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EXHIBIT 4.05
LOAN AGREEMENT
($50,000,000 TERM LOAN)
DATED AS OF MARCH 30, 2000
AMONG
OCEANEERING INTERNATIONAL, INC.,
AS BORROWER,
▇▇▇▇▇ FARGO BANK (TEXAS), NATIONAL ASSOCIATION,
AS AGENT, LEAD ARRANGER AND BOOK MANAGER AND AS A LENDER,
AND
THE OTHER LENDERS NOW OR HEREAFTER
PARTIES HERETO
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TABLE OF CONTENTS
Page
1. DEFINITIONS....................................................................................1
1.1 Certain Defined Terms................................................................1
1.2 Miscellaneous.......................................................................18
2. COMMITMENTS AND LOANS.........................................................................18
2.1 Loans...............................................................................18
2.2 Terminations or Reductions of Commitments...........................................19
2.3 Commitment Fees. [omitted intentionally]...........................................19
2.4 Several Obligations.................................................................19
2.5 Notes...............................................................................19
2.6 Use of Proceeds.....................................................................19
3. BORROWINGS, PAYMENTS, PREPAYMENTS AND INTEREST OPTIONS........................................20
3.1 Borrowings..........................................................................20
3.2 Prepayments; Payments; Past Due Payments............................................20
3.3 Interest Options....................................................................21
4. PAYMENTS; PRO RATA TREATMENT; COMPUTATIONS, ETC...............................................26
4.1 Payments............................................................................26
4.2 Pro Rata Treatment..................................................................27
4.3 Certain Actions, Notices, Etc.......................................................27
4.4 NonReceipt of Funds by Agent........................................................28
4.5 Sharing of Payments, Etc............................................................28
5. CONDITIONS PRECEDENT..........................................................................29
5.1 Initial Loans.......................................................................29
5.2 All Loans...........................................................................30
6. REPRESENTATIONS AND WARRANTIES................................................................30
6.1 Organization........................................................................31
6.2 Financial Statements................................................................31
6.3 Enforceable Obligations; Authorization..............................................31
6.4 Other Debt..........................................................................31
6.5 Litigation..........................................................................31
6.6 Taxes...............................................................................32
6.7 Regulations U and X.................................................................32
6.8 Subsidiaries........................................................................32
6.9 No Untrue or Misleading Statements..................................................32
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6.10 ERISA...............................................................................32
6.11 Investment Company Act..............................................................32
6.12 Public Utility Holding Company Act..................................................33
6.13 Fiscal Year.........................................................................33
6.14 Compliance..........................................................................33
6.15 Environmental Matters...............................................................33
6.16 Agreements..........................................................................33
6.17 Year 2000...........................................................................33
7. AFFIRMATIVE COVENANTS.........................................................................34
7.1 Taxes, Existence, Regulations, Property, Etc........................................34
7.2 Financial Statements and Information................................................34
7.3 Financial Tests.....................................................................35
7.4 Inspection..........................................................................35
7.5 Further Assurances..................................................................36
7.6 Books and Records...................................................................36
7.7 Insurance...........................................................................36
7.8 Notice of Certain Matters...........................................................36
7.9 Capital Adequacy....................................................................36
7.10 ERISA Information and Compliance....................................................37
8. NEGATIVE COVENANTS............................................................................38
8.1 Limitations on Indebtedness and Preferred Stock of Restricted Subsidiaries..........38
8.2 Priority Liabilities................................................................39
8.3 Limitations on Liens................................................................39
8.4 Dividends, Stock Purchases and Restricted Investments...............................42
8.5 Mergers, Consolidations and Sales of Assets.........................................44
8.6 Limitation on Restricted Agreements.................................................47
8.7 Nature of Business..................................................................47
8.8 Transactions with Affiliates........................................................47
8.9 Designation of Subsidiaries.........................................................47
9. DEFAULTS......................................................................................49
9.1 Events of Default...................................................................49
9.2 Right of Setoff.....................................................................51
9.3 Remedies Cumulative.................................................................51
10. AGENT.........................................................................................51
10.1 Appointment, Powers and Immunities..................................................51
10.2 Reliance............................................................................52
10.3 Defaults............................................................................53
10.4 Material Written Notices............................................................53
10.5 Rights as a Lender..................................................................53
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10.6 Indemnification.....................................................................53
10.7 NonReliance on Agent and Other Lenders..............................................54
10.8 Failure to Act......................................................................54
10.9 Resignation or Removal of Agent.....................................................54
10.10 No Partnership......................................................................55
10.11 Authority of Agent..................................................................55
11. MISCELLANEOUS.................................................................................55
11.1 Waiver..............................................................................55
11.2 Notices.............................................................................55
11.3 Expenses, Etc.......................................................................56
11.4 Indemnification.....................................................................56
11.5 Amendments, Etc.....................................................................57
11.6 Successors and Assigns..............................................................57
11.7 Limitation of Interest..............................................................60
11.8 Survival............................................................................60
11.9 Captions............................................................................61
11.10 Counterparts........................................................................61
11.11 Governing Law.......................................................................61
11.12 Severability........................................................................61
11.13 Tax Forms...........................................................................61
11.14 Conflicts Between This Agreement and the Other Loan Documents.......................62
11.15 Limitation on Charges; Substitute Lenders; NonDiscrimination........................62
11.16 Confidentiality.....................................................................62
EXHIBITS
A - Request for Extension of Credit
B - Rate Designation Notice
C - Note
D - Assignment and Acceptance
E - Compliance Certificate
F - Subsidiaries
G - Existing Affiliates
H - Existing Investments
I - Existing Indebtedness and Liens
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LOAN AGREEMENT
THIS LOAN AGREEMENT (this "Agreement") is made and entered into as of
March 30, 2000 (the "Effective Date"), by and among OCEANEERING INTERNATIONAL,
INC., a Delaware corporation (together with its permitted successors and
assigns, herein called the "Borrower"); each of the lenders which is or may from
time to time become a party hereto (individually, a "Lender" and, collectively,
the "Lenders"), and ▇▇▇▇▇ FARGO BANK (TEXAS), N. A. ("▇▇▇▇▇ Fargo"), a national
banking association, as Administrative Agent, Lead Arranger and Book Manager (in
such capacity, together with its successors in such capacity, the "Agent").
The parties hereto agree as follows:
1. DEFINITIONS.
1.1 Certain Defined Terms.
In this Agreement, terms defined above shall have the meanings ascribed
to them above. Unless a particular term, word or phrase is otherwise defined or
the context otherwise requires, capitalized terms, words and phrases used herein
or in the Loan Documents (as hereinafter defined) have the following meanings
(all definitions that are defined in this Agreement or in the Loan Documents in
the singular have the same meanings when used in the plural and vice versa):
ADDITIONAL INTEREST means the aggregate of all amounts accrued or paid
pursuant to the Notes or any of the other Loan Documents (other than interest on
the Notes at the Stated Rate) which, under applicable laws, are or may be deemed
to constitute interest on the indebtedness evidenced by the Notes or any other
amounts owing under any Loan Document.
ADJUSTED LIBOR means, with respect to each Interest Period applicable
to a LIBOR Borrowing, a rate per annum equal to the quotient, expressed as a
percentage, of (a) LIBOR with respect to such Interest Period divided by (b)
1.0000 minus the Eurodollar Reserve Requirement in effect on the first day of
such Interest Period.
AFFILIATE means any Person controlling, controlled by or under common
control with any other Person. For purposes of this definition, "control"
(including "controlled by" and "under common control with") means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such Person, whether through the
ownership of voting securities or otherwise.
AGREEMENT means this Loan Agreement, as it may from time to time be
amended, modified, restated or supplemented.
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ANNUAL FINANCIAL STATEMENTS means the annual financial statements of
Borrower and its subsidiaries, including all notes thereto, which statements
shall include a balance sheet as of the end of the fiscal year relating thereto
and an income statement and a statement of cash flows for such fiscal year, all
setting forth in comparative form the corresponding figures from the previous
fiscal year, all prepared in conformity with GAAP in all material respects, and
accompanied by the opinion (without a "going concern" or like exception and
without qualification or exception as to the scope of such audit) of independent
certified public accountants of recognized national standing, which shall state
that such financial statements present fairly in all material respects the
consolidated financial position of the applicable Persons as of the date thereof
and the results of operations of the applicable Persons for the period covered
thereby in conformity with GAAP. As long as Borrower files an annual report on
Form 10-K with the Securities and Exchange Commission, such report and related
financial statements, including notes thereto and opinion of independent
certified public accountants, included thereon shall be considered the "Annual
Financial Statements".
ASSIGNMENT AND ACCEPTANCE shall have the meaning ascribed to such term
in Section 11.6(b) hereof.
BANKRUPTCY CODE means the United States Bankruptcy Code, as amended,
and any successor statute.
BASE RATE means for any day a rate per annum equal to the lesser of (a)
the then applicable Margin Percentage from time to time in effect plus the
greater of (1) the Prime Rate for that day and (2) the Federal Funds Rate for
that day plus 1/2 of 1% per annum or (b) the Ceiling Rate. If for any reason
Agent shall have determined (which determination shall be prima facie evidence
of the correctness thereof) that it is unable to ascertain the Federal Funds
Rate for any reason, including, without limitation, the inability or failure of
Agent to obtain sufficient quotations in accordance with the terms hereof, the
Base Rate shall, until the circumstances giving rise to such inability no longer
exist, be the lesser of (a) the Prime Rate plus the then applicable Margin
Percentage from time to time in effect or (b) the Ceiling Rate.
BASE RATE BORROWING means that portion of the principal balance of the
Loans at any time bearing interest at the Base Rate.
BUSINESS DAY means any day other than a day on which commercial banks
are authorized or required to close in San Francisco, California.
CAPITALIZED LEASE means any lease the obligation for Rentals with
respect to which is required to be capitalized on a consolidated balance sheet
of the lessee and its subsidiaries in accordance with GAAP.
CEILING RATE means, on any day, with respect to any Lender, the maximum
nonusurious rate of interest, if any, permitted for that day under the law then
applicable to such Lender, stated as a rate per annum. On each day, if any, that
Chapter 1D establishes the Ceiling Rate for any Lender, the Ceiling Rate for
such Lender shall be the "weekly ceiling" (as defined in Section 303 of the
Texas
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Finance Code) for that day. Agent may from time to time, as to current and
future balances, implement any other ceiling under the Texas Finance Code or
Chapter 1D by notice to Borrower, if and to the extent applicable to any Lender
and permitted by the Texas Finance Code or Chapter 1D. Without notice to
Borrower or any other person or entity, the Ceiling Rate shall automatically
fluctuate upward and downward as and in the amount by which such maximum
nonusurious rate of interest permitted by applicable law fluctuates.
Notwithstanding any choice of law set forth herein or in any other Loan
Document, to the maximum extent permitted under applicable laws, any Lender may
elect to have the usury laws of another jurisdiction apply to the Note and the
Loans held by such Lender.
CHANGE OF CONTROL shall be deemed to have occurred if any person (as
such term is used in Section 13(d) and Section 14(d)(2) of the Exchange Act as
in effect on the date of the Closing) or related persons constituting a group
(as such term is used in Rule 13d-5 under the Exchange Act), other than an
Affiliate described on Exhibit G,
(i) become the "beneficial owners" (as such term is
used in Rule 13d-3 under the Exchange Act as in effect on the
date hereof), directly or indirectly, of more than 50% of the
total voting power of all classes then outstanding of
Borrower's Voting Stock, or
(ii) acquire after the date hereof (x) the power to
elect, appoint or cause the election or appointment of at
least a majority of the members of the board of directors of
Borrower, through beneficial ownership of the capital stock of
Borrower or otherwise, or (y) all or substantially all of the
properties and assets of Borrower.
CHAPTER 1D means Chapter 1D of Title 79, Texas Rev. Civ. Stats. 1925,
as amended.
CODE means the Internal Revenue Code of 1986, as amended, as now or
hereafter in effect, together with all regulations, rulings and interpretations
thereof or thereunder by the Internal Revenue Service.
COMMITMENT means, as to any Lender, the obligation, if any, of such
Lender to make Loans in an aggregate principal amount at any one time
outstanding up to (but not exceeding) the amount, if any, set forth opposite
such Lender's name on the signature pages hereof under the caption "Commitment",
or otherwise provided for in an Assignment and Acceptance Agreement (as the same
may be reduced from time to time pursuant to Section 2.2 hereof).
COMMITMENT PERCENTAGE means, as to any Lender, the percentage
equivalent of a fraction the numerator of which is the amount of such Lender's
Commitment (or if the Commitments have terminated, such Lender's outstanding
Loans) and the denominator of which is the aggregate amount of the Commitments
of all Lenders (or if the Commitments have terminated, the aggregate amount of
all outstanding Loans).
COMPLIANCE CERTIFICATE shall have the meaning given to it in Section
7.2(c) hereof.
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CONSOLIDATED ADJUSTED NET WORTH means as of the date of any
determination thereof Consolidated Net Worth excluding, to the extent included
in the determination of Consolidated Net Worth, any translation gains or losses
affecting cumulative foreign currency translation adjustments as determined in
accordance with GAAP.
CONSOLIDATED EBITDA for any period means the sum of (a)(i) Consolidated
Net Income during such period plus (to the extent deducted in determining
Consolidated Net Income), (ii) all provisions for any Federal, state or local
income taxes made by Borrower and its Restricted Subsidiaries during such
period, (iii) all provisions for depreciation and amortization (other than
amortization of debt discount) made by Borrower and its Restricted Subsidiaries
during such period, (iv) any other non-cash charge to the extent such non-cash
charge reduces Consolidated Net Income (as reduced by any adjustment for the
amount of cash pay-outs of non-cash charges from prior fiscal periods), and (v)
Consolidated Interest Expense during such period, minus (b) any gains or losses
on the sale or other disposition of Investments or fixed or capital investments
(other than gains or losses in the ordinary course of business as determined in
accordance with GAAP), and any taxes on such excluded gains and any tax
deductions or credits on account of any such excluded losses, all determined on
a consolidated basis in accordance with GAAP.
CONSOLIDATED FIXED CHARGES for any period means on a consolidated basis
the sum of (a) Consolidated Interest Expense payable during such period plus (b)
the scheduled principal payments for the previous 12 months (excluding any
principal payments on the refinancing or extensions of the Revolving Facility).
CONSOLIDATED INDEBTEDNESS means all Indebtedness of Borrower and its
Restricted Subsidiaries, determined on a consolidated basis eliminating
intercompany items.
CONSOLIDATED INTEREST EXPENSE means for any period all interest
(including the interest component on Rentals on Capitalized Leases) and all
amortization of debt discount and expense on any particular Indebtedness
(including, without limitation, payment-in-kind, zero coupon and other like
Securities) of Borrower and its Restricted Subsidiaries for which such
calculations are being made as determined in accordance with GAAP. Computations
of Consolidated Interest Expense on a pro-forma basis for Indebtedness having a
variable interest rate shall be calculated at the rate in effect on the date of
any determination.
CONSOLIDATED NET INCOME for any period means the gross revenues of
Borrower and its Restricted Subsidiaries for such period less all expenses and
other proper charges (including taxes on income), determined on a consolidated
basis after eliminating earnings or losses attributable to outstanding Minority
Interests, but excluding in any event:
(a) the proceeds of any life insurance policy;
(b) net earnings and losses of any Restricted Subsidiary of Borrower
accrued prior to the date it became a Restricted Subsidiary of Borrower;
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(c) net earnings and losses of any corporation (other than a Restricted
Subsidiary of Borrower), substantially all the assets of which have been
acquired in any manner by Borrower or any of its Restricted Subsidiaries,
realized by such corporation prior to the date of such acquisition;
(d) net earnings and losses of any corporation (other than a Restricted
Subsidiary of Borrower) with which Borrower or a Restricted Subsidiary of
Borrower shall have consolidated or which shall have merged into or with
Borrower or a Restricted Subsidiary of Borrower prior to the date of such
consolidation or merger;
(e) net earnings of any business entity (other than a Restricted
Subsidiary of Borrower) in which Borrower or any Restricted Subsidiary of
Borrower has an ownership interest unless such net earnings shall have actually
been received by Borrower or such Restricted Subsidiary of Borrower in the form
of cash distributions;
(f) any portion of the net earnings of any Restricted Subsidiary of
Borrower which for any reason is unavailable for payment of dividends to
Borrower or any other Restricted Subsidiary of Borrower;
(g) earnings and losses resulting from any reappraisal, revaluation,
write-up or write-down of assets other than in the ordinary course of business;
(h) any reversal of any contingency reserve to the extent such
contingency reserve was taken prior to the date of the Effective Date, but
including in any determination of Consolidated Net Income changes in estimates
made in accordance with GAAP; and
(i) any other extraordinary gain or loss, including, without
limitation, the cumulative effect of changes to GAAP.
CONSOLIDATED NET WORTH means, as of the date of any determination
thereof the amount of the capital stock accounts (net of treasury stock, at
cost) plus (or minus in the case of a deficit) the surplus in retained earnings
of Borrower and its Restricted Subsidiaries as determined in accordance with
GAAP.
CONSOLIDATED TOTAL CAPITALIZATION means as of the date of the end of
the most recent prior fiscal quarter, the sum of (a) Consolidated Indebtedness
plus (b) Consolidated Adjusted Net Worth.
CONTROLLED GROUP means all members of a controlled group of
corporations and all trades or businesses (whether or not incorporated) under
common control which, together with Borrower, are treated as a single employer
under Section 414 of the Code.
CORPORATION means any corporation, limited liability company,
partnership, joint venture, joint stock association, business trust and other
business entity.
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DEBT TO CAPITALIZATION RATIO means, as of any day, the ratio, of (a)
Consolidated Indebtedness as of such date to (b) Consolidated Total
Capitalization as of such date.
DEFAULT means an Event of Default or an event which with notice or
lapse of time or both would, unless cured or waived, become an Event of Default.
DISTRIBUTION means in respect of Borrower and its Restricted
Subsidiaries:
(a) dividends or other distributions on capital stock (including,
without limitation, preferred stock) of a corporation (except dividends or other
distributions payable solely in shares of common stock of such corporation and
dividends to Borrower by any of its Restricted Subsidiaries); and
(b) redemption, acquisition or retirement of any shares of its capital
stock or warrants, rights or other options to purchase any shares of its capital
stock (other than the redemption, acquisition or retirement by Borrower or any
of its Restricted Subsidiaries of any shares of capital stock of a Restricted
Subsidiary of Borrower).
DOLLARS AND $ means lawful money of the United States of America.
ENVIRONMENTAL CLAIM means any third party (including Governmental
Authorities and employees) action, lawsuit, claim or proceeding (including
claims or proceedings at common law or under the Occupational Safety and Health
Act or similar laws relating to safety of employees) which seeks to impose
liability for (i) noise; (ii) pollution or contamination of the air, surface
water, ground water or land or the clean-up of such pollution or contamination;
(iii) solid, gaseous or liquid waste generation, handling, treatment, storage,
disposal or transportation; (iv) exposure to Hazardous Substances; (v) the
safety or health of employees or (vi) the manufacture, processing, distribution
in commerce or use of Hazardous Substances. An "Environmental Claim" includes,
but is not limited to, a common law action, as well as a proceeding to issue,
modify or terminate an Environmental Permit, or to adopt or amend a regulation
to the extent that such a proceeding attempts to redress violations of an
applicable permit, license, or regulation as alleged by any Governmental
Authority.
ENVIRONMENTAL LIABILITIES means all liabilities arising from any
Environmental Claim, Environmental Permit or Requirement of Environmental Law
under any theory of recovery, at law or in equity, and whether based on
negligence, strict liability or otherwise, including but not limited to:
remedial, removal, response, abatement, investigative, monitoring, personal
injury and damage to Property or injuries to persons, and any other related
costs, expenses, losses, damages, penalties, fines, liabilities and obligations,
and all costs and expenses necessary to cause the issuance, reissuance or
renewal of any Environmental Permit including reasonable attorneys' fees and
court costs.
ENVIRONMENTAL PERMIT means any permit, license, approval or other
authorization under any applicable Legal Requirement relating to pollution or
protection of health or the environment,
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including laws, regulations or other requirements relating to emissions,
discharges, releases or threatened releases of pollutants, contaminants or
hazardous substances or toxic materials or wastes into 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 or Hazardous Substances.
ERISA means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and all rules, regulations, rulings and
interpretations adopted by the Internal Revenue Service or the U.S. Department
of Labor thereunder.
EURODOLLAR RATE means for any day during an Interest Period for a LIBOR
Borrowing a rate per annum equal to the lesser of (a) the sum of (1) the
Adjusted LIBOR in effect on the first day of such Interest Period plus (2) the
then applicable Margin Percentage from time to time in effect and (b) the
Ceiling Rate. Each Eurodollar Rate is subject to adjustments as provided for in
Sections 3.3(c) and 11.15 hereof.
EURODOLLAR RESERVE REQUIREMENT means, on any day, that percentage
(expressed as a decimal fraction and rounded, if necessary, to the next highest
one ten thousandth [0.0001]) which is in effect on such day for determining all
reserve requirements (including, without limitation, basic, supplemental,
marginal and emergency reserves) applicable to "Eurocurrency liabilities," as
currently defined in Regulation D. Each determination of the Eurodollar Reserve
Requirement by Agent shall be conclusive and binding, absent manifest error, and
may be computed using any reasonable averaging and attribution method.
EVENT OF DEFAULT shall have the meaning assigned to it in Section 9.1
hereof.
FEDERAL FUNDS RATE means, for any day, a fluctuating interest rate per
annum equal for such day to the weighted average of the rates on overnight
Federal funds transactions with members of the Federal Reserve System arranged
by Federal funds brokers, as published for such day (or, if such day is not a
Business Day, for the next preceding Business Day) by the Federal Reserve Bank
of New York, or, if such rate is not so published for any such day which is a
Business Day, the average of the quotations for such day on such transactions
received by Agent from three Federal funds brokers of recognized standing
selected by Agent in its sole and absolute discretion.
FIXED CHARGE COVERAGE RATIO means, as of the end of any fiscal quarter,
the ratio, of (a) the sum of Consolidated EBITDA for the four quarter period
preceding such day to (b) Consolidated Fixed Charges for such four quarter
period.
FUNDING LOSS means, with respect to (a) Borrower's payment of principal
of a LIBOR Borrowing on a day prior to the last day of the applicable Interest
Period; (b) Borrower's failure to borrow a LIBOR Borrowing on the date specified
by Borrower; (c) Borrower's failure to make any prepayment of the Loans (other
than Base Rate Borrowings) on the date specified by Borrower, or (d) any
cessation of a Eurodollar Rate to apply to the Loans or any part thereof
pursuant to Section 3.3, in each case whether voluntary or involuntary, any
loss, expense, penalty, premium or
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liability actually incurred by any Lender (including but not limited to any loss
or expense incurred by reason of the liquidation or reemployment of deposits or
other funds acquired by any Lender to fund or maintain a Loan).
GAAP means generally accepted accounting principles as in effect from
time to time in the United States of America.
GOVERNMENTAL AUTHORITY means any foreign governmental authority, the
United States of America, any State of the United States, and any political
subdivision of any of the foregoing, and any central bank, agency, department,
commission, board, bureau, court or other tribunal having jurisdiction over
Agent, any Lender, Borrower or their respective Property.
GUARANTY means, with respect to any Person, any obligation (except the
endorsement in the ordinary course of business of negotiable instruments for
deposit or collection) of such Person guaranteeing or in effect guaranteeing any
Indebtedness, dividend or other obligation (other than performance obligations
(other than obligations for the payment of borrowed money)) of any other Person
in any manner, whether directly or indirectly, including (without limitation)
obligations incurred through an agreement, contingent or otherwise, by such
Person:
(a) to purchase such Indebtedness or obligation or any
property constituting security therefore;
(b) to advance or supply funds (i) for the purchase or payment
of such Indebtedness or obligation, or (ii) to maintain any working
capital or other balance sheet condition or any income statement
condition of any other Person or otherwise to advance or make available
funds for the purchase or payment of such Indebtedness or obligation;
(c) to lease properties or to purchase properties or services
primarily for the purpose of assuring the owner of such Indebtedness or
obligation of the ability of any other Person to make payment of the
Indebtedness or obligation; or
(d) otherwise to assure the owner of such Indebtedness or
obligation against loss in respect thereof.
In any computation of the Indebtedness or other liabilities of the obligor under
any Guaranty, the Indebtedness or other obligations that are the subject of such
Guaranty shall be assumed to be direct obligations of such obligor.
HAZARDOUS SUBSTANCE means petroleum products and any hazardous or toxic
waste or substance defined or regulated as such from time to time by any law,
rule, regulation or order described in the definition of "Requirements of
Environmental Law".
INDEBTEDNESS with respect to any Person means, at any time, without
duplication,
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(a) its liabilities for borrowed money;
(b) its liabilities for the deferred purchase price of
property acquired by such Person (excluding accounts payable arising in
the ordinary course of business but including all liabilities created
or arising under any conditional sale or other title retention
agreement with respect to any such property);
(c) all liabilities appearing on its balance sheet in
accordance with GAAP in respect of Capitalized Leases;
(d) all liabilities for borrowed money secured by any Lien
with respect to any property owned by such Person (whether or not it
has assumed or otherwise become liable for such liabilities);
(e) all its liabilities in respect of standby letters of
credit or instruments serving a similar function issued or accepted for
its account by banks and other financial institutions (other than those
representing obligations for performance guarantees);
(f) Swaps of such Person; and
(g) any Guaranty of such Person with respect to liabilities
(other than performance guaranties) of a type described in any of
clauses (a) through (f) hereof;
provided, that in the case of computations of "Indebtedness" of Borrower or any
of its Restricted Subsidiary, notwithstanding clause (d) above, "Indebtedness"
shall not include Indebtedness secured by Liens permitted under Section 8.3(h).
INTEREST COVERAGE RATIO means, as of the end of any fiscal quarter, the
ratio, of (a) Consolidated EBITDA for the four quarter period preceding such day
to (b) Consolidated Interest Expense for such four quarter period.
INTEREST OPTIONS means the Base Rate and each Eurodollar Rate, and
"Interest Option" means any of them.
INTEREST PAYMENT DATES means (a) for Base Rate Borrowings, July 1, 2000
and the first day of each April, July, October and January thereafter prior to
the Maturity Date, and the Maturity Date; and (b) for LIBOR Borrowings, the end
of the applicable Interest Period (and if such Interest Period exceeds three
months' duration, quarterly, commencing on the first quarterly anniversary of
the first day of such Interest Period) and the Maturity Date.
INTEREST PERIOD means, for each LIBOR Borrowing, a period commencing on
the date such LIBOR Borrowing began and ending on the numerically corresponding
day which is, subject to availability as set forth in Section 3.3(c)(iii), 1, 2,
3 or 6 months thereafter, as Borrower shall elect in accordance herewith;
provided, (1) unless Agent shall otherwise consent, no Interest Period with
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respect to a LIBOR Borrowing shall commence on a date earlier than three
Business Days after this Agreement shall have been fully executed; (2) any
Interest Period with respect to a LIBOR Borrowing which would otherwise end on a
day which is not a LIBOR Business Day shall be extended to the next succeeding
LIBOR Business Day, unless such LIBOR Business Day falls in another calendar
month, in which case such Interest Period shall end on the next preceding LIBOR
Business Day; (3) any Interest Period with respect to a LIBOR Borrowing which
begins on the last LIBOR 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 end on the last LIBOR Business Day of the
appropriate calendar month, and (4) no Interest Period for a Loan shall ever
extend beyond the Maturity Date.
INVESTMENTS means all investments, in cash or by delivery of property,
made directly or indirectly in any property or assets or in any Person, whether
by acquisition of shares of capital stock, Indebtedness or other obligations or
Securities or by loan, advance, capital contribution or otherwise; provided that
"Investments" shall not mean or include routine investments in property to be
used or consumed in the ordinary course of business.
LEGAL REQUIREMENT means any law, statute, ordinance, decree,
requirement, order, judgment, rule, or regulation (or interpretation of any of
the foregoing) of, and the terms of any license or permit issued by, any
Governmental Authority, whether presently existing or arising in the future.
LIBOR means, for each Interest Period for any LIBOR Borrowing, the rate
per annum (rounded upwards, if necessary, to the nearest 1/16th of 1%) equal to
the average of the offered quotations appearing on Telerate Page 3750 (or if
such Telerate Page shall not be available, any successor or similar service as
may be selected by Agent and Borrower) as of 9:00 a.m., San Francisco,
California time (or as soon thereafter as practicable) on the day two LIBOR
Business Days prior to the first day of such Interest Period for deposits in
United States dollars having a term comparable to such Interest Period and in an
amount comparable to the principal amount of the LIBOR Borrowing to which such
Interest Period relates. If none of such Telerate Page 3750 nor any successor or
similar service is available, then "LIBOR" shall mean, with respect to any
Interest Period for any applicable LIBOR Borrowing, the rate of interest per
annum, rounded upwards, if necessary, to the nearest 1/16th of 1%, quoted by
Agent at or before 9:00 a.m., San Francisco, California time (or as soon
thereafter as practicable), on the date two LIBOR Business Days before the first
day of such Interest Period, to be the arithmetic average of the prevailing
rates per annum at the time of determination and in accordance with the then
existing practice in the applicable market, for the offering to Agent by one or
more prime banks selected by Agent in its sole discretion, in the London
interbank market, of deposits in United States dollars for delivery on the first
day of such Interest Period and having a maturity equal to the length of such
Interest Period and in an amount equal (or as nearly equal as may be) to the
LIBOR Borrowing to which such Interest Period relates. Each determination by
Agent of LIBOR shall be prima facie evidence of the correctness thereof, and may
be computed using any reasonable averaging and attribution method.
LIBOR BORROWING means each portion of the principal balance of the
Loans at any time bearing interest at a Eurodollar Rate.
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LIBOR BUSINESS DAY means a Business Day on which transactions in United
States dollar deposits between lenders may be carried on in the London interbank
market.
LIEN means any mortgage, pledge, charge, encumbrance, security
interest, collateral assignment or other lien or restriction of any kind,
whether based on common law, constitutional provision, statute or contract, and
shall include reservations, exceptions, encroachments, easements, rights of way,
covenants, conditions, restrictions and other title exceptions. For the purposes
of this Agreement, Borrower or any of its Subsidiaries shall be deemed to be the
owner of any property which it has acquired or holds subject to a conditional
sale agreement, Capitalized Lease or other arrangement pursuant to which title
to the property has been retained by or vested in some other Person for security
purposes and such retention or vesting shall constitute a Lien.
LOANS means the loans provided for in Section 2.1 hereof.
LOAN DOCUMENTS means, collectively, this Agreement, the Notes, all
instruments and agreements now or hereafter executed or delivered by Borrower to
Agent or any Lender pursuant to any of the foregoing or in connection with the
Obligations or any commitment regarding the Obligations, and all amendments,
modifications, renewals, extensions, increases and rearrangements of, and
substitutions for, any of the foregoing.
LONG-TERM LEASE means any lease of real or personal property (other
than a Capitalized Lease) having an original term, including any period for
which the lease may be renewed or extended at the option of the lessor, of more
than one year.
MAJORITY LENDERS means, at any time while no Loans are outstanding, two
or more Lenders having greater than 51% of the aggregate amount of Commitments,
and at any time while Loans are outstanding, two or more Lenders having greater
than 51% of the aggregate amount of Loans outstanding plus available Commitments
outstanding.
MARAD INDEBTEDNESS means Indebtedness of Borrower or any of its
Restricted Subsidiaries owed to, or guaranteed by, the U.S. Maritime
Administration and incurred in connection with the acquisition or purchase of
fixed assets useful and intended to be used in carrying on the business of
Borrower or any of its Restricted Subsidiaries, provided that with respect to
such Indebtedness, none of the property or assets of Borrower or any of its
Restricted Subsidiaries, other than the fixed asset so acquired, shall be,
directly or indirectly, liable for or secure in any manner whatsoever the
payment thereof.
MARGIN PERCENTAGE means on and after March 30, 2000, the applicable per
annum percentage set forth at the appropriate intersection in the table shown
below, based on the Debt to Capitalization Ratio as of the last day of the most
recently ended fiscal quarter of Borrower calculated by Agent as soon as
practicable after receipt by Agent of all financial reports required under this
Agreement with respect to such fiscal quarter (including a Compliance
Certificate) (provided, however, that if the Margin Percentage is increased as a
result of the reported Debt to Capitalization Ratio, such increase shall be
retroactive to the date that Borrower was obligated to
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deliver such financial reports to Agent pursuant to the terms of this Agreement
and provided further, however, that if the Margin Percentage is decreased as a
result of the reported Debt to Capitalization Ratio, and such financial reports
are delivered to Agent not more than 10 calendar days after the date required to
be delivered pursuant to the terms of this Agreement, such decrease shall be
retroactive to the date that Borrower was obligated to deliver such financial
reports to Agent pursuant to the terms of this Agreement):
Debt to Borrowings LIBOR Borrowings Base Rate
Capitalization Ratio Margin Percentage Margin Percentage
-------------------- ----------------- -----------------
Greater than or equal to 50% 1.25 0.00
Greater than or equal to 47.5%
but less than 50% 1.125 0.00
Greater than or equal to 45%
but less than 47.5% 1.00 0.00
Greater than or equal to 40%
but less than 45% 0.875 0.00
Less than 40% 0.75 0.00
MATERIAL means material in relation to the business, operations,
affairs, financial condition, assets or properties of Borrower and its
Restricted Subsidiaries taken as a whole.
MATERIAL ADVERSE EFFECT means a material adverse effect on (a) the
business, operations, affairs, financial condition, assets or properties of
Borrower and its Restricted Subsidiaries taken as a whole, or (b) the ability of
Borrower to perform its obligations under this Agreement, the Notes or the Loan
Documents, or (c) the validity or enforceability of this Agreement or the Notes
or the Loan Documents.
MATURITY DATE means the maturity of the Notes, April 1, 2004.
MINORITY INTERESTS means any shares of stock of any class of a
Restricted Subsidiary of Borrower (other than directors' qualifying shares or
Regulatory Shares as required by law) that are not owned by Borrower and/or one
or more of its Restricted Subsidiaries. Minority Interests shall be valued by
valuing Minority Interests constituting preferred stock at the voluntary or
involuntary liquidating value of such preferred stock, whichever is greater, and
by valuing Minority Interests constituting common stock at the book value of
capital and surplus applicable thereto adjusted, if necessary, to reflect any
changes from the book value of such common stock required by the foregoing
method of valuing Minority Interests in preferred stock.
MOPU shall have the meaning assigned to such term in Section 2.6
hereof.
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NOTES shall have the meaning assigned to such term in Section 2.5
hereof.
OBLIGATIONS means, as at any date of determination thereof, the sum of
the following: (i) the aggregate principal amount of Loans outstanding hereunder
on such date plus (ii) all other outstanding liabilities, obligations and
indebtedness of Borrower under this Agreement, any Note or any other Loan
Document on such date plus (iii) obligations, liabilities and indebtedness of
Borrower to the Lenders or any or some of them or their Affiliates under Swaps.
ORGANIZATIONAL DOCUMENTS means, with respect to a corporation, the
certificate of incorporation, articles of incorporation and bylaws of such
corporation; with respect to a partnership, the partnership agreement
establishing such partnership and with respect to a trust, the instrument
establishing such trust and with respect to any other Person, the agreements or
instruments pursuant to which such Person was formed; in each case including any
and all modifications thereof and any and all future modifications thereof.
PAST DUE RATE means, on any day, a rate per annum equal to the lesser
of (i) the Ceiling Rate for that day or (ii) the Base Rate plus the Margin
Percentage for Base Rate Borrowings then in effect plus 2% per annum.
PBGC means the Pension Benefit Guaranty Corporation or any entity
succeeding to any or all of its functions under ERISA.
PERSON means any individual, Corporation, trust, limited liability
company, unincorporated organization, Governmental Authority or any other form
of entity.
PLAN means an employee pension benefit plan which is covered by Title
IV of ERISA or subject to the minimum funding standards under Section 412 of the
Code and is either (a) maintained by Borrower or any member of the Controlled
Group for employees of Borrower or any member of the Controlled Group or (b)
maintained pursuant to a collective bargaining agreement or any other
arrangement under which more than one employer makes contributions and to which
Borrower or any member of the Controlled Group is then making or accruing an
obligation to make contributions or has within the preceding five plan years
made contributions.
PREFERRED STOCK means any class of capital stock of a corporation that
is preferred over any other class of capital stock of such corporation as to the
payment of dividends or the payment of any amount upon liquidation or
dissolution of such corporation.
PRIME RATE means, at any time, the rate of interest most recently
announced within ▇▇▇▇▇ Fargo at its Payment Office in San Francisco as its Prime
Rate, with the understanding that ▇▇▇▇▇ Fargo's Prime Rate is one of its base
rates and serves as the basis upon which effective rates of interest are
calculated for those loans making reference thereto, and is evidenced by the
recording thereof after its announcement in such internal publication or
publications as ▇▇▇▇▇ Fargo may
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designate. Each change in the Prime Rate will be effective on the day the change
is announced within ▇▇▇▇▇ Fargo. The Prime Rate is a reference rate and does not
necessarily represent the lowest or best rate or a favored rate, and ▇▇▇▇▇ Fargo
and each Lender disclaims any statement, representation or warranty to the
contrary. ▇▇▇▇▇ Fargo or any Lender may make commercial loans or other loans at
rates of interest at, above or below the Prime Rate.
PAYMENT OFFICE means the payment office of Agent, presently located at
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇, A/C 4081-657421.
PRIORITY LIABILITY means, as of the date of any determination thereof,
(a) any Indebtedness of Borrower secured by a Lien created pursuant to Section
8.3(l) hereof and (b) any Indebtedness and any Preferred Stock of Restricted
Subsidiaries other than Indebtedness or Preferred Stock permitted under Section
8.1(a)(ii).
PROPER FORM means in form and substance reasonably satisfactory to
Agent.
PROPERTY means any interest in any kind of property or asset, whether
real, personal or mixed, tangible or intangible.
QUARTERLY DATES means the first day of each April, July, October and
January, provided that if any such date is not a Business Day, then the relevant
Quarterly Date shall be the next succeeding Business Day.
QUARTERLY FINANCIAL STATEMENTS means the quarterly financial statements
of Borrower and its subsidiaries, which statements shall include a balance sheet
as of the end of such fiscal quarter and an income statement and a statement of
cash flows for such fiscal quarter and for the fiscal year to date, subject to
normal year-end adjustments, all setting forth in comparative form the
corresponding figures as of the end of and for the corresponding fiscal quarter
of the preceding year, prepared in accordance with GAAP in all material respects
except that such statements are condensed and exclude detailed footnote
disclosures and attested by the chief financial officer or other authorized
officer of Borrower as fairly presenting, in all material respects, the
consolidated financial condition of the applicable Persons as of such date. As
long as Borrower files a quarterly report on Form 10-Q with the Securities and
Exchange Commission, such report and related financial statements, including
notes thereto, shall be considered the "Quarterly Financial Statements".
RATE DESIGNATION DATE means that Business Day which is (a) in the case
of Base Rate Borrowings, 9:00 a.m., San Francisco, California time, on the date
one Business Day preceding the date of such borrowing and (b) in the case of
LIBOR Borrowings, 9:00 a.m., San Francisco, California time, on the date three
LIBOR Business Days preceding the first day of any proposed Interest Period.
RATE DESIGNATION NOTICE means a written notice substantially in the
form of Exhibit B.
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REGULATION D means Regulation D of the Board of Governors of the
Federal Reserve System from time to time in effect and includes any successor or
other regulation relating to reserve requirements applicable to member banks of
the Federal Reserve System.
REGULATORY CHANGE means, with respect to any Lender, any change on or
after the Effective Date in any Legal Requirement (including, without
limitation, Regulation D) or the adoption or change on or after such date of any
interpretation, directive or request applying to a class of lenders including
such Lender under any Legal Requirements (whether or not having the force of
law) by any Governmental Authority.
REGULATORY SHARES means, with respect to any Person, shares of the
capital stock of such Person required to be issued as qualifying shares to
directors or shares issued to Persons other than Borrower in response to
regulatory requirements of foreign jurisdictions pursuant to a resolution of the
Board of Directors of such Person.
REQUEST FOR EXTENSION OF CREDIT means a request for extension of credit
duly executed by any responsible officer, which may include the president, the
chief executive officer, the chief financial officer, any vice president or the
treasurer of Borrower or any other officer of Borrower with responsibility for
the administration of this Agreement, appropriately completed and substantially
in the form of Exhibit A attached hereto.
REQUIREMENTS OF ENVIRONMENTAL LAW means all requirements imposed by any
law (including for example and without limitation The Resource Conservation and
Recovery Act and The Comprehensive Environmental Response, Compensation, and
Liability Act), rule, regulation, or order of any federal, state or local
executive, legislative, judicial, regulatory or administrative agency, board or
authority in effect at the applicable time which relate to (i) noise; (ii)
pollution, protection or clean-up of the air, surface water, ground water or
land; (iii) solid, gaseous or liquid waste generation, treatment, storage,
disposal or transportation; (iv) exposure to Hazardous Substances; (v) the
safety or health of employees or (vi) regulation of the manufacture, processing,
distribution in commerce, use, discharge or storage of Hazardous Substances.
RESPONSIBLE OFFICER means any Senior Financial Officer and any other
officer of Borrower with responsibility for the administration of the relevant
portion of this Agreement.
RESTRICTED INVESTMENTS means all Investments, other than:
(a) Investments by Borrower and its Restricted Subsidiaries in
and to Wholly-owned Restricted Subsidiaries, including any Investment
in a corporation which, after giving effect to such Investment, will
become a Wholly-owned Restricted Subsidiary;
(b) Investments representing loans or advances in the usual
and ordinary course of business to officers and employees for expenses
incidental to carrying on the business of Borrower or any of its
Restricted Subsidiaries;
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(c) Investments in property or assets to be used in the
ordinary course of the business of Borrower and its Restricted
Subsidiaries as described on Exhibit H of this Agreement;
(d) Investments in commercial paper of corporations organized
under the laws of the United States or any state thereof and loan
participations maturing in 270 days or less from the date of issuance
which, at the time of acquisition by Borrower or any of its Restricted
Subsidiaries, are accorded a rating of "A-1" or better by Standard &
Poor's Ratings Group, a division of ▇▇▇▇▇▇-▇▇▇▇, Inc., a New York
corporation, or "P-1" or better by ▇▇▇▇▇'▇ Investors Service, Inc.;
(e) Investments in direct obligations in the United States of
America or any agency or instrumentality of the United States of
America, the payment or guarantee of which constitutes a full faith and
credit obligation of the United States of America, in either case,
maturing within twelve months from the date of acquisition thereof;
(f) Investments in direct obligations of other governments
maturing within twelve months from the date of acquisition thereof by
Borrower or a Restricted Subsidiary of Borrower; provided that at the
time of such acquisition, the long-term Indebtedness of such government
is rated "AAA" by Standard & Poor's Ratings Group or by ▇▇▇▇▇'▇
Investors Service, Inc.;
(g) Investments in certificates of deposit and time deposits
maturing within one year from the date of issuance thereof, issues by a
bank or trust company organized under the laws of the United States or
any State thereof, having either (i) capital, surplus and undivided
profits aggregating at least $100,000,000 or (ii) total assets of
$1,000,000,000;
(h) Investments in repurchase agreements with respect to any
Security described in clause (e) entered into with a depository
institution or trust company acting as principal described in clause
(g) if such repurchase agreements: (i) are by their terms to be
performed by the repurchase obligor and such repurchase agreements are
deposited with a bank or trust company of the type described in clause
(g) and (ii) mature within 90 days from the date of execution and
delivery thereof; and
(i) Investments of Borrower not described in the foregoing
clauses (a) through (h); provided that the aggregate amount of all such
Investments shall not at the time any Investment is made within the
limitations of this clause (i) exceed 15% of Consolidated Adjusted Net
Worth.
RESTRICTED SUBSIDIARY means any Subsidiary which is not an Unrestricted
Subsidiary.
REVOLVING FACILITY means the $80,000,000 Revolving Credit Facility
evidenced by a Loan Agreement (and any amendment, modification, refinancing or
replacement thereof), dated as of
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October 23, 1998, among Chase Bank of Texas, National Association, as agent,
Borrower and certain other lenders.
SECRETARY'S CERTIFICATE means a certificate, in Proper Form, of the
Secretary or an Assistant Secretary of a corporation certifying (a) that
attached thereto are true and correct copies of resolutions of the Board of
Directors of such corporation authorizing the execution, delivery and
performance of the Loan Documents to be executed by such corporation; (b) the
incumbency and signature of the officer of such corporation executing such Loan
Documents on behalf of such corporation, and (c) that attached thereto are true
and correct copies of the Organizational Documents of such corporation.
SECURITIES ACT means the Securities Act of 1933, as amended from time
to time.
SECURITY shall have the same meaning as in Section 2(1) of the
Securities Act.
SENIOR FINANCIAL OFFICER means the chief executive officer, chief
financial officer, principal accounting officer, treasurer or controller of
Borrower.
SENIOR INDEBTEDNESS shall mean all Indebtedness for borrowed money of
Borrower which is not expressed to be subordinate or junior in rank to any other
Indebtedness for borrowed money of Borrower.
STATED RATE means, with respect to any Lender, the effective weighted
per annum rate of interest applicable to the Loans made by such Lender;
provided, that if on any day such rate shall exceed the Ceiling Rate for that
day, the Stated Rate shall be fixed at the Ceiling Rate on that day and on each
day thereafter until the total amount of interest accrued at the Stated Rate on
the unpaid principal balances of the Notes plus the Additional Interest equals
the total amount of interest which would have accrued if there had been no
Ceiling Rate. Without notice to Borrower or any other Person, the Stated Rate
shall automatically fluctuate upward and downward in accordance with the
provisions of this definition.
SUBSIDIARY means, as to a particular parent Corporation, any
Corporation of which more than 50% of the indicia of equity rights (whether
outstanding capital stock or otherwise) is at the time directly or indirectly
owned by such parent Corporation.
SUBSIDIARY STOCK is defined in Section 8.5(c).
SWAPS means, with respect to any Person, payment obligations with
respect to interest rate swaps, currency swaps and similar obligations
obligating such Person to make payments, whether periodically or upon the
happening of a contingency. For the purposes of this Agreement, the amount of
the obligation under any Swap shall be the amount determined in respect thereof
as of the end of the then most recently ended fiscal quarter of such Person,
based on the assumption that such Swap had terminated at the end of such fiscal
quarter, and in making such determination, if any
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agreement relating to such Swap provides for the netting of amounts payable by
and to such Person thereunder or if any such agreement provides for the
simultaneous payment of amounts by and to such Person, then in each such case,
the amount of such obligation shall be the net amount so determined.
UNRESTRICTED SUBSIDIARY means any Subsidiary designated by the Board of
Directors of Borrower as an "Unrestricted Subsidiary" on Exhibit F hereto or
pursuant to Section 8.9 hereto.
TAXES shall have the meaning ascribed to it in Section 4.1(d) hereof.
VOTING STOCK means Securities of any class or classes, the holders of
which are ordinarily, in the absence of contingencies, entitled to elect a
majority of the corporate directors (or Persons performing similar functions).
WHOLLY-OWNED RESTRICTED SUBSIDIARY means, at any time, any Restricted
Subsidiary of Borrower one hundred percent (100%) of all of the equity interests
(except directors' qualifying shares and shares of capital stock owned by one or
more individuals who are not citizens of the United States of America and whose
ownership of such capital stock is mandated by the law of any country other than
the United States of America) and voting interests of which are owned by any one
or more of Borrower and Borrower's other Wholly-owned Restricted Subsidiaries at
such time.
UNFUNDED LIABILITIES means, with respect to any Plan, at any time, the
amount (if any) by which (a) the present value of all benefits under such Plan
exceeds (b) the fair market value of all Plan assets allocable to such benefits,
all determined as of the then most recent actuarial valuation report for such
Plan, but only to the extent that such excess represents a potential liability
of any member of the Controlled Group to the PBGC or a Plan under Title IV of
ERISA. With respect to multi-employer Plans, the term "Unfunded Liabilities"
shall also include contingent liability for withdrawal liability under Section
4201 of ERISA to all multi-employer Plans to which Borrower or any member of a
Controlled Group for employees of Borrower contributes in the event of complete
withdrawal from such plans.
1.2 Miscellaneous. The words "hereof," "herein," and "hereunder" and
words of similar import when used in this Agreement shall refer to this
Agreement as a whole and not any particular provision of this Agreement.
2. COMMITMENTS AND LOANS.
2.1 Loans. From time to time on or after the Effective Date through
March 30, 2001, each Lender shall make loans under this Section 2.1 to Borrower
in an aggregate principal amount up to but not exceeding such Lender's
Commitment Percentage of $50,000,000. Any Loan repaid prior to the Maturity Date
may not be reborrowed. The aggregate of all Loans to be made by the Lenders in
connection with a particular borrowing shall be equal to the lesser of (a) the
remaining unused portion of the Commitments or (b) a multiple of $100,000.
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2.2 Terminations or Reductions of Commitments.
(a) [omitted intentionally]
(b) Optional. Borrower shall have the right to terminate or
reduce the unused portion of the Commitments at any time or from time
to time, provided that (i) Borrower shall give notice of each such
termination or reduction to Agent as provided in Section 4.3 hereof and
(ii) each such partial reduction shall be in an integral multiple of
$500,000.
(c) No Reinstatement. No termination or reduction of the
Commitments may be reinstated without the written approval of Agent and
the Lenders.
2.3 Commitment Fees. [omitted intentionally]
2.4 Several Obligations. The failure of any Lender to make any Loan to
be made by it on the date specified therefor shall not relieve any other Lender
of its obligation to make its Loan on such date, but neither Agent nor any
Lender shall be responsible or liable for the failure of any other Lender to
make a Loan to be made by such other Lender. Notwithstanding anything contained
herein to the contrary, (a) no Lender shall be required to make or maintain
Loans at any time outstanding if as a result the total Obligations owed to such
Lender shall exceed the lesser of (1) such Lender's Commitment Percentage of all
Obligations and (2) such Lender's Commitment Percentage of $50,000,000 and (b)
if a Lender fails to make a Loan as and when required hereunder, then upon each
subsequent event which would otherwise result in funds being paid to the
defaulting Lender, the amount which would have been paid to the defaulting
Lender shall be divided among the non-defaulting Lenders ratably according to
their respective shares of the outstanding Commitment Percentages until the
Obligations owing to each Lender (including the defaulting Lender) hereunder are
equal to such Lender's Commitment Percentage of the total Obligations hereunder.
2.5 Notes. The Loans made by each Lender shall be evidenced by a single
promissory note of Borrower in substantially the form of Exhibit C hereto
payable to the order of such Lender in a principal amount equal to the
Commitment of such Lender, and otherwise duly completed. The promissory notes
described in this Section are each, together with all renewals, extensions,
modifications and replacements thereof and substitutions therefor, called a
"Note" and collectively called the "Notes". Each Lender is hereby authorized by
Borrower to endorse on the schedule (or a continuation thereof) that may be
attached to each Note of such Lender, to the extent applicable, the date,
amount, type of and the applicable period of interest for each Loan made by such
Lender to Borrower hereunder, and the amount of each payment or prepayment of
principal of such Loan received by such Lender, provided that any failure by
such Lender to make any such endorsement shall not affect the obligations of
Borrower under such Note or hereunder in respect of such Loan.
2.6 Use of Proceeds. The proceeds of the Loans shall be used to
partially finance the construction of the Ocean Legend mobile offshore
production unit ("MOPU") and general corporate purposes. Neither Agent nor any
Lender shall have any responsibility as to the use of any proceeds of the Loans.
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3. BORROWINGS, PAYMENTS, PREPAYMENTS AND INTEREST OPTIONS.
3.1 Borrowings. Borrower shall give Agent notice of each borrowing to
be made hereunder as provided in Section 4.3 hereof and Agent shall promptly
notify each Lender of such request. Not later than 11:00 a.m., San Francisco,
California time on the date specified for each such borrowing hereunder, each
Lender shall make available the amount of the Loan, if any, to be made by it on
such date to Agent at its Payment Office, in immediately available funds, for
the account of Borrower. Such amounts received by Agent will be held in an
account maintained by Borrower with Agent. The amounts so received by Agent
shall, subject to the terms and conditions of this Agreement, be made available
to Borrower by wiring or otherwise transferring, in immediately available funds,
such amount to an account designated by Borrower and approved by Agent.
3.2 Prepayments; Payments; Past Due Payments.
(a) Optional Prepayments. Except as provided in Section 3.3
hereof, Borrower shall have the right to prepay, on any Business Day,
in whole or in part, without the payment of any premium, penalty or
fee, but with accrued interest to the date of prepayment on the amount
so prepaid and any Funding Losses, any Loans at any time or from time
to time, provided that Borrower shall give Agent notice of each such
prepayment as provided in Section 4.3 hereof. Each optional prepayment
on a Loan shall be in an amount equal to a minimum of $500,000 plus
integral multiples of $100,000. Each optional prepayment shall be
applied as follows: (1) 40% of the prepayment shall be applied to
scheduled payments in their inverse order of maturity, and (2) 60% of
the prepayment shall be applied on a pro rata basis to all of the
remaining scheduled payments.
(b) Mandatory Prepayment. Any cash proceeds (net of all legal
and title expenses, commissions, transportation and other fees and
expenses incurred and all federal, state, provincial, foreign,
recording and local taxes payable as a consequence of such sale and a
reasonable reserve for any indemnification obligations incurred with
respect thereto) received by Borrower from (i) the sale of the MOPU or
(ii) insurance covering the MOPU, shall upon receipt be used to prepay
outstanding Loans including any accrued and unpaid interest and
expenses required to be reimbursed by Borrower hereunder.
(c) Payments. The principal of and interest on the Term Loan
shall be due and payable by Borrower as follows:
(1) accrued but unpaid interest shall be due and
payable on the Interest Payment Dates;
(2) installments of principal each in the amount
of $3,000,000 plus accrued but unpaid
interest shall be due and payable on the
Quarterly Dates, commencing October 1, 2001,
through and including January 1, 2004; and
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(3) a final installment in the amount of
$20,000,000 plus all accrued and unpaid
interest shall be due and payable on the
Maturity Date.
(Payments assume that the Loan is fully advanced and pro rata
adjustments to principal payments will be made if less than $50,000,000
is advanced hereunder.)
(d) Interest on Past Due Payments. Subject to Section 11.7
hereof, Borrower will pay to Agent for the account of each Lender
interest at the applicable Past Due Rate on any amount payable by
Borrower hereunder to or for the account of such Lender (but, if such
amount is interest, only to the extent legally allowed), which shall
not be paid in full within five days after the date due (whether at
stated maturity, by acceleration or otherwise), for the period
commencing on the expiration of such five day period until the same is
paid in full.
3.3 Interest Options.
(a) Options Available. The outstanding principal balance of
the Notes shall bear interest at the Base Rate; provided, that (1)
subject to Section 3.2(c), all past due amounts, both principal and
accrued and unpaid interest, shall bear interest at the Past Due Rate,
and (2) subject to the provisions hereof, Borrower shall have the
option of having all or any portion of the principal balances of the
Notes from time to time outstanding bear interest at a Eurodollar Rate.
The records of Agent and each of the Lenders with respect to Interest
Options, Interest Periods and the amounts of Loans to which they are
applicable shall be prima facie evidence of the correctness thereof.
Interest on the Loans shall be calculated at the Base Rate except where
it is expressly provided pursuant to this Agreement that a Eurodollar
Rate is to apply. Interest on the amount of each advance against the
Notes shall be computed on the amount of that advance and from the date
it is made to but excluding the date of repayment thereof.
Notwithstanding anything in this Agreement to the contrary, for the
full term of the Notes the interest rate produced by the aggregate of
all sums paid or agreed to be paid to the holders of the Notes for the
use, forbearance or detention of the debt evidenced thereby (including
all interest on the Notes at the Stated Rate plus the Additional
Interest) shall not exceed the Ceiling Rate.
(b) Designation and Conversion. Borrower shall have the right
to designate or convert its Interest Options in accordance with the
provisions hereof. Provided no Event of Default has occurred and is
continuing and subject to the last sentence of Section 3.3(a) and the
provisions of Section 3.3(c), Borrower may elect to have a Eurodollar
Rate apply or continue to apply to all or any portion of the principal
balance of the Notes. Each change in Interest Options shall be a
conversion of the rate of interest applicable to the specified portion
of the Loans, but such conversion shall not change the respective
outstanding principal balances of the Notes. The Interest Options shall
be designated or converted in the manner provided below:
(i) Borrower shall give Agent telephonic notice,
promptly confirmed by a Rate Designation Notice (and Agent
shall promptly inform each Lender thereof).
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Each such telephonic and written notice shall specify the
amount of the Loan which is the subject of the designation, if
any; the amount of borrowings into which such Borrowings are
to be converted or for which an Interest Option is designated;
the proposed date for the designation or conversion and the
Interest Period or Periods, if any, selected by Borrower. Such
telephonic notice shall be irrevocable and shall be given to
Agent no later than the applicable Rate Designation Date.
(ii) No more than eight LIBOR Borrowings shall be in
effect at any time.
(iii) Each advance, designation or conversion of a
LIBOR Borrowing shall occur on a LIBOR Business Day.
(iv) Except as provided in Section 3.3(c) hereof, no
LIBOR Borrowing may be converted to a Base Rate Borrowing or
another LIBOR Borrowing on any day other than the last day of
the applicable Interest Period.
(v) Each request for a LIBOR Borrowing shall be in
the amount equal to $500,000 or an integral multiple of
$100,000 in excess thereof.
(vi) Subject to Section 3.3(c)(i), each designation
of an Interest Option with respect to the Notes shall apply to
all of the Notes ratably in accordance with their respective
outstanding principal balances. If any Lender assigns an
interest in its Note when any LIBOR Borrowing is outstanding
with respect thereto, then such assignee shall have its
ratable interest in such LIBOR Borrowing.
(c) Special Provisions Applicable to LIBOR Borrowings.
(i) Options Unlawful. If the adoption of any
applicable Legal Requirement after the Effective Date or any
change after the Effective Date in any applicable Legal
Requirement or in the interpretation or administration thereof
by any Governmental Authority or compliance by any Lender with
any request or directive (whether or not having the force of
law) issued after the Effective Date by any central bank or
other Governmental Authority shall at any time make it
unlawful or impossible for any Lender to permit the
establishment of or to maintain any LIBOR Borrowing, the
commitment of such Lender to establish such LIBOR Borrowing
shall forthwith be canceled and Borrower shall on the last day
the Interest Period relating to any outstanding LIBOR
Borrowing (or within such earlier period as may be required by
applicable law) (1) convert the LIBOR Borrowing of such Lender
to a Base Rate Borrowing; (2) pay all accrued and unpaid
interest to date on the amount so converted; and (3) pay any
amounts required to compensate each Lender for any additional
cost or expense which any Lender may incur as a result of such
adoption of or change in such Legal Requirement or in the
interpretation or administration thereof and any Funding Loss
which any Lender may incur as a result of such conversion. If,
when Agent so notifies Borrower, Borrower has given a Rate
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Designation Notice specifying a LIBOR Borrowing but the
selected Interest Period has not yet begun, as to the
applicable Lender such Rate Designation Notice shall be deemed
to be of no force and effect, as if never made, and the
balance of the Loans made by such Lender specified in such
Rate Designation Notice shall bear interest at the Base Rate
until a different available Interest Option shall be
designated in accordance herewith.
(ii) Increased Cost of Borrowings. Subject to Section
11.15, if the adoption after the Effective Date of any
applicable Legal Requirement or any change after the Effective
Date in any applicable Legal Requirement or in the
interpretation or administration thereof by any Governmental
Authority or compliance by any Lender with any request or
directive (whether or not having the force of law) issued
after the Effective Date by any central bank or Governmental
Authority shall at any time as a result of any portion of the
principal balances of the Notes being maintained on the basis
of a Eurodollar Rate:
(1) subject any Lender to any Taxes, or any
deduction or withholding for any Taxes, on or from
any payment due under any LIBOR Borrowing or other
amount due hereunder, other than income and franchise
taxes of the United States or its political
subdivisions or such other jurisdiction in which the
applicable Lender has any office or applicable
lending office; or
(2) change the basis of taxation of payments
due from Borrower to any Lender under any LIBOR
Borrowing (otherwise than by a change in the rate of
taxation of the gross revenues or overall net income
of such Lender); or
(3) impose, modify, increase or deem
applicable any reserve requirement (excluding that
portion of any reserve requirement included in the
calculation of the applicable Eurodollar Rate),
special deposit requirement or similar requirement
(including, but not limited to, state law
requirements) against assets of any Lender, or
against deposits with any Lender, or against loans
made by any Lender, or against any other funds,
obligations or other Property owned or held by any
Lender; or
(4) impose on any Lender any other condition
regarding any LIBOR Borrowing;
and the result of any of the foregoing is to increase the cost
to any Lender of agreeing to make or of making, renewing or
maintaining such LIBOR Borrowing, or reduce the amount of
principal or interest received by any Lender, then, within 15
Business Days after demand by Agent (accompanied by a
statement setting forth in reasonable detail the applicable
Lender's basis therefor), Borrower shall pay to Agent
additional
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amounts which shall compensate each Lender for such increased
cost or reduced amount. The determination by any Lender of the
amount of any such increased cost, increased reserve
requirement or reduced amount shall be prima facie evidence of
the correctness thereof. Borrower shall have the right, if it
receives from Agent any notice referred to in this paragraph,
upon three Business Days' notice to Agent (which shall notify
each affected Lender), either (i) to repay in full (but not in
part) any borrowing with respect to which such notice was
given, together with any accrued interest thereon, or (ii) to
convert the LIBOR Borrowing which is the subject of the notice
to a Base Rate Borrowing; provided, that any such repayment or
conversion shall be accompanied by payment of (x) the amount
required to compensate each Lender for the increased cost or
reduced amount referred to in the preceding paragraph; (y) all
accrued and unpaid interest to date on the amount so repaid or
converted, and (z) any Funding Loss which any Lender may incur
as a result of such repayment or conversion. Each Lender will
notify Borrower through Agent of any event occurring after the
date of this Agreement which will entitle such Lender to
compensation pursuant to this Section as promptly as
practicable after it obtains knowledge thereof and determines
to request such compensation, and (if so requested by Borrower
through Agent) will designate a different lending office of
such Lender for the applicable LIBOR Borrowing or will take
such other action as Borrower may reasonably request if such
designation or action is consistent with the internal policy
of such Lender and legal and regulatory restrictions, will
avoid the need for, or reduce the amount of, such compensation
and will not, in the sole opinion of such Lender, be
disadvantageous to such Lender (provided that such Lender
shall have no obligation so to designate a different lending
office which is located in the United States of America).
(iii) Inadequacy of Pricing and Rate Determination.
If, for any reason with respect to any Interest Period, Agent
(or, in the case of clause 3 below, the applicable Lender)
shall have reasonably determined that:
(1) Agent is unable through its customary
general practices to determine any applicable
Eurodollar Rate, or
(2) by reason of circumstances affecting the
applicable market, generally, Agent is not being
offered deposits in United States dollars in such
market, for the applicable Interest Period and in an
amount equal to the amount of any applicable LIBOR
Borrowing requested by Borrower, or
(3) any applicable Eurodollar Rate will not
adequately and fairly reflect the cost to any Lender
of making and maintaining such LIBOR Borrowing
hereunder for any proposed Interest Period,
then Agent shall give Borrower notice thereof and thereupon,
(A) any Rate Designation Notice previously given by Borrower
designating the applicable LIBOR
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Borrowing which has not commenced as of the date of such
notice from Agent shall be deemed for all purposes hereof to
be of no force and effect, as if never given, and (B) until
Agent shall notify Borrower that the circumstances giving rise
to such notice from Agent no longer exist, each Rate
Designation Notice requesting the applicable Eurodollar Rate
shall be deemed a request for a Base Rate Borrowing, and any
applicable LIBOR Borrowing then outstanding shall be
converted, without any notice to or from Borrower, upon the
termination of the Interest Period then in effect with respect
to it, to a Base Rate Borrowing.
(iv) Funding Losses. Borrower shall indemnify each
Lender against and hold each Lender harmless from any Funding
Loss. Subject to Section 11.15, this indemnity shall survive
the payment of the Notes. Within 15 Business Days after demand
by Agent (accompanied by a certificate of such Lender setting
forth in reasonable detail the amount and calculation of the
amount claimed as to any Funding Losses, which shall be prima
facie evidence of the correctness thereof), Borrower shall pay
to Agent, for the account of such Lender, the amount of such
Funding Losses.
(d) Funding Offices; Adjustments Automatic; Calculation Year.
Any Lender may, if it so elects, fulfill its obligation as to any LIBOR
Borrowing by causing a branch or affiliate of such Lender to make such
Loan and may transfer and carry such Loan at, to or for the account of
any branch office or affiliate of such Lender; provided, that in such
event for the purposes of this Agreement such Loan shall be deemed to
have been made by such Lender and the obligation of Borrower to repay
such Loan shall nevertheless be to such Lender and shall be deemed held
by it for the account of such branch or affiliate. Without notice to
Borrower or any other Person, each rate required to be calculated or
determined under this Agreement shall automatically fluctuate upward
and downward in accordance with the provisions of this Agreement.
Interest on the Base Rate shall be computed on the basis of the actual
number of days elapsed in a year consisting of 365 or 366 days, as the
case may be. All other interest required to be calculated or determined
under this Agreement shall be computed on the basis of the actual
number of days elapsed in a year consisting of 360 days, unless the
Ceiling Rate would thereby be exceeded, in which event, to the extent
necessary to avoid exceeding the Ceiling Rate, the applicable interest
shall be computed on the basis of the actual number of days elapsed in
the applicable calendar year in which accrued.
(e) Funding Sources. Notwithstanding any provision of this
Agreement to the contrary, each Lender shall be entitled to fund and
maintain its funding of all or any part of the Loans in any manner it
sees fit, it being understood, however, that for the purposes of this
Agreement all determinations hereunder shall be made as if each Lender
had actually funded and maintained each LIBOR Borrowing during each
Interest Period through the purchase of deposits having a maturity
corresponding to such Interest Period and bearing an interest rate
equal to the Eurodollar Rate for such Interest Period.
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4. PAYMENTS; PRO RATA TREATMENT; COMPUTATIONS, ETC.
4.1 Payments.
(a) Except to the extent otherwise provided herein, all
payments of principal, interest and other amounts to be made by
Borrower hereunder, under the Notes and under the other Loan Documents
shall be made in Dollars, in immediately available funds, to Agent at
the Payment Office (or in the case of a successor Agent, at the
principal office of such successor Agent in the United States), not
later than 9:00 a.m., San Francisco, California time on the date on
which such payment shall become due (each such payment made after such
time on such due date to be deemed to have been made on the next
succeeding Business Day).
(b) Borrower shall, at the time of making each payment
hereunder, under any Note or under any other Loan Document, specify to
Agent the Loans or other amounts payable by Borrower hereunder or
thereunder to which such payment is to be applied. Each payment
received by Agent hereunder, under any Note or under any other Loan
Document for the account of a Lender shall be paid promptly to such
Lender, in immediately available funds. If Agent fails to send to any
Lender the applicable amount by the close of business on the date any
such payment is received by Agent if such payment is received prior to
9:00 a.m., San Francisco, California time (or on the next succeeding
Business Day with respect to payments which are received after 9:00
a.m., San Francisco, California time), Agent shall pay to the
applicable Lender interest on such amount from such date at the Federal
Funds Rate. Borrower, the Lenders and Agent acknowledge and agree that
this provision and each other provision of this Agreement or any of the
other Loan Documents relating to the application of amounts in payment
of the Obligations shall be subject to the provisions of Section 4.2(d)
regarding pro rata application of amounts after an Event of Default
shall have occurred and be continuing.
(c) If the due date of any payment hereunder or under any Note
falls on a day which is not a Business Day, the due date for such
payments (except as otherwise provided in clause (2) of the definition
of "Interest Period") shall be extended to the next succeeding Business
Day and interest shall be payable for any principal so extended for the
period of such extension.
(d) All payments by Borrower hereunder or under any other Loan
Document shall be made free and clear of and without deduction for or
on account of any present or future income, stamp, or other taxes,
fees, duties, withholding or other charges of any nature whatsoever
imposed by any taxing authority excluding in the case of Agent and each
Lender taxes imposed on or measured by its net income or franchise
taxes imposed by the jurisdiction in which it is organized or through
which it acts for purposes of this Agreement (such non-excluded items
being hereinafter referred to as "Taxes"). If as a result of any change
in law (or the interpretation thereof) after the date that Agent or the
applicable Lender became a party to this Agreement, any withholding or
deduction from any payment to be
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made to, or for the account of, such Person by Borrower hereunder or
under any other Loan Document is required in respect of any Taxes
pursuant to any applicable law, rule, or regulation, then Borrower will
(i) pay to the relevant authority the full amount required to be so
withheld or deducted; (ii) to the extent available, promptly forward to
Agent an official receipt or other documentation reasonably
satisfactory to Agent evidencing such payment to such authority; and
(iii) pay to Agent, for the account of each affected Person, such
additional amount or amounts as are necessary to ensure that the net
amount actually received by such Lender will equal the full amount such
Person would have received had no such withholding or deduction been
required. Each such Person shall determine such additional amount or
amounts payable to it (which determination shall be prima facie
evidence of the correctness thereof). If Agent or any Lender becomes
aware that any such withholding or deduction from any payment to be
made by Borrower hereunder or under any other Loan Document is
required, then such Person shall promptly notify Agent and Borrower
thereof stating the reasons therefor and the additional amount required
to be paid under this Section. Each Lender shall execute and deliver to
Agent and Borrower such forms as it may be required to execute and
deliver pursuant to Section 11.13 hereof. To the extent that any such
withholding or deduction results from the failure of a Lender to
provide a form required by Section 11.13 hereof (unless such failure is
due to some prohibition under applicable Legal Requirements), Borrower
shall have no obligation to pay the additional amount required by
clause (iii) above. Anything in this Section notwithstanding, if any
Lender elects to require payment by Borrower of any material amount
under this Section, Borrower may, within 60 days after the date of
receiving notice thereof and so long as no Default shall have occurred
and be continuing, elect to terminate such Lender as a party to this
Agreement; provided that, concurrently with such termination Borrower
shall (i) if Agent and each of the other Lenders shall consent, pay
that Lender all principal, interest and fees and other amounts owed to
such Lender through such date of termination or (ii) have arranged for
another financial institution approved by Agent (such approval not to
be unreasonably withheld or delayed) as of such date, to become a
substitute Lender for all purposes under this Agreement in the manner
provided in Section 11.6; provided further that, prior to substitution
for any Lender, Borrower shall have given written notice to Agent of
such intention and the Lenders shall have the option, but no
obligation, for a period of 60 days after receipt of such notice, to
increase their Commitments in order to replace the affected Lender in
lieu of such substitution.
4.2 Pro Rata Treatment. Except to the extent otherwise provided herein:
(a) each borrowing from the Lenders under Section 2.1 hereof shall be made
ratably from the Lenders in accordance with their respective Commitments; and
(b) each payment by Borrower of principal of or interest on the Loans shall be
made to Agent for the account of the Lenders pro rata in accordance with the
respective unpaid principal amounts of such Loans held by the Lenders.
4.3 Certain Actions, Notices, Etc. Notices to Agent of any termination
or reduction of Commitments and of borrowings and optional prepayments of Loans
shall be irrevocable and shall be effective only if received by Agent not later
than 9:00 a.m., San Francisco, California time on the
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number of Business Days prior to the date of the relevant termination,
reduction, borrowing and/or prepayment specified below:
Number of Business Days
Prior Notice
-----------------------
Termination or Reduction of 3
Commitments
LIBOR Borrowing prepayment 3 LIBOR Business Days
Base Rate Loan prepayment 1
Borrowing at the Base Rate same day
Selection of a Eurodollar Rate 3 LIBOR Business Days
Each such notice of termination or reduction shall specify the amount of the
applicable Commitment to be terminated or reduced. Each such notice of borrowing
or prepayment shall specify the amount of the Loans to be borrowed or prepaid
and the date of borrowing or prepayment (which shall be a Business Day). Agent
shall promptly notify the affected Lenders of the contents of each such notice.
4.4 Non-Receipt of Funds by Agent. Unless Agent shall have been
notified by a Lender or Borrower (the "Payor") prior to the date on which such
Lender is to make payment to Agent of the proceeds of a Loan to be made by it
hereunder or Borrower is to make a payment to Agent for the account of one or
more of the Lenders, as the case may be (such payment being herein called the
"Required Payment"), which notice shall be effective upon receipt, that the
Payor does not intend to make the Required Payment to Agent, Agent may assume
that the Required Payment has been made and may, in reliance upon such
assumption (but shall not be required to), make the amount thereof available to
the intended recipient on such date and, if the Payor has not in fact made the
Required Payment to Agent, the recipient of such payment shall, on demand, pay
to Agent the amount made available by Agent, together with interest thereon in
respect of the period commencing on the date such amount was so made available
by Agent until the date Agent recovers such amount at a rate per annum equal to
the Federal Funds Rate for such period.
4.5 Sharing of Payments, Etc. If a Lender shall obtain payment of any
principal of or interest on any Loan made by it under this Agreement or on any
other Obligation then due to such Lender hereunder, through the exercise of any
right of set-off (including, without limitation, any right of setoff or Lien
granted under Section 9.2 hereof), banker's lien, counterclaim or similar right
or otherwise, it shall promptly purchase from the other Lenders participations
in the Loans made, or other Obligations held, by the other Lenders in such
amounts, and make such other adjustments from time to time as shall be equitable
to the end that all the Lenders shall share the benefit of such payment (net of
any expenses which may be incurred by such Lender in obtaining or preserving
such
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benefit) pro rata in accordance with the unpaid Obligations then due to each of
them; provided, however, that if all or any portion of such excess payment is
thereafter recovered from such purchasing Lender, such purchase from each Lender
shall be rescinded and such Lender shall repay to the purchasing Lender the
purchase price to the extent of such recovery together with an amount equal to
such Lender's ratable share (according to the proportion of (i) the amount of
such Lender's required repayment to (ii) the total amount so recovered from the
purchasing Lender) of any interest or other amount paid or payable by the
purchasing Lender in respect of the total amount so recovered. To such end all
the Lenders shall make appropriate adjustments among themselves (by the resale
of participations sold or otherwise) if such payment is rescinded or must
otherwise be restored. Borrower agrees, to the fullest extent it may effectively
do so under applicable law, that any Lender so purchasing a participation in the
Loans made, or other Obligations held, by other Lenders may exercise all rights
of set-off, bankers' lien, counterclaim or similar rights with respect to such
participation as fully as if such Lender were a direct holder of Loans or other
Obligations in the amount of such participation. Nothing contained herein shall
require any Lender to exercise any such right or shall affect the right of any
Lender to exercise, and retain the benefits of exercising, any such right with
respect to any other indebtedness or obligation of Borrower.
5. CONDITIONS PRECEDENT.
5.1 Initial Loans. The obligation of each Lender to make its initial
Loans hereunder is subject to the following conditions precedent, each of which
shall have been fulfilled or waived to the satisfaction of Agent:
(a) Authorization and Status. Agent shall have received (i)
copies of the Organizational Documents of Borrower certified as true
and correct by its secretary, assistant secretary or other equivalent
officer, (ii) evidence reasonably satisfactory to Agent of all action
taken by Borrower authorizing the execution, delivery and performance
of the Loan Documents, and (iii) such certificates as may be
appropriate to demonstrate the qualification and good standing of
Borrower in the jurisdiction of its organization and in each other
jurisdiction where the failure in which to qualify could reasonably be
expected to have a Material Adverse Effect.
(b) Incumbency. Borrower shall have delivered to Agent a
certificate in respect of the name and signature of each of the
officers (i) who is authorized to sign on its behalf the applicable
Loan Documents to which it is a party related to any Loan and (ii) who
will, until replaced by another officer or officers duly authorized for
that purpose, act as its representative for the purposes of signing
documents and giving notices and other communications in connection
with any Loan. Agent and each Lender may conclusively rely on such
certificates until they receive notice in writing from Borrower to the
contrary.
(c) Notes. Agent shall have received the appropriate Notes of
Borrower for each Lender, duly completed and executed.
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(d) Loan Documents. Borrower shall have duly executed and
delivered the Loan Documents to which it is a party (in such number of
copies as Agent shall have requested). Each such Loan Document shall be
in substantially the form furnished to the Lenders prior to their
execution of this Agreement, together with such changes therein as
Agent may approve.
(e) Fees and Expenses. Borrower shall have paid to Agent all
unpaid fees in the amounts previously agreed upon in writing among
Borrower and Agent.
(f) Opinions of Counsel. Agent shall have received such
opinions of counsel to Borrower as Agent shall reasonably request with
respect to Borrower and the Loan Documents.
(g) Consents. Agent shall have received evidence reasonably
satisfactory to the Majority Lenders that all material consents of each
Governmental Authority and of each other Person, if any, reasonably
required in connection with (a) the Loans and (b) the execution,
delivery and performance of this Agreement and the other Loan Documents
have been satisfactorily obtained.
(h) Other Documents. Agent shall have received such other
documents consistent with the terms of this Agreement and relating to
the transactions contemplated hereby as Agent may reasonably request.
5.2 All Loans. The obligation of each Lender to make any Loan to be
made by it hereunder is subject to: (a) the accuracy, in all material respects,
on the date of such Loan of all representations and warranties of Borrower
contained in this Agreement and the other Loan Documents, except to the extent
expressly limited to an earlier date; (b) Agent shall have received the
following, all of which shall be duly executed and in Proper Form: (1) a Request
for Extension of Credit as to the Loan no later than 8:00 a.m., San Francisco,
California time on the Business Day on which such Request for Extension of
Credit must be given under Section 4.3 hereof and (2) such other documents as
Agent may reasonably require; (c) prior to the making of such Loan, there shall
have occurred no event which could reasonably be expected to have a Material
Adverse Effect; (d) no Default or Event of Default shall have occurred and be
continuing, and (e) the making of such Loan shall not be illegal or prohibited
by any Legal Requirement. The submission by Borrower of a Request for Extension
of Credit shall be deemed to be a representation and warranty that the
conditions precedent to the applicable Loan have been satisfied.
6. REPRESENTATIONS AND WARRANTIES.
To induce Agent and the Lenders to enter into this Agreement and to
make the Loans, Borrower represents and warrants (such representations and
warranties to survive any investigation and the making of the Loans) to the
Lenders and Agent as follows:
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6.1 Organization. Borrower and each of its Restricted Subsidiaries (a)
is duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization; (b) has all necessary power and authority to
conduct its business as presently conducted, and (c) is duly qualified to do
business and in good standing in the jurisdiction of its organization and in all
jurisdictions in which the failure to so qualify could reasonably be expected to
have a Material Adverse Effect.
6.2 Financial Statements. Borrower has furnished to Agent (i) audited
financial statements (including a balance sheet) as to Borrower which fairly
present in all material respects, in accordance with GAAP, the consolidated
financial condition and the results of operations of Borrower and its
Subsidiaries as of the end of the fiscal year ended March 31, 1999 and (ii)
unaudited financial statements (including a balance sheet) as to Borrower which
fairly present in all material respects, in accordance with GAAP (subject to
year-end adjustments and the absence of notes), the consolidated financial
condition and the results of operations of Borrower and its Subsidiaries as of
the end of the fiscal quarter ended December 31, 1999. No events, conditions or
circumstances have occurred from the date that the financial statements were
delivered to Agent through the Effective Date which would cause said financial
statements to be misleading in any material respect. There are no material
instruments or liabilities which should be reflected in such financial
statements provided to Agent which are not so reflected that are necessary in
order for such financial statement presentation to conform to GAAP. Since March
31, 1999, no event has occurred and no circumstance has arisen which could
reasonably be expected to cause a Material Adverse Effect.
6.3 Enforceable Obligations. Authorization. The Loan Documents are
legal, valid and binding obligations of Borrower, enforceable in accordance with
their respective terms, except as may be limited by bankruptcy, insolvency and
other similar laws and judicial decisions affecting creditors' rights generally
and by general equitable principles. The execution, delivery and performance of
the Loan Documents by Borrower (a) have all been duly authorized by all
necessary action; (b) are within the corporate power and authority of Borrower;
(c) do not and will not contravene or violate any Legal Requirement applicable
to Borrower or the Organizational Documents of Borrower, the contravention or
violation of which could reasonably be expected to have a Material Adverse
Effect; (d) do not and will not result in the breach of, or constitute a default
under, any material agreement or instrument by which Borrower or any of its
Property may be bound, and (e) do not and will not result in the creation of any
Lien upon any Property of Borrower, except in favor of Agent or as expressly
contemplated herein or therein. All necessary permits, registrations and
consents for such making and performance have been obtained.
6.4 Other Debt. Neither Borrower nor any its Restricted Subsidiaries is
in default in the payment of any other Indebtedness or under any agreement,
mortgage, deed of trust, security agreement or lease to which it is a party and
which default could reasonably be expected to have a Material Adverse Effect.
6.5 Litigation. There is no litigation or administrative proceeding, to
the knowledge of any executive officer of Borrower, pending or threatened
against, nor any outstanding judgment,
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order or decree against, Borrower or any of its Restricted Subsidiaries before
or by any Governmental Authority which does or could reasonably be expected to
have a Material Adverse Effect. Neither Borrower nor any its Restricted
Subsidiaries is in default with respect to any judgment, order or decree of any
Governmental Authority where such default could reasonably be expected to have a
Material Adverse Effect.
6.6 Taxes. Borrower and each of its Restricted Subsidiaries has filed
all tax returns required to have been filed and paid all taxes shown thereon to
be due, except those for which extensions have been obtained and those which are
being contested in good faith or where the failure to make required filings or
pay required taxes could not reasonably be expected to have a Material Adverse
Effect.
6.7 Regulations U and X. None of the proceeds of any Loan will be used
for the purpose of purchasing or carrying directly or indirectly any margin
stock or for any other purpose would constitute this transaction a "purpose
credit" within the meaning of Regulations U and X of the Board of Governors of
the Federal Reserve System, as any of them may be amended from time to time.
6.8 Subsidiaries. As of the Effective Date, Borrower has no
Subsidiaries other than as set forth on Exhibit F hereto. There are no
Unrestricted Subsidiaries of Borrower as of the Effective Date.
6.9 No Untrue or Misleading Statements. No document, instrument or
other writing furnished to the Lenders by or on behalf of Borrower in connection
with the transactions contemplated in any Loan Document contains any untrue
material statement of fact or omits to state any such fact necessary to make the
representations, warranties and other statements contained herein or in such
other document, instrument or writing not misleading in any material respect.
6.10 ERISA. With respect to each Plan, Borrower and each member of the
Controlled Group have fulfilled their obligations, including obligations under
the minimum funding standards of ERISA and the Code and are in compliance in all
material respects with the provisions of ERISA and the Code. No event has
occurred which could result in a liability of Borrower or any member of the
Controlled Group to the PBGC or a Plan (other than to make contributions in the
ordinary course) could reasonably be expected to have a Material Adverse Effect.
There have not been any nor are there now existing any events or conditions that
would cause the Lien provided under Section 4068 of ERISA to attach to any
Property of Borrower or any member of the Controlled Group. Unfunded Liabilities
as of the date hereof are not reasonably expected to result in a Material
Adverse Effect. No "prohibited transaction" has occurred with respect to any
Plan.
6.11 Investment Company Act. Neither Borrower nor any its Restricted
Subsidiaries is an investment company within the meaning of the Investment
Company Act of 1940, as amended, or, directly or indirectly, controlled by or
acting on behalf of any Person which is an investment company, within the
meaning of said Act.
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6.12 Public Utility Holding Company Act. Neither Borrower nor any its
Restricted Subsidiaries is an "affiliate" or a "subsidiary company" of a "public
utility company," or a "holding company," or an "affiliate" or a "subsidiary
company" of a "holding company," as such terms are defined in the Public Utility
Holding Company Act of 1935, as amended.
6.13 Fiscal Year. The fiscal year of Borrower ends on March 31.
6.14 Compliance. Borrower and each of its Restricted Subsidiaries is in
compliance with all Legal Requirements applicable to it, except to the extent
that the failure to comply therewith could not reasonably be expected to have a
Material Adverse Effect.
6.15 Environmental Matters. Borrower and each of its Restricted
Subsidiaries has, to the best knowledge of their respective executive officers,
obtained and maintained in effect all Environmental Permits (or the applicable
Person has initiated the necessary steps to transfer the Environmental Permits
into its name or obtain such permits), the failure to obtain which could
reasonably be expected to have a Material Adverse Effect. Borrower and each of
its Restricted Subsidiaries and their Properties, business and operations have
been and are, to the best knowledge of their respective executive officers, in
compliance with all applicable Requirements of Environmental Law and
Environmental Permits the failure to comply with which could reasonably be
expected to have a Material Adverse Effect. Borrower and each of its Restricted
Subsidiaries and their Properties, business and operations are not subject to
any (A) Environmental Claims or (B), to the best knowledge of their respective
executive officers (after making reasonable inquiry of the personnel and records
of their respective Corporations), Environmental Liabilities, in either case
direct or contingent, arising from or based upon any act, omission, event,
condition or circumstance occurring or existing on or prior to the date hereof
which could reasonably be expected to have a Material Adverse Effect. None of
the officers of Borrower or any of its Restricted Subsidiaries has received any
notice of any violation or alleged violation of any Requirements of
Environmental Law or Environmental Permit or any Environmental Claim in
connection with its Properties, liabilities, condition (financial or otherwise),
business or operations which could reasonably be expected to have a Material
Adverse Effect. Borrower does not know of any event or condition with respect to
currently enacted Requirements of Environmental Laws presently scheduled to
become effective in the future with respect to any of the Properties of Borrower
or any of its Restricted Subsidiaries which could reasonably be expected to have
a Material Adverse Effect, for which good faith provisions have not been made by
Borrower or such Restricted Subsidiary in its business plan and projections of
financial performance.
6.16 Agreements. Neither the Borrower nor any Restricted Subsidiary is
a party to any indenture, loan, or credit agreement, or to any lease or other
agreement or instrument, or subject to any charter or corporate restriction
which could reasonably be expected to have a Material Adverse Effect.
6.17 Year 2000. Any reprogramming required to permit the proper
functioning, in and following the year 2000, of (i) Borrower's and any of its
Restricted Subsidiaries' computer systems and (ii) equipment containing embedded
microchips (including systems and equipment supplied by
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others or with which Borrower's and any of its Restricted Subsidiaries' systems
interface) and the testing of all such systems and equipment has been completed,
except to the extent such failure is not reasonably expected to result in a
Material Adverse Effect.
7. AFFIRMATIVE COVENANTS.
Borrower covenants and agrees with Agent and the Lenders that prior to
the termination of this Agreement it will do or cause to be done, and cause each
of its Restricted Subsidiaries to do or cause to be done, each and all of the
following:
7.1 Taxes, Existence, Regulations, Property, Etc. At all times, except
where failure or noncompliance could not reasonably be expected to have a
Material Adverse Effect: (a) pay when due all taxes and governmental charges of
every kind upon it or against its income, profits or Property, unless and only
to the extent that the same shall be contested diligently in good faith and
adequate reserves in accordance with GAAP have been established therefor; (b) do
all things necessary to preserve its existence, qualifications, rights and
franchises; (c) comply with all applicable Legal Requirements (including without
limitation Requirements of Environmental Law) in respect of the conduct of its
business and the ownership of its Property, and (d) cause its Property to be
protected, maintained and kept in good repair and make all replacements and
additions to such Property as may be reasonably necessary to conduct its
business properly and efficiently.
7.2 Financial Statements and Information. Furnish to Agent and each
Lender each of the following: (a) as soon as available and in any event within
105 days after the end of each applicable fiscal year, beginning with the fiscal
year ending on March 31, 2000, Annual Financial Statements, together with a
Borrower-prepared reconciliation of such Annual Financial Statements with annual
financial statements of Borrower and its Restricted Subsidiaries (attested by
Borrower as true and correct in all material respects); (b) as soon as available
and in any event within 60 days after the end of each fiscal quarter of each
applicable fiscal year, Quarterly Financial Statements, together with a
Borrower-prepared reconciliation of such Quarterly Financial Statements with
quarterly financial statements of Borrower and its Restricted Subsidiaries
(attested by Borrower as true and correct in all material respects); (c)
concurrently with the financial statements provided for in Subsections 7.2(a)
and (b) hereof, such schedules, computations and other information, in
reasonable detail, as may be reasonably required by Agent to demonstrate
compliance with the covenants set forth herein or reflecting any non-compliance
therewith as of the applicable date, all attested by a duly authorized officer
of Borrower as true and correct in all material respects to the best knowledge
of such officer and, commencing with the quarterly financial statements prepared
as of June 30, 2000, a compliance certificate ("Compliance Certificate")
substantially in the form of Exhibit E hereto, duly executed by such authorized
officer; (d) promptly upon their becoming publicly available, each financial
statement, report, notice or definitive proxy statements sent by Borrower to
shareholders generally and each regular or periodic report and each registration
statement, prospectus or written communication (other than transmittal letters
and other than registrations on Form S-8 under the Securities Act, registrations
of equity securities pursuant to Rule 415 under the Securities Act which do not
involve an underwritten public offering and reports on Form 11-K or pursuant to
Section 16(a) under the Exchange Act) in respect thereof filed by Borrower with,
or
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received by Borrower in connection therewith from, any securities exchange or
the Securities and Exchange Commission or any successor agency, and (e) such
other information relating to the condition (financial or otherwise),
operations, prospects or business of Borrower or any of its Restricted
Subsidiaries as from time to time may be reasonably requested by Agent. Each
delivery of a financial statement pursuant to this Section 7.2 shall constitute
a restatement of the representations contained in the last two sentences of
Section 6.2.
7.3 Financial Tests. Have and maintain:
(a) Consolidated Adjusted Net Worth - At all times,
Consolidated Adjusted Net Worth of not less than the sum of (1)
$150,015,000 as of December 31, 1999 plus (2) 50% of the net proceeds
realized from the issuance of any equity securities by Borrower after
December 31, 1999 plus (3) 50% of Consolidated Net Income computed on a
cumulative basis for each of the elapsed fiscal quarters ending after
December 31, 1999; provided that notwithstanding that Consolidated Net
Income for any such elapsed fiscal quarter may be a deficit figure, no
reduction as a result thereof shall be made in the sum to be maintained
pursuant hereto.
(b) Debt to Capitalization Ratio - a Debt to Capitalization
Ratio of not greater than 0.55 to 1.00 at all times.
(c) Fixed Charge Coverage Ratio - a Fixed Charge Coverage
Ratio of not less than 1.50 to 1.00 at all times.
(d) Interest Coverage Ratio - an Interest Coverage Ratio of
not less than 2.50 to 1.00 at all times.
(e) Debt to Consolidated Net Worth Ratio - the ratio of (i)
the sum of, determined on a consolidated basis in accordance with GAAP,
(A) the aggregate amount of all Indebtedness of Borrower secured by
Liens within the limitations of clauses (f) through (m) of Section 8.3
plus (B) the aggregate amount of all Indebtedness of Restricted
Subsidiaries of Borrower (other than Indebtedness permitted pursuant to
Section 8.1(a)(ii)) plus (C) the aggregate liquidation value of all
Preferred Stock of Restricted Subsidiaries of Borrower (other than
Preferred Stock permitted pursuant to Section 8.1(a)(ii)) to (ii)
Consolidated Adjusted Net Worth not to exceed 0.30 to 1.00.
7.4 Inspection. Permit Agent and each Lender upon three days' prior
notice (unless a Default or an Event of Default has occurred which is
continuing, in which case no prior notice is required) to inspect its Property
in a manner consistent with applicable safety requirements and policies of
insurance, to examine its files, books and records, except classified
governmental material, and make and take away copies thereof, and to discuss its
affairs with its officers and accountants, all during normal business hours and
at such intervals and to such extent as Agent may reasonably desire without
unreasonably interfering with Borrower's or its Restricted Subsidiaries'
operations or business.
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7.5 Further Assurances. Promptly execute and deliver, at Borrower's
expense, any and all other and further instruments which may be reasonably
requested by Agent to cure any defect in the execution and delivery of any Loan
Document in order to effectuate the transactions contemplated by the Loan
Documents.
7.6 Books and Records. Maintain books of record and account which
permit financial statements to be prepared in accordance with GAAP.
7.7 Insurance. Maintain insurance on its Property with responsible
companies in such amounts, with such deductibles and against such risks as are
usually carried by owners of similar businesses and Properties in the same
general areas in which Borrower or any of its Restricted Subsidiaries operates,
and furnish Agent satisfactory evidence thereof promptly upon reasonable
request. Agent shall be provided with a certificate showing coverages provided
under the policies of insurance and such policies shall be endorsed to the
effect that they will not be canceled for nonpayment of premium, reduced or
affected in any material manner without 30 days' prior written notice to Agent.
7.8 Notice of Certain Matters. Give Agent written notice of the
following promptly after any executive officer of Borrower shall become aware of
the same:
(a) the issuance by any court or governmental agency or
authority of any injunction, order or other restraint prohibiting, or
having the effect of prohibiting, the performance of this Agreement,
any other Loan Document, or the making of the Loans or the initiation
of any litigation, or any claim or controversy which would reasonably
be expected to result in the initiation of any litigation, seeking any
such injunction, order or other restraint;
(b) the filing or commencement of any action, suit or
proceeding, whether at law or in equity or by or before any court or
any Governmental Authority involving claims which could reasonably be
expected to result in a Default hereunder or a Material Adverse Effect;
and
(c) any Event of Default or Default, specifying the nature and
extent thereof and the action (if any) which is proposed to be taken
with the respect thereto.
Borrower will also notify Agent in writing at least 30 days prior to the date
that it changes its name or the location of its chief executive office or
principal place of business or the place where it keeps its books and records.
7.9 Capital Adequacy. If any Lender shall have determined that the
adoption after the Effective Date or effectiveness after the Effective Date
(whether or not previously announced) of any applicable law, rule, regulation or
treaty regarding capital adequacy, or any change therein after the Effective
Date, or any change in the interpretation or administration thereof after the
Effective Date by any Governmental Authority, central bank or comparable agency
charged with the interpretation
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or administration thereof, or compliance by any Lender with any request or
directive after the Effective Date regarding capital adequacy (whether or not
having the force of law) of any such Governmental Authority, central bank or
comparable agency has or would have the effect of reducing the rate of return on
the capital of such Lender or any corporation controlling such Lender as a
consequence of its obligations hereunder, under the Notes or other Obligations
held by it to a level below that which such Lender or such corporation could
have achieved but for such adoption, change or compliance (taking into
consideration such Lender's policies with respect to capital adequacy) by an
amount deemed by such Lender or such corporation to be material, then from time
to time, upon satisfaction of the conditions precedent set forth in this
Section, after demand by such Lender (with a copy to Agent) as provided below,
pay (subject to Sections 11.7 and 11.15 hereof) to such Lender such additional
amount or amounts as will compensate such Lender or such corporation for such
reduction. The certificate of any Lender setting forth such amount or amounts as
shall be necessary to compensate it and the basis thereof and reasons therefor
shall be delivered as soon as practicable to Borrower and shall be prima facie
evidence of the correctness thereof. Borrower shall pay the amount shown as due
on any such certificate within 15 Business Days after the delivery of such
certificate. In preparing such certificate, a Lender may employ such assumptions
and allocations of costs and expenses as it shall in good ▇▇▇▇▇ ▇▇▇▇ reasonable
and may use any reasonable averaging and attribution method.
7.10 ERISA Information and Compliance. Promptly furnish to Agent (i)
immediately upon receipt, a copy of any notice of complete or partial withdrawal
liability under Title IV of ERISA and any notice from the PBGC under Title IV of
ERISA of an intent to terminate or appoint a trustee to administer any Plan,
(ii) if requested by Agent, promptly after the filing thereof with the United
States Secretary of Labor or the PBGC or the Internal Revenue Service, copies of
each annual and other report with respect to each Plan or any trust created
thereunder, (iii) immediately upon becoming aware of the occurrence of any
"reportable event," as such term is defined in Section 4043 of ERISA, for which
the disclosure requirements of Regulation Section 2615.3 promulgated by the PBGC
have not been waived, or of any "prohibited transaction," as such term is
defined in Section 4975 of the Code, in connection with any Plan or any trust
created thereunder, a written notice signed by an authorized officer of Borrower
or the applicable member of the Controlled Group specifying the nature thereof,
what action Borrower or the applicable member of the Controlled Group is taking
or proposes to take with respect thereto, and, when known, any action taken by
the PBGC, the Internal Revenue Service or the Department of Labor with respect
thereto, (iv) promptly after the filing or receiving thereof by Borrower or any
member of the Controlled Group of any notice of the institution of any
proceedings or other actions which may result in the termination of any Plan,
and (v) each request for waiver of the funding standards or extension of the
amortization periods required by Sections 303 and 304 of ERISA or Section 412 of
the Code promptly after the request is submitted by Borrower or any member of
the Controlled Group to the Secretary of the Treasury, the Department of Labor
or the Internal Revenue Service, as the case may be. To the extent required
under applicable statutory funding requirements, Borrower will fund, or will
cause the applicable member of the Controlled Group to fund, all current service
pension liabilities as they are incurred under the provisions of all Plans from
time to time in effect, and comply with all applicable provisions of ERISA, in
each case, except to the extent that failure to do the same could not reasonably
be expected to have a Material Adverse Effect. Borrower covenants that it shall
and
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shall cause each member of the Controlled Group to (1) make contributions to
each Plan in a timely manner and in an amount sufficient to comply with the
contribution obligations under such Plan and the minimum funding standards
requirements of ERISA; (2) prepare and file in a timely manner all notices and
reports required under the terms of ERISA including but not limited to annual
reports; and (3) pay in a timely manner all required PBGC premiums, in each
case, except to the extent that failure to do the same could not reasonably be
expected to have a Material Adverse Effect.
8. NEGATIVE COVENANTS.
Borrower covenants and agrees with Agent and the Lenders that prior to
the termination of this Agreement it will not, and will not suffer or permit any
of its Restricted Subsidiaries to, do any of the following:
8.1 Limitations on Indebtedness and Preferred Stock of Restricted
Subsidiaries.
(a) Permit any Restricted Subsidiary of Borrower to create,
issue, assume, guarantee or otherwise incur or in any manner become
liable in respect of any Indebtedness or Preferred Stock, except:
(i) Indebtedness or Preferred Stock of a Restricted
Subsidiary of Borrower outstanding as of the Effective Date
and described on Exhibit I hereto;
(ii) Indebtedness or Preferred Stock of a Restricted
Subsidiary of Borrower owing or issued to Borrower or to a
Wholly-owned Restricted Subsidiary; and
(iii) additional Indebtedness or Preferred Stock of a
Restricted Subsidiary of Borrower created, issued, assumed,
guaranteed or incurred within the limitations provided in
Sections 7.3(e) and 8.2(b) hereof.
(b) Indebtedness or Preferred Stock existing within the
limitations of Section 8.1(a)(i) may be renewed, extended or refinanced
(without increase in principal amount or liquidation value, as the case
may be, at the time of such renewal, extension or refunding and subject
only to covenants or restrictions which are not materially more onerous
than those applicable to such Indebtedness or Preferred Stock, as the
case may be, at the time of original issuance thereof) without regard
to the limitations of Section 8.1(a)(iii), except that no such
Indebtedness or Preferred Stock may in any event be renewed, extended
or refinanced if at the time thereof and after giving effect thereto
and to the application of the proceeds thereof, a Default or Event of
Default would exist.
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8.2 Priority Liabilities. Create, issue, assume, guarantee or otherwise
incur or in any manner become liable in respect of any Priority Liability,
unless:
(a) in the case of Indebtedness of Borrower or any of its
Restricted Subsidiaries secured by any Lien created pursuant to Section
8.3(l), at the time of creation, issuance, assumption, guarantee or
incurrence thereof and after giving effect thereto and to the
application of the proceeds thereof:
(i) no Default, including, without limitation, a
Default under Section 7.3(e), or Event of Default would exist;
(ii) the aggregate amount of all Indebtedness of
Borrower or any of its Restricted Subsidiaries (other than
such Indebtedness permitted pursuant to Section 8.1(a)(ii))
secured by Liens created pursuant to Section 8.3(l) (including
the Indebtedness then to be created, issued, assumed,
guaranteed or incurred, but excluding MARAD Indebtedness)
would not exceed 15% of Consolidated Adjusted Net Worth; and
(iii) the aggregate amount of all Indebtedness of
Borrower or any of its Restricted Subsidiaries (other than
such Indebtedness permitted pursuant to Section 8.1(a)(ii))
secured by Liens created pursuant to Section 8.3(l) (including
the Indebtedness then to be created, issued, assumed,
guaranteed or incurred and any MARAD Indebtedness) would not
exceed 25% of Consolidated Adjusted Net Worth;
(b) in the case of Indebtedness or any Preferred Stock of a
Restricted Subsidiary of Borrower (other than Indebtedness permitted
pursuant to Section 8.1(a)(i) or (ii) hereof), at the time of creation,
issuance, assumption, guarantee or incurrence thereof and after giving
effect thereto and to the application of the proceeds thereof:
(i) no Default, including, without limitation, a
Default under Section 7.3(e), or Event of Default would exist;
and
(ii) the aggregate amount of all Indebtedness of
Restricted Subsidiaries of Borrower (other than Indebtedness
permitted pursuant to Section 8.1(a)(ii) hereof) plus the
aggregate liquidation value of all Preferred Stock of
Restricted Subsidiaries of Borrower (including the
Indebtedness or Preferred Stock then to be created, issued,
assumed, guaranteed or incurred) would not exceed 15% of
Consolidated Adjusted Net Worth.
8.3 Limitations on Liens. Create or incur, or suffer to be incurred or
to exist, any Lien on its or their property or assets, whether now owned or
hereafter acquired, or upon any income or profits therefrom, or transfer any
property for the purpose of subjecting the same to the payment of obligations in
priority to the payment of its or their general creditors, or acquire or agree
to acquire
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any property or assets upon conditional sales agreements or other title
retention devices, except the following:
(a) Liens for property taxes and assessments or governmental
charges or levies and Liens securing claims or demands of mechanics,
materialmen, vendors, carriers and warehousemen and other like Persons;
provided that payment thereof is not at the time required by Section
7.1;
(b) Liens of or resulting from any judgment or award, the time
for the appeal or petition for rehearing of which shall not have
expired, or in respect of which Borrower or a Restricted Subsidiary of
Borrower shall at any time in good faith be prosecuting an appeal or
proceeding for a review and in respect of which a stay of execution
pending such appeal or proceeding for review shall have been secured;
(c) Liens incidental to the conduct of business or the
ownership of properties and assets (including Liens in connection with
worker's compensation, unemployment insurance and other like laws,
maritime, warehousemen's and attorneys' liens and statutory landlords'
liens and deposits made to obtain insurance), customary statutory,
common law and contractual rights of a bank to set-off claims of such
bank against cash on deposit with such bank, and Liens to secure the
performance of bids, tenders or trade contracts, or to secure statutory
obligations, surety or appeal bonds or other Liens of like general
nature, in any such case incurred in the ordinary course of business
and not in connection with the borrowing of money; provided in each
case, the obligation secured is not overdue or, if overdue, is being
contested in good faith by appropriate actions or proceedings;
(d) minor survey exceptions or minor defects, irregularities
in title, encumbrances, easements, restrictions or reservations, or
rights of others for rights-of-way, utilities and other similar
purposes, or zoning or other restrictions as to the use of real
properties, which are necessary for the conduct of the activities of
Borrower and its Restricted Subsidiaries or which customarily exist on
properties of corporations engaged in similar activities and similarly
situated and which do not in any event materially impair their use in
the operation of the business of Borrower and its Restricted
Subsidiaries;
(e) Liens securing Indebtedness owed Borrower or to any
Wholly-owned Subsidiary by any Restricted Subsidiary of Borrower;
(f) Liens existing as of the Effective Date and described on
Exhibit I hereto;
(g) Liens on the capital stock, partnership or other equity
interests held, directly or indirectly, by Borrower or any of its
Restricted Subsidiaries in a joint venture, provided that the proceeds
of Indebtedness of Borrower or such Restricted Subsidiary secured by
such Liens are in their entirety contributed or advanced to such joint
venture; provided, further, that (i) at the time of the creation,
issuance, assumption, guarantee or incurrence of any such Indebtedness
by Borrower or any of its Restricted Subsidiaries and after giving
effect thereto
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and to the application of the proceeds thereof, no Default or Event of
Default would exist, (ii) any such Indebtedness, created, issued,
assumed, guaranteed or incurred by Borrower or any of its Restricted
Subsidiaries shall have been created within the applicable limitations
of Section 8.2, (iii) with respect to any such Indebtedness neither
Borrower or any of its Restricted Subsidiaries, nor any of the property
or assets of Borrower or any of its Restricted Subsidiaries, other than
proceeds realized from the sale or other disposition of such capital
stock, partnership or other equity interests shall, directly or
indirectly, be liable for or secure in any manner whatsoever the
payment thereof and (iv) other than Indebtedness arising from a Lien on
assets of Borrower or any of its Restricted Subsidiaries consisting of
equity interest in an Unrestricted Subsidiary such Indebtedness shall
be incurred within the limitations provided in Section 7.3(e) and
Section 8.2(b) hereof;
(h) Liens on the capital stock, partnership or other equity
interests held, directly or indirectly, by Borrower or any of its
Restricted Subsidiaries in a joint venture, provided that the proceeds
of Indebtedness created by an Unrestricted Subsidiary or any other
Affiliate secured by such Liens are in their entirety contributed or
advanced to such joint venture; provided, further, that with respect to
any such Indebtedness neither Borrower or any of its Restricted
Subsidiaries, nor any of the property or assets of Borrower or any of
its Restricted Subsidiaries, other than proceeds realized from the sale
or other disposition of such capital stock, partnership or other equity
interests shall, directly or indirectly, be liable for or secure in any
manner whatsoever the payment thereof;
(i) Liens created or incurred after the Effective Date given
to secure the payment of the purchase price incurred in connection with
the acquisition or purchase of assets useful and intended to be used in
carrying on the business of Borrower or any of its Restricted
Subsidiaries, so long as such Liens were not incurred, extended or
renewed in contemplation of such acquisition or purchase; provided that
(i) the Lien shall attach solely to the assets acquired or purchased,
(ii) such Lien shall have been created or incurred no more than after
180 days of the date of acquisition or purchase, (iii) at the time of
acquisition or purchase of such assets, the aggregate amount remaining
unpaid on all Indebtedness secured by Liens on such assets, whether or
not assumed by Borrower or any of its Restricted Subsidiaries, shall
not exceed an amount equal to the lesser of the total purchase price or
fair market value at the time of acquisition or purchase of such assets
(as determined in good faith by the Board of Directors of Borrower),
(iv) if the Indebtedness secured by such Liens shall have been incurred
by a Restricted Subsidiary of Borrower, then and in such event such
Indebtedness shall be incurred within the limitations provided in
Section 7.3(e) and Section 8.2(b) hereof, and (v) at the time of the
creation, issuance, assumption, guarantee or incurrence of such
Indebtedness and after giving effect thereto and to the application of
the proceeds thereof, no Default, including, without limitation, a
Default under Section 7.3(e), or Event of Default would exist;
(j) Liens created or incurred after the Effective Date
existing on such assets at the time of acquisition thereof or at the
time of acquisition or purchase by Borrower or any of its Restricted
Subsidiaries of any business entity then owning such fixed assets, so
long
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as such Liens were not incurred, extended or renewed in contemplation
of such acquisition or purchase; provided that (i) the Lien shall
attach solely to the assets acquired or purchased, (ii) if the
Indebtedness secured by such Lien shall have been assumed by a
Restricted Subsidiary of Borrower, then and in such event such
Indebtedness shall be incurred within the limitations provided in
Section 7.3(e) and Section 8.2(b) hereof, and (iii) at the time of the
assumption of such Indebtedness and after the concurrent giving effect
thereto, no Default, including, without limitation, a Default under
Section 7.3(e), or Event of Default would exist;
(k) Liens created under charters entered into by Borrower or
any of its Restricted Subsidiaries in the ordinary course of its
business, as owner or lessor of an asset, creating leasehold interests
therein; provided that the creation of such Liens is otherwise
permitted within the terms of this Agreement;
(l) Liens created or incurred after the Effective Date given
to secure Indebtedness of Borrower or any of its Restricted
Subsidiaries in addition to the Liens permitted by the preceding
clauses (a) through (k) hereof; provided that all Indebtedness secured
by such Liens shall have been incurred within the applicable
limitations provided in Section 8.2; and
(m) any extension, renewal or refunding of any Lien permitted
by the preceding clauses (f) through (k) of this Section in respect of
the same property theretofore subject to such Lien in connection with
the extension, renewal or refunding of the Indebtedness secured
thereby; provided that (i) such extension, renewal or refunding of the
Indebtedness to which such Lien relates shall be without increase in
the principal amount remaining unpaid as of the date of such extension,
renewal or refunding, (ii) such Lien shall attach solely to the same
such property and (iii) at the time of the extension, renewal or
refunding of such Indebtedness and after giving effect thereto and to
the application of the proceeds thereof, no Default, including, without
limitation, a Default under Section 7.3(e), or Event of Default would
exist.
8.4 Dividends, Stock Purchases and Restricted Investments.
(a) Directly or indirectly, or through any Affiliate, declare
or make or incur any liability to declare or make any Distribution
(other than redemptions, acquisitions or retirements of common stock to
the extent of net cash proceeds received from the substantially
concurrent sale or exchange of common stock of Borrower) or make or
authorize any Restricted Investment, unless, immediately after giving
effect to the proposed Distribution or Restricted Investment, the
aggregate amount of Distributions declared in the case of dividends or
made in the case of other Distributions plus the aggregate amount of
Restricted Investments then held by Borrower and its Restricted
Subsidiaries (valued immediately after the making of such Restricted
Investment as provided in the definition thereof) during the period
from and after the date of this Agreement to and including the date of
declaration in the case of a dividend, the date of payment in the case
of any other Distribution and the date such Restricted Investment is
made, would not exceed the sum of:
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(i) $25,000,000; plus
(ii) 50% of Consolidated Net Income (or if such
Consolidated Net Income is a deficit figure, then minus 100%
of such deficit) for such period determined on a cumulative
basis commencing on April 1, 1998, to and including the date
of such declaration, payment or commitment; plus
(iii) an amount equal to the aggregate net cash
proceeds received by Borrower from the sale on or after the
Effective Date of shares of its common stock or other
Securities convertible into common stock of Borrower or the
amount that Indebtedness of Borrower owing to a Person other
than a Subsidiary is reduced by the conversion or exchange
after the Effective Date of such Indebtedness into common
stock of Borrower; plus
(iv) to the extent not included in the determination
of Consolidated Net Income any repayments of or returns in
cash on any Restricted Investment previously made within the
limitations of this Section 8.4(a), including the reissuance
of treasury stock or issuance of new stock of Borrower in
satisfaction of usual and customary employee benefit and other
like obligations of Borrower and its Subsidiaries that could
otherwise be settled in cash; plus
(v) an amount equal to the aggregate cash paid by
Borrower for shares of common stock of Borrower to the extent
additional shares of common stock of Borrower were issued by
Borrower in connection with the acquisition by Borrower of
assets within the twelve calendar month period immediately
preceding the date of determination under this Section.
(b) For the purposes of making computations under Section
8.4(a), the amount of any Distribution declared, paid or distributed or
Restricted Investment made in property or assets of Borrower or any of
its Restricted Subsidiaries shall be deemed to be the book value of
such property or assets as of the date of declaration in the case of a
dividend, the date of payment in the case of any other Distribution and
the date the Restricted Investment is made. Any corporation which
becomes a Restricted Subsidiary of Borrower after the date of this
Agreement shall be deemed to have made, at the time it becomes a
Restricted Subsidiary of Borrower, all Restricted Investments of such
corporation existing immediately after it becomes a Restricted
Subsidiary of Borrower.
(c) Borrower will not authorize a Distribution on its capital
stock which is not payable within 60 days of authorization. Borrower
may make any Distribution within 60 days after the declaration thereof
if at the time of declaration such Distribution would have complied
with this Section.
(d) Borrower will not authorize or make a Distribution on its
capital stock and neither Borrower nor any of its Restricted
Subsidiaries will make any Restricted Investment
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if after giving effect to the proposed Distribution or Restricted
Investment a Default or an Event of Default would exist.
8.5 Mergers, Consolidations and Sales of Assets.
(a) Consolidate with or be a party to a merger with any other
Person, or sell, lease or otherwise dispose of all or substantially all
of its assets; provided that:
(i) any Restricted Subsidiary of Borrower may merge
or consolidate with or into Borrower or any Wholly-owned
Restricted Subsidiary so long as in (1) any merger or
consolidation involving Borrower, Borrower shall be the
surviving or continuing corporation and (2) in any merger or
consolidation involving a Wholly-owned Restricted Subsidiary
(and not Borrower), the Wholly-owned Restricted Subsidiary
shall be the surviving or continuing corporation;
(ii) Borrower may consolidate or merge with any other
corporation if (1) Borrower is the surviving corporation in
connection with such consolidation or merger and (2) at the
time of such consolidation or merger and immediately after
giving effect thereto, (A) no Default or Event of Default
would exist and (B) Borrower would be permitted by the
provisions of Section 8.2(a) to incur at least $1.00 of
additional Indebtedness.
(b) Sell, lease, transfer, abandon as obsolete or otherwise
dispose of assets (except assets sold, leased or otherwise disposed of
in the ordinary course of business for fair market value and except as
provided in Section 8.5(a)(c); provided that the foregoing restrictions
do not apply to:
(i) the sale, lease, transfer or other disposition of
assets to Borrower or a Wholly-owned Restricted Subsidiary by
a Restricted Subsidiary of Borrower; or
(ii) the sale, lease, transfer or other disposition
of assets for cash or other property to a Person or Persons if
all of the following conditions are met:
(1) in the opinion of (i) the Board of
Directors of Borrower if the fair market value of the
assets exceeds $2,500,000 or (ii) otherwise a
Responsible Officer, the sale is for fair value and
is in the best interests of Borrower;
(2) immediately after the consummation of
the transaction and after giving effect thereto, (A)
no Default or Event of Default would exist and (B)
Borrower would be permitted by the provisions of
Section 8.2(a) to incur at least $1.00 of additional
Indebtedness; and
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(3) the entirety of the proceeds (net of
expenses and taxes arising in connection therewith)
("Net Proceeds") from any such sale or other
disposition shall be applied within 360 days of
receipt thereof by Borrower or a Restricted
Subsidiary of Borrower either (A) to the acquisition
(directly or through acquisition of a Restricted
Subsidiary of Borrower) of assets (other than cash,
cash equivalents or Securities) useful and intended
to be used in the operation of the business of
Borrower and its Restricted Subsidiaries and having a
fair market value (as determined in good faith by (i)
the Board of Directors of Borrower if the fair market
value of the assets exceeds $2,500,000 or (ii)
otherwise a Responsible Officer) at least equal to
that of the assets so disposed of or (B) towards the
offer of prepayment at any applicable prepayment
premium of Senior Indebtedness of Borrower owing to
any Person other than a Restricted Subsidiary of
Borrower or an Affiliate upon the terms and
conditions hereinafter provided; provided, that if
for any reason whatsoever Borrower does not apply all
of the Net Proceeds from any such sale in compliance
with clause (A) or (B) of this Section 8.5(b)(ii)(3)
within such 360 day period, then and in such event
the Commitments of the Lenders shall, unless the
Majority Lenders otherwise agree in writing,
automatically be reduced effective as of the
expiration of such 360 day period by a sum equal to
the amount by which the aggregate Net Proceeds from
all sales or other dispositions not so applied exceed
$5,000,000 in the aggregate.
Computations pursuant to this Section 8.5(b) shall include
dispositions made pursuant to Section 8.5(c) and computations pursuant
to Section 8.5(c) shall include dispositions made pursuant to this
Section 8.5(b).
(c) Sell, pledge or otherwise dispose of any shares of the
stock or other ownership interests (including as "stock" for the
purposes of this Section 8.5(c) any options or warrants to purchase
stock or other Securities exchangeable for or convertible into stock or
other ownership interests) of a Restricted Subsidiary of Borrower (said
stock, options, warrants and other Securities herein called "Subsidiary
Stock") or any Indebtedness of any Restricted Subsidiary of Borrower,
nor will any Restricted Subsidiary of Borrower issue, sell, pledge or
otherwise dispose of any shares of its own Subsidiary Stock, provided
that the foregoing restrictions do not apply to:
(i) the issue of directors' qualifying shares or
Regulatory Shares; or
(ii) the issue of Subsidiary Stock to Borrower; or
(iii) the sale or transfer by Borrower or any of its
Restricted Subsidiaries of any Subsidiary Stock to Borrower or
to a Wholly-owned Restricted Subsidiary; or
(iv) any other sale or other disposition at any one
time to a Person (other than directly or indirectly to an
Affiliate) of the entire Investment of Borrower and
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its other Restricted Subsidiaries in any Restricted Subsidiary
of Borrower if all of the following conditions are met:
(1) in the opinion of (i) Borrower's Board
of Directors if the fair market value of the assets
exceeds $2,500,000 or (ii) otherwise a Responsible
Officer, the sale is for fair value and is in the
best interests of Borrower;
(2) immediately after the consummation of
the transaction and after giving effect thereto, such
Restricted Subsidiary shall have no Indebtedness of
or continuing Investment in the capital stock of
Borrower or of any of its Restricted Subsidiaries and
any such Indebtedness or Investment shall have been
discharged or acquired, as the case may be, by
Borrower or a Restricted Subsidiary of Borrower; and
(3) immediately after the consummation of
the transaction and after giving effect thereto, (A)
no Default or Event of Default would exist and (B)
Borrower would be permitted by the provisions of
Section 8.2(a) to incur at least $1.00 of additional
Indebtedness; and
(4) the entirety of the Net Proceeds from
any such sale or other disposition shall be applied
within 360 days of receipt thereof by Borrower or a
Restricted Subsidiary of Borrower either (A) to the
acquisition (directly or through acquisition of a
Restricted Subsidiary of Borrower) of assets (other
than cash, cash equivalents or Securities) useful and
intended to be used in the operation of the business
of Borrower and its Restricted Subsidiaries and
having a fair market value (as determined in good
faith by (i) the Board of Directors of Borrower if
the fair market value of the assets exceeds
$2,500,000 or (ii) otherwise a Responsible Officer)
at least equal to that of the assets so disposed of
or (B) towards the offer of prepayment at any
applicable prepayment premium of Senior Indebtedness
of Borrower owing to any Person other than a
Restricted Subsidiary of Borrower or an Affiliate
upon the terms and conditions hereinafter provided;
provided, that if for any reason whatsoever Borrower
does not apply all of the Net Proceeds from any such
sale in compliance with clause (A) or (B) of this
Section 8.5(c)(iv)(4) within such 360 day period,
then and in such event the Commitments of the Lenders
shall, unless the Majority Lenders otherwise agree in
writing, automatically be reduced effective as of the
expiration of such 360 day period by a sum equal to
the amount by which the aggregate Net Proceeds from
all sales or other dispositions not so applied exceed
$5,000,000 in the aggregate.
Computations pursuant to this Section 8.5(c) shall include
dispositions made pursuant to Section 8.5(b) and computations pursuant
to Section 8.5(b) shall include dispositions made pursuant to this
Section 8.5(c).
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8.6 Limitation on Restricted Agreements. Enter into, or suffer to
exist, any agreement with any Person which, directly or indirectly, prohibits or
limits the ability of any Restricted Subsidiary of Borrower to (a) pay dividends
or make other distributions to Borrower or prepay any Indebtedness owed to
Borrower, (b) make loans or advances to Borrower or (c) transfer any of its
properties or assets to Borrower other than for such restrictions existing under
or by reason of (i) applicable law or any order or ruling by any governmental
authority; (ii) any agreement relating to any Indebtedness permitted under this
Agreement; (iii) customary non-assignment provisions of any contract; (iv)
customary restrictions on cash or other deposits imposed by customers under
contracts entered into in the ordinary course of business; (v) purchase money
obligations for property acquired in the ordinary course of business that impose
restrictions on the property so acquired; (vi) contracts for the sale of assets,
including, without limitation, customary restrictions with respect to a
Restricted Subsidiary of Borrower pursuant to an agreement that has been entered
into for the sale of all or substantially all of the capital stock or assets of
such Restricted Subsidiary; (vii) any agreement or other instrument governing
Indebtedness of a Person acquired by Borrower or any of its Restricted
Subsidiaries (or of a Subsidiary of such Person which becomes a Restricted
Subsidiary of Borrower) in existence at the time of such acquisition (but not
created in contemplation thereof), which restriction is not applicable to
Borrower or any of its Restricted Subsidiaries, or assets of any such Person,
other than the Person, or assets or Subsidiaries of the Person, so acquired; or
(viii) provisions contained in agreements relating to Indebtedness which
prohibit the transfer of all or substantially all of the assets of the obligor
thereunder unless the transferee shall assume the obligations of the obligor
under such agreement or instrument.
8.7 Nature of Business. Engage in any business if, as a result, the
general nature of the business, taken on a consolidated basis, which would then
be engaged in by Borrower and its Restricted Subsidiaries would be substantially
changed from the general nature of the business engaged in by Borrower and its
Restricted Subsidiaries on the date of this Agreement and businesses related
thereto.
8.8 Transactions with Affiliates. Enter into or be a party to any
transaction or arrangement with any Affiliate (including, without limitation,
the purchase from, sale to or exchange of property with, or the rendering of any
service by or for, any Affiliate), except in the ordinary course of and pursuant
to the reasonable requirements of Borrower's or its applicable Restricted
Subsidiary's business and upon fair and reasonable terms not significantly less
favorable to Borrower or such Restricted Subsidiary than would obtain in a
comparable arm's-length transaction with a Person other than an Affiliate.
8.9 Designation of Subsidiaries. Designate or redesignate any
Unrestricted Subsidiary as a Restricted Subsidiary of Borrower or designate or
redesignate any Restricted Subsidiary of Borrower as an Unrestricted Subsidiary
unless the following conditions precedent have been satisfied:
(a) Borrower shall have given not less than 10 days' prior
written notice to Agent that a Senior Financial Officer has made such
determination,
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(b) at the time of such designation or redesignation and
immediately after giving effect thereto: (i) no Default or Event of
Default would exist and (ii) Borrower would be permitted by the
provisions of Section 8.2(a) to incur at least $1.00 of additional
Indebtedness,
(c) in the case of the designation of a Restricted Subsidiary
of Borrower as an Unrestricted Subsidiary and after giving effect
thereto, (i) such Unrestricted Subsidiary so designated shall not,
directly or indirectly, own any Indebtedness or capital stock of
Borrower or any of its Restricted Subsidiaries, (ii) such designation
shall be deemed a sale of assets and shall be permitted by the
provisions of Section 8.5(b)(ii), (iii) neither Borrower nor any of its
Restricted Subsidiaries shall be liable for any Indebtedness of such
Unrestricted Subsidiary so designated (other than Indebtedness which at
the time of incurrence shall be permitted within the limitations of
Section 8.2(b) or at the time of such designation shall be permitted
within the limitations of Sections 8.4(a) and 8.2(b)), (iv) no default
or condition in respect of any Indebtedness of such Unrestricted
Subsidiary so designated could as a consequence of such default or
condition cause or permit any Indebtedness of Borrower or any of its
Restricted Subsidiaries to become, or to be declared, due and payable
before its stated maturity or before its regularly scheduled dates of
payment, (v) any continuing Investment in the capital stock of such
Subsidiary held by Borrower or of any of its Restricted Subsidiaries
shall at the time of such designation be permitted (without reference
to paragraph (a) of the definition of "Restricted Investments"), within
the limitations of Section 8.4, and (vi) such designation shall not
result in the imposition of a Lien on the assets of Borrower or any of
its Restricted Subsidiaries, other than a Lien permitted within the
limitations of Section 8.3,
(d) in the case of the designation of an Unrestricted
Subsidiary as a Restricted Subsidiary of Borrower and after giving
effect thereto: (i) all outstanding Indebtedness and Preferred Stock of
such Restricted Subsidiary so designated shall be permitted within the
applicable limitations of Section 8.2(b) and (ii) all existing Liens of
such Restricted Subsidiary so designated shall be permitted within the
applicable limitations of Section 8.3, other than Section 8.3(f)
notwithstanding that any such Lien existed as of the Effective Date),
(e) in the case of the designation of a Restricted Subsidiary
of Borrower as an Unrestricted Subsidiary, such Restricted Subsidiary
shall not at any time after the date of this Agreement have previously
been designated as an Unrestricted Subsidiary more than once, and
(f) in the case of the designation of an Unrestricted
Subsidiary as a Restricted Subsidiary of Borrower, such Unrestricted
Subsidiary shall not at any time after the date of this Agreement have
previously been designated as a Restricted Subsidiary of Borrower more
than once.
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9. DEFAULTS.
9.1 Events of Default. If any one or more of the following events
(herein called "Events of Default") shall occur, then Agent may (and at the
direction of the Majority Lenders, shall) do any or all of the following: (1)
without notice to Borrower or any other Person, declare the Commitments
terminated (whereupon the Commitments shall be terminated); (2) declare the
principal amount then outstanding of and the unpaid accrued interest on the
Loans and all fees and all other amounts payable hereunder, under the Notes and
under the other Loan Documents to be forthwith due and payable, whereupon such
amounts shall be and become immediately due and payable, without notice
(including, without limitation, notice of acceleration and notice of intent to
accelerate), presentment, demand, protest or other formalities of any kind, all
of which are hereby expressly waived by Borrower; provided that in the case of
the occurrence of an Event of Default with respect to Borrower or any of its
Restricted Subsidiaries referred to in clause (f), (g) or (h) of this Section
9.1, the Commitments shall be automatically terminated and the principal amount
then outstanding of and unpaid accrued interest on the Loans and all fees and
all other amounts payable hereunder, under the Notes and under the other Loan
Documents shall be and become automatically and immediately due and payable,
without notice (including, without limitation, notice of acceleration and notice
of intent to accelerate), presentment, demand, protest or other formalities of
any kind, all of which are hereby expressly waived by Borrower, and (3) exercise
any or all other rights and remedies available to Agent or any of the Lenders
under the Loan Documents, at law or in equity:
(a) Payments - (i) Borrower shall fail to make any payment or
required prepayment of any installment of principal on the Loans
payable under the Notes, this Agreement or the other Loan Documents
when due or (ii) Borrower fails to make any payment or required payment
of interest with respect to the Loans or any other fee or amount under
the Notes, this Agreement or the other Loan Documents when due and, in
the case of clause (ii), such failure to pay continues unremedied for a
period of five days; or
(b) Other Obligations - Borrower or any of its Restricted
Subsidiaries shall default in the payment when due of any principal of
or interest on any Indebtedness having an outstanding principal amount
(other than the Loans) of at least, in the case of any single default,
$3,000,000 and, in the case of all defaults collectively, $5,000,000
and such default shall continue beyond any applicable period of grace
and shall give rise to a right on the part of the holder of such
Indebtedness to accelerate such Indebtedness; or any event or condition
shall occur which results in the acceleration of the maturity of any
such Indebtedness or enables (or, with the giving of notice or lapse of
time or both, would enable) the holder of any such Indebtedness or any
Person acting on such holder's behalf to accelerate the maturity
thereof and such event or condition shall not be cured within any
applicable period of grace; or
(c) Representations and Warranties - any representation or
warranty made or deemed made by or on behalf of Borrower in this
Agreement or any other Loan Document or in any certificate furnished or
made by Borrower to Agent or the Lenders in connection
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herewith or therewith shall prove to have been incorrect, false or
misleading in any material respect as of the date thereof or as of the
date as of which the facts therein set forth were stated or certified
or deemed stated or certified; or
(d) Affirmative Covenants - (i) default shall be made in the
due observance or performance of any of the covenants or agreements
contained in Section 7.3 hereof or (ii) default is made in the due
observance or performance of any of the other covenants and agreements
contained in Section 7 hereof or any other affirmative covenant of
Borrower contained in this Agreement or any other Loan Document and
such default continues unremedied for a period of 30 days after (x)
notice thereof is given by Agent to Borrower or (y) such default
otherwise becomes known to any executive officer of Borrower, whichever
is earlier; or
(e) Negative Covenants - default is made in the due observance
or performance by Borrower of any of the other covenants or agreements
contained in Section 8 of this Agreement or of any other negative
covenant of Borrower contained in this Agreement or any other Loan
Document; or
(f) Involuntary Bankruptcy or Receivership Proceedings - a
receiver, conservator, liquidator or trustee of Borrower or any of its
Restricted Subsidiaries or of any Property of any such Person is
appointed by the order or decree of any court or agency or supervisory
authority having jurisdiction, and such decree or order remains in
effect for more than 60 days; or Borrower or any of its Restricted
Subsidiaries is adjudicated bankrupt or insolvent; or any of such
Person's Property is sequestered by court order and such order remains
in effect for more than 60 days; or a petition is filed against
Borrower or any of its Restricted Subsidiaries under any state or
federal bankruptcy, reorganization, arrangement, insolvency,
readjustment or debt, dissolution, liquidation or receivership law or
any jurisdiction, whether now or hereafter in effect, and is not
dismissed within 60 days after such filing; or
(g) Voluntary Petitions or Consents - Borrower or any of its
Restricted Subsidiaries commences a voluntary case or other proceeding
or order seeking liquidation, reorganization, arrangement, insolvency,
readjustment of debt, dissolution, liquidation or other relief with
respect to itself or its debts or other liabilities 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 consents 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 fails generally to, or
cannot, pay its debts generally as they become due or takes any
corporate action to authorize or effect any of the foregoing; or
(h) Assignments for Benefit of Creditors or Admissions of
Insolvency - Borrower or any of its Restricted Subsidiaries makes an
assignment for the benefit of its creditors, or admits in writing its
inability to pay its debts generally as they become due, or consents to
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the appointment of a receiver, trustee, or liquidator of such Person or
of all or any substantial part of its Property; or
(i) Undischarged Judgments - a final judgment or judgments for
the payment of money exceeding, in the aggregate, $5,000,000 (exclusive
of amounts covered by insurance) is rendered by any court or other
governmental body against Borrower or any of its Restricted
Subsidiaries and such Person does not discharge the same or provide for
its discharge in accordance with its terms, or procure a stay of
execution thereof within 30 days from the date of entry thereof; or
(j) Change of Control - any Change of Control shall occur.
9.2 Right of Setoff. Upon the occurrence and during the continuance of
any Event of Default, each Lender is hereby authorized at any time and from time
to time, without notice to Borrower (any such notice being expressly waived by
Borrower), to setoff and apply any and all deposits, whether general or special,
time or demand, provisional or final (but excluding the funds held in accounts
clearly designated as escrow or trust accounts held by Borrower for the benefit
of Persons which are not Affiliates of Borrower), whether or not such setoff
results in any loss of interest or other penalty, and including without
limitation all certificates of deposit, at any time held, and any other funds or
Property at any time held, and other Indebtedness at any time owing by such
Lender to or for the credit or the account of Borrower against any and all of
the Obligations irrespective of whether or not such Lender or Agent will have
made any demand under this Agreement, the Notes or any other Loan Document. Each
Lender agrees to promptly notify Borrower and Agent after any such setoff and
application, provided that the failure to give such notice will not affect the
validity of such setoff and application. The rights of Agent and the Lenders
under this Section are in addition to other rights and remedies (including
without limitation other rights of setoff) which Agent or the Lenders may have.
This Section is subject to the terms and provisions of Sections 4.5 and 11.7
hereof.
9.3 Remedies Cumulative. No remedy, right or power conferred upon Agent
or any Lender is intended to be exclusive of any other remedy, right or power
given hereunder or now or hereafter existing at law, in equity, or otherwise,
and all such remedies, rights and powers shall be cumulative.
10. AGENT.
10.1 Appointment, Powers and Immunities. Each Lender hereby irrevocably
appoints and authorizes Agent to act as its agent hereunder and under the other
Loan Documents with such powers as are specifically delegated to Agent by the
terms hereof and thereof, together with such other powers as are reasonably
incidental thereto. Any Loan Documents executed in favor of Agent shall be held
by Agent for the ratable benefit of the Lenders. Agent ("Agent" as used in this
Section 10 shall include reference to its Affiliates and its own and its
Affiliates' respective officers, shareholders, directors, employees and agents)
(a) shall not have any duties or responsibilities except those expressly set
forth in this Agreement and the other Loan Documents, and shall not by reason
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of this Agreement or any other Loan Document be a trustee or fiduciary for any
Lender; (b) shall not be responsible to any Lender for any recitals, statements,
representations or warranties contained in this Agreement or any other Loan
Document, or in any certificate or other document referred to or provided for
in, or received by any of them under, this Agreement or any other Loan Document,
or for the value, validity, effectiveness, genuineness, enforceability,
execution, filing, registration, collectibility, recording, perfection,
existence or sufficiency of this Agreement or any other Loan Document or any
other document referred to or provided for herein or therein or any Property
covered thereby or for any failure by Borrower or any other Person to perform
any of its obligations hereunder or thereunder, and shall not have any duty to
inquire into or pass upon any of the foregoing matters; (c) shall not be
required to initiate or conduct any litigation or collection proceedings
hereunder or under any other Loan Document except to the extent requested by the
Majority Lenders; (d) shall not be responsible for any mistake of law or fact or
any action taken or omitted to be taken by it hereunder or under any other Loan
Document or any other document or instrument referred to or provided for herein
or therein or in connection herewith or therewith, INCLUDING, WITHOUT
LIMITATION, PURSUANT TO ITS OWN NEGLIGENCE, except for its own gross negligence
or willful misconduct; (e) shall not be bound by or obliged to recognize any
agreement among or between Borrower and any Lender to which Agent is not a
party, regardless of whether Agent has knowledge of the existence of any such
agreement or the terms and provisions thereof; (f) shall not be charged with
notice or knowledge of any fact or information not herein set out or provided to
Agent in accordance with the terms of this Agreement or any other Loan Document;
(g) shall not be responsible for any delay, error, omission or default of any
mail, telegraph, cable or wireless agency or operator, and (h) shall not be
responsible for the acts or edicts of any Governmental Authority. Agent may
employ agents and attorneys-in-fact and shall not be responsible for the
negligence or misconduct of any such agents or attorneys-in-fact selected by it
with reasonable care.
10.2 Reliance. Agent shall be entitled to rely upon any certification,
notice or other communication (including any thereof by telephone, telegram or
cable) believed by it to be genuine and correct and to have been signed or sent
by or on behalf of the proper Person or Persons, and upon advice and statements
of legal counsel (which may be counsel for Borrower), independent accountants
and other experts selected by Agent. Agent shall not be required in any way to
determine the identity or authority of any Person delivering or executing the
same. As to any matters not expressly provided for by this Agreement or any
other Loan Document, Agent shall in all cases be fully protected in acting, or
in refraining from acting, hereunder and thereunder in accordance with
instructions of the Majority Lenders, and any action taken or failure to act
pursuant thereto shall be binding on all of the Lenders. If any order, writ,
judgment or decree shall be made or entered by any court affecting the rights,
duties and obligations of Agent under this Agreement or any other Loan Document,
then and in any of such events Agent is authorized, in its sole discretion, to
rely upon and comply with such order, writ, judgment or decree which it is
advised by legal counsel of its own choosing is binding upon it under the terms
of this Agreement, the relevant Loan Document or otherwise; and if Agent
complies with any such order, writ, judgment or decree, then it shall not be
liable to any Lender or to any other Person by reason of such compliance even
though such order, writ, judgment or decree may be subsequently reversed,
modified, annulled, set aside or vacated.
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10.3 Defaults. Agent shall not be deemed to have knowledge of the
occurrence of a Default or Event of Default (other than the non-payment of
principal of or interest on Loans) unless Agent has received notice from a
Lender or Borrower specifying such Default or Event of Default and stating that
such notice is a "Notice of Default." In the event that Agent receives such a
Notice of Default, Agent shall give prompt notice thereof to the Lenders (and
shall give each Lender prompt notice of each such non-payment). Agent shall
(subject to Section 10.7 hereof) take such action with respect to such Notice of
Default as shall be directed by the Majority Lenders and within its rights under
the Loan Documents and at law or in equity, provided that, unless and until
Agent shall have received such directions, Agent may (but shall not be obligated
to) take such action, or refrain from taking such action, permitted hereby with
respect to such Notice of Default as it shall deem advisable in the best
interests of the Lenders and within its rights under the Loan Documents, at law
or in equity.
10.4 Material Written Notices. In the event that Agent receives any
written notice of a material nature from Borrower under the Loan Documents,
Agent shall promptly inform each of the Lenders thereof.
10.5 Rights as a Lender. With respect to its Commitments and the Loans
made by it, ▇▇▇▇▇ Fargo in its capacity as a Lender hereunder shall have the
same rights and powers hereunder as any other Lender and may exercise the same
as though it were not acting in its agency capacity, and the term "Lender" or
"Lenders" shall, unless the context otherwise indicates, include Agent in its
individual capacity. Agent may (without having to account therefor to any
Lender) accept deposits from, lend money to and generally engage in any kind of
banking, trust, letter of credit, agency or other business with Borrower (and
any of its Affiliates) as if it were not acting as Agent; and Agent may accept
fees and other consideration from Borrower (in addition to the fees heretofore
agreed to between Borrower and Agent) for services in connection with this
Agreement or otherwise without having to account for the same to the Lenders.
10.6 Indemnification. The Lenders agree to indemnify Agent (to the
extent not reimbursed under Section 11.3 or Section 11.4 hereof, but without
limiting the obligations of Borrower under said Sections 11.3 and 11.4), ratably
in accordance with the Lenders' respective Commitments (or, after termination of
the Commitments, ratably in accordance with the Loans held by them,
respectively), for any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind and nature whatsoever, REGARDLESS OF WHETHER CAUSED IN WHOLE OR IN PART BY
THE NEGLIGENCE OF ANY INDEMNIFIED PARTIES, which may be imposed on, incurred by
or asserted against Agent in any way relating to or arising out of this
Agreement or any other Loan Document or any other documents contemplated by or
referred to herein or therein or the transactions contemplated hereby or thereby
(including, without limitation, the costs and expenses which Borrower is
obligated to pay under Sections 11.3 and 11.4 hereof, interest, penalties,
attorneys' fees and amounts paid in settlement, but excluding, unless an Event
of Default has occurred and is continuing, normal administrative costs and
expenses incident to the performance of its agency duties hereunder) or the
enforcement of any of the terms hereof or thereof or of any such other
documents; provided that no Lender shall be liable for any of the foregoing to
the extent they arise from the gross negligence or willful misconduct of
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the party to be indemnified. The obligations of the Lenders under this Section
10.6 shall survive the termination of this Agreement and the repayment of the
Obligations.
10.7 Non-Reliance on Agent and Other Lenders. Each Lender agrees that
it has received current financial information with respect to Borrower that it
has, independently and without reliance on Agent or any other Lender and based
on such documents and information as it has deemed appropriate, made its own
credit analysis of Borrower and decision to enter into this Agreement and that
it will, independently and without reliance upon Agent or any other Lender, and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own analysis and decisions in taking or not taking
action under this Agreement or any of the other Loan Documents. Agent shall not
be required to keep itself informed as to the performance or observance by
Borrower of this Agreement or any of the other Loan Documents or any other
document referred to or provided for herein or therein or to inspect the
Properties or books of any Person. Except for notices, reports and other
documents and information expressly required to be furnished to the Lenders by
Agent hereunder or under the other Loan Documents, Agent shall not have any duty
or responsibility to provide any Lender with any credit or other information
concerning the affairs, financial condition or business of any Person which may
come into the possession of Agent.
10.8 Failure to Act. Except for action expressly required of Agent
hereunder or under the other Loan Documents, Agent shall in all cases be fully
justified in failing or refusing to act hereunder and thereunder unless it shall
receive further assurances to its satisfaction by the Lenders of their
indemnification obligations under Section 10.6 hereof against any and all
liability and expense which may be incurred by it by reason of taking or
continuing to take any such action.
10.9 Resignation or Removal of Agent. Subject to the appointment and
acceptance of a successor Agent as provided below, Agent may resign at any time
by giving notice thereof to the Lenders and Borrower, and Agent may be removed
at any time with or without cause by the Majority Lenders; provided, that Agent
shall continue as Agent until such time as any successor shall have accepted
appointment as Agent hereunder. Upon any such resignation or removal, (i) the
Majority Lenders with the consent of Borrower unless an Event of Default has
occurred and is continuing shall have the right to appoint a successor Agent so
long as such successor Agent is also a Lender at the time of such appointment
and (ii) the Majority Lenders shall have the right to appoint a successor Agent
that is not a Lender at the time of such appointment so long as Borrower
consents to such appointment (which consent shall not be unreasonably withheld).
If no successor Agent shall have been so appointed by the Majority Lenders and
accepted such appointment within 30 days after the retiring Agent's giving of
notice of resignation or the Majority Lenders' removal of the retiring Agent,
then the retiring Agent may, on behalf of the Lenders, appoint a successor
Agent. Any successor Agent shall be a bank which has an office in the United
States and a combined capital and surplus of at least $250,000,000. Upon the
acceptance of any appointment as Agent hereunder by a successor Agent, such
successor Agent shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Agent and the retiring
Agent shall be discharged from its duties and obligations hereunder and under
any other Loan Documents. Such successor Agent shall promptly specify by notice
to Borrower its Payment Office referred to in Section 3.1 and Section 4 hereof.
After any retiring Agent's resignation or removal hereunder as Agent, the
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provisions of this Section 10 shall continue in effect for its benefit in
respect of any actions taken or omitted to be taken by it while it was acting as
Agent.
10.10 No Partnership. Neither the execution and delivery of this
Agreement nor any of the other Loan Documents nor any interest the Lenders,
Agent or any of them may now or hereafter have in all or any part of the
Obligations shall create or be construed as creating a partnership, joint
venture or other joint enterprise between the Lenders or among the Lenders and
Agent. The relationship between the Lenders, on the one hand, and Agent, on the
other, is and shall be that of principals and agent only, and nothing in this
Agreement or any of the other Loan Documents shall be construed to constitute
Agent as trustee or other fiduciary for any Lender or to impose on Agent any
duty, responsibility or obligation other than those expressly provided for
herein and therein.
10.11 Authority of Agent. Each Lender acknowledges that the rights and
responsibilities of Agent under this Agreement and the Loan Documents with
respect to any action taken by Agent or the exercise or non-exercise by Agent of
any option, right, request, judgment or other right or remedy provided for
herein or resulting or arising out of this Agreement and/or the other Loan
Documents shall, as between Agent and the Lenders, be governed by this Agreement
and by such other agreements with respect thereto as may exist from time to time
among them, but, as between Agent and Borrower, Agent shall be conclusively
presumed to be acting as agent for the Lenders with full and valid authority so
to act or refrain from acting; and Borrower shall not be under any obligation,
or entitlement, to make any inquiry respecting such authority.
11. MISCELLANEOUS.
11.1 Waiver. No waiver of any Default or Event of Default shall be a
waiver of any other Default or Event of Default. No failure on the part of Agent
or any Lender to exercise and no delay in exercising, and no course of dealing
with respect to, any right, power or privilege under any Loan Document shall
operate as a waiver thereof, nor shall any single or partial exercise of any
right, power or privilege thereunder preclude any other or further exercise
thereof or the exercise of any other right, power or privilege. The remedies
provided in the Loan Documents are cumulative and not exclusive of any remedies
provided by law or in equity.
11.2 Notices. All notices and other communications provided for herein
(including, without limitation, any modifications of, or waivers or consents
under, this Agreement) shall be given or made by telegraph, telecopy (confirmed
by mail), cable or other writing and telecopied, telegraphed, cabled, mailed or
delivered to the intended recipient at the "Address for Notices" specified below
its name on the signature pages hereof (or provided for in an Assignment and
Acceptance); or, as to any party hereto, at such other address as shall be
designated by such party in a notice (given in accordance with this Section) (i)
as to Borrower, to Agent, (ii) as to Agent, to Borrower and to each Lender, and
(iii) as to any Lender, to Borrower and Agent. Except as otherwise provided in
this Agreement, all such notices or communications shall be deemed to have been
duly given when (i) transmitted by telecopier or delivered to the telegraph or
cable office, (ii) personally delivered, (iii) one Business Day after deposit
with a nationally recognized overnight mail or delivery service, postage prepaid
or (iv) three Business Days' after deposit in a receptacle
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maintained by the United States Postal Service, postage prepaid, registered or
certified mail, return receipt requested, in each case given or addressed as
aforesaid.
11.3 Expenses, Etc. Whether or not any Loan is ever made, Borrower
shall pay or reimburse within 10 Business Days after written demand (a) Agent
for paying the reasonable fees and expenses of legal counsel to Agent, together
with the reasonable fees and expenses of each local counsel to Agent, in
connection with the preparation, negotiation, execution and delivery of this
Agreement (including the exhibits and schedules hereto) and the other Loan
Documents and the making of the Loans, and any modification, supplement or
waiver of any of the terms of this Agreement or any other Loan Document; (b)
Agent for any reasonable and customary lien search fees; (c) Agent for
reasonable out-of-pocket expenses incurred in connection with the preparation,
documentation of the Loans or any of the Loan Documents of the Loans; (d) Agent
for paying all transfer, stamp, documentary or other similar taxes, assessments
or charges levied by any governmental or revenue authority in respect of this
Agreement or any other Loan Document or any other document referred to herein or
therein; and (e) following the occurrence and during the continuation of an
Event of Default, any Lender or Agent for paying all amounts reasonably
expended, advanced or incurred by such Lender or Agent to satisfy any obligation
of Borrower under this Agreement or any other Loan Document, to collect the
Obligations or to enforce, protect, preserve or defend the rights of the Lenders
or Agent under this Agreement or any other Loan Document, including, without
limitation, fees and expenses incurred in connection with such Lender's or
Agent's participation as a member of a creditor's committee in a case commenced
with Borrower or any of its Restricted Subsidiaries as debtor under the
Bankruptcy Code or other similar law, fees and expenses incurred in connection
with lifting the automatic stay prescribed in Section 362 of the Bankruptcy Code
and fees and expenses incurred in connection with any action pursuant to
Section 1129 of the Bankruptcy Code and all other reasonable and customary
out-of-pocket expenses incurred by such Lender or Agent in connection with such
matters, together with interest thereon at the Past Due Rate on each such amount
from the due date until the date of reimbursement to such Lender or Agent.
11.4 Indemnification. Borrower shall indemnify each of Agent, the
Lenders, any Person that was previously a Lender hereunder and each affiliate
thereof and their respective directors, officers, employees and agents from, and
hold each of them harmless against, any and all losses, liabilities, claims or
damages to which any of them may become subject, REGARDLESS OF WHETHER CAUSED IN
WHOLE OR IN PART BY THE NEGLIGENCE OF ANY INDEMNIFIED PARTIES, insofar as such
losses, liabilities, claims or damages arise out of or result from any (i)
actual or proposed use by Borrower of the proceeds of any extension of credit
(whether a Loan) by any Lender hereunder; (ii) breach by Borrower of this
Agreement or any other Loan Document; (iii) violation by Borrower or any of its
Restricted Subsidiaries of any Legal Requirement, or (iv) investigation,
litigation or other proceeding relating to any of the foregoing, and Borrower
shall reimburse Agent, each Lender, and each Affiliate thereof and their
respective directors, officers, employees and agents, upon demand for any
reasonable and customary expenses (including reasonable and customary legal
fees) incurred in connection with any such investigation or proceeding;
provided, however, that Borrower shall not have any obligations pursuant to this
Section with respect to any losses, liabilities, claims, damages or expenses
incurred by the Person
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seeking indemnification by reason of the gross negligence or willful misconduct
of that Person or with respect to any disputes between or among any of Agent and
Lenders. Nothing in this Section is intended to limit the obligations of
Borrower under any other provision of this Agreement. In the case of any
indemnification hereunder, Agent or the respective Lender, as appropriate, shall
give written notice to Borrower of any such claim or demand being made against
an indemnified person and Borrower shall have the non-exclusive right to join in
the defense against any such claim or demand, provided that if Borrower provides
a defense, the indemnified person shall bear its own cost of defense unless
there is a conflict of interests between Borrower and such indemnified person.
No Indemnified Person may settle any claim to be indemnified without the consent
of Borrower, such consent not to be unreasonably withheld or delayed and not to
be required if an Event of Default specified in Section 9.1(f), (g) or (h)
exists.
11.5 Amendments, Etc. No amendment or modification of this Agreement,
the Notes or any other Loan Document shall in any event be effective against
Borrower unless the same shall be agreed or consented to in writing by such
Person. No amendment, modification or waiver of any provision of this Agreement,
the Notes or any other Loan Document, nor any consent to any departure by
Borrower therefrom, shall in any event be effective against the Lenders unless
the same shall be agreed or consented to in writing by the Majority Lenders, and
each such waiver or consent shall be effective only in the specific instance and
for the specific purpose for which given; provided, that no amendment,
modification, waiver or consent shall, unless in writing and signed by each
Lender affected thereby, do any of the following: (a) increase any Commitment of
any of the Lenders (or reinstate any termination or reduction of the
Commitments) or subject any of the Lenders to any additional obligations; (b)
reduce the principal of, or interest on, any Loan or fee hereunder; (c) postpone
or extend the Maturity Date or any scheduled date fixed for any payment of
principal of, or interest on, any Loan, fee or other sum to be paid hereunder or
waive any Event of Default described in Section 9.1(a) hereof; (d) change the
percentage of any of the Commitments or of the aggregate unpaid principal amount
of any of the Loans, or the percentage of Lenders, which shall be required for
the Lenders or any of them to take any action under this Agreement, or (e)
change any provision contained in Sections 7.9, 11.3 or 11.4 hereof or this
Section 11.5. Notwithstanding anything in this Section 11.5 to the contrary, no
amendment, modification, waiver or consent shall be made with respect to Section
10 without the consent of Agent to the extent it affects Agent, as Agent.
11.6 Successors and Assigns.
(a) This Agreement shall be binding upon and inure to the
benefit of Borrower, Agent and the Lenders and their respective
successors and permitted assigns; provided, however, that, except as
permitted by Section 8.5 hereof, Borrower may not assign or transfer
any of its rights or obligations hereunder without the prior written
consent of all of the Lenders, and any such assignment or transfer
without such consent shall be null and void. Each Lender may sell
participations to any Person in all or part of any Loan, or all or part
of its Notes or Commitments, in which event, without limiting the
foregoing, the provisions of the Loan Documents shall inure to the
benefit of each purchaser of a participation; provided, however, the
pro rata treatment of payments, as described in Section 4.2 hereof and
rights
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to compensation under Sections 3.3 and 7.9 hereof, shall be determined
as if such Lender had not sold such participation. Any Lender that
sells one or more participations to any Person shall not be relieved by
virtue of such participation from any of its obligations to Borrower
under this Agreement relating to the Loans. In the event any Lender
shall sell any participation, such Lender shall retain the sole right
and responsibility to enforce the obligations of Borrower relating to
the Loans, including, without limitation, the right to approve any
amendment, modification or waiver of any provision of this Agreement
other than amendments, modifications or waivers with respect to (i) any
fees payable hereunder to the Lenders and (ii) the amount of principal
or the rate of interest payable on, or the dates fixed for the
scheduled repayment of principal of, the Loans.
(b) Each Lender may assign to one or more Lenders or any other
Person all or a portion of its interests, rights and obligations under
this Agreement; provided, however, that (i) the amount of the
Commitment of the assigning Lender subject to each such assignment
shall in no event be less than $5,000,000; (ii) other than in the case
of an assignment to another Lender (that is, at the time of the
assignment, a party hereto) or to an Affiliate of such Lender or to a
Federal Reserve Bank, Agent and, so long as no Event of Default shall
have occurred and be continuing, Borrower must each give its prior
written consent, which consents shall not be unreasonably withheld, and
(iii) the parties to each such assignment shall execute and deliver to
Agent, for its acceptance an Assignment and Acceptance in substantially
the form of Exhibit D hereto (each an "Assignment and Acceptance") with
blanks appropriately completed, together with any Note or Notes subject
to such assignment and a processing and recording fee of $3,000 paid by
the assignee (for which Borrower will have no liability). Upon such
execution, delivery and acceptance, from and after the effective date
specified in each Assignment and Acceptance, (A) the assignee
thereunder shall be a party hereto and, to the extent provided in such
Assignment and Acceptance, have the rights and obligations of a Lender
hereunder and (B) the Lender thereunder shall, to the extent provided
in such Assignment and Acceptance, be released from its obligations
under this Agreement (and, in the case of an Assignment and Acceptance
covering all or the remaining portion of an assigning Lender's rights
and obligations under this Agreement, such Lender shall cease to be a
party hereto except in respect of provisions of this Agreement which
survive payment of the Obligations and termination of the Commitments).
Notwithstanding anything contained in this Agreement to the contrary,
any Lender may at any time assign all or any portion of its rights
under this Agreement and the Notes issued to it as collateral to a
Federal Reserve Bank; provided that no such assignment shall release
such Lender from any of its obligations hereunder.
(c) By executing and delivering an Assignment and Acceptance,
the Lender assignor thereunder and the assignee thereunder confirm to
and agree with each other and the other parties hereto as follows: (i)
other than the representation and warranty that it is the legal and
beneficial owner of the interest being assigned thereby free and clear
of any adverse claim, such Lender assignor makes no representation or
warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with this
Agreement or any of the other Loan Documents or the execution,
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legality, validity, enforceability, genuineness, sufficiency or value
of this Agreement or any of the other Loan Documents or any other
instrument or document furnished pursuant thereto; (ii) such Lender
assignor makes no representation or warranty and assumes no
responsibility with respect to the financial condition of Borrower or
the performance or observance by Borrower of any of its obligations
under this Agreement or any of the other Loan Documents to which it is
a party or any other instrument or document furnished pursuant hereto;
(iii) such assignee confirms that it has received a copy of this
Agreement, together with copies of the financial statements most
recently delivered under either Section 6.2 or Section 7.2 hereof and
such other documents and information as it has deemed appropriate to
make its own credit analysis and decision to enter into such Assignment
and Acceptance; (iv) such assignee will, independently and without
reliance upon Agent, such Lender assignor or any other Lender 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
action under this Agreement and the other Loan Documents; (v) such
assignee appoints and authorizes Agent to take such action as agent on
its behalf and to exercise such powers under this Agreement and the
other Loan Documents as are delegated to Agent by the terms hereof,
together with such powers as are reasonably incidental thereto; and
(vi) such assignee agrees that it will perform in accordance with their
terms all obligations that by the terms of this Agreement and the other
Loan Documents are required to be performed by it as a Lender.
(d) The entries in the records of Agent as to each Assignment
and Acceptance delivered to it and the names and addresses of the
Lenders and the Commitments of, and principal amount of the Loans owing
to, each Lender from time to time shall be conclusive, in the absence
of manifest error, and Borrower, Agent and the Lenders may treat each
Person the name of which is recorded in the books and records of Agent
as a Lender hereunder for all purposes of this Agreement and the other
Loan Documents.
(e) Upon Agent's receipt of an Assignment and Acceptance
executed by an assigning Lender and the assignee thereunder, together
with any Note or Notes subject to such assignment and the written
consent to such assignment (to the extent consent is required), Agent
shall, if such Assignment and Acceptance has been completed with blanks
appropriately filled, (i) accept such Assignment and Acceptance, (ii)
record the information contained therein in its records and (iii) give
prompt notice thereof to Borrower. Within five Business Days after
receipt of notice, Borrower, at its own expense, shall execute and
deliver to Agent in exchange for the surrendered Note a new Note to the
order of such assignee in an amount equal to the Commitment assumed by
it pursuant to such Assignment and Acceptance and, if the assigning
Lender has retained a Commitment hereunder, a new Note to the order of
the assigning Lender in an amount equal to the Commitment retained by
it hereunder. Such new Notes shall be in an aggregate principal amount
equal to the aggregate principal amount of such surrendered Notes,
shall be dated the effective date of such Assignment and Acceptance and
shall otherwise be in substantially the form of the respective Note.
Thereafter, such surrendered Notes shall be marked renewed and
substituted and the originals thereof delivered to Borrower (with
copies to be retained by Agent).
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(f) Any Lender may, in connection with any assignment or
participation or proposed assignment or participation pursuant to this
Section 11.6, disclose to the assignee or participant or proposed
assignee or participant, any information relating to Borrower furnished
to such Lender by or on behalf of Borrower; provided such Person agrees
to maintain the confidentiality of such information in accordance with
Section 11.16.
11.7 Limitation of Interest. The parties hereto intend to strictly
comply with all applicable federal and Texas laws, including applicable usury
laws (or the usury laws of any jurisdiction whose usury laws are deemed to apply
to the Notes or any other Loan Documents). Accordingly, the provisions of this
Section 11.7 shall govern and control over every other provision of this
Agreement or any other Loan Document which conflicts or is inconsistent with
this Section, even if such provision declares that it controls. As used in this
Section, the term "interest" includes the aggregate of all charges, fees,
benefits or other compensation which constitute interest under applicable law,
provided that, to the maximum extent permitted by applicable law, (a) any
non-principal payment shall be characterized as an expense or as compensation
for something other than the use, forbearance or detention of money and not as
interest, and (b) all interest at any time contracted for, reserved, charged or
received shall be amortized, prorated, allocated and spread, in equal parts
during the full term of the Obligations. In no event shall Borrower or any other
Person be obligated to pay, or Agent or any Lender have any right or privilege
to reserve, receive or retain, (a) any interest in excess of the maximum amount
of nonusurious interest permitted under the laws of the State of Texas or the
applicable laws (if any) of the United States or of any other jurisdiction, or
(b) total interest in excess of the amount which such Person could lawfully have
contracted for, reserved, received, retained or charged had the interest been
calculated for the full term of the Obligations at the Ceiling Rate. The daily
interest rates to be used in calculating interest at the Ceiling Rate shall be
determined by dividing the applicable Ceiling Rate per annum by the number of
days in the calendar year for which such calculation is being made. None of the
terms and provisions contained in this Agreement or in any other Loan Document
(including, without limitation, Section 9.1 hereof) which directly or indirectly
relate to interest shall ever be construed without reference to this Section
11.7, or be construed to create a contract to pay for the use, forbearance or
detention of money at an interest rate in excess of the Ceiling Rate. If the
term of any Obligation is shortened by reason of acceleration of maturity as a
result of any Default or by any other cause, or by reason of any required or
permitted prepayment, and if for that (or any other) reason Agent or any Lender
at any time, including but not limited to, the stated maturity, is owed or
receives (and/or has received) interest in excess of interest calculated at the
Ceiling Rate, then and in any such event all of any such excess interest shall
be canceled automatically as of the date of such acceleration, prepayment or
other event which produces the excess, and, if such excess interest has been
paid to such Person, it shall be credited pro tanto against the then-outstanding
principal balance of Borrower's obligations to such Person, effective as of the
date or dates when the event occurs which causes it to be excess interest, until
such excess is exhausted or all of such principal has been fully paid and
satisfied, whichever occurs first, and any remaining balance of such excess
shall be promptly refunded to its payor.
11.8 Survival. The obligations of Borrower under Sections 7.9, 11.3 and
11.4 hereof and all other obligations of Borrower in any other Loan Document (to
the extent stated therein) and the
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obligations of the Lenders under Sections 4.1(d), 10.6, 11.7, 11.13 and 11.16
hereof, shall, notwithstanding anything herein to the contrary, survive the
repayment of the Loans and the termination of the Commitments.
11.9 Captions. Captions and section headings appearing herein are
included solely for convenience of reference and are not intended to affect the
interpretation of any provision of this Agreement.
11.10 Counterparts. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same
agreement and any of the parties hereto may execute this Agreement by signing
any such counterpart.
11.11 Governing Law. THIS AGREEMENT AND (EXCEPT AS THEREIN PROVIDED)
THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE APPLICABLE LAWS OF THE STATE OF TEXAS AND THE UNITED STATES OF AMERICA FROM
TIME TO TIME IN EFFECT.
11.12 Severability. Whenever possible, each provision of the Loan
Documents shall be interpreted in such manner as to be effective and valid under
applicable law. If any provision of any Loan Document shall be invalid, illegal
or unenforceable in any respect under any applicable law, the validity, legality
and enforceability of the remaining provisions of such Loan Document shall not
be affected or impaired thereby.
11.13 Tax Forms. Each Lender which is organized under the laws of a
jurisdiction outside the United States shall, on the day of the initial
borrowing from each such Lender hereunder and from time to time thereafter if
requested by Borrower or Agent, provide Agent and Borrower with the forms
prescribed by the Internal Revenue Service of the United States certifying as to
such Lender's status for purposes of determining exemption from United States
withholding taxes with respect to all payments to be made to such Lender
hereunder or other documents satisfactory to such Lender, Borrower and Agent
indicating that all payments to be made to such Lender hereunder are not subject
to United States withholding tax or are subject to such tax at a rate reduced by
an applicable tax treaty. If a Lender determines, as a result of any change in
either (i) applicable law, regulation or treaty, or in any official application
thereof or (ii) its circumstances, that it is unable to submit any form or
certificate that it is obligated to submit pursuant to this Section, or that it
is required to withdraw or cancel any such form or certificate previously
submitted, it shall promptly notify Borrower and Agent of such fact. Unless
Borrower and Agent shall have received such forms or such documents indicating
that payments hereunder are not subject to United States withholding tax or are
subject to such tax at a rate reduced by an applicable tax treaty, Borrower or
Agent shall withhold taxes from such payments at the applicable statutory rate.
Each Lender agrees to indemnify and hold harmless from any United States taxes,
penalties, interest and other expenses, costs and losses incurred or payable by
(i) Agent as a result of such Lender's failure to submit any form or certificate
that it required to provide pursuant to this Section or (ii) Borrower or Agent
as a result of their reliance on any representation, form or certificate which
such Lender has provided to them pursuant to this Section.
61
66
11.14 Conflicts Between This Agreement and the Other Loan Documents. In
the event of any conflict between the terms of this Agreement and the terms of
any of the other Loan Documents, the terms of this Agreement shall control.
11.15 Limitation on Charges; Substitute Lenders; Non-Discrimination.
Anything in Sections 3.3(c) or 7.9 notwithstanding:
(1) Borrower shall not be required to pay to any Lender
reimbursement or indemnification with regard to any costs or expenses
described in such Sections, unless such Lender notifies Borrower of
such costs or expenses within 90 days after the date paid or incurred;
(2) none of the Lenders shall be permitted to pass through to
Borrower charges and costs under such Sections on a discriminatory
basis (i.e., which are not also passed through by such Lender to other
customers of such Lender similarly situated where such customer is
subject to documents providing for such pass through); and
(3) if any Lender elects to pass through to Borrower any
material charge or cost under such Sections or elects to terminate the
availability of LIBOR Borrowings for any material period of time,
Borrower may, within 60 days after the date of such event and so long
as no Default shall have occurred and be continuing, elect to terminate
such Lender as a party to this Agreement; provided that, concurrently
with such termination Borrower shall (i) if Agent and each of the other
Lenders shall consent, pay that Lender all principal, interest and fees
and other amounts owed to such Lender through such date of termination
or (ii) have arranged for another financial institution approved by
Agent (such approval not to be unreasonably withheld or delayed) as of
such date, to become a substitute Lender for all purposes under this
Agreement in the manner provided in Section 11.6; provided further
that, prior to substitution for any Lender, Borrower shall have given
written notice to Agent of such intention and the Lenders shall have
the option, but no obligation, for a period of 60 days after receipt of
such notice, to increase their Commitments in order to replace the
affected Lender in lieu of such substitution. Notwithstanding anything
herein to the contrary, in no event shall any Lender be terminated as
provided above without receiving all principal, interest, fees and
other amounts owed to such Lender through the date of termination.
11.16 Confidentiality. Each Lender agrees to exercise its reasonable
efforts to keep any information delivered or made available by Borrower which is
clearly indicated to be confidential information, confidential from anyone other
than Persons employed or retained by such Lender or any of its Affiliates who
are or are expected to become engaged in evaluating, approving, structuring or
administering the Loans; provided that nothing herein shall prevent any Lender
from disclosing such information (a) to any other Lender; (b) pursuant to
subpoena or upon the order of any court or administrative agency; (c) upon the
request or demand of any regulatory agency or authority having jurisdiction over
such Lender; (d) which has been publicly disclosed; (e) to the extent reasonably
required in connection with any litigation to which Agent, any Lender, Borrower
or their
62
67
respective Affiliates may be a party; (f) to the extent reasonably required in
connection with the exercise of any remedy hereunder; (g) to such Lender's bank
counsel and independent auditors; and (h) to any actual or proposed participant
or assignee of all or part of its rights hereunder which has agreed in writing
to be bound by the provisions of this Section.
NOTICE PURSUANT TO TEX. BUS. & COMM. CODE SECTION 26.02
THE LOAN AGREEMENT, AS AMENDED BY THIS AMENDMENT, AND ALL OTHER LOAN
DOCUMENTS EXECUTED BY ANY OF THE PARTIES PRIOR HERETO OR SUBSTANTIALLY
CONCURRENTLY HEREWITH CONSTITUTE A WRITTEN LOAN AGREEMENT WHICH REPRESENTS THE
FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE
NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
[REMAINDER OF PAGE LEFT BLANK INTENTIONALLY]
[SIGNATURES BEGIN ON NEXT PAGE]
63
68
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the Effective Date.
OCEANEERING INTERNATIONAL, INC.,
a Delaware corporation
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
------------------------------------
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Treasurer
Address for Notices:
▇▇▇▇▇ ▇▇ ▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
Attention: Chief Financial Officer
Telecopy No.: (▇▇▇) ▇▇▇-▇▇▇▇
▇▇▇▇▇ FARGO BANK (TEXAS), NATIONAL
ASSOCIATION, as Administrative Agent, Lead
Arranger and Book Manager and as a Lender
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇
------------------------------------
▇▇▇▇ ▇. ▇▇▇▇
Vice President
Address for Notices:
Commitment: ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ floor
$20,000,000.00 ▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
A/C 4081-657421
Attention: Manager
Telecopy No.: (▇▇▇) ▇▇▇-▇▇▇▇
with a copy to:
▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇. ▇▇▇▇ ▇. ▇▇▇▇
Telecopy No.: (▇▇▇) ▇▇▇-▇▇▇▇
69
THE FUJI BANK, LIMITED,
as a Lender
By: /s/ ▇▇▇▇ ▇▇▇▇▇
-----------------------------------
Name: ▇▇▇▇ ▇▇▇▇▇
Title: Senior Vice President & Manager
Address for Notices:
Commitment: One World Trade Center, 79th Floor
$10,000,000.00 ▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇ ▇▇▇▇▇▇▇▇
Telecopy No.: (▇▇▇)▇▇▇-▇▇▇▇
with a copy to:
Houston Agency - Energy Finance
▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇.
▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Telecopy No.: (▇▇▇) ▇▇▇-▇▇▇▇
70
BANK OF TOKYO MITSUBISHI, LTD.,
as a Lender
By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇
------------------------------------
Name: ▇▇▇▇▇▇ ▇▇▇▇▇
Title: DEPUTY GENERAL MANAGER
Address for Notices:
Commitment: Houston Agency
$10,000,000.00 ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇., ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
Telecopy No.: (▇▇▇) ▇▇▇-▇▇▇▇
71
HSBC,
as a Lender
By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇
--------------------------------------
Name: ▇▇▇▇▇▇ ▇▇▇▇▇▇, #9428
Title: Vice President
Address for Notices:
Commitment: 600 ▇▇▇▇▇▇, Suite 6750
$10,000,000.00 ▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Telecopy No.: (▇▇▇) ▇▇▇-▇▇▇▇
72
EXHIBIT A
[LETTERHEAD OF THE BORROWER]
REQUEST FOR EXTENSION OF CREDIT
, 20
---------------- --
▇▇▇▇▇ Fargo Bank (Texas), National
Association, as Agent
▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
MAC T5002-031
▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇ ▇. ▇▇▇▇
Relationship Manager
Gentlemen:
The undersigned hereby certifies that he is the _______________________
of OCEANEERING INTERNATIONAL, INC., a Delaware corporation (the "Borrower"), and
that as such he is authorized to execute this Request for Extension of Credit
(the "Request") on behalf of the Borrower pursuant to the Loan Agreement (as it
may be amended, supplemented or restated from time to time, the "Agreement")
dated as of March 30, 2000, by and among the Borrower, ▇▇▇▇▇ Fargo Bank (Texas),
N. A., as Administrative Agent, Lead Arranger and Book Manager, and the Lenders
therein named. The Loan being requested hereby is to be in the amount set forth
in (b) below and is requested to be made on __________________, which is a
Business Day. The undersigned further certifies, represents and warrants that to
his knowledge, after due inquiry (each capitalized term used herein having the
same meaning given to it in the Agreement unless otherwise specified herein):
(a) As of the date hereof:
(1) The aggregate Commitments are: $
============
(2) The aggregate outstanding principal of Notes,
before giving effect to the Loan
requested hereby, is: ( )
--------------
(3) The aggregate unused Loan
Commitments of all Lenders [(a)(1) minus
(a)(2)], if positive, is: $
============
73
(b) If and only if the aggregate unused Commitments of all Lenders
[(a)(3)] is positive, the Borrower hereby requests under this
Request a Loan in the amount of $____________ (which is no
more than the aggregate unused Commitments of all Lenders).
(c) The representations and warranties made in each Loan Document
are true and correct in all material respects on and as of the
time of delivery hereof, with the same force and effect as if
made on and as of the time of delivery hereof unless otherwise
limited to an earlier date.
(d) No event which could reasonably be expected to have a Material
Adverse Effect has occurred.
(e) No Default or Event of Default has occurred and is continuing.
Thank you for your attention to this matter.
--------------------------------------------------------------------------------
Very truly yours,
----------------------------------------
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
74
EXHIBIT B
RATE DESIGNATION NOTICE
OCEANEERING INTERNATIONAL, INC. ▇▇▇▇▇ Fargo Bank (Texas), N. A., as
Administrative Agent, Lead Arranger and Book Manager, and certain financial
institutions executed and delivered that certain Loan Agreement (as amended,
supplemented and restated, the "Loan Agreement") dated as of March 30, 2000. Any
term used herein and not otherwise defined herein shall have the meaning herein
ascribed to it in the Loan Agreement. In accordance with the Loan Agreement,
Borrower hereby notifies Agent of the exercise of an Interest Option.
Q. Current borrowings
1. Interest Options now in effect:
-------
2. Amounts: $
-------
3. Expiration of current Interest Periods, if applicable:
-------
R. Proposed election
1. Total Amount: $
-------
2. Date Interest Option is to be effective:
-------
3. Interest Option to be applicable (check one):
[ ] Base Rate
----
[ ] Eurodollar Rate
----
4. Interest Period: months (if available and if applicable)
-----
75
Borrower represents and warrants that the Interest Option and Interest
Period selected above comply with all provisions of the Loan Agreement and that
there exists no Event of Default or any event which, with the passage of time,
the giving of notice or both, would be an Event of Default.
Date:
-------------
OCEANEERING INTERNATIONAL, INC.,
a Delaware corporation
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
▇▇
▇▇▇▇▇▇▇ ▇
▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇
$ , 20
----------- -------------- --
FOR VALUE RECEIVED, OCEANEERING INTERNATIONAL, INC., a Delaware
corporation ("Maker"), promises to pay to the order of _______________________
("Payee"), at the principal office of ▇▇▇▇▇ Fargo Bank (Texas), National
Association, a national banking association, ▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇,
▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇, in immediately available funds and in lawful money
of the United States of America, the principal sum of
________________________________ Dollars ($_____________) (or the unpaid balance
of all principal advanced against this note, if that amount is less), together
with interest on the unpaid principal balance of this note from time to time
outstanding at the rate or rates provided in that certain Loan Agreement (as
amended, supplemented, restated or replaced from time to time, the "Loan
Agreement") dated as of March 30, 2000 among Maker, certain signatory banks
named therein, ▇▇▇▇▇ Fargo Bank (Texas), N. A., as Administrative Agent, Lead
Arranger and Book Manager; provided, that for the full term of this note the
interest rate produced by the aggregate of all sums paid or agreed to be paid to
the holder of this note for the use, forbearance or detention of the debt
evidenced hereby (including, but not limited to, all interest on this note at
the Stated Rate plus the Additional Interest) shall not exceed the Ceiling Rate.
Any term defined in the Loan Agreement which is used in this note and which is
not otherwise defined in this note shall have the meaning ascribed to it in the
Loan Agreement.
12. Loan Agreement; Advances. This note has been issued pursuant to the
terms of the Loan Agreement, and is one of the Notes referred to in the Loan
Agreement. Advances against this note by Payee or other holder hereof shall be
governed by the terms and provisions of the Loan Agreement. Reference is hereby
made to the Loan Agreement for all purposes. Payee is entitled to the benefits
of the Loan Agreement. The unpaid principal balance of this note at any time
shall be the total of all amounts lent or advanced against this note less the
amount of all payments or prepayments made on this note and by or for the
account of Maker. All Loans and advances and all payments and prepayments made
hereon may be endorsed by the holder of this note on a schedule which may be
attached hereto (and thereby made a part hereof for all purposes) or otherwise
recorded in the holder's records; provided, that any failure to make notation of
(a) any Loan or advance shall not cancel, limit or otherwise affect Maker's
obligations or any holder's rights with respect to that Loan or advance, or (b)
any payment or prepayment of principal shall not cancel, limit or otherwise
affect Maker's entitlement to credit for that payment as of the date received by
the holder.
13. Mandatory Payments of Principal and Interest.
(a) Accrued and unpaid interest on the unpaid principal balance of this
note shall be due and payable on the Interest Payment Dates.
77
(b) On the Maturity Date, the entire unpaid principal balance of this
note and all accrued and unpaid interest on the unpaid principal balance of this
note shall be finally due and payable.
(c) All payments hereon made pursuant to this Paragraph shall be
applied first to accrued and unpaid interest, the balance to principal.
(d) The Loan Agreement provides for required prepayments of the
indebtedness evidenced hereby upon terms and conditions specified therein.
14. No Usury Intended; Spreading. Notwithstanding any provision to the
contrary contained in this note or any of the other Loan Documents, it is
expressly provided that in no case or event shall the aggregate of (a) all
interest on the unpaid balance of this note, accrued or paid from the date
hereof and (b) the aggregate of any Additional Interest, ever exceed the Ceiling
Rate. In this connection, Maker and Payee stipulate and agree that it is their
common and overriding intent to contract in strict compliance with applicable
federal and Texas usury laws (and the usury laws of any other jurisdiction whose
usury laws are deemed to apply to this note or any of the other Loan Documents).
In furtherance thereof, none of the terms of this note or any of the other Loan
Documents shall ever be construed to create a contract to pay, as consideration
for the use, forbearance or detention of money, interest at a rate in excess of
the Ceiling Rate. Maker or other parties now or hereafter becoming liable for
payment of the indebtedness evidenced by this note shall never be liable for
interest in excess of the Ceiling Rate. If, for any reason whatever, the
interest paid or received on this note during its full term produces a rate
which exceeds the Ceiling Rate, the holder of this note shall credit against the
principal of this note (or, if such indebtedness shall have been paid in full,
shall refund to the payor of such interest) such portion of said interest as
shall be necessary to cause the interest paid on this note to produce a rate
equal to the Ceiling Rate. All sums paid or agreed to be paid to the holder of
this note for the use, forbearance or detention of the indebtedness evidenced
hereby shall, to the extent permitted by applicable law, be amortized, prorated,
allocated and spread in equal parts throughout the full term of this note, so
that the interest rate is uniform throughout the full term of this note. The
provisions of this Paragraph shall control all agreements, whether now or
hereafter existing and whether written or oral, between Maker and Payee.
15. Default. The Loan Agreement provides for the acceleration of the
maturity of this note and other rights and remedies upon the occurrence of
certain events specified therein.
16. Waivers by Maker and Others. Except to the extent, if any, that
notice of default is expressly required herein or in any of the other Loan
Documents, Maker and any and all co-makers, endorsers, guarantors and sureties
severally waive notice (including, but not limited to, notice of intent to
accelerate and notice of acceleration, notice of protest and notice of
dishonor), demand, presentment for payment, protest, diligence in collecting and
the filing of suit for the purpose of fixing liability and consent that the time
of payment hereof may be extended and re-extended from time to time without
notice to any of them. Each such Person agrees that its liability on or with
respect to this note shall not be affected by any release of or change in any
guaranty or security at any time existing or by any failure to perfect or to
maintain perfection of any lien against or security
78
interest in any such security or the partial or complete unenforceability of any
guaranty or other surety obligation, in each case in whole or in part, with or
without notice and before or after maturity.
17. Paragraph Headings. Paragraph headings appearing in this note are
for convenient reference only and shall not be used to interpret or limit the
meaning of any provision of this note.
18. Choice of Law. THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE APPLICABLE LAWS OF THE STATE OF TEXAS AND THE UNITED STATES
OF AMERICA FROM TIME TO TIME IN EFFECT.
19. Successors and Assigns. This note and all the covenants and
agreements contained herein shall be binding upon, and shall inure to the
benefit of, the respective legal representatives, heirs, successors and assigns
of Maker and Payee to the extent provided in the Loan Agreement.
20. Records of Payments. The records of Payee shall be prima facie
evidence of the amounts owing on this note.
21. Severability. If any provision of this note is held to be illegal,
invalid or unenforceable under present or future laws, the legality, validity
and enforceability of the remaining provisions of this note shall not be
affected thereby, and this note shall be liberally construed so as to carry out
the intent of the parties to it.
22. Business Loans. Maker warrants and represents to Payee and all
other holders of this note that all loans evidenced by this note are and will be
for business, commercial, investment or other similar purpose and not primarily
for personal, family, household or agricultural use, as such terms are used in
Chapter 1D.
OCEANEERING INTERNATIONAL, INC.,
a Delaware corporation
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
79
EXHIBIT D
ASSIGNMENT AND ACCEPTANCE
Dated:
----------
Reference is made to the Loan Agreement dated as of March 30, 2000 (as
restated, amended, modified, supplemented and in effect from time to time, the
"Loan Agreement"), among OCEANEERING INTERNATIONAL, INC., a Delaware corporation
(the "Borrower"), the Lenders named therein, ▇▇▇▇▇ Fargo Bank (Texas), N. A., as
Administrative Agent, Lead Arranger and Book Manager (the "Agent"). Capitalized
terms used herein and not otherwise defined shall have the meanings assigned to
such terms in the Loan Agreement. This Assignment and Acceptance, between the
Assignor (as defined and set forth on Schedule I hereto and made a part hereof)
and the Assignee (as defined and set forth on Schedule I hereto and made a part
hereof) is dated as of the Effective Date of Assignment (as set forth on
Schedule I hereto and made a part hereof).
1. The Assignor hereby irrevocably sells and assigns to the Assignee
without recourse to the Assignor, and the Assignee hereby irrevocably purchases
and assumes from the Assignor without recourse to the Assignor, as of the
Effective Date, an undivided interest (the "Assigned Interest") in and to all
the Assignor's rights and obligations under the Loan Agreement, in a principal
amount as set forth on Schedule I.
2. The Assignor (i) makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations
made in or in connection with the Loan Agreement or any other Loan Document or
the execution, legality, validity, enforceability, genuineness, sufficiency or
value of the Loan Agreement, any other Loan Document or any other instrument or
document furnished pursuant thereto, other than that it is the legal and
beneficial owner of the Assigned Interest and that the Assigned Interest is free
and clear of any adverse claim; (ii) makes no representation or warranty and
assumes no responsibility with respect to the financial condition of the
Borrower or its Subsidiaries or the performance or observance by the Borrower or
its Subsidiaries of any of its respective obligations under the Loan Agreement,
any other Loan Document or any other instrument or document furnished pursuant
thereto; and (iii) attaches the Note(s) held by it and requests that the Agent
exchange such Note(s) for a new Note or Notes payable to the Assignor (if the
Assignor has retained any interest) and a new Note or Notes payable to the
Assignee in the respective amounts which reflect the assignment being made
hereby (and after giving effect to any other assignments which have become
effective on the Effective Date of Assignment).
3. The Assignee (i) represents and warrants that it is legally
authorized to enter into this Assignment and Acceptance; (ii) confirms that it
has received a copy of the Loan Agreement, together with copies of the financial
statements referred to in Section 6.2 thereof, or if later, the most recent
financial statements delivered pursuant to Section 7.2 thereof, and such other
documents and information as it has deemed appropriate to make its own credit
analysis; (iii) agrees that it will,
80
independently and without reliance upon the Agent, the Assignor or any other
Lender 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
action under the Loan Agreement; (iv) appoints and authorizes the Agent to take
such action as agent on its behalf and to exercise such powers under the Loan
Agreement as are delegated to the Agent by the terms thereof, together with such
powers as are reasonably incidental thereto; (v) agrees that it will be bound by
the provisions of the Loan Agreement and will perform in accordance with its
terms all the obligations which by the terms of the Loan Agreement are required
to be performed by it as a Lender; (vi) if the Assignee is organized under the
laws of a jurisdiction outside the United States, attaches the forms prescribed
by the Internal Revenue Service of the United States certifying as to the
Assignee's exemption from United States withholding taxes with respect to all
payments to be made to the Assignee under the Loan Agreement or such other
documents as are necessary to indicate that all such payments are subject to
such tax at a rate reduced by an applicable tax treaty, and (vii) has supplied
the information requested on the administrative questionnaire provided by Agent.
4. Following the execution of this Assignment and Acceptance, it will
be delivered to the Agent for acceptance by it and the Borrower and recording by
the Agent pursuant to Section 11.6 of the Loan Agreement, effective as of the
Effective Date of Assignment (which Effective Date of Assignment shall, unless
otherwise agreed to by the Agent, be at least five Business Days after the
execution of this Assignment and Acceptance).
5. Upon such acceptance and recording, from and after the Effective
Date of Assignment, the Agent shall make all payments in respect of the Assigned
Interest (including payments of principal, interest, fees and other amounts) to
the Assignee, whether such amounts have accrued prior to the Effective Date of
Assignment or accrue subsequent to the Effective Date of Assignment. The
Assignor and Assignee shall make all appropriate adjustments in payments for
periods prior to the Effective Date of Assignment by the Agent or with respect
to the making of this assignment directly between themselves.
6. From and after the Effective Date of Assignment, (i) the Assignee
shall be a party to the Loan Agreement and, to the extent provided in this
Assignment and Acceptance, have the rights and obligations of a Lender
thereunder, and (ii) the Assignor shall, to the extent provided in this
Assignment and Acceptance, relinquish its rights (except for its rights to be
indemnified pursuant to Section 11.4 of the Loan Agreement) and be released from
its obligations under the Loan Agreement.
7. THIS ASSIGNMENT AND ACCEPTANCE SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS.
IN WITNESS WHEREOF, the parties hereto have caused this
Assignment and Acceptance to be executed by their respective duly authorized
officers on Schedule I hereto.
81
EXHIBIT D
SCHEDULE I TO ASSIGNMENT AND ACCEPTANCE
Legal Name of Assignor:
-----------------------------
Legal Name of Assignee:
-----------------------------
Effective Date of Assignment:
-----------------------
Percentage Assigned of Each
Facility (to at least 8
decimals) (Shown as a
Principal percentage of aggregate
Amount of original principal amount
Assigned Interest of all Lenders)
----------------- ---------------------------
$ %
-------------- ------
,
-------------------------------
as Assignor
By:
---------------------------
Name:
-------------------------
Title:
------------------------
,
-------------------------------
as Assignee
By:
---------------------------
Name:
-------------------------
Title:
------------------------
82
OCEANEERING INTERNATIONAL, INC.,
a Delaware corporation
By:
---------------------------
Name:
-------------------------
Title:
------------------------
Accepted:
▇▇▇▇▇ FARGO BANK (TEXAS), NATIONAL
ASSOCIATION, as Administrative Agent,
Lead Arranger and Book Manager
By:
---------------------------
Name:
-------------------------
Title:
------------------------
83
EXHIBIT E
COMPLIANCE CERTIFICATE
The undersigned hereby certifies that he is the _______________________
of OCEANEERING INTERNATIONAL, INC., a Delaware corporation (the "Borrower"), and
that as such he is authorized to execute this certificate on behalf of the
Borrower pursuant to the Loan Agreement (the "Agreement") dated as of March 30,
2000, by and among the Borrower, ▇▇▇▇▇ Fargo Bank (Texas), N. A., as
Administrative Agent, Lead Arranger and Book Manager, and the lenders therein
named; and that a review of the Borrower and the other Obligors has been made
under his supervision with a view to determining whether the Borrower and the
other Obligors have fulfilled all of their respective obligations under the
Agreement, the Notes and the other Loan Documents; and on behalf of the Borrower
further represents and warrants that to the best knowledge of the officer
executing this certificate, after due inquiry (each capitalized term used herein
having the same meaning given to it in the Agreement unless otherwise
specified):
(a) The Borrower and the other Obligors have fulfilled, in
all material respects, their respective obligations under the
Agreement, the Notes and the other Loan Documents to which each is a
party.
(b) The representations and warranties made in each Loan
Document are true and correct in all material respects on and as of the
time of delivery hereof, with the same force and effect as if made on
and as of the time of delivery hereof except to the extent limited to
an earlier date.
(c) The financial statements delivered to the Agent
concurrently with this Compliance Certificate have been prepared in
accordance with GAAP consistently followed throughout the period
indicated and fairly present in all material respects the financial
condition and results of operations of the applicable Persons as at the
end of, and for, the period indicated (subject, in the case of
Quarterly Financial Statements, to normal changes resulting from
year-end adjustments).
(d) No Default or Event of Default has occurred and is
continuing. In this regard, the compliance with the provisions of
Section 7.3 is as follows:
(i) SECTION 7.3(a) -- CONSOLIDATED ADJUSTED NET WORTH
Actual Required
------ --------
$ $
-------- --------
84
(ii) SECTION 7.3(b) -- DEBT TO CAPITALIZATION RATIO
Actual Required
to 1.00 0.55 to 1.00
------
(iii) SECTION 7.3(c) -- FIXED CHARGE COVERAGE RATIO
Actual Required
to 1.00 1.50 to 1.00
------
(iv) SECTION 7.3(d) -- INTEREST COVERAGE RATIO
Actual Required
to 1.00 2.50 to 1.00
------
(v) SECTION 7.3(e) -- DEBT TO CONSOLIDATED NET WORTH RATIO
Actual Required
to 1.00 0.30 to 1.00
------
(e) No event which could reasonably be expected to have a
Material Adverse Effect has occurred.
DATED as of .
--------------------
OCEANEERING INTERNATIONAL, INC.,
a Delaware corporation
By:
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Name:
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Title:
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