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AMENDED AND RESTATED SHORT TERM REVOLVING CREDIT AGREEMENT
among
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ CORPORATION,
THE GUARANTORS SIGNATORY HERETO,
THE LENDERS SIGNATORY HERETO,
BANK OF AMERICA, N.A.
as Administrative Agent,
FIRST UNION NATIONAL BANK, as Syndication Agent,
and
ABN AMRO Bank N.V., as Documentation Agent
arranged by
BANC OF AMERICA SECURITIES LLC, as Lead Arranger and Book Manager,
and
ABN AMRO BANK N.V., FIRST UNION CAPITAL MARKETS, GREENWICH NATWEST
STRUCTURED FINANCE INC.
AND TORONTO DOMINION BANK, as Arrangers
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Dated as of December 1, 1999
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TABLE OF CONTENTS
SECTION HEADING PAGE
Recitals.......................................................................1
ARTICLE I DEFINITIONS; CONSTRUCTION...........................1
Section 1.01. Certain Definitions.................................1
Section 1.02. Construction.......................................19
Section 1.03. Accounting Principles..............................20
Section 1.04. Optional Increase of the Commitments...............21
Section 1.05. Utilization of Commitments in Foreign Currencies...22
ARTICLE II THE CREDITS........................................22
Section 2.01. Revolving Credit Loans.............................22
Section 2.02. Fees; Reduction of the Committed Amounts...........23
Section 2.03. Competitive Bid Loans..............................24
Section 2.04. Maximum Aggregate Amount of Loans..................31
Section 2.05. [Intentionally Omitted]............................31
Section 2.06. [Intentionally Omitted]............................32
Section 2.07. Making of Loans....................................32
Section 2.08. Interest Rates.....................................32
Section 2.09. Conversion or Renewal of Interest Rate Options.....36
Section 2.10. Prepayments Generally..............................37
Section 2.11. Optional Prepayments; Mandatory Prepayments........37
Section 2.12. Interest Payment Dates.............................38
Section 2.13. Pro Rata Treatment.................................38
Section 2.14. Additional Compensation in Certain Circumstances...39
Section 2.15. Payments Generally; Interest on Overdue Amounts....42
Section 2.16. Taxes..............................................42
Section 2.17. Funding by Branch, Subsidiary or Affiliate.........44
Section 2.18. Extension of Revolving Credit Maturity Date........45
ARTICLE III REPRESENTATIONS AND WARRANTIES.....................46
Section 3.01. Corporate Status...................................46
Section 3.02. Corporate Power and Authorization..................47
Section 3.03. Execution and Binding Effect.......................47
Section 3.04. Governmental Approvals and Filings.................47
Section 3.05. Absence of Conflicts...............................47
Section 3.06. Audited Financial Statements.......................48
Section 3.07. Absence of Undisclosed Liabilities.................48
Section 3.08. Absence of Material Adverse Changes................48
Section 3.09. Accurate and Complete Disclosure...................48
Section 3.10. Margin Regulations.................................49
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Section 3.11. Subsidiaries.......................................49
Section 3.12. Partnerships, etc..................................49
Section 3.13. Litigation.........................................49
Section 3.14. Absence of Events of Default.......................50
Section 3.15. Absence of Other Defaults..........................50
Section 3.16. Insurance..........................................50
Section 3.17. Title to Property..................................50
Section 3.18. Intellectual Property..............................50
Section 3.19. Taxes..............................................51
Section 3.20. Employee Benefits..................................51
Section 3.21. Environmental Matters..............................52
Section 3.22. Year 2000..........................................53
ARTICLE IV CONDITIONS OF LENDING..............................53
Section 4.01. Conditions to Initial Loans........................53
Section 4.02. Conditions to All Loans............................54
ARTICLE V AFFIRMATIVE COVENANTS..............................55
Section 5.01. Basic Reporting Requirements.......................55
Section 5.02. Insurance..........................................58
Section 5.03. Payment of Taxes and Other Potential Charges and
Priority Claims ................................58
Section 5.04. Preservation of Corporate Status...................59
Section 5.05. Governmental Approvals and Filings.................59
Section 5.06. Maintenance of Properties..........................59
Section 5.07. Avoidance of Other Conflicts.......................59
Section 5.08. Financial Accounting Practices.....................60
Section 5.09. Use of Proceeds....................................60
Section 5.10. Continuation of or Change in Business..............60
Section 5.11. Consolidated Tax Return............................60
Section 5.12. Fiscal Year........................................60
Section 5.13. ERISA..............................................60
Section 5.14. Ratings............................................61
Section 5.15. Subsidiary Guaranty................................61
ARTICLE VI NEGATIVE COVENANTS.................................62
Section 6.01. Financial Covenants................................62
Section 6.02. Liens..............................................63
Section 6.03. Indebtedness.......................................64
Section 6.04. Loans, Advances and Certain Investments............65
Section 6.05. Changes in Business................................65
Section 6.06. Amendment of Certain Documents.....................65
Section 6.07. Mergers; Acquisitions..............................65
Section 6.08. ERISA Obligations..................................66
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Section 6.09. Principal Foreign Affiliates.......................66
Section 6.10. Certain Agreements.................................66
Section 6.11. Restricted Payments................................67
Section 6.12. Transactions with Affiliates.......................67
Section 6.13. Capital Expenditures...............................68
ARTICLE VII DEFAULTS...........................................68
Section 7.01. Events of Default..................................68
Section 7.02. Consequences of an Event of Default................70
ARTICLE VIII THE AGENTS.........................................71
Section 8.01. Appointment........................................71
Section 8.02. General Nature of Agents' Duties...................72
Section 8.03. Exercise of Powers.................................72
Section 8.04. Certain Provisions.................................72
Section 8.05. Administration by the Agents.......................73
Section 8.06. Lender Not Relying on Agents or Other Lenders......74
Section 8.07. Indemnification....................................74
Section 8.08. Agents in their Individual Capacities..............75
Section 8.09. Holders of Notes...................................75
Section 8.10. Successor Agents...................................75
Section 8.11. Calculations.......................................76
Section 8.12. Funding by Administrative Agent....................76
Section 8.13. Syndication Agent and Documentation Agent..........76
ARTICLE IX GUARANTY...........................................76
Section 9.01. The Guaranty.......................................76
Section 9.02. Bankruptcy.........................................77
Section 9.03. Nature of Liability................................77
Section 9.04. Independent Obligation.............................77
Section 9.05. Authorization......................................77
Section 9.06. Reliance...........................................78
Section 9.07. Subordination......................................78
Section 9.08. Waiver.............................................79
Section 9.09. Nature of Liability................................80
Section 9.10. Judgments Binding..................................80
ARTICLE X MISCELLANEOUS......................................80
Section 10.01. Holidays...........................................80
Section 10.02. Records............................................80
Section 10.03. Amendments and Waivers.............................80
Section 10.04. No Implied Waiver; Cumulative Remedies.............81
Section 10.05. Notices............................................82
Section 10.06. Expenses; Taxes; Indemnity.........................82
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Section 10.07. Severability.......................................83
Section 10.08. Prior Understandings...............................83
Section 10.09. Duration; Survival.................................83
Section 10.10. Counterparts.......................................84
Section 10.11. Limitation on Payments.............................84
Section 10.12. Set-Off............................................84
Section 10.13. Sharing of Collections.............................85
Section 10.14. Successors and Assigns; Participations;
Assignments ....................................85
Section 10.15. Governing Law; Submission to Jurisdiction;
Waiver of Jury Trial ...........................89
Section 10.16. Confidentiality....................................90
Section 10.17. Replacement of Lenders.............................90
Section 10.18. Judgment Currency..................................91
Section 10.19. Effectiveness......................................91
Section 10.20. Entire Agreement - Construction....................92
EXHIBIT A Form of Revolving Credit Note
EXHIBIT B Form of Competitive Bid Loan Quote Request
EXHIBIT C Form of Competitive Bid Loan Quote
EXHIBIT D Form of Competitive Bid Note
EXHIBIT E [Intentionally Omitted]
EXHIBIT F Form of Quarterly Compliance Certificate
EXHIBIT G Form of Transfer Supplement
EXHIBIT H Subsidiary Guaranty Agreement
EXHIBIT I Joinder to Revolving Credit Agreement
EXHIBIT J Pledge Agreement
EXHIBIT K Commitment Increase Supplement
EXHIBIT L Request for Extension of Credit
SCHEDULE 3.01 Corporate Status
SCHEDULE 3.02 Consents and Approvals
SCHEDULE 3.07 Indebtedness
SCHEDULE 3.11 Subsidiaries
SCHEDULE 3.12 Partnerships
SCHEDULE 3.21 Environmental Matters
SCHEDULE 6.02 Liens
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AMENDED AND RESTATED SHORT TERM REVOLVING CREDIT AGREEMENT
THIS AMENDED AND RESTATED AGREEMENT, dated as of December 1, 1999, by
and among ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ CORPORATION, a New York corporation (the "BORROWER"),
the guarantors party hereto from time to time (the "GUARANTORS", as defined
further below), the lenders party hereto from time to time (the "LENDERS", as
defined further below), BANK OF AMERICA, N.A., as Administrative Agent for the
Lenders hereunder, First Union National Bank, as Syndication Agent, and ABN AMRO
Bank N.V., as Documentation Agent.
RECITALS:
A. The Borrower, the Lenders and the Agents are currently party to
that certain Short Term Revolving Credit Agreement dated as of February 12, 1999
(as amended, the "PREVIOUS CREDIT AGREEMENT"). The Borrower has requested the
Lenders continue to extend credit to the Borrower. The Borrower has also
requested that certain amendments be made to the Previous Credit Agreement and,
for the sake of clarity and convenience, that the Previous Credit Agreement be
restated as so amended. This Agreement shall become effective, and shall amend
and restate the Previous Credit Agreement, on the execution of this Agreement by
the Credit Parties signatory hereto, the Administrative Agent and the Required
Lenders and the satisfaction of the conditions precedent contained in Section
10.19 hereof; and from and after the Effective Date, (i) all references made to
the Previous Credit Agreement and the Loan Documents or in any other instrument
or document shall, without more, be deemed to refer to this Amended and Restated
Revolving Short Term Revolving Credit Agreement and (ii) the Previous Credit
Agreement shall be deemed amended and restated in its entirety hereby.
B. The Lenders, upon the occurrence of the Effective Date and subject
to the terms hereof, will continue to lend monies and/or make advances,
extensions of credit or other financial accommodations to, on behalf of or for
the benefit of the Borrower pursuant hereto.
NOW, THEREFORE, in consideration of the recitals set forth above, which
by this reference are incorporated into this Agreement set forth below, and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged and subject to the terms and conditions hereof on the basis
of the representations and warranties herein set forth, the Borrower, the
Guarantors, the Agents and the Lenders hereby agree to the following:
ARTICLE I
DEFINITIONS; CONSTRUCTION
SECTION 1.01. CERTAIN DEFINITIONS. In addition to other words and
terms defined elsewhere in this Agreement, as used herein the following words
and terms shall have the following meanings, respectively, unless the context
hereof otherwise clearly requires:
"ABSOLUTE RATE" shall have the meaning set forth in Section
2.03(d)(ii)(F) hereof.
"ABSOLUTE RATE AUCTION" shall mean a solicitation of Competitive Bid
Loan Quotes setting forth Absolute Rates pursuant to Section 2.03 hereof.
"ABSOLUTE RATE LOAN" or "ABSOLUTE RATE LOANS" shall mean any or all
Competitive Bid Loans the interest rates of which are determined on the basis of
Absolute Rates pursuant to an Absolute Rate Auction.
"ADMINISTRATIVE AGENT" shall mean, initially, Bank of America, N.A., in
its capacity as Administrative Agent for the Lenders hereunder, and any
successor Administrative Agent appointed in accordance with Section 8.10 hereof.
"AFFECTED LENDER" shall have the meaning set forth in Section 2.08(e)
hereof.
"AFFILIATE" of a Person (the "SPECIFIED PERSON") shall mean (a) any
Person which directly or indirectly controls, or is controlled by, or is under
common control with, the Specified Person, and (b) any director or officer (or,
in the case of a Person which is not a corporation, any individual having
analogous powers) of the Specified Person or of a Person who is an Affiliate of
the Specified Person within the meaning of the preceding clause (a). For
purposes of the preceding sentence, "control" of a Person means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management or policies of such Person, whether through the ownership of voting
securities, by contract or otherwise.
"AGENTS" shall mean, collectively, the Administrative Agent, the
Syndication Agent and the Documentation Agent and "Agent" shall mean any of the
foregoing.
"APPLICABLE MARGIN", "FACILITY FEE" AND "UTILIZATION FEE" each means
the number of basis points designated below in the applicable column and
appropriate grid:
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LEVEL I LEVEL II LEVEL III LEVEL IV LEVEL V
DAY DAY DAY DAY DAY
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Applicable Margin for 0 bps 25.0 bps 62.5 bps 87.5 bps 137.5 bps
Base Rate Option
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Applicable Margin for 90.0 bps 110.0 bps 142.5 bps 162.5 bps 192.5 bps
CD Rate Option
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Applicable Margin for 82.5 bps 102.5 bps 135.0 bps 155.0 bps 185.0 bps
Euro Rate Option
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Facility Fee 17.5 bps 22.5 bps 27.5 bps 32.5 bps 52.5 bps
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LEVEL I LEVEL II LEVEL III LEVEL IV LEVEL V
DAY DAY DAY DAY DAY
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Utilization Fee 12.5 bps 12.5 bps 12.5 bps 12.5 bps 12.5 bps
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(bps = basis points per annum)
PROVIDED, HOWEVER, that:
(a) if on any day the Dollar Equivalent of the sum of the aggregate
principal amount of outstanding Loans under this Agreement exceeds 33% of the
Total Revolving Credit Commitment under this Agreement, an additional 0.125% per
annum (the "UTILIZATION FEE") shall be added to the Applicable Margin for such
day (and the term "Applicable Margin" shall be deemed to include the Utilization
Fee).
"ASSESSMENT RATE" shall have the meaning set forth in Section
2.08(a)(ii) hereof.
"BANK OF AMERICA" means Bank of America, N.A., a national banking
association.
"BASE RATE" shall have the meaning set forth in Section 2.08(a)(i)
hereof.
"BASE RATE AUCTION" shall mean a solicitation of Competitive Bid Loan
Quotes setting forth Base Rate Margins based on the Base Rate pursuant to
Section 2.03 hereof.
"BASE RATE LOANS" shall mean Competitive Bid Loans the interest rates
of which are determined on the basis of the Base Rate pursuant to a Base Rate
Auction.
"BASE RATE MARGIN" shall have the meaning set forth in Section
2.03(d)(ii)(E) hereof.
"BASE RATE OPTION" shall have the meaning set forth in Section
2.08(a)(i) hereof.
"BASE RATE PORTION" of any Loan or Loans shall mean at any time the
portion, including the whole, of such Loan or Loans bearing interest at such
time (i) under the Base Rate Option or (ii) in accordance with Section 2.15
hereof. If no Loan or Loans is specified, "Base Rate Portion" shall refer to the
Base Rate Portion of all Loans outstanding at such time.
"BENEFIT PLAN" shall mean any plan, agreement, arrangement or
commitment which is an employment or consulting agreement, executive
compensation plan, bonus plan, deferred compensation agreement, employee
pension, profit-sharing, savings or retirement plan, employee stock option or
stock purchase plan, retiree medical or life, group life, health, or accident
insurance or other benefit plan, agreement, arrangement or commitment,
including, without limitation, severance, or other bonus practice (including,
but not limited to, employee benefit plans, as defined in section 3(3) of
ERISA), with respect to which the Borrower, any of its Significant Subsidiaries,
or a member of their respective Controlled Group, at any relevant time
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have some liability or obligation to contribute or pay benefits and which
relates to current or former employees of the Borrower, any Significant
Subsidiary or any member of their respective Controlled Group.
"BUSINESS DAY" shall mean (a) with respect to selection of the
Euro-Rate Option, prepayment of any Euro-Rate Portion of any Revolving Credit
Loans, determining the first or last day of any Euro-Rate Funding Period, the
giving of notices or quotes in connection with a LIBOR Auction or a payment of
principal of or interest on, or the Interest Period for, a LIBOR-based Loan, a
day for dealings in deposits in Dollars by and among banks in the London
interbank market and on which commercial banks are open for domestic and
international business in Los Angeles, California and New York, New York and (b)
with respect to selection of any other interest rate Option, prepayment of any
part of any other Portion of any Revolving Credit Loans, determining the first
or last day of any other Funding Period, the giving of notices or quotes in
connection with an Absolute Rate or a payment of principal of or interest on, or
the Interest Period for, an Absolute Rate Loan and in every other context, any
day other than a Saturday, Sunday or other day on which banking institutions are
authorized or obligated to close in Los Angeles, California or New York, New
York.
"CAPITALIZED LEASE" shall mean at any time any lease which is, or is
required under GAAP to be, capitalized on the balance sheet of the lessee at
such time, and "CAPITALIZED LEASE OBLIGATION" of any Person at any time shall
mean the aggregate amount which is, or is required under GAAP to be, reported as
a liability on the balance sheet of such Person at such time as lessee under a
Capitalized Lease.
"CD RATE" shall have the meaning set forth in Section 2.08(a)(ii)
hereof.
"CD RATE FUNDING PERIOD" shall have the meaning set forth in Section
2.08(c) hereof.
"CD RATE OPTION" shall have the meaning set forth in Section
2.08(a)(ii) hereof.
"CD RATE PORTION" of any Loan or Loans shall mean at any time the
portion, including the whole, of such Loan or Loans bearing interest at any time
under the CD Rate Option or at a rate calculated by reference to the CD Rate
under Section 2.15 hereof. If no Loan or Loans is specified, "CD Rate Portion"
shall refer to the CD Rate Portion of all Loans outstanding at such time.
"CD RATE RESERVE PERCENTAGE" for any day and for any CD Rate Funding
Period shall mean the percentage (expressed as a decimal, rounded upward to the
nearest 1/100 of 1%), as determined in good faith by the Administrative Agent
(which determination shall be conclusive absent manifest error), which is in
effect on such day as prescribed by the Board of Governors of the Federal
Reserve System (or any successor) representing the maximum reserve requirement
(including without limitation supplemental, marginal and emergency reserve
requirements) for a member bank of such System in respect of nonpersonal time
deposits in Dollars in the United States having a maturity comparable to such CD
Rate Funding Period.
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"CHANGE OF CONTROL" shall mean (a) any Person or group of Persons (as
used in Sections 13 and 14 of the Securities Exchange Act of 1934, as amended
(the "EXCHANGE ACT"), and the rules and regulations thereunder) shall have
become the beneficial owner (as defined in Rules 13d-3 and 13d-5 promulgated by
the Securities and Exchange Commission (the "SEC") under the Exchange Act) of
20% or more of the Borrower's outstanding Voting Stock, unless a majority of the
Continuing Directors approves the acquisition not later than 10 days after such
acquisition or (b) a change in the board of directors of the Borrower shall have
occurred which results in a majority of directors not being Continuing
Directors.
"CLOSING DATE" shall mean the date on which the last of the conditions
set forth in Section 4.01 hereof has been satisfied in respect of the Previous
Credit Agreement.
"CODE" means the Internal Revenue Code of 1986, as amended, and any
successor statute of similar import, and regulations thereunder, in each case as
in effect from time to time. References to sections of the Code shall be
construed also to refer to any successor sections.
"COMMITMENTS" of a Lender shall mean the Revolving Credit Commitment of
such Lender.
"COMMITMENT PERCENTAGE" of a Lender at any time shall mean the
Commitment Percentage for such Lender set forth below its name on the signature
page hereof, subject to adjustment as provided in Sections 1.04 and 10.17 hereof
and subject to transfer to another Lender as provided in Section 10.14 hereof.
"COMPETITIVE BID BORROWING" shall have the meaning set forth in Section
2.03(b) hereof.
"COMPETITIVE BID EXPIRATION DATE" shall mean May 24, 2000, or such
later date as may be established as the Competitive Bid Expiration Date pursuant
to Section 2.18 hereof.
"COMPETITIVE BID LOAN" or "COMPETITIVE BID LOANS" shall mean any or all
loans provided for by Section 2.03 hereof.
"COMPETITIVE BID LOAN MATURITY DATE" shall have the meaning set forth
in Section 2.03(j) hereof.
"COMPETITIVE BID LOAN QUOTE" shall mean an offer in accordance with
Section 2.03(d) hereof by a Lender to make a Competitive Bid Loan.
"COMPETITIVE BID LOAN QUOTE REQUEST" shall have the meaning set forth
in Section 2.03(b) hereof.
"COMPETITIVE BID NOTE" shall have the meaning set forth in Section
2.03(p) hereof.
"COMPETITIVE BID RECORD" shall have the meaning set forth in Section
2.03(l) hereof.
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"CONSOLIDATED ADJUSTED EBITDAR" for any period, with respect to the
Borrower and its consolidated Subsidiaries, shall mean the sum of (a)
Consolidated Net Income for such period, (b) Consolidated Adjusted Interest
Expense for such period, (c) charges against income for foreign, federal, state
and local income taxes for such period, (d) the amount of all expenses for
depreciation and amortization for such period and (e) Consolidated Adjusted
Rental Expense for such period, all as determined on a consolidated basis in
accordance with GAAP.
"CONSOLIDATED ADJUSTED INTEREST EXPENSE" for any period shall mean the
sum of (a) the total interest expense of the Borrower and its consolidated
Subsidiaries (other than Special Purpose Subsidiaries) and (b) any cash dividend
paid on the Borrower's Trust Preferred, for such period determined on a
consolidated basis in accordance with GAAP.
"CONSOLIDATED ADJUSTED RENTAL EXPENSE" for any period shall mean
aggregate rent and lease payments made pursuant to operating leases for such
period by the Borrower and its consolidated Subsidiaries (other than Special
Purpose Subsidiaries) determined on a consolidated basis in accordance with
GAAP.
"CONSOLIDATED CAPITALIZATION" at any time shall mean the sum of
Consolidated Net Worth at such time and Consolidated Indebtedness at such time.
"CONSOLIDATED FIXED CHARGES" for any period shall mean the sum of
Consolidated Adjusted Interest Expense for such period and Consolidated Adjusted
Rental Expense for such period.
"CONSOLIDATED FIXED CHARGES COVERAGE RATIO" for any period shall mean
the ratio of the Consolidated Adjusted EBITDAR (less any cash dividend paid on
the Borrower's common stock) for such period to the Consolidated Fixed Charges
for such period.
"CONSOLIDATED INDEBTEDNESS" at any time shall mean the Indebtedness of
the Borrower and its consolidated Subsidiaries at such time determined on a
consolidated basis in accordance with GAAP.
"CONSOLIDATED LEVERAGE RATIO" at any time shall mean the ratio of
Consolidated Indebtedness to the Consolidated Capitalization at such time.
"CONSOLIDATED NET INCOME" for any period shall mean the net earnings
(or loss) after taxes of the Borrower and its consolidated Subsidiaries for such
period determined on a consolidated basis in accordance with GAAP.
"CONSOLIDATED NET WORTH" at any time shall mean the total amount of
stockholders' equity (including, without duplication, the face amount of the
Borrower's Trust Preferred issued and outstanding at such time) of the Borrower
and its consolidated Subsidiaries at such time determined on a consolidated
basis in accordance with GAAP, provided, that in the calculation of Consolidated
Net Worth of the Borrower solely for the purposes of Section 6.01(b),
accumulated translation adjustments with respect to the Borrower's investments
in foreign entities shall be excluded.
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"CONTINUING DIRECTORS" shall mean members of the board of directors of
the Borrower who (a) were directors on January 1, 1999 or (b) have been
directors for at least two years, or (c) were nominated or elected with the
affirmative vote of the greater of (x) a majority of the Continuing Directors on
the board or (y) three Continuing Directors.
