Exhibit 10
$100,000,000
CREDIT AGREEMENT
dated as of
September 30, 1999
among
CNF Transportation Inc.
The Banks Party Hereto
and
▇▇▇▇▇▇ Guaranty Trust Company of New York,
as Administrative Agent
___________________________________________
▇.▇. ▇▇▇▇▇▇ Securities Inc.
Lead Arranger
TABLE OF CONTENTS
PAGE
ARTICLE 1
DEFINITIONS
SECTION 1.01. Definitions ............................................1
SECTION 1.02. Accounting Terms and Determinations ...................15
SECTION 1.03. Types of Borrowings ...................................15
ARTICLE 2
THE CREDITS
SECTION 2.01. Commitments to Lend ...................................16
SECTION 2.02. Notice of Committed Borrowing .........................16
SECTION 2.03. Money Market Borrowings ...............................17
SECTION 2.04. Notice to Banks; Funding of Loans .....................21
SECTION 2.05. Notes .................................................21
SECTION 2.06. Maturity of Loans .....................................22
SECTION 2.07. Interest Rates ........................................22
SECTION 2.08. Facility Fee ..........................................26
SECTION 2.09. Optional Termination or Reduction of Commitments ......26
SECTION 2.10. Method of Electing Interest Rates .....................27
SECTION 2.11. Mandatory Termination of Commitments ..................28
SECTION 2.12. Optional Prepayments ..................................28
SECTION 2.13. General Provisions as to Payments .....................29
SECTION 2.14. Funding Losses ........................................30
SECTION 2.15. Computation of Interest and Fees ......................30
SECTION 2.16. Maximum Interest Rate .................................30
ARTICLE 3
CONDITIONS
SECTION 3.01. Conditions to Effectiveness ...........................31
SECTION 3.02. Borrowings ............................................32.
ii
ARTICLE 4
REPRESENTATIONS AND WARRANTIES
SECTION 4.01. Corporate Existence and Power .........................33
SECTION 4.02. Corporate and Governmental Authorization; No
Contravention .........................................33
SECTION 4.03. Binding Effect ........................................33
SECTION 4.04. Financial Information .................................33
SECTION 4.05. Litigation ............................................34
SECTION 4.06. Compliance with ERISA .................................34
SECTION 4.07. Environmental Matters .................................35
SECTION 4.08. Taxes .................................................35
SECTION 4.09. Subsidiaries ..........................................36
SECTION 4.10. Not an Investment Company .............................36
SECTION 4.11. Full Disclosure .......................................36
SECTION 4.12. Year 2000 Compliance ..................................36
ARTICLE 5
COVENANTS
SECTION 5.01. Information ...........................................37
SECTION 5.02. Payment of Obligations ................................39
SECTION 5.03. Maintenance of Property; Insurance ....................39
SECTION 5.04. Conduct of Business and Maintenance of Existence ......40
SECTION 5.05. Compliance with Laws ..................................40
SECTION 5.06. Inspection of Property, Books and Records .............40
SECTION 5.07. Debt ..................................................41
SECTION 5.08. Minimum Consolidated Net Worth ........................42
SECTION 5.09. Negative Pledge .......................................42
SECTION 5.10. Consolidations, Mergers and Sales of Assets ...........44
SECTION 5.11. Use of Proceeds .......................................44
SECTION 5.12. Fixed Charge Coverage .................................44
SECTION 5.13. Transactions with Third Party Affiliates ..............45
ARTICLE 6
DEFAULTS
SECTION 6.01. Events of Default .....................................45
SECTION 6.02. Notice of Default .....................................48
PAGE
iii
ARTICLE 7
THE AGENT
SECTION 7.01. Appointment and Authorization .........................49
SECTION 7.02. Agent and Affiliates ..................................49
SECTION 7.03. Action by Agent .......................................49
SECTION 7.04. Consultation with Experts .............................49
SECTION 7.05. Liability of Agent ....................................49
SECTION 7.06. Indemnification .......................................50
SECTION 7.07. Credit Decision .......................................50
SECTION 7.08. Successor Agent .......................................50
SECTION 7.09. Agent's Fee ...........................................51
ARTICLE 8
CHANGE IN CIRCUMSTANCES
SECTION 8.01. Basis for Determining Interest Rate
Inadequate or Unfair ..................................51
SECTION 8.02. Illegality ............................................52
SECTION 8.03. Increased Cost and Reduced Return .....................52
SECTION 8.04. Taxes .................................................54
SECTION 8.05. Base Rate Loans Substituted for
Affected Fixed Rate Loans .............................56
SECTION 8.06. Substitution of Banks .................................56
ARTICLE 9
MISCELLANEOUS
SECTION 9.01. Notices ...............................................57
SECTION 9.02. No Waivers ............................................58
SECTION 9.03. Expenses; Indemnification .............................58
SECTION 9.04. Sharing of Set-offs ...................................59
SECTION 9.05. Amendments and Waivers ................................59
SECTION 9.06. Successors and Assigns ................................60
SECTION 9.07. Designated Entities ...................................61
SECTION 9.08. Collateral ............................................63
SECTION 9.09. Governing Law; Submission to Jurisdiction .............63
SECTION 9.10. Counterparts; Integration .............................63
SECTION 9.11. Waiver of Jury Trial ..................................63
SECTION 9.12. Confidentiality .......................................63.
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CREDIT AGREEMENT
AGREEMENT dated as of September 30, 1999 among CNF
TRANSPORTATION INC., the BANKS party hereto and ▇▇▇▇▇▇
GUARANTY TRUST COMPANY OF NEW YORK, as Administrative Agent.
The parties hereto agree as follows:
ARTICLE 1
DEFINITIONS
SECTION 1.01. Definitions. The following terms, as used herein, have the
following meanings:
"Absolute Rate Auction" means a solicitation of Money Market Quotes
setting forth Money Market Absolute Rates pursuant to Section 2.03.
"Adjusted CD Rate" has the meaning set forth in Section 2.07(b).
"Adjusted London Interbank Offered Rate" has the meaning set forth in
Section 2.07(c).
"Administrative Questionnaire" means, with respect to each Bank, an
administrative questionnaire in the form prepared by the Agent and submitted to
the Agent (with a copy to the Borrower) duly completed by such Bank.
"Agent" means ▇▇▇▇▇▇ Guaranty Trust Company of New York in its
capacity as administrative agent for the Banks under the Financing Documents,
and its successors in such capacity.
"Applicable Lending Office" means, with respect to any Bank, (i) in the
case of its Domestic Loans, its Domestic Lending Office, (ii) in the case of
its Euro-Dollar Loans, its Euro-Dollar Lending Office and (iii) in the case of
its Money Market Loans, its Money Market Lending Office.
"Assessment Rate" has the meaning set forth in Section 2.07(b).
"Assignee" has the meaning set forth in Section 9.06(c)..
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"Bank" means each bank listed on the signature pages hereof, each
Assignee which becomes a Bank pursuant to Section 9.06(c), and their respective
successors.
"Base Rate" means, for any day, a rate per annum equal to the higher of (i)
the Prime Rate for such day and (ii) the sum of 1/2 of 1% plus the Federal Funds
Rate for such day.
"Base Rate Loan" means a Committed Loan which bears interest at the
Base Rate pursuant to the applicable Notice of Committed Borrowing or Notice of
Interest Rate Election or pursuant to Section 2.10(c) or Article 8.
"Benefit Arrangement" means at any time an employee benefit plan within
the meaning of Section 3(3) of ERISA which is not a Plan or a Multiemployer
Plan and which is maintained or otherwise contributed to by any member of the
ERISA Group.
"Borrower" means CNF Transportation Inc., a Delaware corporation, and
its successors.
"Borrowing" has the meaning set forth in Section 1.03.
"CD Base Rate" has the meaning set forth in Section 2.07(b).
"CD Loan" means a Committed Loan which bears interest at a CD Rate
pursuant to the applicable Notice of Committed Borrowing or Notice of Interest
Rate Election.
"CD Margin" means a rate per annum determined in accordance with the
Pricing Schedule.
"CD Rate" means a rate of interest determined pursuant to Section 2.07(b)
on the basis of an Adjusted CD Rate.
"CD Reference Banks" means Bank of America, N.A., Bank One N.A.
and ▇▇▇▇▇▇ Guaranty Trust Company of New York.
"Commitment" means, as the context requires, either (a) the commitment
of a Bank to extend credit to the Borrower hereunder or (b) the amount of such
commitment, which is (i) with respect to any Bank listed on the Commitment
Schedule, the amount set forth opposite the name of such Bank on the
Commitment Schedule or (ii) with respect to any Assignee, the amount of the.
3
transferor Bank's Commitment assigned to such Assignee pursuant to Section
9.06(c), in each case as such amount may be reduced from time to time pursuant
to Section 2.09 or changed as a result of an assignment pursuant to Section
9.06(c).
"Commitment Schedule" means the Commitment Schedule attached
hereto.
"Committed Loan" means a loan made by a Bank pursuant to Section
2.01; provided that, if any such loan or loans (or portions thereof) are
combined
or subdivided pursuant to a Notice of Interest Rate Election, the term
"Committed
Loan" shall refer to the combined principal amount resulting from such
combination or to each of the separate principal amounts resulting from such
subdivision, as the case may be.
"Consolidated Debt" means at any date the Debt of the Borrower and its
Consolidated Subsidiaries, determined on a consolidated basis as of such date.
"Consolidated EBITDAR" means, for any period, the sum of (i) the
consolidated income before income taxes of the Borrower and its Consolidated
Subsidiaries for such period plus (ii) to the extent deducted in determining
such
consolidated income before income taxes, the sum of (A) Consolidated Interest
Expense, (B) depreciation and amortization and (C) Consolidated Rental Expense.
"Consolidated Fixed Charges" means, for any period, the sum of
Consolidated Interest Expense and Consolidated Rental Expense for such period.
"Consolidated Interest Expense" means, for any period, the interest
expense of the Borrower and its Consolidated Subsidiaries, determined on a
consolidated basis for such period.
"Consolidated Net Worth" means at any date the consolidated
shareholders' equity of the Borrower and its Consolidated Subsidiaries
determined
as of such date.
"Consolidated Rental Expense" means, for any period, the rental expense
for operating leases of the Borrower and its Consolidated Subsidiaries
determined
on a consolidated basis for such period.
"Consolidated Subsidiary" means at any date any Subsidiary or other
entity the accounts of which would be consolidated with those of the Borrower
in.
4
its consolidated financial statements if such statements were prepared as of
such
date.
"Continuing Director" means (i) any individual who is a director of the
Borrower on September 30, 1999 and (ii) any individual who becomes a director
of the Borrower after September 30, 1999 and is elected or nominated for
election
as a director of the Borrower by a majority of the individuals who were
Continuing Directors immediately before such election or nomination.
"Debt" of any Person means at any date, without duplication,
(i) all obligations of such Person for borrowed money,
(ii) all obligations of such Person evidenced by bonds, debentures,
notes or other similar instruments,
(iii) all obligations of such Person to pay the deferred purchase
price of property or services, except trade accounts payable arising in the
ordinary course of business,
(iv) all obligations of such Person as lessee which are capitalized in
accordance with generally accepted accounting principles,
(v) all obligations of such Person to reimburse banks for drawings
under letters of credit or payments with respect to bankers' acceptances,
which obligations remain unpaid for more than three Domestic Business
Days after they become due, or, if later, after such Person is notified of the
due date thereof,
(vi) all obligations of the types referred to in clauses (i) to (v),
inclusive, of this definition which are secured by a Lien on any asset of
such Person, whether or not such obligations are otherwise obligations of
such Person; provided that the amount of Debt attributed, for purposes of
this Agreement, to any such obligation that is not otherwise an obligation
of such Person shall be limited to the lesser of (x) the net book value of the
assets of such Person by which such obligation is secured or (y) the
amount of such obligation secured thereby (excluding accrued interest for
the current period); and
(vii) all Guarantees by such Person of obligations of others of the
types referred to in clauses (i) to (v), inclusive, of this definition (which
Guarantees shall be deemed to constitute Debt in an amount equal to the.
5
lesser of (x) the maximum amount of such Guarantee and (y) the amount
of such obligation of others Guaranteed thereby).
"Default" means any condition or event which constitutes an Event of
Default or which with the giving of notice or lapse of time or both would,
unless
cured or waived, become an Event of Default.
"Designated Entity" means, with respect to any Designating Bank, an
Eligible Designee designated by it pursuant to Section 9.07(a) as a Designated
Entity for purposes of this Agreement.
"Designating Bank" means, with respect to each Designated Entity, the
Bank that designated such Designated Entity pursuant to Section 9.07(a).
"Domestic Business Day" means any day except a Saturday, Sunday or
other day on which commercial banks in New York City are authorized by law to
close.
"Domestic Lending Office" means, as to each Bank, its office located at its
address set forth in its Administrative Questionnaire (or identified in its
Administrative Questionnaire as its Domestic Lending Office) or such other
office
as such Bank may hereafter designate as its Domestic Lending Office by notice
to the Borrower and the Agent; provided that any Bank may so designate separate
Domestic Lending Offices for its Base Rate Loans, on the one hand, and its CD
Loans, on the other hand, in which case all references herein to the Domestic
Lending Office of such Bank shall be deemed to refer to either or both of such
offices, as the context may require.
"Domestic Loans" means CD Loans or Base Rate Loans or both.
"Domestic Reserve Percentage" has the meaning set forth in Section
2.07(b).
"Effective Date" means the date this Agreement becomes effective in
accordance with Section 3.01.
"Eligible Designee" means a special purpose corporation that (i) is
organized under the laws of the United States or any state thereof, (ii) is
engaged
in making, purchasing or otherwise investing in commercial loans in the
ordinary course of its business and (iii) issues (or the parent of which
issues)commercial
paper rated at least A-1 or the equivalent thereof by S&P or at least P-1 or
the equivalent thereof by ▇▇▇▇▇'▇..
6
"Environmental Laws" means any and all federal, state, local and foreign
statutes, laws, judicial decisions, regulations, ordinances, rules, judgments,
orders,
decrees, plans, injunctions, permits, concessions, grants, franchises,
licenses, agreements and other governmental restrictions relating to the
environment, the effect of the environment on human health or to emissions,
discharges or releases
of pollutants, contaminants, Hazardous Substances or wastes into the
environment including, without limitation, ambient air, surface water, ground
water, or land, or
otherwise relating to the manufacture, processing, distribution, use,
treatment, storage, disposal, transport or handling of pollutants,
contaminants, Hazardous Substances or wastes or the clean-up or other
remediation thereof.
"ERISA" means the Employee Retirement Income Security Act of 1974,
as amended, or any successor statute.
"ERISA Group" means the Borrower, any Subsidiary and all members of a
controlled group of corporations and all trades or businesses (whether or not
incorporated) under common control which, together with the Borrower or any
Subsidiary, are treated as a single employer under Section 414 of the Internal
Revenue Code.
"Euro-Dollar Business Day" means any Domestic Business Day on which
commercial banks are open for international business (including dealings in
dollar
deposits) in London.
"Euro-Dollar Lending Office" means, as to each Bank, its office, branch or
affiliate located at its address set forth in its Administrative Questionnaire
(or
identified in its Administrative Questionnaire as its Euro-Dollar Lending
Office)
or such other office, branch or affiliate of such Bank as it may hereafter
designate
as its Euro-Dollar Lending Office by notice to the Borrower and the Agent.
"Euro-Dollar Loan" means a Committed Loan which bears interest at a
Euro-Dollar Rate pursuant to the applicable Notice of Committed Borrowing or
Notice of Interest Rate Election.
"Euro-Dollar Margin" means a rate per annum determined in accordance
with the Pricing Schedule.
"Euro-Dollar Rate" means a rate of interest determined pursuant to
Section 2.07(c) on the basis of a London Interbank Offered Rate..
7
"Euro-Dollar Reference Banks" means the principal London offices of
Bank One, N.A., Credit Suisse First Boston and ▇▇▇▇▇▇ Guaranty Trust Company
of New York.
"Euro-Dollar Reserve Percentage" has the meaning set forth in Section
2.07(c).
"Event of Default" has the meaning set forth in Section 6.01.
"Federal Funds Rate" means, for any day, the rate per annum (rounded
upward, if necessary, to the nearest 1/100 of 1%) equal to the weighted average
of
the rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers on such day, as published by
the Federal Reserve Bank of New York on the Domestic Business Day next
succeeding such day, provided that (i) if such day is not a Domestic Business
Day,
the Federal Funds Rate for such day shall be such rate on such transactions on
the
next preceding Domestic Business Day as so published on the next succeeding
Domestic Business Day, and (ii) if no such rate is so published on such next
succeeding Domestic Business Day, the Federal Funds Rate for such day shall be
the average rate quoted to ▇▇▇▇▇▇ Guaranty Trust Company of New York on such
day on such transactions as determined by the Agent.
"Financing Documents" means this Agreement, the Subsidiary Guaranty
Agreement and the Notes.
"Fixed Rate Loans" means CD Loans or Euro-Dollar Loans or Money
Market Loans (excluding Money Market LIBOR Loans bearing interest at the
Base Rate pursuant to Section 8.01(a)) or any combination of the foregoing.
