1
Exhibit 10.71
EXECUTION COPY
--------------------------------------------------------------------------------
$1,500,000,000
REVOLVING CREDIT AGREEMENT
among
HOMESIDE LENDING, INC.
as Borrower,
The Several Lenders
from Time to Time Parties Hereto,
BANK OF AMERICA, N.A.,
DEUTSCHE BANK AG, NEW YORK BRANCH
and
NATIONAL AUSTRALIA BANK LIMITED,
as Syndication Agents
and
THE CHASE MANHATTAN BANK,
as Administrative Agent
Dated as of October 16, 2000
CHASE SECURITIES, INC. as Lead Arranger and Book Manager
--------------------------------------------------------------------------------
2
TABLE OF CONTENTS
PAGE
SECTION 1. DEFINITIONS..........................................................................................1
1.1. DEFINED TERMS.....................................................................................1
1.2. OTHER DEFINITIONAL PROVISIONS....................................................................15
SECTION 2. AMOUNT AND TERMS OF COMMITMENTS.....................................................................16
2.1. REVOLVING COMMITMENTS............................................................................16
2.2. PROCEDURE FOR REVOLVING LOAN BORROWING...........................................................16
2.3. SWINGLINE COMMITMENT.............................................................................17
2.4. PROCEDURE FOR SWINGLINE BORROWING; REFUNDING OF SWINGLINE LOANS..................................17
2.5. FACILITY FEES, ETC...............................................................................18
2.6. TERMINATION OR REDUCTION OF REVOLVING COMMITMENTS................................................19
2.7. COMPETITIVE BID PROCEDURE........................................................................19
2.8. OPTIONAL PREPAYMENTS.............................................................................21
2.9. CONVERSION AND CONTINUATION OPTIONS..............................................................22
2.10. LIMITATIONS ON EURODOLLAR TRANCHES...............................................................22
2.11. INTEREST RATES; PAYMENT DATES; EVIDENCE OF DEBT..................................................22
2.12. COMPUTATION OF INTEREST AND FEES.................................................................23
2.13. INABILITY TO DETERMINE INTEREST RATE.............................................................23
2.14. PRO RATA TREATMENT AND PAYMENTS..................................................................24
2.15. REQUIREMENTS OF LAW..............................................................................25
2.16. TAXES............................................................................................26
2.17. INDEMNITY........................................................................................28
2.18. CHANGE OF LENDING OFFICE.........................................................................28
2.19. REPLACEMENT OF LENDERS...........................................................................29
2.20. OPTIONAL COMMITMENT INCREASE.....................................................................29
SECTION 3. REPRESENTATIONS AND WARRANTIES......................................................................31
3.1. FINANCIAL CONDITION..............................................................................31
3.2. NO CHANGE........................................................................................31
3.3. CORPORATE EXISTENCE; COMPLIANCE WITH LAW.........................................................31
3.4. CORPORATE POWER; AUTHORIZATION; ENFORCEABLE OBLIGATIONS..........................................32
3.5. NO LEGAL BAR.....................................................................................32
3.6. NO MATERIAL LITIGATION...........................................................................32
3.7. NO DEFAULT.......................................................................................32
3.8. OWNERSHIP OF PROPERTY; LIENS.....................................................................32
3.9. INTELLECTUAL PROPERTY............................................................................33
3.10. TAXES............................................................................................33
3.11. FEDERAL REGULATIONS..............................................................................33
3.12. ERISA............................................................................................33
3.13. INVESTMENT COMPANY ACT; OTHER REGULATIONS........................................................33
3.14. SUBSIDIARIES.....................................................................................34
3.15. PURPOSE OF LOANS.................................................................................34
-i-
3
3.16. ENVIRONMENTAL MATTERS...........................................................................34
3.17. DISCLOSURE......................................................................................35
SECTION 4. CONDITIONS PRECEDENT................................................................................35
4.1. CONDITIONS TO INITIAL EXTENSION OF CREDIT........................................................35
4.2. CONDITIONS TO EACH EXTENSION OF CREDIT...........................................................36
SECTION 5. AFFIRMATIVE COVENANTS...............................................................................36
5.1. FINANCIAL STATEMENTS.............................................................................36
5.2. CERTIFICATES; OTHER INFORMATION..................................................................37
5.3. PAYMENT OF OBLIGATIONS...........................................................................37
5.4. MAINTENANCE OF EXISTENCE; COMPLIANCE.............................................................37
5.5. MAINTENANCE OF PROPERTY; INSURANCE; RISK MANAGEMENT..............................................38
5.6. INSPECTION OF PROPERTY; BOOKS AND RECORDS; DISCUSSIONS...........................................38
5.7. NOTICES..........................................................................................38
5.8. ENVIRONMENTAL LAWS...............................................................................39
5.9. MAINTENANCE OF AGENCY STATUS.....................................................................39
SECTION 6. NEGATIVE COVENANTS..................................................................................40
6.1. FINANCIAL CONDITION COVENANTS....................................................................40
6.2. INDEBTEDNESS.....................................................................................40
6.3. LIENS............................................................................................40
6.4. FUNDAMENTAL CHANGES..............................................................................42
6.5. LIMITATION ON SALE OF ASSETS.....................................................................42
6.6. RESTRICTED PAYMENTS..............................................................................42
6.7. LIMITATION ON INVESTMENTS, LOANS AND ADVANCES....................................................42
6.8. TRANSACTIONS WITH AFFILIATES.....................................................................43
6.9. CHANGES IN FISCAL PERIODS........................................................................43
6.10. LINES OF BUSINESS...............................................................................43
SECTION 7. EVENTS OF DEFAULT...................................................................................43
SECTION 8. THE AGENTS..........................................................................................46
8.1. APPOINTMENT......................................................................................46
8.2. DELEGATION OF DUTIES.............................................................................46
8.3. EXCULPATORY PROVISIONS...........................................................................46
8.4. RELIANCE BY ADMINISTRATIVE AGENT.................................................................46
8.5. NOTICE OF DEFAULT................................................................................47
8.6. NON-RELIANCE ON AGENTS AND OTHER LENDERS.........................................................47
8.7. INDEMNIFICATION..................................................................................48
8.8. AGENT IN ITS INDIVIDUAL CAPACITY.................................................................48
8.9. SUCCESSOR ADMINISTRATIVE AGENT...................................................................48
8.10. OTHER AGENTS.....................................................................................49
SECTION 9. MISCELLANEOUS.......................................................................................49
9.1. AMENDMENTS AND WAIVERS...........................................................................49
9.2. NOTICES..........................................................................................49
-ii-
4
9.3. NO WAIVER; CUMULATIVE REMEDIES...................................................................50
9.4. SURVIVAL OF REPRESENTATIONS AND WARRANTIES.......................................................50
9.5. PAYMENT OF EXPENSES AND TAXES....................................................................50
9.6. SUCCESSORS AND ASSIGNS; PARTICIPATIONS AND ASSIGNMENTS...........................................51
9.7. ADJUSTMENTS; SET-OFF.............................................................................54
9.8. COUNTERPARTS.....................................................................................54
9.9. SEVERABILITY.....................................................................................55
9.10. INTEGRATION......................................................................................55
9.11. GOVERNING LAW....................................................................................55
9.12. SUBMISSION TO JURISDICTION; WAIVERS..............................................................55
9.13. ACKNOWLEDGEMENTS.................................................................................55
9.14. CONFIDENTIALITY..................................................................................56
9.15. WAIVERS OF JURY TRIAL............................................................................56
SCHEDULES:
1.1 Commitments
3.1A Certain Contingent Liabilities
3.1B Certain Sales, Transfers or Dispositions
3.4 Consents
3.6 Material Litigation
3.14 Subsidiaries
6.3(j) Existing Liens
6.8 Transactions with Affiliates
EXHIBITS:
A Form of Closing Certificate
B Form of Assignment and Acceptance
C-1 Form of Legal Opinion of ▇▇▇▇▇▇▇▇ & ▇▇▇▇▇▇▇▇
C-2 Form of Legal Opinion of ▇▇▇▇▇▇ ▇▇▇▇▇▇, Esq.
D-1 Form of Revolving Loan Note
D-2 Form of Competitive Loan Note
D-3 Form of Swingline Loan Note
E Form of Exemption Certificate
F Form of Commitment Increase Supplement
G Form of New Lender Supplement
-iii-
5
CREDIT AGREEMENT, dated as of October 16, 2000, among HOMESIDE LENDING,
INC., a Florida corporation (the "BORROWER"), the several banks and other
financial institutions or entities from time to time parties to this Agreement
(the "LENDERS"), BANK OF AMERICA, N.A., DEUTSCHE BANK AG, NEW YORK BRANCH AND
NATIONAL AUSTRALIA BANK LIMITED, as syndication agents (in such capacities, the
"SYNDICATION AGENTS") CHASE SECURITIES, INC., as lead arranger and book manager
(in such capacity, the "ARRANGER"), and THE CHASE MANHATTAN BANK, as
administrative agent (in such capacity, the "ADMINISTRATIVE AGENT").
The parties hereto hereby agree as follows:
SECTION 1. DEFINITIONS
1.1. DEFINED TERMS. As used in this Agreement, the terms listed in this
SECTION 1.1 shall have the respective meanings set forth in this SECTION 1.1.
"ABR": for any day, a rate per annum (rounded upwards, if necessary, to the
next 1/16 of 1%) equal to the greater of (a) the Prime Rate in effect on such
day and (b) the Federal Funds Effective Rate in effect on such day plus 1/2 of
1%. For purposes hereof: "PRIME RATE" shall mean the rate of interest per annum
publicly announced from time to time by the Reference Lender as its prime rate
in effect at its principal office in New York City (the Prime Rate not being
intended to be the lowest rate of interest charged by the Reference Lender in
connection with extensions of credit to debtors). Any change in the ABR due to a
change in the Prime Rate or the Federal Funds Effective Rate shall be effective
as of the opening of business on the effective day of such change in the Prime
Rate or the Federal Funds Effective Rate, respectively.
"ABR LOANS": Loans the rate of interest applicable to which is based upon
the ABR.
"ACCOUNTS RECEIVABLE": that dollar amount shown as such on the balance
sheet of the Borrower as of the relevant Applicable Financial Test Date.
"ADJUSTMENT DATE": as defined in the Pricing Grid.
"ADMINISTRATIVE AGENT": The Chase Manhattan Bank.
"AFFILIATE": as to any Person, any other Person that, directly or
indirectly, is in control of, is controlled by, or is under common control with,
such Person. For purposes of this definition, "control" of a Person means the
power, directly or indirectly, either to (a) vote 10% or more of the securities
having ordinary voting power for the election of directors (or persons
performing similar functions) of such Person or (b) direct or cause the
direction of the management and policies of such Person, whether by contract or
otherwise.
"AGENCY": FHLMC, FNMA or GNMA.
"AGENTS": the collective reference to the Syndication Agents and the
Administrative Agent.
6
2
"AGGREGATE EXPOSURE": with respect to any Lender at any time, an amount
equal to the amount of such Lender's Revolving Commitment then in effect or,
after the Revolving Termination Date or if the Revolving Commitments have
otherwise been terminated, the amount of such Lender's Revolving Extensions of
Credit then outstanding.
"AGGREGATE EXPOSURE PERCENTAGE": with respect to any Lender at any time,
the ratio (expressed as a percentage) of such Lender's Aggregate Exposure at
such time to the Aggregate Exposure of all Lenders at such time.
"AGREEMENT": this Credit Agreement, as amended, supplemented or otherwise
modified from time to time.
"APPLICABLE FINANCIAL TEST DATE" : at any time, the last day of the most
recent fiscal quarter of the Borrower ended prior to such time.
"APPLICABLE MARGIN": for Eurodollar Loans (other than Eurodollar
Competitive Loans) prior to the Revolving Termination Date, 0.23% per annum.
"APPROVED FUND": with respect to any Lender that is a fund that invests in
commercial loans, any other fund that invests in commercial loans and is managed
or advised by the same investment advisor as such Lender or by an Affiliate of
such investment advisor.
"APPROVED SECURITIES OFFERING": a proposed offering of securities by the
Borrower or an Affiliate of the Borrower secured or otherwise supported in whole
or part by Mortgage Loans and/or Mortgage-Backed Securities, for which the
following statements are true, unless otherwise waived in writing by the
Required Lenders:
1. the Borrower or such Affiliate, as applicable, has filed and made
effective a registration statements with the SEC covering the offering of the
proposed securities;
2. the Borrower or such Affiliate, as applicable, has obtained all permits,
exemptions and licenses necessary to effect such offering;
3. such offering has been priced and is the subject of a firm underwriting
commitment;
4. such securities qualify as "mortgage-related securities" under Section
3(a)(41) of the Securities Exchange Act of 1934, as amended; and
5. in the reasonably anticipated course of events, the Borrower or such
Affiliate, as applicable, is expected to obtain a rating in one of the two
highest categories available for securities of a like nature from the rating
agency rating such securities.
"ASSIGNEE": as defined in SECTION 9.6(c).
"ASSIGNMENT AND ACCEPTANCE": an Assignment and Acceptance, substantially in
the form of Exhibit B.
7
3
"ASSIGNOR": as defined in SECTION 9.6(c).
"AVAILABLE REVOLVING COMMITMENT": as to any Revolving Lender at any time,
an amount equal to the excess, if any, of (a) such Lender's Revolving Commitment
then in effect over (b) such Lender's Revolving Extensions of Credit then
outstanding.
"BENEFITTED LENDER": as defined in SECTION 9.7(a).
"BOARD": the Board of Governors of the Federal Reserve System of the United
States (or any successor).
"BORROWER": as defined in the preamble hereto.
"BORROWING DATE": any Business Day specified by the Borrower as a date on
which the Borrower requests the relevant Lenders to make Loans hereunder.
"BUSINESS": as defined in SECTION 3.16(b).
"BUSINESS DAY": a day other than a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to close;
PROVIDED, that with respect to notices and determinations in connection with,
and payments of principal and interest on, Eurodollar Loans, such day is also a
day for trading by and between banks in Dollar deposits in the interbank
eurodollar market.
"CAPITAL LEASE OBLIGATIONS": as to any Person, the obligations of such
Person to pay rent or other amounts under any lease of (or other arrangement
conveying the right to use) real or personal property, or a combination thereof,
which obligations are required to be classified and accounted for as capital
leases on a balance sheet of such Person under GAAP and, for the purposes of
this Agreement, the amount of such obligations at any time shall be the
capitalized amount thereof at such time determined in accordance with GAAP.
"CAPITAL STOCK": any and all shares, interests, participations or other
equivalents (however designated) of capital stock of a corporation, any and all
equivalent ownership interests in a Person (other than a corporation) and any
and all warrants, rights or options to purchase any of the foregoing.
"CASH": at any date the dollar amount of "Cash" of the Borrower set forth
in the balance sheet of the Borrower as of the most recent Applicable Financial
Test Date.
"CASH EQUIVALENTS": (a) marketable direct obligations issued by, or
unconditionally guaranteed by, the United States Government or issued by any
agency thereof and backed by the full faith and credit of the United States, in
each case maturing within one year from the date of acquisition; (b)
certificates of deposit, time deposits, eurodollar time deposits or overnight
bank deposits having maturities of six months or less from the date of
acquisition issued by any Lender or by any commercial bank organized or licensed
under the laws of the United States or any state thereof having combined capital
and surplus of not less than $500,000,000; (c) commercial paper of an issuer
rated at least A-1 by Standard & Poor's Ratings Services ("S&P") or P-1 by
▇▇▇▇▇'▇ Investors Service, Inc. ("MOODY'S"), or carrying an
8
4
equivalent rating by a nationally recognized rating agency, if both of the two
named rating agencies cease publishing ratings of commercial paper issuers
generally, and maturing within six months from the date of acquisition; (d)
repurchase obligations of any Lender or of any commercial bank satisfying the
requirements of clause (b) of this definition, having a term of not more than 30
days, with respect to securities issued or fully guaranteed or insured by the
United States government; (e) securities with maturities of one year or less
from the date of acquisition issued or fully guaranteed by any state,
commonwealth or territory of the United States, by any political subdivision or
taxing authority of any such state, commonwealth or territory or by any foreign
government, the securities of which state, commonwealth, territory, political
subdivision, taxing authority or foreign government (as the case may be) are
rated at least A by S&P or A by Moody's; (f) securities with maturities of six
months or less from the date of acquisition backed by standby letters of credit
issued by any Lender or any commercial bank satisfying the requirements of
clause (b) of this definition; or (g) shares of money market mutual or similar
funds which invest exclusively in assets satisfying the requirements of clauses
(a) through (f) of this definition.
"CLOSING DATE": the date on which the conditions precedent set forth in
SECTION 4.1 shall have been satisfied, which date is October 16, 2000.
"CODE": the Internal Revenue Code of 1986, as amended from time to time.
"COMMITMENT": as to any Lender, the Revolving Commitment of such Lender.
"COMMITMENT INCREASE DATE": as defined in SECTION 2.20.
"COMMITMENT INCREASE SUPPLEMENT": as defined in SECTION 2.20 and which
supplement shall be substantially in the form of Exhibit F.
"COMMONLY CONTROLLED ENTITY": an entity, whether or not incorporated, that
is under common control with the Borrower within the meaning of Section 4001 of
ERISA or is part of a group that includes the Borrower and that is treated as a
single employer under Section 414 of the Code.
"COMPETITIVE BID": an offer by a Lender to make a Competitive Loan in
accordance with SECTION 2.7.
"COMPETITIVE BID RATE": with respect to any Competitive Bid, the margin
over the Eurodollar Rate or the Fixed Rate, as applicable, offered by the Lender
making such Competitive Bid.
"COMPETITIVE BID REQUEST": a request by the Borrower for Competitive Bids
in accordance with SECTION 2.7.
"COMPETITIVE BORROWING": any Eurodollar Competitive Borrowing or Fixed Rate
Competitive Borrowing in accordance with SECTION 2.7.
"COMPETITIVE LOAN": a Loan made pursuant to SECTION 2.7.
9
5
"CONSOLIDATED INTANGIBLES": at any time, all amounts included in
Consolidated Net Worth of the Borrower at such time which, in accordance with
GAAP, would be classified as intangible assets on a consolidated balance sheet
of the Borrower and its Subsidiaries, including, without limitation, (a)
goodwill (other than negative goodwill), including any amounts (however
designated on the balance sheet) representing the cost of acquisitions in excess
of underlying net tangible assets, and (b) patents, trademarks, copyrights and
other intangibles.
"CONSOLIDATED NET WORTH": at any time, all amounts which would, in
conformity with GAAP, be included under shareholders' equity on a consolidated
balance sheet of the Borrower and its Subsidiaries as at such time.
"CONSOLIDATED TANGIBLE NET WORTH": at any date, an amount equal to (a)
Consolidated Net Worth at such date LESS (b) Consolidated Intangibles at such
date.
"CONSOLIDATED TOTAL DEBT": at any date, the aggregate principal amount of
all Indebtedness of the Borrower and its Subsidiaries at such date, determined
on a consolidated basis in accordance with GAAP.
"CONTRACTUAL OBLIGATION": as to any Person, any provision of any security
issued by such Person or of any agreement, instrument or other undertaking to
which such Person is a party or by which it or any of its property is bound.
"DEFAULT": any of the events specified in SECTION 7, whether or not any
requirement for the giving of notice, the lapse of time, or both, has been
satisfied.
"DISPOSITION": with respect to any property, any sale, lease, sale and
leaseback, assignment, conveyance, transfer or other disposition thereof. The
terms "DISPOSE" and "DISPOSED OF" shall have correlative meanings.
"DOLLARS" and "$": lawful currency of the United States.
"EARLY POOL BUYOUT ADVANCES": that dollar amount shown as such on the
balance sheet of the Borrower as of the relevant Applicable Financial Test Date.
"ELIGIBLE MORTGAGE ASSETS": the dollar amount of Mortgage Loans Held for
Sale or Mortgage Loans Held for Investment, as the case may be, on the balance
sheet of the Borrower, but excluding, in any event: (a) Mortgage Loans and
Mortgage-Backed Securities which are subject to a Lien other than a Lien that is
permitted under SECTION 6.3 and that secures Indebtedness included in Total
Debt, (b) Mortgage Loans secured by properties which are not 1-4 family
residential properties, and (c) Mortgage Loans deemed to be unsaleable by the
Borrower.
"ENVIRONMENTAL LAWS": any and all foreign, Federal, state, local or
municipal laws, rules, orders, regulations, statutes, ordinances, codes,
decrees, requirements of any Governmental Authority or other Requirements of Law
(including common law) regulating, relating to or imposing liability or
standards of conduct concerning protection of human health or the environment,
as may now or at any time hereafter be in effect.
10
6
"ERISA": the Employee Retirement Income Security Act of 1974, as amended
from time to time.
"EUROCURRENCY RESERVE REQUIREMENTS": for any day as applied to a Eurodollar
Loan, the aggregate (without duplication) of the maximum rates (expressed as a
decimal fraction) of reserve requirements in effect on such day (including
basic, supplemental, marginal and emergency reserves under any regulations of
the Board or other Governmental Authority having jurisdiction with respect
thereto) dealing with reserve requirements prescribed for eurocurrency funding
(currently referred to as "Eurocurrency liabilities" in Regulation D of the
Board) maintained by a member bank of the Federal Reserve System.
"EURODOLLAR BASE RATE": with respect to each day during each Interest
Period pertaining to a Eurodollar Loan, the rate per annum determined on the
basis of the rate for deposits in Dollars for a period equal to such Interest
Period commencing on the first day of such Interest Period appearing on Page
3750 of the Dow ▇▇▇▇▇ Markets screen as of 11:00 A.M., London time, two Business
Days prior to the beginning of such Interest Period. In the event that such rate
does not appear on Page 3750 of the Dow ▇▇▇▇▇ Markets screen (or otherwise on
such screen), the "EURODOLLAR BASE RATE" shall be determined by reference to
such other comparable publicly available service for displaying eurodollar rates
as may be selected by the Administrative Agent or, in the absence of such
availability, by reference to the rate at which the Reference Lender is offered
Dollar deposits at or about 11:00 A.M., New York City time, two Business Days
prior to the beginning of such Interest Period in the interbank eurodollar
market where its eurodollar and foreign currency and exchange operations are
then being conducted for delivery on the first day of such Interest Period for
the number of days comprised therein.
"EURODOLLAR COMPETITIVE BORROWING": any borrowing by the Borrower of
Eurodollar Competitive Loans pursuant to the terms of this Agreement.
"EURODOLLAR COMPETITIVE LOAN": a Competitive Loan the rate of interest
applicable to which is based upon the Eurodollar Rate.
"EURODOLLAR LOAN": a Loan the rate of interest applicable to which is based
upon the Eurodollar Rate.
"EURODOLLAR RATE": with respect to each day during each Interest Period
pertaining to a Eurodollar Loan, a rate per annum determined for such day in
accordance with the following formula (rounded upward to the nearest 1/100th of
1%):
EURODOLLAR BASE RATE
----------------------------------------
1.00 - Eurocurrency Reserve Requirements
"EURODOLLAR TRANCHE": the collective reference to Eurodollar Loans the then
current Interest Periods with respect to all of which begin on the same date and
end on the same later date (whether or not such Loans shall originally have been
made on the same day).
"EVENT OF DEFAULT": any of the events specified in SECTION 7; PROVIDED,
that any requirement for the giving of notice, the lapse of time, or both, has
been satisfied.
11
7
"EXISTING CREDIT AGREEMENT": the Credit Agreement dated as of October 18,
1999 among the Borrower, the Lenders (as defined therein) from time to time
party thereto, Bank of America, N.A., Deutsche Bank AG, New York Branch and
▇▇▇▇▇▇ Guaranty Trust Company of New York, as Syndication Agents, National
Australia Bank Limited, as Senior Managing Agent and Co-Arranger, and The Chase
Manhattan Bank as Administrative Agent.
"FACILITY FEE RATE": 0.07% per annum.
"FEDERAL FUNDS EFFECTIVE RATE": (i) for the first day of an ABR Loan or
Swingline Loan, the rate per annum which is the average of the rates on the
offered side of the Federal funds market quoted by three interbank Federal funds
brokers, selected by the Administrative Agent, at approximately the time the
Borrower requests such ABR Loan or Swingline Loan, for Dollar deposits in
immediately available funds, for a period and in an amount comparable to the
principal amount of such ABR Loan or Swingline Loan, as the case may be, and
(ii) for each day of such ABR Loan or Swingline Loan thereafter, or for any
other amount hereunder which bears interest at the ABR, the rate per annum which
is the average of the rates on the offered side of the Federal funds market
quoted by three interbank Federal funds brokers, selected by the Administrative
Agent, at approximately 2:00 p.m. New York City time on such day for Dollar
deposits in immediately available funds, for a period and in an amount
comparable to the principal amount of such ABR Loan, Swingline Loan or other
amount, as the case may be; in the case of both clauses (i) and (ii), as
determined by the Administrative Agent and rounded upwards, if necessary, to the
nearest 1/100 of 1%.
