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Title: |
Credit Agreement |
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Entities: |
Citibank, NA; Kv Pharmaceutical Co /DE/; McGraw-Hill Companies Inc.; National City Bank; U.S. Bank, NA; Wachovia Bank, NA; Bank of America, NA; Bank of New York |
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Date: |
2006 |
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Preview shows 45KB of 273KB total |
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$99 |
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ID: |
#2071690 |
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CREDIT AGREEMENT
DATED AS OF JUNE 9, 2006
AMONG
K-V PHARMACEUTICAL COMPANY,
PARTICLE DYNAMICS, INC.
ETHEX CORPORATION AND
THER-RX CORPORATION,
AS THE LOAN PARTIES,
THE VARIOUS FINANCIAL INSTITUTIONS PARTY HERETO,
AS LENDERS,
LASALLE BANK NATIONAL ASSOCIATION,
AS ADMINISTRATIVE AGENT,
CITIBANK, F.S.B.,
AS SYNDICATION AGENT,
AND
EACH OF
LASALLE BANK NATIONAL ASSOCIATION,
AND
CITIBANK, N.A.,
AS JOINT LEAD ARRANGERS AND BOOK RUNNERS
{PAGE}
{PAGE}
{TABLE}
{C} {C} {C}
SECTION 1 DEFINITIONS................................................................................1
1.1 Definitions....................................................................................1
1.2 Other Interpretive Provisions.................................................................15
SECTION 2 COMMITMENTS OF THE LENDERS; BORROWING, CONVERSION AND LETTER OF CREDIT PROCEDURES.........16
2.1 Commitments...................................................................................16
2.2 Loan Procedures...............................................................................16
2.3 Letter of Credit Procedures...................................................................19
2.4 Commitments Several...........................................................................22
2.5 Certain Conditions............................................................................22
2.6 Increases in Revolving Commitment.............................................................22
SECTION 3 EVIDENCING OF LOANS.......................................................................23
3.1 Notes.........................................................................................23
3.2 Recordkeeping.................................................................................23
SECTION 4 INTEREST..................................................................................23
4.1 Interest Rates................................................................................23
4.2 Interest Payment Dates........................................................................24
4.3 Setting and Notice of LIBOR Rates.............................................................24
4.4 Computation of Interest.......................................................................24
SECTION 5 FEES......................................................................................24
5.1 Non-Use Fee...................................................................................24
5.2 Letter of Credit Fees.........................................................................24
5.3 Administrative Fees...........................................................................25
SECTION 6 REDUCTION OR TERMINATION OF THE REVOLVING COMMITMENT; PREPAYMENTS.........................25
6.1 Reduction or Termination of the Revolving Commitment..........................................25
6.2 Prepayments...................................................................................25
6.3 Manner of Prepayments.........................................................................26
6.4 Repayments....................................................................................26
SECTION 7 MAKING AND PRORATION OF PAYMENTS; SETOFF; TAXES...........................................26
7.1 Making of Payments............................................................................26
7.2 Application of Certain Payments...............................................................26
7.3 Due Date Extension............................................................................27
7.4 Setoff........................................................................................27
7.5 Proration of Payments.........................................................................27
7.6 Taxes.........................................................................................27
SECTION 8 INCREASED COSTS; SPECIAL PROVISIONS FOR LIBOR LOANS.......................................29
8.1 Increased Costs...............................................................................29
8.2 Basis for Determining Interest Rate Inadequate or Unfair......................................30
i
{PAGE}
{PAGE}
8.3 Changes in Law Rendering LIBOR Loans Unlawful.................................................30
8.4 Funding Losses................................................................................31
8.5 Right of Lenders to Fund through Other Offices................................................31
8.6 Discretion of Lenders as to Manner of Funding.................................................31
8.7 Mitigation of Circumstances; Replacement of Lenders...........................................31
8.8 Conclusiveness of Statements; Survival of Provisions..........................................32
SECTION 9 REPRESENTATIONS AND WARRANTIES............................................................32
9.1 Organization..................................................................................32
9.2 Authorization; No Conflict....................................................................32
9.3 Validity and Binding Nature...................................................................33
9.4 Financial Condition...........................................................................33