"Group of Loans" means at any time a group of Loans consisting of (i) all
Committed Loans which are Base Rate Loans at such time or (ii) all Committed
Loans which are Fixed Rate Loans of the same type having the same Interest
Period at such time; provided that, if a Committed Loan of any particular Bank
is
converted to or made as a Base Rate Loan pursuant to Section 8.02 or 8.04, such
Loan shall be included in the same Group or Groups of Loans from time to time
as it would have been in if it had not been so converted or made.
"Guarantee" by any Person means any obligation, contingent or otherwise,
of such Person directly or indirectly guaranteeing any Debt of any other Person
and, without limiting the generality of the foregoing, any obligation, direct
or indirect, contingent or otherwise, of such Person (i) to purchase or pay (or
advance or supply funds for the purchase or payment of) such Debt (whether.
8
arising by virtue of partnership arrangements, by agreement to keep-well, to
purchase assets, goods, securities or services, to take-or-pay, or to maintain
financial statement conditions or otherwise) or (ii) entered into for the
purpose of
assuring in any other manner the obligee of such Debt of the payment thereof or
to
protect such obligee against loss in respect thereof (in whole or in part),
provided
that the term Guarantee shall not include endorsements for collection or
deposit in
the ordinary course of business. The term "Guarantee" used as a verb has a
corresponding meaning.
"Hazardous Substances" means any toxic, radioactive, caustic or otherwise
hazardous substance, including petroleum, its derivatives, by-products and
other
hydrocarbons, or any substance having any constituent elements displaying any
of the foregoing characteristics.
"Indemnitee" has the meaning set forth in Section 9.03(b).
"Insignificant Subsidiaries" means Subsidiaries which, if aggregated and
considered as a single Subsidiary, would not have total assets, shareholders'
equity or revenues in excess of 10% of the consolidated total assets,
consolidated
shareholders' equity or consolidated revenues, respectively, of the Borrower
and its Consolidated Subsidiaries, all calculated at the date of the most
recent financial
statements delivered to the Banks pursuant to Section 5.01 or, in the case of
revenues, for the twelve calendar months then ended.
"Interest Period" means: (a) with respect to each Euro-Dollar Loan, the
period commencing on the date of borrowing specified in the applicable Notice
of Borrowing or on the date specified in the applicable Notice of Interest Rate
Election and ending two weeks or one, two, three or six months thereafter, as
the
Borrower may elect in the applicable notice; provided that:
(i) any Interest Period which would otherwise end on a day
which is not a Euro-Dollar Business Day shall be extended to the next
succeeding Euro-Dollar Business Day unless such Euro-Dollar Business
Day falls in another calendar month, in which case such Interest Period
shall end on the next preceding Euro-Dollar Business Day;
(ii) any Interest Period which begins on the last Euro-Dollar
Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the calendar month at the end of such
Interest Period) shall, subject to clause (iii) below, end on the last
Euro-Dollar Business Day of a calendar month; and.
9
(iii) any Interest Period which would otherwise end after the
Termination Date shall end on the Termination Date.
(b) with respect to each CD Loan, the period commencing on the date
of borrowing specified in the applicable Notice of Borrowing or on the date
specified in the applicable Notice of Interest Rate Election and ending 30, 60,
90
or 180 days thereafter, as the Borrower may elect in the applicable notice;
provided that:
(i) any Interest Period which would otherwise end on a day
which is not a Euro-Dollar Business Day shall be extended to the next
succeeding Euro-Dollar Business Day; and
(ii) any Interest Period which would otherwise end after the
Termination Date shall end on the Termination Date.
(c) with respect to each Money Market LIBOR Loan, the period
commencing on the date of borrowing specified in the applicable Notice of
Borrowing and ending one week, two weeks, three weeks or any whole number of
months thereafter, as the Borrower may elect in accordance with Section 2.03;
provided that:
(i) any Interest Period which would otherwise end on a day
which is not a Euro-Dollar Business Day shall be extended to the next
succeeding Euro-Dollar Business Day unless such Euro-Dollar Business
Day falls in another calendar month, in which case such Interest Period
shall end on the next preceding Euro-Dollar Business Day;
(ii) any Interest Period which begins on the last Euro-Dollar
Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the calendar month at the end of such
Interest Period) shall, subject to clause (iii) below, end on the last
Euro-Dollar Business Day of a calendar month; and
(iii) any Interest Period which would otherwise end after the
Termination Date shall end on the Termination Date; and
(d) with respect to each Money Market Absolute Rate Loan, the period
commencing on the date of borrowing specified in the applicable Notice of
Borrowing and ending such number of days thereafter (but not less than seven
days) as the Borrower may elect in accordance with Section 2.03; provided that:
10
(i) any Interest Period which would otherwise end on a day
which is not a Euro-Dollar Business Day shall be extended to the next
succeeding Euro-Dollar Business Day; and
(ii) any Interest Period which would otherwise end after the
Termination Date shall end on the Termination Date.
"Internal Revenue Code" means the Internal Revenue Code of 1986, as
amended, or any successor statute.
"Investment" means any investment in any Person, whether by means of
share purchase, capital contribution, loan or otherwise.
"LIBOR Auction" means a solicitation of Money Market Quotes setting
forth Money Market Margins based on the London Interbank Offered Rate
pursuant to Section 2.03.
"Lien" means (i) with respect to any asset (including without limitation
any account receivable), any mortgage, lien, pledge, charge, security interest
or
encumbrance of any kind, or any other type of preferential arrangement that has
the practical effect of creating a security interest, in respect of such asset
and (ii)
with respect to any account receivable, any sale of such account receivable.
For the purposes of this Agreement, the Borrower or any Subsidiary shall be
deemed
(x) to own subject to a Lien any asset which it has acquired or holds subject
to the
interest of a vendor or lessor under any conditional sale agreement, capital
lease or
other title retention agreement relating to such asset and (y) not to own
subject to
a Lien any asset which it leases under a lease that is classified as an
operating
lease under generally accepted accounting principles.
"Loan" means a Domestic Loan, a Euro-Dollar Loan or a Money Market
Loan and "Loans" means Domestic Loans, Euro-Dollar Loans or Money Market
Loans or any combination of the foregoing.
"London Interbank Offered Rate" has the meaning set forth in Section
2.07(c).
"Material Commitments" means commitments to extend credit which, if
extended, would constitute Debt of the Borrower and/or one or more of its
Subsidiaries in an aggregate amount exceeding $35,000,000. For purposes of this
definition, any commitment for less than $1,000,000 shall be excluded, but
commitments arising from one or more related or unrelated transactions shall be
aggregated if each such commitment is for $1,000,000 or more..
11
"Material Debt" means Debt (other than the Notes) of the Borrower and/or
one or more of its Subsidiaries in an aggregate outstanding principal amount
exceeding $35,000,000. For purposes of this definition, if the Debt arising
from any single transaction has an outstanding principal amount less than
$1,000,000, it
shall be excluded, but Debts arising from one or more related or unrelated
transactions shall be aggregated if the Debt arising from each such transaction
has
an outstanding principal amount of $1,000,000 or more.
"Material Plan" means at any time a Plan or Plans having aggregate
Unfunded Liabilities in excess of $35,000,000.
"Money Market Absolute Rate" has the meaning set forth in Section
2.03(d).
"Money Market Absolute Rate Loan" means a loan to be made by a Bank
pursuant to an Absolute Rate Auction.
"Money Market Lending Office" means, as to each Bank, its Domestic
Lending Office or such other office, branch or affiliate of such Bank as it may
hereafter designate as its Money Market Lending Office by notice to the
Borrower and the Agent; provided that any Bank may from time to time by notice
to the
Borrower and the Agent designate separate Money Market Lending Offices for its
Money Market LIBOR Loans, on the one hand, and its Money Market Absolute
Rate Loans, on the other hand, in which case all references herein to the Money
Market Lending Office of such Bank shall be deemed to refer to either or both
of
such offices, as the context may require.
"Money Market LIBOR Loan" means a loan to be made by a Bank
pursuant to a LIBOR Auction (including such a loan bearing interest at the Base
Rate pursuant to Section 8.01(a)).
"Money Market Loan" means a Money Market LIBOR Loan or a Money
Market Absolute Rate Loan.
"Money Market Margin" has the meaning set forth in Section 2.03(d).
"Money Market Quote" means an offer by a Bank to make a Money
Market Loan in accordance with Section 2.03.
"Multiemployer Plan" means at any time an employee pension benefit plan
within the meaning of Section 4001(a)(3) of ERISA to which any member of the
ERISA Group is then making or accruing an obligation to make contributions or.
12
has within the preceding five plan years made contributions, including for
these
purposes any Person which ceased to be a member of the ERISA Group during
such five year period.
"Notes" means promissory notes of the Borrower, substantially in the form
of Exhibit A hereto, evidencing the obligation of the Borrower to repay the
Loans,
and "Note" means any one of such promissory notes issued hereunder.
"Notice of Borrowing" means a Notice of Committed Borrowing (as
defined in Section 2.02) or a Notice of Money Market Borrowing (as defined in
Section 2.03(f)).
"Notice of Interest Rate Election" has the meaning set forth in Section
2.10.
"Obligor" means each of the Borrower and the Subsidiary Guarantors, and
"Obligors" means all of the foregoing.
"Parent" means, with respect to any Bank, any Person controlling such
Bank.
"Participant" has the meaning set forth in Section 9.06(b).
"PBGC" means the Pension Benefit Guaranty Corporation or any entity
succeeding to any or all of its functions under ERISA.
"Percentage" means, with respect to each Bank, the percentage that such
Bank's Commitment constitutes of the aggregate amount of the Commitments.
"Person" means an individual, a corporation, a limited liability company, a
partnership, an association, a trust or any other entity or organization,
including a
government or political subdivision or an agency or instrumentality thereof.
"Plan" means at any time an employee pension benefit plan (other than a
Multiemployer Plan) which is covered by Title IV of ERISA or subject to the
minimum funding standards under Section 412 of the Internal Revenue Code and
either (i) is maintained, or contributed to, by any member of the ERISA Group
for
employees of any member of the ERISA Group or (ii) has at any time within the
preceding five years been maintained, or contributed to, by any Person which
was at such time a member of the ERISA Group for employees of any Person which
was at such time a member of the ERISA Group..
13
"Pricing Schedule" means the Pricing Schedule attached hereto.
"Prime Rate" means the rate of interest publicly announced by ▇▇▇▇▇▇
Guaranty Trust Company of New York in New York City from time to time as its
Prime Rate.
"Quarterly Dates" means each March 31, June 30, September 30 and
December 31.
"Reference Banks" means the CD Reference Banks or the Euro-Dollar
Reference Banks, as the context may require, and "Reference Bank" means any
one of such Reference Banks.
"Regulation U" means Regulation U of the Board of Governors of the
Federal Reserve System, as in effect from time to time.
"Required Banks" means at any time Banks having at least 60% of the
aggregate amount of the Commitments or, if the Commitments shall have been
terminated, having at least 60% of the aggregate outstanding principal amount
of the Loans.
"Subsidiary" means any corporation or other entity of which securities or
other ownership interests having ordinary voting power to elect a majority of
the
board of directors or other persons performing similar functions are at the
time directly or indirectly owned by the Borrower.
"Subsidiary Guarantors" means Con-Way Transportation Services, Inc., a
Delaware corporation, Con-Way Truckload Services, Inc., a Delaware
corporation, ▇▇▇▇▇ Air Freight Corporation, a Delaware corporation, ▇▇▇▇▇
Worldwide Airlines, Inc., a Nevada corporation, Menlo Logistics, Inc., a
California corporation, and each other Subsidiary which becomes a party to the
Subsidiary Guaranty Agreement pursuant to Article 3 thereof, and their
respective
successors.
"Subsidiary Guaranty Agreement" means a Subsidiary Guaranty
Agreement among the Borrower, the Subsidiary Guarantors and the Agent, as
executed and delivered pursuant to Section 3.01(c) and as the same may be
amended from time to time in accordance with the terms thereof.
"Taxes" has the meaning set forth in Section 8.04(a)..
14
"Termination Date" means September 28, 2000, or, if such day is not a
Euro-Dollar Business Day, the next preceding Euro-Dollar Business Day.
"Third Party Affiliate" means (i) any Person or any group of Persons
(within the meaning of Section 13 or 14 of the Securities Exchange Act of 1934,
as amended) that directly, or indirectly through one or more intermediaries,
controls the Borrower (a "Controlling Person") or (ii) any Person (other than
the
Borrower or a Subsidiary) which is controlled by or is under common control
with a Controlling Person. As used herein, the term "control" means possession,
directly or indirectly, of the power to direct or cause the direction of the
management or policies of a Person, whether through the ownership of voting
securities, by contract or otherwise.
"Unfunded Liabilities" means, with respect to any Plan at any time, the
amount (if any) by which (i) the value of all benefit liabilities under such
Plan,
determined on a plan termination basis using the assumptions prescribed by the
PBGC for purposes of Section 4044 of ERISA, exceeds (ii) the fair market value
of all Plan assets allocable to such liabilities under Title IV of ERISA
(excluding
any accrued but unpaid contributions), all determined as of the then most
recent valuation date for such Plan, but only to the extent that such excess
represents a
potential liability of a member of the ERISA Group to the PBGC or any other
Person under Title IV of ERISA.
"United States" means the United States of America, including the States
and the District of Columbia, but excluding its territories and possessions.
"Wholly-Owned Subsidiary" means any Subsidiary all of the shares of
capital stock or other ownership interests of which (except directors'
qualifying
shares) are at the time directly or indirectly owned by the Borrower.
SECTION 1.02. Accounting Terms and Determinations. Unless otherwise
specified herein, all accounting terms used herein shall be interpreted, all
accounting determinations hereunder shall be made, and all financial statements
required to be delivered hereunder shall be prepared in accordance with
generally
accepted accounting principles as in effect from time to time, applied on a
basis
consistent (except for changes concurred in by the Borrower's independent
public
accountants) with the most recent audited consolidated financial statements of
the
Borrower and its Consolidated Subsidiaries delivered to the Banks; provided
that,
if the Borrower notifies the Agent that the Borrower wishes to amend any
covenant in Article 5 to eliminate the effect of any change in generally
accepted.
15
accounting principles on the operation of such covenant (or if the Agent
notifies
the Borrower that the Required Banks wish to amend Article 5 for such purpose),
then the Borrower's compliance with such covenant shall be determined on the
basis of generally accepted accounting principles in effect immediately before
the
relevant change in generally accepted accounting principles became effective,
until either such notice is withdrawn or such covenant is amended in a manner
satisfactory to the Borrower and the Required Banks.
SECTION 1.03. Types of Borrowings. The term "Borrowing" denotes the
aggregation of Loans of one or more Banks to be made to the Borrower pursuant
to Section 2.01 or 2.03 on the same date, all of which Loans are of the same
type
(subject to Article 8) and, except in the case of Base Rate Loans, have the
same
Interest Period or initial Interest Period. Borrowings are classified for
purposes of
this Agreement either by reference to the pricing of Loans comprising such
Borrowing (e.g., a "Euro-Dollar Borrowing" is a Borrowing comprised of
Euro-Dollar Loans) or by reference to the provisions of Article 2 under which
participation therein is determined (i.e., a "Committed Borrowing" is a
Borrowing
under Section 2.01 in which all Banks participate in proportion to their
Commitments, while a "Money Market Borrowing" is a Borrowing under Section
2.03 in which the Bank participants are determined on the basis of their bids
in accordance therewith).
ARTICLE 2
THE CREDITS
SECTION 2.01. Commitments to Lend. Each Bank severally agrees, on the
terms and conditions set forth in this Agreement, to make loans to the Borrower
pursuant to this Section from time to time prior to the Termination Date;
provided
that, immediately after each such Loan is made, the aggregate outstanding
principal amount of all Committed Loans made by such Bank shall not exceed its
Commitment. Each Borrowing pursuant to this Section shall be in an aggregate
principal amount of $10,000,000 or any larger integral multiple of $1,000,000
(except that any such Borrowing may be in the aggregate amount available in
accordance with Section 3.02(b)) and shall be made from the several Banks
ratably in accordance with their respective Percentages. Within the foregoing
limits, the Borrower may borrow under this Section, prepay Loans to the extent
permitted by Section 2.12 and reborrow at any time prior to the Termination
Date under this Section..
16
SECTION 2.02. Notice of Committed Borrowing. The Borrower shall give
the Agent notice (a "Notice of Committed Borrowing") not later than (x) 12:00
Noon (New York City time) on the date of each Base Rate Borrowing, (y) 1:00
P.M. (New York City time) on the second Domestic Business Day before each
CD Borrowing and (z) 1:00 P.M. (New York City time) on the third Euro-Dollar
Business Day before each Euro-Dollar Borrowing, specifying:
(a) the date of such Borrowing, which shall be a Domestic
Business Day in the case of a Domestic Borrowing or a Euro-Dollar
Business Day in the case of a Euro-Dollar Borrowing,
(b) the aggregate amount of such Borrowing,
(c) whether the Loans comprising such Borrowing are to bear
interest initially at the Base Rate, a CD Rate or a Euro-Dollar Rate, and
(d) in the case of a Fixed Rate Borrowing, the duration of the
Interest Period applicable thereto, subject to the provisions of the
definition of Interest Period;
provided that the Borrower may not deliver a Notice of Committed Borrowing if
after giving effect to the requested Borrowing there would be more than ten
Committed Fixed Rate Borrowings outstanding.
SECTION 2.03. Money Market Borrowings.
