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Title: |
Collateral Sharing Agreement |
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Entities: |
Bank One, NA; Nurotoco of New Jersey, Inc. ; Roto-Rooter Inc.; Wells Fargo Bank, NA |
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Date: |
2004 |
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Size: |
Preview shows 15KB of 101KB total |
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Price: |
$51 |
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ID: |
#2136164 |
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COLLATERAL SHARING AGREEMENT
COLLATERAL SHARING AGREEMENT dated as of February 24, 2004, among
BANK ONE, NA, having its principal office in Chicago, Illinois ("Bank One"),
as Collateral Agent, Wells Fargo Bank, National Association, as Trustee for
the benefit of the holders of the Notes (such term and each other capitalized
term used herein having the meanings set forth in Section 1 below), Bank One,
as Administrative Agent for the benefit of the lenders under the Existing
Credit Agreement, and ROTO-ROOTER, INC.
W I T N E S S E T H:
WHEREAS, the Company, certain lenders, and the Administrative Agent,
are parties to the Credit Agreement dated as of February 24, 2004 (as amended,
restated, supplemented or otherwise modified from time to time, the "Existing
Credit Agreement");
WHEREAS, the Company, the Trustee and the Guarantors have entered
into the Indenture dated as of February 24, 2004 (as amended, supplemented or
otherwise modified from time to time, the "Indenture"), pursuant to which the
Company intends to issue the Notes; and
WHEREAS, pursuant to the Security Documents, the Company and each of
the other Grantors have granted a security interest in certain of their
respective assets to the Collateral Agent for the equal and ratable benefit of
the Secured Parties.
NOW, THEREFORE, in consideration of the foregoing, the mutual
covenants and obligations herein set forth and for other good and valuable
consideration, the sufficiency and receipt of which are hereby acknowledged,
the parties hereto, intending to be legally bound, hereby agree as follows:
SECTION 1. DEFINITIONS AND TERMS GENERALLY.
1.1. Definitions. As used in this Agreement, the following terms
have the meanings specified below:
"Administrative Agent" means Bank One, NA, in its capacity as the
administrative agent under the Existing Credit Agreement.
"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. Notwithstanding the foregoing, no individual shall be deemed to be
an Affiliate of a Person solely by reason of his or her being an officer or
director of such Person.
"Aggregate Credit Agreement Exposure" means at any time, without
duplication, the aggregate amount of Credit Agreement Obligations outstanding
plus the amount of all commitments of the Senior Lenders under the Senior Loan
Documents to extend credit (whether by making loans or providing or
participating in letters of credit or otherwise), but excluding any letters of
credit or obligations owing in respect of letters of credit to the extent the
same are secured in accordance with the Senior Credit Agreement by property
that does not secure the Notes.
{PAGE}
"Applicable Secured Documents" means (a) in respect of any
Noteholder Claims, the Noteholder Documents and (b) in respect of any Senior
Lender Claims, the relevant Senior Loan Documents.
"Bankruptcy Law" means Title 11 of the United States Code and any
similar Federal, state or foreign law for the relief of debtors.
"Business Day" means any day other than a Saturday, a Sunday or a
day that is a legal holiday under the laws of the State of New York or the
State of Illinois or on which banking institutions in the State of New York or
the State of Illinois are required or authorized by law or other governmental
action to close.
"Collateral" means all assets or property of the Grantors, now owned
or hereafter acquired, upon which a Lien is purported to be created by any
Security Document.
"Collateral Account" has the meaning set forth in Section 4.1.
"Collateral Agent" means Bank One, NA, in its capacity as collateral
agent under the Security Documents and this Agreement.
"Collateral Agent Fees" means all fees, costs and expenses of, and
other amounts owing to, the Collateral Agent of the types referred to in
Section 2.4.
"Collateral Estate" has the meaning set forth in Section 2.1(b).
"Company" means Roto-Rooter, Inc., a Delaware corporation.
"Credit Agreement" means the Existing Credit Agreement together with
any guarantees, collateral documents, instruments and agreements executed in
connection therewith, in each case as amended, restated, supplemented, waived,
replaced (whether or not upon termination, and whether with the original
lenders or otherwise), refinanced, restructured, or otherwise modified from
time to time (except to the extent that any such amendment, restatement,
supplement, waiver, replacement, refinancing, restructuring or other
modification thereto would be prohibited by the terms of the Indenture, unless
otherwise agreed to by the Noteholders of a least a majority in aggregate
principal amount of Notes at the time outstanding).
"Credit Agreement Obligations" means (i) all Indebtedness
outstanding under the Senior Credit Agreement, (ii) all other obligations (not
constituting Indebtedness) of the Company or any Grantor under the Senior
Credit Agreement, and (iii) all other obligations of the Company or any
Grantor in connection with Hedging Obligations owing to any Senior Lender
under the Senior Credit Agreement or any affiliate of such Senior Lender,
unless the Company and such Senior Lender mutually agree that such Hedging
Obligation does not constitute a "Secured Obligation" under and as defined in
the Senior Credit Agreement.
"Credit Facilities" means one or more debt facilities (including the
Credit Agreement) or commercial paper facilities providing for revolving
credit loans, term loans,
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{PAGE}
receivables financing (including through the sale of receivables to lenders or
to special purpose entities formed to borrow from lenders against such
receivables) or letters of credit, or any debt securities or other form of
debt financing (including convertible or exchangeable debt instruments), in
each case, as amended, supplemented, modified, extended, renewed, restated or
refunded in whole or in part from time to time.
"Discharge of Senior Credit Agreement Claims" means, except to the
extent otherwise provided in Section 5.2, payment in full in cash of (a) the
principal of and interest and premium, if any, on all Indebtedness outstanding
under the Senior Credit Agreement constituting Senior Lender Claims or, with
respect to letters of credit outstanding thereunder, delivery of cash
collateral or backstop letters of credit in respect thereof in compliance with
the Senior Credit Agreement, in each case after or concurrently with
termination of all commitments to extend credit thereunder and (b) any other
Senior Lender Claims that are due and payable or otherwise accrued and owing
under the Senior Credit Agreement at or prior to the time such principal,
interest and premium, if any, are paid.
"Discharge of Credit Agreement Obligations" means payment in full in
cash of (a) the principal of and interest and premium, if any, on all
Indebtedness outstanding under the Credit Agreement or, with respect to
Hedging Obligations that are Credit Agreement Obligations, or with respect to
letters of credit outstanding thereunder, delivery of cash collateral or
backstop letters of credit in respect thereof in compliance with the Senior
Credit Agreement, in each case after or concurrently with termination of all
commitments to extend credit thereunder and (b) payment in full of any other
Credit Agreement Obligations that are due and payable or otherwise accrued and
owing at or prior to the time such principal, interest and premium, if any,
are paid.
"Distribution Date" means each date fixed by the Collateral Agent in
its sole discretion for a distribution pursuant to the applicable provisions
of this Agreement of any funds held in the Collateral Account.
"Existing Credit Agreement" has the meaning set forth in the
recitals hereto.
"First-Lien Credit Facilities" means (a) the Credit Facilities
provided pursuant to the Credit Agreement and (b) any other Credit Facility
(other than the Notes), that, in the case of both clauses (a) and (b), is
secured by the Collateral pursuant to a Permitted Lien (as defined in the
Indenture) described in clause (7), (12) or (13) of the definition thereof and
(except for the Credit Facilities provided pursuant to the Existing Credit
Agreement) is designated by the Company as a "First-Lien Credit Facility" for
purposes of this Agreement.
"Future First-Lien Credit Facility" means any First-Lien Credit
Facility (other than the Existing Credit Agreement), provided that the
Required Lenders under any Senior Credit Agreement then in effect have
consented to the designation of such Credit Facility as a "First-Lien Credit
Facility".
"Future Other First-Lien Obligations" means all Obligations of the
Company or any other Grantor, to a creditor under a First-Lien Credit
Facility, in respect of Hedging Obligations that are designated by the Company
as "Credit Agreement Obligations" for purposes
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{PAGE}
of the Indenture; provided that the Required Lenders under any Senior Credit
Agreement then in effect have consented to such designation.
"Grantors" means each of the Company and the Subsidiaries that has
executed and delivered a Security Document.
"Guarantors" means each of the Grantors other than the Company.
"Guaranty" means any guaranty entered into by any Subsidiary of the
Company in favor of any Secured Party guaranteeing the repayment of the
Secured Obligations.
"Hedging Obligations" means, with respect to any Person, the
Obligations of such Person in respect of (a) any interest rate protection
agreement, interest rate future agreement, interest rate option agreement,
interest rate swap agreement, interest rate cap agreement, interest rate
collar agreement, interest rate hedge agreement or other similar agreement or
arrangement or (b) any foreign exchange contract, currency swap agreements or
other similar agreement or arrangement.
"Indebtedness" means and includes all obligations that constitute
"Indebtedness" within the meaning of the Indenture or the Senior Credit
Agreement.
"Indenture" has the meaning set forth in the recitals hereto.
"Insolvency or Liquidation Proceeding" means (a) any voluntary or
involuntary case or proceeding under any Bankruptcy Law with respect to any
Grantor, (b) any other voluntary or involuntary insolvency, reorganization or
bankruptcy case or proceeding, or any receivership, liquidation,
reorganization or other similar case or proceeding with respect to any Grantor
or with respect to any of their respective assets, (c) any liquidation,
dissolution, reorganization or winding up of any Grantor whether voluntary or
involuntary and whether or not involving insolvency or bankruptcy or (d) any
assignment for the benefit of creditors or any other marshalling of assets and
liabilities of any Grantor.
"Instructing Group" means (i) until the Discharge of Credit
Agreement Obligations has occurred and so long as no Insolvency or Liquidation
Proceeding is continuing, the Required Lenders, and (ii) after the Discharge
of Credit Agreement Obligations has occurred or during the continuance of any
Insolvency or Liquidation Proceeding, the Majority Secured Parties.
"Lien" means, with respect to any asset, (a) any mortgage, deed of
trust, lien, pledge, hypothecation, encumbrance, charge or security interest
in, on or of such asset, (b) the interest of a vendor or a lessor under any
conditional sale agreement, capital lease or title retention agreement (or any
financing lease having substantially the same economic effect as any of the
foregoing) relating to such asset and (c) in the case of securities, any
purchase option, call or similar right of a third party with respect to such
securities.
"Majority Secured Parties" means, at any time, the Secured Party or
Secured Parties, acting through its (or their) respective Representative,
holding more than 50% of the aggregate amount of the Secured Obligations then
outstanding. In calculating the aggregate
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{PAGE}
amount of the Secured Obligations then outstanding represented by each
Representative, (a) the amount of Indebtedness outstanding shall be that
reflected on the applicable debtor's balance sheet, as determined in
accordance with GAAP, (b) the amount outstanding in respect of a letter of
credit shall be the face amount of such letter of credit less the amount of
any property that secures the repayment of such letter of credit (and not the
Notes) in accordance with the Senior Loan Documents, and (c) the amount
outstanding in respect of Hedging Obligations shall be the amount which would
be due and payable to a Secured Party holding such Hedging Obligations if such
Hedging Obligations were then terminated.
"Noteholder Claims" means all Obligations in respect of the Notes
and the guarantees of the Notes or arising under the Noteholder Documents or
any of them. Noteholder Claims shall include all interest accrued or accruing
(or which would, absent the commencement of any Insolvency or Liquidation
Proceeding, accrue) after the commencement of any Insolvency or Liquidation
Proceeding in accordance with and at the rate specified in the relevant
Noteholder Document whether or not the claim for such interest is allowed as a
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