EX-10.1 2 dex101.htm CREDIT AGREEMENT Credit Agreement

Exhibit 10.1

[Execution Version]


[Published CUSIP Number:                                 ]

$500,000,000

CREDIT AGREEMENT

Dated as of June 7, 2006

among

VERISIGN, INC.,

and

CERTAIN SUBSIDIARIES

as Borrowers,

BANK OF AMERICA, N.A.,

as Administrative Agent, Swing Line Lender and L/C Issuer,

and

The Other Lenders Party Hereto

CITIBANK, N.A.,

as Syndication Agent

JPMORGAN CHASE BANK, N.A.,

KEYBANK NATIONAL ASSOCIATION

and

U.S. BANK NATIONAL ASSOCIATION,

as Co-Documentation Agents

BANC OF AMERICA SECURITIES LLC

and

CITIGROUP GLOBAL MARKETS INC.,

as Joint Lead Arrangers and Joint Book Managers

 


LOGO


TABLE OF CONTENTS

 

          Page

ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS

   1

1.01

  

Defined Terms

   1

1.02

  

Other Interpretive Provisions

   25

1.03

  

Accounting Terms

   26

1.04

  

Rounding

   26

1.05

  

Exchange Rates; Currency Equivalents

   27

1.06

  

Additional Alternative Currencies

   27

1.07

  

Change of Currency

   28

1.08

  

Times of Day

   28

1.09

  

Letter of Credit Amounts

   28

ARTICLE II. THE COMMITMENTS AND CREDIT EXTENSIONS

   29

2.01

  

Committed Loans

   29

2.02

  

Borrowings, Conversions and Continuations of Committed Loans

   29

2.03

  

Bid Loans

   31

2.04

  

Letters of Credit

   34

2.05

  

Swing Line Loans

   43

2.06

  

Prepayments

   45

2.07

  

Termination or Reduction of Commitments

   46

2.08

  

Repayment of Loans

   47

2.09

  

Interest

   47

2.10

  

Fees

   48

2.11

  

Computation of Interest and Fees

   48

2.12

  

Evidence of Debt

   49

2.13

  

Payments Generally; Administrative Agent’s Clawback

   49

2.14

  

Sharing of Payments by Lenders

   51

2.15

  

Designated Borrowers

   52

2.16

  

Increase in Commitments

   53

ARTICLE III. TAXES, YIELD PROTECTION AND ILLEGALITY

   54

3.01

  

Taxes

   54

3.02

  

Illegality

   57

3.03

  

Inability to Determine Rates

   57

3.04

  

Increased Costs; Reserves on Eurocurrency Rate Loans

   58

3.05

  

Compensation for Losses

   59

3.06

  

Mitigation Obligations; Replacement of Lenders

   60

3.07

  

Survival

   60

ARTICLE IV. CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

   61

4.01

  

Conditions of Initial Credit Extension

   61

4.02

  

Conditions to all Credit Extensions

   62

ARTICLE V. REPRESENTATIONS AND WARRANTIES

   63

5.01

  

Existence, Qualification and Power

   63

5.02

  

Authorization; No Contravention

   63


TABLE OF CONTENTS (continued)

 

          Page

5.03

  

Governmental Authorization; Other Consents

   63

5.04

  

Binding Effect

   64

5.05

  

Financial Statements; No Material Adverse Effect

   64

5.06

  

Litigation

   64

5.07

  

No Default

   64

5.08

  

Ownership of Property; Liens

   65

5.09

  

Environmental Compliance

   65

5.10

  

Insurance

   65

5.11

  

Taxes

   65

5.12

  

ERISA Compliance

   65

5.13

  

Material Domestic Subsidiaries; Equity Interests

   66

5.14

  

Margin Regulations; Investment Company Act

   66

5.15

  

Disclosure

   66

5.16

  

Compliance with Laws

   66

5.17

  

Taxpayer Identification Number; Other Identifying Information

   67

5.18

  

Intellectual Property; Licenses, Etc.

   67

5.19

  

Solvency

   67

5.20

  

Representations as to Foreign Obligors

   67

ARTICLE VI. AFFIRMATIVE COVENANTS

   68

6.01

  

Financial Statements

   68

6.02

  

Certificates; Other Information

   69

6.03

  

Notices

   70

6.04

  

Payment of Obligations

   71

6.05

  

Preservation of Existence, Etc.

   71

6.06

  

Maintenance of Properties

   71

6.07

  

Maintenance of Insurance

   71

6.08

  

Compliance with Laws

   71

6.09

  

Books and Records

   71

6.10

  

Inspection Rights

   72

6.11

  

Use of Proceeds

   72

6.12

  

Approvals and Authorizations

   72

6.13

  

Additional Subsidiary Guarantors

   72

ARTICLE VII. NEGATIVE COVENANTS

   72

7.01

  

Liens

   72

7.02

  

Investments

   74

7.03

  

Indebtedness

   74

7.04

  

Fundamental Changes

   75

7.05

  

Dispositions

   75

7.06

  

Restricted Payments

   76

7.07

  

Change in Nature of Business

   77

7.08

  

Transactions with Affiliates

   77

7.09

  

Burdensome Agreements

   77

7.10

  

Use of Proceeds

   78

7.11

  

Financial Covenants

   78

 

ii


TABLE OF CONTENTS (continued)

 

          Page

ARTICLE VIII. EVENTS OF DEFAULT AND REMEDIES

   79

8.01

  

Events of Default

   79

8.02

  

Remedies Upon Event of Default

   81

8.03

  

Application of Funds

   81

ARTICLE IX. ADMINISTRATIVE AGENT

   82

9.01

  

Appointment and Authority

   82

9.02

  

Rights as a Lender

   82

9.03

  

Exculpatory Provisions

   82

9.04

  

Reliance by Administrative Agent

   83

9.05

  

Delegation of Duties

   84

9.06

  

Resignation of Administrative Agent

   84

9.07

  

Non-Reliance on Administrative Agent and Other Lenders

   85

9.08

  

No Other Duties, Etc.

   85

9.09

  

Administrative Agent May File Proofs of Claim

   85

9.10

  

Guaranty Matters

   86

ARTICLE X. MISCELLANEOUS

   86

10.01

  

Amendments, Etc.

   86

10.02

  

Notices; Effectiveness; Electronic Communication

   87

10.03

  

No Waiver; Cumulative Remedies

   89

10.04

  

Expenses; Indemnity; Damage Waiver

   89

10.05

  

Payments Set Aside

   91

10.06

  

Successors and Assigns

   91

10.07

  

Treatment of Certain Information; Confidentiality

   96

10.08

  

Right of Setoff

   97

10.09

  

Interest Rate Limitation

   97

10.10

  

Counterparts; Integration; Effectiveness

   97

10.11

  

Survival of Representations and Warranties

   98

10.12

  

Severability

   98

10.13

  

Replacement of Lenders

   98

10.14

  

Governing Law; Jurisdiction; Etc.

   99

10.15

  

Waiver of Jury Trial

   100

10.16

  

Time is of the Essence

   100

10.17

  

California Judicial Reference

   100

10.18

  

No Advisory or Fiduciary Responsibility

   100

10.19

  

USA PATRIOT Act Notice

   101

10.20

  

Judgment Currency

   101

SIGNATURES

  

 

iii


SCHEDULES

 

1.01

  

Mandatory Cost Formulae

2.01

  

Commitments and Applicable Percentages

5.06

  

Litigation

5.09

  

Environmental Matters

5.13

  

Material Domestic Subsidiaries; Other Equity Investments

10.02

  

Administrative Agent’s Office; Certain Addresses for Notices

10.06

  

Processing and Recordation Fees

EXHIBITS

Form of

 

A

  

Committed Loan Notice

B-1

  

Bid Request

B-2

  

Competitive Bid

C

  

Swing Line Loan Notice

D

  

Note

E

  

Compliance Certificate

F

  

Assignment and Assumption

G

  

Company Guaranty

H

  

Subsidiary Guaranty

I

  

Designated Borrower Request and Assumption Agreement

J

  

Designated Borrower Notice

K

  

Opinion Matters


CREDIT AGREEMENT

This CREDIT AGREEMENT (“Agreement”) is entered into as of June 7, 2006, among VERISIGN, INC., a Delaware corporation (the “Company”), certain Subsidiaries of the Company party hereto pursuant to Section 2.15 (each a “Designated Borrower” and, together with the Company, the “Borrowers” and, each a “Borrower”), each lender from time to time party hereto (collectively, the “Lenders” and individually, a “Lender”), and BANK OF AMERICA, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

The Company has requested that the Lenders provide a revolving credit, competitive bid and letter of credit facility, and the Lenders are willing to do so on the terms and conditions set forth herein.

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

ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS

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

Absolute Rate” means a fixed rate of interest expressed in multiples of 1/100th of one basis point.

Absolute Rate Loan” means a Bid Loan that bears interest at a rate determined with reference to an Absolute Rate.

Acquisition” means any transaction or series of related transactions for the purpose of or resulting, directly or indirectly, in (a) the acquisition of all or substantially all of the assets of a Person, or of any business or division of a Person, (b) the acquisition of in excess of 50% of the capital stock, partnership interests, membership interests or equity of any Person, or otherwise causing any Person to become a Subsidiary, or (c) a merger or consolidation or any other combination with another Person (other than a Person that is a Subsidiary of the Company).

Actual Knowledge” means, with respect to any information or event, that a Responsible Officer of the Company has actual knowledge of such information or event.

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

Administrative Agent’s Office” means, with respect to any currency, the Administrative Agent’s address and, as appropriate, account as set forth on Schedule 10.02 with respect to such currency, or such other address or account with respect to such currency as the Administrative Agent may from time to time notify to the Company and the Lenders.

Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the Administrative Agent.

 

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

Agent/BAS Fee Letter” means the letter agreement, dated April 20, 2006, between the Company, BAS and the Administrative Agent.

Aggregate Commitments” means the Commitments of all the Lenders.

Agreement” means this Credit Agreement.

Alternative Currency” means each of Euro, Sterling, Yen and each other currency (other than Dollars) that is approved in accordance with Section 1.06.

Alternative Currency Equivalent” means, at any time, with respect to any amount denominated in Dollars, the equivalent amount thereof in the applicable Alternative Currency as determined by the Administrative Agent or the L/C Issuer, as the case may be, at such time on the basis of the Spot Rate (determined in respect of the most recent Revaluation Date) for the purchase of such Alternative Currency with Dollars.

Alternative Currency Sublimit” means an amount equal to the lesser of the Aggregate Commitments and $100,000,000. The Alternative Currency Sublimit is part of, and not in addition to, the Aggregate Commitments.

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

Applicable Rate” means, the following percentages per annum, based upon the Consolidated Leverage Ratio as set forth in the most recent Compliance Certificate received by the Administrative Agent pursuant to Section 6.02(b):

Applicable Rate

 

Pricing
Level

   Consolidated
Leverage Ratio
   Facility
Fee
   

Letter of Credit

Fee

    Eurocurrency
Rate
    Base
Rate
 

I

   £1.00    0.125 %   0.500 %   0.500 %   0.000 %

II

   >1.00 but £1.50    0.150 %   0.600 %   0.600 %   0.000 %

III

   >1.50 but £2.00    0.175 %   0.700 %   0.700 %   0.000 %

IV

   >2.00 but £2.50    0.200 %   0.8000     0.800 %   0.000 %

V

   >2.50    0.225 %   1.025 %   1.025 %   0.000 %

 

2


Any increase or decrease in the Applicable Rate resulting from a change in the Consolidated Leverage Ratio shall become effective as of the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to Section 6.02(b); provided, however, that if a Compliance Certificate is not delivered when due in accordance with such Section, then Pricing Level V shall apply as of the first Business Day after the date on which such Compliance Certificate was required to have been delivered, and shall continue to so apply to and including the date on which such Compliance Certificate is so delivered (and thereafter the Pricing Level otherwise determined in accordance with this definition shall apply). The Applicable Rate in effect from the Closing Date through the first Business Day immediately following the date on which a Compliance Certificate is first delivered (or required to be delivered) following June 30, 2006 shall be determined based upon Pricing Level I.

Applicable Time” means, with respect to any borrowings and payments in any Alternative Currency, the local time in the place of settlement for such Alternative Currency as may be determined by the Administrative Agent or the L/C Issuer, as the case may be, to be necessary for timely settlement on the relevant date in accordance with normal banking procedures in the place of payment.

Applicant Borrower” has the meaning specified in Section 2.15.

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

Arrangers” means BAS and Citigroup.

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

Assignment and Assumption” means an assignment and assumption entered into by a Lender and an assignee (with the consent of any party whose consent is required by Section 10.06(b), and accepted by the Administrative Agent, in substantially the form of Exhibit F or any other form approved by the Administrative Agent.

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

Audited Financial Statements” means the audited consolidated balance sheet of the Company and its Subsidiaries for the fiscal year ended December 31, 2005, and the related consolidated statements of operations, stockholders’ equity and cash flows for such fiscal year of the Company and its Subsidiaries, including the notes thereto.

Availability Period” means the period from and including the Closing Date to the earliest of (a) the Maturity Date, (b) the date of termination of the Aggregate Commitments pursuant to Section

 

3


2.07, and (c) the date of termination of the commitment of each Lender to make Loans and of the obligation of the L/C Issuer to make L/C Credit Extensions pursuant to Section 8.02.

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

BAS” means Banc of America Securities LLC, in its capacity as joint lead arranger and joint book manager.

Base Rate” means for any day a fluctuating rate per annum equal to the higher of (a) the Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate.” The “prime rate” is a rate set by Bank of America based upon various factors including Bank of America’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above, or below such announced rate. Any change in such 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 Committed Loan” means a Committed Loan that is a Base Rate Loan.

Base Rate Loan” means a Loan that bears interest based on the Base Rate. All Base Rate Loans shall be denominated in Dollars.

Bid Borrowing” means a borrowing consisting of simultaneous Bid Loans of the same Type from each of the Lenders whose offer to make one or more Bid Loans as part of such borrowing has been accepted under the auction bidding procedures described in Section 2.03.

Bid Loan” has the meaning specified in Section 2.03(a).

Bid Loan Lender” means, in respect of any Bid Loan, the Lender making such Bid Loan to a Borrower.

Bid Loan Sublimit” means an amount equal to $100,000,000. The Bid Loan Sublimit is part of, and not in addition to, the Aggregate Commitments.

Bid Request” means a written request for one or more Bid Loans substantially in the form of Exhibit B-1.

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

Borrower Materials” has the meaning specified in Section 6.02.

Borrowing” means a Committed Borrowing, a Bid Borrowing or a Swing Line Borrowing, as the context may require.

Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks are authorized to close under the Laws of, or are in fact closed in, the state where the Administrative Agent’s Office with respect to Obligations denominated in Dollars is located and:

(a) if such day relates to any interest rate settings as to a Eurocurrency Rate Loan denominated in Dollars, any fundings, disbursements, settlements and payments in Dollars

 

4


in respect of any such Eurocurrency Rate Loan, or any other dealings in Dollars to be carried out pursuant to this Agreement in respect of any such Eurocurrency Rate Loan, means any such day on which dealings in deposits in Dollars are conducted by and between banks in the London interbank eurodollar market;

(b) if such day relates to any interest rate settings as to a Eurocurrency Rate Loan denominated in Euro, any fundings, disbursements, settlements and payments in Euro in respect of any such Eurocurrency Rate Loan, or any other dealings in Euro to be carried out pursuant to this Agreement in respect of any such Eurocurrency Rate Loan, means a TARGET Day;

(c) if such day relates to any interest rate settings as to a Eurocurrency Rate Loan denominated in a currency other than Dollars or Euro, means any such day on which dealings in deposits in the relevant currency are conducted by and between banks in the London or other applicable offshore interbank market for such currency; and

(d) if such day relates to any fundings, disbursements, settlements and payments in a currency other than Dollars or Euro in respect of a Eurocurrency Rate Loan denominated in a currency other than Dollars or Euro, or any other dealings in any currency other than Dollars or Euro to be carried out pursuant to this Agreement in respect of any such Eurocurrency Rate Loan (other than any interest rate settings), means any such day on which banks are open for foreign exchange business in the principal financial center of the country of such currency.

Cash Collateralize” has the meaning specified in Section 2.04(g).

Change in Law” means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation or application thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof or (c) the making or issuance of any request, guideline or directive (whether or not having the force of law) by any such Governmental Authority.

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

(a) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, directly or indirectly, of 35% or more of the equity securities of the Company entitled to vote for members of the board of directors or equivalent governing body of the Company on a fully-diluted basis; or

(b) during any period of 12 consecutive months, a majority of the members of the board of directors or other equivalent governing body of the Company cease to be composed of individuals (i) who were members of that board or equivalent governing body on the first day of such period, (ii) whose election or nomination to that board or equivalent governing body was approved by individuals referred to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body or (iii) whose election or nomination to that board or other equivalent governing body was approved by individuals

 

5


referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body.

Citigroup” means Citigroup Global Markets Inc., in its capacity as joint lead arranger and joint book manager.

Citigroup Fee Letter” means the letter agreement, dated April 20, 2006, between the Company and Citigroup.

Closing Date” means the first date all the conditions precedent in Section 4.01 are satisfied or waived in accordance with Section 10.01.

Code” means the U.S. Internal Revenue Code of 1986.

Commitment” means, as to each Lender, its obligation to (a) make Committed Loans to the Borrowers pursuant to Section 2.01, (b) purchase participations in L/C Obligations, and (c) purchase participations in Swing Line Loans, in an aggregate principal amount at any one time outstanding not to exceed the Dollar amount set forth opposite such Lender’s name on Schedule 2.01 or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement.

Committed Borrowing” means a borrowing consisting of simultaneous Committed Loans of the same Type, in the same currency and, in the case of Eurocurrency Committed Rate Loans, having the same Interest Period made by each of the Lenders pursuant to Section 2.01.

Committed Loan” has the meaning specified in Section 2.01.

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

Company” has the meaning specified in the introductory paragraph hereto.

Company Guaranty” means the Company Guaranty made by the Company in favor of the Administrative Agent and the Lenders, substantially in the form of Exhibit G.

Competitive Bid” means a written offer by a Lender to make one or more Bid Loans, substantially in the form of Exhibit B-2, duly completed and signed by a Lender.

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

Consolidated EBITDA” means, for any period, for the Company and its Subsidiaries on a consolidated basis, an amount equal to Consolidated Net Income for such period plus the following to the extent deducted (and not added back) in calculating such Consolidated Net Income: (i) Consolidated Interest Charges for such period, (ii) the provision for Federal, state, local and foreign income taxes payable by the Company and its Subsidiaries for such period, (iii) depreciation and amortization expense, (iv) other extraordinary or non-recurring expenses and charges of the Company and its Subsidiaries reducing such Consolidated Net Income which do not represent a cash item in such period or any future period, less extraordinary or non-recurring

 

6


gains of the Company and its Subsidiaries increasing such Consolidated Net Income (excluding any non-cash gain to the extent it represents the reversal of an accrual or reserve for a potential cash item that reduced Consolidated EBITDA in any prior period), (v) non-cash charges or expenses related to equity plans or stock option awards, (vi) non-cash charges or expenses relating to the impairment of property, plant and equipment, goodwill or other intangible assets in such period, (vii) non-recurring cash charges or expenses in connection with Dispositions and discontinued operations, and (viii) cash and non-cash charges or expenses incurred in connection with Acquisitions, provided that in the case of cash charges or expenses, such charges or expenses shall only be added to the extent that such charges or expenses arise from expenses which would have been capitalized, and would not have represented an expense in such period, under GAAP as in effect on the date of this Agreement; provided, however, that solely for the purpose of the computations of the Consolidated Leverage Ratio and the Consolidated Interest Coverage Ratio, if there has occurred an Acquisition or Disposition during the relevant period, Consolidated EBITDA shall be calculated, at the option of the Company, on a Pro Forma Basis (as defined below) pursuant to this definition.

For purposes of this definition, “Pro Forma Basis” means, (i) with respect to the preparation of pro forma financial statements for the purpose of the adjustment to Consolidated EBITDA relating to any Acquisition and for any other purpose related to any Acquisition, a pro forma on the basis that (A) any Indebtedness incurred or assumed in connection with such Acquisition or consolidation was incurred or assumed on the first day of the applicable period, (B) if such Indebtedness bears a floating interest rate, such interest shall be paid over the pro forma period either at the rate in effect on the date of such Acquisition or consolidation or the applicable rate experienced over the period, and (C) all income and expense associated with the assets or entity acquired in connection with such Acquisition or consolidation for the most recently ended four fiscal quarter period for which such income and expense amounts are available shall be treated as being earned or incurred by the Company and its Subsidiaries on a pro forma basis for the portion of the applicable period occurring prior to the date such Acquisition or consolidation has occurred without giving effect to any cost savings, except such cost savings as would be permitted in a pro forma financial statement prepared in compliance with SEC Regulation S-X; and (ii) with respect to the preparation of pro forma financial statements for purpose of the permitted adjustment to Consolidated EBITDA relating to any Disposition and for any other purpose related to any Disposition, a pro forma on the basis that (A) any Indebtedness prepaid out of the proceeds of such Disposition shall be deemed to have been prepaid as of the first day of the applicable period, and (B) all income and expense (other than such expenses as the Company, in good faith, estimates will not be reduced or eliminated as a consequence of such Disposition) associated with the assets or entity disposed of in connection with such Disposition shall be deemed to have been eliminated as of the first day of the applicable period.

Consolidated Funded Indebtedness” means, as of any date of determination, for the Company and its Subsidiaries on a consolidated basis, the sum of (a) the outstanding principal amount of all obligations, whether current or long-term, for borrowed money (including Obligations hereunder) and all obligations evidenced by bonds, debentures, notes, loan agreements or other similar instruments, (b) all purchase money Indebtedness, (c) all contractual, non-contingent obligations in respect of the deferred purchase price of property (other than trade accounts payable in the ordinary course of business), (d) Attributable Indebtedness in respect of capital leases and Synthetic Lease Obligations, (e) without duplication, all Guarantees with respect to outstanding Indebtedness of the types specified in clauses (a) through (d) above of Persons other than the Company or any Subsidiary, and (f) all Indebtedness of the types referred to in clauses

 

7


(a) through (e) above of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which the Company or a Subsidiary is a general partner or joint venturer, unless such Indebtedness is non-recourse to the Company or such Subsidiary.

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

Consolidated Interest Coverage Ratio” means, as of any date of determination, the ratio of (a) Consolidated EBITDA for the period of the four prior fiscal quarters most recently ended to (b) Consolidated Interest Charges for such period.

Consolidated Leverage Ratio” means, as of any date of determination, the ratio of (a) Consolidated Funded Indebtedness as of such date to (b) Consolidated EBITDA for the period of the four fiscal quarters most recently ended.

Consolidated Net Income” means, for any period, for the Company and its Subsidiaries on a consolidated basis, the net income of the Company and its Subsidiaries (excluding extraordinary gains and extraordinary losses, and excluding net income (loss) attributable to discontinued operations and Dispositions) for that period.

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

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

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

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

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

Default Rate” means (a) when used with respect to Obligations other than Letter of Credit Fees, an interest rate equal to (i) the Base Rate plus (ii) the Applicable Rate, if any, applicable to Base Rate Loans plus (iii) 2% per annum; provided, however, that with respect to a Eurocurrency Rate

 

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Loan, the Default Rate shall be an interest rate equal to the interest rate (including any Applicable Rate and any Mandatory Cost) otherwise applicable to such Loan plus 2% per annum, and (b) when used with respect to Letter of Credit Fees, a rate equal to the Applicable Rate plus 2% per annum.

Defaulting Lender” means any Lender that (a) has failed to fund any portion of the Committed Loans, participations in L/C Obligations or participations in Swing Line Loans required to be funded by it hereunder within one Business Day of the date required to be funded by it hereunder unless such failure has been cured, (b) has otherwise failed to pay over to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within one Business Day of the date when due, unless the subject of a good faith dispute or unless such failure has been cured, or (c) has been deemed insolvent or become the subject of a bankruptcy or insolvency proceeding.

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

Designated Borrower Notice” has the meaning specified in Section 2.15.

Designated Borrower Request and Assumption Agreement” has the meaning specified in Section 2.15.

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

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

Dollar Equivalent” means, at any time, (a) with respect to any amount denominated in Dollars, such amount, and (b) with respect to any amount denominated in any Alternative Currency, the equivalent amount thereof in Dollars as determined by the Administrative Agent or the L/C Issuer, as the case may be, at such time on the basis of the Spot Rate (determined in respect of the most recent Revaluation Date) for the purchase of Dollars with such Alternative Currency.

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

Eligible Assignee” means any Person that meets the requirements to be an assignee under Section 10.06(b)(iii), (v), (vi) and (vii) (subject to such consents, if any, as may be required under Section 10.06(b)(iii)).

EMU” means the economic and monetary union in accordance with the Treaty of Rome 1957, as amended by the Single European Act 1986, the Maastricht Treaty of 1992 and the Amsterdam Treaty of 1998.

EMU Legislation” means the legislative measures of the European Council for the introduction of, changeover to or operation of a single or unified European currency.

Environmental Laws” means any and all Federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants,

 

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franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the release of any materials into the environment, including those related to hazardous substances or wastes, air emissions and discharges to waste or public systems.

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

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

ERISA” means the U.S. Employee Retirement Income Security Act of 1974.

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

ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal by the Company or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by the Company or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent to terminate, the treatment of a Plan amendment as a termination under Section 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan; (e) an event or condition which 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 (f) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the Company or any ERISA Affiliate.

Euro” and “EUR” mean the lawful currency of the Participating Member States introduced in accordance with the EMU Legislation.