(a) The Money Market Option. In addition to Committed Borrowings
pursuant to Section 2.01, the Borrower may, as set forth in this Section,
request
the Banks to make offers to make Money Market Loans to the Borrower on any
day prior to the Termination Date. The Banks may, but shall have no obligation
to, make such offers and the Borrower may, but shall have no obligation to,
accept
any such offers in the manner set forth in this Section.
(b) Money Market Quote Request. When the Borrower wishes to
request offers to make Money Market Loans under this Section, it shall transmit
to
the Agent by telex or facsimile transmission a Money Market Quote Request
substantially in the form of Exhibit B hereto so as to be received no later
than (x)
1:00 P.M. (New York City time) on the fifth Euro-Dollar Business Day prior to
the date of Borrowing proposed therein, in the case of a LIBOR Auction or (y)
11:30 A.M. (New York City time) on the Domestic Business Day next preceding
the date of Borrowing proposed therein, in the case of an Absolute Rate Auction
(or, in either case, such other time or date as the Borrower and the Agent
shall.
17
have mutually agreed and shall have notified to the Banks not later than the
date
of the Money Market Quote Request for the first LIBOR Auction or Absolute
Rate Auction for which such change is to be effective) specifying:
(i) the proposed date of Borrowing, which shall be a Euro-Dollar
Business Day in the case of a LIBOR Auction or a Domestic Business Day
in the case of an Absolute Rate Auction,
(ii) the aggregate amount of such Borrowing, which shall be
$10,000,000 or a larger integral multiple of $1,000,000,
(iii) the duration of the Interest Period applicable thereto, subject
to the provisions of the definition of Interest Period, and
(iv) whether the Money Market Quotes requested are to set forth a
Money Market Margin or a Money Market Absolute Rate.
The Borrower may request offers to make Money Market Loans for more than one
Interest Period in a single Money Market Quote Request. No Money Market
Quote Request shall be given within five Euro-Dollar Business Days (or such
other number of days as the Borrower and the Agent may agree) of any other
Money Market Quote Request.
(c) Invitation for Money Market Quotes. Promptly upon receipt of a
Money Market Quote Request, the Agent shall send to the Banks by telex or
facsimile transmission an Invitation for Money Market Quotes substantially in
the
form of Exhibit C hereto, which shall constitute an invitation by the Borrower
to
each Bank to submit Money Market Quotes offering to make the Money Market
Loans to which such Money Market Quote Request relates in accordance with this
Section.
(d) Submission and Contents of Money Market Quotes. (i) Each Bank
may submit a Money Market Quote containing an offer or offers to make Money
Market Loans in response to any Invitation for Money Market Quotes. Each
Money Market Quote must comply with the requirements of this subsection (d)
and must be submitted to the Agent by telex or facsimile transmission at its
offices specified in or pursuant to Section 9.01 not later than (x) 2:00 P.M.
(New
York City time) on the fourth Euro-Dollar Business Day prior to the proposed
date of Borrowing, in the case of a LIBOR Auction or (y) 10:15 A.M. (New York
City time) on the proposed date of Borrowing, in the case of an Absolute Rate
Auction (or, in either case, such other time or date as the Borrower and the
Agent
shall have mutually agreed and shall have notified to the Banks not later than
the.
18
date of the Money Market Quote Request for the first LIBOR Auction or Absolute
Rate Auction for which such change is to be effective); provided that Money
Market Quotes submitted by the Agent (or any affiliate of the Agent) in the
capacity of a Bank may be submitted, and may only be submitted, if the Agent or
such affiliate notifies the Borrower of the terms of the offer or offers
contained
therein not later than (x) one hour prior to the deadline for the other Banks,
in the
case of a LIBOR Auction or (y) 15 minutes prior to the deadline for the other
Banks, in the case of an Absolute Rate Auction. Subject to Articles 3 and 6,
any Money Market Quote so made shall be irrevocable except with the written
consent of the Agent given on the instructions of the Borrower.
(ii) Each Money Market Quote shall be in substantially the form of
Exhibit D hereto and shall in any case specify:
(A) the proposed date of Borrowing,
(B) the principal amount of the Money Market Loan for which
each such offer is being made, which principal amount (w) may be greater
than or less than the Commitment of the quoting Bank, (x) must be
$5,000,000 or a larger integral multiple of $1,000,000, (y) may not exceed
the principal amount of Money Market Loans for which offers were
requested and (z) may be subject to an aggregate limitation as to the
principal amount of Money Market Loans for which offers being made by
such quoting Bank may be accepted,
(C) in the case of a LIBOR Auction, the margin above or below
the applicable London Interbank Offered Rate (the "Money Market
Margin") offered for each such Money Market Loan, expressed as a
percentage (specified to the nearest 1/10,000 of 1%) to be added to or
subtracted from such base rate,
(D) in the case of an Absolute Rate Auction, the rate of interest
per annum (specified to the nearest 1/10,000 of 1%) (the "Money Market
Absolute Rate") offered for each such Money Market Loan, and
(E) the identity of the quoting Bank.
A Money Market Quote may set forth up to five separate offers by the quoting
Bank with respect to each Interest Period specified in the related Invitation
for
Money Market Quotes..
19
(iii) Any Money Market Quote shall be disregarded if it:
(A) is not substantially in conformity with Exhibit D hereto or
does not specify all of the information required by subsection (d)(ii);
(B) contains qualifying, conditional or similar language;
(C) proposes terms other than or in addition to those set forth in
the applicable Invitation for Money Market Quotes; or
(D) arrives after the time set forth in subsection (d)(i).
(e) Notice to Borrower. The Agent shall promptly notify the Borrower
of the terms (x) of any Money Market Quote submitted by a Bank that is in
accordance with subsection (d) and (y) of any Money Market Quote that amends,
modifies or is otherwise inconsistent with a previous Money Market Quote
submitted by such Bank with respect to the same Money Market Quote Request.
Any such subsequent Money Market Quote shall be disregarded by the Agent
unless such subsequent Money Market Quote is submitted solely to correct a
manifest error in such former Money Market Quote. The Agent's notice to the
Borrower shall specify (A) the aggregate principal amount of Money Market
Loans for which offers have been received for each Interest Period specified in
the
related Money Market Quote Request, (B) the respective principal amounts and
Money Market Margins or Money Market Absolute Rates, as the case may be, so
offered and (C) if applicable, limitations on the aggregate principal amount of
Money Market Loans for which offers in any single Money Market Quote may be
accepted.
(f) Acceptance and Notice by Borrower. Not later than 11:30 A.M.
(New York City time) on (x) the third Euro-Dollar Business Day prior to the
proposed date of Borrowing, in the case of a LIBOR Auction or (y) the proposed
date of Borrowing, in the case of an Absolute Rate Auction (or, in either case,
such other time or date as the Borrower and the Agent shall have mutually
agreed
and shall have notified to the Banks not later than the date of the Money
Market
Quote Request for the first LIBOR Auction or Absolute Rate Auction for which
such change is to be effective), the Borrower shall notify the Agent of its
acceptance or non-acceptance of the offers so notified to it pursuant to
subsection
(e). In the case of acceptance, such notice (a "Notice of Money Market
Borrowing") shall specify the aggregate principal amount of offers for each
Interest Period that are accepted. The Borrower may accept any Money Market
Quote in whole or in part; provided that:.
20
(i) the aggregate principal amount of each Money Market
Borrowing may not exceed the applicable amount set forth in the related
Money Market Quote Request,
(ii) the principal amount of each Money Market Borrowing must
be $10,000,000 or a larger integral multiple of $1,000,000,
(iii) acceptance of offers may only be made on the basis of
ascending Money Market Margins or Money Market Absolute Rates, as
the case may be, and
(iv) the Borrower may not accept any offer that is described in
subsection (d)(iii) or that otherwise fails to comply with the requirements
of this Agreement.
(g) Allocation by Agent. If offers are made by two or more Banks with
the same Money Market Margins or Money Market Absolute Rates, as the case
may be, for a greater aggregate principal amount than the amount in respect of
which such offers are accepted for the related Interest Period, the principal
amount
of Money Market Loans in respect of which such offers are accepted shall be
allocated by the Agent among such Banks as nearly as possible (in multiples of
$1,000,000, as the Agent may deem appropriate) in proportion to the aggregate
principal amounts of such offers. Determinations by the Agent of the amounts of
Money Market Loans shall be conclusive in the absence of manifest error.
SECTION 2.04. Notice to Banks; Funding of Loans. (a) Upon receipt of a
Notice of Borrowing, the Agent shall promptly notify each Bank of the contents
thereof and of such Bank's share (if any) of such Borrowing and such Notice of
Borrowing shall not thereafter be revocable by the Borrower.
(b) Not later than (x) 12:00 Noon (New York City time) on the date of
each Borrowing other than a Base Rate Borrowing and (y) 1:00 P.M. (New York
City time) on the date of each Base Rate Borrowing, each Bank participating
therein shall make available its share of such Borrowing, in Federal or other
funds
immediately available in New York City, to the Agent at its address referred to
in
Section 9.01. Unless the Agent determines that any applicable condition
specified
in Article 3 has not been satisfied, the Agent will, promptly upon receipt
thereof,
make the funds so received from the Banks available to the Borrower at the
Agent's aforesaid address.
(c) Unless the Agent shall have received notice from a Bank prior to the
date of any Borrowing that such Bank will not make available to the Agent such.
21
Bank's share of such Borrowing, the Agent may assume that such Bank has made
such share available to the Agent on the date of such Borrowing in accordance
with subsection (b) of this Section 2.04 and the Agent may, in reliance upon
such
assumption, make available to the Borrower on such date a corresponding
amount. If and to the extent that such Bank shall not have so made such share
available to the Agent, such Bank and the Borrower severally agree to repay to
the
Agent, within one Domestic Business Day after demand, such corresponding
amount together with interest thereon, for each day from the date such amount
is made available to the Borrower until the date such amount is repaid to the
Agent,
at (i) in the case of the Borrower, a rate per annum equal to the higher of the
Federal Funds Rate and the interest rate applicable thereto pursuant to Section
2.07 and (ii) in the case of such Bank, the Federal Funds Rate. If such Bank
shall
repay to the Agent such corresponding amount, such amount so repaid shall
constitute such Bank's Loan included in such Borrowing for purposes of this
Agreement.
SECTION 2.05. Notes. (a) The Loans of each Bank shall be evidenced by a
single Note payable to the order of such Bank for the account of its Applicable
Lending Office in an amount equal to the aggregate unpaid principal amount of
such Bank's Loans.
(b) Each Bank may, by notice to the Borrower and the Agent, request
that its Loans of a particular type be evidenced by a separate Note in an
amount
equal to the aggregate unpaid principal amount of such Loans. Each such Note
shall be in substantially the form of Exhibit A hereto with appropriate
modifications to reflect the fact that it evidences solely Loans of the
relevant type.
Each reference in this Agreement to the "Note" of such Bank shall be deemed to
refer to and include any or all of such Notes, as the context may require.
(c) Upon receipt of each Bank's Note pursuant to Section 3.01(b), the
Agent shall forward such Note to such Bank. Each Bank shall record the date,
amount and type of each Loan made by it and the date and amount of each
payment of principal made by the Borrower with respect thereto, and may, if
such Bank so elects in connection with any transfer or enforcement of its Note,
endorse
on the schedule forming a part thereof appropriate notations to evidence the
foregoing information with respect to each such Loan then outstanding; provided
that the failure of any Bank to make any such recordation or endorsement, or
any error in the making thereof, shall not affect the obligations of the
Borrower
hereunder or under the Notes. Each Bank is hereby irrevocably authorized by the
Borrower so to endorse its Note and to attach to and make a part of its Note a
continuation of any such schedule as and when required..
22
SECTION 2.06. Maturity of Loans. (a) Each Committed Loan shall
mature, and the principal amount thereof shall be due and payable, on the
Termination Date.
(b) Each Money Market Loan included in any Money Market Borrowing
shall mature, and the principal amount thereof shall be due and payable, on the
last day of the Interest Period applicable to such Borrowing.
SECTION 2.07. Interest Rates. (a) Each Base Rate Loan shall bear interest
on the outstanding principal amount thereof, for each day from the date such
Loan
is made until it becomes due, at a rate per annum equal to the Base Rate for
such
day. Such interest shall be payable quarterly in arrears on each Quarterly Date
and, with respect to the principal amount of any Base Rate Loan converted to a
CD Loan or a Euro-Dollar Loan, on the date such amount is so converted. Any
overdue principal of or interest on any Base Rate Loan shall bear interest,
payable
on demand, for each day until paid at a rate per annum equal to the sum of 2%
plus the Base Rate for such day.
(b) Each CD Loan shall bear interest on the outstanding principal amount
thereof, for each day during each Interest Period applicable thereto, at a rate
per
annum equal to the sum of the CD Margin for such day plus the Adjusted CD
Rate applicable to such Interest Period; provided that if any CD Loan or any
portion thereof shall, as a result of clause (b)(ii) of the definition of
Interest
Period, have an Interest Period of less than 30 days, such portion shall bear
interest for each day during such Interest Period at the Base Rate for such
day. Such interest shall be payable for each Interest Period on the last day
thereof and,
if such Interest Period is longer than 90 days, 90 days after the first day
thereof.
Any overdue principal of or interest on any CD Loan shall bear interest,
payable
on demand, for each day until paid at a rate per annum equal to the sum of 2%
plus the Base Rate for such day.
The "Adjusted CD Rate" applicable to any Interest Period means a rate per
annum determined pursuant to the following formula:.
23
[ CDBR ]*
ACDR = [ ---------- ] + AR
[ 1.00 - DRP ]
ACDR = Adjusted CD Rate
CDBR = CD Base Rate
DRP = Domestic Reserve Percentage
AR = Assessment Rate
__________
* The amount in brackets being rounded upward, if necessary, to the next
higher 1/100 of 1%
The "CD Base Rate" applicable to any Interest Period is the rate of interest
determined by the Agent to be the average (rounded upward, if necessary, to the
next higher 1/100 of 1%) of the prevailing rates per annum bid at 10:00 A.M.
(New York City time) (or as soon thereafter as practicable) on the first day of
such
Interest Period by two or more New York certificate of deposit dealers of
recognized standing for the purchase at face value from each CD Reference Bank
of its certificates of deposit in an amount comparable to the principal amount
of
the CD Loan of such CD Reference Bank to which such Interest Period applies
and having a maturity comparable to such Interest Period.
"Domestic Reserve Percentage" means for any day that percentage
(expressed as a decimal) which is in effect on such day, as prescribed by the
Board of Governors of the Federal Reserve System (or any successor) for
determining the maximum reserve requirement (including without limitation any
basic, supplemental or emergency reserves) for a member bank of the Federal
Reserve System in New York City with deposits exceeding five billion dollars in
respect of new non-personal time deposits in dollars in New York City having a
maturity comparable to the related Interest Period and in an amount of $100,000
or more. The Adjusted CD Rate shall be adjusted automatically on and as of the
effective date of any change in the Domestic Reserve Percentage.
"Assessment Rate" means for any day the annual assessment rate in effect
on such day which is payable by a member of the Bank Insurance Fund classified
as adequately capitalized and within supervisory subgroup "A" (or a comparable
successor assessment risk classification) within the meaning of 12 C.F.R.
327.4(a) (or any successor provision) to the Federal Deposit Insurance
Corporation (or any successor) for such Corporation's (or such successor's)
insuring time deposits at offices of such institution in the United States. The
24
Adjusted CD Rate shall be adjusted automatically on and as of the effective
date of any change in the Assessment Rate.
(c) Each Euro-Dollar Loan shall bear interest on the outstanding
principal amount thereof, for each day during each Interest Period applicable
thereto, at a rate per annum equal to the sum of the Euro-Dollar Margin for
such
day plus the Adjusted London Interbank Offered Rate applicable to such Interest
Period. Such interest shall be payable for each Interest Period on the last day
thereof and, if such Interest Period is longer than three months, three months
after
the first day thereof.
The "Adjusted London Interbank Offered Rate" applicable to any Interest
Period means a rate per annum equal to the quotient obtained (rounded upward,
if
necessary, to the next higher 1/100 of 1%) by dividing (i) the applicable
London
Interbank Offered Rate by (ii) 1.00 minus the Euro-Dollar Reserve Percentage.
The "London Interbank Offered Rate" applicable to any Interest Period
means the average (rounded upward, if necessary, to the next higher 1/16 of 1%)
of the respective rates per annum at which deposits in dollars are offered to
each
of the Euro-Dollar Reference Banks in the London interbank market at
approximately 11:00 A.M. (London time) two Euro-Dollar Business Days before
the first day of such Interest Period in an amount approximately equal to the
principal amount of the Euro-Dollar Loan of such Euro-Dollar Reference Bank to
which such Interest Period is to apply and for a period of time comparable to
such
Interest Period.
"Euro-Dollar Reserve Percentage" means for any day that percentage
(expressed as a decimal) which is in effect on such day, as prescribed by the
Board of Governors of the Federal Reserve System (or any successor) for
determining the maximum reserve requirement for a member bank of the Federal
Reserve System in New York City with deposits exceeding five billion dollars in
respect of "Eurocurrency liabilities" (or in respect of any other category of
liabilities which includes deposits by reference to which the interest rate on
Euro-Dollar Loans is determined or any category of extensions of credit or
other
assets which includes loans by a non-United States office of any Bank to United
States residents). The Adjusted London Interbank Offered Rate shall be adjusted
automatically on and as of the effective date of any change in the Euro-Dollar
Reserve Percentage.