"FHA": the Federal Housing Administration and any successor thereto.
"FHLMC": ▇▇▇▇▇▇▇ Mac and any successor thereto.
"FIXED RATE": with respect to any Competitive Loan (other than a Eurodollar
Competitive Loan), the fixed rate of interest per annum specified by the Lender
making such Competitive Loan in its related Competitive Bid.
"FIXED RATE COMPETITIVE BORROWING": any borrowing by the Borrower of Fixed
Rate Competitive Loans pursuant to the terms of this Agreement.
"FIXED RATE COMPETITIVE LOAN": a Competitive Loan bearing interest at a
Fixed Rate.
"FNMA": ▇▇▇▇▇▇ Mae and any successor thereto.
"FUNDING OFFICE": the office of the Administrative Agent specified in
SECTION 9.2 or such other office as may be specified from time to time by the
Administrative Agent as its funding office by written notice to the Borrower and
the Lenders.
"GAAP": generally accepted accounting principles in the United States as in
effect from time to time, except that for purposes of SECTION 6.1, GAAP shall be
determined on the basis of such principles in effect on the date hereof and
consistent with those used in the preparation of the audited financial
statements referred to in SECTION 3.1. In the event that any "Accounting Change"
(as defined below) shall occur and such change results in a change in the
12
8
method of calculation of financial covenants, standards or terms in this
Agreement, then the Borrower and the Administrative Agent agree to enter into
negotiations in order to amend such provisions of this Agreement so as to
equitably reflect such Accounting Changes with the desired result that the
criteria for evaluating the Borrower's financial condition shall be the same
after such Accounting Changes as if such Accounting Changes had not been made.
Until such time as such an amendment shall have been executed and delivered by
the Borrower and the Required Lenders, all financial covenants, standards and
terms in this Agreement shall continue to be calculated or construed as if such
Accounting Changes had not occurred. "Accounting Changes" refers to changes in
accounting principles required by the promulgation of any rule, regulation,
pronouncement or opinion by the Financial Accounting Standards Board of the
American Institute of Certified Public Accountants or, if applicable, the SEC.
"GNMA": the Government National Mortgage Association and any successor
thereto.
"GOVERNMENTAL AUTHORITY": any nation or government, any state or other
political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative functions of or
pertaining to government, any securities exchange and any self-regulatory
organization (including the National Association of Insurance Commissioners).
"HEDGING AGREEMENT": any interest rate protection agreement, interest rate
option, interest rate cap or other interest rate hedge agreement entered into by
the Borrower or any of its Subsidiaries providing to the Borrower or any of its
Subsidiaries protection against changes in interest rates.
"HEDGE CONTRACT": in respect of any Mortgage Loans, Mortgage-Backed
Securities or servicing rights for Mortgage Loans, a contract to buy or sell an
instrument on the futures market, cash forward market, private investor
whole-loan market or options market, or an option or financial future purchased
over the counter for future delivery of such instrument, in respect of interest
rate risks associated with such Mortgage Loans, Mortgage-Backed Securities and
servicing rights.
"HEDGE TERMINATION OBLIGATION": any termination amount or other amount
payable by the Borrower or any of its Subsidiaries upon the early termination,
by reason of the occurrence of a default or other termination event thereunder,
of any interest rate protection agreement, interest rate option, interest rate
cap or other interest rate hedge arrangement providing to the Borrower or any of
its Subsidiaries protection against changes in interest rates.
"HUD": The Department of Housing and Urban Development and any successor
thereto.
"INDEBTEDNESS": of any Person at any date, without duplication, (a) all
indebtedness of such Person for borrowed money, (b) all obligations of such
Person for the deferred purchase price of property or services (other than
current trade payables incurred in the ordinary course of such Person's
business), (c) all obligations of such Person evidenced by notes, bonds,
debentures or other similar instruments, (d) all indebtedness created or arising
under any
13
9
conditional sale or other title retention agreement with respect to property
acquired by such Person (even though the rights and remedies of the seller or
lender under such agreement in the event of default are limited to repossession
or sale of such property), (e) all Capital Lease Obligations of such Person, (f)
all obligations of such Person, contingent or otherwise, as an account party (or
its equivalent) under acceptances, letters of credit, surety bonds or similar
arrangements, (g) the liquidation value of all preferred Capital Stock of such
Person redeemable at the option of the holders thereof or containing mandatory
redemption or other payment provisions that could require any cash or asset
payment or distribution prior to the date that is one year after the Maturity
Date, (h) all indebtedness of others assumed or guaranteed by such Person or in
respect of which such Person is secondarily or contingently liable, (i) all
obligations of the kind referred to in clauses (a) through (i) above secured by
(or for which the holder of such obligation has an existing right, contingent or
otherwise, to be secured by) any Lien on property (including accounts and
contract rights) owned by such Person, whether or not such Person has assumed or
become liable for the payment of such obligation, and (j) for the purposes of
SECTIONS 5.7(b), 6.2 and 7(e) only, all obligations of such Person in respect of
Hedge Agreements. The Indebtedness of any Person shall include the Indebtedness
of any other entity (including any partnership in which such Person is a general
partner) to the extent such Person is liable therefor as a result of such
Person's ownership interest in such entity, except to the extent the terms of
such Indebtedness expressly provide that such Person is not liable therefor.
"INSOLVENCY": with respect to any Multiemployer Plan, the condition that
such Plan is insolvent within the meaning of Section 4245 of ERISA.
"INSOLVENT": pertaining to a condition of Insolvency.
"INTELLECTUAL PROPERTY": the collective reference to all rights, priorities
and privileges relating to intellectual property, whether arising under United
States, multinational or foreign laws or otherwise, including copyrights,
copyright licenses, patents, patent licenses, trademarks, trademark licenses,
technology, know-how and processes, and all rights to ▇▇▇ at law or in equity
for any infringement or other impairment thereof, including the right to receive
all proceeds and damages therefrom.
"INTEREST PAYMENT DATE": (a) as to any ABR Loan, the last Business Day of
each March, June, September and December to occur while such Loan is outstanding
and the final maturity date of such Loan, (b) as to any Eurodollar Loan having
an Interest Period of three months or less, the last Business Day of such
Interest Period, (c) as to any Eurodollar Loan having an Interest Period longer
than three months, each Business Day that is three months, or a whole multiple
thereof, after the first Business Day of such Interest Period and the last
Business Day of such Interest Period, (d) as to any Swingline Loan, the date of
any repayment or prepayment made in respect thereof, and (e) with respect to any
Fixed Rate Competitive Loan, the last Business Day of the Interest Period
applicable to such Loan as specified and accepted in the applicable Competitive
Bid Request and, in the case of a Fixed Rate Borrowing with an Interest Period
of more than 90 days' duration (unless otherwise specified in the applicable
Competitive Bid Request), each Business Day prior to the last Business Day of
such Interest Period that occurs at intervals of 90 days' duration after the
first Business Day of such Interest Period, and any other dates that are
specified in the applicable Competitive Bid Request as Interest Payment Dates
with respect to such Borrowing.
14
10
"INTEREST PERIOD": (a) as to any Eurodollar Loan, (i) initially, the
period commencing on the borrowing or conversion date, as the case may be, with
respect to such Eurodollar Loan and ending one, two, three or six months
thereafter, as selected by the Borrower in its notice of borrowing or notice of
conversion, as the case may be, given with respect thereto; and (ii) thereafter,
each period commencing on the last day of the next preceding Interest Period
applicable to such Eurodollar Loan and ending one, two, three or six months
thereafter, as selected by the Borrower by irrevocable notice to the
Administrative Agent not less than three Business Days prior to the last day of
the then current Interest Period with respect thereto; PROVIDED, that all of the
foregoing provisions relating to Interest Periods are subject to the following:
1. if any Interest Period would otherwise end on a day that is
not a Business Day, such Interest Period shall be extended to the next
succeeding Business Day unless the result of such extension would be to
carry such Interest Period into another calendar month in which event such
Interest Period shall end on the immediately preceding Business Day;
2. the Borrower may not select an Interest Period that would
extend beyond the Maturity Date (or, in the case of Eurodollar Competitive
Loans, the Revolving Termination Date);
3. any Interest Period that begins on the last 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 Business Day of a calendar month; and
4. the Borrower shall select Interest Periods so as not to
require a payment or prepayment of any Eurodollar Loan during an Interest
Period for such Loan; and
(b) with respect to any Fixed Rate Competitive Borrowing, the period
(which shall not be less than 7 days or more than 360 days) commencing on the
date of such borrowing and ending on the date specified in the applicable
Competitive Bid Request; PROVIDED, that (i) if any Interest Period for such
Fixed Rate Competitive Borrowing would otherwise end on a day that is not a
Business Day, such Interest Period shall extend to the next succeeding Business
Day and (ii) the Borrower may not select an Interest Period that would extend
beyond the Revolving Termination Date.
"LENDERS": as defined in the preamble hereto.
"LIEN": any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), charge or other security
interest or any preference, priority or other security agreement or preferential
arrangement of any kind or nature whatsoever (including any conditional sale or
other title retention agreement and any capital lease having substantially the
same economic effect as any of the foregoing).
"LOAN": any loan made by any Lender pursuant to this Agreement.
15
11
"LOAN DOCUMENTS": this Agreement and the Notes.
"MATERIAL ADVERSE EFFECT": a material adverse effect on (a) the business,
property, operations or financial condition of the Borrower and its Subsidiaries
taken as a whole or (b) the validity or enforceability of this Agreement or any
of the other Loan Documents or the rights or remedies of the Administrative
Agent or the Lenders hereunder or thereunder.
"MATERIALS OF ENVIRONMENTAL CONCERN": any gasoline or petroleum (including
crude oil or any fraction thereof) or petroleum products or any hazardous or
toxic substances, materials or wastes, defined or regulated as such in or under
any Environmental Law, including asbestos, polychlorinated biphenyls and
urea-formaldehyde insulation.
"MATURITY DATE": October 15, 2002.
"MORTGAGE-BACKED SECURITIES": (a) securities (including, without
limitation, participation certificates) guaranteed by GNMA that represent
interests in a pool of mortgages, deeds of trusts or other instruments creating
a Lien on property which is improved by a completed single dwelling (one-to-four
family units), (b) securities (including participation certificates) issued by
FNMA or FHLMC that represent interests in such a pool, (c) securities issued
under Approved Securities Offerings, and (d) senior tranches of privately-placed
securities representing undivided interests in or otherwise supported by such a
pool.
"MORTGAGE LOAN": a residential real estate secured loan, including, without
limitation; (a) a promissory note and related deed of trust (or mortgage) and/or
security agreements, (b) all guaranties and insurance policies, including,
without limitation, all mortgage and title insurance policies and all fire and
extended coverage insurance policies with respect thereto, and (c) all right,
title and interest of the owner of such loan in the property covered by said
deed of trust (or mortgage).
"MORTGAGE LOANS HELD FOR INVESTMENT": that dollar amount shown as such on
the balance sheet of the Borrower as of the relevant Applicable Financial Test
Date.
"MORTGAGE LOANS HELD FOR SALE": that dollar amount shown as such on the
balance sheet of the Borrower as of the relevant Applicable Financial Test Date.
"MORTGAGE SERVICING RIGHTS": the dollar amount shown as "Mortgage Servicing
Rights" on the balance sheet of the Borrower as of the relevant Applicable
Financial Test Date.
"MULTIEMPLOYER PLAN": a Plan that is a multiemployer plan as defined in
Section 4001(a)(3) of ERISA.
"NEW LENDER": as defined in SECTION 2.20(b).
"NEW LENDER SUPPLEMENT": the agreement made pursuant to SECTION 2.20(b) and
which agreement shall be substantially in the form of Exhibit G.
"NON-EXCLUDED TAXES": as defined in SECTION 2.16(a).
16
12
"NON-U.S. LENDER": as defined in SECTION 2.16(d).
"NOTES": the collective reference to the promissory notes evidencing Loans.
"OBLIGATIONS": the unpaid principal of and interest on (including interest
accruing after the maturity of the Loans and interest accruing after the filing
of any petition in bankruptcy, or the commencement of any insolvency,
reorganization or like proceeding, relating to the Borrower, whether or not a
claim for post-filing or post-petition interest is allowed in such proceeding)
the Loans and all other obligations and liabilities of the Borrower to the
Agents or to any Lender, whether direct or indirect, absolute or contingent, due
or to become due, or now existing or hereafter incurred, which may arise under,
out of, or in connection with, this Agreement, any other Loan Document, or any
other document made, delivered or given in connection herewith or therewith,
whether on account of principal, interest, reimbursement obligations, fees,
indemnities, costs, expenses (including all fees, charges and disbursements of
counsel to the Administrative Agent or to any Lender that are required to be
paid by the Borrower pursuant hereto) or otherwise.
"OTHER ASSETS": the dollar amount shown as "Other Assets" on the most
recent covenant compliance calculation delivered by the Borrower pursuant to
SECTION 5.2(b) and shall consist of all assets of the Borrower shown on the
balance sheet of the Borrower (including servicing hedge investments) as of the
most recent Applicable Financial Test Date other than assets included in the
calculation of subsections (i) - (vii) of SECTION 6.2(d); PROVIDED, HOWEVER,
that in no event shall Other Assets include intangible assets.
"OTHER TAXES": any and all present or future stamp or documentary taxes or
any other excise or property taxes, charges or similar levies arising from any
payment made hereunder or from the execution, delivery or enforcement of, or
otherwise with respect to, this Agreement or any other Loan Document.
"PARTICIPANT": as defined in SECTION 9.6(b).
"PBGC": the Pension Benefit Guaranty Corporation established pursuant to
Subtitle A of Title IV of ERISA (or any successor).
"PERSON": an individual, partnership, corporation, limited liability
company, business trust, joint stock company, trust, unincorporated association,
joint venture, Governmental Authority or other entity of whatever nature.
"PLAN": at a particular time, any employee benefit plan that is covered by
ERISA and in respect of which the Borrower or a Commonly Controlled Entity is
(or, if such plan were terminated at such time, would under Section 4069 of
ERISA be deemed to be) an "employer" as defined in Section 3(5) of ERISA.
"PRIME RATE": as defined in the definition of "ABR" in this SECTION 1.1.
"PROPERTY AND EQUIPMENT": the dollar amount shown as "Property, Equipment
and Leasehold Improvements" on the balance sheet of the Borrower as of the
relevant Applicable Financial Test Date.
17
13
"PROPERTIES": as defined in SECTION 3.16(a).
"RECEIVABLES": in respect of any transaction at any time, the accounts
receivable then owing to the Borrower or its Subsidiaries in respect thereof or
any similar contractual right to receive payment arising therefrom and then in
effect.
"REFERENCE LENDER": The Chase Manhattan Bank.
"REFUNDED SWINGLINE LOANS": as defined in SECTION 2.4(b).
"REGISTER": as defined in SECTION 9.6(d).
"REGULATION U": Regulation U of the Board as in effect from time to time.
"REORGANIZATION": with respect to any Multiemployer Plan, the condition
that such plan is in reorganization within the meaning of Section 4241 of ERISA.
"REPORTABLE EVENT": any of the events set forth in Section 4043(b) of
ERISA, other than those events as to which the thirty-day notice period is
waived under subsections .27, .28, .29, .30, .31, .32, .34 or .35 of PBGC Reg.
4043.
"REQUIRED LENDERS": at any time, the holders of more than 50% of the Total
Revolving Commitments then in effect or, if the Revolving Commitments have been
terminated, the Total Revolving Extensions of Credit then outstanding.
"REQUIREMENT OF LAW": as to any Person, the Certificate of Incorporation
and By-Laws or other organizational or governing documents of such Person, and
any law, treaty, rule or regulation or determination of an arbitrator or a court
or other Governmental Authority, in each case applicable to or binding upon such
Person or any of its property or to which such Person or any of its property is
subject.
"RESPONSIBLE OFFICER": the chief executive officer, president or chief
financial officer of the Borrower, but in any event, with respect to financial
matters, the chief financial officer of the Borrower.
"RESTRICTED PAYMENTS": as defined in SECTION 6.6.
"REVOLVING COMMITMENT": as to any Lender, the obligation of such Lender to
make Revolving Loans and participate in Swingline Loans in an aggregate
principal and/or face amount not to exceed the amount set forth under the
heading "Revolving Commitment" opposite such Lender's name on Schedule 1.1 or in
the Assignment and Acceptance pursuant to which such Lender became a party
hereto, as the same may be changed from time to time pursuant to the terms
hereof. The original amount of the Total Revolving Commitments is
$1,500,000,000.
"REVOLVING COMMITMENT PERIOD": the period from and including the Closing
Date to the Revolving Termination Date.
18
14
"REVOLVING EXTENSIONS OF CREDIT": as to any Revolving Lender at any time,
an amount equal to the sum of (a) the aggregate principal amount of all
Revolving Loans held by such Lender then outstanding and (b) such Lender's
Revolving Percentage of the aggregate principal amount of Swingline Loans then
outstanding.
"REVOLVING LENDER": each Lender that has a Revolving Commitment or that
holds Revolving Loans.
"REVOLVING LOANS": as defined in SECTION 2.1(a).
"REVOLVING PERCENTAGE": as to any Revolving Lender at any time, the
percentage which such Lender's Revolving Commitment then constitutes of the
Total Revolving Commitments (or, at any time after the Revolving Commitments
shall have expired or terminated, the percentage which the aggregate principal
amount of such Lender's Revolving Loans then outstanding constitutes of the
aggregate principal amount of the Revolving Loans then outstanding).
"REVOLVING TERMINATION DATE": October 15, 2001.
"SEC": the Securities and Exchange Commission, any successor thereto and
any analogous Governmental Authority.
"SINGLE EMPLOYER PLAN": any Plan that is covered by Title IV of ERISA, but
that is not a Multiemployer Plan.
"SUBSIDIARY": as to any Person, a corporation, partnership, limited
liability company or other entity more than fifty percent (50%) of the stock or
other ownership interests of which having by the terms thereof ordinary voting
power to vote for the election of directors, managers or trustees of such
corporation, partnership, limited liability company or other entity
(irrespective of whether or not at the time stock or other ownership interests
of any other class or classes of such corporation, partnership, limited
liability company or other entity shall have or might have voting power by
reason of the happening of any contingency) shall, at the time as of which any
determination is being made, be owned, either directly and/or through
Subsidiaries of such Person.
"SWINGLINE COMMITMENT": the obligation of each Swingline Lender to make
Swingline Loans pursuant to SECTION 2.3 in an aggregate principal amount at any
one time outstanding not to exceed the amount set forth opposite its name on
Schedule 1.1 under "Swingline Commitment". The aggregate Swingline Commitments
shall not exceed $300,000,000.
"SWINGLINE LENDER": each of The Chase Manhattan Bank, Bank of America,
N.A., Deutsche Bank AG, New York Branch, Bank One, NA (Main Office-Chicago) and
such additional Lenders, if any, having a Swingline Commitment on Schedule 1.1
under "Swingline Commitment".
"SWINGLINE LOANS": as defined in SECTION 2.3(a).
19
15
"SWINGLINE PARTICIPATION AMOUNT": as defined in SECTION 2.4(c).
"TOTAL DEBT": all Indebtedness of the Borrower and its Subsidiaries
described in clause (a), (c) or (e) of the definition thereof.
"TOTAL REVOLVING COMMITMENTS": at any time, the aggregate amount of the
Revolving Commitments then in effect.
"TOTAL REVOLVING EXTENSIONS OF CREDIT": at any time, the aggregate amount
of the Revolving Extensions of Credit of the Revolving Lenders outstanding at
such time.
"TRANSFEREE": any Assignee or Participant.
"TYPE": as to any Loan, its nature as an ABR Loan or a Eurodollar Loan.
"UNITED STATES": the United States of America.
"VA": the Veterans Administration or any successor thereto.
"WHOLLY OWNED SUBSIDIARY": as to any Person, any other Person all of the
Capital Stock of which (other than directors' qualifying shares required by law)
is owned by such Person directly and/or through other Wholly Owned Subsidiaries.
1.2. OTHER DEFINITIONAL PROVISIONS. (a) Unless otherwise specified therein,
all terms defined in this Agreement shall have the defined meanings when used in
the other Loan Documents or any certificate or other document made or delivered
pursuant hereto or thereto.
(b) As used herein and in the other Loan Documents, and any certificate or
other document made or delivered pursuant hereto or thereto, (i) accounting
terms relating to the Borrower and its Subsidiaries not defined in SECTION 1.1
and accounting terms partly defined in SECTION 1.1, to the extent not defined,
shall have the respective meanings given to them under GAAP, (ii) the words
"include", "includes" and "including" shall be deemed to be followed by the
phrase "without limitation", (iii) the word "incur" shall be construed to mean
incur, create, issue, assume, become liable in respect of or suffer to exist
(and the words "incurred" and "incurrence" shall have correlative meanings), and
(iv) the words "asset" and "property" shall be construed to have the same
meaning and effect and to refer to any and all tangible and intangible assets
and properties, including cash, Capital Stock, securities, revenues, accounts,
leasehold interests and contract rights.
(c) 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 to any particular provision of this Agreement, and Section, Schedule and
Exhibit references are to this Agreement unless otherwise specified.
(d) The meanings given to terms defined herein shall be equally applicable
to both the singular and plural forms of such terms.
20
16
SECTION 2. AMOUNT AND TERMS OF COMMITMENTS
2.1. REVOLVING COMMITMENTS. (a) Subject to the terms and conditions hereof,
each Revolving Lender severally agrees to make revolving credit loans
("REVOLVING LOANS") to the Borrower from time to time during the Revolving
Commitment Period in an aggregate principal amount at any one time outstanding
which, when added to such Lender's Revolving Percentage of the aggregate
principal amount of the Swingline Loans then outstanding, does not exceed the
amount of such Lender's Revolving Commitment. During the Revolving Commitment
Period the Borrower may use the Revolving Commitments by borrowing, prepaying
the Revolving Loans in whole or in part, and reborrowing, all in accordance with
the terms and conditions hereof; PROVIDED, that the sum of the Total Revolving
Extensions of Credit plus the aggregate principal amount of outstanding
Competitive Loans at any time shall not exceed the Total Revolving Commitments.
The Revolving Loans may from time to time be Eurodollar Loans or ABR Loans, as
determined by the Borrower and notified to the Administrative Agent in
accordance with SECTIONS 2.2 and 2.9.
(b) The Borrower shall repay all outstanding Revolving Loans on the
Maturity Date.
2.2. PROCEDURE FOR REVOLVING LOAN BORROWING. The Borrower may borrow under
the Revolving Commitments during the Revolving Commitment Period on any Business
Day; PROVIDED, that the Borrower shall give the Administrative Agent irrevocable
notice (which notice must be received by the Administrative Agent prior to 12:00
Noon, New York City time, (a) three Business Days prior to the requested
Borrowing Date, in the case of Eurodollar Loans, or (b) on the requested
Borrowing Date, in the case of ABR Loans), specifying (i) the amount and Type of
Revolving Loans to be borrowed, (ii) the requested Borrowing Date and (iii) in
the case of Eurodollar Loans, the respective amounts of each such Type of Loan
and the respective lengths of the initial Interest Period therefor. Any
Revolving Loans made on the Closing Date shall initially be ABR Loans. Each
borrowing under the Revolving Commitments shall be in an amount equal to (x) in
the case of ABR Loans, $15,000,000 or a whole multiple of $5,000,000 in excess
thereof (or, if the then aggregate Available Revolving Commitments are less than
$15,000,000, such lesser amount) and (y) in the case of Eurodollar Loans,
$25,000,000 or a whole multiple of $5,000,000 in excess thereof; PROVIDED, that
any Swingline Lender may request, on behalf of the Borrower, borrowings under
the Revolving Commitments that are ABR Loans in other amounts pursuant to
SECTION 2.4. Upon receipt of any such notice from the Borrower, the
Administrative Agent shall promptly notify each Revolving Lender thereof. Each
Revolving Lender will make the amount of its PRO RATA share of each borrowing
available to the Administrative Agent for the account of the Borrower at the
Funding Office prior to 1:00 p.m., New York City time, on the Borrowing Date
requested by the Borrower in funds immediately available to the Administrative
Agent. Such borrowing will then be made available to the Borrower by the
Administrative Agent crediting the account of the Borrower on the books of such
office with the aggregate of the amounts made available to the Administrative
Agent by the Revolving Lenders and in like funds as received by the
Administrative Agent. Any borrowing made while any Swingline Loans are
outstanding must be in an amount which is sufficient to repay such Swingline
Loans, and such Swingline Loans shall be repaid with the proceeds thereof on the
date of such borrowing.