"CONTROLLED GROUP" shall mean with respect to any Person, all members
of a controlled group of corporations and all trades or businesses (whether or
not incorporated) under common control which, together with such Person, are
treated as a single employer under Section 414(b), 414(c), 414(m) or 414(o) of
the Code or Section 4001(a)(2) of ERISA.
"CORRESPONDING SOURCE OF FUNDS" shall mean:
(a) In the case of any Funding Segment of the CD Rate
Portion, the proceeds of hypothetical issuances by a Lender of one or
more of its certificates of deposit at the beginning of the CD Rate
Funding Period corresponding to such Funding Segment, having maturities
approximately equal to such CD Rate Funding Period and in an aggregate
amount approximately equal to such Lender's Pro Rata share of such
Funding Segment; and
(b) In the case of any Funding Segment of the Euro-Rate
Portion, the proceeds of hypothetical receipts by a Notional Euro-Rate
Funding Office or by a Lender through a Notional Euro-Rate Funding
Office of one or more Dollar deposits in the interbank eurodollar
market at the beginning of the Euro-Rate Funding Period corresponding
to such Funding Segment having maturities approximately equal to such
Euro-Rate Funding Period and in an aggregate amount approximately equal
to such Lender's Pro Rata share of such Funding Segment.
"CREDITORS" shall mean the Lenders and the Agents.
"CREDIT PARTY" shall mean each of the Borrower and the Guarantors.
"DEBT INSTRUMENT" shall have the meaning set forth in Section 7.01(f)
hereof.
"DOCUMENTATION AGENT" shall mean ABN AMRO Bank N.V., in its capacity as
documentation agent hereunder.
"DOLLAR," "DOLLARS" and the symbol "$" shall mean lawful money of the
United States of America.
"DOLLAR EQUIVALENT" shall mean, as of the date of determination, (a)
the amount denominated in Dollars, and (b) as to any amount denominated in
another currency, the equivalent amount in Dollars as determined by the
Administrative Agent on the basis of the Spot Rate for the purchase of Dollars
with such currency.
"EFFECTIVE DATE" shall have the meaning given to that term in Section
10.19 hereof.
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"ELIGIBLE ASSIGNEE" means (a) a financial institution organized under
the laws of the United States, or any state thereof, and having a combined
capital and surplus of at least $100,000,000; (b) a commercial bank organized
under the laws of any other country which is a member of the Organization for
Economic Cooperation and Development, or a political subdivision of any such
country, and having a combined capital and surplus of at least $100,000,000,
PROVIDED that such bank is acting through a branch or agency located in the
United States; (c) a Person that is primarily engaged in the business of
commercial banking and that is (i) a Subsidiary of a Lender, (ii) a Subsidiary
of a Person of which a Lender is a Subsidiary, or (iii) a Person of which a
Lender is a Subsidiary or (d) another Lender.
"ENVIRONMENTAL CLAIM" shall mean, with respect to any Person, any
action, suit, proceeding, investigation, notice, claim, complaint, demand,
request for information or other communication (written or oral) by any other
Person (including but not limited to any Governmental Authority, citizens' group
or present or former employee of such Person) alleging, asserting or claiming
any actual or potential (a) violation of any Requirements of Law, (b) liability
under any Requirements of Law or (c) liability for investigatory costs, cleanup
costs, governmental response costs, natural resources damages, property damages,
personal injuries, fines or penalties arising out of, based on or resulting from
the presence, or release into the environment, of any Hazardous Materials at any
location, whether or not owned by such Person.
"ENVIRONMENTAL MATTERS" means any matter arising out of, relating to,
or resulting from any emissions, discharges, releases or threatened releases of
Hazardous Materials into the air, surface water, groundwater, or soil, or
otherwise arising out of, relating to, or resulting from the manufacture,
processing, distribution, use, treatment, storage, disposal, transport or
handling of Hazardous Materials.
"ENVIRONMENTAL PERMITS" means all permits, licenses, authorizations,
registrations and other governmental consents required by applicable
Requirements of Law for the use, storage, treatment, transportation, release,
emission and disposal of raw materials, by-products, wastes and other substances
used or produced by or otherwise relating to the operations of the Borrower and
any Significant Subsidiary of the Borrower.
"ERISA" shall mean the Employee Retirement Income Security Act of 1974,
as amended, and any successor statute of similar import, and regulations
thereunder, in each case as in effect from time to time. References to sections
of ERISA shall be construed also to refer to any successor sections.
"ERISA LIEN" shall mean a security interest or lien arising under or in
connection with a Pension Plan or Title IV of ERISA or a claim asserted
(including for failure to withhold) by the government which if successful would
result in such a lien; PROVIDED, HOWEVER, that any claim asserted, (a) for which
the Borrower has reasonable grounds to contest and (b) which the Borrower is
diligently contesting in good faith through appropriate proceedings with the IRS
or a court of law, shall not be deemed an ERISA Lien for so long as all of the
above conditions are met.
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"EUROCURRENCY LIABILITIES" shall have the meaning set forth in the
definition of Euro-Rate Reserve Percentage set forth in Section 1.01 hereof.
"EUROCURRENCY LOAN" shall have the meaning set forth in Section 2.03(r)
hereof.
"EURO-RATE" shall have the meaning set forth in Section 2.08(a)(iii)
hereof.
"EURO-RATE FUNDING PERIOD" shall have the meaning set forth in Section
2.08(c) hereof.
"EURO-RATE OPTION" shall have the meaning set forth in Section
2.08(a)(iii) hereof.
"EURO-RATE PORTION" of any Loan or Loans shall mean at any time the
portion, including the whole, of such Loan or Loans bearing interest at any time
under the Euro-Rate Option or at a rate calculated by reference to the Euro-Rate
under Section 2.15 hereof. If no Loan or Loans is specified, "Euro-Rate Portion"
shall refer to the Euro-Rate Portion of all Loans outstanding at such time.
"EURO-RATE RESERVE PERCENTAGE" means for any day for any Lender for any
Funding Segment or Interest Period the reserve percentage (expressed as a
decimal, rounded upward to the next 1/100th of 1%) in effect on such day, as
determined in good faith by such Lender (which determination shall be conclusive
absent manifest error), under regulations issued from time to time by the Board
of Governors of the Federal Reserve System for determining the maximum reserve
requirement of such Lender (including any emergency, supplemental or other
marginal reserve requirement) with respect to eurocurrency funding (currently
referred to as "EUROCURRENCY LIABILITIES").
"EVENT OF DEFAULT" shall mean any of the Events of Default described in
Section 7.01 hereof.
"EXIT FUNDING AGREEMENT" shall mean that certain Exit Funding Agreement
dated as of October 15, 1999, by and between the Borrower and SunTrust Bank,
Central Florida, National Association related to the restructuring of certain
indebtedness originally incurred to finance a portion of the costs of
constructing the ▇▇▇▇▇▇▇ Facility.
"FACILITY FEE" is set forth in the definition of "APPLICABLE MARGIN."
"FEDERAL FUNDS EFFECTIVE RATE" for any day shall mean the rate per
annum (rounded upward to the nearest 1/100 of 1%) determined by the
Administrative Agent (which determination shall be conclusive) to be the rate
per annum announced by the Federal Reserve Bank of New York (or any successor)
on such day as being the weighted average of the rates on overnight Federal
funds transactions arranged by Federal funds brokers on the previous trading
day, as computed and announced by such Federal Reserve Bank (or any successor)
in substantially the same manner as such Federal Reserve Bank computes and
announces the weighted average it refers to as the "Federal Funds Effective
Rate" as of the date of this Agreement; PROVIDED, that if such Federal Reserve
Bank (or its successor) does not announce
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such rate on any day, the "Federal Funds Effective Rate" for such day shall be
the Federal Funds Effective Rate for the last day on which such rate was
announced.
"FINANCIAL PROVISIONS" shall have the meaning set forth in Section
1.03(d) hereof.
"FUNDING PERIODS" shall have the meaning set forth in Section 2.08(c)
hereof.
"FUNDING SEGMENT" of the CD Rate Portion or the Euro-Rate Portion, as
the case may be, of the Revolving Credit Loans at any time shall mean the entire
principal amount of such Portion to which at the time in question there is
applicable a particular Funding Period beginning on a particular day and ending
on a particular day. (By definition, each such Portion is at all times composed
of an integral number of discrete Funding Segments and the sum of the principal
amounts of all Funding Segments of any such Portion at any time equals the
principal amount of such Portion at such time.)
"GAAP" shall have the meaning set forth in Section 1.03 hereof.
"GOVERNMENTAL ACTION" shall have the meaning set forth in Section 3.04
hereof.
"GOVERNMENTAL AUTHORITY" shall mean any government or political
subdivision or any agency, authority, bureau, central bank, commission,
department or instrumentality of either, or any court, tribunal, grand jury or
arbitrator, in each case whether foreign or domestic.
"GUARANTEE" shall mean the guarantee by any Person to pay or perform
the obligations of any other Person, including any agreement, whether such
agreement is on a contingency basis or otherwise, to purchase, repurchase or
otherwise acquire Indebtedness of any other Person, or to purchase, sell or
lease, as lessee or lessor, property or services, in any such case primarily for
the purpose of enabling another Person to make payment of Indebtedness.
"GUARANTEED OBLIGATIONS" shall mean the full and prompt payment when
due (whether at the stated maturity, by acceleration or otherwise) of the
principal and interest on each Note and Loan made under this Agreement, together
with all the other obligations and liabilities (including, without limitation,
indemnities, fees and interest thereon) of the Borrower to the Agents and the
Lenders now existing or hereafter incurred under, arising out of or in
connection with this Agreement or any other Loan Document to which the Borrower
is a party and the due performance and compliance with all the terms, conditions
and agreements contained in such Loan Documents by the Borrower.
"GUARANTOR" shall mean ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ USA Corporation, ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Energy International, Inc., ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Energy Corporation and any other
domestic Subsidiary of the Borrower designated pursuant to Section 5.15 hereof.
"GUARANTY" shall mean the Guaranty as set forth in Article IX hereof.
"HAZARDOUS MATERIALS" means any pollutants, contaminants, hazardous or
toxic substances, materials or wastes (including petroleum, petroleum
by-products, PCBs, and friable
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asbestos) as those concepts are used in the Comprehensive Environmental Response
Compensation and Liability Act (CERCLA), the Resource Conservation and Recovery
Act (RCRA), the Toxic Substance Control Act (TSCA), the Clean Air Act, the Clean
Water Act, and other similar federal or state statutes or regulations.
"INDEBTEDNESS" of a Person shall mean with respect to any Person,
without duplication, all (a) liabilities or obligations incurred in connection
with borrowings (including reimbursement obligations in respect of letters of
credit or banker's acceptances which have been drawn and including the sale of
debt securities) of such Person which in accordance with generally accepted
accounting principles would be included in determining total liabilities as
shown on the liability side of a balance sheet of such Person at the date as of
which Indebtedness is to be determined, including, without limitation,
Capitalized Lease Obligations of such Person; (b) liabilities or obligations of
such Person issued, incurred or assumed in respect of the purchase price of
property except for trade accounts payable incurred in the ordinary course of
business on which interest is not being accrued; (c) liabilities or obligations
of others of any of the types specified in the preceding clauses (a) and (b) for
which such Person is directly or indirectly liable, by way of guaranty (whether
by direct guaranty, suretyship, discount, endorsement, take-or-pay agreement,
agreement to purchase or advance or keep in funds or other agreement having the
effect of a guaranty) or otherwise; (d) liabilities or obligations of others of
any of the types specified in the preceding clauses (a) and (b) which are
secured by Liens on any assets of such Person, whether or not such liabilities
or obligations shall have been assumed by it; and (e) to the extent not included
in the preceding clauses (a) through (d), the excess over $10,000,000 of the
aggregate undrawn amount of all financial letters of credit issued on account of
such Person.
"INDEMNIFIED PARTIES" shall mean the Agents, the Lenders, their
respective affiliates, and the directors, officers, employees, attorneys and
agents of each of the foregoing.
"INDENTURE" shall have the meaning set forth in Section 6.10 hereof.
"INITIAL REVOLVING CREDIT COMMITTED AMOUNT" shall have the meaning set
forth in Section 2.01(a) hereof.
"INTEREST PERIOD" shall mean with respect to any Competitive Bid Loan,
the period commencing on the date such Competitive Bid Loan is made and ending
on a date not less than seven days nor more than 180 days thereafter (with
respect to any Absolute Rate Loan) or 30, 60, 90 or 180 days thereafter (with
respect to any CD Rate Loan) or one, two, three or six months (with respect to
any LIBO-Rate Loan), as the Borrower may specify in the related Competitive Bid
Loan Quote Request as provided in Section 2.03(b) hereof, PROVIDED that:
(a) No Interest Period may end after the Competitive Bid
Expiration Date;
(b) Each Interest Period that would otherwise end on a
day that is not a Business Day shall end on the next succeeding
Business Day or, in the case of an Interest Period for a LIBOR-based
Loan, if such next succeeding Business Day falls in the next succeeding
calendar month, then such Interest Period shall end on the next
preceding Business Day; and
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(c) Notwithstanding clauses (a) and (b) above, no
Interest Period for any Competitive Bid Loan shall have a duration of
less than seven days and, if the Interest Period for any Competitive
Bid Loan would otherwise be a shorter period, such Competitive Bid Loan
shall not be available hereunder.
"INVESTMENT" by any Person in any other Person shall mean:
(a) the amount paid, or the value of property or services
contributed, by such Person for or in connection with the acquisition
by such Person of any stock, bonds, notes, debentures, option
contracts, investment contracts, partnership or other ownership
interests or other securities of any other Person;
(b) the amount of any advance, loan or extension of
credit to any other Person by such Person; and
(c) the amount of any Indebtedness of any other Person
which such Person has guaranteed and which by its terms or as a
consequence of any default thereunder such Indebtedness has or may, at
the option of the holder thereof, become due and payable by
acceleration or otherwise.
"IRS" shall mean the Internal Revenue Service.
"LAW" shall mean any law (including common law), constitution, statute,
treaty, convention, regulation, rule, ordinance, order, injunction, writ, decree
or award of any Governmental Authority.
"LENDER" shall mean any of the Lenders listed on the signature pages
hereof, subject to the provisions of Sections 1.05, 10.14 and 10.17 hereof
pertaining to Persons becoming or ceasing to be Lenders.
"LEVEL I DAY" shall mean a day on which there is in effect a ▇▇▇▇▇'▇
Rating of Baa2 or better and an S&P Rating of BBB or better.
"LEVEL II DAY" shall mean a day which is not a Level I Day and on which
there is in effect a ▇▇▇▇▇'▇ Rating of Baa3 or better and an S&P Rating of BBB-
or better.
"LEVEL III DAY" shall mean a day which is not a Level I Day or a Level
II Day and on which there is in effect a ▇▇▇▇▇'▇ Rating of Ba1 or better and an
S&P Rating of BB+ or better.
"LEVEL IV DAY" shall mean a day which is not a Level I Day, a Level II
Day or a Level III Day and on which there is in effect a ▇▇▇▇▇'▇ Rating of Ba2
or better and an S&P Rating of BB or better.
"LEVEL V DAY" shall mean a day which is not a Level I Day, a Level II
Day, a Level III Day or a Level IV Day.
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"LIBO-RATE" for any day, as used herein, shall mean with respect to
each proposed LIBOR-based Loan a rate of interest (which shall be the same for
each day in the applicable Interest Period) equal to the rate of interest
determined in good faith by the Administrative Agent in accordance with its
usual procedures from the Reuters Screen LIBO page (which determination shall be
conclusive absent manifest error) to be the average of the rates per annum for
deposits in Dollars offered to the leading banks in the London interbank market
at approximately 11:00 a.m., London time, two Business Days prior to the first
day of such Interest Period for delivery on the first day of such Interest
Period in amounts comparable to the amount of the LIBOR-based Loan to be funded
and having maturities comparable to such Interest Period.
"LIBOR AUCTION" shall mean a solicitation of Competitive Bid Loan
Quotes setting forth LIBOR-based Margins based on the LIBO-Rate pursuant to
Section 2.03 hereof.
"LIBOR-BASED LOANS" shall mean Competitive Bid Loans the interest rates
of which are determined on the basis of the LIBO-Rate pursuant to a LIBOR
Auction.
"LIEN" shall mean any mortgage, deed of trust, pledge, lien, security
interest, charge or other encumbrance or security arrangement of any nature
whatsoever, including but not limited to any conditional sale or title retention
arrangement, and any assignment, deposit arrangement or lease intended as, or
having the effect of, security.
"LOAN" shall mean any loan or advance by a Lender under this Agreement,
whether a Revolving Credit Loan or a Competitive Bid Loan and "LOANS" shall mean
all Revolving Credit Loans and Competitive Bid Loans made by Lenders under this
Agreement.
"LOAN DOCUMENTS" shall mean this Agreement, the Notes, the Subsidiary
Guaranty Agreements, the Pledge Agreement and the Transfer Supplements, and all
other agreements and instruments extending or renewing any indebtedness,
obligation or liability arising under any of the foregoing, and any certificate
or instrument delivered by the Borrower or the Guarantors in connection herewith
or therewith, in each case as the same may be amended, modified or supplemented
from time to time hereafter.
"MATERIAL ADVERSE EFFECT" shall mean a material adverse effect on the
business, operations, properties, assets or condition (financial or otherwise)
of the Borrower and its Subsidiaries taken as a whole.
"MATERIAL DOMESTIC SUBSIDIARY" shall mean each Significant Subsidiary
of the Borrower (other than Special Purpose Subsidiaries) that is organized
under the laws of one of the States of the United States.
"▇▇▇▇▇'▇" shall mean ▇▇▇▇▇'▇ Investor's Services, Inc., or any
successor thereto.
"▇▇▇▇▇'▇ RATING" shall mean the rating assigned to the Borrower's
senior unsecured long term debt by ▇▇▇▇▇'▇, or in the event the Borrower has no
▇▇▇▇▇'▇-rated senior unsecured long-term debt outstanding, the "hypothetical
senior long-term debt rating" most recently assigned to the Borrower by ▇▇▇▇▇'▇,
which assignment shall have been made not more than
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fifteen months prior to the time in question and not more than ninety (90) days
after a request therefor by the Required Lenders pursuant to Section 5.14
hereof.
"NONEXTENDING LENDER" shall have the meaning set forth in Section 2.18
hereof.
"NOTE" or "NOTES" shall mean the Revolving Credit Note(s) or the
Competitive Bid Note(s), as the case may be, of the Borrower executed and
delivered under this Agreement, together with all extensions, renewals,
refinancings or refundings of any thereof in whole or part.
"NOTIONAL EURO-RATE FUNDING OFFICE" shall have the meaning given to
that term in Section 2.17(a) hereof.
"OBLIGATIONS" shall mean all indebtedness, obligations and liabilities
of the Borrower to any Lender or any Agent from time to time arising under or in
connection with or related to or evidenced by or secured by this Agreement or
any other Loan Document, and all extensions or renewals thereof, whether such
indebtedness, obligations or liabilities are direct or indirect, otherwise
secured or unsecured, joint or several, absolute or contingent, due or to become
due, whether for payment or performance, now existing or hereafter arising.
Without limitation of the foregoing, such indebtedness, obligations and
liabilities include the principal amount of Loans, interest, fees, indemnities
or expenses under or in connection with this Agreement or any other Loan
Document, and all extensions and renewals thereof, whether or not such Loans
were made in compliance with the terms and conditions of this Agreement or in
excess of the obligation of the Lenders to lend. Obligations shall remain
Obligations notwithstanding any assignment or transfer or any subsequent
assignment or transfer of any of the Obligations or any interest therein.
"OFFICE," when used in connection with the Administrative Agent, shall
mean its office located at ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇,
▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, or at such other office or offices of the Administrative Agent
or any branch, subsidiary or affiliate thereof as may be designated in writing
from time to time by the Administrative Agent to the Borrower.
"OPTION" shall mean the Base Rate Option, the CD Rate Option or the
Euro-Rate Option, as the case may be.
"OTHER CREDIT AGREEMENT" shall mean the Amended and Restated Revolving
Credit Agreement dated as of December 1, 1999 among the Borrower, the guarantors
signatory thereto, the lenders signatory thereto, Bank of America, N.A., as
administrative agent, and other agents party thereto, as the same may be
amended, modified or supplemented from time to time.
"PARTICIPANTS" shall have the meaning set forth in Section 10.14(b)
hereof.
"PBGC" means the Pension Benefit Guaranty Corporation established under
Title IV of ERISA or any other governmental agency, department or
instrumentality succeeding to the functions of said corporation.
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"PENSION PLAN" shall mean a single employer plan as defined in Section
4001(a)(15) of ERISA or an individual account plan which is subject to the
funding standards of Section 302 of ERISA with respect to which the Borrower,
any of its Significant Subsidiaries, or members of their respective Controlled
Groups, at any relevant time have some liability or obligation to contribute or
pay benefits and which relates to current or former employees of the Borrower,
any of its Significant Subsidiaries or any member of their respective Controlled
Groups.
"PERMITTED LIENS" shall mean (a) pledges or deposits by the Borrower or
any of its Subsidiaries under workers' compensation laws, unemployment insurance
laws, social security laws, or similar legislation, or good faith deposits in
connection with bids, tenders, contracts (other than for the payment of
Indebtedness of the Borrower or any of its Subsidiaries), or leases to which the
Borrower or any of its Subsidiaries is a party, or deposits to secure public or
statutory obligations of the Borrower or any of its Subsidiaries or deposits of
cash or U.S. governmental bonds to secure surety, appeal, performance or other
similar bonds to which the Borrower or any of its Subsidiaries is a party, or
deposits as security for contested taxes or import duties or for the payment of
rent; (b) Liens imposed by law such as carriers', warehousemen's, materialmen's
and mechanics' or other similar liens, or Liens arising out of judgments or
awards against the Borrower or any of its Subsidiaries with respect to which the
Borrower or any of its Subsidiaries at the time shall currently be prosecuting
an appeal or proceedings for review; (c) Liens for taxes, assessments or
governmental charges or levies not yet subject to penalties for nonpayment and
Liens for taxes, assessments or governmental charges or levies the payment of
which is being contested as permitted by Section 5.03 hereof; (d) survey
exceptions, encumbrances, easements or reservations of, or rights of others for
rights of way, highways and railroad crossings, sewers, electric lines,
telephone and telegraph lines and other similar purposes, or zoning or other
restrictions as to the use of real property; all of which Liens described in
clause (d) hereof do not in the aggregate materially detract from the value of
the properties to which they relate or materially impair their use in the
operation of the business of the Borrower and its Subsidiaries taken as a whole;
(e) Liens (i) in favor of the United States of America or any State thereof, or
any department, agency or instrumentality or political subdivision of the United
States of America or any State thereof, or (ii) in favor of any other country,
or any political subdivision thereof, to secure partial, progress, advance or
other payments pursuant to any contract or statute; (f) Liens made in favor of
any customer arising in the ordinary course of business of the Borrower or any
Subsidiary thereof in respect of payments made by or on behalf of such customer
for goods produced or services rendered to such customer; (g) a security
interest granted to the "Administrative Agent," for the benefit of the
"Administrative Agent," the "LC Issuer" and the "Lenders," in "Cash Collateral"
under the Other Credit Agreement (all terms in quotation having the meanings
ascribed to such terms under the Other Credit Agreement); and (h) Liens granted
pursuant to the Pledge Agreement.
"PERSON" shall mean an individual, corporation, partnership, trust,
unincorporated association, joint venture, joint-stock company, Governmental
Authority or any other entity.
"PLEDGE AGREEMENT" shall mean the pledge agreement in the form of
Exhibit J.