(d) Any overdue principal of or interest on any Euro-Dollar Loan shall
bear interest, payable on demand, for each day from and including the date
payment thereof was due to but excluding the date of actual payment, at a rate
per.
25
annum equal to the sum of 2% plus the higher of (i) the sum of the Euro-Dollar
Margin for such day plus the Adjusted London Interbank Offered Rate applicable
to such Loan on the day before such payment was due and (ii) the Euro-Dollar
Margin for such day plus the quotient obtained (rounded upward, if necessary,
to the next higher 1/100 of 1%) by dividing (x) the average (rounded upward, if
necessary, to the next higher 1/16 of 1%) of the respective rates per annum at
which one day (or, if such amount due remains unpaid more than three
Euro-Dollar Business Days, then for such other period of time not longer than
three months as the Agent may select) deposits in dollars in an amount
approximately equal to such overdue payment due to each of the Euro-Dollar
Reference Banks are offered to such Euro-Dollar Reference Bank in the London
interbank market for the applicable period determined as provided above by (y)
1.00 minus the Euro-Dollar Reserve Percentage (or, if the circumstances
described in clause (a) or (b) of Section 8.01 shall exist, at a rate per annum
equal
to the sum of 2% plus the Base Rate for such day).
(e) Subject to Section 8.01(a), each Money Market LIBOR Loan shall
bear interest on the outstanding principal amount thereof, for the Interest
Period
applicable thereto, at a rate per annum equal to the sum of the London
Interbank
Offered Rate for such Interest Period (determined in accordance with Section
2.07(c) as if the related Money Market LIBOR Borrowing were a Committed
Euro-Dollar Borrowing) plus (or minus) the Money Market Margin quoted by the
Bank making such Loan in accordance with Section 2.03. Each Money Market
Absolute Rate Loan shall bear interest on the outstanding principal amount
thereof, for the Interest Period applicable thereto, at a rate per annum equal
to the
Money Market Absolute Rate quoted by the Bank making such Loan in
accordance with Section 2.03. Such interest shall be payable for each Interest
Period on the last day thereof and, if such Interest Period is longer than
three
months, at intervals of three months after the first day thereof. Any overdue
principal of or interest on any Money Market Loan shall bear interest, payable
on
demand, for each day until paid at a rate per annum equal to the sum of 2% plus
the Base Rate for such day.
(f) The Agent shall determine each interest rate applicable to the Loans
hereunder. The Agent shall give prompt notice to the Borrower and the
participating Banks of each rate of interest so determined, and its
determination
thereof shall be conclusive in the absence of manifest error.
(g) Each Reference Bank agrees to use its best efforts to furnish
quotations to the Agent as contemplated by this Section. If any Reference Bank
does not furnish a timely quotation, the Agent shall determine the relevant
interest
rate on the basis of the quotation or quotations furnished by the remaining.
26
Reference Bank or Banks or, if none of such quotations is available on a timely
basis, the provisions of Section 8.01 shall apply.
SECTION 2.08. Facility Fee. The Borrower shall pay to the Agent, for
the account of the Banks ratably in accordance with their respective
Percentages, a
facility fee for each day at the Facility Fee Rate for such day (determined in
accordance with the Pricing Schedule). Such facility fee shall accrue for each
day
(i) from and including the Effective Date to but excluding the Termination Date
(or earlier date of termination of the Commitments in their entirety), on the
aggregate amount of the Commitments (whether used or unused) on such day and
(ii) if any Committed Loans remain outstanding after the Commitments terminate
in their entirety, then for each day from and including the date on which the
Commitments terminate in their entirety to but excluding the first day
thereafter
on which no Committed Loans remain outstanding, on the aggregate outstanding
principal amount of the Committed Loans on such day. Fees accrued under this
Section shall be payable quarterly on each Quarterly Date and on the date on
which the Commitments terminate in their entirety (and, if later, the first day
thereafter on which no Committed Loans remain outstanding).
SECTION 2.09. Optional Termination or Reduction of Commitments. The
Borrower may, upon at least three Domestic Business Days' notice to the Agent,
(i) terminate the Commitments at any time, if no Loans are outstanding at such
time, or (ii) ratably reduce from time to time by an aggregate amount of
$5,000,000 or any larger integral multiple of $1,000,000, the aggregate amount
of
the Commitments in excess of the aggregate outstanding principal amount of the
Loans.
SECTION 2.10. Method of Electing Interest Rates. (a) The Loans
included in each Committed Borrowing shall bear interest initially at the type
of
rate specified by the Borrower in the applicable Notice of Committed Borrowing.
Thereafter, the Borrower may from time to time elect to change or continue the
type of interest rate borne by each Group of Loans (subject in each case to the
provisions of Article 8), as follows:
(i) if such Loans are Base Rate Loans, the Borrower may elect to
convert such Loans to CD Loans as of any Domestic Business Day or to
Euro-Dollar Loans as of any Euro-Dollar Business Day;
(ii) if such Loans are CD Loans, the Borrower may elect to
convert such Loans to Base Rate Loans or Euro-Dollar Loans or elect to
continue such Loans as CD Loans for an additional Interest Period, in each.
27
case effective on the last day of the then current Interest Period applicable
to such Loans; and
(iii) if such Loans are Euro-Dollar Loans, the Borrower may elect
to convert such Loans to Base Rate Loans or CD Loans or elect to
continue such Loans as Euro-Dollar Loans for an additional Interest
Period, in each case effective on the last day of the then current Interest
Period applicable to such Loans.
Each such election shall be made by delivering a notice (a "Notice of Interest
Rate
Election") to the Agent at least three Euro-Dollar Business Days before the
conversion or continuation selected in such notice is to be effective (unless
the
relevant Loans are to be converted from Domestic Loans of one type to Domestic
Loans of the other type or continued as Domestic Loans of the same type for an
additional Interest Period, in which case such notice shall be delivered to the
Agent at least three Domestic Business Days before such conversion or
continuation is to be effective). A Notice of Interest Rate Election may, if it
so
specifies, apply to only a portion of the aggregate principal amount of the
relevant
Group of Loans; provided that (i) such portion is allocated ratably among the
Loans comprising such Group and (ii) the portion to which such Notice applies,
and the remaining portion to which it does not apply, are each $10,000,000 or
any
larger multiple of $1,000,000.
(b) Each Notice of Interest Rate Election shall specify:
(i) the Group of Loans (or portion thereof) to which such notice
applies;
(ii) the date on which the conversion or continuation selected in
such notice is to be effective, which shall comply with the applicable
clause of subsection (a) above;
(iii) if the Loans comprising such Group are to be converted, the
new type of Loans and, if such new Loans are Fixed Rate Loans, the
duration of the initial Interest Period applicable thereto; and
(iv) if such Loans are to be continued as CD Loans or
Euro-Dollar Loans for an additional Interest Period, the duration of such
additional Interest Period.
Each Interest Period specified in a Notice of Interest Rate Election shall
comply
with the provisions of the definition of Interest Period..
28
(c) Upon receipt of a Notice of Interest Rate Election from the Borrower
pursuant to subsection (a) above, the Agent shall promptly notify each Bank of
the
contents thereof and such notice shall not thereafter be revocable by the
Borrower.
If the Borrower fails to deliver a timely Notice of Interest Rate Election to
the
Agent for any Group of Fixed Rate Loans, such Loans shall be converted to Base
Rate Loans on the last day of the then current Interest Period applicable
thereto.
SECTION 2.11. Mandatory Termination of Commitments. Unless
previously terminated, the Commitments shall terminate on the Termination Date,
and any Loans then outstanding (together with accrued interest thereon) shall
be due and payable on such date.
SECTION 2.12. Optional Prepayments. (a) The Borrower may (i) upon at
least one Domestic Business Day's notice to the Agent, prepay any Base Rate
Loans (or any Money Market Borrowing bearing interest at the Base Rate
pursuant to Section 8.01(a)), (ii) upon at least three Domestic Business Days'
notice to the Agent, prepay any Group of CD Loans or (iii) upon at least three
Euro-Dollar Business Days' notice to the Agent, prepay any Group of Euro-Dollar
Loans, in each case in whole at any time, or from time to time in part in
amounts
aggregating $5,000,000 or any larger integral multiple of $1,000,000, by paying
the principal amount to be prepaid together with accrued interest thereon to
the date of prepayment. Each such optional prepayment shall be applied to
prepay
ratably the Loans of the several Banks included in such Group or Borrowing. In
connection with any such prepayment of any Fixed Rate Loan, the Borrower shall
comply with the provisions of Section 2.14.
(b) Except as provided in subsection (a) above, the Borrower may not
prepay all or any portion of the principal amount of any Money Market Loan
prior to the maturity thereof.
(c) Upon receipt of a notice of prepayment pursuant to this Section, the
Agent shall promptly notify each Bank of the contents thereof and of such
Bank's
ratable share (if any) of such prepayment and such notice shall not thereafter
be
revocable by the Borrower.
SECTION 2.13. General Provisions as to Payments. (a) The Borrower
shall make each payment of principal of, and interest on, the Loans and of fees
hereunder, not later than 1:00 P.M. (New York City time) on the date when due,
in Federal or other funds immediately available in New York City, to the Agent
at
its address referred to in Section 9.01. The Agent will promptly distribute to
each
Bank its ratable share of each such payment received by the Agent for the
account.
29
of the Banks. Whenever any payment of principal of, or interest on, the
Domestic
Loans or of fees shall be due on a day which is not a Domestic Business Day,
the
date for payment thereof shall be extended to the next succeeding Domestic
Business Day. Whenever any payment of principal of, or interest on, the
Euro-Dollar Loans shall be due on a day which is not a Euro-Dollar Business
Day, the date for payment thereof shall be extended to the next succeeding
Euro-Dollar
Business Day unless such Euro-Dollar Business Day falls in another calendar
month, in which case the date for payment thereof shall be the next preceding
Euro-Dollar Business Day. Whenever any payment of principal of, or interest on,
the Money Market Loans shall be due on a day which is not a Euro-Dollar
Business Day, the date for payment thereof shall be extended to the next
succeeding Euro-Dollar Business Day. If the date for any payment of principal
is
extended in accordance with this Section 2.13, by operation of law or
otherwise,
interest thereon shall be payable for such extended time.
(b) Unless the Agent shall have received notice from the Borrower prior
to the date on which any payment is due to the Banks hereunder that the
Borrower
will not make such payment in full, the Agent may assume that the Borrower has
made such payment in full to the Agent on such date and the Agent may, in
reliance upon such assumption, cause to be distributed to each Bank on such due
date an amount equal to the amount then due such Bank. If and to the extent
that
the Borrower shall not have so made such payment, each Bank shall repay to the
Agent forthwith on demand such amount distributed to such Bank together with
interest thereon, for each day from the date such amount is distributed to such
Bank until the date such Bank repays such amount to the Agent, at the Federal
Funds Rate.
SECTION 2.14. Funding Losses. If the Borrower makes any payment of
principal with respect to any Fixed Rate Loan or any Fixed Rate Loan is
converted
to another type of Loan (whether such payment or conversion is pursuant to
Article 2, 6 or 8 or otherwise) on any day other than the last day of an
Interest
Period applicable thereto, or the last day of an applicable period fixed
pursuant to
Section 2.07(d), or if the Borrower fails to borrow, prepay, convert or
continue
any Fixed Rate Loans after notice has been given to any Bank in accordance with
Section 2.04(a) or 2.10(a), the Borrower shall pay to each Bank within 15 days
after demand an amount calculated as provided in Exhibit I hereto to compensate
such Bank for any loss incurred by it (or by an existing or scheduled
Participant in
the related Loan) in obtaining, liquidating or employing deposits from third
parties, provided that such Bank shall have delivered to the Borrower a
certificate
setting forth such amount and the calculation thereof in reasonable detail..
30
SECTION 2.15. Computation of Interest and Fees. Interest based on the
Prime Rate hereunder shall be computed on the basis of a year of 365 days (or
366
days in a leap year) and paid for the actual number of days elapsed (including
the
first day but excluding the last day). All other interest and all facility fees
shall be
computed on the basis of a year of 360 days and paid for the actual number of
days elapsed (including the first day but excluding the last day).
SECTION 2.16. Maximum Interest Rate. (a) Nothing contained in this
Agreement or the Notes shall require the Borrower to pay interest for the
account
of any Bank at a rate exceeding the maximum rate permitted by applicable law.
(b) If the amount of interest payable for the account of any Bank on any
interest payment date in respect of the immediately preceding interest
computation
period, computed pursuant to Section 2.07, would exceed the maximum amount
permitted by applicable law to be charged by such Bank, the amount of interest
payable for its account on such interest payment date shall be automatically
reduced to such maximum permissible amount.
(c) If the amount of interest payable for the account of any Bank in
respect of any interest computation period is reduced pursuant to subsection
(b) of
this Section and the amount of interest payable for its account in respect of
any
subsequent interest computation period, computed pursuant to Section 2.07,
would be less than the maximum amount permitted by applicable law to be
charged by such Bank, then the amount of interest payable for its account in
respect of such subsequent interest computation period shall be automatically
increased to such maximum permissible amount; provided that at no time shall
the aggregate amount by which interest paid for the account of any Bank has
been
increased pursuant to this subsection (c) exceed the aggregate amount by which
interest paid for its account has theretofore been reduced pursuant to
subsection
(b) of this Section.
ARTICLE 3
CONDITIONS
SECTION 3.01. Conditions to Effectiveness. This Agreement shall become
effective on the date on which all of the following conditions to effectiveness
shall be satisfied (but shall not become effective unless such date is on or
before
September 30, 1999):
(a) the Agent shall have received counterparts hereof signed by
each of the parties hereto (or, in the case of any party as to which an
executed counterpart shall not have been received, the Agent shall have.
31
received in form satisfactory to it facsimile or other written confirmation
from such party that it has executed a counterpart hereof);
(b) the Agent shall have received a duly executed Note for the
account of each Bank dated on or before the Effective Date complying
with the provisions of Section 2.05;
(c) the Agent shall have received counterparts of a Subsidiary
Guaranty Agreement, substantially in the form of Exhibit H hereto, duly
executed by each of the Obligors listed on the signature pages thereof;
(d) the Agent shall have received an opinion of Eberhard ▇.▇.
▇▇▇▇▇▇▇▇▇, Esq., general counsel for the Borrower, substantially in the
form of Exhibit E hereto and covering such additional matters relating to
the transactions contemplated hereby as the Required Banks may
reasonably request;
(e) the Agent shall have received an opinion of ▇▇▇▇▇ ▇▇▇▇ &
▇▇▇▇▇▇▇▇, special counsel for the Agent, substantially in the form of
Exhibit F hereto and covering such additional matters relating to the
transactions contemplated hereby as the Required Banks may reasonably
request; and
(f) the Agent shall have received all documents the Agent may
reasonably request relating to the existence of the Obligors, the corporate
authority for and the validity of the Financing Documents and any other
matters relevant hereto, all in form and substance satisfactory to the Agent.
The Agent shall promptly notify the Borrower and the Banks of the Effective
Date, and such notice shall be conclusive and binding on all parties hereto.
SECTION 3.02. Borrowings. The obligation of any Bank to make a Loan
on the occasion of any Borrowing is subject to the satisfaction of the
following conditions:
(a) receipt by the Agent of a Notice of Borrowing as required
by Section 2.02 or 2.03, as the case may be;
(b) the fact that, after giving effect to such Borrowing, the
aggregate outstanding principal amount of the Loans will not exceed the
aggregate amount of the Commitments;.
32
(c) the fact that, immediately before and after such Borrowing,
no Default shall have occurred and be continuing; and
(d) the fact that the representations and warranties of the
Borrower contained in this Agreement shall be true on and as of the date
of such Borrowing.
Each Borrowing hereunder shall be deemed to be a representation and warranty by
the Borrower on the date of such Borrowing as to the facts specified in clauses
(b), (c) and (d) of this Section.
ARTICLE 4
REPRESENTATIONS AND WARRANTIES
The Borrower represents and warrants that:
SECTION 4.01. Corporate Existence and Power. The Borrower is a
corporation duly incorporated, validly existing and in good standing under the
laws of Delaware, and has all corporate powers and all material governmental
licenses, authorizations, consents and approvals required to carry on its
business
as now conducted.
SECTION 4.02. Corporate and Governmental Authorization; No
Contravention. The execution, delivery and performance by each Obligor of the
Financing Documents to which it is a party are within its corporate powers,
have
been duly authorized by all necessary corporate action, require no action by or
in
respect of, or filing with, any governmental body, agency or official and do
not
contravene, or constitute a default under, any provision of applicable law or
regulation or of the certificate of incorporation or by-laws of such Obligor or
of
any agreement, judgment, injunction, order, decree or other instrument binding
upon such Obligor or any Subsidiary or result in the creation or imposition of
any
Lien on any asset of such Obligor or any Subsidiary.
SECTION 4.03. Binding Effect. This Agreement constitutes a valid and
binding agreement of the Borrower and the Notes, when executed and delivered in
accordance with this Agreement, will constitute valid and binding obligations
of
the Borrower, in each case enforceable in accordance with its terms, subject to
applicable bankruptcy, insolvency or similar laws affecting creditors' rights
generally and general principles of equity. The Subsidiary Guaranty Agreement,.