21
17
2.3. SWINGLINE COMMITMENT. (a) Subject to the terms and conditions hereof,
each Swingline Lender agrees to make a portion of the credit available to the
Borrower under the Revolving Commitments from time to time during the Revolving
Commitment Period by making Swingline Loans ("SWINGLINE LOANS") to the Borrower;
PROVIDED, that the aggregate principal amount of Swingline Loans made by each
Swingline Lender outstanding at any time shall not exceed the Swingline
Commitment of such Swingline Lender then in effect (notwithstanding that such
Swingline Loans outstanding at any time, when aggregated with such Swingline
Lender's other outstanding Revolving Loans hereunder, may exceed such Swingline
Commitment then in effect) and (ii) the Borrower shall not request, and no
Swingline Lender shall make, any Swingline Loan if, after giving effect to the
making of such Swingline Loan, the aggregate amount of the Available Revolving
Commitment would be less than zero. During the Revolving Commitment Period, the
Borrower may use the Swingline Commitment by borrowing, repaying and
reborrowing, all in accordance with the terms and conditions hereof; PROVIDED,
further, that the sum of the Total Revolving Extensions of Credit plus the
aggregate principal amount of outstanding Competitive Loans at any time shall
not exceed the Total Revolving Commitments. Swingline Loans shall bear interest
at the rate set forth in SECTION 2.11 applicable thereto.
(b) The Borrower shall repay all outstanding Swingline Loans on the
Revolving Termination Date.
2.4. PROCEDURE FOR SWINGLINE BORROWING; REFUNDING OF SWINGLINE LOANS. (a)
Whenever the Borrower desires that the Swingline Lenders make Swingline Loans it
shall give the Swingline Lenders and the Administrative Agent irrevocable
telephonic notice confirmed promptly in writing (which telephonic notice must be
received by the Swingline Lenders not later than 2:00 p.m., New York City time,
on the proposed Borrowing Date), specifying (i) the amount to be borrowed and
(ii) the requested Borrowing Date (which shall be a Business Day during the
Revolving Commitment Period). Each borrowing under the Swingline Commitment
shall be in an amount equal to $2,500,000 or a whole multiple of $1,000,000 in
excess thereof. Not later than 3:00 p.m., New York City time, on the Borrowing
Date specified in a notice in respect of Swingline Loans, the Swingline Lenders
shall make available to the Administrative Agent at the Funding Office an amount
in immediately available funds equal to their respective pro rata share of the
amount of the Swingline Loans so requested. The Administrative Agent shall make
the proceeds of such Swingline Loans available to the Borrower on such Borrowing
Date by depositing such proceeds in the account of the Borrower with the
Administrative Agent on such Borrowing Date in immediately available funds.
(b) Each Swingline Lender, at any time and from time to time in its sole
and absolute discretion may, on behalf of the Borrower (which hereby irrevocably
directs the Swingline Lenders to act on its behalf), on notice given by such
Swingline Lender no later than 10:00 a.m., New York City time, request each
Revolving Lender to make, and each Revolving Lender hereby agrees to make, a
Revolving Loan which will initially be an ABR Loan, in an amount equal to such
Revolving Lender's Revolving Percentage of the aggregate amount of the Swingline
Loans (the "REFUNDED SWINGLINE LOANS") outstanding on the date of such notice,
to repay the Swingline Lenders. Each Revolving Lender shall make the amount of
such Revolving Loan available to the Administrative Agent at the Funding Office
in immediately available funds, not later than 3:00 p.m, New York City time, on
the date of such notice. The proceeds of such Revolving Loans shall be
immediately made available by the Administrative Agent to the
22
18
Swingline Lenders, pro rata based on their then outstanding Swingline Loans, for
application by the Swingline Lenders to the repayment of the Refunded Swingline
Loans. The Borrower irrevocably authorizes each Swingline Lender to charge the
Borrower's accounts with the Administrative Agent (up to the amount available in
each such account) in order to immediately pay the amount of such Refunded
Swingline Loans to the extent amounts received from the Revolving Lenders are
not sufficient to repay in full such Refunded Swingline Loans.
(c) If prior to the time a Revolving Loan would have otherwise been made
pursuant to SECTION 2.4(b), one of the events described in SECTION 7(f) shall
have occurred and be continuing with respect to the Borrower or if for any other
reason, as determined by any Swingline Lender in its sole discretion, Revolving
Loans may not be made as contemplated by SECTION 2.4(b), each Revolving Lender
shall, on the date such Revolving Loan was to have been made pursuant to the
notice referred to in SECTION 2.4(b) (the "REFUNDING DATE"), purchase for cash
an undivided participating interest in the then outstanding Swingline Loans by
paying to each Swingline Lender an amount (the "SWINGLINE PARTICIPATION AMOUNT")
equal to (i) such Revolving Lender's Revolving Percentage TIMES (ii) the sum of
the aggregate principal amount of Swingline Loans then outstanding that were to
have been repaid with such Revolving Loans together with accrued interest
thereon.
(d) Whenever, at any time after any Swingline Lender has received from any
Revolving Lender such Lender's Swingline Participation Amount, such Swingline
Lender receives any payment on account of the Swingline Loans, the Swingline
Lender will distribute to such Lender its Swingline Participation Amount
(appropriately adjusted, in the case of interest payments, to reflect the period
of time during which such Lender's participating interest was outstanding and
funded and, in the case of principal and interest payments, to reflect such
Lender's pro rata portion of such payment if such payment is not sufficient to
pay the principal of and interest on all Swingline Loans then due) in respect of
such Swingline Lender's Swingline Loans; PROVIDED, HOWEVER, that in the event
that such payment received by such Swingline Lender is required to be returned,
such Revolving Lender will return to such Swingline Lender any portion thereof
previously distributed to it by such Swingline Lender.
(e) Each Revolving Lender's obligation to make the Revolving Loans referred
to in SECTION 2.4(b) and to purchase participating interests pursuant to SECTION
2.4(c) shall be absolute and unconditional and shall not be affected by any
circumstance, including (i) any setoff, counterclaim, recoupment, defense or
other right that such Revolving Lender or the Borrower may have against any
Swingline Lender, the Borrower or any other Person for any reason whatsoever;
(ii) the occurrence or continuance of a Default or an Event of Default or the
failure to satisfy any of the other conditions specified in SECTION 5; (iii) any
adverse change in the condition (financial or otherwise) of the Borrower; (iv)
any breach of this Agreement or any other Loan Document by the Borrower or any
other Revolving Lender; or (v) any other circumstance, happening or event
whatsoever, whether or not similar to any of the foregoing.
2.5. FACILITY FEES, UTILIZATION FEES, ETC. (a) The Borrower agrees to pay
to the Administrative Agent for the account of each Revolving Lender a facility
fee for the period from and including the Closing Date to the last day of the
Revolving Commitment Period, computed at the Facility Fee Rate on the average
daily amount of the Revolving Commitment of such Lender during the period for
which payment is made, payable quarterly in arrears on the last
23
19
Business Day of each March, June, September and December, and on the Revolving
Termination Date or any earlier date of termination, commencing on the first of
such dates to occur after the date hereof.
(b) The Borrower agrees to pay to the Administrative Agent for the account
of each Revolving Lender and Swingline Lender a utilization fee for the period
from and including the Closing Date to the last day of the Revolving Commitment
Period, computed at the rate of 0.05% of the average daily amount of the
Revolving Loans and Swingline Loans (which in no instance shall include
Competitive Loans) made by such Lender, payable quarterly in arrears on the last
Business Day of each March, June, September and December, and on the Revolving
Termination Date or any earlier date of termination, commencing on the first of
such dates to occur after the date hereof; PROVIDED, that such fee shall be
payable only for those days on which the aggregate outstanding principal amount
of all Loans outstanding exceeds 50% of the Total Revolving Commitments on such
day.
(c) The Borrower agrees to pay to the Administrative Agent the fees in the
amounts and on the dates previously agreed to in writing by the Borrower and the
Administrative Agent.
2.6. TERMINATION OR REDUCTION OF REVOLVING COMMITMENTS. The Borrower shall
have the right, upon not less than three Business Days' notice to the
Administrative Agent (which shall promptly notify each of the Lenders), to
terminate the Revolving Commitments or, from time to time, to reduce the amount
of the Revolving Commitments; PROVIDED, that no such termination or reduction of
Revolving Commitments shall be permitted if, after giving effect thereto and to
any prepayments of the Revolving Loans made on the effective date thereof, the
Total Revolving Extensions of Credit and the Competitive Loans would exceed the
Total Revolving Commitments. Any such reduction shall be in an amount equal to
$1,000,000, or a whole multiple thereof, and shall reduce permanently the
Revolving Commitments then in effect.
2.7. COMPETITIVE BID PROCEDURE. (a) Subject to the terms and conditions set
forth herein, from time to time during the Revolving Commitment Period the
Borrower may request Competitive Bids and may (but shall not have any obligation
to) accept Competitive Bids and borrow Competitive Loans; PROVIDED, that the sum
of the Total Revolving Extensions of Credit plus the aggregate principal amount
of outstanding Competitive Loans at any time shall not exceed the Total
Revolving Commitments. To request Competitive Bids, the Borrower shall notify
the Administrative Agent of such request by telephone, in the case of a
Eurodollar Competitive Loan, not later than 12:00 Noon, New York City time, four
Business Days before the date of the proposed borrowing and, in the case of a
Fixed Rate Competitive Loan, not later than 10:00 a.m., New York City time, one
Business Day before the date of the proposed Borrowing; PROVIDED, that the
Borrower may submit up to (but not more than) three Competitive Bid Requests on
the same day, but a Competitive Bid Request shall not be made within five
Business Days after the date of any previous Competitive Bid Request, unless any
and all such previous Competitive Bid Requests shall have been withdrawn or all
Competitive Bids received in response thereto rejected, and each Competitive Bid
Request must refer solely to Eurodollar Competitive Loans or Fixed Rate
Competitive Loans. Each such telephonic Competitive Bid Request shall be
confirmed promptly by hand delivery or telecopy to the Administrative Agent of a
written Competitive Bid Request in a form approved by the Administrative Agent
and
24
20
signed by the Borrower. Each such telephonic and written Competitive Bid Request
shall specify the following information:
(i) the aggregate amount of the requested borrowing;
(ii) the date of such borrowing, which shall be a Business Day;
(iii) whether such borrowing is to be a Eurodollar Competitive
Borrowing or a Fixed Rate Competitive Borrowing;
(iv) the maturity for the Competitive Loans comprising such
borrowing, which shall range from 7 to 360 days (but not extend past the
Revolving Termination Date); and
(v) the Interest Period to be applicable to such borrowing, which
shall be a period contemplated by the definition of the term "Interest
Period".
Promptly following receipt of a Competitive Bid Request in accordance with this
Section, the Administrative Agent shall notify the Lenders of the details
thereof by telecopy, inviting the Lenders to submit Competitive Bids.
(b) Each Lender may (but shall not have any obligation to) make one or
more Competitive Bids to the Borrower in response to a Competitive Bid Request.
Each Competitive Bid by a Lender must be in a form approved by the
Administrative Agent and must be received by the Administrative Agent by
telecopy, in the case of a Eurodollar Competitive Borrowing, not later than 9:30
a.m., New York City time, three Business Days before the proposed date of such
Competitive Borrowing, and in the case of a Fixed Rate Competitive Borrowing,
not later than 9:30 a.m., New York City time, on the proposed date of such
Competitive Borrowing. Competitive Bids that do not conform substantially to the
form approved by the Administrative Agent may be rejected by the Administrative
Agent, and the Administrative Agent shall notify the applicable Lender as
promptly as practicable. Each Competitive Bid shall specify (i) the principal
amount (which shall be a minimum of $5,000,000 and an integral multiple of
$1,000,000 and which may equal the entire principal amount of the Competitive
Borrowing requested by the Borrower) of the Competitive Loan or Loans that the
applicable Lender is willing to make, (ii) the Competitive Bid Rate or Rates at
which such Lender is prepared to make such Loan or Loans (expressed as a
percentage rate per annum in the form of a decimal to no more than four decimal
places) and (iii) the Interest Period applicable to each such Loan and the last
day thereof.
(c) The Administrative Agent shall promptly notify the Borrower by
telecopy of the Competitive Bid Rate and the principal amount specified in each
Competitive Bid and the identity of the Lender that shall have made such
Competitive Bid.
(d) Subject only to the provisions of this paragraph, the Borrower may
accept or reject any Competitive Bid. The Borrower shall notify the
Administrative Agent by telephone, confirmed by telecopy in a form approved by
the Administrative Agent, whether and to what extent it has decided to accept or
reject each Competitive Bid, in the case of a Eurodollar Competitive Borrowing,
not later than 10:30 a.m., New York City time, three Business Days
25
21
before the date of the proposed Competitive Borrowing, and in the case of a
Fixed Rate Competitive Borrowing, not later than 10:30 a.m., New York City time,
on the proposed date of the subject borrowing; PROVIDED, that (i) the failure of
the Borrower to give such notice shall be deemed to be a rejection of each
Competitive Bid, (ii) the Borrower shall not accept a Competitive Bid made at a
particular Competitive Bid Rate if the Borrower rejects a Competitive Bid made
at a lower Competitive Bid Rate, (iii) the aggregate amount of the Competitive
Bids accepted by the Borrower shall not exceed the aggregate amount of the
requested borrowing specified in the related Competitive Bid Request, (iv) to
the extent necessary to comply with clause (iii) above, the Borrower may accept
Competitive Bids at the same Competitive Bid Rate in part, which acceptance
shall be made pro rata in accordance with the amount of each such Competitive
Bid, and (v) except pursuant to clause (iv) above, no Competitive Bid shall be
accepted for a Competitive Loan unless such Competitive Loan is in a minimum
principal amount of $5,000,000 and an integral multiple of $1,000,000; PROVIDED
FURTHER, that if a Competitive Loan must be in an amount less than $5,000,000
because of the provisions of clause (iv) above, such Competitive Loan may be for
a minimum of $1,000,000 or any integral multiple thereof, and in calculating the
pro rata allocation of acceptances of portions of multiple Competitive Bids at a
particular Competitive Bid Rate pursuant to clause (iv) the amounts shall be
rounded to integral multiples of $1,000,000 in a manner determined by the
Borrower. A notice given by the Borrower pursuant to this paragraph shall be
irrevocable.
(e) The Administrative Agent shall promptly notify (i) each bidding Lender
by telecopy whether or not its Competitive Bid has been accepted (and, if so,
the amount and Competitive Bid Rate so accepted), and each successful bidder
will thereupon become bound, subject to the terms and conditions hereof, to make
the Competitive Loan in respect of which its Competitive Bid has been accepted
and (ii) each other Lender of the amount, Interest Period and Competitive Bid
Rate of such Competitive Loan.
(f) If the entity which is the Administrative Agent shall elect to submit a
Competitive Bid in its capacity as a Lender, it shall submit such Competitive
Bid directly to the Borrower at least one quarter of an hour earlier than the
time by which the other Lenders are required to submit their Competitive Bids to
the Administrative Agent pursuant to paragraph (b) of this Section.
2.8. OPTIONAL PREPAYMENTS. The Borrower may at any time and from time to
time prepay the Loans, in whole or in part, without premium or penalty, upon
irrevocable notice delivered to the Administrative Agent at least three Business
Days prior thereto in the case of Eurodollar Loans and prior to 12:00 Noon (New
York City time) on the Business Day of such prepayment in the case of ABR Loans,
which notice shall specify the date and amount of prepayment and whether the
prepayment is of Eurodollar Loans or ABR Loans; PROVIDED, that if a Eurodollar
Loan is prepaid on any day other than the last day of the Interest Period
applicable thereto, the Borrower shall also pay any amounts owing pursuant to
SECTION 2.17. Upon receipt of any such notice the Administrative Agent shall
promptly notify each relevant Lender thereof. If any such notice is given, the
amount specified in such notice shall be due and payable on the date specified
therein, together with (except in the case of Revolving Loans that are ABR Loans
and Swingline Loans) accrued interest to such date on the amount prepaid.
Partial prepayments of Revolving Loans and Swingline Loans shall be in an
aggregate principal amount of
26
22
$10,000,000 or a whole multiple of $5,000,000 in excess thereof. Notwithstanding
the foregoing, Competitive Loans may not be repaid unless otherwise agreed to by
the relevant Lender.
2.9. CONVERSION AND CONTINUATION OPTIONS. (a) The Borrower may elect from
time to time to convert Revolving Loans that are Eurodollar Loans to Revolving
Loans that are ABR Loans by giving the Administrative Agent at least two
Business Days' prior irrevocable notice of such election; PROVIDED, that any
such conversion of Eurodollar Loans may only be made on the last day of an
Interest Period with respect thereto. The Borrower may elect from time to time
to convert Revolving Loans that are ABR Loans to Revolving Loans that are
Eurodollar Loans by giving the Administrative Agent at least three Business
Days' prior irrevocable notice of such election (which notice shall specify the
length of the initial Interest Period therefor); PROVIDED, that no ABR Loan may
be converted into a Eurodollar Loan when any Event of Default has occurred and
is continuing and the Administrative Agent has or the Required Lenders have
determined in its or their sole discretion not to permit such conversions. Upon
receipt of any such notice the Administrative Agent shall promptly notify each
relevant Lender thereof.
(b) Any Revolving Loan that is a Eurodollar Loan may be continued as such
upon the expiration of the then current Interest Period with respect thereto by
the Borrower giving irrevocable notice to the Administrative Agent, in
accordance with the applicable provisions of the term "Interest Period" set
forth in SECTION 1.1, of the length of the next Interest Period to be applicable
to such Loans; PROVIDED, that no such Eurodollar Loan may be continued as such
when any Event of Default has occurred and is continuing and the Administrative
Agent has or the Required Lenders have determined in its or their sole
discretion not to permit such continuations and; PROVIDED FURTHER, that if the
Borrower shall fail to give any required notice as described above in this
paragraph or if such continuation is not permitted pursuant to the preceding
proviso such Loans shall be automatically converted to ABR Loans on the last day
of such then expiring Interest Period. Upon receipt of any such notice the
Administrative Agent shall promptly notify each Lender thereof.
2.10. LIMITATIONS ON EURODOLLAR TRANCHES. Notwithstanding anything to the
contrary in this Agreement, all borrowings, conversions and continuations of
Revolving Loans that are Eurodollar Loans hereunder and all selections of
Interest Periods hereunder shall be in such amounts and be made pursuant to such
elections so that no more than twenty Eurodollar Tranches shall be outstanding
at any one time.
2.11. INTEREST RATES; PAYMENT DATES; EVIDENCE OF DEBT. (a) Subject to
clauses (e) and (f) below, each Revolving Loan that is a Eurodollar Loan shall
bear interest for each day during each Interest Period with respect thereto at a
rate per annum equal to the Eurodollar Rate determined for such day plus the
Applicable Margin.
(b) Subject to clauses (e) and (f) below, each ABR Loan shall bear interest
at a rate per annum equal to the ABR.
(c) Subject to clauses (e) and (f) below, each Swingline Loan shall bear
interest at a rate per annum equal to the Federal Funds Effective Rate plus
0.35%.
27
23
(d) Subject to clause (f) below, each Competitive Loan shall bear interest
in accordance with the applicable Competitive Bid Rate.
(e) Notwithstanding the provisions of the foregoing clauses (a), (b), (c)
and (d), all Eurodollar Loans (other than Competitive Loans) which are
outstanding on or after the Revolving Termination Date shall bear interest at a
rate per annum equal to the Eurodollar Rate plus 0.35%.
(f) (i) If all or a portion of the principal amount of any Loan shall not
be paid when due (whether at the stated maturity, by acceleration or otherwise),
such overdue amount shall bear interest at a rate per annum equal to the rate
that would otherwise be applicable thereto pursuant to this Agreement PLUS 2%,
and (ii) if all or a portion of any interest payable on any Loan or any facility
fee or other amount payable hereunder shall not be paid when due (whether at the
stated maturity, by acceleration or otherwise), such overdue amount shall bear
interest at a rate per annum equal to the rate then applicable to ABR Loans plus
2%, in each case from the date of such non-payment until such amount is paid in
full (as well after as before judgment).
(g) Interest shall be payable in arrears on each Interest Payment Date;
PROVIDED, that interest accruing pursuant to paragraph (f) of this Section shall
be payable from time to time on demand.
(h) The Borrower agrees that, upon the request to the Administrative Agent
by any Lender, the Borrower will execute and deliver to such Lender a promissory
note of the Borrower evidencing any Revolving Loans, Competitive Loans or
Swingline Loans, as the case may be, of such Lender, substantially in the forms
of Exhibit ▇-▇, ▇-▇ or D-3, respectively, with appropriate insertions as to date
and principal amount.
2.12. COMPUTATION OF INTEREST AND FEES. (a) Interest and fees payable
pursuant hereto shall be calculated on the basis of a 360-day year for the
actual days elapsed, except that, with respect to ABR Loans the rate of interest
on which is calculated on the basis of the Prime Rate, the interest thereon
shall be calculated on the basis of a 365- (or 366-, as the case may be) day
year for the actual days elapsed. The Administrative Agent shall as soon as
practicable notify the Borrower and the relevant Lenders of each determination
of a Eurodollar Rate. Any change in the interest rate on a Loan resulting from a
change in the ABR or the Eurocurrency Reserve Requirements shall become
effective as of the opening of business on the day on which such change becomes
effective. The Administrative Agent shall as soon as practicable notify the
Borrower and the relevant Lenders of the effective date and the amount of each
such change in interest rate.
(b) Each determination of an interest rate by the Administrative Agent
pursuant to any provision of this Agreement shall be conclusive and binding on
the Borrower and the Lenders in the absence of manifest error. The
Administrative Agent shall, at the request of the Borrower, deliver to the
Borrower a statement showing the quotations used by the Administrative Agent in
determining any interest rate pursuant to SECTION 2.11(a).
2.13. INABILITY TO DETERMINE INTEREST RATE. If prior to the first day of
any Interest Period:
28
24
(a) the Administrative Agent shall have determined (which
determination shall be conclusive and binding upon the Borrower) that, by
reason of circumstances affecting the relevant market, adequate and
reasonable means do not exist for ascertaining the Eurodollar Rate for such
Interest Period, or
(b) the Administrative Agent shall have received notice from the
Required Lenders that the Eurodollar Rate determined or to be determined
for such Interest Period will not adequately and fairly reflect the cost to
such Lenders (as conclusively certified by such Lenders) of making or
maintaining their affected Loans during such Interest Period,
the Administrative Agent shall give telecopy or telephonic notice thereof to the
Borrower and the relevant Lenders as soon as practicable thereafter. If such
notice is given (x) any Revolving Loans that are Eurodollar Loans requested to
be made on the first day of such Interest Period shall be made as ABR Loans, (y)
any Revolving Loans that were to have been converted on the first day of such
Interest Period to Eurodollar Loans shall be continued as ABR Loans and (z) any
outstanding Revolving Loans that are Eurodollar Loans shall be converted, on the
last day of the then-current Interest Period, to ABR Loans. Until such notice
has been withdrawn by the Administrative Agent, no further Eurodollar Loans
shall be made or continued as such, nor shall the Borrower have the right to
convert ABR Loans to Eurodollar Loans.
2.14. PRO RATA TREATMENT AND PAYMENTS. (a) Each borrowing of Revolving
Loans by the Borrower from the Lenders hereunder, each payment by the Borrower
on account of any facility fee and any reduction of the Commitments of the
Lenders shall be made PRO RATA according to the Revolving Percentages of the
Lenders.
(b) Each payment (including each prepayment) by the Borrower on
account of principal of and interest on the Revolving Loans shall be made PRO
RATA according to the respective outstanding principal amounts of the Revolving
Loans then held by the Revolving Lenders.
(c) All payments (including prepayments) to be made by the Borrower
hereunder, whether on account of principal, interest, fees or otherwise, shall
be made without setoff or counterclaim and shall be made prior to 12:00 Noon,
New York City time, on the due date thereof to the Administrative Agent, for the
account of the relevant Lenders, at the Funding Office, in Dollars and in
immediately available funds. The Administrative Agent shall distribute such
payments to the relevant Lenders promptly upon receipt in like funds as
received. If any payment hereunder (other than payments on the Eurodollar Loans)
becomes due and payable on a day other than a Business Day, such payment shall
be extended to the next succeeding Business Day. If any payment on a Eurodollar
Loan becomes due and payable on a day other than a Business Day, the maturity
thereof shall be extended to the next succeeding Business Day unless the result
of such extension would be to extend such payment into another calendar month,
in which event such payment shall be made on the immediately preceding Business
Day. In the case of any extension of any payment of principal pursuant to the
preceding two sentences, interest thereon shall be payable at the then
applicable rate during such extension.