9.5 No Material Adverse Change....................................................................33
9.6 Litigation and Contingent Liabilities.........................................................33
9.7 Ownership of Properties; Liens................................................................33
9.8 Equity Ownership; Subsidiaries................................................................33
9.9 Pension Plans.................................................................................33
9.10 Investment Company Act........................................................................34
9.11 Reserved......................................................................................34
9.12 Regulation U..................................................................................34
9.13 Taxes.........................................................................................34
9.14 Solvency, etc.................................................................................35
9.15 Environmental Matters.........................................................................35
9.16 Insurance.....................................................................................35
9.17 Real Property.................................................................................36
9.18 Information...................................................................................36
9.19 Intellectual Property.........................................................................36
9.20 Reserved......................................................................................36
9.21 Labor Matters.................................................................................36
9.22 No Default....................................................................................36
SECTION 10 AFFIRMATIVE COVENANTS.....................................................................36
10.1 Reports, Certificates and Other Information...................................................37
10.2 Books, Records and Inspections................................................................38
10.3 Maintenance of Property; Insurance............................................................39
10.4 Compliance with Laws; Payment of Taxes and Liabilities........................................39
10.5 Maintenance of Existence, etc.................................................................40
10.6 Use of Proceeds...............................................................................40
10.7 Employee Benefit Plans........................................................................40
10.8 Environmental Matters.........................................................................40
10.9 Further Assurances............................................................................41
10.10 Reserved......................................................................................41
10.11 Springing Lien................................................................................41
10.12 Syndication...................................................................................42
SECTION 11 NEGATIVE COVENANTS........................................................................42
11.1 Debt..........................................................................................42
ii
{PAGE}
{PAGE}
11.2 Liens.........................................................................................43
11.3 Reserved......................................................................................43
11.4 Restricted Payments...........................................................................43
11.5 Mergers, Consolidations, Sales................................................................44
11.6 Modification of Organizational Documents......................................................45
11.7 Transactions with Affiliates..................................................................45
11.8 Reserved......................................................................................45
11.9 Inconsistent Agreements.......................................................................45
11.10 Business Activities; Issuance of Equity.......................................................46
11.11 Investments...................................................................................46
11.12 Restriction of Amendments to Certain Documents................................................46
11.13 Fiscal Year...................................................................................47
11.14 Financial Covenants...........................................................................47
SECTION 12 EFFECTIVENESS; CONDITIONS OF LENDING, ETC.................................................47
12.1 Initial Credit Extension......................................................................47
12.2 Conditions....................................................................................48
SECTION 13 EVENTS OF DEFAULT AND THEIR EFFECT........................................................49
13.1 Events of Default.............................................................................49
13.2 Effect of Event of Default....................................................................50
SECTION 14 THE AGENT[S]..............................................................................51
14.1 Appointment and Authorization.................................................................51
14.2 Issuing Lender................................................................................51
14.3 Delegation of Duties..........................................................................52
14.4 Exculpation of Administrative Agent...........................................................52
14.5 Reliance by Administrative Agent..............................................................52