"PORTION" shall mean the Base Rate Portion, the CD Rate Portion or the
Euro-Rate Portion, as the case may be.
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"POTENTIAL DEFAULT" shall mean any event or condition which with notice
or passage of time, or any combination of the foregoing, would constitute an
Event of Default.
"PREVIOUS CREDIT AGREEMENT" shall have the meaning set forth in the
Recitals hereto.
"PRIME RATE" as used herein, shall mean for any day the rate of
interest in effect for such day as publicly announced from time to time by Bank
of America as its "prime rate." (The "prime rate" is a rate set by Bank of
America based upon various factors including Bank of America's costs and desired
return, general economic conditions and other factors, and is used as a
reference point for pricing some loans, which may be priced at, above, or below
such announced rate.) Any change in the prime rate announced by Bank of America
shall take effect at the opening of business on the day specified in the public
announcement of such change.
"PRINCIPAL FOREIGN AFFILIATES" shall have the meaning set forth in
Section 6.09 hereof.
"PROJECT" shall mean any municipal solid waste project or any other
project the assets of which are financed on a limited recourse basis.
"PRO RATA" shall have the meaning set forth in Section 2.13 hereof.
"PURCHASING LENDER" shall have the meaning set forth in Section
10.14(c) hereof.
"REGISTER" shall have the meaning set forth in Section 10.14(d) hereof.
"REGULAR PAYMENT DATE" shall mean the last Business Day of each March,
June, September and December after the date hereof.
"RELEVANT DATE" shall have the meaning set forth in Section 1.03(a)
hereof.
"REPLACEMENT LENDER" shall have the meaning set forth in Section 2.18
hereof.
"REPORTABLE EVENT" means an event described in Section 4043 of ERISA or
in the regulations thereunder with respect to which the 30-day notice is not
waived or an event described in Section 4043 or in the regulations thereunder
with respect to which the 30-day notice has been waived and which involves a
liability of $1,000,000 or more or a material plan or a receipt of a notice of
withdrawal liabilities pursuant to Section 4202 of ERISA. For purposes of this
definition a material plan is a plan in which benefit liabilities exceed assets
on a termination basis based on PBGC assumptions by $1,000,000.
"REQUIRED LENDERS" shall mean, at any time prior to the termination or
expiration of the Commitments, Lenders which have Commitments constituting, in
the aggregate, more than 50% of the total Commitments of all the Lenders at such
time and shall mean, at any time thereafter, Lenders which have outstanding
Loans constituting, in the aggregate, more than 50% of all Loans outstanding at
such time.
-16-
"REQUIREMENTS OF LAW" means all applicable federal, state, and local
laws, statutes, rules, regulations, codes, ordinances, orders, decrees,
directives, permits, licenses and judgments relating to Environmental Matters in
effect from time to time.
"RESPONSIBLE OFFICER" of the Borrower shall mean its Chief Executive
Officer, its Chief Financial Officer, its Executive Vice President, any Senior
Vice President, any Vice President, the Treasurer or one of its Assistant
Treasurers.
"REVOLVING CREDIT COMMITMENT" shall have the meaning set forth in
Section 2.01(a) hereof.
"REVOLVING CREDIT COMMITTED AMOUNT" shall have the meaning set forth in
Section 2.01(a) hereof.
"REVOLVING CREDIT LOANS" shall have the meaning set forth in Section
2.01(a) hereof.
"REVOLVING CREDIT MATURITY DATE" shall mean May 31, 2000, as such date
may be extended pursuant to Section 2.18 hereof.
"REVOLVING CREDIT NOTE" shall mean the promissory note of the Borrower
executed and delivered under Section 2.01(c) hereof, any promissory note issued
in substitution therefor pursuant to Sections 2.17(b) or 10.14(c) hereof,
together with all extensions, renewals, refinancings or refundings thereof in
whole or part.
"▇▇▇▇▇▇▇ FACILITY" means the waste-to-energy facility located in the
Village of ▇▇▇▇▇▇▇, Illinois.
"ROBBINS SUBSIDIARIES" shall mean, collectively, RRRP Illinois, Inc.,
RRRP Robbins, Inc., RRRP Midwest, LLC and ▇▇▇▇▇▇▇ Resources Recovery Partners,
L.P. and their respective successors and assigns.
"S&P" shall mean Standard & Poor's Rating Services, or any successor
thereto.
"S&P RATING" shall mean the rating assigned to the Borrower's senior
unsecured long term debt by S&P, or in the event the Borrower has no S&P-rated
senior unsecured long-term debt outstanding, the "issuer credit rating" most
recently assigned to the Borrower by S&P, which assignment shall have been made
not more than fifteen months prior to the time in question and not more than
ninety (90) days after a request therefor by the Required Lenders pursuant to
Section 5.14 hereof.
"SIGNIFICANT SUBSIDIARY" shall mean (a) each Special Purpose Subsidiary
and (b) each other Subsidiary of the Borrower which in the most recent fiscal
year of the Borrower accounted for more than 10% of the consolidated assets of
the Borrower and its Subsidiaries or which accounted for more than 10% of the
consolidated income of the Borrower and its Subsidiaries for each of the most
recent three fiscal years of the Borrower; PROVIDED, HOWEVER, that with respect
to Subsidiaries created or acquired after the date hereof, if thereafter such
entity, in a fiscal year,
-17-
accounts for more than 10% of the consolidated assets of the Borrower and its
Subsidiaries or accounts for more than 10% of the consolidated income of the
Borrower and its Subsidiaries in such fiscal year, it shall be deemed to be a
Significant Subsidiary for such fiscal year.
"SPECIAL PURPOSE SUBSIDIARY" shall mean a Subsidiary of the Borrower
formed with the express and sole purpose of, and which is engaged solely in the
business of, constructing or owning, leasing or operating a specific Project,
and with respect to which Subsidiary, neither the Borrower nor any of its other
Subsidiaries is obligated (except as guarantor of completion or performance) to
pay any Indebtedness (including lease obligations) incurred to construct, own,
lease or operate any such Project or any other Indebtedness of such Subsidiary;
PROVIDED, HOWEVER, that each ▇▇▇▇▇▇▇ Subsidiary shall be a Special Purpose
Subsidiary notwithstanding the obligations of the Borrower under the Exit
Funding Agreement so long as such companies otherwise qualify under this
definition.
"SPOT RATE" for a currency means the rate quoted (expressed as a
decimal, rounded to the fourth decimal place) to the Administrative Agent as the
spot rate for the purchase of such currency with another currency through the FX
Trading Office of Bank of America at approximately 12:00 noon (London time) on
the date two Business Days prior to the date as of which the foreign exchange
settlement is made.
"STANDARD NOTICE" shall mean an irrevocable notice substantially in the
form of Exhibit L provided to the Administrative Agent on a Business Day which
is:
(a) At least two Business Day in advance in the case of
selection of, conversion to or renewal of the CD Rate Option or
prepayment of CD Rate Portion;
(b) At least three Business Days in advance in the case
of selection of, conversion to or renewal of the Euro-Rate Option or
prepayment of any Euro-Rate Portion; and
(c) On the same Business Day in the case of selection of,
conversion to or renewal of the Base Rate Option or prepayment of Base
Rate Portion.
Standard Notice must be provided no later than 9:00 a.m., Los Angeles time, on
the last day permitted for such notice in the case of notices given pursuant to
clause (c) above, and no later than 10:00 a.m., Los Angeles time, on the last
day permitted for such notice in the case of notices given pursuant to clauses
(a) and (b) above.
"STOCK PAYMENT" by any Person shall mean any dividend, distribution or
payment of any nature (whether in cash, securities, or other property) on
account of or in respect of any shares of the capital stock (or warrants,
options or rights therefor) of such Person, including but not limited to any
payment on account of the purchase, redemption, retirement, defeasance or
acquisition of any shares of the capital stock (or warrants, options or rights
therefor) of such Person, in each case regardless of whether required by the
terms of such capital stock (or warrants, options or rights) or any other
agreement or instrument.
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"SUBSIDIARY" of a Person at any time shall mean any corporation of
which a majority (by number of shares or number of votes) of any class of
outstanding capital stock normally entitled to vote for the election of one or
more directors (regardless of any contingency which does or may suspend or
dilute the voting rights of such class) is at such time owned directly or
indirectly, beneficially or of record, by such Person or one or more
Subsidiaries of such Person, and any trust of which a majority of the beneficial
interest is at such time owned directly or indirectly, beneficially or of
record, by such Person or one or more Subsidiaries of such Person.
"SUBSIDIARY GUARANTY AGREEMENT" shall mean the agreement of a
Subsidiary in the form of Exhibit H hereof whereby it acknowledges to become a
party hereto as a Guarantor under Section 9 hereof.
"SYNDICATION AGENT" shall mean First Union National Bank, in its
capacity as Syndication Agent hereunder.
"TAXES" shall have the meaning set forth in Section 2.16 hereof.
"TOTAL REVOLVING CREDIT COMMITMENT" shall mean at any time, the
aggregate Revolving Credit Committed Amounts of all Lenders hereunder at such
time.
"TRANSFER EFFECTIVE DATE" shall have the meaning set forth in the
applicable Transfer Supplement.
"TRANSFER SUPPLEMENT" shall have the meaning set forth in Section
10.14(c) hereof.
"TRUST PREFERRED" shall mean 9% $175,000,000 Trust Preferred Securities
of the Borrower issued on or about January 13, 1999.
"UTILIZATION FEE" is set forth in the definition of "APPLICABLE
MARGIN."
"VOTING STOCK" shall mean, with respect to any corporation, the capital
stock of such corporation having the power to vote for a majority of the board
of directors of such corporation under ordinary circumstances.
SECTION 1.02. CONSTRUCTION. Unless the context of this Agreement
otherwise clearly requires, references to the plural include the singular, the
singular the plural and the part the whole; "or" has the inclusive meaning
represented by the phrase "and/or"; and "property" includes all properties and
assets of any kind or nature, tangible or intangible, real, personal or mixed.
References in this Agreement to "determination" (and similar terms) by any Agent
or by any Lender include reasonable and good faith estimates by such Agent or by
such Lender (in the case of quantitative determinations) and good faith beliefs
by such Agent or by such Lender (in the case of qualitative determinations). The
words "hereof," "herein," "hereunder" and similar terms in this Agreement refer
to this Agreement as a whole and not to any particular provision of this
Agreement. The section and other headings contained in this Agreement and the
Table of Contents preceding this Agreement are for reference purposes only and
shall not control or affect
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the construction of this Agreement or the interpretation thereof in any respect.
Section, subsection and exhibit references are to this Agreement unless
otherwise specified.
SECTION 1.03. ACCOUNTING PRINCIPLES. (a) As used herein, "GAAP" shall
mean generally accepted accounting principles as such principles shall be in
effect at the Relevant Date, subject to the provisions of this Section 1.03. As
used herein, "Relevant Date" shall mean the date a relevant computation or
determination is to be made or the date of relevant financial statements, as the
case may be.
(b) Except as otherwise provided in this Agreement, all computations
and determinations as to accounting or financial matters shall be made, and all
financial statements to be delivered pursuant to this Agreement shall be
prepared, in accordance with GAAP (including principles of consolidation where
appropriate), and all accounting or financial terms shall have the meanings
ascribed to such terms by GAAP.
(c) If any change in GAAP after the date of this Agreement is or shall
be required to be applied to transactions then or thereafter in existence, and a
violation of one or more provisions of this Agreement shall have occurred or in
the opinion of the Borrower would likely occur which would not have occurred or
be likely to occur if no change in accounting principles had taken place,
(i) The parties agree that such violation shall not be
considered to constitute an Event of Default or a Potential Default for
a period of 60 days from the date the Borrower notifies the
Administrative Agent of the application of this Section 1.03 (c);
(ii) The parties agree in such event to negotiate in good faith
an amendment of this Agreement which shall approximate to the extent
possible the financial effect of the original financial covenants after
taking into account such change in GAAP; and
(iii) If the parties are unable to negotiate such an amendment
within 60 days, the Borrower shall have the option of prepaying the
Loans (subject to Section 2.14(b) hereof). If the Borrower does not
exercise such option within said period, then as used in this
Agreement, "GAAP" shall mean generally accepted accounting principles
in effect at the Relevant Date.
(d) If any change in GAAP after the date of this Agreement is required
to be applied to transactions or conditions then or thereafter in existence, and
the Administrative Agent shall assert that the effect of such change is or shall
likely be to distort materially the effect of any of the definitions of
financial terms in Article I hereof or any of the covenants of the Borrower in
Article VI hereof (the "FINANCIAL PROVISIONS"), so that the intended financial
effect of any of the Financial Provisions will not in fact be accomplished,
(i) The Administrative Agent shall notify the Borrower of such
assertion, specifying the change in GAAP which is objected to, and
until otherwise determined as provided below, the specified change in
GAAP shall not be made by the Borrower in its financial statements for
the purpose of applying the Financial Provisions; and
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(ii) The parties shall follow the procedures set forth in
paragraph (ii) and the first sentence of paragraph (iii) of subsection
(c) of this Section. If the parties are unable to agree on an amendment
as provided in said paragraph (ii) and if the Borrower does not
exercise the option set forth in the first sentence of said paragraph
(iii) within the specified period, then as used in this Agreement
"GAAP" shall mean generally accepted accounting principles in effect at
the Relevant Date, except that the specified change in GAAP which is
objected to by the Administrative Agent shall not be made in applying
the Financial Provisions.
(e) All expenses of compliance with this Section 1.03 shall be paid for
by the Borrower upon demand.
SECTION 1.04. OPTIONAL INCREASE OF THE COMMITMENTS. (a) The Borrower
may from time to time increase the Total Revolving Credit Commitment by the
addition of one or more new Lenders consented to by the Administrative Agent or
by the agreement of any existing Lender (a "PROPOSED COMBINED COMMITMENTS
INCREASE") in the manner set forth below; PROVIDED that (i) the then Total
Revolving Credit Commitment plus the Proposed Combined Commitments Increase
shall not be greater than the $100,000,000; (ii) immediately prior to and after
giving effect to the Proposed Combined Commitments Increase no event has
occurred and is continuing that constitutes an Event of Default or Potential
Default; (iii) the Borrower shall pay any costs payable under Section 2.14(b) if
and to the extent any Loans are prepaid on the effective date of such increase
(the "INCREASE DATE"); (iv) to the extent the Other Credit Agreement is in
effect, the Borrower must request the increase of the Total Revolving Credit
Commitment under the Other Credit Agreement and such new or existing Lender
consenting to the increase under this Agreement must also consent to the
increase under the Other Credit Agreement at the same percentage; and (v) the
Borrower may not request the increase of the Total Revolving Credit Commitment
hereunder once the Borrower has reduced such Commitment under Section 2.02(c)
hereof.
(b) The Total Revolving Credit Commitment shall be increased by the
Proposed Combined Commitments Increase on the Increase Date provided (i) each
such new Lender shall execute and deliver to the Administrative Agent the
Joinder to Revolving Credit Agreement (and by such execution and delivery, each
such new Lender shall be deemed to have agreed with the matters set forth in
this Agreement) and/or such existing Lender shall execute and deliver the
Commitment Increase Supplement in the form of Exhibit K and (ii) the
Administrative Agent shall have received on or before the Increase Date
certified copies of the resolutions of the Board of Directors of the Borrower
approving such increase of the Total Revolving Credit Commitment, and of all
documents evidencing other necessary corporate action, if any, with respect to
such increase. Upon satisfaction of the foregoing conditions, such new Lender
shall become a Lender hereunder and/or such existing Lender's Commitment shall
be increased, and the Administrative Agent shall, promptly following the
effective date thereof, provide to the Borrower and the Lenders a revised Pro
Rata shares giving effect thereto. The Borrower agrees that it shall execute and
deliver upon request of such new or existing Lender, one or more Notes
evidencing that such new or existing Lender's Pro Rata share.
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(c) If, after giving effect to the Proposed Combined Commitments
Increase, any Lender's revised Pro Rata share of the Total Revolving Credit
Commitment is different than its share of Obligations, the Obligations shall be
reallocated among the Lenders as follows. On the Increase Date the Borrower
shall be deemed to have prepaid all outstanding Revolving Credit Loans in
accordance with Section 2.11 and reborrowed all Revolving Credit Loans in
accordance with Section 2.01 from all Lenders ratably in accordance with their
revised Pro Rata shares. On the Increase Date, the Administrative Agent shall
distribute to each Lender having a decreased Pro Rata share an amount equal to
the difference between its Revolving Credit Loans so prepaid and the new
Revolving Credit Loans deemed to have been made by it (plus interest payable
hereunder). Such payments shall be deemed to be a payment of the Revolving
Credit Loans by the Borrower on the date such payment is received.
SECTION 1.05. UTILIZATION OF COMMITMENTS IN FOREIGN CURRENCIES. The
Administrative Agent will determine the Dollar Equivalent with respect to any
(i) borrowing of Eurocurrency Loans as of the requested borrowing date and (ii)
outstanding Eurocurrency Currency Loans as of the last Business Day of each
month provided, however, that (i) upon the occurrence and during the
continuation of any Potential Default or Event of Default or (ii) for the
purpose of calculating fees payable under this Agreement or for other purposes,
such determination shall be made as often as the Administrative Agent or the
Required Lenders may reasonably deem necessary.
ARTICLE II
THE CREDITS
SECTION 2.01. REVOLVING CREDIT LOANS. (a) REVOLVING CREDIT
COMMITMENTS. Subject to the terms and conditions and relying upon the
representations and warranties herein set forth, each Lender, severally and not
jointly, agrees (such agreement being herein called such Lender's "REVOLVING
CREDIT COMMITMENT") to make committed loans in Dollars (the "REVOLVING CREDIT
LOANS") to the Borrower from time to time on or after the date hereof and to but
not including the Revolving Credit Maturity Date. A Lender shall have no
obligation to make any Revolving Credit Loan to the extent that, upon the making
of such Revolving Credit Loan, the sum of the aggregate principal amount of such
Lender's outstanding Revolving Credit Loans would exceed such Lender's Revolving
Credit Committed Amount. No Revolving Credit Loans shall be made hereunder to
the extent that such Revolving Credit Loans would cause the Dollar Equivalent of
the sum of the aggregate outstanding principal amount of all Loans outstanding
hereunder to exceed the Total Revolving Credit Commitment. Each Lender's
"Revolving Credit Committed Amount" at any time shall be equal to the amount set
forth as its "Initial Revolving Credit Committed Amount" below its name on the
signature pages hereof, as such amount may have been reduced pursuant to Section
2.02(c) hereof at such time, subject to adjustment as provided in Sections 1.05
and 10.17 hereof and subject to transfer to another Lender as provided in
Section 10.14 hereof.
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(b) NATURE OF CREDIT. Within the limits of time and amount set forth in
this Section 2.01, and subject to the provisions of this Agreement, the Borrower
may borrow, repay and reborrow Revolving Credit Loans hereunder.
(c) REVOLVING CREDIT NOTES. To the extent so requested by any Lender
through the Administrative Agent, the obligation of the Borrower to repay the
unpaid principal amount of the Revolving Credit Loans made to it by such Lender
and to pay interest thereon shall be evidenced in part by promissory notes of
the Borrower, one to such Lender, dated the date hereof (the "REVOLVING CREDIT
NOTES") in substantially the form attached hereto as Exhibit A, with the blanks
appropriately filled, payable to the order of such Lender in a face amount equal
to such Lender's Initial Revolving Credit Committed Amount.
(d) MATURITY. To the extent not due and payable earlier, the Revolving
Credit Loans shall be due and payable on the Revolving Credit Maturity Date.
SECTION 2.02. FEES; REDUCTION OF THE COMMITTED AMOUNTS. (a) FACILITY
FEE. The Borrower shall pay to the Administrative Agent for the account of each
Lender a fee (the "FACILITY FEE") for each day from and including the date
hereof and to but not including the Revolving Credit Maturity Date, on the
amount of such Lender's Revolving Credit Committed Amount (whether used or
unused) on such day (based upon a year of 365 or 366 days and actual days
elapsed) at a rate per annum equal to the rate in effect for such day determined
in accordance with the pricing grid set forth in the definition of "Applicable
Margin". Facility Fees shall be due and payable for the preceding period for
which such fees have not been paid on each Regular Payment Date and on the
Revolving Credit Maturity Date.
(b) OTHER FEES. The Borrower shall pay to each Agent an agency fee and
other fees at the times and in the amounts previously agreed upon among the
Agents and the Borrower.
(c) OPTIONAL REDUCTION OF THE REVOLVING CREDIT COMMITTED AMOUNTS. The
Borrower may at any time or from time to time reduce Pro Rata the Revolving
Credit Committed Amounts of the Lenders to an aggregate amount (which may be
zero) not less than the Dollar Equivalent of the sum of the unpaid principal
amount of the Revolving Credit Loans and Competitive Bid Loans then outstanding
plus the principal amount of all Revolving Credit Loans and Competitive Bid
Loans not yet made as to which notice has been given by Borrower under Section
2.07 hereof. Any reduction of the Revolving Credit Committed Amounts shall be in
an aggregate amount not less than $10,000,000 which is an integral multiple of
$1,000,000. Reduction of the Revolving Credit Committed Amounts shall be made by
providing not less than two Business Days' notice (which notice shall be
irrevocable) to such effect to the Administrative Agent. After the date
specified in such notice the Facility Fee shall be calculated upon the Revolving
Credit Committed Amounts as so reduced. The Administrative Agent will promptly
send copies of such notice to the Lenders.
(d) BID FEES. In consideration of the Administrative Agent's management
of bidding procedures for Competitive Bid Loans, the Borrower shall pay to the
Administrative Agent for the Administrative Agent's own account on the date of
each LIBOR Auction, CD Rate Auction, Base Rate Auction and Absolute Rate
Auction, bid agency fees in the amount of $150 for each
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Competitive Bid Loan Quote submitted by each Lender, but in no event less than
$450 per auction.
SECTION 2.03. COMPETITIVE BID LOANS. (a) MAKING OF COMPETITIVE BID
LOANS. In addition to Revolving Credit Loans, the Borrower may, as set forth in
this Section 2.03, request the Lenders to make offers to make one or more
Competitive Bid Loans to the Borrower. Each Lender may, but shall have no
obligation to, make one or more such offers and, subject to the terms and
provisions hereof, the Borrower may, but shall have no obligation to, accept any
such offers in the manner set forth in this Section 2.03. Competitive Bid Loans
may be Base Rate Loans, CD Rate Loans, Absolute Rate Loans or LIBOR-based Loans
(each a "TYPE" of Competitive Bid Loan) and, subject to Section 2.03(r) hereof,
may be in any freely available currency agreed upon by the Borrower and each
Lender. Competitive Bid Loans shall be due and payable on the earlier of the
Competitive Bid Expiration Date and the applicable Competitive Bid Loan Maturity
Date. After giving effect to any borrowing of Competitive Bid Loans, the Dollar
Equivalent of the sum of the aggregate principal amount of all Loans outstanding
hereunder shall not exceed the Total Revolving Credit Commitment at any time;
PROVIDED, HOWEVER, that the outstanding Competitive Bid Loans made by any Lender
may exceed its Revolving Credit Committed Amount. The Competitive Bid Loans
shall be deemed to utilize the Total Revolving Credit Commitment by an amount
equal to the Dollar Equivalent of the aggregate outstanding principal amount
thereof.