29
25
(d) Unless the Administrative Agent shall have been notified in
writing by any Lender prior to a borrowing that such Lender will not make the
amount that would constitute its share of such borrowing available to the
Administrative Agent, the Administrative Agent may assume that such Lender is
making such amount available to the Administrative Agent, and the Administrative
Agent may, in reliance upon such assumption, make available to the Borrower a
corresponding amount. If such amount is not made available to the Administrative
Agent by the required time on the Borrowing Date therefor, such Lender shall pay
to the Administrative Agent, on demand, such amount with interest thereon at a
rate equal to the daily average Federal Funds Effective Rate for the period
until such Lender makes such amount immediately available to the Administrative
Agent. A certificate of the Administrative Agent submitted to any Lender with
respect to any amounts owing under this paragraph shall be conclusive in the
absence of manifest error. If such Lender's share of such borrowing is not made
available to the Administrative Agent by such Lender within three Business Days
of such Borrowing Date, the Administrative Agent shall also be entitled to
recover such amount with interest thereon at the rate per annum equal to the
higher of the rate at which such borrowing then bears interest and the daily
average Federal Funds Effective Rate in effect for such period (subject, in each
case, to SECTION 2.11(d)), on demand, from the Borrower.
(e) Unless the Administrative Agent shall have been notified in
writing by the Borrower prior to the date of any payment being made hereunder
that the Borrower will not make such payment to the Administrative Agent, the
Administrative Agent may assume that the Borrower is making such payment, and
the Administrative Agent may, but shall not be required to, in reliance upon
such assumption, make available to the relevant Lenders their respective pro
rata shares of a corresponding amount. If such payment is not made to the
Administrative Agent by the Borrower within three Business Days of such required
date, the Administrative Agent shall be entitled to recover, on demand, from
each Lender to which any amount was made available pursuant to the preceding
sentence, such amount with interest thereon at the rate per annum equal to the
daily average Federal Funds Effective Rate. Nothing herein shall be deemed to
limit the rights of the Administrative Agent or any Lender against the Borrower.
2.15. REQUIREMENTS OF LAW. (a) If the adoption of or any change in any
Requirement of Law or in the interpretation or application thereof or compliance
by any Lender with any request or directive (whether or not having the force of
law) from any central bank or other Governmental Authority made subsequent to
the date hereof:
(i) shall subject any Lender to any tax of any kind whatsoever
with respect to this Agreement or any Eurodollar Loan made by it, or change
the basis of taxation of payments to such Lender in respect thereof (except
for Non-Excluded Taxes covered by SECTION 2.16 and changes in the rate of
tax on the overall net income of such Lender);
(ii) shall impose, modify or hold applicable any reserve, special
deposit, compulsory loan or similar requirement against assets held by,
deposits or other liabilities in or for the account of, advances, loans or
other extensions of credit by, or any other acquisition of funds by, any
office of such Lender that is not otherwise included in the determination
of the Eurodollar Rate hereunder; or
30
26
(iii) shall impose on such Lender any other condition;
and the result of any of the foregoing is to increase the cost to such Lender,
by an amount that such Lender deems to be material, of making, converting into,
continuing or maintaining Eurodollar Loans, or to reduce any amount receivable
hereunder in respect thereof, then, in any such case, the Borrower shall
promptly pay such Lender, upon its demand, any additional amounts necessary to
compensate such Lender for such increased cost or reduced amount receivable. If
any Lender becomes entitled to claim any additional amounts pursuant to this
paragraph, it shall promptly notify the Borrower (with a copy to the
Administrative Agent) of the event by reason of which it has become so entitled.
(b) If any Lender shall have determined that the adoption of or any
change in any Requirement of Law regarding capital adequacy or in the
interpretation or application thereof or compliance by such Lender or any
corporation controlling such Lender with any request or directive regarding
capital adequacy (whether or not having the force of law) from any Governmental
Authority made subsequent to the date hereof shall have the effect of reducing
the rate of return on such Lender's or such corporation's capital as a
consequence of its obligations hereunder 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 or such corporation's
policies with respect to capital adequacy) by an amount deemed by such Lender to
be material, then from time to time, after submission by such Lender to the
Borrower (with a copy to the Administrative Agent) of a written request
therefor, the Borrower shall pay to such Lender such additional amount or
amounts as will compensate such Lender or such corporation for such reduction;
PROVIDED, that the Borrower shall not be required to compensate a Lender
pursuant to this paragraph for any amounts incurred more than six months prior
to the date that such Lender notifies the Borrower of such Lender's intention to
claim compensation therefor; and; PROVIDED FURTHER, that, if the circumstances
giving rise to such claim have a retroactive effect, then such six-month period
shall be extended to include the period of such retroactive effect.
(c) A certificate as to any additional amounts payable pursuant to
this Section submitted by any Lender to the Borrower (with a copy to the
Administrative Agent) shall be conclusive in the absence of manifest error. The
obligations of the Borrower pursuant to this Section shall survive the
termination of this Agreement and the payment of the Loans and all other amounts
payable hereunder.
2.16. TAXES. (a) All payments made by the Borrower under this
Agreement shall be made free and clear of, and without deduction or withholding
for or on account of, any present or future income, stamp or other taxes,
levies, imposts, duties, charges, fees, deductions or withholdings, now or
hereafter imposed, levied, collected, withheld or assessed by any Governmental
Authority, excluding net income taxes and franchise taxes (imposed in lieu of
net income taxes) imposed on the Administrative Agent or any Lender as a result
of a present or former connection between the Administrative Agent or such
Lender and the jurisdiction of the Governmental Authority imposing such tax or
any political subdivision or taxing authority thereof or therein (other than any
such connection arising solely from the Administrative Agent or such Lender
having executed, delivered or performed its obligations or received a payment
under, or enforced, this Agreement or any other Loan Document). If any such
non-excluded
31
27
taxes, levies, imposts, duties, charges, fees, deductions or withholdings
("NON-EXCLUDED TAXES") or Other Taxes are required to be withheld from any
amounts payable to the Administrative Agent or any Lender hereunder, the amounts
so payable to the Administrative Agent or such Lender shall be increased to the
extent necessary to yield to the Administrative Agent or such Lender (after
payment of all Non-Excluded Taxes and Other Taxes) interest or any such other
amounts payable hereunder at the rates or in the amounts specified in this
Agreement; PROVIDED, HOWEVER, that the Borrower shall not be required to
increase any such amounts payable to any Lender with respect to any Non-Excluded
Taxes (i) that are attributable to such Lender's failure to comply (if required)
with the requirements of paragraph (d) or (e) of this Section or (ii) that are
United States withholding taxes imposed on amounts payable to such Lender at the
time such Lender becomes a party to this Agreement, except to the extent that
such Lender's assignor (if any) was entitled, at the time of assignment, to
receive additional amounts from the Borrower with respect to such Non-Excluded
Taxes pursuant to this paragraph.
(b) In addition, the Borrower shall pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable law.
(c) Whenever any Non-Excluded Taxes or Other Taxes are payable by the
Borrower, as promptly as possible thereafter the Borrower shall send to the
Administrative Agent for its own account or for the account of the relevant
Lender, as the case may be, a certified copy of an original official receipt
received by the Borrower showing payment thereof. If the Borrower fails to pay
any Non- Excluded Taxes or Other Taxes when due to the appropriate taxing
authority or fails to remit to the Administrative Agent the required receipts or
other required documentary evidence, the Borrower shall indemnify the
Administrative Agent and the Lenders for any incremental taxes, interest or
penalties that may become payable by the Administrative Agent or any Lender as a
result of any such failure.
(d) Each Lender (or Transferee) that is not a citizen or resident of the
United States of America, a corporation, partnership or other entity created or
organized in or under the laws of the United States of America (or any
jurisdiction thereof), or any estate or trust that is subject to federal income
taxation regardless of the source of its income (a "NON-U.S. LENDER") shall
deliver to the Borrower and the Administrative Agent (or, in the case of a
Participant, to the Lender from which the related participation shall have been
purchased) two copies of either U.S. Internal Revenue Service Form 1001 or Form
4224, or, in the case of a Non-U.S. Lender claiming exemption from U.S. federal
withholding tax under Section 871(h) or 881(c) of the Code with respect to
payments of "portfolio interest", a statement substantially in the form of
Exhibit E and a Form W-8, or any subsequent versions thereof or successors
thereto, properly completed and duly executed by such Non-U.S. Lender claiming
complete exemption from, or a reduced rate of, U.S. federal withholding tax on
all payments by the Borrower under this Agreement and the other Loan Documents.
Such forms shall be delivered by each Non-U.S. Lender on or before the date it
becomes a party to this Agreement (or, in the case of any Participant, on or
before the date such Participant purchases the related participation). In
addition, each Non-U.S. Lender shall deliver successor forms promptly upon the
obsolescence or invalidity of any form previously delivered by such Non-U.S.
Lender. Each Non-U.S. Lender shall promptly notify the Borrower at any time it
determines that it is no longer in a position to provide any previously
delivered certificate to the Borrower (or any other form of certification
adopted by the U.S. taxing authorities for such purpose). Notwithstanding any
other provision of
32
28
this paragraph, a Non-U.S. Lender shall not be required to deliver any form
pursuant to this paragraph that such Non-U.S. Lender is not legally able to
deliver.
(e) A Lender that is entitled to an exemption from or reduction of non-U.S.
withholding tax under the law of the jurisdiction in which the Borrower is
located, or any treaty to which such jurisdiction is a party, with respect to
payments under this Agreement shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law or
reasonably requested by the Borrower, such properly completed and executed
documentation prescribed by applicable law as will permit such payments to be
made without withholding or at a reduced rate; PROVIDED, that such Lender is
legally entitled to complete, execute and deliver such documentation and in such
Lender's judgment such completion, execution or submission would not materially
prejudice the legal position of such Lender.
(f) The agreements in this Section shall survive the termination of this
Agreement and the payment of the Loans and all other amounts payable hereunder.
2.17. INDEMNITY. The Borrower agrees to indemnify each Lender and to hold
each Lender harmless from any loss or expense that such Lender may sustain or
incur as a consequence of (a) default by the Borrower in making a borrowing of,
conversion into or continuation of Eurodollar Loans after the Borrower has given
a notice requesting the same in accordance with the provisions of this
Agreement, (b) default by the Borrower in making any prepayment of or conversion
from Eurodollar Loans after the Borrower has given a notice thereof in
accordance with the provisions of this Agreement or (c) the making of a
prepayment of or conversion to Eurodollar Loans on a day that is not the last
day of an Interest Period with respect thereto (d) failure by the Borrower to
borrow any Competitive Loan after accepting the Competitive Bid to make such
Loan or (e) the purchase of any Fixed Rate Competitive Loan other than on the
last day of the Interest Period applicable thereto as a result of a request by
the Borrower pursuant to Section 2.19 and to the extent provided in clause (v)
thereof. Such loss will be calculated by determining the excess, if any, of (i)
the amount of interest that would have accrued on the amount so prepaid, or not
so borrowed, converted or continued, for the period from the date of such
prepayment or of such failure to borrow, convert or continue to the last day of
such Interest Period (or, in the case of a failure to borrow, convert or
continue, the Interest Period that would have commenced on the date of such
failure) in each case at the applicable rate of interest for such Loans provided
for herein (excluding, however, the Applicable Margin included therein, if any)
over (ii) the amount of interest (as reasonably determined by such Lender) that
would have accrued to such Lender on such amount by placing such amount on
deposit for a comparable period with leading banks in the interbank eurodollar
market, as well as any reasonable customary costs, charges or expenses resulting
from such circumstance. A certificate as to any amounts payable pursuant to this
Section submitted to the Borrower by any Lender shall be conclusive in the
absence of manifest error. This covenant shall survive the termination of this
Agreement and the payment of the Loans and all other amounts payable hereunder.
2.18. CHANGE OF LENDING OFFICE. Each Lender agrees that, upon the
occurrence of any event giving rise to the operation of SECTION 2.15 or 2.16(a)
with respect to such Lender, it will, if requested by the Borrower, use
reasonable efforts (subject to overall policy considerations of such Lender) to
designate another lending office for any Loans affected by
33
29
such event with the object of avoiding the consequences of such event; PROVIDED,
that such designation is made on terms that, in the sole judgment of such
Lender, cause such Lender and its lending office(s) to suffer no economic, legal
or regulatory disadvantage, and; PROVIDED FURTHER, that nothing in this Section
shall affect or postpone any of the obligations of the Borrower or the rights of
any Lender pursuant to SECTION 2.15 or 2.16(a).
2.19. REPLACEMENT OF LENDERS. The Borrower shall be permitted to replace
any Lender that (a) requests reimbursement for amounts owing pursuant to SECTION
2.15 or 2.16(a) or (b) defaults in its obligation to make Loans hereunder, with
a replacement financial institution; PROVIDED, that (i) such replacement does
not conflict with any Requirement of Law, (ii)) no Event of Default shall have
occurred and be continuing at the time of such replacement, (iii) prior to any
such replacement, such Lender shall have taken no action under SECTION 2.18 so
as to eliminate the continued need for payment of amounts owing pursuant to
SECTION 2.15 or 2.16(a), (iv) the replacement financial institution shall
purchase, at par, all Loans and other amounts owing to such replaced Lender on
or prior to the date of replacement, (v) the Borrower shall be liable to such
replaced Lender under SECTION 2.17 if any Eurodollar Loan or Fixed Rate
Competitive Loan owing to such replaced Lender shall be purchased other than on
the last day of the Interest Period relating thereto, (vi) the replacement
financial institution, if not already a Lender, shall be reasonably satisfactory
to the Administrative Agent, (vii) the replaced Lender shall be obligated to
make such replacement in accordance with the provisions of SECTION 9.6
(PROVIDED, that the Borrower shall be obligated to pay the registration and
processing fee referred to therein), until such time as such replacement shall
be consummated, the Borrower shall pay all additional amounts (if any) required
pursuant to SECTION 2.15 or 2.16(a), as the case may be, and (ix) any such
replacement shall not be deemed to be a waiver of any rights that the Borrower,
the Administrative Agent or any other Lender shall have against the replaced
Lender.
2.20. OPTIONAL COMMITMENT INCREASE(a) The Borrower shall have the right at
any time and from time to time to increase the Total Revolving Commitments to an
aggregate amount not to exceed $2,500,000,000 (i) by requesting that one or more
banks or other financial institutions not a party to this Agreement become a
Lender hereunder or (ii) by requesting that any Lender already party to this
Agreement increase the amount of such Lender's Commitment; PROVIDED, that the
addition of any bank or financial institution pursuant to clause (i) above shall
be subject to the consent of the Administrative Agent (which consent shall not
be unreasonably withheld); provided FURTHER, the Commitment of any bank or other
financial institution pursuant to clause (i) above shall be in an aggregate
principal amount at least equal to $10,000,000; PROVIDED FURTHER, the amount of
the increase of any Lender's Commitment pursuant to clause (ii) above when added
to the amount of such Lender's Commitment before the increase, shall be in an
aggregate principal amount at least equal to $10,000,000.
(b) Any additional bank, financial institution or other entity which elects
to become a party to this Agreement and obtain a Commitment pursuant to clause
(a) of this SECTION 2.20 shall execute a New Lender Supplement (each, a "NEW
LENDER SUPPLEMENT") with the Borrower and the Administrative Agent,
substantially in the form of Exhibit G. Upon its receipt of a New Lender
Supplement executed by an additional bank, financial institution or other entity
which elects to become a party to this Agreement and obtain a Commitment
pursuant to clause (a) of this SECTION 2.20, together with payment to the
Administrative Agent of a registration and processing fee of $3,500, the
Administrative Agent shall (i) promptly accept
34
30
such New Lender Supplement and (ii) record the information contained therein in
the Register on the effective date determined pursuant thereto, whereupon such
bank, financial institution or other entity (herein called a "NEW LENDER") shall
become a Lender for all purposes and to the same extent as if originally a party
hereto and shall be bound by and entitled to the benefits of this Agreement, and
Schedule 1.1 shall be deemed to be amended to add the name and Commitment of
such New Lender.
(c) Any increase in the Total Revolving Commitments pursuant to clause
(a)(ii) of this SECTION 2.20 shall be effective only upon the execution and
delivery to the Borrower and the Administrative Agent of a commitment increase
supplement in substantially the form of Exhibit F (A "COMMITMENT INCREASE
SUPPLEMENT"), which Commitment Increase Supplement shall be delivered to the
Administrative Agent not less than five Business Days prior to the Commitment
Increase Date and shall specify (i) the amount of any increase in the Commitment
of any Lender and (ii) the date such increase is to become effective (THE
"COMMITMENT INCREASE DATE").
(d) Any increase in the Total Revolving Commitments pursuant to this
SECTION 2.20 shall not be effective unless:
(i) no Default or Event of Default shall have occurred and be
continuing on the Commitment Increase Date;
(ii) each of the representations and warranties made by the
Borrower in SECTION 3, or in any certificate delivered pursuant hereto,
shall be true and correct in all material respects on the Commitment
Increase Date with the same effect as though made on and as of such date,
except to the extent such representations and warranties expressly relate
to an earlier date in which case such representations and warranties shall
be true and correct in all material respects as of such earlier date;
(iii) the Administrative Agent shall have received each of (A) a
certificate of the corporate secretary or assistant secretary of the
Borrower as to the taking of any corporate action necessary in connection
with such increase and (B) an opinion or opinions of general counsel to the
Borrower as to its corporate power and authority to borrow hereunder after
giving effect to such increase and such other matters relating thereto as
the Administrative Agent and its counsel may reasonably request.
Each notice requesting an increase in the Total Revolving Commitments pursuant
to this SECTION 2.20 shall constitute a certification to the effect set forth in
clauses (i) and (ii) of this SECTION 2.20(d).
(e) No Lender shall at any time be required to agree to a request of
the Borrower to increase its Commitment or obligations hereunder.
35
31
SECTION 3. REPRESENTATIONS AND WARRANTIES
To induce the Agents and the Lenders to enter into this Agreement and the
Lenders to make the Loans, the Borrower hereby represents and warrants to the
Administrative Agent and each Lender that:
3.1. FINANCIAL CONDITION. The consolidated balance sheet of the Borrower
and its consolidated Subsidiaries as at September 30, 1999, and the related
consolidated statements of income and of cash flows for the fiscal year ended on
such date, reported on by ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ LLP, copies of which have heretofore
been furnished to each Lender, are complete and correct and present fairly the
consolidated financial condition of the Borrower and its consolidated
Subsidiaries as at such date, and the consolidated results of their operations
and their consolidated cash flows for the fiscal year then ended. The
consolidated balance sheet of the Borrower and its consolidated Subsidiaries as
at June 30, 2000, and the related consolidated statements of income and of cash
flows for the period ended on such date, certified by a Responsible Officer,
copies of which have heretofore been furnished to each Lender, are complete and
correct and present fairly the consolidated financial condition of the Borrower
and its consolidated Subsidiaries as at such date, and the consolidated results
of their operations and their consolidated cash flows for the period then ended
(subject to normal year-end adjustments). All such financial statements,
including the related schedules and notes thereto, have been prepared in
accordance with GAAP applied consistently throughout the periods involved
(except as approved by such accountants or Responsible Officer, as the case may
be, and as disclosed therein). Except for those items set forth on Schedule
3.1A, neither the Borrower nor any of its consolidated Subsidiaries had, at the
date of the most recent balance sheet referred to above, any material contingent
liability or material liability for taxes, or any material long-term lease or
material unusual forward or long-term commitment, including, without limitation,
any interest rate or foreign currency swap or exchange transaction, which is not
reflected in the foregoing statements or in the notes thereto. Except as
disclosed on Schedule 3.1B, during the period from June 30, 2000 to and
including the date hereof there has been no sale, transfer or other disposition
by the Borrower or any of its consolidated Subsidiaries of any material part of
its business or property and no purchase or other acquisition of any business or
property (including any Capital Stock of any other Person) material in relation
to the consolidated financial condition of the Borrower and its consolidated
Subsidiaries at June 30, 2000.
3.2. NO CHANGE. Since September 30, 1999 there has been no development or
event which has had or could reasonably be expected to have a Material Adverse
Effect.
3.3. CORPORATE EXISTENCE; COMPLIANCE WITH LAW. Each of the Borrower and its
Subsidiaries (a) is duly organized, validly existing and in good standing under
the laws of the jurisdiction of its organization, (b) has the corporate power
and authority, and the legal right, to own and operate its property, to lease
the property it operates as lessee and to conduct the business in which it is
currently engaged, (c) is duly qualified as a foreign corporation and in good
standing under the laws of each jurisdiction where its ownership, lease or
operation of property or the conduct of its business requires such
qualification, except to the extent that the failure to be so qualified or in
good standing could not, in the aggregate, reasonably be expected to have a
Material Adverse Effect, (d) has any other valid and current classification
under the regulations of each of the Agencies necessary in the normal conduct of
its business and (f) is in
36
32
compliance with all Requirements of Law except to the extent that the failure to
comply therewith could not, in the aggregate, reasonably be expected to have a
Material Adverse Effect.
3.4. CORPORATE POWER; AUTHORIZATION; ENFORCEABLE OBLIGATIONS. The Borrower
has the corporate power and authority, and the legal right, to make, deliver and
perform the Loan Documents to which it is a party and to borrow hereunder and
has taken all necessary corporate action to authorize the borrowings on the
terms and conditions of this Agreement and any Notes and to authorize the
execution, delivery and performance of the Loan Documents to which it is a
party. No consent or authorization of, filing with, notice to or other act by or
in respect of any Governmental Authority or any other Person is required in
connection with the borrowings hereunder or with the execution, delivery,
performance, validity or enforceability of the Loan Documents to which the
Borrower is a party, except as set forth on Schedule 3.4, all of which have been
duly accomplished and are valid and in full force and effect. This Agreement has
been, and each other Loan Document will be, duly executed and delivered on
behalf of the Borrower. This Agreement constitutes, and each other Loan Document
when executed and delivered by the Borrower will constitute, a legal, valid and
binding obligation of the Borrower enforceable against it in accordance with its
terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and other similar laws relating to or affecting
creditors' rights generally, general equitable principles (whether considered in
a proceeding in equity or at law) and an implied covenant of good faith and fair
dealing.
3.5. NO LEGAL BAR. The execution, delivery and performance of the Loan
Documents, the borrowings hereunder and the use of the proceeds thereof will not
violate any Requirement of Law or Contractual Obligation of the Borrower or of
any of its Subsidiaries and will not result in, or require, the creation or
imposition of any Lien on any of its or their respective properties or revenues
pursuant to any such Requirement of Law or Contractual Obligation.
3.6. NO MATERIAL LITIGATION. No litigation, investigation or proceeding of
or before any arbitrator or Governmental Authority is pending or, to the
knowledge of the Borrower, threatened by or against the Borrower or any of its
Subsidiaries or against any of its or their respective properties or revenues
with respect to any of the Loan Documents or any of the transactions
contemplated hereby or thereby, or (b) except as set forth on Schedule 3.6,
which could reasonably be expected to have a Material Adverse Effect.
3.7. NO DEFAULT. Neither the Borrower nor any of its Subsidiaries is in
default under or with respect to any of its Contractual Obligations in any
respect which could reasonably be expected to have a Material Adverse Effect. No
Default or Event of Default has occurred and is continuing.
3.8. OWNERSHIP OF PROPERTY; LIENS. Each of the Borrower and its
Subsidiaries has good record and marketable title in fee simple to, or a valid
leasehold interest in, all its real property material to the operation of its
business, and good title to, or a valid leasehold interest in, all its other
property material to the operation of its business, and none of such property is
subject to any Lien except as permitted by SECTION 6.3.
37
33
3.9. INTELLECTUAL PROPERTY. Each of the Borrower and each of its
Subsidiaries owns, or is licensed to use, all Intellectual Property necessary
for the conduct of its business as currently conducted except for where the
failure to own or license could not reasonably be expected to have a Material
Adverse Effect. No claim has been asserted and is pending by any Person
challenging or questioning the use of any such Intellectual Property or the
validity or effectiveness of any such Intellectual Property, nor does the
Borrower know of any valid basis for any such claim. The use of such
Intellectual Property by the Borrower and its Subsidiaries does not infringe on
the rights of any Person, except for such claims and infringements that, in the
aggregate, could not reasonably be expected to have a Material Adverse Effect.
