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Exhibit 10.1

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 ”).

INTRODUCTION

     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.

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     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.]

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     EXECUTED to be effective as of the Effective Date.

 

 

 

 

 

 

BORROWERS :

COMPLETE PRODUCTION SERVICES, INC.
 

 

 

By:  

/s/ JOSE A. BAYARDO  

 

 

 

Name:  

JOSE A. BAYARDO 

 

 

 

Title:  

VICE PRESIDENT 

 

 

 

 

 

 

 

 

 

INTEGRATED PRODUCTION SERVICES LTD.
 

 

 

By:  

/s/ Dennis Hassel  

 

 

 

Name:  

Dennis Hassel 

 

 

 

Title:  

Vice President, Finance 

 

 

 


 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

Each by:  

/s/ J.F. MARONEY  

 

 

 

Name:  

J.F. MARONEY 

 

 

 

Title:  

VICE PRESIDENT 

 

 

 


 

 

 

 

 

 

 

SWEETWATER PRODUCED WATER
DISPOSAL, LLC

 

 

 

By:  

Hyland Enterprises, Inc.  

 

 

 

its sole member 

 

 

 

 

 

 

By:  

/s/ J.F. MARONEY III  

 

 

 

Name:  

J.F. MARONEY III 

 

 

 

Title:  

VICE PRESIDENT 

 

 

 

GREASEWOOD, LLC
 

 

 

By:  

Hyland Enterprises, Inc.,  

 

 

 

its managing member 

 

 

 

 

 

 

 

By:  

/s/ J.F. MARONEY III  

 

 

 

Name:  

J.F. MARONEY III 

 

 

 

Title:  

VICE PRESIDENT 

 

 

 

BIG MAC TANK TRUCKS, LLC
 

 

 

By:  

CES Mid-Continent Hamm, LLC, its sole member 

 

 

 

 

 

 

By:  

/s/ J.F. MARONEY III  

 

 

 

Name:  

J.F. MARONEY III 

 

 

 

Title:  

VICE PRESIDENT 

 

 

 

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 

 

 

 

 

 

 

 

 

 

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 

 

 

 

 

 

 

 

 

ADMINISTRATIVE AGENT AND LENDERS :

WELLS FARGO BANK, NATIONAL ASSOCIATION
as Existing Administrative Agent, Existing Swing Line Lender,
and Existing Issuing Lender
 

 

 

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 

 

 

 

 

 

 

 

 

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 

 

 


 

SCHEDULE II

Commitments

 

 

 

 

 

 

 

 

 

Lenders

 

US Commitment

 

Canadian Commitment

Wells Fargo Foothill, LLC

 

$

50,000,000

 

 

$

0

 

HSBC Bank Canada

 

$

0

 

 

$

15,000,000

 

Amegy Bank N.A.

 

$

37,500,000

 

 

$

0

 

Comerica Bank

 

$

31,250,000

 

 

$

0

 

UBS Loan Finance LLC

 

$

6,250,000

 

 

$

0

 

Credit Suisse, Cayman Islands Branch

 

$

3,125,000

 

 

$

0

 

Citibank, N.A.

 

$

18,750,000

 

 

$

0

 

Natixis

 

$

12,500,000

 

 

$

0

 

Bank of Texas, N.A.

 

$

9,375,000

 

 

$

0

 

JPMorgan Chase Bank, N.A.

 

$

31,250,000

 

 

$

0

 

Bank of America, N.A.

 

$

25,000,000

 

 

$

0

 

TOTAL:

 

$

225,000,000

 

 

$

15,000,000

 

 


 

ANNEX A TO THIRD AMENDMENT

 

 

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

dated as of December 6, 2006

Among

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,

and

THE LENDERS PARTY HERETO FROM TIME TO TIME
as Lenders

$240,000,000

WELLS FARGO FOOTHILL, LLC
as Lead Arranger

Amegy Bank N.A. and Comerica Bank
as Co-Documentation Agents

 

 


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

Page

 

 

ARTICLE I     DEFINITIONS AND ACCOUNTING TERMS

 

 