(b) COMPETITIVE BID LOAN QUOTE REQUESTS. When the Borrower wishes to
request offers to make Competitive Bid Loans under this Section 2.03, it shall
transmit to the Administrative Agent by telecopy, at its Office, notice (a
"COMPETITIVE BID LOAN QUOTE REQUEST") so as to be received no later than 10:00
a.m., Los Angeles time on (x) the fourth Business Day prior to the date of
borrowing proposed therein, in the case of a LIBOR Auction, (y) the third
Business Day prior to the date of Borrowing proposed therein, in the case of a
CD Rate Auction, or (z) the Business Day next preceding the date of borrowing
proposed therein, in the case of a Base Rate Auction or Absolute Rate Auction
(or, in any case, such other time as the Borrower and Administrative Agent may
agree). The Borrower may request offers to make Competitive Bid Loans for
different Interest Periods in a single notice; PROVIDED that the request for
each separate Interest Period shall be deemed to be a separate Competitive Bid
Loan Quote Request for a separate Competitive Bid Loan (all Competitive Bid
Loans proposed to be made at one time herein collectively referred to as a
"COMPETITIVE BID BORROWING"). Each such notice shall be substantially in the
form of Exhibit B hereto and in any case shall specify as to each Competitive
Bid Borrowing:
(i) The proposed date of such Competitive Bid Borrowing, which
shall be a Business Day;
(ii) The currency or currencies in which such Competitive
Borrowing is to be made;
(iii) The aggregate amount of such Competitive Bid Borrowing
which shall be a Dollar Equivalent of at least $5,000,000 (or a higher
integral multiple of $1,000,000)
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(to the extent practical in the case of Eurocurrency Loans), but shall
not cause the limits specified in Section 2.04 hereof to be violated;
(iv) The duration of the initial Interest Period or Periods
applicable thereto, subject to the provisions of the definition of
"Interest Period" (including without limitation that no such Interest
Period shall end after the Competitive Bid Expiration Date); and
(v) Whether the Competitive Bid Loan Quotes requested are to
set forth a LIBOR-based Margin, a Base Rate Margin, a CD Rate Margin or
an Absolute Rate.
The Borrower may not request Competitive Bid Borrowings for more than
three maturities nor request more than one type of Competitive Bid Loan in a
single Competitive Bid Borrowing. Unless the Administrative Agent otherwise
agrees, in its sole and absolute discretion, the Borrower may not submit a
request for a Competitive Bid Borrowing if it has submitted another such request
within the prior two Business Days.
(c) INVITATION FOR COMPETITIVE BID LOAN QUOTES. The Administrative
Agent shall promptly transmit to the Lenders by telecopy notice of such
Competitive Bid Loan Request, which notice shall constitute an invitation by the
Borrower to each Lender to submit Competitive Bid Loan Quotes offering to make
Competitive Bid Loans in accordance with such Competitive Bid Loan Quote
Request.
No Competitive Bid Loan Request shall be given if such request could
result in more than six Competitive Bid Loans being outstanding at any one time
unless otherwise permitted by the Administrative Agent.
(d) SUBMISSION AND CONTENTS OF COMPETITIVE BID LOAN QUOTES. (i) Each
Lender may submit one or more Competitive Bid Loan Quotes, each containing an
offer to make a Competitive Bid Loan in response to any Competitive Bid Loan
Quote Request. Each Competitive Bid Loan Quote must comply with the requirements
of this Section 2.03(d) and must be submitted to the Administrative Agent by
telecopy at its Office not later than (x) 8:00 a.m., Los Angeles time on the
third Business Day prior to the proposed date of borrowing, in the case of a
LIBOR Auction or (y) 7:00 a.m., Los Angeles time on the proposed date of
borrowing, in the case of a Base Rate Auction, CD Rate Auction or an Absolute
Rate Auction (or, in either case upon reasonable notice to the Lenders, such
other time and date as the Borrower and the Administrative Agent may agree);
PROVIDED that any Competitive Bid Loan Quote submitted by the Administrative
Agent (or an Affiliate of the Administrative Agent) in the capacity of a Lender
may be submitted, and may only be submitted, if the Administrative Agent (or
such Affiliate) notifies the Borrower of the terms of the offer or offers
contained therein not later than (x) 7:30 a.m., Los Angeles time on the third
Business Day prior to the proposed date of borrowing, in the case of a LIBOR
Auction or (y) 6:30 a.m., Los Angeles time on the proposed date of borrowing, in
the case of a Base Rate Auction, CD Rate Auction or an Absolute Rate Auction.
Subject to Sections 2.14, 2.03(r) and 4.01 hereof, any Competitive Bid Loan
Quote so made shall be irrevocable except with the written consent of the
Administrative Agent given on the written instructions of the Borrower.
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(ii) Each Competitive Bid Loan Quote shall be substantially in
the form of Exhibit C hereto and shall in any case specify:
(A) The proposed date of borrowing, the proposed currency
and the Interest Period therefor;
(B) The principal amount of the Competitive Bid Loan for
which each such offer is being made, which principal amount shall be a
Dollar Equivalent of at least $5,000,000 or a higher integral multiple
of $1,000,000; PROVIDED that the aggregate principal amount of all
Competitive Bid Loans for which a Lender submits Competitive Bid Loan
Quotes (x) may be greater than, less than or equal to the Revolving
Credit Committed Amount of such Lender but (y) may not exceed the
principal amount of the Competitive Bid Borrowing for which offers were
requested in the related Competitive Bid Loan Quote Request;
(C) In the case of a LIBOR Auction, the margin above (or,
if a negative margin is offered, below) the applicable LIBOR Rate (the
"LIBOR-BASED MARGIN") offered for each such Competitive Bid Loan,
expressed as a percentage (rounded upwards, if necessary, to the
nearest 1/10,000th of 1%) to be added to the applicable LIBOR Rate;
(D) In the case of a CD Rate Auction, the margin above
(or, if a negative margin is offered, below) the applicable CD Rate
(the "CD RATE MARGIN") offered for each such Competitive Bid Loan
expressed as a percentage (rounded upward, if necessary, to the nearest
1/10,000th of 1%) to be added to the applicable CD Rate;
(E) In the case of a Base Rate Auction, the margin above
(or, if a negative margin is offered, below) the applicable Base Rate
(the "BASE RATE MARGIN") offered for each such Competitive Bid Loan,
expressed as a percentage (rounded upward, if necessary, to the nearest
1/10,000th of 1%) to be added to the applicable Base Rate;
(F) In the case of an Absolute Rate Auction, the rate of
interest per annum, calculated on the basis of a 360-day year (rounded
upwards, if necessary, to the nearest 1/10,000th of 1%) (the "ABSOLUTE
RATE") offered for each such Competitive Bid Loan; and
(G) The identity of the quoting Lender.
(iii) No Competitive Bid Loan Quote shall contain qualifying,
conditional or similar language or propose terms other than or in addition to
those set forth in the applicable Competitive Bid Loan Quote Request and, in
particular, no Competitive Bid Loan Quote may be conditioned upon acceptance by
the Borrower of all (or some specified minimum) of the principal amount of the
Competitive Bid Loan for which such Competitive Bid Loan Quote is being made,
and the Administrative Agent shall disregard any Competitive Bid Loan Quote that
contains such language or terms or conditions or that arrives at the
Administrative Agent's Office
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after the time set forth for submission of Competitive Bid Loan Quotes in
Section 2.03(d)(i) hereof.
(e) NOTICE TO THE BORROWER. The Administrative Agent shall (x) in the
case of a LIBOR Auction, by 9:00 a.m., Los Angeles time on the day (which shall
be a Business Day) a Competitive Bid Loan Quote is submitted or (y) in the case
of a Base Rate Auction, CD Rate Auction or an Absolute Rate Auction, by 7:30
a.m., Los Angeles time on the day (which shall be a Business Day) a Competitive
Bid Loan Quote is submitted, notify the Borrower by telecopy of the terms (i) of
any Competitive Bid Loan Quote submitted by a Lender that is in accordance with
Section 2.03(d) hereof and (ii) of any Competitive Bid Loan Quote that amends,
modifies or is otherwise inconsistent with a previous Competitive Bid Loan Quote
submitted by such Lender with respect to the same Competitive Bid Loan Quote
Request. Any such subsequent Competitive Bid Loan Quote shall be disregarded by
the Administrative Agent unless such subsequent Competitive Bid Loan Quote is
submitted solely to correct a manifest error in such former Competitive Bid Loan
Quote. The Administrative Agent's notice to the Borrower shall specify (A) the
aggregate principal amount of each Competitive Bid Loan for which Competitive
Bid Loan Quotes have been received for each Interest Period specified in the
related Competitive Bid Loan Quote Request, (B) the respective principal amounts
and LIBOR - based Margins, CD Rate Margins, Base Rate Margins or Absolute Rates,
as the case may be, so offered by each Lender, identifying the Lender that made
each Competitive Bid Loan Quote and (C) if the Administrative Agent is notifying
the Borrower of more than one Competitive Bid Loan Quote for a single Interest
Period, the Administrative Agent shall arrange the Competitive Bid Loan Quotes
in ascending yield order.
(f) ACCEPTANCE AND NOTICE BY THE BORROWER. Not later than (x) 9:30
a.m., Los Angeles time on the third Business Day prior to the proposed date of
the borrowing, in the case of a LIBOR Auction or (y) 8:00 a.m., Los Angeles time
on the proposed date of the borrowing, in the case of a Base Rate Auction, CD
Rate Auction or an Absolute Rate Auction (or, in either case upon reasonable
prior notice to the Lenders, such other time and date as the Borrower and the
Administrative Agent may agree), the Borrower shall notify the Administrative
Agent by telecopy at its Office of its acceptance or nonacceptance of the
Competitive Bid Loan Quotes so notified to it pursuant to Section 2.03(e) hereof
(and the failure of the Borrower to give such notice by such time shall
constitute nonacceptance) and the Administrative Agent shall promptly notify
each affected Lender in accordance with Section 2.03(h) hereof. In the case of
acceptance, such notice shall specify the aggregate principal amount of
Competitive Bid Loan Quotes for each Interest Period that are accepted. The
Borrower may accept one or more Competitive Bid Loan Quotes in whole or in part
(PROVIDED that any Competitive Bid Loan Quote accepted in part shall be a Dollar
Equivalent of at least $5,000,000 or a higher integral multiple of $1,000,000,
to the extent practical in the case of Eurocurrency Loans); PROVIDED that:
(i) The aggregate principal amount of each Competitive Bid
Borrowing may not exceed the applicable amount set forth in the related
Competitive Bid Loan Quote Request;
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(ii) The aggregate principal amount of each Competitive Bid
Borrowing shall be a Dollar Equivalent of at least $5,000,000 (or a
higher integral multiple of $1,000,000);
(iii) Acceptance of offers may be made only in ascending yield
order of LIBOR-based Margins, CD Rate Margins, Base Rate Margins or
Absolute Rates, as the case may be; and
(iv) The Borrower shall not accept any offer where the
Administrative Agent has advised the Borrower that such offer fails to
comply with Section 2.03(d)(ii) hereof or otherwise fails to comply
with the requirements of this Agreement.
(g) ALLOCATION BY ADMINISTRATIVE AGENT. If Competitive Bid Loan Quotes
are made by two or more Lenders with the same LIBOR - based Margins, CD Rate
Margins, Base Rate Margins or Absolute Rates, as the case may be, for a greater
aggregate principal amount than the amount in respect of which Competitive Bid
Loan Quotes are accepted for the related Interest Period, the principal amount
of Competitive Bid Loans in respect of which such Competitive Bid Loan Quotes
are accepted shall be allocated by the Administrative Agent among such Lenders
as nearly as possible (in such multiples, not less than $500,000, as the
Administrative Agent may deem appropriate) in proportion to the aggregate
principal amount of such offers. If two or more such Competitive Bid Loan Quotes
cannot be allocated evenly within the limits set forth in the immediately
preceding sentence, the Administrative Agent shall have discretion to allocate a
larger share of such Competitive Bid Loans to one or more of the successful
Lenders and in making such allocation shall use reasonable efforts to take into
account previous allocations of unequal shares to one or more of such Lenders in
connection with other Competitive Bid Loans. Determinations by the
Administrative Agent of the amounts of Competitive Bid Loans to be allocated to
each such Lender shall be conclusive absent manifest error.
(h) NOTICE TO LENDERS. On the date the Borrower notifies the
Administrative Agent of its acceptance of one or more of the offers made by any
Lender or Lenders pursuant to Section 2.03(f) hereof, the Administrative Agent
shall promptly notify each Lender which has made an offer (i) of the aggregate
amount of each Competitive Bid Borrowing with respect to which the Borrower
accepted one or more Competitive Bid Loan Quotes and such Lender's share of such
Competitive Bid Borrowing or (ii) that the Borrower accepted no offers, such
notice to be by telecopy.
(i) FUNDING OF COMPETITIVE BID LOANS. Any Lender whose offer to make
any Competitive Bid Loan has been accepted shall, not later than 11:00 a.m., Los
Angeles time, on the date specified in the related Competitive Bid Loan Quote
Request for the making of such Competitive Bid Loan, make the amount of such
Competitive Bid Loan available to the Borrower at the Administrative Agent's
Office in immediately available funds. If any Lender makes a new Competitive Bid
Loan hereunder on a day on which the Borrower is to repay all or any part of an
outstanding Competitive Bid Loan from such Lender, such Lender shall apply the
proceeds of its new Competitive Bid Loan to make such repayment and only an
amount equal to the difference (if any) between the amount being borrowed and
the amount being repaid shall be made available by such Lender to the Borrower
as provided by this Section 2.03(i), or remitted
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by the Borrower to the Administrative Agent as provided in Section 2.14 hereof,
as the case may be.
(j) COMPETITIVE BID LOAN MATURITY DATES. The principal amount of each
Competitive Bid Loan shall be due and payable on the last day of the applicable
Interest Period specified in the related Competitive Bid Loan Quote Request (the
"COMPETITIVE BID LOAN MATURITY DATE").
(k) COMPETITIVE BID LOAN INTEREST PAYMENT DATES. Interest on each
Competitive Bid Loan shall be due and payable on the Competitive Bid Loan
Maturity Date thereof and thereafter on demand at the rates provided for in
Section 2.03(o), and if any Interest Period is longer than 90 days, also on each
90th day of such Interest Period.
(1) COMPETITIVE BID RECORD. The Administrative Agent shall maintain a
record of the names and addresses of Lenders that have made Competitive Bid
Loans and the principal amount of the Competitive Bid Loans owing to each Lender
from time to time together with the Competitive Bid Loan Maturity Dates and
interest rates applicable to each such Competitive Bid Loan, and other terms
applicable thereto (the "COMPETITIVE BID RECORD"). The entries in the
Competitive Bid Record shall be prima facie evidence with respect to the entries
therein.
(m) REVIEW OF COMPETITIVE BID RECORD. The Competitive Bid Record shall
be available to the Borrower or any Lender at any reasonable time and from time
to time upon reasonable prior notice.
(n) INTEREST RATES FOR COMPETITIVE BID LOANS. The outstanding principal
amount of each Competitive Bid Loan shall bear interest for each day until due
at the following rate or rates per annum:
(i) For each LIBOR-based Loan, a rate per annum (computed on
the basis of a year of 360 days and actual days elapsed) equal to the
LIBO Rate applicable to the Interest Period therefor plus the
LIBOR-based Margin quoted by the Lender making such Loan in the related
Competitive Bid Loan Quote submitted in accordance with Section 2.03(d)
hereof;
(ii) For each Base Rate Loan, a rate per annum (computed on the
basis of a year of 365 or 366 days and actual days elapsed) equal to
the Base Rate as in effect from time to time plus the Base Rate Margin
quoted by the Lender making such Loan in the related Competitive Bid
Loan Quote submitted in accordance with Section 2.03(d) hereof;
(iii) For each CD Rate Loan, a rate per annum (computed on the
basis of a year of 360 days and actual days elapsed) equal to the CD
Rate applicable to the Interest Period therefor plus the CD Rate Margin
quoted by the Lender making such Loan in the related Competitive Bid
Loan Quote submitted in accordance with Section 2.03(d) hereof;
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(iv) For each Absolute Rate Loan, a rate per annum (computed on
the basis of a year of 360 days and actual days elapsed) equal to the
Absolute Rate quoted by the Lender making such Loan in the related
Competitive Bid Loan Quote submitted in accordance with Section 2.03(d)
hereof.
(o) INTEREST AFTER MATURITY FOR COMPETITIVE BID LOANS. After the
principal amount of any Competitive Bid Loan shall have become due (by
acceleration or otherwise), such Loan shall bear interest for each day until
paid (before and after judgment) (i) until the Competitive Bid Loan Maturity
Date of the applicable Interest Period of such Loan, at a rate per annum 2%
above the rate applicable to such Loan prior to such Competitive Bid Loan
Maturity Date and (ii) thereafter at a rate per annum determined in accordance
with Section 2.15(b).
(p) COMPETITIVE BID NOTES. To the extent so requested by any Lender
through the Administrative Agent, the obligation of the Borrower to repay the
unpaid principal amount of any Competitive Bid Loans made by such Lender and to
pay interest thereon shall be evidenced by a single promissory note of the
Borrower (a "COMPETITIVE BID NOTE") in substantially the form attached hereto as
Exhibit D, with the blanks appropriately filled. The Competitive Bid Note
payable to such Lender shall be dated the Closing Date, shall bear interest as
provided in Section 2.03(n) or as otherwise provided herein, and shall be
payable to the order of the Lender named as payee therein in a maximum face
amount of the Total Revolving Credit Commitment. The Competitive Bid Note for
such Lender shall be delivered, duly executed by the Borrower to the
Administrative Agent at or prior to the funding of the first Competitive Bid
Loan made by such Lender hereunder and the Administrative Agent shall promptly
forward such Competitive Bid Note to such Lender.
The outstanding principal amount of each Competitive Bid Loan evidenced
by each Competitive Bid Note from time to time, the Competitive Bid Loan
Maturity Date of such Competitive Bid Loan and the rate of interest and the
amount of accrued and unpaid interest payable in respect thereof shall be
determined from the records of the Administrative Agent, which shall be prima
facie evidence with respect to the entries therein. In the event the holder of a
Competitive Bid Note shall assign said Competitive Bid Note, it shall attach
thereto a schedule, which shall be verified by the Administrative Agent, setting
forth the then outstanding principal amount of each Competitive Bid Loan
evidenced by such Competitive Bid Note and the Competitive Bid Loan Maturity
Date thereof.
(q) PAYMENTS. All payments to be made by the Borrower in Dollars in
respect of any Competitive Bid Loan shall be payable at 11:00 a.m., Los Angeles
time, on the day when due without presentment, demand, protest or notice of any
kind, all of which are hereby expressly waived, and an action therefor shall
immediately accrue, without setoff, counterclaim, withholding or other deduction
of any kind or nature, except for payments to a Lender subject to a withholding
deduction under Section 2.16(c) hereof. Such payments shall be made to the
Administrative Agent at its Office in Dollars in funds immediately available at
such Office. Any payment received by the Administrative Agent or such Lender
after 11:00 a.m., Los Angeles time, on any day shall be deemed to have been
received on the next succeeding Business Day. The Administrative Agent shall
distribute to the Lenders all such payments received by it from the Borrower as
promptly as practicable after receipt by the Administrative Agent. If and to the
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extent that the Administrative Agent has not forwarded to any Lender such
Lender's share of any such payment on the same Business Day as such payment is
received (or deemed received) from the Borrower, the Administrative Agent shall
pay to such Lender interest on such amount at the Federal Funds Effective Rate
for each day until such payment is made. All payments of any Competitive Bid
Loans to be made in any currency other than Dollars shall be made by payment in
that currency in immediately available and freely transferable funds by the time
required by relevant local regulation and practice in the principal financial
center in the country of such currency for value on the applicable payment date
and such payment shall be due without presentment, demand, protest or notice of
any kind, all of which are hereby expressly waived, and an action therefor shall
immediately accrue, without setoff, counterclaim, withholding or other deduction
of any kind or nature, except for payments to a Lender subject to a withholding
deduction under Section 2.16(c) hereof.
(r) MULTIPLE CURRENCY OPTION. (i) Competitive Bid Loans may be made in
any currency requested by the Borrower and acceptable to the applicable Lender
(each a "EUROCURRENCY LOAN"). If Eurocurrency Loans are to be made or are made,
the amount of such Loans shall be deemed to be, for purposes of determining
utilization of Commitments and other provisions of this Agreement, equal to the
Dollar Equivalent thereof. If the Dollar Equivalent of the sum of the all
Eurocurrency Loans outstanding on the day of any such determination plus the
outstanding Loans made in Dollars exceeds the Total Revolving Credit Commitment
as then in effect, the Administrative Agent shall immediately notify the
Borrower and the Borrower shall prepay on the Business Day following such day
Base Rate Loans and then, if necessary, Eurocurrency Loans to the extent
required so that such aggregate unpaid amount will not exceed the Total
Revolving Credit Commitment as then in effect; such prepayment being subject
however to Section 2.14(b) hereof. The Borrower may designate the Loans to be
prepaid by notice to the Administrative Agent before each such prepayment.
(ii) CHANGES IN LAW RENDERING EUROCURRENCY LOANS UNLAWFUL. In
the event that any change in Law or guideline or interpretation or application
thereof should at any time make it unlawful for any Lender to make, maintain or
fund its Eurocurrency Loans, such Lender shall promptly notify the Borrower and
the Administrative Agent thereof. Thereupon, (i) the obligation of such Lender
to make its Eurocurrency Loans shall, upon the later of the effectiveness of
such event and the receipt of such notice, be suspended for the duration of such
illegality, and (ii) the Borrower shall, on the applicable Competitive Bid Loan
Maturity Date with respect to such Eurocurrency Loans (or, if later, on the last
Competitive Bid Loan Maturity Date with respect to such Eurocurrency Loans to
end prior to the effectiveness of such change) or, in any event, if such Lender
so requests, on such earlier date as may be required by the relevant Law, prepay
or repay such Eurocurrency Loans.
SECTION 2.04. MAXIMUM AGGREGATE AMOUNT OF LOANS. No Revolving Credit
Loan or Competitive Bid Loan shall be made or requested or permitted to remain
outstanding hereunder if the making or maintenance of such Loan would cause the
Dollar Equivalent of the sum of the aggregate amount of all Loans to the
Borrower outstanding hereunder to exceed the Total Revolving Credit Commitment
as then in effect.
SECTION 2.05. [INTENTIONALLY OMITTED].
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SECTION 2.06. [INTENTIONALLY OMITTED].
SECTION 2.07. MAKING OF LOANS. Whenever the Borrower desires that the
Lenders make Revolving Credit Loans, the Borrower shall provide Standard Notice
to the Administrative Agent setting forth the following information (a separate
notice being required for each such type of Loans):
(a) The date, which shall be a Business Day, on which
such proposed Loans are to be made;
(b) The aggregate principal amount of such proposed
Loans, which shall be the sum of the principal amounts selected
pursuant to clause (c) of this Section 2.07, and, except as provided in
Section 2.06.03, which shall be at least $5,000,000 and integral
multiples of $1,000,000 in excess thereof;
(c) The interest rate Option or Options selected in
accordance with Section 2.08(a) hereof and the principal amounts
selected in accordance with Section 2.08(d) hereof of the Base Rate
Portion and each Funding Segment of the CD Rate Portion and the
Euro-Rate Portion, as the case may be, of such proposed Loans; and
(d) With respect to each such Funding Segment of such
proposed Loans, the Funding Period to apply to such Funding Segment,
selected in accordance with Section 2.08(c) hereof.
Standard Notice having been so provided, the Administrative Agent shall promptly
notify each Lender of the information contained therein and of the amount of
such Lender's Loan, calculated in accordance with Section 2.13. Unless any
applicable condition specified in Article IV hereof has not been satisfied, on
the date specified in such Standard Notice each Lender shall make the proceeds
of its Loan available to the Administrative Agent at the Administrative Agent's
Office, no later than 11:00 a.m., Los Angeles time, in funds immediately
available at such Office. The Administrative Agent will make the funds so
received available to the Borrower in funds immediately available at the
Administrative Agent's Office. If and to the extent that the Administrative
Agent does not make such funds available to the Borrower on the date specified
in such Standard Notice the Administrative Agent shall pay to each Lender
interest on the amount made available by such Lender at the Federal Funds
Effective Rate for each day until either (i) the date such funds are made
available to the Borrower or (ii) the date such amounts are returned to such
Lender.
