) borrowed from such Person or any Subsidiary of such Person or (2)
contributed, extended, Guaranteed or advanced by such Person or any Subsidiary of such Person
(including in respect of any employee stock ownership or benefit plan). Unless otherwise
specified, Qualified Capital Stock refers to Qualified Capital Stock of the Company.
Qualified Receivables Transaction
means any transaction or series of transactions that may
be entered into by the Company or any Restricted Subsidiary pursuant to
29
which the Company or any
Restricted Subsidiary may sell, convey or otherwise transfer to (1) a Receivables Subsidiary (in
the case of a transfer by the Company or any Restricted Subsidiary)
or (2) any other Person that is not an Affiliate of the Company, or may grant a security
interest in, any accounts receivable (whether now existing or arising in the future) of the Company
or any Restricted Subsidiary, and any assets related thereto, including all collateral securing
such accounts receivable, all contracts and all Guarantees or other obligations in respect of such
accounts receivable, proceeds of such accounts receivable and other assets that are customarily
transferred, or in respect of which security interests are customarily granted, in connection with
asset securitization transactions involving accounts receivable.
Receivables Subsidiary
means any Person formed for the purpose of engaging in a Qualified
Receivables Transaction or a Permitted Factoring Program with the Company or a Restricted
Subsidiary that engages in no activities other than in connection with the financing of accounts
receivable and that is designated by the Board of Directors (as provided below) as a Receivables
Subsidiary and (1) has no Indebtedness or other obligations (contingent or otherwise) that (a) are
Guaranteed by the Company or any Restricted Subsidiary, other than contingent liabilities pursuant
to Standard Securitization Undertakings, (b) are recourse to or obligate the Company or any
Restricted Subsidiary in any way other than pursuant to Standard Securitization Undertakings or (c)
subject any property or asset of the Company or any Restricted Subsidiary, directly or indirectly,
contingently or otherwise, to the satisfaction thereof, other than pursuant to Standard
Securitization Undertakings; (2) has no contract, agreement, arrangement or undertaking (except in
connection with a Qualified Receivables Transaction or a Permitted Factoring Program) with the
Company or its Restricted Subsidiaries other than on terms no less favorable to the Company or such
Restricted Subsidiaries than those that might be obtained at the time from Persons that are not
Affiliates of the Company, other than fees payable in the ordinary course of business in connection
with servicing accounts receivable; and (3) neither the Company nor any Restricted Subsidiary has
any obligation to maintain or preserve the Receivables Subsidiarys financial condition or cause
the Receivables Subsidiary to achieve certain levels of operating results.
Any such designation by the Board of Directors shall be evidenced to the Trustee by filing
with the Trustee a certified copy of the resolution of the Board of Directors giving effect to such
designation and an Officers Certificate certifying, to the best of such officers knowledge and
belief after consulting with counsel, that such designation complied with the foregoing conditions.
Refinance
means, in respect of any Indebtedness, to refinance, extend, renew, refund, repay,
prepay, purchase, redeem, defease or retire, or to issue other Indebtedness in exchange or
replacement for, such Indebtedness. Refinanced and Refinancing shall have correlative
meanings.
Refinancing Indebtedness
means Indebtedness that Refinances any Indebtedness of the Company
or any Restricted Subsidiary existing on the Issue Date or Incurred in compliance with this
Indenture, including Indebtedness that Refinances Refinancing Indebtedness;
provided
,
however
, that:
30
(1) (a) if the Stated Maturity of the Indebtedness being Refinanced is earlier than
the Stated Maturity of the Securities, the Refinancing Indebtedness has a Stated Maturity no
earlier than the Stated Maturity of the Indebtedness being Refinanced or (b) if the
Stated Maturity of the Indebtedness being Refinanced is later than the Stated Maturity
of the Securities, the Refinancing Indebtedness has a Stated Maturity at least 91 days later
than the Stated Maturity of the Securities;
(2) such Refinancing Indebtedness has an Average Life at the time such Refinancing
Indebtedness is Incurred that is equal to or greater than the Average Life of the
Indebtedness being Refinanced;
(3) such Refinancing Indebtedness has an aggregate principal amount (or if Incurred
with original issue discount, an aggregate issue price) that is equal to or less than the
aggregate principal amount (or if Incurred with original issue discount, the aggregate
accreted value) then outstanding (plus fees and expenses, including any premium and
defeasance costs) under the Indebtedness being Refinanced; and
(4) if the Indebtedness being Refinanced is subordinated in right of payment to the
Securities, such Refinancing Indebtedness is subordinated in right of payment to the
Securities at least to the same extent as the Indebtedness being Refinanced;
provided
further
,
however
, that Refinancing Indebtedness shall not include
(A) Indebtedness of a Subsidiary that Refinances Indebtedness of the Company or (B) Indebtedness of
the Company or a Restricted Subsidiary that Refinances Indebtedness of an Unrestricted Subsidiary.
Registration Rights Agreement
means the Registration Rights Agreement dated April 26, 2011
among the Company, the Subsidiary Guarantors and Credit Suisse Securities (USA) LLC.
Related Business
means any business in which the Company or any of the Restricted
Subsidiaries was engaged on the Issue Date and any business related, ancillary or complementary to
such business.
Restricted Payment
with respect to any Person means:
(1) the declaration or payment of any dividends or any other distributions of any sort
in respect of its Capital Stock (including any payment in connection with any merger or
consolidation involving such Person) or similar payment to the direct or indirect holders of
its Capital Stock (other than (A) dividends or distributions payable solely in its Capital
Stock (other than Disqualified Stock), (B) dividends or distributions payable solely to the
Company or a Restricted Subsidiary and (C) pro rata dividends or other distributions made by
a Subsidiary that is not a Wholly Owned Subsidiary to minority stockholders (or owners of an
equivalent interest in the case of a Subsidiary that is an entity other than a
corporation));
(2) the purchase, repurchase, redemption, defeasance or other acquisition or
retirement for value of any Capital Stock of the Company held by any Person (other than by a
Restricted Subsidiary) or of any Capital Stock of a Restricted Subsidiary held by any
31
Affiliate of the Company (other than by a Restricted Subsidiary), including in connection
with any merger or consolidation and including the exercise of any option to exchange
any Capital Stock (other than into Capital Stock of the Company that is not
Disqualified Stock);
(3) the purchase, repurchase, redemption, defeasance or other acquisition or
retirement for value of, in each case prior to scheduled maturity, scheduled repayment or
scheduled sinking fund payment, any Subordinated Obligations of the Company or any
Subsidiary Guarantor (other than (A) from the Company or a Restricted Subsidiary or (B) the
purchase, repurchase, redemption, defeasance or other acquisition or retirement of
Subordinated Obligations purchased in anticipation of satisfying a sinking fund obligation,
principal installment or final maturity, in each case due within one year of the date of
such purchase, repurchase, redemption, defeasance or other acquisition or retirement); or
(4) the making of any Investment (other than a Permitted Investment) in any Person.
Restricted Subsidiary
means any Subsidiary of the Company that is not an Unrestricted
Subsidiary.
Revolving Credit Facility
means any revolving credit facility contained in a Credit Facility
and any other facility or financing arrangement that provides for revolving Indebtedness that
Refinances, in whole or in part, any such revolving credit facility.
Sale/Leaseback Transaction
means an arrangement relating to property owned by the Company or
a Restricted Subsidiary on the Issue Date or thereafter acquired by the Company or a Restricted
Subsidiary whereby the Company or a Restricted Subsidiary transfers such property to a Person
(other than the Company or a Restricted Subsidiary) and the Company or a Restricted Subsidiary
leases it from such Person.
SEC
means the U.S. Securities and Exchange Commission.
Second Lien Collateral Agent
means U.S. Bank National Association, as second lien collateral
agent for the Trustee and the Holders, and any permitted successor thereto.
Second Lien Obligations
means all Indebtedness and other obligations with respect to the
Securities, this Indenture, the Subsidiary Guaranties thereof and the Security Documents.
Second-Priority Liens
means all Liens that secure the Second Lien Obligations.
Secured Indebtedness
means any Indebtedness of the Company or any of its Restricted
Subsidiaries secured by a Lien.
Securities Act
means the U.S. Securities Act of 1933, as amended.
32
Security Agreement
means the Security Agreement dated on or about the Issue Date among the
Second Lien Collateral Agent, the Company and each Subsidiary Guarantor
named therein, as such agreement may be amended, restated, supplemented or otherwise modified
from time to time.
Security Documents
means the security documents and all other security agreements, pledge
agreements, collateral agreements and any other security documents granting a security interest in
any assets of any Person to secure the Obligations under this Indenture, the Securities and the
Subsidiary Guaranties as each may be amended, restated, supplemented or otherwise modified from
time to time.
Senior Indebtedness
means with respect to any Person:
(1) Indebtedness of such Person, whether outstanding on the Issue Date or thereafter
Incurred; and
(2) all other Obligations of such Person (including interest accruing on or after the
filing of any petition in bankruptcy or for reorganization relating to such Person whether
or not post-filing interest is allowed in such proceeding) in respect of Indebtedness
described in clause (1) above,
unless, in the case of clauses (1) and (2), in the instrument creating or evidencing the same or
pursuant to which the same is outstanding it is provided that such Indebtedness or other
Obligations are subordinate in right of payment to the Securities or the Subsidiary Guaranty of
such Person, as the case may be;
provided
,
however
, that Senior Indebtedness shall
not include:
(A) any obligation of such Person to the Company or any Subsidiary;
(B) any liability for federal, state, local or other taxes owed or owing by such
Person;
(C) any accounts payable or other liability to trade creditors arising in the ordinary
course of business;
(D) any Indebtedness or other Obligation of such Person which is subordinate or junior
in any respect to any other Indebtedness or other Obligation of such Person; or
(E) that portion of any Indebtedness which at the time of Incurrence is Incurred in
violation of this Indenture.
Significant Subsidiary
means any Restricted Subsidiary that would be a Significant
Subsidiary of the Company within the meaning of Rule 1-02 under Regulation S-X promulgated by the
SEC.
Standard & Poors
means Standard & Poors, a division of The McGraw-Hill Companies, Inc.,
and any successor to its rating agency business.
33
Standard Securitization Undertakings
means all representations, warranties, covenants,
indemnities and performance undertakings entered into by the Company or any
Restricted Subsidiary which are customary in securitization transactions involving accounts
receivable.
Stated Maturity
means, with respect to any security, the date specified in such security as
the fixed date on which the final payment of principal of such security is due and payable,
including pursuant to any mandatory redemption provision (but excluding any provision providing for
the repurchase of such security at the option of the holder thereof upon the happening of any
contingency unless such contingency has occurred).
Subordinated Obligation
means, with respect to a Person, any Indebtedness of such Person
(whether outstanding on the Issue Date or thereafter Incurred) which is subordinate or junior in
right of payment to the Securities or a Subsidiary Guaranty of such Person, as the case may be,
pursuant to a written agreement to that effect.
Subsidiary
means, with respect to any Person, any corporation, association, partnership or
other business entity of which more than 50% of the total voting power of shares of Voting Stock is
at the time owned or controlled, directly or indirectly, by (1) such Person, (2) such Person and
one or more Subsidiaries of such Person or (3) one or more Subsidiaries of such Person.
Subsidiary Guarantor
means each Subsidiary of the Company that executes this Indenture as a
guarantor and each other Subsidiary of the Company that thereafter Guarantees the Securities
pursuant to the terms of this Indenture.
Subsidiary Guaranty
means a Guarantee by a Subsidiary Guarantor of the Companys obligations
with respect to the Securities.
Temporary Cash Investments
means any of the following:
(1) any investment in direct obligations of the United States of America or any agency
thereof or obligations guaranteed by the United States of America or any agency thereof;
(2) investments in demand and time deposit accounts, certificates of deposit and money
market deposits maturing within 180 days of the date of acquisition thereof issued by a bank
or trust company which is organized under the laws of the United States of America, any
State thereof or any foreign country recognized by the United States of America, and which
bank or trust company has capital, surplus and undivided profits aggregating in excess of
$50,000,000 (or the foreign currency equivalent thereof) and has outstanding debt which is
rated A (or such similar equivalent rating) or higher by at least one nationally
recognized statistical rating organization (as defined in Rule 436 under the Securities Act)
or any money-market fund sponsored by a registered broker dealer or mutual fund distributor;
34
(3) repurchase obligations with a term of not more than 30 days for underlying
securities of the types described in clause (1) above entered into with a bank meeting the
qualifications described in clause (2) above;
(4) investments in commercial paper, maturing not more than 180 days after the date of
acquisition, issued by a corporation (other than an Affiliate of the Company) organized and
in existence under the laws of the United States of America or any foreign country
recognized by the United States of America with a rating at the time as of which any
investment therein is made of P-1 (or higher) according to Moodys or A-1 (or higher)
according to Standard and Poors;
(5) investments in securities with maturities of one year or less from the date of
acquisition issued or fully guaranteed by any state, commonwealth or territory of the United
States of America, or by any political subdivision or taxing authority thereof, and rated at
least A by Standard & Poors or A by Moodys;
(6) investments in money market funds that invest at least 90% of their assets in
securities of the types described in clauses (1) through (5) above; and
(7) in the case of a Foreign Subsidiary, Foreign Cash Investments held by it from time
to time in the ordinary course of business.
Total Assets
as of any date of determination means the total consolidated assets as shown on
the most recent balance sheet of the Company and its Restricted Subsidiaries on a consolidated
basis.
Transactions
means the issuance of the Initial Securities, the repayment of all of the
outstanding Indebtedness under the Companys second lien term loan, third lien senior secured notes
due 2013 and senior notes due 2013 and the payment of all accrued interest thereon and related
redemption premiums and the fees and expenses in connection with the foregoing transactions, in
each case as described in the Offering Circular.
Treasury Rate
means, as of any redemption date, the yield to maturity as of such redemption
date of U.S. Treasury securities with a constant maturity (as compiled and published in the most
recent Federal Reserve Statistical Release H.15 (519) that has become publicly available at least
two Business Days prior to the redemption date (or, if such Statistical Release is no longer
published, any publicly available source of similar market data)) most nearly equal to the period
from the redemption date to April 15, 2014;
provided
,
however
, that if the period
from the redemption date to April 15, 2014, is less than one year, the weekly average yield on
actively traded U.S. Treasury securities adjusted to a constant maturity of one year will be used.
Trustee
means U.S. Bank National Association until a successor replaces it and, thereafter,
means the successor.
Trust Indenture Act
or
TIA
means the Trust Indenture Act of 1939 (15 U.S.C. §§
77aaa-77bbbb) as in effect on the Issue Date.
35
Trust Officer
means, when used with respect to the Trustee or Second Lien Collateral
Agent, any officer within the corporate trust department of the Trustee, including any vice
president, assistant vice president, assistant secretary, assistant treasurer, trust officer or any
other officer of the Trustee who customarily performs functions similar to those performed by the
Persons who at the time shall be such officers, respectively, or to whom any corporate trust matter
is referred because of such persons knowledge of and familiarity with the particular subject and
who shall have direct responsibility for the administration of this Indenture.
Uniform Commercial Code
means the New York Uniform Commercial Code as in effect from time to
time.
Unrestricted Subsidiary
means:
(1) any Subsidiary of the Company that at the time of determination shall be
designated an Unrestricted Subsidiary by the Board of Directors in the manner provided
below; and
(2) any Subsidiary of an Unrestricted Subsidiary.
The Board of Directors may designate any Subsidiary of the Company (including any newly acquired or
newly formed Subsidiary) to be an Unrestricted Subsidiary unless such Subsidiary or any of its
Subsidiaries owns any Capital Stock or Indebtedness of, or holds any Lien on any property of, the
Company or any other Subsidiary of the Company that is not a Subsidiary of the Subsidiary to be so
designated;
provided
,
however
, that either (A) the Subsidiary to be so designated
has total assets of $1,000 or less or (B) if such Subsidiary has assets greater than $1,000, such
designation would be permitted under Section 4.04. The Board of Directors may designate any
Unrestricted Subsidiary to be a Restricted Subsidiary;
provided
,
however
, that
immediately after giving effect to such designation (A) the Company could Incur $1.00 of additional
Indebtedness under Section 4.03(a) and (B) no Default shall have occurred and be continuing. Any
such designation by the Board of Directors shall be evidenced to the Trustee by promptly filing
with the Trustee a copy of the resolution of the Board of Directors giving effect to such
designation and an Officers Certificate certifying that such designation complied with the
foregoing provisions.
Unsecured Indebtedness
means Indebtedness that is not Secured Indebtedness.
U.S. Dollar Equivalent
means with respect to any monetary amount in a currency other than
U.S. dollars, at any time for determination thereof, the amount of U.S. dollars obtained by
converting such foreign currency involved in such computation into U.S. dollars at the spot rate
for the purchase of U.S. dollars with the applicable foreign currency as published in The Wall
Street Journal in the Exchange Rates column under the heading Currency Trading on the date two
Business Days prior to such determination.
Except as described in Section 4.03, whenever it is necessary to determine whether the Company
has complied with any covenant in this Indenture or a Default has occurred and an amount is
expressed in a currency other than U.S. dollars, such amount will be treated as the U.S. Dollar
Equivalent determined as of the date such amount is initially determined in such currency.
36
U.S. Government Obligations
means direct obligations (or certificates representing an
ownership interest in such obligations) of the United States of America (including any agency or
instrumentality thereof) for the payment of which the full faith and credit of the United States of
America is pledged and which are not callable at the issuers option.
Voting Stock
of a Person means all classes of Capital Stock of such Person then outstanding
and normally entitled (without regard to the occurrence of any contingency) to vote in the election
of directors, managers or trustees thereof.
Wholly Owned Subsidiary
means a Restricted Subsidiary all the Capital Stock of which (other
than directors qualifying shares) is owned by the Company or one or more other Wholly Owned
Subsidiaries.
37
SECTION 1.02.
Other Definitions.
|
|
|
|
|
|
|
Defined in
|
Term
|
|
Section
|
2011 Intercreditor Agreement
|
|
|
1.01
|
|
Affiliate Transaction
|
|
|
4.07
|
(a)
|
Appendix
|
|
|
2.01
|
|
Article 9 Collateral
|
|
|
11.02
|
|
Bankruptcy Law
|
|
|
6.01
|
|
Change of Control Offer
|
|
|
4.09
|
(b)
|
control
|
|
|
1.01
|
|
covenant defeasance option
|
|
|
8.01
|
(b)
|
Custodian
|
|
|
6.01
|
|
Depository
|
|
Appendix
|
disposition
|
|
|
1.01
|
|
Event of Default
|
|
|
6.01
|
|
Exchange Securities
|
|
Appendix
|
Extraordinary Losses
|
|
|
1.01
|
|
Guaranteed Obligations
|
|
|
10.01
|
|
Increased Amount
|
|
|
4.10
|
|
Initial Securities
|
|
Appendix
|
Junior Lien
|
|
|
4.10
|
|
legal defeasance option
|
|
|
8.01
|
(b)
|
Notice of Default
|
|
|
6.01
|
|
OECD
|
|
|
1.01
|
|
Offer
|
|
|
4.06
|
(b)
|
Offer Amount
|
|
|
4.06(c
|
)(2)
|
Offer Period
|
|
|
4.06(c
|
)(2)
|
Pari Passu Indebtedness
|
|
|
4.06(a)(3
|
)(C)
|
Paying Agent
|
|
|
2.03
|
|
Private Exchange Securities
|
|
Appendix
|
Purchase Date
|
|
|
4.06(c
|
)(1)
|
Receivables Fee and Expenses
|
|
|
1.01
|
|
Registrar
|
|
|
2.03
|
|
Securities
|
|
Preamble
|
Successor Company
|
|
|
5.01(a
|
)(1)
|
Termination Losses
|
|
|
1.01
|
|
SECTION 1.03.
Incorporation by Reference of Trust Indenture Act.
This Indenture is
subject to the mandatory provisions of the TIA which are incorporated by reference in and made a
part of this Indenture. The following TIA terms have the following meanings:
Commission means the SEC;
indenture securities means the Securities and the Subsidiary Guaranties;
indenture security holder means a Holder;
38
indenture to be qualified means this Indenture;
indenture trustee or institutional trustee means the Trustee; and
obligor on the indenture securities means the Company
,
each Subsidiary Guarantor and any
other obligor on the indenture securities.
All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by SEC rule have the meanings assigned to them by such
definitions.
SECTION 1.04.
Rules of Construction.
Unless the context otherwise requires:
(1) a term has the meaning assigned to it;
(2) an accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;
(3) or is not exclusive;
(4) including means including without limitation;
(5) words in the singular include the plural and words in the plural include the
singular;
(6) Unsecured Indebtedness shall not be deemed to be subordinate or junior to Secured
Indebtedness merely because it is unsecured;
(7) Senior Indebtedness shall not be deemed to be subordinate or junior to any other
Senior Indebtedness merely because it has a junior priority with respect to the same
collateral;
(8) the principal amount of any noninterest bearing or other discount security at any
date shall be the principal amount thereof that would be shown on a balance sheet of the
issuer dated such date prepared in accordance with GAAP;
(9) the principal amount of any Preferred Stock shall be (A) the maximum liquidation
value of such Preferred Stock or (B) the maximum mandatory redemption or mandatory
repurchase price with respect to such Preferred Stock, whichever is greater;
(10) all references to the date the Securities were originally issued shall refer to
the Issue Date, except as otherwise specified; and
(11) whenever in this Indenture there is mentioned, in any context, principal,
interest or any other amount payable under or with respect to any Securities, such mention
shall be deemed to include mention of the payment of additional interest, to the
39
extent that, in such context, additional interest is, was or would be payable in
respect thereof pursuant to Section 1 of the Securities.
Article 2
The Securities
SECTION 2.01.
Form and Dating.
Provisions relating to the Initial Securities, the
Private Exchange Securities and the Exchange Securities are set forth in the Rule 144A/Regulation S
Appendix attached hereto (the Appendix) which is hereby incorporated in, and expressly made part
of, this Indenture. The Initial Securities and the Trustees certificate of authentication shall
be substantially in the form of Exhibit 1 to the Appendix which is hereby incorporated in, and
expressly made a part of, this Indenture. The Exchange Securities, the Private Exchange Securities
and the Trustees certificate of authentication shall be substantially in the form of Exhibit A,
which is hereby incorporated in and expressly made a part of this Indenture. The Securities may
have notations, legends or endorsements required by law, stock exchange rule, agreements to which
the Company is subject, if any, or usage (provided that any such notation, legend or endorsement is
in a form acceptable to the Company). Each Security shall be dated the date of its authentication.
The terms of the Securities set forth in the Appendix and Exhibit A are part of the terms of this
Indenture.
SECTION 2.02.
Execution and Authentication.
An Officer shall sign the Securities for
the Company by manual or facsimile signature.
If an Officer whose signature is on a Security no longer holds that office at the time the
Trustee authenticates the Security, the Security shall be valid nevertheless.
A Security shall not be valid until an authorized signatory of the Trustee manually signs the
certificate of authentication on the Security. The signature shall be conclusive evidence that the
Security has been authenticated under this Indenture.
On the Issue Date, the Trustee shall authenticate and deliver $250.0 million of 7.875% Senior
Secured Notes Due 2019 and, at any time and from time to time thereafter, the Trustee shall
authenticate and deliver Securities for original issue in an aggregate principal amount specified
by the Company, in each case upon a written order of the Company signed by an Officer. Such order
shall specify the amount of the Securities to be authenticated and the date on which the original
issue of Securities is to be authenticated and, in the case of an issuance of Additional Securities
pursuant to Section 2.13 after the Issue Date, shall certify that such issuance is in compliance
with Sections 4.03 and 4.10. The aggregate principal amount of Securities outstanding at any time
is unlimited.
The Trustee may appoint an authenticating agent reasonably acceptable to the Company to
authenticate the Securities. Unless limited by the terms of such appointment, an authenticating
agent may authenticate Securities whenever the Trustee may do so. Each reference in this Indenture
to authentication by the Trustee includes authentication by such agent.
40
An authenticating agent has the same rights as any Registrar, Paying Agent or agent for service of notices and demands.
SECTION 2.03.
Registrar and Paying Agent.
The Company shall maintain an office or
agency (which may be the office of the Trustee or an affiliate of the Trustee, Registrar or
co-registrar) where Securities may be presented for registration of transfer or for exchange (the
Registrar) and an office or agency (which may be the office of the Trustee or an affiliate of the
Trustee, Registrar or co-registrar) where Securities may be presented for payment (the Paying
Agent). The Registrar shall keep a register of the Securities and of their transfer and exchange.
The Company may have one or more co-registrars and one or more additional paying agents. The term
Paying Agent includes any additional paying agent.
The Company shall enter into an appropriate agency agreement with any Registrar, Paying Agent
or co-registrar not a party to this Indenture, which shall incorporate the terms of the TIA. The
agreement shall implement the provisions of this Indenture that relate to such agent. The Company
shall notify the Trustee of the name and address of any such agent. If the Company fails to
maintain a Registrar or Paying Agent, the Trustee shall act as such and shall be entitled to
appropriate compensation therefor pursuant to Section 7.07. The Company or any Wholly Owned
Subsidiary incorporated or organized within the United States of America may act as Paying Agent,
Registrar, co-registrar or transfer agent.
The Company initially appoints the Trustee as Registrar and Paying Agent in connection with
the Securities.
SECTION 2.04.
Paying Agent To Hold Money in Trust.
Prior to each due date of the
principal and interest on any Security, the Company shall deposit with the Paying Agent a sum
sufficient to pay such principal and interest when so becoming due. The Company shall require each
Paying Agent (other than the Trustee) to agree in writing that the Paying Agent shall hold in trust
for the benefit of Securityholders or the Trustee all money held by the Paying Agent for the
payment of principal of or interest on the Securities and shall notify the Trustee of any default
by the Company in making any such payment. If the Company or a Subsidiary acts as Paying Agent, it
shall segregate the money held by it as Paying Agent and hold it as a separate trust fund. The
Company at any time may require a Paying Agent to pay all money held by it to the Trustee and to
account for any funds disbursed by the Paying Agent. Upon complying with this Section, the Paying
Agent shall have no further liability for the money delivered to the Trustee.
SECTION 2.05.
Securityholder Lists.
The Trustee shall preserve in as current a form
as is reasonably practicable the most recent list available to it of the names and addresses of
Securityholders. If the Trustee is not the Registrar, the Company shall furnish to the Trustee, in
writing at least five Business Days before each interest payment date and at such other times as
the Trustee may request in writing, a list in such form and as of such date as the Trustee may
reasonably require of the names and addresses of Securityholders.
SECTION 2.06.
Transfer and Exchange.
The Securities shall be issued in registered
form and shall be transferable only upon the surrender of a Security for registration of transfer.
When a Security is presented to the Registrar or a co-registrar with a request to register
41
a transfer, the Registrar shall register the transfer as requested if the requirements of this
Indenture and Section 8-401(a) of the Uniform Commercial Code are met. When Securities are
presented to the Registrar or a co-registrar with a request to exchange them for an equal principal
amount of Securities of other denominations, the Registrar shall make the exchange as
requested if the same requirements are met. The Registrar need not register the transfer of or
exchange any Securities selected for redemption (except, in the case of a Security to be redeemed
in part, the portion of the Security not to be redeemed) or any Securities for a period of 15 days
before a selection of Securities to be redeemed or 15 days before an interest payment date.
SECTION 2.07.
Replacement Securities.
If a mutilated Security is surrendered to the
Registrar or if the Holder of a Security claims that the Security has been lost, destroyed or
wrongfully taken, the Company shall issue and the Trustee shall authenticate a replacement Security
if the requirements of Section 8-405 of the Uniform Commercial Code are met and the Holder
satisfies any other reasonable requirements of the Trustee. If required by the Trustee or the
Company, such Holder shall furnish an indemnity bond that is sufficient in the judgment of the
Company and the Trustee to protect the Company, the Trustee, the Paying Agent, the Registrar and
any co-registrar from any loss which any of them may suffer if a Security is replaced. The Company
and the Trustee may charge the Holder for their expenses in replacing a Security.
Every replacement Security is an additional Obligation of the Company.
SECTION 2.08.
Outstanding Securities.
Securities outstanding at any time are all
Securities authenticated by the Trustee except for those canceled by it, those delivered to it for
cancellation and those described in this Section as not outstanding. A Security does not cease to
be outstanding because the Company or an Affiliate of the Company holds the Security.
If a Security is replaced pursuant to Section 2.07, it ceases to be outstanding unless the
Trustee and the Company receive proof satisfactory to them that the replaced Security is held by a
protected purchaser (as defined in Section 8-303 of the Uniform Commercial Code).
If the Paying Agent segregates and holds in trust, in accordance with this Indenture, on a
redemption date or maturity date money sufficient to pay all principal and interest payable on that
date with respect to the Securities (or portions thereof) to be redeemed or maturing, as the case
may be, then on and after that date such Securities (or portions thereof) cease to be outstanding
and interest on them ceases to accrue.
SECTION 2.09.
Temporary Securities.
Until definitive Securities are ready for
delivery, the Company may prepare and the Trustee shall authenticate temporary Securities.
Temporary Securities shall be substantially in the form of definitive Securities but may have
variations that the Company considers appropriate for temporary Securities. Without unreasonable
delay, the Company shall prepare and the Trustee shall authenticate definitive Securities and
deliver them in exchange for temporary Securities.
SECTION 2.10.
Cancellation.
The Company at any time may deliver Securities to the
Trustee for cancellation. The Registrar and the Paying Agent shall forward to the Trustee any
Securities surrendered to them for registration of transfer, exchange or payment.
42
The Trustee and no one else shall cancel and destroy (subject to the record retention requirements of the Exchange
Act) all Securities surrendered for registration of transfer, exchange, payment or cancellation and
deliver a certificate of such destruction to the Company
unless the Company directs the Trustee to deliver canceled Securities to the Company. The
Company may not issue new Securities to replace Securities it has redeemed, paid or delivered to
the Trustee for cancellation.
SECTION 2.11.
Defaulted Interest.
If the Company defaults in a payment of interest on
the Securities, the Company shall pay defaulted interest (plus interest on such defaulted interest
to the extent lawful) in any lawful manner. The Company may pay the defaulted interest to the
persons who are Securityholders on a subsequent special record date. The Company shall fix or
cause to be fixed any such special record date and payment date to the reasonable satisfaction of
the Trustee and shall promptly mail to each Securityholder a notice that states the special record
date, the payment date and the amount of defaulted interest to be paid.
SECTION 2.12.
CUSIP Numbers, ISINs, etc.
The Company in issuing the Securities may
use CUSIP numbers, ISINs and Common Code numbers (in each case if then generally in use) and,
if so, the Trustee shall use CUSIP numbers, ISINs and Common Code numbers in notices of
redemption as a convenience to Holders;
provided
,
however
, that any such notice may
state that no representation is made as to the correctness of such numbers either as printed on the
Securities or as contained in any notice of a redemption and that reliance may be placed only on
the other identification numbers printed on the Securities, and any such redemption shall not be
affected by any defect in or omission of such numbers. The Company shall advise the Trustee in
writing of any change in any CUSIP numbers, ISINs or Common Code numbers applicable to the
Securities.
SECTION 2.13.
Issuance of Additional Securities.
After the Issue Date, the Company
shall be entitled, subject to its compliance with Sections 4.03 and 4.10, to issue Additional
Securities under this Indenture, which Securities shall have identical terms as the Initial
Securities issued on the Issue Date, other than with respect to the date of issuance and issue
price. All the Securities issued under this Indenture shall be treated as a single class for all
purposes of this Indenture including waivers, amendments, redemptions and offers to purchase.
With respect to any Additional Securities, the Company shall set forth in a resolution of the
Board of Directors and an Officers Certificate, a copy of each which shall be delivered to the
Trustee, the following information:
(1) the aggregate principal amount of such Additional Securities to be authenticated
and delivered pursuant to this Indenture and the provision of Section 4.03 that the Company
is relying on to issue such Additional Securities;
(2) the issue price, the issue date and the CUSIP number of such Additional
Securities, if any;
provided
,
however
, that no Additional Securities may be
issued at a price that would cause such Additional Securities to have original issue
discount within the meaning of Section 1273 of the Code; and
43
(3) whether such Additional Securities shall be issued in the form of Initial
Securities as set forth in Exhibit 1 to the Appendix or shall be issued in the form of
Exchange Securities as set forth in Exhibit A.
Article 3
Redemption
SECTION 3.01.
Notices to Trustee.
If the Company elects to redeem Securities pursuant
to Section 5 of the Securities, it shall notify the Trustee in writing of the redemption date, the
principal amount of Securities to be redeemed and the section of the Securities pursuant to which
the redemption will occur.
The Company shall give each notice to the Trustee provided for in this Section at least 35
days before the redemption date unless the Trustee consents to a shorter period. Such notice shall
be accompanied by an Officers Certificate and an Opinion of Counsel from the Company to the effect
that such redemption will comply with the conditions herein.
SECTION 3.02.
Selection of Securities to Be Redeemed.
If fewer than all the
Securities are to be redeemed, the Trustee shall select the Securities to be redeemed pro rata to
the extent practicable. The Trustee shall make the selection from outstanding Securities not
previously called for redemption. The Trustee may select for redemption portions of the principal
of Securities that have denominations larger than $2,000. Securities and portions of them the
Trustee selects shall be in principal amounts of $2,000 or any greater integral multiple of $1,000
thereof. Provisions of this Indenture that apply to Securities called for redemption also apply to
portions of Securities called for redemption. The Trustee shall notify the Company promptly of the
Securities or portions of Securities to be redeemed.
SECTION 3.03.
Notice of Redemption.
At least 30 days but not more than 60 days before
a date for redemption of Securities, the Company shall mail a notice of redemption by first-class
mail to each Holder of Securities to be redeemed at such Holders registered address.
The notice shall identify the Securities to be redeemed and shall state:
(1) the redemption date;
(2) the redemption price;
(3) the name and address of the Paying Agent;
(4) that Securities called for redemption must be surrendered to the Paying Agent to
collect the redemption price;
(5) if fewer than all the outstanding Securities are to be redeemed, the
identification and principal amounts of the particular Securities to be redeemed;
44
(6) that, unless the Company defaults in making such redemption payment, interest on
Securities (or portion thereof) called for redemption ceases to accrue on and after the
redemption date;
(7) the CUSIP number, ISIN or Common Code number, if any, printed on the
Securities being redeemed; and
(8) that no representation is made as to the correctness or accuracy of the CUSIP
number, ISIN, or Common Code number, if any, listed in such notice or printed on the
Securities.
At the Companys request, the Trustee shall give the notice of redemption in the Companys
name and at the Companys expense. In such event, the Company shall provide the Trustee with the
information required by this Section.
SECTION 3.04.
Effect of Notice of Redemption.
Once notice of redemption is mailed,
Securities called for redemption become due and payable on the redemption date and at the
redemption price stated in the notice. Upon surrender to the Paying Agent, such Securities shall
be paid at the redemption price stated in the notice, plus accrued and unpaid interest to the
redemption date (subject to the right of Holders of record on the relevant record date to receive
interest due on the relevant interest payment date), and such Securities shall be canceled by the
Trustee. Failure to give notice or any defect in the notice to any Holder shall not affect the
validity of the notice to any other Holder.
SECTION 3.05.
Deposit of Redemption Price.
Prior to the redemption date, the Company
shall deposit with the Paying Agent (or, if the Company or a Subsidiary is the Paying Agent, shall
segregate and hold in trust) money sufficient to pay the redemption price of and accrued interest
on all Securities to be redeemed on that date other than Securities or portions of Securities
called for redemption which have been delivered by the Company to the Trustee for cancellation. The
Trustee or the Paying Agent shall promptly return to the Company any money deposited with the
Trustee or the Paying Agent by the Company in excess of the amounts necessary to pay the redemption
price for, and accrued interest on, all Securities to be redeemed.
If the Company complies with the provisions of the preceding paragraph, on and after the
redemption date, interest shall cease to accrue on the Securities or the portion of the Securities
called for redemption. If a Security is redeemed on or after an interest record date but on or
prior to the related interest payment date, then any accrued and unpaid interest shall be paid to
the Person in whose name such Security was registered at the close of business on such record date.
SECTION 3.06.
Securities Redeemed in Part.
Upon surrender of a Security that is
redeemed in part, the Company shall execute and the Trustee shall authenticate for the Holder (at
the Companys expense) a new Security equal in principal amount to the unredeemed portion of the
Security surrendered.
45
Article 4
Covenants
SECTION 4.01.
Payment of Securities.
The Company shall promptly pay the principal of
and interest on the Securities on the dates and in the manner provided in the
Securities and in this Indenture. Principal and interest shall be considered paid on the date
due if on such date the Trustee or the Paying Agent holds in accordance with this Indenture money
sufficient to pay all principal and interest then due.
The Company shall pay interest on overdue principal at the rate specified therefor in the
Securities, and it shall pay interest on overdue installments of interest at the same rate to the
extent lawful.
SECTION 4.02.
SEC Reports.
Whether or not the Company is subject to the reporting
requirements of Section 13 or 15(d) of the Exchange Act or otherwise reports on an annual and
quarterly basis on forms provided for such annual and quarterly reporting pursuant to rules and
regulations promulgated by the SEC, the Company shall file with the SEC (subject to the next
sentence) and provide the Trustee and Holders with such annual and other reports as are specified
in Sections 13 and 15(d) of the Exchange Act and applicable to a U.S. corporation subject to such
Sections, such reports to be so filed and provided at the times specified for the filings of such
reports under such Sections and containing all the information, audit reports and exhibits required
for such reports. If at any time, the Company is not subject to the periodic reporting
requirements of the Exchange Act for any reason, the Company will nevertheless continue filing the
reports specified in the preceding sentence with the SEC within the time periods required unless
the SEC will not accept such a filing. The Company agrees that it will not take any action for the
purpose of causing the SEC not to accept any such filings. If, notwithstanding the foregoing, the
SEC will not accept such filings for any reason, the Company will post the reports specified in the
preceding sentence on its website within the time periods that would apply if the Company were
required to file those reports with the SEC.
At any time that any of the Companys Subsidiaries are Unrestricted Subsidiaries and the
Companys Unrestricted Subsidiaries individually or collectively constitute a Significant
Subsidiary, then the quarterly and annual financial information required by the preceding paragraph
will include a reasonably detailed presentation, either on the face of the financial statements or
in the footnotes thereto, and in Managements Discussion and Analysis of Financial Condition and
Results of Operations of the financial condition and results of operations of the Company and its
Restricted Subsidiaries separate from the financial condition and results of operations of the
Unrestricted Subsidiaries of the Company.
In addition, the Company shall furnish to the Holders and to prospective investors, upon the
requests of such Holders, any information required to be delivered pursuant to Rule 144A(d)(4)
under the Securities Act so long as any Securities are not freely transferable under the Securities
Act. The Company also shall comply with the other provisions of TIA § 314(a).
46
SECTION 4.03.
Limitation on Indebtedness.
(a) The Company shall not, and shall not
permit any Restricted Subsidiary to, Incur, directly or indirectly, any Indebtedness;
provided
,
however
, that the Company and the Subsidiary Guarantors shall be entitled
to Incur Indebtedness if, on the date of such Incurrence and after giving effect thereto on a pro
forma basis, the Consolidated Coverage Ratio would have been at least 2.00 to 1.00.
(b) Notwithstanding the foregoing paragraph (a), the Company and the Restricted Subsidiaries
shall be entitled to Incur any or all of the following Indebtedness:
(1) Indebtedness Incurred by the Company and Restricted Subsidiaries under Credit
Facilities in an amount not to exceed (i) if, at the time of such Incurrence and after
giving pro forma effect thereto, the Consolidated Secured Debt Ratio is less than or equal
to 2.75 to 1.0, the greater of (u) $55.0 million and (v) 100% of the Borrowing Base or (ii)
if, at the time of such Incurrence and after giving pro forma effect thereto, the
Consolidated Secured Debt Ratio is greater than 2.75 to 1.0 and less than or equal to 3.5 to
1.0, the greater of (w) $55.0 million and (x) 75% of the Borrowing Base or (iii) if, at the
time of such Incurrence and after giving pro forma effect thereto, the Consolidated Secured
Debt Ratio is greater than 3.5 to 1.0, the greater of (y) $55.0 million and (z) 50% of the
Borrowing Base;
provided
,
however
, with respect to clauses (i)(v), (ii)(x)
and (iii)(z) above, at the time of such Incurrence and after giving pro forma effect
thereto, the Consolidated Coverage Ratio would have been at least 2.00 to 1.00; and
provided
further
,
however
, that the aggregate amount of all
Indebtedness that may be Incurred and outstanding under this clause (b)(1) shall be reduced
by the aggregate amount of all Indebtedness Incurred pursuant to Section 4.03(b)(12) and
then outstanding but in no event will the amount of Indebtedness permitted to be so Incurred
pursuant to this clause (b)(1) be reduced to less than $55.0 million;
(2) Indebtedness owed to and held by the Company or a Restricted Subsidiary;
provided
,
however
, that (A) any subsequent issuance or transfer of any
Capital Stock or any other event which results in any such Restricted Subsidiary ceasing to
be a Restricted Subsidiary or any subsequent transfer of such Indebtedness (other than to
the Company or a Restricted Subsidiary) shall be deemed, in each case, to constitute the
Incurrence of such Indebtedness by the obligor thereon, (B) if the Company is the obligor on
such Indebtedness, such Indebtedness is expressly subordinated to the prior payment in full
in cash of all obligations with respect to the Securities, and (C) if a Subsidiary Guarantor
is the obligor on such Indebtedness and the Company is not the payee, such Indebtedness is
expressly subordinated to the prior payment in full in cash of all obligations of such
Subsidiary Guarantor with respect to its Subsidiary Guaranty;
(3) Indebtedness represented by the Securities issued on the Issue Date (and the
related Subsidiary Guaranties) and any Exchange Securities and Private Exchange Securities,
if any, issued in exchange therefor (and the related Subsidiary Guaranties);
(4) Indebtedness outstanding on the Issue Date (other than Indebtedness described in
clause (1), (2) or (3) of this Section 4.03(b));
47
(5) Indebtedness of Persons Incurred and outstanding on or prior to the date on which
such Person became a Restricted Subsidiary or was acquired by, or merged into, the Company
or any Restricted Subsidiary in accordance with the terms of this Indenture (other than
Indebtedness Incurred in connection with, or to provide all or any portion of the funds or
credit support utilized to consummate, the transaction or series of related transactions
pursuant to which such Person became a Restricted Subsidiary or was acquired by, or merged
into, the Company or any Restricted Subsidiary);
provided
,
however
, that on the date such Person became a Restricted Subsidiary or the
date of such acquisition or merger, as applicable, and after giving pro forma effect
thereto, either (i) the Company would have been entitled to Incur at least $1.00 of
additional Indebtedness pursuant to Section 4.03(a) or (ii) the Consolidated Coverage Ratio
of the Company and its Restricted Subsidiaries would be greater than such Consolidated
Coverage Ratio immediately prior to the date such Person became a Restricted Subsidiary or
the date of such acquisition or merger, as applicable;
(6) Refinancing Indebtedness in respect of Indebtedness Incurred pursuant to Section
4.03(a) or pursuant to clause (3), (4) or (5) of this Section 4.03(b) or this clause (6);
provided
,
however
, that to the extent such Refinancing Indebtedness directly
or indirectly Refinances Indebtedness of a Restricted Subsidiary Incurred pursuant to clause
(5), such Refinancing Indebtedness shall be Incurred only by such Restricted Subsidiary;
(7) Hedging Obligations that are Incurred for bona fide hedging purposes that are
entered into in the ordinary course of business and not for speculative purposes;
(8) Obligations in respect of performance, bid, appeal and surety bonds and completion
guarantees provided by the Company or any Restricted Subsidiary in the ordinary course of
business;
(9) Indebtedness arising from the honoring by a bank or other financial institution of
a check, draft or similar instrument drawn against insufficient funds in the ordinary course
of business;
provided
,
however
, that such Indebtedness is extinguished
within five Business Days of its Incurrence;
(10) Indebtedness consisting of the Guarantee by the Company or any of the Subsidiary
Guarantors of Indebtedness of the Company or a Subsidiary Guarantor or a Foreign Subsidiary
(only to the extent such Indebtedness constitutes a Capitalized Lease Obligation in the case
of a Foreign Subsidiary) and Indebtedness consisting of the Guarantee by a Restricted
Subsidiary of Indebtedness of the Company, a Subsidiary Guarantor or a Foreign Subsidiary,
in each case that was permitted to be Incurred by another provision of this covenant;
provided
,
however
, that if the Indebtedness being Guaranteed is subordinated
to or pari passu with the Securities or a Subsidiary Guaranty, then the Guarantee must be
subordinated or pari passu, as applicable, to the same extent as the Indebtedness
Guaranteed;
(11) Purchase Money Indebtedness Incurred to finance the acquisition, design,
construction, installation, upgrade or improvement by the Company or a Restricted
48
Subsidiary of assets in the ordinary course of business, and any Refinancing Indebtedness Incurred to
Refinance such Indebtedness, in an aggregate principal amount which, when added together
with the amount of Indebtedness Incurred pursuant to this clause (11) and then outstanding,
does not exceed the greater of $15.0 million and 3% of Total Assets at the date of
determination;
(12) Indebtedness Incurred in a Qualified Receivables Transaction or in a Permitted
Factoring Program that, in each case, is not recourse to the Company or any
Restricted Subsidiary (except for Standard Securitization Undertakings);
provided
,
however
, that, immediately after giving effect to any such
Incurrence the aggregate principal amount of all Indebtedness Incurred pursuant to this
clause (12) and then outstanding does not exceed the aggregate principal amount of
Indebtedness permitted to be Incurred pursuant to clause (1) of this Section 4.03(b) less
the aggregate principal amount of Indebtedness Incurred pursuant to clause (1) of this
Section 4.03(b) and then outstanding;
(13) (A) Indebtedness of Foreign Subsidiaries Incurred for working capital purposes
and (B) other Indebtedness of Foreign Subsidiaries in an aggregate principal amount, which,
when taken together with all other Indebtedness then outstanding and Incurred pursuant to
this subclause (B), does not exceed the greater of (x) $25.0 million and (y) 10% of the
total consolidated book value of the assets of all Foreign Subsidiaries (including assets of
any Foreign Subsidiary to be acquired by a Foreign Subsidiary using the net proceeds from
such Indebtedness as all or part of the financing thereof);
(14) Indebtedness consisting of customary indemnification, adjustment of purchase
price, earn-out or similar obligations of the Company or any Restricted Subsidiary, in each
case Incurred in connection with the acquisition or disposition of any assets in accordance
with the terms of this Indenture;
provided
,
however
, that with respect to
any such disposition, the maximum aggregate liability in respect of all such Indebtedness
will at no time exceed the gross proceeds actually received by the Company and its
Restricted Subsidiaries in connection with such disposition;
(15) Indebtedness of the Company or any Restricted Subsidiary, to the extent the
proceeds of such Indebtedness are deposited and used to defease the Securities pursuant to
Section 8.01 or to discharge the Companys obligations under this Indenture pursuant to
Section 8.01;
(16) Indebtedness consisting of reimbursement obligations with respect to letters of
credit, bankers acceptances, workers compensation claims or self-insurance, or other
Indebtedness with respect to reimbursement-type obligations regarding workers compensation
claims, in each case, in the ordinary course of business and other than for an obligation
for money borrowed;
(17) contingent liabilities arising out of endorsements of checks and other negotiable
instruments for deposit or collection in the ordinary course of business;
49
(18) Indebtedness owed on a short-term basis of no longer than 30 days to banks and
other financial institutions Incurred in the ordinary course of business of Foreign
Subsidiaries with such banks and financial institutions that arises in connection with
ordinary banking arrangements to manage cash balances of the Foreign Subsidiaries;
(19) Indebtedness representing installment insurance premiums of the Company or any
Restricted Subsidiary owing to insurance companies in the ordinary course of business;
(20) Indebtedness of the Company or any of its Restricted Subsidiaries supported by a
letter of credit issued under the ABL Credit Facility in a principal amount not in excess of
the stated amount of such letter of credit; and
(21) Indebtedness of the Company or of any of the Subsidiary Guarantors in an
aggregate principal amount which, when taken together with all other Indebtedness of the
Company and its Restricted Subsidiaries Incurred under this clause (21) and outstanding on
the date of such Incurrence does not exceed $35.0 million.
(c) Notwithstanding the foregoing, neither the Company nor any Subsidiary Guarantor shall
Incur any Indebtedness pursuant to Section 4.03(b) if the proceeds thereof are used, directly or
indirectly, to Refinance any Subordinated Obligations of the Company or any Subsidiary Guarantor
unless such Indebtedness shall be subordinated to the Securities or to the applicable Subsidiary
Guaranty to at least the same extent as such Subordinated Obligations.
(d) Notwithstanding Section 4.03(a) or 4.03(b), the Company shall not, and shall not permit
any Subsidiary Guarantor to, directly or indirectly, Incur any Indebtedness that is subordinated or
junior in right of payment to any Indebtedness of the Company or such Subsidiary Guarantor, as the
case may be, unless such Indebtedness is expressly subordinated in right of payment to the
Securities or such Subsidiary Guarantors Guaranty to the extent and in the same manner as such
Indebtedness is subordinated to other Indebtedness of the Company or such Subsidiary Guarantor, as
the case may be.
(e) For purposes of determining compliance with this Section 4.03, (1) in the event that an
item of Indebtedness (or any portion thereof) meets the criteria of more than one of the types of
Indebtedness described in Section 4.03(b) or is entitled to be Incurred pursuant to Section
4.03(a), the Company, in its sole discretion, shall be permitted to classify and later reclassify
such item of Indebtedness (or any portion thereof) in any manner that complies with this Section
4.03 and shall only be required to include the amount and type of such Indebtedness in one of the
above clauses;
provided
,
however
, that (A) Indebtedness under the ABL Credit
Facility outstanding on the Issue Date, if any, will be deemed to have been Incurred on such date
under Section 4.03(b)(1) and (B) the Company will not be permitted to reclassify all or any portion
of any Indebtedness Incurred under Sections 4.03(b)(1) or (12); and (2) the Company shall be
entitled to divide and classify or reclassify (to the extent permitted by clause (1) of this
paragraph (e)) an item of Indebtedness in more than one of the types of Indebtedness described
herein.
50
(f) For purposes of determining compliance with any U.S. dollar denominated restriction on the
Incurrence of Indebtedness where the Indebtedness Incurred is denominated in a different currency,
the amount of such Indebtedness shall be the U.S. Dollar Equivalent determined on the date of the
Incurrence of such Indebtedness;
provided
,
however
, that if any such Indebtedness
denominated in a different currency is subject to a Currency Agreement with respect to U.S. dollars
covering all principal, premium, if any, and interest payable on such Indebtedness, the amount of
such Indebtedness expressed in U.S. dollars shall be as provided in such Currency Agreement. The
principal amount of any Refinancing Indebtedness Incurred in the same currency as the Indebtedness
being Refinanced shall be the U.S. Dollar Equivalent of the Indebtedness Refinanced, except to the
extent that (1) such U.S. Dollar Equivalent was
determined based on a Currency Agreement, in which case the Refinancing Indebtedness shall be
determined in accordance with the preceding sentence, and (2) the principal amount of the
Refinancing Indebtedness exceeds the principal amount of the Indebtedness being Refinanced, in
which case the U.S. Dollar Equivalent of such excess, as appropriate, shall be determined on the
date such Refinancing Indebtedness is Incurred.
SECTION 4.04.
Limitation on Restricted Payments.
(a) The Company shall not, and
shall not permit any Restricted Subsidiary to, directly or indirectly, make a Restricted Payment if
at the time the Company or such Restricted Subsidiary makes such Restricted Payment:
(1) a Default shall have occurred and be continuing (or would result therefrom);
(2) the Company is not entitled to Incur an additional $1.00 of Indebtedness under
Section 4.03(a); or
(3) the aggregate amount of such Restricted Payment and all other Restricted Payments
since the Issue Date would exceed the sum of (without duplication):
(A) 50% of the Consolidated Net Income accrued during the period (treated as one
accounting period) from October 1, 2010 to the end of the most recent fiscal quarter ending
prior to the date of such Restricted Payment for which financial statements are available
(or, in case such Consolidated Net Income shall be a deficit, minus 100% of such deficit);
plus
(B) 100% of the aggregate Net Cash Proceeds received by the Company from the issuance
or sale of its Qualified Capital Stock subsequent to the Issue Date and 100% of any cash
capital contribution in respect of its Qualified Capital Stock received by the Company from
its shareholders subsequent to the Issue Date;
plus
(C) the amount by which Indebtedness of the Company is reduced on the Companys balance
sheet upon the conversion or exchange subsequent to the Issue Date of any Indebtedness of
the Company for Qualified Capital Stock of the Company (less the amount of any cash, or the
fair value of any other property, distributed by the Company upon such conversion or
exchange);
provided
,
however
, that the foregoing amount shall not exceed the
Net Cash Proceeds received by the Company or any Restricted Subsidiary from the sale of such
Indebtedness (excluding Net Cash Proceeds
51
from sales to a Subsidiary of the Company or to an
employee stock ownership plan or to a trust established by the Company or any of its
Subsidiaries for the benefit of their employees);
plus
(D) an amount equal to the sum of (i) 100% of the aggregate net cash proceeds from
Investments (other than Permitted Investments) made by the Company or any Restricted
Subsidiary in any Person (other than the Company or any Restricted Subsidiaries) resulting
from repurchases, repayments or redemptions of such Investments by such Person, proceeds
realized on the sale of such Investment and proceeds representing the return of capital,
dividends or distributions, in each case received by the Company or any Restricted
Subsidiary, and (ii) to the extent such Person is an
Unrestricted Subsidiary, the portion (proportionate to the Companys equity interest in
such Subsidiary) of the fair market value of the net assets of such Unrestricted Subsidiary
at the time such Unrestricted Subsidiary is designated a Restricted Subsidiary.
(b) The provisions of Section 4.04(a) shall not prohibit:
(1) any Restricted Payment made out of the Net Cash Proceeds of the substantially
concurrent sale of, or made by exchange for, Qualified Capital Stock of the Company or a
substantially concurrent cash capital contribution received by the Company from its
shareholders in respect of its Qualified Capital Stock;
provided
,
however
,
that (A) such Restricted Payment shall be excluded in the calculation of the amount of
Restricted Payments and (B) the Net Cash Proceeds from such sale or such cash capital
contribution (to the extent so used for such Restricted Payment) shall be excluded from the
calculation of amounts under Section 4.04(a)(3)(B);
(2) any purchase, repurchase, redemption, defeasance or other acquisition or
retirement for value of Subordinated Obligations of the Company or a Subsidiary Guarantor
made by exchange for, or out of the proceeds of the substantially concurrent Incurrence of,
Indebtedness of such Person which is permitted to be Incurred pursuant to Section 4.03;
provided
,
however
, that such purchase, repurchase, redemption, defeasance or
other acquisition or retirement for value shall be excluded in the calculation of the amount
of Restricted Payments;
(3) the payment of any dividend or distribution or redemption of any Capital Stock or
Subordinated Obligation within 60 days after the date of declaration thereof or call for
redemption if, at such date of declaration or call for redemption, such payment or
redemption was permitted by the provisions of Section 4.04(a) (the declaration of such
payment will be deemed a Restricted Payment under Section 4.04(a) as of the date of
declaration and the payment itself will be deemed to have been paid on such date of
declaration and will not also be deemed a Restricted Payment under Section 4.04(a));
provided
,
however
, that any Restricted Payment made in reliance on this
clause (3) shall reduce the amount available for Restricted Payments pursuant to Section
4.04(a)(3) only once;
(4) so long as no Default has occurred and is continuing, the purchase, redemption or
other acquisition of shares of Capital Stock of the Company or any of its
52
Subsidiaries from employees, former employees, directors or former directors of the Company or any of its
Subsidiaries (or permitted transferees of such employees, former employees, directors or
former directors), pursuant to the terms of the agreements (including employment agreements)
or plans (or amendments thereto) approved by the Board of Directors under which such
individuals purchase or sell, or are granted the option to purchase or sell, shares of such
Capital Stock;
provided
,
however
, that the aggregate amount of such
Restricted Payments (excluding amounts representing cancellation of Indebtedness) shall not
exceed $3.5 million in any calendar year, except that any amount not so used in any calendar
year may be used in subsequent calendar years up to $7.5 million in any calendar year;
provided
further
,
however
, that the maximum amount in any calendar
year may be increased by an amount not to exceed an
amount equal to (A) the cash proceeds of key man life insurance policies received by
the Company and its Restricted Subsidiaries after the Issue Date, less any amounts
previously applied to the payment of Restricted Payments pursuant to this clause (4), plus
(B) the aggregate cash proceeds received from the Company during that calendar year from any
reissuance of Qualified Capital Stock by the Company to employees, officers and directors of
the Company and its Restricted Subsidiaries and previously applied to the payment of
Restricted Payments, plus (C) any cash proceeds paid to the Company since the Issue Date in
connection with the issuance or exercise of any management or employee Qualified Capital
Stock so acquired and previously applied to the payment of Restricted Payments;
provided
,
however
, that any proceeds described in clause (B) or (C) shall be
excluded in the calculation of the amounts under Section 4.04(a)(3)(B);
provided
further
,
however
, that such purchases, redemptions and other acquisitions
shall be excluded in the calculation of the amount of Restricted Payments;
(5) the declaration and payment of dividends on Disqualified Stock issued pursuant to
Section 4.03;
provided
,
however
, that, at the time of payment of such
dividend, no Default shall have occurred and be continuing (or result therefrom);
provided
further
,
however
, that such dividends shall be excluded in
the calculation of the amount of Restricted Payments;
(6) repurchases of Capital Stock deemed to occur (i) upon exercise of stock options or
stock warrants if such Capital Stock represents a portion of the exercise price of such
options or warrants or (ii) in connection with withholding or similar taxes payable by any
future, present or former employee, director or officer;
provided
,
however
,
that such Restricted Payments shall be excluded in the calculation of the amount of
Restricted Payments;
(7) cash payments in lieu of the issuance of fractional shares in connection with the
exercise of warrants, options or other securities convertible into or exchangeable for
Capital Stock of the Company;
provided
,
however
, that any such cash payment
shall not be for the purpose of evading the limitation of the covenant described under this
subheading (as determined in good faith by the Board of Directors);
provided
further
,
however
, that such payments shall be excluded in the calculation of
the amount of Restricted Payments;
53
(8) in the event of a Change of Control, and if no Default shall have occurred and be
continuing, the payment, purchase, redemption, defeasance or other acquisition or retirement
of Subordinated Obligations of the Company or any Subsidiary Guarantor, in each case, at a
purchase price not greater than 101% of the principal amount of such Subordinated
Obligations, plus any accrued and unpaid interest thereon;
provided
,
however
, that prior to such payment, purchase, redemption, defeasance or other
acquisition or retirement, the Company (or a third party to the extent permitted by this
Indenture) has made a Change of Control Offer with respect to the Securities as a result of
such Change of Control and has repurchased all Securities validly tendered and not withdrawn
in connection with such Change of Control Offer;
provided
further
,
however
, that such payments, purchases, redemptions, defeasances or other
acquisitions or retirements shall be included in the calculation of the amount of Restricted
Payments;
(9) payments of intercompany subordinated Indebtedness, the Incurrence of which was
permitted under Section 4.03(b)(2);
provided
,
however
, that no Default has
occurred and is continuing or would otherwise result therefrom;
provided
further
,
however
, that such payments shall be excluded in the calculation of
the amount of Restricted Payments;
(10) so long as no Default has occurred and is continuing or would be caused thereby,
the repurchase, redemption or other acquisition or retirement for value of Subordinated
Obligations with any excess Net Available Cash remaining after the consummation of an offer
to purchase Securities pursuant to Section 4.06;
provided
,
however
, that
such repurchase, redemption or other acquisition or retirement shall be excluded in the
calculation of the amount of Restricted Payments;
(11) the repurchase, redemption or other acquisition for value of Capital Stock of the
Company or any direct or indirect parent of the Company representing fractional shares of
such Capital Stock in connection with a merger, consolidation, amalgamation or other
combination involving the Company in an amount which, when taken together with all
Restricted Payments made pursuant to this clause (11) does not exceed $1.0 million;
provided
,
however
, that such repurchase, redemption or other acquisition
shall be excluded in the calculation of the amount of Restricted Payments;
(12) the distribution, as a dividend or otherwise, of Capital Stock or any assets of
any Unrestricted Subsidiary;
provided
,
however
, that such Restricted
Payments shall be excluded in the calculation of the amount of Restricted Payments;
(13) the repayment of all outstanding Indebtedness under the Companys 11%/13% third
lien senior secured notes due 2013 and 8% senior notes due 2013 in connection with the
Transactions and the payment of all accrued interest thereon and related redemption
premiums;
provided
,
however
, that such Restricted Payments shall be excluded
in the calculation of the amount of Restricted Payments; and
(14) other Restricted Payments in an amount which, when taken together with all
Restricted Payments made pursuant to this clause (14), does not exceed $10.0 million;
provided
,
however
, that (A) at the time of each such Restricted Payment, no
Default shall
54
have occurred and be continuing (or result therefrom) and (B) such Restricted
Payments shall be excluded in the calculation of the amount of Restricted Payments.
The amount of all Restricted Payments (other than cash) shall be the fair market value on the
date of the Restricted Payment of the asset(s) or securities proposed to be transferred or issued
to or by the Company or such Restricted Subsidiary, as the case may be, pursuant to the Restricted
Payment, as determined in good faith by the Board of Directors, if the fair market value is equal
to or exceeds $5.0 million, or by an Officer, if the fair market value is less than $5.0 million.
The fair market value of any cash Restricted Payment shall be its face amount.
For purposes of determining compliance with this Section 4.04, in the event that a proposed
Restricted Payment (or portion thereof) meets the criteria of more than one of the categories of
Restricted Payments described in clauses (1) through (14) of Section 4.04(b), or is
permitted pursuant to Section 4.04(a), the Company will be entitled to classify (but not
reclassify) such Restricted Payment (or portion thereof) on the date of its payment in any manner
that complies with this Section 4.04.
SECTION 4.05.
Limitation on Restrictions on Distributions from Restricted
Subsidiaries.
The Company shall not, and shall not permit any Restricted Subsidiary to, create
or otherwise cause or permit to exist or become effective any consensual encumbrance or restriction
on the ability of any Restricted Subsidiary to (a) pay dividends or make any other distributions on
its Capital Stock to the Company or a Restricted Subsidiary or pay any Indebtedness owed to the
Company, (b) make any loans or advances to the Company or (c) transfer any of its property or
assets to the Company, except:
(1) with respect to clauses (a), (b) and (c),
(A) (1) any encumbrance or restriction imposed pursuant to or required by an agreement
in effect at or entered into on the Issue Date (including pursuant to the ABL Credit
Facility) and (2) any encumbrance or restriction existing under, or otherwise required by or
imposed pursuant to, the Security Documents;
(B) any encumbrance or restriction with respect to a Person pursuant to an agreement
relating to any Indebtedness Incurred by such Person on or prior to the date on which such
Person became a Restricted Subsidiary or was acquired by, or merged into, the Company (other
than Indebtedness Incurred as consideration in, or to provide all or any portion of the
funds or credit support utilized to consummate, the transaction or series of related
transactions pursuant to which such Person became a Restricted Subsidiary or was acquired
by, or merged into, the Company) and outstanding on such date, which encumbrance or
restriction is not applicable to any Person, or the property or assets of any Person, other
than the Person and its Subsidiaries, or the property or assets of the Person and its
Subsidiaries, so acquired;
(C) any encumbrance or restriction with respect to a Restricted Subsidiary imposed
pursuant to an agreement entered into for the sale or disposition of all or substantially
all of the Capital Stock or assets of such Restricted Subsidiary pending the closing of such
sale or disposition;
55
(D) any encumbrance or restriction with respect to contractual requirements of a
Receivables Subsidiary in connection with a Qualified Receivables Transaction;
provided
that any such encumbrances or restrictions apply only to such Receivables
Subsidiary;
(E) restrictions on cash or other deposits imposed by customers, suppliers or landlords
under contracts entered into in the ordinary course of business;
(F) any encumbrance or restriction pursuant to any Purchase Money Indebtedness
permitted to be Incurred under Section 4.03(b)(11);
provided
,
however
, that
any such encumbrances or restrictions apply only to the assets the purchase of which is
being financed with such Purchase Money Indebtedness;
(G) provisions limiting the disposition or distribution of assets or property in joint
venture agreements, asset sale agreements, sale-leaseback agreements, stock sale agreements
and other similar agreements (including agreements entered into in connection with
Investments other than Permitted Investments) entered into in the ordinary course of
business, which limitation is applicable only to the assets that are the subject of such
agreements;
(H) any encumbrance or restriction contained in any Indebtedness Incurred by a Foreign
Subsidiary in accordance with this Indenture to the extent such encumbrance or restriction
applies only to the assets of such Foreign Subsidiary or any other Foreign Subsidiary;
(I) any encumbrance or restriction arising or existing by reason of applicable law,
rule, regulation or order;
(J) any encumbrance or restriction arising from customary provisions in Hedging
Obligations permitted under Section 4.03(b)(7);
(K) negative pledges and restrictions on Liens in favor of any holder of Indebtedness
permitted under this Indenture; and
(L) encumbrances and restrictions contained in indentures or debt instruments or other
debt arrangements Incurred or Preferred Stock issued by Subsidiary Guarantors in accordance
with Section 4.03 that are not more restrictive, taken as a whole and in the good faith
judgment of the Board of Directors, than those applicable to the Company in this Indenture
and the ABL Credit Facility on the Issue Date (which results in encumbrances or restrictions
comparable to those applicable to the Company at a Restricted Subsidiary level); and
(2) with respect to clause (c) only,
(A) any encumbrance or restriction consisting of customary nonassignment provisions in
leases or other agreements to the extent such provisions restrict the transfer of the
property or assets subject to such agreements; and
56
(B) any encumbrance or restriction contained in security agreements or mortgages
securing Indebtedness of a Restricted Subsidiary to the extent such encumbrance or
restriction restricts the transfer of the property subject to such security agreements or
mortgages; and
(3) any encumbrances or restrictions of the type referred to in clauses (a), (b) and
(c) above imposed by any amendments or refinancings of the contracts, instruments or
obligations referred to in paragraphs (1) and (2) above;
provided
,
however
,
that such amendments or refinancings are, in the good faith judgment of the Board of
Directors, no more restrictive with respect to such dividend and other restrictions taken as
a whole than those contained in such contracts, instruments or obligations prior to such
amendment or refinancing.
SECTION 4.06.
Limitation on Sales of Assets and Subsidiary Stock.
(a) The Company
shall not, and shall not permit any Restricted Subsidiary to, directly or indirectly, consummate
any Asset Disposition unless:
(1) the Company or such Restricted Subsidiary receives consideration at the time of
such Asset Disposition at least equal to the fair market value (including as to the value of
all non-cash consideration) of the shares and assets subject to such Asset Disposition, as
determined in good faith by the Board of Directors, if the fair market value is equal to or
exceeds $5.0 million, or by an Officer, if the fair market value is less than $5.0 million;
(2) except in the case of a Permitted Asset Swap, at least 75% of the consideration
therefor received by the Company or such Restricted Subsidiary is in the form of cash or
cash equivalents; and
(3) subject to the terms, conditions and provisions of the Intercreditor Agreement, an
amount equal to 100% of the Net Available Cash from such Asset Disposition is applied by the
Company (or such Restricted Subsidiary, as the case may be);
(A) to the extent the Company elects (or is required by the terms of any Indebtedness),
to prepay, repay, redeem or purchase (x) First Lien Obligations; (y) Other Second Lien
Obligations;
provided
,
however
, that the Company shall equally and ratably
(based on the aggregate principal amounts (or accreted value, as applicable)) reduce
Obligations under the Securities through open-market purchases (to the extent such purchases
are at or above 100% of the principal amount thereof) or by making an offer (in accordance
with the procedures set forth below) to all Holders to purchase their Securities at 100% of
the principal amount thereof, plus the amount of accrued but unpaid interest, if any, on the
amount of Securities that would otherwise be prepaid; or (z) Indebtedness (other than any
Disqualified Stock) of a Restricted Subsidiary that is not a Subsidiary Guarantor, other
than Indebtedness owed to the Company or another Restricted Subsidiary, in the case of each
of clauses (x), (y) and (z), within one year from the later of the date of such Asset
Disposition or the receipt of such Net Available Cash;
57
(B) to the extent the Company elects, to acquire Additional Assets within one year from
the later of the date of such Asset Disposition or the receipt of such Net Available Cash;
provided
,
however
, that to the extent that the assets disposed of in such
Asset Disposition were Collateral, such assets are pledged as Collateral under the Security
Documents with the Lien on such Collateral securing the Securities being of the same
priority with respect to the Securities as the Lien on the assets which were disposed;
provided
further,
however
, that up to $20.0 million of Net Available
Cash from such dispositions of Collateral may be used to acquire assets that will be owned
by a Foreign Subsidiary or Capital Stock of a Foreign Subsidiary that are not required to be
so pledged; and
(C) to the extent of the balance of such Net Available Cash after application in
accordance with clauses (A) and (B), to make an offer to (x) in the case of Net Available
Cash from the disposition of Collateral, all Holders, and if required by the terms of any
Other Second Lien Obligations, holders of such Other Second Lien Obligations and (y) in
the case of any other Net Available Cash, all Holders and all holders of other Indebtedness
that ranks pari passu in right of payment with the Securities containing provisions similar
to those set forth in this Indenture with respect to offers to purchase or redeem with the
proceeds of sales of assets (Pari Passu Indebtedness);
provided
,
however
, that in connection with any prepayment, repayment or purchase of
Indebtedness pursuant to clause (A) or (C) above, the Company or such Restricted Subsidiary shall
permanently retire such Indebtedness and shall cause the related loan commitment (if any) to be
permanently reduced in an amount equal to the principal amount so prepaid, repaid or purchased.
Notwithstanding the foregoing provisions of this Section 4.06, the Company and the Restricted
Subsidiaries shall not be required to apply any Net Available Cash in accordance with this Section
4.06(a) except to the extent that the aggregate Net Available Cash from all Asset Dispositions
which is not applied in accordance with this Section 4.06(a) exceeds $10.0 million. Pending
application of Net Available Cash pursuant to this Section 4.06(a), such Net Available Cash shall
be invested in Temporary Cash Investments or applied to temporarily reduce revolving credit
Indebtedness.
For the purposes of this Section 4.06(a), the following are deemed to be cash or cash
equivalents:
(i) the assumption or discharge of Indebtedness of the Company (other than Obligations in
respect of Disqualified Stock of the Company) or any Restricted Subsidiary (other than Obligations
in respect of Disqualified Stock or Preferred Stock of a Subsidiary Guarantor) and the release of
the Company or such Restricted Subsidiary from all liability on such Indebtedness in connection
with such Asset Disposition;
(ii) securities received by the Company or any Restricted Subsidiary from the transferee that
are converted within 120 days by the Company or such Restricted Subsidiary into cash, to the extent
of the cash received in that conversion; and
58
(iii) any Designated Non-cash Consideration received by the Company or any Restricted
Subsidiary in an Asset Disposition having an aggregate fair market value, taken together with all
other Designated Non-cash Consideration received pursuant to this clause (iii) (unless such
Designated Non-cash Consideration has been converted into cash, which shall be treated after such
conversion as Net Available Cash), not to exceed 2.5% of Total Assets at the time of the receipt of
such Designated Non-cash Consideration.
(b) In the event of an Asset Disposition that requires the purchase of Securities (and, if
applicable, any other Second Lien Obligations or Pari Passu Indebtedness of the Company) pursuant
to Section 4.06(a)(3)(C), the Company shall purchase Securities tendered pursuant to an offer by
the Company for the Securities (and, if applicable, such other Second Lien Obligations or Pari
Passu Indebtedness of the Company) (the Offer) at a purchase price of 100% of their principal
amount (or, in the event such other Second Lien Obligations or Pari Passu Indebtedness of the
Company was issued with significant original issue discount, 100% of
the accreted value thereof) without premium, plus accrued but unpaid interest, if any (or, in
respect of such other Second Lien Obligations or Pari Passu Indebtedness of the Company, such
lesser price, if any, as may be provided for by the terms of such Indebtedness) in accordance with
the procedures (including prorating in the event of oversubscription) set forth in Section 4.06(c).
If the aggregate purchase price of the securities tendered exceeds the Net Available Cash allotted
to their purchase, the Company shall select the securities to be purchased on a pro rata basis but
in round denominations, which in the case of the Securities will be denominations of $2,000
principal amount or any greater integral multiple of $1,000 thereof. The Company shall not be
required to make an Offer to purchase Securities (and, if applicable, other Second Lien Obligations
or Pari Passu Indebtedness of the Company) pursuant to this Section 4.06 if the Net Available Cash
available therefor is less than $10.0 million (which lesser amount shall be carried forward for
purposes of determining whether such an Offer is required with respect to the Net Available Cash
from any subsequent Asset Disposition). Upon completion of such an Offer, Net Available Cash shall
be deemed to be reduced by the aggregate amount of such Offer.
(c) (1) Promptly, and in any event within 30 days after the Company becomes obligated to make
an Offer, the Company shall deliver to the Trustee and send, by first-class mail to each Holder, a
written notice stating that the Holder may elect to have his Securities purchased by the Company
either in whole or in part (subject to prorating as described in Section 4.06(b) in the event the
Offer is oversubscribed) in denominations of $2,000 of principal amount or any greater integral
multiple of $1,000 thereof, at the applicable purchase price. The notice shall specify a purchase
date not less than 30 days nor more than 60 days after the date of such notice (the Purchase
Date) and shall contain such information concerning the business of the Company which the Company
in good faith believes will enable such Holders to make an informed decision (which at a minimum
will include (A) the most recently filed Annual Report on Form 10-K (including audited consolidated
financial statements) of the Company, the most recent subsequently filed Quarterly Report on Form
10-Q and any Current Report on Form 8-K of the Company filed subsequent to such Quarterly Report,
other than Current Reports describing Asset Dispositions otherwise described in the offering
materials (or corresponding successor reports), (B) a description of material developments in the
Companys business subsequent to the date of the latest of such Reports, and (C) if material,
appropriate pro forma financial
59
information) and all instructions and materials necessary to tender
Securities pursuant to the Offer, together with the information contained in clause (3).
(2) Not later than the date upon which written notice of an Offer is delivered to the Trustee
as provided above, the Company shall deliver to the Trustee an Officers Certificate as to (A) the
amount of the Offer (the Offer Amount), including information as to any other Second Lien
Obligations or Pari Passu Indebtedness included in the Offer, (B) the allocation of the Net
Available Cash from the Asset Dispositions pursuant to which such Offer is being made and (C) the
compliance of such allocation with the provisions of Section 4.06(a) and (b). On such date, the
Company shall also irrevocably deposit with the Trustee or with a Paying Agent (or, if the Company
is acting as its own Paying Agent, segregate and hold in trust) in Temporary Cash Investments,
maturing on the last day prior to the Purchase Date or on the Purchase Date if funds are
immediately available by open of business, an amount equal to the Offer Amount to be held for
payment in accordance with the provisions of this Section. If the Offer includes other Second Lien
Obligations or Pari Passu Indebtedness, the deposit described in the preceding sentence may be made
with any other paying agent pursuant to arrangements
satisfactory to the Trustee. Upon the expiration of the period for which the Offer remains open
(the Offer Period), the Company shall deliver to the Trustee for cancellation the Securities or
portions thereof which have been properly tendered to and are to be accepted by the Company. The
Trustee shall, on the Purchase Date, mail or deliver payment (or cause the delivery of payment) to
each tendering Holder in the amount of the purchase price. In the event that the aggregate
purchase price of the Securities delivered by the Company to the Trustee is less than the Offer
Amount applicable to the Securities, the Trustee shall deliver the excess to the Company
immediately after the expiration of the Offer Period.
(3) Holders electing to have a Security purchased shall be required to surrender the Security,
with an appropriate form duly completed, to the Company at the address specified in the notice at
least three Business Days prior to the Purchase Date. Holders shall be entitled to withdraw their
election if the Trustee or the Company receives not later than one Business Day prior to the
Purchase Date, a telex, facsimile transmission or letter setting forth the name of the Holder, the
principal amount of the Security which was delivered for purchase by the Holder and a statement
that such Holder is withdrawing his election to have such Security purchased. Holders whose
Securities are purchased only in part shall be issued new Securities equal in principal amount to
the unpurchased portion of the Securities surrendered.
(4) At the time the Company delivers Securities to the Trustee which are to be accepted for
purchase, the Company shall also deliver an Officers Certificate stating that such Securities are
to be accepted by the Company pursuant to and in accordance with the terms of this Section. A
Security shall be deemed to have been accepted for purchase at the time the Trustee, directly or
through an agent, mails or delivers payment therefor to the surrendering Holder.
(d) The Company shall comply, to the extent applicable, with the requirements of Section 14(e)
of the Exchange Act and any other securities laws or regulations in connection with the repurchase
of Securities pursuant to this Section 4.06. To the extent that the provisions of any securities
laws or regulations conflict with provisions of this Section 4.06, the Company shall comply with
the applicable securities laws and regulations and shall not be
60
deemed to have breached its
obligations under this Section 4.06 by virtue of its compliance with such securities laws or
regulations.