1

 

 

 

 

 

 

 

 

Section 1.1

 

Certain Defined Terms

 

 

1

 

Section 1.2

 

Computation of Time Periods

 

 

35

 

Section 1.3

 

Accounting Terms; Changes in GAAP

 

 

35

 

Section 1.4

 

Classes and Types of Advances

 

 

36

 

Section 1.5

 

Other Interpretive Provisions

 

 

36

 

Section 1.6

 

Exchange Rates; Currency Equivalents

 

 

37

 

Section 1.7

 

Agreed Currencies

 

 

37

 

Section 1.8

 

Change of Currency

 

 

38

 

Section 1.9

 

Several Obligations of Borrowers

 

 

38

 

 

 

 

 

 

 

 

ARTICLE II     CREDIT FACILITIES

 

 

38

 

 

 

 

 

 

 

 

Section 2.1

 

Commitments.

 

 

38

 

Section 2.2

 

Evidence of Indebtedness

 

 

42

 

Section 2.3

 

Letters of Credit

 

 

43

 

Section 2.4

 

Swingline Advances

 

 

50

 

Section 2.5

 

Bankers’ Acceptances

 

 

53

 

Section 2.6

 

Borrowings; Procedures and Limitations

 

 

55

 

Section 2.7

 

Prepayments; Defeasance

 

 

61

 

Section 2.8

 

Repayment

 

 

64

 

Section 2.9

 

Fees

 

 

64

 

Section 2.10

 

Interest

 

 

65

 

Section 2.11

 

Illegality

 

 

66

 

Section 2.12

 

Breakage Costs

 

 

67

 

Section 2.13

 

Increased Costs

 

 

67

 

Section 2.14

 

Payments and Computations

 

 

69

 

Section 2.15

 

Taxes

 

 

72

 

Section 2.16

 

Replacement of Lenders

 

 

74

 

Section 2.17

 

Settlement

 

 

75

 

Section 2.18

 

Method of Payment

 

 

76

 

Section 2.19

 

Crediting Payments

 

 

77

 

Section 2.20

 

Designated Account

 

 

77

 

Section 2.21

 

Maintenance of Loan Account; Statements of Obligations

 

 

77

 

Section 2.22

 

Optional Overadvances

 

 

77

 

 

 

 

 

 

 

 

ARTICLE III     CONDITIONS PRECEDENT

 

 

78

 

 

 

 

 

 

 

 

Section 3.1

 

Conditions Precedent to Effectiveness

 

 

78

 

Section 3.2

 

Conditions Precedent to Each Credit Extension

 

 

80

 

Section 3.3

 

Determinations Under Sections 3.1 and 3.2

 

 

81

 

 

 

 

 

 

 

 

ARTICLE IV     REPRESENTATIONS AND WARRANTIES

 

 

81

 

 

 

 

 

 

 

 

Section 4.1

 

Organization

 

 

81

 

Section 4.2

 

Authorization

 

 

81

 

Section 4.3

 

Enforceability

 

 

82

 

Section 4.4

 

Financial Condition

 

 

82

 

Section 4.5

 

Ownership and Liens; Real Property

 

 

82

 

Section 4.6

 

True and Complete Disclosure

 

 

82

 

Section 4.7

 

Litigation

 

 

83

 

Section 4.8

 

Compliance with Agreements

 

 

83

 

Section 4.9

 

Pension Plans

 

 

83

 

-i-


 

Table of Contents
(continued)

 

 

 

 

 

 

 

Section 4.10

 

Environmental Condition

 

 

84

 

Section 4.11

 

Subsidiaries

 

 

84

 

Section 4.12

 

Investment Company Act

 

 

84

 

Section 4.13

 

Collateral Issues

 

 

84

 

Section 4.14

 

Taxes

 

 

85

 

Section 4.15

 

Permits, Licenses, etc

 

 

86

 

Section 4.16

 

Use of Proceeds

 

 

86

 

Section 4.17

 

Condition of Property; Casualties

 

 

86

 

Section 4.18

 

Insurance

 

 

86

 

Section 4.19

 