14.6 Notice of Default.............................................................................53
14.7 Credit Decision...............................................................................53
14.8 Indemnification...............................................................................53
14.9 Administrative Agent in Individual Capacity...................................................54
14.10 Successor Administrative Agent................................................................54
14.11 Administrative Agent May File Proofs of Claim.................................................55
14.12 Other Agents; Arrangers and Managers..........................................................55
SECTION 15 GENERAL...................................................................................56
15.1 Waiver; Amendments............................................................................56
15.2 Confirmations.................................................................................56
15.3 Notices.......................................................................................56
15.4 Computations..................................................................................57
15.5 Costs, Expenses and Taxes.....................................................................57
15.6 Assignments; Participations...................................................................57
15.7 Register......................................................................................59
15.8 GOVERNING LAW.................................................................................59
15.9 Confidentiality...............................................................................59
15.10 Severability..................................................................................60
iii
{PAGE}
{PAGE}
15.11 Nature of Remedies............................................................................60
15.12 Entire Agreement..............................................................................60
15.13 Counterparts..................................................................................60
15.14 Successors and Assigns........................................................................60
15.15 Captions......................................................................................61
15.16 Customer Identification - USA Patriot Act Notice..............................................61
15.17 INDEMNIFICATION BY THE LOAN PARTIES...........................................................61
15.18 Nonliability of Lenders.......................................................................62
15.19 FORUM SELECTION AND CONSENT TO JURISDICTION...................................................62
15.20 WAIVER OF JURY TRIAL..........................................................................63
15.21 Reimbursement Among the Loan Parties..........................................................63
15.22 Joint and Several Liability...................................................................63
{/TABLE}
ANNEXES
ANNEX A Lenders and Pro Rata Shares
ANNEX B Addresses for Notices
SCHEDULES
SCHEDULE 9.6 Litigation and Contingent Liabilities
SCHEDULE 9.8 Subsidiaries
SCHEDULE 9.16 Insurance
SCHEDULE 9.17 Real Property
SCHEDULE 9.21 Labor Matters
SCHEDULE 11.1 Existing Debt
SCHEDULE 11.2 Existing Liens
SCHEDULE 11.7 Transactions with Affiliates
SCHEDULE 11.11 Investments
SCHEDULE 12.1 Debt to be Repaid
EXHIBITS
EXHIBIT A Form of Revolving Note (Section 3.1)
EXHIBIT B Form of Compliance Certificate (Section 10.1.3)
EXHIBIT C Form of Assignment Agreement
EXHIBIT D Form of Notice of Borrowing (Section 2.2.2)
EXHIBIT E Form of Notice of Conversion/Continuation (Section 2.2.3)
iv
{PAGE}
{PAGE}
CREDIT AGREEMENT
----------------
THIS CREDIT AGREEMENT dated as of June 9, 2006 (this "Agreement")
---------
is entered into among K-V PHARMACEUTICAL COMPANY, a Delaware corporation,
PARTICLE DYNAMICS, INC., a New York corporation, ETHEX CORPORATION, a
Missouri corporation and THER-Rx CORPORATION, a Missouri corporation
(collectively, the "Loan Parties"), the financial institutions that are or
------------
may from time to time become parties hereto (together with their respective
successors and assigns, the "Lenders"), LASALLE BANK NATIONAL ASSOCIATION,
-------
a national banking association (in its individual capacity, "LaSalle"), as
-------
administrative agent for the Lenders, CITIBANK, F.S.B. (in its individual
capacity, "Citibank"), as syndication agent (in such capacity, the
"Syndication Agent") and each of LASALLE and CITIBANK, N.A., a national
-----------------
banking association, as joint lead arrangers and bookrunners (collectively,
the "Arrangers").
The Lenders have agreed to make available to the Loan Parties a
revolving credit facility (which includes letters of credit) upon the terms
and conditions set forth herein.
In consideration of the mutual agreements herein contained, the
parties hereto agree as follows:
SECTION 1 DEFINITIONS.
1.1 Definitions. When used herein the following terms shall have
-----------
the following meanings:
Account Debtor is defined in the UCC.
--------------
Account or Accounts is defined in the UCC.
-------------------
Acquisition means any single transaction or series of related
-----------
transactions for the purpose of or resulting, directly or indirectly, in (a)
the acquisition of any individual product or product line utilized in any
Loan Party's business, (b) the acquisition of all or substantially all of
the assets of a Person, or of all or substantially all of any business or
division of a Person, (c) the acquisition of in excess of 50% of the Capital
Securities of any Person, or otherwise causing any Person to become a
Subsidiary, or (d) a merger or consolidation or any other combination with
another Person (other than a Person that is already a Subsidiary).
Administrative Agent means LaSalle in its capacity as
--------------------
administrative agent for the Lenders hereunder and any successor thereto in
such capacity.
Affected Loan - see Section 8.3.
------------- -----------
{PAGE}
{PAGE}
Affiliate of any Person means (a) any other Person which, directly
---------
or indirectly, controls or is controlled by or is under common control with
such Person and (b) with respect to any Lender, any entity administered or
managed by such Lender or an Affiliate or investment advisor thereof and
which is engaged in making, purchasing, holding or otherwise investing in
commercial loans. A Person shall be deemed to be "controlled by" any other
Person if such Person possesses, directly or indirectly, power to vote 5% or
more of the securities (on a fully diluted basis) having ordinary voting
power for the election of directors or managers or power to direct or cause
the direction of the management and policies of such Person whether by
contract or otherwise. Unless expressly stated otherwise herein, neither the
Administrative Agent nor any Lender shall be deemed an Affiliate of any Loan
Party.
Agreement - see the Preamble.
--------- --------
Applicable Margin means, for any day, the rate per annum set forth
-----------------
below opposite the level (the "Level") then in effect, it being understood
-----
that the Applicable Margin for (i) LIBOR Loans shall be the percentage set
forth under the column "LIBOR Margin", (ii) Base Rate Loans shall be the
percentage set forth under the column "Base Rate Margin", (iii) the Non-Use
Fee Rate shall be the percentage set forth under the column "Non-Use Fee
Rate" and (iv) the L/C Fee shall be the percentage set forth under the
column "L/C Fee Rate":
{TABLE}
{CAPTION}
----------------------------------------------------------------------------------------------------------------------
SENIOR DEBT LIBOR BASE RATE NON-USE L/C FEE
LEVEL TO EBITDA RATIO MARGIN MARGIN FEE RATE RATE
----- --------------- ------ ------ -------- ----
----------------------------------------------------------------------------------------------------------------------
{C} {C} {C} {C} {C} {C}
I Greater than or equal to 2.75:1 1.50% 0% 0.250% 1.50%
but less than 3.0:1
----------------------------------------------------------------------------------------------------------------------
II Greater than or equal to 2.25:1 1.25% 0% 0.225% 1.25%
but less than 2.75:1
----------------------------------------------------------------------------------------------------------------------
III Greater than or equal to 1.75:1 1.00% 0% 0.200% 1.00%
but less than 2.25:1
----------------------------------------------------------------------------------------------------------------------
IV Greater than or equal to 1.25:1 0.750% 0% 0.150% 0.750%
but less than 1.75:1
----------------------------------------------------------------------------------------------------------------------
V Less than 1.25:1 0.625% 0% 0.125% 0.625%
----------------------------------------------------------------------------------------------------------------------
{/TABLE}
The LIBOR Margin, the Base Rate Margin, the Non-Use Fee Rate and
the L/C Fee Rate shall be adjusted, to the extent applicable, on the fifth
(5th) Business Day after the Loan Parties provide or are required to provide
the annual and quarterly financial statements and other information pursuant
to Sections 10.1.1 or 10.1.2, as applicable, and the related Compliance
--------------- ------
Certificate, pursuant to Section 10.1.3. Notwithstanding anything contained
--------------
in this paragraph to the contrary, (a) if the Loan Parties fail to deliver
the financial statements and Compliance Certificate in accordance with the
provisions of Sections 10.1.1, 10.1.2 and 10.1.3, the LIBOR Margin, the Base
--------------- ------ ------
Rate Margin, the Non-Use Fee Rate and the L/C Fee Rate shall be based upon
Level I above beginning on the date such financial statements and Compliance
Certificate were required to be delivered until the fifth (5th) Business Day
after such financial statements and Compliance Certificate are actually
delivered, whereupon the Applicable Margin shall be determined by the then
current Level; (b) no reduction to any Applicable Margin shall become
2
{PAGE}
{PAGE}
effective at any time when an Event of Default or Unmatured Event of Default
has occurred and is continuing; and (c) the initial Applicable Margin on the
Closing Date shall be based on Level V until the date on which the financial
statements and Compliance Certificate are required to be delivered for the
Fiscal Year ending March 31, 2006.
Assignee - see Section 15.6.1.
-------- --------------
Assignment Agreement - see Section 15.6.1.
-------------------- --------------
Attorney Costs means, with respect to any Person, all reasonable
--------------
fees and out-of-pocket charges of any outside counsel to such Person, all
reasonable disbursements of such counsel and all court costs and similar
legal expenses.
Bank Product Agreements means those certain cash management service
-----------------------
agreements entered into from time to time between any Loan Party and a
Lender or its Affiliates in connection with any of the Bank Products.
Bank Product Obligations means all obligations, liabilities,
------------------------
contingent reimbursement obligations, fees, and expenses owing by the Loan
Parties to any Lender or its Affiliates pursuant to or evidenced by the Bank
Product Agreements and irrespective of whether for the payment of money,
whether direct or indirect, absolute or contingent, due or to become due,
now existing or hereafter arising, and including all such amounts that a
Loan Party is obligated to reimburse to the Administrative Agent or any
Lender as a result of the Administrative Agent or such Lender purchasing
participations or executing indemnities or reimbursement obligations with
respect to the Bank Products provided to the Loan Parties pursuant to the
Bank Product Agreements.
Bank Products means any service or facility extended to any Loan
-------------
Party by any Lender or its Affiliates including: (a) credit cards, (b)
credit card processing services, (c) debit cards, (d) purchase cards, (e)
ACH transactions, (f) cash management, including controlled disbursement,
accounts or services, or (g) Hedging Agreements.
Base Rate means at any time the greater of (a) the Federal Funds
---------
Rate plus 0.5% and (b) the Prime Rate.
Base Rate Loan means any Loan which bears interest at or by
--------------
reference to the Base Rate.
Base Rate Margin - see the definition of Applicable Margin.
----------------
BSA - see Section 10.4.
--- ------------
Business Day means any day on which LaSalle is open for commercial
------------
banking business in Chicago, Illinois and, in the case of a Business Day
which relates to a LIBOR Loan, on which dealings are carried on in the
London interbank eurodollar market.
Capital Expenditures means all expenditures which, in accordance
--------------------
with GAAP, would be required to be capitalized and shown on the consolidated
balance sheet of the Loan Parties, including expenditures in respect of
Capital Leases, but excluding expenditures made in connection with the
replacement, substitution or restoration of assets to the extent financed
3
{PAGE}
{PAGE}
(a) from insurance proceeds (or other similar recoveries) paid on account of
the loss of or damage to the assets being replaced or restored or (b) with
awards of compensation arising from the taking by eminent domain or
condemnation of the assets being replaced.
Capital Lease means, with respect to any Person, any lease of (or
-------------
other agreement conveying the right to use) any real or personal property by
such Person that, in conformity with GAAP, is accounted for as a capital
lease on the balance sheet of such Person.
Capital Securities means, with respect to any Person, all shares,
------------------
interests, participations or other equivalents (however designated, whether
voting or non-voting) of such Person's capital, whether now outstanding or
issued or acquired after the Closing Date, including common shares,
preferred shares, membership interests in a limited liability company,
limited or general partnership interests in a partnership, interests in a
Trust, interests in other unincorporated organizations or any other
equivalent of such ownership interest.
Cash Collateralize means to deliver cash collateral to the
------------------
Administrative Agent, to be held as cash collateral for outstanding Letters
of Credit, pursuant to documentation satisfactory to the Administrative
Agent. Derivatives of such term have corresponding meanings.
Cash Equivalent Investment means, at any time, (a) any evidence of
--------------------------
Debt, maturing not more than one year after such time, issued or guaranteed
by the United States Government or any agency thereof, (b) commercial paper,
maturing not more than one year from the date of issue, or corporate demand
notes, in each case (unless issued by a Lender or its holding company) rated
at least A-l by Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, Inc. or P-l by Moody's Investors Service, Inc., (c)
any certificate of deposit, time deposit or banker's acceptance, maturing
not more than one year after such time, or any overnight Federal Funds
transaction that is issued or sold by any Lender or its holding company (or
by a commercial banking institution that is a member of the Federal Reserve
System and has a combined capital and surplus and undivided profits of not
less than $500,000,000), (d) any repurchase agreement entered into with any
Lender (or commercial banking institution of the nature referred to in
clause (c)) which (i) is secured by a fully perfected security interest in
any obligation of the type described in any of clauses (a) through (c) above
and (ii) has a market value at the time such repurchase agreement is entered
into of not less than 100% of the repurchase obligation of such Lender (or
other commercial banking institution) thereunder and (e) money market
accounts or mutual funds which invest exclusively in assets satisfying the
foregoing requirements, (f) securities issued through major broker-dealers
on behalf of their public and corporate financial clients that reset
interest rates at 7, 28 or 35 day intervals and are traded in what is
commonly known as the "Auction Rate Securities Market"; and (g) other short
term liquid investments approved in writing by the Administrative Agent.
Change of Control means, with respect to any Person, an event or
-----------------
series of events by which:
(a) any "person" or "group" as such terms are used in Sections
--------
13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the
----- -----
"Exchange Act"), becomes the "beneficial owner" (as defined in Rules 13d-3
and 13d-5 under the Exchange Act, 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
4
{PAGE}
{PAGE}
immediately or only after the passage of time), directly or indirectly, of
30% 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
(b) during any period of 24 consecutive months, a majority of the
members of the board of directors or other equivalent governing body of such
Person 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 or recommended by individuals referred to in clause (i) above
constituting at the time of such election or nomination at least a majority
of that board or equivalent governing body or (iii) whose election or
nomination to that board or other equivalent governing body was approved or
recommended 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 (excluding, in the case of both
clause (ii) and clause (iii), any individual whose initial nomination for,
or assumption of office as, a member of that board or equivalent governing
body occurs solely as a result of an actual or threatened solicitation of
proxies or consents for the election of such director by any person or group
other than (x) Marc S. Hermelin and all relatives and trusts of which Marc
S. Hermelin or a relative is a trust or beneficiary and (y) a solicitation
for the election of one or more directors by or on behalf of the board of
directors); or
(d) the Loan Parties shall cease to, directly or indirectly, own
and control 100% of each class of the outstanding Capital Securities of each
of its Subsidiaries.
Citibank - see the Preamble.
-------- --------
Closing Date - see Section 12.1.
------------ ------------
Code means the Internal Revenue Code of 1986.
----
Commitment means, as to any Lender, such Lender's commitment to
----------
make Loans, and to issue or participate in Letters of Credit, under this
Agreement. The initial amount of each Lender's commitment to make Loans is
set forth on Annex A.
-------
Company means K-V Pharmaceutical Company, a Delaware corporation.
-------
Compliance Certificate means a Compliance Certificate in
----------------------
substantially the form of Exhibit B.
---------
Computation Period means each period of four consecutive Fiscal
------------------
Quarters ending on the last day of a Fiscal Quarter.
Consolidated Net Income means, with respect to the Company and its
-----------------------
Subsidiaries for any period, the net income (or loss) of the Company and its
Subsidiaries for such period, excluding (i) any gains or losses from the
sale of assets, (ii) any extraordinary gains or losses and any gains or
losses from discontinued operations, and (iii) any expenses associated with
any in-process research and development acquired in connection with any
Acquisition which are required to be expensed under GAAP.
5
{PAGE}
{PAGE}
Contingent Liability means, with respect to any Person, each
--------------------
obligation and liability of such Person and all such obligations and
liabilities of such Person incurred pursuant to any agreement, undertaking
or arrangement by which such Person: (a) guarantees, endorses or otherwise
becomes or is contingently liable upon (by direct or indirect agreement,
contingent or otherwise, to provide funds for payment, to supply funds to,
or otherwise to invest in, a debtor, or otherwise to assure a creditor
against loss) the indebtedness, dividend, obligation or other liability of
any other Person in any manner (other than by endorsement of instruments in
the course of collection), including any indebtedness, dividend or other
obligation which may be issued or incurred at some future time; (b)
guarantees the payment of dividends or other distributions upon the Capital
Securities of any other Person; (c) undertakes or agrees (whether
contingently or otherwise): (i) to purchase, repurchase, or otherwise
acquire any indebtedness, obligation or liability of any other Person or any
property or assets constituting security therefor, (ii) to advance or
provide funds for the payment or discharge of any indebtedness, obligation
or liability of any other Person (whether in the form of loans, advances,
stock purchases, capital contributions or otherwise), or to maintain
solvency, assets, level of income, working capital or other financial
condition of any other Person, or (iii) to make payment to any other Person
other than for value received; (d) agrees to lease property or to purchase
securities, property or services from such other Person with the purpose or
intent of assuring the owner of such indebtedness or obligation of the
ability of such other Person to make payment of the indebtedness or
-------
obligation; (e) to induce the issuance of, or in connection with the
issuance of, any letter of credit for the benefit of such other Person; or
(f) undertakes or agrees otherwise to assure a creditor against loss. The
amount of any Contingent Liability shall (subject to any limitation set
forth herein) be deemed to be the outstanding principal amount (or maximum
permitted principal amount, if larger) of the indebtedness, obligation or
other liability guaranteed or supported thereby.
Controlled Group means all members of a controlled group of
----------------
corporations, all members of a controlled group of trades or businesses
(whether or not incorporated) under common control and all members of an
affiliated service group which, together with the Loan Parties or any of
their Subsidiaries, are treated as a single employer under Section 414 of
the Code or Section 4001 of ERISA.
Convertible Notes means those certain 2.5% Contingent Convertible
-----------------
Subordinated Notes due 2033 payable by the Company to the holders thereof.
Debt of any Person means, without duplication, (a) all indebtedness
----
of such Person, (b) all borrowed money of such Person, whether or not
evidenced by bonds, debentures, notes or similar instruments, (c) all
obligations of such Person as lessee under Capital Leases which have been or
should be recorded as liabilities on a balance sheet of such Person in
accordance with GAAP, (d) all obligations of such Person to pay the deferred
purchase price of property or services (excluding trade accounts payable in
the ordinary course of business), (e) all indebtedness secured by a Lien on
the property of such Person, whether or not such indebtedness shall have
been assumed by such Person; provided that if such Person has not assumed or
--------
otherwise become liable for such indebtedness, such indebtedness shall be
measured at the fair market value of such property securing such
indebtedness at the time of determination, (f) all obligations, contingent
or otherwise, with respect to the face amount of all letters of credit
(whether or not drawn), bankers' acceptances and similar obligations issued
for the account of such Person (including the Letters of Credit), (g) all
Hedging Obligations of such Person, (h) all
6
{PAGE}
{PAGE}
Contingent Liabilities of such Person, (i) all Debt of any partnership of
which such Person is a general partner and (j) any Capital Securities or
other equity instrument, whether or not mandatorily redeemable, that under
GAAP is characterized as debt, whether pursuant to financial accounting
standards board issuance No. 150 or otherwise.
Debt to be Repaid means Debt listed on Schedule 12.1.
----------------- -------------
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