3.10. TAXES. Each of the Borrower and its Subsidiaries has filed or caused
to be filed all federal, state income and other material tax returns which, to
the knowledge of the Borrower, are required to be filed and has paid all taxes
shown to be due and payable on said returns or on any assessments made against
it or any of its property and all other taxes, fees or other charges imposed on
it or any of its property by any Governmental Authority (other than any the
amount or validity of which are currently being contested in good faith by
appropriate proceedings and with respect to which reserves in conformity with
GAAP have been provided on the books of the Borrower or its Subsidiaries, as the
case may be); and no material tax Lien has been filed, and, to the knowledge of
the Borrower, no material claim is being asserted, with respect to any such tax,
fee or other charge.
3.11. FEDERAL REGULATIONS. No part of the proceeds of any Loans will be
used in a manner that violates Regulation U as now and from time to time
hereafter in effect.
3.12. ERISA. Neither a Reportable Event that reasonably could result in the
termination of a Plan (other than a standard termination) or which could have a
Material Adverse Effect nor an "accumulated funding deficiency" (within the
meaning of Section 412 of the Code or Section 302 of ERISA) has occurred during
the five-year period prior to the date on which this representation is made or
deemed made with respect to any Single Employer Plan, and each Plan has complied
in all material respects with the applicable provisions of ERISA and the Code.
No termination of a Single Employer Plan has occurred (other than a standard
termination) and no Lien in favor of the PBGC or a Plan has arisen during such
five-year period. The present value of all accrued benefits under each Single
Employer Plan (based on those assumptions used to fund such Plan) did not, as of
the last annual valuation date prior to the date on which this representation is
made or deemed made, exceed the value of the assets of such Plan allocable to
such accrued benefits. Neither the Borrower nor any Commonly Controlled Entity
has had a complete or partial withdrawal from any Multiemployer Plan, and
neither the Borrower nor any Commonly Controlled Entity would become subject to
any liability under ERISA if the Borrower or any such Commonly Controlled Entity
were to withdraw completely from all Multiemployer Plans as of the valuation
date most closely preceding the date on which this representation is made or
deemed made. No such Multiemployer Plan is in Reorganization or Insolvent.
3.13. INVESTMENT COMPANY ACT; OTHER REGULATIONS. The Borrower is not an
"investment company", or a company "controlled" by an "investment company",
within the meaning of the Investment Company Act of 1940, as amended. The
Borrower is not subject to
38
34
regulation under any Federal or State statute or regulation (other than
Regulation X of the Board) which limits its ability to incur the Loans.
3.14. SUBSIDIARIES. The Subsidiaries listed on Schedule 3.14
constitute all the Subsidiaries of the Borrower at the date hereof.
3.15. PURPOSE OF LOANS. The proceeds of the Loans shall be used for
general corporate purposes.
3.16. ENVIRONMENTAL MATTERS. Except to the extent that all of the
following, in the aggregate, could not reasonably be expected to have a Material
Adverse Effect:
(a) The facilities and properties owned, leased or operated by
the Borrower or any of its Subsidiaries (the "PROPERTIES") do not contain,
and have not previously contained, any Materials of Environmental Concern
in amounts or concentrations which (i) constitute or constituted a
violation of, or (ii) could reasonably be expected to give rise to
liability under, any Environmental Law.
(b) The Properties and all operations at the Properties are in
compliance, and have in the last five years been in compliance, in all
material respects with all applicable Environmental Laws, and there is no
contamination at, under or about the Properties or violation of any
Environmental Law with respect to the Properties or the business operated
by the Borrower or any of its Subsidiaries (the "BUSINESS") which could
interfere with the continued operation of the Properties.
(c) Neither the Borrower nor any of its Subsidiaries has received
any notice of violation, alleged violation, non-compliance, liability or
potential liability regarding environmental matters or compliance with
Environmental Laws with regard to any of the Properties or the Business,
nor does the Borrower have knowledge or reason to believe that any such
notice will be received or is being threatened.
(d) Materials of Environmental Concern have not been transported
or disposed of from the Properties in violation of, or in a manner or to a
location which could reasonably be expected to give rise to liability
under, any Environmental Law, nor have any Materials of Environmental
Concern been generated, treated, stored or disposed of at, on or under any
of the Properties in violation of, or in a manner that could reasonably be
expected to give rise to liability under, any applicable Environmental Law.
(e) No judicial proceeding or governmental or administrative
action is pending or, to the knowledge of the Borrower, threatened, under
any Environmental Law to which the Borrower or any Subsidiary is or will be
named as a party with respect to the Properties or the Business, nor are
there any consent decrees or other decrees, consent orders, administrative
orders or other orders, or other administrative or judicial requirements
outstanding under any Environmental Law with respect to the Properties or
the Business.
(f) There has been no release or threat of release of Materials
of Environmental Concern at or from the Properties, or arising from or
related to the operations of the
39
35
Borrower or any Subsidiary in connection with the Properties or otherwise
in connection with the Business, in violation of or in amounts or in a
manner that could reasonably give rise to liability under Environmental
Laws.
3.17. DISCLOSURE. The statements and information contained herein, in
any other Loan Document and in any of the information provided to the
Administrative Agent or the Lenders in writing (other than financial
projections) in connection with this Agreement, taken as a whole, do not contain
any untrue statement of any material fact, or omit to state a fact necessary in
order to make such statements or information not misleading in any material
respect, in each case in light of the circumstances under which such statements
were made or information provided as of the date so provided and subject to any
information subsequently provided in writing which amends, modifies or corrects
the information previously furnished. There is no fact known to the Borrower,
other than economic conditions generally, including interest rate risk, that
could reasonably be expected to have a Material Adverse Effect that has not been
expressly disclosed herein, in the other Loan Documents or in such other
documents, certificates and written statements furnished to the Administrative
Agent and the Lenders for use in connection with the transactions contemplated
hereby and by the other Loan Documents.
SECTION 4. CONDITIONS PRECEDENT
4.1. CONDITIONS TO INITIAL EXTENSION OF CREDIT. The effectiveness of
this Agreement and agreement of each Lender to make its Commitment available
hereunder is subject to the satisfaction of the following conditions precedent:
(a) CREDIT AGREEMENT. The Administrative Agent shall have received
this Agreement, executed and delivered by the Administrative Agent, the
Borrower and each Person listed on Schedule 1.1.
(b) FINANCIAL STATEMENTS. The Lenders shall have received audited
consolidated financial statements of the Borrower for the fiscal year ended
September 30, 1999.
(c) FEES. The Lenders and the Administrative Agent shall have received
all fees required to be paid, and all expenses for which invoices have been
presented (including the reasonable fees and expenses of legal counsel), on
or before the Closing Date.
(d) CLOSING CERTIFICATE. The Administrative Agent shall have received,
with a counterpart for each Lender, a certificate of the Borrower, dated
the Closing Date, substantially in the form of Exhibit A, with appropriate
insertions and attachments.
(e) LEGAL OPINIONS. The Administrative Agent shall have received the
following executed legal opinions:
(i) the legal opinion of ▇▇▇▇▇▇▇▇ & ▇▇▇▇▇▇▇▇, counsel to the
Borrower and its Subsidiaries, substantially in the form of Exhibit
C-1; and
40
36
(ii) the legal opinion of ▇▇▇▇▇▇ ▇▇▇▇▇▇, Esq., general counsel of
the Borrower and its Subsidiaries, substantially in the form of
Exhibit C-2.
(f) TERMINATION OF EXISTING CREDIT AGREEMENT. The Administrative Agent
shall have received evidence reasonably satisfactory to it that,
simultaneously herewith, all principal, interest, fees and other amounts
owing by the Borrower under the Existing Credit Agreement shall have been
paid in full, the Existing Credit Agreement shall have been terminated and
all Liens thereunder shall have been terminated and released. Each Lender
party hereto which is also a party to the Existing Credit Agreement hereby
agrees that any notice of termination required under the Existing Credit
Agreement is hereby deemed to have been waived.
4.2. CONDITIONS TO EACH EXTENSION OF CREDIT. The agreement of each
Lender to make any extension of credit requested to be made by it on any date
(including its initial extension of credit) is subject to the satisfaction of
the following conditions precedent:
(a) REPRESENTATIONS AND WARRANTIES. Each of the representations and
warranties made by the Borrower in SECTION 3 shall be true and correct on
and as of such date as if made on and as of such date; PROVIDED, HOWEVER,
that the representations and warranties made in SECTION 3.2 and SECTION 3.6
shall not be required as conditions to any extension of credit after the
Closing Date.
(b) NO DEFAULT. No Default or Event of Default shall have occurred and
be continuing on such date or after giving effect to the extensions of
credit requested to be made on such date.
Each borrowing by the Borrower hereunder shall constitute a
representation and warranty by the Borrower as of the date of such borrowing
that the conditions in clauses (a) and (b) of this Section have been satisfied.
SECTION 5. AFFIRMATIVE COVENANTS
The Borrower hereby agrees that, so long as the Commitments remain in
effect, or any Loan or other amount is owing to any Lender or the Administrative
Agent hereunder, the Borrower shall and shall cause each of its Subsidiaries to:
5.1. FINANCIAL STATEMENTS. Furnish to the Administrative Agent and
each Lender:
(a) as soon as available, but in any event within 90 days after the
end of each fiscal year of the Borrower, a copy of the audited consolidated
balance sheet of the Borrower and its consolidated Subsidiaries as at the
end of such year and the related audited consolidated statements of income
and of cash flows for such year, setting forth in each case in comparative
form the figures as of the end of and for the previous year, reported on
without a "going concern" or like qualification or exception, or
qualification arising out of the scope of the audit, by KPMG LLP or other
independent certified public accountants of nationally recognized standing;
and
41
37
(b) as soon as available, but in any event not later than 45 days
after the end of each of the first three quarterly periods of each fiscal
year of the Borrower, the unaudited consolidated balance sheet of the
Borrower and its consolidated Subsidiaries as at the end of such quarter
and the related unaudited consolidated statements of income and of cash
flows for such quarter and the portion of the fiscal year through the end
of such quarter, setting forth in each case in comparative form the figures
as of the end of and for the corresponding period in the previous year,
certified by a Responsible Officer as being fairly stated in all material
respects (subject to normal year-end audit adjustments).
All such financial statements shall be complete and correct in all material
respects and shall be prepared in reasonable detail and in accordance with GAAP
applied consistently throughout the periods reflected therein and with prior
periods (except as approved by such accountants or officer, as the case may be,
and disclosed therein).
5.2. CERTIFICATES; OTHER INFORMATION. Furnish to the Administrative
Agent and each Lender):
(a) concurrently with the delivery of the financial statements
referred to in SECTION 5.1(a), a certificate of the chief financial officer
or treasurer of the Borrower certifying that no Default or Event of Default
exists, except as specified in such certificate;
(b) concurrently with the delivery of the financial statements
referred to in SECTIONS 5.1(a) and (b), a certificate of a Responsible
Officer stating that, to the best of such Responsible Officer's knowledge,
during such period, the Borrower has observed or performed in all material
respects all of its covenants and other agreements, and satisfied in all
material respects every condition, contained in this Agreement and the
other Loan Documents to be observed, performed or satisfied by it, and that
such Responsible Officer has obtained no knowledge of any Default or Event
of Default except as specified in such certificate, and containing
calculations in reasonable detail demonstrating compliance with the
provisions of SECTIONS 6.1, 6.2 and 6.6 (including the calculation of the
amounts included in SECTION 6.2(d));
(c) within five days after the same are sent, copies of all financial
statements and reports which the Borrower may make to, or file with, the
SEC or any successor or analogous Governmental Authority;; and
(d) promptly, such additional financial and other information as any
Lender may from time to time reasonably request.
5.3. PAYMENT OF OBLIGATIONS. Pay, discharge or otherwise satisfy at or
before maturity or before they become delinquent, as the case may be, all its
material obligations of whatever nature, except where the amount or validity
thereof is currently being contested in good faith by appropriate proceedings
and reserves in conformity with GAAP with respect thereto have been provided on
the books of the Borrower or its Subsidiaries, as the case may be.
5.4. MAINTENANCE OF EXISTENCE; COMPLIANCE. (a)(i) Preserve, renew and
keep in full force and effect its corporate existence and (ii) take all
reasonable action to maintain all
42
38
rights, privileges and franchises necessary or desirable in the normal conduct
of its business, except, in each case, as otherwise permitted by SECTION 6.4 and
except, in the case of clause (ii) above, to the extent that failure to do so
could not reasonably be expected to have a Material Adverse Effect; and (b)
comply with all Contractual Obligations and Requirements of Law except to the
extent that failure to comply therewith could not, in the aggregate, reasonably
be expected to have a Material Adverse Effect.
5.5. MAINTENANCE OF PROPERTY; INSURANCE; RISK MANAGEMENT. Keep all
property useful and necessary in its business in good working order and
condition; maintain with financially sound and reputable insurance companies
insurance on all its property in at least such amounts and against at least such
risks (but including in any event public liability, product liability and
business interruption) as are usually insured against in the same general area
by companies engaged in the same or a similar business; furnish to each Lender,
upon written request, full information as to the insurance carried; and maintain
a risk management policy with respect to its portfolio of Mortgage Loans and
servicing rights designed to reduce fluctuations in the value of its servicing
portfolio due to interest rate movements.
5.6. INSPECTION OF PROPERTY; BOOKS AND RECORDS; DISCUSSIONS. Keep
proper books of records and account in which full, true and correct entries in
conformity with GAAP and all Requirements of Law shall be made of all dealings
and transactions in relation to its business and activities; and permit
representatives of any Lender to visit and inspect any of its properties and
examine and make abstracts from any of its books and records at any reasonable
time and as often as may reasonably be desired and to discuss the business,
operations, properties and financial and other condition of the Borrower and its
Subsidiaries with officers and employees of the Borrower and its Subsidiaries
and with its independent certified public accountants; PROVIDED, that such
visits by Lenders shall be coordinated through the Administrative Agent and,
when no Event of Default has occurred and is continuing, shall be arranged upon
reasonable prior notice during normal working hours and with reasonable efforts
to minimize disruption of the normal conduct of business of the Borrower and its
Subsidiaries.
5.7. NOTICES. Promptly give notice to the Administrative Agent and
each Lender of:
(a) the occurrence of any Default or Event of Default promptly after
the Borrower has knowledge thereof;
(b) any (i) default or event of default under any Indebtedness of the
Borrower or any of its Subsidiaries in aggregate principal amount in excess
of $10,000,000 or (ii) litigation, investigation or proceeding that may
exist at any time between the Borrower or any of its Subsidiaries and any
Governmental Authority, that in either case, if not cured or if adversely
determined, as the case may be, could reasonably be expected to have a
Material Adverse Effect;
(c) the following events, as soon as possible and in any event within
30 days after the Borrower knows or has reason to know thereof: (i) the
occurrence of any Reportable Event with respect to any Plan, a failure to
make any required contribution to a Plan, the creation of any Lien in favor
of the PBGC or a Plan or any withdrawal from, or the
43
39
termination, Reorganization or Insolvency of, any Multiemployer Plan or
(ii) the institution of proceedings or the taking of any other action by
the PBGC or the Borrower or any Commonly Controlled Entity or any
Multiemployer Plan with respect to the withdrawal from, or the termination,
Reorganization or Insolvency of, any Plan; and
(d) any change in the business, operations, property or condition
(financial or otherwise) of the Borrower and its Subsidiaries taken as a
whole that has had or has a reasonable likelihood of having a Material
Adverse Effect.
Each notice pursuant to this SECTION 5.7 shall be accompanied by a statement of
a Responsible Officer setting forth details of the occurrence referred to
therein and stating what action the Borrower or the relevant Subsidiary proposes
to take with respect thereto.
5.8. ENVIRONMENTAL LAWS. (a) Comply with, and ensure compliance by all
tenants and subtenants, if any, with, all applicable Environmental Laws and
obtain and comply in all material respects with and maintain, and ensure that
all tenants and subtenants obtain and comply in all material respects with and
maintain, any and all licenses, approvals, notifications, registrations or
permits required by applicable Environmental Laws except to the extent that
failure to do so could not be reasonably expected to have a Material Adverse
Effect.
(b) Conduct and complete all investigations, studies, sampling and
testing, and all remedial, removal and other actions required under
Environmental Laws and promptly comply in all material respects with all lawful
orders and directives of all Governmental Authorities regarding Environmental
Laws except to the extent that the same are being contested in good faith by
appropriate proceedings and the pendency of such proceedings could not be
reasonably expected to have a Material Adverse Effect.
(c) Defend, indemnify and hold harmless the Agents and the Lenders,
and their respective employees, agents, officers and directors, from and against
any claims, demands, penalties, fines, liabilities, settlements, damages, costs
and expenses of whatever kind or nature known or unknown, contingent or
otherwise, arising out of, or in any way relating to the violation of,
noncompliance with or liability under any Environmental Laws applicable to the
operations of the Borrower, or any orders, requirements or demands of
Governmental Authorities related thereto, including, without limitation,
attorney's and consultant's fees, investigation and laboratory fees, response
costs, court costs and litigation expenses, except to the extent that any of the
foregoing arise out of the gross negligence or willful misconduct of the party
seeking indemnification therefor. Notwithstanding anything in this Agreement to
the contrary, this indemnity shall continue in full force and effect regardless
of the termination of this Agreement.
5.9. MAINTENANCE OF AGENCY STATUS. In the case of the Borrower,
maintain at all times its status as an FNMA and FHMLC approved seller/servicer,
a GNMA approved issuer/servicer, a HUD Direct Endorsement Lender, a VA-approved
Lender and an FHA approved lender in good standing to the extent necessary to
conduct its normal business.
44
40
SECTION 6. NEGATIVE COVENANTS
The Borrower hereby agrees that, so long as the Commitments remain in
effect or any Loan or other amount is owing to any Lender or the Administrative
Agent hereunder, the Borrower shall not, and shall not permit any of its
Subsidiaries to, directly or indirectly:
6.1. FINANCIAL CONDITION COVENANTS. Permit Consolidated Net Worth at
the last day of any fiscal quarter to be less than $1 billion (which equals 75%
of Consolidated Net Worth at June 30, 2000).
6.2. INDEBTEDNESS. Create, issue, incur, assume, become liable in
respect of or suffer to exist any Indebtedness, except:
(a) Indebtedness of the Borrower to any Subsidiary;
(b) obligations of the Borrower or its Subsidiaries under Hedge
Contracts entered into in the ordinary course of business;
(c) Indebtedness constituting obligations under Hedging Agreements
entered into by the Borrower in the ordinary course of business; and
(d) additional Indebtedness, so long as Total Debt at no time exceeds
the greater of an amount at any time equal to Consolidated Tangible Net
Worth at the end of the most recent fiscal quarter for which financial
statements have been delivered prior to such time multiplied by seven and
(2) the sum of: (i) 100% of Cash at such time, (ii) 98% of the amount of
Mortgage Loans Held For Sale at such time, (iii) 90% of Mortgage Loans Held
for Investment at such time, (iv) 98% of the amount of Receivables for
Mortgage Loans shipped (including Mortgage Loans and Mortgage-Backed
Securities subject to a Lien under a repurchase agreement but excluding all
other Mortgage Loans and Mortgage-Backed Securities which are excluded from
Eligible Mortgage Assets) at such time, (v) 90% of Early Pool Buyout
Advances and Accounts Receivable at such time, (vi) 50% of Property and
Equipment at such time, (vii) 80% of Mortgage Servicing Rights at such
time, and (viii) 50% of Other Assets (including servicing hedge investments
and excluding intangible assets) at such time.
6.3. LIENS. Create, incur, assume or suffer to exist any Lien upon any
of its property, whether now owned or hereafter acquired, except for:
(a) Liens for taxes not yet due or that are being contested in good
faith by appropriate proceedings;
(b) carriers', warehousemen's, mechanics', materialmen's, repairmen's
or other like Liens arising in the ordinary course of business or that are
being contested in good faith by appropriate proceedings; PROVIDED, that
adequate reserves with respect thereto are maintained on the books of the
Borrower or its Subsidiaries, as the case may be, in accordance with GAAP;
45
41
(c) pledges or deposits in connection with workers' compensation,
unemployment insurance and other social security legislation;
(d) deposits to secure the performance of bids, trade contracts (other
than for borrowed money), leases, statutory obligations, surety and appeal
bonds, performance bonds and other obligations of a like nature incurred in
the ordinary course of business;
(e) easements, rights-of-way, restrictions and other similar
encumbrances incurred in the ordinary course of business that, in the
aggregate, are not substantial in amount and do not in any case materially
detract from the value of the property subject thereto or materially
interfere with the ordinary conduct of the business of the Borrower or any
of its Subsidiaries;
(f) Liens of landlords, arising solely by operation of law and which
are not avoidable as a matter of law, on fixtures and moveable property
located on premises leased in the ordinary course of business; PROVIDED,
that the rental payments secured thereby are not yet due;
(g) Liens (not otherwise permitted hereunder) which secure obligations
incidental to repurchase contracts ordinary in the mortgage banking
businesses of the Borrower and its Subsidiaries;
(h) Liens (not otherwise permitted hereunder) which secure obligations
(as to the Borrower and all Subsidiaries) incidental to forward delivery
contracts ordinary in the mortgage banking businesses of the Borrower and
its Subsidiaries;
(i) Liens securing Hedging Agreements;
(j) Liens in existence on the Closing Date described on Schedule 6.3;
(k) Liens securing Indebtedness (including Capital Lease Obligations)
of the Borrower or any of its Subsidiaries not in excess of $10,000,000 in
aggregate principal amount at any time outstanding incurred to finance the
acquisition of fixed or capital assets; PROVIDED, that (i) such Liens shall
be created substantially simultaneously with the acquisition of such fixed
or capital assets, (ii) such Liens do not at any time encumber any property
other than the property financed by such Indebtedness and (iii) the amount
of Indebtedness secured thereby is not increased;
(l) Liens not otherwise permitted by this Section so long as neither
(i) the aggregate outstanding principal amount of the obligations secured
thereby nor (ii) the aggregate fair market value (determined as of the date
such Lien is incurred) of the assets subject thereto exceeds (as to the
Borrower and all Subsidiaries) $15,000,000 at any one time; and
(m) any extension, renewal or replacement (or successive extensions,
renewals or replacements), in whole or in part, of any Lien referred to in
the foregoing clauses; PROVIDED, that the principal amount of Indebtedness
secured thereby shall not exceed the principal amount of Indebtedness so
secured immediately prior to the time of such
46
42
extension, renewal or replacement, and that such extension, renewal, or
replacement Lien shall be limited to all or a part of the property subject
to the Lien so extended, renewed or replaced (plus improvements on such
property).
6.4. FUNDAMENTAL CHANGES. Enter into any merger, consolidation or
amalgamation, or liquidate, wind up or dissolve itself (or suffer any
liquidation or dissolution), or Dispose of all or substantially all of its
property or business, except that:
(a) any Subsidiary of the Borrower may be merged or consolidated with
or into the Borrower (PROVIDED, that the Borrower shall be the continuing
or surviving corporation); and
(b) any Subsidiary of the Borrower may Dispose of any or all of its
assets (upon voluntary liquidation or otherwise) to the Borrower;
(c) the Borrower may dissolve any Subsidiary that is inactive and
holds minimal assets and the continued existence of which is of no value to
the Borrower or the interests of the Lenders; and
(d) the Borrower may be consolidated with or merged with any
corporation so long as (i) in any such merger or consolidation the Borrower
shall be the surviving or resulting corporation, (ii) at the time of and
immediately after the effectiveness of such merger or consolidation there
shall not have occurred or be continuing a Default or an Event of Default,
nor would a Default or an Event of Default result therefrom, and (iii) the
aggregate consideration, if any, paid by the Borrower and its Subsidiaries
in connection therewith, when aggregated with all such other consideration
paid after the Closing Date under this clause (d), does not exceed
$100,000,000.
6.5. LIMITATION ON SALE OF ASSETS. Convey, sell, lease, assign,
transfer or otherwise dispose of any of its property, business or assets
(including, without limitation, receivables and leasehold interests), whether
now owned or hereafter acquired, other than in the ordinary course of business,
if the aggregate fair market value of such Dispositions from the Closing Date to
the time thereof after giving effect thereto would exceed $25,000,000, or, in
the case of any Subsidiary, issue or sell any shares of such Subsidiary's
Capital Stock to any Person other than the Borrower or any Wholly Owned
Subsidiary, except as permitted by SECTION 6.4(b).