SECTION 2.08. INTEREST RATES. (a) OPTIONAL BASES OF BORROWING. The
unpaid principal amount of the Revolving Credit Loans shall bear interest for
each day from and including the date on which funds are made available to the
Borrower by the Administrative Agent and to but excluding the date of repayment
on one or more bases selected by the Borrower from among the interest rate
options set forth below. Subject to the provisions of this Agreement the
Borrower may select different options to apply simultaneously to different
Portions of the Loans and may select different Funding Segments to apply
simultaneously to different parts of the CD Rate Portion or the Euro-Rate
Portion of the Loans. Each selection of a rate Option shall apply
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separately and without overlap to the Revolving Credit Loans as a class. The
aggregate number of Funding Segments applicable to the CD Rate Portion and the
Euro-Rate Portion of the Revolving Credit Loans at any time shall not exceed ten
unless otherwise permitted by the Administrative Agent.
(i) BASE RATE OPTION: A rate per annum (computed on the basis
of a year of 365 or 366 days and actual days elapsed) for each day
equal to the Base Rate for such day plus the Applicable Margin for such
day. The "BASE RATE" for any day shall mean the greater of (A) the
Prime Rate for such day or (B) 0.50% plus the Federal Funds Effective
Rate for such day, such interest rate to change automatically from time
to time effective as of the effective date of each change in the Prime
Rate or the Federal Funds Effective Rate.
(ii) CD RATE OPTION: A rate per annum (based on a year of 360
days and actual days elapsed) for each day during the applicable CD
Rate Funding Period equal to the CD Rate for such day plus the
Applicable Margin for such day. "CD RATE" for any day shall mean for
each Funding Segment of the CD Rate Portion corresponding to a proposed
or existing CD Rate Funding Period the rate per annum determined by the
Administrative Agent by adding
(A) the rate per annum (which shall be the same
for each day in such CD Rate Funding Period) determined in
good faith by the Administrative Agent in accordance with its
usual procedures (which determination shall be conclusive
absent manifest error) to be the arithmetic average of the
secondary market bid rates at or about 8:00 a.m., Los Angeles
time, on the first day of such CD Rate Funding Period by
dealers of recognized standing in negotiable certificates of
deposit for the purchase at face value of negotiable
certificates of deposit of major money center banks for
delivery on such day in amounts comparable to such Funding
Segment and having maturities comparable to such CD Rate
Funding Period plus
(B) the Assessment Rate.
"ASSESSMENT RATE" for any day shall mean the rate per annum
(rounded upward to the nearest 1/100 of 1%) determined in good faith by
the Administrative Agent in accordance with its usual procedures (which
determination shall be conclusive absent manifest error) to be the
maximum effective rate per annum payable by a depository institution
insured by the Federal Deposit Insurance Corporation (or any successor)
for such day as an assessment for insurance on Dollar time deposits,
exclusive of any credit that is or may be allowed against such
assessment on account of assessment payments made or to be made by such
depository institution. The CD Rate shall be adjusted automatically as
of the effective date of each change in the Assessment Rate. The CD
Rate Option shall be calculated in accordance with the foregoing if any
Lender is actually required to pay FDIC assessments or, if required to
pay such assessments, is required to pay such assessments at the
"Assessment Rate" as herein defined.
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The Administrative Agent shall give prompt notice to the
Borrower and to the Lenders of the CD Rate determined or adjusted in
accordance with the definition of CD Rate, which determination or
adjustment shall be conclusive if made in good faith.
(iii) EURO-RATE OPTION: A rate per annum (based on a year of 360
days and actual days elapsed) for each day during the applicable
Euro-Rate Funding Period equal to the Euro-Rate for such day plus, in
each case, the Applicable Margin for Euro-Rate Option for such day.
"EURO-RATE" for any day, as used herein, shall mean for each Funding
Segment of the Euro-Rate Portion corresponding to a proposed or
existing Euro-Rate Funding Period the rate per annum determined by the
Administrative Agent to be the rate of interest (which shall be the
same for each day in such Euro-Rate Funding Period) determined in good
faith by the Administrative Agent in accordance with its usual
procedures from the Reuters Screen LIBO page (which determination shall
be conclusive absent manifest error) to be the average of the rates per
annum for deposits in Dollars offered to the leading banks in the
London interbank market at approximately 11:00 a.m., London time, two
Business Days prior to the first day of such Euro-Rate Funding Period
for delivery on the first day of such Euro-Rate Funding Period in
amounts comparable to such Funding Segment and having maturities
comparable to such Funding Period.
The Administrative Agent shall give prompt notice to the
Borrower and to the Lenders of the Euro-Rate determined in accordance
with the definition of the Euro-Rate, which determination shall be
conclusive if made in good faith.
(b) APPLICABLE MARGINS. The "APPLICABLE MARGIN" with respect to the
Base Rate Option, the CD Rate Option and the Euro-Rate Option shall be
determined in accordance with the pricing grid set forth in the definition of
"Applicable Margin".
(c) FUNDING PERIODS. At any time when the Borrower shall select,
convert to or renew the CD Rate Option or the Euro-Rate Option to apply to any
part of the Loans, the Borrower shall specify one or more periods (the "FUNDING
PERIODS") during which each such Option shall apply, such Funding Periods being
as set forth below:
INTEREST RATE OPTION AVAILABLE FUNDING PERIODS
CD Rate Option 30, 60, 90 or 180 days or such
longer period as may be offered by
all of the Lenders ("CD RATE
FUNDING Period"); and
Euro-Rate Option One, two, three or six months
("EURO-RATE FUNDING PERIOD");
PROVIDED, that:
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(i) Each CD Rate Funding Period which would otherwise end on a
day which is not a Business Day shall be extended to the next
succeeding Business Day;
(ii) Each Euro-Rate Funding Period shall begin on a Business
Day, and the term "month", when used in connection with a Euro-Rate
Funding Period, shall be construed in accordance with prevailing
practices in the interbank eurodollar market at the commencement of
such Euro-Rate Funding Period, as determined in good faith by the
Administrative Agent (which determination shall be conclusive); and
(iii) In the case of Revolving Credit Loans, the Borrower may
not select a Funding Period that would end after the Revolving Credit
Maturity Date.
(d) TRANSACTIONAL AMOUNTS. Every selection of, conversion from,
conversion to or renewal of an interest rate option and every payment or
prepayment of any Loans shall be in a principal amount such that after giving
effect thereto the aggregate principal amount of the Base Rate Portion of the
Revolving Credit Loans, or the aggregate principal amount of each Funding
Segment of the CD Rate Portion or the Euro-Rate Portion of the Revolving Credit
Loans, shall be at least $5,000,000 and integral multiples of $1,000,000 in
excess thereof.
(e) CD RATE OR EURO-RATE UNASCERTAINABLE; IMPRACTICABILITY. If
(i) on any date on which a CD Rate or a Euro-Rate would
otherwise be set, the Administrative Agent (in the case of clause (A)
or (B) below) shall have determined in good faith (which determination
shall be conclusive absent manifest error) that:
(A) adequate and reasonable means do not exist
for ascertaining such CD Rate or Euro-Rate, or
(B) a contingency has occurred which materially
and adversely affects the secondary market for negotiable
certificates of deposit maintained by dealers of recognized
standing or the interbank eurodollar market, as the case may
be, or
(ii) at any time any Lender shall have determined in good faith
(which determination shall be conclusive absent manifest error) that
the making, maintenance or funding of any part of the CD Rate Portion
or the Euro-Rate Portion has been made impracticable or unlawful by
compliance by such Lender or a Notional Euro-Rate Funding Office in
good faith with any Law or guideline or interpretation or
administration thereof by any Governmental Authority charged with the
interpretation or administration thereof or with any request or
directive of any such Governmental Authority (whether or not having the
force of law);
then, and in any such event, the Administrative Agent or such Lender, as the
case may be, may notify the Borrower of such determination (and any Lender
giving such notice shall notify the Administrative Agent). Upon such date as
shall be specified in such notice (which shall not be earlier than the date such
notice is given), the obligation of each of the Lenders, in the case of clause
(i) above, or such Affected Lender, in the case of clause (ii) above, to allow
the Borrower
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to select, convert to or renew the CD Rate Option or Euro-Rate Option, as the
case may be, shall be suspended until the Administrative Agent or such Lender,
as the case may be, shall have later notified the Borrower (and any Lender
giving such notice shall notify the Administrative Agent) of the Administrative
Agent's or such Lender's determination in good faith (which determination shall
be conclusive absent manifest error) that the circumstance giving rise to such
previous determination no longer exist.
If any Lender notifies the Borrower of a determination under subsection
(ii) of this Section 2.08(e), the CD Rate Portion or the Euro-Rate Portion, as
the case may be, of the Loans of such Lender (the "AFFECTED LENDER") shall,
subject to Section 2.14(b) hereof, automatically be converted to the Base Rate
Option as of the last day of the then current Funding Period with respect to
such Loans (in the case of a determination that the making, maintenance or
funding of any CD Rate Portion or Euro-Rate Portion of such Loans is
impracticable) and the last day on which the making, maintenance or funding of
any CD Rate Portion or Euro-Rate Portion of such Loans is not unlawful (in the
case of a determination that the making, maintenance or funding of any CD Rate
Portion or Euro-Rate Portion of such Loans is unlawful) and accrued interest
thereon shall be due and payable on such date.
If at the time the Administrative Agent or an Affected Lender makes a
determination under subsection (i) or (ii) of this Section 2.08(e), as the case
may be, the Borrower previously has notified the Administrative Agent that it
wishes to select, convert to or renew the CD Rate Option or the Euro-Rate
Option, as the case may be, with respect to any proposed Loans but such Loans
have not yet been made, such notification shall be deemed to provide for
selection of, conversion to or renewal of the Base Rate Option instead of the CD
Rate Option or the Euro-Rate Option, as the case may be, with respect to such
Loans or, in the case of a determination by an Affected Lender, such Loans only
of such Affected Lender.
SECTION 2.09. CONVERSION OR RENEWAL OF INTEREST RATE OPTIONS. (a)
CONVERSION OR RENEWAL. Subject to the provisions of Section 2.14(b) hereof the
Borrower may convert any part of its Revolving Credit Loans from any interest
rate Option or Options to one or more different interest rate Options and may
renew the CD Rate Option or the Euro-Rate Option as to any Funding Segment of
the CD Rate Portion or the Euro-Rate Portion:
(i) At any time with respect to conversion from the Base Rate
Option; or
(ii) At the expiration of any Funding Period with respect to
conversions from or renewals of the CD Rate Option or the Euro-Rate
Option, as the case may be, as to the Funding Segment corresponding to
such expiring Funding Period.
Whenever the Borrower desires to convert or renew any interest rate
Option or Options, the Borrower shall provide to the Administrative Agent
Standard Notice setting forth the following information:
(w) The date, which shall be a Business Day, on which the
proposed conversion or renewal is to be made;
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(x) The principal amounts selected in accordance with Section
2.08(d) hereof of the Base Rate Portion and each Funding Segment of the
CD Rate Portion and the Euro-Rate Portion, as the case may be, to be
converted from or renewed;
(y) The interest rate Option or Options selected in accordance
with Section 2.08(a) hereof and the principal amounts selected in
accordance with Section 2.08(d) hereof of the Base Rate Portion and
each Funding Segment of the CD Rate Portion and the Euro-Rate Portion,
as the case may be, to be converted to; and
(z) With respect to each Funding Segment to be converted to or
renewed, the Funding Period selected in accordance with Section 2.08(c)
hereof to apply to such Funding Segment.
Standard Notice having been so provided, after the date specified in
such Standard Notice, interest shall be calculated upon the principal amount of
the Loans as so converted or renewed.
(b) FAILURE TO CONVERT OR RENEW. Absent due notice from the Borrower of
conversion or renewal in the circumstances described in Section 2.09(a)(ii)
hereof, any part of the CD Rate Portion or Euro-Rate Portion for which such
notice is not received shall be converted automatically to the Base Rate Option
on the last day of the expiring Funding Period.
SECTION 2.10. PREPAYMENTS GENERALLY. Whenever the Borrower desires to
prepay any part of its Loans, it shall provide Standard Notice to the
Administrative Agent setting forth the following information:
(a) The date, which shall be a Business Day, on which the
proposed prepayment is to be made;
(b) The total principal amount of such prepayment, which
shall be the sum of the principal amounts selected pursuant to clause
(c) of this Section 2.10; and
(c) The principal amounts selected in accordance with
Section 2.08(d) hereof of the Base Rate Portion and each part of each
Funding Segment of the CD Rate Portion and the Euro-Rate Portion, as
the case may be, to be prepaid.
SECTION 2.11. OPTIONAL PREPAYMENTS; MANDATORY PREPAYMENTS. (a)
OPTIONAL PREPAYMENTS. The Borrower shall have the right at its option from time
to time to prepay its Revolving Credit Loans in whole or part without premium or
penalty (subject, however, to Section 2.14(b) hereof).
(b) MANDATORY PREPAYMENTS. (i) Unless the Required Lenders otherwise
agree in writing, the Borrower shall, within 15 days after a Change in Control,
prepay in full all outstanding Loans (subject to Section 2.14(b) hereof) and
terminate, permanently and irrevocably, all existing Commitments of the Lenders
hereunder.
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(ii) If, on any day, the Dollar Equivalent of the sum of the
all Eurocurrency Loans outstanding on the day of any such determination plus the
outstanding Loans made in Dollars exceeds the Total Revolving Credit Commitment
as then in effect, the Administrative Agent shall immediately notify the
Borrower and the Borrower shall prepay on the Business Day following such day
Base Rate Loans and then, if necessary, Eurocurrency Loans to the extent
required so that such aggregate unpaid amount will not exceed the Total
Revolving Credit Commitment as then in effect; such prepayment being subject
however to Section 2.14(b) hereof. The Borrower may designate the Loans to be
prepaid by notice to the Administrative Agent before each such prepayment.
(c) GENERAL. All prepayments shall be made in accordance with Section
2.10 hereof. No prepayments shall be permitted with respect to Competitive Bid
Loans except as required by Sections 2.18 and 10.17 or (ii) with the consent of
the Lender or Lenders that have made the same.
Each Lender shall maintain in accordance with its usual practice an
account or accounts evidencing indebtedness of the Borrower to such Lender
resulting from each Loan of such Lender from time to time, including without
limitation, the amounts of principal and interest payable and paid to such
Lender from time to time under this Agreement. The entries made in the accounts
of each Lender maintained pursuant hereto shall, to the extent permitted by
applicable law, be prima facie evidence of the existence and amounts of the
obligations of the Borrower therein recorded; provided that the failure of any
Lender to maintain any such account, or any error therein, shall not in any
manner effect the obligation of the Borrower to repay (with applicable interest)
the Loans made to the Borrower by such Lender in accordance with the terms of
this Agreement.
SECTION 2.12. INTEREST PAYMENT DATES. Interest on the Base Rate
Portion shall be due and payable on each Regular Payment Date. Interest on each
Funding Segment of the CD Rate Portion shall be due and payable on the last day
of the corresponding CD Rate Funding Period and, if such CD Rate Funding Period
is longer than 90 days, also every 90th day during such CD Rate Funding Period.
Interest on each Funding Segment of the Euro-Rate Portion shall be due and
payable on the last day of the corresponding Euro-Rate Funding Period and, if
such Euro-Rate Funding Period is longer than three months, also on the last day
of every third month during such Funding Period. After maturity of any part of
the Loans (by acceleration or otherwise), interest on such part of the Loans
shall be due and payable on demand.
SECTION 2.13. PRO RATA TREATMENT. (a) CERTAIN DEFINITIONS. As used in
this Agreement, the following term has the meaning indicated:
"PRO RATA" means from or to each Lender: (i) in the case of
payments of Facility Fee, reductions pursuant to Section 2.02(c) hereof
of the Revolving Credit Committed Amounts and indemnification payments
under Section 8.07 hereof, ratably in accordance with such Lender's
Commitment Percentage; (ii) in the case of payments of principal of and
interest on, and conversions and renewals of interest rate options with
respect to, any particular Funding Segments, ratably in accordance with
such Lender's percentage share of such Funding Segment; (iii) in the
case of payments of principal and conversions and
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renewals of interest rate options with respect to, the Base Rate
Portion of some or all of the Revolving Credit Loans, ratably in
accordance with such Lender's percentage share of such Base Rate
Portion; and (iv) in the case of payments of interest for any day with
respect to the Base Rate Portion of some of all of the Revolving Credit
Loans, ratably in accordance with such Lender's percentage share of
such Base Rate Portion on such day.
(b) MAKING OF REVOLVING CREDIT LOANS. Revolving Credit Loans shall be
made by the Lenders ratably in accordance with their respective Commitment
Percentages.
(c) SEVERAL OBLIGATIONS. The failure of any Lender to make a Revolving
Credit Loan shall not relieve any other Lender of its obligation to lend
hereunder, but neither any Agent nor any Lender shall be responsible for the
failure of any other Lender to make a Revolving Credit Loan.
SECTION 2.14. ADDITIONAL COMPENSATION IN CERTAIN CIRCUMSTANCES. (a)
INCREASED COSTS OR REDUCED RETURN RESULTING FROM TAXES, RESERVES, CAPITAL
ADEQUACY REQUIREMENTS, EXPENSES, ETC. If any Law or change therein or guideline
or interpretation or application thereof by any Governmental Authority charged
with the interpretation or administration thereof or compliance with any request
or directive of any Governmental Authority (whether or not having the force of
law) adopted or made after the date hereof:
(i) subjects any Lender or any Notional Euro-Rate Funding
Office to any tax or changes the basis of taxation, to the extent such
tax or change relates to the Euro-Rate Loans or the CD Rate Loans, with
respect to this Agreement, the Notes, the Euro-Rate Loans or the CD
Rate Loans, or payments by the Borrower of principal of, or interest
on, the Euro-Rate Loans or the CD Rate Loans, from the Borrower
hereunder or under the Notes (except for taxes on the overall net
income or overall gross receipts of such Lender or such Notional
Euro-Rate Funding Office imposed by the jurisdictions (federal, state,
local and foreign) in which the Lender's principal office or Notional
Euro-Rate Funding Office is located),
(ii) imposes, modifies or deems applicable any reserve, special
deposit or similar requirement against credits or commitments to extend
credit extended by, assets (funded or contingent) of, deposits with or
for the account of, other acquisitions of funds by, such Lender or any
Notional Euro-Rate Funding Office (in connection with the Euro-Rate
Loans or the CD Rate Loans) (other than requirements expressly included
herein in the determination of the CD Rate or the Euro-Rate, as the
case may be, hereunder),
(iii) imposes, modifies or deems applicable any capital adequacy
or similar requirement (A) against assets (funded or contingent) of, or
credits or commitments to extend credit extended by, any Lender or any
Notional Euro-Rate Funding Office or (B) otherwise applicable to the
obligations of any Lender or any Notional Euro-Rate Funding Office
under this Agreement, or
(iv) imposes upon any Lender or any Notional Euro-Rate Funding
Office any other condition or expense, to the extent such condition or
expense relates to the Euro-
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Rate Loans or the CD Rate Loans, directly related to this Agreement,
the Notes or its making, maintenance or funding of any Euro-Rate or CD
Rate Loan.
and the result of any of the foregoing is reasonably determined by any Lender to
increase the cost to, reduce the income receivable by, or impose any expense
(excluding loss of margin) upon such Lender or any Notional Euro-Rate Funding
Office, as applicable, or, in the case of clause (iii) hereof, any Person
controlling a Lender, with respect to this Agreement, the Notes or the making,
maintenance or funding of any Loan (or, in the case of any capital adequacy or
similar requirement, to have the effect of reducing the rate of return on such
Lender's or controlling Person's capital, taking into consideration such
Lender's or controlling Person's policies with respect to capital adequacy) by
an amount which such Lender reasonably deems to be material (such Lender being
deemed for this purpose to have made, maintained or funded each Funding Segment
of the CD Rate Portion and the Euro-Rate Portion from a Corresponding Source of
Funds), such Lender may from time to time promptly notify the Borrower of the
amount determined in good faith (using any reasonable averaging and attribution
methods) by such Lender (which determination shall be conclusive absent manifest
error) to be necessary to compensate such Lender or such Notional Euro-Rate
Funding Office for such increase, reduction or imposition. The Borrower shall
have no obligation to reimburse a Lender under this Section 2.14(a) for any
amount with respect to any such increase, reduction or imposition which amount
is attributable to a period of more than 60 days ending prior to the date of
such Lender's first notice to the Borrower of such increase, reduction or
imposition. Each Lender will notify the Borrower and the Administrative Agent of
any event occurring after the date of this Agreement which will entitle such
Lender to compensation pursuant to this Section 2.14 as promptly as practicable
after it obtains knowledge thereof and determines to request such compensation.
Each Lender will furnish the Borrower and the Administrative Agent with a
statement setting forth in reasonable detail the basis, the manner of
calculation and the amount of each request by such Lender for compensation from
the Borrower under this Section 2.14. Such amount shall be due and payable by
the Borrower to such Lender five Business Days after such notice is given. In
the event that after the Borrower shall have paid any additional amount under
this Section 2.14(a) with respect to any Loan such Lender shall have
successfully contested such law, regulation, treaty, order, directive,
interpretation or condition, then, to the extent that such Lender is or will be
placed in the same position it was prior to the incurrence of the additional
costs received or receivable (on an after-tax basis) and its contest of such
law, regulation or other condition, such Lender shall refund to the Borrower
such additional amount or any portion thereof with respect to which such Lender
is or will be placed in such position.
(b) FUNDING BREAKAGE. In addition to the compensation required under
Section 2.14(a) hereof, the Borrower shall indemnify each Lender against any
loss or expense (excluding loss of margin) which such Lender has incurred as a
consequence of:
(i) any payment, prepayment or conversion of any part of any
Funding Segment of any CD Rate Portion or Euro-Rate Portion of the
Loans on a day other than the last day of the corresponding Funding
Period or any prepayment of any Competitive Bid Loan prior to its
maturity date (whether or not such payment, prepayment or conversion is
mandatory or automatic and whether or not such payment or prepayment is
then due),
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(ii) any attempt by the Borrower to revoke (expressly, by later
inconsistent notices or otherwise) in whole or in part any notice
stated herein to be irrevocable (the Administrative Agent having in its
sole discretion the options (A) to give effect to such attempted
revocation provided that indemnity under this Section 2.14(b) is
obtained or (B) to treat such attempted revocation as having no force
or effect, as if never made), or
(iii) any failure of the Borrower to pay when due (by
acceleration or otherwise) any principal, interest or any other amount
due hereunder or under any Note relating to a Euro-Rate Loan or a CD
Rate Loan.
If any Lender sustains or incurs any such loss or expense it shall from
time to time promptly notify the Borrower and the Administrative Agent in
writing setting forth in reasonable detail the amount determined in good faith
by such Lender (which determination shall be conclusive absent manifest error)
to be necessary to indemnify such Lender for such loss or expense. Such amount
shall be due and payable by the Borrower to the Administrative Agent for the
account of such Lender, five Business Days after such notice is given.