33
when executed and delivered by each Obligor, will constitute a valid and
binding
agreement of such Obligor, enforceable in accordance with its terms, subject to
applicable bankruptcy, insolvency or similar laws affecting creditors' rights
generally and general principles of equity.
SECTION 4.04. Financial Information. (a) The consolidated balance
sheet of the Borrower and its Consolidated Subsidiaries as of December 31, 1998
and the related statements of consolidated income, consolidated cash flows and
consolidated shareholders' equity for the fiscal year then ended, reported on
by ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ LLP and set forth in the Borrower's 1998 Annual Report to
Shareholders, a copy of which has been delivered to each of the Banks, fairly
present, in conformity with generally accepted accounting principles, the
consolidated financial position of the Borrower and its Consolidated
Subsidiaries
as of such date and their consolidated results of operations and cash flows for
such
fiscal year.
(b) The unaudited condensed consolidated balance sheet of the Borrower
and its Consolidated Subsidiaries as of June 30, 1999 and the related unaudited
condensed statements of consolidated income and consolidated cash flows for the
six months then ended, set forth in the Borrower's quarterly report for the
fiscal
quarter ended June 30, 1999 as filed with the Securities and Exchange
Commission on Form 10-Q, a copy of which has been delivered to each of the
Banks, fairly present, on a basis consistent with the financial statements
referred
to in subsection (a) of this Section, the consolidated financial position of
the Borrower and its Consolidated Subsidiaries as of such date and their
consolidated
results of operations and cash flows for such six-month period (subject to
normal
year-end adjustments).
(c) There has been no material adverse change since June 30, 1999 in
the business, financial position, results of operations or prospects of the
Borrower
and its Consolidated Subsidiaries, considered as a whole.
SECTION 4.05. Litigation. There is no action, suit or proceeding pending
against, or to the knowledge of the Borrower threatened against or affecting,
the
Borrower or any of its Subsidiaries before any court or arbitrator or any
governmental body, agency or official (i) in which there is a reasonable
possibility
that a final judgment in excess of $30,000,000 will be entered or filed against
the
Borrower or any of its Subsidiaries, (ii) in which there is a reasonable
possibility
of an adverse decision which could, in a manner not involving the payment of
damages, materially adversely affect the business of the Borrower and its
Subsidiaries, considered as a whole, or (iii) which in any manner draws into
question the validity of any Financing Document..
34
SECTION 4.06. Compliance with ERISA. Each member of the ERISA
Group has fulfilled its obligations under the minimum funding standards of
ERISA and the Internal Revenue Code with respect to each Plan and is in
compliance in all respects with the presently applicable provisions of ERISA
and
the Internal Revenue Code with respect to each Plan, except to the extent that
noncompliance could not materially adversely affect the business, consolidated
financial position or consolidated results of operations of the Borrower and
its
Consolidated Subsidiaries. No member of the ERISA Group has (i) sought a
waiver of the minimum funding standard under Section 412 of the Internal
Revenue Code in respect of any Plan, (ii) failed to make any contribution or
payment to any Plan or Multiemployer Plan or in respect of any Benefit
Arrangement, or made any amendment to any Plan or Benefit Arrangement, which
has resulted or could result in the imposition of a Lien or the posting of a
bond or
other security under ERISA or the Internal Revenue Code or (iii) incurred any
liability under Title IV of ERISA other than a liability to the PBGC for
premiums
under Section 4007 of ERISA.
SECTION 4.07. Environmental Matters. In the ordinary course of its
business, the Borrower conducts periodic reviews of the effect of Environmental
Laws on the business, operations and properties of the Borrower and its
Subsidiaries, in the course of which it identifies and evaluates associated
liabilities and costs (including, without limitation, any capital or operating
expenditures required for clean-up or closure of properties presently or
previously
owned, any capital or operating expenditures required to achieve or maintain
compliance with environmental protection standards imposed by law or as a
condition of any license, permit or contract, any related constraints on
operating
activities, including any periodic or permanent shutdown of any facility or
reduction in the level of or change in the nature of operations conducted
thereat,
any costs or liabilities in connection with off-site disposal of wastes or
Hazardous
Substances, and any actual or potential liabilities to third parties, including
employees, and any related costs and expenses). On the basis of such reviews,
the Borrower has reasonably concluded that such associated liabilities and
costs,
including the costs of compliance with Environmental Laws, are unlikely (after
taking into account the Borrower's reserves for such liabilities and costs) to
have a
material adverse effect on the business, financial condition, results of
operations
or prospects of the Borrower and its Consolidated Subsidiaries, considered as a
whole.
SECTION 4.08. Taxes. United States Federal income tax returns of the
Borrower and its Subsidiaries have been examined and closed through the fiscal
year ended December 31, 1986. The Borrower and its Subsidiaries have filed all
United States Federal income tax returns and all other material tax returns
which.
35
are required to be filed by them and have paid all taxes due pursuant to such
returns or pursuant to any assessment received by the Borrower or any
Subsidiary.
The charges, accruals and reserves on the books of the Borrower and its
Subsidiaries in respect of taxes or other governmental charges are, in the
opinion
of the Borrower, adequate.
SECTION 4.09. Subsidiaries. Each of the Borrower's corporate
Subsidiaries is a corporation duly incorporated, validly existing and in good
standing under the laws of its jurisdiction of incorporation, and has all
corporate
powers and all material governmental licenses, authorizations, consents and
approvals required to carry on its business as now conducted. Each Subsidiary
Guarantor is a Wholly-Owned Subsidiary of the Borrower.
SECTION 4.10. Not an Investment Company. The Borrower is not an
"investment company" within the meaning of the Investment Company Act of
1940, as amended.
SECTION 4.11. Full Disclosure. All information heretofore furnished by
the Borrower to the Agent or any Bank for purposes of or in connection with
this Agreement or any transaction contemplated hereby is, and all such
information
hereafter furnished by the Borrower to the Agent or any Bank will be, true and
accurate in all material respects on the date as of which such information is
stated
or certified. The Borrower has disclosed to the Banks in writing any and all
facts
which materially and adversely affect or may affect (to the extent the Borrower
can now reasonably foresee) the business, operations or financial condition of
the
Borrower and its Consolidated Subsidiaries, taken as a whole, or the ability of
the
Borrower to perform its obligations under this Agreement.
SECTION 4.12. Year 2000 Compliance. The Borrower and its Subsidiaries
are implementing measures (a) to have all critical business and computer
systems
able to recognize and perform properly date-sensitive functions involving dates
after December 31,1999 (that is, be "Year 2000 Compliant") on or prior to
September 30, 1999 and (b) to reasonably determine (as described in the
Borrower's Quarterly Report on Form 10-Q filed with the Securities and
Exchange Commission in respect of the fiscal quarter of the Borrower ended on
June 30, 1999) that each of its respective key vendors and suppliers will be
Year
2000 Compliant. The advent of the year 2000 and its impact on said critical
business and computer systems and key vendors and suppliers are not reasonably
expected to have a material adverse effect on the business, financial position,
results of operations or prospects of the Borrower and its Consolidated
Subsidiaries, considered as a whole..
36
ARTICLE 5
COVENANTS
The Borrower agrees that, so long as any Bank has any Commitment
|hereunder or any amount payable under any Note remains unpaid:
SECTION 5.01. Information. The Borrower will deliver to each of the
Banks:
(a) as soon as available and in any event within 120 days after
the end of each fiscal year of the Borrower, the audited consolidated
balance sheet of the Borrower and its Consolidated Subsidiaries as of the
end of such fiscal year and the related audited statements of consolidated
income, consolidated cash flows and consolidated shareholders' equity for
such fiscal year, setting forth in each case in comparative form the figures
for the previous fiscal year, all reported on in a manner acceptable to the
Securities and Exchange Commission by ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ LLP or other
independent public accountants of nationally recognized standing;
(b) as soon as available and in any event within 45 days after
the end of each of the first three quarters of each fiscal year of the
Borrower, the condensed consolidated balance sheet of the Borrower and
its Consolidated Subsidiaries as of the end of such quarter, the related
condensed statement of income for such quarter and the related condensed
statements of income and consolidated cash flows for the portion of the
Borrower's fiscal year ended at the end of such quarter, setting forth in the
case of such statements of consolidated income and consolidated cash
flows in comparative form the figures for the corresponding periods of the
Borrower's previous fiscal year, all certified (subject to normal year-end
adjustments) as to fairness of presentation and consistency by the chief
financial officer or the chief accounting officer of the Borrower;
(c) simultaneously with the delivery of each set of financial
statements referred to in clauses (a) and (b) above, a certificate of the chief
financial officer or the chief accounting officer of the Borrower (i) setting
forth in reasonable detail the calculations required to establish whether the
Borrower was in compliance with the requirements of Sections 5.07, 5.08,
5.09 and 5.12 on the date of such financial statements and (ii) stating
whether any Default exists on the date of such certificate and, if any
Default then exists, setting forth the details thereof and the action which
the Borrower is taking or proposes to take with respect thereto;.
37
(d) simultaneously with the delivery of each set of financial
statements referred to in clause (a) above, a statement of the firm of
independent public accountants which reported on such statements (i)
whether anything has come to their attention to cause them to believe that
any Default existed on the date of such statements and (ii) confirming the
calculations set forth in the officer's certificate delivered simultaneously
therewith pursuant to clause (c) above;
(e) within five Domestic Business Days after any officer of the
Borrower obtains knowledge of any Default, if such Default is then
continuing, a certificate of the chief financial officer or the chief
accounting officer of the Borrower setting forth the details thereof and the
action which the Borrower is taking or proposes to take with respect
thereto;
(f) promptly upon the mailing thereof to the shareholders of
the Borrower generally, copies of all financial statements, reports and
proxy statements so mailed;
(g) promptly upon the filing thereof, copies of all registration
statements (other than the exhibits thereto and any registration statements
on Form S-8 or its equivalent) and reports on Forms 10-K, 10-Q and 8-K
(or their equivalents) which the Borrower shall have filed with the
Securities and Exchange Commission;
(h) if and when any member of the ERISA Group (i) gives or is
required to give notice to the PBGC of any "reportable event" (as defined
in Section 4043 of ERISA) with respect to any Plan which might
constitute grounds for a termination of such Plan under Title IV of ERISA,
or knows that the plan administrator of any Plan has given or is required to
give notice of any such reportable event, a copy of the notice of such
reportable event given or required to be given to the PBGC; (ii) receives
notice of complete or partial withdrawal liability under Title IV of ERISA
or notice that any Multiemployer Plan is in reorganization, is insolvent or
has been terminated, which could, when aggregated with any liability
incurred after June 30, 1999 by any member of the ERISA Group as a
result of any other such withdrawal liability, reorganization, insolvency or
termination, give rise to aggregate liabilities of the ERISA Group in excess
of $5,000,000, a copy of such notice; (iii) receives notice from the PBGC
under Title IV of ERISA of an intent to terminate, impose liability (other
than for premiums under Section 4007 of ERISA) in respect of, or appoint
a trustee to administer any Plan, a copy of such notice; (iv) applies for a.
38
waiver of the minimum funding standard under Section 412 of the Internal
Revenue Code, a copy of such application; (v) gives notice of intent to
terminate any Plan under Section 4041(c) of ERISA, a copy of such notice
and other information filed with the PBGC; (vi) gives notice of withdrawal
from any Plan pursuant to Section 4063 of ERISA, which could, when
aggregated with any liability incurred after June 30, 1999 by any member
of the ERISA Group as a result of any other such withdrawal, give rise to
aggregate liabilities of the ERISA Group in excess of $5,000,000, a copy
of such notice; or (vii) fails to make any payment or contribution to any
Plan or Multiemployer Plan or in respect of any Benefit Arrangement or
makes any amendment to any Plan or Benefit Arrangement which has
resulted or could result in the imposition of a Lien or the posting of a bond
or other security, a certificate of the chief financial officer or the chief
accounting officer of the Borrower setting forth details as to such
occurrence and action, if any, which the Borrower or applicable member
of the ERISA Group is required or proposes to take; and
(i) from time to time such additional information regarding the
financial position or business of the Borrower and its Subsidiaries as the
Agent, at the request of any Bank, may reasonably request.
SECTION 5.02. Payment of Obligations. The Borrower will pay and
discharge, and will cause each Subsidiary to pay and discharge, at or before
maturity, all their respective material obligations and liabilities, including,
without
limitation, tax liabilities, except where the same are contested in good faith
by
appropriate proceedings, and will maintain, and will cause each Subsidiary to
maintain, in accordance with generally accepted accounting principles,
appropriate reserves for the accrual of any of the same.
SECTION 5.03. Maintenance of Property; Insurance. (a) The Borrower
will keep, and will cause each Subsidiary to keep, all property useful and
necessary in its business in good working order and condition, ordinary wear
and tear excepted.
(b) The Borrower will maintain, and will cause each Subsidiary to
maintain, with financially sound and reputable insurers, insurance against
liabilities to third parties, casualties affecting property used in its
business and
other risks of the kinds customarily insured against by corporations of
established
reputation engaged in the same or similar business and similarly situated, of
such
types and in such amounts as are customarily carried under similar
circumstances
by such other corporations; provided that, in lieu of any such insurance, the
Borrower or any Subsidiary may maintain a system or systems of self-insurance.
39
and reinsurance which will accord with sound practices of similarly situated
corporations maintaining such systems and with respect to which the Borrower or
such Subsidiary will maintain adequate insurance reserves, all in accordance
with
generally accepted accounting principles and in accordance with sound insurance
principles or practice.
SECTION 5.04. Conduct of Business and Maintenance of Existence. The
Borrower will continue, and will cause each Subsidiary to continue, to engage
in business of the same general type as now conducted by the Borrower and its
Subsidiaries, and will preserve, renew and keep in full force and effect, and
will
cause each Subsidiary to preserve, renew and keep in full force and effect
their
respective corporate existence and their respective rights, privileges and
franchises necessary or desirable in the normal conduct of business; provided
that
nothing in this Section 5.04 shall prohibit (i) any merger or consolidation
permitted by Section 5.10 or (ii) the termination of the corporate existence of
any
Subsidiary (other than a Subsidiary Guarantor) if the Borrower in good faith
determines that such termination is in the best interest of the Borrower and is
not
materially disadvantageous to the Banks.
SECTION 5.05. Compliance with Laws. The Borrower will comply, and
will cause each Subsidiary to comply, in all material respects with all
applicable
laws, ordinances, rules, regulations, and requirements of governmental
authorities
(including, without limitation, Environmental Laws and ERISA and the rules and
regulations thereunder), except where (i) the necessity of compliance therewith
is
contested in good faith by appropriate proceedings or (ii) failures to comply
therewith could not, in the aggregate, have a material adverse effect on the
business, consolidated financial position or consolidated results of operations
of
the Borrower and its Consolidated Subsidiaries.
SECTION 5.06. Inspection of Property, Books and Records. The Borrower
will keep, and will cause each Subsidiary to keep, proper books of record and
account in which full, true and correct entries shall be made of all dealings
and
transactions in relation to its business and activities. The Borrower will
permit,
and will cause its Subsidiaries (except Insignificant Subsidiaries) to permit,
representatives of any Bank, at such Bank's expense, to visit and inspect any
of
their respective properties, to examine and make abstracts from any of their
respective books and records and to discuss their respective affairs, finances
and
accounts with their respective officers, employees and independent accountants,
in
each case to the extent reasonably requested by such Bank to enable it to
evaluate
the credit of the Borrower and the Subsidiary Guarantors, confirm the
Borrower's
compliance with the provisions of the Financing Documents, exercise and enforce
such Bank's rights under the Financing Documents or otherwise make decisions.
40
relating thereto, but subject to any limitations imposed by law or by
confidentiality agreements binding on the Borrower or the relevant Subsidiary.
Such visits, inspections, examinations and discussions shall be conducted at
such
reasonable times and as often as the relevant Bank or Banks may reasonably
request.
SECTION 5.07. Debt. (a) The ratio of Consolidated Debt to Consolidated
Net Worth shall not at any time exceed 1.65 to 1.
(b) Total Debt of all Subsidiaries will at no time exceed $50,000,000;
provided that, for purposes of this subsection (b), such total Debt shall not
include:
(i) Debt of a Subsidiary owing to the Borrower;
(ii) Debt of a Subsidiary owing to another Subsidiary (except, in
the case of Debt held by a Subsidiary that is not wholly owned, directly or
indirectly, by the Borrower, the portion of such Debt allocable, on a pro
rata basis, to the minority interest);
(iii) Guarantees by a Subsidiary of Debt of the Borrower or Debt of
another Subsidiary;
(iv) Debt of a Subsidiary outstanding on June 30, 1999 or any
refinancing of such Debt, provided that the principal amount of
refinancing Debt excluded from total Debt pursuant to this clause (iv) shall
not exceed the principal amount of the Debt refinanced thereby;
(v) Debt of a Subsidiary secured by a purchase money Lien
permitted by Section 5.09(c); provided that the aggregate outstanding
principal amount of all Debt excluded from total Debt pursuant to this
clause (v) shall not at any time exceed $150,000,000; and
(vii) Guarantees by a Subsidiary of Debt of an ESOP Trust.
As used herein, the term "ESOP Trust" means a trust created under an employee
stock ownership plan as defined in Section 407(d)(6) of ERISA which purchases
capital stock of the relevant Subsidiary for the benefit of employees of such
Subsidiary and its subsidiaries.
SECTION 5.08. Minimum Consolidated Net Worth. Consolidated Net
Worth shall not at any time be less than $546,900,000; provided that such
amount.
41
shall be increased (i) as of December 31, 1999 by an amount equal to 50% of the
consolidated net income of the Borrower and its Consolidated Subsidiaries for
the
six months then ended, if such consolidated net income is positive, and (ii) as
of
the last day of each fiscal year thereafter by an amount equal to 50% of the
consolidated net income of the Borrower and its Consolidated Subsidiaries for
such fiscal year, if such consolidated net income is positive.
SECTION 5.09. Negative Pledge. Neither the Borrower nor any Subsidiary
will create, assume or suffer to exist any Lien on any asset now owned or
hereafter acquired by it, except:
(a) Liens existing on the date of this Agreement securing Debt
outstanding on the date of this Agreement in an aggregate principal
amount not exceeding $115,000,000;
(b) any Lien existing on any asset of any corporation at the
time such corporation becomes a Subsidiary and not created in
contemplation of such event at the request of the Borrower or any of its
Subsidiaries or for the benefit of any of their respective creditors;
(c) any purchase money Lien on any property constituting a
fixed asset or a surface or air transportation vehicle used in the freight
business hereafter acquired by the Borrower or any Subsidiary or hereafter
constructed or improved by the Borrower or any Subsidiary, to secure or
provide for the payment of all or a part of the purchase price thereof, or
any Debt incurred to finance the purchase thereof or cost of construction or
cost of improvement of such property and for which a bona fide firm
commitment in writing was executed prior to, contemporaneously with or
within 180 days after acquisition of such property, or the completion of
construction or improvement thereof, as the case may be, provided that no
such Lien shall extend to any other property of the Borrower or any
Subsidiary;
(d) any Lien on any asset of any corporation existing at the
time such corporation is merged or consolidated with or into the Borrower
or a Subsidiary and not created in contemplation of such event at the
request of the Borrower or any of its Subsidiaries or for the benefit of any
of their respective creditors;
(e) any Lien existing on any asset prior to the acquisition
thereof by the Borrower or a Subsidiary and not created in contemplation.
42
of such acquisition at the request of the Borrower or any of its Subsidiaries
or for the benefit of any of their respective creditors;
(f) any Lien arising out of the refinancing, extension, renewal
or refunding of any Debt secured by any Lien permitted by any of the
foregoing clauses of this Section, provided that such Debt is not increased
and is not secured by any additional assets;
(g) any Lien on (i) the common stock of any Subsidiary
Guarantor, but only if after giving effect to such Lien, the Borrower would
own, directly or indirectly, at least 80% of the common stock of such
Subsidiary Guarantor free and clear of Liens or (ii) the common stock of
any other Subsidiary;
(h) Liens arising in the ordinary course of its business which (i)
do not secure Debt, (ii) do not secure any obligation in an amount
exceeding $50,000,000 and (iii) do not in the aggregate materially detract
from the value of its assets or materially impair the use thereof in the
operation of its business;
(i) any Lien on accounts receivable if, immediately after such
Lien arises, the aggregate uncollected balance of all accounts receivable
sold or subjected to Liens by the Borrower and its Subsidiaries (excluding
accounts receivable charged off in accordance with the charge-off policies
applicable to the unsold accounts receivable of the Borrower and its
Subsidiaries) would not exceed 10% of the consolidated accounts
receivable of the Borrower and its Subsidiaries as of the end of its then
most recently ended fiscal quarter; and
(j) Liens not otherwise permitted by the foregoing clauses of
this Section securing Debt or other obligations in an aggregate principal
amount at any time outstanding not to exceed the sum of $15,000,000 plus
10% of Consolidated Net Worth as of the end of the immediately
preceding fiscal quarter of the Borrower.
SECTION 5.10. Consolidations, Mergers and Sales of Assets. The
Borrower will not, and will not permit any Subsidiary to, consolidate or merge
with, or sell, lease or otherwise transfer any of its assets to, any Person,
except
that nothing in this Section 5.10 shall prohibit:
(a) the merger of a Subsidiary into the Borrower,.
43
(b) the merger or consolidation of a Subsidiary with or into
another Person if the corporation surviving such consolidation or merger is
a Subsidiary,
(c) the sale, lease or other transfer of any aircraft either (i) in
the ordinary course of business or (ii) for fair value if after giving effect
thereto, the aggregate consideration received for all aircraft sold, leased or
otherwise transferred under this clause (ii) during any fiscal year of the
Borrower does not exceed $150,000,000; or
(d) any sale, lease or other transfer of any asset (including
aircraft not permitted to be sold, leased or otherwise transferred pursuant
to clause (c) above) either (i) in the ordinary course of business or (ii) for
fair value if after giving effect thereto, the aggregate consideration
received for all of their assets sold, leased or otherwise transferred under
this clause (ii) during any fiscal year of the Borrower does not exceed
$100,000,000.
provided that, in the case of (x) any such merger or consolidation or (y) any
such
sale, lease or other transfer of any asset not in the ordinary course of
business, no
Default shall have occurred and be continuing after giving effect thereto.
SECTION 5.11. Use of Proceeds. The proceeds of the Loans made under
this Agreement will be used by the Borrower for general corporate purposes.
None of such proceeds will be used, directly or indirectly, for the purpose,
whether immediate, incidental or ultimate, of buying or carrying any "margin
stock" within the meaning of Regulation U.
SECTION 5.12. Fixed Charge Coverage. The ratio of Consolidated
EBITDAR to Consolidated Fixed Charges will not, for any period of four
consecutive fiscal quarters, be less than 1.875 to 1.
SECTION 5.13. Transactions with Third Party Affiliates. The Borrower
will not, and will not permit any Subsidiary to, directly or indirectly, pay
any funds to or for the account of, make any investment (whether by acquisition
of stock or indebtedness, by loan, advance, transfer of property, guarantee or
other
agreement to pay, purchase or service, directly or indirectly, any Debt, or
otherwise) in, lease, sell, transfer or otherwise dispose of any assets,
tangible or
intangible, to, or participate in, or effect any transaction in connection with
any
joint enterprise or other joint arrangement with, any Third Party Affiliate;
provided that nothing in this Section 5.13 shall prohibit:.
44
(a) the Borrower from declaring or paying any lawful dividend
so long as, after giving effect thereto, no Default shall have occurred and
be continuing;
(b) the Borrower or any Subsidiary from making sales to or
purchases from any Third Party Affiliate and, in connection therewith,
extending credit or making payments, or from making payments for
services rendered by any Third Party Affiliate, if such sales or purchases
are made or such services are rendered in the ordinary course of business
and on an arm's-length basis;
(c) the Borrower or any Subsidiary from making payments of
principal, interest and premium on any Debt of the Borrower or such
Subsidiary held by a Third Party Affiliate if the terms of such Debt are
established on an arm's-length basis; or
(d) the Borrower or any Subsidiary from participating in, or
effecting any transaction in connection with, any joint enterprise or other
joint arrangement with any Third Party Affiliate if the Borrower or such
Subsidiary participates in the ordinary course of its business and on a basis
no less advantageous than the basis on which such Third Party Affiliate
participates.
ARTICLE 6
DEFAULTS
SECTION 6.01. Events of Default. If one or more of the following events
("Events of Default") shall have occurred and be continuing:
(a) the Borrower shall fail to pay any principal of any Loan
when due, or shall fail to pay within three Domestic Business Days of the
due date thereof any interest, fees or other amount payable hereunder;
(b) the Borrower shall fail to observe or perform any covenant
contained in Sections 5.07 to 5.12, inclusive, or in Section 3.01 of the
Subsidiary Guaranty Agreement;
(c) the Borrower shall fail to observe or perform any covenant
or agreement contained in any Financing Document (other than those.
45
covered by clause (a) or (b) above) for 30 days after written notice thereof
has been given to the Borrower by the Agent at the request of any Bank;
(d) any representation, warranty, certification or statement
made by the Borrower in any Financing Document or any amendment
thereof or in any certificate, financial statement or other document
delivered pursuant to any Financing Document shall prove to have been
incorrect in any material respect when made (or deemed made);
(e) the Borrower or any Subsidiary shall fail to make any
payment in respect of any Material Debt within three Domestic Business
Days after such payment is due or, if longer, within any grace period
otherwise applicable to such payment;
(f) any event or condition shall occur which results in the
acceleration of the maturity of Material Debt or enables the holders of
Material Debt or any Person acting on their behalf to accelerate the
maturity thereof, or any default by the Borrower or any Subsidiary shall
occur which results in the termination of Material Commitments prior to
the scheduled termination thereof or enables Persons extending Material
Commitments to terminate such Material Commitments prior to the
scheduled termination thereof;
(g) the Borrower or any Subsidiary (except Insignificant
Subsidiaries) shall commence a voluntary case or other proceeding seeking
liquidation, reorganization or other relief with respect to itself or its debts
under any bankruptcy, insolvency or other similar law now or hereafter in
effect or seeking the appointment of a trustee, receiver, liquidator,
custodian or other similar official of it or any substantial part of its
property, or shall consent to any such relief or to the appointment of or
taking possession by any such official in an involuntary case or other
proceeding commenced against it, or shall make a general assignment for
the benefit of creditors, or shall fail generally to pay its debts as they
become due, or shall take any corporate action to authorize any of the
foregoing;
(h) an involuntary case or other proceeding shall be
commenced against the Borrower or any Subsidiary (except Insignificant
Subsidiaries) seeking liquidation, reorganization or other relief with
respect to it or its debts under any bankruptcy, insolvency or other similar
law now or hereafter in effect or seeking the appointment of a trustee,
receiver, liquidator, custodian or other similar official of it or any.
46
substantial part of its property, and such involuntary case or other
proceeding shall remain undismissed and unstayed for a period of 60 days;
or an order for relief shall be entered against the Borrower or any
Subsidiary (except Insignificant Subsidiaries) under the federal bankruptcy
laws as now or hereafter in effect;
(i) any member of the ERISA Group shall fail to pay when due
an amount or amounts aggregating in excess of $35,000,000 which it shall
have become liable to pay under Title IV of ERISA; or notice of intent to
terminate a Material Plan shall be filed under Title IV of ERISA by any
member of the ERISA Group, any plan administrator or any combination
of the foregoing; or the PBGC shall institute proceedings under Title IV of
ERISA to terminate, to impose liability (other than for premiums under
Section 4007 of ERISA) in respect of, or to cause a trustee to be appointed
to administer any Material Plan; or a condition shall exist by reason of
which the PBGC would be entitled to obtain a decree adjudicating that any
Material Plan must be terminated; or there shall occur a complete or partial
withdrawal from, or a default, within the meaning of Section 4219(c)(5) of
ERISA, with respect to, one or more Multiemployer Plans which could
cause one or more members of the ERISA Group to incur a current
payment obligation in excess of $35,000,000;
(j) a final judgment or order for the payment of money in
excess of $35,000,000 shall be entered or filed against the Borrower or any
Subsidiary and such judgment or order shall continue unsatisfied,
unvacated and unstayed for a period of 30 days;
(k) any person or group of persons (within the meaning of
Section 13 or 14 of the Securities Exchange Act of 1934, as amended)
shall have acquired beneficial ownership (within the meaning of Rule
13d-3 promulgated by the Securities and Exchange Commission under
said Act) of 30% or more of the outstanding shares of common stock of
the Borrower, or Continuing Directors shall cease to constitute a majority
of the Borrower's board of directors;
(l) the Borrower shall cease to own, directly or indirectly, at
least 80% of the common stock of each Subsidiary Guarantor free and
clear of all Liens; or
(m) the Borrower or any Subsidiary Guarantor shall take any
action that causes the guarantee by any Subsidiary Guarantor set forth in
the Subsidiary Guaranty Agreement to be revoked or invalidated, or to.
47
cease to be in full force and effect (other than pursuant to Section 4.03 of
the Subsidiary Guaranty Agreement), or the Borrower or any Subsidiary
Guarantor (or any Person acting on behalf of the Borrower or any
Subsidiary Guarantor) shall deny or disaffirm any of the obligations of any
Subsidiary Guarantor set forth in the Subsidiary Guaranty Agreement;
then, and in every such event, the Agent shall (i) if requested by the Required
Banks, by notice to the Borrower terminate the Commitments and they shall
thereupon terminate and (ii) if requested by Banks holding Notes evidencing at
least 60% in aggregate principal amount of the Loans outstanding, by notice to
the
Borrower declare the Notes (together with accrued interest thereon) to be, and
the
Notes shall thereupon become, immediately due and payable without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by
the
Borrower; provided that in the case of any of the Events of Default specified
in
clause (g) or (h) above with respect to any Obligor, without any notice to the
Obligors or any other act by the Agent or the Banks, the Commitments shall
thereupon terminate and the Notes (together with accrued interest thereon)
shall
become immediately due and payable without presentment, demand, protest or
other notice of any kind, all of which are hereby waived by the Borrower.
SECTION 6.02. Notice of Default. The Agent shall give notice to the
Borrower under Section 6.01(c) promptly upon being requested to do so by any
Bank and shall thereupon notify all the Banks thereof.
ARTICLE 7
THE AGENT
SECTION 7.01. Appointment and Authorization. Each Bank irrevocably
appoints and authorizes the Agent to take such action as agent on its behalf
and to
exercise such powers under the Financing Documents as are delegated to the
Agent by the terms thereof, together with all such powers as are reasonably
incidental thereto.
SECTION 7.02. Agent and Affiliates. ▇▇▇▇▇▇ Guaranty Trust Company of
New York shall have the same rights and powers under the Financing Documents
as any other Bank and may exercise or refrain from exercising the same as
though
it were not the Agent. ▇▇▇▇▇▇ Guaranty Trust Company of New York and its
affiliates may accept deposits from, lend money to, and generally engage in any
kind of business with the Borrower or any Subsidiary or affiliate of the
Borrower
as if it were not the Agent hereunder..
48
SECTION 7.03. Action by Agent. The obligations of the Agent under the
Financing Documents are only those expressly set forth therein. Without
limiting
the generality of the foregoing, the Agent shall not be required to take any
action
with respect to any Default (except as expressly provided in Article 6) and
shall
not have a fiduciary relationship with any Bank.
SECTION 7.04. Consultation with Experts. The Agent may consult with
legal counsel (who may be counsel for an Obligor), independent public
accountants and other experts selected by it and shall not be liable for any
action
taken or omitted to be taken by it in good faith in accordance with the advice
of
such counsel, accountants or experts.
SECTION 7.05. Liability of Agent. Neither the Agent nor any of its
affiliates nor any of their respective directors, officers, agents or employees
shall
be liable for any action taken or not taken by it in connection herewith (i)
with the
consent or at the request of the Required Banks or (ii) in the absence of its
own
gross negligence or willful misconduct. Neither the Agent nor any of its
affiliates
nor any of their respective directors, officers, agents or employees shall be
responsible for or have any duty to ascertain, inquire into or verify (i) any
statement, warranty or representation made in connection with the Financing
Documents or any borrowing hereunder; (ii) the performance or observance of any
of the covenants or agreements of the Borrower; (iii) the satisfaction of any
condition specified in Article 3, except receipt of items required to be
delivered to
the Agent; or (iv) the validity, effectiveness or genuineness of the Financing
Documents or any other instrument or writing furnished in connection therewith.
The Agent shall not incur any liability by acting in reliance upon any notice,
consent, certificate, statement, or other writing (which may be a bank wire,
telex
or similar writing) believed by it to be genuine or to be signed by the proper
party
or parties.
SECTION 7.06. Indemnification. Each Bank shall, ratably in accordance
with its Percentage, indemnify the Agent, its affiliates and their respective
directors, officers, agents and employees (to the extent not reimbursed by the
Borrower) against any cost, expense (including counsel fees and disbursements),
claim, demand, action, loss or liability (except such as result from such
indemnitees' gross negligence or willful misconduct) that such indemnitees may
suffer or incur in connection with this Agreement or any action taken or
omitted by such indemnitees hereunder.
SECTION 7.07. Credit Decision. Each Bank acknowledges that it has,
independently and without reliance upon the Agent or any other Bank, and based
on such documents and information as it has deemed appropriate, made its own.
49
credit analysis and decision to enter into this Agreement. Each Bank also
acknowledges that it will, independently and without reliance upon the Agent or
any other Bank, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not
taking any action under the Financing Documents.
SECTION 7.08. Successor Agent. The Agent may resign at any time by
giving notice thereof to the Banks and the Borrower. Upon any such resignation,
the Required Banks shall have the right, after consultation with the Borrower,
to
appoint a successor Agent. If no successor Agent shall have been so appointed
by the Required Banks, and shall have accepted such appointment, within 30 days
after the retiring Agent gives notice of resignation, then the retiring Agent
may, on
behalf of the Banks, appoint a successor Agent, which shall be a commercial
bank
organized or licensed under the laws of the United States of America or of any
State thereof and having a combined capital and surplus of at least
$1,000,000,000. Upon the acceptance of its appointment as Agent hereunder by a
successor Agent, such successor Agent shall thereupon succeed to and become
vested with all the rights and duties of the retiring Agent, and the retiring
Agent
shall be discharged from its duties and obligations hereunder. After any
retiring
Agent's resignation hereunder as Agent, the provisions of this Article shall
inure
to its benefit as to any actions taken or omitted to be taken by it while it
was Agent.
SECTION 7.09. Agent's Fee. The Borrower shall pay to the Agent for its
own account fees in the amounts and at the times previously agreed upon between
the Borrower and the Agent.
ARTICLE 8
CHANGE IN CIRCUMSTANCES
SECTION 8.01. Basis for Determining Interest Rate Inadequate or Unfair.
If on or prior to the first day of any Interest Period for any Fixed Rate
Borrowing:
(a) the Agent is advised by the Reference Banks that deposits
in dollars (in the applicable amounts) are not being offered to the
Reference Banks in the relevant market for such Interest Period, or
(b) in the case of CD Loans or Euro-Dollar Loans, Banks
having 50% or more of the aggregate principal amount of the affected.
50
Loans advise the Agent that the Adjusted CD Rate or the Adjusted London
Interbank Offered Rate, as the case may be, as determined by the Agent
will not adequately and fairly reflect the cost to such Banks of funding
their CD Loans or Euro-Dollar Loans, as the case may be, for such Interest
Period,
the Agent shall forthwith give notice thereof to the Borrower and the Banks,
whereupon until the Agent notifies the Borrower that the circumstances giving
rise to such suspension no longer exist, (i) the obligations of the Banks to
make
CD Loans or Euro-Dollar Loans, as the case may be, or to continue or convert
outstanding Loans as or into CD Loans or Euro-Dollar Loans, as the case may be,
shall be suspended and (ii) each outstanding CD Loan or Euro-Dollar Loan, as
the
case may be, shall be converted into a Base Rate Loan on the last day of the
then
current Interest Period applicable thereto, unless the Borrower shall have
elected
pursuant to Section 2.10 to convert such CD Loan or Euro-Dollar Loan into a
Fixed Rate Loan of the other type and the circumstances described in Sections
8.01(a) and 8.01(b) do not exist with respect to such other type. Unless the
Borrower notifies the Agent at least two Domestic Business Days before the date
of any Fixed Rate Borrowing for which a Notice of Borrowing has previously
been given that it elects not to borrow on such date, (i) if such Fixed Rate
Borrowing is a Committed Borrowing, such Borrowing shall instead be made as a
Base Rate Borrowing and (ii) if such Fixed Rate Borrowing is a Money Market
LIBOR Borrowing, the Money Market LIBOR Loans comprising such Borrowing
shall bear interest on the unpaid principal amount thereof for each day from
and including the first day to but excluding the last day of the Interest
Period applicable thereto at the Base Rate for such day.
SECTION 8.02. Illegality. If, on or after the date hereof, the adoption of
any applicable law, rule or regulation, or any change in any applicable law,
rule or
regulation, or any change in the interpretation or administration thereof by
any
governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Bank (or its
Euro-Dollar Lending Office) with any request or directive (whether or not
having
the force of law) of any such authority, central bank or comparable agency
shall
make it unlawful or impossible for any Bank (or its Euro-Dollar Lending Office)
to make, maintain or fund its Euro-Dollar Loans and such Bank shall so notify
the
Agent, the Agent shall forthwith give notice thereof to the other Banks and the
Borrower, whereupon until such Bank notifies the Borrower and the Agent that
the circumstances giving rise to such suspension no longer exist, the
obligation of
such Bank to make Euro-Dollar Loans, or to continue or convert outstanding
Loans as or into Euro-Dollar Loans, shall be suspended. Before giving any
notice to the Agent pursuant to this Section, such Bank shall designate a
different.
51
Euro-Dollar Lending Office if such designation will avoid the need for giving
such notice and will not, in the judgment of such Bank, be otherwise
disadvantageous to such Bank. If such notice is given, each Euro-Dollar Loan of
such Bank then outstanding shall be converted to a Base Rate Loan either (a) on
the last day of the then current Interest Period applicable to such Euro-Dollar
Loan
if such Bank may lawfully continue to maintain and fund such Loan as a Euro-
Dollar
Loan to such day or (b) immediately if such Bank shall determine that it
may not lawfully continue to maintain and fund such Loan as a Euro-Dollar Loan
to such day.
SECTION 8.03. Increased Cost and Reduced Return. (a) If on or after (x)
the date hereof, in the case of any Committed Loan or any obligation to make
Committed Loans or (y) the date of the related Money Market Quote, in the case
of any Money Market Loan, the adoption of any applicable law, rule or
regulation,
or any change in any applicable law, rule or regulation, or any change in the
interpretation or administration thereof by any governmental authority, central
bank or comparable agency charged with the interpretation or administration
thereof, or compliance by any Bank (or its Applicable Lending Office) with any
request or directive (whether or not having the force of law) of any such
authority,
central bank or comparable agency shall impose, modify or deem applicable any
reserve (including, without limitation, any such requirement imposed by the
Board
of Governors of the Federal Reserve System, but excluding (i) with respect to
any
CD Loan any such requirement included in an applicable Domestic Reserve
Percentage and (ii) with respect to any Euro-Dollar Loan any such requirement
included in an applicable Euro-Dollar Reserve Percentage), special deposit,
insurance assessment (excluding, with respect to any CD Loan, any such
requirement reflected in an applicable Assessment Rate) or similar requirement
against assets of, deposits with or for the account of, or credit extended by,
any
Bank (or its Applicable Lending Office) or shall impose on any Bank (or its
Applicable Lending Office) or on the United States market for certificates of
deposit or the London interbank market any other condition affecting its Fixed
Rate Loans, its Note or its obligation to make Fixed Rate Loans and the result
of
any of the foregoing is to increase the cost to such Bank (or its Applicable
Lending Office) of making or maintaining any Fixed Rate Loan, or to reduce the
amount of any sum received or receivable by such Bank (or its Applicable
Lending Office) under this Agreement or under its Note with respect thereto, by
an amount deemed by such Bank to be material, then, within 30 days after demand
by such Bank (with a copy to the Agent), the Borrower shall pay to such Bank
such additional amount or amounts as will compensate such Bank for such
increased cost or reduction..
52
(b) If any Bank shall have determined that, after the date hereof, the
adoption of any applicable law, rule or regulation regarding capital adequacy,
or
any change in any such law, rule or regulation, or any change in the
interpretation
or administration thereof by any governmental authority, central bank or
comparable agency charged with the interpretation or administration thereof, or
any request or directive regarding capital adequacy (whether or not having the
force of law) of any such authority, central bank or comparable agency
(including
any determination by any such authority, central bank or comparable agency
that,
for purposes of capital adequacy requirements, the Commitments hereunder do
not constitute commitments with an original maturity of one year or less), has
or
would have the effect of reducing the rate of return on capital of such Bank
(or its
Parent) as a consequence of such Bank's obligations hereunder to a level below
that which such Bank (or its Parent) could have achieved but for such adoption,
change, request or directive (taking into consideration its policies with
respect to
capital adequacy) by an amount deemed by such Bank to be material, then from
time to time, within 30 days after demand by such Bank (with a copy to the
Agent), the Borrower shall pay to such Bank such additional amount or amounts
as will compensate such Bank (or its Parent) for such reduction.
(c) Each Bank will use its best efforts promptly to notify the Borrower
and the Agent of any event of which it has knowledge, occurring after the date
hereof, which will entitle such Bank to compensation pursuant to this Section
and
will designate a different Applicable Lending Office if such designation will
avoid
the need for, or reduce the amount of, such compensation and will not, in the
judgment of such Bank, be otherwise disadvantageous to such Bank. A certificate
of any Bank claiming compensation under this Section and setting forth the
additional amount or amounts to be paid to it hereunder shall be conclusive in
the
absence of manifest error. In determining such amount, such Bank may use any
reasonable averaging and attribution methods.
SECTION 8.04. Taxes. (a) Any and all payments by the Borrower to or for
the account of any Bank or the Agent hereunder or under any Note shall be made
free and clear of and without deduction for any and all present or future
taxes, duties, levies, imposts, deductions, charges or withholdings, and all
liabilities with
respect thereto, excluding, in the case of each Bank and the Agent, taxes
imposed
on its income, and franchise taxes imposed on it, by the jurisdiction under the
laws of which such Bank or the Agent (as the case may be) is organized or any
political subdivision thereof and, in the case of each Bank, taxes imposed on
its
income, and franchise or similar taxes imposed on it, by the jurisdiction of
such
Bank's Applicable Lending Office or any political subdivision thereof (all such
non-excluded taxes, duties, levies, imposts, deductions, charges, withholdings
and
liabilities being hereinafter referred to as "Taxes"). If the Borrower shall
be.
53
required by law to deduct any Taxes from or in respect of any sum payable
hereunder or under any Note to any Bank or the Agent, (i) the sum payable shall
be increased as necessary so that after making all required deductions
(including
deductions applicable to additional sums payable under this Section 8.04) such
Bank or the Agent (as the case may be) receives an amount equal to the sum it
would have received had no such deductions been made, (ii) the Borrower shall
make such deductions, (iii) the Borrower shall pay the full amount deducted to
the
relevant taxation authority or other authority in accordance with applicable
law
and (iv) the Borrower shall furnish to the Agent, at its address referred to in
Section 9.01, the original or a certified copy of a receipt evidencing payment
thereof.
(b) In addition, the Borrower agrees to pay any present or future stamp
or documentary taxes and any other excise or property taxes, or charges or
similar
levies which arise from any payment made hereunder or under any Note or from
the execution or delivery of, or otherwise with respect to, this Agreement or
any
Note (hereinafter referred to as "Other Taxes").
(c) The Borrower agrees to indemnify each Bank and the Agent for the
full amount of Taxes or Other Taxes (including, without limitation, any Taxes
or
Other Taxes imposed or asserted by any jurisdiction on amounts payable under
this Section 8.04) paid by such Bank or the Agent (as the case may be) and any
liability (including penalties, interest and expenses) arising therefrom or
with
respect thereto. This indemnification shall be made within 30 days from the
date
such Bank or the Agent (as the case may be) makes demand therefor.
(d) Each Bank organized under the laws of a jurisdiction outside the
United States, on or prior to the date of its execution and delivery of this
Agreement in the case of each Bank listed on the signature pages hereof and on
or
prior to the date on which it becomes a Bank in the case of each other Bank,
and
from time to time thereafter if requested in writing by the Borrower (but only
so
long as such Bank remains lawfully able to do so), shall provide the Borrower
with Internal Revenue Service form 1001 or 4224, as appropriate, or any
successor form prescribed by the Internal Revenue Service, certifying that such
Bank is entitled to benefits under an income tax treaty to which the United
States
is a party which reduces the rate of withholding tax on payments of interest or
certifying that the income receivable pursuant to this Agreement is effectively
connected with the conduct of a trade or business in the United States. If the
form
provided by a Bank at the time such Bank first becomes a party to this
Agreement
indicates a United States interest withholding tax rate in excess of zero,
withholding tax at such rate shall be considered excluded from "Taxes" as
defined
in Section 8.04(a)..
54
(e) For any period with respect to which a Bank has failed to provide the
Borrower with the appropriate form pursuant to Section 8.04(d) (unless such
failure is due to a change in treaty, law or regulation, or any change in the
interpretation or administration thereof by any governmental authority,
occurring
subsequent to the date on which a form originally was required to be provided),
such Bank shall not be entitled to indemnification under Section 8.04(a) with
respect to Taxes imposed by the United States; provided that should a Bank,
which is otherwise exempt from or subject to a reduced rate of withholding tax,
become subject to Taxes because of its failure to deliver a form required
hereunder, the Borrower shall take such steps as such Bank shall reasonably
request to assist such Bank to recover such Taxes.
(f) If the Borrower is required to pay additional amounts to or for the
account of any Bank pursuant to this Section 8.04, then such Bank will change
the
jurisdiction of its Applicable Lending Office so as to eliminate or reduce any
such
additional payment which may thereafter accrue if such change, in the judgment
of such Bank, is not otherwise disadvantageous to such Bank.
SECTION 8.05. Base Rate Loans Substituted for Affected Fixed Rate
Loans. (a) If (i) the obligation of any Bank to make, or continue or convert
outstanding Loans as or into, Euro-Dollar Loans has been suspended pursuant to
Section 8.02 or (ii) any Bank has demanded compensation under Section 8.03 or
8.04 with respect to its CD Loans or Euro-Dollar Loans and the Borrower shall,
by at least five Euro-Dollar Business Days' prior notice to such Bank through
the
Agent, have elected that the provisions of this Section 8.05(a) shall apply to
such
Bank, then, unless and until such Bank notifies the Borrower that the
circumstances giving rise to such suspension or demand for compensation no
longer exist, all Loans which would otherwise be made by such Bank as (or
continued as or converted into) CD Loans or Euro-Dollar Loans, as the case may
be, shall be made instead as Base Rate Loans (on which interest and principal
shall be payable contemporaneously with the related Fixed Rate Loans of the
other Banks). If such Bank notifies the Borrower that the circumstances giving
rise to such notice no longer exist, the principal amount of each such Base
Rate
Loan shall be converted into a CD Loan or Euro-Dollar Loan, as the case may be,
on the first day of the next succeeding Interest Period applicable to the
related CD
Loans or Euro-Dollar Loans of the other Banks.
(b) If (i) any Bank has demanded compensation under Section 8.03 with
respect to its CD Loans or Euro-Dollar Loans or (ii) the Borrower has become
obligated to pay any Taxes or other amounts to or for the account of any Bank
pursuant to Section 8.04, and the Borrower shall, by at least five Euro-Dollar.
55
Business Days' prior notice to the Banks through the Agent, have elected that
the
provisions of this Section 8.05(b) shall apply to all of the Banks, then the
Borrower shall, on the fifth Euro-Dollar Business Day following such notice,
prepay in full the then outstanding principal amount of each outstanding
Euro-Dollar Loan or CD Loan, as the case may be, of each Bank, together with
accrued interest thereon.
SECTION 8.06. Substitution of Banks. If (i) any Bank has demanded
compensation under Section 8.03 or (ii) the Borrower has become obligated to
pay
any Taxes or other amounts to or for the account of any Bank pursuant to
Section
8.04 (such Bank, in either case, being called a "Selling Bank"), the Borrower
shall
have the right, with the assistance of the Agent, to seek one or more banks or
other institutions satisfactory to the Borrower and the Agent (collectively,
the
"Purchasing Banks") willing to purchase the Selling Bank's Note and assume the
Commitment of the Selling Bank, all on the terms specified in this Section
8.06.
The Selling Bank shall be obligated to sell its Note to such Purchasing Bank or
Banks (which may include one or more of the Banks) within 15 days after
receiving notice from the Borrower requiring it to do so, at an aggregate price
equal to the outstanding principal amount thereof, plus unpaid interest accrued
thereon to but excluding the date of sale. In connection with any such sale,
and as
a condition thereof, the Borrower shall pay to the Selling Bank all fees
accrued for
its account hereunder to but excluding the date of such sale, plus, if demanded
by
the Selling Bank at least two Domestic Business Days prior to such sale, (i)
the amount of any compensation which would be due to the Selling Bank under
Section 2.14 if the Borrower had prepaid the outstanding Fixed Rate Loans of
the
Selling Bank on the date of such sale and (ii) any additional compensation,
Taxes
or other amounts accrued for its account under Section 8.03 or 8.04, as
applicable,
to but excluding said date (it being understood that the Selling Bank shall
retain
its right to be compensated after the date of such sale for any such accrued
amounts remaining unpaid). Upon such sale, the Purchasing Bank or Banks shall
assume the Commitment of the Selling Bank, and the Selling Bank shall be
released from its obligations hereunder to a corresponding extent. If any
Purchasing Bank is not already one of the Banks, the Selling Bank, as assignor,
such Purchasing Bank, as assignee, the Borrower and the Agent shall enter into
an
assignment and assumption agreement substantially in the form of Exhibit G
hereto, whereupon such Purchasing Bank shall be a Bank party to this Agreement,
shall be deemed to be an Assignee hereunder and shall have all the rights and
obligations of a Bank with a Commitment equal to its ratable share of the
Commitment of the Selling Bank. Upon the consummation of any sale pursuant
to this Section 8.06, the Selling Bank, the Agent and the Borrower shall make
appropriate arrangements so that, if required, each Purchasing Bank receives a
new Note..
56
ARTICLE 9
MISCELLANEOUS
SECTION 9.01. Notices. All notices, requests and other communications
to any party hereunder shall be in writing (including bank wire, telex,
facsimile
transmission or similar writing) and shall be given to such party: (x) in the
case of
the Borrower or the Agent, at its address or telex number or facsimile number
set
forth on the signature pages hereof, (y) in the case of any Bank, at its
address or
telex number or facsimile number set forth in its Administrative Questionnaire
or
(z) in the case of any party, such other address or telex number or facsimile
number as such party may hereafter specify for the purpose by notice to the
Agent
and the Borrower. Each such notice, request or other communication shall be
effective (i) if given by telex, when such telex is transmitted to the telex
number
specified in this Section and the appropriate answerback is received, (ii) if
given
by facsimile transmission, when such facsimile is transmitted to the facsimile
transmission number specified in or pursuant to this Section 9.01 and
telephonic
confirmation of receipt thereof is received, (iii) if given by mail, 72 hours
after
such communication is deposited in the mails with first class postage prepaid,
addressed as aforesaid or (iv) if given by any other means, when delivered at
the
address specified in this Section; provided that notices to the Agent under
Article
2 or Article 8 shall not be effective until received.