6.6. RESTRICTED PAYMENTS. Declare or pay any dividend (other than
dividends payable solely in common stock of the Person making such dividend) on,
or make any payment on account of, or set apart assets for a sinking or other
analogous fund for, the purchase, redemption, defeasance, retirement or other
acquisition of, any Capital Stock of the Borrower or any Subsidiary of the
Borrower, whether now or hereafter outstanding, or make any other distribution
in respect thereof, either directly or indirectly, whether in cash or property
or in obligations of the Borrower or any Subsidiary of the Borrower
(collectively, "RESTRICTED PAYMENTS"), except that so long as no Event of
Default has occurred and is continuing or would result therefrom, the Borrower
may declare and pay cash dividends on its common stock.
6.7. LIMITATION ON INVESTMENTS, LOANS AND ADVANCES. Make any advance,
loan, extension of credit or capital contribution to, or purchase any stock,
bonds, notes, debentures or
47
43
other securities of, or any assets constituting a business unit of, or make any
other investment in, any Person, except:
(a) investments made in the ordinary course of the Borrower's
business, including investments in Mortgage Loans, Mortgage-Backed
Securities, mortgage servicing rights and Hedge Contracts;
(b) investments in Cash Equivalents;
(c) loans and advances to employees of the Borrower and its
Subsidiaries in an aggregate amount not to exceed $2,500,000 at any time
outstanding;
(d) loans permitted under SECTION 6.2(c); and
(e) additional investments in Persons other than the Borrower or any
Subsidiary of the Borrower, in an aggregate amount not to exceed
$100,000,000 at any time outstanding.
6.8. TRANSACTIONS WITH AFFILIATES. Except for the agreements listed on
Schedule 6.8, enter into any transaction, including, without limitation, any
purchase, sale, lease or exchange of property or the rendering of any service,
with any Affiliate unless such transaction is upon fair and reasonable terms no
less favorable to the Borrower or such Subsidiary, as the case may be, than it
would obtain in a comparable arm's length transaction with a Person that is not
an Affiliate.
6.9. CHANGES IN FISCAL PERIODS. Permit the fiscal year of the Borrower
to end on a day other than the last day of September.
6.10. LINES OF BUSINESS. Enter into any business, either directly or
through any Subsidiary of the Borrower, except for those businesses in which the
Borrower and its Subsidiaries are engaged on the date of this Agreement or that
are reasonably related thereto.
SECTION 7. EVENTS OF DEFAULT
If any of the following events shall occur and be continuing:
(a) the Borrower shall fail to pay any principal of any Loan when due
in accordance with the terms hereof; or the Borrower shall fail to pay any
interest on any Loan, or any other amount payable hereunder or under any
other Loan Document, within five days after any such interest or other
amount becomes due in accordance with the terms hereof or thereof; or
(b) any representation or warranty made or deemed made by the Borrower
herein or in any other Loan Document or that is contained in any
certificate, document or financial or other statement furnished by it at
any time under or in connection with this Agreement or any other Loan
Document shall prove to have been inaccurate in any material respect on or
as of the date made or deemed made; or
48
44
(c) the Borrower shall default in the observance or performance of any
agreement contained in clause (i) or (ii) of SECTION 5.4(a), SECTION 5.7(a)
or SECTION 6; or
(d) the Borrower shall default in the observance or performance of any
other agreement contained in this Agreement or any other Loan Document
(other than as provided in paragraphs (a) through (c) of this Section), and
any such default described in this paragraph (d) shall continue unremedied
for a period of 30 days; or
(e) the Borrower or any of its Subsidiaries shall (i) default in any
payment of principal of or interest on any Indebtedness (other than the
Loans) or in the payment of any Hedge Termination Obligation, beyond the
period of grace, if any, provided in the instrument or agreement under
which such Indebtedness or Hedge Termination Obligation was created; or
(ii) default in the observance or performance of any other agreement or
condition relating to any such Indebtedness or Hedge Termination Obligation
or contained in any instrument or agreement evidencing, securing or
relating thereto, or any other event shall occur or condition exist, the
effect of which default or other event or condition is to cause, or to
permit the holder or holders or beneficiary of such Indebtedness or Hedge
Termination Obligation (or a trustee or agent on behalf of such holder or
holders or beneficiary) to cause, with the giving of notice if required,
such Indebtedness to become due prior to its stated maturity or such Hedge
Termination Obligation to become payable; PROVIDED, HOWEVER, that no
Default or Event of Default shall exist under this paragraph unless the
aggregate amount of Indebtedness and/or Hedge Termination Obligations in
respect of which any default or other event or condition referred to in
this paragraph shall have occurred shall be equal to at least $25,000,000;
or
(f) (i) the Borrower or any of its Subsidiaries shall commence any
case, proceeding or other action (A) under any existing or future law of
any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency,
reorganization or relief of debtors, seeking to have an order for relief
entered with respect to it, or seeking to adjudicate it as bankrupt or
insolvent, or seeking reorganization, arrangement, adjustment, winding-up,
liquidation, dissolution, composition or other relief with respect to it or
its debts, or (B) seeking appointment of a receiver, trustee, custodian,
conservator or other similar official for it or for all or any substantial
part of its assets, or the Borrower or any of its Subsidiaries shall make a
general assignment for the benefit of its creditors; or (ii) there shall be
commenced against the Borrower or any of its Subsidiaries any case,
proceeding or other action of a nature referred to in clause (i) above that
(A) results in the entry of an order for relief or any such adjudication or
appointment or (B) remains undismissed, undischarged or unbonded for a
period of 60 days; or (iii) there shall be commenced against the Borrower
or any of its Subsidiaries any case, proceeding or other action seeking
issuance of a warrant of attachment, execution, distraint or similar
process against all or any substantial part of its assets that results in
the entry of an order for any such relief that shall not have been vacated,
discharged, or stayed or bonded pending appeal within 60 days from the
entry thereof; or (iv) the Borrower or any of its Subsidiaries shall take
any action in furtherance of, or indicating its consent to, approval of, or
acquiescence in, any of the acts set forth in clause (i), (ii), or (iii)
above; or (v) the
49
45
Borrower or any of its Subsidiaries shall generally not, or shall be unable
to, or shall admit in writing its inability to, pay its debts as they
become due;or
(g) (i) any Person shall engage in any "prohibited transaction" (as
defined in Section 406 of ERISA or Section 4975 of the Code) involving any
Plan, (ii) any "accumulated funding deficiency" (as defined in Section 302
of ERISA), whether or not waived, shall exist with respect to any Plan or
any Lien in favor of the PBGC or a Plan shall arise on the assets of the
Borrower or any Commonly Controlled Entity, (iii) a Reportable Event shall
occur with respect to, or proceedings shall commence to have a trustee
appointed (or a trustee shall be appointed) to administer, or to terminate,
any Single Employer Plan, which Reportable Event or commencement of
proceedings or appointment of a trustee is, in the reasonable opinion of
the Required Lenders, likely to result in the termination of such Plan for
purposes of Title IV of ERISA, (iv) any Single Employer Plan shall
terminate for purposes of Title IV of ERISA, (v) the Borrower or any
Commonly Controlled Entity shall, or in the reasonable opinion of the
Required Lenders is likely to, incur any liability in connection with a
withdrawal from, or the Insolvency or Reorganization of, a Multiemployer
Plan or (vi) any other event or condition shall occur or exist with respect
to a Plan; and in each case in clauses (i) through (vi) above, such event
or condition, together with all other such events or conditions, if any,
could, in the sole judgment of the Required Lenders, reasonably be expected
to have a Material Adverse Effect; or
(h) one or more judgments or decrees shall be entered against the
Borrower or any of its Subsidiaries involving in the aggregate a liability
(not paid or fully covered by insurance as to which the relevant insurance
company has acknowledged coverage) of $25,000,000 or more, and all such
judgments or decrees shall not have been vacated, discharged, stayed or
bonded pending appeal within 60 days from the entry thereof; or
(i) National Australia Bank Limited shall cease to own, directly or
indirectly, 75% of the Capital Stock of the Borrower;
then, and in any such event, (A) if such event is an Event of Default specified
in clause (i) or (ii) of paragraph (f) above with respect to the Borrower,
automatically the Commitments shall immediately terminate and the Loans
hereunder (with accrued interest thereon) and all other amounts owing under this
Agreement and the other Loan Documents shall immediately become due and payable,
and (B) if such event is any other Event of Default, either or both of the
following actions may be taken: (i) with the consent of the Required Lenders,
the Administrative Agent may, or upon the request of the Required Lenders, the
Administrative Agent shall, by notice to the Borrower declare the Revolving
Commitments to be terminated forthwith, whereupon the Revolving Commitments
shall immediately terminate; and (ii) with the consent of the Required Lenders,
the Administrative Agent may, or upon the request of the Required Lenders, the
Administrative Agent shall, by notice to the Borrower, declare the Loans
hereunder (with accrued interest thereon) and all other amounts owing under this
Agreement and the other Loan Documents to be due and payable forthwith,
whereupon the same shall immediately become due and payable. Except as expressly
provided above in this Section, presentment, demand, protest and all other
notices of any kind are hereby expressly waived by the Borrower.
50
46
SECTION 8. THE AGENTS
8.1. APPOINTMENT. Each Lender hereby irrevocably designates and appoints
the Administrative Agent as the agent of such Lender under this Agreement and
the other Loan Documents, and each Lender irrevocably authorizes the
Administrative Agent, in such capacity, to take such action on its behalf under
the provisions of this Agreement and the other Loan Documents and to exercise
such powers and perform such duties as are expressly delegated to the
Administrative Agent by the terms of this Agreement and the other Loan
Documents, together with such other powers as are reasonably incidental thereto.
Notwithstanding any provision to the contrary elsewhere in this Agreement, the
Administrative Agent shall not have any duties or responsibilities, except those
expressly set forth herein, or any fiduciary relationship with any Lender, and
no implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or any other Loan Document or
otherwise exist against the Administrative Agent.
8.2. DELEGATION OF DUTIES. The Administrative Agent may execute any of its
duties under this Agreement and the other Loan Documents by or through agents or
attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties. The Administrative Agent shall not be
responsible for the negligence or misconduct of any agents or attorneys in-fact
selected by it with reasonable care.
8.3. EXCULPATORY PROVISIONS. Neither any Agent nor any of their respective
officers, directors, employees, agents, attorneys-in-fact or affiliates shall be
(i) liable for any action lawfully taken or omitted to be taken by it or such
Person under or in connection with this Agreement or any other Loan Document
(except to the extent that any of the foregoing is found by a final and
nonappealable decision of a court of competent jurisdiction to have resulted
from its or such Person's own gross negligence or willful misconduct) or (ii)
responsible in any manner to any of the Lenders for any recitals, statements,
representations or warranties made by the Borrower or any officer thereof
contained in this Agreement or any other Loan Document or in any certificate,
report, statement or other document referred to or provided for in, or received
by the Agents under or in connection with, this Agreement or any other Loan
Document or for the value, validity, effectiveness, genuineness, enforceability
or sufficiency of this Agreement or any other Loan Document or for any failure
of the Borrower to perform its obligations hereunder or thereunder. The Agents
shall not be under any obligation to any Lender to ascertain or to inquire as to
the observance or performance of any of the agreements contained in, or
conditions of, this Agreement or any other Loan Document, or to inspect the
properties, books or records of the Borrower.
8.4. RELIANCE BY ADMINISTRATIVE AGENT. The Administrative Agent shall be
entitled to rely, and shall be fully protected in relying, upon any instrument,
writing, resolution, notice, consent, certificate, affidavit, letter, telecopy,
telephone, telex or teletype message, statement, order or other document or
conversation believed by it to be genuine and correct and to have been signed,
sent or made by the proper Person or Persons and upon advice and statements of
legal counsel (including counsel to the Borrower), independent accountants and
other experts selected by the Administrative Agent. The Administrative Agent may
deem and treat the payee of any Note as the owner thereof for all purposes
unless a written notice of assignment, negotiation or transfer thereof shall
have been filed with the Administrative Agent.
51
47
The Administrative Agent shall be fully justified in failing or refusing to take
any action under this Agreement or any other Loan Document unless it shall first
receive such advice or concurrence of the Required Lenders (or, if so specified
by this Agreement, all Lenders) as it deems appropriate or it shall first be
indemnified to its satisfaction by the Lenders against any and all liability and
expense that may be incurred by it by reason of taking or continuing to take any
such action. The Administrative Agent shall in all cases be fully protected in
acting, or in refraining from acting, under this Agreement and the other Loan
Documents in accordance with a request of the Required Lenders (or, if so
specified by this Agreement, all Lenders), and such request and any action taken
or failure to act pursuant thereto shall be binding upon all the Lenders and all
future holders of the Loans.
8.5. NOTICE OF DEFAULT. The Administrative Agent shall not be deemed to
have knowledge or notice of the occurrence of any Default or Event of Default
hereunder unless the Administrative Agent has received notice from a Lender or
the Borrower referring to this Agreement, describing such Default or Event of
Default and stating that such notice is a "notice of default". In the event that
the Administrative Agent receives such a notice, the Administrative Agent shall
give notice thereof to the Lenders. The Administrative Agent shall take such
action with respect to such Default or Event of Default as shall be reasonably
directed by the Required Lenders (or, if so specified by this Agreement, all
Lenders); PROVIDED, that unless and until the Administrative Agent shall have
received such directions, the Administrative Agent may (but shall not be
obligated to) take such action, or refrain from taking such action, with respect
to such Default or Event of Default as it shall deem advisable in the best
interests of the Lenders.
8.6. NON-RELIANCE ON AGENTS AND OTHER LENDERS. Each Lender expressly
acknowledges that neither the Agents nor any of their respective officers,
directors, employees, agents, attorneys-in-fact or affiliates have made any
representations or warranties to it and that no act by any Agent hereafter
taken, including any review of the affairs of the Borrower or any affiliate of
the Borrower, shall be deemed to constitute any representation or warranty by
any Agent to any Lender. Each Lender represents to the Agents that it has,
independently and without reliance upon any Agent or any other Lender, and based
on such documents and information as it has deemed appropriate, made its own
appraisal of and investigation into the business, operations, property,
financial and other condition and creditworthiness of the Borrower and its
affiliates and made its own decision to make its Loans hereunder and enter into
this Agreement. Each Lender also represents that it will, independently and
without reliance upon any 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 credit analysis, appraisals and decisions in taking or not taking action
under this Agreement and the other Loan Documents, and to make such
investigation as it deems necessary to inform itself as to the business,
operations, property, financial and other condition and creditworthiness of the
Borrower and its affiliates. Except for notices, reports and other documents
expressly required to be furnished to the Lenders by the Administrative Agent
hereunder, the Administrative Agent shall not have any duty or responsibility to
provide any Lender with any credit or other information concerning the business,
operations, property, condition (financial or otherwise), prospects or
creditworthiness of the Borrower or any of its affiliates that may come into the
possession of the Administrative Agent or any of its officers, directors,
employees, agents, attorneys-in-fact or affiliates.
52
48
8.7. INDEMNIFICATION. The Lenders agree to indemnify each Agent in its
capacity as such (to the extent not reimbursed by the Borrower and without
limiting the obligation of the Borrower to do so), ratably according to their
respective Aggregate Exposure Percentages in effect on the date on which
indemnification is sought under this Section (or, if indemnification is sought
after the date upon which the Commitments shall have terminated and the Loans
shall have been paid in full, ratably in accordance with such Aggregate Exposure
Percentages immediately prior to such date), from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind whatsoever that may at any time
(whether before or after the payment of the Loans) be imposed on, incurred by or
asserted against such Agent in any way relating to or arising out of, the
Commitments, this Agreement, any of the other Loan Documents or any documents
contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby or any action taken or omitted by such Agent
under or in connection with any of the foregoing; PROVIDED, that no Lender shall
be liable for the payment of any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements resulting from such Agent's gross negligence or willful
misconduct. The agreements in this Section shall survive the payment of the
Loans and all other amounts payable hereunder.
8.8. AGENT IN ITS INDIVIDUAL CAPACITY. Each entity which is an Agent and
its affiliates may make loans to, accept deposits from and generally engage in
any kind of business with the Borrower or any of its affiliates as though such
entity were not an Agent. With respect to its Loans made or renewed by it, each
entity which is an Agent shall have the same rights and powers under this
Agreement and the other Loan Documents as any Lender and may exercise the same
as though it were not an Agent, and the terms "Lender" and "Lenders" shall
include each entity which is an Agent in its individual capacity.
8.9. SUCCESSOR ADMINISTRATIVE AGENT. The Administrative Agent may resign as
Administrative Agent upon 10 days' notice to the Lenders and the Borrower, and
the Administrative Agent may be removed at any time with cause by an instrument
or concurrent instruments in writing delivered to the Borrower and the
Administrative Agent and signed by the Required Lenders. If the Administrative
Agent shall resign or be removed as Administrative Agent under this Agreement
and the other Loan Documents, then the Required Lenders shall appoint from among
the Lenders a successor agent for the Lenders, which successor agent shall
(unless an Event of Default under SECTION 7(a) or SECTION 7(f) with respect to
the Borrower shall have occurred and be continuing) be subject to approval by
the Borrower (which approval shall not be unreasonably withheld or delayed),
whereupon such successor agent shall succeed to the rights, powers and duties of
the Administrative Agent, and the term "Administrative Agent" shall mean such
successor agent effective upon such appointment and approval, and the former
Administrative Agent's rights, powers and duties as Administrative Agent shall
be terminated, without any other or further act or deed on the part of such
former Administrative Agent or any of the parties to this Agreement or any
holders of the Loans. If no successor agent has accepted appointment as
Administrative Agent by the date that is 10 days following an Administrative
Agent's notice of resignation or its removal, the Administrative Agent's
resignation or removal shall nevertheless thereupon become effective and the
Lenders shall assume and perform all of the duties of the Administrative Agent
hereunder until such time, if any, as the Required Lenders appoint a successor
agent as provided for above. After any Administrative Agent's resignation
53
49
or removal as Administrative Agent, the provisions of this SECTION 8 shall inure
to its benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent under this Agreement and the other Loan Documents.
8.10. OTHER AGENTS. Notwithstanding any provision to the contrary elsewhere
in this Agreement, no Agent other than the Administrative Agent shall have any
duties or responsibilities hereunder or under any other Loan Document, or any
fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Loan Document or otherwise exist against any such Agent.
SECTION 9. MISCELLANEOUS
9.1. AMENDMENTS AND WAIVERS. Neither this Agreement, any other Loan
Document, nor any terms hereof or thereof may be amended, supplemented or
modified except in accordance with the provisions of this SECTION 9.1. The
Required Lenders and the Borrower may, or, with the written consent of the
Required Lenders, the Administrative Agent and the Borrower may, from time to
time, (a) enter into written amendments, supplements or modifications hereto and
to the other Loan Documents for the purpose of adding any provisions to this
Agreement or the other Loan Documents or changing in any manner the rights of
the Lenders or of the Borrower hereunder or thereunder or (b) waive, on such
terms and conditions as the Required Lenders or the Administrative Agent, as the
case may be, may specify in such instrument, any of the requirements of this
Agreement or the other Loan Documents or any Default or Event of Default and its
consequences; PROVIDED, HOWEVER, that no such waiver and no such amendment,
supplement or modification shall (i) eliminate or reduce any voting rights under
this SECTION 9.1, forgive the principal amount or extend the final scheduled
date of maturity of any Loan, reduce the stated rate of any interest or fee
payable hereunder or extend the scheduled date of any payment thereof, or
increase the amount or extend the expiration date of any Lender's Revolving
Commitment, in each case without the consent of each Lender directly affected
thereby; (ii) reduce any percentage specified in the definition of Required
Lenders or consent to the assignment or transfer by the Borrower of any of its
rights and obligations under this Agreement and the other Loan Documents without
the consent of all Lenders; (iii) amend, modify or waive any provision of
SECTION 8 without the consent of the Administrative Agent, or (iv) amend, modify
or waive any provision of SECTION 2.3 or 2.4 without the consent of the
Swingline Lenders. Any such waiver and any such amendment, supplement or
modification shall apply equally to each of the Lenders and shall be binding
upon the Borrower, the Lenders, the Administrative Agent and all future holders
of the Loans. In the case of any waiver, the Borrower, the Lenders and the
Administrative Agent shall be restored to their former position and rights
hereunder and under the other Loan Documents, and any Default or Event of
Default waived shall be deemed to be cured and not continuing; but no such
waiver shall extend to any subsequent or other Default or Event of Default, or
impair any right consequent thereon.
9.2. NOTICES. Unless otherwise expressly provided herein, all notices,
requests and demands to or upon the respective parties hereto to be effective
shall be in writing (including by telecopy), and, unless otherwise expressly
provided herein, shall be deemed to have been duly
54
50
given or made when delivered, or three Business Days after being deposited in
the mail, postage prepaid, or, in the case of telecopy notice, when received,
addressed as follows in the case of the Borrower and the Administrative Agent,
and as set forth in an administrative questionnaire delivered to the
Administrative Agent in the case of the Lenders, or to such other address as may
be hereafter notified by the respective parties hereto:
The Borrower: HomeSide Lending, Inc.
▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: W. ▇▇▇▇▇ ▇▇▇▇▇▇
Telecopy: ▇▇▇-▇▇▇-▇▇▇▇;
The Administrative Agent: The Chase Manhattan Bank
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇ ▇▇▇▇▇▇▇
Telecopy: ▇▇▇-▇▇▇-▇▇▇▇;
with a copy to: Chase Loan and Agency Services Group
One Chase ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇ ▇▇▇▇▇▇▇
Telecopy: ▇▇▇-▇▇▇-▇▇▇▇;
PROVIDED, that any notice, request or demand to or upon the Administrative Agent
or the Lenders shall not be effective until received.
9.3. NO WAIVER; CUMULATIVE REMEDIES. No failure to exercise and no delay in
exercising, on the part of the Administrative Agent or any Lender, any right,
remedy, power or privilege hereunder or under the other Loan Documents shall
operate as a waiver thereof; nor shall any single or partial exercise of any
right, remedy, power or privilege hereunder preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or privilege.
The rights, remedies, powers and privileges herein provided are cumulative and
not exclusive of any rights, remedies, powers and privileges provided by law.
9.4. SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All representations and
warranties made hereunder, in the other Loan Documents and in any document,
certificate or statement delivered pursuant hereto or in connection herewith
shall survive the execution and delivery of this Agreement and the making of the
Loans hereunder.
9.5. PAYMENT OF EXPENSES AND TAXES. The Borrower agrees (a) to pay or
reimburse the Administrative Agent for all its out-of-pocket costs and expenses
incurred in connection with the development, preparation and execution of, and
any amendment, supplement or modification to, this Agreement and the other Loan
Documents and any other documents prepared in connection herewith or therewith,
and the consummation and administration of the transactions contemplated hereby
and thereby, including the reasonable fees and disbursements of counsel to the
Administrative Agent and filing and recording fees and expenses, with
55
51
statements with respect to the foregoing to be submitted to the Borrower prior
to the Closing Date (in the case of amounts to be paid on the Closing Date) and
from time to time thereafter on a quarterly basis or such other periodic basis
as the Administrative Agent shall deem appropriate, (b) to pay or reimburse each
Lender and the Administrative Agent for all its costs and expenses incurred in
connection with the enforcement or preservation of any rights under this
Agreement, the other Loan Documents and any such other documents, including the
fees and disbursements of counsel (including the allocated fees and expenses of
in-house counsel) to each Lender and of counsel to the Administrative Agent, (c)
to pay and indemnify and hold harmless each Lender and the Administrative Agent
from any and all recording and filing fees and any and all liabilities with
respect to, or resulting from any delay in paying, stamp, excise and other
taxes, if any, that may be payable or determined to be payable in connection
with the execution and delivery of, or consummation or administration of any of
the transactions contemplated by, or any amendment, supplement or modification
of, or any waiver or consent under or in respect of, this Agreement, the other
Loan Documents and any such other documents, and (d) to pay and indemnify and
hold harmless each Lender and each Agent and their respective officers,
directors, employees, affiliates, agents and controlling persons (each, an
"INDEMNITEE") from and against any and all other liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever with respect to the execution,
delivery, enforcement, performance and administration of this Agreement, the
other Loan Documents and any such other documents, including any of the
foregoing relating to the use of proceeds of the Loans or the violation of,
noncompliance with or liability under any Environmental Law applicable to the
operations of the Borrower, any of its Subsidiaries or any of the Properties and
the reasonable fees and expenses of legal counsel in connection with claims,
actions or proceedings by any Indemnitee against the Borrower under any Loan
Document (all the foregoing in this clause (d), collectively, the "INDEMNIFIED
LIABILITIES"); PROVIDED, that the Borrower shall have no obligation hereunder to
any Indemnitee with respect to Indemnified Liabilities to the extent such
Indemnified Liabilities result from the gross negligence or willful misconduct
of such Indemnitee. The agreements in this SECTION 9.5 shall survive repayment
of the Loans and all other amounts payable hereunder.