(c) ADDITIONAL INTEREST. (i) So long as any Lender shall be required
under regulations of the Board of Governors of the Federal Reserve System to
maintain reserves with respect to liabilities or assets consisting of or
including loans made with reference to the CD Rate, such Lender may require the
Borrower to pay, but only in respect of any period during which such reserves
shall actually be maintained by such Lender, additional interest on the unpaid
principal amount of the CD Rate Portion of the Loans, at an interest rate per
annum equal at all times during each CD Rate Funding Period to the difference
obtained by subtracting (A) the CD Rate for such CD Rate Funding Period from (B)
the rate obtained by dividing such CD Rate referred to in clause (A) above by
that percentage equal to 100% minus the CD Rate Reserve Percentage of such
Lender for such CD Rate Funding Period, payable on each date on which interest
is payable on such CD Rate Portion.
(ii) So long as any Lender shall be required under regulations
of the Board of Governors of the Federal Reserve System to maintain reserves
with respect to liabilities or assets consisting of or including Eurocurrency
Liabilities, such Lender may require the Borrower to pay, but only in respect of
any period during which such reserves shall actually be maintained by such
Lender, additional interest on the unpaid principal amount of the Euro-Rate
Portion of the Loans, at an interest rate per annum equal at all times during
each Euro-Rate Funding Period to the difference obtained by subtracting (A) the
Euro-Rate for such Euro-Rate Funding Period from (B) the rate obtained by
dividing such Euro-Rate referred to in clause (A) above by that percentage equal
to 100% minus the Euro-Rate Reserve Percentage of such Lender for such Euro-Rate
Funding Period, payable on each date on which interest is payable on such
Euro-Rate Portion.
(iii) If any Lender shall claim entitlement to any additional
amount pursuant to this Section 2.14(c), then such Lender shall deliver to the
Borrower a certificate setting forth the basis for the determination thereof as
promptly as practicable. More than one such certificate may be so delivered.
Each such certificate shall be conclusive and binding for all purposes as to the
amount due absent manifest error. The Borrower shall pay to each Lender the
amount shown as due on any such certificate within five Business Days after its
receipt of the same.
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SECTION 2.15. PAYMENTS GENERALLY; INTEREST ON OVERDUE AMOUNTS. (a)
PAYMENTS GENERALLY. All payments and prepayments to be made by the Borrower in
respect of principal, interest, fees, indemnity, expenses or other amounts due
from the Borrower hereunder or under any other Loan Document in Dollars shall be
payable at 11:00 a.m., Los Angeles time, on the day when due without
presentment, demand, protest or notice of any kind, all of which are hereby
expressly waived, and an action therefor shall immediately accrue, without
setoff, counterclaim, withholding or other deduction of any kind or nature,
except for payments to a Lender subject to a withholding deduction under Section
2.16(c) hereof. Except for payments under Sections 2.03(q), 2.14 and 10.06
hereof, such payments shall be made for the account of Lenders to the
Administrative Agent's Bancontrol Account #12334-16521 at its Office in Dollars
in funds immediately available at such Office, and payments under Sections 2.14
and 10.06 hereof shall be made to the applicable Lender at such domestic account
as it shall specify to the Borrower from time to time in funds immediately
available at such account. Any payment or prepayment received by the
Administrative Agent or such Lender after 11:00 a.m., Los Angeles time, on any
day shall be deemed to have been received on the next succeeding Business Day.
The Administrative Agent shall distribute to the Lenders all such payments
received by it from the Borrower as promptly as practicable after receipt by the
Administrative Agent. If and to the extent that the Administrative Agent has not
forwarded to any Lender such Lender's share of any such payment on the same
Business Day as such payment is received (or deemed received) from the Borrower,
the Administrative Agent shall pay to such Lender interest on such amount at the
Federal Funds Effective Rate for each day until such payment is made. Upon
termination of this Agreement and payment in full of all principal, interest,
fees, expenses and other amounts due from the Borrower hereunder or under any
other Loan Document, each Lender will promptly ▇▇▇▇ its Notes "cancelled" and
forward them to the Administrative Agent for delivery to the Borrower.
(b) INTEREST ON OVERDUE AMOUNTS. To the extent permitted by law, after
there shall have become due (by acceleration or otherwise) principal, interest,
fees, indemnity, expenses or any other amounts due from the Borrower hereunder
or under any other Loan Document, such amounts shall bear interest for each day
until paid (before and after judgment), payable on demand, at a rate per annum
based on a year of 365 or 366 days, as the case may be, and actual days elapsed
(in the case of any Portion of Loans bearing interest at the Base Rate Option)
and 360 days and actual days elapsed (in the case of any Portion of Loans
bearing interest at the CD Rate Option or the Euro-Rate Option) which for each
day shall be equal to the following:
(i) In the case of any part of the CD Rate Portion or
Euro-Rate Portion of any Loans, (A) until the end of the applicable
then-current Funding Period at a rate per annum 2% above the rate
otherwise applicable to such part, and (B) thereafter in accordance
with the following clause (ii); and
(ii) In the case of any other amount due from the Borrower
hereunder or under any other Loan Document, 2% above the then-current
Base Rate plus the Applicable Margin for Base Rate Option.
SECTION 2.16. TAXES. (a) PAYMENTS NET OF TAXES. All payments made by
the Borrower under this Agreement shall be made free and clear of, and without
reduction or withholding for
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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,
and all liabilities with respect thereto, excluding
(i) in the case of each Agent and each Lender, income or
franchise taxes imposed on such Agent or such Lender by the
jurisdiction under the laws of which such Agent or such Lender is
organized or any political subdivision or taxing authority thereof or
therein or as a result of a connection between such Agent or such
Lender and any jurisdiction other than a connection resulting solely
from this Agreement and the transactions contemplated hereby, and
(ii) in the case of each Lender, income or franchise taxes
imposed by any jurisdiction in which such Lender's lending offices
which make or book Loans are located or any political subdivision or
taxing authority thereof or therein
(all such non-excluded taxes, levies, imposts, deductions, charges or
withholdings being hereinafter called "TAXES"). If any Taxes are required to be
withheld or deducted from any amounts payable to any Agent or any Lender under
this Agreement or any other Loan Document, the Borrower shall pay the relevant
amount of such Taxes and the amounts so payable to such Agent or such Lender
shall be increased to the extent necessary to yield to such Agent or such Lender
(after payment of all Taxes) interest or any such other amounts payable
hereunder at the rates or in the amounts specified in this Agreement and the
other Loan Documents. Whenever any Taxes are paid by the Borrower with respect
to payments made in connection with this Agreement, as promptly as possible
thereafter, the Borrower shall send to the Administrative Agent for its own
account or for the account of such Lender, as the case may be, a certified copy
of an original official receipt received by the Borrower showing payment
thereof. In the event that after the Borrower shall have paid any additional
amount under this Section 2.16(a) with respect to any Loan the Lender shall have
received a refund or credit of any Taxes paid by the Borrower with respect to
payments made in connection with this Agreement, then, to the extent that such
Lender receives a refund or credit of all or a portion of such Taxes from the
Governmental Authority to whom such Taxes were paid by the Borrower, such Lender
shall refund to the Borrower such additional amount or any portion thereof with
respect to which such Lender receives such refund or credit. Nothing contained
in this paragraph (a) shall require any Lender or any Agent to make available
any of its tax returns (or any other information relating to its taxes which it
deems to be confidential).
(b) INDEMNITY. The Borrower hereby indemnifies each Agent and each of
the Lenders for the full amount of all Taxes attributable to payments by or on
behalf of the Borrower hereunder or under any of the other Loan Documents, any
such Taxes paid by such Agent or such Lender, as the case may be, any present or
future claims, liabilities or losses with respect to or resulting from any
omission of the Borrower to pay or delay in paying any Taxes (including any
incremental Taxes, interest or penalties that may become payable by such Agent
or such Lender as a result of any failure of the Borrower to pay such Taxes),
whether or not such Taxes were correctly or legally asserted. Such
indemnification shall be made within 30 days from the date such Lender or such
Agent, as the case may be, makes written demand therefor.
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(c) WITHHOLDING AND BACKUP WITHHOLDING. Each Lender that is
incorporated or organized under the laws of any jurisdiction other than the
United States or any State thereof agrees that, on or prior to the Closing Date
(or, with respect to any Lender which becomes a party to this Agreement pursuant
to Section 10.14 hereof, the Transfer Effective Date), it will furnish to the
Borrower and the Administrative Agent
(i) two valid, duly completed copies of United States Internal
Revenue Service Form 4224 or United States Internal Revenue Form 1001
or successor applicable form, as the case may be, certifying in each
case that such Lender is entitled to receive payments under this
Agreement and the other Loan Documents without deduction or withholding
of any United States federal income taxes, and
(ii) a valid, duly completed Internal Revenue Service Form W-8
or W-9 or successor applicable form, as the case may be, to establish
an exemption from United States backup withholding tax.
Each Lender which so delivers to the Borrower and the Administrative
Agent a Form 1001 or 4224 and Form W-8 or W-9 applicable forms (the "FORMS")
agrees to deliver to the Borrower and the Administrative Agent two further
copies of the Forms, or other manner of certification, as the case may be, on or
before the date that any such form expires or becomes obsolete or otherwise is
required to be resubmitted as a condition to obtaining an exemption from
withholding tax, or after the occurrence of any event requiring a change in the
most recent form previously delivered by it, and such extensions or renewals
thereof as may reasonably be requested by the Borrower and the Administrative
Agent, certifying in the case of a Form 1001 or Form 4224 that such Lender is
entitled to receive payments under this Agreement or any other Loan Document
without deduction or withholding of any United States federal income taxes,
unless in any such cases an event (including any changes in Law) has occurred
prior to the date on which any such delivery would otherwise be required which
renders all such forms inapplicable or which would prevent such Lender from duly
completing and delivering any such letter or form with respect to it and such
Lender advises the Borrower and the Administrative Agent that it is not capable
of receiving payments without any deduction or withholding of United States
federal income tax, and in the case of a Form W-8 or W-9, establishing an
exemption from United States backup withholding tax. Notwithstanding anything to
the contrary contained herein, the Borrower shall not be required to pay any
additional amounts pursuant to this Section 2.16 or pursuant to Section 2.14 if
the obligation to pay such additional amounts would not have arisen but for the
failure by any Agent or any Lender to comply with its obligations hereunder, or
if such Agent or Lender shall have delivered the appropriate Forms and such
Agent or Lender is not entitled to exemption from deduction or withholding of
U.S. federal income tax in respect of payments made by the Borrower hereunder
for any reason other than a change in U.S. law or regulations or in the official
interpretation thereof after the date of delivery of such Forms.
SECTION 2.17. FUNDING BY BRANCH, SUBSIDIARY OR AFFILIATE. (a)
NOTIONAL FUNDING. Each Lender shall have the right from time to time,
prospectively or retrospectively, without notice to the Borrower, to deem any
branch, subsidiary or affiliate of such Lender to have made, maintained or
funded any part of the Euro-Rate Portion at any time. Any branch, subsidiary or
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affiliate so deemed shall be known as a "Notional Euro-Rate Funding Office."
Such Lender shall deem any part of the Euro-Rate Portion of the Loans or the
funding therefor to have been transferred to a different Notional Euro-Rate
Funding Office if such transfer would avoid or cure an event or condition
described in Section 2.08(e)(ii) hereof or would lessen compensation payable by
the Borrower under Sections 2.14(a), 2.16(a) or 2.16(b) hereof, and provided
that such Lender determines in its reasonable discretion that such transfer
would be practicable and would not have a material adverse effect on such part
of the Loans, such Lender or any Notional Euro-Rate Funding Office (it being
assumed for purposes of such determination that each part of the Euro-Rate
Portion is actually made or maintained by or funded through the corresponding
Notional Euro-Rate Funding Office). Notional Euro-Rate Funding Offices may be
selected by such Lender without regard to such Lender's actual methods of
making, maintaining or funding Loans or any sources of funding actually used by
or available to such Lender.
(b) ACTUAL FUNDING. Each Lender shall have the right from time to time
to make or maintain any part of the Euro-Rate Portion by arranging for a branch,
subsidiary or affiliate of such Lender to make or maintain such part of the
Euro-Rate Portion. Such Lender shall have the right to hold any applicable Note
payable to its order for the benefit and account of such branch, subsidiary or
affiliate or (ii) request the Borrower to issue one or more promissory notes in
the principal amount of such Euro-Rate Portion, in substantially the form
attached hereto as Exhibit A with the blanks appropriately filled, payable to
such branch, subsidiary or affiliate and with appropriate changes reflecting
that the holder thereof is not obligated to make any additional Loans to the
Borrower. The Borrower agrees to comply promptly with any request under
subsection (ii) of this Section 2.17(b). If any Lender causes a branch,
subsidiary or affiliate to make or maintain any part of the Euro-Rate Portion
hereunder, all terms and conditions of this Agreement shall, except where the
context clearly requires otherwise, be applicable to such part of the Euro-Rate
Portion and to any note payable to the order of such branch, subsidiary or
affiliate to the same extent as if such part of the Euro-Rate Portion were made
or maintained and such note were a Revolving Credit Note payable to such
Lender's order.
SECTION 2.18. EXTENSION OF REVOLVING CREDIT MATURITY DATE. The
Revolving Credit Maturity Date may be extended with respect to a Lender for an
additional 364 day period with the express written consent of such Lender (to be
at such Lender's sole discretion) as provided below. No earlier than the date 45
days and no later than the date 40 days prior to the Revolving Credit Maturity
Date the Borrower shall, at its option, in a written notice to the
Administrative Agent request that the Revolving Credit Maturity Date be extended
for a period of 364 days. The Administrative Agent shall promptly inform the
Lenders of such request. Each Lender that agrees with such request shall deliver
to the Administrative Agent its express written consent thereto no earlier than
the date 30 days and no later than the date 27 days prior to the Revolving
Credit Maturity Date. If the aggregate amount of (i) the Revolving Credit
Commitment Amount of the Lenders so consented and (ii) the Revolving Credit
Commitment Amount to be assumed by the Replacement Lenders or the existing
Lenders (as provided below) equals or exceeds 85% of the Total Revolving Credit
Commitment in effect as of the 10th day prior to the Revolving Credit Maturity
Date then in effect, then, with respect to each Lender which has consented to an
extension of the Revolving Credit Maturity Date as provided in the immediately
preceding sentence and with respect to the Replacement Lenders, the Revolving
Credit Maturity Date shall be extended for, and shall thereafter be the date,
364 days after the then effective Revolving
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Credit Maturity Date. If any Lender notifies the Administrative Agent in writing
on or before the 27th day prior to such then effective Revolving Credit Maturity
Date that it will not consent to such Extension Request or shall not have in
writing expressly consented to any such Extension Request as provided in the
preceding sentence, then the Administrative Agent shall so notify the Borrower
and the Borrower, at its option, may replace each Nonextending Lender with
another commercial lending institution reasonable satisfactory to the
Administrative Agent (a "REPLACEMENT LENDER") and/or with one or more of the
existing Lenders by giving notice of the name of such Replacement Lender and/or
such existing Lenders to the Administrative Agent by the 15th day prior to the
then effective Revolving Credit Maturity Date. Unless either Agent shall object
to the identity of such proposed Replacement Lender (in the case of a
Replacement Lender) on or before the 10th day prior to the then effective
Revolving Credit Maturity Date, upon notice from the Administrative Agent, each
Nonextending Lender shall promptly (but in no event later than the close of
business on the then effective Revolving Credit Maturity Date) assign all of its
interests hereunder to such Replacement Lender and/or such existing Lenders in
accordance with the provisions of Section 9.14(c) hereof. Such Replacement
Lender shall have a Revolving Credit Commitment and shall have a Revolving
Credit Commitment Amount equal to the then most recently effective Revolving
Credit Commitment Amount of the related Nonextending Lender (less the amount
assumed, if any, by such existing Lenders). To the extent any Nonextending
Lender is not replaced with a Replacement Lender or the Revolving Commitment
Amount of such Nonextending Lender is not assumed by an existing Lender, on the
then effective Revolving Credit Maturity Date the Total Revolving Credit
Commitments shall be reduced by the Revolving Credit Committed Amount of each
such Nonextending Lender which is not so replaced or so assumed. If the
Revolving Credit Maturity Date with respect to a Lender is extended pursuant to
this Section 2.17, the Competitive Bid Expiration Date with respect to such
Lender shall be deemed to have been extended for, and shall be the date, not
more than 364 days after the then effective Competitive Bid Expiration Date. To
the extent the Other Credit Agreement is in effect, the "REVOLVING CREDIT
COMMITMENT AMOUNT" of a Nonextending Lender under the Other Credit Agreement
shall be replaced or assumed at the same percentage by such Replacement Lender
and/or such existing Lenders.
ARTICLE III
REPRESENTATIONS AND WARRANTIES
The Borrower hereby represents and warrants to each Agent and each
Lender as follows:
SECTION 3.01. CORPORATE STATUS. The Borrower and each Significant
Subsidiary thereof (a) is a corporation duly organized, validly existing and in
good standing under the laws of its jurisdiction of incorporation; (b) has
corporate power and authority to own its property and to transact the business
in which it is engaged or presently proposes to engage; and (c) is duly
qualified to do business as a foreign corporation and is in good standing in all
jurisdictions in which the ownership of its properties or the nature of its
activities or both makes such qualification necessary; except for matters that,
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect.
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Schedule 3.01 hereof states as of the date hereof the jurisdiction of
incorporation of the Borrower, each Significant Subsidiary and each Special
Purpose Subsidiary.
SECTION 3.02. CORPORATE POWER AND AUTHORIZATION. Each Credit Party
has the corporate power to execute, deliver and perform the Loan Documents to be
executed by it and has taken all necessary action, corporate or otherwise, to
authorize the execution, delivery and performance of this Agreement and the
other Loan Documents to be executed by it. The Borrower has the power to borrow
and has taken all necessary corporate action to authorize the borrowings
hereunder on the terms and conditions of this Agreement. No consent or approval
of any Person (including, without limitation, any stockholder of any Credit
Party), no consent or approval of any landlord or mortgagee, no waiver of any
Lien of right or distraint or other similar right and no consent, license,
approval, authorization or declaration of any governmental authority, bureau or
agency, is or will be required in connection with the execution, delivery or
performance by each Credit Party, or the validity, enforcement or priority, of
the Loan Documents to be executed by it, except as set forth on Schedule 3.02
hereto, each of which has been duly and validly obtained on or prior to the date
hereof and is now in full force and effect and is sufficient for its intended
purpose.
SECTION 3.03. EXECUTION AND BINDING EFFECT. This Agreement and each
other Loan Document to which each Credit Party is a party has been, or upon its
execution and delivery will be, duly executed and delivered by such Credit Party
and each constitutes, or upon its execution and delivery will constitute, the
valid and legally binding obligation of such Credit Party, enforceable in
accordance with its terms, except as such enforcement may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, or other similar
laws, now or hereafter in effect, relating to or affecting the enforcement of
creditors' rights generally and except that the remedy of specific performance
and other equitable remedies are subject to judicial discretion. There is no
action, suit, proceeding or investigation pending or, to the knowledge of any
Credit Party, threatened against or affecting the Borrower or any of its
Subsidiaries which questions the validity or the enforceability of any of the
Loan Documents.
SECTION 3.04. GOVERNMENTAL APPROVALS AND FILINGS. No approval, order,
consent, authorization, certificate, license, permit or validation of, or
exemption or other action by, or filing, recording or registration with, or
notice to, any Governmental Authority (collectively, "GOVERNMENTAL ACTION") is
or will be necessary in connection with execution and delivery of this Agreement
or any other Loan Document, consummation by the Credit Parties of the
transactions herein or therein contemplated, or performance of or compliance
with the terms and conditions hereof or thereof. Neither the Borrower nor any
Subsidiary thereof is subject to regulation under the Public Utility Holding
Company Act of 1935, the Federal Power Act, the Interstate Commerce Act or the
Investment Company Act of 1940 or to any Federal or state statute or regulation
limiting the Borrower's ability to incur Indebtedness for money borrowed.
Neither the Borrower nor any Subsidiary thereof is an "investment company" or a
company "controlled" by an "investment company," within the meaning of the
Investment Company Act of 1940, as amended.
SECTION 3.05. ABSENCE OF CONFLICTS. The execution and delivery by
each Credit Party of this Agreement and each other Loan Document to which it is
a party and performance by it
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hereunder and thereunder, will not violate any Law (including, without
limitation, Regulations U, T and X of the Federal Reserve Board) and will not
conflict with or result in a breach of any order, writ, injunction, ordinance,
resolution, decree, or other similar document or instrument of any court or
governmental authority, bureau or agency, domestic or foreign, or its
certificate of incorporation or by-laws or any similar constituent documents or
create (with or without the giving of notice or lapse of time, or both) a
default under or breach of any material agreement, bond, note or indenture to
which it is a party (by successor in interest or otherwise), or by which it is
bound or any of its properties or assets is affected, or result in the
imposition of any Lien of any nature whatsoever upon any of the properties or
assets owned by or used in connection with the business of the Borrower or any
of its Subsidiaries.
SECTION 3.06. AUDITED FINANCIAL STATEMENTS. The Borrower has
heretofore furnished to each Agent and each Lender consolidated balance sheets
of the Borrower and its consolidated Subsidiaries as of December 25, 1998 (as
such financial statements have been restated and filed with the Securities and
Exchange Commission) and September 24, 1999 and the related consolidated
statements of income, cash flows and changes in stockholders' equity for the
fiscal year or three fiscal quarters, as the case may be, then ended, and with
respect to such information as of December 25, 1998, as examined and reported on
by Coopers & ▇▇▇▇▇▇▇, independent certified public accountants for the Borrower,
who delivered an unqualified opinion in respect thereof. Such financial
statements (including the notes thereto) present fairly in all material respects
the financial condition of the Borrower and its consolidated Subsidiaries as of
the end of each such fiscal year or nine month period, as the case may be, and
the results of their operations and their cash flows for the fiscal years then
ended, all in conformity with GAAP, except for the absence of footnotes and for
normal year end audit adjustments in the case of the nine month statements.
SECTION 3.07. ABSENCE OF UNDISCLOSED LIABILITIES. As of the Closing
Date, neither the Borrower nor any Subsidiary of the Borrower has any liability
or obligation of any nature whatever (whether absolute, accrued, contingent or
otherwise, whether or not due), forward or long-term commitments or unrealized
or anticipated losses from unfavorable commitments, except (a) as disclosed in
the financial statements referred to in Section 3.06 hereof, (b) matters that,
individually or in the aggregate, in the Borrower's reasonable judgment, could
not reasonably be expected to have a Material Adverse Effect and (c)
liabilities, obligations, commitments and losses incurred after September 24,
1999 otherwise permitted, or not restricted, by the Previous Credit Agreement or
this Agreement. As of the Closing Date, neither the Borrower nor any Subsidiary
of the Borrower had any Indebtedness other than the Indebtedness of the Borrower
and its Subsidiaries set forth on Schedule 3.07 hereto.
SECTION 3.08. ABSENCE OF MATERIAL ADVERSE CHANGES. Except as
disclosed in the financial statements referred to in Section 3.06 hereof and for
matters covered by, or referred to in, the Exit Funding Agreement, since
September 24, 1999, there has been no material adverse change in the business,
operations, properties, assets or condition (financial or otherwise) of the
Borrower and its Subsidiaries taken as a whole.
SECTION 3.09. ACCURATE AND COMPLETE DISCLOSURE. No information
heretofore, contemporaneously or hereafter provided by or on behalf of the
Borrower or any Subsidiary
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thereof in writing to any Agent or any Lender in writing pursuant to or in
connection with any Loan Document or any transaction contemplated hereby or
thereby contains any untrue statement of a material fact or omits to state any
material fact necessary to make such information (taken as a whole) not
misleading in any material respect at such time in light of the circumstances in
which it was provided. The Borrower has disclosed to each Agent and each Lender
in writing every fact or circumstance known to the Borrower which has a Material
Adverse Effect.