SECTION 4.07.
Limitation on Affiliate Transactions.
(a) The Company shall not, and
shall not permit any Restricted Subsidiary to, enter into or permit to exist any transaction
(including the purchase, sale, lease or exchange of any property, employee compensation
arrangements or the rendering of any service) with, or for the benefit of, any Affiliate of the
Company (an Affiliate Transaction) involving aggregate payments or consideration in excess of
$500,000 unless:
(1) the terms of the Affiliate Transaction are no less favorable to the Company or
such Restricted Subsidiary than those that could be obtained at the time of the Affiliate
Transaction in arms-length dealings with a Person who is not an Affiliate;
(2) if such Affiliate Transaction or series of related Affiliate Transactions involves
an aggregate amount in excess of $5.0 million, the terms of the Affiliate
Transaction or series of related Affiliate Transactions are set forth in writing and a
majority of the non-employee directors of the Company disinterested with respect to such
Affiliate Transaction or series of related Affiliate Transactions have determined in good
faith that the criteria set forth in clause (1) are satisfied and have approved the relevant
Affiliate Transaction or series of related Affiliate Transactions as evidenced by a
resolution of the Board of Directors; and
(3) if such Affiliate Transaction or series of related Affiliate Transactions involves
an aggregate amount in excess of $15.0 million, the Board of Directors shall also have
received a written opinion from an Independent Qualified Party to the effect that such
Affiliate Transaction or series of related Affiliate Transactions is fair, from a financial
standpoint, to the Company and its Restricted Subsidiaries or is not less favorable to the
Company and its Restricted Subsidiaries than could reasonably be expected to be obtained at
the time in an arms-length transaction with a Person who was not an Affiliate.
(b) The provisions of Section 4.07(a) shall not prohibit:
(1) transactions between or among the Company and/or its Restricted Subsidiaries;
(2) any Investment (other than a Permitted Investment) or other Restricted Payment, in
each case permitted to be made pursuant to Section 4.04 (but only to the extent included in
the calculation of the amount of Restricted Payments made pursuant to Section 4.04(a)(3));
(3) any issuance of securities, or other payments, awards or grants in cash,
securities or otherwise pursuant to, or the funding of, employment, severance or
compensation arrangements, stock options and stock ownership plans or other employee benefit
plans entered into in the ordinary course of business, in each case approved by the Board of
Directors;
61
(4) loans or advances to employees in the ordinary course of business in accordance
with the past practices of the Company or its Restricted Subsidiaries, but in any event not
to exceed $2.0 million in the aggregate outstanding at any one time;
(5) the payment of reasonable fees and the reimbursement of ordinary course expenses
to directors of the Company and its Restricted Subsidiaries who are not employees of the
Company or its Restricted Subsidiaries and any payments pursuant to indemnification
arrangements with directors and officers of the Company or its Restricted Subsidiaries;
(6) any transaction with the Company, a Restricted Subsidiary or joint venture or
similar entity which would constitute an Affiliate Transaction solely because the Company or
a Restricted Subsidiary owns an equity interest in or otherwise controls such Restricted
Subsidiary, joint venture or similar entity;
(7) the issuance or sale of any Capital Stock (other than Disqualified Stock) of the
Company to Affiliates of the Company and the granting of registration and other customary
rights in connection therewith or any contribution to the Capital Stock of the Company or
any Restricted Subsidiary;
(8) any agreement as in effect on the Issue Date and described in the Offering
Circular or any renewals or extensions of any such agreement (so long as such renewals or
extensions of any such agreement, taken as a whole, are not less favorable to the Company or
the Restricted Subsidiaries) and the transactions evidenced thereby;
(9) transactions with customers, clients, lessors, landlords, suppliers, contractors
or purchasers or sellers of goods or services, in each case in the ordinary course of
business and otherwise in compliance with the terms of this Indenture that are on terms no
less favorable than those that would have been obtained in a comparable transaction with an
unrelated party; and
(10) any Qualified Receivables Transaction and Permitted Factoring Program, and the
Incurrence of obligations and acquisitions of Permitted Investments and other rights or
assets in connection with a Qualified Receivables Transaction or a Permitted Factoring
Program.
SECTION 4.08.
Limitation on Line of Business.
The Company shall not, and shall not
permit any Restricted Subsidiary to, engage in any business other than a Related Business.
SECTION 4.09.
Change of Control.
(a) Upon the occurrence of a Change of Control,
each Holder shall have the right to require that the Company purchase such Holders Securities at a
purchase price in cash equal to 101% of the principal amount thereof on the date of purchase plus
accrued and unpaid interest, if any, to the date of purchase (subject to the right of Holders of
record on the relevant record date to receive interest due on the relevant interest payment date),
in accordance with the terms contemplated in Section 4.09(b).
62
(b) Within 30 days following any Change of Control, the Company shall mail a notice to each
Holder with a copy to the Trustee (the Change of Control Offer) stating:
(1) that a Change of Control has occurred and that such Holder has the right to
require the Company to purchase such Holders Securities at a purchase price in cash equal
to 101% of the principal amount thereof on the date of purchase, plus accrued and unpaid
interest, if any, to the date of purchase (subject to the right of Holders of record on the
relevant record date to receive interest on the relevant interest payment date);
(2) the circumstances and relevant facts regarding such Change of Control (including
information with respect to pro forma historical income, cash flow and capitalization, in
each case after giving effect to such Change of Control);
(3) the purchase date (which shall be no earlier than 30 days nor later than 60 days
from the date such notice is mailed); and
(4) the instructions, as determined by the Company, consistent with this Section 4.09,
that a Holder must follow in order to have its Securities purchased.
(c) Holders electing to have a Security purchased will be required to surrender the Security,
with an appropriate form duly completed, to the Company at the address specified in the notice at
least three Business Days prior to the purchase date. Holders will be entitled to withdraw their
election if the Trustee or the Company receives not later than one Business Day prior to the
purchase date, a telegram, telex, facsimile transmission or letter setting forth the name of the
Holder, the principal amount of the Security which was delivered for purchase by the Holder and a
statement that such Holder is withdrawing his election to have such Security purchased.
(d) On the purchase date, all Securities purchased by the Company under this Section shall be
delivered by the Company to the Trustee for cancellation, and the Company shall pay the purchase
price plus accrued and unpaid interest, if any, to the Holders entitled thereto.
(e) Notwithstanding the foregoing provisions of this Section 4.09, the Company shall not be
required to make a Change of Control Offer following a Change of Control if (i) a third party makes
the Change of Control Offer in the manner, at the times and otherwise in compliance with the
requirements set forth in this Section 4.09 applicable to a Change of Control Offer made by the
Company and purchases all Securities validly tendered and not withdrawn under such Change of
Control Offer or (ii) a notice of redemption has been given pursuant to Section 3.03 unless and
until there is a default on the payment of the applicable redemption price. A Change of Control
Offer may be made in advance of a Change of Control, conditioned on the consummation of the Change
of Control, if a definitive agreement is in effect for the Change of Control at the time of the
making of such Change of Control Offer.
(f) The Company shall comply, to the extent applicable, with the requirements of Section 14(e)
of the Exchange Act and any other securities laws or regulations in connection with the repurchase
of Securities pursuant to this Section 4.09. To the extent that the provisions of any securities
laws or regulations conflict with the provisions of this Section 4.09,
63
the Company shall comply
with the applicable securities laws and regulations and shall not be deemed to have breached its
obligations under this Section 4.09 by virtue of its compliance with such securities laws or
regulations.
SECTION 4.10.
Limitation on Liens.
The Company shall not, and shall not permit any
Restricted Subsidiary to, directly or indirectly, Incur or permit to exist any Lien on any asset or
property of the Company or such Restricted Subsidiary securing Indebtedness unless:
(i) in the case of any Lien securing any Indebtedness other than any First Lien
Obligation or Other Second Lien Obligation of the Company or any Subsidiary Guarantor (such
Lien, a Junior Lien), such Junior Lien is a Permitted Lien;
(ii) in the case of any Lien securing any First Lien Obligation of the Company or any
Subsidiary Guarantor, the Securities or the applicable Subsidiary Guaranty, as the
case may be, shall be granted a second-priority security interest (subject to Permitted
Liens) upon the assets or property constituting the Collateral for such First Lien
Obligations, except as set forth in the Security Documents; and
(iii) in the case of any Lien securing any Other Second Lien Obligations of the
Company or any Subsidiary Guarantor, the Securities or the applicable Subsidiary Guaranty,
as the case may be, shall be granted a second-priority security interest (subject to
Permitted Liens) upon the assets or property constituting the collateral for such Other
Second Lien Obligations;
provided
,
however
, that, in the case of each of clauses (ii) and (iii), the holder
of any Lien permitted to be Incurred pursuant to this paragraph shall become bound by the terms of
the Intercreditor Agreement or shall become subject to an intercreditor agreement consistent with
the Intercreditor Agreement (x) in the case of any Lien securing a First Lien Obligation, on
substantially the same basis as the First Priority Secured Parties and (y) in the case of any Lien
securing an Other Second Lien Obligation, on the same basis as the Holders.
Any Lien created for the benefit of the Holders pursuant to clause (i) of the preceding
paragraph (unless also granted pursuant to clause (ii) of the preceding paragraph) shall provide by
its terms that such Lien shall be automatically and unconditionally released and discharged upon
the release and discharge of the Lien that gave rise to the obligation to secure the Securities or
the applicable Subsidiary Guaranty under such clause (i).
For purposes of determining compliance with this Section 4.10, (A) a Lien securing an item of
Indebtedness need not be permitted solely by reference to one category of Permitted Liens described
in clauses (1) through (29) of the definition of Permitted Liens or pursuant to the first
paragraph of this Section 4.10 but may be permitted in part under any combination thereof and (B)
in the event that a Lien securing an item of Indebtedness, Disqualified Stock or Preferred Stock
(or any portion thereof) meets the criteria of one or more of the categories of Permitted Liens
described in clauses (1) through (29) of the definition of Permitted Liens or pursuant to the
first paragraph of this Section 4.10, the Company shall, in its sole discretion, classify or
reclassify, or later divide, classify or reclassify, such Lien securing
64
such item of Indebtedness
(or any portion thereof) in any manner that complies with this covenant and will only be required
to include the amount and type of such Lien or such item of Indebtedness secured by such Lien in
one of the clauses of the definition of Permitted Liens and such Lien securing such item of
Indebtedness will be treated as being Incurred or existing pursuant to only one of such clauses or
pursuant to the first paragraph of this Section 4.10.
With respect to any Lien securing Indebtedness that was permitted to secure such Indebtedness
at the time of the Incurrence of such Indebtedness, such Lien shall also be permitted to secure any
Increased Amount of such Indebtedness. The Increased Amount of any Indebtedness shall mean any
increase in the amount of such Indebtedness in connection with any accrual of interest or fees, the
accretion of accreted value, the amortization of original issue discount, the payment of interest
in the form of additional Indebtedness with the same terms or in the form of common stock of the
Company, the payment of dividends on Preferred Stock in the form of additional shares of Preferred
Stock of the same class, accretion of original issue discount or liquidation preference and
increases in the amount of Indebtedness outstanding solely
as a result of fluctuations in the exchange rate of currencies or increases in the value of
property securing Indebtedness described in clause (2) of the definition of Indebtedness.
SECTION 4.11.
Limitation on Sale/Leaseback Transactions.
The Company shall not, and
shall not permit any Restricted Subsidiary to, enter into any Sale/Leaseback Transaction with
respect to any property unless:
(a) the Company or such Restricted Subsidiary would be entitled to (1) Incur Indebtedness in
an amount equal to the Attributable Debt with respect to such Sale/Leaseback Transaction pursuant
to Section 4.03 and (2) create a Lien on such property securing such Attributable Debt without
equally and ratably securing the Securities pursuant to Section 4.10,
(b) the net proceeds received by the Company or any Restricted Subsidiary in connection with
such Sale/Leaseback Transaction are at least equal to the fair market value of such property (as
determined by the Board of Directors, if the fair market value is equal to or exceeds $5.0 million,
and by an Officer, if the fair market value is less than $5.0 million) and
(c) the Company applies the Net Available Cash from such transaction in compliance with
Section 4.06.
SECTION 4.12.
Future Guarantors.
The Company shall cause each domestic Restricted
Subsidiary that is not a Subsidiary Guarantor to, and each Foreign Subsidiary that enters into a
Guarantee of any Senior Indebtedness (other than a Foreign Subsidiary that Guarantees Senior
Indebtedness Incurred by another Foreign Subsidiary) to, in each case, within ten Business Days,
execute and deliver to the Trustee a Guaranty Agreement pursuant to which such Restricted
Subsidiary will Guarantee payment of the Securities on the same terms and conditions as those set
forth in this Indenture;
provided
that any such Restricted Subsidiary that constitutes an
Immaterial Subsidiary need not become a Subsidiary Guarantor until such time as it ceases to be an
Immaterial Subsidiary. Notwithstanding the foregoing, this covenant shall not apply to any
Receivables Subsidiary.
65
SECTION 4.13.
Compliance Certificate.
The Company shall deliver to the Trustee
within 120 days after the end of each fiscal year of the Company an Officers Certificate stating
that in the course of the performance by the signers of their duties as Officers of the Company
they would normally have knowledge of any Default and whether or not the signers know of any
Default that occurred during such period. If they do, the certificate shall describe the Default,
its status and what action the Company is taking or proposes to take with respect thereto. The
Company also shall comply with TIA § 314(a)(4).
SECTION 4.14.
Further Instruments and Acts.
Upon request of the Trustee, the Company
will execute and deliver such further instruments and do such further acts as may be reasonably
necessary or proper to carry out more effectively the purpose of this Indenture.
Article 5
Successor Company
SECTION 5.01.
When Company May Merge or Transfer Assets.
(a) The Company shall not consolidate with or merge with or into, or convey, transfer or
lease, in one transaction or a series of transactions, directly or indirectly, all or substantially
all its assets to, any Person, unless:
(1) the resulting, surviving or transferee Person (the Successor Company) shall be a
Person organized and existing under the laws of the United States of America, any State
thereof or the District of Columbia and the Successor Company (if not the Company) shall
expressly assume all the obligations of the Company under the Securities, this Indenture and
the Security Documents pursuant to supplemental indentures, Security Documents or other
documents and instruments delivered pursuant to this Indenture and the Security Documents;
(2) immediately after giving pro forma effect to such transaction (and treating any
Indebtedness which becomes an obligation of the Successor Company or any Subsidiary as a
result of such transaction as having been Incurred by such Successor Company or such
Subsidiary at the time of such transaction), no Default shall have occurred and be
continuing;
(3) immediately after giving
pro forma
effect to such transaction and any
related financing transactions (as if such transactions had occurred at the beginning of the
applicable four-quarter period), either (A) the Successor Company would be able to Incur an
additional $1.00 of Indebtedness pursuant to Section 4.03(a) or (B) the Consolidated
Coverage Ratio for the Successor Company would be equal to or greater than the Consolidated
Coverage Ratio immediately prior to such transaction;
(4) each Subsidiary Guarantor, unless it is the other party to the transactions
described above, in which case Section 5.01(b)(1) shall apply, shall have by supplemental
indentures, Security Documents or other documents and instruments delivered pursuant to this
Indenture and the Security Documents confirmed that its Subsidiary Guaranty
66
shall apply to the Successor Companys obligations under this Indenture, the
Securities, the Registration Rights Agreement and the Security Documents;
(5) the Company shall have delivered to the Trustee an Officers Certificate and an
Opinion of Counsel, each stating that such consolidation, merger or transfer and such
supplemental indentures, Security Documents and other required documents and instruments
comply with this Indenture; and
(6) the Company shall have delivered to the Trustee an Opinion of Counsel to the
effect that the Holders will not recognize income, gain or loss for federal income tax
purposes as a result of such transaction and will be subject to federal income tax on the
same amounts, in the same manner and at the same times as would have been the case if such
transaction had not occurred;
provided
,
however
, that clauses (2) and (3) will not be applicable to (A) a
Restricted Subsidiary consolidating with, merging into or transferring all or part of its
properties and assets to the Company (so long as no Capital Stock of the Company is distributed to
any Person) or (B) the Company merging with an Affiliate of the Company solely for the purpose and
with the sole effect of reincorporating the Company in another jurisdiction so long as the amount
of Indebtedness of the Company and its Restricted Subsidiaries is not increased thereby.
For purposes of this Section 5.01, the sale, lease, conveyance, assignment, transfer or other
disposition of all or substantially all of the properties and assets of one or more Subsidiaries of
the Company, which properties and assets, if held by the Company instead of such Subsidiaries,
would constitute all or substantially all of the properties and assets of the Company on a
consolidated basis, shall be deemed to be the transfer of all or substantially all of the
properties and assets of the Company.
The Successor Company shall be the successor to the Company and shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under this Indenture, and
the predecessor Company, except in the case of a lease, shall be released from the obligation to
pay the principal of and interest on the Securities.
(b) The Company shall not permit any Subsidiary Guarantor to consolidate with or merge with or
into, or convey, transfer or lease, in one transaction or a series of transactions, all or
substantially all of its assets to any Person (other than the Company or another Subsidiary
Guarantor) unless:
(1) except in the case of a Subsidiary Guarantor (A) that has been disposed of in its
entirety to another Person (other than to the Company or an Affiliate of the Company),
whether through a merger, consolidation or sale of Capital Stock or assets or (B) that, as a
result of the disposition of all or a portion of its Capital Stock, ceases to be a
Subsidiary, in both cases, if in connection therewith the Company provides an Officers
Certificate to the Trustee to the effect that the Company will comply with its obligations
under Section 4.06 in respect of such disposition, the resulting, surviving or transferee
Person (if not such Subsidiary) shall be a Person organized and existing under the laws of
the jurisdiction under which such Subsidiary was organized or under the laws of the United
67
States of America, or any State thereof or the District of Columbia, and such Person
shall expressly assume, by a Guaranty Agreement, all the obligations of such Subsidiary, if
any, under its Subsidiary Guaranty and the Security Documents;
(2) immediately after giving effect to such transaction or transactions on a pro forma
basis (and treating any Indebtedness which becomes an obligation of the resulting, surviving
or transferee Person as a result of such transaction as having been issued by such Person at
the time of such transaction), no Default shall have occurred and be continuing; and
(3) the Company delivers to the Trustee an Officers Certificate and an Opinion of
Counsel, each stating that such consolidation, merger or transfer and such Guaranty
Agreement and Security Documents, if any, comply with this Indenture.
Article 6
Defaults and Remedies
SECTION 6.01.
Events of Default.
An Event of Default occurs if:
(1) the Company defaults in any payment of interest on any Security when the same
becomes due and payable, and such default continues for a period of 30 days;
(2) the Company (A) defaults in the payment of the principal of any Security when the
same becomes due and payable at its Stated Maturity, upon optional redemption, upon
declaration of acceleration or otherwise, or (B) fails to purchase Securities when required
pursuant to this Indenture or the Securities;
(3) the Company fails to comply with Section 5.01;
(4) the Company fails to comply with (A) Section 4.03, 4.04, 4.05, 4.06, 4.07, 4.08,
4.09, 4.10, 4.11 or 4.12 (other than a failure to purchase Securities when required under
Section 4.06 or 4.09) and such failure continues for 30 days after the notice specified
below or (B) Section 4.02 and such failure continues for 60 days after the notice specified
below;
(5) the Company or any Subsidiary Guarantor fails to comply with any of its agreements
contained in the Securities, this Indenture (other than those referred to in clause (1),
(2), (3) or (4) above) or the Security Documents and such failure continues for 60 days
after the notice specified below;
(6) Indebtedness of the Company, any Subsidiary Guarantor or any Significant
Subsidiary is not paid within any applicable grace period after final maturity or is
accelerated by the holders thereof because of a default under any mortgage, indenture or
other instrument under which such Indebtedness is issued, secured or evidenced or the
payment of such is Guaranteed and the total amount of such Indebtedness unpaid or
accelerated exceeds $15.0 million, or its foreign currency equivalent at the time;
68
(7) the Company, any Subsidiary Guarantor or any Significant Subsidiary pursuant to or
within the meaning of any Bankruptcy Law:
(A) commences a voluntary case;
(B) consents to the entry of an order for relief against it in an involuntary case;
(C) consents to the appointment of a Custodian of it or for any substantial part of its
property; or
(D) makes a general assignment for the benefit of its creditors;
or takes any comparable action under any foreign laws relating to insolvency;
(8) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:
(A) is for relief against the Company, any Subsidiary Guarantor or any Significant
Subsidiary in an involuntary case;
(B) appoints a Custodian of the Company, any Subsidiary Guarantor or any Significant
Subsidiary or for any substantial part of its property; or
(C) orders the winding up or liquidation of the Company, any Subsidiary Guarantor or
any Significant Subsidiary;
or any similar relief is granted under any foreign laws and the order or decree remains
unstayed and in effect for 60 days;
(9) any judgment or decree for the payment of money in excess of $15.0 million or its
foreign currency equivalent at the time is entered against the Company, any Subsidiary
Guarantor or any Significant Subsidiary, remains outstanding for a period of 60 consecutive
days following the entry of such judgment or decree and is not discharged, waived or the
execution thereof stayed;
(10) any Subsidiary Guaranty ceases to be in full force and effect (other than in
accordance with the terms of such Subsidiary Guaranty) or any Subsidiary Guarantor denies or
disaffirms its obligations under its Subsidiary Guaranty; or
(11) with respect to any Collateral having a fair market value in excess of $5.0
million, individually or in the aggregate, at any time (a) the security interest under any
Security Document, at any time, ceases to be in full force and effect for any reason other
than in accordance with the terms of this Indenture, the Security Documents and the
Intercreditor Agreement, (b) any security interest created thereunder or under this
Indenture is declared invalid or unenforceable by a court of competent jurisdiction or (c)
the Company or any Subsidiary Guarantor asserts, denies or disaffirms that any security
interest in any Collateral is invalid or unenforceable.
69
The foregoing will constitute Events of Default whatever the reason for any such Event of
Default and whether it is voluntary or involuntary or is effected by operation of law or pursuant
to any judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body.
The term Bankruptcy Law means Title 11, United States Code, or any similar federal or state
law for the relief of debtors. The term Custodian means any receiver, trustee, assignee,
liquidator, custodian or similar official under any Bankruptcy Law.
A Default under clauses (4) or (5) is not an Event of Default until the Trustee or the Holders
of at least 25% in principal amount of the outstanding Securities notify the Company of the Default
and the Company does not cure such Default within the time specified after receipt of such notice.
Such notice must specify the Default, demand that it be remedied and state that such notice is a
Notice of Default. Any Default or Event of Default for the failure to deliver any report within
the time periods prescribed in Section 4.02 or to deliver any notice or certificate pursuant to any
other provision of this Indenture shall be deemed to be cured upon the subsequent delivery of any
such report, notice or certificate, even though such delivery is not within the prescribed period
specified.
The Company shall deliver to the Trustee, within 30 days after the occurrence thereof, written
notice in the form of an Officers Certificate of any Event of Default under clause (3), (6), (7),
(8), (10) or (11) and any event which with the giving of notice or the lapse of time would become
an Event of Default under clause (4), (5) or (9), its status and what action the Company is taking
or proposes to take with respect thereto.
SECTION 6.02.
Acceleration.
If an Event of Default (other than an Event of Default
specified in Section 6.01(7) or (8) with respect to the Company) occurs and is continuing, the
Trustee by notice to the Company, or the Holders of at least 25% in principal amount of the
Securities by notice to the Company and the Trustee, may declare the principal of and accrued but
unpaid interest on all the Securities to be due and payable. Upon such a declaration, such
principal and interest shall be due and payable immediately. If an Event of Default specified in
Section 6.01(7) or (8) with respect to the Company occurs, the principal of and interest on all the
Securities shall ipso facto become and be immediately due and payable without any declaration or
other act on the part of the Trustee or any Securityholders. The Holders of a majority in
principal amount of the Securities by notice to the Trustee may rescind an acceleration and its
consequences if the rescission would not conflict with any judgment or decree and if all existing
Events of Default have been cured or waived except nonpayment of principal or interest that has
become due solely because of acceleration. No such rescission shall affect any subsequent Default
or impair any right consequent thereto.
In the event of a declaration of acceleration of the Securities because an Event of Default
described in Section 6.01(6) has occurred and is continuing, the declaration of acceleration of the
Securities shall be automatically annulled if the Default triggering such Event of Default pursuant
to Section 6.01(6) shall be remedied or cured by the Company or a Restricted Subsidiary or waived
by the holders of the relevant Indebtedness within 20 days after the declaration of acceleration
with respect thereto and if (1) the annulment of the acceleration of the Securities would not
conflict with any judgment or decree of a court of competent
70
jurisdiction and (2) all existing Events of Default, except nonpayment of principal, premium
or interest on the Securities that became due solely because of the acceleration of the Securities,
have been cured or waived.
SECTION 6.03.
Other Remedies.
If an Event of Default occurs and is continuing, the
Trustee may pursue any available remedy to collect the payment of principal of or interest on the
Securities or to enforce the performance of any provision of the Securities, this Indenture or the
Security Documents.
The Trustee may maintain a proceeding even if it does not possess any of the Securities or
does not produce any of them in the proceeding. A delay or omission by the Trustee or any
Securityholder in exercising any right or remedy accruing upon an Event of Default shall not impair
the right or remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy
is exclusive of any other remedy. All available remedies are cumulative.
SECTION 6.04.
Waiver of Past Defaults.
The Holders of a majority in principal amount
of the Securities by notice to the Trustee may waive an existing Default and its consequences
except (a) a Default in the payment of the principal of or interest on a Security, (b) a Default
arising from the failure to redeem or purchase any Security when required pursuant to this
Indenture or (c) a Default in respect of a provision that under Section 9.02 cannot be amended
without the consent of each Securityholder affected. When a Default is waived, it is deemed cured,
but no such waiver shall extend to any subsequent or other Default or impair any consequent right.
SECTION 6.05.
Control by Majority.
The Holders of a majority in principal amount of
the Securities may direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee or of exercising any trust or power conferred on the Trustee. However,
the Trustee may refuse to follow any direction that conflicts with law or this Indenture or,
subject to Section 7.01, that the Trustee determines is unduly prejudicial to the rights of other
Securityholders or would involve the Trustee in personal liability;
provided
,
however
, that the Trustee may take any other action deemed proper by the Trustee that is
not inconsistent with such direction. Prior to taking any action hereunder, the Trustee shall be
entitled to indemnification satisfactory to it in its sole discretion against all losses and
expenses caused by taking or not taking such action.
SECTION 6.06.
Limitation on Suits.
Except to enforce the right to receive payment of
principal, premium (if any) or interest when due, no Securityholder may pursue any remedy with
respect to this Indenture or the Securities unless:
(1) the Holder gives to the Trustee written notice stating that an Event of Default is
continuing;
(2) the Holders of at least 25% in principal amount of the outstanding Securities make
a written request to the Trustee to pursue the remedy;
(3) such Holder or Holders offer to the Trustee reasonable security or indemnity
against any loss, liability or expense;
71
(4) the Trustee does not comply with the request within 60 days after receipt of the
request and the offer of security or indemnity satisfactory to it; and
(5) the Holders of a majority in principal amount of the outstanding Securities do not
give the Trustee a direction inconsistent with the request during such 60-day period.
A Securityholder may not use this Indenture to prejudice the rights of another Securityholder
or to obtain a preference or priority over another Securityholder. In the event that the
Definitive Securities are not issued to any beneficial owner promptly after the Registrar has
received a request from the Holder of a Global Security to issue such Definitive Securities to such
beneficial owner or its nominee, the Company expressly agrees and acknowledges, with respect to the
right of any Holder to pursue a remedy pursuant to this Indenture, the right of such beneficial
holder of Securities to pursue such remedy with respect to the portion of the Global Security that
represents such beneficial holders Securities as if such Definitive Securities had been issued.
SECTION 6.07.
Rights of Holders to Receive Payment.
Notwithstanding any other
provision of this Indenture, the right of any Holder to receive payment of principal of and
interest on the Securities held by such Holder, on or after the respective due dates expressed in
the Securities, or to bring suit for the enforcement of any such payment on or after such
respective dates, shall not be impaired or affected without the consent of such Holder.
SECTION 6.08.
Collection Suit by Trustee.
If an Event of Default specified in Section
6.01(1) or (2) occurs and is continuing, the Trustee may recover judgment in its own name and as
trustee of an express trust against the Company for the whole amount then due and owing (together
with interest on any unpaid interest to the extent lawful) and the amounts provided for in Section
7.07.
SECTION 6.09.
Trustee May File Proofs of Claim.
The Trustee may file such proofs of
claim and other papers or documents as may be necessary or advisable in order to have the claims of
the Trustee and the Securityholders allowed in any judicial proceedings relative to the Company,
its creditors or its property and, unless prohibited by law or applicable regulations, may vote on
behalf of the Holders in any election of a trustee in bankruptcy or other Person performing similar
functions, and any Custodian in any such judicial proceeding is hereby authorized by each Holder to
make payments to the Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and its counsel, and
any other amounts due the Trustee under Section 7.07.
SECTION 6.10.
Priorities.
Subject to the provisions of the Intercreditor Agreement,
if the Trustee collects any money or property pursuant to this Article 6, it shall pay out the
money or property in the following order:
FIRST: to the Trustee for amounts due under Section 7.07;
72
SECOND: to Securityholders for amounts due and unpaid on the Securities for principal
and interest, ratably, without preference or priority of any kind, according to the amounts
due and payable on the Securities for principal and interest, respectively; and
THIRD: to the Company.
The Trustee may fix a record date and payment date for any payment to Securityholders pursuant
to this Section.
SECTION 6.11.
Undertaking for Costs.
In any suit for the enforcement of any right or
remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by
it as Trustee, a court in its discretion may require the filing by any party litigant in the suit
of an undertaking to pay the costs of the suit, and the court in its discretion may assess
reasonable costs, including reasonable attorneys fees, against any party litigant in the suit,
having due regard to the merits and good faith of the claims or defenses made by the party
litigant. This Section does not apply to a suit by the Trustee, a suit by a Holder pursuant to
Section 6.07 or a suit by Holders of more than 10% in aggregate principal amount of the Securities.
SECTION 6.12.
Waiver of Stay or Extension Laws.
The Company (to the extent it may
lawfully do so) shall not at any time insist upon, or plead, or in any manner whatsoever claim or
take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time
hereafter in force, which may affect the covenants or the performance of this Indenture; and the
Company (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage
of any such law, and shall not hinder, delay or impede the execution of any power herein granted to
the Trustee, but shall suffer and permit the execution of every such power as though no such law
had been enacted.
Article 7
Trustee
SECTION 7.01.
Duties of Trustee.
(a) If an Event of Default has occurred and is
continuing, the Trustee shall exercise the rights and powers vested in it by this Indenture and use
the same degree of care and skill in their exercise as a prudent Person would exercise or use under
the circumstances in the conduct of such Persons own affairs.
(b) Except during the continuance of an Event of Default:
(1) the Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture and no implied covenants or obligations shall be
read into this Indenture against the Trustee; and
(2) in the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the requirements of this
Indenture. However, the Trustee shall examine the certificates and opinions to determine
whether or not they conform to the requirements of this Indenture
73
(but need not confirm or investigate the accuracy of mathematical calculations or other
facts stated therein).
(c) The Trustee may not be relieved from liability for its own negligent action, its own
negligent failure to act or its own wilful misconduct, except that:
(1) this paragraph does not limit the effect of paragraph (b) of this Section;
(2) the Trustee shall not be liable for any error of judgment made in good faith by a
Trust Officer unless it is proved that the Trustee was negligent in ascertaining the
pertinent facts; and
(3) the Trustee shall not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to Section 6.05.
(d) Every provision of this Indenture that in any way relates to the Trustee is subject to
paragraphs (a), (b) and (c) of this Section.
(e) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company.
(f) Money held in trust by the Trustee need not be segregated from other funds except to the
extent required by law.
(g) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or otherwise incur financial liability in the performance of any of its duties hereunder or in the
exercise of any of its rights or powers, if it shall have reasonable grounds to believe that
repayment of such funds or adequate indemnity against such risk or liability is not reasonably
assured to it.
(h) Every provision of this Indenture relating to the conduct or affecting the liability of or
affording protection to the Trustee shall be subject to the provisions of this Section and to the
provisions of the TIA.
SECTION 7.02.
Rights of Trustee.
(a) The Trustee may conclusively rely on any
document believed by it to be genuine and to have been signed or presented by the proper Person.
The Trustee need not investigate any fact or matter stated in the document.
(b) Before the Trustee acts or refrains from acting, it may require an Officers Certificate
or an Opinion of Counsel. The Trustee shall not be liable for any action it takes or omits to take
in good faith in reliance on the Officers Certificate or Opinion of Counsel.
(c) The Trustee may act through agents and shall not be responsible for the misconduct or
negligence of any agent appointed with due care.
(d) The Trustee shall not be liable for any action it takes or omits to take in good faith
which it reasonably believes to be authorized or within its rights or powers;
provided
,
however
, that the Trustees conduct does not constitute wilful misconduct or negligence.
74
(e) The Trustee may consult with counsel, and the advice or opinion of counsel with respect to
legal matters relating to this Indenture and the Securities shall be full and complete
authorization and protection from liability in respect to any action taken, omitted or suffered by
it hereunder in good faith and in accordance with the advice or opinion of such counsel.
(f) Any request or direction of the Company mentioned herein shall be sufficient if signed by
an Officer, and any resolution of the Board of Directors shall be sufficiently evidenced by
attachment to an Officers Certificate.
(g) The Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders of Securities pursuant to
this Indenture, unless such Holders shall have offered to the Trustee reasonable security or
indemnity satisfactory to it against the costs, expenses and liabilities which might be incurred by
it in compliance with such request or direction.
(h) Except with respect to Section 4.01, the Trustee shall have no duty to inquire as to the
performance of the Companys covenants in Article 4 hereof. In addition, the Trustee shall not be
deemed to have knowledge of any Default or Event of Default except (i) any Default or Event of
Default occurring pursuant to Section 6.01(1) or (2) or (ii) any Default or Event of Default of
which a Trust Officer of the Trustee shall have received written notification at the corporate
trust office of the Trustee, and such notice references this Indenture, or shall have obtained
actual knowledge.
(i) Delivery of reports, information and documents to the Trustee under Section 4.02 is for
informational purposes only and the Trustees receipt of the foregoing shall not constitute
constructive notice of any information contained therein or determinable from information contained
therein, including the Companys compliance with any of its covenants hereunder (as to which the
Trustee is entitled to rely exclusively on Officers Certificates).
(j) The rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and
other Person employed by the Trustee to act hereunder.
(k) In no event shall the Trustee be responsible or liable for special, indirect or
consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit)
irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action.
SECTION 7.03.
Individual Rights of Trustee.
The Trustee in its individual or any
other capacity may become the owner or pledgee of Securities and may otherwise deal with the
Company or its Affiliates with the same rights it would have if it were not Trustee. However, in
the event that the Trustee acquires any conflicting interest it must eliminate such conflict within
90 days, apply to the SEC for permission to continue as trustee or resign. Any Paying Agent,
Registrar, co-registrar or co-paying agent may do the same with like rights. However, the Trustee
must comply with Sections 7.10 and 7.11.
75
SECTION 7.04.
Trustees Disclaimer.
The Trustee shall not be responsible for and
makes no representation as to the validity or adequacy of this Indenture or the Securities, it
shall not be accountable for the Companys use of the proceeds from the Securities, and it shall
not be responsible for any statement of the Company in this Indenture or in any document issued in
connection with the sale of the Securities or in the Securities other than the Trustees
certificate of authentication.
SECTION 7.05.
Notice of Defaults.
If a Default occurs, is continuing and is known to
the Trustee, the Trustee shall mail to each Securityholder notice of the Default within 90 days
after it occurs. Except in the case of a Default in the payment of principal of or interest on any
Security (including payments pursuant to the mandatory redemption provisions of such Security, if
any), the Trustee may withhold the notice if and so long as a committee of its Trust Officers in
good faith determines that withholding the notice is not opposed to the interests of the
Securityholders.
SECTION 7.06.
Reports by Trustee to Holders.
As promptly as practicable after each
May 15 beginning with the May 15 following the date of this Indenture, and in any event prior to
July 15 in each year, the Trustee shall mail to each Securityholder a brief report dated as of May
15 that complies with TIA § 313(a). The Trustee also shall comply with TIA § 313(b).
A copy of each report at the time of its mailing to Securityholders shall be filed with the
SEC and each stock exchange (if any) on which the Securities are listed. The Company agrees to
notify promptly the Trustee whenever the Securities become listed on any stock exchange and of any
delisting thereof.
SECTION 7.07.
Compensation and Indemnity.
The Company shall pay to the Trustee from
time to time reasonable compensation for its services. The Trustees compensation shall not be
limited by any law on compensation of a trustee of an express trust. The Company shall reimburse
the Trustee upon request for all reasonable out-of-pocket expenses incurred or made by it,
including costs of collection, in addition to the compensation for its services. Such expenses
shall include the reasonable compensation and expenses, disbursements and advances of the Trustees
agents, counsel, accountants and experts. The Company shall indemnify and hold harmless the
Trustee and its officers, directors, employees and agents against any and all loss, liability or
expense (including attorneys fees) incurred by it in connection with the acceptance or
administration of this trust and the performance of its duties hereunder. The Trustee shall notify
the Company promptly of any claim for which it may seek indemnity. Failure by the Trustee to so
notify the Company shall not relieve the Company of its obligations hereunder. The Company shall
defend the claim and the Trustee may have separate counsel and the Company shall pay the reasonable
fees and expenses of such counsel. The Company need not pay for any settlement made without its
consent, which consent shall not be unreasonably withheld. The Company need not reimburse any
expense or indemnify against any loss, liability or expense incurred by the Trustee through the
Trustees own wilful misconduct, negligence or bad faith.
76
To secure the Companys payment obligations in this Section, the Trustee shall have a lien
prior to the Securities on all money or property held or collected by the Trustee other than money
or property held in trust to pay principal of and interest on particular Securities.
The Companys payment obligations pursuant to this Section shall survive the discharge of this
Indenture and the resignation or removal of the Trustee. When the Trustee incurs expenses after
the occurrence of a Default specified in Section 6.01(7) or (8) with respect to the Company, the
expenses are intended to constitute expenses of administration under the Bankruptcy Law.
SECTION 7.08.
Replacement of Trustee.
The Trustee may resign at any time by so
notifying the Company in writing. The Holders of a majority in principal amount of the Securities
may remove the Trustee by so notifying the Trustee and may appoint a successor Trustee. The
Company shall remove the Trustee if:
(1) the Trustee fails to comply with Section 7.10;
(2) the Trustee is adjudged bankrupt or insolvent;
(3) a receiver or other public officer takes charge of the Trustee or its property; or
(4) the Trustee otherwise becomes incapable of acting.
If the Trustee resigns, is removed by the Company or by the Holders of a majority in principal
amount of the Securities and such Holders do not reasonably promptly appoint a successor Trustee,
or if a vacancy exists in the office of Trustee for any reason (the Trustee in such event being
referred to herein as the retiring Trustee), the Company shall promptly appoint a successor
Trustee.
A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Thereupon the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers and duties of the
Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to
Securityholders. The retiring Trustee shall promptly transfer all property held by it as Trustee
to the successor Trustee, subject to the lien provided for in Section 7.07.
If a successor Trustee does not take office within 60 days after the retiring Trustee resigns
or is removed, the retiring Trustee or the Holders of 10% in principal amount of the Securities may
petition any court of competent jurisdiction for the appointment of a successor Trustee.
If the Trustee fails to comply with Section 7.10, any Securityholder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.
Notwithstanding the replacement of the Trustee pursuant to this Section, the Companys
obligations under Section 7.07 shall continue for the benefit of the retiring Trustee.
77
SECTION 7.09.
Successor Trustee by Merger.
If the Trustee consolidates with, merges
or converts into, or transfers all or substantially all its corporate trust business or assets to,
another corporation or banking association, the resulting, surviving or transferee corporation
without any further act shall be the successor Trustee.
In case at the time such successor or successors by merger, conversion or consolidation to the
Trustee shall succeed to the trusts created by this Indenture any of the Securities shall have been
authenticated but not delivered, any such successor to the Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Securities so authenticated; and in
case at that time any of the Securities shall not have been authenticated, any successor to the
Trustee may authenticate such Securities either in the name of any predecessor hereunder or in the
name of the successor to the Trustee; and in all such cases such certificates shall have the full
force which it is anywhere in the Securities or in this Indenture
provided
that the
certificate of the Trustee shall have.
SECTION 7.10.
Eligibility; Disqualification.
The Trustee shall at all times satisfy
the requirements of TIA § 310(a). The Trustee shall have a combined capital and surplus of at
least $50,000,000 as set forth in its most recent published annual report of condition. The
Trustee shall comply with TIA § 310(b);
provided
,
however
, that there shall be
excluded from the operation of TIA § 310(b)(1) any indenture or indentures under which other
securities or certificates of interest or participation in other securities of the Company are
outstanding if the requirements for such exclusion set forth in TIA § 310(b)(1) are met.
SECTION 7.11.
Preferential Collection of Claims Against Company.
The Trustee shall
comply with TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b). A Trustee
who has resigned or been removed shall be subject to TIA § 311(a) to the extent indicated.
Article 8
Discharge of Indenture; Defeasance
SECTION 8.01.
Discharge of Liability on Securities; Defeasance.
(a) When (1) the
Company delivers to the Trustee all outstanding Securities (other than Securities replaced pursuant
to Section 2.07) for cancellation or (2) all outstanding Securities have become due and payable,
whether at maturity or on a redemption date as a result of the mailing of a notice of redemption
pursuant to Article 3 hereof or otherwise will become due and payable within one year (whether due
to maturity or the mailing of a notice of redemption) and, in the case of this clause (2), the
Company irrevocably deposits or causes to be deposited with the Trustee funds in trust solely for
the benefit of the Securityholders, money or U.S. Government Obligations in amounts as will be
sufficient, without consideration of any reinvestment of interest to pay and discharge the entire
Indebtedness on the Securities not previously delivered to the Trustee for cancellation (other than
Securities replaced pursuant to Section 2.07) (including principal of, premium and interest, if
any, on, the Securities to the date of maturity or redemption) and provides irrevocable
instructions to the Trustee to apply the deposited funds toward the payment of the Securities at
maturity or on the redemption date, as the case may be, and if in either case the Company pays all
other sums payable hereunder by the Company, then
78
this Indenture shall, subject to Section 8.01(c), cease to be of further effect. The Trustee
shall acknowledge satisfaction and discharge of this Indenture on demand of the Company accompanied
by an Officers Certificate and an Opinion of Counsel and at the cost and expense of the Company.
(b) Subject to Sections 8.01(c) and 8.02, the Company at any time may terminate (1) all its
obligations under the Securities, this Indenture and the Security Documents (and cause the release
of all Liens on the Collateral and have each Subsidiary Guarantors obligation discharged with
respect to its Subsidiary Guaranty, this Indenture and the Security Documents) (legal defeasance
option) or (2) its obligations with respect to the Liens on the Collateral and under Sections
4.02, 4.03, 4.04, 4.05, 4.06, 4.07, 4.08, 4.09, 4.10, 4.11 and 4.12 and the operation of Sections
6.01(4), 6.01(6), 6.01(7), 6.01(8), 6.01(9) and 6.01(11) (but, in the case of Sections 6.01(7) and
(8), with respect only to Significant Subsidiaries and Subsidiary Guarantors) and the limitations
contained in Section 5.01(a)(3) (covenant defeasance option). The Company may exercise its legal
defeasance option notwithstanding its prior exercise of its covenant defeasance option.
If the Company exercises its legal defeasance option, payment of the Securities may not be
accelerated because of an Event of Default with respect thereto. If the Company exercises its
covenant defeasance option, payment of the Securities may not be accelerated because of an Event of
Default specified in Sections 6.01(4), 6.01(6), 6.01(7), 6.01(8) and 6.01(9) (but, in the case of
Sections 6.01(7) and (8), with respect only to Significant Subsidiaries and Subsidiary Guarantors)
or because of the failure of the Company to comply with Section 5.01(a)(3). If the Company
exercises its legal defeasance option or its covenant defeasance option, each Subsidiary Guarantor,
if any, shall be released from all its obligations with respect to its Subsidiary Guaranty, and the
related Collateral of such Subsidiary Guarantor shall be released from the Security Documents.
Upon satisfaction of the conditions set forth herein and upon request of the Company, the
Trustee shall acknowledge in writing the discharge of those obligations that the Company
terminates.
(c) Notwithstanding clauses (a) and (b) above, the Companys obligations in Sections 2.03,
2.04, 2.05, 2.06, 2.07, 2.08, 7.07 and 7.08 and in this Article 8 shall survive until the
Securities have been paid in full. Thereafter, the Companys obligations in Sections 7.07, 8.04
and 8.05 shall survive.
SECTION 8.02.
Conditions to Defeasance.
The Company may exercise its legal defeasance
option or its covenant defeasance option only if:
(1) the Company irrevocably deposits in trust with the Trustee money or U.S.
Government Obligations for the payment of principal of and interest on the Securities to
maturity or redemption, as the case may be;
(2) the Company delivers to the Trustee a certificate from a nationally recognized
firm of independent accountants expressing their opinion that the payments of principal and
interest when due and without reinvestment on the deposited U.S. Government
79
Obligations plus any deposited money without investment will provide cash at such times
and in such amounts as will be sufficient to pay principal and interest when due on all the
Securities to maturity or redemption, as the case may be;
(3) the Company delivers to the Trustee an Opinion of Counsel (which opinion may be
subject to customary assumptions and exceptions) to the effect that after the 91st day
following the deposit, the trust funds will not be subject to the effect of any applicable
bankruptcy, insolvency, reorganization or similar laws affecting creditors rights
generally;
(4) no Default or Event of Default shall have occurred and be continuing on the date
of such deposit (other than a Default or Event of Default resulting from the borrowing of
funds to be applied to such deposit (and any similar concurrent deposit relating to other
Indebtedness), and the granting of Liens to secure such borrowings);
(5) the deposit does not constitute a default under any agreement (other than this
Indenture and the agreements governing any other Indebtedness being defeased, discharged or
replaced) binding on the Company;
(6) the Company delivers to the Trustee an Opinion of Counsel to the effect that the
trust resulting from the deposit does not constitute, or is qualified as, a regulated
investment company under the Investment Company Act of 1940;
(7) in the case of the legal defeasance option, the Company shall have delivered to
the Trustee an Opinion of Counsel stating that (A) the Company has received from, or there
has been published by, the Internal Revenue Service a ruling, or (B) since the Issue Date
there has been a change in the applicable federal income tax law, in either case to the
effect that, and based thereon such Opinion of Counsel shall confirm that, the
Securityholders will not recognize income, gain or loss for federal income tax purposes as a
result of such deposit and defeasance and will be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if such
deposit and defeasance had not occurred;
(8) in the case of the covenant defeasance option, the Company shall have delivered to
the Trustee an Opinion of Counsel to the effect that the Securityholders will not recognize
income, gain or loss for federal income tax purposes as a result of such deposit and
covenant defeasance and will be subject to federal income tax on the same amounts, in the
same manner and at the same times as would have been the case if such deposit and covenant
defeasance had not occurred; and
(9) the Company delivers to the Trustee an Officers Certificate and an Opinion of
Counsel, each stating that all conditions precedent to the defeasance and discharge of the
Securities as contemplated by this Article 8 have been complied with.
Before or after a deposit, the Company may make arrangements satisfactory to the Trustee for
the redemption of Securities at a future date in accordance with Article 3.
80
SECTION 8.03.
Application of Trust Money.
The Trustee shall hold in trust money or
U.S. Government Obligations deposited with it pursuant to this Article 8. It shall apply the
deposited money and the money from U.S. Government Obligations through the Paying Agent and in
accordance with this Indenture to the payment of principal of and interest on the Securities.
SECTION 8.04.
Repayment to Company.
The Trustee and the Paying Agent shall promptly
turn over to the Company upon request any excess money or securities held by them at any time.
Subject to any applicable abandoned property law, the Trustee and the Paying Agent shall pay
to the Company upon request any money held by them for the payment of principal or interest that
remains unclaimed for two years, and, thereafter, Securityholders entitled to the money must look
to the Company for payment as general creditors.
SECTION 8.05.
Indemnity for Government Obligations.
The Company shall pay and shall
indemnify the Trustee against any tax, fee or other charge imposed on or assessed against deposited
U.S. Government Obligations or the principal and interest received on such U.S. Government
Obligations.
SECTION 8.06.
Reinstatement.
If the Trustee or Paying Agent is unable to apply any
money or U.S. Government Obligations in accordance with this Article 8 by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, the Companys and each Subsidiary
Guarantors obligations under this Indenture, each Subsidiary Guaranty and the Securities shall be
revived and reinstated as though no deposit had occurred pursuant to this Article 8 until such time
as the Trustee or Paying Agent is permitted to apply all such money or U.S. Government Obligations
in accordance with this Article 8;
provided
,
however
, that, if the Company has made
any payment of interest on or principal of any Securities because of the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of such Securities to
receive such payment from the money or U.S. Government Obligations held by the Trustee or Paying
Agent.
Article 9
Amendments
SECTION 9.01.
Without Consent of Holders.
The Company, the Subsidiary Guarantors and
the Trustee may amend or supplement this Indenture, the Security Documents, any Subsidiary Guaranty
and the Securities without notice to or consent of any Securityholder:
(1) to cure any ambiguity, omission, defect or inconsistency (including conforming
this Indenture to this Description of the Notes as described in clause (12) below);
(2) to provide for the assumption by a successor corporation of the obligations of the
Company or any Subsidiary Guarantor under this Indenture pursuant to Article 5;
81
(3) to provide for uncertificated Securities in addition to or in place of
certificated Securities (
provided
that the uncertificated Securities are issued in
registered form for purposes of Section 163(f) of the Code, or if issued prior to March 19,
2012, in a manner such that the uncertificated Securities are described in Section
163(f)(2)(B) of the Code);
(4) to add Guarantees with respect to the Securities
,
including any Subsidiary
Guaranties;
(5) to add to the covenants of the Company or any Subsidiary Guarantor for the benefit
of the Holders or to surrender any right or power herein conferred upon the Company or any
Subsidiary Guarantor;
(6) to make any change that does not adversely affect the rights of any Holder of the
Securities (based upon the good faith determination of the Company as evidenced in an
Officers Certificate delivered to the Trustee);
(7) to comply with any requirements of the SEC in connection with qualifying, or
maintaining the qualification of, this Indenture under the TIA;
(8) to make any amendment to the provisions of this Indenture relating to the transfer
and legending of Securities;
provided
,
however
, that (a) compliance with
this Indenture as so amended would not result in Securities being transferred in violation
of the Securities Act or any other applicable securities law and (b) such amendment does not
materially and adversely affect the rights of Holders to transfer Securities (based upon the
good faith determination of the Company as evidenced in an Officers Certificate delivered
to the Trustee);
(9) to comply with Article 5;
(10) to add security to or for the benefit of the Securities and, in the case of the
Security Documents, to or for the benefit of the other secured parties named therein or to
confirm and evidence the release, termination or discharge of any Subsidiary Guaranty of, or
Lien securing, the Securities when such release, termination or discharge is permitted by
this Indenture and the Security Documents or as required by the Intercreditor Agreement;
(11) to modify the Security Documents and/or the Intercreditor Agreement or enter into
additional intercreditor agreements (i) to secure additional extensions of credit and add
additional secured creditors holding Other Second Lien Obligations so long as such Other
Second Lien Obligations are not prohibited by the provisions of the Credit Facilities or
this Indenture or (ii) otherwise in accordance with the Intercreditor Agreement; or
(12) to conform the text of this Indenture, the Securities, any Subsidiary Guaranty,
the Security Documents or the Intercreditor Agreement to any provision of the Description
of the Notes in the Offering Circular to the extent such provision in the Description of
the Notes was intended to be a verbatim recitation of a provision of this
82
Indenture, the Securities, such Subsidiary Guaranty, the Security Documents or the
Intercreditor Agreement.
After an amendment under this Section becomes effective, the Company shall mail to
Securityholders a notice briefly describing such amendment. The failure to give such notice to all
Securityholders, or any defect therein, shall not impair or affect the validity of an amendment
under this Section.
SECTION 9.02.
With Consent of Holders.
The Company, the Subsidiary Guarantors and the
Trustee may amend or supplement this Indenture, the Security Documents, any Subsidiary Guaranty and
the Securities with the written consent of the Holders of at least a majority in principal amount
of the Securities then outstanding (including consents obtained in connection with a tender offer
or exchange offer for the Securities) and any existing default or noncompliance with any provisions
thereof may also be waived with the consent of the Holders of at least a majority in principal
amount of the Securities then outstanding (other than Securities beneficially owned by the Company
or its Affiliates). However, without the consent of each Securityholder affected thereby, an
amendment or waiver may not:
(1) reduce the amount of Securities whose Holders must consent to an amendment,
supplement or waiver;
(2) reduce the rate of or extend the time for payment of interest on any Security;
(3) reduce the principal of or change the Stated Maturity of any Security;
(4) reduce the amount payable upon the redemption of any Security or change the time
at which any Security may be redeemed as described in Article 3 hereto or Section 5 of the
Securities;
(5) make any Security payable in money other than that stated in the Security;
(6) impair the right of any Holder to receive payment of principal of and interest on
such Holders Securities on or after the due dates therefor or to institute suit for the
enforcement of any payment on or with respect to such Holders Securities, including making
any change in Section 6.07;
(7) make any change in the amendment provisions which require each Holders consent or
in the waiver provisions, including Section 6.04;
(8) make any change in the ranking or priority of any Security that would adversely
affect the Securityholders; or
(9) make any change in, or release other than in accordance with this Indenture, any
Subsidiary Guaranty that would adversely affect the Holders.
Any amendment to, or waiver of, the provision of this Indenture or any Security Document that
has the effect of releasing all or substantially all of the Collateral shall require consent of the
Holders of at least 75% in aggregate principal amount of the Securities then
83
outstanding (including consents obtained in connection with a tender offer or exchange offer
for the Securities).
No amendment of, or supplement or waiver to, this Indenture, the Securities or the Security
Documents (other than the Intercreditor Agreement) shall be permitted to be effected which is in
violation of or inconsistent with the terms of the Intercreditor Agreement.
It shall not be necessary for the consent of the Holders under this Section to approve the
particular form of any proposed amendment, but it shall be sufficient if such consent approves the
substance thereof.
After an amendment under this Section becomes effective, the Company shall mail to
Securityholders a notice briefly describing such amendment. The failure to give such notice to all
Securityholders, or any defect therein, shall not impair or affect the validity of an amendment
under this Section.
SECTION 9.03.
Compliance with Trust Indenture Act.
Every amendment to this Indenture
or the Securities shall comply with the TIA as then in effect.
SECTION 9.04.
Revocation and Effect of Consents and Waivers.
A consent to an
amendment or a waiver by a Holder of a Security shall bind the Holder and every subsequent Holder
of that Security or portion of the Security that evidences the same debt as the consenting Holders
Security, even if notation of the consent or waiver is not made on the Security. However, any such
Holder or subsequent Holder may revoke the consent or waiver as to such Holders Security or
portion of the Security if the Trustee receives the notice of revocation before the date the
amendment or waiver becomes effective. After an amendment or waiver becomes effective, it shall
bind every Securityholder. An amendment or waiver becomes effective upon the execution of such
amendment or waiver by the Trustee.
The Company may, but shall not be obligated to, fix a record date for the purpose of
determining the Securityholders entitled to give their consent or take any other action described
above or required or permitted to be taken pursuant to this Indenture. If a record date is fixed,
then notwithstanding the immediately preceding paragraph, those Persons who were Securityholders at
such record date (or their duly designated proxies), and only those Persons, shall be entitled to
give such consent or to revoke any consent previously given or to take any such action, whether or
not such Persons continue to be Holders after such record date. No such consent shall be valid or
effective for more than 120 days after such record date.
SECTION 9.05.
Notation on or Exchange of Securities.
If an amendment changes the
terms of a Security, the Trustee may require the Holder of the Security to deliver it to the
Trustee. The Trustee may place an appropriate notation on the Security regarding the changed terms
and return it to the Holder. Alternatively, if the Company or the Trustee so determines, the
Company in exchange for the Security shall issue and the Trustee shall authenticate a new Security
that reflects the changed terms. Failure to make the appropriate notation or to issue a new
Security shall not affect the validity of such amendment.
SECTION 9.06.
Trustee To Sign Amendments.
The Trustee shall sign any amendment
authorized pursuant to this Article 9 if the amendment does not adversely affect the
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rights, duties, liabilities or immunities of the Trustee. If it does, the Trustee may but
need not sign it. In signing such amendment the Trustee shall be entitled to receive indemnity
reasonably satisfactory to it and to receive, and (subject to Section 7.01) shall be fully
protected in relying upon, an Officers Certificate and an Opinion of Counsel stating that such
amendment is authorized or permitted by this Indenture.
SECTION 9.07.
Payment for Consent.
Neither the Company nor any Affiliate of the
Company shall, directly or indirectly, pay or cause to be paid any consideration, whether by way of
interest, fee or otherwise, to any Holder for or as an inducement to any consent, waiver or
amendment of any of the terms or provisions of this Indenture or the Securities unless such
consideration is offered to all Holders and is paid to all Holders that so consent, waive or agree
to amend in the time frame set forth in solicitation documents relating to such consent, waiver or
agreement.
Article 10
Subsidiary Guaranties
SECTION 10.01.
Guaranties.
Each Subsidiary Guarantor hereby unconditionally and
irrevocably guarantees, jointly and severally, on a senior secured basis, to each Holder and to the
Trustee and its successors and assigns (a) the full and punctual payment of principal of and
interest on the Securities when due, whether at maturity, by acceleration, by redemption or
otherwise, and all other monetary obligations of the Company under this Indenture and the
Securities and (b) the full and punctual performance within applicable grace periods of all other
obligations of the Company under this Indenture and the Securities (all the foregoing being
hereinafter collectively called the Guaranteed Obligations). Each Subsidiary Guarantor further
agrees that the Guaranteed Obligations may be extended or renewed, in whole or in part, without
notice or further assent from such Subsidiary Guarantor and that such Subsidiary Guarantor will
remain bound under this Article 10 notwithstanding any extension or renewal of any Obligation.
Each Subsidiary Guarantor waives presentation to, demand of, payment from and protest to the
Company of any of the Guaranteed Obligations and also waives notice of protest for nonpayment.
Each Subsidiary Guarantor waives notice of any default under the Securities or the Guaranteed
Obligations. The obligations of each Subsidiary Guarantor hereunder shall not be affected by (1)
the failure of any Holder or the Trustee to assert any claim or demand or to enforce any right or
remedy against the Company or any other Person (including any Subsidiary Guarantor) under this
Indenture, the Securities or any other agreement or otherwise; (2) any extension or renewal of any
thereof; (3) any rescission, waiver, amendment or modification of any of the terms or provisions of
this Indenture, the Securities or any other agreement; (4) the release of any security held by any
Holder or the Trustee for the Guaranteed Obligations or any of them; (5) the failure of any Holder
or the Trustee to exercise any right or remedy against any other guarantor of the Guaranteed
Obligations; or (6) except as set forth in Section 10.06, any change in the ownership of such
Subsidiary Guarantor.
Each Subsidiary Guarantor further agrees that its Subsidiary Guaranty herein constitutes a
guarantee of payment, performance and compliance when due (and not a guarantee
85
of collection) and waives any right to require that any resort be had by any Holder or the
Trustee to any security held for payment of the Guaranteed Obligations.
Except as expressly set forth in Sections 8.01(b), 10.02 and 10.06, the obligations of each
Subsidiary Guarantor hereunder shall not be subject to any reduction, limitation, impairment or
termination for any reason, including any claim of waiver, release, surrender, alteration or
compromise, and shall not be subject to any defense of setoff, counterclaim, recoupment or
termination whatsoever or by reason of the invalidity, illegality or unenforceability of the
Guaranteed Obligations or otherwise. Without limiting the generality of the foregoing, the
obligations of each Subsidiary Guarantor herein shall not be discharged or impaired or otherwise
affected by the failure of any Holder or the Trustee to assert any claim or demand or to enforce
any remedy under this Indenture, the Securities or any other agreement, by any waiver or
modification of any thereof, by any default, failure or delay, willful or otherwise, in the
performance of the obligations, or by any other act or thing or omission or delay to do any other
act or thing which may or might in any manner or to any extent vary the risk of such Subsidiary
Guarantor or would otherwise operate as a discharge of such Subsidiary Guarantor as a matter of law
or equity.
Each Subsidiary Guarantor further agrees that its Guarantee herein shall continue to be
effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of
principal of or interest on any Obligation is rescinded or must otherwise be restored by any
Holder, the Trustee or the Second Lien Collateral Agent upon the bankruptcy or reorganization of
the Company or otherwise.
In furtherance of the foregoing and not in limitation of any other right which any Holder or
the Trustee has at law or in equity against any Subsidiary Guarantor by virtue hereof, upon the
failure of the Company to pay the principal of or interest on any Obligation when and as the same
shall become due, whether at maturity, by acceleration, by redemption or otherwise, or to perform
or comply with any other Obligation, each Subsidiary Guarantor hereby promises to and shall, upon
receipt of written demand by the Trustee, forthwith pay, or cause to be paid, in cash, to the
Holders or the Trustee an amount equal to the sum of (A) the unpaid amount of such Guaranteed
Obligations, (B) accrued and unpaid interest on such Guaranteed Obligations (but only to the extent
not prohibited by law) and (C) all other monetary Guaranteed Obligations of the Company to the
Holders and the Trustee.
Each Subsidiary Guarantor agrees that, as between it, on the one hand, and the Holders and the
Trustee, on the other hand, (i) the maturity of the Guaranteed Obligations hereby may be
accelerated as provided in Article 6 for the purposes of such Subsidiary Guarantors Subsidiary
Guaranty herein, notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the Guaranteed Obligations guaranteed hereby, and (ii) in the event of
any declaration of acceleration of such Guaranteed Obligations as provided in Article 6, such
Guaranteed Obligations (whether or not due and payable) shall forthwith become due and payable by
such Subsidiary Guarantor for the purposes of this Section 10.01.
Each Subsidiary Guarantor also agrees to pay any and all costs and expenses (including
reasonable attorneys fees) incurred by the Trustee or any Holder in enforcing any rights under
this Section 10.01.
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SECTION 10.02.
Limitation on Liability.
Any term or provision of this Indenture to
the contrary notwithstanding, the maximum aggregate amount of the Guaranteed Obligations guaranteed
hereunder by any Subsidiary Guarantor shall not exceed the maximum amount that can be hereby
guaranteed without rendering this Indenture, as it relates to such Subsidiary Guarantor, voidable
under applicable law relating to fraudulent conveyance or fraudulent transfer or similar laws
affecting the rights of creditors generally.
SECTION 10.03.
Successors and Assigns.
This Article 10 shall be binding upon each
Subsidiary Guarantor and its successors and assigns and shall enure to the benefit of the
successors and assigns of the Trustee and the Holders and, in the event of any transfer or
assignment of rights by any Holder or the Trustee, the rights and privileges conferred upon that
party in this Indenture and in the Securities shall automatically extend to and be vested in such
transferee or assignee, all subject to the terms and conditions of this Indenture.
SECTION 10.04.
No Waiver.
Neither a failure nor a delay on the part of either the
Trustee or the Holders in exercising any right, power or privilege under this Article 10 shall
operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any other or
further exercise of any right, power or privilege. The rights, remedies and benefits of the
Trustee and the Holders herein expressly specified are cumulative and not exclusive of any other
rights, remedies or benefits which either may have under this Article 10 at law, in equity, by
statute or otherwise.
SECTION 10.05.
Modification.
No modification, amendment or waiver of any provision of
this Article 10, nor the consent to any departure by any Subsidiary Guarantor therefrom, shall in
any event be effective unless the same shall be in writing and signed by the Trustee, and then such
waiver or consent shall be effective only in the specific instance and for the purpose for which
given. No notice to or demand on any Subsidiary Guarantor in any case shall entitle such
Subsidiary Guarantor to any other or further notice or demand in the same, similar or other
circumstances.
SECTION 10.06.
Release of Subsidiary Guarantor.
A Subsidiary Guarantor will be
released from its obligations under this Article 10 (other than any obligation that may have arisen
under Section 10.07)
(1) upon the sale or other disposition (including by way of consolidation or merger)
of a Subsidiary Guarantor (including the sale or disposition of Capital Stock of a
Subsidiary Guarantor, following which such Subsidiary Guarantor is no longer a Subsidiary),
(2) upon the sale or disposition of all or substantially all the assets of such
Subsidiary Guarantor,
(3) upon the designation of such Subsidiary Guarantor as an Unrestricted Subsidiary in
accordance with the terms of this Indenture,
(4) with respect to any Foreign Subsidiary that is a Subsidiary Guarantor, at such
time as such Subsidiary Guarantor does not have any Indebtedness outstanding that
87
would have required such Subsidiary Guarantor to enter into a Guaranty Agreement
pursuant to Section 4.12,
(5) upon defeasance of the Securities pursuant to Article 8, or
(6) upon the full satisfaction of the Companys obligations under this Indenture;
provided
,
however
, that in the case of clauses (1) and (2) above, (i) such
sale or other disposition is made to a Person other than the Company or an Affiliate of the
Company, (ii) such sale or disposition is otherwise permitted by this Indenture and (iii)
the Company provides an Officers Certificate to the Trustee to the effect that the
transactions do not violate Section 4.06 and, to the extent applicable, the Company will
comply with its obligations under Section 4.06.
At the request of the Company, the Trustee shall execute and deliver an appropriate instrument
evidencing such release.
SECTION 10.07.
Contribution.
Each Subsidiary Guarantor that makes a payment under its
Subsidiary Guaranty shall be entitled upon payment in full of all Guaranteed Obligations under this
Indenture to a contribution from each other Subsidiary Guarantor in an amount equal to such other
Subsidiary Guarantors
pro
rata
portion of such payment based on the respective net
assets of all the Subsidiary Guarantors at the time of such payment determined in accordance with
GAAP.
Article 11
Collateral and Security
SECTION 11.01.
Collateral and Security Documents.
On and after the Issue Date, the
full and punctual payment of principal of and interest on the Securities when due, whether on an
interest payment date, at maturity, by acceleration, redemption or otherwise, and interest on the
overdue principal of and interest on the Securities and payment and performance of all other Second
Lien Obligations shall be secured to the extent and as provided in the Security Documents, which
define the terms of the Liens that secure the Second Lien Obligations, subject to the terms,
conditions and provisions of the Intercreditor Agreement. The Trustee, the Company and the
Subsidiary Guarantors each hereby acknowledge and agree that the Second Lien Collateral Agent (or
its bailee or agent) holds the Collateral in trust for the benefit of the Trustee and the Holders,
in each case pursuant to the terms of the Security Documents and the Intercreditor Agreement. Each
Holder, by accepting a Security, shall be deemed to: (i) consent and agree to the terms,
conditions and provisions of the Security Documents and the Intercreditor Agreement (including the
provisions providing for foreclosure and release of Collateral as well as the subordination of the
Liens), as the same may be in effect or may be amended, modified, supplemented or restated from
time to time in accordance with their terms and this Indenture and directs the Trustee and Second
Lien Collateral Agent to sign these documents, (ii) agree that it will be bound by and will take no
actions contrary to the provisions of the Intercreditor Agreement and (iii) agree that none of the
Company, the Subsidiary Guarantors, the Trustee or the Second Lien Collateral Agent shall be
required
88
hereunder or under any Security Document to take any action inconsistent with or contrary to
any provision of the Intercreditor Agreement. The Company shall promptly deliver to the Trustee
(if it is not itself then the Second Lien Collateral Agent) copies of all material documents
delivered to the Second Lien Collateral Agent pursuant to the Security Documents and will do or
cause to be done all such acts and things as may be reasonably required by the next sentence of
this Section 11.01 to reasonably assure and confirm to the Trustee and the Second Lien Collateral
Agent the security interest in the Collateral contemplated hereby, by the Security Documents or any
part thereof, as from time to time constituted, so as to render the same available for the security
and benefit of this Indenture and of the Securities secured hereby, according to the intent and
purposes herein expressed. The Company shall take, and shall cause the Subsidiary Guarantors to
take, any and all actions reasonably required to cause the Security Documents to create and
maintain, as security for the Second Lien Obligations, a valid and enforceable perfected Lien and
security interest in and on all of the Collateral (subject to the terms, conditions and provisions
of the Intercreditor Agreement and the Security Documents and, with respect to the enforceability
of such Lien, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other
laws affecting creditors rights generally and subject to general principles of equity, regardless
of whether considered in a proceeding in equity or at law), in favor of the Second Lien Collateral
Agent for the benefit of the Trustee and the Holders, second in priority to any and all Liens and
security interests (other than Permitted Liens) at any time granted in the Collateral to secure the
First Lien Obligations. The Company and the Subsidiary Guarantors will from time to time promptly
pay and discharge all recording or filing fees, charges and taxes relating to the filing or
registration of this Indenture and the Security Documents, any amendments thereto and any other
instruments of further assurance. Each year, at the time of delivery to the Trustee of the annual
financial statements with respect to the preceding fiscal year pursuant to Section 4.02, the
Company shall deliver to the Trustee a certificate of an executive officer of the Company who has
specific knowledge of the Companys financial matters, setting forth any change in the information
required pursuant to the schedules required by the Security Documents or confirming that there has
been no change in such information since the date of the prior annual financial statements.
SECTION 11.02.
Recordings and Opinions.
The Company shall comply with the provisions
of TIA § 314 to the extent required;
provided
,
however
, that, so long as this
Indenture has not been qualified under the TIA, with respect to TIA § 314(b): (i) clause (1)
thereof shall not be applicable hereunder and (ii) with respect to clause (2) thereof, the Company
shall furnish to the Trustee and the Second Lien Collateral Agent on or within one month of the
date on which the Company is required to provide annual reports pursuant to Section 4.02 with
respect to the preceding fiscal year, commencing in 2012, an Opinion of Counsel either (A) stating
that, in the opinion of such counsel, such action has been taken with respect to the recording,
filing, re-recording and refiling of Liens under the Security Documents on Article 9 Collateral as
is necessary to maintain the perfection of such Liens, and reciting the details of such action or
(B) stating that, in the Opinion of such Counsel, no such action is necessary to maintain the
perfection of such Liens. For purposes of the foregoing, the term Article 9 Collateral shall mean
Collateral with respect to which a Lien thereon may be perfected by the filing of a UCC-1 financing
statement pursuant to the Uniform Commercial Code as adopted in any applicable jurisdiction.
89
SECTION 11.03.
Release of Collateral.
Collateral may be released from the security
interest and Liens created by the Security Documents at any time or from time to time in accordance
with the provisions of the Security Documents, the Intercreditor Agreement or as provided hereby.
Upon the request of the Company pursuant to an Officers Certificate certifying that all conditions
precedent hereunder have been met, and without the consent of any Holder, the Company and the
Subsidiary Guarantors will be entitled to a release of property and other assets included in the
Collateral from the Liens securing the Second Lien Obligations, and the Second Lien Collateral
Agent shall promptly execute and deliver such documents and instruments as the Company and the
Subsidiary Guarantors may reasonably request to evidence the release of such Liens at the Companys
sole cost and expense and without the consent of any Holder of the Securities, under any one or
more of the following circumstances:
(1) in whole, upon satisfaction and discharge of the Companys obligations under this
Indenture in accordance with Article 8;
(2) in whole, upon a legal defeasance or covenant defeasance as described in
accordance with Article 8;
(3) in part, as to any property or asset constituting Collateral (A) if the Liens on
the Collateral securing the First Lien Obligations are released (except if such release is
in connection with the Discharge of the First Lien Obligations), (B) to enable the Company
or any Restricted Subsidiary to consummate the sale, lease, transfer or other disposition of
such property or assets to the extent not prohibited under Section 4.06, (C) that is owned
by a Subsidiary Guarantor to the extent such Subsidiary Guarantor has been released from its
Subsidiary Guaranty in accordance with Article 10 or (D) otherwise in accordance with, and
as expressly provided for under, this Indenture; or
(4) pursuant to any amendment or supplement to this Indenture or to the Securities
effected in accordance with Article 9.
SECTION 11.04.
After-Acquired Property.
From and after the Issue Date, if the Company
or any Subsidiary Guarantor acquires certain After-Acquired Property, it shall as soon as
practicable after the acquisition thereof execute, as applicable, and deliver such mortgages, deeds
of trust, security agreements, pledge agreements, lien waivers, control agreements, financing
statements and Officers Certificates and Opinions of Counsel as shall be required under the
Security Documents to vest in the Second Lien Collateral Agent a perfected security interest in
such After-Acquired Property to the extent such After-Acquired Property constitutes Collateral, and
thereupon all provisions of this Indenture, the Intercreditor Agreement or the Security Documents
relating to the Collateral shall be deemed to relate to such After-Acquired Property to the same
extent and with the same force and effect.
SECTION 11.05.
Permitted Releases Not to Impair Lien; Trust Indenture Act
Requirements.
The release of any Collateral from the terms hereof and of the Security
Documents or the release of, in whole or in part, the Liens created by the Security Documents, will
not be deemed to impair the security under this Indenture in contravention of the provisions hereof
if and to the extent the Collateral or Liens are released pursuant to (x) the applicable Security
Documents and the terms of this Article 11 or (y) the Intercreditor Agreement. The
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Trustee and each of the Holders acknowledge that a release of Collateral or a Lien strictly in
accordance with the terms of the Security Documents and the Intercreditor Agreement and of this
Article 11 will not be deemed for any purpose to be an impairment of the Lien on the Collateral in
contravention of the terms of this Indenture. To the extent applicable, the Company and each
obligor on the Securities shall cause TIA § 313(b), relating to reports, and TIA § 314(d), relating
to the release of property or securities from the Lien hereof and of the Security Documents, to be
complied with. Any certificate or opinion required by § 314(d) of the TIA may be made by an
Officer, except in cases where § 314(d) of the TIA requires that such certificate or opinion be
made by an independent Person, which Person shall be an independent engineer, appraiser or other
expert selected or approved by the Trustee in the exercise of reasonable care.
SECTION 11.06.
Reports, Certificates and Opinions.
(a) The Company will not be
required to comply with TIA § 314(d) with respect to any of the following:
(1) cash payments (including for the scheduled repayment of Indebtedness) in the
ordinary course of business;
(2) sales or other dispositions of inventory in the ordinary course of business;
(3) collections, sales or other dispositions of accounts receivable in the ordinary
course of business; and
(4) sales or other dispositions in the ordinary course of business of any property the
use of which is no longer necessary or desirable in, and is not material to, the conduct of
the business of the Company and its Subsidiaries;
provided
,
however
, the Companys right to rely on the above will be conditioned
upon the Companys delivering to the Trustee, within 30 calendar days following the end of each
six-month period beginning on April 1 and October 1 of each year, an Officers Certificate to the
effect that all releases during such six-month period in respect of which the Company did not
comply with TIA § 314(d) in reliance on the above were made in the ordinary course of business. To
the extent the Indenture is qualified under the TIA and to the extent applicable, the Company will
otherwise comply with the provisions of TIA § 314.
SECTION 11.07.
Use of Trust Monies.
To the extent received by the Trustee pursuant to
the provisions of any Intercreditor Agreement, this Indenture, the Security Documents or otherwise,
all Trust Monies shall be held by the Trustee as a part of the Collateral securing the Securities
and, so long as no Event of Default has occurred and is continuing, shall either (i) be released as
contemplated by Section 4.06 if such Trust Monies represent Net Cash Proceeds or (ii) to the extent
not required to be applied pursuant to Section 4.06, at the direction of the Company be applied by
the Trustee from time to time to the payment of the principal of, premium, if any, and interest on
any Securities at maturity or upon redemption or retirement, or to the purchase of Securities upon
tender or in the open market or otherwise, in each case in compliance with this Indenture. The
Trustee shall be entitled to apply any Trust Monies to cure any Event of Default. Trust Monies
deposited with the Trustee shall be invested in Cash Equivalents pursuant to the direction of the
Company and, so long as no Default has occurred
91
and is continuing, the Company shall be entitled to any interest or dividends accrued, earned
or paid on such Cash Equivalents.
SECTION 11.08.
Suits to Protect the Collateral.
Subject to the terms, conditions and
provisions of Article 7 hereof and the Intercreditor Agreement, the Trustee in its sole discretion
and without the consent of the Holders, on behalf of the Holders, may or may direct the Second Lien
Collateral Agent to take all actions it deems necessary or appropriate in order to: (i) enforce
any of the terms of the Security Documents; and (ii) collect and receive any and all amounts
payable in respect of the Obligations of the Company hereunder.
Subject to the terms, conditions and provisions of the Security Documents and the
Intercreditor Agreement, the Trustee shall have power to institute and to maintain such suits and
proceedings as it may deem expedient to prevent any impairment of the Collateral by any acts which
may be unlawful or in violation of any of the Security Documents or this Indenture, and such suits
and proceedings as the Trustee, in its sole discretion, may deem expedient to preserve or protect
its interests and the interests of the Holders in the Collateral (including power to institute and
maintain suits or proceedings to restrain the enforcement of or compliance with any legislative or
other governmental enactment, rule or order that may be unconstitutional or otherwise invalid if
the enforcement of, or compliance with, such enactment, rule or order would impair the Liens on the
Collateral or be prejudicial to the interests of the Holders or the Trustee).