9.6. SUCCESSORS AND ASSIGNS; PARTICIPATIONS AND ASSIGNMENTS. (a) This
Agreement shall be binding upon and inure to the benefit of the Borrower, the
Lenders, the Agents, all future holders of the Loans and their respective
successors and assigns, except that the Borrower may not assign or transfer any
of its rights or obligations under this Agreement without the prior written
consent of each Lender.
(b) Any Lender may, without the consent of the Borrower or the
Administrative Agent, in accordance with applicable law, at any time sell to one
or more banks, financial institutions or other entities (each, a "PARTICIPANT")
participating interests in any Loan owing to such Lender, any Commitment of such
Lender or any other interest of such Lender hereunder and under the other Loan
Documents. In the event of any such sale by a Lender of a participating interest
to a Participant, such Lender's obligations under this Agreement to the other
parties to this Agreement shall remain unchanged, such Lender shall remain
solely responsible for the performance thereof, such Lender shall remain the
holder of any such Loan for all purposes under this Agreement and the other Loan
Documents, and the Borrower and the Administrative Agent shall continue to deal
solely and directly with such Lender in connection with such Lender's rights and
obligations under this Agreement and the other Loan Documents.
56
52
In no event shall any Participant under any such participation have any right to
approve any amendment or waiver of any provision of any Loan Document, or any
consent to any departure by the Borrower therefrom, except to the extent that
such amendment, waiver or consent would reduce the principal of, or interest on,
the Loans or any fees payable hereunder, or postpone the date of the final
maturity of the Loans, in each case to the extent subject to such participation.
The Borrower also agrees that each Participant shall be entitled to the benefits
of SECTIONS 2.15, 2.16 and 2.17 with respect to its participation in the
Commitments and the Loans outstanding from time to time as if it were a Lender;
PROVIDED, that in the case of SECTION 2.16, such Participant shall have complied
with the requirements of said Section and; PROVIDED FURTHER, that no Participant
shall be entitled to receive any greater amount pursuant to any such Section
than the transferor Lender would have been entitled to receive in respect of the
amount of the participation transferred by such transferor Lender to such
Participant had no such transfer occurred.
(c) Any Lender (an "ASSIGNOR") may, in accordance with applicable law, at
any time and from time to time assign to any Lender, any affiliate of any Lender
or any Approved Fund or, with the consent of the Borrower and the Administrative
Agent (which, in each case, shall not be unreasonably withheld or delayed) to an
additional bank, financial institution or other entity (an "ASSIGNEE") all or
any part of its rights and obligations under this Agreement pursuant to an
Assignment and Acceptance executed by such Assignee, such Assignor and any other
Person whose consent is required pursuant to this paragraph and delivered to the
Administrative Agent for its acceptance and recording in the Register; PROVIDED,
that no such assignment to an Assignee (other than any Lender, any affiliate of
any Lender or any Approved Fund) shall be in an aggregate principal amount of
less than $10,000,000 (other than in the case of an assignment of all of a
Lender's interests under this Agreement), unless otherwise agreed by the
Borrower and the Administrative Agent and; PROVIDED FURTHER, that each Lender
must retain a Commitment of not less than $10,000,000 (if it retains any
Commitment) after giving effect to any assignment. For purposes of the proviso
contained in the preceding sentence, the amount described therein shall be
aggregated in respect of each Lender and its related Approved Funds, if any.
Upon such execution, delivery, acceptance and recording, from and after the
effective date determined pursuant to such Assignment and Acceptance, (x) 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
with a Commitment and/or Loans as set forth therein, and (y) the Assignor
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 of an Assignor's rights and obligations
under this Agreement, such Assignor shall cease to be a party hereto).
Notwithstanding any provision of this SECTION 9.6, the consent of the Borrower
shall not be required for any assignment that occurs when an Event of Default
pursuant to SECTION 7(f) shall have occurred and be continuing with respect to
the Borrower.
(d) The Administrative Agent shall, on behalf of the Borrower, maintain at
its address referred to in SECTION 9.2 a copy of each Assignment and Acceptance
delivered to it and a register (the "REGISTER") for the recordation of the names
and addresses of the Lenders and the Commitment of, and the principal amount of
the Loans owing to, each Lender from time to time. The entries in the Register
shall be conclusive, in the absence of manifest error, and the Borrower, the
Administrative Agent and the Lenders shall treat each Person whose name is
57
53
recorded in the Register as the owner of the Loans and any Notes evidencing the
Loans recorded therein for all purposes of this Agreement. Any assignment of any
Loan, whether or not evidenced by a Note, shall be effective only upon
appropriate entries with respect thereto being made in the Register (and each
Note shall expressly so provide). Any assignment or transfer of all or part of a
Loan evidenced by a Note shall be registered on the Register only upon surrender
for registration of assignment or transfer of the Note evidencing such Loan,
accompanied by a duly executed Assignment and Acceptance, and thereupon one or
more new Notes shall be issued to the designated Assignee.
(e) Upon its receipt of an Assignment and Acceptance executed by an
Assignor, an Assignee and any other Person whose consent is required by SECTION
9.6(c), together with payment to the Administrative Agent of a registration and
processing fee of $3,500, the Administrative Agent shall (i) promptly accept
such Assignment and Acceptance and (ii) record the information contained therein
in the Register on the effective date determined pursuant thereto.
(f) The Borrower authorizes each Lender to disclose to any Participant or
Assignee (each, a "TRANSFEREE") and any prospective Transferee any and all
financial information in such Lender's possession concerning the Borrower and
its Affiliates which has been delivered to such Lender by or on behalf of the
Borrower pursuant to this Agreement or which has been delivered to such Lender
by or on behalf of the Borrower in connection with such Lender's credit
evaluation of the Borrower and its Affiliates prior to becoming a party to this
Agreement, so long as such Transferee is informed of the confidentiality
provisions of SECTION 9.14 and agrees that by its acceptance of such information
it shall be deemed to be bound thereby.
(g) Anything herein to the contrary notwithstanding, any Lender (a
"GRANTING LENDER") may grant to a special purpose funding vehicle that is
managed or administered by such Granting Lender (an "SPC"), identified as such
in writing from time to time by such Granting Lender to the Administrative Agent
and the Borrower, the option to provide to the Borrower all or any part of any
Loan that such Granting Lender otherwise would be obligated to make to the
Borrower pursuant to SECTION 2.1 and, in such event, such SPC shall have all
rights and benefits of a Lender to the extent of the Loan so provided by it;
PROVIDED, that (i) nothing herein shall constitute a commitment or an assignment
or assumption of any portion of such Granting Lender's Commitment to or by any
SPC to make any Loan and (ii) if an SPC elects not to exercise such option to
make a Loan or otherwise fails to provide all or any part thereof, such Granting
Lender shall remain obligated to make such Loan pursuant to the terms hereof.
The making of a Loan by an SPC hereunder shall be deemed to constitute a
utilization of the Commitment of the Granting Lender to the same extent, and as
if, such Loan were made by the Granting Lender. Each party hereto hereby agrees
that no SPC shall be liable for any indemnity or similar payment obligation
under this Agreement (all liability for which shall remain with the related
Granting Lender). In furtherance of the foregoing, each party hereto hereby
agrees (which agreement shall survive the termination of this Agreement) that,
prior to the date that is one year and one day after the payment in full of all
outstanding senior indebtedness of any SPC, it will not institute against, or
join any other person in instituting against, such SPC any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings or similar
proceedings under the laws of the United States or any State thereof. In
addition, notwithstanding anything to the contrary contained in this SECTION
9.6, any SPC may (i) with
58
54
notice to, but without the prior written consent of, the Borrower or the
Administrative Agent and without paying any processing fee therefor, assign all
or a portion of its interests in any Loans to its Granting Lender and (ii)
disclose (subject to an agreement by the recipient to maintain the
confidentiality thereof consistent with the requirements of SECTION 9.6(f)) any
non-public information relating to its Loans to any rating agency, commercial
paper dealer or provider of a surety, guarantee or credit or liquidity
enhancement to such SPC.
(h) For avoidance of doubt, the parties to this Agreement acknowledge that
the provisions of this SECTION 9.6 concerning assignments of Loans and Notes
relate only to absolute assignments and that such provisions do not prohibit
assignments creating security interests, including any pledge or assignment by a
Lender of any Loan or Note to any Federal Reserve Bank in accordance with
applicable law.
9.7. ADJUSTMENTS; SET-OFF. (a) Except to the extent that this Agreement
expressly provides for payments to be allocated to a particular Lender, if any
Lender (a "BENEFITTED LENDER") shall receive any payment of all or part of the
Obligations owing to it, or receive any collateral in respect thereof (whether
voluntarily or involuntarily, by set-off, pursuant to events or proceedings of
the nature referred to in SECTION 7(f), or otherwise), in a greater proportion
than any such payment to or collateral received by any other Lender, if any, in
respect of the Obligations owing to such other Lender, such Benefitted Lender
shall purchase for cash from the other Lenders a participating interest in such
portion of the Obligations owing to each such other Lender, or shall provide
such other Lenders with the benefits of any such collateral, as shall be
necessary to cause such Benefitted Lender to share the excess payment or
benefits of such collateral ratably with each of the Lenders; PROVIDED, HOWEVER,
that if all or any portion of such excess payment or benefits is thereafter
recovered from such Benefitted Lender, such purchase shall be rescinded, and the
purchase price and benefits returned, to the extent of such recovery, but
without interest.
(b) In addition to any rights and remedies of the Lenders provided by law,
each Lender shall have the right, without prior notice to the Borrower, any such
notice being expressly waived by the Borrower to the extent permitted by
applicable law, upon any amount becoming past due and payable by the Borrower
hereunder (whether at the stated maturity, by acceleration or otherwise), to set
off and appropriate and apply against such amount any and all deposits (general
or special, time or demand, provisional or final), in any currency, and any
other credits, indebtedness or claims, in any currency, in each case whether
direct or indirect, absolute or contingent, matured or unmatured, at any time
held or owing by such Lender or any branch or agency thereof to or for the
credit or the account of the Borrower, as the case may be. Each Lender agrees
promptly to notify the Borrower and the Administrative Agent after any such
setoff and application made by such Lender; PROVIDED, that the failure to give
such notice shall not affect the validity of such setoff and application.
9.8. COUNTERPARTS. This Agreement may be executed by one or more of the
parties to this Agreement on any number of separate counterparts, and all of
said counterparts taken together shall be deemed to constitute one and the same
instrument. Delivery of an executed signature page of this Agreement by
facsimile transmission shall be effective as delivery of a manually executed
counterpart hereof. A set of the copies of this Agreement signed by all the
parties shall be lodged with the Borrower and the Administrative Agent.
59
55
9.9. SEVERABILITY. Any provision of this Agreement that is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.
9.10. INTEGRATION. This Agreement and the other Loan Documents
represent the entire agreement of the Borrower, the Administrative Agent and the
Lenders with respect to the subject matter hereof and thereof, and there are no
promises, undertakings, representations or warranties by the Administrative
Agent or any Lender relative to subject matter hereof or thereof not expressly
set forth or referred to herein or in the other Loan Documents.
9.11. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
9.12. SUBMISSION TO JURISDICTION; WAIVERS. Each party to this
Agreement hereby irrevocably and unconditionally:
(a) submits for itself and its property in any legal action or
proceeding relating to this Agreement and the other Loan Documents to which
it is a party, or for recognition and enforcement of any judgment in
respect thereof, to the non-exclusive general jurisdiction of the courts of
the State of New York, the courts of the United States for the Southern
District of New York, and appellate courts from any thereof;
(b) consents that any such action or proceeding may be brought in such
courts and waives any objection that it may now or hereafter have to the
venue of any such action or proceeding in any such court or that such
action or proceeding was brought in an inconvenient court and agrees not to
plead or claim the same;
(c) agrees that service of process in any such action or proceeding
may be effected by mailing a copy thereof by registered or certified mail
(or any substantially similar form of mail), postage prepaid, to its
address set forth in SECTION 9.2 or at such other address of which the
Administrative Agent shall have been notified pursuant thereto;
(d) agrees that nothing herein shall affect the right to effect
service of process in any other manner permitted by law or shall limit the
right to ▇▇▇ in any other jurisdiction; and
(e) waives, to the maximum extent not prohibited by law, any right it
may have to claim or recover in any legal action or proceeding referred to
in this Section any special, exemplary, punitive or consequential damages.
9.13. ACKNOWLEDGEMENTS. The Borrower hereby acknowledges that:
60
56
(a) it has been advised by counsel in the negotiation, execution and
delivery of this Agreement and the other Loan Documents;
(b) neither the Agents nor any Lender has any fiduciary relationship
with or duty to the Borrower arising out of or in connection with this
Agreement or any of the other Loan Documents, and the relationship between
the Agents and Lenders, on the one hand, and the Borrower, on the other
hand, in connection herewith or therewith is solely that of debtor and
creditor; and
(c) no joint venture is created hereby or by the other Loan Documents
or otherwise exists by virtue of the transactions contemplated hereby among
the Lenders or among the Borrower and the Lenders.
9.14. CONFIDENTIALITY. Each of the Agents and each Lender agrees to
keep confidential all non-public information provided to it by the Borrower
pursuant to this Agreement that is designated by the Borrower as confidential;
PROVIDED, that nothing herein shall prevent any Agent or any Lender from
disclosing any such information, in each case in clause (a), (b) and (c) below
only to the extent necessary or required to persons having responsibility for
matters related to this Credit Agreement on a "need to know" basis (a) to any
Agent, any other Lender, any affiliate of any Lender or any Approved Fund, (b)
to any Transferee or prospective Transferee that agrees to comply with the
provisions of this Section, (c) to its employees, directors, agents, attorneys,
accountants and other professional advisors or those of any of its affiliates,
(d) upon the request or demand of any Governmental Authority, (e) in response to
any order of any court or other Governmental Authority or as may otherwise be
required pursuant to any Requirement of Law, (f) if requested or required to do
so in connection with any litigation or similar proceeding to which such Lender
is a party, (g) that has been publicly disclosed not as a result of violation of
this SECTION 9.14, (h) to the National Association of Insurance Commissioners or
any similar organization or any nationally recognized rating agency that
requires access to information about a Lender's investment portfolio in
connection with ratings issued with respect to such Lender, or (i) in connection
with the exercise of any remedy hereunder or under any other Loan Document.
9.15. WAIVERS OF JURY TRIAL. THE BORROWER, THE AGENTS AND THE LENDERS
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION
OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY
COUNTERCLAIM THEREIN.
[Remainder of the page left blank intentionally; Signature pages to follow.]
61
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered by their proper and duly authorized officers as of
the day and year first above written.
HOMESIDE LENDING, INC.
By: /s/
------------------------------------
Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Senior Vice President
62
THE CHASE MANHATTAN BANK, as
Administrative Agent and as a Lender
By: /s/
------------------------------------
Name: ▇▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Title: Managing Director
63
BANK OF AMERICA N.A., as a Syndication
Agent and as a Lender
By: /s/
------------------------------------
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Title: Principal
64
DEUTSCHE BANK AG, NEW YORK BRANCH, as a
Syndication Agent and as a Lender
By: /s/
------------------------------------
Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇
Title:
By: /s/
------------------------------------
Name: ▇▇▇▇ ▇▇▇▇▇
Title: Vice President
65
BANK ONE, NA
(Main Office Chicago),
as a Managing Agent and as a Lender
By: /s/
------------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Title: S.V.P.
66
CITIBANK, N.A.,
as a Managing Agent and as a Lender
By: /s/
------------------------------------
Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: GRB - European Banks Group
67
FIRST UNION NATIONAL BANK,
as a Managing Agent and as a Lender
By: /s/
------------------------------------
Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Director
68
THE BANK OF NEW YORK,
as a Co-Agent and as a Lender,
By: /s/
------------------------------------
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Title: Vice President
69
▇▇▇▇▇▇▇ BANK PNC,
as a Co-Agent and as a Lender,
By: /s/
------------------------------------
Name: ▇. ▇▇▇▇▇▇▇▇
Title: Associate Director
70
BNP PARIBAS,
as a Co-Agent and as a Lender,
By: /s/
------------------------------------
Name: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Title: Director
/s/ French P. Blue
V.P.
71
LLOYDS TSB BANK PLC,
as a Co-Agent and as a Lender,
By: /s/
------------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Title: Director, Financial
Institutions, U.S.A.
By: /s/
------------------------------------
Name: ▇▇▇ ▇▇▇▇▇▇▇
Title: Vice President, Acquisition
Finance
72
MELLON BANK, N.A.
as a Co-Agent and as a Lender,
By: /s/
------------------------------------
Name: ▇▇▇▇▇ ▇. ▇▇▇▇
Title: Assistant Vice President
73
UBS AG, STAMFORD BRANCH,
as a Co-Agent and as a Lender,
By: /s/
------------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Title: Director, Banking Products
Services, USA
/s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Director, Banking Products
Services, US
74
WESTDEUTSCHE LANDESBANK GIROZENTRALE,
as a Co-Agent and as a Lender,
By: /s/
------------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Associate Director
By: /s/
------------------------------------
Name: ▇▇▇▇▇▇▇ ▇. Law
Title: Director
75
▇▇▇▇▇▇ GUARANTY TRUST COMPANY OF
NEW YORK,
as a Lender,
By: /s/
------------------------------------
Name: ▇▇▇▇▇ ▇. Dell'Aquila
Title: Vice President
76
CREDIT LYONNAIS, NEW YORK BRANCH,
as a Lender,
By: /s/
------------------------------------
Name: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
Title: Vice President
77
CREDIT SUISSE FIRST BOSTON,
as a Lender,
By: /s/
------------------------------------
Name: ▇▇▇ ▇▇▇▇▇
Title: Director
By: /s/
------------------------------------
Name: ▇▇▇▇▇ ▇. ▇▇▇
Title: Assistant Vice President
78
BANCA MONTE DEI PASCHI DI SIENA SPA,
as a Lender,
By: /s/
------------------------------------
Name: Giulio Natalicchi
Title: Senior Vice President &
General Manager
By: /s/
------------------------------------
Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Vice President
79
FLEET NATIONAL BANK,
as a Lender,
By: /s/
------------------------------------
Name: ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇
Title: Director
80
▇▇▇▇▇▇ COMMERCIAL PAPER INC.
as a Lender,
By: /s/
------------------------------------
Name: ▇▇▇▇ ▇▇▇▇▇▇▇
Title:
▇▇
▇▇▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇, N.A.
as a Lender,
By: /s/
------------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Title:
82
FIRST TRUST SAVINGS BANK,
as a Lender,
By: /s/
------------------------------------
Name: ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇▇
Title: Vice President
83
SCHEDULE 1.1
LENDER NAMES, ADDRESSES AND COMMITMENTS
-----------------------------------------------------------------------------------------------
Name/Address Revolving Swingline
Commitment Commitment
-----------------------------------------------------------------------------------------------
The Chase Manhattan Bank $130,000,000 $75,000,000
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇ ▇▇▇▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
-----------------------------------------------------------------------------------------------
Bank of America, N.A. $130,000,000 $75,000,000
Mortgage Banking Finance
▇ ▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
-----------------------------------------------------------------------------------------------
Deutsche Bank AG, New York Branch $130,000,000 $75,000,000
▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
-----------------------------------------------------------------------------------------------
BankOne, N.A. (Main Office Chicago) $92,000,000 $75,000,000
▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇ ▇▇▇▇▇▇▇]
Fax: ▇▇▇-▇▇▇-▇▇▇▇
-----------------------------------------------------------------------------------------------
Citibank, N.A. $92,000,000
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
-----------------------------------------------------------------------------------------------
First Union National Bank $92,000,000
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇-▇
▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
Attn: ▇▇▇▇▇ ▇. ▇▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
-----------------------------------------------------------------------------------------------
The Bank of New York $81,000,000
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
-----------------------------------------------------------------------------------------------
84
80
-----------------------------------------------------------------------------------------------
Attn: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
-----------------------------------------------------------------------------------------------
BNP Paribas $81,000,000
▇▇▇ ▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
-----------------------------------------------------------------------------------------------
Lloyds TSB Bank plc $81,000,000
▇▇▇ ▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
-----------------------------------------------------------------------------------------------
Barclays Bank PNC $81,000,000
▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇ ▇▇▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
-----------------------------------------------------------------------------------------------
Mellon Bank, N.A. $81,000,000
▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
Attn: ▇▇▇▇ ▇▇▇▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
-----------------------------------------------------------------------------------------------
UBS AG, Stamford Branch $81,000,000
▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇ ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇ ▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
-----------------------------------------------------------------------------------------------
Westdeutsche Landesbank Girozentrale $81,000,000
▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
-----------------------------------------------------------------------------------------------
▇▇▇▇▇▇ Guaranty Trust Company of New York $45,000,000
▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇ ▇▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
-----------------------------------------------------------------------------------------------
Credit Lyonnais, New York Branch $45,000,000
-----------------------------------------------------------------------------------------------
85
81
-----------------------------------------------------------------------------------------------
▇▇▇▇ ▇▇▇▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇.▇. ▇▇▇▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
-----------------------------------------------------------------------------------------------
Credit Suisse First Boston $45,000,000
▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
Attn: ▇▇▇ ▇▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
-----------------------------------------------------------------------------------------------
Fleet National Bank $45,000,000
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, Mail Stop 01-32-04
▇.▇. ▇▇▇ ▇▇▇▇
▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
Attn: ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
-----------------------------------------------------------------------------------------------
▇▇▇▇▇▇ Commercial Paper Inc. $25,000,000
▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇ ▇▇▇▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
-----------------------------------------------------------------------------------------------
Banca Monte Dei Paschi di Siena, SpA $25,000,000
▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
Attn: ▇▇▇▇ ▇▇▇▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
-----------------------------------------------------------------------------------------------
SunTrust Bank, Central Florida, N.A. $25,000,000
▇▇▇ ▇▇. ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇ ▇▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
-----------------------------------------------------------------------------------------------
First Trust Savings Bank $12,000,000
▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇, P.A. 19111
Attn: ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
-----------------------------------------------------------------------------------------------
86
EXHIBIT A
FORM OF CLOSING CERTIFICATE
Pursuant to SECTION 4.1(d) of the Credit Agreement, dated as of October 16,
2000 (as amended, supplemented or otherwise modified from time to time, the
"Credit Agreement"; terms defined therein being used herein as therein defined),
among HomeSide Lending, Inc., as Borrower, the Lenders parties thereto, Bank of
America, N.A., Deutsche Bank AG, New York Branch and National Australia Bank
Limited, as Syndication Agents, and The Chase Manhattan Bank, as Administrative
Agent, the undersigned, as [title of Responsible Officer] of [Name of Loan
Party] (the "Loan Party"), hereby certifies that:
1. Attached hereto as Annex I is a true and complete copy of the
[resolutions] [unanimous written consent] duly adopted by the Board of Directors
of the Loan Party effective as of [date] authorizing the execution, delivery and
performance of the transactions contemplated under the Credit Agreement; such
[resolutions] [unanimous written consent] have [has] not in any way been
amended, modified, revoked or rescinded and [have] [has] been in full force and
effect since [their] [its] adoption to and including the date hereof and [are]
[is] now in full force and effect; and such [resolutions] [unanimous written
consent] [are] [is] the only corporate [proceedings] [proceeding] of the Loan
Party now in force relating to or affecting the matters referred to therein;
2. Attached hereto as Annex II is a true and complete copy of the By-laws
of the Loan Party as in full force and effect as of the date hereof; and such
By-laws have not in any way been amended, modified, revoked or rescinded and
have been in full force and effect since their adoption;
3. Attached hereto as Annex III is a true and complete copy of the
[Certificate] [Articles] of Incorporation of the Loan Party as in full force and
effect as of the date hereof;
4. Immediately prior to and immediately after the making of the Loans
requested to be made on the date hereof and the application of the proceeds
thereof, no Default or Event of Default will have occurred and be continuing;
5. The representations and warranties of the Loan Party set forth in any
Loan Document to which it is a party or which are contained in any certificate,
document or financial or other statement furnished pursuant to the Credit
Agreement are true and correct on and as of the date hereof with the same effect
as if made on the date hereof;
6. The following persons are the duly elected and qualified officers of
the Loan Party holding the offices indicated next to their respective names
below as of the date hereof; the signatures appearing opposite their respective
names below are the true and genuine signatures of such officers; and each of
such officers is an authorized signatory of the Loan Party and is duly
authorized to execute and deliver on behalf of the Loan Party any and all notes,
notices, documents, statements and papers under and relating to the Loan
Documents to which it is a party, including, without limitation, promissory
notes, certificates and other agreements, and otherwise to act as an authorized
signatory of the Loan Party under the Loan Documents to which it is a party and
all other documents to be executed in connection therewith for all purposes:
Name Office Signature
---- ------ ---------
87
2
IN WITNESS WHEREOF, the undersigned has hereunto set his hand and affixed
the corporate seal of the Loan Party.