SECTION 3.10. MARGIN REGULATIONS. No part of the proceeds of any Loan
hereunder will be used for the purpose of buying or carrying any "MARGIN STOCK,"
as such term is used in Regulation U of the Board of Governors of the Federal
Reserve System, as amended from time to time, or to extend credit to others for
the purpose of buying or carrying any "margin stock," in either case in a manner
which would violate or conflict with Regulation T, U, or X of the Board of
Governors of the Federal Reserve System. Neither the Borrower nor any Subsidiary
thereof is engaged in the business of extending credit to others for the purpose
of buying or carrying "margin stock." Neither the making of any Loan nor any use
of proceeds of any such Loan will violate or conflict with the provisions of
Regulation T, U or X of the Board of Governors of the Federal Reserve System, as
amended from time to time.
SECTION 3.11. SUBSIDIARIES. Schedule 3.11 hereof states as of the
Closing Date each Significant Subsidiary of the Borrower and the percentage of
outstanding shares owned by the Borrower and by each Significant Subsidiary. The
outstanding shares of each Significant Subsidiary of the Borrower have been duly
authorized and validly issued and are fully paid and nonassessable. The Borrower
and each Significant Subsidiary thereof owns beneficially and of record and has
good title to all of the shares represented by the ownership percentage shown in
such Schedule 3.11, free and clear of any Lien. There are no options, warrants,
calls, subscriptions, conversion rights, exchange rights, preemptive rights or
other rights, agreements or arrangements (contingent or otherwise) which may in
any circumstances now or hereafter obligate any Significant Subsidiary to issue
any shares of its capital stock or any other securities. As of the Closing Date,
no Significant Subsidiary has outstanding any class of preferred stock or any
class of common stock with a prior right to dividends.
SECTION 3.12. PARTNERSHIPS, ETC. As of the Closing Date, neither the
Borrower nor any Significant Subsidiary thereof is a partner (general or
limited) of any partnership, is a party to any joint venture or owns
(beneficially or of record) any equity or similar interest in any Person
(including but not limited to any interest pursuant to which the Borrower or
such Significant Subsidiary has or may in any circumstance have an obligation to
make capital contributions to, or be generally liable for or on account of the
liabilities, acts or omissions of such other Person), except for the partnership
interests and joint ventures set forth in Schedule 3.12 hereof.
SECTION 3.13. LITIGATION. There is no pending or (to the Borrower's
knowledge) threatened action, suit, proceeding or investigation by or before any
Governmental Authority against or affecting the Borrower or any Subsidiary of
the Borrower, except for (a) matters described in the financial statements
referred to in Section 3.06 hereof, and (b) matters that, individually or in the
aggregate, could not reasonably be expected to have a Material Adverse Effect.
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SECTION 3.14. ABSENCE OF EVENTS OF DEFAULT. No event has occurred and
is continuing and no condition exists which constitutes an Event of Default or
Potential Default.
SECTION 3.15. ABSENCE OF OTHER DEFAULTS. Neither the Borrower nor any
Subsidiary thereof is in default under any agreement, ordinance, resolution,
decree, bond, note, indenture, order or judgment to which it is a party (by
successor in interest or otherwise) or by which it is bound, or any other
agreement or other instrument by which any of the properties or assets owned by
it or used in the conduct of its business is affected, which individually or in
the aggregate, would have a Material Adverse Effect. The Borrower and each
Subsidiary thereof have complied and are in compliance in all respects with all
Laws, except for such instances of non-compliance that, individually or in the
aggregate, could not reasonably be expected to have a Material Adverse Effect.
SECTION 3.16. INSURANCE. The policies, binders or self-insurance
programs for fire, liability, product liability, workmen's compensation,
vehicular and other insurance currently held by or on behalf of the Borrower and
each Subsidiary thereof insure its material properties and business activities
against such losses and risks as are adequate to protect its properties in
accordance with customary industry practice when entered into or renewed. To the
best knowledge of the Borrower, as of the date hereof, all such policies,
binders and self-insurance programs are in full force and effect. As of the date
hereof, neither the Borrower nor, to the best knowledge of the Borrower, any of
its Subsidiaries has received notice from any insurer or agent of such insurer
that substantial capital improvements or other expenditures will have to be made
in order to continue such insurance and, to the best knowledge of the Borrower,
no such improvements or expenditures are required. As of the date hereof,
neither the Borrower nor, to the best knowledge of the Borrower, any of its
Subsidiaries has received notice of cancellation of any material insurance
policy or binder.
SECTION 3.17. TITLE TO PROPERTY. The Borrower and each Subsidiary
thereof has good and marketable title in fee simple to all material real
property owned or purported to be owned by it and necessary for the operation of
its business and good title to all other material property of whatever nature
owned or purported to be owned by it, including but not limited to all property
reflected in the most recent audited balance sheet referred to in Section 3.06
hereof or submitted pursuant to Section 5.01(a) hereof, as the case may be
(except as sold or otherwise disposed of in the ordinary course of business
after the date of such balance sheet or the Existing Credit Agreements for
periods prior to the Closing Date and thereafter as otherwise expressly
permitted by the Loan Documents) in each case free and clear of all Liens, other
than Permitted Liens or Liens permitted pursuant to Section 6.02 hereof.
SECTION 3.18. INTELLECTUAL PROPERTY. The Borrower and each Subsidiary
thereof owns, or is licensed or otherwise has the right to use, all the patents,
trademarks, service marks, names (trade, service, fictitious or otherwise),
copyrights, technology (including but not limited to computer programs and
software), processes, data bases and other rights, free from burdensome
restrictions, necessary to own and operate its properties and to carry on its
business as presently conducted and presently planned to be conducted without
conflict with the rights of others, except for such instances of non-compliance
that, individually or in the aggregate, could not reasonably be expected to have
a Material Adverse Effect.
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SECTION 3.19. TAXES. The Borrower and each Subsidiary thereof have
filed all Federal and other material tax returns required to be filed by it and
has not failed to pay any material taxes, or interest and penalties relating
thereto, on or before the due dates thereof except for taxes not yet due and
except for those the amount or validity of which is currently being contested in
good faith by appropriate proceedings. Except to the extent that reserves
therefor are reflected in the financial statements, to the best knowledge of the
Borrower (a) there are no material Federal, state or local tax liabilities of
the Borrower or any of its Subsidiaries due or to become due for any tax year
ended on or prior to the Closing Date relating to the Borrower or any of its
Subsidiaries, whether incurred in respect of or measured by the income of the
Borrower or any of its Subsidiaries, which are not properly reflected in the
financial statements delivered pursuant to Section 3.06, and (b) there are no
material claims pending, proposed or threatened against the Borrower or any of
its Subsidiaries for past Federal, state or local taxes, except those, if any,
as to which proper reserves in accordance with GAAP are reflected in such
financial statements.
SECTION 3.20. EMPLOYEE BENEFITS. (a) No borrowing or issuance of
Letters of Credit contemplated by this Agreement is a transaction which is
subject to the prohibitions of Section 406 of ERISA or in connection with which
a tax could be imposed pursuant to Section 4975 of the Code or a civil penalty
assessed pursuant to Section 502(i) of ERISA (assuming that monies other than
monies representing plan assets are borrowed hereunder). Neither the Borrower,
any of its Subsidiaries nor any other Person, including any fiduciary, has
engaged in any prohibited transaction (as defined in Section 4975 of the Code or
Section 406 of ERISA) which could subject any of the Benefit Plans, the
Borrower, or any Subsidiary (or any entity which they have an obligation to
indemnify) to any tax or penalty imposed under 4975 of the Code or Section
502(i) of ERISA or any other material liability under a foreign law of similar
nature which alone or together with any other item described in this Section
3.20 would have a Material Adverse Effect.
(b) Neither the Borrower nor any of its Significant Subsidiaries
(including any member of their respective Controlled Group) (i) has incurred or
expects to incur any liability under Title IV of ERISA or Section 502(g) of
ERISA or any analogous provision relating to Section 515 of ERISA or (ii) has
become subject or expects to be subject to the lien described in Section 412(n)
of the Code, which alone or together with any other item described in this
Section 3.20 would have a Material Adverse Effect.
(c) The Pension Plans do not have an "accumulated funding deficiency"
(whether or not waived) within the meaning of Section 412 of the Code or Section
302 of ERISA. No Pension Plan has benefit liabilities as defined in Section
4001(a)(16) of ERISA which exceed the assets of such Pension Plan by such an
amount that the termination of such Pension Plan alone or together with any
other item described in this Section would have a Material Adverse Effect. The
Borrower has received a favorable determination letter from the IRS with respect
to all Pension Plans except for such Pension Plans with respect to which the
failure to receive such a favorable determination would not alone or together
with any other item described in this Section 3.20 have a Material Adverse
Effect and nothing has happened since the date of such letter that has adversely
affected such qualification. There is no Lien outstanding or security interest
given in connection with a Pension Plan or under Title IV of ERISA which would
exceed the percentage limitations of Section 6.02(a) hereof. As of the date
hereof, the Borrower has
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received both IRS and PBGC approval with respect to any terminated Benefit Plans
subject to Title IV of ERISA.
(d) Neither the Borrower nor any of its Significant Subsidiaries
(including any member of their respective Controlled Group) is in default in any
material respect under any Benefit Plan and all Benefit Plans are administered
in accordance with their terms and are in all material respects in compliance
with all applicable Laws, except where any such default or failure to comply
would not alone or together with any other item described in this Section 3.20
have a Material Adverse Effect.
SECTION 3.21. ENVIRONMENTAL MATTERS. (a) The Borrower and each
Significant Subsidiary of the Borrower, to its knowledge, has been operated in
compliance with all applicable Requirements of Law, except for (i) matters set
forth in Schedule 3.21(a) hereof and (ii) matters which, individually or in the
aggregate, could not reasonably be expected to have a Material Adverse Effect.
(b) The Borrower and each Significant Subsidiary of the Borrower, to
its knowledge, has obtained all Environmental Permits required by applicable
Requirements of Law for the ownership and operation of their respective
properties, and all such Environmental Permits are in full force and effect or
the Borrower and each Significant Subsidiary of the Borrower, as the case may
be, has made all appropriate filings for issuance or renewal of such
Environmental Permits, except for (i) matters set forth in Schedule 3.21(b)
hereof, and (ii) matters which, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect.
(c) The Borrower and each Significant Subsidiary of the Borrower, to
its knowledge, is not aware of any acts, omissions, events or circumstances that
may interfere with or prevent continued compliance with the Requirements of Law
and Environmental Permits referred to in (a) and (b) above, except for (i)
matters set forth in Schedule 3.21(c) hereof, and (ii) matters which,
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect.
(d) The Borrower and each Significant Subsidiary of the Borrower will
use its best efforts to comply with all Requirements of Law and obtain all
Environmental Permits which may be legally imposed in the future in
jurisdictions in which the Borrower and each Significant Subsidiary, as the case
may be, may then be doing business; PROVIDED, HOWEVER, that the Borrower and
each Significant Subsidiary shall not be deemed to be in violation of Section
3.21 of this Agreement as a result of any failure to comply with any provisions
of such Requirements of Law and Environmental Permits (i) the applicability or
validity of which is being contested by the Borrower or any of its Significant
Subsidiaries in good faith and by appropriate proceedings, or (ii) the
noncompliance with which would not result in fines, penalties, injunctive relief
of other civil or criminal liabilities which, individually or in the aggregate,
would have a Material Adverse Effect.
(e) The Borrower and each Significant Subsidiary of the Borrower, to
its knowledge, has not received notice of any asserted or threatened claim,
action, suit, proceeding, hearing, investigation or request for information
relating to any Environmental Matter, except for
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(i) matters set forth in Schedule 3.21(e) hereof, and (ii) matters which,
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect.
(f) The Borrower and each Significant Subsidiary of the Borrower, to
its knowledge, has not received notice from any governmental authority that any
of them is a potentially responsible party under any Requirements of Law at any
disposal site containing Hazardous Materials, nor received any notice that any
lien under any Requirements of Law against any property of the Borrower or
Significant Subsidiary of the Borrower exists, except for (i) matters setting
forth in Schedule 3.21(f) hereof, and (ii) matters, which, individually or in
the aggregate, could not reasonably be expected to have a Material Adverse
Effect.
SECTION 3.22. YEAR 2000. The Borrower has (a) initiated a review and
assessment of all areas within its and each of its Subsidiaries' business and
operations (including those affected by key suppliers and vendors) that could be
adversely affected by the "Year 2000 Problem" (that is, the risk that computer
applications used by the Borrower or any of its Subsidiaries (or its key
suppliers and vendors) may be unable to recognize and perform properly
date-sensitive functions involving certain dates prior to and any date after
December 31, 1999), (ii) developed a plan and timeline for addressing the Year
2000 Problem on a timely basis, and (iii) to the date hereof, implemented that
plan in accordance with the timetable. The Borrower reasonably believes that all
computer applications (including those of its key suppliers and vendors) that
are material to its or any of its Subsidiaries' business and operations will on
a timely basis be able to perform properly date-sensitive functions for all
dates before and after January 1, 2000 (that is, be "Year 2000 compliant"),
except to the extent that a failure to do so could not reasonably be expected to
have a Material Adverse Effect.
ARTICLE IV
CONDITIONS OF LENDING
SECTION 4.01. CONDITIONS TO INITIAL LOANS. The obligation of each
Lender to make Loans on the Closing Date is subject to the satisfaction,
immediately prior to or concurrently with the making of such Loan, of the
following conditions precedent, in addition to the conditions precedent set
forth in Section 4.02 hereof:
(a) AGREEMENT; NOTES. The Administrative Agent shall have received
executed counterparts of this Agreement for each Lender, duly executed by each
Credit Party, each Agent and each Lender, and executed Revolving Credit Notes
and Competitive Bid Loan Notes conforming to the requirements hereof, duly
executed on behalf of the Borrower for each Lender requesting the same.
(b) CORPORATE PROCEEDINGS. The Administrative Agent shall have
received, with copies for each Lender, certificates by the Secretary or
Assistant Secretary of each Credit Party dated as of the Closing Date as to (i)
true copies of the articles of incorporation and by-laws (or other constituent
documents) of such Credit Party in effect on such date, (ii) true copies of all
corporate action taken by such Credit Party relative to this Agreement and the
other Loan
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Documents and (iii) the incumbency and signature of the respective officers of
such Credit Party executing this Agreement and the other Loan Documents to which
such Credit Party is a party, together with satisfactory evidence of the
incumbency of such Secretary or Assistant Secretary. The Administrative Agent
shall have received, with a copy for each Lender, certificates from the
appropriate Secretary of State or other applicable Governmental Authority dated
not more than 30 days before the Closing Date showing the good standing of each
Credit Party in its state of incorporation.
(c) FINANCIAL STATEMENTS. The Administrative Agent shall have received,
with a copy for each Lender, copies of the consolidated financial statements
referred to in Section 3.06 hereof.
(d) LEGAL OPINION OF COUNSEL TO THE CREDIT PARTIES. The Administrative
Agent shall have received, with an executed counterpart for each Lender,
opinions addressed to the Agents and each Lender, dated the Closing Date, of (i)
▇▇▇▇▇▇ ▇. ▇'▇▇▇▇▇, Esquire, Senior Vice President and General Counsel of the
Borrower, and (ii) White & Case LLP, special New York counsel to the Credit
Parties, each in a form reasonably satisfactory to the Administrative Agent.
(e) FEES, EXPENSES, ETC. All fees and other compensation required to be
paid to each Agent or the Lenders pursuant hereto or pursuant to any other
written agreement on or prior to the Closing Date shall have been paid or
received.
(f) YEAR 2000 REVIEW. The Administrative Agent shall have received and
completed the review, with results reasonably satisfactory to the Agents and
Lenders, of information confirming that (a) the Borrower and its Subsidiaries
are taking all necessary and appropriate steps to ascertain the extent of, and
successfully address, business and financial risks facing the Borrower and its
Subsidiaries as a result of what is commonly referred to as the "Year 2000
Problem" (i.e., the inability of certain computer applications to recognize
correctly and perform date-sensitive functions involving certain dates prior to
and after December 31, 1999), including risks resulting from the failure of key
vendors and customers of the Borrower and its Subsidiaries to successfully
address the Year 2000 Problem, and (b) the Borrower's and its Subsidiaries'
material computer applications and those of its key vendors and customers will,
on a timely basis, adequately address the Year 2000 Problem in all material
respects.
(g) PLEDGE. The Administrative Agent shall have received (i) executed
counterparts of the Pledge Agreement, duly executed by each Guarantor and the
collateral agent thereunder and (ii) as the collateral agent thereunder, the
collateral pledged thereunder.
(h) ADDITIONAL MATTERS. All corporate and other proceedings, and all
documents, instruments and other matters in connection with the transactions
contemplated by this Agreement and the other Loan Documents shall be reasonably
satisfactory in form and substance to each Agent.
SECTION 4.02. CONDITIONS TO ALL LOANS. The obligation of each Lender
to make any Loan (including the initial Loans) is subject to satisfaction of the
following further conditions precedent:
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(a) NOTICE. Appropriate notice of such Loan shall have been given by
the Borrower as provided in Article II hereof.
(b) REPRESENTATIONS AND WARRANTIES. Each of the representations and
warranties made by the Borrower herein shall be true and correct in all material
respects on and as of such date as if made on and as of such date (except with
respect to representations and warranties which specifically refer to an earlier
date, which shall be true and correct in all material respects as of such
earlier date), both before and after giving effect to the Loans requested to be
made on such date, except that the foregoing shall not apply to the
representations and warranties set forth in Section 3.08 hereof in the case of
any Loans the proceeds of which are used solely to repay Loans maturing on such
date.
(c) NO DEFAULTS. No Event of Default or Potential Default shall have
occurred and be continuing on such date or after giving effect to the Loans
requested to be made on such date.
(d) NO VIOLATIONS OF LAW, ETC. Neither the making nor use of the Loans
shall cause any Lender to violate or conflict with any Law.
Each request by the Borrower for any Loan (including the initial Loans) shall
constitute a representation and warranty by the Borrower that the conditions set
forth in this Section 4.02 have been satisfied as of the date of such request.
Failure of the Administrative Agent to receive notice from the Borrower to the
contrary before such Loan is made shall constitute a further representation and
warranty by the Borrower that the conditions referred to in this Section 4.02
have been satisfied as of the date such Loan is made.
ARTICLE V
AFFIRMATIVE COVENANTS
The Borrower hereby covenants to each Agent and each Lender as follows:
SECTION 5.01. BASIC REPORTING REQUIREMENTS. (a) ANNUAL AUDIT REPORTS.
The Borrower shall deliver to the Administrative Agent, with a copy for each
Lender, as soon as available, but in any event within 90 days after the last day
of each of its fiscal years, a consolidated balance sheet of the Borrower as at
such last day of the fiscal year, and the related consolidated statement of
income and retained earnings and changes in financial position, for such fiscal
year, each prepared in accordance with GAAP (except as required by any change in
accounting principles or concurred in by the Borrower's independent certified
public accountants), in reasonable detail, and, as to the financial statements,
certified without qualification (other than relating to a change in accounting
principles with which such accountants concur and other than any other
qualification which the Administrative Agent and the Required Lenders deem, in
their reasonable judgment, to be immaterial) by PriceWaterhouseCoopers LLP or
another firm of independent certified public accountants reasonably satisfactory
to the Administrative Agent as fairly presenting in all material respects the
financial position and the results of operations of the
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Borrower as at and for the year ending on such date and as having been prepared
in accordance with GAAP.
(b) QUARTERLY CONSOLIDATED REPORTS. The Borrower shall deliver to the
Administrative Agent, with a copy for each Lender, as soon as available, but in
any event within 45 days after the end of each of the Borrower's first three
fiscal quarterly periods, a consolidated balance sheet of the Borrower as of the
last day of such quarter and consolidated statement of income and retained
earnings and changes in financial position, for such quarter, and on a
comparative basis figures for the corresponding period of the immediately
preceding fiscal year, all in reasonable detail, each such statement to be
certified in a certificate of a Responsible Officer of the Borrower, as fairly
presenting in all material respects the financial position and the results of
operations of the Borrower as at such date and for such quarter and as having
been prepared in accordance with GAAP (subject to customary year-end audit
adjustments and the absence of footnotes). Such financial statement and the
financial statement provided under clause (a) above shall (so long as the
Borrower has not received a clean audit with respect to the Year 2000 Problem on
or after the end of the first fiscal quarter of the Borrower in 2000): (i)
include, or be accompanied by, a progress report as to the Year 2000 remediation
efforts of the Borrower and its Subsidiaries; and (ii) indicate whether an
auditor, regulator, or third party consultant has issued a management letter or
other communication indicating the Borrower's and/or its Subsidiaries inability
to remedy the Year 2000 Problem (to the extent not included in the Borrower's
financial statements).
(c) QUARTERLY COMPLIANCE CERTIFICATES. The Borrower shall deliver to
the Administrative Agent, with a copy for each Lender, a Quarterly Compliance
Certificate in substantially the form set forth as Exhibit F hereto, duly
completed and signed by a Responsible Officer of the Borrower concurrently with
the delivery of the financial statements referred to in subsections (a) and (b)
of this Section 5.01. Each such Quarterly Compliance Certificate shall in
addition include a listing, as of the end of the most recently completed fiscal
quarter, showing the respective amounts of Indebtedness for borrowed money of
each Subsidiary (other than any Special Purpose Subsidiary) of the Borrower
which is organized under the laws of a jurisdiction outside the United States.
To the extent such information is not included in the financial statements
delivered pursuant to Section 5.01(a) hereof, each Quarterly Compliance
Certificate with respect to the last quarter of a fiscal year shall in addition
include a listing, as of the end of such quarter, of the respective amounts of
Indebtedness for borrowed money of each Special Purpose Subsidiary of the
Borrower which is organized under the laws of a jurisdiction outside the United
States.
(d) CERTAIN OTHER REPORTS AND INFORMATION. Promptly upon their becoming
available to the Borrower, the Borrower shall deliver to the Administrative
Agent, with a copy for each Lender, a copy of (i) all regular or special
reports, registration statements and amendments to the foregoing which the
Borrower or any Subsidiary shall file with the Securities and Exchange
Commission (or any successor thereto) or any securities exchange, and (ii) all
reports, proxy statements, financial statements and other information
distributed by the Borrower to its stockholders or bondholders.
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(e) FURTHER INFORMATION. The Borrower will promptly furnish to the
Administrative Agent, with a copy for each Lender that has requested the same,
such other information and in such form as any Agent or any Lender may
reasonably request from time to time.
(f) NOTICE OF CERTAIN EVENTS. Promptly upon becoming aware of any of
the following, the Borrower shall give the Administrative Agent notice thereof,
together with a written statement of a Responsible Officer of the Borrower
setting forth the details thereof and any action with respect thereto taken or
proposed to be taken by the Borrower:
(i) Any Event of Default or Potential Default; PROVIDED,
HOWEVER, that the Borrower shall not be required to deliver notice of
any violation of any covenant contained in Article V hereof (other than
Section 5.01 hereof) during the 30 days immediately following the first
occurrence of such violation if the Borrower reasonably believes that
such violation will be cured within such 30-day period; and PROVIDED,
FURTHER, that the Borrower shall not be required to deliver notice of
any violation of any covenant contained in Section 5.01 hereof (other
than subparagraph (f)(i) thereof) during the first 10 days after the
first occurrence of such violation if the Borrower reasonably believes
that such violation will be cured within such 10-day period.
(ii) Any change in the business, operations or condition
(financial or otherwise) of the Borrower and its Subsidiaries taken as
a whole which could reasonably be expected to have a Material Adverse
Effect.
(iii) Any pending or threatened action, suit, proceeding or
investigation by or before any Governmental Authority against the
Borrower or any Subsidiary, except for matters that, if adversely
decided, individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect.