Labor Agreements

 

 

86

 

Section 4.20

 

OFAC

 

 

86

 

Section 4.21

 

Patriot Act

 

 

86

 

 

 

 

 

 

 

 

ARTICLE V     AFFIRMATIVE COVENANTS

 

 

87

 

 

 

 

 

 

 

 

Section 5.1

 

Organization

 

 

87

 

Section 5.2

 

Reporting

 

 

87

 

Section 5.3

 

Insurance

 

 

89

 

Section 5.4

 

Compliance with Laws

 

 

90

 

Section 5.5

 

Taxes

 

 

90

 

Section 5.6

 

Additional Guarantors

 

 

90

 

Section 5.7

 

Security

 

 

91

 

Section 5.8

 

Records; Inspection

 

 

91

 

Section 5.9

 

Maintenance of Property

 

 

91

 

Section 5.10

 

Location of Equipment; Collateral Access Agreements

 

 

92

 

Section 5.11

 

Material Real Properties

 

 

92

 

 

 

 

 

 

 

 

ARTICLE VI     NEGATIVE COVENANTS

 

 

92

 

 

 

 

 

 

 

 

Section 6.1

 

Debt

 

 

92

 

Section 6.2

 

Liens

 

 

93

 

Section 6.3

 

Investments

 

 

94

 

Section 6.4

 

Acquisitions

 

 

95

 

Section 6.5

 

Agreements Restricting Liens; Negative Pledge

 

 

95

 

Section 6.6

 

Use of Proceeds; Use of Letters of Credit

 

 

96

 

Section 6.7

 

Corporate Actions

 

 

96

 

Section 6.8

 

Sale of Assets

 

 

96

 

Section 6.9

 

Restricted Payments

 

 

97

 

Section 6.10

 

Affiliate Transactions

 

 

97

 

Section 6.11

 

Line of Business

 

 

98

 

Section 6.12

 

Hazardous Materials

 

 

98

 

Section 6.13

 

Compliance with ERISA

 

 

98

 

Section 6.14

 

Sale and Leaseback Transactions

 

 

98

 

Section 6.15

 

Controlled Investments

 

 

99

 

Section 6.16

 

Limitation on Hedging

 

 

99

 

Section 6.17

 

Capital Expenditures

 

 

99

 

Section 6.18

 

Fixed Charge Coverage Ratio

 

 

99

 

Section 6.19

 

Amendment of Permitted Subordinated Debt Terms

 

 

99

 

Section 6.20

 

Non-Guarantor Subsidiaries and Minority Investments

 

 

100

 

Section 6.21

 

Post-Closing Requirements

 

 

100

 

 

 

 

 

 

 

 

ARTICLE VII     DEFAULT AND REMEDIES

 

 

100

 

ii


 

Table of Contents
(continued)

 

 

 

 

 

 

 

Section 7.1

 

Events of Default

 

 

100

 

Section 7.2

 

Optional Acceleration of Maturity

 

 

102

 

Section 7.3

 

Automatic Acceleration of Maturity

 

 

102

 

Section 7.4

 

Set-off

 

 

103

 

Section 7.5

 

Remedies Cumulative, No Waiver

 

 

103

 

Section 7.6

 

Application of Payments

 

 

104

 

Section 7.7

 

Currency Conversion After Maturity

 

 

106

 

Section 7.8

 

Effect of Maturity

 

 

106

 

 

 

 

 

 

 

 

ARTICLE VIII     THE ADMINISTRATIVE AGENTS AND ISSUING LENDERS

 

 

106

 

 

 

 

 

 

 

 

Section 8.1

 

Appointment and Authority

 

 

106

 

Section 8.2

 

Rights as a Lender

 

 

106

 

Section 8.3

 

Exculpatory Provisions

 

 

107

 

Section 8.4

 

Reliance by Administrative Agent

 

 

107

 

Section 8.5

 

Delegation of Duties

 

 

108

 

Section 8.6

 

Resignation of Administrative Agent, Swingline Lender or Issuing Lender

 

 

108

 

Section 8.7

 