-----------------------------------
Secretary
Dated: October [__], 2000 Corporate Seal:
I, _____________________, [Title of Responsible Officer] of the Loan Party,
hereby certify that _____________, whose genuine signature appears above, is, as
of the date hereof, the duly elected, qualified and acting Secretary of the Loan
Party.
-----------------------------------
[Title of Responsible Officer]
88
EXHIBIT B
FORM OF
ASSIGNMENT AND ACCEPTANCE
Reference is made to the Credit Agreement, dated as of October 16, 2000 (as
amended, supplemented or otherwise modified from time to time, the "Credit
Agreement"), among HOMESIDE LENDING, INC., a Florida corporation, as Borrower
(the "Borrower"), the several banks and other financial institutions from time
to time parties to the Credit Agreement (collectively, the "Lenders"), Bank of
America, N.A., Deutsche Bank AG, New York Branch and National Australia Bank
Limited, as Syndication Agents, Chase Securities, Inc., as lead arranger and
book manager (in such capacity, the "Arranger"), and THE CHASE MANHATTAN BANK,
as administrative agent (in such capacity, the "Administrative Agent"). Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.
The Assignor identified on Schedule l hereto (the "Assignor") and the
Assignee identified on Schedule l hereto (the "Assignee") agree as follows:
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 (as defined below), the interest described in Schedule 1 hereto
(the "Assigned Interest") in and to the Assignor's rights and obligations under
the Credit Agreement in a principal amount for the Assigned Interest as set
forth on Schedule 1 hereto.
2. The Assignor (a) makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations
made in or in connection with the Credit Agreement, any other Loan Document or
any other instrument or document furnished pursuant thereto or with respect to
the execution, legality, validity, enforceability, genuineness, sufficiency or
value of the Credit Agreement, any other Loan Document or any other instrument
or document furnished pursuant thereto, other than that the Assignor has not
created any adverse claim upon the interest being assigned by it hereunder and
that such interest is free and clear of any such adverse claim; (b) makes no
representation or warranty and assumes no responsibility with respect to the
financial condition of the Borrower, any of its Subsidiaries or any other
obligor or the performance or observance by the Borrower, any of its
Subsidiaries or any other obligor of any of their respective obligations under
the Credit Agreement or any other Loan Document or any other instrument or
document furnished pursuant hereto or thereto; and (c) attaches any Notes held
by it evidencing the Assigned Interest and (i) requests that the Administrative
Agent, upon request by the Assignee, exchange the attached Notes for a new Note
or Notes payable to the Assignee and (ii) if the Assignor has retained any
interest under the Credit Agreement requests that the Administrative Agent
exchange the attached Notes for a new Note or Notes payable to the Assignor, in
each case in amounts which reflect the assignment being made hereby (and after
giving effect to any other assignments which have become effective on the
Effective Date).
89
2
3. The Assignee (a) represents and warrants that it is legally authorized
to enter into this Assignment and Acceptance; (b) confirms that it has received
a copy of the Credit Agreement, together with copies of the financial statements
referred to in or delivered pursuant to SECTION 3.1 or 5.1 thereof and such
other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into this Assignment and Acceptance; (c)
agrees that it will, independently and without reliance upon the Assignor, any
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 credit decisions in
taking or not taking action under the Credit Agreement, the other Loan Documents
or any other instrument or document furnished pursuant hereto or thereto; (d)
appoints and authorizes the Administrative Agent to take such action as agent on
its behalf and to exercise such powers and discretion under the Credit
Agreement, the other Loan Documents and any other instrument or document
furnished pursuant thereto as are delegated to the Administrative Agent by the
terms thereof, together with such powers as are incidental thereto; and (e)
agrees that it will be bound by the provisions of the Credit Agreement and will
perform in accordance with its terms all the obligations which by the terms of
the Credit Agreement are required to be performed by it as a Lender including,
if it is organized under the laws of a jurisdiction outside the United States,
its obligation pursuant to SECTION 2.16(d) of the Credit Agreement.
4. The effective date of this Assignment and Acceptance shall be the
Effective Date of Assignment described in Schedule 1 hereto (the "Effective
Date"). Following the execution of this Assignment and Acceptance, it will be
delivered to the Administrative Agent for acceptance by it and recording by the
Administrative Agent pursuant to the Credit Agreement, effective as of the
Effective Date (which shall not, unless otherwise agreed to by the
Administrative Agent, be earlier than five Business Days after the date of such
acceptance and recording by the Administrative Agent).
5. Upon such acceptance and recording, from and after the Effective Date,
the Administrative Agent shall make all payments in respect of the Assigned
Interest (including payments of principal, interest, fees and other amounts) to
the Assignor for amounts which have accrued to the Effective Date and to the
Assignee for amounts which have accrued subsequent to the Effective Date. The
Assignor and the Assignee shall make all appropriate adjustments in payments by
the Administrative Agent for periods prior to the Effective Date or with respect
to the making of this assignment directly between themselves.
6. From and after the Effective Date, (a) the Assignee shall be a party
to the Credit Agreement and, to the extent provided in this Assignment and
Acceptance, have (in addition to such rights and obligations theretofore held by
it) the rights and obligations of a Lender thereunder and under the other Loan
Documents and shall be bound by the provisions thereof and (b) the Assignor
shall, to the extent provided in this Assignment and Acceptance, relinquish its
rights and be released from its obligations under the Credit Agreement (except
under SECTIONS 2.15, 2.16, 5.8(c) and 9.5 of the Credit Agreement for the period
prior to the Effective Date).
7. This Assignment and Acceptance shall be governed by and construed in
accordance with the laws of the State of New York.
90
3
IN WITNESS WHEREOF, the parties hereto have caused this Assignment and
Acceptance to be executed as of the date first above written by their respective
duly authorized officers on Schedule 1 hereto.
Schedule 1
to Assignment and Acceptance
Name of Assignor:
-------------------------
Name of Assignee:
-------------------------
Effective Date of Assignment:
--------------------
Principal
Amount Assigned Commitment Percentage Assigned(1)
--------------- ---------------------------------
$___________ __.________%
[Name of Assignee] [Name of Assignee]
By: By:
------------------------------- -------------------------------
Title: Title:
[Consented to and] Accepted: Consented To:
THE CHASE MANHATTAN BANK, as HOMSIDE LENDING, INC.(2)
Administrative Agent
By: By:
------------------------------- -------------------------------
Title: Title:
-----------------------
(1) Calculate the Commitment Percentage that is assigned to at least 15 decimal
places and show as a percentage of the aggregate commitments of all
Lenders.
(2) The Borrower's consent may not be required. Section 9.6 of the Credit
Agreement provides that the consent of the Borrower is required unless the
assignee already is a Lender under the Credit Agreement or is an affiliate
of a Lender or an Approved Fund or there is a Section 7(f) Event Default.
91
EXHIBIT D-1
REVOLVING NOTE
$_______ New York, New York
_________ __, 200_
FOR VALUE RECEIVED, the undersigned, HOMESIDE LENDING, INC., a Florida
corporation (the "BORROWER"), hereby unconditionally promises to pay to the
order of __________ (the "LENDER") at the office of The Chase Manhattan Bank,
located at ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, in lawful money of the
United States of America and in immediately available funds, on the Maturity
Date the principal amount of (a) _______ DOLLARS ($___), or, if less, (b) the
aggregate unpaid principal amount of all Revolving Loans made by the Lender to
the Borrower pursuant to SECTION 2.1 of the Credit Agreement, as hereinafter
defined. The Borrower further agrees to pay interest in like money at such
office on the unpaid principal amount hereof from time to time outstanding at
the rates and on the dates specified in SECTION 2.11 of such Credit Agreement.
The holder of this Note is authorized to endorse on the schedule annexed
hereto and made a part hereof or on a continuation thereof which shall be
attached hereto and made a part hereof the date, Type and amount of each
Revolving Loan made pursuant to the Credit Agreement and the date and amount of
each payment or prepayment of principal thereof, each continuation thereof, each
conversion of all or a portion thereof to another Type and, in the case of
Eurodollar Loans, the length of each Interest Period information endorsed. The
failure to make any such endorsement shall not affect the obligations of the
Borrower in respect of such Revolving Loan.
This Note (a) is one of the Notes referred to in the Credit Agreement dated
as of October [__], 2000 (as amended, supplemented or otherwise modified from
time to time, the "CREDIT AGREEMENT"), among the Borrower, the Lender, the other
banks and financial institutions or entities from time to time parties thereto,
[Insert Names and Titles of Other Agents], Chase Securities, Inc., as Arranger,
and The Chase Manhattan Bank, as Administrative Agent, (b) is subject to the
provisions of the Credit Agreement and (c) is subject to optional and mandatory
prepayment in whole or in part as provided in the Credit Agreement.
Upon the occurrence of anyone or more of the Events of Default, all amounts
then remaining unpaid on this Note shall become, or may be declared to be,
immediately due and payable, all as provided in the Credit Agreement.
All parties now and hereafter liable with respect to this Note, whether
maker, principal, surety, guarantor, endorser or otherwise, hereby waive
presentment, demand, protest and all other notices of any kind.
Unless otherwise defined herein, terms defined in the Credit Agreement and
used herein shall have the meanings given to them in the Credit Agreement.
92
THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK.
HOMESIDE LENDING, INC.
By:
-------------------------------
Title:
93
Schedule A
TO REVOLVING NOTE
LOANS, CONVERSIONS AND REPAYMENTS OF ABR LOANS
------------------------------------------------------------------------------------------------------------------------------------
Amount Amount of ABR Loans Unpaid
Converted to Amount of Principal of ABR Converted to Eurodollar Principal Balance of Notation Made
Date Amount of ABR Loans ABR Loans Loans Repaid Loans ABR Loans By
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
Schedule B
to Revolving Note
94
LOANS, CONTINUATIONS, CONVERSIONS AND REPAYMENTS OF EURODOLLAR LOANS
------------------------------------------------------------------------------------------------------------------------------------
Date Amount of Amount Interest Period and Amount of Principal of Amount of Eurodollar Unpaid Principal
Eurodollar Converted to Eurodollar Rate with Eurodollar Loans Loans Converted to Balance of Notation
Loans Eurodollar Loans Respect Thereto Repaid ABR Loans Eurodollar Loans Made by
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
95
EXHIBIT D-2
FORM OF
COMPETITIVE LOAN NOTE
$_______ New York, New York
_________ __, 200_
FOR VALUE RECEIVED, the undersigned, HOMESIDE LENDING, INC., a Florida
corporation (the "Borrower"), hereby unconditionally promises to pay to the
order of _________________ (the "Lender") at the office of The Chase Manhattan
Bank located at ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, in lawful money of
the United States of America and in immediately available funds, the principal
amount of (a) _____________ _______ DOLLARS ($_____________), or, if less, (b)
the aggregate unpaid principal amount of each Competitive Loan which is made by
the Lender to the Borrower pursuant to SECTION 2.7 of the Credit Agreement, as
hereinafter defined. The principal amount of each Competitive Loan evidenced
hereby shall be payable on the Competitive Loan maturity date therefor set forth
on the schedule attached hereto and made a part hereof or on a continuation of
such schedule which shall be attached hereto and made a part hereof (the
"Grid"). The Borrower further agrees to pay interest in like money at such
office on the unpaid principal amount of each Competitive Loan evidenced hereby,
at the rate per annum set forth in respect of such Competitive Loan on the Grid,
calculated on the basis of a year of 360 days and actual days elapsed from the
Borrowing Date of such Competitive Loan until the due date thereof (whether at
the stated maturity, by acceleration or otherwise) and thereafter at the rates
determined in accordance with SECTION 2.11(d) of the Credit Agreement. Interest
on each Competitive Loan evidenced hereby shall be payable on the date or dates
set forth in respect of such Competitive Loan on the Grid. Competitive Loans
evidenced by this Note may not be prepaid.
The holder of this Note is authorized to endorse on the Grid the Borrowing
Date, amount, interest rate, Interest Payment Dates and Competitive Loan
maturity date in respect of each Competitive Loan made pursuant to SECTION 2.7
of the Credit Agreement and each payment of principal with respect thereto. Each
such endorsement shall constitute prima facie evidence of the accuracy of the
information endorsed. The failure to make any such endorsement shall not affect
the obligations of the Borrower in respect of such Competitive Loan.
This Note is one of the Notes referred to in the Revolving Credit Agreement
dated as of October [__], 2000 (as amended, supplemented or otherwise modified
from time to time, the "Credit Agreement"), among the Borrower, the Lender, the
other banks and financial institutions or entities from time to time parties
thereto, [Insert Names and Titles of Other Agents], Chase Securities, Inc., as
Arranger, and The Chase Manhattan Bank, as Administrative Agent, and is subject
to the provisions of the Credit Agreement.
Upon the occurrence of any one or more of the Events of Default, all
amounts then remaining unpaid on this Note shall become, or may be declared to
be, immediately due and payable, all as provided in the Credit Agreement.
96
All parties now and hereafter liable with respect to this Note, whether
maker, principal, surety, guarantor, endorser or otherwise, hereby waive
presentment, demand, protest and all other notices of any kind.
Unless otherwise defined herein, terms defined in the Credit Agreement and
used herein shall have the meanings given to them in the Credit Agreement.
THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK.
HOMESIDE LENDING, INC.
By
--------------------------------
Title:
97
SCHEDULE OF COMPETITIVE LOANS
____________________, Lender
HomeSide Lending, Inc., Borrower
Credit Agreement dated October [__], 2000
====================================================================================================================================
Borrowing Date of Amount of Competitive Loan Competitive Loan
Competitive Loan Competitive Loan Interest Rate Interest Payment Date Maturity Date Payment Date Authorization
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
98
EXHIBIT D-3
FORM OF
SWINGLINE LOAN NOTE
$_______ New York, New York
_________ __, 200_
FOR VALUE RECEIVED, the undersigned, HOMESIDE LENDING, INC., a Florida
corporation (the "Borrower"), hereby unconditionally promises to pay to the
order of _____________ (the "Swingline Lender") at the office of The Chase
Manhattan Bank located at ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, in lawful
money of the United States of America and in immediately available funds, the
principal amount of (a) _____________ _______ DOLLARS ($_____________), or, if
less, (b) the aggregate unpaid principal amount of each Swingline Loan which is
made by the Swingline Lender to the Borrower pursuant to SECTION 2.3 of the
Credit Agreement, as hereinafter defined. The principal amount of each Swingline
Loan evidenced hereby shall be payable as provided in the Credit Agreement. The
Borrower further agrees to pay interest in like money at such office on the
unpaid principal amount of each Swingline Loan evidenced hereby, at the rate per
annum set forth in respect of such Swingline Loan on the schedule attached
hereto and made a part hereof or on a continuation of such schedule which shall
be attached hereto and made a part hereof (the "Grid"), calculated on the basis
of a year of 360 days and actual days elapsed from the Borrowing Date of such
Swingline Loan until the due date thereof (whether at the stated maturity, by
acceleration or otherwise) and thereafter at the rates determined in accordance
with SECTION 2.11(d) of the Credit Agreement. Interest on each Swingline Loan
evidenced hereby shall be payable on the date or dates set forth in respect of
such Swingline Loan on the Grid.
The holder of this Note is authorized to endorse on the Grid the Borrowing
Date, amount, interest rate, Interest Payment Dates and maturity date in respect
of each Swingline Loan made pursuant to SECTION 2.3 of the Credit Agreement and
each payment of principal with respect thereto. Each such endorsement shall
constitute prima facie evidence of the accuracy of the information endorsed. The
failure to make any such endorsement shall not affect the obligations of the
Borrower in respect of such Swingline Loan.
This Note is one of the Notes referred to in the Revolving Credit Agreement
dated as of October [__], 2000 (as amended, supplemented or otherwise modified
from time to time, the "Credit Agreement"), among the Borrower, the Lender, the
other banks and financial institutions or entities from time to time parties
thereto, [Insert Names and Titles of Other Agents], Chase Securities, Inc., as
Arranger, and The Chase Manhattan Bank, as Administrative Agent, and is subject
to the provisions of the Credit Agreement.
Upon the occurrence of any one or more of the Events of Default, all
amounts then remaining unpaid on this Note shall become, or may be declared to
be, immediately due and payable, all as provided in the Credit Agreement.
99
All parties now and hereafter liable with respect to this Note, whether
maker, principal, surety, guarantor, endorser or otherwise, hereby waive
presentment, demand, protest and all other notices of any kind.
Unless otherwise defined herein, terms defined in the Credit Agreement and
used herein shall have the meanings given to them in the Credit Agreement.
THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK.
HOMESIDE LENDING, INC.
By
--------------------------------
Title:
100
SCHEDULE OF SWINGLINE LOANS
_________________, Lender
HomeSide Lending, Inc., Borrower
Credit Agreement dated October [__], 2000
====================================================================================================================================
Borrowing Date of Amount of Swingline Loan Swingline Loan
Swingline Loan Swingline Loan Interest Rate Interest Payment Date Maturity Date Payment Date Authorization
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
101
EXHIBIT E
FORM OF EXEMPTION CERTIFICATE
Reference is made to the Credit Agreement, dated as of October 16, 2000 (as
amended, supplemented or otherwise modified from time to time, the "Credit
Agreement") among HOMESIDE LENDING, INC., a Florida corporation (the
"Borrower"), the several banks and other financial institutions or entities from
time to time parties thereto (the "Lenders"), Bank of America, N.A., Deutsche
Bank AG, New York Branch and National Australia Bank Limited, as Syndication
Agents, CHASE SECURITIES, INC., as lead arranger and book manager ( in such
capacity, the "Arranger") and THE CHASE MANHATTAN BANK, as administrative agent
(in such capacity, the "Administrative Agent"). Capitalized terms used herein
that are not defined herein shall have the meanings ascribed to them in the
Credit Agreement. ______________________ (the "Non-U.S. Lender") is providing
this certificate pursuant to SECTION 2.16(d) of the Credit Agreement. The
Non-U.S. Lender hereby represents and warrants that:
1. The Non-U.S. Lender is the sole record and beneficial owner of the
Loans or the obligations evidenced by the Note(s) in respect of which it is
providing this certificate.
2. The Non-U.S. Lender is not a "bank" for purposes of Section
881(c)(3)(A) of the Internal Revenue Code of 1986, as amended (the "Code"). In
this regard, the Non-U.S. Lender further represents and warrants that:
(a) the Non-U.S. Lender is not subject to regulatory or other legal
requirements as a bank in any jurisdiction; and
(b) the Non-U.S. Lender has not been treated as a bank for purposes of any
tax, securities law or other filing or submission made to any Governmental
Authority, any application made to a rating agency or qualification for any
exemption from tax, securities law or other legal requirements;
3. The Non-U.S. Lender is not a 10-percent shareholder of the Borrower
within the meaning of Section 881(c)(3)(B) of the Code; and
4. The Non-U.S. Lender is not a controlled foreign corporation receiving
interest from a related person within the meaning of Section 881(c)(3)(C) of the
Code.
IN WITNESS WHEREOF, the undersigned has duly executed this certificate.
[NAME OF NON-U.S. LENDER]
By:
-------------------------------
Name:
Title:
Date: ____________________
102
EXHIBIT F
FORM OF COMMITMENT INCREASE SUPPLEMENT
SUPPLEMENT, dated _________________, to the Credit Agreement, dated as of
October 16, 2000 (as amended, supplemented or otherwise modified from time to
time, the "Credit Agreement") among HOMESIDE LENDING, INC., a Florida
corporation (the "Borrower"), the several banks and other financial institutions
or entities from time to time parties thereto (the "Lenders"), BANK OF AMERICA,
N.A., DEUTSCHE BANK AG, NEW YORK BRANCH AND NATIONAL AUSTRALIA BANK LIMITED, as
Syndication Agents, CHASE SECURITIES, INC., as lead arranger and book manager
(in such capacity, the "Arranger"), and THE CHASE MANHATTAN BANK, as
administrative agent (in such capacity, the "Administrative Agent").
WITNESSETH:
-----------
WHEREAS, the Credit Agreement provides in Section 2.20(c) thereof that any
Lender with (when applicable) the consent of the Borrower may increase the
amount of its Commitment by executing and delivering to the Borrower and the
Administrative Agent a supplement to the Credit Agreement in substantially the
form of this Supplement; and
WHEREAS, the undersigned now desires to increase the amount of its
Commitment under the Credit Agreement;
NOW THEREFORE, the undersigned hereby agrees as follows:
1. The undersigned agrees, subject to the terms and conditions of the Credit
Agreement, that on the date this Supplement is accepted by the Borrower and
the Administrative Agent it shall have its Commitment increased by
$______________, thereby making the amount of its Commitment
$______________.
2. Terms defined in the Credit Agreement shall have their defined meanings
when used herein.
IN WITNESS WHEREOF, the undersigned has caused this Supplement to be
executed and delivered by a duly authorized officer on the date first above
written.
[INSERT NAME OF LENDER]
By________________________________
Title:
103
Accepted this _____ day of
______________, ____.
HOMESIDE LENDING, INC.
By____________________________
Title:
Accepted this ____ day of
______________, ____.
THE CHASE MANHATTAN BANK, as Administrative Agent
By____________________________
Title:
104
EXHIBIT G
FORM OF NEW LENDER SUPPLEMENT
SUPPLEMENT, dated __________ to the Credit Agreement, dated as of October
16, 2000 (as amended, supplemented or otherwise modified from time to time, the
"Credit Agreement") among HOMESIDE LENDING, INC., a Florida corporation (the
"Borrower"), the several banks and other financial institutions or entities from
time to time parties thereto (the "Lenders"), BANK OF AMERICA, N.A., DEUTSCHE
BANK AG, NEW YORK BRANCH AND NATIONAL AUSTRALIA BANK LIMITED, as Syndication
Agents, CHASE SECURITIES, INC., as lead arranger and book manager (in such
capacity, the "Arranger"), and THE CHASE MANHATTAN BANK, as administrative agent
(in such capacity, the "Administrative Agent").
WITNESSETH:
-----------
WHEREAS, the Credit Agreement provides in Section 2.20(b) thereof that any
bank, financial institution or other entity, although not originally a party
thereto, may become a party to the Credit Agreement with the consent of the
Borrower and the Administrative Agent (which consent, in the case of the
Administrative Agent, shall not be unreasonably withheld) by executing and
delivering to the Borrower and the Administrative Agent a supplement to the
Credit Agreement in substantially the form of this Supplement; and
WHEREAS, the undersigned was not an original party to the Credit Agreement
but now desires to become a party thereto;
NOW, THEREFORE, the undersigned hereby agrees as follows:
1. The undersigned agrees to be bound by the provisions of the
Credit Agreement, and agrees that it shall, on the date this Supplement is
accepted by the Borrower and the Administrative Agent, become a Lender for
all purposes of the Credit Agreement to the same extent as if originally a
party thereto, with a Commitment of $__________________.
2. The undersigned(a) represents and warrants that it is legally
authorized to enter into this Supplement; (b) confirms that it has received
a copy of the Credit Agreement, together with copies of the financial
statements delivered pursuant to Section 5.1 thereof and such other
documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into this Supplement; (c) agrees that
it has made and will, independently and without reliance upon the
Administrative 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 credit decisions in taking or not taking action under the Credit
Agreement or any instrument or document furnished pursuant hereto or
thereto; (d) appoints and authorizes the Administrative Agent to take such
action as administrative agent on its behalf and to exercise such powers
and discretion under the Credit Agreement or any instrument or document
furnished pursuant hereto or thereto as are delegated to the Administrative
Agent by the terms thereof, together with such powers as are incidental
thereto; and (e) agrees that it will be bound by the provisions of the
Credit Agreement and will perform in accordance with its terms all the
obligations which by the terms of the Credit Agreement are required to be
performed by
105
it as a Lender including, without limitation, if it is organized under the
laws of a jurisdiction outside the United States, its obligation pursuant
to Section 2.16 of the Credit Agreement.
3. The undersigned's address for notices for the purposes of the
Credit Agreement is as follows:
----------------------------
----------------------------
----------------------------
4. Terms defined in the Credit Agreement shall have their defined
meanings when used herein.
IN WITNESS WHEREOF, the undersigned has caused this Supplement to be
executed and delivered by a duly authorized officer on the date first above
written.
[INSERT NAME OF LENDER]
By________________________________
Title:
Accepted this _____ day of
______________, ____.
HOMESIDE LENDING, INC.
By____________________________
Title:
Accepted this ____ day of
______________, ____.
THE CHASE MANHATTAN BANK, as Administrative Agent
By____________________________
Title: