Second Amended and Restated Credit Agreement among Marketing Specialists Corporation, Lenders, and First Union National Bank (Agent)

Contract Categories: Business Finance › Credit Agreements
Summary

This agreement is between Marketing Specialists Corporation as the borrower, a group of lenders, and First Union National Bank acting as the agent for the lenders. It sets out the terms for a term loan, including repayment, interest, and use of funds. The agreement also details the borrower's financial and operational obligations, restrictions on certain activities, and the rights of the lenders in case of default. The agreement is effective as of March 2000 and amends and restates a prior credit agreement dated December 18, 1998.

Read More Arrow
EX-10.13 14 ex-10_13.txt EXHIBIT 10.13 Exhibit 10.13 SECOND AMENDED AND RESTATED CREDIT AGREEMENT AMONG MARKETING SPECIALISTS CORPORATION ("BORROWER"), THE LENDERS SET FORTH ON SCHEDULE 1 HERETO ("LENDERS") AND FIRST UNION NATIONAL BANK, AS AGENT FOR THE LENDERS ("AGENT") CREDIT AGREEMENT DATED DECEMBER 18, 1998, AS AMENDED AND RESTATED MARCH ___, 2000 i TABLE OF CONTENTS
Page SECTION 1 - DEFINITIONS 1 1.1. Definitions 1 1.2. Rules of Construction 16 SECTION 2 - TERM LOAN 16 2.1. Term Loan 16 2.2. Promissory Notes 16 2.3. Lenders'Participation 17 2.4. Use of Proceeds 17 2.5. Repayment 17 2.6. Interest 17 2.7. Prepayment 20 2.8. Funding Costs and Loss of Earnings 22 2.9. Payments 22 2.10. Regulatory Changes in Capital Requirements 22 2.11. Subordination 23 SECTION 3 - REPRESENTATIONS AND WARRANTIES 24 3.1. Organization and Good Standing 24 3.2. Power and Authority; Validity of Agreement 24 3.3. No Violation of Laws or Agreements 25 3.4. Material Contracts 25 3.5. Compliance 25 3.6. Litigation 26 3.7. Title to Assets 26 3.8. Accuracy of Information; Full Disclosure 26 3.9. Taxes and Assessments 27 3.10. Indebtedness 27 3.11. Management Agreements 27 3.12. Investments; Ownership 27 3.13. ERISA 28 3.14. Fees and Commissions 28 3.15. No Extension of Credit for Securities 29 3.16. Perfection of Security Interest 29 3.17. Hazardous Wastes, Substances and Petroleum Products 29 ii 3.18. Solvency 29 3.19. Employee Controversies 30 3.20. Year 2000 Compliance 30 3.21. Indenture 31 SECTION 4 - CONDITIONS 31 4.1. Effectiveness of Second Amended and Restated Credit Agreement 31 4.2. Sales Force Acquisition 34 SECTION 5 - AFFIRMATIVE COVENANTS 35 5.1. Existence and Good Standing 35 5.2. Interim Financial Statements 35 5.3. Annual Financial Statements 35 5.4. Compliance Certificate 36 5.5. Additional Reports 36 5.6. Public Information. 37 5.7. Books and Records 37 5.8. Insurance 37 5.9. Litigation; Event of Default 37 5.10. Taxes 37 5.11. Costs and Expenses 37 5.12. Compliance; Notification 38 5.13. ERISA 38 5.14. Maximum Debt to EBITDA Ratio 39 5.15. Capital Expenditure Limits 39 5.16. Minimum EBITDA 40 5.17. Minimum Interest Coverage Ratio 40 5.18. Minimum Fixed Charges Coverage Ratio 40 5.19. Management Changes 41 5.20. Transactions Among Affiliates 41 5.21. Additional Collateral Security Documents. 41 5.22. Collateral Audit 41 5.23. Notice upon Change in Control 41 5.24. Management Meetings 42 5.25. Maintenance of Property 42 5.26. Other Agreements 42 5.27. Other Information 43 SECTION 6 - NEGATIVE COVENANTS 43 iii 6.1. Indebtedness 43 6.2. Guarantees 43 6.3. Loans 44 6.4. Liens and Encumbrances 44 6.5. Additional Negative Pledge 45 6.6. Restricted Payments 45 6.7. Transfer of Assets; Liquidation 46 6.8. Acquisitions and Investments 46 6.9. Payments to Affiliates 46 6.10. Certain Changes 47 6.11. Restrictive Agreements 47 6.12. Use of Proceeds 48 SECTION 7 - DEFAULT 48 7.1. Events of Default 48 7.2. Remedies52 7.3. Right of Set-off. 52 7.4. Turnover of Property Held by Lender's Affiliates. 52 7.5. Remedies Cumulative; No Waiver. 53 SECTION 8 - AGENCY PROVISIONS 53 8.1. Application of Payments 53 8.2. Set-Off 53 8.3. Modifications and Waivers 53 8.4. Obligations Several 54 8.5. Lenders'Representations 54 8.6. Investigation 54 8.7. Powers of Agent 54 8.8. General Duties of Agent, Immunity and Indemnity 54 8.9. No Responsibility for Representations or Validity, etc 54 8.10. Action on Instruction of Lenders; Right to Indemnity 55 8.11. Employment of Agents 55 8.12. Reliance on Documents 55 8.13. Agent's Rights as a Lender 55 8.14. Expenses 55 8.15. Resignation of Agent 55 8.16. Successor Agent 56 8.17. Collateral Security and Intercreditor Agreements 56 iv 8.18. Enforcement by Agent 57 8.19. Acknowledgment of Intercreditor Agreement 57 v SECTION 9 - MISCELLANEOUS 57 9.1. Indemnification and Release Provisions 57 9.2. Participations and Assignments 57 9.3. Binding and Governing Law 58 9.4. Survival 58 9.5. No Waiver; Delay 58 9.6. Modification 59 9.7. Headings 59 9.8. Notices 59 9.9. Payment on Non-Business Days 60 9.10. Time of Day 60 9.11. Severability 60 9.12. Counterparts 60 9.13. Confidentiality 60 9.14. Consent to Jurisdiction and Service of Process 61 9.15. WAIVER OF JURY TRIAL 61 9.16. ACKNOWLEDGMENTS 61