Omnibus Credit Facility Agreement

OMNIBUS CREDIT FACILITY AGREEMENT


dated as of February 12, 1999


among


BLACK BOX CORPORATION OF PENNSYLVANIA,


BLACK BOX CORPORATION


and


MELLON BANK, N.A.


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Table of Contents


Section Title Page ------- ----- ----


ARTICLE I DEFINITIONS; CONSTRUCTION...........................................................................1


1.01 Certain Definitions.............................................................................1


1.02 Construction...................................................................................17


1.03 Accounting Principles..........................................................................18


ARTICLE II REVOLVING CREDIT..................................................................................20


2.01 Revolving Credit Loans.........................................................................20


2.02 Revolving Credit Commitment Fee................................................................21


2.03 Making of Revolving Credit Loans...............................................................21


2.04 Interest Rates.................................................................................22


2.05 Conversion or Renewal of Interest Rate Options.................................................25


2.06 Prepayments Generally..........................................................................26


2.07 Optional Prepayments...........................................................................27


2.08 Interest Payment Dates.........................................................................27


2.09 Payments Generally; Interest on Overdue Amounts................................................28


2.10 Additional Compensation in Certain Circumstances...............................................28


2.11 Taxes..........................................................................................31


2.12 Funding by Branch, Subsidiary or Affiliate.....................................................32


ARTICLE III LETTERS OF CREDIT................................................................................33


3.01 Letters of Credit..............................................................................33


3.02 Letter of Credit Fees..........................................................................33


3.03 Procedure for Issuance of Letters of Credit....................................................35


3.04 Payments.......................................................................................35


3.05 Increased Costs................................................................................35


3.06 Further Assurances.............................................................................36


3.07 Obligations Absolute...........................................................................36


3.08 Additional Provisions Regarding Letters of Credit..............................................37


ARTICLE IV REPRESENTATIONS AND WARRANTIES....................................................................38


4.01 Corporate Status...............................................................................38


4.02 Corporate Power and Authorization..............................................................38


4.03 Execution and Binding Effect...................................................................39


4.04 Governmental Approvals and Filings.............................................................39


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4.05 Absence of Conflicts...........................................................................39


4.06 Audited Financial Statements...................................................................40


4.07 Absence of Undisclosed Liabilities.............................................................41


4.08 Absence of Material Adverse Changes............................................................41


4.09 Accurate and Complete Disclosure...............................................................41


4.10 Margin Regulations.............................................................................41


4.11 Subsidiaries...................................................................................41


4.12 Partnerships, etc..............................................................................42


4.13 Ownership and Control..........................................................................42


4.14 Litigation.....................................................................................42


4.15 Absence of Events of Default...................................................................43


4.16 Absence of Other Conflicts.....................................................................43


4.17 Insurance......................................................................................43


4.18 Title to Property..............................................................................43


4.19 Intellectual Property..........................................................................43


4.20 Taxes..........................................................................................44


4.21 Employee Benefits..............................................................................44


4.22 Environmental Matters..........................................................................45


4.23 Solvency.......................................................................................45


4.24 Regulatory Status..............................................................................46


4.25 Permits and Other Operating Rights.............................................................46


4.26 Year 2000 Compliance...........................................................................46


ARTICLE V CONDITIONS OF LENDING..............................................................................47


5.01 Conditions to Initial Revolving Credit Loans...................................................47


5.02 Conditions to All Revolving Credit Loans.......................................................48


ARTICLE VI AFFIRMATIVE COVENANTS.............................................................................49


6.01 Basic Reporting Requirements...................................................................49


6.02 Insurance......................................................................................54


6.03 Payment of Taxes and Other Potential Charges and Priority Claims...............................54


6.04 Preservation of Corporate Status...............................................................55


6.05 Governmental Approvals and Filings.............................................................55


6.06 Maintenance of Properties......................................................................55


6.07 Avoidance of Other Conflicts...................................................................55


6.08 Financial Accounting Practices.................................................................56


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6.09 Use of Proceeds................................................................................57


