|
|
|
|
Document Preview Program Agreement |
||||
|
|
||||
|
Click "Add to Cart" button to purchase document. |
||||
|
|
||||
|
Title: |
Program Agreement |
|||
|
Entities: |
Citibank, NA; IKON Office Solutions, Inc.; Information Technology Solutions, Inc.; Weil, Gotshal & Manges LLP |
|||
|
Date: |
2004 |
|||
|
Size: |
Preview shows 17KB of 346KB total |
|||
|
Price: |
$58 |
|||
|
ID: |
#915316 |
|||
|
|
||||
|
||||
|
|
||||
|
Start of Preview |
||||
--------------------------
PROGRAM AGREEMENT
--------------------------
BY AND AMONG
GENERAL ELECTRIC CAPITAL CORPORATION,
A DELAWARE CORPORATION,
GE CAPITAL INFORMATION TECHNOLOGY SOLUTIONS, INC.,
A CALIFORNIA CORPORATION,
AND
IKON OFFICE SOLUTIONS, INC.,
AN OHIO CORPORATION
--------------------------
DATED MARCH 31, 2004
--------------------------
------------------------------------------------------------------------------
<PAGE>
TABLE OF CONTENTS
PAGE
Article 1. PROGRAM FINANCING STRUCTURE...................................1
1.1. Financing Structure...........................................1
Article 2. MANAGEMENT OF THE PROGRAM.....................................2
2.1. Executive Committee...........................................2
2.2. Program Relationship Managers.................................4
Article 3. THE PROGRAM...................................................4
3.1. Private Label Administration..................................4
3.2. GE as Preferred Provider......................................6
3.3. GE Right of First Opportunity.................................8
3.4. Sale of Equipment by IKON Companies Other Than IKON...........8
3.5. Federal Program...............................................9
3.6. Product Reviews...............................................9
3.7. Training......................................................9
Article 4. GE RATE SHEETS; CREDIT APPROVAL POLICY; RESIDUAL POLICY.......9
4.1. GE Rate Sheets; Changes.......................................9
4.2. Credit Approval Policy; Changes..............................11
4.3. Residual Policy; Changes.....................................12
Article 5. LEASE ORIGINATIONS...........................................12
5.1. Calculation and Allocations of Minimum Periodic Payment......12
5.2. Application of Payments......................................15
5.3. Remittance of Payments.......................................15
5.4. Financing Documentation; Exceptions..........................17
5.5. Credit Approval; Preparation of Document Package.............19
5.6. Authorization................................................21
5.7. Purchase and Sale of Equipment...............................24
5.8. Rights Under Leases; Security Interest.......................27
5.9. Syndication..................................................29
5.10. Financings with Recourse or Other Support....................30
5.11. Transferred Servicing Agreements.............................30
i
<PAGE>
TABLE OF CONTENTS
(continued)
PAGE
5.12. Execution and Assignment of Certain Program Financing
Contracts....................................................30
5.13. Non-Standard Financing Contracts.............................31
5.14. Program Reliance and Recourse................................32
Article 6. ADMINISTRATION...............................................32
6.1. Administration of GE Portfolio...............................32
6.2. De-Installation, Repossession and Remarketing Support........37
6.3. Cancel/Upgrades; Mid-Term Buy Outs...........................38
6.4. Administrative Support from IKON.............................41
6.5. Evergreen Rentals............................................42
6.6. Performance of Services; Force Majeure.......................43
Article 7. AUDIT RIGHTS.................................................43
7.1. Audit Rights.................................................43
Article 8. REPRESENTATIONS, WARRANTIES AND COVENANTS....................46
8.1. General Representations and Warranties of IKON...............46
8.2. Transactional Representations and Warranties of IKON.........47
8.3. Covenants of IKON............................................49
8.4. Representations and Warranties of GE and GECITS..............51
8.5. Covenants of GE and GECITS...................................52
Article 9. REMEDIES.....................................................53
9.1. IKON Indemnities.............................................53
9.2. GE Indemnities...............................................53
9.3. Indemnification Procedure for Third Party Actions............53
9.4. Purchase of Program Financing Contracts, Program Stream
Financings and Equipment.....................................55
9.5. Personal Property Tax Reimbursement..........................56
9.6. Right of Offset..............................................56
9.7. Limitation on Damages........................................56
Article 10. FEES; OTHER AGREEMENTS; LOSS POOL............................56
10.1. Origination Fees.............................................56
10.2. Other Agreements.............................................57
ii
<PAGE>
TABLE OF CONTENTS
(continued)
PAGE
10.3. Rejected Application Fee.....................................57
10.4. Year One Expense Reimbursement...............................57
10.5. [INTENTIONALLY OMITTED]......................................58
10.6. Loss Pool....................................................58
Article 11. TERM AND TERMINATION.........................................59
11.1. Term of Agreement............................................59
11.2. Termination Rights...........................................59
11.3. Consequences of Termination..................................60
Article 12. MISCELLANEOUS................................................63
12.1. Confidentiality..............................................63
12.2. Amendments...................................................64
12.3. Integrated Contract..........................................64
12.4. Governing Law................................................64
12.5. Notices......................................................65
12.6. No Assignment................................................66
12.7. Headings.....................................................66
12.8. Counterparts.................................................66
12.9. Announcements................................................66
12.10. Severability.................................................66
12.11. Binding Effect...............................................66
12.12. Waiver of Jury Trial.........................................66
12.13. Exclusive Jurisdiction.......................................67
12.14. No Third Party Beneficiary...................................67
12.15. Expenses.....................................................67
12.16. Misdirected Payments or Communications.......................67
12.17. Representation by Counsel; Interpretation....................68
12.18. No Partnership...............................................68
12.19. Further Assurances...........................................68
iii
<PAGE>
TABLE OF CONTENTS
Table of Exhibits
-----------------
Exhibit A Residual Policy
Exhibit B Credit Approval Policy
Exhibit C [Intentionally Omitted]
Exhibit D Minimum Periodic Payment Worksheet
Exhibit E Application Methodology
Exhibit F Allocation Policy
Exhibit G Write-Off Policy
Exhibit H-1 Form of SLG Notification Letter
Exhibit H-2 Form of SLG Consent Letter
Exhibit I-1 Form of Program Financing Contract
Exhibit I-2 Exceptions Manual
Exhibit J GE Rate Sheets and Related Assumptions
Exhibit K Representative Contracts
Exhibit L Federal Assignment Agreement
Exhibit M Non-Standard Representations, Warranties,
Covenants and Indemnities
Table of Annexes
----------------
Annex A Definitions
Annex B Designee Notices
Annex C IKON Syndication Partners
Annex D ABS Agreed Warranties
Annex E Prohibited Transferees Syndication Partners
Annex F Responsible Officers
Table of Schedules
------------------
Schedule 1 Other Agreements
Schedule 2 Existing Facilities Management Agreements
iv
<PAGE>
EXECUTION COPY
PROGRAM AGREEMENT
THIS PROGRAM AGREEMENT, dated as of March 31, 2004, is by and among
GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation with a business
address at 10 Riverview Drive, Danbury, CT 06810 ("GE"), GE CAPITAL INFORMATION
TECHNOLOGY SOLUTIONS, INC., a California corporation with a business address at
10 Riverview Drive, Danbury, CT 06810 ("GECITS"), and IKON OFFICE SOLUTIONS,
INC., an Ohio corporation with its principal place of business at 70 Valley
Stream Parkway, Malvern, PA 19355 ("IKON"). Unless otherwise defined herein,
all capitalized terms are defined in Annex A.
RECITALS
WHEREAS, GE and IKON have entered into the Asset Purchase Agreement
pursuant to which, among other things, GE has agreed to purchase (or to cause
one or more of its Affiliates to purchase) from IKON the Purchased Assets (as
defined in the Asset Purchase Agreement) and to enter into this Agreement to
provide for a Customer financing program with respect to IKON's and its
Affiliates' sales and financing of Equipment for Customers of the IKON
Companies at locations in the United States; and
WHEREAS, GE, GECITS and IKON desire to enter into this Agreement to
set forth their respective rights and duties with respect to and under the
Program;
NOW THEREFORE, in consideration of the above premises and of the
representations, warranties, covenants and indemnities contained herein, and
for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereby agree as follows:
ARTICLE 1.
PROGRAM FINANCING STRUCTURE
1.1. Financing Structure.
(a) During the Term and subject to the conditions set forth
herein, GECITS shall (i) originate, in the manner set forth below, contracts in
the form of lease or rental agreements relating to the lease or rental of
Equipment to Customers (other than State and Local Government Entities or the
United States Government) of IKON and its Subsidiaries (collectively, the "IKON
Companies") at locations in the United States (each, an "Originated Financing
Contract"), (ii) purchase, in the manner set forth below, SLG Financing
Contracts relating to the lease or rental of Equipment to State and Local
Government Entities at locations in the United States, (iii) purchase, in the
manner set forth below, IKON Originated Financing Contracts relating to the
lease or rental of Equipment to Customers of the IKON Companies at locations in
the United States and (iv) purchase, in the manner set forth below, Program FM
<PAGE>
Stream Financings and Program EM Stream Financings relating to the lease or
rental of Equipment to Customers of the IKON Companies at locations in the
United States.
(b) The payments that may from time to time become due under a
Program Financing Contract or Program Stream Financing Agreement consist of (i)
the periodic minimum payment thereunder (the "Minimum Periodic Payment") which
shall be allocated between the parties as specified in Section 5.1 and (ii) one
or more of the following (if applicable): (A) the excess "cost per copy" meter
charge thereunder (i.e., the per copy charge for copies in excess of a stated
base volume of copies) (the "CPC Payment"), (B) Sales Tax Payments, (C) late
charges thereunder ("Late Charges"), (D) Uplift Payments, (E) collateral
protection insurance charges under Purchased Financing Contracts (the "CPI
Charges"), (F) payments by the Obligor thereunder in connection with the
exercise of any option to purchase the Equipment subject to such Program
Financing Contract or Program Stream Financing Agreement, (G) property tax
administration fees thereunder ("Administration Fees") and/or (H) payments in
respect of other sundry charges thereunder.
ARTICLE 2.
MANAGEMENT OF THE PROGRAM
2.1. Executive Committee.
(a) Generally; Size. In connection with the Program, GE, GECITS
and IKON shall establish and shall maintain an executive committee (the
"Executive Committee") to monitor and review the operation and administration
of the Program and oversee the relationship of the parties. The Executive
Committee shall consist of three (3) designees of IKON (collectively, the "IKON
Designees"), and three (3) designees of GE (collectively, the "GE Designees"),
|
End of Preview |
Home Intelligence Services Subscriptions News About Us