THIRD AMENDMENT TO CREDIT
AGREEMENT, OMNIBUS AMENDMENT TO CREDIT
DOCUMENTS AND ASSIGNMENT
This Third
Amendment to Credit Agreement, Omnibus Amendment to Credit
Documents and Assignment (this “ Agreement ”)
dated as of October 13, 2009 (the “ Effective
Date ”) is among Complete Production Services, Inc., a
Delaware corporation (the “ US Borrower ”),
Integrated Production Services, Ltd., a corporation governed by the
laws of Alberta, Canada (the “ Canadian Borrower
”; together with the US Borrower, the “
Borrowers ”), the Subsidiaries of the US Borrower and
the Canadian Borrower party hereto as guarantors (the “
Guarantors ”), the Lenders (as defined below) party
hereto, Wells Fargo Bank, National Association, as existing
administrative agent (in such capacity, the “ Existing
Administrative Agent ”), swing line lender (in such
capacity, the “ Existing Swingline Lender ”),
and issuing lender (in such capacity, the “ Existing
Issuing Lender ”), Wells Fargo Foothill, LLC, a Delaware
limited liability company as the successor administrative agent (in
such capacity, the “ New Administrative Agent
”), successor swing line lender (in such capacity, the
“ New Swingline Lender ”), and new issuing
lender (in such capacity, the “ New Issuing Lender
”), and HSBC Bank Canada, as administrative agent (in such
capacity, the “ Canadian Administrative Agent
”), swing line lender (in such capacity, the “
Canadian Swingline Lender ”), and issuing lender (in
such capacity, the “ Canadian Issuing Lender
”).
A. The
Borrowers, the Existing Administrative Agent, the Canadian
Administrative Agent, the Existing Swingline Lender, the Existing
Issuing Lender, the Canadian Swingline Lender, the Canadian Issuing
Lender and lenders party thereto from time to time (the “
Lenders ”) are parties to that certain Second Amended
and Restated Credit Agreement dated as of December 6, 2006, as
amended by the First Amendment dated June 29, 2007 and the
Second Amendment to Credit Agreement and Omnibus Amendment to
Security Documents dated October 9, 2007, as heretofore
amended (as so amended, the “ Credit Agreement
”).
B. To secure
the Obligations (as defined in the Credit Agreement), among other
things, the US Borrowers and the Guarantors (as defined in the
Credit Agreement) granted liens pursuant to certain Security
Documents (as defined in the Credit Agreement), including without
limitation (i) that certain US Security Agreement dated as of
September 12, 2005 as heretofore amended and supplemented (as
so amended and supplemented and as the same may be further amended,
supplemented, restated or otherwise modified from time to time, the
“ US Security Agreement ”), and (b) that
certain US Pledge Agreement dated as of September 12, 2005 as
heretofore amended and supplemented (as so amended and supplemented
and as the same may be further amended, supplemented, restated or
otherwise modified from time to time, the “ US Pledge
Agreement ”; and together with the US Security Agreement,
collectively, the “ Security Instruments
”).
C. To
guarantee the Obligations (as defined in the Credit Agreement),
among other things, the Guarantors (as defined in the Credit
Agreement) executed and delivered to the Existing Administrative
Agent that certain US Subsidiary Guaranty dated as of
September 12, 2005 as heretofore amended and supplemented (as
so amended and supplemented and as the same may be further amended,
supplemented, restated or otherwise modified from time to time, the
“ US Subsidiary Guaranty ”).
D. Immediately
prior hereto or concurrent herewith, Wells Fargo Bank, National
Association (“ Wells Fargo Bank ”) has assigned
or will assign 100% of its rights and obligations under the Credit
Agreement and other Credit Documents as a US Lender to its
affiliate, Wells Fargo Foothill, LLC, a Delaware limited liability
company (“ WFF ”), and in connection therewith,
Wells Fargo Bank wishes to resign as the US Administrative Agent,
US Swingline Lender and US Issuing Lender.
E. The US
Majority Lenders (as defined in the Credit Agreement) wish to
appoint WFF as the US Administrative Agent, the US Swingline Lender
and US Issuing Lender.
F. The
Lenders, the Administrative Agents and the Borrowers wish to reduce
the Commitments and make certain other amendments to the Credit
Agreement as set forth below and the US Borrower, the Guarantors
and the US Administrative Agent wish to make certain amendments to
the Security Instruments as set forth below and the Guarantors and
the US Administrative Agent wish to make certain amendments to the
US Subsidiary Guaranty as set forth below.
THEREFORE, the
Borrowers, the Lenders, WFF and Wells Fargo hereby agree as
follows:
Section 1.
Defined Terms . As used in this Agreement, each of
the terms defined in the opening paragraph and the Recitals above
shall have the meanings assigned to such terms therein. Each term
defined in the Credit Agreement and used herein without definition
shall have the meaning assigned to such term in the Credit
Agreement, unless expressly provided to the contrary.
Section 2.
Other Definitional Provisions . Article, Section,
Schedule, and Exhibit references are to Articles and Sections of
and Schedules and Exhibits to this Agreement, unless otherwise
specified. The words “hereof”, “herein”,
and “hereunder” and words of similar import when used
in this Agreement shall refer to this Agreement as a whole and not
to any particular provision of this Agreement. The term
“including” means “including, without
limitation,”. Paragraph headings have been inserted in this
Agreement as a matter of convenience for reference only and it is
agreed that such paragraph headings are not a part of this
Agreement and shall not be used in the interpretation of any
provision of this Agreement.
Section 3.
Successor US Administrative Agent and US Issuing Lender
.
(a)
Resignation and Appointment . Pursuant to Section 8.6
of the Credit Agreement, Wells Fargo hereby notifies the US
Borrower and each Lender that, effective as of the date hereof,
Wells Fargo resigns as the “US Administrative Agent”
and the “US Issuing Lender” under the Credit Agreement
and the other Credit Documents. As provided in Section 8.6 of
the Credit Agreement, upon such resignation the US Majority Lenders
may appoint a successor US Administrative Agent and a successor US
Issuing Lender. By execution of this Agreement, effective as of the
date hereof, (i) the Lenders hereby appoint, and the US Borrower
hereby agrees and approves the appointment of, WFF as the successor
US Administrative Agent and the US Issuing Lender under the Credit
Agreement and the other Credit Documents, and (ii) WFF hereby
accepts such appointment as successor US Administrative Agent and
US Issuing Lender. Nothing provided herein, including the
resignation by Wells Fargo as the US Issuing Lender under the
Credit Agreement, shall prevent Wells Fargo from being the
“Underlying Issuer” as defined in the Credit Agreement,
as amended hereby.
(b)
Effect of Resignation and Appointment . Each of the parties
hereto agrees that, as of the date hereof, (i) WFF, as the New
Administrative Agent and the US Issuing Lender, shall succeed to,
and become vested with, all of the rights, powers, privileges,
duties and obligations of the “US Administrative Agent”
and the “US Issuing Lender” (including, without
limitation, all rights, powers and privileges under and in
connection with the Security Documents and the Liens granted to the
US Administrative Agent thereunder), (ii) the terms “US
Administrative Agent” and “US Issuing Lender”, as
used in the Credit Documents, shall mean WFF, in its capacity as
New Administrative Agent and New Issuing Lender, respectively,
effective upon its appointment as such on the date hereof,
(iii) the rights (except for those rights inuring to Existing
Administrative Agent’s and the Existing Issuing
Lender’s benefit pursuant to Sections 9.1(b), (c), and
(d) and Section 2.3(h) of the Credit Agreement and those
rights that survive resignation of the Existing Administrative
Agent, the resignation of the Existing Issuing Lender
and/or
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termination of
the Credit Agreement), powers, privileges, duties and obligations
of Wells Fargo, as US Administrative Agent and US Issuing Lender,
shall, except as set forth in Section 3(d) hereof, be released,
discharged and terminated, (iv) WFF, as New Administrative
Agent, shall have no responsibility or liability for any actions
taken or omitted to be taken by Wells Fargo, as Existing
Administrative Agent, and (v) WFF, as New Issuing Lender,
shall have no responsibility or liability for any actions taken or
omitted to be taken by Wells Fargo, as Existing Issuing
Lender.
(c)
Filings of Record . The Existing Administrative Agent and
Credit Parties hereby authorize the New Administrative Agent,
effective upon the Existing Administrative Agent’s
resignation, to file any UCC and/or other assignments and
amendments necessary to reflect the Existing Administrative
Agent’s resignation and the subsequent appointment of New
Administrative Agent.
(d)
Further Assurances; Continuing Obligations . The Existing
Administrative Agent hereby agrees to execute and deliver to New
Administrative Agent, at the Credit Parties’ expense, such
additional documents, instruments or releases (all of which shall
be in form and substance reasonably satisfactory to the Existing
Administrative Agent and the New Administrative Agent) as the US
Borrower and/or the New Administrative Agent may reasonably request
to further evidence the Existing Administrative Agent’s
resignation and the subsequent appointment of the New
Administrative Agent and to maintain the continuous perfection and
priority of the security interests of US Administrative Agent in
the Collateral. Notwithstanding anything in the Credit Documents to
the contrary, from and after the Effective Date, all Letters of
Credit issued by the Existing Issuing Lender and outstanding on the
Effective Date shall be deemed to have been issued by Wells Fargo
as the Underlying Issuer under the Credit Agreement, as amended
hereby.
(e)
Assignment . As a supplement to and in no way in limitation
of the provisions of the foregoing clauses (a) —(d), Existing
Administrative Agent hereby assigns all liens and security
interests of Existing Administrative Agent (in its capacity as US
Administrative Agent under the Credit Agreement) in the Collateral
to New Administrative Agent. On and after the effective date of
this Agreement, all possessory collateral held by Existing
Administrative Agent for the benefit of the Lenders shall be deemed
to be held by Existing Administrative Agent as agent and bailee for
New Administrative Agent for the benefit of the Lenders until such
time as such possessory collateral has been delivered to New
Administrative Agent. Notwithstanding anything herein to the
contrary, all of such liens and security interests shall in all
respects be continuing and in effect and are hereby reaffirmed.
Without limiting the generality of the foregoing, any reference to
Existing Administrative Agent on any publicly filed document, to
the extent such filing relates to the liens and security interests
in the Collateral assigned hereby and until such filing is modified
to reflect the interests of New Administrative Agent, shall, with
respect to such liens and security interests, constitute a
reference to Existing Administrative Agent as collateral
representative of New Administrative Agent; provided, that the
parties hereto agree that Existing Administrative Agent’s
role as such collateral representative shall impose no duties,
obligations, or liabilities on Existing Administrative Agent,
including, without limitation, any duty to take any type of
direction regarding any action to be taken against such Collateral,
whether such direction comes from the New Administrative Agent, the
Majority Lenders or otherwise and the Existing Administrative Agent
shall have the full benefit of the protective provisions of the
Credit Documents, including but not limited to Section 9.1(b)
of the Credit Agreement, while serving in such capacity). Such sale
and assignment is without recourse to the Existing Administrative
Agent or the Existing Issuing Lender and, except as expressly
provided herein, without representation or warranty by the Existing
Administrative Agent or the Existing Issuing Lender.
(f)
Protective Provisions . Notwithstanding the foregoing
resignation, appointment and assignment and notwithstanding
anything herein or in any other Credit Document to the contrary,
the Existing Administrative Agent shall have the full benefit of
the protective provisions of the Credit
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Documents and
such protective provisions shall continue to inure to Existing
Administrative Agent’s benefit as to any actions taken or
omitted to be taken by Existing Administrative Agent while it
served as US Administrative Agent under the Credit Agreement and
the other Credit Documents and New Administrative Agent shall bear
no responsibility for any actions taken or omitted to be taken by
Existing Administrative Agent while it served as US Administrative
Agent under the Credit Agreement and the other Credit Documents or
for any other event or action related to the Credit Agreement or
the Credit Documents which occurred prior to the effectiveness of
this Agreement.
Section 4.
Successor US Swingline Lender .
(a)
Resignation and Appointment . Pursuant to Section 8.6
of the Credit Agreement, as amended hereby, Wells Fargo hereby
notifies the US Borrower and each Lender that, effective as of the
date hereof, Wells Fargo resigns as the “US Swingline
Lender” under the Credit Agreement and the other Credit
Documents. As provided in Section 8.6 of the Credit Agreement,
as amended hereby, upon such resignation the US Majority Lenders
may appoint a successor US Swingline Lender. By execution of this
Agreement, effective as of the date hereof, (i) the Lenders
hereby appoint, and the US Borrower hereby agrees and approves the
appointment of, WFF as the successor US Swingline Lender under the
Credit Agreement and the other Credit Documents, and (ii) WFF
hereby accepts such appointment as successor US Swingline
Lender.
(b)
Effect of Resignation and Appointment . Each of the parties
hereto agrees that, as of the date hereof, (i) WFF, as the New
Swingline Lender, shall succeed to, and become vested with, all of
the rights, powers, privileges, duties and obligations of the
“US Swingline Lender”, (ii) the term “US
Swingline Lender “, as used in the Credit Documents, shall
mean WFF, in its capacity as New Swingline Lender effective upon
its appointment as such on the date hereof, (iii) the rights
(except for those rights inuring to Existing Swingline
Lender’s benefit pursuant to Sections 9.1(b), (c), and
(d) and Section 2.3(h) of the Credit Agreement and those
rights that survive resignation of the Existing Swingline Lender
and/or termination of the Credit Agreement), powers, privileges,
duties and obligations of Wells Fargo, as Existing Swingline
Lender, shall, except as set forth in Section 4(c) hereof, be
released, discharged and terminated, and (iv) WFF, as New
Swingline Lender, shall have no responsibility or liability for any
actions taken or omitted to be taken by Wells Fargo, as Existing
Swingline Lender. From and after the Effective Date, the New
Administrative Agent shall make all payments in respect of US
Swingline Advances (including payments of principal, interest, fees
and other amounts) to the New Swingline Lender whether such amounts
have accrued prior to, on or after the Effective Date. The Existing
Swingline Lender and the New Swingline Lender shall make all
appropriate adjustments in payments with respect to the US
Swingline Advances for periods prior to the Effective Date or with
respect to the making of this assignment directly between
themselves.
(c)
Further Assurances . The Existing Swingline Lender hereby
agrees to execute and deliver to New Swingline Lender, at the
Credit Parties’ expense, such additional documents,
instruments or releases (all of which shall be in form and
substance reasonably satisfactory to the Existing Swingline Lender
and the New Swingline Lender) as the US Borrower and/or the New
Swingline Lender may reasonably request to further evidence the
Existing Swingline Lender’s resignation and the subsequent
appointment of the New Swingline Lender.
(d)
Assignment . As a supplement to and in no way in limitation
of the provisions of the foregoing clauses (a) —(c), Existing
Swingline Lender hereby sells and assigns and the New Swingline
Lender assumes from the Existing Swingline Lender, all of the
Existing Swingline Lender’s rights and obligations under the
swing line subfacility provided in the Credit Agreement, including
the outstanding US Swingline Advances, if any, on the Effective
Date. Such sale and assignment is without recourse to
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the Existing
Swingline Lender and, except as expressly provided herein, without
representation or warranty by the Existing Swingline
Lender.
(e)
Protective Provisions . Notwithstanding the foregoing
resignation, appointment and assignment and notwithstanding
anything herein or in any other Credit Document to the contrary,
the Existing Swingline Lender shall have the full benefit of the
protective provisions of the Credit Documents and such protective
provisions shall continue to inure to Existing Swingline
Lender’s benefit as to any actions taken or omitted to be
taken by Existing Swingline Lender while it served as US Swingline
Lender under the Credit Agreement and the other Credit Documents
and New Swingline Lender shall bear no responsibility for any
actions taken or omitted to be taken by Existing Swingline Lender
while it served as US Swingline Lender under the Credit Agreement
and the other Credit Documents or for any other event or action
related to the Credit Agreement or the Credit Documents which
occurred prior to the effectiveness of this Agreement.
Section 5.
Reduction in Commitments . Pursuant to
Section 2.1(c) and (d) of the Credit Agreement, the
Borrowers hereby ratably reduce the unused US Commitments and the
Canadian Commitments of the Lenders in such amounts so that, after
giving effect to such reductions, each Lender’s US Commitment
and Canadian Commitment, if any, are as set forth on
Schedule II attached hereto. Each of the parties hereto waives
the 10 Business Days notice required under Section 2.1 of the
Credit Agreement for the reductions in the Commitments effected
hereby.
Section 6.
Amendments to Credit Agreement .
(a) The cover
page and table of contents of the Credit Agreement are hereby
amended as reflected in the cover page and table of contents set
forth in Annex A attached hereto.
(b) Each
Article in the Credit Agreement is hereby amended as reflected in
Annex A attached hereto.
(c) Schedule I,
Schedule II, Schedule III, Schedule 4.1,
Schedule 4.10, and Schedule 4.11 to the Credit Agreement
are hereby deleted and replaced in their entirety with the
corresponding Schedules attached to this Agreement.
(d) The
attached new Schedule 4.13(a), Schedule 4.13(c),
Schedule 4.13(e), Schedule IV and Schedule 5.2 are
added to the Credit Agreement as such corresponding numbered
schedules thereto.
(e) Schedule 5.10
to the Credit Agreement is hereby deleted in its
entirety.
(f) Exhibit A,
Exhibit F, Exhibit G-1, Exhibit G-2,
Exhibit H-1 and Exhibit H-2 to the Credit Agreement are
hereby deleted and replaced in their entirety with the
corresponding Exhibits attached to this Agreement.
Section 7.
Amendment to Other Credit Documents . An updated
Schedule 1 to the US Security Agreement and updated Schedules
2.02(a), 2.02(b) and 2.02(c) to the US Pledge Agreement are
attached hereto and each such schedule shall replace the
corresponding schedule to the applicable Security Instrument.
Furthermore, (a) each reference to “US Administrative
Agent” or “Secured Party” found in the Security
Instruments shall be deemed to refer to WFF in its capacity as the
US Administrative Agent under the Credit Agreement, and
(b) each reference to “US Administrative Agent”
found in the US Subsidiary Guaranties shall be deemed to refer to
WFF in its capacity as the US Administrative Agent under the Credit
Agreement. In addition to any changes to the Security Documents to
evidence the assignments effected under Section 3 above, the
Majority Lenders hereby consent to any
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changes in such
Security Documents effected under the reaffirmations and amendments
required under Section 10(a)(iii) below.
Section 8.
Borrowers’ Representations and Warranties .
Each Borrower represents and warrants that: (a) the
representations and warranties contained in the Credit Agreement,
as amended hereby, and the representations and warranties contained
in the other Credit Documents are true and correct in all material
respects on and as of the date hereof as if made on as and as of
such date except to the extent that any such representation or
warranty expressly relates solely to an earlier date, in which case
such representation or warranty is true and correct in all material
respects as of such earlier date; (b) no Default has occurred
and is continuing; (c) the execution, delivery and performance
of this Agreement are within the corporate, limited liability
company, or partnership power and authority of such Borrower and
have been duly authorized by appropriate corporate, limited
liability company, or partnership action and proceedings;
(d) this Agreement constitutes the legal, valid, and binding
obligation of such Borrower enforceable in accordance with its
terms, except as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, or similar laws affecting the rights of
creditors generally and general principles of equity; (e) there are
no governmental or other third party consents, licenses and
approvals required in connection with the execution, delivery,
performance, validity and enforceability of this Agreement; and
(f) the Liens under the Security Documents are valid and
subsisting and secure the Borrowers’ obligations under the
Credit Documents.
Section 9.
Guarantors Representations and Warranties . Each
Guarantor represents and warrants that: (a) the
representations and warranties contained in the Guaranty and the
representations and warranties contained in the other Credit
Documents to which such Guarantor is a party are true and correct
in all material respects on and as of the date hereof as if made on
as and as of such date except to the extent that any such
representation or warranty expressly relates solely to an earlier
date, in which case such representation or warranty is true and
correct in all material respects as of such earlier date;
(b) no Default has occurred and is continuing under any Credit
Document to which such Guarantor is a party; (c) the
execution, delivery and performance of this Agreement are within
the corporate, limited liability company, or partnership power and
authority of such Guarantor and have been duly authorized by
appropriate corporate, limited liability company, or partnership
action and proceedings; (d) this Agreement constitutes the
legal, valid, and binding obligation of such Guarantor enforceable
in accordance with its terms, except as limited by applicable
bankruptcy, insolvency, reorganization, moratorium, or similar laws
affecting the rights of creditors generally and general principles
of equity; (e) there are no governmental or other third party
consents, licenses and approvals required in connection with the
execution, delivery, performance, validity and enforceability of
this Agreement; and (f) the Liens under the Security Documents
to which such Guarantor is a party are valid and subsisting and
secure such Guarantor’s and the Borrowers’ obligations
under the Credit Documents.
Section 10.
Conditions to Effectiveness . This Agreement shall
become effective on the Effective Date in accordance with terms
hereof, enforceable against the parties hereto upon the occurrence
of the following conditions precedent:
(a) The New
Administrative Agent shall have received each of the
following:
(i) multiple
original counterparts, as requested by the US Administrative Agent,
of this Agreement duly and validly executed and delivered by duly
authorized officers of the Borrowers, the Guarantors, the Canadian
Administrative Agent, the Existing Administrative Agent, the New
Administrative Agent, and the Majority Lenders;
(ii) executed
Notes for each Lender that had previously received a Note
reflecting such Lenders new reduced Commitment effected
hereby;
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(iii) reaffirmations
and amendments to the Security Documents (including the Security
Instruments), together with appropriate UCC-3 financing statements,
and such other documents, agreements, or instruments necessary to
create, perfect, and maintain an Acceptable Security Interest in
the Collateral described in such Security Documents in favor of the
New Administrative Agent;
(iv) fully
executed fee letter dated October 13, 2009 between WFF and the
Borrowers;
(v) a
fully completed certificates reflecting the US Borrowing Base and
Canadian Borrowing Base to be in effect under the Credit Agreement,
as amended hereby, as of the Effective Date and in form and
substance reasonably satisfactory to the Applicable Administrative
Agent;
(vi) a
secretary’s certificate from each Borrower and each Guarantor
certifying such Person’s (A) officers’ incumbency,
(B) resolutions of such Person’s board of directors or
other governing body authorizing its execution, delivery, and
performance of this Agreement and the other Credit Documents to
which such Person is a party, (C) organizational documents,
and (D) governmental approvals, if any, with respect to the
Credit Documents to which such Person is a party;
(vii) certificates
of existence and good standing for the US Borrower and each US
Subsidiary Guarantor in the state in which it is organized and in
each state the failure to be duly qualified or licensed would
constitute a Material Adverse Change, which certificates shall be
dated a date not earlier than 30 days prior to the date
hereof;
(viii) a
certificate from an authorized officer of the Company dated as of
the Effective Date stating that as of such date (A) all
representations and warranties of the Company set forth in this
Agreement and in the Credit Agreement, as amended hereby, are true
and correct in all material respects (except that such materiality
qualifier shall not be applicable to any representations and
warranties that already are qualified or modified by materiality in
the text thereof) and (B) no Default has occurred and is
continuing;
(ix) a
certificate in form and substance reasonably satisfactory to the
New Administrative Agent from a senior financial officer of the
Company and each other Credit Party certifying that, before and
after giving effect to the initial Borrowings made hereunder, each
Credit Party is Solvent (assuming with respect to each Credit Party
that is a Guarantor, that the fraudulent conveyance savings
language contained in the Guaranty applicable to such Guarantor
will be given full effect);
(x) certificates
of insurance policies and/or endorsements naming the New
Administrative Agent (or Canadian Administrative Agent, as
applicable) as additional insured or loss payee, as the case may
be, all in form and substance satisfactory to such Administrative
Agent;
(xi) a
legal opinion of Locke Lord Bissel & Liddell LLP as counsel to
the Credit Parties, in form and substance acceptable to the US
Administrative Agent;
(xii) confirmation
from Canadian Administrative Agent that it has received (A) if
requested by the Canadian Administrative Agent, a legal opinion of
solicitors of each Credit Party domiciled in Canada or any province
thereof in form and substance reasonably acceptable to the
Administrative Agents; (B) if requested by the Canadian
Administrative Agent, certificates of existence and good standing
for the Canadian Borrower and each other Foreign Credit Party in
the jurisdiction in which it is organized, which certificates shall
be dated a date not earlier than 30 days prior to the
date
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hereof; and
(C) such other documents, governmental certificates,
agreements, and opinions as the Canadian Administrative Agent may
reasonably request; and
(xiii) such
other documents, governmental certificates, agreements, and
opinions as the US Administrative Agent may reasonably
request.
(b) No
action, suit, investigation or other proceeding (including, without
limitation, the enactment or promulgation of a statute or rule) by
or before any arbitrator or any Governmental Authority shall be
threatened or pending and no preliminary or permanent injunction or
order by a state or federal court shall have been entered
(i) in connection with this Agreement or any transaction
contemplated hereby or (ii) which, in any case, in the
judgment of the New Administrative Agent or the Canadian
Administrative Agent, could reasonably be expected to result in a
Material Adverse Change.
(c) No event
or circumstance that could reasonably be expected to result in a
material adverse change in the business, condition (financial or
otherwise), prospects, or results of operations of the Company and
its Subsidiaries, taken as a whole, shall have occurred since
December 31, 2008.
(d) The
representations and warranties in this Agreement shall be true and
correct and no Default shall have occurred and be
continuing.
(e) The New
Administrative Agent shall have completed its business, legal, and
collateral due diligence, including a collateral audit and review
of the US Borrower’s and its Subsidiaries books and records
and verification of US Borrower’s representations and
warranties to Lender Parties, the results of which shall be
satisfactory to New Administrative Agent, the results of which
shall be satisfactory to New Administrative Agent.
(f) The New
Administrative Agent shall have received an equipment appraisal
performed by a valuation firm selected by the New Administrative
Agent and including therein the Liquidation Percentage (as defined
in Annex A) applicable to the US Borrower’s and its
Subsidiaries’ Equipment (as defined in Annex A), in each
case, the results of which are satisfactory to the New
Administrative Agent.
(g) The New
Administrative Agent shall have received the results of all Patriot
Act searches and reference checks with respect to the US
Borrower’s senior management, the results of which are
satisfactory to the New Administrative Agent in its sole
discretion.
(h) The New
Administrative Agent shall have received a set of projections of
the US Borrower through 2010 in form and substance (including as to
scope and underlying assumptions) satisfactory to New
Administrative Agent.
(i) The New
Administrative Agent shall have received evidence that, after
giving effect to the payment of all fees and expenses required to
be paid by the Borrowers on the Effective Date in connection with
this Agreement and the other Credit Documents, the amount equal to
(A) Excess Availability Amount (as defined in Annex A)
plus (B) the Qualified Cash Amount (as defined in Annex
A) minus (C) the aggregate amount, if any, of all trade
payables of the US Borrower and its Domestic Subsidiaries aged in
excess of historical levels with respect thereto and all book
overdrafts of the US Borrower and its Domestic Subsidiaries in
excess of historical practices with respect thereto, in each case
as determined by US Administrative Agent in its Permitted
Discretion (as defined in Annex A), is not less than $65,000,000;
and
(j) The
Borrowers shall have paid (i) the fees required to be paid
under that certain fee letter dated October 13, 2009 among the
Borrowers and WFF, (ii) all fees and expenses of the
US
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Administrative
Agent’s outside legal counsel and other consultants pursuant
to all invoices presented for payment on or prior to the Effective
Date, (iii) to the New Administrative Agent, for the account
of each US Lender executing this Agreement on or prior to 5:00 pm
(central), October 13, 2009, an amendment fee equal to 0.50% times
such US Lender’s US Commitment set forth in Schedule II
attached hereto, and (iv) to the Canadian Administrative
Agent, for the account of each Canadian Lender, an amendment fee
equal to 0.50% times such Canadian Lender’s Canadian
Commitment set forth in Schedule II.
Section 11.
Acknowledgments and Agreements .
(a) Each
Borrower acknowledges that on the date hereof all outstanding
Obligations are payable in accordance with their terms and each
Borrower waives any defense, offset, counterclaim or recoupment
with respect thereto.
(b) Each
Borrower, each Guarantor, each Administrative Agent, each Swing
Line Lender, each Issuing Lender and each Lender does hereby adopt,
ratify, and confirm the Credit Agreement, as amended hereby, and
acknowledges and agrees that the Credit Agreement, as amended
hereby, is and remains in full force and effect, and the Borrowers
and the Guarantors acknowledge and agree that their respective
liabilities and obligations under the Credit Agreement, as amended
hereby, and the Guaranty, are not impaired in any respect by this
Agreement.
(c) From and
after the Effective Date, all references to the Credit Agreement
and the Credit Documents shall mean the Credit Agreement and such
Credit Documents as amended by this Agreement.
(d) This
Agreement is a Credit Document for the purposes of the provisions
of the other Credit Documents. Without limiting the foregoing, any
breach of representations, warranties, and covenants under this
Agreement shall be a Default or Event of Default, as applicable,
under the Credit Agreement.
Section 12.
Reaffirmation of the Guaranty . Each Guarantor hereby
ratifies, confirms, acknowledges and agrees that its obligations
under the Guaranty are in full force and effect and that such
Guarantor continues to unconditionally and irrevocably guarantee
the full and punctual payment, when due, whether at stated maturity
or earlier by acceleration or otherwise, all of the Guaranteed
Obligations (as defined in the Guaranty), as such Guaranteed
Obligations may have been amended by this Agreement, and its
execution and delivery of this Agreement does not indicate or
establish an approval or consent requirement by such Guarantor
under the Guaranty in connection with the execution and delivery of
amendments, consents or waivers to the Credit Agreement, the Notes
or any of the other Credit Documents.
Section 13.
Counterparts . This Agreement may be signed in any
number of counterparts, each of which shall be an original and all
of which, taken together, constitute a single instrument. This
Agreement may be executed by facsimile signature and all such
signatures shall be effective as originals.
Section 14.
Successors and Assigns . This Agreement shall be
binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns permitted pursuant to the
Credit Agreement.
Section 15.
Invalidity . In the event that any one or more of the
provisions contained in this Agreement shall for any reason be held
invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provision
of this Agreement.
-9-
Section 16.
Governing Law . This Agreement shall be deemed to be
a contract made under and shall be governed by and construed in
accordance with the laws of the State of Texas.
Section 17.
Entire Agreement . THIS AGREEMENT, THE CREDIT AGREEMENT
AS AMENDED BY THIS AGREEMENT, THE NOTES, AND THE OTHER CREDIT
DOCUMENTS CONSTITUTE THE ENTIRE UNDERSTANDING AMONG THE PARTIES
HERETO WITH RESPECT TO THE SUBJECT MATTER HEREOF AND SUPERSEDE ANY
PRIOR AGREEMENTS, WRITTEN OR ORAL, WITH RESPECT
THERETO.
THERE ARE NO UNWRITTEN ORAL
AGREEMENTS AMONG THE PARTIES.
[The remainder of this page has been
left blank intentionally.]
-10-
EXECUTED to be
effective as of the Effective Date.
|
|
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BORROWERS :
COMPLETE PRODUCTION SERVICES, INC.
|
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|
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By:
|
/s/ JOSE A.
BAYARDO
|
|
|
|
|
Name:
|
JOSE A.
BAYARDO
|
|
|
|
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Title:
|
VICE
PRESIDENT
|
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|
|
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|
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INTEGRATED
PRODUCTION SERVICES LTD.
|
|
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By:
|
/s/ Dennis
Hassel
|
|
|
|
|
Name:
|
Dennis
Hassel
|
|
|
|
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Title:
|
Vice President,
Finance
|
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GUARANTORS :
COMPLETE ENERGY, LLC
A&W WATER SERVICE, INC.
CES ROCKIES, INC.
CES MID-CONTINENT HAMM, LLC
GUARD DRILLING MUD DISPOSAL, INC.
HAMM & PHILLIPS SERVICE COMPANY, INC.
HAMM MANAGEMENT CO.
HYLAND ENTERPRISES, INC.
INTEGRATED PRODUCTION SERVICES, INC.
LEED TOOL CORPORATION
MONUMENT WELL SERVICE CO.
OIL TOOL RENTALS, CO.
R&W RENTAL, INC.
STRIDE WELL SERVICE COMPANY, INC.
MGM WELL SERVICES, INC.
ROUSTABOUT SPECIALTIES, INC.
SERVICIOS HOLDINGS I, INC.
SERVICIOS HOLDINGS II, INC.
TURNER ENERGY SERVICES, LLC
TURNER ENERGY SWD, LLC
LOYD JONES WELL SERVICE, LLC
FEMCO SWD, INC.
PUMPCO ENERGY SERVICES, INC.
TEXAS CES, INC.
CES SWD TEXAS, INC.
ALLIANCE ENERGY SERVICE CO. LLC
I.E. MILLER SERVICES, INC.
AWS, INC.
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Each
by:
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/s/ J.F.
MARONEY
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|
Name:
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J.F.
MARONEY
|
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|
Title:
|
VICE
PRESIDENT
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SWEETWATER
PRODUCED WATER
DISPOSAL, LLC
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By:
|
Hyland
Enterprises, Inc.
|
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its sole
member
|
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By:
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/s/ J.F.
MARONEY III
|
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|
Name:
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J.F. MARONEY
III
|
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|
|
Title:
|
VICE
PRESIDENT
|
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GREASEWOOD,
LLC
|
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By:
|
Hyland
Enterprises, Inc.,
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|
its managing
member
|
|
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|
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By:
|
/s/ J.F.
MARONEY III
|
|
|
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|
Name:
|
J.F. MARONEY
III
|
|
|
|
|
Title:
|
VICE
PRESIDENT
|
|
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BIG MAC TANK
TRUCKS, LLC
|
|
|
|
By:
|
CES
Mid-Continent Hamm, LLC, its sole member
|
|
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|
|
|
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|
|
By:
|
/s/ J.F.
MARONEY III
|
|
|
|
|
Name:
|
J.F. MARONEY
III
|
|
|
|
|
Title:
|
VICE
PRESIDENT
|
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FUGO
SERVICES, LLC
|
|
|
|
By:
|
CES
Mid-Continent Hamm, LLC, its sole member
|
|
|
|
|
|
|
|
|
By:
|
/s/ J.F.
MARONEY III
|
|
|
|
|
Name:
|
J.F. MARONEY
III
|
|
|
|
|
Title:
|
VICE
PRESIDENT
|
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|
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DELANEY
ENERGY SERVICES CORPORATION
|
|
|
|
By:
|
/s/ Dennis
Hassel
|
|
|
|
|
Name:
|
Dennis
Hassel
|
|
|
|
|
Title:
|
CFO,
Director
|
|
|
|
|
|
INTEGRATED
PRODUCTION SERVICES PARTNERSHIP
|
|
|
|
By:
|
Integrated
Production Services Ltd., its managing partner
|
|
|
|
|
|
|
|
|
By:
|
/s/ Dennis
Hassel
|
|
|
|
|
Name:
|
Dennis
Hassel
|
|
|
|
|
Title:
|
CFO
|
|
|
|
|
|
IPS
MANUFACTURING LIMITED
|
|
|
|
By:
|
/s/ Dennis
Hassel
|
|
|
|
|
Name:
|
Dennis
Hassel
|
|
|
|
|
Title:
|
CFO,
Director
|
|
|
|
|
|
PEMAC PTE
LTD
|
|
|
|
By:
|
/s/ Dennis
Hassel
|
|
|
|
|
Name:
|
Dennis
Hassel
|
|
|
|
|
Title:
|
Director
|
|
|
|
|
|
PREMIER
ESTATE PRIVATE LIMITED
|
|
|
|
By:
|
/s/ Dennis
Hassel
|
|
|
|
|
Name:
|
Dennis
Hassel
|
|
|
|
|
Title:
|
Director
|
|
|
|
|
|
|
|
|
|
PREMIER
INTEGRATED TECHNOLOGIES LTD.
|
|
|
|
By:
|
/s/ Dennis
Hassel
|
|
|
|
|
Name:
|
Dennis
Hassel
|
|
|
|
|
Title:
|
CFO,
Director
|
|
|
|
|
|
PREMIER SEA
& LAND LIMITED
|
|
|
|
By:
|
/s/ Dennis
Hassel
|
|
|
|
|
Name:
|
Dennis
Hassel
|
|
|
|
|
Title:
|
Director
|
|
|
|
|
|
|
|
|
|
|
|
PREMIER SEA
& LAND PTE LTD
|
|
|
|
By:
|
/s/ Dennis
Hassel
|
|
|
|
|
Name:
|
Dennis
Hassel
|
|
|
|
|
Title:
|
Director
|
|
|
|
|
|
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|
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|
|
ADMINISTRATIVE AGENT AND LENDERS
:
WELLS FARGO BANK, NATIONAL ASSOCIATION
as Existing Administrative Agent, Existing Swing Line Lender,
and Existing Issuing Lender
|
|
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By:
|
/s/ Corbin M.
Womac
|
|
|
|
|
Name:
|
Corbin M.
Womac
|
|
|
|
|
Title:
|
Assistant Vice
President
|
|
|
|
|
|
WELLS FARGO
FOOTHILL, LLC
as New Administrative Agent, New Swing Line Lender, New
Issuing Lender and a US Lender
|
|
|
|
By:
|
/s/ David A.
Ernst
|
|
|
|
|
David A.
Ernst
|
|
|
|
|
Vice
President
|
|
|
|
|
|
|
|
|
|
|
|
HSBC BANK
CANADA
as Canadian Administrative Agent, Canadian Swingline Lender,
Canadian Issuing Lender and a Canadian Lender
|
|
|
|
By:
|
/s/ Heather
Madsen
|
|
|
|
|
Name:
|
HEATHER
MADSEN
|
|
|
|
|
Title:
|
ACCOUNT MANAGER
ENERGY FINANCING
|
|
|
|
|
|
|
|
By:
|
/s/ Kevin Bale
|
|
|
|
|
Name:
|
KEVIN
BALE
|
|
|
|
|
Title:
|
Assistant Vice
President Energy Financing
|
|
|
|
|
|
|
|
|
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|
|
AMEGY BANK
N.A.
as a US Lender
|
|
|
|
By:
|
/s/ Kenyatta B.
Gibbs
|
|
|
|
|
Name:
|
Kenyatta B.
Gibbs
|
|
|
|
|
Title:
|
Vice
President
|
|
|
|
|
|
|
|
|
|
|
|
COMERICA
BANK
as a US Lender
|
|
|
|
By:
|
/s/ Cyd
Dillahunty
|
|
|
|
|
Name:
|
Cyd
Dillahunty
|
|
|
|
|
Title:
|
Vice President
Texas Division
|
|
|
|
|
|
|
|
|
|
UBS LOAN
FINANCE LLC
as a US Lender
|
|
|
|
By:
|
/s/ Irja R.
Otsa
|
|
|
|
|
Name:
|
Irja R.
Otsa
|
|
|
|
|
Title:
|
Associate
Director
|
|
|
|
|
|
|
|
By:
|
/s/ Marie
Haddad
|
|
|
|
|
Name:
|
Marie
Haddad
|
|
|
|
|
Title:
|
Associate
Director
|
|
|
|
|
|
|
|
|
|
CREDIT
SUISSE, CAYMAN ISLANDS BRANCH,
as a US Lender
|
|
|
|
By:
|
/s/ Mikhail
Faybusovich
|
|
|
|
|
Name:
|
Mikhail
Faybusovich
|
|
|
|
|
Title:
|
Vice
President
|
|
|
|
|
|
|
|
By:
|
/s/ Kevin
Buddhdew
|
|
|
|
|
Name:
|
Kevin
Buddhdew
|
|
|
|
|
Title:
|
Associate
|
|
|
|
|
|
|
|
|
|
CITIBANK,
N.A.
as a US Lender
|
|
|
|
By:
|
/s/ Daniel A.
Davis
|
|
|
|
|
Name:
|
Daniel A.
Davis
|
|
|
|
|
Title:
|
Relationship
Manager
GEID 1001682818
Citibank, N.A.
|
|
|
|
|
|
|
|
|
|
NATIXIS
as a US Lender
|
|
|
|
By:
|
/s/ Carlos
Quinteros
|
|
|
|
|
Name:
|
Carlos
Quinteros
|
|
|
|
|
Title:
|
Director
|
|
|
|
|
|
|
|
By:
|
/s/ Timothy L.
Polvado
|
|
|
|
|
Name:
|
Timothy L.
Polvado
|
|
|
|
|
Title:
|
Senior Managing
Director
|
|
|
|
|
|
|
|
|
|
BANK OF
TEXAS, N.A.
as a US Lender
|
|
|
|
By:
|
/s/ Marian
Livingston
|
|
|
|
|
Name:
|
Marian
Livingston
|
|
|
|
|
Title:
|
SVP
|
|
|
|
|
|
|
|
|
|
JPMORGAN
CHASE BANK, N.A.
as a US Lender
|
|
|
|
By:
|
/s/ J. Devin
Mock
|
|
|
|
|
Name:
|
J. Devin
Mock
|
|
|
|
|
Title:
|
Vice
President
|
|
|
|
|
|
|
|
|
|
BANK OF
AMERICA, N.A.
as a US Lender
|
|
|
|
By:
|
/s/ Jason Todd
|
|
|
|
|
Name:
|
Jason
Todd
|
|
|
|
|
Title:
|
EVP
|
|
|
|
|
|
|
|
|
|
|
|
|
Lenders
|
|
US Commitment
|
|
Canadian Commitment
|
Wells Fargo Foothill, LLC
|
|
$
|
50,000,000
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
$
|
15,000,000
|
|
|
|
|
$
|
37,500,000
|
|
|
$
|
0
|
|
|
|
|
$
|
31,250,000
|
|
|
$
|
0
|
|
|
|
|
$
|
6,250,000
|
|
|
$
|
0
|
|
Credit Suisse, Cayman Islands Branch
|
|
$
|
3,125,000
|
|
|
$
|
0
|
|
|
|
|
$
|
18,750,000
|
|
|
$
|
0
|
|
|
|
|
$
|
12,500,000
|
|
|
$
|
0
|
|
|
|
|
$
|
9,375,000
|
|
|
$
|
0
|
|
JPMorgan Chase Bank, N.A.
|
|
$
|
31,250,000
|
|
|
$
|
0
|
|
|
|
|
$
|
25,000,000
|
|
|
$
|
0
|
|
|
|
|
$
|
225,000,000
|
|
|
$
|
15,000,000
|
|
ANNEX A TO THIRD
AMENDMENT
SECOND AMENDED AND RESTATED
CREDIT AGREEMENT
dated as of December 6,
2006
COMPLETE PRODUCTION SERVICES,
INC.
as US Borrower,
INTEGRATED PRODUCTION SERVICES
LTD.
as Canadian Borrower,
WELLS FARGO FOOTHILL, LLC
as US Administrative Agent, US Issuing Lender and US Swingline
Lender,
HSBC BANK CANADA,
as Canadian Administrative Agent, Canadian Issuing Lender and
Canadian Swingline Lender,
THE LENDERS PARTY HERETO FROM
TIME TO TIME
as Lenders
WELLS FARGO FOOTHILL, LLC
as Lead Arranger
Amegy Bank N.A. and Comerica
Bank
as Co-Documentation Agents
|
|
|
|
|
|
|
|
|
|
|
|
|
Page
|
|
|
|
|
|
|
|
|
|
|
ARTICLE
I DEFINITIONS AND ACCOUNTING
TERMS
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain Defined
Terms
|
|
|
1
|
|
|
|
|
Computation of
Time Periods
|
|
|
35
|
|
|
|
|
Accounting
Terms; Changes in GAAP
|
|
|
35
|
|
|
|
|
Classes and
Types of Advances
|
|
|
36
|
|
|
|
|
Other
Interpretive Provisions
|
|
|
36
|
|
|
|
|
Exchange Rates;
Currency Equivalents
|
|
|
37
|
|
|
|
|
Agreed
Currencies
|
|
|
37
|
|
|
|
|
Change of
Currency
|
|
|
38
|
|
|
|
|
Several
Obligations of Borrowers
|
|
|
38
|
|
|
|
|
|
|
|
|
|
|
ARTICLE
II CREDIT FACILITIES
|
|
|
38
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments.
|
|
|
38
|
|
|
|
|
Evidence of
Indebtedness
|
|
|
42
|
|
|
|
|
Letters of
Credit
|
|
|
43
|
|
|
|
|
Swingline
Advances
|
|
|
50
|
|
|
|
|
Bankers’
Acceptances
|
|
|
53
|
|
|
|
|
Borrowings;
Procedures and Limitations
|
|
|
55
|
|
|
|
|
Prepayments;
Defeasance
|
|
|
61
|
|
|
|
|
Repayment
|
|
|
64
|
|
|
|
|
Fees
|
|
|
64
|
|
|
|
|
Interest
|
|
|
65
|
|
|
|
|
Illegality
|
|
|
66
|
|
|
|
|
Breakage
Costs
|
|
|
67
|
|
|
|
|
Increased
Costs
|
|
|
67
|
|
|
|
|
Payments and
Computations
|
|
|
69
|
|
|
|
|
Taxes
|
|
|
72
|
|
|
|
|
Replacement of
Lenders
|
|
|
74
|
|
|
|
|
Settlement
|
|
|
75
|
|
|
|
|
Method of
Payment
|
|
|
76
|
|
|
|
|
Crediting
Payments
|
|
|
77
|
|
|
|
|
Designated
Account
|
|
|
77
|
|
|
|
|
Maintenance of
Loan Account; Statements of Obligations
|
|
|
77
|
|
|
|
|
Optional
Overadvances
|
|
|
77
|
|
|
|
|
|
|
|
|
|
|
ARTICLE
III CONDITIONS
PRECEDENT
|
|
|
78
|
|
|
|
|
|
|
|
|
|
|
|
|
Conditions
Precedent to Effectiveness
|
|
|
78
|
|
|
|
|
Conditions
Precedent to Each Credit Extension
|
|
|
80
|
|
|
|
|
Determinations
Under Sections 3.1 and 3.2
|
|
|
81
|
|
|
|
|
|
|
|
|
|
|
ARTICLE
IV REPRESENTATIONS AND
WARRANTIES
|
|
|
81
|
|
|
|
|
|
|
|
|
|
|
|
|
Organization
|
|
|
81
|
|
|
|
|
Authorization
|
|
|
81
|
|
|
|
|
Enforceability
|
|
|
82
|
|
|
|
|
Financial
Condition
|
|
|
82
|
|
|
|
|
Ownership and
Liens; Real Property
|
|
|
82
|
|
|
|
|
True and
Complete Disclosure
|
|
|
82
|
|
|
|
|
Litigation
|
|
|
83
|
|
|
|
|
Compliance with
Agreements
|
|
|
83
|
|
|
|
|
Pension
Plans
|
|
|
83
|
|
-i-
Table of Contents
(continued)
|
|
|
|
|
|
|
|
|
|
|
Environmental
Condition
|
|
|
84
|
|
|
|
|
Subsidiaries
|
|
|
84
|
|
|
|
|
Investment
Company Act
|
|
|
84
|
|
|
|
|
Collateral
Issues
|
|
|
84
|
|
|
|
|
Taxes
|
|
|
85
|
|
|
|
|
Permits,
Licenses, etc
|
|
|
86
|
|
|
|
|
Use of
Proceeds
|
|
|
86
|
|
|
|
|
Condition of
Property; Casualties
|
|
|
86
|
|
|
|
|
Insurance
|
|
|
86
|
|
|
|
|
Labor
Agreements
|
|
|
86
|
|
|
|
|
OFAC
|
|
|
86
|
|
|
|
|
Patriot
Act
|
|
|
86
|
|
|
|
|
|
|
|
|
|
|
ARTICLE
V AFFIRMATIVE COVENANTS
|
|
|
87
|
|
|
|
|
|
|
|
|
|
|
|
|
Organization
|
|
|
87
|
|
|
|
|
Reporting
|
|
|
87
|
|
|
|
|
Insurance
|
|
|
89
|
|
|
|
|
Compliance with
Laws
|
|
|
90
|
|
|
|
|
Taxes
|
|
|
90
|
|
|
|
|
Additional
Guarantors
|
|
|
90
|
|
|
|
|
Security
|
|
|
91
|
|
|
|
|
Records;
Inspection
|
|
|
91
|
|
|
|
|
Maintenance of
Property
|
|
|
91
|
|
|
|
|
Location of
Equipment; Collateral Access Agreements
|
|
|
92
|
|
|
|
|
Material Real
Properties
|
|
|
92
|
|
|
|
|
|
|
|
|
|
|
ARTICLE
VI NEGATIVE COVENANTS
|
|
|
92
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
|
|
|
92
|
|
|
|
|
Liens
|
|
|
93
|
|
|
|
|
Investments
|
|
|
94
|
|
|
|
|
Acquisitions
|
|
|
95
|
|
|
|
|
Agreements
Restricting Liens; Negative Pledge
|
|
|
95
|
|
|
|
|
Use of
Proceeds; Use of Letters of Credit
|
|
|
96
|
|
|
|
|
Corporate
Actions
|
|
|
96
|
|
|
|
|
Sale of
Assets
|
|
|
96
|
|
|
|
|
Restricted
Payments
|
|
|
97
|
|
|
|
|
Affiliate
Transactions
|
|
|
97
|
|
|
|
|
Line of
Business
|
|
|
98
|
|
|
|
|
Hazardous
Materials
|
|
|
98
|
|
|
|
|
Compliance with
ERISA
|
|
|
98
|
|
|
|
|
Sale and
Leaseback Transactions
|
|
|
98
|
|
|
|
|
Controlled
Investments
|
|
|
99
|
|
|
|
|
Limitation on
Hedging
|
|
|
99
|
|
|
|
|
Capital
Expenditures
|
|
|
99
|
|
|
|
|
Fixed Charge
Coverage Ratio
|
|
|
99
|
|
|
|
|
Amendment of
Permitted Subordinated Debt Terms
|
|
|
99
|
|
|
|
|
Non-Guarantor
Subsidiaries and Minority Investments
|
|
|
100
|
|
|
|
|
Post-Closing
Requirements
|
|
|
100
|
|
|
|
|
|
|
|
|
|
|
ARTICLE
VII DEFAULT AND
REMEDIES
|
|
|
100
|
|
ii
Table of Contents
(continued)
|
|
|
|
|
|
|
|
|
|
|
Events of
Default
|
|
|
100
|
|
|
|
|
Optional
Acceleration of Maturity
|
|
|
102
|
|
|
|
|
Automatic
Acceleration of Maturity
|
|
|
102
|
|
|
|
|
Set-off
|
|
|
103
|
|
|
|
|
Remedies
Cumulative, No Waiver
|
|
|
103
|
|
|
|
|
Application of
Payments
|
|
|
104
|
|
|
|
|
Currency
Conversion After Maturity
|
|
|
106
|
|
|
|
|
Effect of
Maturity
|
|
|
106
|
|
|
|
|
|
|
|
|
|
|
ARTICLE
VIII THE ADMINISTRATIVE AGENTS AND
ISSUING LENDERS
|
|
|
106
|
|
|
|
|
|
|
|
|
|
|
|
|
Appointment and
Authority
|
|
|
106
|
|
|
|
|
Rights as a
Lender
|
|
|
106
|
|
|
|
|
Exculpatory
Provisions
|
|
|
107
|
|
|
|
|
Reliance by
Administrative Agent
|
|
|
107
|
|
|
|
|
Delegation of
Duties
|
|
|
108
|
|
|
|
|
Resignation of
Administrative Agent, Swingline Lender or Issuing Lender
|
|
|
108
|
|
|
|
|
Non-Reliance on
Administrative Agent and Other Lenders
|
|
|
109
|
|
|
|
|
No Other
Duties, etc
|
|
|
109
|
|
|
|
|
Collateral
Matters
|
|
|
109
|
|
|
|
|
Marshaling
Rights of Lender Parties; Allocation of Losses
|
|
|
109
|
|
|
|
|
Agency for
Perfection
|
|
|
110
|
|
|
|
|
Audits and
Examination Reports; Confidentiality; Disclaimers by
|
|
|
|
|
|
|
|
Lenders; Other
Reports and Information
|
|
|
110
|
|
|
|
|
|
|
|
|
|
|
ARTICLE
IX MISCELLANEOUS
|
|
|
110
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses;
Indemnity; Damage Waiver
|
|
|
110
|
|
|
|
|
Waivers and
Amendments
|
|
|
112
|
|
|
|
|
Severability
|
|
|
113
|
|
|
|
|
Survival of
Representations and Obligations
|
|
|
113
|
|
|
|
|
Successors and
Assigns Generally
|
|
|
113
|
|
|
|
|
Lender
Assignments and Participations
|
|
|
113
|
|
|
|
|
Notices,
Etc
|
|
|
115
|
|
|
|
|
Confidentiality
|
|
|
116
|
|
|
|
|
Business
Loans
|
|
|
117
|
|
|
|
|
Usury Not
Intended
|
|
|
117
|
|
|
|
|
Usury
Recapture
|
|
|
118
|
|
|
|
|
Judgment
Currency
|
|
|
118
|
|
|
|
|
Payments Set
Aside
|
|
|
119
|
|
|
|
|
Governing Law;
Submission to Jurisdiction
|
|
|
119
|
|
|
|
|
Execution and
Effectiveness
|
|
|
120
|
|
|
|
|
Waiver of
Jury
|
|
|
120
|
|
|
|
|
USA PATRIOT ACT
Notice
|
|
|
120
|
|
|
|
|
Termination for
Departing Lenders
|
|
|
120
|
|
|
|
|
Third Party
Secured Parties
|
|
|
121
|
|
|
|
|
Cure of
Defaulting Lender
|
|
|
121
|
|
iii
Table of Contents
(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
Assignment and
Assumption
|
|
|
—
|
Canadian
Guaranty
|
|
|
—
|
INTENTIONALLY
OMITTED
|
|
|
—
|
INTENTIONALLY
OMITTED
|
|
|
—
|
Canadian
Security Agreement
|
|
|
—
|
Compliance
Certificate
|
|
|
—
|
Notice of
Borrowing (US Facility)
|
|
|
—
|
Notice of
Borrowing (Canadian Facility)
|
|
|
—
|
Notice of
Conversion or Continuance (US Facility)
|
|
|
—
|
Notice of
Conversion or Continuance (Canadian Facility)
|
|
|
—
|
US
Mortgage
|
|
|
—
|
US Pledge
Agreement
|
|
|
—
|
US Security
Agreement
|
|
|
—
|
US Subsidiary
Guaranty
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
Designated
Account and US Administrative Agent’s Account
|
|
|
—
|
Commitments
|
|
|
—
|
Notice
Information
|
|
|
—
|
Organizational
Information
|
|
|
—
|
Environmental
|
|
|
—
|
Subsidiaries
|
|
|
—
|
Intellectual
Property
|
|
|
—
|
Deposit
Accounts / Securities Accounts
|
|
|
—
|
Locations of
Collateral
|
|
|
—
|
Labor
Agreements
|
|
|
—
|
Collateral
Reports
|
|
|
—
|
Owned Real
Property Requirements
|
|
|
—
|
Existing
Debt
|
|
|
—
|
Permitted
Liens
|
|
|
—
|
Permitted
Investments
|
iv
SECOND AMENDED AND RESTATED
CREDIT AGREEMENT
This SECOND
AMENDED AND RESTATED CREDIT AGREEMENT dated as of
December 6, 2006 (as it may be further amended, supplemented,
restated and otherwise modified from time to time, the “
Agreement ”) is among (a) Complete Production
Services, Inc. , a Delaware corporation (“ US
Borrower ” or the “ Company ”), (b)
Integrated Production Services Ltd. , a corporation governed
by the laws of Alberta, Canada (“ Canadian Borrower
”; together with the US Borrower, the “
Borrowers ”), (c) the Lenders (as defined below),
(d) Wells Fargo Foothill, LLC, a Delaware limited liability
company as US Swingline Lender (as defined below), US Issuing
Lender (as defined below), and as US Administrative Agent (as
defined below) for the Lenders, and (e) HSBC Bank Canada as
Canadian Swingline Lender (as defined below), Canadian Issuing
Lender (as defined below), and as Canadian Administrative Agent (as
defined below) for the Lenders.
A. The
Borrowers, the US Administrative Agent, the US Issuing Lender, the
US Swingline Lender, the Canadian Administrative Agent, the
Canadian Issuing Lender, the Canadian Swingline Lender and the
lenders party thereto, including certain of the Lenders (the
“ Existing Lenders ”) have previously executed
and delivered that certain Amended and Restated Credit Agreement
dated as of March 29, 2006 (the “ Restated
Agreement ”).
B. The
Borrowers, the US Administrative Agent, the US Issuing Lender, the
US Swingline Lender, the Canadian Administrative Agent, the
Canadian Issuing Lender, the Canadian Swingline Lender and certain
of the Existing Lenders together with the other Lenders desire to
amend and restate (but not extinguish) the Restated Agreement in
its entirety as hereinafter set forth through the execution of this
Agreement.
C. It is the
intention of the parties hereto that this Agreement is an amendment
and restatement of the Restated Agreement, not a new or substitute
credit agreement or novation of the Restated Agreement.
NOW, THEREFORE, in
consideration of the premises and the agreements, provisions and
covenants herein contained, the Borrowers, the US Administrative
Agent, the US Issuing Lender, the US Swingline Lender, the Canadian
Administrative Agent, the Canadian Issuing Lender, the Canadian
Swingline Lender and the Lenders, (i) do hereby agree that the
Restated Agreement is amended and restated (but not substituted or
extinguished) in its entirety as set forth herein, and (ii) do
hereby further agree as follows:
ARTICLE I
DEFINITIONS AND ACCOUNTING TERMS
Section 1.1 Certain Defined Terms
. As used in this
Agreement, the defined terms set forth in the recitals above shall
have the meanings set forth above and the following terms shall
have the following meanings (unless otherwise indicated, such
meanings to be equally applicable to both the singular and plural
forms of the terms defined):
“
3-Month LIBOR ” means, for any day, the rate of
interest equal to the Eurocurrency Rate then in effect for delivery
for a three (3) month period.
“
Acceptable Security Interest ” means a security
interest which (a) exists in favor of the Applicable
Administrative Agent for its benefit and the ratable benefit of the
applicable Secured Parties, (b) is
superior to all
other security interests (other than the Permitted Liens),
(c) secures the Obligations or the Canadian Obligations, as
applicable, (d) is perfected other than with respect to
equipment the ownership of which is evidenced by a certificate of
title, and (e) enforceable against the Credit Party which
created such security interest.
“
Acceptance Fee ” means a fee payable in Canadian
Dollars by the Canadian Borrower to the Canadian Administrative
Agent for the account of a Canadian Lender with respect to the
acceptance of a B/A or the making of a B/A Equivalent Advance on
the date of such acceptance or loan, calculated on the face amount
of the B/A or the B/A Equivalent Advance at the rate per annum
applicable on such date as set forth in the column labeled
“Eurocurrency Advances/BA Margin” in the definition of
“Applicable Margin” on the basis of the number of days
in the applicable Contract Period (including the date of acceptance
and excluding the date of maturity) and a year of 365 days (it
being agreed that the rate per annum applicable to any B/A
Equivalent Advance is equivalent to the rate per annum otherwise
applicable to the discount relating to the Bankers’
Acceptance which has been replaced by the making of such B/A
Equivalent Advance pursuant to Section 2.5).
“
Account ” means an account (as that term is defined in
the UCC).
“
Account Debtor ” means any Person who is obligated on
an Account, chattel paper, or a general intangible.
“
Acquisition ” means the purchase by the Company or any
of its Subsidiaries of any business, including the purchase of
associated assets or operations or the Equity Interests of a
Person.
“
Adjusted Base Rate ” means, for any day, the
fluctuating rate per annum of interest equal to the greatest of
(a) the Prime Rate in effect on such day,(b) the Federal Funds
Rate in effect on such day plus 0.5%, (c) a rate determined by
the US Administrative Agent to be the 3-Month LIBOR plus 1.0% and
(d) 3.50%. Any change in the Adjusted Base Rate due to a
change in the Prime Rate, 3-Month LIBOR or the Federal Funds Rate
shall be effective on the effective date of such change in the
Prime Rate, 3-Month LIBOR or the Federal Funds Rate.
“
Administrative Agent ” means US Administrative Agent
or Canadian Administrative Agent.
“
Administrative Agent’s Office ” means, with
respect to any currency, the Applicable Administrative
Agent’s address and, as appropriate, account as set forth on
Schedule III, or such other address or account with respect to
such currency as the Applicable Administrative Agent may from time
to time notify to the Applicable Borrower and the US Lenders or
Canadian Lenders, as applicable.
“
Administrative Questionnaire ” means an Administrative
Questionnaire in a form supplied by the Applicable Administrative
Agent.
“
Advance ” means (a) a US Advance, (b) a
Canadian Advance, (c) a US Swingline Advance, and (d) a
Canadian Swingline Advance.
“
Affiliate ” means, with respect to a specified 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.
“
Agreed Currency ” means, subject to Section 1.7
and Section 1.8, (a) Dollars and (b) any other
Eligible Currency approved in accordance with Section 1.7. Any
amendment to this definition of “Agreed Currency” shall
require the consent of all US Lenders.
-2-
“
Applicable Administrative Agent ” means (a) the
US Administrative Agent, with respect to the US Facility, US
Security Documents, or US Collateral, and (b) the Canadian
Administrative Agent, with respect to the Canadian Facility,
Canadian Security Documents, or the Canadian Collateral.
“
Applicable Borrower ” means (a) the US Borrower,
with respect to the US Facility, and (b) the Canadian Borrower,
with respect to the Canadian Facility.
“
Applicable Issuing Lender ” means (a) the US
Issuing Lender or an Underlying Issuer, with respect to US Letters
of Credit, and (b) Canadian Issuing Lender, with respect to
the Canadian Letters of Credit.
“
Applicable Margin ” means, with respect to each Type
of Advance, and the Letters of Credit, the rate per annum set forth
in the pricing grid below for the relevant Type of such Advance
based on the relevant Excess Availability Level applicable at such
time. The Applicable Margin for any Advance shall change when and
as the relevant Excess Availability Level changes. Notwithstanding
the Excess Availability Level, (a) Level II shall apply for
the period from the Third Amendment Effective Date to the six month
anniversary date thereof, and (b) Level III shall apply during
the existence and continuance of any Event of Default. If for any
reason Excess Availability Amount shall be calculated improperly,
due to inaccurate reporting or otherwise, and the Applicable Margin
applied during any period is less than the Applicable Margin that
should have been applied, then the applicable Borrower shall
promptly pay to the Applicable Administrative Agent any additional
interest that should have accrued during such period. The foregoing
shall survive any termination of this Agreement.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Applicable Margin
|
|
|
|
|
|
|
|
|
|
Eurocurrency
|
|
|
|
|
|
|
|
|
|
Advances / BA
|
|
Level
|
|
Excess Availability
Amount
|
|
Base Rate Advances
|
|
Margin
|
|
|
|
Greater than or
equal to $150,000,000
|
|
|
3.75
|
%
|
|
|
3.75
|
%
|
|
|
|
Less than
$150,000,000 but greater than or equal to $75,000,000
|
|
|
4.00
|
%
|
|
|
4.00
|
%
|
|
|
|
Less than
$75,000,000
|
|
|
4.25
|
%
|
|
|
4.25
|
%
|
“
Applicable Percentage ” means:
(a) with
respect to the US Facility and any US Lender, (i) the ratio
(expressed as a percentage) of such Lender’s US Commitment at
such time to the aggregate US Commitments of the US Lenders at such
time or (ii) if the US Commitments have been terminated or
expired, the ratio (expressed as a percentage) of such US
Lender’s aggregate outstanding US Advances at such time to
the total aggregate outstanding US Advances at such
time;
(b) with
respect to the Canadian Facility and any Canadian Lender,
(i) the ratio (expressed as a percentage) of such Canadian
Lender’s Canadian Commitment at such time to the aggregate
Canadian Commitments of the Canadian Lenders at such time or
(ii) if the Canadian Commitments have been terminated or
expired, the ratio (expressed as a percentage) of such Canadian
Lender’s aggregate outstanding Canadian Advances at such time
to the total aggregate outstanding Canadian Advances at such time;
and
(c) with
respect to the Facilities as a whole and to any Lender,
(i) the ratio (expressed as a percentage) of such
Lender’s Commitments at such time to the aggregate
Commitments of the Lenders at such time or (ii) if the
Commitments have been terminated or expired, the ratio (expressed
as a
-3-
percentage) of
such Lender’s aggregate outstanding Advances at such time to
the total aggregate outstanding Advances at such time.
“
Applicable Swingline Lender ” means US Swingline
Lender, with respect to US Swingline Advances, or Canadian
Swingline Lender, with respect to Canadian Swingline
Advances.
“
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.
“
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 executed by a Lender and an Eligible Assignee and
accepted by the US Administrative Agent, and if under the Canadian
Facility, also accepted by the Canadian Administrative Agent, in
substantially the form set forth in Exhibit A.
“ Base
Rate Advance ” means a US Advance or a Canadian Advance
denominated in Dollars which bears interest based upon the Adjusted
Base Rate or the Canadian Base Rate, respectively.
“ B/A
Advance ” means a B/A accepted and purchased by a
Canadian Lender pursuant to Section 2.5 or a B/A Equivalent Advance
made by a Canadian Lender pursuant to Section 2.5. For greater
certainty, all provisions of this Agreement that are applicable to
Bankers’ Acceptances are also applicable, mutatis
mutandis , to B/A Equivalent Advances.
“ B/A
Equivalent Advance ” shall have the meaning assigned to
such term in Section 2.5.
“ B/A
Borrowing ” means a Borrowing comprised of one or more
Bankers’ Acceptances or, as applicable, B/A Equivalent
Advance, as to which a single Contract Period is in
effect.
“
Bankers’ Acceptance ” and
“B/A” means a non-interest bearing bill of
exchange denominated in Canadian Dollars, drawn by the Canadian
Borrower, and accepted by a Canadian Lender in accordance with this
Agreement, and shall include a depository bill within the meaning
of the Depository Bills and Notes Act (Canada) and a bill of
exchange within the meaning of the Bills of Exchange Act
(Canada).
“
Block Amount ” means (a) with respect to the US
Facility, $11,250,000 and (b) with respect to the Canadian
Facility, $1,250,000. Notwithstanding anything herein to the
contrary, (i) no direct or indirect changes to this definition
of “Block Amount” may be made to the extent and only to
the extent that any such change results in more credit being made
available to the Canadian Borrower based upon the Credit Amount,
without the consent of the Canadian Majority Lenders and the
Canadian Administrative Agent and (ii) no direct or indirect
changes to this definition of “Block Amount” may be
made to the extent and only to the extent that any such change
results in more credit being made available to the US Borrower
based upon the Credit Amount, without the consent of the US
Majority Lenders and the US Administrative Agent.
“ Bond
Issuance ” means the issuance by the US Borrower of up to
$650,000,000 of Debt, which Debt (a) shall have (i) a
scheduled maturity date that is no earlier than December 6,
2016, (ii) maintenance and financial covenants and restrictions
that are no more restrictive in any material respect than those set
forth in this Agreement and the other Credit Documents as
determined by the US Administrative Agent, (iii) no
restriction on the ability of the US Borrower or any of its
Subsidiaries to amend, modify or otherwise supplement this
Agreement or the other Credit Documents, (iv) no Lien securing
such Debt, (v) no restriction on the ability of the US
Borrower or any of its Subsidiaries to guarantee the Obligations
or
-4-
pledge assets
as collateral security for the Obligations, and (vi) a bullet
repayment and not provide for scheduled amortization or mandatory
prepayments (other than amortization resulting from any mandatory
prepayments required in respect of such Debt in connection with the
occurrence of an event of default under such Debt, a change of
control of the issuer (including a disposition of all or
substantially all of the assets of the US Borrower and its
Subsidiaries, a liquidation or dissolution of the US Borrower, or
any event constituting a Change of Control (as defined herein) or
an asset sale by the issuer or a Subsidiary thereof),
(b) shall not otherwise cause the occurrence of a Default or
Event of Default after giving effect to the issuance of such Debt,
and (c) may be guaranteed by the Subsidiaries of the US
Borrower, provided that no Lien secures such guarantees and such
Subsidiaries are Obligors.
“
Borrowing ” means a US Borrowing, Canadian Borrowing,
or a B/A Borrowing.
“
Borrowing Base Certificate ” means, as applicable, the
US Borrowing Base Certificate or the Canadian Borrowing Base
Certificate.
“
Business Day ” means any day other than a Saturday,
Sunday or other day on which commercial banks are authorized to
close under the Legal Requirements of, or are in fact closed in,
the state where the US 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
Advance denominated in Dollars, any fundings, disbursements,
settlements and payments in Dollars in respect of any such
Eurocurrency Advance, or any other dealings in Dollars to be
carried out pursuant to this Agreement in respect of any such
Eurocurrency Advance, 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
Advance denominated in Euro, any fundings, disbursements,
settlements and payments in Euro in respect of any such
Eurocurrency Advance, or any other dealings in Euro to be carried
out pursuant to this Agreement in respect of any such Eurocurrency
Advance, means a TARGET Day;
(c) if such
day relates to any interest rate settings as to a Eurocurrency
Advance 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;
(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 Advance 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 Advance (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; and
(e) if such
day also relates to any fundings, disbursements, settlements and
payments under the Canadian Facility, means any such day on which
banks are not required or authorized by law to close in Calgary,
Alberta Canada and Toronto, Canada.
“
Canadian Administrative Agent ” means HSBC in its
capacity as agent for the Canadian Lenders pursuant to
Article VIII and any successor agent pursuant to
Section 8.6; provided that the Canadian Administrative Agent
shall at all times be a Canadian resident for purposes of the
ITA.
-5-
“
Canadian Advance ” means (a) an advance by a
Canadian Lender to the Canadian Borrower as a part of a Borrowing
pursuant to Section 2.1 and refers to either a Canadian Base
Rate Advance or a Eurocurrency Advance, and (b) a B/A accepted
and purchased by a Canadian Lender pursuant to Section 2.5 and B/A
Equivalent Advances made by a Canadian Lender pursuant to
Section 2.5.
“
Canadian Base Rate ” means, on any day:
(a) for
Canadian Advances and Canadian Swingline Advances denominated in
Canadian Dollars, the rate per annum equal to the greatest of
(i) the annual rate of interest announced from time to time by
the Canadian Administrative Agent as its prime rate in effect at
its principal office in Toronto, Ontario on such day for
determining interest rates on Canadian Dollar denominated
commercial loans made in Canada; (ii) the annual rate of
interest equal to the sum of (A) the CDOR Rate in effect on
such day and (B) 1% and (iii) 3.50%, and
(b) for
Canadian Advances and Canadian Swingline Advances denominated in
Dollars, the rate per annum equal to the greatest of (i) the
annual rate of interest announced from time to time by the Canadian
Administrative Agent as its base rate in effect at its principal
office in Toronto, Ontario on such day for determining interest
rates on Dollar denominated commercial loans made in Canada,
(ii) the Federal Funds Rate in effect on such day plus
1 / 2
of 1%, and (iii) 3.50%. Each
change in the Canadian Base Rate shall be effective on the date
such change is publicly announced as being effective.
“
Canadian Base Rate Advance ” means Canadian Base Rate
(C$) Advance or Canadian Base Rate (US$) Advance.
“
Canadian Base Rate (C$) Advance ” means a Canadian
Advance in Canadian Dollars that bears interest as provided in part
(a) of the definition of Canadian Base Rate.
“
Canadian Base Rate (US$) Advance ” means a Canadian
Advance in Dollars that bears interest as provided in part
(b) of the definition of Canadian Base Rate.
“
Canadian Benefit Plans ” means all employee benefit
plans of any nature or kind whatsoever that are not Canadian
Pension Plans and are maintained or contributed to by the US
Borrower or any of the Canadian Subsidiaries, in each case covering
employees in Canada.
“
Canadian Borrowing ” means a borrowing consisting of
simultaneous Canadian Advances of the same Type made by the
Canadian Lenders pursuant to Section 2.1.
“
Canadian Borrowing Base ” means, as of any date of
determination, the result of:
(a) 80% of
the amount of Canadian Eligible Billed Accounts;
plus
(b) if the
Canadian Borrower has requested credit for Equipment under the
Canadian Borrowing Base, the lesser of (i) $15,000,000, and
(ii) 80% times the most recently determined Net
Liquidation Percentage times the value (calculated on a
basis consistent with US Borrower’s historical accounting
practices) of US Borrower’s and the US Subsidiary
Guarantors’ Equipment; minus
(c) the
aggregate amount of reserves, if any, established by Canadian
Administrative Agent under Section 2.1(g).
-6-
Notwithstanding
anything herein to the contrary, no direct or indirect changes to
this definition of “Canadian Borrowing Base” may be
made (including any changes to the defined terms used in this
definition), to the extent and only to the extent that any such
change results in more credit being made available to Canadian
Borrower based upon the Canadian Borrowing Base, without the
consent of all Canadian Lenders.
“
Canadian Borrowing Base Certificate ” means a
certificate setting forth a detailed calculation of the Canadian
Borrowing Base in form and with details reasonably satisfactory to
the Canadian Administrative Agent.
“
Canadian Cash Collateral Account ” means a special
cash collateral account pledged to the Canadian Administrative
Agent containing cash deposited pursuant to the terms hereof to be
maintained with the Administrative Agent in accordance with
Section 2.3.
“
Canadian Collateral ” means (a) all
“Collateral”, “Pledged Collateral”,
“Pledged Accounts” and “Mortgaged Property”
(as defined in each of the Canadian Mortgages and the Canadian
Security Agreements, as applicable) or similar terms used in the
Canadian Security Documents, and (b) all amounts contained in
the Canadian Borrower’s and Foreign Subsidiaries’ bank
accounts.
“
Canadian Commitment ” means, for each Canadian Lender,
the obligation of such Lender to advance to Canadian Borrower the
amount set opposite such Lender’s name on Schedule II as
its Canadian Commitment, or if such Lender has entered into any
Assignment and Assumption, set forth for such Lender as its
Canadian Commitment in the applicable Register, as such amount may
be reduced, increased or reallocated pursuant to Section 2.1;
provided that, after the Maturity Date, the Canadian
Commitment for each Lender shall be zero; and provided
further that, the aggregate Canadian Commitments shall not exceed
$25,000,000 at any time without the consent of the US
Administrative Agent and shall not exceed $75,000,000 at any time
without the consent of the US Administrative Agent and the US
Majority Lenders.
“
Canadian Commitment Fee ” means the fees required
under Section 2.9(b).
“
Canadian Dollars ” and “ C$ ” means
the lawful money of Canada.
“
Canadian Dollar Equivalent ” shall mean, on any date
of determination, with respect to any amount in Dollars, the
equivalent in Canadian Dollars of such amount, determined by the
Canadian Administrative Agent using the Exchange Rate then in
effect.
“
Canadian Eligible Billed Accounts ” means the Eligible
Accounts of the Canadian Borrower and each Canadian Subsidiary of
the Canadian Borrower that is a Guarantor with respect to which (i)
the goods giving rise to such Account have been shipped and billed
to the Account Debtor, or (ii) the services giving rise to such
Account have been performed and billed to the Account
Debtor.
“
Canadian Equipment Credit Amount ” means, if the
Canadian Borrower has requested credit for Equipment under the
Canadian Borrowing Base, the amount of credit given to the Canadian
Borrowing Base under clause (b) of the definition of
“Canadian Borrowing Base.”
“
Canadian Facility ” means, collectively, (a) the
revolving credit facility described in Section 2.1(b) and
Section 2.5, (b) the discretionary swing line subfacility
provided by the Canadian Swingline Lender described in
Section 2.4 and (c) the letter of credit subfacility
provided by the Canadian Issuing Lender described in
Section 2.3.
-7-
“
Canadian Guaranty ” means, individually and
collectively, the guarantees, substantially in the form of
Exhibit B or such other form reasonably acceptable to the
Guarantor executing such and the Administrative Agents, and made by
the Company or a Foreign Subsidiary Guarantor in favor of the
Canadian Administrative Agent for the benefit of the Canadian
Secured Parties.
“
Canadian Issuing Lender ” means HSBC, in its capacity
as the Canadian Lender that issues Canadian Letters of Credit
pursuant to the terms of this Agreement.
“
Canadian Lender Party ” has the meaning set forth in
Section 2.15(f).
“
Canadian Lenders ” means Lenders having a Canadian
Commitment or if such Canadian Commitments have been terminated,
Lenders that are owed Canadian Advances. Each Canadian Lender at
all times shall be a Canadian Resident Lender and shall be a
Schedule I Bank, a Schedule II Bank or a
Schedule III Bank.
“
Canadian Letter of Credit ” means any standby or
commercial letter of credit issued by the Canadian Issuing Lender
for the account of the Canadian Borrower or any Guarantor pursuant
to the terms of this Agreement, in such form as may be agreed by
the Canadian Borrower and the Canadian Issuing Lender.
“
Canadian Letter of Credit Application ” means the
Canadian Issuing Lender’s standard form letter of credit
application for standby or commercial letters of credit which has
been executed by the Canadian Borrower and accepted by the Canadian
Issuing Lender in connection with the issuance of a Canadian Letter
of Credit.
“
Canadian Letter of Credit Documents ” means all
Canadian Letters of Credit, Canadian Letter of Credit Applications
and amendments thereof, and agreements, documents, and instruments
entered into in connection therewith or relating
thereto.
“
Canadian Letter of Credit Exposure ” means, at the
date of its determination by the Canadian Administrative Agent, the
aggregate outstanding undrawn amount of Canadian Letters of Credit
plus the aggregate unpaid amount of all of the Canadian
Borrower’s payment obligations under drawn Canadian Letters
of Credit.
“
Canadian Letter of Credit Extension ” means, with
respect to any Canadian Letter of Credit, the issuance thereof or
extension of the expiry date thereof, or the increase of the amount
thereof.
“
Canadian Letter of Credit Maximum Amount ” means
C$2,500,000.00; provided that, on and after the Maturity
Date, the Canadian Letter of Credit Maximum Amount shall be
zero.
“
Canadian Letter of Credit Obligations ” means all
obligations of the Canadian Borrower under this Agreement in
connection with the Canadian Letters of Credit.
“
Canadian Majority Lenders ” means (a) at any time
when there are more than two Canadian Lenders, two or more Canadian
Lenders holding at least 51% of the sum of the unutilized Canadian
Commitments plus the Canadian Outstandings (with the aggregate
amount of each Lender’s risk participation and funded
participation in the Canadian Letter of Credit Obligations and
Canadian Swingline Advances being deemed “held” by such
Canadian Lender for purposes of this definition); and (b) at
any time when there are one or two Canadian Lenders, all Canadian
Lenders.
-8-
“
Canadian Mortgages ” means each land mortgage in form
and substance reasonably acceptable to the Canadian Borrower and
the Administrative Agents and executed by the Canadian Borrower or
any Foreign Subsidiary of the Company to secure all or a portion of
the Canadian Obligations.
“
Canadian Note ” means a promissory note of the
Canadian Borrower payable to the order of a Canadian Lender in the
amount of such Lender’s Canadian Commitment, in the form
provided by the Canadian Administrative Agent and acceptable to the
Canadian Borrower.
“
Canadian Obligations ” means the Obligations owing by
the Canadian Borrower.
“
Canadian Outstandings ” means, as of the date of
determination, the sum of (a) the Dollar Equivalent of the
aggregate outstanding amount of all Canadian Advances plus
(b) the Dollar Equivalent of the Canadian Letter of Credit
Exposure plus (c) the Dollar Equivalent of the
aggregate outstanding amount of all Canadian Swingline
Advances.
“
Canadian Pension Plans ” means each plan that is
considered to be a pension plan for the purposes of any applicable
pension benefits standards statute and/or regulation in Canada
established, maintained or contributed to by the Canadian Borrower
or any of the Canadian Subsidiaries for its employees or former
employees.
“
Canadian Resident Lender ” has the meaning set forth
in Section 2.15(f).
“
Canadian Secured Parties ” means the Canadian
Administrative Agent, the Canadian Lenders, the Canadian Issuing
Lender, the Canadian Swingline Lender, and Swap Counterparties who
are owed any Canadian Obligations.
“
Canadian Security Agreement ” means, individually and
collectively, the security agreements, substantially in the form of
Exhibit E, entered into by the Canadian Borrower or a Foreign
Subsidiary Guarantor, as grantor, and the Canadian Administrative
Agent for the benefit of the Canadian Secured Parties.
“
Canadian Security Documents ” means the Canadian
Mortgages, Canadian Security Agreement, and each other Security
Document to which the Canadian Borrower or any US Subsidiary
Guarantor or Foreign Subsidiary Guarantor is a party and that
purports to grant a Lien in the assets of any such Person in favor
of the Canadian Administrative Agent for the benefit of the
Canadian Secured Parties.
“
Canadian Subsidiaries ” means the Subsidiaries
organized under the laws of Canada or any province, territory or
other political subdivision thereof.
“
Canadian Swingline Advance ” means an advance by the
Canadian Swingline Lender to the Canadian Borrower pursuant to
Section 2.4.
“
Canadian Swingline Amount ” means, for the Canadian
Swingline Lender, C$5,000,000 or such greater amount as agreed to
by the Canadian Swingline Lender in its sole discretion;
provided that, on and after the Maturity Date, the Canadian
Swingline Amount shall be zero.
“
Canadian Swingline Lender ” means HSBC.
“
Canadian Swingline Note ” means a promissory note made
by the Canadian Borrower payable to the order of the Canadian
Swingline Lender in the form provided by the Canadian
Administrative Agent and acceptable to the Canadian
Borrower.
-9-
“
Canadian Swingline Payment Date ” means the Maturity
Date.
“
Canadian Withholding Tax ” has the meaning set forth
in Section 2.15(f).
“
Capital Expenditures ” for any Person and period of
its determination means, without duplication, the aggregate of all
expenditures and costs (whether paid in cash or accrued as
liabilities during that period and including that portion of
Capital Leases which is capitalized on the balance sheet of such
Person) of such Person during such period that, in conformity with
GAAP, are required to be included in or reflected by the property,
plant, or equipment or similar fixed asset accounts reflected in
the balance sheet of such Person.
“
Capital Leases ” means, for any Person, any lease of
any Property by such Person as lessee which would, in accordance
with GAAP, be required to be classified and accounted for as a
capital lease on the balance sheet of such Person.
“ Cash
Collateral Account ” means the US Cash Collateral Account
or the Canadian Cash Collateral Account.
“ CDOR
Rate ” means, for each day in any period, the annual rate
of interest that is the rate based on an average rate applicable to
Canadian Dollar bankers’ acceptances for a term equal to the
term of the relevant Contract Period (or for a term of 30 days
for purposes of determining the Canadian Base Rate) appearing on
the Reuters Screen CDOR Page at approximately 10:00 a.m.
(Toronto, Ontario time), on such date, or if such date is not a
Business Day, on the immediately preceding Business Day;
provided that if such rate does not appear on the Reuters
Screen CDOR Page on such date as contemplated, then the CDOR Rate
on such date shall be the arithmetic average of the Discount Rate
quoted by each Schedule II/III Reference Bank (determined by
the Canadian Administrative Agent as of 10:00 a.m. (Toronto,
Ontario time) on such date) that would be applicable to Canadian
Dollar bankers’ acceptances for the relevant period quoted by
such bank as of 10:00 a.m. (Toronto, Ontario time) on such
date or, if such date is not a Business Day, on the immediately
preceding Business Day.
“
CERCLA ” means the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as amended,
state and local analogs, and all rules and regulations and
requirements thereunder in each case as now or hereafter in
effect.
“
Change in Control ” means the occurrence of any of the
following events: (a) the Company ceases to own, either
directly or indirectly, 100% of the Equity Interest in any
Subsidiary other than as a result of a sale of asset or merger
permitted under Section 6.7 or Section 6.8; (b) any
“person” or “group” (as such terms are used
in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934,
but excluding any employee benefit plan of such person or its
subsidiaries, and any person or entity acting in its capacity as
trustee, agent or other fiduciary or administrator of any such
plan) other than SCF becomes the “beneficial owner” (as
defined in Rules 13d-3 and 13d-5 under the Securities Exchange
Act of 1934, except that a person or group shall be deemed to have
“beneficial ownership” of all securities that such
person or group has the right to acquire (such right, an
“option right”), whether such right is exercisable
immediately or only after the passage of time), 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
(and taking into account all such securities that such person or
group has the right to acquire pursuant to any option right), or
(c) 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
-10-
nomination at
least a majority of that board or equivalent governing body or
(iii) whose election or nomination to that board or other
equivalent governing body was approved by individuals referred to
in clauses (i) and (ii) above constituting at the time of
such election or nomination at least a majority of that board or
equivalent governing body.
“
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 or (c) the making or issuance of any
request, guideline or directive (whether or not having the force of
law) by any Governmental Authority.
“
Class ” has the meaning set forth in
Section 1.4.
“
Code ” means the Internal Revenue Code of 1986, as
amended, and the regulations and published interpretations
thereof.
“
Collateral ” means, collectively, all of the US
Collateral and the Canadian Collateral.
“
Collateral Access Agreement ” means a landlord waiver,
bailee letter, or acknowledgement agreement of any lessor,
warehouseman, processor, consignee, or other Person in possession
of, having a Lien upon, or having rights or interests in
Company’s or its Subsidiaries’ books and records,
Equipment, or Inventory, in each case, in form and substance
reasonably satisfactory to the Applicable Administrative
Agent.
“
Collateralization ” means (a) with respect to
Letter of Credit Obligations, either (i) providing cash collateral
(pursuant to documentation reasonably satisfactory to Applicable
Administrative Agent, including provisions that specify that the
Letter of Credit fee and all usage charges set forth in the
Agreement will continue to accrue while the Letters of Credit are
outstanding) to be held by Applicable Administrative Agent for the
benefit of the applicable Lenders in an amount equal to 105% of
Letter of Credit Exposure related to Letters of Credit denominated
in Dollars and 115% of the Letter of Credit Exposure related to
Letters of Credit denominated in any Foreign Currency,
(ii) causing the Letters of Credit to be returned to the
Applicable Issuing Lender, or (iii) providing Applicable
Administrative Agent with a standby letter of credit, in form and
substance reasonably satisfactory to such Administrative Agent,
from a commercial bank acceptable to such Administrative Agent (in
its sole discretion) in an amount equal to 105% of Letter of Credit
Exposure related to Letters of Credit denominated in Dollars and
115% of the Letter of Credit Exposure related to Letters of Credit
denominated in any Foreign Currency (it being understood that the
Letter of Credit fee and all usage charges set forth in the
Agreement will continue to accrue while the Letters of Credit are
outstanding and that any such fees that accrue must be an amount
that can be drawn under any such standby letter of credit), and
(b) with respect to Obligations owing to Swap Counterparties
under Hedging Arrangements, providing cash collateral (pursuant to
documentation reasonably satisfactory to US Administrative Agent)
to be held by US Administrative Agent for the benefit of such Swap
Counterparties in an amount determined by US Administrative Agent
as sufficient to satisfy the reasonably estimated credit exposure
with respect to the then existing such Obligations.
“
Commitment Fee ” means the Canadian Commitment Fee or
the US Commitment Fee.
“
Commitments ” means, as to any Lender, its US
Commitment or Canadian Commitment, if applicable.
“
Company ” has the meaning set forth in the
recitals.
-11-
“
Compliance Certificate ” means a compliance
certificate executed by an authorized officer of the Company or
such other Person as required by this Agreement in substantially
the same form as Exhibit F that shall include a certification
by an authorized officer of the Company that no Default has
occurred and is continuing.
“
Computation Date ” means (a) the Effective Date
and (b) so long as any outstanding Credit Extension under any
Facility is denominated in a Foreign Currency, (i) the last
Business Day of each calendar quarter, (ii) the date of any
proposed Credit Extension if the US Administrative shall determine
or the US Majority Lenders shall require, (iii) the date of
any reduction or reallocation of Commitments pursuant to
Sections 2.1(c) or (d), (iv) if any such Credit
Extensions are under the US Facility, such additional dates as the
US Administrative Agent shall determine or the US Majority Lenders
shall require, and (v) if any such Credit Extensions are under
the Canadian Facility, such additional dates as the Canadian
Administrative Agent shall determine or the Canadian Majority
Lenders shall require.
“
Contract Period ” means the term of a B/A Advance
selected by the Canadian Borrower in accordance with
Section 2.5, commencing on the date of such B/A Advance and
expiring on a Business Day which shall be either 30 days,
60 days, 90 days or 180 days thereafter,
provided that (a) subject to clause (b) below, each
such period shall be subject to such extensions or reductions as
may be reasonably determined by the Canadian Administrative Agent
to ensure that each Contract Period shall expire on a Business Day,
and (b) no Contract Period shall extend beyond the Maturity
Date.
“
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.
“
Control Agreement ” means a control agreement, in form
and substance reasonably satisfactory to the US Administrative
Agent, executed and delivered by the Company or one of its
Subsidiaries, US Administrative Agent, and the applicable
securities intermediary (with respect to a securities account) or
bank (with respect to a deposit account).
“
Controlled Group ” means all members of a controlled
group of corporations and all businesses (whether or not
incorporated) under common control which, together with the Company
or any Subsidiary (as applicable), are treated as a single employer
under Section 414 of the Code.
“
Convert”, “Conversion” and
“Converted ” each refers to (a) a conversion
of US Advances of one Type into US Advances of another Type
pursuant to Sections 2.6(b) and (c), (b) a conversion of
B/A Advances into Canadian Base Rate Advances pursuant to
Sections 2.6(b) and (c), or (c) a conversion of Canadian
Base Rate Advances into B/A Advances pursuant to
Sections 2.6(b) and (c) and Section 2.5.
“
Credit Amount ” means, as of any date of determination
(a) with respect to the US Facility, an amount equal to the
(i) lesser of the US Borrowing Base and the aggregate US
Commitments, in each case, as in effect at such time, minus
(ii) the Block Amount, and (b) with respect to the
Canadian Facility, an amount equal to (i) the lesser of the
Canadian Borrowing Base and the aggregate Canadian Commitments, in
each case, as in effect at such time, minus , (ii) the
Block Amount.
“
Credit Documents ” means this Agreement, the Notes,
the Letter of Credit Documents, the Guaranties, the Notices of
Borrowing, the Notices of Conversion, the Security Documents, the
Fee Letter, and each other agreement, instrument, or document
executed at any time in connection with this Agreement.
“
Credit Extension ” means an Advance or a Letter of
Credit Extension.
-12-
“
Credit Parties ” means the Borrowers and the
Guarantors.
“
Custodial Agreement ” means a custodial agreement, in
form and substance reasonably acceptable to the US Administrative
Agent, whereby the US Administrative Agent appoints certain
employees of the US Borrower and its Subsidiaries to serve as the
custodians thereunder and pursuant to which such employees shall
act as agents for and on behalf of the US Administrative Agent as
the secured party in connection with Collateral that are
certificated.
“
Daily Balance ” means, as of any date of determination
and with respect to any Obligation, the amount of such Obligation
(other than Obligations under Hedging Arrangements) owed at the end
of such day.
“
Debt ” means, for any Person, without duplication:
(a) indebtedness of such Person for borrowed money, including,
without limitation, the face amount of any letters of credit
supporting the repayment of indebtedness for borrowed money issued
for the account of such Person and obligations under letters of
credit, banker’s acceptances, and agreements relating to the
issuance of letters of credit or acceptance financing, including
Letters of Credit; (b) obligations of such Person evidenced by
bonds, debentures, notes or other similar instruments;
(c) obligations of such Person to pay the deferred purchase
price of property, services, or Acquisitions (including, without
limitation, any earn-out obligations, contingent obligations, or
other similar obligations associated with such purchase, and
including obligations that are non-recourse to the credit of such
Person but are secured by the assets of such Person, but excluding
trade accounts payable); (d) obligations of such Person as
lessee under Capital Leases and obligations of such Person in
respect of synthetic leases; (e) obligations of such Person
under any Hedging Arrangement (except that such obligations shall
not constitute Debt for purposes of the calculations for compliance
under Sections 6.18); (f) obligations of such Person
owing in respect of redeemable preferred stock of such Person;
(g) obligations of such Person under direct or indirect
guaranties in respect of, and obligations (contingent or otherwise)
of such Person to purchase or otherwise acquire, or otherwise to
assure a creditor against loss in respect of, indebtedness or
obligations of others of the kinds referred to in clauses
(a) through (f) above; and (h) indebtedness or
obligations of others of the kinds referred to in clauses
(a) through (g) secured by any Lien on or in respect of
any Property of such Person.
“
Debtor Relief Laws ” means (a) the Bankruptcy
Code of the United States, (b) the Bankruptcy and Insolvency
Act (Canada), (c) the Companies’ Creditors Arrangement
Act (Canada) and (d) all other liquidation, conservatorship,
bankruptcy, assignment for the benefit of creditors, moratorium,
rearrangement, receivership, insolvency, reorganization, or similar
debtor relief laws of the United States or other applicable
jurisdictions from time to time in effect and affecting the rights
of creditors generally.
“
Default ” means (a) an Event of Default or
(b) any event or condition which with notice or lapse of time
or both would, unless cured or waived, become an Event of
Default.
“
Defaulting Lender ” means, at any time, a Lender as to
which either Administrative Agent has notified the applicable
Borrower that (i) such Lender has failed for three or more
Business Days to comply with its obligations under this Agreement
to make an Advance or make a payment to an Issuing Lender in
respect of funding its participation in Letters of Credit or
Swingline Advance (each a “ funding obligation
”), (ii) such Lender has notified either Administrative
Agent, or has stated publicly, that it will not comply with any
such funding obligation hereunder, or has defaulted on its funding
obligations under any other loan agreement or credit agreement or
other similar/other financing agreement and fails, within ten
Business Days after written request by the applicable
Administrative Agent, to confirm unconditionally in writing that it
will comply with the terms of this Agreement relating to its
prospective funding obligations, (iii) such Lender has, for
three or more Business Days, failed to confirm in writing to either
Administrative Agent, in response to a written request of such
Administrative Agent, that it will comply with its funding
obligations hereunder, or (iv) a Lender Insolvency Event has
occurred and is continuing with respect to
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such Lender.
Any determination that a Lender is a Defaulting Lender under
clauses (i) through (iv) above will be made by the Applicable
Administrative Agent in its sole discretion acting in good faith.
The Applicable Administrative Agent will promptly send to all
parties hereto a copy of any notice to the Borrowers provided for
in this definition.
“
Deficiency ” has the meaning specified therefor in
Section 2.7(c)(vii) of the Agreement.
“
Designated Account ” means the deposit account of US
Borrower identified on Schedule I.
“
Designated Currency ” means, (a) for Eurocurrency
Advances under the US Facility, the Agreed Currency which is
designated for such Eurocurrency Advances, (b) for US Base
Rate Advances, Dollars, (c) for US Swingline Advances and US
Letters of Credit, Dollars, (d) for Canadian Swingline
Advances, Canadian Dollars, (e) for B/As and B/A Equivalent
Advances, Canadian Dollars, (f) for Eurocurrency Advances
under the Canadian Facility, Dollars or Canadian Dollars,
(g) for Canadian Base Rate (C$) Advances, Canadian Dollars,
(h) for Canadian Base Rate (US$) Advances, Dollars, and
(i) for Canadian Letters of Credit, Canadian Dollars or
Dollars as designated by the Canadian Borrower.
“
Dilution ” means, as of any date of determination, the
greater of (a) a percentage, based upon the experience of the
immediately prior 90 consecutive days, that is the result of
dividing the Dollar amount of (i) bad debt write-downs,
discounts, advertising allowances, credits, or other dilutive items
with respect to the applicable Accounts during such period, by
(ii) billings with respect to such Accounts during such
period, and (b) a percentage, based upon the experience of the
immediately prior 360 consecutive days, that is the result of
dividing the Dollar amount of (i) bad debt write-downs,
discounts, advertising allowances, credits, or other dilutive items
with respect to the applicable Accounts during such period, by
(ii) billings with respect to such Accounts during such
period; provided that, Accounts owing as of the Third Amendment
Effective Date from the Account Debtor identified by the US
Borrower to the US Administrative Agent on or prior to the Third
Amendment Effective Date shall not be included in the calculation
of Dilution.
“
Dilution Reserve ” means, as of any date of
determination, an amount sufficient to reduce the advance rate
against Eligible Accounts of the applicable Credit Party by
1 percentage point for each percentage point by which Dilution
is in excess of 5.00%.
“
Discount Proceeds ” means for any B/A (or, as
applicable, any B/A Equivalent Advance), an amount (rounded to the
nearest whole cent, and with one-half of one cent being rounded up)
calculated on the applicable Borrowing date by
multiplying:
(a) the
face amount of the B/A (or, as applicable, any B/A Equivalent
Advance); by
(b) the
quotient of one divided by the sum of one plus the product
of:
(i) the Discount
Rate (expressed as a decimal) applicable to such B/A (or, as
applicable, any B/A Equivalent Advance), and
(ii) a fraction,
the numerator of which is the number of days in the Contract Period
of the B/A (or, as applicable, any B/A Equivalent Advance) and the
denominator of which is 365,
with such
quotient being rounded up or down to the fifth decimal place and
.000005 being rounded up.
“
Discount Rate ” means (a) with respect to any
Canadian Lender that is a Schedule I Bank, as applicable to a
B/A being purchased by such Lender on any day, the CDOR Rate; and
(b) with respect to any Canadian Lender that is not a
Schedule I Bank, as applicable to a B/A being purchased by
such Lender on any day, the lesser of (A) the CDOR Rate plus
10 basis points (0.10%), and (B) the average (as
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determined by
the Canadian Administrative Agent in good faith) of the respective
percentage discount rates (expressed to two decimal places and
rounded upward, if not in an increment of 1/100
th of 1%, to the nearest 0.01%) quoted by the
Schedule II/III Reference Banks as the percentage discount
rates at which the Schedule II/III Reference Banks would, in
accordance with their normal market practices, at or about
10:00 a.m. (Standard Time) on such date, be prepared to
purchase bankers’ acceptances accepted by the
Schedule II/III Reference Banks having a face amount and term
comparable to the face amount and term of such B/A.
“
Dollars ” and “ $ ” means 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 Foreign
Currency, the equivalent amount thereof in Dollars as determined by
the Applicable Administrative Agent or the Applicable Issuing
Lender, as the case may be, at such time on the basis of the
Exchange Rate (determined in respect of the most recent Computation
Date) for the purchase of Dollars with such Foreign
Currency.
“
Domestic Proceeds ” means all casualty insurance or
condemnation proceeds received by the Company or any Subsidiary
which do not constitute Foreign Proceeds.
“
Domestic Subsidiary ” means, with respect to any
Person, any of its Subsidiaries that is incorporated or organized
under the laws of the United States, any State thereof or the
District of Columbia.
“
EBITDA ” means, without duplication, for any Person,
the sum of (a) such Person’s consolidated Net Income for
such period plus (b) to the extent deducted in
determining such Person’s consolidated Net Income, Interest
Expense, taxes, depreciation, amortization and other non-cash
charges for such period; provided that such EBITDA shall be
subject to pro forma adjustments for Acquisitions and Nonordinary
Course Asset Sales assuming that such transactions had occurred on
the first day of the determination period, which adjustments shall
be made in accordance with the guidelines for pro forma
presentations set forth by the SEC.
“
Effective Date ” means the date of this
Agreement.
“
Eligible Accounts ” means those Accounts created by
(a) with respect to the US Facility, the US Borrower and the
US Subsidiary Guarantors and (b) with respect to the Canadian
Facility, the Canadian Borrower and the Canadian Subsidiaries, in
each case, arising in the ordinary course of its business, out of
such Person’s sale of goods or rendition of services, that
comply with each of the representations and warranties respecting
Eligible Accounts made in the Credit Documents, and that are not
excluded as ineligible by virtue of one or more of the excluding
criteria set forth below; provided , however , that
such criteria may be revised from time to time by Applicable
Administrative Agent in such Administrative Agent’s Permitted
Discretion to address the results of any audit performed by such
Administrative Agent from time to time after the Third Amendment
Effective Date. In determining the amount to be included, Eligible
Accounts shall be calculated net of customer deposits and unapplied
cash. Eligible Accounts shall not include the following:
(a) Accounts
that the Account Debtor has failed to pay within 90 days of
original invoice date or Accounts that the Account Debtor has
failed to pay within 60 days of due date or Accounts with
selling terms of more than 45 days,
(b) Accounts
owed by an Account Debtor (or its Affiliates) where 50% or more of
all Accounts owed by that Account Debtor (or its Affiliates) are
deemed ineligible under clause (a) above,
-15-
(c) Accounts
with respect to which the Account Debtor is an Affiliate of any
Borrower or an employee or agent of any Borrower or any Affiliate
of any Borrower,
(d) Accounts
arising in a transaction wherein goods are placed on consignment or
are sold pursuant to a guaranteed sale, a sale or return, a sale on
approval, a bill and hold, or any other terms by reason of which
the payment by the Account Debtor may be conditional,
(e) Accounts
that are not payable in Dollars,
(f) Accounts
with respect to which the Account Debtor either (i) does not
maintain its chief executive office in the United States or in
Canada, or (ii) is not organized under the laws of the United
States or any state thereof (or in the case of the Canadian
Facility, is not organized under the laws of Canada), or
(iii) is the government of any foreign country or sovereign
state, or of any state, province, municipality, or other political
subdivision thereof, or of any department, agency, public
corporation, or other instrumentality thereof, unless (y) the
Account is supported by an irrevocable letter of credit reasonably
satisfactory to Applicable Administrative Agent (as to form,
substance, and issuer or domestic confirming bank) that has been
delivered to such Administrative Agent and is directly drawable by
such Administrative Agent, or (z) the Account is covered by
credit insurance in form, substance, and amount, and by an insurer,
reasonably satisfactory to such Administrative Agent,
(g) Accounts
with respect to which the Account Debtor is either (i) the
United States, or Canada, or any department, agency, or
instrumentality of the United States or of Canada (exclusive,
however, of Accounts with respect to which US Borrower has
complied, to the reasonable satisfaction of US Administrative
Agent, with the Assignment of Claims Act, 31 USC §3727),
(ii) any state, district or territory of the United States; or
(iii) any province or territory of Canada,
(h) Accounts
with respect to which the Account Debtor is a creditor of any
Credit Party or any Subsidiary, has or has asserted a right of
setoff, or has disputed its obligation to pay all or any portion of
the Account, to the extent of such claim, right of setoff, or
dispute,
(i) Accounts
with respect to an Account Debtor whose total obligations owing to
Applicable Borrower exceed 15% (such percentage, as applied to a
particular Account Debtor, being subject to reduction by the
Applicable Administrative Agent in its Permitted Discretion if the
creditworthiness of such Account Debtor deteriorates) of all
Eligible Accounts for such Facility, to the extent of the
obligations owing by such Account Debtor in excess of such
percentage; provided , however , that, in each case,
the amount of Eligible Accounts that are excluded because they
exceed the foregoing percentage shall be determined by Applicable
Administrative Agent based on all of the otherwise Eligible
Accounts prior to giving effect to any eliminations based upon the
foregoing concentration limit,
(j) Accounts
with respect to which the Account Debtor is subject to any
proceedings under or pursuant to any Debtor Relief Laws, is not
Solvent, has gone out of business, or as to which any Credit Party
or Subsidiary has received notice of an imminent proceedings under
or pursuant to any Debtor Relief Laws or a material impairment of
the financial condition of such Account Debtor,
(k) Accounts,
the collection of which, Applicable Administrative Agent, in its
Permitted Discretion, believes to be doubtful by reason of the
Account Debtor’s financial condition,
(l) Accounts
that are not subject to a valid and perfected first priority Lien
in favor of the Applicable Administrative Agent,
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(m) Accounts
with respect to which the Account Debtor is a Sanctioned Person or
Sanctioned Entity, or
(n) Accounts
that represent the right to receive progress payments or other
advance billings that are due prior to the completion of
performance by the applicable Credit Party of the subject contract
for goods or services.
“
Eligible Assignee ” means (a) a Lender;
(b) an Affiliate of a Lender; (c) an Approved Fund, and
(d) any other Person (other than a natural person) approved by
(i) the US Administrative Agent and the US Issuing Lender (and
any Underlying Issuers) in the case of any assignment of a US
Commitment, (ii) the Canadian Administrative Agent in the case
of any assignment of a Canadian Commitment, (iii) unless an
Event of Default has occurred and is continuing at the time any
assignment is effected in accordance with Section 9.6, the US
Borrower with respect to any assignment of a US Commitment, and
(iv) unless an Event of Default has occurred and is continuing
at the time any assignment is effected in accordance with
Section 9.6, the Canadian Borrower with respect to any
assignment of a Canadian Commitment (each such approval not to be
unreasonably withheld or delayed); provided , however, that
neither the Company nor an Affiliate of the Company shall qualify
as an Eligible Assignee; and provided further ,
however, that in the case of any assignment of a Canadian
Commitment, such Lender must also satisfy Section
2.15(f).
“
Eligible Currency ” means any Foreign Currency
provided that: (a) quotes for loans in such currency are
available in the London interbank deposit market; (b) such
currency is freely transferable and convertible into Dollars in the
London foreign exchange market, (c) no approval of a
Governmental Authority in the country of issue of such currency is
required to permit use of such currency by any applicable Lender or
Applicable Issuing Lender for making loans or issuing letters of
credit, or honoring drafts presented under letters of credit in
such currency, and (d) there is no restriction or prohibition
under any applicable Legal Requirements against the use of such
currency for such purposes.
“ 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.
“
Environment ” or “ Environmental ”
shall have the meanings set forth in 42 U.S.C. 9601(8)
(1988).
“
Environmental Claim ” means any third party (including
governmental agencies and employees) action, lawsuit, claim,
demand, regulatory action or proceeding, order, decree, consent
agreement or notice of potential or actual responsibility or
violation (including claims or proceedings under the Occupational
Safety and Health Acts or similar laws or requirements relating to
health or safety of employees) which seeks to impose liability
under any Environmental Law.
“
Environmental Law ” means all federal, state, and
local laws, rules, regulations, ordinances, orders, decisions,
agreements, and other requirements, including common law theories,
now or hereafter in effect and relating to, or in connection with
the Environment, health, or safety, including without limitation
CERCLA, relating to (a) pollution, contamination, injury,
destruction, loss, protection, cleanup, reclamation or restoration
of the air, surface water, groundwater, land surface or subsurface
strata, or other natural resources; (b) solid, gaseous or
liquid waste generation, treatment, processing, recycling,
reclamation, cleanup, storage, disposal or transportation;
(c) exposure to pollutants, contaminants, hazardous, medical
infections, or toxic substances, materials or wastes; (d) the
safety or health of employees; or (e) the manufacture,
processing, handling, transportation, distribution in commerce,
use, storage or disposal of hazardous, medical infections, or toxic
substances, materials or wastes.
“
Environmental Permit ” means any permit, license,
order, approval, registration or other authorization under
Environmental Law.
-17-
“
ERISA ” means the Employee Retirement Income Security
Act of 1974, as amended from time to time.
“
Equipment ” means equipment (as that term is defined
in the UCC).
“
Equity Interest ” means with respect to any Person,
any shares, interests, participation, or other equivalents (however
designated) of corporate stock, membership interests or partnership
interests (or any other ownership interests) of such
Person.
“
Euro ” and “ EUR ” mean the lawful
currency of the Participating Member States introduced in
accordance with the EMU Legislation.
“
Eurocurrency Advance ” means a US Advance or a
Canadian Advance that bears interest based upon the Eurocurrency
Rate (other than Advances that bear interest based upon the 3-Month
LIBOR).
“
Eurocurrency Liabilities ” has the meaning assigned to
that term in Regulation D of the Federal Reserve Board as in
effect from time to time.
“
Eurocurrency Rate ” means (a) for the Interest
Period for each Eurocurrency Advance comprising the same Borrowing,
the interest rate per annum (rounded upward to the nearest whole
multiple of 1/100 of 1%) equal to the London interbank offered rate
for deposits in such Designated Currency appearing on Reuters
Screen FRBD as of 11:00 a.m. (London, England time) two
Business Days prior to the first day of such Interest Period, and
having a maturity equal to such Interest Period), and if such rate
is not available at such time for any reason, then the rate
determined by the Applicable Administrative Agent to be the rate at
which deposits in the Designated Currency for delivery on the first
day of such Interest Period in immediately available funds in the
approximate amount of the Eurocurrency Advance being made,
continued or converted by the Applicable Administrative Agent and
with a term equivalent to such Interest Period would be offered by
the Applicable Administrative Agent’s London Branch (or other
branch or Affiliate of the Applicable Administrative Agent) to
major banks in the London or other offshore interbank market for
such currency at their request at approximately 11:00 a.m.
(London time) two Business Days prior to the commencement of such
Interest Period, and (b) for purposes of the “3-Month
LIBOR”, the rate per annum for Dollar deposits quoted by
Wells Fargo for the purpose of calculating effective rates of
interest for loans making reference to the “3-Month
LIBOR” or such other nomenclature, as the inter-bank offered
rate in effect from time to time for delivery of funds for three
(3) months in amounts approximately equal to the principal
amount of the applicable Advances; provided that, the quotation by
Wells Fargo may be based upon such offers or other market
indicators of the inter-bank market as Wells Fargo in its
discretion deems appropriate including, but not limited to, the
rate determined under the following clause
(a) above.
“
Event of Default ” has the meaning specified in
Section 7.1.
“
Excess Availability Amount ” means, as of any date of
determination, the amount by which (a) the Credit Amount then
in effect for the US Facility exceeds (b) the US
Outstandings.
“
Excess Availability Level ” means the applicable
category (being Level I, Level II or Level III) of pricing criteria
contained in the definition of “Applicable Margin”,
which is based on, at date of determination, the daily average
Excess Availability Amount for the fiscal quarter period ended
immediately prior to such date of determination.
“
Exchange Rate ” means, on any Business Day,
(a) with respect to any calculation of the Dollar Equivalent
with respect to any Foreign Currency on such date or any
calculation of the Foreign Currency Equivalent on such date, the
rate at which such Foreign Currency may be exchanged into Dollars
or
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Dollars may be
exchanged into such Foreign Currency, as set forth on such date on
the relevant FWDS Series Reuters currency page at or about
11:00 a.m. Houston, Texas time on such date and (b) with
respect to any calculation of the Canadian Dollar Equivalent, the
rate at which Dollars may be exchanged into Canadian Dollars, as
set forth on such date on the relevant FWDS Series Reuters
currency page at or about 11:00 a.m. Houston, Texas time on
such date. In the event that such rate does not appear on any such
Reuters page, the “Exchange Rate” with respect to such
Foreign Currency (including Canadian Dollars) shall be determined
by reference to such other publicly available service for
displaying exchange rates as may be agreed upon by the US
Administrative Agent and the Borrowers or, in the absence of such
agreement, such “Exchange Rate” shall instead be the US
Administrative Agent’s spot rate of exchange in the interbank
market where its currency exchange operations in respect of such
Foreign Currency are then being conducted, at or about
10:00 A.M. local time at such date for the purchase of such
Foreign Currency with Dollars or the purchase of Dollars with such
Foreign Currency, as the case may be, for delivery two Business
Days later; provided that if at the time of any such
determination no such spot rate can reasonably be quoted, the US
Administrative Agent may use any reasonable method (including
obtaining quotes from three or more market makers for such Foreign
Currency) as it deems appropriate to determine such rate and such
determination shall be presumed correct absent manifest
error.
“
Excluded Taxes ” means, with respect to any Lender
Party or any other recipient of any payment to be made by or on
account of any obligation of any Borrower hereunder, (a) taxes
imposed on or measured by its overall net income (however
denominated), and franchise taxes imposed on it (in lieu of net
income taxes), by the jurisdiction (or any political subdivision
thereof) under the laws of which such recipient is organized or in
which its principal office is located or, in 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 such
Borrower is located and (c) except as provided in the
following sentence, in the case of a Foreign Lender (other than an
assignee pursuant to a request by a Borrower under
Section 2.16), any withholding tax that is imposed on amounts
payable to such Foreign Lender at the time such Foreign Lender
becomes a party hereto (or designates a new Lending Office) or is
attributable to such Foreign Lender’s failure or inability
(other than as a result of a Change in Law) to comply with
Section 2.15(d), except to the extent that such Foreign Lender
(or its assignor, if any) was entitled, at the time of designation
of a new Lending Office (or assignment), to receive additional
amounts from the Applicable Borrower with respect to such
withholding tax pursuant to Section 2.15. Notwithstanding
anything to the contrary contained in this definition,
“Excluded Taxes” shall not include any withholding tax
imposed at any time on payments made by or on behalf of a Foreign
Credit Party to any Lender Party hereunder or under any other
Credit Document, provided that such Lender, such
Administrative Agent and such Issuing Lender shall have complied
with Section 2.15(d) and Section 2.15(f), as
applicable.
“
Existing Canadian Letters of Credit ” means the
letters of credit issued by the Canadian Issuing Lender under the
Restated Agreement and which have not been terminated or expired
and returned to the Canadian Issuing Lender as of the Effective
Date.
“
Existing Letters of Credit ” means the Existing US
Letters of Credit and the Existing Canadian Letters of
Credit.
“
Existing US Letters of Credit ” means the letters of
credit issued by Wells Fargo under the Restated Agreement and which
have not been terminated or expired and returned to Wells Fargo as
of the Effective Date.
“
Facility ” means the US Facility or the Canadian
Facility.
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“
Federal Funds Rate ” means, for any day, the rate per
annum equal to the weighted average of the rates on overnight
Federal funds transactions with members of the Federal Reserve
System arranged by Federal funds brokers on such day, as published
by the Federal Reserve Bank of New York on the Business Day next
succeeding such day; provided that (a) if such day is
not a Business Day, the Federal Funds Rate for such day shall be
such rate on such transactions on the next preceding Business Day
as so published on the next succeeding Business Day and (b) if
no such rate is so published on such next succeeding Business Day,
the Federal Funds Rate for such day shall be the average rate
charged to the US Administrative Agent (in its individual capacity)
on such day on such transactions as determined by the US
Administrative Agent.
“
Federal Reserve Board ” means the Board of Governors
of the Federal Reserve System or any of its successors.
“ Fee
Letter ” means that certain Fee Letter dated as of
October 13, 2009 between WFF and the Borrowers.
“
Financial Covenant Period ” means a period which shall
commence on any date on which the sum of Excess Availability Amount
plus Qualified Cash Amount has been less than $50,000,000 for a
period of 5 consecutive days, and shall continue until the earlier
of:
(a) the
date on which the sum of Excess Availability Amount plus Qualified
Cash Amount has been greater than or equal to $50,000,000 for a
period of 90 consecutive days, and
(b) the
date on which the sum of Excess Availability Amount plus Qualified
Cash Amount has been greater than or equal to $75,000,000 for a
period of 45 consecutive days.
“
Financial Statements ” means, for any period, the
consolidated and consolidating financial statements of the Company
and its Subsidiaries, including statements of income, retained
earnings, changes in equity and cash flow for such period as well
as a balance sheet as of the end of such period, all prepared in
accordance with GAAP.
“
Fixed Charges ” means, with respect to any fiscal
period and with respect to the US Borrower determined on a
consolidated basis in accordance with GAAP, the sum, without
duplication, of (a) Interest Expense paid in cash or required
to be paid in cash during such period (other than the transaction
fees paid in cash in connection with the Third Amendment),
(b) principal payments in respect of Debt that are required to
be paid during such period, (c) all federal, state, and local
income taxes paid in cash or required to be paid in cash during
such period, and (d) all Restricted Payments paid (whether in
cash or other property, other than Equity Interests that are
permitted to be issued by the US Borrower under this Agreement)
during such period.
“
Fixed Charge Coverage Ratio ” means, with respect to
the US Borrower and its Subsidiaries, (a) for the fiscal
quarter ended September 30, 2009, the ratio of (i) EBITDA
calculated for the four fiscal quarter period then ended
minus Capital Expenditures made with cash (to the
extent not already incurred in a prior period) or incurred during
the three fiscal quarter period then ended multiplied by 4/3, to
(ii) Fixed Charges calculated for the four fiscal quarters
then ended, and (b) for each fiscal quarter ending after
September 30, 2009, the ratio of (i) EBITDA calculated
for the four fiscal quarter period then ended minus
Capital Expenditures made with cash (to the extent not already
incurred in a prior period) or incurred during such four fiscal
quarter period, to (ii) Fixed Charges calculated for the four
fiscal quarters then ended.
“
Foreign Credit Party ” means any Credit Party that is
a Foreign Subsidiary of the Company.
-20-
“
Foreign Currency ” means a currency other than
Dollars.
“
Foreign Currency Equivalent ” means, at any time, with
respect to any amount denominated in Dollars, the equivalent amount
thereof in the applicable Foreign Currency as determined by the
Applicable Administrative Agent or the Applicable Issuing Lender,
as the case may be, at such time on the basis of the Exchange Rate
(determined in respect of the most recent Computation Date) for the
purchase of such Foreign Currency with Dollars.
“
Foreign Lender ” means, with respect to any Borrower,
any Lender that is organized under the laws of a jurisdiction other
than that in which such Borrower is resident for tax purposes. For
purposes of this definition, the United States, each State thereof
and the District of Columbia shall be deemed to constitute a single
jurisdiction.
“
Foreign Proceeds ” means casualty insurance proceeds
or condemnation proceeds received by a Foreign Subsidiary on
account of a casualty or condemnation event in connection with any
assets of Foreign Subsidiary or any other Foreign Subsidiary of the
Company.
“
Foreign Subsidiary ” means any Subsidiary of a Person
that is not a Domestic Subsidiary.
“
Foreign Subsidiary Guarantor ” means each Foreign
Subsidiary listed on Part A of Schedule 4.11, and each other
Foreign Subsidiary of the Canadian Borrower that is or becomes a
party to the Canadian Guaranty.
“
Fund ” means any Person (other than a natural person)
that is (or will be) engaged in making, purchasing, holding or
otherwise investing in commercial loans and similar extensions of
credit in the ordinary course of its business.
“
GAAP ” means United States generally accepted
accounting principles as in effect from time to time, applied on a
basis consistent with the requirements of
Section 1.3.
“
Governmental Authority ” means the government of the
United States or any other nation, or of any political subdivision
thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other
entity exercising executive, legislative, judicial, taxing,
regulatory or administrative powers or functions of or pertaining
to government (including any supra-national bodies such as the
European Union or the European Central Bank).
“
Guarantors ” means any Person that now or hereafter
executes a Guaranty or a joinder or supplement to a
Guaranty.
“
Guaranties ” means, collectively, the US Subsidiary
Guaranty and the Canadian Guaranty.
“
Hazardous Substance ” means any substance or material
identified as such pursuant to CERCLA and those regulated under any
other Environmental Law, including without limitation pollutants,
contaminants, petroleum, petroleum products, radionuclides, and
radioactive materials.
“
Hazardous Waste ” means any substance or material
regulated or designated as such pursuant to any Environmental Law,
including without limitation, pollutants, contaminants, flammable
substances and materials, explosives, radioactive materials, oil,
petroleum and petroleum products, chemical liquids and solids,
polychlorinated biphenyls, asbestos, toxic substances, and similar
substances and materials.
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“
Hedging Arrangement ” means a hedge, call, swap,
collar, floor, cap, option, forward sale or purchase or other
contract or similar arrangement (including any obligations to
purchase or sell any commodity or security at a future date for a
specific price) which is entered into to reduce or eliminate or
otherwise protect against the risk of fluctuations in prices or
rates, including interest rates, foreign exchange rates, commodity
prices and securities prices.
“
HSBC ” means HSBC Bank Canada.
“
Increase Date ” means the effective date of a
Commitment Increase as provided in Section 2.2(f).
“
Indemnified Taxes ” means Taxes other than Excluded
Taxes.
“
Indemnitees ” has the meaning specified in
Section 9.01.
“
Interest Expense ” means, for any period and with
respect to any Person, total interest expense, letter of credit
fees and other fees and expenses incurred by such Person in
connection with any Debt for such period, whether paid or accrued
(including that attributable to obligations which have been or
should be, in accordance with GAAP, recorded as Capital Leases),
including, without limitation, all commissions, discounts, and
other fees and charges owed with respect to letters of credit and
bankers’ acceptance financing, fees owed with respect to the
Obligations, and net costs under Hedge Arrangements, all as
determined in conformity with GAAP.
“
Interest Period ” means for each Eurocurrency Advance
comprising part of the same Borrowing, the period commencing on the
date of such Eurocurrency Advance is made or deemed made and ending
on the last day of the period selected by the Applicable Borrower
pursuant to the provisions below and Section 2.6, and
thereafter, each subsequent period commencing on the last day of
the immediately preceding Interest Period and ending on the last
day of the period selected by the Applicable Borrower pursuant to
the provisions below and Section 2.6. The duration of each
such Interest Period shall be one, two, or three months, in each
case as the Applicable Borrower may select, provided
that:
(a) Interest
Periods commencing on the same date for Advances comprising part of
the same Borrowing shall be of the same duration;
(b) whenever
the last day of any Interest Period would otherwise occur on a day
other than a Business Day, the last day of such Interest Period
shall be extended to occur on the next succeeding Business Day,
provided that if such extension would cause the last day of
such Interest Period to occur in the next following calendar month,
the last day of such Interest Period shall occur on the next
preceding Business Day; and
(c) any
Interest Period which begins on the last Business Day of a calendar
month (or on a day for which there is no numerically corresponding
day in the calendar month at the end of such Interest Period) shall
end on the last Business Day of the calendar month in which it
would have ended if there were a numerically corresponding day in
such calendar month.
“
Inventory ” of any Person means all inventory now
owned or hereafter acquired by such Person, wherever located and
whether or not in transit, which is held for sale; provided
, that Inventory shall not include raw materials, work in process
or supplies or materials consumed in the business of such Person;
and provided further that, purchased items shall be
considered Inventory and not raw materials if such purchased items
could be resold in their existing condition as finished goods
without requiring further modification.
-22-
“
ISP ” means, with respect to any Letter of Credit, the
“International Standby Practices 1998” published by the
Institute of International Banking Law & Practice (or such
later version thereof as may be in effect at the time of
issuance).
“
Issuing Lender ” means US Issuing Lender or Canadian
Issuing Lender.
“
ITA ” means the Income Tax Act (Canada), as amended,
and any successor thereto, and any regulations promulgated
thereunder.
“
Legal Requirement ” means any law, statute, ordinance,
decree, requirement, order, judgment, rule, treaty, code,
administrative or judicial precedents or authorities, regulation
(or official interpretation of any of the foregoing) of, and the
terms of any license, authorization or permit issued by, any
Governmental Authority, including, but not limited to, Regulations
T, U and X.
“
Lender Group Expenses ” means all (a) costs or
expenses (including taxes, and insurance premiums) required to be
paid by the Company or its Subsidiaries under any of the Credit
Documents that are paid, advanced, or incurred by the Secured
Parties, (b) reasonable out-of-pocket fees or charges paid or
incurred by any Administrative Agent in connection with the Secured
Parties’ transactions with the Company or its Subsidiaries
under any of the Credit Documents, including, fees or charges for
photocopying, notarization, couriers and messengers,
telecommunication, public record searches (including tax lien,
litigation, and UCC searches and including searches with the patent
and trademark office, the copyright office, or the department of
motor vehicles), filing, recording, publication, appraisal
(including periodic collateral appraisals or business valuations to
the extent of the fees and charges (and up to the amount of any
limitation) contained in the Agreement or the Fee Letter), real
estate surveys, real estate title policies and endorsements, and
environmental audits, (c) reasonable out-of-pocket costs and
expenses incurred by either Administrative Agent in the
disbursement of funds to a Borrower or other Secured Parties (by
wire transfer or otherwise), (d) reasonable out-of-pocket
charges paid or incurred by either Administrative Agent resulting
from the dishonor of checks payable by or to any Credit Party, (e)
out-of-pocket costs and expenses paid or incurred by the Secured
Parties to correct any default or enforce any provision of the
Credit Documents, or during the continuance of an Event of Default,
in gaining possession of, maintaining, handling, preserving,
storing, shipping, selling, preparing for sale, or advertising to
sell the Collateral, or any portion thereof, irrespective of
whether a sale is consummated, (f) reasonable out-of-pocket
audit fees and expenses (including travel, meals, and lodging) of
either Administrative Agent related to any inspections or audits to
the extent of the fees and charges (and up to the amount of any
limitation) contained in the Agreement or the Fee Letter,
(g) out-of-pocket costs and expenses of third party claims or
any other suit paid or incurred by the Secured Parties in enforcing
or defending the Credit Documents or in connection with
the

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