6.10 Continuation of or Change in Business..........................................................57


6.11 Consolidated Tax Return........................................................................57


6.12 Fiscal Year....................................................................................57


6.13 Covenant to Secure Note Equally................................................................57


ARTICLE VII NEGATIVE COVENANTS...............................................................................57


7.01 Consolidated Net Worth.........................................................................58


7.02 Leverage.......................................................................................58


7.03 Cash Flow......................................................................................58


7.04 Liens..........................................................................................58


7.05 Indebtedness...................................................................................59


7.06 Guarantees, Indemnities of the Borrower, etc...................................................60


7.07 Loans, Advances and Investments................................................................61


7.08 Dividends and Related Distributions............................................................62


7.09 Sale-Leasebacks................................................................................62


7.10 Mergers, Acquisitions, etc.....................................................................62


7.11 Dispositions of Properties.....................................................................63


7.12 Dealings with Affiliates.......................................................................63


7.13 Capital Expenditures...........................................................................63


7.14 Limitation on Other Restrictions on Liens......................................................63


7.15 License Agreement..............................................................................63


ARTICLE VIII DEFAULTS........................................................................................64


8.01 Events of Default..............................................................................64


8.02 Consequences of an Event of Default............................................................66


ARTICLE IX GUARANTY AND SURETYSHIP...........................................................................67


9.01 Guaranty and Suretyship........................................................................67


9.02 Obligations Absolute...........................................................................67


9.03 Waivers, etc...................................................................................69


9.04 Reinstatement..................................................................................70


9.05 No Stay........................................................................................71


9.06 Payments.......................................................................................71


9.07 Subrogation, etc...............................................................................71


9.08 Continuing Guaranty............................................................................71


9.09 Subordination..................................................................................72


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ARTICLE X MISCELLANEOUS......................................................................................72


10.01 Holidays......................................................................................72


10.02 Records.......................................................................................72


10.03 Amendments and Waivers........................................................................72


10.04 No Implied Waiver; Cumulative Remedies........................................................73


10.05 Notices.......................................................................................73


10.06 Expenses; Taxes; Indemnity....................................................................73


10.07 Severability..................................................................................75


10.08 Prior Understandings..........................................................................75


10.09 Duration; Survival............................................................................75


10.10 Counterparts..................................................................................76


10.11 Limitation on Payments........................................................................76


10.12 Set-Off.......................................................................................76


10.13 Successors and Assigns; Participations........................................................77


10.14 Governing Law; Submission to Jurisdiction: Waiver of Jury Trial; Limitation of Liability.....78


10.15 Termination of Existing Revolving Credit Facilities...........................................79


10.16 Confidentiality...............................................................................80


Exhibit A - Form of Revolving Credit Note
Exhibit B - Form of Continuing Letter of Credit Agreement
Exhibit C - Form of Documentary Letter of Credit Application
Exhibit D - Form of Note (Stock Payments)
Exhibit E - Subordination Terms


Schedule 4.01 - Jurisdictions of Incorporation
Schedule 4.11 - Capitalization of Subsidiaries
Schedule 4.12 - Joint Ventures
Schedule 4.13 - Capitalization of Borrower and Guarantor
Schedule 4.14 - Litigation
Schedule 4.21 - Plans and Multiemployer Plans
Schedule 7.04 - Existing Liens
Schedule 7.05 - Existing Indebtedness


Annex A - Pricing Grid


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THIS OMNIBUS CREDIT FACILITY AGREEMENT (this "Agreement"), dated as of February 12, 1999, by and among BLACK BOX CORPORATION OF PENNSYLVANIA, a Delaware corporation (the "Borrower"), BLACK BOX CORPORATION, a Delaware corporation (the "Guarantor"), and MELLON BANK, N.A., a national banking association (the "Lender").


W I T N E S S E T H:


WHEREAS, the Borrower is proposing to refinance certain obligations of the Borrower and the Guarantor to the Lender under the Credit Agreement, dated as of May 6, 1994, between the Lender and the Borrower, as amended (the "Existing Revolving Credit Facility");


WHEREAS, the Borrower has requested the Lender (a) to provide the funds necessary to refinance such obligations and (b) to provide a revolving credit facility to provide funds for the working capital requirements and general corporate purposes of the Borrower and to provide for the issuance of Letters of Credit for the account of the Borrower; and


WHEREAS, the Lender has agreed to extend credit to the Borrower on the terms and conditions set forth herein.


NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained and intending to be legally bound hereby, the parties hereto agree as follows:


ARTICLE I
DEFINITIONS; CONSTRUCTION


1.01. Certain Definitions. In addition to other words and terms defined elsewhere in this Agreement, as used herein the following words and terms shall have the following meanings, respectively, unless the context hereof otherwise clearly requires:


"ABS Rate" shall mean a per annum rate of interest equal to the rate of interest determined by the Lender, in its sole discretion from time to time, to be its ABS Rate. Such ABS Rate shall change from time to time as of the effective date of each change in the ABS Rate as determined in the sole discretion of the Lender. The ABS Rate may be greater or less than other interest rates charged by the Lender to other borrowers and is not solely based or dependent upon the interest rate which the Lender may charge any particular borrower or class of borrowers.


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"ABS Rate Option" shall have the meaning set forth in Section 2.04(a)(iii) hereof.


"ABS Rate Portion" of any Revolving Credit Loan or Loans shall mean at any time the portion, including the whole, of such Revolving Credit Loan or Loans bearing interest at such time under the ABS Rate Option. If no Revolving Credit Loan or Loans is specified, "ABS Rate Portion" shall refer to the ABS Rate Portion of all Revolving Credit Loans outstanding at such time.


"Acquisition" of a Person shall mean the acquisition of all or substantially all of the assets of such Person, whether by acquisition of the assets of such Person or of the ownership interests of such Person, or otherwise.


"Affiliate" of a Person (the "Specified Person") shall mean any Person which directly or indirectly controls, or is controlled by, or is under common control with, the Specified Person. For purposes of the preceding sentence, "control" of a Person means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by contract or otherwise.


"Applicable Margin" shall have the meaning set forth in Section 2.04(b).


"Applicable Tier" shall have the meaning set forth in Annex A hereof.


"Assured Obligation" shall have the meaning set forth in the definition of Guaranty Equivalent.


"Base Rate" shall have the meaning set forth in Section 2.04(a)(i) hereof.


"Base Rate Option" shall have the meaning set forth in Section 2.04(a)(i) hereof.


"Base Rate Portion" of any Revolving Credit Loan or Loans shall mean at any time the portion, including the whole, of such Revolving Credit Loan or Loans bearing interest at such time (a) under the Base Rate Option or (b) in accordance with Section 2.09(b)(ii) hereof. If no Revolving Credit Loan or Loans is specified, "Base Rate Portion" shall refer to the Base Rate Portion of all Revolving Credit Loans outstanding at such time.


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"Business Day" shall mean any day other than a Saturday, Sunday, public holiday under the laws of the Commonwealth of Pennsylvania or other day on which banking institutions are authorized or obligated to close in Pittsburgh, Pennsylvania.


"Capital Expenditures" of any Person shall mean, for any period, all expenditures (whether paid in cash or accrued as liabilities during such period) of such Person during such period which would be classified as capital expenditures in accordance with GAAP (including, without limitation, expenditures for maintenance and repairs which are capitalized, and Capitalized Leases to the extent an asset is recorded in connection therewith in accordance with GAAP).


"Capitalized Lease" shall mean at any time any lease which is, or is required under GAAP to be, capitalized on the balance sheet of the lessee at such time, and "Capitalized Lease Obligation" of any Person at any time shall mean the aggregate amount which is, or is required under GAAP to be, reported as a liability on the balance sheet of such Person at such time as lessee under a Capitalized Lease.


"Cash Equivalent Investments" shall mean any of the following, to the extent acquired for investment and not with a view to achieving trading profits: (a) obligations fully backed by the full faith and credit of the United States of America maturing not in excess of nine (9) months from the date of acquisition, (b) commercial paper maturing not in excess of nine (9) months from the date of acquisition and rated "P-1" by Moody's Investors Service or "A-1" by Standard & Poor's Corporation on the date of acquisition, and (c) the following obligations of any domestic commercial bank having capital and surplus in excess of $500,000,000, which has, or the holding company of which has, a commercial paper rating meeting the requirements specified in clause (b) above: (i) time deposits, certificates of deposit and acceptances maturing not in excess of nine (9) months from the date of acquisition, or (ii) repurchase obligations with a term of not more than seven (7) days for underlying securities of the type referred to in clause (a) above.


"CERCLA" shall mean the Comprehensive Environmental Response, Compensation and Liability Act, as amended, and any successor statute of similar import, and regulations thereunder, in each case as in effect from time to time.


"CERCLIS" shall mean the Comprehensive Environmental Response, Compensation and Liability Information System List, as the same may be amended from time to time.


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"Change of Control Event" shall mean the beneficial ownership or acquisition by any Person or group of affiliated Persons (in any transaction or series of transactions) of (a) shares of the Guarantor representing more than fifty percent (50%) of the voting control of the Guarantor or (b) the power to elect, appoint or cause the election or appointment of at least a majority of the members of the board of directors of the Guarantor.


"Closing Date" shall mean the date of this Agreement.


"Code" means the Internal Revenue Code of 1986, as amended, and any successor statute of similar import, and regulations thereunder, in each case as in effect from time to time. References to sections of the Code shall be construed also to refer to any successor sections.


"Commitment Fee Rate" shall have the meaning set forth in Section 2.02.


"Consolidated Cash Flow Coverage Ratio", as of the last day of any fiscal quarter, shall mean the ratio of (a) Consolidated EBITDA minus Capital Expenditures of the Guarantor minus charges against income for foreign, federal, state and local income Taxes to (b) the current maturities of long term Indebtedness of the Guarantor plus Consolidated Interest Expense, in each case for the 4 most recently completed fiscal quarters ending on such day, considered as a single accounting period. If an Acquisition occurs during such period, each element of the Consolidated Cash Flow Coverage Ratio shall be calculated on a pro forma basis as if the Acquisition had been made, and any Indebtedness or other obligations issued or incurred in connection therewith had been issued or incurred, as of the first day of such period. In making such pro forma calculation of the Consolidated Interest Expense with respect to Indebtedness or other obligations issued or incurred in connection with the Acquisition, interest expense thereon shall be calculated on the basis of an interest rate per annum not less than the one-month Euro-Rate as of the last day of such period plus an Applicable Margin determined on the basis of the Consolidated Leverage Ratio as of the last day of such period.


"Consolidated EBIT" for any period, with respect to the Guarantor and its consolidated Subsidiaries, shall mean the sum of (a) Consolidated Net Income of the Guarantor for such period, (b) Consolidated Interest Expense for such period and (c) charges against income for foreign, federal, state and local income taxes for such period, all as determined on a consolidated basis in accordance with GAAP.


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"Consolidated EBITDA" for any period, with respect to the Guarantor and its consolidated Subsidiaries, shall mean the sum of (a) Consolidated EBIT for such period, (b) depreciation expense for such period, and (c) amortization expense for such period, all as determined on a consolidated basis in accordance with GAAP plus noncash charges to the extent included in determining Consolidated Net Income for which no future cash expenditure is reasonably anticipated.


"Consolidated Interest Expense" for any period shall mean the total interest expense of the Loan Parties and their consolidated Subsidiaries for such period determined on a consolidated basis in accordance with GAAP.


"Consolidated Leverage Ratio", as of the last day of each fiscal quarter, shall mean the ratio of (a) the aggregate Indebtedness of the Guarantor and its consolidated Subsidiaries as of such day to (b) Consolidated EBITDA of the Guarantor and its consolidated Subsidiaries for the 4 most recently completed fiscal quarters ending on such day, considered as a single accounting period. If an Acquisition occurs during such period, (i) Consolidated EBITDA of the Guarantor and its consolidated Subsidiaries shall be calculated on a pro forma basis as if the Acquisition had been made as of the first day of such period and (ii) the aggregate Indebtedness of the Guarantor and its consolidated Subsidiaries as of the date of determination of the Consolidated Leverage Ratio shall include Indebtedness incurred in connection with and after giving effect to the Acquisition (and including, on a pro forma basis, all Indebtedness to be incurred in connection with the Acquisition, to the extent not incurred on such date).


"Consolidated Net Income" of any Person (the "Statement Person") for any peri ...