SECTION 11.09.
Authorization of Receipt of Funds by the Trustee Under the Security
Documents.
Subject to the terms, conditions and provisions of the Intercreditor Agreement, the
Trustee is authorized to receive any funds for the benefit of the Holders distributed under the
Security Documents, and to make further distributions of such funds to the Holders according to the
provisions of this Indenture.
SECTION 11.10.
Trustee and Second Lien Collateral Agent.
(a) Each of the Trustee and
the Second Lien Collateral Agent is authorized and directed to (i) enter into the Security
Documents, (ii) enter into the Intercreditor Agreement, (iii) bind the Holders on the terms as set
forth in the Security Documents and the Intercreditor Agreement and (iv) perform and observe its
obligations under the Security Documents and the Intercreditor Agreement;
provided
,
however
, that if any of the provisions of the Security Documents limit, qualify or conflict
with the duties imposed by the provisions of the TIA, the TIA shall control.
(b) The Second Lien Collateral Agent is authorized and directed to execute any amendment,
modification, supplement, restatement or extension of the Intercreditor Agreement or any Security
Document authorized pursuant to Article 9 if such amendment, modification, supplement, restatement
or extension, as applicable, does not adversely affect the rights, duties, liabilities or
immunities of the Second Lien Collateral Agent. If it does, the Second Lien Collateral Agent may
but need not sign it. In signing such an amendment, modification, supplement, restatement or
extension, the Second Lien Collateral Agent shall be entitled to receive indemnity reasonably
satisfactory to it and to receive, and, in the absence of bad faith, negligence or willful
misconduct on its part, shall be fully protected in relying upon, an Officers Certificate stating
that such amendment, modification, supplement, restatement or extension, as applicable, is
authorized or permitted by this Indenture.
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(c) If the Company or any Subsidiary Guarantor (i) incurs First Lien Obligations that are
permitted to be Incurred pursuant to this Indenture at any time when no intercreditor agreement is
in effect or at any time when Indebtedness constituting First Lien Obligations entitled to the
benefit of an existing Intercreditor Agreement is concurrently retired, and (ii) delivers to the
Trustee and the Second Lien Collateral Agent an Officers Certificate so stating and requesting the
Trustee or the Second Lien Collateral Agent to enter into an intercreditor agreement (consistent
with the 2011 Intercreditor Agreement) in favor of a designated agent or representative for the
holders of the First Lien Obligations so Incurred, each of the Trustee and the Second Lien
Collateral Agent shall (and is hereby authorized and directed to) enter into such intercreditor
agreement, bind the Holders on the terms set forth therein and perform and observe its obligations
thereunder.
(d) The Trustee shall not be deemed to owe any fiduciary duty to any First Priority Secured
Party. With respect to the First Priority Secured Parties, the Trustee undertakes to perform or to
observe only such of its covenants or obligations as are specifically set forth in this Article 11
and the Intercreditor Agreement, and no implied covenants or obligations with respect to the First
Priority Secured Parties shall be read into this Indenture against the Trustee.
(e) Beyond the exercise of reasonable care in the custody thereof, the Trustee shall have no
duty as to any Collateral in its possession or control or in the possession or control of any agent
or bailee or any income thereon or as to preservation of rights against prior parties or any other
rights pertaining thereto, and the Trustee shall not be responsible for filing any financing or
continuation statements or recording any documents or instruments in any public office at any time
or times or otherwise perfecting or maintaining the perfection of any security interest in the
Collateral, unless requested in writing by the Company. The Trustee shall be deemed to have
exercised reasonable care in the custody of the Collateral in its possession if the Collateral is
accorded treatment substantially equal to that which it accords its own property and shall not be
liable or responsible for any loss or diminution in the value of any of the Collateral, by reason
of the act or omission of any carrier, forwarding agency or other agent or bailee selected by the
Trustee in good faith.
Article 12
Miscellaneous
SECTION 12.01.
Trust Indenture Act Controls.
If any provision of this Indenture
limits, qualifies or conflicts with another provision which is required to be included in this
Indenture by the TIA, the required provision shall control.
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SECTION 12.02.
Notices.
Any notice or communication shall be in writing and delivered
in person or mailed by first-class mail addressed as follows:
if to the Company or any Subsidiary Guarantor:
Commercial Vehicle Group, Inc.
7800 Walton Parkway
New Albany, OH 43054
Attention: Chad M. Utrup, Chief Financial Officer
if to the Trustee:
U.S. Bank National Association
60 Livingston Avenue
EP-MN-WS3C
St. Paul, MN 55107-2292
Attention: Donald Hurrelbrink, Vice President
The Company, any Subsidiary Guarantor or the Trustee by notice to the other may designate
additional or different addresses for subsequent notices or communications.
Any notice or communication mailed to a Securityholder shall be mailed to the Securityholder
at the Securityholders address as it appears on the registration books of the Registrar and shall
be sufficiently given if so mailed within the time prescribed.
Failure to mail a notice or communication to a Securityholder or any defect in it shall not
affect its sufficiency with respect to other Securityholders. If a notice or communication is
mailed in the manner provided above, it is duly given, whether or not the addressee receives it.
Notwithstanding anything to the contrary herein, the Trustee may make delivery of any notices
required to be made hereunder to the Depository or its nominee because of the Depositorys or its
nominees status as a Holder by electronic mail in accordance with accepted practices at the
Depository.
SECTION 12.03.
Communication by Holders with Other Holders.
Securityholders may
communicate pursuant to TIA § 312(b) with other Securityholders with respect to their rights under
this Indenture or the Securities. The Company, any Subsidiary Guarantor, the Trustee, the
Registrar and anyone else shall have the protection of TIA § 312(c).
SECTION 12.04.
Certificate and Opinion as to Conditions Precedent.
Upon any request
or application by the Company to the Trustee to take or refrain from taking any action under this
Indenture, the Company shall furnish to the Trustee:
(1) an Officers Certificate in form and substance reasonably satisfactory to the
Trustee stating that, in the opinion of the signers, all conditions precedent, if any,
provided for in this Indenture relating to the proposed action have been complied with; and
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(2) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
stating that, in the opinion of such counsel, all such conditions precedent have been
complied with.
SECTION 12.05.
Statements Required in Certificate or Opinion.
Each certificate or
opinion with respect to compliance with a covenant or condition provided for in this Indenture
shall include:
(1) a statement that the individual making such certificate or opinion has read such
covenant or condition;
(2) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based;
(3) a statement that, in the opinion of such individual, he has made such examination
or investigation as is necessary to enable him to express an informed opinion as to whether
or not such covenant or condition has been complied with; and
(4) a statement as to whether or not, in the opinion of such individual, such covenant
or condition has been complied with.
SECTION 12.06.
When Securities Disregarded.
In determining whether the Holders of the
required principal amount of Securities have concurred in any direction, waiver or consent,
Securities owned by the Company or by any Person directly or indirectly controlling or controlled
by or under direct or indirect common control with the Company shall be disregarded and deemed not
to be outstanding, except that, for the purpose of determining whether the Trustee shall be
protected in relying on any such direction, waiver or consent, only Securities which the Trustee
knows are so owned shall be so disregarded. Also, subject to the foregoing, only Securities
outstanding at the time shall be considered in any such determination.
SECTION 12.07.
Rules by Trustee, Paying Agent and Registrar.
The Trustee may make
reasonable rules for action by or a meeting of Securityholders. The Registrar and the Paying Agent
may make reasonable rules for their functions.
SECTION 12.08.
Legal Holidays.
If a payment date is a Legal Holiday, payment shall be
made on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the
intervening period. If a regular record date is a Legal Holiday, the record date shall not be
affected.
SECTION 12.09.
Governing Law.
This Indenture, the Securities and the Subsidiary
Guaranties shall be governed by, and construed in accordance with, the laws of the State of New
York, without giving effect to principles of conflicts of laws.
SECTION 12.10.
WAIVER OF JURY TRIAL.
EACH OF THE COMPANY, THE SUBSIDIARY GUARANTORS
AND THE TRUSTEE, IN ITS CAPACITY AS TRUSTEE, HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN
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ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE SECURITIES OR THE
TRANSACTIONS CONTEMPLATED HEREBY.
SECTION 12.11.
No Recourse Against Others.
No director, officer, employee,
incorporator or stockholder, as such, of the Company or any Subsidiary Guarantor shall have any
liability for any obligations of the Company or any Subsidiary Guarantor under the Securities, any
Subsidiary Guaranty, the Security Documents or this Indenture or for any claim based on, in respect
of, or by reason of such obligations or their creation. By accepting a Security, each
Securityholder shall waive and release all such liability. The waiver and release shall be part of
the consideration for the issue of the Securities.
SECTION 12.12.
Successors.
All agreements of the Company in this Indenture and the
Securities shall bind its successors. All agreements of the Trustee in this Indenture shall bind
its successors.
SECTION 12.13.
Multiple Originals.
The parties may sign any number of copies of this
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement. One signed copy is enough to prove this Indenture.
SECTION 12.14.
Table of Contents; Headings.
The table of contents, cross-reference
sheet and headings of the Articles and Sections of this Indenture have been inserted for
convenience of reference only, are not intended to be considered a part hereof and shall not modify
or restrict any of the terms or provisions hereof.
96
IN WITNESS WHEREOF, the parties have caused this Indenture to be duly executed as of the date
first written above.
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COMMERCIAL VEHICLE GROUP, INC.
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By
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/s/ Chad M. Utrup
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Name:
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Chad M. Utrup
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Title:
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Chief Financial Officer
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TRIM SYSTEMS, INC.
TRIM SYSTEMS OPERATING CORP.
NATIONAL SEATING COMPANY
CVS HOLDINGS, INC.
SPRAGUE DEVICES, INC.
CVG MANAGEMENT CORPORATION
CVG LOGISTICS, LLC
MAYFLOWER VEHICLE SYSTEMS, LLC
MONONA CORPORATION
MONONA WIRE CORPORATION
MONONA (MEXICO) HOLDINGS LLC
CABARRUS PLASTICS, INC.
CVG EUROPEAN HOLDINGS, LLC
CVG OREGON, LLC
CVG CS LLC
CVG ALABAMA, LLC
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By
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/s/ Chad M. Utrup
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Name:
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Chad M. Utrup
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Title:
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Chief Financial Officer
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IN WITNESS WHEREOF, the parties have caused this Indenture to be duly executed as of the date
first written above.
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U.S. BANK NATIONAL ASSOCIATION,
as Trustee and (for purposes of Article 11 only)
as Second Lien Collateral Agent
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By
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/s/ Donald T. Hurrelbrink
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Name:
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Donald T. Hurrelbrink
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Title:
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Vice President
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RULE 144A/REGULATION S APPENDIX
PROVISIONS RELATING TO INITIAL SECURITIES,
PRIVATE EXCHANGE SECURITIES
AND EXCHANGE SECURITIES
1. Definitions
1.1
Definitions
For the purposes of this Appendix the following terms shall have the meanings indicated below:
Additional Securities means Securities (other than the Initial Securities issued on the
Issue Date and Securities issued in exchange therefor) issued under the Indenture, as part of the
same series as the Initial Securities issued on the Issue Date.
Applicable Procedures means, with respect to any transfer or transaction prior to the
expiration of the Restricted Period and involving a Regulation S Global Security or beneficial
interest therein, the rules and procedures of the Depository for such a transfer or transaction, to
the extent applicable and as in effect from time to time.
Definitive Security means a certificated Initial Security or Exchange Security or Private
Exchange Security bearing, if required, the appropriate restricted securities legend set forth in
Section 2.3(e).
Depository means The Depository Trust Company, its nominees and their respective successors.
Exchange Securities means (1) the 7.875% Senior Secured Notes Due 2019 issued pursuant to
the Indenture in connection with a Registered Exchange Offer pursuant to a Registration Rights
Agreement and (2) Additional Securities, if any, issued pursuant to a registration statement filed
with the SEC under the Securities Act.
Initial Purchaser
means (1) with respect to the Initial Securities issued on the Issue Date,
Credit Suisse Securities (USA) LLC and (2) with respect to each issuance of Additional Securities,
the Persons purchasing such Additional Securities under the related Purchase Agreement.
Initial Securities means (1) $250.0 million aggregate principal amount of 7.875% Senior
Secured Notes Due 2019 issued on the Issue Date and (2) Additional Securities, if any, issued in a
transaction exempt from the registration requirements of the Securities Act.
Private Exchange means the offer by the Company, pursuant to a Registration Rights
Agreement, to the Initial Purchaser to issue and deliver to the Initial Purchaser, in exchange for
the Initial Securities held by the Initial Purchaser as part of its initial distribution, a like
aggregate principal amount of Private Exchange Securities.
Private Exchange Securities means any 7.875% Senior Secured Notes Due 2019 issued in
connection with a Private Exchange.
Purchase Agreement means (1) with respect to the Initial Securities issued on the Issue
Date, the Purchase Agreement dated April 13, 2011, among the Company, the Subsidiary Guarantors and
the Initial Purchaser, and (2) with respect to each issuance of Additional Securities, the purchase
agreement or underwriting agreement among the Company, the Subsidiary Guarantors and the Persons
purchasing such Additional Securities.
QIB means a qualified institutional buyer as defined in Rule 144A.
Registered Exchange Offer means the offer by the Company, pursuant to a Registration Rights
Agreement, to certain Holders of Initial Securities, to issue and deliver to such Holders, in
exchange for the Initial Securities, a like aggregate principal amount of Exchange Securities
registered under the Securities Act.
Registration Rights Agreement means (1) with respect to the Initial Securities issued on the
Issue Date, the Registration Rights Agreement dated April 26, 2011, among the Company, the
Subsidiary Guarantors and the Initial Purchaser and (2) with respect to each issuance of Additional
Securities issued in a transaction exempt from the registration requirements of the Securities Act,
the registration rights agreement, if any, among the Company, the Subsidiary Guarantors and the
Persons purchasing such Additional Securities under the related Purchase Agreement.
Restricted Period means, with respect to any Securities, the period of 40 consecutive days
beginning on and including the later of (i) the day on which such Securities are first offered to
Persons other than distributors (as defined in Regulation S under the Securities Act) in reliance
on Regulation S and (ii) the issue date with respect to such Securities.
Rule 144A Securities means all Securities offered and sold to QIBs in reliance on Rule 144A.
Securities means the Initial Securities, the Exchange Securities and the Private Exchange
Securities, treated as a single class.
Securities Act means the Securities Act of 1933, as amended.
Securities Custodian means the custodian with respect to a Global Security (as appointed by
the Depository), or any successor Person thereto and shall initially be the Trustee.
Shelf Registration Statement means the registration statement issued by the Company in
connection with the offer and sale of Initial Securities or Private Exchange Securities pursuant to
a Registration Rights Agreement.
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Transfer Restricted Securities means Securities that bear or are required to bear the legend
relating to restrictions on transfer relating to the Securities Act set forth in Section 2.3(e)
hereto.
1.2
Other Definitions
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Defined in
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Term
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Section:
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Agent Members
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2.1
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(b)
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Clearstream, Luxembourg
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2.1
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(a)
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Euroclear
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2.1
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(a)
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Global Securities
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2.1
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(a)
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Regulation S
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2.1
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(a)
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Regulation S Global Security
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2.1
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(a)
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Regulation S Permanent Global Security
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2.1
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(a)
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Regulation S Temporary Global Security
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2.1
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(a)
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Restricted Securities Legend
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2.3
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(e)
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Rule 144A
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2.1
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(a)
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Rule 144A Global Security
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2.1
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(a)
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2.
The Securities.
2.1 (a)
Form and Dating.
The Initial Securities were offered and sold by the Company
pursuant to a Purchase Agreement. The Initial Securities will be resold initially only to (i) QIBs
in reliance on Rule 144A under the Securities Act (Rule 144A) and (ii) Persons other than U.S.
Persons (as defined in Regulation S) in reliance on Regulation S under the Securities Act
(Regulation S). Initial Securities may thereafter be transferred to, among others, QIBs and
purchasers in reliance on Regulation S, subject to the restrictions on transfer set forth herein.
Initial Securities initially resold pursuant to Rule 144A shall be issued initially in the form of
one or more securities in registered, global form (collectively, the Rule 144A Global Security);
and Initial Securities initially resold pursuant to Regulation S shall be issued initially in the
form of one or more temporary securities in registered, global form (collectively, the Regulation
S Temporary Global Security), in each case without interest coupons and with the global securities
legend and the applicable restricted securities legend set forth in Exhibit 1 hereto, which shall
be deposited on behalf of the purchasers of the Initial Securities represented thereby with the
Securities Custodian and registered in the name of the Depository or a nominee of the Depository,
duly executed by the Company and authenticated by the Trustee as provided in the Indenture. Until
the expiration of the Restricted Period, beneficial ownership interests in the Regulation S
Temporary Global Securities may be held only through Euroclear Bank S.A./N.V., as operator of the
Euroclear System (Euroclear), and Clearstream Banking, Société Anonyme (Clearstream,
Luxembourg), as indirect participants in DTC, unless transferred to a Person that takes delivery
through a Rule 144A Global Security in accordance with the certification requirements described in
the second succeeding paragraph below. Except as set forth in this Section 2.1(a), beneficial
ownership interests in the Regulation S
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Temporary Global Security will not be exchangeable for interests in the Rule 144A Global
Security or any other Security prior to the expiration of the Restricted Period and then, after the
expiration of the Restricted Period, may be exchanged for one or more permanent securities in
registered, global form without interest coupons (collectively, the Regulation S Permanent Global
Security and, together with the Regulation S Temporary Global Security, the Regulation S Global
Security) or a Definitive Security upon (i) delivery to DTC of certification of compliance with
the transfer restrictions applicable to the Securities and pursuant to Regulation S as provided in
the Indenture, (ii) a certification in form satisfactory to the Trustee that beneficial ownership
interests in such Regulation S Temporary Global Security are owned either by non-U.S. persons or
U.S. persons who purchased such interests in a transaction that did not require registration under
the Securities Act and (iii) in the case of an exchange for Definitive Securities, in compliance
with the requirements described in Section 2.4(a) of this Appendix.
Definitive Securities may not be exchanged for beneficial interests in any Global Security
unless the transferor first delivers to the Trustee a written certificate (in the form provided in
the Indenture) to the effect that such transfer will comply with the appropriate transfer
restrictions applicable to such Securities.
Prior to the expiration of the Restricted Period, beneficial interests in Regulation S Global
Securities may be exchanged for interests in Rule 144A Global Securities only if (1) such exchange
occurs in connection with a transfer of Securities pursuant to Rule 144A and (2) the transferor of
the beneficial interest in the Regulation S Global Security first delivers to the Trustee a written
certificate (in the form provided in the Indenture) to the effect that the beneficial interest in
the Regulation S Global Security is being transferred to a Person (a) whom the transferor
reasonably believes to be a QIB, (b) purchasing for its own account or the account of a QIB in a
transaction meeting the requirements of Rule 144A, and (c) in accordance with all applicable
securities laws of the states of the United States and other jurisdictions and that, if such
transfer occurs prior to the expiration of the Restricted Period, the interest transferred will be
held immediately thereafter through Euroclear or Clearstream, Luxembourg.
Beneficial interests in a Rule 144A Global Security may be transferred to a Person who takes
delivery in the form of an interest in a Regulation S Global Security, whether before or after the
expiration of the Restricted Period, only if the transferor first delivers to the Trustee a written
certificate (in the form provided in the Indenture) to the effect that such transfer is being made
in accordance with Rule 903 or 904 of Regulation S or Rule 144 (if available).
The Rule 144A Global Security, the Regulation S Global Security and any Global Securities in
fully registered form without the Restricted Securities Legend are collectively referred to herein
as Global Securities. The aggregate principal amount of the Global Securities may from time to
time be increased or decreased by adjustments made on the records of the Trustee and the Depository
or its nominee as hereinafter provided.
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(b)
Book-Entry Provisions.
This Section 2.1(b) shall apply only to a Global Security
deposited with or on behalf of the Depository.
The Company shall execute and the Trustee shall, in accordance with this Section 2.1(b),
authenticate and deliver initially one or more Global Securities that (a) shall be registered in
the name of the Depository for such Global Security or Global Securities or the nominee of such
Depository and (b) shall be delivered by the Trustee to such Depository or pursuant to such
Depositorys instructions or held by the Trustee as custodian for the Depository.
Members of, or participants in, the Depository (Agent Members) shall have no rights under
the Indenture with respect to any Global Security held on their behalf by the Depository or by the
Trustee as the custodian of the Depository or under such Global Security, and the Company, the
Trustee and any agent of the Company or the Trustee shall be entitled to treat the Depository as
the absolute owner of such Global Security for all purposes whatsoever. Notwithstanding the
foregoing, nothing herein shall prevent the Company, the Trustee or any agent of the Company or the
Trustee from giving effect to any written certification, proxy or other authorization furnished by
the Depository or impair, as between the Depository and its Agent Members, the operation of
customary practices of such Depository governing the exercise of the rights of a holder of a
beneficial interest in any Global Security.
(c)
Definitive Securities.
Except as provided in this Section 2.1 or Section 2.3 or
2.4, owners of beneficial interests in Global Securities shall not be entitled to receive physical
delivery of Definitive Securities.
2.2
Authentication.
The Trustee shall authenticate and deliver: (1) on the Issue
Date, an aggregate principal amount of $250.0 million of 7.875% Senior Secured Notes Due 2019, (2)
any Additional Securities for an original issue in an aggregate principal amount specified in the
written order of the Company pursuant to Section 2.02 of the Indenture
,
(3) Exchange Securities or
Private Exchange Securities for issue only in a Registered Exchange Offer or a Private Exchange,
respectively, pursuant to a Registration Rights Agreement, for a like principal amount of Initial
Securities, and (4) a Global Security without the Restricted Securities Legend pursuant to Section
2.3(e) of this Appendix, in each case upon a written order of the Company signed by an Officer.
Such order shall specify the amount of the Securities to be authenticated and the date on which the
original issue of Securities is to be authenticated and, in the case of any issuance of Additional
Securities pursuant to Section 2.13 of the Indenture, shall certify that such issuance is in
compliance with Sections 4.03 and 4.10 of the Indenture.
2.3
Transfer and Exchange.
(a)
Transfer and Exchange of Definitive Securities
. When Definitive Securities are
presented to the Registrar with a request:
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(x)
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to register the transfer of such Definitive Securities; or
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(y)
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to exchange such Definitive Securities for an equal principal
amount of Definitive Securities of other authorized denominations,
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the Registrar shall register the transfer or make the exchange as requested if its reasonable
requirements for such transaction are met;
provided
,
however
, that the Definitive
Securities surrendered for transfer or exchange:
(i) shall be duly endorsed or accompanied by a written instrument of transfer in form
reasonably satisfactory to the Company and the Registrar, duly executed by the Holder
thereof or its attorney duly authorized in writing; and
(ii) if such Definitive Securities are required to bear a restricted securities
legend, they are being transferred or exchanged pursuant to an effective registration
statement under the Securities Act, pursuant to Section 2.3(b) or pursuant to clause (A),
(B) or (C) below, and are accompanied by the following additional information and
documents, as applicable:
(A) if such Definitive Securities are being delivered to the Registrar by a
Holder for registration in the name of such Holder, without transfer, a
certification from such Holder to that effect; or
(B) if such Definitive Securities are being transferred to the Company, a
certification to that effect; or
(C) if such Definitive Securities are being transferred (x) pursuant to an
exemption from registration in accordance with Rule 144A, Regulation S or Rule 144
under the Securities Act; or (y) in reliance upon another exemption from the
requirements of the Securities Act: (i) a certification to that effect (in the form
set forth on the reverse of the Security) and (ii) if the Company so requests, an
opinion of counsel or other evidence reasonably satisfactory to it as to the
compliance with the restrictions set forth in the legend set forth in Section
2.3(e)(i).
(b)
Restrictions on Transfer of a Definitive Security for a Beneficial Interest in a
Global Security.
A Definitive Security may not be exchanged for a beneficial interest in a
Rule 144A Global Security or a Regulation S Global Security except upon satisfaction of the
requirements set forth below. Upon receipt by the Trustee of a Definitive Security, duly endorsed
or accompanied by appropriate instruments of transfer, in form satisfactory to the Trustee,
together with:
(i) certification, in the form set forth on the reverse of the Security, that
such Definitive Security is either (A) being transferred to a QIB in accordance
with Rule 144A or (B) being transferred after expiration of the Restricted Period
by a Person who initially purchased such Security in reliance on Regulation S to a
buyer who elects to hold its interest in such Security in the form of a beneficial
interest in the Regulation S Global Security; and
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(ii) written instructions directing the Trustee to make, or to direct the
Securities Custodian to make, an adjustment on its books and records with respect
to such Rule 144A Global Security (in the case of a transfer pursuant to clause
(b)(i)(A)) or Regulation S Global Security (in the case of a transfer pursuant to
clause (b)(i)(B)) to reflect an increase in the aggregate principal amount of the
Securities represented by the Rule 144A Global Security or Regulation S Global
Security, as applicable, such instructions to contain information regarding the
Depository account to be credited with such increase,
then the Trustee shall cancel such Definitive Security and cause, or direct the Securities
Custodian to cause, in accordance with the standing instructions and procedures existing between
the Depository and the Securities Custodian, the aggregate principal amount of Securities
represented by the Rule 144A Global Security or Regulation S Global Security, as applicable, to be
increased by the aggregate principal amount of the Definitive Security to be exchanged and shall
credit or cause to be credited to the account of the Person specified in such instructions a
beneficial interest in the Rule 144A Global Security or Regulation S Global Security, as
applicable, equal to the principal amount of the Definitive Security so canceled. If no Rule 144A
Global Securities or Regulation S Global Securities, as applicable, are then outstanding, the
Company shall issue and the Trustee shall authenticate, upon written order of the Company in the
form of an Officers Certificate of the Company, a new Rule 144A Global Security or Regulation S
Global Security, as applicable, in the appropriate principal amount.
(c)
Transfer and Exchange of Global Securities.
(i) The transfer and exchange of Global Securities or beneficial interests
therein shall be effected through the Depository, in accordance with the Indenture
(including applicable restrictions on transfer set forth herein, if any) and the
procedures of the Depository therefor. A transferor of a beneficial interest in a
Global Security shall deliver to the Registrar a written order given in accordance
with the Depositorys procedures containing information regarding the participant
account of the Depository to be credited with a beneficial interest in the Global
Security. The Registrar shall, in accordance with such instructions instruct the
Depository to credit to the account of the Person specified in such instructions a
beneficial interest in the Global Security and to debit the account of the Person
making the transfer the beneficial interest in the Global Security being
transferred.
(ii) If the proposed transfer is a transfer of a beneficial interest in one
Global Security to a beneficial interest in another Global Security, the Registrar
shall reflect on its books and records the date and an increase in the principal
amount of the Global Security to which such interest is being transferred in an
amount equal to the principal amount of the interest to be so transferred, and the
Registrar shall reflect on its books and records
7
the date and a corresponding decrease in the principal amount of the Global
Security from which such interest is being transferred.
(iii) Notwithstanding any other provisions of this Appendix (other than the
provisions set forth in Section 2.4), a Global Security may not be transferred as a
whole except by the Depository to a nominee of the Depository or by a nominee of
the Depository to the Depository or another nominee of the Depository or by the
Depository or any such nominee to a successor Depository or a nominee of such
successor Depository.
(iv) In the event that Global Security is exchanged for Definitive Securities
pursuant to Section 2.4 of this Appendix, prior to the consummation of a Registered
Exchange Offer or the effectiveness of a Shelf Registration Statement with respect
to such Securities, such Securities may be exchanged only in accordance with such
procedures as are substantially consistent with the provisions of this Section 2.3
(including the certification requirements set forth on the reverse of the Initial
Securities intended to ensure that such transfers comply with Rule 144A, Regulation
S or another applicable exemption under the Securities Act, as the case may be) and
such other procedures as may from time to time be adopted by the Company.
(d)
Restrictions on Transfer of Regulation S Global Securities.
During the Restricted
Period, beneficial ownership interests in Regulation S Global Securities may only be sold, pledged
or transferred in accordance with the Applicable Procedures and only (i) to the Company, (ii) in an
offshore transaction in accordance with Regulation S or (iii) pursuant to an effective registration
statement under the Securities Act, in each case in accordance with any applicable securities laws
of any State of the United States.
(e)
Legend.
(i) Except as permitted by the following paragraphs (ii), (iii) and (iv), each
Security certificate evidencing the Global Securities (and all Securities issued in
exchange therefor or in substitution thereof), in the case of Securities offered
other than in reliance on Regulation S, shall bear a legend in substantially the
following form (together with the legend in the second paragraph of this Section
2.3(e)(i), the Restricted Securities Legend):
THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION
EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933,
AS AMENDED (THE SECURITIES ACT), AND THIS SECURITY MAY NOT BE OFFERED,
SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN
APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS SECURITY IS
8
HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE
EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED
BY RULE 144A THEREUNDER.
THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A)
THIS SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED,
ONLY (I) TO THE COMPANY, (II) IN THE UNITED STATES TO A PERSON WHOM THE
SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED
IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A, (III) OUTSIDE THE UNITED STATES IN AN OFFSHORE
TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (IV)
PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), OR (V) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF
CASES (I) THROUGH (V) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF
ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH
SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY
FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.
Each certificate evidencing a Security offered in reliance on Regulation S shall bear
a legend in substantially the following form:
THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION
ORIGINALLY EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933,
AS AMENDED (THE SECURITIES ACT), AND MAY NOT BE TRANSFERRED IN THE
UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, ANY U.S. PERSON
EXCEPT PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES
LAWS. TERMS USED ABOVE HAVE THE MEANINGS GIVEN TO THEM IN REGULATION S
UNDER THE SECURITIES ACT.
9
Each Definitive Security shall also bear the following additional legend:
IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR
AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH
TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER
COMPLIES WITH THE FOREGOING RESTRICTIONS.
(ii) Upon any sale or transfer of a Transfer Restricted Security (including
any Transfer Restricted Security represented by a Global Security) pursuant to Rule
144 under the Securities Act, the Registrar shall permit the transferee thereof to
exchange such Transfer Restricted Security for a certificated Security that does
not bear the legend set forth above and rescind any restriction on the transfer of
such Transfer Restricted Security, if the transferor thereof certifies in writing
to the Registrar that such sale or transfer was made in reliance on Rule 144 (such
certification to be in the form set forth on the reverse of the Security); and to
the extent permitted by law at any time after one year has elapsed following the
Issue Date, if the Securities are freely tradeable without restriction pursuant to
Rule 144 under the Securities Act (or successor rule), the Registrar shall permit
the removal of the Restricted Securities Legend and rescind any restriction on the
transfer of such Transfer Restricted Security if the Company delivers to the
Trustee an opinion reasonably satisfactory to the Trustee that the removal of the
Restricted Securities Legend is in compliance with the Securities Act.
(iii) After a transfer of any Initial Securities or Private Exchange
Securities pursuant to and during the period of the effectiveness of a Shelf
Registration Statement with respect to such Initial Securities or Private Exchange
Securities, as the case may be, all requirements pertaining to legends on such
Initial Security or such Private Exchange Security will cease to apply, the
requirements requiring any such Initial Security or such Private Exchange Security
issued to certain Holders be issued in global form will cease to apply, and a
certificated Initial Security or Private Exchange Security or an Initial Security
or Private Exchange Security in global form, in each case without restrictive
transfer legends, will be available to the transferee of the Holder of such Initial
Securities or Private Exchange Securities upon exchange of such transferring
Holders certificated Initial Security or Private Exchange Security or directions
to transfer such Holders interest in the Global Security, as applicable.
(iv) Upon the consummation of a Registered Exchange Offer with respect to the
Initial Securities, all requirements pertaining to such Initial Securities that
Initial Securities issued to certain Holders be issued in global form will still
apply with respect to Holders of such Initial Securities that do not exchange their
Initial Securities, and Exchange
10
Securities in certificated or global form, in each case without the restricted
securities legend set forth in Exhibit 1 hereto will be available to Holders that
exchange such Initial Securities in such Registered Exchange Offer.
(v) Upon the consummation of a Private Exchange with respect to the Initial
Securities, all requirements pertaining to such Initial Securities that Initial
Securities issued to certain Holders be issued in global form will still apply with
respect to Holders of such Initial Securities that do not exchange their Initial
Securities, and Private Exchange Securities in global form with the global
securities legend and the applicable restricted securities legend set forth in
Exhibit 1 hereto will be available to Holders that exchange such Initial Securities
in such Private Exchange.
(f)
Cancellation or Adjustment of Global Security.
At such time as all beneficial
interests in a Global Security have either been exchanged for Definitive Securities, redeemed,
purchased or canceled, such Global Security shall be returned to the Depository for cancellation or
retained and canceled by the Trustee. At any time prior to such cancellation, if any beneficial
interest in a Global Security is exchanged for certificated Securities, redeemed, purchased or
canceled, the principal amount of Securities represented by such Global Security shall be reduced
and an adjustment shall be made on the books and records of the Trustee (if it is then the
Securities Custodian for such Global Security) with respect to such Global Security, by the Trustee
or the Securities Custodian, to reflect such reduction.
(g)
No Obligation of the Trustee.
(i) The Trustee shall have no responsibility or obligation to any beneficial
owner of a Global Security, a member of, or a participant in the Depository or
other Person with respect to the accuracy of the records of the Depository or its
nominee or of any participant or member thereof, with respect to any ownership
interest in the Securities or with respect to the delivery to any participant,
member, beneficial owner or other Person (other than the Depository) of any notice
(including any notice of redemption) or the payment of any amount, under or with
respect to such Securities. All notices and communications to be given to the
Holders and all payments to be made to Holders under the Securities shall be given
or made only to or upon the order of the registered Holders (which shall be the
Depository or its nominee in the case of a Global Security). The rights of
beneficial owners in any Global Security shall be exercised only through the
Depository subject to the applicable rules and procedures of the Depository. The
Trustee may rely and shall be fully protected in relying upon information furnished
by the Depository with respect to its members, participants and any beneficial
owners.
(ii) The Trustee shall have no obligation or duty to monitor, determine or
inquire as to compliance with any restrictions on transfer
11
imposed under the Indenture or under applicable law with respect to any
transfer of any interest in any Security (including any transfers between or among
Depository participants, members or beneficial owners in any Global Security) other
than to require delivery of such certificates and other documentation or evidence
as are expressly required by, and to do so if and when expressly required by, the
terms of the Indenture, and to examine the same to determine substantial compliance
as to form with the express requirements hereof.
2.4
Definitive Securities.
(a) A Global Security deposited with the Depository or with the Trustee as Securities
Custodian for the Depository pursuant to Section 2.1 shall be transferred to the beneficial owners
thereof in the form of Definitive Securities in an aggregate principal amount equal to the
principal amount of such Global Security, in exchange for such Global Security, only if such
transfer complies with Section 2.3 hereof and (i) the Depository notifies the Company that it is
unwilling or unable to continue as Depository for such Global Security and the Depository fails to
appoint a successor depository or if at any time such Depository ceases to be a clearing agency
registered under the Exchange Act, in either case, and a successor depository is not appointed by
the Company within 90 days of such notice, (ii) a Default with respect to the Securities has
occurred and is continuing and DTC or the Company specifically requests such exchange, (iii) the
Company, in its sole discretion, notifies the Trustee in writing that it elects to cause the
issuance of Definitive Securities under the Indenture or (iv) upon prior written notice given to
the Trustee by or on behalf of the Depository in accordance with the Indenture.
(b) Any Global Security that is transferable to the beneficial owners thereof pursuant to this
Section 2.4 shall be surrendered by the Depository to the Trustee located at its principal
corporate trust office in the Borough of Manhattan, The City of New York, to be so transferred, in
whole or from time to time in part, without charge, and the Trustee shall authenticate and deliver,
upon such transfer of each portion of such Global Security, an equal aggregate principal amount of
Definitive Securities of authorized denominations. Any portion of a Global Security transferred
pursuant to this Section 2.4 shall be executed, authenticated and delivered only in minimum
denominations of $2,000 principal amount and any integral multiple of $1,000 in excess thereof and
registered in such names as the Depository shall direct. Any Definitive Security delivered in
exchange for an interest in the Transfer Restricted Security shall, except as otherwise provided by
Section 2.3(e) hereof, bear the applicable restricted securities legend and definitive securities
legend set forth in Exhibit 1 hereto unless that legend is not required by applicable law.
(c) Subject to the provisions of Section 2.4(b) hereof, the registered Holder of a Global
Security shall be entitled to grant proxies and otherwise authorize any Person, including Agent
Members and Persons that may hold interests through Agent Members, to take any action which a
Holder is entitled to take under the Indenture or the Securities.
12
(d) In the event of the occurrence of one of the events specified in Section 2.4(a) hereof,
the Company shall promptly make available to the Trustee a reasonable supply of Definitive
Securities in definitive, fully registered form without interest coupons.
13
EXHIBIT
to
RULE 144A/REGULATION S APPENDIX
[FORM OF FACE OF INITIAL SECURITY]
[Global Securities Legend]
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (DTC), NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSORS NOMINEE AND TRANSFERS OF PORTIONS OF
THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET
FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.
[[FOR REGULATION S GLOBAL SECURITY ONLY] UNTIL 40 DAYS AFTER THE LATER OF COMMENCEMENT OR
COMPLETION OF THE OFFERING, AN OFFER OR SALE OF SECURITIES WITHIN THE UNITED STATES BY A DEALER (AS
DEFINED IN THE SECURITIES ACT) MAY VIOLATE THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT IF
SUCH OFFER OR SALE IS MADE OTHERWISE THAN IN ACCORDANCE WITH RULE 144A THEREUNDER.]
[Restricted Securities Legend for Securities offered otherwise than in Reliance on Regulation S]
THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE SECURITIES ACT), AND
THIS SECURITY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION
OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE
SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE
SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.
THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS SECURITY MAY
BE OFFERED, RESOLD, PLEDGED OR
1
OTHERWISE TRANSFERRED, ONLY (I) TO THE COMPANY, (II) IN THE UNITED STATES TO A PERSON WHOM THE
SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (III) OUTSIDE THE UNITED
STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (IV)
PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER
(IF AVAILABLE), OR (V) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN
EACH OF CASES (I) THROUGH (V) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE
UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY
PURCHASER OF THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.
[Restricted Securities Legend for Securities Offered in Reliance on Regulation S.]
THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION ORIGINALLY EXEMPT
FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE SECURITIES ACT), AND MAY
NOT BE TRANSFERRED IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, ANY U.S. PERSON
EXCEPT PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
AND ALL APPLICABLE STATE SECURITIES LAWS. TERMS USED ABOVE HAVE THE MEANINGS GIVEN TO THEM IN
REGULATION S UNDER THE SECURITIES ACT.
[Definitive Securities Legend]
IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT
SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM
THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.
2
CUSIP No._____
ISIN No._____
7.875% Senior Notes Due 2019
Commercial Vehicle Group, Inc., a Delaware corporation, or its permitted successor, promises
to pay to [ ], or registered assigns, the principal sum of [ ] Dollars on
April 15, 2019.
Interest Payment Dates: April 15 and October 15.
Record Dates: April 1 and October 1.
Additional provisions of this Security are set forth on the other side of this Security.
Dated:
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COMMERCIAL VEHICLE GROUP, INC.
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By
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Name:
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TRUSTEES CERTIFICATE OF
AUTHENTICATION
U.S. BANK NATIONAL ASSOCIATION
as Trustee, certifies
that this is one of
the Securities referred
to in the Indenture.
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By
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Authorized Signatory
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3
[FORM OF REVERSE SIDE OF INITIAL SECURITY]
7.875% Senior Secured Note Due 2019
1.
Interest
Commercial Vehicle Group, Inc., a Delaware corporation (such corporation, and its successors
and assigns under the Indenture hereinafter referred to, being herein called the Company),
promises to pay interest on the principal amount of this Security at the rate per annum shown
above;
provided
,
however
, that if a Registration Default (as defined in the
Registration Rights Agreement) occurs, additional interest will accrue on this Security at a rate
of 0.50% per annum from and including the date on which any such Registration Default shall occur
to but excluding the date on which all Registration Defaults have been cured. The Company will pay
interest semiannually in arrears on April 15 and October 15 of each year, commencing October 15,
2011. Interest on the Securities will accrue from the most recent date to which interest has been
paid or, if no interest has been paid, from and including April 26, 2011. Interest will be
computed on the basis of a 360-day year of twelve 30-day months. The Company will pay interest on
overdue principal at the rate borne by this Security, and it will pay interest on overdue
installments of interest at the same rate to the extent lawful.
2.
Method of Payment
The Company will pay interest on the Securities (except defaulted interest) to the Persons who
are registered holders of Securities at the close of business on the April 1 or October 1 next
preceding the interest payment date even if Securities are canceled after the record date and on or
before the interest payment date. Holders must surrender Securities to a Paying Agent to collect
principal payments. The Company will pay principal and interest in money of the United States that
at the time of payment is legal tender for payment of public and private debts. Payments in
respect of the Securities represented by a Global Security (including principal, premium and
interest) will be made by wire transfer of immediately available funds to the accounts specified by
the Depository. The Company will make all payments in respect of a certificated Security
(including principal, premium and interest) by mailing a check to the registered address of each
Holder thereof;
provided
,
however
, that payments on a certificated Security will be
made by wire transfer to a U.S. dollar account maintained by the payee with a bank in the United
States if such Holder elects payment by wire transfer by giving written notice to the Trustee or
the Paying Agent to such effect designating such account no later than 30 days immediately
preceding the relevant due date for payment (or such other date as the Trustee may accept in its
discretion).
3.
Paying Agent and Registrar
Initially, U.S. Bank National Association, a national banking organization (the Trustee),
will act as Paying Agent and Registrar. The Company may appoint and change any Paying Agent,
Registrar or co-registrar without notice. The Company or any of its domestically incorporated or
organized Wholly Owned Subsidiaries may act as Paying Agent, Registrar or co-registrar.
4
4.
Indenture
The Company issued the Securities under an Indenture dated as of April 26, 2011 (the
Indenture), among the Company, the Subsidiary Guarantors and the Trustee. The terms of the
Securities include those stated in the Indenture and those made part of the Indenture by reference
to the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) (the Act). Terms defined in the
Indenture and not defined herein have the meanings ascribed thereto in the Indenture. The
Securities are subject to all such terms, and Securityholders are referred to the Indenture and the
Act for a statement of those terms.
The Securities are senior secured obligations of the Company. The Company shall be entitled,
subject to its compliance with Sections 4.03 and 4.10 of the Indenture, to issue Additional
Securities pursuant to Section 2.13 of the Indenture. The Initial Securities issued on the Issue
Date, any Additional Securities and all Exchange Securities or Private Exchange Securities issued
in exchange therefor will be treated as a single class for all purposes under the Indenture. The
Indenture contains covenants that limit the ability of the Company and its subsidiaries to incur
additional indebtedness; pay dividends or distributions on, or redeem or repurchase, capital stock;
make investments; engage in transactions with affiliates; create liens on assets; transfer or sell
assets; guarantee indebtedness; restrict dividends or other payments of subsidiaries; consolidate,
merge or transfer all or substantially all of the Companys assets and the assets of its
subsidiaries; and engage in sale/leaseback transactions. These covenants are subject to important
exceptions and qualifications.
5.
Optional Redemption
Except as set forth below, the Company shall not be entitled to redeem the Securities.
On and after April 15, 2014, the Company shall be entitled at its option to redeem all or a
portion of the Securities at the redemption prices (expressed as percentages of principal amount on
the redemption date), plus accrued and unpaid interest, if any, to the redemption date (subject to
the right of Holders of record on the relevant record date to receive interest due on the relevant
interest payment date), if redeemed during the 12-month period commencing on April 15 of the years
set forth below:
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Redemption
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Year
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Price
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2014
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105.906
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%
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2015
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103.938
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%
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2016
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101.969
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%
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2017 and thereafter
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100.000
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%
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In addition, any time prior to April 15, 2014, the Company shall be entitled at its option to
redeem all or a portion of the Securities at a redemption price equal to 100% of the principal
amount of the Securities to be redeemed, plus the Applicable Premium as of, and
5
accrued and unpaid interest, if any, to, the redemption date (subject to the right of Holders
of record on the relevant record date to receive interest due on the relevant interest payment
date).
Additionally, not more than once during each twelve-month period ending on April 15, 2012,
April 15, 2013 and April 15, 2014, the Company shall be entitled at its option to redeem up to 10%
of the original aggregate principal amount of the Securities in each such twelve-month period, at a
redemption price equal to 103.000% of the principal amount, plus accrued and unpaid interest, if
any, to the redemption date (subject to the right of Holders of record on the relevant record date
to receive interest due on the relevant interest payment date)
Prior to April 15, 2014, the Company shall be entitled at its option on one or more occasions
to redeem Securities (which includes Additional Securities, if any) in an aggregate principal
amount not to exceed 35% of the aggregate principal amount of the Securities (which includes
Additional Securities, if any) originally issued at a redemption price (expressed as a percentage
of principal amount on the redemption date) of 107.875%, plus accrued and unpaid interest, if any,
to the redemption date (subject to the right of Holders of record on the relevant record date to
receive interest due on the relevant interest payment date), with the net cash proceeds from one or
more Equity Offerings;
provided
,
however
, that (1) at least 65% of such aggregate
principal amount of Securities (which includes Additional Securities, if any) remains outstanding
immediately after the occurrence of each such redemption (other than Securities held, directly or
indirectly, by the Company or its Affiliates); and (2) each such redemption occurs within 120 days
after the date of the related Equity Offering.
6.
Notice of Redemption
Notice of redemption will be mailed by first-class mail at least 30 days but not more than 60
days before the redemption date to each Holder of Securities to be redeemed at his registered
address. Notice of any redemption upon any Equity Offering may be given prior to the redemption
thereof, and any such redemption or notice may, at the Companys discretion, be subject to one or
more conditions precedent, including, but not limited to, completion of the related Equity
Offering.
Securities in denominations of $2,000 or less may only be redeemed in whole. Securities in
denominations larger than $2,000 principal amount may be redeemed in part but only in integral
multiples of $1,000. If money sufficient to pay the redemption price of and accrued interest on
all Securities (or portions thereof) to be redeemed on the redemption date is deposited with the
Paying Agent on or before the redemption date and certain other conditions are satisfied, on and
after such date interest ceases to accrue on such Securities (or such portions thereof) called for
redemption.
7.
Put Provisions
Upon a Change of Control, any Holder of Securities will have the right to cause the Company to
repurchase all or any part of the Securities of such Holder at a repurchase price equal to 101% of
the principal amount of the Securities to be repurchased plus accrued and unpaid interest, if any,
to the date of repurchase (subject to the right of Holders of record on the
6
relevant record date to receive interest due on the relevant interest payment date) as
provided in, and subject to the terms of, the Indenture.
8.
Guaranty
The payment by the Company of the principal of, and premium and interest on, the Securities is
fully and unconditionally guaranteed on a joint and several senior secured basis by each of the
Subsidiary Guarantors to the extent set forth in the Indenture.
9.
Security
The Securities and the Subsidiary Guaranties and all obligations with respect thereto under
the Indenture will be secured by second-priority security interests (subject to Permitted Liens) in
the Collateral, which security interests will be subject to the Intercreditor Agreement (as defined
in the Indenture). Subject to exceptions described in the Indenture and the Security Documents,
the Collateral consists of substantially all of the property and assets of the Company and the
Subsidiary Guarantors.
10.
Denominations; Transfer; Exchange
The Securities are in registered form without coupons in minimum denominations of $2,000
principal amount and integral multiples of $1,000 in excess thereof. A Holder may transfer or
exchange Securities in accordance with the Indenture. The Registrar may require a Holder, among
other things, to furnish appropriate endorsements or transfer documents and to pay any taxes and
fees required by law or permitted by the Indenture. The Registrar need not register the transfer
of or exchange any Securities selected for redemption (except, in the case of a Security to be
redeemed in part, the portion of the Security not to be redeemed) or any Securities for a period of
15 days before a selection of Securities to be redeemed or 15 days before an interest payment date.
11.
Persons Deemed Owners
The registered Holder of this Security may be treated as the owner of it for all purposes.
12.
Unclaimed Money
If money for the payment of principal or interest remains unclaimed for two years, the Trustee
or Paying Agent shall pay the money back to the Company at its request unless an abandoned property
law designates another Person. After any such payment, Holders entitled to the money must look
only to the Company and not to the Trustee for payment.
13.
Discharge and Defeasance
Subject to certain conditions, the Company at any time shall be entitled to terminate some or
all of the Companys and the Subsidiary Guarantors obligations under the Securities, the
Subsidiary Guaranties and the Indenture if the Company deposits with the Trustee
7
money or U.S. Government Obligations for the payment of principal and interest on the
Securities to redemption or maturity, as the case may be.
14.
Amendment, Waiver
Subject to certain exceptions set forth in the Indenture, (a) the Indenture, the Security
Documents, any Subsidiary Guaranty and the Securities may be amended or supplemented with the
written consent of the Holders of at least a majority in principal amount of the Securities then
outstanding and (b) any default or noncompliance with any provision may be waived with the written
consent of the Holders of at least a majority in principal amount of the Securities then
outstanding. Subject to certain exceptions set forth in the Indenture, without the consent of any
Securityholder, the Company, the Subsidiary Guarantors and the Trustee shall be entitled to amend
or supplement the Indenture, the Security Documents, any Subsidiary Guaranty and the Securities to
cure any ambiguity, omission, defect or inconsistency (including to conform the text of such
documents to any provision of the Description of the Notes in the Offering Circular to the extent
such provision in the Description of the Notes was intended to be a verbatim recitation of a
provision of such documents), or to comply with Article 5 of the Indenture, or to provide for
uncertificated Securities in addition to or in place of certificated Securities, or to add
guarantees with respect to the Securities, including Subsidiary Guaranties, or to add additional
covenants or surrender rights and powers conferred on the Company or the Subsidiary Guarantors, or
to comply with any requirement of the SEC in connection with qualifying, or maintaining the
qualification of, the Indenture under the Act, or to make any change that does not adversely affect
the rights of any Securityholder, or to make amendments to provisions of the Indenture relating to
the transfer and legending of the Securities, or to add security to or for the benefit of the
Securities and, in the case of the Security Documents, to or for the benefit of the other secured
parties named therein, or to modify the Security Documents and/or the Intercreditor Agreement or
enter into additional intercreditor agreements, or to provide for the assumption by a successor
corporation of the obligations of the Company or any Subsidiary Guarantor under the Indenture.
8
15.
Release of Collateral.
Subject to certain exceptions set forth in the Indenture, Collateral may be released from the
security interest and Liens created by the Security Documents at any time or from time to time in
accordance with the provisions of the Security Documents, the Intercreditor Agreement or as
provided in the Indenture. Upon the request of the Company pursuant to an Officers Certificate
certifying that all conditions precedent under the Indenture have been met, and without the consent
of any Holder, the Company and the Subsidiary Guarantors will be entitled to a release of property
and other assets included in the Collateral from the Liens securing the Second Lien Obligations,
and the Second Lien Collateral Agent shall promptly execute and deliver such documents and
instruments as the Company and the Subsidiary Guarantors may reasonably request to evidence the
release of such Liens at the Companys sole cost and expense and without the consent of any Holder
of the Securities, under any one or more of the following circumstances: (1) in whole, upon
satisfaction and discharge of the Companys obligations under the Indenture in accordance with
Article 8 of the Indenture; (2) in whole, upon a legal defeasance or covenant defeasance as
described in accordance with Article 8 of the Indenture; or (3) in part, as to any property or
asset constituting Collateral (A) if the Liens on the Collateral securing the First Lien
Obligations are released (except if such release is in connection with the Discharge of the First
Lien Obligations), (B) to enable the Company or any Restricted Subsidiary to consummate the sale,
lease, transfer or other disposition of such property or assets to the extent not prohibited under
Section 4.06 of the Indenture, (C) that is owned by a Subsidiary Guarantor to the extent such
Subsidiary Guarantor has been released from its Subsidiary Guaranty in accordance with Article 10
of the Indenture or (D) otherwise in accordance with, and as expressly provided for under, the
Indenture; or pursuant to any amendment or supplement to the Indenture or to the Securities
effected in accordance with Article 9 of the Indenture.
16.
Defaults and Remedies
Under the Indenture, Events of Default include (a) default for 30 days in payment of interest
on the Securities; (b) default in payment of principal on the Securities at maturity, upon
redemption pursuant to paragraph 5 of the Securities, upon acceleration or otherwise, or failure by
the Company to purchase Securities when required; (c) failure by the Company or any Subsidiary
Guarantor to comply with other agreements in the Indenture or the Securities, in certain cases
subject to notice and lapse of time; (d) certain accelerations (including failure to pay within any
grace period after final maturity) of other Indebtedness of the Company if the amount accelerated
(or so unpaid) exceeds $15.0 million; (e) certain events of bankruptcy or insolvency with respect
to the Company, the Subsidiary Guarantors and the Significant Subsidiaries; (f) certain judgments
or decrees for the payment of money in excess of $15.0 million; (g) certain defaults with respect
to Subsidiary Guaranties and (h) certain defaults relating to the Collateral under the Security
Documents. If an Event of Default occurs and is continuing, the Trustee or the Holders of at least
25% in principal amount of the Securities may declare all the Securities to be due and payable
immediately. Certain events of bankruptcy or insolvency are Events of Default which will result in
the Securities being due and payable immediately upon the occurrence of such Events of Default.
9
Holders may not enforce the Indenture or the Securities except as provided in the Indenture.
The Trustee may refuse to enforce the Indenture or the Securities unless it receives indemnity or
security satisfactory to it. Subject to certain limitations, Holders of a majority in principal
amount of the Securities may direct the Trustee in its exercise of any trust or power. The Trustee
may withhold from Securityholders notice of any continuing Default (except a Default in payment of
principal or interest) if it determines that withholding notice is in the interest of the Holders.
17.
Trustee Dealings with the Company
Subject to certain limitations imposed by the Act, the Trustee under the Indenture, in its
individual or any other capacity, may become the owner or pledgee of Securities and may otherwise
deal with and collect obligations owed to it by the Company or its Affiliates and may otherwise
deal with the Company or its Affiliates with the same rights it would have if it were not Trustee.
18.
No Recourse Against Others
No director, officer, employee, incorporator or stockholder, as such, of the Company or any
Subsidiary Guarantor shall have any liability for any obligations of the Company or any Subsidiary
Guarantor under the Securities, any Subsidiary Guaranty, the Security Documents or the Indenture or
for any claim based on, in respect of, or by reason of such obligations or their creation. By
accepting a Security, each Holder waives and releases all such liability. The waiver and release
are part of the consideration for the issue of the Securities.
19.
Authentication
This Security shall not be valid until an authorized signatory of the Trustee (or an
authenticating agent) manually signs the certificate of authentication on the other side of this
Security.
20.
Abbreviations
Customary abbreviations may be used in the name of a Holder or an assignee, such as TEN COM
(=tenants in common), TEN ENT (=tenants by the entireties), JT TEN (=joint tenants with rights of
survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors
Act).
21.
CUSIP Numbers
Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures the Company has caused CUSIP numbers to be printed on the Securities and has directed
the Trustee to use CUSIP numbers in notices of redemption as a convenience to Holders. No
representation is made as to the accuracy of such numbers either as printed on the Securities or as
contained in any notice of redemption and reliance may be placed only on the other identification
numbers placed thereon.
10
22.
Holders Compliance with Registration Rights Agreement, Security Documents and
Intercreditor Agreement.
Each Holder, by acceptance hereof, acknowledges and agrees to the provisions of the
Registration Rights Agreement, including the obligations of the Holders with respect to a
registration and the indemnification of the Company to the extent provided therein.
Each Holder, by acceptance hereof, shall be deemed to: (i) consent and agree to the terms,
conditions and provisions of the Security Documents and the Intercreditor Agreement and directs the
Trustee and Second Lien Collateral Agent to sign these documents, (ii) agree that it will be bound
by and will take no actions contrary to the provisions of the Intercreditor Agreement and (iii)
agree that none of the Company, the Subsidiary Guarantors, the Trustee or the Second Lien
Collateral Agent shall be required under the Indenture or under any Security Document to take any
action inconsistent with or contrary to any provision of the Intercreditor Agreement.
23.
Successor Entity.
When a successor entity assumes, in accordance with the Indenture, all the obligations of its
predecessor under the Securities and the Indenture, and immediately before and thereafter no
Default or Event of Default exists and all other conditions of the Indenture are satisfied, the
predecessor entity will be released from those obligations.
24.
Governing Law.
THIS SECURITY AND ANY SUBSIDIARY GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS.
The Company will furnish to any Securityholder upon written request and without charge to the
Securityholder a copy of the Indenture which has in it the text of this Security in larger type.
Requests may be made to:
Commercial Vehicle Group, Inc.
7800 Walton Parkway
New Albany, OH 43054
Attention: Chad M. Utrup, Chief Financial Officer
11
ASSIGNMENT FORM
To assign this Security, fill in the form below:
I or we assign and transfer this Security to
(Print or type assignees name, address and zip code)
(Insert assignees soc. sec. or tax I.D. No.)
and irrevocably appoint agent to transfer this Security on the books of
the Company. The agent may substitute another to act for him.
Date:
Your
Signature:
Sign exactly as your name appears on the other side of this Security.
In connection with any transfer of any of the Securities evidenced by this certificate occurring
prior to the expiration of the period referred to in Rule 144 under the Securities Act after the
later of the date of original issuance of such Securities and the last date, if any, on which such
Securities were owned by the Company or any Affiliate of the Company, the undersigned confirms that
such Securities are being transferred in accordance with its terms:
CHECK ONE BOX BELOW
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(1
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o
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to the Company; or
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(2
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o
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pursuant to an effective registration statement under the Securities
Act of 1933, as amended; or
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(3
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o
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inside the United States to a qualified institutional buyer (as
defined in Rule 144A under the Securities Act of 1933, as amended) that purchases for
its own account or for the account of a qualified institutional buyer to whom notice is
given that such transfer is being made in reliance on Rule 144A, in each case pursuant
to and in compliance with Rule 144A under the Securities Act of 1933, as amended; or
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(4
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outside the United States in an offshore transaction within the meaning
of Regulation S under the Securities Act in compliance with Rule 904 under the
Securities Act of 1933, as amended; or
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(5)
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pursuant to the exemption from registration provided by Rule 144 under
the Securities Act of 1933, as amended.
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Unless one of the boxes is checked, the Trustee will refuse to register any of the
Securities evidenced by this certificate in the name of any person other than the registered
holder thereof;
provided
,
however
, that if box (5) is checked, the Trustee
shall be entitled to require, prior to registering any such transfer of the Securities, such
legal opinions, certifications and other information as the Company has reasonably requested
to confirm that such transfer is being made pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the Securities Act of 1933, as
amended, such as the exemption provided by Rule 144 under such Act.
Signature Guarantee:
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Signature must be guaranteed
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Signature
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Signatures must be guaranteed by an eligible guarantor institution meeting the requirements
of the Registrar, which requirements include membership or participation in the Security Transfer
Agent Medallion Program (STAMP) or such other signature guarantee program as may be determined
by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.
13
TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED.
The undersigned represents and warrants that it is purchasing this Security for its own
account or an account with respect to which it exercises sole investment discretion and that it and
any such account is a qualified institutional buyer within the meaning of Rule 144A under the
Securities Act of 1933, as amended, and is aware that the sale to it is being made in reliance on
Rule 144A and acknowledges that it has received such information regarding the Company as the
undersigned has requested pursuant to Rule 144A or has determined not to request such information
and that it is aware that the transferor is relying upon the undersigneds foregoing
representations in order to claim the exemption from registration provided by Rule 144A.
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Dated:
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Notice:
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To be executed by an executive officer
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14
[TO BE ATTACHED TO GLOBAL SECURITIES]
SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY
The following increases or decreases in this Global Security have been made:
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Amount of decrease
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Amount of increase
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Principal amount of
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Signature of
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in Principal
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in Principal amount
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this Global
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authorized officer
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Date of
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amount of this
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of this Global
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Security following
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of Trustee or
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Exchange
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Global Security
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Security
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such decrease or increase)
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Securities Custodian
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15
OPTION OF HOLDER TO ELECT PURCHASE
If you want to elect to have this Security purchased by the Company pursuant to Section 4.06
or 4.09 of the Indenture, check the box:
o
o
If you want to elect to have only part of this Security purchased by the Company
pursuant to Section 4.06 or 4.09 of the Indenture, state the amount in principal amount:
$___________.
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Dated:
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Your Signature:
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(Sign exactly as your name appears on the other side of this
Security.)
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Signature Guarantee:
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(Signature must be guaranteed)
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Signatures must be guaranteed by an eligible guarantor institution meeting the requirements
of the Registrar, which requirements include membership or participation in the Security Transfer
Agent Medallion Program (STAMP) or such other signature guarantee program as may be determined
by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.
16
EXHIBIT A
[FORM OF FACE OF EXCHANGE SECURITY
OR PRIVATE EXCHANGE SECURITY]
*
/
**
/
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*
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If the Security is to be issued in global form add the Global Securities Legend from
Exhibit 1 to Appendix A and the attachment from such Exhibit 1 captioned [TO BE ATTACHED TO GLOBAL
SECURITIES] SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY.
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**
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.If the Security is a Private Exchange Security issued in a Private Exchange to an
Initial Purchaser holding an unsold portion of its initial allotment, add the Restricted Securities
Legend from Exhibit 1 to Appendix A and replace the Assignment Form included in this Exhibit A with
the Assignment Form included in such Exhibit 1.
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CUSIP No._____
ISIN No._____
7.875% Senior Secured Notes Due 2019
Commercial Vehicle Group, Inc., a Delaware corporation, or its permitted successor, promises
to pay to [ ], or registered assigns, the principal sum of [ ] Dollars on April
15, 2019.
Interest Payment Dates: April 15 and October 15.
Record Dates: April 1 and October 1.
Additional provisions of this Security are set forth on the other side of this Security.
Dated:
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COMMERCIAL VEHICLE GROUP, INC.
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by
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Name:
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Title:
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TRUSTEES CERTIFICATE OF
AUTHENTICATION
U.S. BANK NATIONAL ASSOCIATION
as Trustee, certifies
that this is one of
the Securities referred
to in the Indenture.
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2
[FORM OF REVERSE SIDE OF EXCHANGE SECURITY
OR PRIVATE EXCHANGE SECURITY]
7.875% Senior Secured Note Due 2019
1. Interest
Commercial Vehicle Group, Inc., a Delaware corporation (such corporation, and its successors
and assigns under the Indenture hereinafter referred to, being herein called the Company),
promises to pay interest on the principal amount of this Security at the rate per annum shown
above. The Company will pay interest semiannually in arrears on April 15 and October 15 of each
year, commencing October 15, 2011. Interest on the Securities will accrue from the most recent
date to which interest has been paid or, if no interest has been paid, from and including April 26,
2011. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The
Company will pay interest on overdue principal at the rate borne by this Security, and it will pay
interest on overdue installments of interest at the same rate to the extent lawful.
2.
Method of Payment
The Company will pay interest on the Securities (except defaulted interest) to the Persons who
are registered holders of Securities at the close of business on the April 1 or October 1 next
preceding the interest payment date even if Securities are canceled after the record date and on or
before the interest payment date. Holders must surrender Securities to a Paying Agent to collect
principal payments. The Company will pay principal and interest in money of the United States that
at the time of payment is legal tender for payment of public and private debts. Payments in
respect of the Securities represented by a Global Security (including principal, premium and
interest) will be made by wire transfer of immediately available funds to the accounts specified by
the Depository. The Company will make all payments in respect of a certificated Security
(including principal, premium and interest) by mailing a check to the registered address of each
Holder thereof;
provided
,
however
, that payments on a certificated Security will be
made by wire transfer to a U.S. dollar account maintained by the payee with a bank in the United
States if such Holder elects payment by wire transfer by giving written notice to the Trustee or
the Paying Agent to such effect designating such account no later than 30 days immediately
preceding the relevant due date for payment (or such other date as the Trustee may accept in its
discretion).
3.
Paying Agent and Registrar
Initially, U.S. Bank National Association, a national banking organization (the Trustee),
will act as Paying Agent and Registrar. The Company may appoint and change any Paying Agent,
Registrar or co-registrar without notice. The Company or any of its domestically incorporated or
organized Wholly Owned Subsidiaries may act as Paying Agent, Registrar or co-registrar.
3
4.
Indenture
The Company issued the Securities under an Indenture dated as of April 26, 2011 (the
Indenture), among the Company, the Subsidiary Guarantors and the Trustee. The terms of the
Securities include those stated in the Indenture and those made part of the Indenture by reference
to the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) (the Act). Terms defined in the
Indenture and not defined herein have the meanings ascribed thereto in the Indenture. The
Securities are subject to all such terms, and Securityholders are referred to the Indenture and the
Act for a statement of those terms.
The Securities are senior secured obligations of the Company. The Company shall be entitled,
subject to its compliance with Sections 4.03 and 4.10 of the Indenture, to issue Additional
Securities pursuant to Section 2.13 of the Indenture. The Initial Securities issued on the Issue
Date, any Additional Securities and all Exchange Securities or Private Exchange Securities issued
in exchange therefor will be treated as a single class for all purposes under the Indenture. The
Indenture contains covenants that limit the ability of the Company and its subsidiaries to incur
additional indebtedness; pay dividends or distributions on, or redeem or repurchase, capital stock;
make investments; engage in transactions with affiliates; create liens on assets; transfer or sell
assets; guarantee indebtedness; restrict dividends or other payments of subsidiaries; consolidate,
merge or transfer all or substantially all of the Companys assets and the assets of its
subsidiaries; and engage in sale/leaseback transactions. These covenants are subject to important
exceptions and qualifications.
5.
Optional Redemption
Except as set forth below, the Company shall not be entitled to redeem the Securities.
On and after April 15, 2014, the Company shall be entitled at its option to redeem all or a
portion of the Securities at the redemption prices (expressed as percentages of principal amount on
the redemption date), plus accrued and unpaid interest, if any, to the redemption date (subject to
the right of Holders of record on the relevant record date to receive interest due on the relevant
interest payment date), if redeemed during the 12-month period commencing on April 15 of the years
set forth below:
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Redemption
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Year
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Price
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2014
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105.906
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%
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2015
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103.938
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2016
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101.969
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%
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2017 and thereafter
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100.000
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In addition, any time prior to April 15, 2014, the Company shall be entitled at its option to
redeem all or a portion of the Securities at a redemption price equal to 100% of the principal
amount of the Securities to be redeemed, plus the Applicable Premium as of, and
4
accrued and unpaid interest, if any, to, the redemption date (subject to the right of Holders
of record on the relevant record date to receive interest due on the relevant interest payment
date).
Additionally, not more than once during each twelve-month period ending on April 15, 2012,
April 15, 2013 and April 15, 2014, the Company shall be entitled at its option to redeem up to 10%
of the original aggregate principal amount of the Securities in each such twelve-month period, at a
redemption price equal to 103.000% of the principal amount, plus accrued and unpaid interest, if
any, to the redemption date (subject to the right of Holders of record on the relevant record date
to receive interest due on the relevant interest payment date)
Prior to April 15, 2014, the Company shall be entitled at its option on one or more occasions
to redeem Securities (which includes Additional Securities, if any) in an aggregate principal
amount not to exceed 35% of the aggregate principal amount of the Securities (which includes
Additional Securities, if any) originally issued at a redemption price (expressed as a percentage
of principal amount on the redemption date) of 107.875%, plus accrued and unpaid interest, if any,
to the redemption date (subject to the right of Holders of record on the relevant record date to
receive interest due on the relevant interest payment date), with the net cash proceeds from one or
more Equity Offerings;
provided
,
however
, that (1) at least 65% of such aggregate
principal amount of Securities (which includes Additional Securities, if any) remains outstanding
immediately after the occurrence of each such redemption (other than Securities held, directly or
indirectly, by the Company or its Affiliates); and (2) each such redemption occurs within 120 days
after the date of the related Equity Offering.
6.
Notice of Redemption
Notice of redemption will be mailed by first-class mail at least 30 days but not more than 60
days before the redemption date to each Holder of Securities to be redeemed at his registered
address. Notice of any redemption upon any Equity Offering may be given prior to the redemption
thereof, and any such redemption or notice may, at the Companys discretion, be subject to one or
more conditions precedent, including, but not limited to, completion of the related Equity
Offering.
Securities in denominations of $2,000 or less may only be redeemed in whole. Securities in
denominations larger than $2,000 principal amount may be redeemed in part but only in integral
multiples of $1,000. If money sufficient to pay the redemption price of and accrued interest on
all Securities (or portions thereof) to be redeemed on the redemption date is deposited with the
Paying Agent on or before the redemption date and certain other conditions are satisfied, on and
after such date interest ceases to accrue on such Securities (or such portions thereof) called for
redemption.
7.
Put Provisions
Upon a Change of Control, any Holder of Securities will have the right to cause the Company to
repurchase all or any part of the Securities of such Holder at a repurchase price equal to 101% of
the principal amount of the Securities to be repurchased plus accrued and unpaid interest, if any,
to the date of repurchase (subject to the right of Holders of record on the
5
relevant record date to receive interest due on the relevant interest payment date) as
provided in, and subject to the terms of, the Indenture.
8.
Guaranty
The payment by the Company of the principal of, and premium and interest on, the Securities is
fully and unconditionally guaranteed on a joint and several senior secured basis by each of the
Subsidiary Guarantors to the extent set forth in the Indenture.
9.
Security
The Securities and the Subsidiary Guaranties and all obligations with respect thereto under
the Indenture will be secured by second-priority security interests (subject to Permitted Liens) in
the Collateral, which security interests will be subject to the Intercreditor Agreement (as defined
in the Indenture). Subject to exceptions described in the Indenture and the Security Documents,
the Collateral consists of substantially all of the property and assets of the Company and the
Subsidiary Guarantors.
10.
Denominations; Transfer; Exchange
The Securities are in registered form without coupons in minimum denominations of $2,000
principal amount and integral multiples of $1,000 in excess thereof. A Holder may transfer or
exchange Securities in accordance with the Indenture. The Registrar may require a Holder, among
other things, to furnish appropriate endorsements or transfer documents and to pay any taxes and
fees required by law or permitted by the Indenture. The Registrar need not register the transfer
of or exchange any Securities selected for redemption (except, in the case of a Security to be
redeemed in part, the portion of the Security not to be redeemed) or any Securities for a period of
15 days before a selection of Securities to be redeemed or 15 days before an interest payment date.
11.
Persons Deemed Owners
The registered Holder of this Security may be treated as the owner of it for all purposes.
12.
Unclaimed Money
If money for the payment of principal or interest remains unclaimed for two years, the Trustee
or Paying Agent shall pay the money back to the Company at its request unless an abandoned property
law designates another Person. After any such payment, Holders entitled to the money must look
only to the Company and not to the Trustee for payment.
13.
Discharge and Defeasance
Subject to certain conditions, the Company at any time shall be entitled to terminate some or
all of the Companys and the Subsidiary Guarantors obligations under the Securities, the
Subsidiary Guaranties and the Indenture if the Company deposits with the Trustee
6
money or U.S. Government Obligations for the payment of principal and interest on the
Securities to redemption or maturity, as the case may be.
14.
Amendment, Waiver
Subject to certain exceptions set forth in the Indenture, (a) the Indenture, the Security
Documents, any Subsidiary Guaranty and the Securities may be amended or supplemented with the
written consent of the Holders of at least a majority in principal amount of the Securities then
outstanding and (b) any default or noncompliance with any provision may be waived with the written
consent of the Holders of at least a majority in principal amount of the Securities then
outstanding. Subject to certain exceptions set forth in the Indenture, without the consent of any
Securityholder, the Company, the Subsidiary Guarantors and the Trustee shall be entitled to amend
or supplement the Indenture, the Security Documents, any Subsidiary Guaranty and the Securities to
cure any ambiguity, omission, defect or inconsistency (including to conform the text of such
documents to any provision of the Description of the Notes in the Offering Circular to the extent
such provision in the Description of the Notes was intended to be a verbatim recitation of a
provision of such documents), or to comply with Article 5 of the Indenture, or to provide for
uncertificated Securities in addition to or in place of certificated Securities, or to add
guarantees with respect to the Securities, including Subsidiary Guaranties, or to add additional
covenants or surrender rights and powers conferred on the Company or the Subsidiary Guarantors, or
to comply with any requirement of the SEC in connection with qualifying, or maintaining the
qualification of, the Indenture under the Act, or to make any change that does not adversely affect
the rights of any Securityholder, or to make amendments to provisions of the Indenture relating to
the transfer and legending of the Securities, or to add security to or for the benefit of the
Securities and, in the case of the Security Documents, to or for the benefit of the other secured
parties named therein, or to modify the Security Documents and/or the Intercreditor Agreement or
enter into additional intercreditor agreements, or to provide for the assumption by a successor
corporation of the obligations of the Company or any Subsidiary Guarantor under the Indenture.
7
15.
Release of Collateral.
Subject to certain exceptions set forth in the Indenture, Collateral may be released from the
security interest and Liens created by the Security Documents at any time or from time to time in
accordance with the provisions of the Security Documents, the Intercreditor Agreement or as
provided in the Indenture. Upon the request of the Company pursuant to an Officers Certificate
certifying that all conditions precedent under the Indenture have been met, and without the consent
of any Holder, the Company and the Subsidiary Guarantors will be entitled to a release of property
and other assets included in the Collateral from the Liens securing the Second Lien Obligations,
and the Second Lien Collateral Agent shall promptly execute and deliver such documents and
instruments as the Company and the Subsidiary Guarantors may reasonably request to evidence the
release of such Liens at the Companys sole cost and expense and without the consent of any Holder
of the Securities, under any one or more of the following circumstances: (1) in whole, upon
satisfaction and discharge of the Companys obligations under the Indenture in accordance with
Article 8 of the Indenture; (2) in whole, upon a legal defeasance or covenant defeasance as
described in accordance with Article 8 of the Indenture; or (3) in part, as to any property or
asset constituting Collateral (A) if the Liens on the Collateral securing the First Lien
Obligations are released (except if such release is in connection with the Discharge of the First
Lien Obligations), (B) to enable the Company or any Restricted Subsidiary to consummate the sale,
lease, transfer or other disposition of such property or assets to the extent not prohibited under
Section 4.06 of the Indenture, (C) that is owned by a Subsidiary Guarantor to the extent such
Subsidiary Guarantor has been released from its Subsidiary Guaranty in accordance with Article 10
of the Indenture or (D) otherwise in accordance with, and as expressly provided for under, the
Indenture; or pursuant to any amendment or supplement to the Indenture or to the Securities
effected in accordance with Article 9 of the Indenture.
16.
Defaults and Remedies
Under the Indenture, Events of Default include (a) default for 30 days in payment of interest
on the Securities; (b) default in payment of principal on the Securities at maturity, upon
redemption pursuant to paragraph 5 of the Securities, upon acceleration or otherwise, or failure by
the Company to purchase Securities when required; (c) failure by the Company or any Subsidiary
Guarantor to comply with other agreements in the Indenture or the Securities, in certain cases
subject to notice and lapse of time; (d) certain accelerations (including failure to pay within any
grace period after final maturity) of other Indebtedness of the Company if the amount accelerated
(or so unpaid) exceeds $15.0 million; (e) certain events of bankruptcy or insolvency with respect
to the Company, the Subsidiary Guarantors and the Significant Subsidiaries; (f) certain judgments
or decrees for the payment of money in excess of $15.0 million; (g) certain defaults with respect
to Subsidiary Guaranties and (h) certain defaults relating to the Collateral under the Security
Documents. If an Event of Default occurs and is continuing, the Trustee or the Holders of at least
25% in principal amount of the Securities may declare all the Securities to be due and payable
immediately. Certain events of bankruptcy or insolvency are Events of Default which will result in
the Securities being due and payable immediately upon the occurrence of such Events of Default.
8
Holders may not enforce the Indenture or the Securities except as provided in the Indenture.
The Trustee may refuse to enforce the Indenture or the Securities unless it receives indemnity or
security satisfactory to it. Subject to certain limitations, Holders of a majority in principal
amount of the Securities may direct the Trustee in its exercise of any trust or power. The Trustee
may withhold from Securityholders notice of any continuing Default (except a Default in payment of
principal or interest) if it determines that withholding notice is in the interest of the Holders.
17.
Trustee Dealings with the Company
Subject to certain limitations imposed by the Act, the Trustee under the Indenture, in its
individual or any other capacity, may become the owner or pledgee of Securities and may otherwise
deal with and collect obligations owed to it by the Company or its Affiliates and may otherwise
deal with the Company or its Affiliates with the same rights it would have if it were not Trustee.
18.
No Recourse Against Others
No director, officer, employee, incorporator or stockholder, as such, of the Company or any
Subsidiary Guarantor shall have any liability for any obligations of the Company or any Subsidiary
Guarantor under the Securities, any Subsidiary Guaranty, the Security Documents or the Indenture or
for any claim based on, in respect of, or by reason of such obligations or their creation. By
accepting a Security, each Holder waives and releases all such liability. The waiver and release
are part of the consideration for the issue of the Securities.
19.
Authentication
This Security shall not be valid until an authorized signatory of the Trustee (or an
authenticating agent) manually signs the certificate of authentication on the other side of this
Security.
20.
Abbreviations
Customary abbreviations may be used in the name of a Holder or an assignee, such as TEN COM
(=tenants in common), TEN ENT (=tenants by the entireties), JT TEN (=joint tenants with rights of
survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors
Act).
21.
CUSIP Numbers
Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures the Company has caused CUSIP numbers to be printed on the Securities and has directed
the Trustee to use CUSIP numbers in notices of redemption as a convenience to Holders. No
representation is made as to the accuracy of such numbers either as printed on the Securities or as
contained in any notice of redemption and reliance may be placed only on the other identification
numbers placed thereon.
9
22.
Holders Compliance with the [Registration Rights Agreement], Security Documents and
Intercreditor Agreement.
[Each Holder, by acceptance hereof, acknowledges and agrees to the provisions of the
Registration Rights Agreement, including the obligations of the Holders with respect to a
registration and the indemnification of the Company to the extent provided therein.]
1
Each Holder, by acceptance hereof, shall be deemed to: (i) consent and agree to the terms,
conditions and provisions of the Security Documents and the Intercreditor Agreement and directs the
Trustee and Second Lien Collateral Agent to sign these documents, (ii) agree that it will be bound
by and will take no actions contrary to the provisions of the Intercreditor Agreement and (iii)
agree that none of the Company, the Subsidiary Guarantors, the Trustee or the Second Lien
Collateral Agent shall be required under the Indenture or under any Security Document to take any
action inconsistent with or contrary to any provision of the Intercreditor Agreement.
23.
Successor Entity.
When a successor entity assumes, in accordance with the Indenture, all the obligations of its
predecessor under the Securities and the Indenture, and immediately before and thereafter no
Default or Event of Default exists and all other conditions of the Indenture are satisfied, the
predecessor entity will be released from those obligations.
24.
Governing Law.
THIS SECURITY AND ANY SUBSIDIARY GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS.
The Company will furnish to any Securityholder upon written request and without charge to the
Securityholder a copy of the Indenture which has in it the text of this Security in larger type.
Requests may be made to:
Commercial Vehicle Group, Inc.
7800 Walton Parkway
New Albany, OH 43054
Attention: Chad M. Utrup, Chief Financial Officer
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1
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Delete if this Security is not a Private
Exchange Security.
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10
ASSIGNMENT FORM
To assign this Security, fill in the form below:
I or we assign and transfer this Security to
(Print or type assignees name, address and zip code)
(Insert assignees soc. sec. or tax I.D. No.)
and irrevocably appoint agent to transfer this Security on the books of the
Company. The agent may substitute another to act for him.
Date:
Your
Signature:
Sign exactly as your name appears on the other side of this Security.
11
OPTION OF HOLDER TO ELECT PURCHASE
If you want to elect to have this Security purchased by the Company pursuant to Section 4.06
or 4.09 of the Indenture, check the box:
o
o
If you want to elect to have only part of this Security purchased by the Company
pursuant to Section 4.06 or 4.09 of the Indenture, state the amount in principal amount:
$__________.
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Dated:
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Your Signature:
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(Sign exactly as your name appears on the other side of this
Security.)
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Signature Guarantee:
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(Signature must be guaranteed)
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Signatures must be guaranteed by an eligible guarantor institution meeting the requirements
of the Registrar, which requirements include membership or participation in the Security Transfer
Agent Medallion Program (STAMP) or such other signature guarantee program as may be determined
by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.
EXHIBIT B
FORM OF SUPPLEMENTAL INDENTURE
SUPPLEMENTAL INDENTURE (this Supplemental Indenture), dated as of ________________, between
________________ (the New Guarantor), a direct or indirect Subsidiary of Commercial Vehicle
Group, Inc. (or its successor), a Delaware corporation (the Company), and U.S. Bank National
Association, as trustee (the Trustee).
WITNESSETH:
WHEREAS, the Company and the Subsidiaries listed on the signature pages thereof have each
heretofore executed and delivered to the Trustee an Indenture (as amended, supplemented or modified
prior to the date hereof, the Indenture), dated as of April 26, 2011, providing for the issuance
by the Company of its 7.875% Senior Secured Notes Due 2019 (the Securities); and
WHEREAS, Section 4.12 of the Indenture provides that under certain circumstances the Company
is required to cause the New Guarantor to execute and deliver to the Trustee for the benefit of the
Holders a supplemental agreement pursuant to which the New Guarantor shall unconditionally
guarantee all of the Companys obligations under the Securities pursuant to a Subsidiary Guaranty
on the terms and conditions set forth herein;
NOW THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the New Guarantor covenants and agrees
for the equal and ratable benefit of the Holders of the Securities as follows:
(1) CAPITALIZED TERMS. Capitalized terms used herein without definition shall have the
meanings assigned to them in the Indenture.
(2) AGREEMENT TO GUARANTEE; REGISTRATION RIGHTS AGREEMENT. The New Guarantor hereby agrees,
jointly and severally with all other Subsidiary Guarantors, to unconditionally guarantee the
Companys obligations under the Securities on the terms and subject to the conditions set forth in
Article 10 of the Indenture and to be bound by all other applicable provisions of the Indenture.
The New Guarantor further agrees to become a party to the Registration Rights Agreement and to be
bound by all provisions thereof.
(3) RATIFICATION OF SUPPLEMENTAL INDENTURE; SUPPLEMENTAL INDENTURE PART OF INDENTURE. Except
as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the
terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental
Indenture shall form a part of the Indenture for all purposes, and every holder of the Securities
heretofore or hereafter authenticated and delivered shall be bound hereby.
(4) NO RECOURSE AGAINST OTHERS. No director, officer, employee, incorporator or stockholder,
as such, of the Company or any Subsidiary
Guarantor shall have any liability for any obligations of the Company or any Subsidiary
Guarantor under the Securities, any Subsidiary Guaranty, the Security Documents or the Indenture or
for any claim based on, in respect of, or by reason of such obligations or their creation. By
accepting a Security, each Securityholder shall waive and release all such liability. The waiver
and release shall be part of the consideration for the issue of the Securities.
(5) EFFECTIVENESS. This Supplemental Indenture shall be effective upon execution by the
parties hereto.
(6) RECITALS. The recitals contained herein shall be taken as the statements of the Company
and the Subsidiary Guarantors.
(7)
NEW YORK LAW TO GOVERN. THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE
PRINCIPLES OF CONFLICTS OF LAW.
(8) COUNTERPARTS. The parties may sign any number of copies of this Supplemental Indenture.
Each signed copy shall be an original, but all of them together represent the same agreement.
(9) EFFECT ON HEADINGS. The Section headings herein are for convenience only and shall not
affect the construction hereof.
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[NEW GUARANTOR]
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By:
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Name:
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Title:
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2
Exhibit
10.1
EXECUTION VERSION
COMMERCIAL VEHICLE GROUP, INC., and
EACH OTHER BORROWER,
as Borrowers
AMENDED AND RESTATED
LOAN AND SECURITY AGREEMENT
Dated as of April 26, 2011
$40,000,000
CERTAIN FINANCIAL INSTITUTIONS,
as Lenders,
and
BANK OF AMERICA, N.A
.,
as Agent
TABLE OF CONTENTS
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Page
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SECTION 1. DEFINITIONS; RULES OF CONSTRUCTION
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1
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1.1. Definitions
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1
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1.2. Accounting Terms
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32
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1.3. Uniform Commercial Code
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32
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1.4. Certain Matters of Construction
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33
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1.5. Certifications
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33
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1.6. Times of Day
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33
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SECTION 2. CREDIT FACILITIES
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34
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2.1. Revolver Commitments
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34
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2.1.1. Revolver Loans
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34
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2.1.2. Revolver Notes and Denominations
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34
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2.1.3. Use of Proceeds
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34
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2.1.4. Voluntary Reduction or Termination of Revolver Commitments
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34
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2.1.5. Overadvances
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35
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2.1.6. Protective Advances
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35
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2.2. [RESERVED]
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35
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2.3. Letter of Credit Facilities
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35
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2.3.1. Issuance of Letters of Credit
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36
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2.3.2. Reimbursement; Participations
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37
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2.3.3. Cash Collateral
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38
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SECTION 3. INTEREST, FEES AND CHARGES
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38
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3.1. Interest
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38
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3.1.1. Rates and Payment of Interest
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38
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3.1.2. Application of LIBOR to Outstanding Loans
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39
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3.1.3. Interest Periods
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39
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3.2. Fees
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39
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3.2.1. Unused Line Fee
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39
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3.2.2. LC Facility Fees
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40
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3.2.3. Other Fees
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40
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3.3. Computation of Interest, Fees, Yield Protection
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40
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-i-
TABLE OF CONTENTS
(continued)
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Page
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3.4. Reimbursement Obligations
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40
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3.5. Illegality
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41
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3.6. Inability to Determine Rates
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41
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3.7. Increased Costs; Capital Adequacy
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41
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3.7.1. Change in Law
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41
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3.7.2. Capital Adequacy
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42
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3.7.3. Compensation
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42
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3.8. Mitigation
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42
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3.9. Funding Losses
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43
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3.10. Maximum Interest
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43
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SECTION 4. LOAN ADMINISTRATION
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43
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4.1. Manner of Borrowing and Funding Revolver Loans
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43
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4.1.1. Notice of Borrowing
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43
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4.1.2. Fundings by Lenders
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44
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4.1.3. Swingline Loans; Settlement
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44
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4.1.4. Notices
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45
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4.2. Defaulting Lender
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45
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4.3. Number and Amount of LIBOR Loans; Determination of Rate
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45
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4.4. Borrower Agent
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45
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4.5. Obligations
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46
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4.6. Effect of Termination
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46
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SECTION 5. PAYMENTS
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46
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5.1. General Payment Provisions
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46
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5.2. Repayment of Revolver Loans
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46
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5.3. Repayment
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46
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5.3.1. Mandatory Prepayments
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46
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5.4. Payment of Other Obligations
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47
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5.5. Marshaling; Payments Set Aside
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47
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5.6. Allocation of Payments
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47
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5.6.1. Allocations Generally
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47
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-ii-
TABLE OF CONTENTS
(continued)
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Page
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5.6.2. Post-Default Allocation
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48
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5.6.3. Application of Amounts
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48
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5.6.4. Erroneous Application
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48
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5.7. Application of Payments
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48
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5.8. Loan Account; Account Stated
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49
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5.8.1. Loan Account
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49
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5.8.2. Entries Binding
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49
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5.9. Taxes
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49
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5.9.1. Payments Free of Taxes
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49
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5.9.2. Payment
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49
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5.10. Lender Tax Information
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50
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5.10.1. Status of Lenders
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50
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5.10.2. Documentation
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50
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5.10.3. Lender Obligations
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50
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5.11. Nature and Extent of Each Borrowers Liability
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51
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5.11.1. Joint and Several Liability
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51
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5.11.2. Waivers
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51
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5.11.3. Extent of Liability; Contribution
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52
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5.11.4. Joint Enterprise
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53
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5.11.5. Subordination
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53
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SECTION 6. CONDITIONS PRECEDENT
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53
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6.1. Conditions Precedent to Initial Loans
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53
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6.2. Conditions Precedent to Restatement Effective Date
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55
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6.3. Conditions Precedent to All Credit Extensions
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56
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SECTION 7. COLLATERAL
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57
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7.1. Grant of Security Interest
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57
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7.2. [RESERVED]
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58
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7.3. Lien on Deposit Accounts; Cash Collateral
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58
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7.3.1. Deposit Accounts
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58
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7.3.2. Cash Collateral
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58
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-iii-
TABLE OF CONTENTS
(continued)
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Page
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7.4. Real Estate Collateral
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59
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7.4.1. Lien on Real Estate
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59
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7.4.2. Collateral Assignment of Leases
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59
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7.5. Other Collateral
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59
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7.5.1. Commercial Tort Claims
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59
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7.5.2. Certain After-Acquired Collateral
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59
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7.5.3. Aircraft
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60
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7.6. No Assumption of Liability
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60
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7.7. Further Assurances
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60
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7.8. Foreign Subsidiary Stock
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60
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SECTION 8. COLLATERAL ADMINISTRATION
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60
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8.1. Borrowing Base Certificates
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60
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8.2. Administration of Accounts
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61
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8.2.1. Records and Schedules of Accounts
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61
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|
8.2.2. Taxes
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61
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8.2.3. Account Verification
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61
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8.2.4. Maintenance of Dominion Account
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61
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8.2.5. Proceeds of Collateral
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62
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8.3. Administration of Inventory
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62
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|
8.3.1. Records and Reports of Inventory
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62
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8.3.2. Returns of Inventory
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62
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8.3.3. Acquisition, Sale and Maintenance
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62
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8.4. Administration of Equipment
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62
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8.4.1. Records and Schedules of Equipment
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62
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8.4.2. Dispositions of Equipment
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63
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8.4.3. Condition of Equipment
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63
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8.5. Administration of Deposit Accounts
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63
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8.6. General Provisions
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|
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63
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|
8.6.1. Location of Collateral
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63
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8.6.2. Insurance of Collateral; Condemnation Proceeds
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63
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-iv-
TABLE OF CONTENTS
(continued)
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Page
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8.6.3. Protection of Collateral
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64
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8.6.4. Defense of Title to Collateral
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64
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8.7. Power of Attorney
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64
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SECTION 9. REPRESENTATIONS AND WARRANTIES
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|
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65
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9.1. General Representations and Warranties
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65
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9.1.1. Organization and Qualification
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65
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9.1.2. Power and Authority
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65
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9.1.3. Enforceability
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65
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9.1.4. Capital Structure
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65
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9.1.5. Title to Properties; Priority of Liens
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66
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9.1.6. Accounts
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66
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9.1.7. Financial Statements
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67
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9.1.8. Surety Obligations
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67
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9.1.9. Taxes
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67
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9.1.10. Brokers
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67
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9.1.11. Intellectual Property
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67
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9.1.12. Governmental Approvals
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68
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9.1.13. Compliance with Laws
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68
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9.1.14. Compliance with Environmental Laws
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68
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9.1.15. Burdensome Contracts
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|
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68
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9.1.16. Litigation
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|
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68
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9.1.17. No Defaults
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|
|
69
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9.1.18. ERISA
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|
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69
|
|
9.1.19. Trade Relations
|
|
|
70
|
|
9.1.20. Labor Relations
|
|
|
70
|
|
9.1.21. Payable Practices
|
|
|
70
|
|
9.1.22. Not a Regulated Entity
|
|
|
70
|
|
9.1.23. Margin Stock
|
|
|
70
|
|
9.1.24. Tender Offer
|
|
|
70
|
|
9.2. Complete Disclosure
|
|
|
70
|
|
-v-
TABLE OF CONTENTS
(continued)
|
|
|
|
|
|
|
Page
|
|
SECTION 10. COVENANTS AND CONTINUING AGREEMENTS
|
|
|
71
|
|
10.1. Affirmative Covenants
|
|
|
71
|
|
10.1.1. Inspections; Appraisals
|
|
|
71
|
|
10.1.2. Financial and Other Information
|
|
|
71
|
|
10.1.3. Notices
|
|
|
73
|
|
10.1.4. Landlord and Storage Agreements
|
|
|
74
|
|
10.1.5. Compliance with Laws
|
|
|
74
|
|
10.1.6. Taxes
|
|
|
74
|
|
10.1.7. Insurance
|
|
|
74
|
|
10.1.8. Licenses
|
|
|
74
|
|
10.1.9. Future Subsidiaries
|
|
|
75
|
|
10.2. Negative Covenants
|
|
|
75
|
|
10.2.1. Permitted Debt
|
|
|
75
|
|
10.2.2. Permitted Liens
|
|
|
76
|
|
10.2.3. [RESERVED]
|
|
|
78
|
|
10.2.4. Distributions; Upstream Payments
|
|
|
78
|
|
10.2.5. Restricted Investments
|
|
|
78
|
|
10.2.6. Acquisitions
|
|
|
79
|
|
10.2.7. Disposition of Assets
|
|
|
79
|
|
10.2.8. [RESERVED]
|
|
|
79
|
|
10.2.9. Restrictions on Payment of Certain Debt
|
|
|
79
|
|
10.2.10. Fundamental Changes
|
|
|
79
|
|
10.2.11. Subsidiaries
|
|
|
79
|
|
10.2.12. Organic Documents
|
|
|
79
|
|
10.2.13. Tax Consolidation
|
|
|
80
|
|
10.2.14. Accounting Changes
|
|
|
80
|
|
10.2.15. Restrictive Agreements
|
|
|
80
|
|
10.2.16. Hedging Agreements
|
|
|
80
|
|
10.2.17. Conduct of Business
|
|
|
80
|
|
10.2.18. Affiliate Transactions
|
|
|
80
|
|
-vi-
TABLE OF CONTENTS
(continued)
|
|
|
|
|
|
|
Page
|
|
10.2.19. Plans
|
|
|
80
|
|
10.2.20. Third Lien Notes
|
|
|
80
|
|
10.2.21. Amendments to Subordinated Debt or Indenture
|
|
|
80
|
|
10.3. Financial Covenants
|
|
|
81
|
|
10.3.1. Fixed Charge Coverage Ratio
|
|
|
81
|
|
SECTION 11. EVENTS OF DEFAULT; REMEDIES ON DEFAULT
|
|
|
81
|
|
11.1. Events of Default
|
|
|
81
|
|
11.2. Remedies upon Default
|
|
|
82
|
|
11.3. License
|
|
|
83
|
|
11.4. Setoff
|
|
|
83
|
|
11.5. Remedies Cumulative; No Waiver
|
|
|
84
|
|
11.5.1. Cumulative Rights
|
|
|
84
|
|
11.5.2. Waivers
|
|
|
84
|
|
SECTION 12. AGENT
|
|
|
84
|
|
12.1. Appointment, Authority and Duties of Agent
|
|
|
84
|
|
12.1.1. Appointment and Authority
|
|
|
84
|
|
12.1.2. Duties
|
|
|
85
|
|
12.1.3. Agent Professionals
|
|
|
85
|
|
12.1.4. Instructions of Required Lenders
|
|
|
85
|
|
12.2. Agreements Regarding Collateral and Field Examination Reports
|
|
|
85
|
|
12.2.1. Lien Releases; Care of Collateral
|
|
|
85
|
|
12.2.2. Possession of Collateral
|
|
|
86
|
|
12.2.3. Reports
|
|
|
86
|
|
12.3. Reliance By Agent
|
|
|
86
|
|
12.4. Action Upon Default
|
|
|
86
|
|
12.5. Ratable Sharing
|
|
|
87
|
|
12.6. Indemnification of Agent Indemnitees
|
|
|
87
|
|
12.7. Limitation on Responsibilities of Agent
|
|
|
87
|
|
12.8. Successor Agent and Co-Agents
|
|
|
88
|
|
12.8.1. Resignation; Successor Agent
|
|
|
88
|
|
-vii-
TABLE OF CONTENTS
(continued)
|
|
|
|
|
|
|
Page
|
|
12.8.2. Separate Collateral Agent
|
|
|
88
|
|
12.9. Due Diligence and Non-Reliance
|
|
|
88
|
|
12.10. Replacement of Certain Lenders
|
|
|
89
|
|
12.11. Remittance of Payments and Collections
|
|
|
89
|
|
12.11.1. Remittances Generally
|
|
|
89
|
|
12.11.2. Failure to Pay
|
|
|
89
|
|
12.11.3. Recovery of Payments
|
|
|
89
|
|
12.12. Agent in its Individual Capacity
|
|
|
90
|
|
12.13. Agent Titles
|
|
|
90
|
|
12.14. No Third Party Beneficiaries
|
|
|
90
|
|
SECTION 13. Collection allocation mechanism
|
|
|
90
|
|
13.1. [RESERVED]
|
|
|
90
|
|
SECTION 14. BENEFIT OF AGREEMENT; ASSIGNMENTS AND PARTICIPATIONS
|
|
|
90
|
|
14.1. Successors and Assigns
|
|
|
90
|
|
14.2. Participations
|
|
|
90
|
|
14.2.1. Permitted Participants; Effect
|
|
|
91
|
|
14.2.2. Voting Rights
|
|
|
91
|
|
14.2.3. Benefit of Set-Off
|
|
|
91
|
|
14.3. Assignments
|
|
|
91
|
|
14.3.1. Permitted Assignments
|
|
|
91
|
|
14.3.2. Effect; Effective Date
|
|
|
92
|
|
SECTION 15. MISCELLANEOUS
|
|
|
92
|
|
15.1. Consents, Amendments and Waivers
|
|
|
92
|
|
15.1.1. Amendment
|
|
|
92
|
|
15.1.2. Limitations
|
|
|
92
|
|
15.1.3. Payment for Consents
|
|
|
93
|
|
15.1.4. Technical Amendments
|
|
|
93
|
|
15.2. Indemnity
|
|
|
93
|
|
15.3. Notices and Communications
|
|
|
93
|
|
-viii-
TABLE OF CONTENTS
(continued)
|
|
|
|
|
|
|
Page
|
|
15.3.1. Notice Address
|
|
|
93
|
|
15.3.2. Electronic Communications; Voice Mail
|
|
|
94
|
|
15.3.3. Non-Conforming Communications
|
|
|
94
|
|
15.4. Performance of Borrowers Obligations
|
|
|
94
|
|
15.5. Credit Inquiries
|
|
|
94
|
|
15.6. Severability
|
|
|
94
|
|
15.7. Cumulative Effect; Conflict of Terms
|
|
|
94
|
|
15.8. Counterparts
|
|
|
94
|
|
15.9. Entire Agreement
|
|
|
95
|
|
15.10. Relationship with Lenders
|
|
|
95
|
|
15.11. No Advisory or Fiduciary Responsibility
|
|
|
95
|
|
15.12. Process Agent
|
|
|
95
|
|
15.13. Confidentiality
|
|
|
96
|
|
15.14. Certifications Regarding Second Lien Notes
|
|
|
96
|
|
15.15. GOVERNING LAW
|
|
|
96
|
|
15.16. Consent to Forum
|
|
|
97
|
|
15.17. Waivers by Borrowers
|
|
|
97
|
|
15.18. Patriot Act Notice
|
|
|
97
|
|
15.19. Effect of Amendment and Restatement; Schedules
|
|
|
97
|
|
15.20. Intercreditor Agreement
|
|
|
98
|
|
-ix-
LIST OF EXHIBITS AND SCHEDULES
|
|
|
Exhibit A
|
|
Revolver Note
|
Exhibit C
|
|
Assignment and Acceptance
|
Exhibit D
|
|
Assignment Notice
|
Exhibit E
|
|
Borrowing Base Certificate
|
Exhibit F
|
|
Compliance Certificate
|
Exhibit G
|
|
Notice of Borrowing
|
Exhibit H
|
|
Notice of Conversion/Continuation
|
Exhibit I
|
|
Form of Joinder
|
|
|
|
Schedule 1.1
|
|
Revolver Commitments of Lenders
|
Schedule 7.1
|
|
Commercial Tort Claims
|
Schedule 7.4
|
|
Mortgages
|
Schedule 8.5
|
|
Deposit Accounts
|
Schedule 8.6.1
|
|
Locations of Collateral
|
Schedule 9.1.4
|
|
Names and Capital Structure
|
Schedule 9.1.11
|
|
Patents, Trademarks, Copyrights and Licenses
|
Schedule 9.1.14
|
|
Environmental Matters
|
Schedule 9.1.16
|
|
Litigation
|
Schedule 9.1.18
|
|
Pension Plans
|
Schedule 9.1.20
|
|
Labor Contracts
|
Schedule 10.2.1
|
|
Existing Debt
|
Schedule 10.2.2
|
|
Existing Liens
|
Schedule 10.2.5
|
|
Permitted Investments
|
Schedule 10.2.7
|
|
Permitted Asset Dispositions
|
Schedule 10.2.15
|
|
Restrictive Agreements
|
Schedule 10.2.18
|
|
Existing Affiliate Transactions
|
Schedule 11.1
|
|
Events not Constituting an Event of Default
|
AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
THIS AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
is dated as of April 26, 2011 (this
Agreement
), among
COMMERCIAL VEHICLE GROUP, INC.
,
a Delaware corporation (the
Company
), each other Borrower (as herein defined) from time to time party hereto,
(together, with the Company, collectively,
Borrowers
), the financial institutions party
to this Agreement from time to time as lenders (collectively,
Lenders
), and
BANK OF
AMERICA, N.A.
, as agent for Lenders (
Agent
)
R E C I T A L S:
Borrowers have requested that Lenders provide a credit facility to Borrowers to finance their
mutual and collective business enterprise. Lenders are willing to provide the credit facility on
the terms and conditions set forth in this Agreement.
WHEREAS, Borrowers, Agent and certain Lenders are party to that certain Loan and Security
Agreement dated as of the Original Closing Date (as amended, supplemented or otherwise modified
prior to the date hereof, the Original Loan Agreement);
WHEREAS, Borrowers, Agent and Lenders desire to amended and restate the Original Loan
Agreement, subject to the terms and conditions set forth herein;
WHEREAS, on the Original Closing Date (or subsequent thereto (but prior to the Restatement
Date) pursuant to a joinder or similar agreement), each Borrower agreed to secure the Obligations
(as defined in the Original Loan Agreement) by granting to Agent, for the benefit of the Secured
Parties, a security interest in and a Lien upon substantially all of its personal and owned real
property in accordance with and subject to the limitations set forth in the Loan Documents (as
defined in the Original Loan Agreement);
WHEREAS, on the Original Closing Date, (or subsequent thereto (but prior to the Restatement
Effective Date) pursuant to a joinder or similar agreement), subject to the terms set forth in the
Original Closing Agreement, each Obligor (other than the Borrowers) agreed to guarantee the
Obligations (as defined in the Original Loan Agreement) of the Borrowers and to grant to Agent, for
the benefit of the Secured Parties, a security interest in and Lien upon substantially all of its
personal and owned real property; and
WHEREAS, Borrowers and each other Obligor desires to reaffirm (i) its Obligations (as defined
in the Original Loan Agreement) arising under the Original Loan Agreement and the other Loan
Documents (as defined in the Original Loan Agreement) and (ii) it prior grant of security interests
to secure any and all Obligations (as defined in the Original Loan Agreement), in each case, as
continued hereunder and the other Loan Documents.
NOW, THEREFORE
, for valuable consideration hereby acknowledged, the parties agree as follows:
SECTION 1. DEFINITIONS; RULES OF CONSTRUCTION
1.1. Definitions. As used herein, the following terms have the meanings set forth below:
Account
: as defined in the UCC, including all rights to payment for goods sold or
leased, or for services rendered.
Account Debtor
: a Person who is obligated under an Account, Chattel Paper or General
Intangible.
Accounts Formula Amount
: 85% of the Value of Eligible Accounts.
Acquisition
: (i) any acquisition (whether by purchase, lease, merger or otherwise) of
all or substantially all of any division, product line and/or business operated by any Person who
is not a Subsidiary and (ii) any acquisition of a majority of the outstanding Equity Interests of
any Person.
Affiliate
: with respect to any Person, another Person that directly, or indirectly
through one or more intermediaries, Controls or is Controlled by or is under common Control with
the Person specified.
Control
means the possession, directly or indirectly, of the power
to direct or cause the direction of the management or policies of a Person, whether through the
ability to exercise voting power, by contract or otherwise.
Controlling
and
Controlled
have correlative meanings.
Agent Indemnitees
: Agent and its officers, directors, employees, Affiliates, agents
and attorneys.
Agent Professionals
: attorneys, accountants, appraisers, auditors, business valuation
experts, environmental engineers or consultants, turnaround consultants, and other professionals
and experts retained by Agent.
Agreement
: as defined in the preamble.
Allocable Amount
: as defined in
Section 5.11.3
.
Anti-Terrorism Laws
: any laws relating to terrorism or money laundering, including the
Patriot Act.
Applicable Law
: all laws (including common law and equitable principles), rules,
regulations and governmental guidelines having the force of law and applicable to any Person,
conduct, transaction, agreement or matter in question, including all applicable statutory law,
local policies, and all provisions of constitutions, treaties, statutes, rules, regulations,
orders, ordinance, injunction, writ award or decrees of any Governmental Authorities, in each case
having the force of law.
Applicable Margin
: with respect to any Type of Loan, the margin set forth below, as
determined by the Fixed Charge Coverage Ratio for the last Fiscal Quarter:
|
|
|
|
|
|
|
|
|
|
|
Level
|
|
Ratio
|
|
Base Rate Loans
|
|
LIBOR Revolver Loans
|
III
|
|
£
1.25 to 1.00
|
|
|
1.50
|
%
|
|
|
2.50
|
%
|
II
|
|
³
1.25 to 1.00
but < 1.75 to
1.00
|
|
|
1.25
|
%
|
|
|
2.25
|
%
|
I
|
|
³
1.75 to 1.00
|
|
|
1.00
|
%
|
|
|
2.00
|
%
|
Until receipt by Agent of the financial statements and corresponding Compliance Certificate for the
Fiscal Quarter ending March 31, 2011 delivered pursuant to
Section 10.1.2
, margins shall be
determined as if Level II were applicable. Thereafter, the margins shall be subject to increase or
decrease upon receipt by Agent of the financial statements and corresponding Compliance Certificate
delivered pursuant to
Section 10.1.2
for the last Fiscal Month in any subsequent Fiscal Quarter,
which change shall be effective on the first day of the calendar month following receipt. If, by
the first day immediately following the date on which the financial statements and corresponding
Compliance Certificate for the last Fiscal Month of any Fiscal Quarter are to be delivered pursuant
to
Section 10.1.2
, such financial statements and corresponding Compliance Certificate have not been
received, then the margins shall be determined as if Level III were applicable, from such day until
the first day of the calendar month following actual receipt.
Approved Fund
: any Person (other than a natural person) that is engaged in making,
purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in
its ordinary course of activities, and is administered or managed by a Lender, an entity that
administers or manages a Lender, or an Affiliate of either.
Asset Disposition
: a sale, lease, license, consignment, transfer or other disposition
of Property of an Obligor, including a disposition of Property in connection with a sale-leaseback
transaction or synthetic lease.
Asset Review and Approval Conditions
: with respect to any Acquisition or merger in
respect of which the Accounts and/or Inventory acquired therein or thereby are requested (whether
such request occurs prior to the consummation of the Acquisition, or after the date thereof) to be
included in the Borrowing Base, Agent shall have completed its review of such assets, including,
without limitation, field examinations, audits, appraisals and other due diligence as Agent shall
in its Permitted Discretion require; it being acknowledged and agreed that, (1) such additional
assets, if any, to be included in the Borrowing Base may be subject to different advance rates or
eligibility criteria or may require the imposition of additional reserves with respect thereto as
Agent shall in its Permitted Discretion require in accordance with the definitions of Eligible
Accounts, Eligible Inventory and Reserves, and (2) prior to the inclusion of any additional assets
in the Borrowing Base, all actions shall have been taken to ensure that Agent has a perfected and
continuing first priority security interest in and Lien on such assets subject to the Permitted
Liens.
Assignment and Acceptance
: an assignment agreement between a Lender and Eligible
Assignee, in substantially the form of
Exhibit C
.
Availability
: (i) the Borrowing Base
minus
(ii) the principal balance of all
Revolver Loans
minus
(iii) the Availability Block.
Availability Block
: means an amount equal to the aggregate amount of Debt and Foreign
Bank Product Debt made available to any Foreign Subsidiary (whether or not such Debt is
outstanding) by Bank of America, N.A. or any of its Affiliates.
Availability Reserve
: the sum (without duplication) of (a) the Inventory Reserve; (b)
the Rent and Charges Reserve; (c) the LC Reserve; (d) the Bank Product Reserve; (e) the aggregate
amount of liabilities secured by Liens upon Collateral that are senior to Agents Liens (but
imposition of any such reserve shall not waive an Event of Default arising therefrom); and (f)
such additional reserves, in such amounts and with respect to such matters, as Agent in its
Permitted Discretion may elect to impose from time to time.
Bank of America
: Bank of America, N.A., a national banking association, and its
successors and assigns.
Bank of America Indemnitees
: Bank of America and its officers, directors, employees,
Affiliates, agents and attorneys.
Bank Product
: any of the following products, services or facilities extended to any
Obligor by a Lender or any of its Affiliates: (a) Cash Management Services; (b) products under
Hedging Agreements; (c) commercial credit card and merchant card services, cash management
services and (d) other bank products or services as may be requested by any Obligor, other than
Letters of Credit;
provided
,
however
, that for any of the foregoing to be included
as an Obligation for purposes of a distribution under
Section 5.6.2
, the applicable Secured Party
and Obligor must have previously provided written notice to Agent of (i) the existence of such Bank
Product, (ii) the maximum dollar amount of obligations arising thereunder to be included as a Bank
Product Reserve (
Bank Product Amount
), and (iii) the methodology to be used by such
parties in determining the Bank Product Debt owing from time to time. The Bank Product Amount may
be changed from time to time upon written notice to Agent by the Secured Party and Obligor. No
Bank Product Amount may be established or increased at any time that a Default or Event of Default
exists, or if a reserve in such amount would cause an Overadvance
.
Bank Product Amount
: as defined in the definition of Bank Product.
Bank Product Debt
: Debt and other obligations of an Obligor relating to Bank Products.
Bank Product Reserve
: the aggregate amount of reserves established by Agent from time
to time in its discretion in respect of Bank Product Debt, which shall be at least equal to the sum
of all Bank Product Amounts.
Bankruptcy Code
: Title 11 of the United States Code, as amended from time to time or
any applicable bankruptcy, insolvency or other similar law now or hereafter in effect.
Base Rate
: the rate of interest announced by Bank of America from time to time as its
prime rate, which in any event will not be less than the rate of interest in effect on such date,
pursuant to this Agreement, for a Borrowing of LIBOR Loans with an Interest Period of one month
plus 1%. Such rate is set by Bank of America on the basis of various factors including its costs
and desired return, general economic conditions and other factors, and is used as a reference point
for pricing some loans, which may be priced at, above or below such rate. Any change in such rate
announced by Bank of America shall take effect at the opening of business on the day specified in
the public announcement of such change.
Base Rate Loan
: any Loan that bears interest based on the Base Rate.
Board of Directors
: the Board of Directors of the Company or any committee thereof
duly authorized to act on behalf of such Board of Directors.
Board of Governors
: the Board of Governors of the Federal Reserve System.
Borrowed Money
: with respect to any Obligor, without duplication, its (a) Debt that
(i) arises from the lending of money by any Person to such Obligor (other than trade payables and
accrued expenses in the Ordinary Course of Business), (ii) is evidenced by notes, drafts, bonds,
debentures, credit documents or similar instruments, (iii) accrues interest or is a type upon which
interest charges are customarily paid (excluding trade payables owing in the Ordinary Course of
Business), or (iv) was issued or assumed as full or partial payment for Property; (b) Capital
Leases; (c) reimbursement obligations with respect to letters of credit; and (d) guaranties of any
Debt of the foregoing types owing by another Person.
Borrower
: each of the Company and any other Subsidiary acceptable to Agent that is a
party to this Agreement as a Borrower as of the Restatement Effective Date or becomes party to this
Agreement as a Borrower by executing a Borrower Joinder Agreement.
Borrower Agent
: as defined in
Section 4.4
.
Borrower Joinder Agreement
: an agreement substantially in the form of
Exhibit I
or
other agreement in form and substance reasonably satisfactory to Agent, the material terms of which
shall provide that a Subsidiary of the Company shall become a party to and become bound by the
terms of this Agreement and/or the other Loan Documents in the same capacity and to the same extent
as a Borrower hereunder, in each case, to the extent each relevant Loan Document is applicable to
such Borrower.
Borrowing
: a group of Loans of one Type that are made on the same day or are converted
into Loans of one Type on the same day.
Borrowing Base
: on any date of determination, an amount equal to the lesser of (a) the
aggregate amount of Revolver Commitments,
minus
the LC Reserve; or (b) the sum of the
Accounts Formula Amount,
plus
the Inventory Formula Amount,
minus
the Availability
Reserve.
Borrowing Base Certificate
: a certificate, substantially in the form of
Exhibit E
and
otherwise in form and substance reasonably satisfactory to Agent, by which Borrowers certify
calculation of the Borrowing Base.
Business Day
: (i) with respect to Base Rate Loans, any day other than a Saturday,
Sunday or other day on which commercial banks are authorized to close under the laws of, or are in
fact closed in, North Carolina and Illinois, and (ii) with respect to a LIBOR Loan, any such day on
which dealings in Dollar deposits are conducted between banks in the London interbank Eurodollar
market.
Capital Expenditures
: all liabilities incurred, expenditures made or payments due
(whether or not made) by a Borrower or Subsidiary for the acquisition of any fixed assets, or any
improvements, replacements, substitutions or additions thereto with a useful life of more than
one year, including the principal portion of Capital Leases,
provided
, that Capital
Expenditures shall not include any such expenditures which constitute an Acquisition permitted by
Section 10.2.6
.
Capital Lease
: any lease that is required to be capitalized for financial reporting
purposes in accordance with GAAP.
Cash Collateral
: cash, and any interest or other income earned thereon, that is
delivered to Agent to Cash Collateralize any Obligations.
Cash Collateral Account
: a demand deposit, money market or other account established
by Agent at such financial institution as Agent may select in its Permitted Discretion, which
account shall be subject to Agents Liens for the benefit of Secured Parties.
Cash Collateralize
: the delivery of cash to Agent, as security for the payment of
Obligations, in an amount equal to (a) with respect to LC Obligations, 103% of the aggregate of
such LC Obligations, and (b) with respect to any inchoate, contingent or other Obligations
(including Obligations arising under Bank Products), Agents good faith estimate of the amount due
or to become due, including all fees and other amounts relating to such Obligations. Such deposits
shall not bear interest other than any interest earned on the investment of such deposits, which
investments shall be made only in Cash Equivalents and at the direction of Borrowers and at
Borrowers risk and expense.
Cash Collateralization
has a correlative meaning.
Cash Dominion Trigger Date
: the date upon which Availability is less than $12,500,000
for any day on or after the Restatement Effective Date.
Cash Dominion Trigger Period
: the period from and including the Cash Dominion Trigger
Date until the Business Day after Availability has been $12,500,000 or greater for sixty (60)
consecutive days;
provided
, that if a Cash Dominion Trigger Date shall have occurred more than two
times in any twelve (12) month period, such Cash Dominion Trigger Period shall be the period from
such third Cash Dominion Trigger Date until the first Business Day that (i) Availability has been
$12,500,000 or greater for sixty (60) consecutive days and (ii) such Business Day is at least three
hundred sixty-five (365) days after the last day of the previous Cash Dominion Trigger Period.
Cash Equivalents
: (i) marketable obligations issued or unconditionally guaranteed by,
and backed by the full faith and credit of, the United States government, maturing within 12 months
of the date of acquisition; (ii) certificates of deposit, time deposits and bankers acceptances
maturing within 12 months of the date of acquisition, and overnight bank deposits, in each case
which are issued by a commercial bank organized under the laws of the United States or any state or
district thereof, rated A-1 (or better) by S&P or P-1 (or better) by Moodys at the time of
acquisition, and (unless issued by a Lender) not subject to offset rights; (iii) repurchase
obligations with a term of not more than 30 days for underlying investments of the types described
in clauses (i) and (ii) entered into with any bank meeting the qualifications specified in clause
(ii); (iv) commercial paper rated A-1 (or better) by S&P or P-1 (or better) by Moodys, and
maturing within nine months of the date of acquisition; and (e) shares of any money market fund
that has substantially all of its assets invested continuously in the types of investments referred
to above, has net assets of at least $500,000,000 and has the highest rating obtainable from either
Moodys or S&P; and (vi) investments by Foreign Subsidiaries with
foreign governmental entities which are members of the OECD or foreign banks organized under
the laws of countries which are members of the Organization for Economic Co-Operation and
Development (the
OECD
) similar to the investments set forth above, so long as such
foreign bank has combined capital and surplus of a Dollar Equivalent of not less than $250,000,000.
Cash Management Services
: any services provided from time to time by any Lender or any
of its Affiliates to any Borrower or Subsidiary in connection with operating, collections, payroll,
trust, or other depository or disbursement accounts, including automated clearinghouse, e-payable,
electronic funds transfer, wire transfer, controlled disbursement, overdraft, depository,
information reporting, lockbox and stop payment services.
CERCLA
: the Comprehensive Environmental Response Compensation and Liability Act (42
U.S.C. § 9601
et
seq
.).
Change in Law
: the occurrence, after the date hereof, of (a) the adoption or taking
effect of any law, rule, regulation or treaty; (b) any change in any law, rule, regulation or
treaty or in the administration, interpretation or application thereof by any Governmental
Authority; or (c) the making or issuance of any request, guideline or directive (whether or not
having the force of law) by any Governmental Authority;
provided
, however, that
notwithstanding anything herein to the contrary, the Dodd-Frank Wall Street Reform and Consumer
Protection Act and all requests, rules, regulations, guidelines or directives thereunder or issued
in connection therewith shall be deemed to have been enacted, adopted or issued after the date of
this Agreement, regardless of the date enacted, adopted or issued other than any final rules,
regulations, orders, requests, guidelines or directives under the Dodd-Frank Wall Street Reform and
Consumer Protection Act that the Lenders are required to comply with prior to the date of this
Agreement.
Change of Control
: the occurrence of any of the following events: (a) any person (as
such term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the beneficial
owner (as defined in the Rules 13d-3 and 13d-5 under the Exchange Act, except for purposes of this
clause (a) such person shall be deemed to have beneficial ownership of all shares that any such
person has the right to acquire, whether such right is exercisable immediately or only after the
passage of time), directly or indirectly, of more than 35% of the total voting power of the Voting
Stock of the Company; (b) individuals who on the Original Closing Date constituted the Board of
Directors (together with any new directors whose election by such Board of Directors or whose
nomination for election by the shareholders of the Company was approved by a vote of a majority of
the directors of the Company then still in office who were either directors on the Original Closing
Date or whose election or nomination for election was previously so approved) cease for any reason
to constitute a majority of the Board of Directors then in office; (c) the merger or consolidation
of the Company with or into another Person or the merger of another Person with or into the
Company, or the sale of all or substantially all the assets of the Company (determined on a
consolidated basis) to another Person other than a transaction following which (i) in the case of a
merger or consolidation transaction, holders of securities that represented 100% of the Voting
Stock of the Company immediately prior to such transaction (or other securities into which such
securities are converted as part of such merger or consolidation transaction) own directly or
indirectly at least a majority of the voting power of the Voting Stock of the surviving Person in
such merger or consolidation transaction immediately after such transaction and substantially the
same proportion as before the transaction and (ii) in the case of a sale of assets transaction,
each transferee becomes an obligor in respect of the Obligations and
a Subsidiary of the transferor of such assets; or (d) a change of control under the
Indenture or any similar definition or concept in any Refinancing Debt of any of the foregoing.
Claims
: all liabilities, obligations, losses, damages, penalties, judgments,
proceedings, interest, costs and expenses of any kind (including remedial response costs,
reasonable attorneys fees and Extraordinary Expenses) at any time (including after Full Payment of
the Obligations, resignation or replacement of Agent, or replacement of any Lender) incurred by or
asserted against any Indemnitee in any way relating to (a) any Loans, Letters of Credit, Loan
Documents, or the use thereof or transactions relating thereto, (b) any action taken or omitted to
be taken by any Indemnitee in connection with any Loan Documents, (c) the existence or perfection
of any Liens, or realization upon any Collateral, (d) exercise of any rights or remedies under any
Loan Documents or Applicable Law, or (e) failure by any Obligor to perform or observe any terms of
any Loan Document, in each case including all costs and expenses relating to any investigation,
litigation, arbitration or other proceeding (including an Insolvency Proceeding or appellate
proceedings), whether or not the applicable Indemnitee is a party thereto.
Code
: the Internal Revenue Code of 1986.
Collateral
: all Property described in
Section 7.1
, all Property described in any
Security Documents as security for any Obligations, and all other Property that now or hereafter
secures (or is intended to secure) any Obligations.
Commitment Termination Date
: the earliest to occur of (a) the Revolver Termination
Date; (b) the date on which Borrowers terminate the Revolver Commitments pursuant to
Section 2.1.4
;
or (c) the date on which the Revolver Commitments are terminated pursuant to
Section 11.2
.
Company
: as defined in the preamble to this Agreement.
Compliance Certificate
: a certificate, in the form of
Exhibit F
or such other
certificate, in form and substance satisfactory to Agent, by which Borrowers certify compliance
with
Section 10.3
and provide the calculations for the financial convents set forth therein.
Contingent Obligation
: any obligation of a Person arising from a guaranty, indemnity
or other assurance of payment or performance of any Debt, Foreign Bank Product Debt, lease,
dividend or other obligation (
primary obligations
) of another obligor (
primary
obligor
) in any manner, whether directly or indirectly, including any obligation of such
Person under any (a) guaranty, endorsement, co-making or sale with recourse of an obligation of a
primary obligor; (b) obligation to make take-or-pay or similar payments regardless of
nonperformance by any other party to an agreement; and (c) arrangement (i) to purchase any primary
obligation or security therefor, (ii) to supply funds for the purchase or payment of any primary
obligation, (iii) to maintain or assure working capital, equity capital, net worth or solvency of
the primary obligor, (iv) to purchase Property or services for the purpose of assuring the ability
of the primary obligor to perform a primary obligation, or (v) otherwise to assure or hold harmless
the holder of any primary obligation against loss in respect thereof. The amount of any Contingent
Obligation shall be deemed to be the stated or determinable amount of the primary obligation (or,
if less, the maximum amount for which such Person may be liable under the instrument evidencing the
Contingent Obligation) or, if not stated or determinable, the maximum reasonably anticipated
liability with respect thereto.
Copyright Security Agreement
: each copyright security agreement pursuant to which an
Obligor grants to Agent, for the benefit of Secured Parties, a Lien on such Obligors interests in
its copyrights, as security for the Obligations.
CWA
: the Clean Water Act (33 U.S.C. §§ 1251
et
seq
.).
Debt
: as applied to any Person, without duplication, (a) all obligations of such
Person for borrowed money, (b) all obligations issued, undertaken or assumed as the deferred
purchase price of Property or services, but excluding trade payables and accrued obligations
incurred and being paid in the Ordinary Course of Business; (c) all Contingent Obligations; (d) all
obligations of such Person evidenced by bonds, debentures, notes or similar instruments, including
obligations so incurred in connection with the acquisition of Property, assets or businesses; (e)
all obligations of such Person under conditional sale or other title retention agreements or
incurred as financings relating to Property purchased by such Person; (f) the principal balance of
any synthetic lease, tax retention operating lease, off-balance sheet loan, or similar off-balance
sheet financing, (g) all Capital Leases; (h) all Debt of others secured by (or for which the holder
of such Debt has an existing right, contingent or otherwise, to be secured by) any Lien on Property
owned or acquired by such Person, whether or not the obligations secured thereby have been assumed;
(i) all reimbursement obligations in connection with letters of credit issued for the account of
such Person; and (j) in the case of a Borrower, the Obligations. The Debt of a Person shall
include any recourse Debt of any partnership in which such Person is a general partner or joint
venturer to the extent such Person is liable therefor as a result of such Persons ownership
interest in or other relationship with such entity, except to the extent that terms of such Debt
provide that such Person is liable therefor.
Default
: an event or condition that, with the lapse of time or giving of notice, would
constitute an Event of Default.
Default Rate
: for any Obligation (including, to the extent permitted by law, interest
not paid when due), 2% plus the interest rate otherwise applicable thereto.
Defaulting Lender
: any Lender that (a) fails to make any payment or provide funds to
Agent or any Borrower as required hereunder or fails otherwise to perform its obligations under any
Loan Document, and such failure is not cured within one Business Day, or (b) is the subject of any
Insolvency Proceeding.
Deposit Account Control Agreements
: the deposit account control agreements to be
executed by the applicable Obligor, Agent and each institution maintaining a Deposit Account (other
than payroll, trust, tax withholding, employee benefits and petty cash Deposit Accounts) for each
Obligor, in favor of Agent, for the benefit of Secured Parties, as security for the Obligations.
Distribution:
any declaration or payment of a distribution, interest or dividend on
any Equity Interest (other than payment-in-kind); or any purchase, redemption, or other acquisition
or retirement for value of any Equity Interest;
provided
, that in no event shall the (i)
cashless exercise of options, (ii) retirement of fractional shares, (iii) repurchases of Equity
Interests deemed to occur in connection with the surrender of shares of Equity Interests to satisfy
tax withholding obligations;
provided
however, that (a) the aggregate amount of such
repurchases shall not exceed $4,000,000 in any Fiscal Year, (b) no Event of Default shall have
occurred or
shall occur as a result therefrom, and (c) Availability, on a Pro Forma Basis after giving
effect to such repurchase, for each of the 30 days prior to and including the date such repurchase
is consummated, is at least $16,000,000, or (iv) the cashless exercise of warrants, constitute a
Distribution.
Dollars
and
$
: lawful money of the United States.
Dollar Equivalent
: when used in reference to Euro means the amount, at Agents spot
rate, of Dollars which would be required to purchase such amount of Euro, or the amount of Euro
that could be purchased for a particular amount in Dollars.
Domestic Subsidiary
: any direct or indirect Subsidiary of the Company that is
organized under the laws of the United States or any state, protectorate or territory of the United
States.
Dominion Account
: a special account established by Borrowers at Bank of America or
another bank acceptable to Agent, over which Agent has control (as defined in the UCC).
EBITDA
: determined on a consolidated basis for Borrowers and Subsidiaries, the sum of
(i) net income, calculated before (a) interest expense, (b) provision for income taxes, (c)
depreciation and amortization expense, (d) gains or losses arising from the sale of capital assets,
(e) gains arising from the write-up of assets, (f) any extraordinary gains, (g) non-cash charges
and expenses (other than those which represent a reserve for or actual cash item in such period or
any future period), (h) one-time non-recurring costs and expenses associated with the issuance of
Equity Interests, to the extent such costs and expenses are financed with the proceeds of such
issuance, (i) costs and expenses in connection with the termination of the Obligors existing
credit facility and the execution of the Loan Documents, (j) severance costs and expenses to the
extent paid in cash in an amount not to exceed $1,000,000 in the aggregate in any Fiscal Year, (k)
any non-cash losses resulting from mark to market accounting of Hedging Agreements, and (l)
one-time non-recurring costs and expenses in connection with the refinancing of certain of the
Existing Senior Notes, the Second Lien Term Loans and the Third Lien Notes (whether or not
consummated) in an amount not to exceed $10,000,000 minus (ii) non-cash gains (including those
resulting from mark to market accounting of Hedging Agreements) minus (iii) cash payments made in
such period to the extent such payments relate to a non-cash loss, charge or expense in any prior
period which was added back in determining EBITDA.
Eligible Assignee
: a Person that is (a) a Lender, U.S.-based Affiliate of a Lender or
Approved Fund; (b) any other financial institution approved by Agent and Borrower Agent (which
approval by Borrower Agent shall not be unreasonably withheld or delayed, and shall be deemed given
if no objection is made within three Business Days after delivery of notice of the proposed
assignment), that is organized under the laws of the United States or any state or district
thereof, has total assets in excess of $5 billion, extends asset-based lending facilities in its
ordinary course of business and whose becoming an assignee would not constitute a prohibited
transaction under Section 4975 of the Code or any other Applicable Law; and (c) during any Event of
Default, any Person reasonably acceptable to Agent in its discretion.
Eligible Account
: an Account owing to a Borrower that arises in the Ordinary Course of
Business from the sale of goods, is payable in Dollars and is deemed by Agent, in its Permitted
Discretion, to be an Eligible Account. Without limiting the foregoing, no Account shall be an
Eligible Account if (a) it is unpaid for more than 60 days after the original due date, or more
than
90 days after the original invoice date, (or, in the case of Accounts owing to a Borrower by
Volvo or Mack Truck not otherwise excluded, unpaid for more than 90 days after the original due
date or more than 120 days after the original invoice date, up to an aggregate amount of $5,000,000
at any time, for the portion of such Accounts which are unpaid for more than 90 days after the
original invoice date, to the extent the portion of such Accounts does not remain unpaid for more
than 120 days after the original invoice date); (b) 25% or more of the Accounts owing by the
Account Debtor are not Eligible Accounts under the foregoing clause; (c) when aggregated with other
Accounts owing by the Account Debtor, it exceeds 20% of the aggregate Eligible Accounts (or such
higher percentage as Agent may establish for the Account Debtor from time to time); (d) it does not
conform with a covenant or representation herein; (e) it is owing by a creditor or supplier, or is
otherwise subject to offset, counterclaim, dispute, deduction, discount, recoupment, reserve,
defense, chargeback, credit or allowance (but ineligibility shall be limited to the amount
thereof); (f) an Insolvency Proceeding has been commenced by or against the Account Debtor
(provided, that so long as an order exists permitting payment of trade creditors specifically with
respect to such Account Debtor and such Account Debtor has obtained adequate post-petition
financing to pay such Accounts, the Accounts of such Account Debtor shall not be deemed ineligible
under the provisions of this clause to the extent the order permitting such financing allows the
payment of the applicable Account; or the Account Debtor has suspended or ceased doing business, is
liquidating, dissolving or winding up its affairs, or is not Solvent; or Borrower is not able to
bring suit or enforce remedies against the Account Debtor through judicial process; (g) the Account
Debtor is organized or has its principal offices or assets outside the United States or Canada
(provided that, notwithstanding anything in this clause (g) to the contrary, Eligible Accounts may
include Accounts not otherwise excluded in an aggregate not to exceed at any time $2,000,000 owing
to a Borrower by Kenworth/Paccar, Volvo, Caterpillar or such other Account Debtor as approved by
Agent in writing); (h) it is owing by a Government Authority, unless the Account Debtor is the
United States or any department, agency or instrumentality thereof and the Account has been
assigned to Agent in compliance with the Assignment of Claims Act; (i) it is not subject to a duly
perfected, first priority Lien in favor of Agent, or is subject to any other Lien other than the
Liens described in clauses (c), (d), (f), (g), and (l) of Section 10.2.2; (j) the goods giving rise
to it have not been delivered to and accepted by the Account Debtor, the services giving rise to it
have not been accepted by the Account Debtor, or it otherwise does not represent a final sale; (k)
it is evidenced by Chattel Paper or an Instrument, promissory note or bill of exchange of any kind,
or has been reduced to judgment; (l) its payment has been extended, the Account Debtor has made a
partial payment, or it arises from a sale on a cash-on-delivery basis; (m) it arises from a sale to
an Affiliate, from a sale on a bill-and-hold, guaranteed sale, sale or return, sale on approval,
consignment, or other repurchase or return basis, or from a sale to a Person for personal, family
or household purposes; (n) it represents a progress billing or retainage; (o) it includes a billing
for interest, fees or late charges, but ineligibility shall be limited to the extent thereof; or
(p) is an account receivable owned by an Excluded Receivables Subsidiary or which the Company or
its Subsidiaries has agreed to transfer to an Excluded Receivables Subsidiary. In calculating
deli
nquent portions of Accounts under clauses (a) and (b), credit balances more than 90 days old
will be excluded.
Eligible Finished Goods Inventory
: Eligible Inventory constituting finished goods.
Eligible Inventory
: Inventory owned by a Borrower that Agent, in its Permitted
Discretion, deems to be Eligible Inventory. Without limiting the foregoing, no Inventory shall be
Eligible Inventory unless it (a) is finished goods, raw materials, or work-in-process,
packaging or shipping materials, labels, samples, display items, bags, replacement parts or
manufacturing supplies; (b) is not held on consignment, nor subject to any deposit or downpayment;
(c) is in new and saleable condition and is not damaged, defective, shopworn or otherwise unfit for
sale; (d) is not slow-moving, obsolete or unmerchantable, and does not constitute returned or
repossessed goods; (e) meets all material standards imposed by any Governmental Authority, and does
not constitute hazardous materials under any Environmental Law; (f) conforms with the covenants and
representations herein; (g) is subject to Agents duly perfected, first priority Lien, and no other
Lien other than Liens described in clauses (c), (d), (f) and (g) of
Section 10.2.2
; (h) is within
the continental United States or Canada, is not in transit except between locations of Borrowers,
and is not consigned to any Person; (i) is not subject to any warehouse receipt or negotiable
Document except to the extent Agents security interest in such warehouse receipt or negotiable
Document is perfected; (j) is not subject to any License or other arrangement that restricts such
Borrowers or Agents right to dispose of such Inventory, unless Agent has received an appropriate
Lien Waiver; and (k) is not located on leased premises or in the possession of a warehouseman,
processor, repairman, mechanic, shipper, freight forwarder or other Person, unless the lessor or
such Person has delivered a Lien Waiver or an appropriate Rent and Charges Reserve has been
established.
Eligible Raw Materials Inventory
: Eligible Inventory constituting raw materials.
Eligible Work-in-Process Inventory
: Eligible Inventory constituting work-in- process.
Enforcement Action
: any action to enforce any Obligations or Loan Documents or to
realize upon any Collateral (whether by judicial action, self-help, notification of Account
Debtors, exercise of setoff or recoupment, or otherwise).
Environmental Laws
: all Applicable Laws (including all programs, local policies,
permits and guidance promulgated by regulatory agencies), relating to public health (with respect
to exposure to hazardous substances or wastes, but excluding occupational safety and health, to the
extent regulated by OSHA) or the protection or pollution of the environment, including CERCLA, RCRA
and CWA or to the conditions of the workplace, or any emission or substance capable of causing harm
to any living organism or the environment.
Environmental Notice
: a notice from any Governmental Authority or other Person of any
possible noncompliance with, investigation of a possible violation of, litigation relating to, or
potential fine or liability under any Environmental Law, or with respect to any Environmental
Release, environmental pollution or hazardous materials, including any complaint, summons,
citation, order, claim, demand or request for correction, remediation or otherwise.
Environmental Release
: a release as defined in CERCLA or under any other Environmental
Law.
Equity Interest
: the interest of any (a) shareholder in a corporation, company, or
beneficial interests in a trust or other equity ownership interest of a Person and any warrants,
options, or other rights entitling the holder thereof to purchase or acquire any such equity
interest; (b) partner in a partnership (whether general, limited, limited liability or joint
venture); (c) member in a limited liability company; or (d) other Person having any other form of
equity security or ownership interest.
ERISA
: the Employee Retirement Income Security Act of 1974.
ERISA Affiliate
: any trade or business (whether or not incorporated) under common
control with an Obligor within the meaning of Section 414(b) or (c) of the Code (and Sections
414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code).
ERISA Event
: (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal
by any Obligor or ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a
plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a
cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a
complete or partial withdrawal by any Obligor or ERISA Affiliate from a Multiemployer Plan or
notification that a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent
to terminate, the treatment of a Plan amendment as a termination under Section 4041 or 4041A of
ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer
Plan; (e) any Obligor or ERISA Affiliate fails to meet any funding obligations with respect to any
Pension Plan or Multiemployer Plan, or requests a minimum funding waiver; (f) an event or condition
which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of
a trustee to administer, any Pension Plan or Multiemployer Plan; or (g) the imposition of any
liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under
Section 4007 of ERISA, upon any Obligor or ERISA Affiliate.
Euro
or
: the single currency of the European Union as constituted by the
Treaty on European Union and as referred to in the legislative measures of the European Union for
the introduction of, changeover to or operation of the Euro in one or more member states.
Event of Default
: as defined in
Section 11
.
Exchange Act
: the U.S. Securities Exchange Act of 1934, as amended.
Excluded Collateral
: as defined in
Section 7.1
.
Excluded Receivables Subsidiary
: any Subsidiary created and operated for the sole
purpose of collecting and selling accounts receivable and assets related thereto pursuant to any
Qualified Receivables Purchase Agreement; provided that such Subsidiary may engage in necessary
corporate governance, accounting and other similar incidental transactions required in connection
with maintaining its existence.
Excluded Tax
: with respect to Agent, any Lender, Issuing Bank or any other recipient
of a payment to be made by or on account of any Obligation, (a) taxes imposed on or measured by its
overall net income (however denominated), and franchise taxes imposed on it (in lieu of net income
taxes), by the jurisdiction (or any political subdivision thereof) under the laws of which such
recipient is organized or in which its principal office is located or, in the case of any Lender,
in which its applicable Lending Office is located; (b) any branch profits taxes imposed by the
United States or any similar tax imposed by any other jurisdiction in which Borrower Agent is
located; (c) any backup withholding tax required by the Code to be withheld from amounts payable to
a Lender that has failed to comply with
Section 5.10
; and (d) in the case of a Foreign Lender, any
United States withholding tax that is (i) required pursuant to laws in force at the time such
Lender becomes a Lender (or designates a new Lending Office) hereunder, or (ii) attributable to
such Lenders failure or inability (other than as a result of a Change in Law) to comply with
Section 5.10
, except to the extent that such Foreign Lender (or its assignor, if any)
was entitled, at the time of designation of a new Lending Office (or assignment), to receive
additional amounts from Borrowers with respect to such withholding tax.
Existing Senior Notes
: the 8% Senior Notes due 2013, issued pursuant to the Indenture,
dated as of July 6, 2005, between the Company and U.S. Bank National Association, as trustee.
Extraordinary Expenses
: all costs, expenses or advances that Agent may incur during a
Default or an Event of Default, or during the pendency of an Insolvency Proceeding of an Obligor,
including those relating to (a) any audit, inspection, repossession, storage, repair, appraisal,
insurance, manufacture, preparation or advertising for sale, sale, collection, or other
preservation of or realization upon any Collateral; (b) subject to
Section 15.2
, any action,
arbitration or other proceeding (whether instituted by or against Agent, any Lender, any Obligor,
any representative of creditors of an Obligor or any other Person) in any way relating to any
Collateral (including the validity, perfection, priority or avoidability of Agents Liens with
respect to any Collateral), Loan Documents, Letters of Credit or Obligations, including any lender
liability or other Claims; (c) the exercise, protection or enforcement of any rights or remedies of
Agent in, or the monitoring of, any Insolvency Proceeding; (d) settlement or satisfaction of any
taxes, charges or Liens with respect to any Collateral; (e) any Enforcement Action; (f) negotiation
and documentation of any modification, waiver, workout, restructuring or forbearance with respect
to any Loan Documents or Obligations; and (g) Protective Advances. Such costs, expenses and
advances include transfer fees, Other Taxes, storage fees, insurance costs, permit fees, utility
reservation and standby fees, legal fees, appraisal fees, brokers fees and commissions,
auctioneers fees and commissions, accountants fees, environmental study fees, wages and salaries
paid to employees of any Obligor or independent contractors in liquidating any Collateral, and
travel expenses.
Fee Letter
: the Fee Letter, dated as of April 26, 2011, between Agent and the Company
executed in connection with the transactions contemplated by this Agreement.
Financial Covenant Trigger Date
: the date upon which Availability is less than
$10,000,000 for any day on or after the Restatement Effective Date.
Financial Covenant Trigger Period
: the period from and including the Financial
Covenant Trigger Date until the Business Day after Availability has been $10,000,000 or greater for
sixty (60) consecutive days.
Financial Reporting Trigger Date
: the first date upon which the outstanding balance of
Revolver Loans is greater than zero for any day on or after the Restatement Effective Date.
Fiscal Month
: each fiscal month of Borrowers and Subsidiaries for accounting and tax
purposes.
Fiscal Quarter
: each period of three Fiscal Months, commencing on the first day of a
Fiscal Year.
Fiscal Year
: the fiscal year of Borrowers and Subsidiaries for accounting and tax
purposes, ending on or about December 31 of each year.
Fixed Charge Coverage Ratio
: the ratio, determined on a consolidated basis for
Borrowers and their Subsidiaries as of the last day of the period consisting of the most recent
four Fiscal Quarters of (a) EBITDA
minus
Capital Expenditures and net cash taxes paid
(not less than $0) for such period, to (b) Fixed Charges for such period.
Fixed Charges
: the sum of (i) interest expense (other than payment-in-kind or
amortization of fees), (ii) all scheduled principal payments (as such may have been reduced by
prior prepayments) and all prepayments made on Borrowed Money, and (iii) cash Distributions made
by the Company.
FLSA
: the Fair Labor Standards Act of 1938.
Foreign Bank Product Debt
: Debt and other obligations of a Foreign Subsidiary relating
to Bank Products.
Foreign Lender
: any Lender that is organized under the laws of a jurisdiction other
than the laws of the United States, or any state or district thereof.
Foreign Plan
: any employee benefit plan or arrangement (a) maintained or contributed
to by any Obligor or Subsidiary that is not subject to the laws of the United States; or (b)
mandated by a government other than the United States for employees of any Obligor or Subsidiary.
Foreign Subsidiary
: a Subsidiary that is a controlled foreign corporation under
Section 957 of the Code.
Full Payment
: with respect to any Obligations (other than contingent obligations not
then due and owing or for which no claim has been made), (a) the full cash payment thereof,
including any interest, fees and other charges accruing during an Insolvency Proceeding (whether or
not allowed in the proceeding); (b) if such Obligations are LC Obligations or are otherwise
contingent and asserted or likely to be asserted, Cash Collateralization thereof (or delivery of a
standby letter of credit reasonably acceptable to Agent in its discretion, in the amount of
required Cash Collateral); and (c) a release of any Claims of Obligors against Agent, Lenders and
Issuing Bank arising on or before the payment date. No Loans shall be deemed to have been paid in
full until all Revolver Commitments related to such Loans have expired or been terminated.
GAAP
: generally accepted accounting principles in effect in the United States from
time to time.
Governmental Approvals
: all authorizations, consents, approvals, licenses and
exemptions of, registrations and filings with, and required reports to, all Governmental
Authorities.
Governmental Authority
: any federal, state, municipal, foreign or other governmental
department, agency, commission, board, bureau, court, tribunal, instrumentality, political
subdivision, local authority, council, regulatory body or other entity or officer exercising
executive, legislative, judicial, regulatory or administrative functions for or pertaining to any
government or court, in each case whether associated with the United States, a state, district or
territory thereof.
Guarantor
: any Person who guarantees payment or performance of any Obligations
Guarantor Payment
: as defined in
Section 5.11.3
.
Guaranty
: each guaranty agreement executed by a Guarantor in favor of Agent.
Hedging Agreement
: an agreement relating to any swap, cap, floor, collar, option,
forward, cross right or obligation, or combination thereof or similar transaction, with respect to
interest rate, foreign exchange, currency, commodity, credit or equity risk.
Immaterial Subsidiary
: any Subsidiary of the Company (a) the assets of which
Subsidiary constitute less than or equal to 1% of the total assets of the Company and its
Subsidiaries on a consolidated basis and collectively with all Immaterial Subsidiaries, less than
or equal to 5% of the total assets of the Company and its Subsidiaries on a consolidated basis, and
(b) the revenues of which Subsidiary account for less than or equal to 1% of the total revenues of
the Company and its Subsidiaries on a consolidated basis and collectively with all Immaterial
Subsidiaries, less than or equal to 5% of the total revenues of the Company and its Subsidiaries on
a consolidated basis.
Indemnified Taxes
: Taxes other than Excluded Taxes.
Indemnitees
: Agent Indemnitees, Lender Indemnitees, Issuing Bank Indemnitees and Bank
of America Indemnitees.
Indenture
: the Indenture, dated as of April 26, 2011, between the Company and U.S.
Bank National Association, as Trustee and Collateral Agent, with respect to the Companys Second
Lien Notes, or any Refinancing Debt in respect thereof.
Indenture Formula Amount
: the amount of Revolver Loans that may be incurred by the
Company and its Subsidiaries pursuant to Section 4.03(b)(1) of the Indenture as in effect on the
date hereof.
Insolvency Proceeding
: any case or proceeding commenced by or against a Person under
any state, federal or foreign law for, or any agreement of such Person to, (a) the entry of an
order for relief under the Bankruptcy Code or any other insolvency, debtor relief or debt
adjustment law; (b) the appointment of a receiver, trustee, liquidator, administrator, conservator
or other custodian or similar officer for such Person or any part of its Property; or (c) a general
assignment or trust mortgage for the benefit of creditors.
Intellectual Property
: all intellectual and similar Property of a Person, including
inventions, designs, patents, copyrights, trademarks, service marks, trade names, trade secrets,
confidential or proprietary information, customer lists, know-how, design rights, software and
databases; all embodiments or fixations thereof and all related documentation, applications,
registrations and franchises; all licenses or other rights to use any of the foregoing; and all
books and records relating to the foregoing.
Intellectual Property Claim
: any claim or assertion (whether in writing, by suit or
otherwise) that a Borrowers or Subsidiarys ownership, use, marketing, sale or distribution of any
Inventory, Equipment, Intellectual Property or other Property violates another Persons
Intellectual Property.
Intercreditor Agreement
: the Intercreditor Agreement, dated as of April 26, 2011,
among the Agent, the Company and U.S. Bank National Association, as trustee and as second priority
agent.
Interest Period
: as defined in
Section 3.1.3
.
Inventory Formula Amount
: the sum of (A) the lesser of (1) 65% of the Value of
Eligible Finished Goods Inventory and (2) 85% of the NOLV Percentage of the Eligible Finished Goods
Inventory;
plus
(B) the lesser of (1) 65% of the Value of Eligible Raw Materials Inventory
and (2) 85% of the NOLV Percentage of Eligible Raw Materials Inventory;
plus
(C) the lesser
of (i) 50% of the Value of Work-In-Progress Inventory and (ii) 85% of the NOLV Percentage of
Work-In-Progress Inventory.
Inventory Reserve
: reserves established by Agent to reflect factors that may
negatively impact the Value of Inventory, including change in salability, obsolescence,
seasonality, theft, shrinkage, imbalance, change in composition or mix, markdowns and vendor
chargebacks.
Investment
: any Acquisition; any acquisition of record or beneficial ownership of any
Equity Interests of a Person; or any loan, advance or capital contribution to or other investment
in any other Person.
IRS
: the United States Internal Revenue Service.
Issuing Bank
: Bank of America or an Affiliate of Bank of America.
Issuing Bank Indemnitees
: Issuing Bank and its officers, directors, employees,
Affiliates, agents and attorneys.
LC Application
: an application by Borrower Agent to Issuing Bank for issuance of a
Letter of Credit, in form and substance reasonably satisfactory to Issuing Bank.
LC Conditions
: the following conditions necessary for issuance of a Letter of Credit:
(a) each of the conditions set forth in
Section 6
; (b) after giving effect to such issuance, total
LC Obligations do not exceed the Letter of Credit Subline, no Overadvance exists and, if no
Revolver Loans are outstanding, the LC Obligations do not exceed the Borrowing Base (without giving
effect to the LC Reserve for purposes of this calculation); (c) the expiration date of such Letter
of Credit is (i) no more than 365 days from issuance, in the case of standby Letters of Credit,
(ii) no more than 120 days from issuance, in the case of documentary Letters of Credit, and (iii)
at least 10 Business Days prior to the Revolver Termination Date (except, in each case, for Letters
of Credit which include an automatic renewal provision); (d) the Letter of Credit and payments
thereunder are denominated in Dollars; (e) the purpose and form of the proposed Letter of Credit is
reasonably satisfactory to Agent and Issuing Bank in their discretion; and (f) prior to or upon
giving effect to the issuance of such Letter of Credit, no Default or Event of Default exists or
would exist.
LC Documents
: all documents, instruments and agreements (including LC Requests and LC
Applications) delivered by Borrowers or any other Person to Issuing Bank or Agent in connection
with issuance, amendment or renewal of, or payment under, any Letter of Credit.
LC Obligations
: the sum (without duplication) of (a) all amounts owing by Borrowers
for any drawings under Letters of Credit; (b) the stated amount of all outstanding Letters of
Credit; and (c) all fees and other amounts due and owing with respect to Letters of Credit.
LC Request
: a request for issuance of a Letter of Credit, to be provided by Borrower
Agent to Issuing Bank, in form satisfactory to Agent and Issuing Bank.
LC Reserve
: the aggregate of all LC Obligations, other than (a) those that have been
Cash Collateralized; (b) if no Event of Default exists, those constituting charges or other amounts
owing to the Issuing Bank; and (c) all fees owing with respect to Letters of Credit.
Lender Indemnitees
: Lenders and their officers, directors, employees, Affiliates,
agents and attorneys.
Lenders
: as defined in the preamble to this Agreement, including Agent in its capacity
as a provider of Swingline Loans and any other Person who hereafter becomes a Lender pursuant to
an Assignment and Acceptance.
Lending Office
: the office designated as such by the applicable Lender at the time it
becomes party to this Agreement or thereafter by notice to Agent and Borrower Agent.
Letter of Credit
: any standby or documentary letter of credit issued by Issuing Bank
for the account of a Borrower, or any indemnity, guarantee, exposure transmittal memorandum or
similar form of credit support issued by Agent or Issuing Bank for the benefit of a Borrower.
Letter of Credit Subline: $10,000,000.
LIBOR
: for any Interest Period with respect to a LIBOR Loan, the per annum rate of
interest (rounded upward, if necessary, to the nearest 1/8th of 1%), determined by Agent at
approximately 11:00 a.m. (London time) two Business Days prior to commencement of such Interest
Period, for a term comparable to such Interest Period, equal to (a) the British Bankers Association
LIBOR Rate (
BBA LIBOR
), as published by Reuters (or other commercially available source
designated by Agent); or (b) if BBA LIBOR is not available for any reason, the interest rate at
which Dollar deposits in the approximate amount of the LIBOR Loan would be offered by Bank of
Americas London branch to major banks in the London interbank Eurodollar market. If the Board of
Governors imposes a Reserve Percentage with respect to LIBOR deposits, then LIBOR shall be the
foregoing rate, divided by 1 minus the Reserve Percentage.
LIBOR Loan
: each set of LIBOR Revolver Loans having a common length and commencement
of Interest Period.
LIBOR Revolver Loan
: a Revolver Loan that bears interest based on LIBOR.
License
: any license or agreement under which an Obligor is authorized to use
Intellectual Property in connection with (a) any manufacture, marketing, distribution or
disposition of Collateral, (b) any use of Property or (c) any other conduct of its business.
Licensor
: any Person from whom an Obligor obtains the right to use any Intellectual
Property.
Lien
: any Persons interest in Property securing an obligation owed to, or a claim by,
such Person, whether such interest is based on common law, statute or contract, including liens
(statutory or other), mortgages, collateral assignments, deposit arrangements, charges,
preferences, priorities or other security arrangements of any kind or nature whatsoever (including
any agreement to give any of the foregoing any conditional sale or retention of title agreement,
any financing or similar agreement), security interests, pledges, hypothecations, statutory trusts,
reservations, exceptions, encroachments, easements, rights-of-way, covenants, conditions,
restrictions, leases, and other title exceptions and encumbrances affecting Property;
provided
,
however
, that non-exclusive licenses of Intellectual Property in the
Ordinary Course of Business are not Liens.
Lien Waiver
: an agreement, in form and substance reasonably satisfactory to Agent, by
which (a) for any Collateral located on leased premises, the lessor waives or subordinates any Lien
it may have on the Collateral, and agrees to permit Agent to enter upon the premises and remove the
Collateral or to use the premises to store or dispose of the Collateral; (b) for any Collateral
held by a warehouseman, processor, shipper, customs broker or freight forwarder, such Person waives
or subordinates any Lien it may have on the Collateral, agrees to hold any Documents in its
possession relating to the Collateral as agent for Agent, and agrees to deliver the Collateral to
Agent promptly following request; (c) for any Collateral held by a repairman, mechanic or bailee,
such Person acknowledges Agents Lien, waives or subordinates any Lien it may have on the
Collateral, and agrees to deliver the Collateral to Agent promptly following request; and (d) for
any Collateral subject to a Licensors Intellectual Property rights, the Licensor grants to Agent
the right, vis-à-vis such Licensor, to enforce Agents Liens with respect to the Collateral,
including the right to dispose of it with the benefit of the Intellectual Property, whether or not
a default exists under any applicable License.
Loan
: a Revolver Loan.
Loan Account
: the loan account established by each Lender on its books pursuant to
Section 5.8
.
Loan Documents
: this Agreement, Other Agreements and Security Documents.
Loan Year
: each 12 calendar month period commencing on the Original Closing Date and
on each anniversary of the Original Closing Date.
Margin Stock
: as defined in Regulation U of the Board of Governors.
Material Adverse Effect
: the effect of any event or circumstance that, taken alone or
in conjunction with other events or circumstances, (a) has or could be reasonably expected to have
a material adverse effect on the business, operations, Properties or financial condition of the
Obligors, taken as a whole, on the value of a material portion of the Collateral, on the
enforceability of the Loan Documents, or on the validity or priority of Agents Liens on the
Collateral; (b) materially impairs the ability of any Obligor to perform any obligations under the
Loan Documents, including repayment of any Obligations; or (c) otherwise impairs the ability of
Agent or any Lender to enforce or collect any Obligations or to realize upon any Collateral.
Material Contract
: any agreement or arrangement to which an Obligor is party (other
than the Loan Documents) for which breach, termination, nonperformance or failure to renew could
reasonably be expected to have a Material Adverse Effect.
Moodys
: Moodys Investors Service, Inc., and its successors.
Mortgage
: each mortgage, fixed charge, deed of trust or deed to secure debt pursuant
to which a Borrower grants to Agent, for the benefit of Secured Parties, a Lien upon the Real
Estate owned by such Borrower, as security for the Obligations.
Multiemployer Plan
: any employee benefit plan of the type described in Section
4001(a)(3) of ERISA, to which any Obligor or ERISA Affiliate makes or is obligated to make
contributions, or during the preceding five plan years, has made or been obligated to make
contributions.
Net Proceeds
: with respect to an Asset Disposition, proceeds (including, when
received, any deferred or escrowed payments) received by an Obligor in cash from such Asset
Disposition, net of (a) reasonable and customary costs and expenses actually incurred in connection
therewith, including legal fees and sales commissions; (b) amounts applied to repayment of Debt
secured by a Permitted Lien on Collateral sold; (c) transfer or similar taxes and the Companys
good faith estimate of income taxes paid or payable in connection with such sale; (d) reserves for
indemnities or purchase price adjustments, until such reserves are no longer needed and (e) the
Companys good faith estimate of payments required to be made with respect to unassumed liabilities
relating to the assets sold (provided that, to the extent such cash proceeds are not so used within
180 days of such Asset Disposition, such cash proceeds shall constitute Net Proceeds)
NOLV Percentage
: the net orderly liquidation value of Borrowers Inventory, expressed
as a percentage, expected to be realized at an orderly, negotiated sale held within a reasonable
period of time, net of all liquidation expenses, as determined from the most recent appraisal of
Borrowers Inventory performed by an appraiser and on terms satisfactory to Agent.
Notes
: each Revolver Note.
Notice of Borrowing
: a Notice of Borrowing to be provided by Borrower Agent to request
a Borrowing of Revolver Loans, in substantially the form attached hereto as
Exhibit G
or otherwise
in form reasonably satisfactory to Agent.
Notice of Conversion/Continuation
: a Notice of Conversion/Continuation to be provided
by Borrower Agent to request a conversion or continuation of any Loans as LIBOR Loans, in
substantially the form attached hereto as
Exhibit H
or otherwise in form reasonably satisfactory to
Agent.
Obligations
: all (a) principal of and premium, if any on the Loans, (b) LC Obligations
and other obligations of Obligors with respect to Letters of Credit, (c) interest, expenses, fees
and other sums payable by Obligors under Loan Documents, (d) obligations of Obligors under any
indemnity for Claims, (e) Extraordinary Expenses, (f) Bank Product Debt and (g) other Debts,
obligations and liabilities of any kind owing by Obligors pursuant to the Loan Documents, whether
now existing or hereafter arising, whether evidenced by a note or other writing, whether allowed in
any Insolvency Proceeding, whether arising from an extension of credit, issuance of a letter of
credit, acceptance, loan, guaranty, indemnification or otherwise, and whether direct or indirect,
absolute or contingent, due or to become due, primary or secondary, or joint or several.
Obligor
: each Borrower, Guarantor or other Person that is liable for payment of any
Obligations or that has granted a Lien in favor of Agent on its assets to secure any Obligations.
Ordinary Course of Business
: the ordinary course of business of any Borrower or
Subsidiary, consistent with past practices and undertaken in good faith.
Organic Documents
: with respect to any Person, as applicable, its charter, certificate
or articles of incorporation, bylaws, articles of organization, articles of association,
memorandum, limited liability agreement, operating agreement, members agreement, shareholders
agreement, partnership agreement, certificate of partnership, certificate of formation, voting
trust agreement, or similar agreement or instrument governing the formation or operation of such
Person.
Original Closing Date
: January 7, 2009.
Original Loan Agreement
: the Loan and Security Agreement, dated as of January 7, 2009,
by and among the Company, each other Borrower party thereto, the financial institutions party
thereto as lenders and Bank of America, N.A., as agent, as amended, modified or supplemented prior
to the Restatement Effective Date.
OSHA
: the Occupational Safety and Health Act of 1970.
Other Agreement
: each Note; LC Document; Fee Letter; Lien Waiver; Related Real Estate
Document; Borrowing Base Certificate, Compliance Certificate, financial statement or report
delivered hereunder; or other document or agreement (other than this Agreement or a Security
Document), including any Post-Closing Agreement, now or hereafter delivered by an Obligor or other
Person (providing that an Obligor is also party to thereto) to Agent or a Lender in connection with
any transactions relating hereto.
Other Taxes
: all present or future stamp or documentary taxes or any other excise or
property taxes, charges or similar levies arising from any payment made under any Loan Document or
from the execution, delivery or enforcement of, or otherwise with respect to, any Loan Document.
Overadvance
: as defined in
Section 2.1.5
.
Overadvance Loan
: a Base Rate Loan made when an Overadvance exists or is caused by the
funding thereof.
Participant
: as defined in
Section 14.2
.
Patent Security Agreement
: each patent security agreement pursuant to which an Obligor
grants to Agent, for the benefit of Secured Parties, a Lien on such Obligors interests in its
patents, as security for the Obligations.
Patriot Act
: the Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. No. 107-56, 115 Stat. 272 (2001),
as amended.
Payment Item
: each check, draft or other item of payment payable to a Borrower,
including those constituting proceeds of any Collateral.
PBGC
: the Pension Benefit Guaranty Corporation.
Percentage
: for any Lender (other than any Defaulting Lender), as applicable, the
percentage of the aggregate Revolver Commitments represented by its Revolver Commitment.
Pension Plan
: any employee pension benefit plan (as such term is defined in Section
3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and is
sponsored or maintained by any Obligor or ERISA Affiliate or to which the Obligor or ERISA
Affiliate contributes or has an obligation to contribute, or in the case of a multiple employer or
other plan described in Section 4064(a) of ERISA, has made contributions at any time during the
preceding five plan years.
Pensions Regulator
: the body corporate called the Pensions Regulator established
under Part I of the Pension Act.
Permitted Acquisition
: any Acquisition as to which all of the following conditions are
satisfied or waived: (a) such Acquisition is an acquisition of all or substantially all of the
assets or of all of the outstanding Equity Interests of another Person, involving a line or lines
of business or a distribution channel which is related, similar or complementary to, or supportive
of the lines of business or distribution channels in which Borrowers and their Subsidiaries,
considered as an entirety, are engaged on the Restatement Effective Date; (b) such Acquisition is
not actively opposed by the Board of Directors (or similar governing body) of the selling Person or
the Person whose equity interests are to be acquired; (c) Availability, on a Pro Forma Basis after
giving effect to such Acquisition, for each of the 30 days prior to and including the date such
Acquisition is consummated, is at least $16,000,000; (d) the aggregate Purchase Consideration for
all such Acquisitions does not exceed, in any period of 12 consecutive months, $10,000,000
(
provided
that the aggregate Purchase Consideration for all Acquisitions in any period of
12 consecutive months may exceed $10,000,000, but not in excess of $50,000,000 if, on a Pro Forma
Basis after giving effect to such Acquisition, for each of the 30 days prior to and including the
date such Acquisition is consummated, no Revolver Loans will be incurred or outstanding); (e) as
soon as available, but not less than ten (10) days prior to the closing of such Acquisition (or
such shorter time period as Agent may otherwise agree), the Company shall submit to Agent (i)
notice of such Acquisition together with a reasonably detailed description of the business or
assets to be acquired, (ii) copies of all available business and financial information as
reasonably requested by Agent relating to such Acquisition, (iii) pro forma financial statements,
(iv) audited financial statements for the acquired business or distribution channel for the most
recent fiscal year, unless the same are unavailable, and the most recent unaudited financial
statements for the acquired business or distribution channel, and (v) a certificate of the chief
financial officer of Borrower Agent certifying that such pro forma financial statements present
fairly in all material respects the financial condition of Borrowers and their Subsidiaries on a
consolidated basis as of the date thereof after giving effect to such Acquisition, and which shall
include a representation and warranty as to compliance with each of the other criteria for a
Permitted Acquisition; (f) reasonably prior, and in any event at least (i) 10 days prior to the
completion of such Acquisition (or such shorter time period as Agent may otherwise agree), the
Company shall deliver to Agent lien search reports related to the assets or business subject to the
Acquisition, (ii) at least five days prior to the date of such Acquisition (or such shorter time
period as Agent may otherwise agree), the Company shall deliver substantially final copies of the
related purchase agreement, together with lien release letters and other documents as Agent may
reasonably require to evidence the termination of Liens (other than
Permitted Liens) and any other information as Agent may reasonably request; (g) consents have
been obtained in favor of Agent and Lenders to the collateral assignment of rights and indemnities
under the related acquisition documents or the related acquisition documents shall contain the
right of the purchaser to collaterally assign the rights and indemnities thereunder to a third
party, and, in either case, such rights and indemnities shall have been collaterally assigned to
Agent and Lenders and all consents related thereto shall have been obtained; (h) if the Person so
acquired is intended to be a Borrower and/or the assets acquired in such Acquisition are intended
to be included in the Borrowing Base immediately upon the consummation of the Acquisition (rather
than at a later date upon request), then prior to such Acquisition (1) Agent shall have been
provided with such information as it shall reasonably request to complete its evaluation of any
such Person (including all information necessary to comply with the Patriot Act) and such
Collateral and (2) the Asset Review and Approval Conditions shall have been satisfied; and (i)
after giving effect to the Acquisition, Agent has a perfected and continuing first priority
security interest in and Lien on all Revolving Credit Priority Collateral and subject to the
Intercreditor Agreement, a perfected security interest in and Lien on all other assets that are the
subject of such Acquisition (subject, in each case, to Permitted Liens). Notwithstanding the
foregoing, no assets acquired pursuant to a Permitted Acquisition shall be included in the
Borrowing Base unless (i) Agent shall have been provided with such information as it shall
reasonably request to complete its evaluation of any Person (including all information necessary to
comply with the Patriot Act) and (ii) the Asset Review and Approval Conditions shall have been
satisfied.
Permitted Asset Disposition
: (a) a sale of Inventory in the Ordinary Course of
Business; (b) a disposition of Property that, in the aggregate during any 12 consecutive Fiscal
Month period, has a fair market or book value (whichever is more) of $5,000,000 or less,
provided
that the Net Proceeds of such disposition are used to acquire Property useful in the business of
the Obligors within 180 days (or such longer period as Agent shall consent to in writing) of
receipt of such Net Proceeds (or a binding commitment to acquire such Property is entered into
within 180 days and such reinvestment is actually made within 360 days, or, in each case, such
longer period as Agent shall consent to in writing), and to the extent the Net Proceeds exceed
$500,000, Borrower shall have delivered an officers certificate within five Business Days of such
disposition stating such intent; (c) a disposition of Inventory that is obsolete, unmerchantable or
otherwise unsaleable in the Ordinary Course of Business and sales, discounts and write-offs of
Accounts in the Ordinary Course of Business; (d) termination of a lease, sublease, license,
sublicense, use agreement or similar agreement of real or personal Property which could not
reasonably be expected to have a Material Adverse Effect; (e) the leasing (including subleasing) or
licensing (including sublicensing) of Intellectual Property, personal Property or real Property in
the Ordinary Course of Business or the abandonment of Intellectual Property in the Ordinary Course
of Business; (f) dispositions of obsolete, uneconomical, negligible, worn-out or surplus property;
(g) sales of Cash Equivalents and marketable securities; (h) sales, transfers, leases, exchanges
and dispositions (1) among the Obligors, (2) from non-Obligors to the Obligors, (4) among
non-Obligors, or (5) to the extent constituting a Permitted Foreign Investment, from Obligors or
Domestic Subsidiaries to non-Obligor Subsidiaries; (i) granting of Permitted Liens; (j) mergers,
consolidations, amalgamations, liquidations and dissolutions to the extent permitted by
Section
10.2.10
; (k) termination of any Hedging Agreement; (l) any disposition of Real Estate to a
Governmental Authority as a result of casualty or a condemnation of such Real Estate; (m) issuances
of Equity Interests to qualifying directors of Foreign Subsidiaries; (n) the capitalization or
forgiveness of Debt owed to it by other Obligors or Subsidiaries if such capitalization or
forgiveness is required in order to comply with so-called thin capitalization rules; (o) the
cancellation, forgiveness, set off or acceptance of prepayments of Debt owed to a Borrower to
the extent not otherwise prohibited by the terms of this Agreement; (p) the UK Restructuring; (q)
dispositions set forth on
Schedule 10.2.7
; (r) sale of accounts receivable and related rights or
assets pursuant to any Qualified Receivables Transactions and preliminary intercompany transfers of
accounts receivable and related rights or assets in connection therewith; and (s) dispositions
approved in writing by Agent and Required Lenders.
Permitted Contingent Obligations
: Contingent Obligations (a) arising from endorsements
of Payment Items for collection or deposit in the Ordinary Course of Business; (b) arising from
Hedging Agreements permitted hereunder; (c) existing on the Original Closing Date, and any
extension or renewal thereof that does not increase the amount of such Contingent Obligation when
extended or renewed; (d) incurred in the Ordinary Course of Business with respect to surety, appeal
or performance bonds, or other similar obligations; (e) arising from customary indemnification
obligations in favor of (i) purchasers in connection with Permitted Asset Dispositions and (ii)
sellers in connection with Acquisitions permitted hereunder; (f) arising under the Loan Documents;
or (g) in an aggregate amount of $5,000,000 or less at any time.
Permitted Discretion
: Agents reasonable credit judgment (from the perspective of an
asset-based lender), exercised in good faith, based upon its consideration of any factor that it
reasonably believes to be relevant, including, without limitation, any factor that it believes (a)
could adversely affect the quantity, mix or value of Collateral (including any Applicable Law that
may inhibit collection of an Account), the enforceability or priority of Agents Liens, or the
amount in liquidation of any Collateral; (b) suggests that any collateral report or financial
information delivered by any Obligor is incomplete, inaccurate or misleading in any material
respect; (c) increases the likelihood of any Insolvency Proceeding involving an Obligor, or (d)
creates or could result in a Default or Event of Default. In exercising such judgment, Agent may
consider any factors that could increase the credit risk of lending to Borrowers on the security of
the Collateral. In exercising its Permitted Discretion with respect to modifying eligibility
criteria for Eligible Accounts and Eligible Inventory, Agent will use commercially reasonable
efforts to notify Borrower Agent prior to modifying the criteria provided in the definitions
thereof on the Original Closing Date or thereafter.
Permitted Foreign Investment
: an Investment (including any Permitted Acquisition) by
any Borrower in a Foreign Subsidiary which is in the form of an intercompany transfer of Property
(other than Accounts or Inventory) or a loan or advance (except that, (i) solely to the extent
required by law in the applicable foreign jurisdiction, any portion of any Investment may be made
in the form of an equity contribution and (ii) in the case of any Permitted Acquisition, such
Investment may be made in the form of Equity Interests); provided, that (i) any loan or advance is
evidenced by a promissory note in favor of such Borrower, (ii) any promissory note is pledged to
Agent as security for the Obligations in form reasonably satisfactory to Agent, (iii) Availability,
on a Pro Forma Basis after giving effect to such Investment, for each of the 30 days prior to and
including the date such Investment is consummated, is at least $16,000,000, and (iv) the aggregate
amount of all Permitted Foreign Investments (other than Permitted Acquisitions) made in any period
of 12 consecutive months does not exceed in the aggregate (net of any return of capital actually
received in respect of any previous Permitted Foreign Investment) $10,000,000 (provided that the
aggregate amount of all Permitted Foreign Investments (including any Permitted Acquisitions) in any
period of 12 consecutive months may exceed $10,000,000, but not exceed $70,000,000, if, on a Pro
Forma Basis after giving effect to such Permitted Foreign Investment, for each of the 30 days prior
to and including the date such
Investment is consummated, no Revolver Loans will be incurred or outstanding), and in the case
of any Investment in any Foreign Subsidiary which has incurred Debt pursuant to Section 10.2.1(n),
less the aggregate amount of all other Debt incurred by such Foreign Subsidiary.
Permitted Lien
: as defined in
Section 10.2.2
.
Permitted Notes Redemption
: as defined in
Section 10.2.9
.
Permitted Purchase Money Debt
: Purchase Money Debt of Borrowers and Subsidiaries that
is unsecured or secured only by a Purchase Money Lien, as long as the aggregate amount does not
exceed $5,000,000 at any time.
Person
: any individual, corporation, limited liability company, partnership, joint
venture, joint stock company, land trust, business trust, unincorporated organization, Governmental
Authority or other entity.
Plan
: any employee benefit plan (as such term is defined in Section 3(3) of ERISA)
established by an Obligor or, with respect to any such plan that is subject to Section 412 of the
Code or Title IV of ERISA, an ERISA Affiliate.
Pledge Agreement
: collectively, the Pledge Agreement, dated as of the Original Closing
Date, among the Company and each other Domestic Subsidiary party thereto, as pledgors and Bank of
America, N.A., as pledgee, and each other pledge agreement executed by an Obligor in favor of
Agent.
Preferred Stock
: as applied to the Equity Interests of any Person, the Equity
Interests of any class or classes (however designated) which are preferred as to the payment of
dividends or distributions, or as to the distribution of assets upon any voluntary or involuntary
liquidation or dissolution of such Person, over Equity Interests of any other class of such Person.
Pro Forma Basis
: relative to a Specified Transaction, means that such Specified
Transaction and the following transactions in connection therewith shall be deemed to have occurred
as of the first day of the applicable period of measurement: (a) income statement items (whether
positive or negative) attributable to the property or Person subject to such Specified Transaction,
(i) in the case of an Acquisition or permitted Investment described in the definition of Specified
Transaction, shall be included and (ii) in the case of a disposition of all or substantially all
of the assets of or all of the Equity Interests of any Subsidiary of a Borrower or any division or
product line of a Borrower or any of its Subsidiaries, shall be excluded, (b) any retirement of
Debt, and (c) any Debt incurred or assumed by a Borrower or any of its Subsidiaries in connection
therewith and if such Debt has a floating or formula rate, shall have an implied rate of interest
for the applicable period for purposes of this definition determined by utilizing the rate which is
or would be in effect with respect to such Debt as at the relevant date of determination.
Pro Rata
: with respect to any Lender, relative to such Lenders Revolver Commitment, a
percentage (carried out to the ninth decimal place) determined (a) while Revolver Commitments are
outstanding, by dividing the amount of such Lenders Revolver Commitment by the aggregate amount of
all Revolver Commitments, and (b) at any other time, by dividing the amount of such Lenders Loans
and LC Obligations by the aggregate amount of all outstanding Loans and LC Obligations.
Properly Contested
: with respect to any obligation of an Obligor, (i) the obligation
is subject to a bona fide dispute regarding amount or the Obligors liability to pay; (ii) the
obligation is being properly contested in good faith by appropriate proceedings promptly instituted
and diligently pursued; (iii) appropriate reserves have been established in accordance with GAAP;
(iv) the failure to pay could not reasonably be expected to have a Material Adverse Effect, nor
result in forfeiture or sale of any assets of the Obligor; (v) no Lien is imposed on assets of the
Obligor, unless bonded and stayed to the reasonable satisfaction of Agent; and (v) if the
obligation results from entry of a judgment or other order, such judgment or order is stayed
pending appeal or other judicial review.
Property
: any interest in any kind of property or asset, whether real, personal or
mixed, or tangible or intangible.
Protective Advance
: as defined in
Section 2.1.6
.
Purchase Consideration
: the aggregate, without duplication, of (i) cash paid or
payable by Borrowers and their Subsidiaries, directly or indirectly to the sellers (including the
repayment of any Debt or other obligations and payments with respect to consulting, non-compete or
other agreements as a result of such Acquisition) in connection with any Acquisition, (ii) the
Debt assumed or incurred by Borrowers and their Subsidiaries, whether in favor of the seller or any
other Person, and whether fixed or contingent, including without limitation earn-outs and/or other
contingent payments and other seller notes in connection with any Acquisition, and (iii) any other
consideration given or obligation incurred by any Borrower or Subsidiary in connection with any
Acquisition in favor of the seller or any Affiliate of the seller.
Purchase Money Debt
: (a) Debt (other than the Obligations) for payment of any of the
purchase price of fixed assets; (b) Debt (other than the Obligations) incurred within 90 days
before or after acquisition of any fixed assets, for the purpose of financing any of the purchase
price thereof; and (c) any renewals, extensions or refinancings (but not increases) thereof.
Purchase Money Lien
: a Lien that secures Purchase Money Debt, encumbering only the
fixed assets acquired with such Debt (and proceeds thereof) and constituting a Capital Lease or a
purchase money security interest under the UCC.
Qualified Receivables Transaction
: any transaction or series of transactions
designated in writing by the Agent to be a Qualified Receivables Transaction and which is entered
into by the Borrowers or their Subsidiaries, as applicable, pursuant to which the Borrowers or
their Subsidiaries, as applicable, may sell, convey or otherwise transfer to (i) any Excluded
Receivables Subsidiary or (ii) any other Person (in the case of a transfer by an Excluded
Receivables Subsidiary), or may grant a security interest in, any accounts receivable (whether now
existing or arising in the future) of the Company, and any assets related thereto, including all
collateral securing such accounts receivable, all contracts and all guarantees or other obligations
in respect of such accounts receivable, and proceeds of such accounts receivable and other assets
that are customarily transferred, or in respect of which security interests are customarily
granted, in connection with asset securitization transactions involving accounts receivable;
provided that such transaction shall not involve any recourse to any Borrower or any Subsidiary
(other than recourse only to the Excluded Receivables Subsidiary or, solely with respect to
Standard Securitization Undertakings, any other Subsidiary) for any reason other than repurchases
of non-eligible accounts receivable.
RCRA
: the Resource Conservation and Recovery Act (42 U.S.C. §§ 6991-6991i).
Real Estate
: all right, title and interest (whether as owner, lessor or lessee) in any
real Property or any buildings, structures, parking areas or other improvements thereon.
Refinancing Conditions
: the following conditions for Refinancing Debt: (a) it is in
an aggregate principal amount that does not exceed the principal amount of the Debt being extended,
renewed, refinanced or replaced (except by the amount of any accrued interest, payment in kind
interest, reasonable closing costs, expenses, fees and premium paid in connection with such
extension, renewal, refinancing or replacement); (b) it has a final maturity no sooner than, a
weighted average life no less than, and a cash interest rate no greater than, the Debt being
extended, renewed, refinanced or replaced; (c) the Debt, and/or the Liens securing the Debt, as
applicable, is subordinated to the Obligations at least to the same extent as the Debt, or the
Liens securing the Debt, as applicable, being extended, renewed, refinanced or replaced; (d) the
representations, covenants and defaults applicable to it are not, taken as a whole, less favorable
to Borrowers than those applicable to the Debt being extended, renewed, refinanced or replaced; (e)
no additional Lien is granted to secure it unless otherwise permitted hereunder; (f) the obligor or
obligors under any such Refinancing Debt are the same as the obligor(s) under the Debt being
extended, renewed, refinanced or replaced on such Debt; and (g) upon giving effect to it, no
Default or Event of Default exists.
Refinancing Debt
: Borrowed Money that is the result of an extension, renewal or
refinancing of the Second Lien Notes or Debt permitted under
Section 10.2.1(b)
,
(d)
,
(f) or (u)
, in
each case, so long as each Refinancing Condition is satisfied.
Reimbursement Date
: as defined in
Section 2.3.2
.
Related Real Estate Documents
: with respect to any Real Estate subject to a Mortgage,
the following, in form and substance satisfactory reasonably to Agent and received by Agent for
review as they become available: (a) a mortgagee title policy (or binder therefor) covering
Agents interest under the Mortgage, in a form and amount and by an insurer acceptable to Agent,
which must be fully paid on such effective date; (b) such assignments of leases, estoppel letters,
attornment agreements, consents, waivers and releases as Agent may require with respect to other
Persons having an interest in the Real Estate; (c) a current, as-built survey of the Real Estate,
containing a metes-and-bounds property description and flood plain certification, and certified by
a licensed surveyor reasonably acceptable to Agent; (d) flood insurance in an amount, with
endorsements and by an insurer reasonably acceptable to Agent, if the Real Estate is within a flood
plain; (e) a current appraisal of the Real Estate, prepared by an appraiser acceptable to Agent,
and in form and substance satisfactory to Required Lenders; (f) if available, an environmental
assessment, prepared by environmental engineers acceptable to Agent, and accompanied by such
reports, certificates, studies or data as Agent may reasonably require, which shall all be in form
and substance satisfactory to Required Lenders; and (g) an Environmental Agreement and such other
documents, instruments or agreements as Agent may reasonably require with respect to any
environmental risks regarding the Real Estate.
Rent and Charges Reserve
: the aggregate of (a) all past due rent and other amounts
owing by an Obligor to any landlord, warehouseman, processor, repairman, mechanic, shipper, freight
forwarder, broker or other Person who possesses any Collateral or could assert a Lien on any
Collateral; and (b) a reserve at least equal to three months rent and other charges that could
be payable to any such Person, unless it has executed a Lien Waiver.
Report
: as defined in
Section 12.2.3
.
Reportable Event
: any of the events set forth in Section 4043(c) of ERISA, other than
events for which the 30 day notice period has been waived.
Required Lenders
: (i) as long as three or fewer Lenders have Revolver Commitments,
then any two Lenders having, in the aggregate, Revolver Commitments in excess of 50% of the
aggregate Revolver Commitments, and (ii) as long as four or more Lenders have Revolver Commitments,
then Lenders (subject to
Section 4.2
) having (a) Revolver Commitments in excess of 50% of the
aggregate Revolver Commitments; and (b) if the Revolver Commitments have terminated, Loans in
excess of 50% of all outstanding Loans;
provided
, that the Commitments of Defaulting
Lenders shall be treated as being equal to zero for the purposes of calculating Required Lenders.
Reserve Percentage
: the reserve percentage (expressed as a decimal, rounded upward to
the nearest 1/8th of 1%) applicable to member banks under regulations issued from time to time by
the Board of Governors for determining the maximum reserve requirement (including any emergency,
supplemental or other marginal reserve requirement) with respect to Eurocurrency funding (currently
referred to as Eurocurrency liabilities).
Restatement Effective Date
: as defined in
Section 6.2
.
Restricted Investment
: any Investment by a Borrower or Subsidiary, other than (a)
Investments in Subsidiaries to the extent existing on the Restatement Effective Date and other
Investments existing on the Restatement Effective Date and set forth on
Schedule 10.2.5
; (b) Cash
Equivalents (provided, however, that, to the extent such Cash Equivalents are owned by an Obligor,
such Cash Equivalents are subject to Agents Lien and control, pursuant to documentation in form
and substance satisfactory to Agent); (c) Investments consisting of lease, utility and other
similar deposits or any other deposit permitted under
Section 10.2.2
in the Ordinary Course of
Business; (d) prepayments and deposits to suppliers in the Ordinary Course of Business; (e) Hedging
Agreements to the extent permitted by
Section 10.2.16;
(f) Investments (i) by an Obligor in any
other Obligor, or (ii) by Subsidiaries that are non-Obligors into Obligors or other non-Obligors;
(g) the establishment of wholly owned Subsidiaries to the extent they comply with
Section 10.1.9
;
(h) Investments in securities or other assets of trade creditors, customers or other Persons in the
Ordinary Course of Business that are received in settlement of bona fide disputes or pursuant to
any plan of reorganization or liquidation or similar arrangement upon the bankruptcy or insolvency
of such trade creditors or customers; (i) guarantees, Contingent Obligations and other Investments
permitted under
Section 10.2.1
; (j) Investments to the extent such Investments reflect an increase
in the value of Investments otherwise permitted under
Section 10.2.5
hereof; (k) the capitalization
or forgiveness of Debt owed to it by other Obligors or Subsidiaries if such capitalization or
forgiveness is required in order to comply with so-called thin capitalization rules; (l) the
cancellation, forgiveness, set off or acceptance of prepayments of Debt owed to such Borrower to
the extent not otherwise prohibited by the terms of this Agreement; (m) loans and advances to an
officer or employee for salary, travel expenses, commissions and similar items in the Ordinary
Course of Business, not to exceed, in the aggregate, $2,000,000 at any time outstanding; (n)
prepaid expenses and extensions of trade
credit made in the Ordinary Course of Business; (o) deposits with financial institutions
permitted hereunder; (p) Investments by an Obligor in an Excluded Receivables Subsidiary in
connection with a sale of receivables to such Excluded Receivables Subsidiary pursuant to a
Qualified Receivables Transaction; and (q) other Investments not otherwise listed above not to
exceed, in the aggregate, $1,500,000 at any time outstanding.
Restrictive Agreement
: an agreement (other than a Loan Document) that conditions or
restricts the right of any Borrower, Subsidiary or other Obligor to incur or repay Borrowed Money,
to grant Liens on any assets, to declare or make Distributions, to modify, extend or renew any
agreement evidencing Borrowed Money, or to repay any intercompany Debt.
Revolver Commitment
: for any Lender, its obligation to make Revolver Loans, and to
participate in LC Obligations up to the maximum principal amount shown on
Schedule 1.1
, or as
hereafter determined pursuant to each Assignment and Acceptance to which it is a party.
Revolver Commitments
means the aggregate amount of such commitments of all Lenders.
Revolver Loan
: a loan made pursuant to
Section 2.1
, and any Swingline Loan,
Overadvance Loan or Protective Advance.
Revolver Note
: a promissory note executed by Borrowers in favor of and at the request
of a Lender substantially in the form of
Exhibit A
, which shall be in the amount of such Lenders
Revolver Commitment and shall evidence the Revolver Loans made by such Lender.
Revolver Termination Date: April 26, 2014.
Revolving Facility Exposure
: for any Lender at any time, the sum of (i) the principal
amount of all Revolver Loans made to Borrowers by such Lender and outstanding at such time, and
(ii) such Lenders share of the LC Outstandings at such time.
Royalties
: all royalties, fees, expense reimbursement and other amounts payable by a
Borrower under a License.
S&P
: Standard & Poors Ratings Services, a division of The McGraw-Hill Companies,
Inc., and its successors.
Second Lien Note Collateral Agent
: U.S. Bank, National Association, in its capacity
as collateral agent for the Second Lien Noteholders, and any other agent in such similar capacity
pursuant to any Refinancing Debt.
Second Lien Note Documents
: the Indenture and each other document defined as a Note
Document in the Indenture.
Second Lien Noteholders
: any Person that is a Holder or Securityholder, pursuant
to and as defined in the Indenture.
Second Lien Notes
: the 7.875% Senior Secured Notes due April 15, 2019, issued by the
Company under the Indenture, in the aggregate amount of $250,000,000 (plus all interest paid in
kind).
Second Lien Term Loan Agreement
: the Loan and Security Agreement, dated as of August
4, 2009, by and among the Company, the other parties thereto, and Credit Suisse, as agent.
Second Lien Term Loans
: any Term Loan as defined in the Second Lien Term Loan
Agreement.
Secured Parties
: Agent, Issuing Bank, Lenders and providers of Bank Products.
Security Documents
: the Pledge Agreements, Guaranties, Mortgages, Copyright Security
Agreements, Patent Security Agreements, Trademark Security Agreements, Deposit Account Control
Agreements and all other documents, instruments and agreements executed and delivered by an Obligor
now or hereafter securing (or given with the intent to secure) any Obligations.
Senior Officer
: the chairman of the board, president, chief executive officer,
managing director, treasurer, controller, director of finance, chief financial officer or finance
officer of a Borrower.
Settlement Report
: a report delivered by Agent to Lenders summarizing the Revolver
Loans and participations in LC Obligations outstanding as of a given settlement date, allocated to
Lenders on a Pro Rata basis in accordance with their Revolver Commitments.
Standard Securitization Undertakings
: those representations, warranties, covenants and
indemnities entered into by the Company or any Excluded Receivables Subsidiary which are determined
in good faith by the Company to be customary in securitization transactions involving accounts
receivables.
Solvent
: as to any Person, such Person (a) owns Property whose fair saleable value is
greater than the amount required to pay all of its debts (including contingent, subordinated,
unmatured and unliquidated liabilities); (b) owns Property whose present fair saleable value (as
defined below) is greater than the probable total liabilities (including contingent, subordinated,
unmatured and unliquidated liabilities) of such Person as they become absolute and matured; (c) is
able to generally pay all of its debts as they mature; (d) has capital that is not unreasonably
small for its business and is sufficient to carry on its business and transactions and all business
and transactions in which it is about to engage; (e) is not insolvent within the meaning of
Section 101(32) of the Bankruptcy Code; and (f) has not incurred (by way of assumption or
otherwise) any obligations or liabilities (contingent or otherwise) under any Loan Documents, or
made any conveyance in connection therewith, with actual intent to hinder, delay or defraud either
present or future creditors of such Person or any of its Affiliates.
Fair saleable value
means the amount that could be obtained for assets within a reasonable time, either through
collection or through sale under ordinary selling conditions by a capable and diligent seller to an
interested buyer who is willing (but under no compulsion) to purchase on a going concern basis.
Specified Transaction
: (a) any disposition of all or substantially all the assets of
or all the Equity Interests of any Subsidiary or of any division or product line of a Borrower or
any of its Subsidiaries, (b) any Acquisition permitted hereunder, (c) any proposed incurrence of
Debt or (d) the proposed making of a Distribution, in each case, to the extent permitted hereunder.
Subordinated Debt
: Debt incurred by a Borrower that is expressly subordinate and
junior in right of payment to Full Payment of all Obligations, and is on terms (including maturity,
interest, fees, repayment, covenants and subordination) reasonably satisfactory to Agent,
provided
,
that (i) the intercompany loan owed by the Company to Bostrom Ltd. and identified on
Schedule
10.2.1
, and (ii) the intercompany loan owed by the Company to CVS Ltd. and identified on
Schedule
10.2.1
, in each case shall not be considered Subordinated Debt.
Subsidiary
: any entity at least 50% of whose voting securities or Equity Interests is
owned by the Company (including indirect ownership by the Company through other entities in which
the Company directly or indirectly owns 50% of the voting securities or Equity Interests).
Swingline Loan
: any Borrowing of Base Rate Loans funded with Agents funds, until such
Borrowing is settled among Lenders pursuant to
Section 4.1.3
.
Taxes
: all present or future taxes, levies, imposts, duties, deductions, withholdings
(including backup withholding), assessments, fees or other charges imposed by any Governmental
Authority, including any interest, additions to tax or penalties applicable thereto.
Tender Offer
: the offer by the Company to purchase all of (i) the Third Lien Notes and
(ii) the Existing Senior Notes made pursuant to the Offer to Purchase and Consent Solicitation of
Commercial Vehicle Group, Inc. dated April 5, 2011, as amended.
Third Lien Indenture
: the Indenture, dated as of August 4, 2009, by and among the
Company, the other parties thereto and U.S. Bank National Association.
Third Lien Notes
: the 11%/13% Third Lien Senior Secured Notes due 2013, issued by the
Company under the Third Lien Indenture, in the aggregate amount of $42,124,000 (plus all interest
paid in kind).
Trademark Security Agreement
: each trademark security agreement pursuant to which an
Obligor grants to Agent, for the benefit of Secured Parties, a Lien on such Obligors interests in
trademarks, as security for the Obligations.
Transferee
: any actual or potential Eligible Assignee, Participant or other Person
acquiring an interest in any Obligations.
Type
: any type of a Loan (i.e., Base Rate Loan or LIBOR Loan) that has the same
interest option and, in the case of LIBOR Loans, the same Interest Period.
UCC
: the Uniform Commercial Code as in effect in the State of Illinois or, when the
laws of any other jurisdiction govern the perfection or enforcement of any Lien, the Uniform
Commercial Code as in effect in such jurisdiction.
UK Restructuring
: the series of transactions related to that certain transfers of
assets and the exchanging of debt between any direct or indirect Subsidiary of the Borrower
organized under the laws of the United Kingdom, and the necessary corporate structure changes
required in connection therewith, in such manner as disclosed to Agent prior to the date hereof.
Unfunded Pension Liability
: the excess of a Pension Plans benefit liabilities under
Section 4001(a)(16) of ERISA, over the current value of that Pension Plans assets, determined
in accordance with the assumptions used for funding the Pension Plan pursuant to Sections 412 and
430 of the Code for the applicable plan year.
Unpaid Sum
: any sum due and payable but unpaid by a Borrower under this Agreement.
Upstream Payment
: a Distribution by a Subsidiary of a Borrower to such Borrower or
another Subsidiary (to the extent such Subsidiary is such Persons direct parent), or in the case
of National Seating Company, pro rata Distributions to the Company and each other holder of Equity
Interests of National Seating Company.
Value
: (a) for Inventory, its value determined on the basis of the lower of cost or
market, calculated on a first-in, first-out basis, and excluding any portion of cost attributable
to intercompany profit among Borrowers and their Affiliates; and (b) for an Account, its face
amount, net of any returns, rebates, discounts (calculated on the shortest terms), credits,
allowances or Taxes (including sales, excise or other taxes) that have been or could be claimed by
the Account Debtor or any other Person.
Voting Stock
: for any Person, all classes of Equity Interests of such Person then
outstanding and normally entitled (without regard to the occurrence of any contingency) to vote in
the election of directors, managers or trustees thereof.
1.2.
Accounting Terms
.
Under the Loan Documents (except as otherwise specified herein), all accounting terms shall be
interpreted, all accounting determinations shall be made, and all financial statements shall be
prepared, in accordance with GAAP applied on a basis consistent with the most recent audited
financial statements of Borrowers delivered to Agent before the Original Closing Date and using the
same inventory valuation method as used in such financial statements, except for any change
required or permitted by GAAP if Borrowers certified public accountants concur in such change, the
change is disclosed to Agent and
Section 10.3
is amended in a manner satisfactory to Required
Lenders to take into account the effects of the change.
Notwithstanding anything to the contrary contained herein, financial ratios and other
financial calculations pursuant to this Agreement shall, following any Specified Transaction, be
calculated on a Pro Forma Basis.
If at any time any change in GAAP would affect the computation of any financial ratio or
requirement set forth in any Loan Document, and either Borrower Agent or the Required Lenders shall
so request, Agent, Lenders and Borrower Agent shall negotiate in good faith to amend such ratio or
requirement to preserve the original intent thereof in light of such change in GAAP (subject to the
approval of the Required Lenders); provided that, until so amended, (i) such ratio or requirement
shall continue to be computed in accordance with GAAP prior to such change therein and (ii)
Borrower Agent shall provide to Agent and Lenders as reasonably requested hereunder a
reconciliation between calculations of such ratio or requirement made before and after giving
effect to such change in GAAP. It is agreed that a change in GAAP contemplated above shall include
the International Financial Reporting Standards, or certain of the standards contained therein,
becoming the required methodology of financial reporting.
1.3.
Uniform Commercial Code
.
As used herein, the following terms are defined in accordance with the UCC in effect in the
State of Illinois from time to time: Chattel Paper, Commercial Tort Claim, Deposit Account,
Document, Equipment, General Intangibles, Goods, Instrument, Inventory, Investment
Property, Letter-of-Credit Right and Supporting Obligation.
1.4.
Certain Matters of Construction
.
The terms herein, hereof, hereunder and other words of similar import refer to this
Agreement as a whole and not to any particular section, paragraph or subdivision. Any pronoun used
shall be deemed to cover all genders. In the computation of periods of time from a specified date
to a later specified date, from means from and including, and to and until each mean to
but excluding. The terms including and include shall mean including, without limitation
and, for purposes of each Loan Document, the parties agree that the rule of
ejusdem generis
shall
not be applicable to limit any provision. Section titles appear as a matter of convenience only
and shall not affect the interpretation of any Loan Document. All references to (a) laws or
statutes include all related rules, regulations, interpretations, amendments and successor
provisions; (b) any document, instrument or agreement include any amendments, amendments and
restatements, refinancings, replacements, waivers and other modifications, extensions or renewals
(to the extent permitted by the Loan Documents); (c) any section mean, unless the context otherwise
requires, a section of this Agreement; (d) any exhibits or schedules mean, unless the context
otherwise requires, exhibits and schedules attached hereto, which are hereby incorporated by
reference; (e) any Person include successors and assigns; (f) time of day mean time of day at
Agents notice address under
Section 15.3.1;
or (g) discretion of Agent, Issuing Bank or any Lender
mean the sole and absolute discretion of such Person. All calculations of Value, fundings of
Loans, issuances of Letters of Credit and payments of Obligations shall be in Dollars. Unless the
context otherwise requires, all determinations (including calculations of Borrowing Base and
financial covenants) made from time to time under the Loan Documents shall be made in light of the
circumstances existing at such time. Borrowing Base calculations shall be consistent with
historical methods of valuation and calculation, and otherwise satisfactory to Agent (and not
necessarily calculated in accordance with GAAP). Borrowers shall have the burden of establishing
any alleged negligence, misconduct or lack of good faith by Agent, Issuing Bank or any Lender under
any Loan Documents. No provision of any Loan Documents shall be construed against any party by
reason of such party having, or being deemed to have, drafted the provision. Whenever the phrase
to the best of Borrowers knowledge or words of similar import are used in any Loan Documents,
including references to knowledge of any Obligor, it means actual knowledge of a Senior Officer,
or knowledge that a Senior Officer would have obtained if he or she had engaged in good faith and
diligent performance of his or her duties, including reasonably specific inquiries of employees or
agents and a good faith attempt to ascertain the matter to which such phrase relates.
1.5.
Certifications
.
All certifications to be made hereunder by an officer or representative of an Obligor shall be
made by such person in his or her capacity solely as an officer or a representative of such
Obligor, on such Obligors behalf and not in such persons individual capacity.
1.6.
Times of Day
.
Unless otherwise specified, all references herein to times of day shall be references to
Central time (daylight or standard, as applicable).
SECTION 2. CREDIT FACILITIES
2.1.
Revolver Commitments
.
2.1.1.
Revolver Loans.
(a)
Revolver Loans
. Each Lender agrees, severally on a Pro Rata basis up to its Revolver
Commitment, on the terms set forth herein, to make Revolver Loans to the Borrowers from time to
time prior to the Commitment Termination Date. The Revolver Loans may be repaid and reborrowed as
provided herein. In no event shall Lenders have any obligation to honor a request for a Revolver
Loan if the sum of (i) the Revolving Facility Exposure and (ii) the aggregate outstanding principal
amount of Swingline Loans, would exceed the lesser of the Revolver Commitments and the Borrowing
Base. Revolver Loans may be made as Base Rate Loans or LIBOR Revolving Loans.
(b)
Limitation on Revolver Loans
. Notwithstanding the foregoing, (i) so long as any Second
Lien Notes are outstanding, in no event shall Lenders be obligated to make Revolver Loans in excess
of the Indenture Formula Amount, including, without limitation, the making of any Revolver Loans to
a Borrower that would exceed any sublimit of the Indenture Formula Amount as further described in
Section 4.03(b)(1) of the Indenture. To the extent any Refinancing Debt replaces the Second Lien
Notes, in no event shall Lenders be obligated to make Revolver Loans in an amount that would exceed
any similar formula, if any, in such Refinancing Debt.
2.1.2.
Revolver Notes and Denominations
.
The Revolver Loans made by each Lender and interest accruing thereon shall be evidenced by the
records of Agent and such Lender. Promptly following the request of any Lender, Borrowers shall
deliver a Revolver Note to such Lender. Borrowings by a Borrower shall be denominated only in
Dollars.
2.1.3.
Use of Proceeds
.
The proceeds of Revolver Loans shall be used by Borrowers solely (a) to satisfy existing Debt
under the Original Credit Agreement; (b) to pay fees and transaction expenses associated with the
closing of this credit facility; (c) to pay Obligations in accordance with this Agreement; and (d)
for working capital and other lawful corporate purposes of Borrowers (including Capital
Expenditures and the financing of Investments and Acquisitions permitted hereunder).
2.1.4.
Voluntary Reduction or Termination of Revolver Commitments
.
(a) The Revolver Commitments shall terminate on the Revolver Termination Date, unless sooner
terminated in accordance with this Agreement. Upon at least 10 Business Days prior written notice
to Agent at any time after the first Loan Year, Borrowers may, at their option, terminate the
Revolver Commitments and this credit facility. Any notice of termination given by Borrowers shall
be irrevocable (unless given in connection with refinancing the
Obligations). On the Commitment Termination Date, Borrowers shall make Full Payment of all
Obligations.
(b) Borrowers may permanently reduce the Revolver Commitments, on a Pro Rata basis for each
Lender, upon at least 10 Business Days prior written notice to Agent, which notice shall specify
the amount of the reduction and shall be irrevocable once given (unless given in connection with
refinancing the Obligations). Each reduction shall be in a minimum amount of $10,000,000, or an
increment of $1,000,000 in excess thereof;
provided
, that in no event shall such permanent
reduction reduce the Revolver Commitments, in the aggregate, to an amount less than $20,000,000
(other than in connection with refinancing the Obligations).
2.1.5.
Overadvances
. If the aggregate Revolver Loans exceed the Borrowing Base, or,
if applicable, the Indenture Formula Amount (
Overadvance
), the excess amount shall be
payable by Borrowers
on demand
by Agent, but all such Revolver Loans shall nevertheless constitute
Obligations secured by the Collateral and entitled to all benefits of the Loan Documents. Unless
its authority has been revoked in writing by Required Lenders, Agent may require Lenders to honor
requests for Overadvance Loans and to forbear from requiring Borrowers to cure an Overadvance, (a)
when no other Event of Default is known to Agent, as long as (i) the Overadvance does not continue
for more than 30 consecutive days (and no Overadvance may exist for at least five consecutive days
thereafter before further Overadvance Loans are required), and (ii) the Overadvance, when combined
with all other Overadvances and Protective Advances, as applicable, is not known by Agent to
exceed 10% of the Borrowing Base; and (b) regardless of whether an Event of Default exists, if
Agent discovers an Overadvance not previously known by it to exist, as long as from the date of
such discovery the Overadvance (i) is not increased by more than 5% of the Borrowing Base, and (ii)
does not continue for more than 30 consecutive days. In no event shall Overadvance Loans be made
that would cause the outstanding Revolver Loans and LC Obligations to exceed the aggregate Revolver
Commitments. Any funding of an Overadvance Loan or sufferance of an Overadvance shall not
constitute a waiver by Agent or Lenders of the Event of Default caused thereby. In no event shall
any Borrower or other Obligor be deemed a beneficiary of this Section nor authorized to enforce any
of its terms.
2.1.6.
Protective Advances
. Agent shall be authorized, in its discretion, at any time
that any conditions in
Section 6
are not satisfied, to make Base Rate Loans (
Protective
Advances
), up to an aggregate amount, when combined with all other Protective Advances and
Overadvances outstanding at any time, not to exceed 10% of the Borrowing Base; in each case, (1)
if Agent deems such Loans necessary or desirable to preserve or protect Collateral, or to enhance
the collectibility or repayment of Obligations or (2) to pay any other amounts chargeable to
Obligors under any Loan Documents, including costs, fees and expenses. Each Lender shall
participate in each Protective Advance on a Pro Rata basis. In no event shall any Protective
Advance be made that would cause the outstanding Revolver Loans and LC Obligations to exceed the
aggregate Revolver Commitments. Required Lenders may at any time revoke Agents authority to make
further Protective Advances by written notice to Agent. Absent such revocation, Agents
determination that funding of a Protective Advance is appropriate shall be conclusive.
2.2. [RESERVED].
2.3. Letter of Credit Facilities
.
2.3.1.
Issuance of Letters of Credit
. Issuing Bank agrees to issue Letters of Credit
from time to time until 10 Business Days prior to the Revolver Termination Date (or until the
Commitment Termination Date, if earlier), on the terms set forth herein, including the following:
(a) Each Borrower acknowledges that Issuing Banks willingness to issue any Letter of Credit
is conditioned upon Issuing Banks receipt of a LC Application with respect to the requested Letter
of Credit, as well as such other instruments and agreements as Issuing Bank may customarily require
for issuance of a letter of credit of similar type and amount. Issuing Bank shall have no
obligation to issue any Letter of Credit unless (i) Issuing Bank receives a LC Request and a LC
Application at least three Business Days (or such shorter time as agreed to by Issuing Bank) prior
to the requested date of issuance; (ii) each LC Condition is satisfied or waived; and (iii) if a
Defaulting Lender exists, such Lender or Borrowers have entered into arrangements satisfactory to
Agent and Issuing Bank to eliminate any funding risk associated with such Defaulting Lender. If
Issuing Bank receives written notice from a Lender at least five Business Days before issuance of a
Letter of Credit that any LC Condition has not been satisfied or waived, Issuing Bank shall have no
obligation to issue the requested Letter of Credit (or any other) until such notice is withdrawn in
writing by that Lender or until Required Lenders have waived such condition in accordance with this
Agreement. Prior to receipt of any such notice, Issuing Bank shall not be deemed to have knowledge
of any failure of LC Conditions.
(b) Letters of Credit may be requested by a Borrower only (i) to support obligations of such
Borrower incurred in the Ordinary Course of Business; or (ii) for other purposes as Agent may
approve from time to time in writing. The renewal or extension of any Letter of Credit shall be
treated as the issuance of a new Letter of Credit, except that delivery of a new LC Application
shall be required at the discretion of Issuing Bank.
(c) Borrowers assume all risks of the acts, omissions or misuses of any Letter of Credit by
the beneficiary. In connection with issuance of any Letter of Credit, none of Agent, Issuing Bank
or any Lender shall be responsible for the existence, character, quality, quantity, condition,
packing, value or delivery of any goods purported to be represented by any Documents; any
differences or variation in the character, quality, quantity, condition, packing, value or delivery
of any goods from that expressed in any Documents; the form, validity, sufficiency, accuracy,
genuineness or legal effect of any Documents or of any endorsements thereon; the time, place,
manner or order in which shipment of goods is made; partial or incomplete shipment of, or failure
to ship, any goods referred to in a Letter of Credit or Documents; any deviation from instructions,
delay, default or fraud by any shipper or other Person in connection with any goods, shipment or
delivery; any breach of contract between a shipper or vendor and a Borrower; errors, omissions,
interruptions or delays in transmission or delivery of any messages, by mail, cable, telegraph,
telex, telecopy, e-mail, telephone or otherwise; errors in interpretation of technical terms; the
misapplication by a beneficiary of any Letter of Credit or the proceeds thereof; or any
consequences arising from causes beyond the control of Issuing Bank, Agent or any Lender, including
any act or omission of a Governmental Authority. The rights and remedies of Issuing Bank under the
Loan Documents shall be cumulative. Issuing Bank shall be fully subrogated to the rights and
remedies of each beneficiary whose claims against Borrowers are discharged with proceeds of any
Letter of Credit.
(d) In connection with its administration of and enforcement of rights or remedies under any
Letters of Credit, LC Documents, Issuing Bank shall be entitled to act, and shall be fully
protected in acting, upon any certification, documentation or communication in whatever form
believed by Issuing Bank, in good faith, to be genuine and correct and to have been signed, sent or
made by a proper Person. Issuing Bank may consult with and employ legal counsel, accountants and
other experts to advise it concerning its obligations, rights and remedies, and shall be entitled
to act upon, and shall be fully protected in any action taken in good faith reliance upon, any
advice given by such experts. Issuing Bank may employ agents and attorneys-in-fact in connection
with any matter relating to Letters of Credit, LC Documents, and shall not be liable for the
negligence or misconduct of agents and attorneys-in-fact selected with reasonable care.
2.3.2.
Reimbursement; Participations
.
(a) If Issuing Bank honors any request for payment under a Letter of Credit, Borrowers shall
pay to Issuing Bank, within one Business Day of notice of such payment by the Issuing Bank
(
Reimbursement Date
), the amount paid by Issuing Bank under such Letter of Credit,
together with interest at the interest rate for Base Rate Loans from the date such Letter of Credit
is honored until payment by Borrowers. The obligation of Borrowers to reimburse Issuing Bank for
any payment made under a Letter of Credit shall be absolute, unconditional, irrevocable, and joint
and several, and shall be paid without regard to any lack of validity or enforceability of any
Letter of Credit or the existence of any claim, setoff, defense or other right that Borrowers may
have at any time against the beneficiary. Whether or not Borrower Agent submits a Notice of
Borrowing, Borrowers shall be deemed to have requested a Borrowing of Base Rate Loans in an amount
necessary to pay all amounts due and owing to Issuing Bank on any Reimbursement Date and each
Lender agrees to fund its Pro Rata share of such Borrowing whether or not the Revolver Commitments
have terminated, an Overadvance exists or is created thereby, or the conditions in
Section 6
are
satisfied or waived.
(b) Upon issuance of a Letter of Credit, each Lender shall be deemed to have irrevocably and
unconditionally purchased from Issuing Bank, without recourse or warranty, an undivided Pro Rata
interest and participation in all LC Obligations relating to the Letter of Credit. If Issuing Bank
makes any payment under a Letter of Credit and Borrowers do not reimburse such payment on the
Reimbursement Date, Agent shall promptly notify Lenders and each Lender shall promptly (within one
Business Day) and unconditionally pay to Agent, for the benefit of Issuing Bank, Lenders Pro Rata
share of such payment. Upon request by a Lender, Issuing Bank shall furnish copies of any Letters
of Credit and LC Documents in its possession at such time.
(c) The obligation of each Lender to make payments to Agent for the account of Issuing Bank in
connection with Issuing Banks payment under a Letter of Credit shall be absolute, unconditional
and irrevocable, not subject to any counterclaim, setoff, qualification or exception whatsoever,
and shall be made in accordance with this Agreement under all circumstances, irrespective of any
lack of validity or unenforceability of any Loan Documents; any draft, certificate or other
document presented under a Letter of Credit having been determined to be forged, fraudulent,
invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any
respect; or the existence of any setoff or defense that any Obligor may have with respect to any
Obligations. Issuing Bank does not assume any responsibility for any failure or delay in
performance or any breach by any Borrower or other
Person of any obligations under any LC Documents. Issuing Bank does not make to Lenders any
express or implied warranty, representation or guaranty with respect to the Collateral, LC
Documents or any Obligor. Issuing Bank shall not be responsible to any Lender for any recitals,
statements, information, representations or warranties contained in, or for the execution,
validity, genuineness, effectiveness or enforceability of any LC Documents; the validity,
genuineness, enforceability, collectibility, value or sufficiency of any Collateral or the
perfection of any Lien therein; or the assets, liabilities, financial condition, results of
operations, business, creditworthiness or legal status of any Obligor.
(d) No Issuing Bank Indemnitee shall be liable to any Lender or other Person for any action
taken or omitted to be taken in connection with any LC Documents except as a result of its actual
gross negligence or willful misconduct. Issuing Bank shall not have any liability to any Lender if
Issuing Bank refrains from any taking action under any Letter of Credit or LC Documents until it
receives written instructions from Required Lenders.
2.3.3.
Cash Collateral
.
If any LC Obligations, whether or not then due or payable, shall for any reason be outstanding
at any time (a) that an Event of Default exists, (b) that, with respect to LC Obligations,
Availability is less than zero, (c) after the Commitment Termination Date, or (d) on five Business
Days prior to the Revolver Termination Date, then Borrowers shall, at Issuing Banks or Agents
request, Cash Collateralize the stated amount of all outstanding Letters of Credit and pay to
Issuing Bank the amount of all other LC Obligations. Borrowers shall, promptly upon demand by
Issuing Bank or Agent from time to time, Cash Collateralize the LC Obligations of any Defaulting
Lender. If Borrowers fail to provide any Cash Collateral as required hereunder, Lenders may (and
shall upon direction of Agent) advance, as Revolver Loans, the amount of the Cash Collateral
required (whether or not the Revolver Commitments have terminated, an Overadvance exists or the
conditions in
Section 6
are satisfied) or waived. If Borrowers are required to provide any amount
of Cash Collateral hereunder as a result of the occurrence of an Event of Default, such amount (to
the extent not applied as aforesaid) shall be returned to Borrowers promptly after all Events of
Default have been cured or waived.
SECTION 3. INTEREST, FEES AND CHARGES
3.1.
Interest
.
3.1.1.
Rates and Payment of Interest.
(a) The Obligations shall bear interest (i) if a Base Rate Loan, at the Base Rate in effect
from time to time, plus the Applicable Margin; (ii) if a LIBOR Loan, at LIBOR for the applicable
Interest Period, plus the Applicable Margin; and (iii) if any other Obligation (including, to the
extent permitted by law, interest not paid when due), at the Base Rate in effect from time to time,
plus the Applicable Margin for Base Rate Loans. Interest shall accrue from the date the Loan is
advanced or the Obligation is incurred or payable, until paid by Borrowers. If a Loan is repaid on
the same day made, one days interest shall accrue.
(b) During an Insolvency Proceeding with respect to any Borrower, or during any other Event of
Default if Required Lenders in their discretion so elect, Obligations shall bear interest at the
Default Rate (whether before or after any judgment). Each Borrower acknowledges that the cost and
expense to Agent and Lenders due to an Event of Default are
difficult to ascertain and that the Default Rate is a fair and reasonable estimate to compensate
Agent and Lenders for this.
(c) Interest accrued on the Loans shall be due and payable in arrears, (i) on the first day of
each Fiscal Month; (ii) on any date of prepayment, with respect to the principal amount of Loans
being prepaid; and (iii) on the Commitment Termination Date. Interest accrued on any other
Obligations shall be due and payable as provided in the Loan Documents and, if no payment date is
specified, shall be due and payable
on demand
. Notwithstanding the foregoing, interest accrued at
the Default Rate shall be due and payable
on demand
.
3.1.2.
Application of LIBOR to Outstanding Loans
.
(a) Borrowers may on any Business Day, subject to delivery of a Notice of
Conversion/Continuation, elect to convert any portion of the Base Rate Loans to, or to continue any
LIBOR Loan at the end of its Interest Period as, a LIBOR Loan. During any Event of Default, Agent
may (and shall at the direction of Required Lenders) declare that no Loan may be made, converted or
continued as a LIBOR Loan.
(b) Whenever Borrowers desire to convert or continue Loans as LIBOR Loans, Borrower Agent, as
applicable, they shall give Agent a Notice of Conversion/Continuation, no later than 11:00 a.m. at
least three Business Days before the requested conversion or continuation date. Promptly after
receiving any such notice, Agent shall notify each Lender thereof. Subject to
Section 3.5
and
Section 3.6
, each Notice of Conversion/Continuation shall be irrevocable, and shall specify the
amount of Loans to be converted or continued, the conversion or continuation date (which shall be a
Business Day), and the duration of the Interest Period (which shall be deemed to be 30 days if not
specified). If, upon the expiration of any Interest Period in respect of any LIBOR Loans,
Borrowers shall have failed to deliver a Notice of Conversion/Continuation, they shall be deemed to
have elected to convert such Loans into Base Rate Loans.
3.1.3.
Interest Periods
. In connection with the making, conversion or continuation of
any LIBOR Loans, Borrowers shall select an interest period (
Interest Period
) to apply,
which interest period shall be 30, 60 or 90 days; provided, however, that:
(a) the Interest Period shall commence on the date the Loan is made or continued as, or
converted into, a LIBOR Loan, and shall expire on the numerically corresponding day in the calendar
month at its end;
(b) if any Interest Period commences on a day for which there is no corresponding day in the
calendar month at its end or if such corresponding day falls after the last Business Day of such
month, then the Interest Period shall expire on the last Business Day of such month; and if any
Interest Period would expire on a day that is not a Business Day, the period shall expire on the
next Business Day; and
(c) no Interest Period shall extend beyond the Revolver Termination Date.
3.2.
Fees
.
3.2.1.
Unused Line Fee
. Borrowers shall pay to Agent, for the Pro Rata benefit of
Lenders, a fee equal to (i). 500% per annum times the amount by which the Revolver
Commitments exceed the average daily balance of Revolver Loans and stated amount of Letters of
Credit (the Unused Balance) during any Fiscal Quarter in which the aggregate average daily Unused
Balance is equal to or greater than 50% of the Revolver Commitments or (ii). 375% per annum times
the Unused Balance during any Fiscal Quarter in which the aggregate average daily Unused Balance is
less than 50% of the Revolver Commitments. Such fee shall be calculated payable in arrears, on the
first day of each Fiscal Quarter and on the Commitment Termination Date.
3.2.2.
LC Facility Fees
. Borrowers shall pay (a) to Agent, for the Pro Rata benefit
of Lenders with Revolver Commitments, a fee equal to the Applicable Margin in effect for LIBOR
Revolver Loans times the average daily stated amount of Letters of Credit, which fee shall be
payable quarterly in arrears, on the first day of each Fiscal Quarter; (b) to Issuing Bank, for its
own account, a fronting fee equal to. 125% per annum on the stated amount of each Letter of Credit,
which fee shall be payable quarterly in arrears, on the first day of each Fiscal Quarter; and (c)
to Issuing Bank, for its own account, all customary and reasonable charges associated with the
issuance, amending, negotiating, payment, processing, transfer and administration of Letters of
Credit, which charges shall be paid as and when incurred. During an Event of Default, the fee
payable under clause (a) shall be increased by 2% per annum as provided in
Section 3.1.1(b)
.
3.2.3.
Other Fees
. Borrowers shall pay to Agent the fees described in the Fee Letter.
3.3.
Computation of Interest, Fees, Yield Protection
. All interest in respect of
LIBOR Loans, as well as fees and other charges calculated on a per annum basis shall be computed
for the actual days elapsed, based on a year of 360 days. Fees, interest and charges in respect of
Base Rate Loans shall be calculated for the actual days elapsed, based on a year of 365 days (or
366 days as applicable) and shall be payable in Dollars. Each determination by Agent of any
interest, fees or interest rate hereunder shall be final, conclusive and binding for all purposes,
absent manifest error. All fees shall be fully earned when due and shall not be subject to rebate,
refund or proration. All fees payable under
Section 3.2
are compensation for services and are not,
and shall not be deemed to be, interest or any other charge for the use, forbearance or detention
of money. A certificate setting forth amounts payable by Borrowers under
Section 3.4, 3.6, 3.7,
3.9
or
5.9
, submitted to Borrower Agent by Agent or the affected Lender, as applicable, shall be
final, conclusive and binding for all purposes, absent manifest error, and Borrowers shall pay such
amounts to the appropriate party within 10 Business Days following receipt of the certificate.
3.4.
Reimbursement Obligations
. Borrowers shall reimburse Agent for all Extraordinary
Expenses. Borrowers shall also reimburse Agent for all (a) reasonable out-of-pocket legal,
accounting, appraisal, consulting, and other fees, costs and expenses incurred by it in connection
with negotiation and preparation of any Loan Documents, including any amendment or other
modification thereof; (b) legal, accounting, appraisal, consulting and other fees, costs and
expenses in connection with administration of and actions relating to any Collateral, Loan
Documents and transactions contemplated thereby, including any actions taken to perfect or maintain
priority of Agents Liens on any Collateral, to maintain any insurance required hereunder or to
verify Collateral; and (c) subject to the limits of
Section 10.1.1(b)
, all fees, costs and expenses
in connection with each inspection, audit or appraisal with respect to any Obligor or Collateral,
whether prepared by Agents personnel or a third party. All legal,
accounting and consulting fees shall be charged to Borrowers by Agents professionals at their full
hourly rates, regardless of any reduced or alternative fee billing arrangements that Agent, any
Lender or any of their Affiliates may have with such professionals with respect to any other
transaction. All amounts payable by Borrowers under this Section shall be due and payable promptly
following demand therefor, or in the case of Extraordinary Expenses,
on demand
.
3.5.
Illegality
. If any Lender determines that any Applicable Law has made it
unlawful, or that any Governmental Authority has asserted that it is unlawful, for any Lender or
its applicable Lending Office to make, maintain or fund LIBOR Loans, or to determine or charge
interest rates based upon LIBOR, or any Governmental Authority has imposed material restrictions on
the authority of such Lender to purchase or sell, or to take deposits of, Dollars in the London
interbank market, then, on notice thereof by such Lender to Agent, any obligation of such Lender to
make or continue LIBOR Loans or to convert Base Rate Loans to LIBOR Loans shall be suspended until
such Lender notifies Agent that the circumstances giving rise to such determination no longer
exist. Upon delivery of such notice, Borrowers shall prepay or, if applicable, convert all LIBOR
Loans of such Lender to Base Rate Loans, either on the last day of the Interest Period therefor, if
such Lender may lawfully continue to maintain such LIBOR Loans to such day, or immediately, if such
Lender may not lawfully continue to maintain such LIBOR Loans. Upon any such prepayment or
conversion, Borrowers shall also pay accrued interest on the amount so prepaid or converted.
3.6.
Inability to Determine Rates
. If Agent determines, or if Required Lenders notify
Agent, for any reason in connection with a request for a Borrowing of, or conversion to or
continuation of, a LIBOR Loan that (a) Dollar deposits are not being offered to banks in the London
interbank Eurodollar market for the applicable amount and Interest Period of such Loan, (b)
adequate and reasonable means do not exist for determining LIBOR for the requested Interest Period,
or (c) LIBOR for the requested Interest Period does not adequately and fairly reflect the cost to
such Lenders of funding such Loan, then Agent will promptly so notify Borrower Agent and each
Lender. Thereafter, the obligation of Lenders to make or maintain LIBOR Loans shall be suspended
until Agent (upon instruction by Required Lenders) revokes such notice. Upon receipt of such
notice, Borrower Agent may revoke any pending request for a Borrowing of, conversion to or
continuation of a LIBOR Loan or, failing that, will be deemed to have submitted a request for a
Base Rate Loan.
3.7.
Increased Costs; Capital Adequacy
.
3.7.1.
Change
in Law
. If any Change in Law shall:
(a) impose modify or deem applicable any reserve, special deposit, compulsory loan, insurance
charge or similar requirement against assets of, deposits with or for the account of, or credit
extended or participated in by, any Lender (except any reserve requirement reflected in LIBOR) or
Issuing Bank;
(b) subject any Lender or Issuing Bank to any Tax with respect to any Loan, Loan Document,
Letter of Credit or participation in Obligations or change the basis of taxation of payments to
such Lender or Issuing Bank in respect thereof (except for Indemnified Taxes or Other Taxes covered
by
Section 5.9
and the imposition of, or any change in the rate of, any Excluded Tax payable by
such Lender or Issuing Bank); or
(c) impose on any Lender or Issuing Bank or the London interbank market any other condition,
cost or expense affecting any Loan, Loan Document, Letter of Credit or participation in LC
Obligations;
and the result thereof shall be to increase the cost to such Lender of making or maintaining any
LIBOR Loan (or of maintaining its obligation to make any such Loan), or to increase the cost to
such Lender or Issuing Bank of participating in, issuing or maintaining any Letter of Credit (or of
maintaining its obligation to participate in or to issue any Letter of Credit), or to reduce the
amount of any sum received or receivable by such Lender or Issuing Bank hereunder (whether of
principal, interest or any other amount) then, within 10 Business Days of receiving the request
from such Lender or Issuing Bank, Borrowers will pay to such Lender or Issuing Bank, as applicable,
such additional amount or amounts as will compensate such Lender or Issuing Bank, as applicable,
for such additional costs incurred or reduction suffered.
3.7.2.
Capital Adequacy
. If any Lender or Issuing Bank determines that any Change in
Law affecting such Lender or Issuing Bank or any Lending Office of such Lender or such Lenders or
Issuing Banks holding company, if any, regarding capital requirements has or would have the effect
of reducing the rate of return on such Lenders, Issuing Banks or holding companys capital as a
consequence of this Agreement, or such Lenders or Issuing Banks Commitments, Loans, Letters of
Credit or participations in LC Obligations, to a level below that which such Lender, Issuing Bank
or holding company could have achieved but for such Change in Law (taking into consideration such
Lenders, Issuing Banks and holding companys policies with respect to capital adequacy), then
within 10 Business Days of receiving the request from such Lender or Issuing Bank, Borrowers will
pay to such Lender or Issuing Bank, as the case may be, such additional amount or amounts as will
compensate it or its holding company for any such reduction suffered.
3.7.3.
Compensation
. Failure or delay on the part of any Lender or Issuing Bank to
demand compensation pursuant to this Section shall not constitute a waiver of its right to demand
such compensation, but Borrowers shall not be required to compensate a Lender or Issuing Bank for
any increased costs incurred or reductions suffered more than nine months prior to the date that
Lender or Issuing Bank notifies Borrower Agent of the Change in Law giving rise to such increased
costs or reductions and of such Lenders or Issuing Banks intention to claim compensation therefor
(except that, if the Change in Law giving rise to such increased costs or reductions is
retroactive, then the nine-month period referred to above shall be extended to include the period
of retroactive effect thereof).
3.8.
Mitigation
. If any Lender gives a notice under
Section 3.5
or requests
compensation under Section 3.7, or if Borrowers are required to pay additional amounts with respect
to a Lender under Section 5.9, then such Lender shall use reasonable efforts to designate a
different Lending Office or to assign its rights and obligations hereunder to another of its
offices, branches or Affiliates, if, in the judgment of such Lender, such designation or assignment
(a) would eliminate the need for such notice or reduce amounts payable or to be withheld in the
future, as applicable; and (b) would not subject Lender to any unreimbursed cost or expense and
would not otherwise be disadvantageous to it. Borrowers shall promptly following request therefor
pay all reasonable costs and expenses incurred by any Lender in connection with any such
designation or assignment.
3.9.
Funding Losses
. If for any reason (a) any Borrowing of, or conversion to or
continuation of, a LIBOR Loan does not occur on the date specified therefor in a Notice of
Borrowing or Notice of Conversion/Continuation (whether or not withdrawn), (b) any repayment or
conversion of a LIBOR Loan occurs on a day other than the end of its Interest Period, or (c)
Borrowers fail to repay a LIBOR Loan when required hereunder, then Borrowers shall pay to Agent its
customary administrative charge and to each Lender all losses and expenses that it sustains as a
consequence thereof, including loss of anticipated profits and any loss or expense arising from
liquidation or redeployment of funds or from fees payable to terminate deposits of matching funds.
Lenders shall not be required to purchase Dollar deposits in the London interbank market or any
other offshore Dollar market to fund any LIBOR Loan, but the provisions hereof shall be deemed to
apply as if each Lender had purchased such deposits to fund its LIBOR Loans.
3.10.
Maximum Interest
. Notwithstanding anything to the contrary contained in any
Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the
maximum rate of non-usurious interest permitted by Applicable Law (maximum rate). If Agent or
any Lender shall receive interest in an amount that exceeds the maximum rate, the excess interest
shall be applied to the principal of the Obligations or, if it exceeds such unpaid principal,
refunded to Borrowers. In determining whether the interest contracted for, charged or received by
Agent or a Lender exceeds the maximum rate, such Person may, to the extent permitted by Applicable
Law, (a) characterize any payment that is not principal as an expense, fee or premium rather than
interest; (b) exclude voluntary prepayments and the effects thereof; and (c) amortize, prorate,
allocate and spread in equal or unequal parts the total amount of interest throughout the
contemplated term of the Obligations hereunder.
SECTION 4. LOAN ADMINISTRATION
4.1.
Manner of Borrowing and Funding Revolver Loans
.
4.1.1.
Notice of Borrowing.
(a) Whenever Borrowers desire funding of a Borrowing of Revolver Loans, Borrower Agent shall
give Agent a Notice of Borrowing. Such notice must be received by Agent no later than 12:00 noon
Chicago time (i) on the Business Day of the requested funding date, in the case of Base Rate Loans,
and (ii) at least three Business Days prior to the requested funding date, in the case of LIBOR
Loans. Notices received after 12:00 noon Chicago time shall be deemed received on the next
Business Day. Subject to
Section 3.5
and
Section 3.6
, each Notice of Borrowing shall be
irrevocable and shall specify (A) the amount of the Borrowing, (B) the requested funding date
(which must be a Business Day), (C) whether the Borrowing is to be made as Base Rate Loans, or
LIBOR Loans, and (D) in the case of LIBOR Loans, the duration of the applicable Interest Period
(which shall be deemed to be 30 days if not specified).
(b) Unless payment is otherwise timely made by Borrowers, the becoming due of any Obligations
(whether principal, interest, fees or other charges, including Extraordinary Expenses, LC
Obligations, Cash Collateral and Bank Product Debt) shall be deemed to be a request for Base Rate
Loans, on the due date, in the amount of such Obligations. The proceeds of such Revolver Loans
shall be disbursed as direct payment of the relevant Obligation. In addition, Agent may, at its
option, charge such Obligations against Borrower Agents primary disbursement account maintained
with Agent or any of its Affiliates.
(c) If Borrowers establish a controlled disbursement account with Agent or any Affiliate of
Agent, then the presentation for payment of any check or other item of payment drawn on such
account at a time when there are insufficient funds to cover it shall be deemed to be a request for
Base Rate Loans on the date of such presentation, in the amount of the check and items presented
for payment. The proceeds of such Revolver Loans may be disbursed directly to the controlled
disbursement account or other appropriate account.
4.1.2.
Fundings by Lenders
. Each Lender shall timely honor its Revolver Commitment by
funding its Pro Rata share of each Borrowing of Revolver Loans that is properly requested
hereunder. Except for Borrowings to be made as Swingline Loans, Agent shall endeavor to notify
Lenders of each Notice of Borrowing (or deemed request for a Borrowing) by 1:00 p.m. Chicago time
on the proposed funding date for Base Rate Loans or by 3:00 p.m. Chicago time, at least two
Business Days before any proposed funding of LIBOR Loans. Each Lender shall fund to Agent such
Lenders Pro Rata share of the Borrowing to the account specified by Agent in immediately available
funds not later than 2:00 p.m. Chicago time on the requested funding date unless Agents notice is
received after the times provided above, in which event Lender shall fund its Pro Rata share by
11:00 a.m. Chicago time on the next Business Day. Subject to its receipt of such amounts from
Lenders, Agent shall disburse the proceeds of the Revolver Loans as directed by Borrower Agent.
Unless Agent shall have received (in sufficient time to act) written notice from a Lender that it
does not intend to fund its Pro Rata share of a Borrowing, Agent may assume that such Lender has
deposited or promptly will deposit its share with Agent, and Agent may disburse a corresponding
amount to Borrowers. If a Lenders share of any Borrowing or of any settlement pursuant to Section
4.1.3(b) is not received by Agent, then Borrowers agree to repay to Agent
on demand
the amount of
such share, together with interest thereon from the date disbursed until repaid, at the rate
applicable to the Borrowing.
4.1.3.
Swingline Loans; Settlement
.
(a) Agent may, but shall not be obligated to, advance Swingline Loans to Borrowers, up to an
aggregate outstanding amount equal to 10% of the Revolver Commitments at such time, unless the
funding is specifically required to be made by all Lenders hereunder. Each Swingline Loan shall
constitute a Revolver Loan, for all purposes, except that payments thereon shall be made to Agent
for its own account. The obligation of Borrowers to repay Swingline Loans shall be evidenced by
the records of Agent and need not be evidenced by any promissory note.
(b) To facilitate administration of the Revolver Loans, Lenders and Agent agree (which
agreement is solely among them, and not for the benefit of or enforceable by any Borrower) that
settlement among them with respect to Swingline Loans and other Revolver Loans may take place on a
date determined from time to time by Agent, which shall occur at least once each week. On each
settlement date, settlement shall be made with each Lender in accordance with the Settlement Report
delivered by Agent to Lenders. Between settlement dates, Agent may in its discretion apply
payments on Revolver Loans to Swingline Loans, regardless of any designation by Borrower or any
provision herein to the contrary. Each Lenders obligation to make settlements with Agent is
absolute and unconditional, without offset, counterclaim or other defense, and whether or not the
Revolver Commitments have terminated, an Overadvance exists or the conditions in
Section 6
are
satisfied or waived. If, due to an Insolvency Proceeding with respect to a Borrower or otherwise,
any Swingline Loan may not be settled among Lenders hereunder, then each Lender having a Revolver
Commitment shall
be deemed to have purchased from Agent a Pro Rata participation in each unpaid Swingline Loan and
shall transfer the amount of such participation to Agent, in immediately available funds, within
one Business Day after Agents request therefor.
4.1.4.
Notices
. Each Borrower authorizes Agent and Lenders (and Agent and Lenders
hereby agree) to extend, convert or continue Loans, effect selections of interest rates, and
transfer funds to or on behalf of Borrowers based on telephonic or e-mailed instructions.
Borrowers shall confirm each such request by prompt delivery to Agent of a Notice of Borrowing or
Notice of Conversion/Continuation, if applicable, but if it differs in any material respect from
the action taken by Agent or Lenders, the records of Agent and Lenders shall govern. Neither Agent
nor any Lender shall have any liability for any loss suffered by a Borrower as a result of Agent or
any Lender acting upon its understanding of telephonic or e-mailed instructions from a person
believed in good faith by Agent or any Lender to be a person authorized to give such instructions
on a Borrowers behalf.
4.2.
Defaulting Lender
. Agent may (but shall not be required to), in its discretion,
retain any payments or other funds received by Agent that are to be provided to a Defaulting Lender
hereunder, and may apply such funds to such Lenders defaulted obligations or readvance the funds
to Borrowers in accordance with this Agreement. The failure of any Lender to fund a Loan, to make
any payment in respect of LC Obligations or to otherwise perform its obligations hereunder shall
not relieve any other Lender of its obligations, and no Lender shall be responsible for default by
another Lender. Lenders and Agent agree (which agreement is solely among them, and not for the
benefit of or enforceable by any Borrower) that, solely for purposes of determining a Defaulting
Lenders right to vote on matters relating to the Loan Documents and to share in payments, fees and
Collateral proceeds thereunder, a Defaulting Lender shall not be deemed to be a Lender until all
its defaulted obligations have been cured.
4.3.
Number and Amount of LIBOR Loans; Determination of Rate
. Each Borrowing of LIBOR
Loans when made shall be in a minimum amount of $1,000,000, plus any increment of $100,000 in
excess thereof. No more than six Borrowings of LIBOR Loans may be outstanding at any time, and all
LIBOR Loans denominated in the same currency and having the same length and beginning date of their
Interest Periods shall be aggregated together and considered one Borrowing for this purpose. Upon
determining LIBOR for any Interest Period requested by Borrowers, Agent shall promptly notify
Borrowers thereof by telephone or electronically and, if requested by Borrowers, shall confirm any
telephonic notice in writing.
4.4.
Borrower Agent
. Each Borrower hereby designates the Company (Borrower Agent)
as its representative and agent for all purposes under the Loan Documents, including requests for
Loans and Letters of Credit, designation of interest rates, delivery or receipt of communications,
preparation and delivery of Borrowing Base and financial reports, receipt and payment of
Obligations, requests for waivers, amendments or other accommodations, actions under the Loan
Documents (including in respect of compliance with covenants), and all other dealings with Agent,
Issuing Bank or any Lender. Borrower Agent hereby accepts such appointment. Agent and Lenders
shall be entitled to rely upon, and shall be fully protected in relying upon, any notice or
communication (including any Notice of Borrowing) delivered by Borrower Agent on behalf of any
Borrower. Agent and Lenders may give any notice or communication with a Borrower hereunder to
Borrower Agent on behalf of such Borrower. Each of Agent, Issuing Bank and Lenders shall have the
right, in its discretion, to deal exclusively with Borrower Agent for any or all purposes under the
Loan Documents. Each
Borrower agrees that any notice, election, communication, representation, agreement or undertaking
made on its behalf by Borrower Agent shall be binding upon and enforceable against it, as though
made by such Borrower.
4.5.
Obligations
. All Revolver Loans, LC Obligations and other Obligations shall
constitute one general obligation of Borrowers and (unless otherwise expressly provided in any Loan
Document) shall be secured by Agents Lien upon all Borrowers Collateral.
4.6.
Effect of Termination
.
On the effective date of the termination of the Revolver
Commitments, all Obligations shall be immediately due and payable, and any Lender may terminate its
and its Affiliates Bank Products (including, only with the consent of Agent, any Cash Management
Services). All undertakings of Borrowers contained in the Loan Documents shall survive any
termination, and Agent shall retain its Liens in the Collateral and all of its rights and remedies
under the Loan Documents until Full Payment of the Obligations. Notwithstanding Full Payment of
the Obligations, Agent shall not be required to terminate its Liens in any Collateral unless, with
respect to any damages Agent may incur as a result of the dishonor or return of Payment Items
applied to Obligations, Agent receives (a) a written agreement, executed by Borrowers and any
Person whose advances are used in whole or in part to satisfy the Obligations, indemnifying Agent
and Lenders from any such damages; or (b) such Cash Collateral as Agent, in its Permitted
Discretion, deems necessary to protect against any such damages.
Sections 2.3, 3.4, 3.6, 3.7, 3.9,
5.5, 5.9, 5.10, 12, 15.2
and this Section, and the obligation of each Obligor and Lender with
respect to each indemnity given by it in any Loan Document, shall survive Full Payment of the
Obligations and any release relating to this credit facility.
SECTION 5. PAYMENTS
5.1.
General Payment Provisions
. All payments of Obligations shall be made in
Dollars, without offset, counterclaim or defense of any kind, free of (and without deduction for)
any Taxes, and in immediately available funds, not later than 12:00 noon Chicago time on the due
date. Any payment after such time shall be deemed made on the next Business Day. Any payment of a
LIBOR Loan prior to the end of its Interest Period shall be accompanied by all amounts due under
Section 3.9
. Any prepayment of Revolver Loans shall be applied first to Base Rate Loans and then
to LIBOR Loans.
5.2.
Repayment of Revolver Loans
. Revolver Loans shall be due and payable in full on
the Revolver Termination Date, unless payment is sooner required hereunder. Revolver Loans may be
prepaid from time to time, without penalty or premium. If any Asset Disposition includes the
disposition of Eligible Accounts or Eligible Inventory, Net Proceeds equal to the greater of (a)
the net book value of such Accounts and Inventory, or (b) the reduction in the Borrowing Base, upon
giving effect to such disposition, shall be applied to the Revolver Loans. Notwithstanding
anything herein to the contrary, if an Overadvance exists, Borrowers shall, on the sooner of
Agents demand or the first Business Day after any Borrower has knowledge thereof, repay the
outstanding Revolver Loans in an amount sufficient to reduce the principal balance of such Revolver
Loans to the Borrowing Base.
5.3.
Repayment
.
5.3.1.
Mandatory Prepayments.
(a) Within five Business Days of the receipt of any proceeds of insurance or condemnation
awards paid in respect of any Equipment or Real Estate
,
Borrowers shall prepay Revolver Loans and
Borrowers shall permanently reduce the Revolver Commitments;
provided
, that (i) Borrowers
shall not be required to effect such permanent reduction in the Revolver Commitments unless the
failure to effect such permanent reduction would create an obligation of any Borrower to make an
offer to repurchase the Second Lien Notes and (ii) such Net Proceeds shall not be required to be so
applied on such date to the extent that Borrower Agent shall have delivered an officers
certificate to Agent on or prior to such date stating that such proceeds shall actually be used to
acquire Property useful in the business of the Obligors within 180 days (or such longer period as
Agent shall consent to in writing) of receipt of such Net Proceeds (or a binding commitment to
acquire such Property is entered into within 180 days and such reinvestment is actually made within
360 days or, in each case, such period as Agent shall consent to in writing),
provided
further
, that (i) no Default or Event of Default exists, (ii) the replaced Property is free
of Liens, other than Permitted Liens; and (iii) the aggregate amount of such proceeds or awards
from any single casualty or condemnation does not exceed $1,000,000. Borrowers shall prepay
Revolver Loans in the amount of any Net Proceeds not actually reinvested within such 180 or 360, as
applicable, day period (or such period as consented to by Agent hereunder) and reduce the Revolver
Commitments in an amount equal to such prepayment.
(b) On the Commitment Termination Date, Borrowers shall prepay all Revolver Loans (unless
sooner repaid hereunder).
5.4.
Payment of Other Obligations
.
Obligations other than Loans, including LC
Obligations and Extraordinary Expenses, shall be paid by Borrowers as provided in the Loan
Documents or, if no payment date is specified, on demand.
5.5.
Marshaling; Payments Set Aside
. None of Agent or Lenders shall be under any
obligation to marshal any assets in favor of any Obligor or against any Obligations. If any
payment by or on behalf of Borrowers is made to Agent, Issuing Bank or any Lender, or Agent,
Issuing Bank or any Lender exercises a right of setoff, and such payment or the proceeds of such
setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential,
set aside or required (including pursuant to any settlement entered into by Agent, Issuing Bank or
such Lender in its discretion) to be repaid to a trustee, receiver or any other Person, then to the
extent of such recovery, the Obligation originally intended to be satisfied, and all Liens, rights
and remedies relating thereto, shall be revived and continued in full force and effect as if such
payment had not been made or such setoff had not occurred.
5.6.
Allocation of Payments
.
5.6.1.
Allocations Generally
. Absent an Event of Default, monies to be applied to
Obligations from payments by Obligors, shall be allocated as follows:
(a) if a specific payment of principal, interest, fees or other sum payable under the Loan
Documents, according to the instruction of Borrower Agent;
(b) if a mandatory prepayment, according to
Section 5.3.1
; and
(c) if any other amount, applied to the Obligations at the discretion of Agent.
5.6.2.
Post-Default Allocation
. During an Event of Default, monies to be applied to
the Obligations, whether arising from payments by Obligors, realization on Collateral, setoff or
otherwise, shall be allocated as follows:
(a)
first
, to all costs and expenses, including Extraordinary Expenses, owing to
Agent;
(b)
second
, to all amounts owing to Agent on Swingline Loans;
(c)
third
, to all amounts owing to Issuing Bank on LC Obligations;
(d)
fourth
, to all Obligations constituting fees (excluding amounts relating to Bank
Products);
(e)
fifth
, to all Obligations constituting interest (excluding amounts relating to
Bank Products);
(f)
sixth
, to provide Cash Collateral for outstanding Letters of Credit;
(g)
seventh
, to all other Obligations other than Bank Product Debt;
(h)
eighth
, to Bank Product Debt to the extent reserved for in the Borrowing Base;
(i)
ninth
, to Bank Product Debt; and
(j)
tenth
, to the Borrower.
5.6.3.
Application of Amounts
. Amounts shall be applied to each category of
Obligations set forth in
Section 5.6.2
until Full Payment thereof and then to the next category.
If amounts are insufficient to satisfy a category, they shall be applied on a pro rata basis among
the Obligations in the category. Amounts distributed with respect to any Bank Product Debt shall
be the lesser of the applicable Bank Product Amount last reported to Agent or the actual Bank
Product Debt as calculated by the methodology reported to Agent for determining the amount due.
Agent shall have no obligation to calculate the amount to be distributed with respect to any Bank
Product Debt, but may rely upon written notice of the amount (setting forth a reasonably detailed
calculation) from the Secured Party. In the absence of such notice, Agent may assume the amount to
be distributed is the Bank Product Amount last reported to it. The allocations set forth in
Section 5.6.2
are solely to determine the rights and priorities of Agent and Lenders as among
themselves, and may be changed by agreement among them without the consent of any Obligor.
Section
5.6.2
is not for the benefit of or enforceable by any Borrower.
5.6.4.
Erroneous Application
. Agent shall not be liable for any application of
amounts made by it in good faith and, if any such application is subsequently determined to have
been made in error, the sole recourse of any Lender or other Person to which such amount should
have been made shall be to recover the amount from the Person that actually received it (and, if
such amount was received by any Lender, such Lender hereby agrees to return it).
5.7.
Application of Payments
. The ledger balance in the main Dominion Account as of
the end of a Business Day shall be applied to the Obligations at the beginning of the next
Business Day. If, as a result of such application, a credit balance exists, the balance shall not
accrue interest in favor of Borrowers and shall be made available to Borrowers as long as no
Default or Event of Default exists. Each Borrower irrevocably waives the right to direct the
application of any payments or Collateral proceeds, and agrees that Agent shall have the
continuing, exclusive right to apply and reapply same against the Obligations, in such manner as
Agent deems advisable, subject to the proviso in
Section 5.6.2
and the following sentence.
5.8.
Loan Account; Account Stated
.
5.8.1.
Loan Account
. Agent shall maintain in accordance with its usual and customary
practices an account or accounts (Loan Account) evidencing the Debt of Borrowers resulting from
each Loan or issuance of a Letter of Credit from time to time. Any failure of Agent to record
anything in the Loan Account, or any error in doing so, shall not limit or otherwise affect the
obligation of Borrowers to pay any amount owing hereunder. Agent may maintain a single Loan
Account in the name of each relevant Borrower for the account of the Obligations. Each Borrower
confirms that such arrangement shall have no effect on the joint and several character of its
liability with each other Borrower for the Obligations.
5.8.2.
Entries Binding
. Entries made in the Loan Accounts shall constitute
presumptive evidence of the information contained therein. If any information contained in the
Loan Accounts are provided to or inspected by any Person, then such information shall be conclusive
and binding on such Person for all purposes absent manifest error, except to the extent such Person
notifies Agent in writing within 30 days after receipt or inspection that specific information is
subject to dispute.
5.9.
Taxes
.
5.9.1.
Payments Free of Taxes
. Except as otherwise provided in this
Section 5.9
, all
payments by Obligors of Obligations shall be free and clear of and without reduction for any Taxes.
If Applicable Law requires any Obligor or Agent to withhold or deduct any Tax (including backup
withholding or withholding Tax), the withholding or deduction shall be based on information
provided pursuant to
Section 5.10
and Agent shall pay the amount withheld or deducted to the
relevant Governmental Authority. If the withholding or deduction is made on account of Indemnified
Taxes or Other Taxes, the sum payable by Borrowers shall be increased so that Agent, Lender or
Issuing Bank, as applicable, receives an amount equal to the sum it would have received if no such
withholding or deduction (including deductions applicable to additional sums payable under this
Section) had been made. Without limiting the foregoing, Borrowers shall timely pay all Other Taxes
to the relevant Governmental Authorities.
5.9.2.
Payment
. Borrowers shall indemnify, hold harmless and reimburse (within 10
days after demand therefor) Agent, Lenders and Issuing Bank for any Indemnified Taxes or Other
Taxes (including those attributable to amounts payable under this Section) withheld or deducted by
any Obligor or Agent, or paid by Agent, any Lender or Issuing Bank, with respect to any
Obligations, Letters of Credit or Loan Documents, whether or not such Taxes were properly asserted
by the relevant Governmental Authority, and including all penalties, interest and reasonable
expenses relating thereto, as well as any amount that a Lender or Issuing Bank fails to pay to
Agent under
Section 5.10
. A certificate as to the amount of any such payment or liability
delivered to Borrower Agent by Agent, or by a Lender or Issuing Bank (with a copy to Agent), shall
be conclusive, absent manifest error. As soon as practicable after any
payment of Indemnified Taxes or Other Taxes by a Borrower, Borrower Agent shall deliver to Agent a
receipt from the Governmental Authority or other evidence of payment reasonably satisfactory to
Agent.
5.10.
Lender Tax Information
.
5.10.1.
Status of Lenders
. Each Lender shall deliver documentation and information to
Agent and Borrower Agent, at the times and in form required by Applicable Law or reasonably
requested by Agent or Borrower Agent, sufficient to permit Agent or Borrowers to determine (a)
whether or not payments made with respect to Obligations are subject to Taxes, (b) if applicable,
the required rate of withholding or deduction, and (c) such Lenders entitlement to any available
exemption from, or reduction of, applicable Taxes for such payments or otherwise to establish such
Lenders status for withholding tax purposes in the applicable jurisdiction. Nothing in this
Section 5.10.1
shall be construed as requiring any Lender to make available it tax returns (or any
other information relating to its Taxes) which it deems confidential to the relevant Borrower or
any Person.
5.10.2.
Documentation
. If a Borrower is resident for tax purposes in the United
States, any Lender that is a United States person within the meaning of section 7701(a)(30) of
the Code shall deliver to Agent and Borrower Agent IRS Form W-9 or such other documentation or
information prescribed by Applicable Law or reasonably requested by Agent or Borrower Agent to
determine whether such Lender is subject to backup withholding or information reporting
requirements. If any Foreign Lender is entitled to any exemption from or reduction of withholding
tax for payments with respect to the Obligations, it shall deliver to Agent and Borrower Agent, on
or prior to the date on which it becomes a Lender hereunder (and from time to time thereafter upon
request by Agent or Borrower Agent, but only if such Foreign Lender is legally entitled to do so),
(a) IRS Form W-8BEN claiming eligibility for benefits of an income tax treaty to which the United
States is a party; (b) IRS Form W-8ECI; (c) IRS Form W-8IMY and all required supporting
documentation; (d) in the case of a Foreign Lender claiming the benefits of the exemption for
portfolio interest under section 881(c) of the Code, IRS Form W-8BEN and a certificate showing such
Foreign Lender is not (i) a bank within the meaning of section 881(c)(3)(A) of the Code, (ii) a
10 percent shareholder of any Obligor within the meaning of section 881(c)(3)(B) of the Code, or
(iii) a controlled foreign corporation described in section 881(c)(3)(C) of the Code; or (e) any
other form prescribed by Applicable Law as a basis for claiming exemption from or a reduction in
withholding tax, together with such supplementary documentation necessary to allow Agent and
Borrowers to determine the withholding or deduction required to be made.
5.10.3.
Lender Obligations
. Each Lender and Issuing Bank shall promptly notify
Borrowers and Agent of any change in circumstances that would change any claimed Tax exemption or
reduction. Each Lender and Issuing Bank shall indemnify, hold harmless and reimburse (within 10
days after demand therefor) Borrowers and Agent for any Taxes, losses, claims, liabilities,
penalties, interest and expenses (including reasonable attorneys fees) incurred by or asserted
against a Borrower or Agent by any Governmental Authority due to such Lenders or Issuing Banks
failure to deliver, or inaccuracy or deficiency in, any documentation required to be delivered by
it pursuant to this Section. Each Lender and Issuing Bank authorizes Agent to set off any amounts
due to Agent under this Section against any amounts payable to such Lender or Issuing Bank under
any Loan Document.
5.11.
Nature and Extent of Each Borrowers Liability
.
5.11.1.
Joint and Several Liability
. Each Borrower agrees that it is jointly and
severally liable for and absolutely and unconditionally guarantees to Agent and Lenders the prompt
payment and performance of, all Obligations and all agreements under the Loan Documents. Each
Borrower agrees that its guaranty obligations hereunder constitute a continuing guaranty of payment
and not of collection, that such obligations shall not be discharged until Full Payment of the
Obligations and that to the extent permitted by Applicable Law, such obligations are absolute and
unconditional, irrespective of (a) the genuineness, validity, regularity, enforceability,
subordination or any future modification of, or change in, any Obligations or Loan Document, or any
other document, instrument or agreement to which any Obligor is or may become a party or be bound;
(b) the absence of any action to enforce this Agreement (including this Section) or any other Loan
Document, or any waiver, consent or indulgence of any kind by Agent or any Lender with respect
thereto; (c) the existence, value or condition of, or failure to perfect a Lien or to preserve
rights against, any security or guaranty for the Obligations or any action, or the absence of any
action, by Agent or any Lender in respect thereof (including the release of any security or
guaranty); (d) the insolvency of any Obligor; (e) any election by Agent or any Lender in an
Insolvency Proceeding for the application of Section 1111(b)(2) of the Bankruptcy Code (or the
equivalent in any applicable jurisdiction); (f) any borrowing or grant of a Lien by any other
Borrower, as debtor-in-possession under Section 364 of the Bankruptcy Code or otherwise (or the
equivalent in any applicable jurisdiction); (g) the disallowance of any claims of Agent or any
Lender against any Obligor for the repayment of any Obligations under Section 502 of the Bankruptcy
Code or otherwise (or the equivalent in any applicable jurisdiction); or (h) any other action or
circumstances that might otherwise constitute a legal or equitable discharge or defense of a surety
or guarantor, except Full Payment of all Obligations.
5.11.2.
Waivers
.
(a) To the extent permitted by Applicable Law, each Borrower expressly waives all rights that
it may have now or in the future under any statute, at common law, in equity or otherwise, to
compel Agent or Lenders to marshal assets or to proceed against any Obligor, other Person or
security for the payment or performance of any Obligations before, or as a condition to, proceeding
against such Borrower. To the extent permitted by Applicable Law, each Borrower waives all
defenses available to a surety, guarantor or accommodation co-obligor other than Full Payment of
all Obligations. It is agreed among each Borrower, Agent and Lenders that the provisions of this
Section 5.11
are of the essence of the transaction contemplated by the Loan Documents and that, but
for such provisions, Agent and Lenders would decline to make Loans and issue Letters of Credit.
Each Borrower acknowledges that its guaranty pursuant to this Section is necessary to the conduct
and promotion of its business, and can be expected to benefit such business.
(b) Agent and Lenders may, in their discretion, pursue such rights and remedies as they deem
appropriate, including realization upon Collateral or any Real Estate by judicial foreclosure or
non-judicial sale or enforcement, without affecting any rights and remedies under this
Section
5.11
. If, in taking any action in connection with the exercise of any rights or remedies, Agent or
any Lender shall forfeit any other rights or remedies, including the right to enter a deficiency
judgment against any Borrower or other Person, whether because of any Applicable Laws pertaining to
election of remedies or otherwise, each Borrower consents
to such action and waives to the extent permitted by Applicable Law any claim based upon it, even
if the action may result in loss of any rights of subrogation that any Borrower might otherwise
have had. Any election of remedies that results in denial or impairment of the right of Agent or
any Lender to seek a deficiency judgment against any Borrower shall not impair any other Borrowers
obligation to pay the full amount of the Obligations. Each Borrower waives to the extent permitted
by Applicable Law all rights and defenses arising out of an election of remedies, such as
non-judicial foreclosure with respect to any security for the Obligations, even though that
election of remedies destroys such Borrowers rights of subrogation against any other Person.
Agent may bid all or a portion of the Obligations at any foreclosure or trustees sale or at any
private sale, and the amount of such bid need not be paid by Agent but shall be credited against
the Obligations. The amount of the successful bid at any such sale, whether Agent or any other
Person is the successful bidder, shall be conclusively deemed to be the fair market value of the
Collateral, and the difference between such bid amount and the remaining balance of the Obligations
shall be conclusively deemed to be the amount of the Obligations guaranteed under this
Section
5.11
, notwithstanding that any present or future law or court decision may have the effect of
reducing the amount of any deficiency claim to which Agent or any Lender might otherwise be
entitled but for such bidding at any such sale.
5.11.3.
Extent of Liability; Contribution
.
(a) Notwithstanding anything herein to the contrary, each Borrowers liability under this
Section 5.11
shall be limited to the greater of (i) all amounts for which such Borrower is
primarily liable, as described below, and (ii) such Borrowers Allocable Amount.
(b) If any Borrower makes a payment under this
Section 5.11
of any Obligations (other than
amounts for which such Borrower is primarily liable) (a
Guarantor Payment
) that, taking
into account all other Guarantor Payments previously or concurrently made by any other Borrower,
exceeds the amount that such Borrower would otherwise have paid if each Borrower had paid the
aggregate Obligations satisfied by such Guarantor Payments in the same proportion that such
Borrowers Allocable Amount bore to the total Allocable Amounts of all Borrowers, then such
Borrower shall be entitled to receive contribution and indemnification payments from, and to be
reimbursed by, each other Borrower for the amount of such excess, pro rata based upon their
respective Allocable Amounts in effect immediately prior to such Guarantor Payment. The
Allocable Amount
for any Borrower shall be the maximum amount that could then be
recovered from such Borrower under this
Section 5.11
without rendering such payment voidable under
Section 548 of the Bankruptcy Code or under any applicable state fraudulent transfer or conveyance
act, or similar statute or common law.
(c) Nothing contained in this
Section 5.11
shall limit the liability of any Borrower to pay
Loans made directly or indirectly to that Borrower (including Loans advanced to any other Borrower
and then re-loaned or otherwise transferred to, or for the benefit of, such Borrower), LC
Obligations relating to Letters of Credit issued to support such Borrowers business, and all
accrued interest, fees, expenses and other related Obligations with respect thereto, for which such
Borrower shall be primarily liable for all purposes hereunder. Agent and Lenders shall have the
right, at any time in their Permitted Discretion, to condition Loans and Letters of Credit upon a
separate calculation of borrowing availability for each Borrower and to restrict the disbursement
and use of such Loans and Letters of Credit to such Borrower.
5.11.4.
Joint Enterprise
. Each Borrower has requested that Agent and Lenders make
this credit facility available to Borrowers on a combined basis, in order to finance Borrowers
business most efficiently and economically. Borrowers business is a mutual and collective
enterprise, and Borrowers believe that consolidation of their credit facility will enhance the
borrowing power of each Borrower and ease the administration of their relationship with Lenders,
all to the mutual advantage of Borrowers. Borrowers acknowledge and agree that Agents and
Lenders willingness to extend credit to Borrowers and to administer the Collateral on a combined
basis, as set forth herein, is done solely as an accommodation to Borrowers and at Borrowers
request.
5.11.5.
Subordination
. Each Borrower hereby subordinates any claims, including any
rights at law or in equity to payment, subrogation, reimbursement, exoneration, contribution,
indemnification or set off, that it may have at any time against any other Obligor, howsoever
arising, to the Full Payment of all Obligations, subject to
Section 10.2.9
.
SECTION 6. CONDITIONS PRECEDENT
6.1.
Conditions Precedent to Initial Loans
. The conditions precedent to the
obligations of the Lenders to fund any requested Loan, issue any Letter of Credit, or otherwise
extend credit to Borrowers under the Original Credit Agreement on the Original Closing Date, in
addition to the conditions set forth in Section 6.3, were satisfied or waived as of the Original
Closing Date and were the following:
(a) Notes shall have been executed by Borrowers and delivered to each Lender that requests
issuance of a Note. Each other Loan Document shall have been duly executed and delivered to Agent
by each of the signatories thereto, and each Obligor shall be in compliance with all terms thereof;
(b) Agent shall have received UCC and Lien searches and other evidence satisfactory to Agent
that the only Liens upon the Collateral Permitted Liens;
(c) Agent shall have received the Related Real Estate Documents for all Real Estate listed on
Schedule 7.4
hereto and subject to a Mortgage;
(d) Agent shall have received duly executed agreements establishing each Dominion Account and
related lockbox, in form and substance, and with financial institutions, reasonably satisfactory to
Agent;
(e) Agent shall have received certificates, in form and substance reasonably satisfactory to
it, from a knowledgeable Senior Officer of each Borrower certifying that, after giving effect to
the initial Loans and transactions hereunder, (i) the Borrowers (taken as a whole) are Solvent;
(ii) no Default or Event of Default exists; (iii) the representations and warranties set forth in
Section 9
are true and correct; and (iv) such Borrower has complied with all agreements and
conditions to be satisfied by it under the Loan Documents.
(f) Agent shall have received a certificate of a duly authorized officer of each Obligor,
certifying (i) that attached copies of such Obligors Organic Documents are true and complete, and
in full force and effect, without amendment except as shown; (ii) that an attached copy of
resolutions authorizing execution and delivery of the Loan Documents is true and complete, and that
such resolutions are in full force and effect, were duly adopted, have not been
amended, modified or revoked, and constitute all resolutions adopted with respect to this credit
facility; and (iii) to the title, name and signature of each Person authorized to sign the Loan
Documents. Agent may conclusively rely on this certificate until it is otherwise notified by the
applicable Obligor in writing;
(g) Agent shall have received a specimen of the signature of each Person authorized by the
resolution referred to in paragraph (f) above in relation to the Loan Documents and related
documents and executing Loan Documents on the Original Closing Date;
(h) Agent shall have received evidence that any process agent referred to in
Section 15.12
has
accepted its appointment;
(i) Agent shall have received a written opinion of Kirkland & Ellis LLP, as well as any local
real estate counsel to Borrowers or Agent, in form and substance reasonably satisfactory to Agent;
(j) Agent shall have received copies of the charter documents of each Obligor, certified by
the Secretary of State or other appropriate official of such Obligors jurisdiction of
organization. Agent shall have received good standing certificates, as applicable, for each
Obligor, issued by the Secretary of State or other appropriate official of such Obligors
jurisdiction of organization and each jurisdiction where such Obligors conduct of business or
ownership of Property necessitates qualification;
(k) Agent shall have received copies of policies or certificates of insurance for the
insurance policies carried by Borrowers, all in compliance with the Loan Documents;
(l) Agent and Lead Arrangers shall have completed their business, financial and legal due
diligence of Obligors, including Agents roll-forward of its previous field examination, with
results satisfactory to Agent and Lead Arrangers. No material adverse change in the business,
assets, property, liabilities, operations or financial condition of the Obligors taken as a whole
shall have occurred since December 31, 2007;
(m) Borrowers shall have paid all fees and expenses to be paid to Agent and Lenders on the
Original Closing Date;
(n) Agent and Lead Arrangers shall have received financial projections in form and substance
satisfactory for them for each year through the Commitment Termination Date (with the current year
to be presented on a month-by month basis) and interim consolidated financial statements for the
Company and its Subsidiaries for the period ending not more than 30 days prior to the Original
Closing Date;
(o) Agent shall have received a Borrowing Base Certificate prepared as of November 30, 2008.
Upon giving effect to the initial funding of Loans and issuance of Letters of Credit, and the
payment by Borrowers of all fees and expenses incurred in connection herewith as well as any
payables stretched beyond their customary payment practices, Availability shall be at least
$17,500,000; and
(p) a copy of any other authorization or other document, opinion or assurance which Agent
reasonably deems necessary or desirable in connection with the entry into and
performance of the transactions contemplated by any Loan Document or for the validity and
enforceability of any Loan Document.
6.2.
Conditions Precedent to Restatement Effective Date
. This Agreement shall not
become effective until the date on which each of the following conditions is satisfied or waived in
writing by Agent and the Lenders:
(a) This Agreement has been executed by each Borrower, Obligor, Agent and Lenders, and
counterparts hereof as so executed shall have been delivered to Agent;
(b) Agent shall have received an affirmation and consent from each Obligor in form, scope and
substance reasonably satisfactory to Agent.
(c) Agent shall be satisfied in its sole discretion with the terms of the Second Lien Note
Documents and the Intercreditor Agreement and all related documents;
(d) Substantially contemporaneously with the Restatement Effective Date, the Company shall
have received gross proceeds from the issuance of the Second Lien Notes in an aggregate amount
equal to at least $250,000,000, which cash proceeds shall be used to prepay the Existing Second
Lien Term Loan, and to pay the purchase price for each of the Third Lien Notes and Existing Senior
Notes tendered pursuant to the Tender Offer, to voluntarily redeem the Third Lien Notes and
Existing Senior Notes which remain outstanding after the consummation of the Tender Offer and to
pay fees, expenses and premiums in connection therewith and for other general corporate purposes;
(e) Borrowers shall have delivered fully executed amended and restated Deposit Account Control
Agreements, or replacements to existing Deposit Account Control Agreements, in each case in favor
of the Agent on terms satisfactory to the Agent with respect to any Deposit Accounts (other than
Deposit Accounts excluded pursuant to
Section 7.3
) of Borrowers;
(f) Agent shall have received certificates, in form and substance reasonably satisfactory to
it, from a knowledgeable Senior Officer of Obligors certifying that, after giving effect to the
initial Loans and transactions hereunder occurring on the Restatement Effective Date, (i) the
Obligors (taken as a whole) are Solvent; (ii) no Default or Event of Default exists; and (iii) the
representations and warranties set forth in
Section 9
are true and correct;
(g) Agent shall have received a certificate of a duly authorized officer of each Obligor,
certifying (i) that attached copies of such Obligors Organic Documents are true and complete, and
in full force and effect, without amendment except as shown; (ii) that an attached copy of
resolutions authorizing execution and delivery of the Loan Documents is true and complete, and that
such resolutions are in full force and effect, were duly adopted, have not been amended, modified
or revoked, and constitute all resolutions adopted with respect to this credit facility; and (iii)
that the charter documents of each Obligor have not been amended or modified since the Original
Closing Date, or if any such charter documents have been so amended or modified, Agent shall have
received copies of the charter documents of each Obligor, certified by the Secretary of State or
other appropriate official of such Obligors jurisdiction of organization.
(h) Agent shall have received good standing certificates, as applicable, for each Obligor,
issued by the Secretary of State or other appropriate official of such Obligors jurisdiction of
organization and each jurisdiction where such Obligors conduct of business or ownership of
Property necessitates qualification;
(i) Agent shall have received a written opinion of Kirkland & Ellis LLP in form and substance
reasonably satisfactory to Agent;
(j) Borrowers have paid all reasonable out-of-pocket fees and expenses of Agent and of legal
counsel to Agent that have been invoiced on or prior to the Restatement Effective Date in
connection with the preparation, negotiation, execution and delivery of this Agreement; and
(k) Agent shall have received, contemporaneously with the Effective Date, evidence from the
Company that the Second Lien Term Loans have been repaid in full substantially contemporaneously
with the Effective Date and the Liens securing the obligations under the Second Lien Term Loans
have been released (or will be released contemporaneously with such repayment).
(l) The Tender Offer is consummated substantially concurrently with the effectiveness of this
Agreement, with the tender of at least 50.1% of the principal amount of each of the Third Lien
Notes and the Existing Senior Notes, with supplemental indentures amending each of the Third Lien
Indenture and the indenture governing the Existing Senior Notes having become effective
contemporaneously with the Effective Date, and Agent having received evidence that the Liens
securing the obligations under the Third Lien Notes have been released (or will be released
contemporaneously with the effectiveness of the supplemental indenture).
(m) The Company shall have paid to the Agent, for its own benefit, the amendment fee pursuant
to the Fee Letter.
6.3.
Conditions Precedent to All Credit Extensions
. Agent, Issuing Bank and Lenders
shall not be required to fund any Loans or arrange for issuance of any Letters of Credit unless the
following conditions are satisfied:
(a) No Default or Event of Default shall exist at the time of, or result from, such funding,
issuance or grant;
(b) The representations and warranties of each Obligor in the Loan Documents shall be true and
correct in all material respects on the date of, and upon giving effect to, such funding, issuance
or grant (except for representations and warranties that expressly relate to an earlier date, and,
in each such case, shall be true and correct in all material respects as of such earlier date);
(c) All conditions precedent in any other Loan Document shall be satisfied or waived; and
(d) With respect to issuance of a Letter of Credit, the LC Conditions shall be satisfied.
Each request (or deemed request) by Borrowers for funding of a Loan, issuance of a Letter of Credit
or grant of an accommodation shall constitute a representation by Borrowers that the foregoing
conditions are satisfied or waived on the date of such request and on the date of such funding,
issuance or grant.
SECTION 7. COLLATERAL
7.1.
Grant of Security Interest
. To secure the prompt payment and performance of all
Obligations, each Borrower and Guarantor hereby grants to Agent for the benefit of Secured Parties,
a continuing security interest in and Lien upon all Property of such Borrower, including all of the
following Property, whether now owned or hereafter acquired, and wherever located:
(a) all Accounts;
(b) all Chattel Paper, including electronic chattel paper;
(c) all Commercial Tort Claims listed on
Schedule 7.1
(as amended from time to time);
(d) all Deposit Accounts;
(e) all Documents;
(f) all General Intangibles, including Intellectual Property (excluding intent to use
trademark applications and contracts that prohibit the granting of security interests or
encumbrances);
(g) all Goods, including Inventory, Equipment and fixtures;
(h) all Instruments;
(i) all Investment Property;
(j) all Letter-of-Credit Rights;
(k) all Supporting Obligations;
(l) all monies, whether or not in the possession or under the control of Agent, a Lender, or a
bailee or Affiliate of Agent or a Lender, including any Cash Collateral;
(m) all accessions to, substitutions for, and all replacements, products, and cash and
non-cash proceeds of the foregoing, including proceeds of and unearned premiums with respect to
insurance policies, and claims against any Person for loss, damage or destruction of any
Collateral; and
(n) all books and records (including customer lists, files, correspondence, tapes, computer
programs, print-outs and computer records) pertaining to the foregoing.
Notwithstanding the foregoing, in no event shall any of the following Property be subject to the
grant of security pursuant to this Section 7.1 or otherwise constitute Collateral: (i) all motor
vehicles and other assets subject to a certificate of title (other than aircraft) the perfection of
a
security interest in which is excluded from the UCC in the relevant jurisdiction; (ii) any General
Intangible or other rights arising under contracts, Instruments, licenses, license agreements
(including Licenses) or other documents, to the extent (and only to the extent) that the grant of a
security interest would (x) constitute a violation of a restriction in favor of a third party on
such grant, unless and until any required consents shall have been obtained, (y) give any other
party the right to terminate its obligations thereunder, or (z) violate any law, provided, however,
that (1) any portion of any such General Intangible or other right shall cease to be excluded
pursuant to this clause (ii) at the time and to the extent that the grant of a security interest
therein does not result in any of the consequences specified above and (2) the limitation set forth
in this clause (ii) above shall not affect, limit, restrict or impair the grant by a Grantor of a
security interest pursuant to this Agreement in any such General Intangible or other right, to the
extent that an otherwise applicable prohibition or restriction on such grant is rendered
ineffective by any applicable law, including the Illinois UCC, (iii) Property (and proceeds
thereof) owned by any Obligor on the date hereof or hereafter acquired that is subject to a Lien
securing a purchase money obligation or Capital Lease permitted to be incurred pursuant to this
Agreement, for so long as the contract or other agreement in which such Lien is granted (or the
documentation providing for such purchase money obligation or Capital Lease) validly prohibits the
creation of any other Lien on such Property; (iv) applications filed in the United States Patent
and Trademark Office to register trademarks or service marks on the basis of any Obligors intent
to use such trademarks or service marks unless and until the filing of a Statement of Use or
Amendment to Allege Use has been filed and accepted, whereupon such applications shall be
automatically subject to the Lien granted herein and deemed included in the Collateral; (v) any
property or assets to the extent that such grant of a security interest is prohibited by any
Applicable Law, requires a consent not obtained of any Governmental Authority pursuant to such
Applicable Law; (vi) more than 65% of the Equity Interests of any Foreign Subsidiary which
represent Voting Stock to the extent a greater percentage would result in adverse tax consequences
to the Borrowers; (vii) all tax, payroll, employee benefit, fiduciary and trust accounts; (viii)
accounts receivable and any assets related thereto owned by an Excluded Receivables Subsidiary or
which the Company or its Subsidiaries have agreed to transfer to an Excluded Receivables
Subsidiary; or (ix) de minimus Equity Interests of any indirect Foreign Subsidiary or other foreign
Person directly held by a Borrower or any Guarantor solely for the benefit of any Person other than
any Borrower or any Guarantor (clauses (i) through (ix) collectively, the Excluded Collateral).
Furthermore, any assets or Property constituting Excluded Collateral are expressly excluded from
each term used in the definition of Collateral (and any component definition thereof); provided,
that in no event shall any Collateral that is also Eligible Inventory be considered Excluded
Collateral for any purpose.
7.2.
[RESERVED]
.
7.3.
Lien on Deposit Accounts; Cash Collateral
.
7.3.1.
Deposit Accounts
. To further secure the prompt payment and performance of all
Obligations, each Borrower hereby grants to Agent, for the benefit of Secured Parties, a continuing
security interest in and Lien upon all amounts credited to any Deposit Account of such Borrower,
including any sums in any blocked or lockbox accounts or in any accounts into which such sums are
swept. Each Borrower hereby authorizes and directs each bank or other depository to deliver to
Agent, during any Cash Dominion Trigger Period, on a daily basis, all balances in any Deposit
Account (other than payroll, tax, petty cash, employee
benefit and trust deposit accounts) maintained by such Borrower, for application to the
Obligations, without inquiry into the authority and right of Agent to make such request.
7.3.2.
Cash Collateral
. Any Cash Collateral shall be invested, at Borrower Agents
election, in Cash Equivalents, and Agent shall have no responsibility for any investment or loss.
Each Borrower hereby grants to Agent, for the benefit of Secured Parties, a security interest in
all Cash Collateral held from time to time and all proceeds thereof, as security for the
Obligations, whether such Cash Collateral is held in a Cash Collateral Account or elsewhere. Agent
may apply Cash Collateral in Deposit Accounts to the payment of any Obligations in accordance with
the provisions of
Section 5.6
, as they become due and payable. Each Cash Collateral Account and
all Cash Collateral shall be under the sole dominion and control of Agent. No Borrower or other
Person claiming through or on behalf of any Borrower shall have any right to any Cash Collateral,
until Full Payment of all Obligations or such amounts are due to be returned to the Borrowers in
accordance with the terms of this Agreement.
7.4.
Real Estate Collateral
.
7.4.1.
Lien on Real Estate
. The Obligations shall also be secured by Mortgages upon
all owned Real Estate owned by Borrowers, as listed on
Schedule 7.4
hereto. The Mortgages shall be
duly recorded, at Borrowers expense, in each office where such recording is required to constitute
a fully perfected Lien on the Real Estate covered thereby. If any Borrower acquires any owned Real
Estate hereafter, Borrowers shall promptly notify Agent of such acquisition and shall, within 45
days of Agents request, execute, deliver and record a Mortgage sufficient to create a first
priority Lien (subject to Permitted Liens) in favor of Agent on such Real Estate, and shall
promptly deliver all Related Real Estate Documents.
7.4.2.
Collateral Assignment of Leases
. To further secure the prompt payment and
performance of all Obligations, each Borrower hereby grants a security interest and collaterally
assigns to Agent, for the benefit of Secured Parties, all of such Borrowers right, title and
interest in, to and under all now or hereafter existing leases of real Property to which such
Borrower is a party, whether as lessor or lessee, and all extensions, renewals, modifications and
proceeds thereof;
provided
, however, the foregoing provision shall exclude any real
Property lease (i) in which Borrower is expressly prohibited from assigning or transferring its
right, title and interest to such real Property lease or (ii) in which such collateral assignment
or grant of security interest would cause a default thereunder, a loss of rights by such Borrower
therein or thereunder or an increase in the obligations of such Borrower (other than an obligation
to provide notice or other ministerial acts);
provided
, further that in the event consent
is obtained for such assignment and/or transfer, upon the granting of the consent, the real
Property lease so excluded from this collateral assignment shall, by virtue of this proviso
(without any act or delivery by any Person), be then subject to the collateral assignment set forth
in this
Section 7.4.2
.
7.5.
Other Collateral
.
7.5.1.
Commercial Tort Claims
. Borrowers shall promptly notify Agent in writing if
any Borrower obtains knowledge that it holds a Commercial Tort Claim (other than, as long as no
Default or Event of Default exists, a Commercial Tort Claim for less than $1,000,000) and, upon
Agents request, shall promptly take such actions as Agent deems appropriate to confer upon Agent
(for the benefit of Secured Parties) a duly perfected, first priority Lien upon such claim.
7.5.2.
Certain After-Acquired Collateral
. Borrowers shall promptly notify Agent in
writing if, after the Restatement Effective Date, any Borrower obtains any interest in any
Collateral consisting of Deposit Accounts, Chattel Paper, Documents, Instruments, Investment
Property or Letter-of-Credit Rights, and, upon Agents request, shall promptly take such actions as
Agent deems appropriate to effect Agents duly perfected, first priority (subject to Permitted
Liens) Lien upon such Collateral (which is not yet subject to a Lien in favor of Agent), including
obtaining any appropriate possession, control agreement or Lien Waiver. Borrower Agent shall
provide Agent, on a quarterly basis, notification of any Intellectual Property or rights therein
obtained since the last day of the previous Fiscal Quarter, including the owner of such
Intellectual Property and a detailed description thereof. If any Collateral (other than (i)
Property in transit among locations of Borrowers, (ii) Inventory out for processing, and (iii)
Property out for repair or refurbishment or Property in the possession of employees in the Ordinary
Course of Business, in each case with respect to this clause (iii), valued at less than $500,000),
is in the possession of a third party, at Agents request, Borrowers shall use commercially
reasonable efforts to obtain an acknowledgment that such third party holds the Collateral for the
benefit of Agent.
7.5.3.
Aircraft
. The Obligations shall also be secured by a security agreement
granting Agent a security interest in any aircraft owned by Borrowers. Such security agreement
shall be duly recorded, at Borrowers expense, with the International Registry (as defined in such
security agreement) and with the appropriate Federal Aviation Administration office, as applicable.
If any Borrower acquires any aircraft hereafter, Borrowers shall promptly notify Agent of such
acquisition and shall, within 60 days of Agents request, execute, deliver and record a security
agreement sufficient to create a first priority Lien (subject to Permitted Liens) in favor of Agent
on such aircraft, and shall promptly deliver all other documents related thereto.
7.6.
No Assumption of Liability
. The Lien on Collateral granted hereunder is given as
security only and shall not subject Agent or any Lender to, or in any way modify, any obligation or
liability of Borrowers relating to any Collateral.
7.7.
Further Assurances
. Promptly following written request, Borrowers shall deliver
such instruments, collateral assignments, or other documents or agreements, and shall take such
actions, as Agent deems appropriate under Applicable Law to evidence or perfect its Lien on any
Collateral, or otherwise to give effect to the intent of this Agreement. Each Borrower and
Guarantor authorizes Agent to file any financing statement that indicates the Collateral as all
assets or all personal property of such Borrower or Guarantor, as applicable, or words to
similar effect.
7.8.
Foreign Subsidiary Stock
. The Collateral shall include only 65% of the Voting
Stock of any Foreign Subsidiary to the extent such Voting Stock secures any Obligation.
SECTION 8. COLLATERAL ADMINISTRATION
8.1.
Borrowing Base Certificates
. By the 20
th
day after the last day of
each prior Fiscal Month, Borrowers shall deliver to Agent (and Agent shall promptly deliver same to
Lenders) a Borrowing Base Certificate prepared as of the close of business on the last day of the
previous month and at such other times as Agent may request. If at any time, Availability is less
than $12,500,000 on each day for five consecutive Business Days, until such time as Availability
has been greater than $12,500,000 on each day for more than 30 consecutive days, by the third
Business Day of each week thereafter, Borrowers shall deliver an additional report, in form and
substance acceptable to Agent, reflecting Borrowers updated gross accounts receivable, prepared as
of the close of business on the last day of the prior week. All calculations of Availability in
any Borrowing Base Certificate shall originally be made by Borrower Agent and certified by a Senior
Officer, provided that Agent may from time to time review and adjust any such calculation in its
Permitted Discretion (a) to reflect its reasonable estimate of declines in value of any Collateral,
due to collections received in the Dominion Account or otherwise; (b) to adjust advance rates to
reflect changes in dilution, quality, mix and other factors affecting Collateral; and (c) to the
extent the calculation is not made in accordance with this Agreement or does not accurately reflect
the Availability Reserve.
8.2.
Administration of Accounts
.
8.2.1.
Records and Schedules of Accounts
. Each Borrower shall keep accurate and
complete records of its Accounts, including all payments and collections thereon, and shall submit
to Agent sales, collection, reconciliation and other reports in form satisfactory to Agent, on such
periodic basis as Agent may request. Each Borrower shall also provide to Agent, on or before the
20th day after the last day of each prior Fiscal Month, a detailed aged trial balance of all
Accounts as of the end of the preceding Fiscal Month, specifying each Accounts Account Debtor name
and address, amount, invoice date and due date. With respect to any item delivered pursuant to
this
Section 8.2.1
, each Borrower shall also provide to Agent such additional documentation showing
any discount, allowance, credit, authorized return or dispute, and including such proof of
delivery, copies of invoices and invoice registers, copies of related documents, repayment
histories, status reports and other information on such periodic basis as Agent may request. If
Accounts in an aggregate face amount of $1,000,000 or more cease to be Eligible Accounts, Borrowers
shall notify Agent of such occurrence promptly (and in any event within one Business Day) after any
Borrower has knowledge thereof.
8.2.2.
Taxes
. If an Account of any Borrower includes a charge for any Taxes then due,
Agent is authorized, in its discretion, to pay the amount thereof to the proper taxing authority
for the account of such Borrower and to charge Borrowers therefor; provided, however, that neither
Agent nor Lenders shall be liable for any Taxes that may be due from Borrowers or with respect to
any Collateral.
8.2.3.
Account Verification
. Whether or not a Default or Event of Default exists,
Agent shall have the right at any time, in the name of Agent, any designee of Agent or any
Borrower, to verify the validity, amount or any other matter relating to any Accounts of Borrowers
by mail, telephone or otherwise. Borrowers shall cooperate fully with Agent in an effort to
facilitate and promptly conclude any such verification process.
8.2.4.
Maintenance of Dominion Account
. Borrowers shall maintain Dominion Accounts
pursuant to lockbox or other arrangements reasonably acceptable to Agent. Borrowers shall obtain
an agreement (in form and substance reasonably satisfactory to Agent) from each lockbox servicer
and Dominion Account bank, establishing Agents control over and Lien in the lockbox or Dominion
Account, which may be exercised by Agent during any Cash Dominion Trigger Period, requiring
immediate deposit of all remittances received in the lockbox to a Dominion Account, and waiving or
subordinating offset rights of such servicer or bank, except for customary administrative charges.
If a Dominion Account is not maintained with Bank of America, Agent may, during any Cash Dominion
Trigger Period, require immediate transfer of
all funds in such account to a Dominion Account maintained with Bank of America,
provided
,
however, that Borrowers may maintain a balance of no more than $500,000 at any time in its master
disbursement account. Agent and Lenders assume no responsibility to Borrowers for any lockbox
arrangement or Dominion Account, including any claim of accord and satisfaction or release with
respect to any Payment Items accepted by any bank.
8.2.5.
Proceeds of Collateral
. Borrowers shall request in writing and otherwise take
all necessary steps to ensure that all payments on Accounts or otherwise relating to Collateral are
made directly to a Dominion Account (or a lockbox relating to a Dominion Account). If any Borrower
or Subsidiary receives cash or Payment Items with respect to any Collateral, it shall hold same in
trust for Agent and promptly (not later than the next Business Day) deposit same into a Dominion
Account. Notwithstanding anything to the contrary contained herein, the Obligors shall be entitled
to maintain amounts of cash and Cash Equivalents in petty cash (in an aggregate amount for all such
accounts not to exceed $500,000), trust, tax, employee benefit and payroll accounts which are not
Dominion Accounts.
8.3.
Administration of Inventory
.
8.3.1.
Records and Reports of Inventory
. Each Borrower shall keep accurate and
complete records of its Inventory, including costs and daily withdrawals and additions, and shall
submit to Agent inventory and reconciliation reports in form satisfactory to Agent, on such
periodic basis as Agent may request. Each Borrower shall conduct a physical inventory in time and
manner consistent with such Borrowers past practices (and on a more frequent basis if requested by
Agent when an Event of Default exists) and periodic cycle counts consistent with historical
practices, and shall provide to Agent a report based on each such inventory and count promptly upon
completion thereof, together with such supporting information as Agent may request. Agent may
participate in and observe each physical count, provided that Agent shall be reimbursed for its
participation only in connection with inspections in accordance with
Section 10.1.1
.
8.3.2.
Returns of Inventory
. No Borrower shall return any Inventory to a supplier,
vendor or other Person, whether for cash, credit or otherwise, unless (a) such return is in the
Ordinary Course of Business; (b) no Overadvance exists or would result therefrom; (c) Agent is
promptly notified if the aggregate Value of all Inventory returned in any Fiscal Month exceeds
$2,000,000; and (d) any net cash payment for such proceeds received by a Borrower for a return is
promptly remitted to Agent for application to the Obligations without a corresponding commitment
reduction.
8.3.3.
Acquisition, Sale and Maintenance
. Each Borrower shall take all steps to
assure that all Inventory is produced in accordance with Applicable Law, including the FLSA, in
each case except to the extent failure to comply with any Applicable Law could not result in a
Material Adverse Effect. No Borrower shall sell any Inventory on consignment or approval or any
other basis under which the customer may return or require a Borrower to repurchase such Inventory,
except in the Ordinary Course of Business. Borrowers shall use, store and maintain all Inventory
with reasonable care and caution, in accordance with applicable standards of any insurance and in
conformity in all material respects with all Applicable Law and shall make current rent payments
(within applicable grace periods provided for in leases) at all location where any material portion
of the Collateral is located.
8.4.
Administration of Equipment
.
8.4.1.
Records and Schedules of Equipment
. Each Borrower shall keep accurate and
complete records of its Equipment, including kind, quantity, cost, acquisitions and dispositions
thereof, and shall submit to Agent, on such periodic basis as Agent may request, a current schedule
thereof, in form and containing such detail as is satisfactory to Agent. Promptly upon request,
Borrowers shall deliver to Agent evidence of their ownership or interests in any Equipment.
8.4.2.
Dispositions of Equipment
. No Borrower shall sell, lease or otherwise
dispose of any Equipment, without the prior written consent of Agent, other than (a) a Permitted
Asset Disposition; and (b) replacement of Equipment that is worn, damaged or obsolete with
Equipment of like function and value, if the replacement Equipment is acquired substantially
contemporaneously with such disposition and is free of Liens.
8.4.3.
Condition of Equipment
. The Equipment is in satisfactory operating
condition and repair, and all necessary replacements and repairs have been made so that the value
and operating efficiency of the Equipment is preserved at all times, reasonable wear, tear,
casualty and condemnation excepted. No Borrower shall permit any Equipment to become affixed to
real Property unless any landlord or mortgagee delivers a Lien Waiver.
8.5.
Administration of Deposit Accounts
.
Schedule 8.5
sets forth all Deposit
Accounts maintained by Borrowers, including all Dominion Accounts as of the Restatement Effective
Date. Each Borrower shall take all actions necessary to establish Agents control of each such
Deposit Account (other than an account exclusively used for payroll, payroll taxes, taxes, or
employee benefits or an account containing not more than $10,000 at any time (subject to the
limitations in
Section 8.2.5
)). Each Borrower shall be the sole account holder of each Deposit
Account and shall not allow any other Person (other than Agent and Second Lien Note Collateral
Agent) to have control over a Deposit Account or any Property deposited therein. Each Borrower
shall promptly notify Agent of any opening or closing of a Deposit Account and, with the consent of
Agent, will amend Schedule 8.5 to reflect same.
8.6.
General Provisions
.
8.6.1.
Location of Collateral
. All tangible items of Collateral, other than
Property (i) in transit, (ii) Inventory out for processing, or (iii) out for repair, refurbishment,
processing, or in the possession of employees in the Ordinary Course of Business and in each case
with respect to this clause (iii) valued at less than $500,000, shall at all times other than in
the Ordinary Course of Business be kept by Borrowers at the business locations set forth in
Schedule 8.6.1
(as amended from time to time) except that Borrowers may (a) make sales or other
dispositions of Collateral in accordance with
Section 10.2.7
; and (b) (i) move Collateral to any
location in the United States, and (ii) move Collateral located in the United Kingdom or member
state of the European Union to another location in the United Kingdom, member state of the European
Union or the United States, in each case upon five Business Days prior written notice to Agent.
8.6.2.
Insurance of Collateral; Condemnation Proceeds
.
(a) Each Borrower shall maintain insurance with respect to the Collateral, covering
casualty, hazard, theft, malicious mischief, flood and other risks, in amounts, with
endorsements and with insurers (with a Best Rating of at least A7, unless otherwise approved
by Agent) satisfactory to Agent. Agent agrees that the insurance maintained by each Borrower on
the Original Closing Date satisfies this
Section 8.6.2
. All proceeds under each policy shall be
payable to Agent. From time to time upon request, Borrowers shall promptly following request,
deliver to Agent the certified copies of its insurance policies and updated flood plain searches.
Unless Agent shall agree otherwise, each policy shall include satisfactory endorsements (i) showing
Agent as loss payee; (ii) to the extent available requiring 30 days prior written notice to Agent
in the event of cancellation of the policy for any reason whatsoever; and (iii) to the extent
available specifying that the interest of Agent shall not be impaired or invalidated by any act or
neglect of any Borrower or the owner of the Property, nor by the occupation of the premises for
purposes more hazardous than are permitted by the policy. If any Borrower fails to provide and pay
for any insurance, Agent may, at its option, but shall not be required to, procure the insurance
and charge Borrowers therefor. Each Borrower agrees to deliver to Agent, promptly as rendered,
copies of all reports made to insurance companies. While no Event of Default exists, Borrowers may
settle, adjust or compromise any insurance claim, as long as the proceeds are delivered to Agent in
accordance with
Section 5.3.1(a)
. If an Event of Default exists, only Agent shall be authorized to
settle, adjust and compromise such claims.
(b) Any proceeds of insurance (other than proceeds from workers compensation or D&O
insurance or business interruption insurance) and any awards arising from condemnation of any
Collateral shall be paid to Agent in accordance with
Section 5.3.1(a)
. Any such proceeds or awards
that relate to Inventory shall be applied to payment of the Revolver Loans.
8.6.3.
Protection of Collateral
. All expenses of protecting, storing,
warehousing, insuring, handling, maintaining and shipping any Collateral, all Taxes payable with
respect to any Collateral (including any sale thereof), and all other payments required to be made
by Agent to any Person to realize upon any Collateral, shall be borne and paid by Borrowers. Agent
shall not be liable or responsible in any way for the safekeeping of any Collateral, for any loss
or damage thereto (except for reasonable care in its custody while Collateral is in Agents actual
possession), for any diminution in the value thereof, or for any act or default of any
warehouseman, carrier, forwarding agency or other Person whatsoever, but the same shall be at
Borrowers sole risk.
8.6.4.
Defense of Title to Collateral
. Each Borrower shall at all times defend
its title to Collateral and Agents Liens therein against all Persons, claims and demands
whatsoever, except Permitted Liens and other claims or demands permitted to exist hereunder.
8.7.
Power of Attorney
. Each Borrower hereby irrevocably constitutes and appoints
Agent (and all Persons designated by Agent) as such Borrowers true and lawful attorney (and
agent-in-fact) for the purposes provided in this
Section 8.7
. Agent, or Agents designee, may,
without notice and in either its or a Borrowers name, but at the cost and expense of Borrowers:
(a) Endorse a Borrowers name on any Payment Item or other proceeds of Collateral
(including proceeds of insurance) that come into Agents possession or control in accordance with
the terms of the Loan Documents; and
(b) During an Event of Default, (i) notify any Account Debtors of the assignment of their
Accounts, demand and enforce payment of Accounts by legal proceedings or
otherwise, and generally exercise any rights and remedies with respect to Accounts; (ii)
settle, adjust, modify, compromise, discharge or release any Accounts or other Collateral, or any
legal proceedings brought to collect Accounts or Collateral; (iii) sell or assign any Accounts and
other Collateral upon such terms, for such amounts and at such times as Agent deems advisable; (iv)
collect, liquidate and receive balances in Deposit Accounts or investment accounts, and take
control, in any manner, of proceeds of Collateral; (v) prepare, file and sign a Borrowers name to
a proof of claim or other document in a bankruptcy of an Account Debtor, or to any notice,
assignment or satisfaction of Lien or similar document; (vi) receive, open and dispose of mail
addressed to a Borrower, and notify postal authorities to deliver any such mail to an address
designated by Agent; (vii) endorse any Chattel Paper, Document, Instrument, bill of lading, or
other document or agreement relating to any Accounts, Inventory or other Collateral; (viii) use a
Borrowers stationery and sign its name to verifications of Accounts and notices to Account
Debtors; (ix) to the extent a Borrower has rights sufficient to allow Agent to do so, use
information contained in any data processing, electronic or information systems relating to
Collateral; (x) make and adjust claims under insurance policies; (xi) take any action as may be
necessary or appropriate to obtain payment under any letter of credit, bankers acceptance or other
instrument for which a Borrower is a beneficiary; and (xii) take all other actions as Agent deems
appropriate to fulfill any Borrowers obligations under the Loan Documents.
SECTION 9. REPRESENTATIONS AND WARRANTIES
9.1.
General Representations and Warranties
. To induce Agent and Lenders to enter
into this Agreement and to make available the Revolver Commitments, Loans and Letters of Credit,
each Borrower represents and warrants that:
9.1.1.
Organization and Qualification
. Each Obligor is duly organized, validly
existing and in good standing (if applicable) under the laws of the jurisdiction of its
organization. Each Obligor is duly qualified, authorized to do business and in good standing (if
applicable) as a foreign corporation or company in each jurisdiction where failure to be so
qualified could reasonably be expected to have a Material Adverse Effect.
9.1.2.
Power and Authority
. Each Obligor is duly authorized to execute, deliver
and perform its Loan Documents. The execution, delivery and performance of the Loan Documents have
been duly authorized by all necessary action, and do not (a) require any consent or approval of any
holders of Equity Interests of any Obligor, other than those already obtained; (b) contravene the
Organic Documents of any Obligor; (c) violate or cause a default under any Applicable Law, Material
Contract or Restrictive Agreement except to the extent such violation or default could not
reasonably be expected to result in a Material Adverse Effect; or (d) result in or require the
imposition of any Lien (other than Permitted Liens) on any Property of any Obligor.
9.1.3.
Enforceability
. Each Loan Document is a legal, valid and binding
obligation of each Obligor party thereto, enforceable in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency or similar laws affecting the enforcement
of creditors rights generally.
9.1.4.
Capital Structure
.
Schedule 9.1.4
shows, for each Obligor, its name, its
jurisdiction of organization, its authorized and issued Equity Interests, the holders of its Equity
Interests, and all agreements binding on such holders with respect to their Equity Interests as of
the Original Closing Date. Except as disclosed on
Schedule 9.1.4
, in the five years preceding
the Original Closing Date, no Obligor has acquired any substantial assets from any other Person nor
been the surviving entity in a merger or combination. Each Borrower has good title to its Equity
Interests in its Subsidiaries, subject only to Agents Lien and other Permitted Liens, and all such
Equity Interests are duly issued, fully paid and non-assessable to the extent applicable. Except
as set forth on
Schedule 9.1.4
, as of the Original Closing Date, there are no outstanding purchase
options, warrants, subscription rights, agreements to issue or sell, convertible interests, phantom
rights or powers of attorney relating to Equity Interests of any Obligor.
9.1.5.
Title to Properties; Priority of Liens
. Each Borrower and Subsidiary has
good and marketable title to (or valid leasehold interests in) all of its material Real Estate, and
good and marketable title to all of its material personal Property, including all such Property
reflected in any financial statements delivered to Agent or Lenders, in each case free of Liens
except Permitted Liens and minor defects in title that do not interfere with its ability to conduct
its business as currently conducted or to utilize such Property for its intended purposes. Each
Borrower and Subsidiary has paid and discharged all lawful claims that, if unpaid, could become a
Lien on its Properties, other than Permitted Liens. To the extent required by the Loan Documents,
all Liens of Agent in the Collateral are duly perfected, valid and enforceable first priority
Liens, subject only to Permitted Liens and minor defects in title that do not interfere with its
ability to conduct its business as currently conducted or to utilize such Property for its intended
purposes; provided, however, that for registered United States trademarks, United States trademark
applications, United States patents, United States patent applications, and registered United
States copyrights, the security interest will be perfected upon filing, to the extent perfection of
a security interest can be accomplished by such a filing, of the Trademark Security Agreement with
the United States Patent and Trademark Office, the Patent Security Agreement with the United States
Patent and Trademark Office, or the Copyright Security Agreement with the United States Copyright
Office, and such perfected security interest is enforceable as such against any and all creditors
of and purchasers from Obligors in the United States.
9.1.6.
Accounts
. Agent may rely, in determining which Accounts are Eligible
Accounts, on all statements and representations made by Borrowers with respect thereto. Borrowers
warrant, with respect to each Account at the time it is shown as an Eligible Account in a Borrowing
Base Certificate, that:
(a) it is genuine and in all respects what it purports to be, and is not evidenced by a
judgment;
(b) it arises out of a completed,
bona fide
sale and delivery of goods in the Ordinary
Course of Business, and substantially in accordance with any purchase order, contract or other
document relating thereto;
(c) it is for a sum certain, maturing as stated in the invoice covering such sale, a copy
of which has been furnished or is available to Agent on request;
(d) it is absolutely owing by the Account Debtor, without contingency in any respect;
(e) no purchase order, agreement, document or Applicable Law restricts assignment of the
Account to Agent (regardless of whether, under the UCC, the restriction is ineffective), and the
applicable Borrower is the sole payee or remittance party shown on the invoice;
(f) no extension, compromise, settlement, modification, credit, deduction or return has
been authorized with respect to the Account, except discounts or allowances granted in the Ordinary
Course of Business for prompt payment that are reflected in Borrowers records related thereto and
in the reports submitted to Agent hereunder; and
(g) to the best of Borrowers knowledge, (i) there are no facts or circumstances that are
reasonably likely to impair the enforceability or collectibility of such Account; (ii) the Account
Debtor had the capacity to contract when the Account arose, continues to meet the applicable
Borrowers customary credit standards, is Solvent, is not contemplating or subject to an Insolvency
Proceeding, and has not failed, or suspended or ceased doing business; and (iii) there are no
proceedings or actions threatened or pending against any Account Debtor that could reasonably be
expected to have a material adverse effect on the Account Debtors financial condition.
9.1.7.
Financial Statements
. The consolidated balance sheets, and related
statements of income, cash flow and shareholders equity, of Borrowers and Subsidiaries that have
been and are hereafter delivered to Agent and Lenders, are prepared in accordance with GAAP, and
fairly present in all material respects the financial positions and results of operations of
Borrowers and Subsidiaries at the dates and for the periods indicated, subject to, in the case of
monthly or quarterly balance sheets and related statements, to the absence of footnotes and year
end audit adjustments. All projections delivered by the Obligors to Agent and Lenders have been
prepared in good faith, based on reasonable assumptions in light of the circumstances at such time,
it being acknowledged, and agreed by Lenders, however, that projections as to future events are not
viewed as facts and that the actual results during the period or periods covered by said
projections may differ from the projected results and that the differences may be material. Since
December 31, 2007,
there has been no change in the condition (financial or otherwise)
of the Obligors, taken as a whole, that could reasonably be expected to have a Material Adverse
Effect. The Obligors and their Subsidiaries, taken as a whole, are Solvent.
9.1.8.
Surety Obligations
. No Borrower or Subsidiary is obligated as surety or
indemnitor under any bond or other contract that assures payment or performance of any obligation
of any Person, except as permitted hereunder.
9.1.9.
Taxes
. Each Borrower and Subsidiary has filed all federal, state,
national, regional, provincial and material local tax returns and other material reports and all
other tax returns and reports and all state and foreign income reports and declarations required by
any Jurisdiction to which any of them is subject that it is required by law to file, and has paid,
or made provision for the payment of, all Taxes upon it, its income and its Properties that are due
and payable, except to the extent being Properly Contested or to the extent permitted by
Section
10.2.
1(s)
or 10.2.2(r)
. The provision for Taxes on the books of each Borrower and Subsidiary is
adequate for all years not closed by applicable statutes, and for its current Fiscal Year.
9.1.10.
Brokers
. There are no brokerage commissions, finders fees or investment
banking fees payable in connection with any transactions contemplated by the Loan Documents
other than such commissions and fees payable in connection with the Indenture and transactions
related thereto.
9.1.11.
Intellectual Property
. Each Obligor owns or has the lawful right to use
all Intellectual Property necessary for the conduct of its business to the knowledge of such
Obligor without infringing or misappropriating any Intellectual Property rights of others except
to the extent that such failure to own or have such rights to use or any conflict would not
reasonably be expected to result in a Material Adverse Effect. There is no pending or, to any
Borrowers knowledge, threatened Intellectual Property Claim with respect to any Obligor or any of
their Property (including any Intellectual Property that could reasonably be expected to have a
Material Adverse Effect). Except as disclosed on
Schedule 9.1.11
, no Obligor pays or owes any
Royalty or other compensation to any Person with respect to any Intellectual Property (excluding
shrink-wrap, click-wrap, or other off-the-shelf software). All registered Intellectual
Property owned by any Obligor is shown on
Schedule 9.1.11
.
9.1.12.
Governmental Approvals
. Each Borrower and Subsidiary has, is in
compliance with, and is in good standing with respect to, all Governmental Approvals necessary to
conduct its business and to own, lease and operate its Properties except to the extent the failure
to have such Governmental Approval would not reasonably be expected to result in a Material Adverse
Effect. All necessary import, export or other licenses, permits or certificates for the import or
handling of any goods or other Collateral have been procured and are in effect, and Borrowers and
Subsidiaries have complied with all foreign and domestic laws with respect to the shipment and
importation of any goods or Collateral, except where noncompliance could not reasonably be expected
to have a Material Adverse Effect.
9.1.13.
Compliance with Laws
. Each Borrower and Subsidiary has duly complied, and
its Properties and business operations are in compliance, in all material respects with all
Applicable Law, except where noncompliance could not reasonably be expected to have a Material
Adverse Effect. There have been no citations, notices or orders of material noncompliance issued
to any Borrower or Subsidiary under any Applicable Law which could reasonably be expected to have a
Material Adverse Effect. No Inventory has been produced in violation of the FLSA.
9.1.14.
Compliance with Environmental Laws
. Except as disclosed on
Schedule
9.1.14
, no Obligors past or present operations, Real Estate or other Properties are subject to any
federal, state or local investigation to determine whether any remedial action of a material nature
is needed to address any environmental pollution, hazardous material or environmental clean-up. No
Obligor has received any Environmental Notice which would reasonably be expected to result in a
material liability to Borrowers. No Obligor has any contingent liability with respect to any
Environmental Release, environmental pollution or hazardous material on any Real Estate now or
previously owned, leased or operated by it where such liability could reasonably be expected to
result in a Material Adverse Effect.
9.1.15.
Burdensome Contracts
. No Borrower or Subsidiary is a party or subject to
any contract, agreement or charter restriction that could reasonably be expected to have a Material
Adverse Effect. No Borrower or Subsidiary is party or subject to any Restrictive Agreement, except
as shown on
Schedule 9.1.15
as of the Original Closing Date or as otherwise permitted pursuant to
Section 10.2.15
. No such Restrictive Agreement prohibits the execution,
delivery or performance of any Loan Document by an Obligor. The Obligations do not exceed the
Indenture Formula Amount.
9.1.16.
Litigation
. Except as shown on
Schedule 9.1.16
, there are no proceedings
or investigations pending or, to any Borrowers knowledge, threatened against any Borrower or
Subsidiary, or any of their businesses, operations, Properties, prospects or conditions, that (a)
relate to any Loan Documents or transactions contemplated thereby; or (b) could reasonably be
expected to have a Material Adverse Effect if determined adversely to any Borrower or Subsidiary.
9.1.17.
No Defaults
. No event or circumstance has occurred or exists that
constitutes a Default or Event of Default. No Obligor is in default, and no event or circumstance
has occurred or exists that with the passage of time or giving of notice would constitute a default
(after giving effect to any cure or grace period and waivers or amendments thereof), under any
Material Contract or any Restrictive Agreement. As of the Original Closing Date, there is no basis
upon which any party (other than a Borrower or Subsidiary) could terminate a Material Contract
prior to its scheduled termination date.
9.1.18.
ERISA
.
(a) Each Plan is in compliance in all material respects with the applicable provisions of
ERISA, the Code, and other federal and state laws. Each Plan that is intended to qualify under
Section 401(a) of the Code has received a favorable determination letter or prototype opinion from
the IRS or an application for such a letter is currently being processed by the IRS with respect
thereto and, to the knowledge of Borrowers, nothing has occurred which would reasonably be expected
to prevent, or cause the loss of, such qualification. Each Obligor and ERISA Affiliate has made
all required contributions to each Plan subject to Section 412 of the Code, and no application for
a funding waiver or an extension of any amortization period pursuant to Section 412 of the Code has
been made with respect to any Plan.
(b) There are no pending or, to the knowledge of Borrowers, threatened claims, actions or
lawsuits, or action by any Governmental Authority, with respect to any Plan that could reasonably
be expected to have a Material Adverse Effect. There has been no prohibited transaction or
violation of the fiduciary responsibility rules with respect to any Plan that has resulted in or
could reasonably be expected to have a Material Adverse Effect.
(c) (i) No ERISA Event has occurred or is reasonably expected to occur; (ii) no Pension
Plan has any Unfunded Pension Liability that could reasonably be expected to have a Material
Adverse Effect; (iii) no Obligor or ERISA Affiliate has incurred, or reasonably expects to incur,
any liability under Title IV of ERISA with respect to any Pension Plan (other than premiums due and
not delinquent under Section 4007 of ERISA); (iv) no Obligor or ERISA Affiliate has incurred, or
reasonably expects to incur, any liability (and no event has occurred which, with the giving of
notice under Section 4219 of ERISA, would result in such liability) under Section 4201 or 4243 of
ERISA with respect to a Multiemployer Plan; and (v) no Obligor or ERISA Affiliate has engaged in a
transaction that could be subject to Section 4069 or 4212(c) of ERISA.
(d) Except as disclosed on
Schedule 9.18
, with respect to any Foreign Plan, (i) all
employer and employee contributions required by law or by the terms of the Foreign Plan
have been made, or, if applicable, accrued, in accordance with normal accounting practices;
(ii) the fair market value of the assets of each funded Foreign Plan, the liability of each insurer
for any Foreign Plan funded through insurance, or the book reserve established for any Foreign
Plan, together with any accrued contributions, is sufficient to procure or provide for the accrued
benefit obligations with respect to all current and former participants in such Foreign Plan
according to the actuarial assumptions and valuations most recently used to account for such
obligations in accordance with applicable generally accepted accounting principles; and (iii) it
has been registered as required and has been maintained in good standing with applicable regulatory
authorities.
9.1.19.
Trade Relations
. There exists no actual or threatened termination,
limitation or modification of any business relationship between any Borrower or Subsidiary and any
customer or supplier, or any group of customers or suppliers, who individually or in the aggregate
are material to the business of the Borrowers taken as a whole.
9.1.20.
Labor Relations
. Except as described on
Schedule 9.1.20
, as of the
Original Closing Date no Obligor is party to or bound by any collective bargaining agreement, or
material management agreement or consulting agreement. Except as described on
Schedule 9.1.20
, as
of the Original Closing Date there are no material grievances, disputes or controversies with any
union or other organization of any Obligors employees, or, to any Borrowers knowledge, any
asserted or threatened strikes, work stoppages or demands for collective bargaining.
9.1.21.
Payable Practices
. No Obligor has made any material change in its
historical accounts payable practices from those in effect on the Original Closing Date.
9.1.22.
Not a Regulated Entity
. No Obligor is (a) an investment company or a
person directly or indirectly controlled by or acting on behalf of an investment company within
the meaning of the Investment Company Act of 1940; or (b) subject to regulation under the Federal
Power Act, the Interstate Commerce Act, any public utilities code or any other Applicable Law
regarding its authority to incur Debt.
9.1.23.
Margin Stock
. No Borrower or Subsidiary is engaged, principally or as one
of its important activities, in the business of extending credit for the purpose of purchasing or
carrying any Margin Stock. No Loan proceeds or Letters of Credit will be used by Borrowers to
purchase or carry, or to reduce or refinance any Debt incurred to purchase or carry, any Margin
Stock or for any related purpose governed by Regulations T, U or X of the Board of Governors.
9.1.24.
Tender Offer
. The Tender Offer has been consummated as of the Restatement
Effective Date with each of the Third Lien Notes and Existing Senior Notes accepted in the Tender
Offer representing at least 50.1% of the principal amount of the Third Lien Notes and at least
50.1% of the principal amount of the Existing Senior Notes, and the supplemental indentures to the
Third Lien Indenture and the indenture governing the Existing Senior Notes have become effective,
the Agent has received evidence that the Liens securing the obligations under each of the Third
Lien Notes and the Existing Second Lien Term Loan have been released, and the Existing Second Lien
Term Loan has been paid in full.
9.2.
Complete Disclosure
. No Loan Document (as amended or updated as provided for
herein)(including, without limitation, any financial statements delivered to Agent or Lenders at
any time) other than projections, budgets, estimates and other forward looking statements, contains
any untrue statement of a material fact, nor fails to disclose any material fact necessary to make
the statements contained therein not materially misleading. There is no fact or circumstance that
any Obligor has failed to disclose to Agent in writing that could reasonably be expected to have a
Material Adverse Effect.
SECTION 10. COVENANTS AND CONTINUING AGREEMENTS
10.1.
Affirmative Covenants
. As long as any Revolver Commitments or Revolver
Loans remain outstanding (other than contingent obligations or Letters of Credit collateralized in
a manner reasonably acceptable to Issuing Bank), each Borrower shall, and shall cause each
Subsidiary to:
10.1.1.
Inspections; Appraisals
.
(a) Permit Agent from time to time, subject (except when an Event of Default exists) to
reasonable notice and normal business hours, to visit and inspect the Properties of any Borrower or
Subsidiary, inspect, audit and make extracts from any Borrowers or Subsidiarys books and records
(other than information which is subject to attorney-client privilege or would result in a breach
of a confidentiality obligation of the Obligors to any other Person), and discuss with its
officers, employees, agents, advisors and independent accountants such Borrowers or Subsidiarys
business, financial condition, assets, prospects and results of operations. Lenders may
participate in any such visit or inspection, at their own expense;
provided
,
however
, the Obligors shall, absent a continuing Event of Default, be given the opportunity
to be present at any communications with their accountants. Neither Agent nor any Lender shall
have any duty to any Borrower to make any inspection, nor to share any results of any inspection,
appraisal or report with any Borrower. Borrowers acknowledge that all inspections, appraisals and
reports are prepared by Agent and Lenders for their purposes, and Borrowers shall not be entitled
to rely upon them. Agent may allow Borrower Agent to receive copies of any appraisals.
(b) Reimburse Agent for all reasonable charges, costs and expenses of Agent in connection
with (i) examinations of any Obligors books and records or any other financial or Collateral
matters as Agent deems appropriate, up to three times per Loan Year, and (ii) appraisals of
Inventory, Equipment and Real Estate up to two times in the Fiscal Year ending December 31, 2009
and up to one time per calendar year thereafter;
provided
,
however
, that if an
examination or appraisal is initiated during an Event of Default, all charges, costs and expenses
therefor shall be reimbursed by Borrowers without regard to such limits. Subject to and without
limiting the foregoing, Borrowers specifically agree to pay Agents then standard charges for each
day that an employee of Agent or its Affiliates is engaged in any examination activities, and shall
pay the standard charges of Agents internal appraisal group. This
Section 10.1.1
shall not be
construed to limit Agents right to conduct examinations or to obtain appraisals at any time in its
discretion, nor to use third parties for such purposes.
10.1.2.