Non-Reliance on Administrative Agent and Other Lenders

 

 

109

 

Section 8.8

 

No Other Duties, etc

 

 

109

 

Section 8.9

 

Collateral Matters

 

 

109

 

Section 8.10

 

Marshaling Rights of Lender Parties; Allocation of Losses

 

 

109

 

Section 8.11

 

Agency for Perfection

 

 

110

 

Section 8.12

 

Audits and Examination Reports; Confidentiality; Disclaimers by

 

 

 

 

 

 

Lenders; Other Reports and Information

 

 

110

 

 

 

 

 

 

 

 

ARTICLE IX     MISCELLANEOUS

 

 

110

 

 

 

 

 

 

 

 

Section 9.1

 

Expenses; Indemnity; Damage Waiver

 

 

110

 

Section 9.2

 

Waivers and Amendments

 

 

112

 

Section 9.3

 

Severability

 

 

113

 

Section 9.4

 

Survival of Representations and Obligations

 

 

113

 

Section 9.5

 

Successors and Assigns Generally

 

 

113

 

Section 9.6

 

Lender Assignments and Participations

 

 

113

 

Section 9.7

 

Notices, Etc

 

 

115

 

Section 9.8

 

Confidentiality

 

 

116

 

Section 9.9

 

Business Loans

 

 

117

 

Section 9.10

 

Usury Not Intended

 

 

117

 

Section 9.11

 

Usury Recapture

 

 

118

 

Section 9.12

 

Judgment Currency

 

 

118

 

Section 9.13

 

Payments Set Aside

 

 

119

 

Section 9.14

 

Governing Law; Submission to Jurisdiction

 

 

119

 

Section 9.15

 

Execution and Effectiveness

 

 

120

 

Section 9.16

 

Waiver of Jury

 

 

120

 

Section 9.17

 

USA PATRIOT ACT Notice

 

 

120

 

Section 9.18

 

Termination for Departing Lenders

 

 

120

 

Section 9.19

 

Third Party Secured Parties

 

 

121

 

Section 9.20

 

Cure of Defaulting Lender

 

 

121

 

iii


 

Table of Contents
(continued)

 

 

 

EXHIBITS:

 

 

 

 

 

Exhibit A

Assignment and Assumption

Exhibit B

Canadian Guaranty

Exhibit C

INTENTIONALLY OMITTED

Exhibit D

INTENTIONALLY OMITTED

Exhibit E

Canadian Security Agreement

Exhibit F

Compliance Certificate

Exhibit G-1

Notice of Borrowing (US Facility)

Exhibit G-2

Notice of Borrowing (Canadian Facility)

Exhibit H-1

Notice of Conversion or Continuance (US Facility)

Exhibit H-2

Notice of Conversion or Continuance (Canadian Facility)

Exhibit I

US Mortgage

Exhibit J

US Pledge Agreement

Exhibit K

US Security Agreement

Exhibit L

US Subsidiary Guaranty

 

 

 

SCHEDULES:

 

 

 

 

 

Schedule I

Designated Account and US Administrative Agent’s Account

Schedule II

Commitments

Schedule III

Notice Information

Schedule 4.1

Organizational Information

Schedule 4.10

Environmental

Schedule 4.11

Subsidiaries

Schedule 4.13(a)

Intellectual Property

Schedule 4.13(c)

Deposit Accounts / Securities Accounts

Schedule 4.13(e)

Locations of Collateral

Schedule 4.19

Labor Agreements

Schedule 5.2

Collateral Reports

Schedule 5.11

Owned Real Property Requirements

Schedule 6.1

Existing Debt

Schedule 6.2

Permitted Liens

Schedule 6.3

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.

RECITALS

     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.

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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

I

 

Greater than or equal to $150,000,000

 

 

3.75

%

 

 

3.75

%

II

 

Less than $150,000,000 but greater than or equal to $75,000,000

 

 

4.00

%

 

 

4.00

%

III

 

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

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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

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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.

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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).

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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.

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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.

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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.

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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

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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.

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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.

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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,

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     (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.

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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.

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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.

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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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