SECTION 9.02. No Waivers. No failure or delay by the Agent or any Bank
in exercising any right, power or privilege under any Financing Document shall
operate as a waiver thereof nor shall any single or partial exercise thereof
preclude
any other or further exercise thereof or the exercise of any other right, power
or
privilege. The rights and remedies herein provided shall be cumulative and not
exclusive of any rights or remedies provided by law.
SECTION 9.03. Expenses; Indemnification. (a) The Borrower shall pay (i)
all out-of-pocket expenses of the Agent, including fees and disbursements of
special counsel for the Agent, in connection with the preparation and
administration of the Financing Documents, any waiver or consent thereunder or
any amendment thereof or any Default thereunder or any event or condition
reasonably alleged by any Bank to be a possible Default thereunder and (ii) if
an
Event of Default occurs, all out-of-pocket expenses incurred by the Agent and
each Bank, including fees and disbursements of counsel, in connection with such
Event of Default and collection, bankruptcy, insolvency and other enforcement
proceedings resulting therefrom.
(b) The Borrower agrees to indemnify the Agent and each Bank, their
respective affiliates and the respective directors, officers, agents and
employees of.
57
the foregoing (each an "Indemnitee") and hold each Indemnitee harmless from
and against any and all liabilities, losses, damages, costs and expenses of any
kind, including, without limitation, the reasonable fees and disbursements of
counsel, which may be incurred by such Indemnitee in connection with any
investigative, administrative or judicial proceeding (whether or not such
Indemnitee shall be designated a party thereto) brought or threatened relating
to or
arising out of the Financing Documents or any actual or proposed use of
proceeds
of Loans hereunder; provided that no Indemnitee shall have the right to be
indemnified hereunder for such Indemnitee's own gross negligence or willful
misconduct as determined by a court of competent jurisdiction.
SECTION 9.04. Sharing of Set-offs. Each Bank agrees that if it shall, by
exercising any right of set-off or counterclaim or otherwise, receive payment
of a
proportion of the aggregate amount of principal and interest due with respect
to
any Note held by it which is greater than the proportion received by any other
Bank in respect of the aggregate amount of principal and interest due with
respect
to any Note held by such other Bank, the Bank receiving such proportionately
greater payment shall purchase such participations in the Notes held by the
other
Banks, and such other adjustments shall be made, as may be required so that all
such payments of principal and interest with respect to the Notes held by the
Banks shall be shared by the Banks pro rata; provided that nothing in this
Section
shall impair the right of any Bank to exercise any right of set-off or
counterclaim
it may have and to apply the amount subject to such exercise to the payment of
indebtedness of the Borrower other than its indebtedness under the Notes. The
Borrower agrees, to the fullest extent it may effectively do so under
applicable
law, that any holder of a participation in a Note, whether or not acquired
pursuant
to the foregoing arrangements, may exercise rights of set-off or counterclaim
and
other rights with respect to such participation as fully as if such holder of a
participation were a direct creditor of the Borrower in the amount of such
participation.
SECTION 9.05. Amendments and Waivers. Any provision of this
Agreement or the Notes may be amended or waived if, but only if, such
amendment or waiver is in writing and is signed by the Borrower and the
Required Banks (and, if the rights or duties of the Agent are affected thereby,
by
the Agent); provided that no such amendment or waiver shall:
(a) unless signed by all the Banks, (i) increase or decrease the
Commitment of any Bank (except for a ratable decrease in the
Commitments of all Banks) or subject any Bank to any additional
obligation, (ii) reduce the principal of or rate of interest on any Loan or
any fees hereunder, (iii) postpone the date fixed for any payment of.
58
principal of or interest on any Loan or any fees hereunder or for any
termination of any Commitment or (iv) change any provision of this
Section or change the percentage of the Commitments or of the aggregate
unpaid principal amount of the Notes, or the number of Banks, which shall
be required for the Banks or any of them to take any action under this
Section or any other provision of the Financing Documents;
(b) unless signed by a Designated Entity or its Designating Bank,
(i) subject such Designated Entity to any additional obligation, (ii) affect
its rights hereunder (unless the rights of all the Banks hereunder are
similarly affected) or (iii) change this clause 9.05(b).
SECTION 9.06. Successors and Assigns. (a) The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and
their respective successors and assigns, except that the Borrower may not
assign
or otherwise transfer any of its rights under this Agreement without the prior
written consent of all Banks.
(b) Any Bank may at any time grant to one or more banks or other
institutions (each a "Participant") participating interests in its Commitment
or any
or all of its Loans. Within five Domestic Business Days after such grant,
unless
such grant consists solely of a participating interest in the Money Market
Loans of
such Bank, such Bank shall notify the Borrower of the name of such Participant
and the amount of its participating interest. In the event of any such grant by
a
Bank of a participating interest to a Participant, whether or not upon notice
to the
Borrower or the Agent, such Bank shall remain responsible for the performance
of
its obligations hereunder, and the Borrower and the Agent shall continue to
deal
solely and directly with such Bank in connection with such Bank's rights and
obligations under this Agreement. Any agreement pursuant to which any Bank
may grant such a participating interest shall provide that such Bank shall
retain the
sole right and responsibility to enforce the obligations of the Borrower
hereunder
including, without limitation, the right to approve any amendment, modification
or waiver of any provision of this Agreement; provided that such participation
agreement may provide that such Bank will not agree to any modification,
amendment or waiver of this Agreement described in clause (i), (ii) or (iii) of
Section 9.05 without the consent of the Participant. The Borrower agrees that
each Participant shall, to the extent provided in its participation agreement,
be
entitled to the benefits of Article 8 with respect to its participating
interest. An
assignment or other transfer which is not permitted by subsection (c) or (d)
below
shall be given effect for purposes of this Agreement only to the extent of a
participating interest granted in accordance with this subsection (b)..
59
(c) Any Bank may at any time assign to one or more banks or other
institutions (each an "Assignee") all, or, subject to the next sentence, a
proportionate part of all, of its rights and obligations under this Agreement
and the
Notes, and such Assignee shall assume such rights and obligations, pursuant to
an
Assignment and Assumption Agreement in substantially the form of Exhibit G
hereto (an "Assignment and Assumption Agreement") executed by such Assignee
and such transferor Bank, with (and subject to) the subscribed consent of the
Borrower (which shall not be unreasonably withheld) and the Agent; provided
that
if an Assignee is another Bank or an affiliate of such transferor Bank, such
consent shall not be required; and provided further that such assignment may,
but
need not, include rights of the transferor Bank in respect of outstanding Money
Market Loans. No assignment of only a proportionate part of the rights and
obligations of a Bank under this Agreement and the Notes may be made unless
each of (i) the part assigned (i.e., the "Assigned Amount" set forth in the
related
Assignment and Assumption Agreement) and (ii) the part retained by the
transferor Bank equals or exceeds $10,000,000. Upon execution and delivery of
an Assignment and Assumption Agreement and payment by such Assignee to
such transferor Bank of an amount equal to the purchase price agreed between
such transferor Bank and such Assignee, such Assignee shall be a Bank party to
this Agreement and shall have all the rights and obligations of a Bank with a
Commitment as set forth in such Assignment and Assumption Agreement, and the
transferor Bank shall be released from its obligations hereunder to a
corresponding extent, and no further consent or action by any party shall be
required. Upon the consummation of any assignment pursuant to this subsection
(c), the transferor Bank, the Agent and the Borrower shall make appropriate
arrangements so that, if required, a new Note is issued to the Assignee. In
connection with any such assignment, the transferor Bank shall pay to the Agent
an administrative fee for processing such assignment in the amount of $2,500.
If
the Assignee is not incorporated under the laws of the United States of America
or
a state thereof, it shall deliver to the Borrower and the Agent certification
as to
exemption from deduction or withholding of any United States federal income
taxes in accordance with Section 8.04.
(d) Any Bank may at any time assign all or any portion of its rights
under this Agreement and its Note to a Federal Reserve Bank. No such
assignment shall release the transferor Bank from its obligations hereunder.
(e) No Assignee, Participant or other transferee of any Bank's rights
shall be entitled to receive any greater payment under Section 8.03 or 8.04
than such Bank would have been entitled to receive with respect to the rights
transferred, unless such transfer is made with the Borrower's prior written
consent
or by reason of the provisions of Section 8.02, 8.03 or 8.04 requiring such
Bank to.
60
designate a different Applicable Lending Office under certain circumstances or
at
a time when the circumstances giving rise to such greater payment did not
exist.
SECTION 9.07. Designated Entities. (a) Subject to the provisions of this
subsection (a), any Bank may at any time designate an Eligible Designee to
provide all or a portion of the Loans to be made by such Bank pursuant to this
Agreement; provided that such designation shall not be effective unless the
Borrower and the Administrative Agent consent thereto (which consents shall not
be unreasonably withheld). When a Bank and its Eligible Designee shall have
signed an agreement substantially in the form of Exhibit H hereto (a
"Designation
Agreement") and the Borrower and the Administrative Agent shall have signed
their respective consents thereto, such Eligible Designee shall become a
Designated Entity for purposes of this Agreement. The Designating Bank shall
thereafter have the right to permit such Designated Entity to provide all or a
portion of the Loans to be made by such Designating Bank pursuant to Section
2.01 or 2.03, and the making of such Loans or portion thereof shall satisfy the
obligation of the Designating Bank to the same extent, and as if, such Loans or
portion thereof were made by the Designating Bank. As to any Loans or portion
thereof made by it, each Designated Entity shall have all the rights that a
Bank
making such Loans or portion thereof would have had under this Agreement and
otherwise; provided that (x) its voting rights under this Agreement shall be
exercised solely by its Designating Bank and (y) its Designating Bank shall
remain solely responsible to the other parties hereto for the performance of
such
Designated Entity's obligations under this Agreement, including its obligations
in
respect of the Loans or portion thereof made by it. No additional Note shall be
required to evidence the Loans or portion thereof made by a Designated Entity;
and the Designating Bank shall be deemed to hold its Note as agent for its
Designated Entity to the extent of the Loans or portion thereof funded by such
Designated Entity. Each Designating Bank shall act as administrative agent for
its
Designated Entity and give and receive notices and other communications on its
behalf. Any payments for the account of any Designated Entity shall be paid to
its
Designating Bank as administrative agent for such Designated Entity and neither
the Borrower nor the Administrative Agent shall be responsible for any
Designating Bank's application of such payments. In addition, any Designated
Entity may, with notice to (but without the prior written consent of) the
Borrower
and the Administrative Agent, (i) assign all or portions of its interest in any
Loans
to its Designating Bank or to any financial institutions consented to by the
Borrower and the Administrative Agent that provide liquidity and/or credit
facilities to or for the account of such Designated Entity to support the
funding of
Loans or portions thereof made by it and (ii) disclose on a confidential basis
any
non-public information relating to its Loans or portions thereof to any rating.
61
agency, commercial paper dealer or provider of any guarantee, surety, credit or
liquidity enhancement to such Designated Entity.
(b) Each party to this Agreement agrees that it will not institute against,
or join any other person in instituting against, any Designated Entity any
bankruptcy, insolvency, reorganization or other similar proceeding under any
federal or state bankruptcy or similar law, for one year and a day after all
outstanding senior indebtedness of such Designated Entity is paid in full. The
Designating Bank for each Designated Entity agrees to indemnify, save, and hold
harmless each other party hereto for any loss, cost, damage and expense arising
out of its inability to institute any such proceeding against such Designated
Entity.
This subsection (b) shall survive the termination of this Agreement.
SECTION 9.08. Collateral. Each of the Banks represents to the Agent and
each of the other Banks that it in good faith is not relying upon any "margin
stock" (as defined in Regulation U) as collateral in the extension or
maintenance
of the credit provided for in this Agreement.
SECTION 9.09. Governing Law; Submission to Jurisdiction. This
Agreement and each Note shall be governed by and construed in accordance with
the laws of the State of New York. The Borrower hereby submits to the
nonexclusive jurisdiction of the United States District Court for the Southern
District of New York and of any New York State court sitting in New York City
for purposes of all legal proceedings arising out of or relating to the
Financing
Documents or the transactions contemplated thereby. The Borrower irrevocably
waives, to the fullest extent permitted by law, any objection which it may now
or
hereafter have to the laying of the venue of any such proceeding brought in
such a
court and any claim that any such proceeding brought in such a court has been
brought in an inconvenient forum.
SECTION 9.10. Counterparts; Integration. This Agreement may be signed
in any number of counterparts, each of which shall be an original, with the
same
effect as if the signatures thereto and hereto were upon the same instrument.
This
Agreement constitutes the entire agreement and understanding among the parties.
62
hereto and supersedes any and all prior agreements and understandings, oral or
written, relating to the subject matter hereof.
SECTION 9.11. Waiver of Jury Trial. EACH OF THE BORROWER, THE
AGENT AND THE BANKS HEREBY IRREVOCABLY WAIVES ANY AND
ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING
OUT OF OR RELATING TO THE FINANCING DOCUMENTS OR THE
TRANSACTIONS CONTEMPLATED THEREBY.
SECTION 9.12. Confidentiality. The Agent and each Bank agrees to keep
confidential any proprietary or financial information obtained by the Agent or
such Bank, as the case may be, based on a review of the books and records of
the
Borrower or any Subsidiary pursuant to Section 5.06 and any other information
to
the extent such information has been stated by the Borrower to be confidential;
provided that nothing herein shall prevent the Agent or any Bank from
disclosing
such information (i) to the Agent or any other Bank in connection with the
transactions contemplated by the Financing Documents, (ii) to the officers,
directors, employees, agents, attorneys and accountants of such party and its
affiliates who have a need to know such information in accordance with
customary banking practices and who receive such information having been made
aware of the restrictions set forth in this Section, (iii) upon the order of
any court
or administrative agency, (iv) upon the request or demand of any regulatory
agency or authority having jurisdiction over such party, (v) which has been
publicly disclosed, (vi) which has been obtained from any Person other than the
Borrower and its Subsidiaries, provided that such Person is not known to it to
be
bound by a confidentiality agreement with the Borrower or its Subsidiaries or
known to it to be otherwise prohibited from transmitting the information to it
by a
contractual, legal or fiduciary obligation, (vii) in connection with the
exercise of
any remedy under the Financing Documents or (viii) to any actual or proposed
participant or assignee of all or any of its rights under the Financing
Documents,
provided that such proposed participant or assignee shall have agreed in
writing,
for the benefit of the Borrower as a third-party beneficiary, to be bound by
the provisions of this Section.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be duly executed by their respective authorized officers as of the day and
year
first above written.
CNF TRANSPORTATION INC.
By /s/R. ▇▇▇ ▇▇▇▇▇▇▇
Title: Vice President Treasurer
▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Facsimile number: (▇▇▇) ▇▇▇-▇▇▇▇
Telephone number: (▇▇▇) ▇▇▇-▇▇▇▇
▇▇▇▇▇▇ GUARANTY TRUST COMPANY
OF NEW YORK, as Agent
By /s/R. ▇▇▇▇▇ ▇▇▇▇▇
Title: Associate
▇.▇. ▇▇▇▇▇▇ Services Inc.
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention:▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Facsimile number: (▇▇▇) ▇▇▇-▇▇▇▇
Telephone number: (▇▇▇) ▇▇▇-▇▇▇▇
with a copy to:
▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Attention:▇▇▇▇▇ ▇▇▇▇▇
Telex number: 177615
Facsimile number: (▇▇▇) ▇▇▇-▇▇▇▇
Telephone number: (▇▇▇) ▇▇▇-▇▇▇▇.
▇▇▇▇▇▇ GUARANTY TRUST
COMPANY OF NEW YORK
By /s/R. ▇▇▇▇▇ ▇▇▇▇▇
Name: R. ▇▇▇▇▇ ▇▇▇▇▇
Title: Associate
BANK OF AMERICA, N.A.
By: /s/▇▇▇▇ McDock
Name: ▇▇▇▇ McDock
Title: Principal
BANK ONE, N.A.
By: /s/▇▇▇▇▇▇▇▇ ▇. St. ▇▇▇▇▇
Name: ▇▇▇▇▇▇▇▇ ▇. St. ▇▇▇▇▇
Title: Vice President
CREDIT SUISSE FIRST BOSTON
By: /s/▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Managing Director
By: /s/▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Title: Vice President
THE INDUSTRIAL BANK OF
JAPAN, LIMITED
By: /s/▇▇▇▇▇▇ ▇▇▇▇▇▇
Name: ▇▇▇▇▇▇ ▇▇▇▇▇▇
Title: Senior Vice President
MELLON BANK, N.A.
By: /s/▇. ▇▇▇▇
Name: ▇. ▇▇▇▇
Title: Vice President
THE BANK OF NEW YORK
By: /s/▇▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇
Name: ▇▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇
Title: Vice President
COMMITMENT SCHEDULE
BANK COMMITMENT
▇▇▇▇▇▇ Guaranty Trust Company of New York $15,000,000
Bank of America, N.A. $15,000,000
Bank One, N.A. $15,000,000
Credit Suisse First Boston $15,000,000
The Industrial Bank of Japan, Limited $15,000,000
Mellon Bank $15,000,000
The Bank of New York $10,000,000
Total $100,000,000.