Financial and Other Information
. Keep adequate records and books of
account with respect to its business activities, in which proper entries are made in accordance
with GAAP in all material respects reflecting all financial transactions; and furnish to Agent and
Lenders:
(a) as soon as available, and in any event within 90 days after the close of each Fiscal
Year, balance sheets as of the end of such Fiscal Year and the related statements of income, cash
flow and shareholders equity for such Fiscal Year, on a consolidated basis for Borrowers and
Subsidiaries, which consolidated statements shall be audited and certified (without qualification)
by any Big Four firm of independent certified public accountants of recognized standing selected by
Borrowers or such other firm reasonably acceptable to Agent, and shall set forth in comparative
form corresponding figures for the preceding Fiscal Year and other information acceptable to Agent;
(b) (i) prior to any Financial Reporting Trigger Date, as soon as available, and in any
event within 45 days after the end of each Fiscal Quarter (but within 60 days after the last Fiscal
Quarter in a Fiscal Year), unaudited balance sheets as of the end of such Fiscal Quarter and the
related statements of income and cash flow for such Fiscal Quarter and for the portion of the
Fiscal Year then elapsed, on consolidated basis for Borrowers and Subsidiaries, setting forth in
comparative form corresponding figures for the preceding Fiscal Year and certified by a Senior
Officer of the Company as prepared in accordance with GAAP and fairly presenting in all material
respects the financial position and results of operations for such Fiscal Quarter and period,
subject to normal year-end adjustments and the absence of footnotes; and (ii) on or after any
Financial Reporting Trigger Date, as soon as available, and in any event within 30 days after the
end of each Fiscal Month (but within 45 days after the last Fiscal Month in a Fiscal Quarter and 60
days after the last Fiscal Month in a Fiscal Year), unaudited balance sheets as of the end of such
Fiscal Month and the related statements of income and cash flow for such Fiscal Month and for the
portion of the Fiscal Year then elapsed, on consolidated basis for Borrowers and Subsidiaries,
setting forth in comparative form corresponding figures for the preceding Fiscal Year and certified
by a Senior Officer of the Company as prepared in accordance with GAAP and fairly presenting in all
material respects the financial position and results of operations for such Fiscal Month and
period, subject to normal year-end adjustments and the absence of footnotes
(c) concurrently with delivery of financial statements under clauses (a) and (b) above, or
more frequently if requested by Agent while an Event of Default exists, (i) a Compliance
Certificate executed by a Senior Officer of the Company and (ii) a calculation of the Indenture
Formula Amount.
(d) concurrently with delivery of financial statements under clause (a) above, copies of
all management letters and other material reports submitted to Borrowers by their accountants in
connection with such financial statements;
(e) concurrently with delivery of financial statements under clause (b) above, at the end
of any Fiscal Quarter, a written report satisfactory in form and scope to Agent, as to all Hedging
Agreements entered into by any Borrower or Guarantor, including, without limitation, detailed
calculations with respect to the conversion values of all currency exchange Hedging Agreements and
such other items as Agent, in its sole discretion, may from time to time request;
(f) not later than 30 days after the end of each Fiscal Year, projections of Borrowers
consolidated balance sheets, results of operations, cash flow, Availability for the next Fiscal
Year, month by month and for the following Fiscal Years (through 2014), year by year;
(g) promptly following Agents request, a summary listing of each Borrowers trade
payables, and a detailed trade payable aging, all in form satisfactory to Agent;
(h) promptly after the sending or filing thereof, copies of any proxy statements,
financial statements or reports that any Borrower has made generally available to its shareholders;
copies of any regular, periodic and special reports or registration statements or prospectuses that
any Borrower files with the Securities and Exchange Commission or any other Governmental Authority,
or any securities exchange; and copies of any press releases or other statements made available by
a Borrower to the public concerning material changes to or developments in the business of such
Borrower;
(i) promptly after the sending or filing thereof, copies of any annual report to be filed
in connection with any Pension Plan, and promptly following Agents request, after the sending or
filing thereof, copies of any annual report to be filed in connection with each other Plan or
Foreign Plan; and
(j) such other reports and information (financial or otherwise, including, without
limitation, consolidating balance sheets, related statements of income, cash flow and shareholders
equity, but excluding any information subject to the attorney-client privilege or other
confidentiality arrangements with third parties) promptly following Agents request therefor from
time to time in connection with any Collateral or any Borrowers, Subsidiarys or other Obligors
financial condition or business.
Promptly following retention of accountants for their annual audit, Borrowers shall send a letter
to the accountants, with a copy to Agent and Lenders, notifying the accountants that one of the
purposes for retaining their services and obtaining audited financial statements is for use by
Agent and Lenders. Agent is authorized to send such notice if Borrowers fail to do so for any
reason.
Subject to the next succeeding sentence, information delivered pursuant to this
Section 10.1.2
to
Agent may be made available by Agent to Lenders by posting such information on the Intralinks
website on the Internet at http://www.intralinks.com. Information delivered pursuant to this
Section 10.1.2
may also be delivered by electronic communication pursuant to procedures approved by
Agent pursuant to
Section 15.3
hereto. Information required to be delivered pursuant to this
Section 10.1.2
(to the extent not made available as set forth above) shall be deemed to have been
delivered to Agent on the date on which such information has been posted on (i) Companys website
on the Internet at http://www.cvgrp.com or (ii) are made available via EDGAR, or any successor
system of the SEC, on the Companys Annual Report on Form 10-K, Quarterly Report on Form 10-Q, or
8-K, as applicable. Information required to be delivered pursuant to this
Section 10.1.2
shall be
in a format which is suitable for transmission.
Unless (i) expressly marked by Borrowers as PUBLIC or (ii) copies of the Companys public filings
with the SEC, any notice or other communication delivered pursuant to this
Section 10.1.2
, or
otherwise pursuant to this Agreement, shall be deemed to contain material non-public information.
10.1.3.
Notices
. Notify Agent (for further distribution to Lenders) in writing,
promptly after a Borrowers obtaining knowledge thereof, of any of the following that affects an
Obligor: (a) the threat or commencement of any proceeding or investigation, whether or not
covered by insurance, if an adverse determination could have a Material Adverse Effect; (b)
any pending or threatened labor dispute, strike or walkout, or the expiration of any material labor
contract; (c) any default under or termination of a Material Contract, the Senior Notes, any
Subordinated Debt, or any contract that relates to Debt in any aggregate amount of $5,000,000 or
more; (d) the existence of any Default or Event of Default; (e) any judgment in an amount exceeding
$1,000,000; (f) the assertion of any Intellectual Property Claim, if an adverse resolution could
have a Material Adverse Effect; (g) any violation or asserted violation of any Applicable Law
(including ERISA, OSHA, FLSA, or any Environmental Laws), if an adverse resolution could reasonably
be expected to have a Material Adverse Effect; (h) any Environmental Release by an Obligor or on
any Property owned, leased or occupied by an Obligor that could reasonably be expected to have a
Material Adverse Effect; or receipt of any Environmental Notice that could reasonably be expected
to have a Material Adverse Effect or materially impact the value of any Property of such Borrower;
(i) the occurrence of any ERISA Event that could reasonably be expected to have a Material Adverse
Effect; or (j) the discharge of or any withdrawal or resignation by Borrowers independent
accountants.
10.1.4.
Landlord and Storage Agreements
. Promptly following request, provide
Agent with copies of all existing agreements, and promptly after execution thereof provide Agent
with copies of all future agreements, between an Obligor and any landlord, warehouseman, processor,
shipper, bailee or other Person that owns any premises at which any material Collateral may be kept
or that otherwise may possess or handle any material Collateral.
10.1.5.
Compliance with Laws
. Comply with all Applicable Laws, including ERISA,
Environmental Laws, FLSA, OSHA, Anti-Terrorism Laws, and laws regarding collection and payment of
Taxes, and maintain all Governmental Approvals necessary to the ownership of its Properties or
conduct of its business, unless failure to comply (other than failure to comply with Anti-Terrorism
Laws) or maintain could not reasonably be expected to have a Material Adverse Effect. Without
limiting the generality of the foregoing, if any Environmental Release occurs at or on any
Properties of any Borrower or Subsidiary, it shall act promptly and diligently to investigate and
report to Agent and all appropriate Governmental Authorities the extent of, and to make appropriate
remedial action to eliminate, such Environmental Release, whether or not directed to do so by any
Governmental Authority, if, as required by Environmental Law or necessary to preserve the value as
a whole of such Properties.
10.1.6.
Taxes
. Pay and discharge all Taxes on or prior to the date which they
become delinquent or penalties attach, unless such Taxes are being Properly Contested or permitted
by
Section 10.2.
1(s)
or 10.2.1(r)
.
10.1.7.
Insurance
. In addition to the insurance required hereunder with respect
to Collateral, maintain insurance with insurers (with a Best Rating of at least A7, unless
otherwise approved by Agent), with respect to the Properties and business of Borrowers and
Subsidiaries of such type (including product liability, workers compensation, larceny,
embezzlement, or other criminal misappropriation insurance), in such amounts, and with such
coverages and deductibles as required pursuant to
Section 8.6.2
.
10.1.8.
Licenses
. Keep each License materially affecting any Collateral
(including the manufacture, distribution or disposition of Inventory) in full force and effect
except (i) to the extent not otherwise required herein, (ii) for any Permitted Asset Disposition or
(iii) to the extent any failure to so maintain such License would not reasonably be expected to
result in a Material Adverse Effect (it being understood that a failure to maintain or replace
any license necessary in connection with the manufacture, distribution or disposition of Inventory
results in a Material Adverse Effect unless such license is being abandoned in the reasonable
business judgment of Borrowers); pay all undisputed Royalties when due; and notify Agent of any
known default or known breach asserted by any Person to have occurred under any material License.
10.1.9.
Future Subsidiaries
. Notify Agent within five Business Days (or such
later date as agreed to by Agent) of any Person becoming a Subsidiary and, if such Person is not a
Foreign Subsidiary, cause such Subsidiary (other than an Immaterial Subsidiary or an Excluded
Receivables Subsidiary) to guaranty the Obligations and to execute and deliver such documents,
instruments and agreements and to take such other actions as Agent shall require to evidence and
perfect a Lien in favor of Agent (for the benefit of Secured Parties) on all assets of such Person,
including delivery of such legal opinions, in form and substance reasonably satisfactory to Agent,
as it shall deem appropriate. If at any time any Subsidiary that is an Immaterial Subsidiary as of
the Restatement Effective Date, shall cease to be an Immaterial Subsidiary, such Subsidiary shall
be required, no later than the last Business Day of the Fiscal Month during which such Subsidiary
is no longer an Immaterial Subsidiary, to guaranty the Obligations in accordance with this
Section
10.1.9
.
10.1.10.
Post Closing Delivery of Amendment to Pledge Agreement and Certificated
Equity Interests
. (a) Within 10 Business Days of the Restatement Effective Date, Obligors
shall have delivered to Agent a supplement to the Pledge Agreement to update the schedules and
annexes contained therein, in form and substance reasonably acceptable to Agent; and (b) within 60
days of the Restatement Effective Date, each Obligor shall have (i) delivered to Agent all original
certificated Equity Interests (along with instruments of transfer) for any Pledged Equity Interests
(as defined in the Pledge Agreement and subject to the terms and conditions therein) pledged to
Agent after giving effect to the supplement contemplated in clause (a) above and not previously
delivered, and (ii) at the request of Agent, (A) caused any Pledged Equity Interests which are
uncertificated as of the Restatement Effective Date to become certificated and subsequently
delivered to Agent pursuant to the Pledge Agreement;
provided
that no such action will be
required with respect to any Pledged Equity Interest that is not required to be certificated under
Applicable Law governing the issuer of such Pledged Equity Interest or (B) taken such other actions
to perfect the security interests of Agent in such uncertificated Pledged Equity Interests (as
defined in the Pledge Agreement) as Agent deems necessary.
10.2.
Negative Covenants
. As long as any Revolver Commitments or Obligations are
outstanding, each Borrower shall not, and shall cause each Subsidiary not to:
10.2.1.
Permitted Debt
. Create, incur, guarantee or suffer to exist any Debt,
except:
(a) the Obligations;
(b) Subordinated Debt;
(c) Permitted Purchase Money Debt;
(d) Borrowed Money and other Debt (other than the Obligations and Subordinated Debt), but
only to the extent identified on
Schedule 10.2.1
, and outstanding on the Original Closing Date;
(e) Bank Product Debt,
(f) Permitted Contingent Obligations;
(g) Refinancing Debt as long as each Refinancing Condition is satisfied;
(h) Debt under any Hedging Agreement to the extent such Hedging Agreement is permitted by
this Agreement;
(i) Intercompany Debt incurred in the Ordinary Course of Business to the extent permitted
by
Section 10.2.5
, and (ii) Intercompany Debt owed to an Obligor by an Excluded Receivables
Subsidiary in connection with a sale of receivables to such Excluded Receivables Subsidiary
pursuant to a Qualified Receivables Transaction;
(j) Debt in respect of workers compensation claims, self-insurance obligations,
performance bonds, export or import indemnitees or similar instruments, customs bonds, governmental
contracts, leases, surety appeal or similar bonds and completion guarantees provided by an Obligor
or Subsidiary in the Ordinary Course of its Business;
(k) Debt in respect of taxes, assessments or governmental charges to the extent that
payment thereof shall not at the time be required to be made in accordance with
Section 10.1.6
;
(l) Debt consisting of incentive, non-compete, consulting, deferred compensation, or other
similar arrangements entered in the Ordinary Course of Business;
(m) Debt in respect of netting services and overdraft protections or other cash management
services in connection with deposit accounts and securities accounts, in each case in the Ordinary
Course of Business;
(n) Debt incurred by Foreign Subsidiaries that are not Obligors for working capital
purposes in an amount not to exceed $25,000,000 at any time outstanding, so long as no Default or
Event of Default exists or would result therefrom;
(o) Debt in connection with any Permitted Foreign Investment;
(p) Contingent Obligations in respect of Debt of any Obligor otherwise permitted under
Section 10.2.1
incurred in the Ordinary Course of Business, subject, if applicable, to
Section
10.2.5
;
(q) Contingent Obligations of the Company and its Subsidiaries incurred in connection with
the guaranty of Debt extended to a Foreign Subsidiary by Bank of America, N.A. or its Affiliates in
an amount not to exceed $5,000,000 in the aggregate at any time unless otherwise approved by Agent
in writing;
(r) Contingent Obligations of an Obligor in respect of leases for an Obligor in an amount
not to exceed $10,000,000 in the aggregate at any time;
(s) Debt incurred in connection with the financing of insurance premiums in the Ordinary
Course of Business;
(t) without duplication of any other Debt, non-cash accruals of interest, accretion or
amortization of original issue discount and payment-in-kind interest with respect to Debt permitted
hereunder;
(u) Debt that is not included in any of the preceding clauses of this
Section 10.2.1
, is
not secured by a Lien and does not exceed $5,000,000 in the aggregate at any time;
(v) Debt incurred by any Excluded Receivables Subsidiary in connection with any Qualified
Receivables Transaction provided that the Debt is non-recourse to any Person other than the
Excluded Receivables Subsidiary;
(w) Debt consisting of the Third Lien Notes and Existing Senior Notes to the extent not
tendered in the Tender Offer, subject to the provisions of
Section 10.2.20
; and
(x) Debt incurred pursuant to the Second Lien Note Documents in an aggregate principal
amount not to exceed $250,000,000 (plus accrued interest and payment in kind interest), in each
case, including any Refinancing Debt thereof.
10.2.2.
Permitted Liens
. Create or suffer to exist any Lien upon any of its
Property, except the following (collectively, Permitted Liens):
(a) Liens in favor of Agent;
(b) Purchase Money Liens securing Permitted Purchase Money Debt;
(c) Liens for Taxes not yet due or being Properly Contested;
(d) contractual Liens and Liens imposed by law (other than Liens for Taxes or imposed
under ERISA) such as carriers, warehousemens, materialmens, landlords, workmens, suppliers,
repairmens and mechanics Liens and other similar Liens arising in the Ordinary Course of
Business, but only if (i) payment of the obligations secured thereby is not yet due and payable or
is being Properly Contested, and (ii) such Liens do not materially impair the value or use of the
Property or materially impair operation of the business of any Obligor;
(e) Liens incurred or deposits made in the Ordinary Course of Business to secure the
performance of tenders, bids, leases, contracts (except those relating to Borrowed Money), surety,
stay customs and appeal bonds, statutory obligations and other similar obligations, or arising as a
result of progress payments under government contracts;
(f) Liens arising in the Ordinary Course of Business that are subject to Lien Waivers;
(g) Liens arising by virtue of a judgment or judicial order against any Obligor to the
extent such judgment does not constitute an Event of Default;
(h) easements, rights-of-way, survey exceptions, title exceptions, restrictions, covenants
or other agreements of record, minor defects or other irregularities in title and other similar
charges or encumbrances on Real Estate, that do not secure any monetary obligation and do not
materially interfere with the Ordinary Course of Business;
(i) municipal and zoning ordinances, building and other land use laws imposed by any
governmental authority which are not violated in any material respect by existing improvements or
the present use of Property, or in the case of any Real Estate subject to a mortgage, encumbrances
disclosed in the title insurance policy issued to, and reasonably approved by, Agent;
(j) leases, subleases, licenses, sublicenses granted to others in the Ordinary Course of
Business;
(k) any interest or title of a lessor or sublessor, licensor or sublicensor under any
lease or license not prohibited by this Agreement or the other Security Documents;
(l) normal and customary rights of setoff upon deposits or securities in favor of
depository institutions or brokerages, and Liens of a collecting bank on payment items in the
course of collection, bankers Liens securing amounts owing to such bank with respect to
overdrafts, cash management and operating account arrangements, including those involving pooled
accounts and netting arrangements; provided that in no case shall such Liens secure (either
directly or indirectly) the repayment of any Debt (other than on account of such overdrafts,
netting or cash management);
(m) Liens on insurance proceeds and deposits arising in the ordinary course of business in
connection with the financing of insurance premiums;
(n) Liens arising out of conditional sale, title retention, consignment or similar
arrangements for the sale of goods entered into by such Person in the Ordinary Course of Business
in accordance with the past practices of such Person;
(o) Liens on Property of a Person existing at the time such Person is acquired or merged
with or into or consolidated with any Obligor or a Subsidiary thereof (and not created in
anticipation or contemplation thereof);
(p) security given to a public or private utility or any Governmental Authority as
required in the Ordinary Course of Business;
(q) the filing of financing statements solely as a precautionary measure in connection
with operating leases or consignments;
(r) other Liens with respect to obligations that do not in the aggregate exceed $1,000,000
at any time outstanding;
(s) the replacement, extension or renewal of any Permitted Lien;
provided
, that
such Lien shall at no time be extended to cover any assets or property other than such assets or
property subject thereto on the Original Closing Date or the date such Lien was incurred, as
applicable;
(t) Liens granted in connection with Debt permitted by
Section 10.2.
1(n)
provided that
such Liens attach only to Property of Foreign Subsidiaries and not to any Collateral;
(u) existing Liens shown on
Schedule 10.2.2
;
(v) Liens granted to the Second Lien Note Collateral Agent pursuant to the Second Lien
Note Documents and any Refinancing Debt thereof, provided that the Agent, for the benefit of the
Lenders, has a first priority Lien (subject to Permitted Liens) on such assets and the Liens in
favor of the Second Lien Note Collateral Agent are subordinated pursuant to the Intercreditor
Agreement; and
(w) Liens with respect to those Accounts and related rights and assets subject to purchase
pursuant to any Qualified Receivables Transaction.
10.2.3.
[RESERVED]
.
10.2.4.
Distributions; Upstream Payments
. Make or declare any Distributions other
than, (a) Upstream Payments and (b) dispositions by Obligors and Subsidiaries permitted hereunder.
10.2.5.
Restricted Investments
. Make any Restricted Investment, other than
Permitted Foreign Investments, so long as no Default or Event of Default exists or would result
therefrom.
10.2.6.
Acquisitions
. Make any Restricted Investment, other than, so long as no
Default or Event of Default exists or would result therefrom, Permitted Acquisitions or Permitted
Foreign Investments.
10.2.7.
Disposition of Assets
. Make any Asset Disposition, except a Permitted
Asset Dispositions so long as (other than with respect to (i) sales of Inventory in the Ordinary
Course of Business and (ii) intercompany asset transfers to the extent permitted hereunder) no
Event of Default exists.
10.2.8.
[RESERVED]
.
10.2.9.
Restrictions on Payment of Certain Debt
. Make any payments (whether
voluntary or mandatory, or a prepayment, redemption, retirement, defeasance or acquisition) with
respect to (a) any Subordinated Debt, except regularly scheduled payments of principal, interest
and fees, but only to the extent permitted under any subordination agreement relating to such Debt
(and a Senior Officer of the Company shall certify to Agent, not less than five Business Days prior
to the date of payment, that all conditions under such agreement have been satisfied or waived);
(b) the Second Lien Notes, other than (i) payment of regularly scheduled interest and reimbursement
for fees and expenses of the trustee as provided therein, and (ii) in connection with replacing the
Second Lien Notes with Refinancing Debt, provided that the Refinancing Conditions are met.
Notwithstanding anything to the contrary contained herein or in any other Loan Document, in no
event shall there be any restriction on the ability of Subsidiaries or Obligors to repay any
intercompany Debt owed to the Company.
10.2.10.
Fundamental Changes
. (a) Merge, combine or consolidate with any Person,
or liquidate, wind up its affairs or dissolve itself (unless, in the case of any liquidation,
winding up or dissolution, the assets of such entity are transferred to its corporate parent), in
each case whether in a single transaction or in a series of related transactions, except for the UK
Restructuring and for mergers, consolidations, amalgamations or combinations of (i) a wholly-owned
Domestic Subsidiary (or National Seating Company) with another wholly-owned Domestic Subsidiary
(
provided
that if any such Subsidiary is an Obligor, the Obligor will be the surviving
company) or into a Borrower, (ii) a Borrower with and into a Borrower, so long as, in the case of
the Company, the Company is the surviving entity, or (iii) a Foreign Subsidiary with and into
another Foreign Subsidiary,
provided
that if any such Subsidiary is an Obligor, the Obligor
will be the surviving company; or (b) unless 30 days advance written notice is given to Agent, (i)
change its name or conduct business under any fictitious name, (ii) change its tax, charter or
other organizational identification number, or (iii) change its form or state of jurisdiction of
organization.
10.2.11.
Subsidiaries
. Form or acquire any Subsidiary after the Original Closing
Date, except in accordance with
Sections 10.1.9
,
10.2.5
or
10.2.6
and except for any Excluded
Receivables Subsidiary, or permit any existing Subsidiary to issue any additional Equity Interests
except directors qualifying shares.
10.2.12.
Organic Documents
. Amend, modify or otherwise change any of its Organic
Documents as in effect on the Original Closing Date to the extent such amendment, modification or
change could reasonably be expected to result in a Material Adverse Effect.
10.2.13.
Tax Consolidation
. File or consent to the filing of any consolidated
income tax return with any Person other than Borrowers and Subsidiaries.
10.2.14.
Accounting Changes
. Make any material change in accounting treatment or
reporting practices, except as permitted by GAAP and in accordance with
Section 1.2
; or change its
Fiscal Year without consent of Agent.
10.2.15.
Restrictive Agreements
. Become a party to any Restrictive Agreement,
except (a) Restrictive Agreements in effect on the Original Closing Date; (b) Restrictive
Agreements relating to Debt permitted hereunder, as long as the restrictions apply only to
collateral for such Debt; (c) Restrictive Agreements constituting customary restrictions on
assignment, encumbrances or subletting in leases and other contracts; (d) Restrictive Agreements
constituting customary restrictions and conditions contained in any agreement relating to the sale
of any Property permitted under
Section 10.2.7
pending the consummation of such sale; (e)
Restrictive Agreements in effect at the time such Subsidiary becomes a Subsidiary of a Borrower, so
long as such agreement was not entered into in contemplation of such Person becoming a Subsidiary
of such Borrower; (f) the documents described on Schedule 10.2.15, (g) the Second Lien Note
Documents as in effect on the date hereof (or otherwise executed in connection with the closing of
the Indenture) and as amended, restated, supplemented or otherwise modified as permitted under the
Intercreditor Agreement, including any Refinancing Debt thereof, (h) any agreements evidencing a
Qualified Receivables Transaction, or (i) agreements related to working capital Debt permitted
under
Section 10.2.1(n)
.
10.2.16.
Hedging Agreements
. Enter into any Hedging Agreement, except to hedge
risks arising in the Ordinary Course of Business and not for speculative purposes.
10.2.17.
Conduct of Business
. Engage in any business, other than its business as
conducted on the Original Closing Date and any activities ancillary, incidental, complementary or
reasonably related thereto.
10.2.18.
Affiliate Transactions
. Enter into or be party to any transaction with
an Affiliate, except (a) transactions contemplated or otherwise permitted by the Loan Documents;
(b) payment of reasonable compensation to officers and employees for services actually rendered,
and loans and advances permitted by
Section 10.2.5
; (c) payment of customary directors fees and
indemnities; (d) transactions solely among (i) Obligors or (ii) non-Obligors; (e) transactions with
Affiliates that were consummated prior to the Original Closing Date, as shown on
Schedule 10.2.18
;
and (f) transactions with Affiliates in the Ordinary Course of Business, upon fair and reasonable
terms fully disclosed to Agent and no less favorable than would be obtained in a comparable
arms-length transaction with a non-Affiliate.
10.2.19.
Plans
. Become party to any (i) Multiemployer Plan or (ii) Foreign Plan
(which would reasonably be expected to result in a material liability to Borrowers), in each case
other than any in existence on the Original Closing Date.
10.2.20.
Third Lien Notes and Existing Senior Notes
. The Company shall have paid
all outstanding obligations and liabilities owing in respect of the Third Lien Notes and Existing
Senior Notes in full on or before June 25, 2011.
10.2.21.
Amendments to Subordinated Debt or Indenture
. Amend, supplement or
otherwise modify (i) any document, instrument or agreement relating to any Subordinated Debt, if
such modification (a) increases the principal balance of such Debt (other than as a result of
capitalization of fees and interest), or increases any required payment of principal or interest
(other than as a result of capitalization of fees and interest), (b) accelerates the date on which
any installment of principal or any interest is due, or adds any additional redemption, put or
prepayment provisions, (c) shortens the final maturity date or otherwise accelerates amortization,
(d) increases the interest rate, (e) modifies any covenant in a manner or adds any representation,
covenant or default that is more onerous or restrictive in any material respect (when taken as a
whole) for any Obligor, or that is otherwise materially adverse to any Obligor or Lenders, or (f)
results in the Obligations not being fully benefited by the subordination provisions thereof; or
(ii) the Indenture or any other document to the extent such amendment, supplement or modification
results in the Obligations not constituting indebtedness permitted under Section 4.03(b)(1) of the
Indenture if applicable.
10.3.
Financial Covenants
. As long as any Revolver Commitments or Obligations are
outstanding, Borrowers shall:
10.3.1.
Fixed Charge Coverage Ratio
. During any Financial Covenant Trigger
Period, maintain a Fixed Charge Coverage Ratio of at least 1.10 to 1.0 as of the last day of any
Fiscal Quarter and determined for the period consisting of the most recent four Fiscal Quarters
ended prior to the Financial Covenant Trigger Date.
SECTION 11. EVENTS OF DEFAULT; REMEDIES ON DEFAULT
11.1.
Events of Default
. Each of the following shall be an Event of Default
hereunder, if the same shall occur for any reason whatsoever, whether voluntary or involuntary, by
operation of law or otherwise:
(a) a Borrower fails to pay any Obligations when due (whether at stated maturity, on
demand, upon acceleration or otherwise);
(b) any representation, warranty or other written statement of an Obligor made in
connection with any Loan Documents or transactions contemplated thereby is incorrect or misleading
in any material respect when given;
(c) a Borrower breaches or fail to perform any covenant contained in
Section 7.2, 7.3,
7.6, 8.1, 8.2.4, 8.6.2, 10.1.1, 10.1.2, 10.2
or
10.3
;
(d) an Obligor breaches or fails to perform any covenant contained in any Loan Documents
(other than as specified in clauses (a), (b) and (c) above), and such breach or failure is not
cured (i) within five days for any such breach or failure to perform any covenant contained in
Section 7.4
of this Agreement, and (ii) within 30 days for any such breach or failure to perform
any other covenant contained in any Loan Document, in each case after a Senior Officer of such
Obligor has knowledge thereof or receives notice thereof from Agent, whichever is sooner;
(e) a Guarantor repudiates, revokes or attempts to revoke its Guaranty; an Obligor denies
or contests the validity or enforceability of any Loan Documents or Obligations, or the perfection
or priority of any Lien granted to Agent except for immaterial Collateral with a value not in
excess of $1,000,000 at any time; or any Loan Document ceases to be in full force or effect for any
reason (other than a waiver or release by Agent and Lenders or action or inaction by the Collateral
Agent or as otherwise permitted hereunder);
(f) any breach or default of an Obligor occurs under any document, instrument or agreement
to which it is a party or by which it or any of its Properties is bound, relating to any Debt
(other than the Obligations) in excess of $5,000,000, if the maturity of or any payment with
respect to such Debt may be accelerated or demanded due to such breach;
(g) other than any judgment disclosed on
Schedule 11.1
(to the extent the aggregate amount
of any such judgment plus accrued interest thereon does not exceed $2,500,000), any judgment or
order for the payment of money is entered against an Obligor in an amount that exceeds,
individually or cumulatively with all unsatisfied judgments or orders against all Obligors,
$2,000,000 (net of any insurance coverage therefor not denied in writing by the insurer);
(h) an Obligor is enjoined, restrained or in any way prevented by any Governmental
Authority from conducting any material part of its business; there is a cessation of any material
part of an Obligors business for a material period of time (other than as permitted hereunder);
any material Collateral or Property of an Obligor is taken or impaired through condemnation; an
Obligor agrees to or commences any liquidation, dissolution or winding up of its affairs (except as
otherwise permitted hereunder); or an Obligor is not Solvent;
(i) an Insolvency Proceeding is commenced by an Obligor; an Obligor makes an offer of
settlement, extension or composition to its unsecured creditors generally; or an Insolvency
Proceeding is commenced against an Obligor and: the Obligor consents to institution of the
proceeding, the petition commencing the proceeding is not timely contested by the Obligor, the
petition is not dismissed within 30 days after filing, or an order for relief is entered in the
proceeding;
(j) an ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan that has
resulted or could reasonably be expected to result in a material liability of an Obligor to a
Pension Plan, Multiemployer Plan or PBGC, or that constitutes grounds for appointment of a trustee
for or termination by the PBGC of any Pension Plan or Multiemployer Plan; an Obligor or ERISA
Affiliate fails to pay when due any installment payment with respect to its withdrawal liability
under Section 4201 of ERISA under a Multiemployer Plan; or any event similar to the foregoing
occurs or exists with respect to a Foreign Plan; or
(k) a Change of Control occurs.
11.2.
Remedies upon Default
. If an Event of Default described in
Section 11.1(i)
or
(j)
occurs with respect to any Borrower, then to the extent permitted by Applicable Law, all
Obligations shall become automatically due and payable and all Revolver Commitments shall
terminate, without any action by Agent or notice of any kind. In addition, or if any other Event
of Default exists, Agent may in its discretion (and shall upon written direction of Required
Lenders) do any one or more of the following from time to time:
(a) declare any Obligations immediately due and payable, whereupon they shall be due and
payable without diligence, presentment, demand, protest or notice of any kind, all of which are
hereby waived by Borrowers to the fullest extent permitted by law;
(b) terminate, reduce or condition any Revolver Commitment, or make any adjustment to the
Borrowing Base;
(c) require Obligors to Cash Collateralize LC Obligations, Bank Product Debt and other
Obligations that are contingent or not yet due and payable, and, if Obligors fail promptly to
deposit such Cash Collateral, Agent may (and shall upon the direction of Required Lenders) advance
the required Cash Collateral as Revolver Loans (whether or not an Overadvance exists or is created
thereby, or the conditions in
Section 6
are satisfied);
provided
, that if Borrowers
are required to provide an amount of cash collateral pursuant to this
Section 11.2
, such amount (to
the extent not applied in accordance with
Section 5.6
) shall be returned to Borrowers within three
Business Days after all Events of Default have been cured or waived; and
(d) exercise any other rights or remedies afforded under any agreement, by law, at equity
or otherwise, including the rights and remedies of a secured party under the UCC. Such rights and
remedies include the rights to (i) take possession of any Collateral; (ii) require Borrowers to
assemble Collateral, at Borrowers expense, and make it available to Agent at a place designated by
Agent; (iii) subject to the terms of any Lease Agreement or Lease Waiver, as applicable, enter any
premises where Collateral is located and store Collateral on such premises until sold (and if the
premises are owned or leased by a Borrower, Borrowers agree not to charge for such storage); and
(iv) sell or otherwise dispose of any Collateral in its then condition, or after any further
manufacturing or processing thereof, at public or private sale, with such notice as may be required
by Applicable Law, in lots or in bulk, at such locations, all as Agent, in its discretion, deems
advisable. Each Borrower agrees that 10 days notice of any proposed sale or other disposition of
Collateral by Agent shall be reasonable. Agent shall have the right to conduct such sales on any
Obligors premises, without charge, and such sales may be adjourned from time to time in accordance
with Applicable Law. Agent shall have the right to sell, lease or otherwise dispose of any
Collateral for cash, credit or any combination thereof, and Agent may
purchase any Collateral at public or, if permitted by law, private sale and, in lieu of actual
payment of the purchase price, may set off the amount of such price against the Obligations.
11.3.
License
. For the purpose of enabling Agent, upon the occurrence and during
the continuance of an Event of Default, to exercise the rights and remedies under
Section 11.2
at
such time as Agent shall be lawfully entitled to exercise such rights and remedies, and for no
other purpose, Borrower hereby grants to Agent a non-exclusive license (subject to the rights of
third parties and to the extent not prohibited in the case of licensed in Intellectual Property and
(i) in the case of trademarks, to sufficient rights to quality control and inspection in favor of
Borrower to avoid the risk of invalidation of such trademarks, and (ii) in the case of trade
secrets, to an obligation of Agent to take steps reasonable under the circumstances to keep trade
secrets confidential to avoid the risk of invalidation of such trade secrets) to use, license or
sub-license (without payment of royalty or other compensation to any Person) any or all
Intellectual Property of Borrowers, computer hardware and software, trade secrets, brochures,
customer lists, promotional and advertising materials, labels, packaging materials and other
Property, in advertising for sale, marketing, selling, collecting, completing manufacture of, or
otherwise exercising any rights or remedies with respect to, any Collateral. Each Borrowers
rights and interests under Intellectual Property shall inure to Agents benefit.
11.4.
Setoff
. At any time during an Event of Default, Agent, Issuing Bank,
Lenders, and any of their Affiliates are authorized, to the fullest extent permitted by Applicable
Law, to set off and apply any and all deposits (general or special, time or demand, provisional or
final, in whatever currency)(other than tax, payroll, trust or employee benefit accounts) at any
time held and other obligations (in whatever currency) at any time owing by Agent, Issuing Bank,
such Lender or such Affiliate to or for the credit or the account of an Obligor against any
Obligations, irrespective of whether or not Agent, Issuing Bank, such Lender or such Affiliate
shall have made any demand under this Agreement or any other Loan Document and although such
Obligations may be contingent or unmatured or are owed to a branch or office of Agent, Issuing
Bank, such Lender or such Affiliate different from the branch or office holding such deposit or
obligated on such indebtedness. The rights of Agent, Issuing Bank, each Lender and each such
Affiliate under this
Section 11.4
are in addition to other rights and remedies (including other
rights of setoff) that such Person may have.
11.5.
Remedies Cumulative; No Waiver
.
11.5.1.
Cumulative Rights
. All agreements, warranties, guaranties, indemnities
and other undertakings of Borrowers under the Loan Documents are cumulative and not in derogation
of each other. The rights and remedies of Agent and Lenders are cumulative, may be exercised at
any time and from time to time, concurrently or in any order, and are not exclusive of any other
rights or remedies available by agreement, by law, at equity or otherwise. All such rights and
remedies shall continue in full force and effect until Full Payment of all Obligations.
11.5.2.
Waivers
. No waiver or course of dealing shall be established by (a) the
failure or delay of Agent or any Lender to require strict performance by Borrowers with any terms
of the Loan Documents, or to exercise any rights or remedies with respect to Collateral or
otherwise; (b) the making of any Loan or issuance of any Letter of Credit during a Default, Event
of Default or other failure by the Obligors to satisfy any conditions precedent; or (c) acceptance
by Agent or any Lender of any payment or performance by an Obligor under any Loan Documents in a
manner other than that specified therein. It is expressly acknowledged by
Borrowers that any failure to satisfy a financial covenant on a measurement date shall not be
cured or remedied by satisfaction of such covenant on a subsequent date.
SECTION 12. AGENT
12.1.
Appointment, Authority and Duties of Agent
.
12.1.1.
Appointment and Authority
. Each Lender appoints and designates Bank of
America as Agent hereunder. Agent may, and each Lender authorizes Agent to, enter into all Loan
Documents to which Agent is intended to be a party and accept all Security Documents, for Agents
benefit and the Pro Rata benefit of Lenders. Each Lender agrees that any action taken by Agent or
Required Lenders in accordance with the provisions of the Loan Documents, and the exercise by Agent
or Required Lenders of any rights or remedies set forth therein, together with all other powers
reasonably incidental thereto, shall be authorized by and binding upon all Lenders. Without
limiting the generality of the foregoing, Agent shall have the sole and exclusive authority to (a)
act as the disbursing and collecting agent for Lenders with respect to all payments and collections
arising in connection with the Loan Documents; (b) execute and deliver as Agent each Loan Document,
including any intercreditor or subordination agreement, and accept delivery of each Loan Document
from any Obligor or other Person; (c) act as collateral agent for Secured Parties for purposes of
perfecting and administering Liens under the Loan Documents, and for all other purposes stated
therein; (d) manage, supervise or otherwise deal with Collateral; and (e) take any Enforcement
Action or otherwise exercise any rights or remedies with respect to any Collateral under the Loan
Documents, Applicable Law or otherwise. The duties of Agent shall be ministerial and
administrative in nature, and Agent shall not have a fiduciary relationship with any Lender,
Secured Party, Participant or other Person, by reason of any Loan Document or any transaction
relating thereto. Agent alone shall be authorized to determine whether any Accounts or Inventory
constitute Eligible Accounts or Eligible Inventory, or whether to impose or release any reserve,
which determinations and judgments, if exercised in good faith, shall exonerate Agent from
liability to any Lender or other Person for any error in judgment.
12.1.2.
Duties
. Agent shall not have any duties except those expressly set forth
in the Loan Documents. The conferral upon Agent of any right shall not imply a duty on Agents
part to exercise such right, unless instructed to do so by Required Lenders in accordance with this
Agreement.
12.1.3.
Agent Professionals
. Agent may perform its duties through agents and
employees. Agent may consult with and employ Agent Professionals, and shall be entitled to act
upon, and shall be fully protected in any action taken in good faith reliance upon, any advice
given by an Agent Professional. Agent shall not be responsible for the negligence or misconduct of
any agents, employees or Agent Professionals selected by it with reasonable care.
12.1.4.
Instructions of Required Lenders
. The rights and remedies conferred upon
Agent under the Loan Documents may be exercised without the necessity of joinder of any other
party, unless required by Applicable Law. Agent may request instructions from Required Lenders
with respect to any act (including the failure to act) in connection with any Loan Documents, and
may seek assurances to its satisfaction from Lenders of their indemnification obligations under
Section 12.6
against all Claims that could be incurred by Agent in connection with any act. Agent
shall be entitled to refrain from any act until it has received such
instructions or assurances, and Agent shall not incur liability to any Person by reason of so
refraining. Instructions of Required Lenders shall be binding upon all Lenders, and no Lender
shall have any right of action whatsoever against Agent as a result of Agent acting or refraining
from acting in accordance with the instructions of Required Lenders. Notwithstanding the
foregoing, instructions by and consent of all Lenders shall be required in the circumstances
described in
Section 15.1.1
, and in no event shall Required Lenders, without the prior written
consent of each Lender, direct Agent to accelerate and demand payment of Loans held by one Lender
without accelerating and demanding payment of all other Loans, nor to terminate the Revolver
Commitment of one Lender without terminating the Revolver Commitments of all Lenders. In no event
shall Agent be required to take any action that, in its opinion, is contrary to Applicable Law or
any Loan Documents or could subject any Agent Indemnitee to personal liability.
12.2.
Agreements Regarding Collateral and Field Examination Reports
.
12.2.1.
Lien Releases; Care of Collateral
. Lenders authorize Agent to release any
Lien with respect to any Collateral (a) upon Full Payment of the Obligations; (b) that is the
subject of an Asset Disposition which Borrowers certify in writing to Agent is a Permitted Asset
Disposition or a Lien which Borrowers certify is a Permitted Lien entitled to priority over Agents
Liens (and Agent may rely conclusively on any such certificate without further inquiry); (c) that
does not constitute a material part of the Collateral; (d) as required to effect any sale or other
disposition of Collateral in connection with any exercise of remedies of Agent pursuant to the
Security Documents; or (e) with the written consent of the Required Lenders. Lenders hereby
authorize Agent to execute and deliver any instruments, documents and agreements necessary or
desirable to evidence and confirm the release of any Collateral pursuant to the foregoing
provisions of this paragraph, all without the further consent or joinder of any Lender. Agent
shall have no obligation whatsoever to any Lenders to assure that any Collateral exists or is owned
by a Borrower, or is cared for, protected, insured or encumbered, nor to assure that Agents Liens
have been properly created, perfected or enforced, or are entitled to any particular priority, nor
to exercise any duty of care with respect to any Collateral.
12.2.2.
Possession of Collateral
. Agent and Lenders appoint each Lender as agent
(for the benefit of Secured Parties) for the purpose of perfecting Liens in any Collateral held or
controlled by such Lender, to the extent such Liens are perfected by possession or control. If any
Lender obtains possession or control of any Collateral, it shall notify Agent thereof and, promptly
upon Agents request, deliver such Collateral to Agent or otherwise deal with it in accordance with
Agents instructions.
12.2.3.
Reports
. Agent shall promptly forward to each Lender, when complete,
copies of any field audit, examination or appraisal report prepared by or for Agent with respect to
any Obligor or Collateral (
Report
). Each Lender agrees (a) that neither Bank of America
nor Agent makes any representation or warranty as to the accuracy or completeness of any Report,
and shall not be liable for any information contained in or omitted from any Report; (b) that the
Reports are not intended to be comprehensive audits or examinations, and that Agent or any other
Person performing any audit or examination will inspect only specific information regarding
Obligations or the Collateral and will rely significantly upon Borrowers books and records as well
as upon representations of Borrowers officers and employees; and (c) to keep all Reports
confidential and strictly for such Lenders internal use, and not to distribute any Report (or the
contents thereof) to any Person (except to such Lenders Participants, attorneys and
accountants) or use any Report in any manner other than administration of the Loans and other
Obligations. Each Lender agrees to indemnify and hold harmless Agent and any other Person
preparing a Report from any action such Lender may take as a result of or any conclusion it may
draw from any Report, as well as from any Claims arising as a direct or indirect result of Agent
furnishing a Report to such Lender.
12.3.
Reliance By Agent
. Agent shall be entitled to rely, and shall be fully
protected in relying, upon any certification, notice or other communication (including those by
telephone, telex, telegram, telecopy or e-mail) believed by it to be genuine and correct and to
have been signed, sent or made by the proper Person, and upon the advice and statements of Agent
Professionals.
12.4.
Action Upon Default
. Agent shall not be deemed to have knowledge of any
Default or Event of Default unless it has received written notice from a Lender or Borrower
specifying the occurrence and nature thereof. If any Lender acquires knowledge of a Default or
Event of Default, it shall promptly notify Agent and the other Lenders thereof in writing. Each
Lender agrees that, except as otherwise provided in any Loan Documents or with the written consent
of Agent and Required Lenders, it will not take any Enforcement Action, accelerate Obligations
under any Loan Documents, or exercise any right that it might otherwise have under Applicable Law
to credit bid at foreclosure sales, UCC sales or other similar dispositions of Collateral.
Notwithstanding the foregoing, however, a Lender may take action to preserve or enforce its rights
against an Obligor where a deadline or limitation period is applicable that would, absent such
action, bar enforcement of Obligations held by such Lender, including the filing of proofs of claim
in an Insolvency Proceeding. Each Lender hereby irrevocably authorizes Agent, based upon the
instruction of the Required Lenders, to credit bid and purchase (either directly or through one or
more acquisition vehicles) all or any portion of the Collateral at any sale thereof conducted under
the provisions of the Bankruptcy Code, including pursuant to Sections 9-610 or 9-620 of the
Bankruptcy Code, at any sale thereof conducted under the provisions thereof (including Section 363
of the Bankruptcy Code) or any applicable bankruptcy, insolvency, reorganization or other similar
law (whether domestic or foreign) now or hereafter in effect, or at any sale or foreclosure
conducted by Agent (whether by judicial action or otherwise) in accordance with applicable law.
12.5.
Ratable Sharing
. If any Lender shall obtain any payment or reduction of any
Obligation, whether through set-off or otherwise, in excess of its share of such Obligation,
determined on a Pro Rata basis or in accordance with
Section 5.6.1
, as applicable, such Lender
shall forthwith purchase from Agent, Issuing Bank and the other Lenders such participations in the
affected Obligation as are necessary to cause the purchasing Lender to share the excess payment or
reduction on a Pro Rata basis or in accordance with
Section 5.6.1
, as applicable. If any of such
payment or reduction is thereafter recovered from the purchasing Lender, the purchase shall be
rescinded and the purchase price restored to the extent of such recovery, but without interest. No
Lender shall set off against any Dominion Account without the prior consent of Agent.
12.6.
Indemnification of Agent Indemnitees
.
EACH LENDER SHALL INDEMNIFY AND HOLD
HARMLESS AGENT INDEMNITEES, TO THE EXTENT NOT REIMBURSED BY OBLIGORS (BUT WITHOUT LIMITING THE
INDEMNIFICATION OBLIGATIONS OF OBLIGORS UNDER ANY LOAN DOCUMENTS), ON A PRO RATA BASIS, AGAINST ALL
CLAIMS THAT MAY BE
INCURRED BY OR ASSERTED AGAINST ANY AGENT INDEMNITEE, PROVIDED THE CLAIM RELATES TO OR ARISES
FROM AN AGENT INDEMNITEE ACTING AS OR FOR AGENT (IN ITS CAPACITY AS AGENT).
In Agents discretion,
it may reserve for any such Claims made against an Agent Indemnitee, and may satisfy any judgment,
order or settlement relating thereto, from proceeds of Collateral prior to making any distribution
of Collateral proceeds to Lenders. If Agent is sued by any receiver, bankruptcy trustee,
debtor-in-possession or other Person for any alleged preference or fraudulent transfer, then any
monies paid by Agent in settlement or satisfaction of such proceeding, together with all interest,
costs and expenses (including attorneys fees) incurred in the defense of same, shall be promptly
reimbursed to Agent by each Lender to the extent of its Pro Rata share.
12.7.
Limitation on Responsibilities of Agent
. Agent shall not be liable to
Lenders for any action taken or omitted to be taken under the Loan Documents, except for losses
directly and solely caused by Agents gross negligence or willful misconduct. Agent does not
assume any responsibility for any failure or delay in performance or any breach by any Obligor or
Lender of any obligations under the Loan Documents. Agent does not make to Lenders any express or
implied warranty, representation or guarantee with respect to any Obligations, Collateral, Loan
Documents or Obligor. No Agent Indemnitee shall be responsible to Lenders for any recitals,
statements, information, representations or warranties contained in any Loan Documents; the
execution, validity, genuineness, effectiveness or enforceability of any Loan Documents; the
genuineness, enforceability, collectibility, value, sufficiency, location or existence of any
Collateral, or the validity, extent, perfection or priority of any Lien therein; the validity,
enforceability or collectibility of any Obligations; or the assets, liabilities, financial
condition, results of operations, business, creditworthiness or legal status of any Obligor or
Account Debtor. No Agent Indemnitee shall have any obligation to any Lender to ascertain or
inquire into the existence of any Default or Event of Default, the observance or performance by any
Obligor of any terms of the Loan Documents, or the satisfaction of any conditions precedent
contained in any Loan Documents.
12.8.
Successor Agent and Co-Agents
.
12.8.1.
Resignation; Successor Agent
. Subject to the appointment and acceptance
of a successor Agent as provided below, Agent may resign at any time by giving at least 30 days
written notice thereof to Lenders and Borrowers. Upon receipt of such notice, Required Lenders
shall have the right to appoint a successor Agent which shall be (a) a Lender or an Affiliate of a
Lender; or (b) a commercial bank that is organized under the laws of the United States or any state
or district thereof, has a combined capital surplus of at least $200,000,000 and in each case
(
provided
no Event of Default exists) is reasonably acceptable to Borrowers. If no
successor agent is appointed prior to the effective date of the resignation of Agent, then Agent
may appoint a successor agent from among Lenders. Upon acceptance by a successor Agent of an
appointment to serve as Agent hereunder, such successor Agent shall thereupon succeed to and become
vested with all the powers and duties of the retiring Agent without further act, and the retiring
Agent shall be discharged from its duties and obligations hereunder but shall continue to have the
benefits of the indemnification set forth in
Sections 12.6
and
15.2
. Notwithstanding any Agents
resignation, the provisions of this
Section 12
shall continue in effect for its benefit with
respect to any actions taken or omitted to be taken by it while Agent. Any successor to Bank of
America by merger or acquisition of stock or this loan shall continue to be Agent hereunder without
further act on the part of the parties hereto, unless such successor resigns as provided above.
12.8.2.
Separate Collateral Agent
. It is the intent of the parties that there
shall be no violation of any Applicable Law denying or restricting the right of financial
institutions to transact business in any jurisdiction. If Agent believes that it may be limited in
the exercise of any rights or remedies under the Loan Documents due to any Applicable Law, Agent
may appoint an additional Person who is not so limited, as a separate collateral agent or
co-collateral agent; provided such collateral agent or co-collateral agent is reasonably acceptable
to Borrowers (unless an Event of Default exists). If Agent so appoints a collateral agent or
co-collateral agent, each right and remedy intended to be available to Agent under the Loan
Documents shall also be vested in such separate agent. Every covenant and obligation necessary to
the exercise thereof by such agent shall run to and be enforceable by it as well as Agent. Lenders
shall execute and deliver such documents as Agent deems appropriate to vest any rights or remedies
in such agent. If any collateral agent or co-collateral agent shall die or dissolve, become
incapable of acting, resign or be removed, then all the rights and remedies of such agent, to the
extent permitted by Applicable Law, shall vest in and be exercised by Agent until appointment of a
new agent.
12.9.
Due Diligence and Non-Reliance
. Each Lender acknowledges and agrees that it
has, independently and without reliance upon Agent or any other Lenders, and based upon such
documents, information and analyses as it has deemed appropriate, made its own credit analysis of
each Obligor and its own decision to enter into this Agreement and to fund Loans and participate in
LC Obligations hereunder. Each Lender has made such inquiries concerning the Loan Documents, the
Collateral and each Obligor as such Lender feels necessary. Each Lender further acknowledges and
agrees that the other Lenders and Agent have made no representations or warranties concerning any
Obligor, any Collateral or the legality, validity, sufficiency or enforceability of any Loan
Documents or Obligations. Each Lender will, independently and without reliance upon the other
Lenders or Agent, and based upon such financial statements, documents and information as it deems
appropriate at the time, continue to make and rely upon its own credit decisions in making Loans
and participating in LC Obligations and in taking or refraining from any action under any Loan
Documents. Except for notices, reports and other information expressly requested by a Lender,
Agent shall have no duty or responsibility to provide any Lender with any notices, reports or
certificates furnished to Agent by any Obligor or any credit or other information concerning the
affairs, financial condition, business or Properties of any Obligor (or any of its Affiliates)
which may come into possession of Agent or any of Agents Affiliates.
12.10.
Replacement of Certain Lenders
. If a Lender (a) is a Defaulting Lender,
(b) fails to give its consent to any amendment, waiver or action for which consent of all Lenders
was required and Required Lenders consented, then, in addition to any other rights and remedies
that any Person may have, Agent may, by notice to such Lender within 10 days after such event,
require such Lender to assign all of its rights and obligations under the Loan Documents to
Eligible Assignee(s) specified by Agent, pursuant to appropriate Assignment and Acceptance(s) and
within 20 days after Agents notice. Agent is irrevocably appointed as attorney-in-fact to execute
any such Assignment and Acceptance if Lender fails to execute same. Such Lender shall be entitled
to receive, in cash, concurrently with such assignment, all amounts owed to it under the Loan
Documents, including all principal, interest and fees through the date of assignment (but excluding
any prepayment charge).
12.11.
Remittance of Payments and Collections
.
12.11.1.
Remittances Generally
. All payments by any Lender to Agent shall be made
by the time and on the day set forth in this Agreement, in immediately available funds. If no time
for payment is specified or if payment is due on demand by Agent and request for payment is made by
Agent by 11:00 a.m. on a Business Day, payment shall be made by Lender not later than 2:00 p.m. on
such day, and if request is made after 11:00 a.m., then payment shall be made by 11:00 a.m. on the
next Business Day. Payment by Agent to any Lender shall be made by wire transfer, in the type of
funds received by Agent. Any such payment shall be subject to Agents right of offset for any
amounts due from such Lender under the Loan Documents.
12.11.2.
Failure to Pay
. If any Lender fails to pay any amount when due by it to
Agent pursuant to the terms hereof, such amount shall bear interest from the due date until paid at
the rate determined by Agent as customary in the banking industry for interbank compensation. In
no event shall Borrowers be entitled to receive credit for any interest paid by a Lender to Agent,
nor shall any Defaulting Lender be entitled to interest on any amounts held by Agent pursuant to
Section 4.2.
12.11.3.
Recovery of Payments
. If Agent pays any amount to a Lender in the
expectation that a related payment will be received by Agent from an Obligor and such related
payment is not received, then Agent may recover such amount from each Lender that received it. If
Agent determines at any time that an amount received under any Loan Document must be returned to an
Obligor or paid to any other Person pursuant to Applicable Law or otherwise, then, notwithstanding
any other term of any Loan Document, Agent shall not be required to distribute such amount to any
Lender. If any amounts received and applied by Agent to any Obligations are later required to be
returned by Agent pursuant to Applicable Law, each Lender shall pay to Agent,
on demand
, such
Lenders Pro Rata share of the amounts required to be returned.
12.12.
Agent in its Individual Capacity
. As a Lender, Bank of America shall have
the same rights and remedies under the other Loan Documents as any other Lender, and the terms
Lenders, Required Lenders or any similar term shall include Bank of America in its capacity as
a Lender. Each of Bank of America and its Affiliates may accept deposits from, maintain deposits
or credit balances for, invest in, lend money to, provide Bank Products to, act as trustee under
indentures of, serve as financial or other advisor to, and generally engage in any kind of business
with, Obligors and their Affiliates, as if Bank of America were any other bank, without any duty to
account therefor (including any fees or other consideration received in connection therewith) to
the other Lenders. In their individual capacity, Bank of America and its Affiliates may receive
information regarding Obligors, their Affiliates and their Account Debtors (including information
subject to confidentiality obligations), and each Lender agrees that Bank of America and its
Affiliates shall be under no obligation to provide such information to Lenders, if acquired in such
individual capacity and not as Agent hereunder.
12.13.
Agent Titles
. Each Lender, other than Bank of America, that is designated
(on the cover page of this Agreement or otherwise) by Bank of America as an Agent or Arranger
of any type shall not have any right, power, responsibility or duty under any Loan Documents other
than those applicable to all Lenders, and shall in no event be deemed to have any fiduciary
relationship with any other Lender.
12.14.
No Third Party Beneficiaries
. This
Section 12
is an agreement solely among
Lenders and Agent, and shall survive Full Payment of the Obligations. This
Section 12
does not
confer any rights or benefits upon Borrowers or any other Person other than as set forth in
Section
12.8
. As between Borrowers and Agent, any action that Agent may take under any Loan Documents or
with respect to any Obligations shall be conclusively presumed to have been authorized and directed
by Lenders.
SECTION 13. COLLECTION ALLOCATION MECHANISM
13.1.
[RESERVED]
.
SECTION 14. BENEFIT OF AGREEMENT; ASSIGNMENTS AND PARTICIPATIONS
14.1.
Successors and Assigns
. This Agreement shall be binding upon and inure to
the benefit of Borrowers, Agent, Lenders, and their respective successors and assigns, except that
(a) no Borrower shall have the right to assign its rights or delegate its obligations under any
Loan Documents; and (b) any assignment by a Lender must be made in compliance with
Section 14.3
.
Agent may treat the Person which made any Loan as the owner thereof for all purposes until such
Person makes an assignment in accordance with
Section 14.3
. Any authorization or consent of a
Lender shall be conclusive and binding on any subsequent transferee or assignee of such Lender.
14.2.
Participations
.
14.2.1.
Permitted Participants; Effect
. Any Lender may, in the ordinary course of
its business and in accordance with Applicable Law, at any time sell to a financial institution
(Participant) a participating interest in the rights and obligations of such Lender under any
Loan Documents. Despite any sale by a Lender of participating interests to a Participant, such
Lenders obligations under the Loan Documents shall remain unchanged, such Lender shall remain
solely responsible to the other parties hereto for performance of such obligations, such Lender
shall remain the holder of its Loans and Revolver Commitment for all purposes, all amounts payable
by Borrowers shall be determined as if such Lender had not sold such participating interests, and
Borrowers and Agent shall continue to deal solely and directly with such Lender in connection with
the Loan Documents. Each Lender shall be solely responsible for notifying its Participants of any
matters under the Loan Documents, and Agent and the other Lenders or Obligors shall not have any
obligation or liability to any such Participant. A Participant that would be a Foreign Lender if
it were a Lender shall not be entitled to the benefits of
Section 5.9
unless Borrowers agree
otherwise in writing.
14.2.2.
Voting Rights
. Each Lender shall retain the sole right to approve,
without the consent of any Participant, any amendment, waiver or other modification of any Loan
Documents other than that which (i) forgives principal (other than mandatory prepayments), interest
or fees (other than wavier of default interest), (ii) reduces the stated interest rate or fees
payable with respect to any Loan or Revolver Commitment in which such Participant has an interest
(other than wavier of default interest), (iii) postpones the Commitment Termination Date or any
date fixed for any regularly scheduled payment of principal, interest or fees on such Loan or
Revolver Commitment, or (iv) releases any Borrower, Guarantor or substantial portion of the
Collateral (except as otherwise permitted herein).
14.2.3.
Benefit of Set-Off
. Borrowers agree that each Participant shall have a
right of set-off in respect of its participating interest to the same extent as if such interest
were owing directly to a Lender, and each Lender shall also retain the right of set-off with
respect to any participating interests sold by it. By exercising any right of set-off, a
Participant agrees to share with Lenders all amounts received through its set-off, in accordance
with
Section 12.5
as if such Participant were a Lender.
14.3.
Assignments
.
14.3.1.
Permitted Assignments
. A Lender may assign to an Eligible Assignee any of
its rights and obligations under the Loan Documents, as long as (a) each assignment is of a
constant, and not a varying, percentage of the transferor Lenders rights and obligations under the
Loan Documents and, in the case of a partial assignment, is in a minimum principal amount of
$5,000,000 (unless otherwise agreed by Agent in its discretion) and integral multiples of
$1,000,000 in excess of that amount; (b) except in the case of an assignment in whole of a Lenders
rights and obligations, the aggregate amount of the Revolver Commitments retained by the transferor
Lender is at least $5,000,000 (unless otherwise agreed by Agent in its discretion); and (c) the
parties to each such assignment shall execute and deliver to Agent, for its acceptance and
recording, an Assignment and Acceptance. Nothing herein shall limit the right of a Lender to
pledge or assign any rights under the Loan Documents to (i) any Federal Reserve Bank or the United
States Treasury as collateral security pursuant to Regulation A of the Board of Governors and any
Operating Circular issued by such Federal Reserve Bank, or (ii) counterparties to swap agreements
relating to any Loans; provided, however, that any payment by Borrowers to the assigning Lender in
respect of any Obligations assigned as described in this sentence shall satisfy Borrowers
obligations hereunder to the extent of such payment, and no such assignment shall release the
assigning Lender from its obligations hereunder.
14.3.2.
Effect; Effective Date
. Upon delivery to Agent of an assignment notice
substantially in the form of
Exhibit D
and a processing fee of $3,500 (unless otherwise agreed by
Agent in its discretion), the assignment shall become effective as specified in the notice, if it
complies with this
Section 14.3
. From such effective date, the Eligible Assignee shall for all
purposes be a Lender under the Loan Documents, and shall have all rights and obligations of a
Lender thereunder (provided that any liability of Borrowers to such assignee under
Section 3.7, 3.8
and
5.9
shall be limited to the amount, if any, that would have been payable thereunder by
Borrowers in the absence of such assignment, except to the extent any such amounts are attributable
to a Change in Law occurring after the date of such assignment). Upon consummation of an
assignment, the transferor Lender, Agent and Borrowers shall make appropriate arrangements for
issuance of replacement and/or new Notes, as applicable. The transferee Lender shall comply with
Section 5.10
and deliver, upon request, an administrative questionnaire satisfactory to Agent.
SECTION 15. MISCELLANEOUS
15.1.
Consents, Amendments and Waivers
.
15.1.1.
Amendment
. No modification of any Loan Document, including any extension
or amendment of a Loan Document or any waiver of a Default or Event of Default, shall be effective
without the prior written agreement of Agent (with the consent of Required Lenders) and each
Obligor party to such Loan Document; provided, however, that
(a) without the prior written consent of Agent, no modification shall be effective with
respect to any provision in a Loan Document that relates to any rights, duties or discretion of
Agent;
(b) without the prior written consent of Issuing Bank, no modification shall be effective
with respect to any LC Obligations or
Section 2.3
;
(c) without the prior written consent of each affected Lender, no modification shall be
effective that would (i) increase the Revolver Commitment of such Lender; or (ii) reduce the amount
of, or waive or delay payment of, any principal, interest or fees payable to such Lender (other
than waiver of default interest or waiver of any Default or Event of Default); and
(d) without the prior written consent of all Lenders (except a Defaulting Lender as
provided in
Section 4.2
), no modification shall be effective that would (i) extend the Revolver
Termination Date; (ii) alter
Sections 5.6
or
15.1.1
; (iii) amend the definitions of Borrowing Base,
Pro Rata or Required Lenders; (iv) increase any advance rate or increase total Revolver
Commitments; (vi) release Collateral with a book value greater than $10,000,000 during any calendar
year, except as contemplated by the Loan Documents; or (vii) release any Obligor from liability for
any Obligations, if such Obligor is Solvent at the time of the release except as permitted by the
Loan Documents.
15.1.2.
Limitations
. The agreement of Borrowers shall not be necessary to the
effectiveness of any modification of a Loan Document that deals solely with the rights and duties
of Lenders, Agent and/or Issuing Bank as among themselves. Only the consent of the parties to the
Fee Letter or any agreement relating to a Bank Product shall be required for any modification of
such agreement, and any non-Lender that is party to a Bank Product agreement shall have no right to
participate in any manner in modification, amendment, supplement, extension or restatement of any
other Loan Document. Any waiver or consent granted by Agent or Lenders hereunder shall be
effective only if in writing and only for the matter specified.
15.1.3.
Payment for Consents
. No Borrower will, directly or indirectly, pay any
remuneration or other thing of value, whether by way of additional interest, fee or otherwise, to
any Lender (in its capacity as a Lender hereunder) as consideration for agreement by such Lender
with any modification of any Loan Documents, unless such remuneration or value is concurrently
paid, on the same terms, on a Pro Rata basis to all Lenders providing their consent.
15.1.4.
Technical Amendments
. Notwithstanding anything to the contrary contained
in
Section 15.1
, if Agent and Borrowers shall have jointly identified any error of a technical
nature in any provision of the Loan Documents, then Agent and Borrowers shall be permitted to amend
such provision and such amendment shall become effective without any further action or consent of
any other party to any Loan Document if the same is not objected to in writing by the Required
Lenders within five Business Days following receipt of notice thereof.
15.2.
Indemnity
.
EACH BORROWER SHALL INDEMNIFY AND HOLD HARMLESS THE INDEMNITEES
AGAINST ANY CLAIMS THAT MAY BE INCURRED BY OR ASSERTED AGAINST ANY INDEMNITEE, INCLUDING CLAIMS
ARISING FROM THE NEGLIGENCE OF AN INDEMNITEE
. In no event shall any party to a Loan Document have
any obligation thereunder to indemnify or hold harmless an Indemnitee with respect to a Claim that
is determined in a final, non-appealable judgment by a
court of competent jurisdiction to result from the gross negligence or willful misconduct of
such Indemnitee or a Claim solely among the Indemnitees.
15.3.
Notices and Communications
.
15.3.1.
Notice Address
. Subject to
Section 4.1.4
, all notices and other
communications by or to a party hereto shall be in writing and shall be given to any Borrower, at
Borrower Agents address shown on the signature pages hereof, and to any other Person at its
address shown on the signature pages hereof (or, in the case of a Person who becomes a Lender after
the Restatement Effective Date, at the address shown on its Assignment and Acceptance), or at such
other address as a party may hereafter specify by notice in accordance with this
Section 15.3
.
Each such notice or other communication shall be effective only (a) if given by facsimile
transmission, when transmitted to the applicable facsimile number, if confirmation of receipt is
received; (b) if given by mail, three Business Days after deposit in the U.S. mail, with
first-class postage pre-paid, addressed to the applicable address; or (c) if given by personal
delivery, when duly delivered to the notice address with receipt acknowledged. Notwithstanding the
foregoing, no notice to Agent pursuant to
Section 2.1.4, 2.3, 3.1.2, 4.1.1
or
5.3.3
shall be
effective until actually received by the individual to whose attention at Agent such notice is
required to be sent. Any written notice or other communication that is not sent in conformity with
the foregoing provisions shall nevertheless be effective on the date actually received by the
noticed party. Any notice received by Borrower Agent shall be deemed received by all Borrowers.
15.3.2.
Electronic Communications; Voice Mail
. Electronic mail and internet
websites may be used only for routine communications, such as financial statements, Borrowing Base
Certificates and other information required by
Section 10.1.2
, administrative matters, distribution
of Loan Documents for execution and delivery of executed signature pages, matters permitted under
Section 4.1.4
and such other communications as agreed by Agent. Agent and Lenders make no
assurances as to the privacy and security of electronic communications. Electronic and voice mail
may not be used as effective notice under the Loan Documents.
15.3.3.
Non-Conforming Communications
. Agent and Lenders may rely upon any
notices purportedly given by or on behalf of any Borrower even if such notices were not made in a
manner specified herein, were incomplete or were not confirmed, or if the terms thereof, as
understood by the recipient, varied from a later confirmation. Each Borrower shall indemnify and
hold harmless each Indemnitee from any liabilities, losses, costs and expenses arising from any
telephonic communication purportedly given by or on behalf of a Borrower.
15.4.
Performance of Borrowers Obligations
. Agent may, in its discretion at any
time and from time to time, at Borrowers expense, with, unless an Event of Default is continuing,
five days prior notice to Borrower, pay any amount or do any act required of a Borrower under any
Loan Documents or otherwise lawfully requested by Agent to (a) enforce any Loan Documents or
collect any Obligations; (b) protect, insure, maintain or realize upon any Collateral; or (c)
defend or maintain the validity or priority of Agents Liens in any Collateral, including any
payment of a judgment, insurance premium, warehouse charge, finishing or processing charge, or
landlord claim, or any discharge of a Lien. All payments, costs and expenses (including
Extraordinary Expenses) of Agent under this
Section 15.4
shall be reimbursed to Agent by Borrowers,
promptly following demand, with interest from the date incurred to the date of payment thereof at
the Default Rate applicable to Base Rate Loans. Any
payment made or action taken by Agent under this
Section 15.4
shall be without prejudice to
any right to assert an Event of Default or to exercise any other rights or remedies under the Loan
Documents.
15.5.
Credit Inquiries
. Each Borrower hereby authorizes Agent and Lenders (but
they shall have no obligation) to respond to usual and customary credit inquiries from third
parties concerning any Borrower or Subsidiary.
15.6.
Severability
. Wherever possible, each provision of the Loan Documents shall
be interpreted in such manner as to be valid under Applicable Law. If any provision is found to be
invalid under Applicable Law, it shall be ineffective only to the extent of such invalidity and the
remaining provisions of the Loan Documents shall remain in full force and effect.
15.7.
Cumulative Effect; Conflict of Terms
. The provisions of the Loan Documents
are cumulative. The parties acknowledge that the Loan Documents may use several limitations, tests
or measurements to regulate similar matters, and they agree that these are cumulative and that each
must be performed as provided. Except as otherwise provided in another Loan Document (by specific
reference to the applicable provision of this Agreement), if any provision contained herein is in
direct conflict with any provision in another Loan Document, the provision herein shall govern and
control.
15.8.
Counterparts
. Any Loan Document may be executed in counterparts, each of
which shall constitute an original, but all of which when taken together shall constitute a single
contract. This Loan Agreement shall become effective when Agent has received counterparts bearing
the signatures of all parties hereto. Delivery of a signature page of any Loan Document by
telecopy or other electronic means shall be effective as delivery of a manually executed
counterpart of such agreement.
15.9.
Entire Agreement
. Time is of the essence of the Loan Documents. The Loan
Documents constitute the entire contract among the parties relating to the subject matter hereof,
and supersede any and all previous agreements and understandings, oral or written, relating to the
subject matter hereof.
15.10.
Relationship with Lenders
. The obligations of each Lender hereunder are
several, and no Lender shall be responsible for the obligations or Revolver Commitments of any
other Lender. Amounts payable hereunder to each Lender shall be a separate and independent debt.
It shall not be necessary for Agent or any other Lender to be joined as an additional party in any
proceeding for such purposes. Nothing in this Agreement and no action of Agent or Lenders pursuant
to the Loan Documents shall be deemed to constitute Agent and Lenders to be a partnership,
association, joint venture or any other kind of entity, nor to constitute control of any Borrower.
15.11.
No Advisory or Fiduciary Responsibility
. In connection with all aspects of
each transaction contemplated by any Loan Document, Borrowers acknowledge and agree that (a)(i)
this credit facility and any related arranging or other services by Agent, any Lender, any of their
Affiliates or any arranger are arms-length commercial transactions between Borrowers and such
Person; (ii) Borrowers have consulted their own legal, accounting, regulatory and tax advisors to
the extent they have deemed appropriate; and (iii) Borrowers are capable of evaluating and
understanding, and do understand and accept, the terms, risks and conditions of
the transactions contemplated by the Loan Documents; (b) each of Agent, Lenders, their
Affiliates and any arranger is and has been acting solely as a principal in connection with this
credit facility, is not the financial advisor, agent or fiduciary for Borrowers, any of their
Affiliates or any other Person, and has no obligation with respect to the transactions contemplated
by the Loan Documents except as expressly set forth therein; and (c) Agent, Lenders, their
Affiliates and any arranger may be engaged in a broad range of transactions that involve interests
that differ from Borrowers and their Affiliates, and have no obligation to disclose any of such
interests to Borrowers or their Affiliates. To the fullest extent permitted by Applicable Law,
each Borrower hereby waives and releases any claims that it may have against Agent, Lenders, their
Affiliates and any arranger with respect to any breach or alleged breach of agency or fiduciary
duty in connection with any aspect of any transaction contemplated by a Loan Document.
15.12.
Process Agent
. Without prejudice to any other mode of service allowed
under any relevant law, each Borrower:
(i) irrevocably appoints National Registered Agents, Inc. as its agent for service of
process in relation to any proceedings before the Illinois courts in connection with any
Loan Document; and
(ii) agrees that failure by an agent for service of process to notify the relevant
Borrower of the process will not invalidate the proceedings concerned.
If any person appointed as an agent for service of process is unable for any reason to act as agent
for service of process, the Company (on behalf of all the Obligors) must immediately (and in any
event within five days of such event taking place) appoint another agent on terms acceptable to
Agent. Failing this, Agent may appoint another agent for this purpose.
15.13.
Confidentiality
. Each of Agent, Lenders and Issuing Bank agrees to
maintain the confidentiality of all Information (as defined below) with the same degree of care
that it uses to protect its confidentiality information, except that Information may be disclosed
(a) to its Affiliates and to its and its Affiliates respective partners, directors, officers,
employees, agents, advisors and representatives (provided such Persons are informed of the
confidential nature of the Information and instructed to keep such Information confidential)
involved in the transaction; (b) to the extent requested by any governmental, regulatory or
self-regulatory authority purporting to have jurisdiction over it or its Affiliates; (c) to the
extent required by Applicable Law or by any subpoena or similar legal process; (d) to any other
party hereto; (e) in connection with any action or proceeding, or other exercise of rights or
remedies, relating to any Loan Documents or Obligations; (f) subject to an agreement containing
provisions substantially the same as this
Section 15.5
, to any Transferee or, any actual or
prospective party (or its advisors) to any Bank Product; (g) with the consent of Borrower Agent; or
(h) to the extent such Information (i) becomes publicly available other than as a result of a
breach of this
Section 15.5
or (ii) is available to Agent, any Lender, Issuing Bank or any of their
Affiliates on a nonconfidential basis from a source other than Borrowers. Notwithstanding the
foregoing, Agent and Lenders may publish or disseminate general information describing this credit
facility, including the names and addresses of Borrowers and a general description of Borrowers
businesses, and may use Borrowers logos, trademarks, product photographs or name in advertising
materials. As used herein, Information means all information received from an Obligor or
Subsidiary relating to it or its business or to the Collateral that is identified as
confidential when delivered. Any Person required to maintain the confidentiality of
Information pursuant to this
Section 15.5
shall be deemed to have complied if it exercises the same
degree of care to maintain the confidentiality of such Information that it accords its own
confidential information. Each of Agent, Lenders and Issuing Bank acknowledges that (i)
Information may include material non-public information concerning an Obligor or Subsidiary; (ii)
it has developed compliance procedures regarding the use of material non-public information; and
(iii) it will handle such material non-public information in accordance with Applicable Law,
including federal and state securities laws. This
Section 15.13
shall survive Full Payment of the
Obligations.
15.14.
Certifications Regarding Second Lien Notes
. Borrowers certify to Agent and
Lenders that neither the execution or performance of the Loan Documents nor the incurrence of any
Obligations by Borrowers violates the Second Lien Notes or the Indenture, including Section
4.03(b)(1) thereof. Agent may condition Borrowings, Letters of Credit and other credit
accommodations under the Loan Documents from time to time upon Agents receipt of evidence that the
Revolver Commitments and Obligations continue to be permitted under the Indenture at such time.
15.15.
GOVERNING LAW
. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, UNLESS
OTHERWISE SPECIFIED, SHALL BE GOVERNED BY THE LAWS OF THE STATE OF ILLINOIS, WITHOUT GIVING EFFECT
TO ANY CONFLICT OF LAW PRINCIPLES (BUT GIVING EFFECT TO FEDERAL LAWS RELATING TO NATIONAL BANKS).
15.16.
Consent to Forum
.
15.16.1. EACH PARTY HERETO HEREBY CONSENTS TO THE NON-EXCLUSIVE JURISDICTION OF ANY
FEDERAL OR STATE COURT SITTING IN OR WITH JURISDICTION OVER ILLINOIS, IN ANY PROCEEDING OR DISPUTE
RELATING IN ANY WAY TO ANY LOAN DOCUMENTS, AND AGREES THAT ANY SUCH PROCEEDING SHALL BE BROUGHT BY
IT SOLELY IN ANY SUCH COURT. EACH PARTY HERETO IRREVOCABLY WAIVES ALL CLAIMS, OBJECTIONS AND
DEFENSES THAT IT MAY HAVE REGARDING SUCH COURTS PERSONAL OR SUBJECT MATTER JURISDICTION, VENUE OR
INCONVENIENT FORUM. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER
PROVIDED FOR NOTICES IN SECTION 14.3.1. Nothing herein shall limit the right of Agent or any
Lender to bring proceedings against any Obligor in any other court, nor limit the right of any
party to serve process in any other manner permitted by Applicable Law. Nothing in this Agreement
shall be deemed to preclude enforcement by Agent of any judgment or order obtained in any forum or
jurisdiction.
15.17.
Waivers by Borrowers
.
To the fullest extent permitted by Applicable Law,
each Borrower waives (a) the right to trial by jury (which Agent and each Lender hereby also
waives) in any proceeding or dispute of any kind relating in any way to any Loan Documents,
Obligations or Collateral; (b) presentment, demand, protest, notice of presentment, default,
non-payment, maturity, release, compromise, settlement, extension or renewal of any commercial
paper, accounts, documents, instruments, chattel paper and guaranties at any time held by Agent on
which a Borrower may in any way be liable, and hereby ratifies anything Agent may do in this
regard; (c) notice prior to taking possession
or control of any Collateral (except as required under the Loan Documents); (d) any bond or
security that might be required by a court prior to allowing Agent to exercise any rights or
remedies; (e) the benefit of all valuation, appraisement and exemption laws; (f) any claim against
Agent or any Lender, on any theory of liability, for special, indirect, consequential, exemplary or
punitive damages (as opposed to direct or actual damages) in any way relating to any Enforcement
Action, Obligations, Loan Documents or transactions relating thereto; and (g) notice of acceptance
hereof.
Each Borrower acknowledges that the foregoing waivers are a material inducement to Agent
and Lenders entering into this Agreement and that Agent and Lenders are relying upon the foregoing
in their dealings with Borrowers. Each Borrower has reviewed the foregoing waivers with its legal
counsel and has knowingly and voluntarily waived its jury trial and other rights following
consultation with legal counsel. In the event of litigation, this Agreement may be filed as a
written consent to a trial by the court.
15.18.
Patriot Act Notice
. Agent and Lenders hereby notify Borrowers that
pursuant to the requirements of the Patriot Act, Agent and Lenders are required to obtain, verify
and record information that identifies each Borrower, including its legal name, address, tax ID
number and other information that will allow Agent and Lenders to identify it in accordance with
the Patriot Act. Agent and Lenders will also require information regarding each personal
guarantor, if any, and may require information regarding Borrowers management and owners, such as
legal name, address, social security number and date of birth.
15.19.
Effect of Amendment and Restatement; Schedules
. This Agreement is intended
to amend the Original Loan Agreement, without novation, and solely for convenience of reference, to
restate it. For the avoidance of doubt, this Agreement shall not become effective until the
satisfaction (or waiver) of the requirements set forth in
Section 6.2
and the occurrence of the
Restatement Effective Date. The Company and each other Obligor hereby acknowledge, certify and
agree that the Obligations outstanding under and as defined in the Original Loan Agreement as of
the Restatement Effective Date, continue to remain Obligations outstanding under this Agreement.
Except as expressly modified herein, all of the terms and provisions of the Original Loan Agreement
shall continue to apply for the periods prior to the Restatement Effective Date, including any
determinations of payment dates, interest rates, compliance with covenants and other obligations,
accuracy of representations and warranties, Events of Default or any amount payable to Agent or
Lenders. From and after the Restatement Effective Date, all references in the Notes and other Loan
Documents to (i) the Loan Agreement shall be deemed to include references to this Agreement, and
(ii) the Lenders or Agent shall mean such terms as defined in this Agreement. As to all
periods occurring on or after the Restatement Effective Date, all of the covenants in the Original
Loan Agreement shall be of no further force and effect (with respect to such periods), it being
understood that all obligations of Borrowers under the Original Loan Agreement shall be governed by
this Agreement from and after the Restatement Effective Date. Upon the effectiveness of this
Agreement, the Schedules to the Original Credit Agreement, as amended, supplemented or otherwise
modified after the Original Closing Date but prior to the Restatement Effective Date, shall
constitute the Schedules hereto, other than Schedule 1.1, Schedule 7.4, Schedule 8.5, Schedule
9.1.11, Schedule 9.1.14, Schedule 9.1.16, Schedule 10.2.1, Schedule 10.2.7 and Schedule 10.2.15 to
this Agreement which are hereby amended and restated in form set forth after the signature pages to
this Agreement.
15.20.
Intercreditor Agreement
. Notwithstanding anything herein to the contrary,
any Lien and security interests granted to Agent pursuant to this Agreement or any Security
Documents and the exercise of any right or remedy by Agent under the Credit Agreement or any
of the Security Documents is subject to the provisions of the Intercreditor Agreement.
[Remainder of page intentionally left blank; signatures begin on following page]
IN WITNESS WHEREOF,
this Agreement has been executed and delivered as of the date set forth
above.
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BORROWERS
:
COMMERCIAL VEHICLE GROUP, INC.
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By:
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/s/ Chad M. Utrup
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Name:
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Chad M. Utrup
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Title:
Address:
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Chief Financial
Officer
7800 Walton Parkway
New Albany, OH 43054
Attn: Chief Financial Officer
Telecopy: (614) 289-5365
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NATIONAL SEATING COMPANY
CVG CS LLC
MONONA CORPORATION
MONONA WIRE CORPORATION
MONONA (MEXICO) HOLDINGS LLC
TRIM SYSTEMS, INC.
TRIM SYSTEMS OPERATING CORP.
CABARRUS PLASTICS, INC.
CVG OREGON, LLC
CVS HOLDINGS, INC.
SPRAGUE DEVICES, INC.
MAYFLOWER VEHICLE SYSTEMS, LLC
CVG MANAGEMENT CORPORATION
CVG EUROPEAN HOLDINGS, LLC
CVG LOGISTICS, LLC
CVG ALABAMA, LLC
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By:
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/s/ Chad M. Utrup
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Name:
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Chad M. Utrup
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Title:
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Chief Financial Officer
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AGENT AND LENDERS
:
BANK OF AMERICA, N.A.
,
as Agent and Lender
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By:
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/s/ Philip Nomura
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Name:
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Philip Nomura
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Title:
Address:
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Vice President
135 S. LaSalle, 4
th
Floor
Chicago, IL 60603
Telecopy: (312) 904-7190
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SCHEDULE 1.1
to
Loan and Security Agreement
REVOLVER COMMITMENTS OF LENDERS
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Lender
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Revolver Commitment
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Bank of America, N.A.
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$
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40,000,000.00
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Exhibit
10.2
EXECUTION COPY
INTERCREDITOR AGREEMENT
Intercreditor Agreement (this
Agreement
), dated as of April 26, 2011, among BANK OF
AMERICA, N.A., as first lien administrative agent and first lien collateral agent (in such
capacity, with its successors and assigns, and as more specifically defined below, the
First
Priority Representative
) for the First Priority Secured Parties (such term, and other
capitalized terms used herein but not otherwise defined, having the meaning set forth in Section
1.1 below), U.S. NATIONAL BANK ASSOCIATION, as Trustee and as Second Priority Agent (in such
capacity, with its successors and assigns, and as more specifically defined below, the
Second
Priority Representative
) for the Second Priority Secured Parties, COMMERCIAL VEHICLE GROUP,
INC., a Delaware corporation (the
Company
) and each of the other Loan Parties party
hereto.
WHEREAS, the Company, the other borrowers party thereto, the First Priority Representative and
certain financial institutions and other entities are parties to a First Lien Loan and Security
Agreement, dated as of January 7, 2009, as amended and restated as of the date hereof (as further
amended, restated, supplemented or otherwise modified from time to time, the
Existing First
Priority Agreement
), pursuant to which such financial institutions and other entities have
agreed to make loans and extend other financial accommodations to the Company and the other
borrowers party thereto;
WHEREAS, the Company, the subsidiary guarantors party thereto and the Second Priority
Representative are parties to an Indenture, dated as of the date hereof (the
Existing Second
Priority Agreement
), pursuant to which the Company intends to issue certain notes (the
Notes
) guaranteed by each other Loan Party party thereto;
WHEREAS, the Company and the other Loan Parties have granted to the First Priority
Representative security interests in the Common Collateral as security for payment and performance
of the First Priority Obligations;
WHEREAS, the Company and the other Loan Parties propose to grant to the Second Priority
Representative junior security interests in the Common Collateral as security for payment and
performance of the Second Priority Obligations; and
WHEREAS, it is a condition to the grant of such junior security interests that this Agreement
be executed and delivered by the parties hereto to set forth the respective rights of the First
Priority Secured Parties, on the one hand, and the Second Priority Secured Parties, on the other
hand, and the application of any proceeds and certain other matters;
NOW THEREFORE, in consideration of the foregoing and the mutual covenants herein contained and
other good and valuable consideration, the existence and sufficiency of which is expressly
recognized by all of the parties hereto, the parties agree as follows:
SECTION 1
.
DEFINITIONS
.
1.1. Defined Terms. The following terms, as used herein, have the following meanings:
Additional Debt
has the meaning assigned to such term in Section 9.3(b).
1
Additional First Priority Agreement
means any agreement designated as such in
writing (including by addendum to this Agreement) by the First Priority Representative in
accordance with the terms of the First Priority Agreement.
Additional Second Priority Agreement
means any agreement designated as such in
writing (including by addendum to this Agreement) by the Second Priority Representative in
accordance with the terms of the Second Priority Agreement.
Agreement
has the meaning assigned to such term in the preamble hereto.
Bankruptcy Code
means the United States Bankruptcy Code (11 U.S.C. §101 et seq.), as
amended from time to time.
Bankruptcy Law
means each of the Bankruptcy Code and any similar federal, state or
foreign bankruptcy, insolvency, reorganization, receivership or similar law.
BofA
Bank of America, N.A.
Cash Management Obligations
means, with respect to any Loan Party, (i) any Cash
Management Services as defined in the Existing First Priority Agreement and (ii) any other
obligations of such Loan Party owed to any First Priority Secured Party (or any of its affiliates)
in respect of treasury management arrangements, depositary or other cash management services
including in connection with any automated clearing house transfers of funds or similar
transactions.
Common Collateral
means all assets that are both First Priority Collateral and
Second Priority Collateral.
Company
has the meaning assigned to such term in the preamble hereto.
Comparable Second Priority Security Document
means, in relation to any Common
Collateral subject to any First Priority Security Document, that Second Priority Security Document
that creates a security interest in the same Common Collateral, granted by the same Loan Party, as
applicable.
DIP Financing
has the meaning assigned to such term in Section 5.2.
Enforcement Action
means, with respect to the First Priority Obligations or the
Second Priority Obligations, any demand for acceleration or payment thereof, the exercise of any
rights and remedies with respect to any Common Collateral securing such obligations or the
commencement or prosecution of enforcement of any of the rights and remedies, as applicable, the
First Priority Documents or the Second Priority Documents, or applicable law, including, without
limitation, the exercise of any rights of set-off or recoupment and rights to credit bid debt, and
the exercise of any rights or remedies of a secured creditor under the Uniform Commercial Code of
any applicable jurisdiction or under the Bankruptcy Code.
Existing First Priority Agreement
has the meaning assigned to such term in the
preamble hereto.
Existing Second Priority Agreement
has the meaning assigned to such term in the
preamble hereto.
2
First Priority Agreement
means the collective reference to (a) the Existing First
Priority Agreement, (b) any Additional First Priority Agreement and (c) any other credit agreement,
loan agreement, note agreement, promissory note, indenture or other agreement or instrument
evidencing or governing the terms of any indebtedness or other financial accommodation that has
been incurred to extend, replace, refinance or refund in whole or in part the indebtedness and
other obligations outstanding under the Existing First Priority Agreement, any Additional First
Priority Agreement or any other agreement or instrument referred to in this clause (c) unless such
agreement or instrument expressly provides that it is not intended to be and is not a First
Priority Agreement hereunder (a
Replacement First Priority Agreement
). Any reference to
the First Priority Agreement hereunder shall be deemed a reference to any First Priority Agreement
then extant.
First Priority Collateral
means all assets, whether now owned or hereafter acquired
by the Company or any other Loan Party, in which a Lien is granted or purported to be granted to
any First Priority Secured Party as security for any First Priority Obligation (including any Lien
assigned to the First Priority Representative pursuant to Section 2.4).
First Priority Creditors
means the Lenders as defined in the First Priority
Agreement, or any Persons that are designated under the First Priority Documents as creditors
entitled to benefit from the Liens on the First Priority Collateral under the First Priority
Security Documents.
First Priority Documents
means the First Priority Agreement, each First Priority
Security Document and each First Priority Guarantee.
First Priority Guarantee
means any guarantee by any Loan Party of any or all of the
First Priority Obligations.
First Priority Lien
means any Lien created by the First Priority Security Documents.
First Priority Obligations
means (a) all principal of and interest (including
without limitation any Post-Petition Interest) and premium (if any) on all loans made pursuant to
the First Priority Agreement, (b) all reimbursement obligations (if any) and interest thereon
(including without limitation any Post-Petition Interest) with respect to any letter of credit or
similar instruments issued pursuant to the First Priority Agreement, (c) all Hedging Obligations,
(d) all Cash Management Obligations, (e) obligations of the Loan Parties under any indemnity for
Claims (as defined in the First Priority Agreement), and (f) all guarantee obligations, fees,
expenses and other amounts payable from time to time pursuant to the First Priority Documents. To
the extent any payment with respect to any First Priority Obligation (whether by or on behalf of
any Loan Party, as proceeds of security, enforcement of any right of setoff or otherwise) is
declared to be a fraudulent conveyance or a preference in any respect, set aside or required to be
paid to a debtor in possession, any Second Priority Secured Party, receiver or similar Person, then
the obligation or part thereof originally intended to be satisfied shall, for the purposes of this
Agreement and the rights and obligations of the First Priority Secured Parties and the Second
Priority Secured Parties, be deemed to be reinstated and outstanding as if such payment had not
occurred.
First Priority Obligations Payment Date
means the first date on which (a) the First
Priority Obligations (including any obligations replacing, renewing or refinancing any previously
existing First Priority Obligations, but other than those that constitute Unasserted Contingent
Obligations) have been indefeasibly paid in cash in full (or cash collateralized or defeased in
accordance with the terms of the First Priority Documents or in other consideration acceptable to
the First Priority Secured Parties), (b) all commitments to extend credit under the First Priority
Documents (including any obligations replacing,
3
renewing or refinancing any previously existing First Priority Obligations) have been
terminated, (c) there are no outstanding letters of credit or similar instruments issued under the
First Priority Documents (other than such as have been cash collateralized or defeased in
accordance with the terms of the First Priority Security Documents), and (d) the First Priority
Representative has delivered a written notice to the Second Priority Representative stating that
the events described in clauses (a), (b) and (c) have occurred to the satisfaction of the First
Priority Secured Parties. Notwithstanding the foregoing, if at any time after the First Priority
Obligations Payment Date has occurred, the Company enters into any First Priority Document
evidencing a First Priority Obligation which is permitted hereby and under the Second Priority
Documents, then such First Priority Obligations Payment Date shall automatically be deemed not to
have occurred for all purposes of this Agreement, and the obligations under such First Priority
Document shall automatically be treated as First Priority Obligations for all purposes of this
Agreement, including for purposes of the Lien priorities and rights in respect of Collateral set
forth herein, and the first-lien collateral agent under such First Priority Documents shall be the
First Priority Representative for all purposes of this Agreement. Upon receipt of a notice stating
that the Company has entered into a new First Priority Document (which notice shall include the
identity of the new agent, such agent, the
New Agent
), the Second Priority Representative
shall promptly enter into such documents and agreements (including amendments or supplements to
this Agreement) as the Company or such New Agent may reasonably request in order to provide to the
New Agent the rights contemplated hereby, in each case consistent in all material respects with the
terms of this Agreement.
First Priority Representative
has the meaning set forth in the introductory
paragraph hereof. In the case of any Replacement First Priority Agreement, the First Priority
Representative shall be the Person identified as such in such Replacement First Priority Agreement.
First Priority Secured Party
means (a) each First Priority Creditor (and any
affiliate of such First Priority Creditor to which any Cash Management Obligation is owed), (b)
each Issuing Bank (as defined in the First Priority Agreement), (c) the First Priority
Representative, (d) each counterparty to any Swap Agreement the obligations under which constitute
Hedging Obligations, (e) the beneficiaries of each indemnification obligation undertaken by any
Loan Party under any First Priority Document and (f) the successors and assigns of each of the
foregoing.
First Priority Security Documents
means the Security Documents (as defined in the
Existing First Priority Agreement), and any other documents that are designated under the First
Priority Agreement as First Priority Security Documents for purposes of this Agreement.
Governmental Authority
means any federal, state, local or foreign court or
governmental agency, authority, instrumentality or regulatory body.
Hedging Obligations
means, with respect to any Loan Party, any obligations of such
Loan Party pursuant to an agreement in respect of any Hedging Agreement as defined in the
Existing First Priority Agreement or any other Swap Agreement or hedge agreement in respect of
interest rates, currency exchange rates or commodity prices entered into by a Loan Party and any
First Priority Creditor (or any of its affiliates) at the time such agreement is entered into.
Insolvency Proceeding
means any proceeding in respect of bankruptcy, insolvency,
winding up, receivership, dissolution or assignment for the benefit of creditors, in each of the
foregoing events whether under the Bankruptcy Code or any other Bankruptcy Law.
4
Lien
means, with respect to any asset, (a) any mortgage, deed of trust, deed to
secure debt, lien, pledge, hypothecation, encumbrance, charge or security interest in, on or of
such asset, and (b) the interest of a vendor or a lessor under any conditional sale agreement,
capital lease or title retention agreement (or any financing lease having substantially the same
economic effect as any of the foregoing) relating to such asset.
Loan Party
means (a) the Company, (b) each direct or indirect subsidiary of the
Company and (c) any other Person in which the Company or any of its subsidiaries holds an ownership
interest, in each case (a) through (c), that is, at any time of determination, a party to any First
Priority Security Document or Second Priority Security Document. All references in this Agreement
to any Loan Party shall include such Loan Party as a debtor-in-possession and any receiver or
trustee for such Loan Party in any Insolvency Proceeding.
Person
means any natural person, individual, sole proprietorship, partnership,
joint venture, corporation, limited liability company, unincorporated organization, association,
institution, entity, party, including any Governmental Authority or any agency or political
subdivision thereof.
Post-Petition Interest
means any interest or entitlement to fees or expenses or
other charges that accrues after the commencement of any Insolvency Proceeding, whether or not
allowed or allowable as a claim in any such Insolvency Proceeding.
Recovery
has the meaning assigned to such term in Section 5.5.
Reorganization Securities
has the meaning set forth in Section 5.11.
Replacement First Priority Agreement
has the meaning set forth in the definition of
First Priority Agreement.
Second Priority Agreement
means the collective reference to (a) the Existing Second
Priority Agreement, (b) any Additional Second Priority Agreement and (c) any other credit
agreement, loan agreement, note agreement, promissory note, indenture, or other agreement or
instrument evidencing or governing the terms of any indebtedness or other financial accommodation
that has been incurred to extend, replace, refinance or refund in whole or in part the indebtedness
and other obligations outstanding under the Existing Second Priority Agreement, any Additional
Second Priority Agreement or any other agreement or instrument referred to in this clause (c). Any
reference to the Second Priority Agreement hereunder shall be deemed a reference to any Second
Priority Agreement then extant.
Second Priority Collateral
means all assets, whether now owned or hereafter acquired
by the Company or any other Loan Party, in which a Lien is granted or purported to be granted to
any Second Priority Secured Party as security for any Second Priority Obligation.
Second Priority Agent
means has the meaning assigned to such term in the preamble
hereto.
Second Priority Creditors
means the Trustee and the Holders (as defined in the
Existing Second Priority Agreement), or any Persons that are designated under the Second Priority
Documents as creditors entitled to benefit from the Liens on the Second Priority Collateral under
the Second Priority Security Documents.
5
Second Priority Documents
means each Second Priority Agreement, each Second Priority
Security Document and each Second Priority Guarantee.
Second Priority Guarantee
means any guarantee by any Loan Party of any or all of the
Second Priority Obligations.
Second Priority Lien
means any Lien created by the Second Priority Security
Documents.
Second Priority Obligations
means the due and punctual payment of (a) all principal
of and interest (including any Post-Petition Interest) and premium (if any) on all indebtedness
under the Second Priority Agreement, and (b) all other monetary obligations, including fees, costs,
expenses and indemnities, whether primary, secondary, direct, contingent, fixed or otherwise
(including Post-Petition Interest), of the Loan Parties or any of their Subsidiaries to the Second
Priority Secured Parties under the Second Priority Documents, and other amounts payable from time
to time pursuant to the Second Priority Documents, in each case whether or not allowed or allowable
in an Insolvency Proceeding. To the extent any payment with respect to any Second Priority
Obligation (whether by or on behalf of any Loan Party, as proceeds of security, enforcement of any
right of setoff or otherwise) is declared to be a fraudulent conveyance or a preference in whole or
in part, or is otherwise set aside or required to be returned or paid to a debtor in possession,
any First Priority Secured Party, any receiver or any similar Person, then the obligation or part
thereof originally intended to be satisfied shall, for the purposes of this Agreement and the
rights and obligations of the First Priority Secured Parties and the Second Priority Secured
Parties, be deemed to be reinstated and outstanding as if such payment had not occurred.
Second Priority Representative
has the meaning set forth in the preamble hereto, but
shall also include any Person identified as a Second Priority Representative in any Second
Priority Agreement other than the Existing Second Priority Agreement.
Second Priority Secured Party
means the Second Priority Representative, the Second
Priority Creditors and any other holders of the Second Priority Obligations.
Second Priority Security Documents
means the Security Documents as defined in the
Existing Second Priority Agreement and any documents that are designated under the Second Priority
Agreement as Second Priority Security Documents for purposes of this Agreement.
Secured Parties
means the First Priority Secured Parties and the Second Priority
Secured Parties.
Standstill Period
has the meaning specified in Section 3.2.
subsidiary
has the meaning specified in the Existing First Priority Agreement.
Swap Agreement
means any agreement with respect to any swap, forward, future,
derivative or foreign exchange spot transaction or option or similar agreement involving, or
settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or
securities, or economic, financial or pricing indices or measures of economic, financial or pricing
risk or value or any similar transaction or any combination of these transactions;
provided
that no phantom stock or similar plan providing for payments only on account of services provided
by current or former directors, officers, employees or consultants of any of the Subsidiaries shall
be a Swap Agreement.
6
Trustee
means U.S. National Bank Association.
Unasserted Contingent Obligations
means, at any time, First Priority Obligations for
taxes, costs, indemnifications, reimbursements, damages and other liabilities (excluding (a) the
principal of, and interest and premium (if any) on, and fees and expenses relating to, any First
Priority Obligation and (b) contingent reimbursement obligations in respect of amounts that may be
drawn under outstanding letters of credit or similar instruments) in respect of which no assertion
of liability (whether oral or written) and no claim or demand for payment (whether oral or written)
has been made (and, in the case of First Priority Obligations for indemnification, no notice for
indemnification has been issued by the indemnitee) at such time.
Uniform Commercial Code
means the Uniform Commercial Code as in effect from time to
time in the applicable jurisdiction.
1.2
Amended Agreements
. All references in this Agreement to agreements or other
contractual obligations shall, unless otherwise specified, be deemed to refer to such agreements or
contractual obligations as amended, amended and restated, supplemented, restated or otherwise
modified from time to time in accordance with the terms of this Agreement, if applicable.
1.3
Terms Generally
. The definitions of terms herein shall apply equally to both the
singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. The words include,
includes and including shall be deemed to be followed by the phrase without limitation. The
word will shall be construed to have the same meaning and effect as the word shall. Unless the
context requires otherwise (i) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument or other document as
from time to time amended, amended and restated, restated, supplemented or otherwise modified,
renewed, extended, refinanced or replaced, (ii) any reference herein to any Person shall be
construed to include such Persons successors or permitted assigns, (iii) any reference herein to
any Loan Party shall be construed to include such Loan Party as debtor and debtor-in-possession and
any receiver or trustee for such Loan Party in any Insolvency Proceeding, (iv) the words herein,
hereof and hereunder, and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, (v) all references herein to
Sections shall be construed to refer to Sections of this Agreement, (vi) the words asset and
property shall be construed to have the same meaning and effect and to refer to any and all
tangible and intangible assets and properties, including cash, securities, accounts and contract
rights, and (vii) references to laws or statutes include all related rules, regulations,
interpretations, amendments and successor provisions.
SECTION 2.
LIEN PRIORITIES
.
2.1
Subordination of Liens
. (a) Any and all Liens in Common Collateral now existing
or hereafter created or arising in favor of any Second Priority Secured Party securing the Second
Priority Obligations, regardless of how acquired, whether by grant, statute, operation of law,
judgment rendered in any judicial proceeding, subrogation or otherwise, are expressly junior in
priority, operation and effect to any and all Liens now existing or hereafter created or arising in
favor of the First Priority Secured Parties securing the First Priority Obligations,
notwithstanding (i) anything to the contrary contained in any agreement or filing to which any
Second Priority Secured Party may now or hereafter be a party, and regardless of the time, order or
method of grant, attachment, recording or perfection of any financing statements or other security
interests, assignments, pledges, deeds, mortgages and other Liens, charges or
7
encumbrances or any defect or deficiency or alleged defect or deficiency in any of the
foregoing, (ii) any provision of the Uniform Commercial Code or any other applicable law or any
First Priority Document or Second Priority Document or any other circumstance whatsoever and (iii)
the fact that any such Liens in favor of any First Priority Secured Party securing any of the First
Priority Obligations are (x) subordinated to any Lien securing any obligation of any Loan Party
other than the Second Priority Obligations or (y) otherwise subordinated, voided, avoided,
invalidated or lapsed.
(b) No Second Priority Secured Party shall object to or contest, or support any other Person
in contesting or objecting to, in any proceeding (including any Insolvency Proceeding), the
validity, extent, perfection, priority or enforceability of any Lien on the First Priority
Collateral granted to any First Priority Creditor. Notwithstanding any failure by any First
Priority Secured Party to perfect its Lien on the First Priority Collateral granted to such First
Priority Secured Party or any avoidance, invalidation or subordination by any third party or court
of competent jurisdiction of the Lien on the First Priority Collateral granted to the First
Priority Secured Parties, the priority and rights as between the First Priority Secured Parties, on
the one hand, and the Second Priority Secured Parties, on the other hand, with respect to the
Common Collateral shall be as set forth herein.
2.2
Nature of First Priority Obligations
. The Second Priority Representative on
behalf of itself and the other Second Priority Secured Parties acknowledges that a portion of the
First Priority Obligations represents debt that is revolving in nature and that the amount thereof
that may be outstanding at any time or from time to time may be increased or reduced and
subsequently reborrowed, and that the terms of the First Priority Obligations may be modified,
extended or amended from time to time, and that the aggregate amount of the First Priority
Obligations may be increased, replaced or refinanced, in each event, without notice to or consent
by the Second Priority Secured Parties and without affecting the provisions hereof. The lien
priorities provided in Section 2.1 shall not be altered or otherwise affected by any such
amendment, modification, supplement, extension, repayment, reborrowing, increase, replacement,
renewal, restatement or refinancing of the First Priority Obligations, or any portion thereof, or
by any amendment, modification, supplement, extension, repayment, reborrowing, increase,
replacement, renewal, restatement or refinancing of the Second Priority Obligations, or any portion
thereof.
2.3
Agreements Regarding Actions to Perfect Liens
. (a) The Second Priority
Representative on behalf of itself and the other Second Priority Secured Parties agrees that UCC-1
financing statements, patent, trademark or copyright filings or other filings or recordings filed
or recorded by or on behalf of the Second Priority Representative shall be in form satisfactory to
the First Priority Representative.
(b) The Second Priority Representative agrees on behalf of itself and the other Second
Priority Secured Parties that all Second Priority Security Documents entered into on or about the
date hereof shall contain the following notation (or such other notation acceptable to the First
Priority Representatives): The lien and security interest created by this Agreement on the
property described herein is junior and subordinate, in accordance with the provisions of the
Intercreditor Agreement dated as of April 26, 2011, among Bank of America, N.A., as First Priority
Representative, U.S. National Bank Association, as Second Priority Representative, Commercial
Vehicle Group, Inc. and the other Loan Parties referred to therein, as amended from time to time,
to the lien and security interest on such property created by any similar instrument now or
hereafter granted to Bank of America, N.A., as collateral agent under the First Priority Documents
(as defined in the Intercreditor Agreement), and its successors and assigns, in such property.
The Second Priority Representative agrees on behalf of itself and the other Second Priority Secured
Parties that all other Second Priority Security Documents shall bear an identical or, in the event
8
that the Existing First Priority Agreement is no longer extant or BofA shall cease to be the
First Priority Representative, a substantially similar notation.
(c) The First Priority Representative hereby agrees that, to the extent that it holds, or a
third party holds on its behalf, physical possession of or control (as defined in the Uniform
Commercial Code) (or any similar concept under foreign law) over Common Collateral pursuant to the
First Priority Security Documents, such possession or control is also for the benefit of the Second
Priority Representative and the other Second Priority Secured Parties solely to the extent required
to perfect their security interest in such Common Collateral (such bailment being intended, among
other things, to satisfy the requirements of Sections 8-106(d)(3), 8-301(a)(2) and 9-313(c) of the
Uniform Commercial Code). Nothing in the preceding sentence shall be construed to impose any duty
on the First Priority Representative (or any third party acting on its behalf) with respect to such
Common Collateral or provide the Second Priority Representative or any other Second Priority
Secured Party with any rights with respect to such Common Collateral beyond those specified in this
Agreement and the Second Priority Security Documents;
provided
that subsequent to the
occurrence of the First Priority Obligations Payment Date, the First Priority Representative shall
(i) deliver to the Second Priority Representative, at the Companys sole cost and expense, the
Common Collateral in its possession or control together with any necessary endorsements to the
extent required by the Second Priority Documents or (ii) direct and deliver such Common Collateral
as a court of competent jurisdiction otherwise directs;
provided
,
further
, that the
provisions of this Agreement are intended solely to govern the respective Lien priorities as
between the First Priority Secured Parties and the Second Priority Secured Parties and shall not
impose on the First Priority Secured Parties any obligations in respect of the disposition of any
Common Collateral (or any proceeds thereof) that would conflict with prior perfected Liens or any
claims thereon in favor of any other Person that is not a Secured Party.
2.4
No New Liens
. So long as the First Priority Obligations Payment Date has not
occurred, the parties hereto agree that if any Second Priority Secured Party shall acquire or hold
any Lien on any assets of any Loan Party securing any Second Priority Obligation which assets are
required under the First Priority Documents to be pledged as First Priority Collateral and are not
also subject to the First Priority Lien of the First Priority Representative under the First
Priority Documents, then the Second Priority Representative, shall be deemed to also hold and have
held such Lien for the benefit of the First Priority Secured Parties and shall promptly notify the
First Priority Representative of the existence of such Lien and, upon demand by the First Priority
Representative, will without the need for any further consent of any other Second Priority Secured
Party, notwithstanding anything to the contrary in any other Second Priority Document, assign it to
the First Priority Representative as security for the First Priority Obligations (in which case the
Second Priority Representative may retain a junior lien on such assets subject to the terms
hereof). To the extent that the foregoing provisions are not complied with for any reason, without
limiting any other rights and remedies available to the First Priority Secured Parties, the Second
Priority Representative and the other Second Priority Secured Parties agree that any amounts
received by or distributed to any of them pursuant to or as a result of Liens granted in
contravention of this Section 2.4 shall be subject to Section 4.1.
2.5
Further Assurances
. Each of the First Priority Representative, for itself and on
behalf of the other First Priority Secured Parties, and the Second Priority Representative, for
itself and on behalf of the other Second Priority Secured Parties, and each Loan Party party
hereto, for itself and on behalf of its subsidiaries, agrees that it will execute, or will cause to
be executed, any and all further documents, agreements and instruments, and take all such further
actions, as may be required under any applicable law, or which the First Priority Representative or
the Second Priority Representative may reasonably
9
request, to effectuate the terms of this Agreement, including the relative Lien priorities
provided for herein.
SECTION 3
.
ENFORCEMENT RIGHTS
.
3.1
Exclusive Enforcement
. Until the First Priority Obligations Payment Date has
occurred, whether or not an Insolvency Proceeding has been commenced by or against any Loan Party,
the First Priority Secured Parties shall have the exclusive right to take and continue any
Enforcement Action and make determinations regarding the release, dispositions or restrictions with
respect to the Common Collateral, without any consultation with or consent of any Second Priority
Secured Party, but subject to the proviso set forth in Section 5.1. Upon the occurrence and during
the continuance of a Default or an Event of Default under (and defined in) the First Priority
Documents, the First Priority Representative and the other First Priority Secured Parties may take
and continue any Enforcement Action with respect to the First Priority Obligations and the Common
Collateral in accordance with the terms of the First Priority Documents in such order and manner as
they may determine in their sole discretion. Such exercise and enforcement shall include the rights
of an agent appointed by any of them to sell or otherwise dispose of the Common Collateral upon
foreclosure, to incur expenses in connection with such sale or disposition, and to exercise all
rights and remedies of a secured creditor under the Uniform Commercial Code and of a secured
creditor under the Bankruptcy Law of any applicable jurisdiction.
3.2
Standstill and Waivers
. The Second Priority Representative, on behalf of itself
and the other Second Priority Secured Parties, agrees that, until the First Priority Obligations
Payment Date has occurred, subject to the proviso set forth in Section 5.1:
(a) they will not take or cause to be taken any Enforcement Action;
(b) they will not take or cause to be taken any action for the purpose or effect of
which is to make any Lien in respect of any Second Priority Obligation pari passu with or
senior to, or to give any Second Priority Secured Party any preference or priority relative
to, the Liens with respect to the First Priority Obligations or the First Priority Secured
Parties with respect to any of the Common Collateral;
(c) they will not contest, oppose, object to, interfere with, hinder or delay, in any
manner, whether by judicial proceedings (including the filing of an Insolvency Proceeding)
or otherwise, any foreclosure, sale, lease, exchange, transfer or other disposition of the
Common Collateral or any other First Priority Collateral by any First Priority Secured Party
or any other Enforcement Action taken (or any forbearance from taking any Enforcement
Action) by or on behalf of any First Priority Secured Party;
(d) they have no right to (i) direct either the First Priority Representative or any
other First Priority Secured Party to exercise any right, remedy or power with respect to
the Common Collateral or pursuant to the First Priority Security Documents or (ii) consent
or object to the exercise by the First Priority Representative or any other First Priority
Secured Party of any right, remedy or power with respect to the Common Collateral or
pursuant to the First Priority Security Documents or to the timing or manner in which any
such right is exercised or not exercised (or, to the extent they may have any such right
described in this clause (c), whether as a junior lien creditor or otherwise, they hereby
irrevocably waive such right);
10
(e) they will not institute any suit or other proceeding or assert in any suit,
Insolvency Proceeding or other proceeding any claim against any First Priority Secured Party
seeking damages from or other relief by way of specific performance, instructions or
otherwise, with respect to, and no First Priority Secured Party shall be liable for, any
action taken or omitted to be taken by any First Priority Secured Party with respect to the
Common Collateral or pursuant to the First Priority Documents;
(f) they will not make any judicial or nonjudicial claim or demand or commence any
judicial or non-judicial proceedings against any Loan Party or any of its subsidiaries or
affiliates under or with respect to any Second Priority Security Document seeking payment or
damages from or other relief by way of specific performance, instructions or otherwise under
or with respect to any Second Priority Security Document or exercise any right, remedy or
power under or with respect to, or otherwise take any action to enforce, any Second Priority
Security Document;
(g) they will not commence judicial or nonjudicial foreclosure proceedings with
respect to, seek to have a trustee, receiver, liquidator or similar official appointed for
or over, or attempt any action to take possession of any Common Collateral, or exercise any
right, remedy or power with respect to, or otherwise take any action to enforce their
interest in or realize upon, the Common Collateral or pursuant to the Second Priority
Security Documents;
(h) they will not seek, and hereby waive any right, to have the Common Collateral or
any part thereof marshaled upon any foreclosure or other disposition of the Common
Collateral and hereby waive, to the fullest extent permitted by law, any right to demand,
request, plead or otherwise assert or claim the benefit of, any marshalling, appraisal,
valuation or other similar right that may otherwise be available under applicable law with
respect to the Common Collateral or any other similar rights a junior secured creditor may
have under applicable law; and
(i) they will not object to the forbearance by the First Priority Secured Parties from
bringing or pursuing any foreclosure proceeding or action or any other exercise of any
rights or remedies relating to the Common Collateral or any other First Priority Collateral.
provided
that, notwithstanding the foregoing, any Second Lien Secured Party may exercise
its rights and remedies in respect of the Common Collateral under and to the extent provided for in
the Second Lien Security Documents or applicable law (and any recovery therefrom shall be for the
benefit of the First Priority Secured Parties) after the passage of a period of 180 days (the
"
Standstill Period
) from the date of delivery of a notice in writing to the First Priority
Representative of its intention to exercise such rights and remedies, which notice may only be
delivered following the occurrence of and during the continuation of an Event of Default under
and as defined in the Second Lien Agreements;
provided
,
further
, however, that,
notwithstanding the foregoing, in no event shall any Second Lien Secured Party exercise or continue
to exercise any such rights or remedies if, notwithstanding the expiration of the Standstill
Period, (i) any First Priority Secured Party shall have commenced and be diligently pursuing the
exercise of any of its rights and remedies with respect to any of the Common Collateral (prompt
notice of such exercise to be given to the Second Lien Representative) or (ii) an Insolvency
Proceeding in respect of any Loan Party shall have been commenced; and
provided
,
further
, that in any Insolvency Proceeding commenced by or against any Loan Party, the
Second Lien Representative and the Second Lien Secured Parties may take only such actions as are
expressly permitted by Section 5. After the expiration of the Standstill Period, so long as the
First Priority Representative or any First Priority Secured Party has not commenced any Enforcement
Actions with respect to any portion of the Common
11
Collateral, any Second Lien Secured Party may commence an Enforcement Action with respect to all
or a material portion of the Common Collateral and pursue the exercise of its rights, provided
that all of the other provisions of this Agreement are complied with.
3.3
Judgment Creditors
. In the event that any Second Priority Secured Party becomes a
judgment lien creditor in respect of any Common Collateral as a result of its enforcement of its
rights as an unsecured creditor, such judgment lien shall be subject to the terms of this Agreement
for all purposes (including in relation to the First Priority Liens and the First Priority
Obligations) to the same extent as all other Liens securing the Second Priority Obligations are
subject to the terms of this Agreement.
3.4
Cooperation
. The Second Priority Agent, on behalf of itself and the other Second
Priority Secured Parties, agrees that each of them shall take such actions as the First Priority
Representative shall request in connection with the exercise by the First Priority Secured Parties
of their rights set forth herein.
3.5
No Additional Rights For the Loan Parties Hereunder
. Except as provided in
Section 3.6, if any First Priority Secured Party or Second Priority Secured Party shall enforce its
rights or remedies in violation of the terms of this Agreement, no Loan Party shall be entitled to
use such violation as a defense to any action by any First Priority Secured Party or Second
Priority Secured Party, or to assert such violation as a counterclaim or basis for set off or
recoupment against any First Priority Secured Party or Second Priority Secured Party.
3.6
Actions Upon Breach
. (a) If any Second Priority Secured Party, contrary to this
Agreement, commences or participates in any action or proceeding against any Loan Party or the
Common Collateral, such Loan Party, with the prior written consent of the First Priority
Representative, may interpose as a defense or dilatory plea the making of this Agreement, and any
First Priority Secured Party may intervene and interpose such defense or plea in its or their name
or in the name of such Loan Party.
(b) Should any Second Priority Secured Party, contrary to this Agreement, in any way take,
attempt to take or threaten in writing to take any action with respect to the Common Collateral
(including any attempt to realize upon or enforce any remedy with respect to this Agreement), or
take any other action in violation of this Agreement, or fail to take any action required by this
Agreement, this Agreement shall create an irrebuttable presumption and admission by such Second
Priority Secured Party that any First Priority Secured Party (in its own name or in the name of the
relevant Loan Party) or the relevant Loan Party may obtain relief against such Second Priority
Secured Party by injunction, specific performance and/or other appropriate equitable relief, it
being understood and agreed by the Second Priority Representative on behalf of each Second Priority
Secured Party that (i) the First Priority Secured Parties damages from such actions of any Second
Priority Secured Party may at that time be difficult to ascertain and may be irreparable and the
harm to the First Priority Secured Parties may not be adequately compensated in damages and (ii)
each Second Priority Secured Party waives any defense that the Loan Parties and/or the First
Priority Secured Parties cannot demonstrate damage and/or be made whole by the awarding of damages.
3.7
Agreement to be Bound
. (a) The Second Priority Representative and, by virtue of
accepting the Notes or any other document evidencing the Second Priority Obligations, the Second
Priority Secured Parties, acknowledge and agree that no covenant, agreement or restriction
contained in the Second Priority Security Documents or any other Second Priority Documents shall be
deemed to restrict in any way the rights and remedies of the First Priority Representative or the
First Priority Secured Parties with respect to the Collateral as set forth in this Agreement and
the First Priority Loan Documents.
12
(b) By accepting any Note or any other document evidencing the Second Priority Obligations,
each Second Priority Secured Parties has agreed to be bound by the terms of this Agreement. In
addition, the limitations and restrictions upon the Second Priority Representative and its waivers
of rights and remedies in this Agreement shall apply to limit, restrict and waive the rights and
remedies of all other Second Priority Secured Parties to the extent that any independent rights or
remedies for the Second Priority Secured Parties exist under or by virtue of the Second Priority
Documents, the Second Priority Documents, or the Liens on the Common Collateral granted thereby or
applicable law.
SECTION 4 .
APPLICATION OF PROCEEDS OF COMMON COLLATERAL; DISPOSITIONS AND RELEASES OF
COMMON COLLATERAL; INSPECTION AND INSURANCE
.
4.1
Application of Proceeds; Turnover Provisions
.
All proceeds of Common Collateral
(including any interest earned thereon) resulting from the sale, collection or other disposition of
Common Collateral resulting from any Enforcement Action or that occurs after and during the
continuation of any Event of Default (as defined in the First Priority Documents), whether or not
pursuant to an Insolvency Proceeding, or during the pendency of any Insolvency Proceeding shall be
distributed as follows:
first
to the First Priority Representative for application to the
First Priority Obligations in accordance with the terms of the First Priority Documents, until the
First Priority Obligations Payment Date has occurred and
thereafter
, to the Second Priority
Representative for application in accordance with the terms of the Second Priority Documents.
Until the occurrence of the First Priority Obligations Payment Date, any Common Collateral,
including any such Common Collateral constituting proceeds, that may be received by any Second
Priority Secured Party in violation of this Agreement shall be segregated and held in trust and
promptly paid over to the First Priority Representative, for the benefit of the First Priority
Secured Parties, in the same form as received, with any necessary endorsements, and each Second
Priority Secured Party hereby authorizes the First Priority Representative to make any such
endorsements as agent for the Second Priority Representative (which authorization, being coupled
with an interest, is irrevocable).
4.2
Releases of Second Priority Lien
. (a) Upon (i) any release, sale or other
disposition of Common Collateral permitted pursuant to the terms of the First Priority Documents
that results in the release of the First Priority Lien on any Common Collateral (including any sale
or other disposition pursuant to any Enforcement Action) or (ii) any other release of Common
Collateral from the Lien under the First Priority Security Documents that is permitted pursuant to
the terms of the First Priority Documents (in each case other than any release of Common Collateral
from the Lien under the First Priority Security Documents made following or in connection with the
indefeasible payment in cash in full (or cash collateralization or defeasance in accordance with
the terms of the First Priority Documents or receipt of other consideration acceptable to the First
Priority Secured Parties) of the First Priority Obligations, the terminations of all commitments to
extend credit under the First Priority Documents (including any obligations replacing, renewing or
refinancing any previously existing First Priority Obligations) and any outstanding letters of
credit or similar instruments issued under the First Priority Documents (other than such as have
been cash collateralized or defeased in accordance with the terms of the First Priority Security
Documents)), the Second Priority Lien on such Common Collateral (excluding any portion of the
proceeds of such Common Collateral remaining after the First Priority Obligations Payment Date
occurs) shall be automatically and unconditionally released, as and when, but only to the extent
such First Priority Liens on such Common Collateral are released, with no further consent or action
of any Person.
(b) The Second Priority Representative shall promptly execute and deliver such release
documents and instruments and shall take such further actions as the First Priority Representative
(or, with the consent of the First Priority Representative, the Company) shall request to evidence
any release
13
of the Second Priority Lien described in paragraph (a). The Second Priority Representative
hereby appoints the First Priority Representative and any officer or duly authorized person of the
First Priority Representative, with full power of substitution, as its true and lawful
attorney-in-fact with full irrevocable power of attorney in the place and stead of the Second
Priority Representative and in the name of the Second Priority Representative or in the First
Priority Representatives own name, from time to time, in the First Priority Representatives sole
discretion, for the purposes of carrying out the terms of this Section 4.2, to take any and all
appropriate action and to execute and deliver any and all documents and instruments as may be
necessary or desirable to accomplish the purposes of this Section 4.2, including any financing
statements, endorsements, assignments, releases or other documents or instruments of transfer
(which appointment, being coupled with an interest, is irrevocable).
4.3
Inspection Rights and Insurance
. (a) Any First Priority Secured Party and its
representatives and invitees may at any time inspect, repossess, remove and otherwise deal with the
Common Collateral in accordance with the terms of the First Priority Documents, and the First
Priority Representative may advertise and conduct public auctions or private sales of the Common
Collateral, in each case without notice to, the involvement of or interference by any Second
Priority Secured Party or liability to any Second Priority Secured Party.
(b) Until the First Priority Obligations Payment Date has occurred, the First Priority
Representative will have the sole and exclusive right (i) to be named as additional insured and
loss payee under any insurance policies maintained from time to time by any Loan Party (except that
the Second Priority Representative shall have the right to be named as additional insured and loss
payee so long as its second lien status is identified in a manner satisfactory to the First
Priority Representative), (ii) to adjust or settle any insurance policy or claim covering the
Common Collateral in the event of any loss thereunder in accordance with the terms of the First
Priority Documents and (iii) to approve any award granted in any condemnation or similar proceeding
affecting the Common Collateral in accordance with the terms of the First Priority Documents.
4.4
Rights as Unsecured Creditors
.
Notwithstanding anything to the contrary in this
Agreement, the Second Priority Representative and the other Second Priority Secured Parties may
exercise rights and remedies as unsecured creditors against the Company or any other Loan Party
that has guaranteed the Second Priority Obligations in accordance with the terms of the Second
Priority Documents, including the acceleration of any Indebtedness or other obligations owing under
the Second Priority Documents or the demand for payment under the guarantee in respect thereof, in
each case in accordance with the terms of the applicable Second Priority Documents and applicable
law and not otherwise inconsistent with the terms of this Agreement. Nothing in this Agreement
shall prohibit the receipt by any Second Priority Representative or any other Second Priority
Secured Party of the required payments of interest and principal so long as such receipt is not the
direct or indirect result of (a) the exercise by any Second Priority Representative or any other
Second Priority Secured Party of rights or remedies as a secured creditor in respect of Common
Collateral or other collateral or (b) the enforcement in contravention of this Agreement of any
Lien in respect of Second Priority Liens held by any of them. Nothing in this Agreement impairs or
otherwise adversely affects any rights or remedies the First Priority Representative or the other
First Priority Secured Parties may have with respect to the First Priority Collateral.
SECTION 5 .
INSOLVENCY PROCEEDINGS
.
5.1
Filing of Motions
. Until the First Priority Obligations Payment Date has
occurred, the Second Priority Representative agrees on behalf of itself and the other Second
Priority Secured Parties
14
that no Second Priority Secured Party shall, in or in connection with any Insolvency
Proceeding involving any Loan Party, file any pleading or motion, take any position at any hearing
or proceeding of any nature, or otherwise take any action whatsoever, in each case in respect of
any of the Common Collateral, including with respect to the determination of any Liens or claims
(including the validity, priority and enforceability thereof) held by the First Priority
Representative or any other First Priority Secured Party or the value of any claims of such parties
under Section 506(a) of the Bankruptcy Code or otherwise;
provided
that (a) in any
Insolvency Proceeding involving any Loan Party, the Second Priority Representative may file a proof
of claim or statement of interest with respect to the applicable Second Priority Liens and (b) the
Second Priority Representative may take any such action (not adverse to the First Priority Liens on
the Common Collateral securing the First Priority Obligations, or the rights of either the First
Priority Representative or the other First Priority Secured Parties to exercise remedies in respect
thereof) to the extent required to create, prove, perfect, preserve or protect (but not enforce)
its rights in, and perfection and priority of its Liens on, the Common Collateral, in each case of
(a) and (b) above, to the extent such action is not inconsistent with, and could not result in a
resolution inconsistent with, the terms of this Agreement.
5.2
Financing Matters
. If any Loan Party becomes subject to any Insolvency
Proceeding, and if the First Priority Representative or any other First Priority Secured Parties
desire to consent (or not object) to the use of cash collateral under the Bankruptcy Code or any
other Bankruptcy Law or to provide financing to any Loan Party under the Bankruptcy Code or any
other Bankruptcy Law or to consent (or not object) to the provision of such financing (including
financing that primes or takes priority over existing Liens) to any Loan Party by any third party
(any such financing,
DIP Financing
), then the Second Priority Representative agrees, on
behalf of itself and the other Second Priority Secured Parties, that each Second Priority Secured
Party (a) will be deemed to have consented to, will raise no objection to, and will not support any
other Person objecting to, the use of such cash collateral or to such DIP Financing, (b) will not
request or accept adequate protection or any other relief in connection with the use of such cash
collateral or such DIP Financing except as set forth in Section 5.4, (c) will subordinate (and will
be deemed hereunder to have subordinated) the Second Priority Liens (i) to any replacement Liens
provided as adequate protection to the First Priority Secured Parties on the same terms as the
Second Priority Liens are subordinated to the First Priority Liens under this Agreement and (ii)(x)
to the Liens securing such DIP Financing, (y) to any carve-out agreed to by the First Priority
Representative or the other First Priority Secured Parties and (z) in the case of any Insolvency
Proceeding outside the United States, to any administrative or other charges granted in such
Insolvency Proceeding that are similar in nature to a carve-out and agreed to by the First
Priority Representative or the other First Priority Secured Parties, in the case of each of clauses
(ii) (x), (y) and (z), with such subordination to be on the same terms as the First Priority Liens
are subordinated thereto (and such subordination will not alter in any manner the terms of this
Agreement), (d) will be deemed to have consented to, and will raise no objection to, and will not
support any other Person objecting to (i) any motion for relief from the automatic stay or from any
injuction against foreclosure or enforcement in respect of the First Priority Obligations made by
the First Priority Representative or any First Priority Secured Party, (ii) any lawful exercise by
the First Priority Representative or any other First Priority Secured Party of the right to credit
bid any First Priority Obligations at any sale in foreclosure of First Priority Collateral or (iii)
any other request for judicial relief made in any court by the First Priority Representative or any
other First Priority Secured Party relating to the lawful enforcement of any First Priority Lien.
5.3
Relief From the Automatic Stay
. The Second Priority Representative agrees, on
behalf of itself and the other Second Priority Secured Parties, that none of them will seek relief
from the automatic stay or from any other stay in any Insolvency Proceeding or take any action in
derogation thereof, in each
15
case in respect of any Common Collateral, without the prior written consent of the First
Priority Representative and the Required Lenders under (and as defined in) the First Priority
Agreement.
5.4
Adequate Protection
. (a) The Second Priority Representative, on behalf of itself
and the other Second Priority Secured Parties, agrees that none of them shall object to, contest,
or support any other Person objecting to or contesting (i) any request by the First Priority
Representative or the other First Priority Secured Parties for adequate protection or any adequate
protection provided to the First Priority Representative or the other First Priority Secured
Parties or (ii) any objection by the First Priority Representative or any other First Priority
Secured Parties to any motion, relief, action or proceeding based on a claim of a lack of adequate
protection or (iii) the payment of interest, fees, expenses, costs, charges or other amounts to the
First Priority Representative or any other First Priority Secured Party under Section 506(b) or
506(c) of the Bankruptcy Code or otherwise.
(b) Notwithstanding anything contained in this Section and in Section 5.2(b) (but subject
to all other provisions of this Agreement, including Sections 5.2(a) and 5.3), in any Insolvency
Proceeding, (i) if the First Priority Secured Parties (or any subset thereof) are granted adequate
protection that includes additional collateral (with replacement Liens on such additional
collateral) and superpriority claims in connection with any DIP Financing or use of cash
collateral, then in connection with any such DIP Financing or use of cash collateral the Second
Priority Representative, on behalf of itself and any of the other Second Priority Secured Parties,
may seek or accept adequate protection consisting solely of (x) a replacement Lien on the same
additional collateral, subordinated to the Liens securing (1) such DIP Financing on the same terms
as the First Priority Liens are subordinated thereto (and such subordination will not alter in any
manner the terms of this Agreement), and (2) the First Priority Obligations on the same basis as
the other Liens securing the Second Priority Obligations are so subordinated to the First Priority
Obligations under this Agreement and (y) superpriority claims junior in all respects to the
superpriority claims granted to the First Priority Secured Parties, provided, however, that each
Second Priority Representative shall have irrevocably agreed, pursuant to Section 1129(a)(9) of the
Bankruptcy Code, on behalf of itself and each other Second Priority Secured Party, in any
stipulation or order granting such adequate protection, that such junior superpriority claims may
be paid under any plan of reorganization in any combination of cash, debt, equity or other property
having a value on the effective date of such plan equal to the allowed amount of such claims and
(ii) in the event the Second Priority Representative, on behalf of itself and the other Second
Priority Secured Parties, seeks or accepts adequate protection in accordance with clause (i) above
in the form of additional collateral, then the Second Priority Representative, on behalf of itself
or any of the other Second Priority Secured Parties, agrees that the First Priority Representative
shall also be granted a senior Lien on such additional collateral as security for the First
Priority Obligations and any such DIP Financing and that any Lien on such additional collateral
securing the Second Priority Obligations shall be subordinated to (A) the Liens on such collateral
securing the First Priority Obligations and any other Liens granted to the First Priority Secured
Parties as adequate protection on the same terms that the Liens securing the Second Priority
Obligations are subordinated to such First Priority Obligations under this Agreement and (B) (x)
the Liens on such collateral securing such DIP Financing (and all obligations relating thereto),
(y) any carve-out agreed to by the First Priority Representative or the other First Priority
Secured Parties and (z) in the case of any Insolvency Proceeding outside the United States, any
administrative or other charges granted in any Insolvency Proceeding that are similar in nature to
a carve-out and agreed to by the First Priority Representative or the other First Priority
Secured Parties, in the case of each of clauses (B) (x), (y) and (z), with such subordination to be
on the same terms as the Liens securing the First Priority Obligations are subordinated thereto
(and such subordination will not alter in any manner the terms of this Agreement). The Second
Priority Representative, on behalf of itself and the other Second Priority Secured Parties, agrees
that except as expressly set forth in this Section 5.4, and except for adequate
16
protection in the form of access to information to the extent such access is also made
available to the First Priority Representative on behalf of itself and the other First Priority
Secured Parties, none of them shall seek or accept adequate protection without the prior written
consent of the First Priority Representative.
(c) Neither the Second Priority Representative nor any other Second Priority Secured Party
shall oppose or seek to challenge any claim by the First Priority Representative or any other First
Priority Secured Party for allowance in any Insolvency Proceeding of First Priority Obligations
consisting of post-petition interest, fees or expenses. Regardless of whether any such claim for
post-petition interest, fees or expenses is allowed or allowable, and without limiting the
generality of the other provisions of this Agreement, this Agreement expressly is intended to
include and does include the rule of explicitness in that this Agreement expressly entitles the
First Priority Secured Parties, and is intended to provide the First Priority Secured Parties with
the right, to receive payment of all post-petition interest, fees or expenses through distributions
made pursuant to the provisions of this Agreement even though such interest, fees and expenses are
not allowed or allowable against the bankruptcy estate of the Company or any other Loan Party under
Section 502(b)(2) or Section 506(b) of the Bankruptcy Code or under any other provision of the
Bankruptcy Code or any other applicable law.
5.5
Avoidance Issues
. If any First Priority Secured Party is required in any
Insolvency Proceeding or otherwise to disgorge, turn over or otherwise pay to the bankruptcy
trustee or the estate of any Loan Party, because such amount was avoided or ordered to be paid or
disgorged for any reason, including without limitation because it was found to be a fraudulent or
preferential transfer, any amount (a
Recovery
), whether received as proceeds of security,
enforcement of any right of set-off or otherwise, then the First Priority Obligations shall be
reinstated to the extent of such Recovery and deemed to be outstanding as if such payment had not
occurred and the First Priority Obligations Payment Date, if it shall otherwise have occurred,
shall be deemed not to have occurred. If this Agreement shall have been terminated prior to such
Recovery, this Agreement shall be reinstated in full force and effect, and such prior termination
shall not diminish, release, discharge, impair or otherwise affect the obligations of the parties
hereto. The Second Priority Secured Parties agree that none of them shall be entitled to benefit
from any avoidance action affecting or otherwise relating to any distribution or allocation made in
accordance with this Agreement, whether by preference or otherwise, it being understood and agreed
that the benefit of such avoidance action otherwise allocable to them shall instead be allocated
and turned over for application in accordance with the priorities set forth in this Agreement.
5.6
Asset Dispositions in an Insolvency Proceeding
. Neither the Second Priority
Representative nor any other Second Priority Secured Party shall, in an Insolvency Proceeding or
otherwise, oppose any sale or other disposition of any assets of any Loan Party that is supported
by the First Priority Secured Parties, and the Second Priority Representative and each other Second
Priority Secured Party will be deemed to have consented under Section 363 of the Bankruptcy Code
(and otherwise) to any such sale or other disposition of assets supported by the First Priority
Secured Parties and to have released their Liens on such assets;
provided
, to the extent
such sale is to be free and clear of Liens, that the Liens securing the First Priority Obligations
and the Second Priority Obligations will attach to the proceeds of the sale on the same basis of
priority as the Liens released on the assets sold.
5.7
Separate Grants of Security and Separate Classification
. Each Second Priority
Secured Party acknowledges and agrees that (a) the grants of Liens pursuant to the First Priority
Security Documents and the Second Priority Security Documents constitute two separate and distinct
grants of Liens and (b) because of, among other things, their differing rights in the Common
Collateral, the Second Priority Obligations are fundamentally different from the First Priority
Obligations and must be separately classified in any plan of reorganization proposed or adopted in
an Insolvency Proceeding. To further
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effectuate the intent of the parties as provided in the immediately preceding sentence, if it
is held that the claims of the First Priority Secured Parties and Second Priority Secured Parties
in respect of the Common Collateral constitute only one class of secured claims (rather than
separate classes of senior and junior secured claims), then the Second Priority Secured Parties
hereby acknowledge and agree that all distributions shall be made as if there were separate classes
of senior and junior secured claims against the Loan Parties in respect of the Common Collateral
(with the effect being that, to the extent that the aggregate value of the Common Collateral is
sufficient (for this purpose ignoring all claims held by the Second Priority Secured Parties), the
First Priority Secured Parties shall be entitled to receive, in addition to amounts distributed to
them in respect of principal, pre-petition interest and other claims, all amounts owing in respect
of Post-Petition Interest before any distribution is made in respect of the claims held by the
Second Priority Secured Parties, with the Second Priority Secured Parties hereby acknowledging and
agreeing to turn over to the First Priority Secured Parties amounts otherwise received or
receivable by them to the extent necessary to effectuate the intent of this sentence, even if such
turnover has the effect of reducing the claim or recovery of the Second Priority Secured Parties),
and that, until turned over to the First Priority Secured Parties, such amounts will be held in
trust for the First Priority Secured Parties.
5.8
No Waivers of Rights of First Priority Secured Parties
. Nothing contained herein
shall prohibit or in any way limit the First Priority Representative or any other First Priority
Secured Party from objecting in any Insolvency Proceeding or otherwise to any action taken by any
Second Priority Secured Party not expressly permitted hereunder, including the seeking by any
Second Priority Secured Party of adequate protection (except as provided in Section 5.4) or the
asserting by any Second Priority Secured Party of any of its rights and remedies under the Second
Priority Documents or otherwise.
5.9
Plans of Reorganization
. No Second Priority Secured Party shall support or vote
in favor of any plan of reorganization (and each shall be deemed to have voted to reject any plan
of reorganization) unless such plan (a) pays off, in cash in full, all First Priority Obligations
or (b) is accepted by the class of holders of First Priority Obligations voting thereon.
5.10
Effectiveness in Insolvency Proceedings
. This Agreement, which the parties
hereto expressly acknowledge is a subordination agreement under section 510(a) of the Bankruptcy
Code, shall be effective before, during and after the commencement of an Insolvency Proceeding.
All references to any of the Company or any Loan Party herein shall apply to any trustee for such
Person and such Person as debtor in possession. The relative rights as to the Common Collateral
and other collateral and proceeds thereof shall continue after the filing thereof on the same basis
as prior to the date of the petition, subject to any court order approving the financing of, or use
of cash collateral by, any such Person.
5.11
Reorganization Securities
. If, in any Insolvency Proceeding, debt obligations of
the reorganized debtor secured by Liens upon any property of the reorganized debtor
(
Reorganization Securities
) are distributed, pursuant to a plan of reorganization or
similar dispositive restructuring plan, on account of the Second Priority Obligations, then the
provisions of this Agreement will survive the distribution of such debt obligations pursuant to
such plan and will apply with like effect to the Liens securing such debt obligations. In no event
shall the Second Priority Creditors be required to turn over to the First Priority Representative
or any other First Priority Secured Party any Reorganization Securities to the extent the same are
subject to this Section 5.11.
5.12
Post-Petition Claims
. None of the Second Priority Representative, the Trustee or
any Second Priority Secured Party shall oppose or seek to challenge any claim by the First Priority
Representative or any other First Priority Secured Party for allowance in any Insolvency Proceeding
of
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First Priority Obligations consisting of Post-Petition Interest or indemnities to the extent
of the value of the Liens in favor of the First Priority Representative and the other First
Priority Secured Parties, without regard to the existence of the Liens of the Second Priority
Representative on behalf of the Second Priority Secured Parties on the Common Collateral.
5.13
Waivers
. Until the First Priority Obligations Payment Date, the Second Priority
Representative, on behalf of itself and each Second Priority Secured Party, agrees that (a) it will
not assert or enforce any claim under Section 506(c) of the Bankruptcy Code senior to or on a
parity with the Liens securing the First Priority Obligations for costs or expenses of preserving
or disposing of any Common Collateral or other collateral and (b) waives any claim it may now or
hereafter have arising out of the election by any First Priority Creditor of the application of
Section 1111(b)(2) of the Bankruptcy Code.
SECTION 6.
SECOND PRIORITY DOCUMENTS AND FIRST PRIORITY DOCUMENTS
.
(a) Each Loan Party and the Second Priority Representative, on behalf of itself and the other
Second Priority Secured Parties, agrees that it shall not at any time execute or deliver any
amendment or other modification to any of the Second Priority Documents inconsistent with or in
violation of this Agreement.
(b) Each Loan Party and the First Priority Representative, on behalf of itself and the other
First Priority Secured Parties, agrees that it shall not at any time execute or deliver any
amendment or other modification to any of the First Priority Documents inconsistent with or in
violation of this Agreement.
(c) In the event the First Priority Representative enters into any amendment, waiver or
consent in respect of any of the First Priority Security Documents for the purpose of adding to, or
deleting from, or waiving or consenting to any departures from any provisions of, any First
Priority Security Document or changing in any manner the rights of any parties thereunder, then
such amendment, waiver or consent shall apply automatically to any comparable provision of the
Comparable Second Priority Security Document without the consent of or action by any Second
Priority Secured Party (with all such amendments, waivers and modifications subject to the terms
hereof);
provided
that (other than with respect to amendments, modifications or waivers
that secure additional extensions of credit and add additional secured creditors and do not violate
the express provisions of the Second Priority Agreements), (i) no such amendment, waiver or consent
shall have the effect of releasing assets subject to the Lien of any Second Priority Security
Document, except to the extent that a release of such Lien is permitted by Section 4.2 or change
the type of assets that constitute Collateral under any Second Priority Security Documents, (ii)
any such amendment, waiver or consent that materially and adversely affects the rights of the
Second Priority Secured Parties or affects the First Priority Secured Parties in a different manner
shall not apply to the Second Priority Security Documents without the consent of the Second
Priority Representative and (iii) notice of such amendment, waiver or consent shall be given to the
Second Priority Representative no later than 5 days after its effectiveness;
provided
that
the failure to give such notice shall not affect the effectiveness and validity thereof.
SECTION 7.
RELIANCE; WAIVERS; ETC.
7.1
Reliance
. The First Priority Documents are deemed to have been executed and
delivered, and all extensions of credit thereunder are deemed to have been made or incurred, in
reliance upon this Agreement. The Second Priority Representative, on behalf of it itself and the
other Second Priority Secured Parties, expressly waives all notice of the acceptance of and
reliance on this Agreement by the First Priority Secured Parties. The Second Priority Documents
are deemed to have been executed and
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delivered and all issuances of debt and other extensions of credit thereunder are deemed to
have been made or incurred, in reliance upon this Agreement. The First Priority Representative
expressly waives, on behalf of itself and all the other First Priority Secured Parties, all notices
of the acceptance of and reliance by the Second Priority Representative and the other Second
Priority Secured Parties.
7.2
No Warranties or Liability
.
The Second Priority Representative and the First
Priority Representative acknowledge and agree that neither has made any representation or warranty
with respect to the execution, validity, legality, completeness, collectibility or enforceability
of any other First Priority Document or any Second Priority Document. Except as otherwise provided
in this Agreement, the Second Priority Representative and the First Priority Representative will be
entitled to manage and supervise their respective extensions of credit to any Loan Party in
accordance with law and their usual practices, modified from time to time as they deem appropriate.
7.3
No Waivers
.
No right or benefit of any party hereunder shall at any time in any
way be prejudiced or impaired by any act or failure to act on the part of such party or any other
party hereto or by any noncompliance by any Loan Party with the terms and conditions of any of the
First Priority Documents or the Second Priority Documents.
SECTION 8.
OBLIGATIONS UNCONDITIONAL
.
8.1
First Priority Obligations Unconditional
.
All rights and interests of the First
Priority Secured Parties hereunder, and all agreements and obligations of the Second Priority
Secured Parties (and, to the extent applicable, the Loan Parties) hereunder, shall remain in full
force and effect irrespective of:
(a) any lack of validity or enforceability of any First Priority Document or any First
Priority Liens;
(b) any change in the time, place or manner of payment of, or in any other term of,
all or any portion of the First Priority Obligations, or any amendment, waiver or other
modification, whether by course of conduct or otherwise, or any refinancing, replacement,
refunding or restatement of any First Priority Document;
(c) prior to the First Priority Obligations Payment Date, any exchange, release,
voiding, avoidance or non-perfection of any security interest in any Common Collateral or
any other collateral, or any release, amendment, waiver or other modification, whether by
course of conduct or otherwise, or any refinancing, replacement, refunding or restatement of
all or any portion of the First Priority Obligations or any guarantee or guaranty thereof;
or
(d) any other circumstances that otherwise might constitute a defense available to, or
a discharge of, any Loan Party in respect of the First Priority Obligations, or of any
Second Priority Secured Party, or any Loan Party, to the extent applicable, in respect of
this Agreement.
8.2
Second Priority Obligations Unconditional
.
All rights and interests of the Second
Priority Secured Parties hereunder, and all agreements and obligations of the First Priority
Secured Parties (and, to the extent applicable, the Loan Parties) hereunder, shall remain in full
force and effect irrespective of:
20
(a) any lack of validity or enforceability of any Second Priority Document or any
Secured Priority Liens;
(b) any change in the time, place or manner of payment of, or in any other term of,
all or any portion of the Second Priority Obligations, or any amendment, waiver or other
modification, whether by course of conduct or otherwise, or any refinancing, replacement,
refunding or restatement of any Second Priority Document;
(c) any exchange, release, voiding, avoidance or non-perfection of any security
interest in any Common Collateral or any other collateral, or any release, amendment, waiver
or other modification, whether by course of conduct or otherwise, or any refinancing,
replacement, refunding or restatement of all or any portion of the Second Priority
Obligations or any guarantee or guaranty thereof; or
(d) any other circumstances that otherwise might constitute a defense available to, or
a discharge of, any Loan Party in respect of the Second Priority Obligations, or of any
First Priority Secured Party, or any Loan Party, to the extent applicable, in respect of
this Agreement.
SECTION 9 .
MISCELLANEOUS
.
9.1
Conflicts
. In the event of any conflict between the provisions of this Agreement
and the provisions of any First Priority Document or any Second Priority Document, the provisions
of this Agreement shall govern.
9.2
Continuing Nature of Provisions
.
This Agreement shall continue to be effective,
and shall not be revocable by any party hereto, until the First Priority Obligations Payment Date
shall have occurred, subject to Section 5.5. This is a continuing agreement and the First Priority
Secured Parties and the Second Priority Secured Parties may continue, at any time and without
notice to the other parties hereto, to extend credit and other financial accommodations, lend
monies and provide indebtedness to, or for the benefit of, any Company or any other Loan Party on
the faith hereof.
9.3
Amendments; Waivers
. (a) No amendment or modification of any of the provisions
of this Agreement shall be effective unless the same shall be in writing and signed by the First
Priority Representative and the Second Priority Representative, and, in the case of amendments or
modifications of Sections 3.5, 3.6, 9.5 or 9.6 that directly affect the rights or obligations of
any Loan Party, such Loan Party.
(b) It is understood that the First Priority Representative and the Second Priority
Representative, without the consent of any other First Priority Secured Party or Second Priority
Secured Party, may in their discretion determine that a supplemental agreement (which may take the
form of an amendment and restatement of this Agreement) is necessary or appropriate to facilitate
having additional indebtedness or other obligations (
Additional Debt
) of any of the Loan
Parties become First Priority Obligations or Second Priority Obligations, as the case may be, under
this Agreement, which supplemental agreement shall specify whether such Additional Debt constitutes
First Priority Obligations or Second Priority Obligations;
provided
that such Additional
Debt is permitted to be incurred by the First Priority Agreement and Second Priority Agreement then
extant, and is permitted by said Agreements to be subject to the provisions of this Agreement as
First Priority Obligations or Second Priority Obligations, as applicable.
21
(c) In addition, at the request of the Company, the First Priority Representative and the
Second Priority Representative agree to enter into any amendment to this Agreement or any new
intercreditor agreement in order to (1) facilitate Additional Debt becoming First Priority
Obligations or Second Priority Obligations to the extent such Obligations are permitted by the
First Priority Agreement and the Second Priority Agreement, with the Lien priority contemplated by
such amendment, (2) document the relationship among Second Priority Creditors pursuant to different
Second Priority Agreements, including, to the extent permitted under each extant First Priority
Agreement and Second Priority Agreement, the treatment of the Liens securing Second Priority
Obligations under any Additional Second Priority Agreement as equal and ratable with the Liens
securing the Second Priority Obligations under the Existing Second Priority Agreement or any other
Additional Second Priority Agreement and (3) document the relationship between the First Priority
Creditors and the Second Priority Creditors in case any then existing First Priority Agreement or
Second Priority Agreement is refinanced or replaced or the First Priority Representative or the
Second Priority Representative is replaced;
provided
, that, in any case, the terms of such
amendment or new agreement will contain terms substantially the same as the terms contained in this
Agreement.
9.4
Information Concerning Financial Condition of the Company and the other Loan
Parties
.
Each of the Second Priority Representative and the First Priority Representative
hereby assume responsibility for keeping itself informed of the financial condition of the Company
and each of the other Loan Parties and all other circumstances bearing upon the risk of nonpayment
of the First Priority Obligations or the Second Priority Obligations. The Second Priority
Representative and the First Priority Representative hereby agree that no party shall have any duty
to advise any other party of information known to it regarding such condition or any such
circumstances. In the event the Second Priority Representative or the First Priority
Representative, in its sole discretion, undertakes at any time or from time to time to provide any
information to any other party to this Agreement, it shall be under no obligation (a) to provide
any such information to such other party or any other party on any subsequent occasion, (b) to
undertake any investigation or (c) to disclose any other information.
9.5
Governing Law
. This Agreement shall be construed in accordance with and governed
by the law of the State of New York, except as otherwise required by mandatory provisions of law
and except to the extent that remedies provided by the laws of any jurisdiction other than the
State of New York are governed by the laws of such jurisdiction.
9.6
Submission to Jurisdiction
. (a) Each First Priority Secured Party, each Second
Priority Secured Party and each Loan Party hereby irrevocably and unconditionally submits, for
itself and its property, to the exclusive jurisdiction of the Supreme Court of the State of New
York sitting in New York County and of the United States District Court of the Southern District of
New York, and any appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement, or for recognition or enforcement of any judgment pursuant to any such
action or proceeding, and each such party hereby irrevocably and unconditionally agrees that all
claims in respect of any such action or proceeding may be heard and determined in such New York
State or, to the extent permitted by law, in such Federal court. Each such party agrees that a
final judgment in any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this
Agreement shall affect any right that any First Priority Secured Party or Second Priority Secured
Party may otherwise have to bring any action or proceeding against any Loan Party or its properties
in the courts of any jurisdiction.
(b) Each First Priority Secured Party, each Second Priority Secured Party and each Loan Party
hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively
do so,
22
(i) any objection it may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Agreement in any court referred to in paragraph (a)
of this Section and (ii) the defense of an inconvenient forum to the maintenance of such action or
proceeding.
(c) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 9.7. Nothing in this Agreement will affect the right of any party
to this Agreement to serve process in any other manner permitted by law.
9.7
Notices
.
Unless otherwise specifically provided herein, any notice or other
communication herein required or permitted to be given shall be in writing and may be personally
served, telecopied, or sent by overnight express courier service or United States mail and shall be
deemed to have been given when delivered in person or by courier service, upon receipt of a
telecopy or five days after deposit in the United States mail (certified, with postage prepaid and
properly addressed). For the purposes hereof, the address of (a) each of the Company, the First
Priority Representative, the Trustee and the Second Priority Representative (until notice of a
change thereof is delivered as provided in this Section) shall be as set forth in the First
Priority Agreement or the Second Priority Agreement, as applicable, and (b) any other party shall
be in care of the Company as so set forth in clause (a), or, as to each party, at such other
address as may be designated by such party in a written notice to all of the other parties.
9.8
Successors and Assigns
.
This Agreement shall be binding upon and inure to the
benefit of each of the parties hereto and each of the First Priority Secured Parties and Second
Priority Secured Parties and their respective successors and assigns, and nothing herein is
intended, or shall be construed, to give any other Person any right, remedy or claim under, to or
in respect of this Agreement or any Common Collateral.
9.9
Headings
. Section headings used herein are for convenience of reference only, are
not part of this Agreement and shall not affect the construction of, or be taken into consideration
in interpreting, this Agreement.
9.10
Severability
.
Any provision of this Agreement held to be invalid, illegal or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such invalidity, illegality or unenforceability without affecting the validity, legality and
enforceability of the remaining provisions hereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other jurisdiction.
9.11
Counterparts; Integration; Effectiveness
. This Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract.
Delivery of an executed counterpart of a signature page of this Agreement by facsimile or other
electronic transmission shall be effective as delivery of a manually executed counterpart of this
Agreement. This Agreement shall become effective when it shall have been executed by each party
hereto.
9.12
WAIVER OF JURY TRIAL
.
EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AND FOR ANY
COUNTERCLAIM THEREIN.
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9.13
Additional Loan Parties
. The Company shall cause each Person that becomes a Loan
Party after the date hereof (other than any such Loan Party that does not grant any Liens to secure
any of the Second Priority Obligations, until such time as such Loan Party does grant any such
Liens) to become a party to this Agreement by executing and delivering a supplement to this
Agreement in form and substance reasonably satisfactory to the First Priority Representative and
the Second Priority Representative.
9.14
Representatives
. (a) For the avoidance of doubt, it is understood and agreed
that BofA is entering into this Agreement in its capacity as administrative and collateral agent
under the Existing First Priority Agreement and the provisions of Article XII of the Existing First
Priority Agreement applicable to BofA as administrative and collateral agent thereunder shall also
apply to BofA as First Priority Representative hereunder.
(b) In connection with its execution of this Agreement and its actions hereunder, each of the
First Priority Representative and the Second Priority Representative shall be entitled to all
rights, privileges, benefits, protections, immunities and indemnities provided to it as
administrative agent and collateral agent under the First Priority Documents and as Trustee under
the Second Priority Documents, respectively.
9.15
Subrogation
. The Second Priority Representative, for itself and on behalf of the
other Second Priority Secured Parties, hereby waives any rights of subrogation it or they may
acquire as a result of any payment hereunder until the First Priority Obligations Payment Date has
occurred;
provided
,
however
, that, as between the Company and the other Loan
Parties, on the one hand, and the Second Priority Secured Parties, on the other hand, any such
payment that is paid over to the First Priority Representative pursuant to this Agreement shall be
deemed not to reduce any of the Second Priority Obligations unless and until (and then only to the
extent that) the First Priority Obligations Payment Date has occurred and the First Priority
Representative delivers any such payment to the Second Priority Representative.
[
Remainder of Page Intentionally Left Blank
]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
written above.
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BANK OF AMERICA, N.A., as First Priority
Representative for and on behalf of the First Priority
Secured Parties
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by
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/s/ Philip Nomura
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Name:
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Philip Nomura
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Title:
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Vice President
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U.S. NATIONAL BANK ASSOCIATION, as Second
Priority Representative for and on behalf of the Second
Priority Secured Parties
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by
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/s/ Donald T. Hurrelbrink
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Name:
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Donald T. Hurrelbrink
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Title:
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Vice President
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COMMERCIAL VEHICLE GROUP, INC.
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By:
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/s/ Chad M. Utrup
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Name:
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Chad M. Utrup
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Title:
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Chief Financial Officer
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NATIONAL SEATING COMPANY
CVG CS LLC
MONONA CORPORATION
MONONA WIRE CORPORATION
MONONA (MEXICO) HOLDINGS LLC
TRIM SYSTEMS, INC.
TRIM SYSTEMS OPERATING CORP.
CABARRUS PLASTICS, INC.
CVG OREGON, LLC
CVS HOLDINGS, INC.
SPRAGUE DEVICES, INC.
MAYFLOWER VEHICLE SYSTEMS, LLC
CVG MANAGEMENT CORPORATION
CVG EUROPEAN HOLDINGS, LLC
CVG LOGISTICS, LLC
CVG ALABAMA LLC
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By:
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/s/ Chad M. Utrup
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Name:
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Chad M. Utrup
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Title:
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Chief Financial Officer
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