(iv) Any violation, breach or default by the Borrower or any
Subsidiary of the Borrower of or under any agreement or instrument
material to the business, operations or condition (financial or
otherwise) of the Borrower and its Subsidiaries taken as a whole which
could in the reasonable judgment of the Borrower have a Material
Adverse Effect.
(v) Any material correspondence with the PBGC, the Secretary
of Labor or any representative of the IRS with respect to any Benefit
Plan or Pension Plan, relating to an actual or threatened change or
development which would materially and adversely affect the financial
condition of the Borrower and its Subsidiaries taken as a whole; and
copies of any notices from the PBGC to the Borrower with respect to the
intent of the PBGC to institute involuntary proceedings.
(vi) Any Environmental Claim pending or threatened against the
Borrower or any Significant Subsidiary of the Borrower, or any past or
present acts, omissions, events or circumstances (including but not
limited to any dumping, leaching, deposition, removal, abandonment,
escape, emission, discharge or release of any Hazardous Material at, on
or under any facility or property now or previously owned, operated or
leased by the Borrower or any Significant Subsidiary of the Borrower)
that could form the basis of
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such Environmental Claim, which Environmental Claim, individually or in
the aggregate, could reasonably be expected to have a Material Adverse
Effect.
(vii) Any discovery or determination by the Borrower or its
Subsidiary that any computer application (including those of its
suppliers and vendors) that is material to the Borrower or any of its
Subsidiaries' business and operations will not be Year 2000 compliant
on a timely basis, except to the extent that such failure could not
reasonably be expected to have a Material Adverse Effect.
(g) VISITATION; VERIFICATION. The Borrower shall, and shall cause each
of its Subsidiaries to, permit the Lenders to make or cause to be made, at their
own expense (and with respect to the Administrative Agent on behalf of the
Lenders, after the occurrence of and during the continuance of an Event of
Default, at the Borrower's expense), inspections and audits of any of its books,
records and papers and to make extracts therefrom and copies thereof, or to make
inspections and examinations of any of its properties and facilities (including,
without limitation, any Project sites), on reasonable notice, at all such
reasonable times and as often as any Lender may reasonably require, in order to
assure that the Borrower and its Subsidiaries are and will be in compliance with
their respective obligations under the Loan Documents or to evaluate the
Lenders' investment in the then outstanding Notes. The Borrower shall have the
right to have an authorized representative present during the inspection and
examination of any of the Borrower's or any of its Subsidiaries' properties and
facilities; PROVIDED, HOWEVER, that the exercise of such right shall not delay
or hinder the Lenders' right to such inspection and examination.
The Administrative Agent shall promptly deliver to each Lender copies
of all notices received pursuant to this Section 5.01.
SECTION 5.02. INSURANCE. The Borrower shall, and shall cause each of
its Subsidiaries to, maintain, at its expense, and keep in effect with
responsible insurance companies, such liability insurance for bodily injury and
third party property damage as is customary in the case of corporations engaged
in the same or similar business or having similar properties, similarly
situated, PROVIDED, HOWEVER, that the Borrower may maintain a system of
self-insurance in accordance with sound business practice as is customary for
corporations having a similar net worth as the Borrower. The Borrower shall, and
shall cause each of its Subsidiaries to, keep and maintain, at its expense, its
material real and personal property insured against loss or damage by fire,
theft, explosion, spoilage, and all other risks ordinarily insured against by
other owners or users of such properties in similar businesses in an amount
equal to the full replacement or cash value thereof, subject to deductible
amounts which the Borrower, in its reasonable judgment, deems prudent. The
Borrower shall, and shall cause each of its Subsidiaries to, carry all insurance
required by Law to cover its obligations to the PBGC.
SECTION 5.03. PAYMENT OF TAXES AND OTHER POTENTIAL CHARGES AND
PRIORITY CLAIMS. The Borrower shall, and shall cause each Subsidiary to, pay or
discharge
(a) on or prior to the date on which penalties are
imposed by a taxing authority with respect thereto, all material taxes,
assessments and other governmental charges imposed upon it or any of
its properties;
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(b) on or prior to the date when due, all material lawful
claims of materialmen, mechanics, carriers, warehousemen, landlords and
other like Persons which, if unpaid, might result in the creation of a
Lien upon any such property; and
(c) on or prior to the date when due, all other material
lawful claims which, if unpaid, might result in the creation of a Lien
upon any such property or which, if unpaid, might give rise to a claim
entitled to priority over general creditors of the Borrower or such
Subsidiary in a case under Title 11 (Bankruptcy) of the United States
Code, as amended;
PROVIDED, that unless and until foreclosure, distraint, levy, sale or similar
proceedings shall have been commenced the Borrower or such Subsidiary need not
pay or discharge any such tax, assessment, charge or claim so long as (x) the
validity thereof is contested in good faith and by appropriate proceedings
diligently conducted and (y) such reserves or other appropriate provisions as
may be required by GAAP shall have been made therefor.
SECTION 5.04. PRESERVATION OF CORPORATE STATUS. The Borrower shall,
and shall cause each of its Significant Subsidiaries to, do, or cause to be
done, all things necessary to preserve and keep in full force and effect its
corporate existence and all permits, rights and privileges necessary for the
proper conduct of its business; PROVIDED, HOWEVER, that nothing in this Section
5.04 shall prevent the withdrawal by the Borrower or any of its Significant
Subsidiaries of its qualification as a foreign corporation in any jurisdiction
where such withdrawal could not reasonably be expected to have a Material
Adverse Effect; and PROVIDED FURTHER, that nothing in this Section 5.04 shall
prevent the Borrower or any of its Significant Subsidiaries from failing to
maintain or terminating any right, privilege or permit, if such failure or
termination, is not in violation of or will not cause an Event of Default under,
any provision of this Agreement and does not have a Material Adverse Effect.
SECTION 5.05. GOVERNMENTAL APPROVALS AND FILINGS. The Borrower shall,
and shall cause each Subsidiary to, keep and maintain in full force and effect
all Governmental Actions necessary in connection with execution and delivery of
any Loan Document, consummation of the transactions hereon or therein
contemplated, performance of or compliance with the terms and conditions hereof
or thereof or to ensure the legality, validity, binding effect, enforceability
or admissibility in evidence hereof or thereof.
SECTION 5.06. MAINTENANCE OF PROPERTIES. The Borrower shall, and
shall cause each Subsidiary to, maintain or cause to be maintained in good
repair, working order and condition the properties now or hereafter owned,
leased or otherwise possessed by it and shall make or cause to be made all
needful and proper repairs, renewals, replacements and improvements thereto so
that they are able to serve the functions for which they are currently being
used, except to the extent that the failure to do so would not have a Material
Adverse Effect.
SECTION 5.07. AVOIDANCE OF OTHER CONFLICTS. The Borrower shall not,
and shall not permit any of its Subsidiaries to, violate or conflict with, be in
violation of or conflict with, or be or remain subject to any liability
(contingent or otherwise) on account of any violation or conflict with:
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(a) any Law,
(b) its articles of incorporation or by-laws (or other
constituent documents), or
(c) any agreement or instrument to which it is party or
by which any of them or any of their respective Subsidiaries is a party
or by which any of them or any of their respective properties (now
owned or hereafter acquired) may be subject or bound),
except for matters which, individually or in the aggregate, could not reasonably
be expected to have a Material Adverse Effect.
SECTION 5.08. FINANCIAL ACCOUNTING PRACTICES. The Borrower shall, and
shall cause each of its Subsidiaries to, keep proper books of record and account
in accordance with normal business practice in which full and appropriate
entries shall be made of all dealings or transactions in relation to its
business and activities.
SECTION 5.09. USE OF PROCEEDS. The Borrower shall apply the proceeds
of Loans hereunder for payment of all obligations of the Borrower under the
Existing Credit Agreements, and for the general corporate purposes of the
Borrower and its Subsidiaries. The Borrower shall not use the proceeds of any
Loans hereunder directly or indirectly for any unlawful purpose or in any manner
inconsistent with any other provision of any Loan Document.
SECTION 5.10. CONTINUATION OF OR CHANGE IN BUSINESS. The Borrower and
each of its Significant Subsidiaries shall continue to engage in substantially
the same lines of business conducted and operated during the present and
preceding fiscal year and reasonably related extensions thereof, and the
Borrower shall not, and shall not permit any Significant Subsidiary to,
substantially engage in any other unrelated businesses.
SECTION 5.11. CONSOLIDATED TAX RETURN. The Borrower shall not, and
shall not suffer any of its Subsidiaries to, file or consent to the filing of
any consolidated income tax return with any Person other than the Borrower and
its Subsidiaries.
SECTION 5.12. FISCAL YEAR. The Borrower shall not, and shall not
suffer any of its Subsidiaries to, change its fiscal year or fiscal quarter
except in accordance with GAAP.
SECTION 5.13. ERISA. The Borrower shall, and shall cause each of its
Subsidiaries to, as soon as possible and, in any event, within 10 days after the
Borrower knows or has reason to know that a Reportable Event has occurred with
respect to a Pension Plan, that a transaction prohibited under ERISA, the Code
or a foreign law of similar nature has occurred resulting in a material
liability to a Benefit Plan, the Borrower or any of its Subsidiaries (or any
entity which they have an obligation to indemnify), that an accumulated funding
deficiency has been incurred or an application is to be or has been made to the
Secretary of the Treasury for a waiver of the minimum funding standard with
respect to an accumulation funding deficiency of $1,000,000 or more, that a
failure to make timely contributions to a Pension Plan may give or has given
rise to a lien in a material amount, that an amendment to a Pension Plan may
require or requires the granting of a security interest in a material amount,
that proceedings are likely to be or have been
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instituted to terminate a Pension Plan, or that the Borrower, any of its
Significant Subsidiaries or a member of their respective Controlled Group will
or may incur any material liability under Section 502(g) or any analogous
provision relating to Section 515 or Title IV of ERISA, the Borrower will
deliver to the Administrative Agent a certificate of a Responsible Officer
setting forth details as to such occurrence and action, if any, which the
Borrower, such Subsidiary or the respective member of their Controlled Group is
required or proposes to take, together with any notices required or proposed to
be filed with or by the Borrower, such Subsidiary or the member of their
respective Controlled Group, the PBGC or the plan administrator with respect
thereto. For purposes of this Section, an item is material if alone or taken
with any other item in this Section, it results in a liability of $1,000,000 or
more. Copies of any notices required to be delivered to the Administrative Agent
hereunder shall be delivered not later than 10 days after the later of the date
such notice has been filed with the IRS or the PBGC or received by the Borrower,
any of its Subsidiaries or members of their respective Controlled Group. Upon
the request of the Administrative Agent or any of the Lenders made from time to
time, the Borrower will deliver a copy of the most recent actuarial report and
annual report completed with respect to any Benefit Plan and any other financial
information the Borrower has with respect to the Benefit Plan.
SECTION 5.14. RATINGS. In the event that the Borrower has no rated
senior unsecured long-term debt outstanding, the Borrower will request ▇▇▇▇▇'▇
to assign the Borrower a "hypothetical senior long-term debt rating" and will
request S&P to assign the Borrower an "issuer credit rating," such request to be
made (i) not later than thirty days after delivery to the Administrative Agent
of the financial statements called for by Section 5.01(a) hereof and, in
addition, (ii) not later than thirty days after instructions by the Required
Lenders to make such request, which instructions may be given no more frequently
than once during any six-month period.
SECTION 5.15. SUBSIDIARY GUARANTY. Obligations hereunder shall at all
times be guaranteed by ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ USA Corporation, ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Energy
International, Inc. and ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Energy Corporation by the execution and
delivery of this Agreement by such Subsidiaries. If at the end of any fiscal
quarter of the Borrower, (i) the unconsolidated assets of the Borrower plus the
assets of the Guarantors constitute less than 90% of the consolidated domestic
total assets of the Borrower and its consolidated Subsidiaries or (ii) the
unconsolidated net income for such fiscal quarter of the Borrower plus the net
income for such fiscal quarter of the Guarantors constitute less than 90% of the
consolidated domestic net income of the Borrower and its consolidated
Subsidiaries for such quarter, then the Borrower shall designate (x) one or more
Material Domestic Subsidiaries and (y) to the extent the designation provided in
clause (x) does not make up the short-fall in clause (i) or (ii) above, one or
more other domestic Subsidiaries, so that assets and net income of such one or
more Material Domestic Subsidiaries and such one or more other domestic
Subsidiaries, together with such item of the existing Guarantors, constitute 90%
of the consolidated domestic total assets and net income, respectively of the
Borrower and its consolidated Subsidiaries. The Borrower shall deliver to the
Administrative Agent, together with the Quarterly Compliance Certificate
required under Section 5.01(c), a schedule setting forth the assets and net
income of each Guarantor and the consolidated domestic assets and the
consolidated domestic net income of the Borrower and its consolidated
Subsidiaries. If a Material Domestic Subsidiary or any other domestic Subsidiary
is
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required to become a Guarantor, unless the Required Lenders otherwise agree, the
Borrower shall, promptly (i) cause such Subsidiary to execute a Subsidiary
Guaranty Agreement, (ii) cause such Subsidiary to deliver documentation similar
to that described in Sections 4.01(b) and (d) relating to the authorization for,
execution and delivery of, and validity of such Subsidiary's obligations as a
Guarantor under the Guaranty in form and substance satisfactory to the
Administrative Agent. Except as otherwise required or permitted by the
Indenture, the Guarantors' obligations under the Guaranty shall at all times be
secured by the pledge of the "Collateral" (as defined in the Pledge Agreement)
pursuant to the Pledge Agreement. Without limiting the restrictions set forth in
Section 6.07, a merger of a Guarantor into the Borrower or into another
Guarantor shall not constitute a violation of this Section 5.15 so long as the
Guaranty of the surviving entity, in the case of a merger into another
Guarantor, remains in effect.
ARTICLE VI
NEGATIVE COVENANTS
The Borrower hereby covenants to each Agent and each Lender as follows:
SECTION 6.01. FINANCIAL COVENANTS. (a) CONSOLIDATED FIXED CHARGES
COVERAGE RATIO. The Consolidated Fixed Charges Coverage Ratio shall be greater
than (i) 2.25 to 1 for each period of four consecutive fiscal quarters of the
Borrower ending after the Closing Date and prior to January 1, 2001 and (ii)
thereafter 2.40 to 1; PROVIDED, HOWEVER, for the period of four consecutive
fiscal quarters of the Borrower ending September 24, 1999, the Consolidated
Fixed Charges Coverage Ratio shall be greater than 1.75 to 1.0 rather than 2.25
to 1.0 for such period. For the purpose of this Section 6.01(a) only, all
calculations of the Consolidated Fixed Charges Coverage Ratio shall exclude all
interest expense associated with the obligations of the Borrower in respect of
the $95,000,000 Series 1999C Bonds and $18,000,000 Series 1999D Bonds under the
Exit Funding Agreement for the periods occurring after the date of the Exit
Funding Agreement and through the end of Borrower's second fiscal quarter in its
fiscal year 2001 to the extent that such interest would otherwise have been
included as Consolidated Adjusted Interest Expense.
(b) CONSOLIDATED LEVERAGE RATIO. The Consolidated Leverage Ratio shall
not at the end of any fiscal quarter of the Borrower ending after the Closing
Date exceed 0.50 to 1.00 PROVIDED, HOWEVER, that in the calculation of
Indebtedness solely for purposes of this Section 6.01(b), (i) Consolidated
Indebtedness shall not include (to the extent otherwise included therein)
indebtedness for money borrowed incurred solely for the purpose of hedging
foreign currency exchange risk for which the sole source of repayment is a cash
collateral deposit, (ii) Consolidated Indebtedness shall not include
Indebtedness of any Special Purpose Subsidiary, (iii) with respect to Guarantees
of obligations of any Special Purpose Subsidiary other than Guarantees solely
for completion or operation of the related Project, an amount shall be included
in Consolidated Indebtedness of the Borrower equal to the lesser of the
Indebtedness of such Special Purpose Subsidiary so Guaranteed and the amount of
such Guarantee, (iv) with respect to Guarantees of completion or operation
obligations of any Special Purpose Subsidiary, an amount
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shall be included in Consolidated Indebtedness of the Borrower equal to 25% of
the lesser of the outstanding amount of the Indebtedness of such Special Purpose
Subsidiary so Guaranteed and the maximum amount payable by the Borrower pursuant
to such Guarantee (after giving effect to (and without duplication of) any
Guarantee of obligations of such Special Purpose Subsidiaries included in clause
(iii) above) until completion of the Project and operation thereof in accord
with the operating standards required under the terms of the financing agreement
of the Indebtedness of such Special Purpose Subsidiary, after which time no
amount shall be included in such calculation, except that if at any time such
Special Purpose Subsidiary is in default of its obligations (until such default
is remedied or cured) under the financing agreement of such Indebtedness and the
Borrower is obligated to make payments pursuant to such Guarantee, the amount to
be included shall be 25% of the outstanding amount of the Indebtedness of such
Special Purpose Subsidiary, and (v) Consolidated Indebtedness shall be
calculated as if the Trust Preferred was not outstanding; and PROVIDED, FURTHER,
that in the calculation of Consolidated Indebtedness of the Borrower solely for
the purposes of this Section 6.01(b), an amount shall be included on account of
letters of credit equal to monetary damages, if any, which are due but unpaid
according to the terms of any Project documents to which the beneficiary of such
letter of credit is entitled for the purpose of this Section 6.01(b) only, all
calculations of the Consolidated Leverage Ratio shall exclude from the
definition of Consolidated Indebtedness the obligation of the Borrower in
respect of the $95,000,000 Series 1999C Bonds and $18,000,000 Series 1999D Bonds
under the Exit Funding Agreement for the periods prior to and through the end of
the Borrower's second fiscal quarter of 2001.
(c) For the purpose of Sections 6.01(a) and (b) only, all calculations
of the Consolidated Fixed Charges Coverage Ratio and the Consolidated Leverage
Ratio shall exclude up to $37,652,000 pre-tax charges to earnings that were
taken by the Borrower in its third fiscal quarter of 1999 for cost realignment
and up to $227,200,000 pre-tax charges to earnings taken by the Borrower in its
third fiscal quarter and to be taken in its fourth fiscal quarter of 1999
associated with the ▇▇▇▇▇▇▇ Facility.
SECTION 6.02. LIENS. The Borrower shall not and shall not permit any
of its Subsidiaries to create, or assume or permit to exist, any Lien on any of
the properties or assets of the Borrower or any of its Subsidiaries (other than
any Special Purpose Subsidiary), whether now owned or hereafter acquired except:
(a) ERISA Liens and Liens not otherwise permitted under
this Section 6.02 securing Indebtedness and other obligations of the
Borrower or any of its Subsidiaries which Indebtedness and other
obligations and, in the case of ERISA Liens, the amount of the ERISA
Liens, in the aggregate at any time outstanding, does not exceed 15% of
the Consolidated Net Worth of the Borrower;
(b) Liens by the Borrower or a Subsidiary thereof on
property or assets securing all or part of the purchase price or
construction cost thereof (hereinafter referred to individually as a
"PURCHASE MONEY SECURITY INTEREST"); PROVIDED, HOWEVER, that:
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(i) Such Purchase Money Security Interest is
created before or within 180 days after the purchase of, or
the completion of construction of, such property or assets by
the Borrower or such Subsidiary;
(ii) The transaction in which any Purchase Money
Security Interest is proposed to be created is not then
prohibited by this Agreement;
(iii) Any Purchase Money Security Interest shall
attach only to the property or asset so acquired or
constructed in such transaction (and the proceeds thereof) or
any addition thereto or replacement thereof and shall not
extend to or cover any other assets or properties of the
Borrower or any of its Subsidiaries; and
(iv) The Indebtedness secured or covered by any
Purchase Money Security Interest together with any other
Indebtedness secured by the property or asset acquired shall
not exceed 100% of the lesser of the cost or fair market value
of the property or asset acquired or constructed and shall not
be renewed, extended or prepaid from the proceeds of any
borrowing by the Borrower or any of its Subsidiaries;
(c) Liens on the property or assets of the Borrower and
its Subsidiaries in existence immediately prior to the Closing Date as
listed on Schedule 6.02 hereto, PROVIDED that no such Lien is spread to
cover any additional property after the Closing Date and the amount of
Indebtedness secured thereby is not increased, PROVIDED that the
maturity of such Indebtedness may be extended or renewed;
(d) Liens on all or any part of the property or the
assets of any Subsidiary in favor of the Borrower or any other
Subsidiary (other than a Special Purpose Subsidiary) as security for
the Indebtedness owing to the Borrower or such other Subsidiary;
(e) Liens (whether or not assumed) existing on property
or assets at the time of purchase thereof by the Borrower or any
Subsidiary, PROVIDED that: (i) such Lien is not created in
contemplation of the purchase of such property by the Borrower or such
Subsidiary, (ii) such Lien is confined solely to the property so
purchased, improvements thereto and proceeds thereof and (iii) the
aggregate amount secured by all Liens permitted by this Section 6.02(e)
shall not at any time exceed $10,000,000; and
(f) Permitted Liens.
SECTION 6.03. INDEBTEDNESS. The Borrower shall not, and shall not
permit any Subsidiary to, at any time create, incur, assume or suffer to exist
or have outstanding any Indebtedness if, immediately after giving effect to such
Indebtedness and the receipt and application of any proceeds thereof, there
would exist an Event of Default or Potential Default hereunder, or any
Indebtedness of any domestic Subsidiary (other than a Special Purpose
Subsidiary) other than (i) Indebtedness set forth on Schedule 3.07 hereof and
refinancings and renewals thereof (provided that the amount of such Indebtedness
so refinanced or renewed shall not exceed the lesser of (x) the amount of such
Indebtedness as of the date hereof or (y) the amount of such
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Indebtedness at the time of refinancing or renewal), (ii) intercompany
Indebtedness between or among the Borrower and its Subsidiaries, (iii)
Indebtedness of domestic Subsidiaries (other than Special Purpose Subsidiaries)
not otherwise permitted under clauses (i) or (ii) above which in the aggregate
at any time does not exceed $20,000,000 and (iv) the Guaranty hereunder, the
"Guaranty" under the Other Credit Agreement and the Guarantee of the Borrower's
obligations in connection with securities issued under the Indenture.
Notwithstanding the foregoing, the Borrower may create, incur, assume or suffer
to exist obligations with regard to $95,000,000 1999C Bonds and $18,000,000
1999D Bonds under the Exit Funding Agreement.
SECTION 6.04. LOANS, ADVANCES AND CERTAIN INVESTMENTS. The Borrower
shall not, and shall not permit any Subsidiary to, at any time make or suffer to
exist or remain outstanding any Investment in any Special Purpose Subsidiary
other than Investments by the Borrower and its Subsidiaries in Special Purpose
Subsidiaries which do not exceed, in the aggregate at any time, 50% of the
Borrower's Consolidated Net Worth. For the purposes of this Section 6.04, the
Borrower's Consolidated Net Worth shall not include any amount on account of the
Borrower's Trust Preferred.
SECTION 6.05. CHANGES IN BUSINESS. The Borrower shall not, and shall
not permit any Significant Subsidiary to, (a) liquidate or dissolve itself (or
suffer any liquidation or dissolution) (other than into the Borrower or any
other Significant Subsidiary), or (b) convey, sell, assign, transfer or
otherwise dispose of any capital stock of or other ownership interest in any
Significant Subsidiaries (other than Special Purpose Subsidiaries) held by it
(other than to the Borrower or any other Significant Subsidiary), PROVIDED that
(i) so long as no Default or Event of Default has occurred and is continuing or
would result therefrom, the Borrower may in any fiscal year convey, sell,
assign, transfer or otherwise dispose of capital stock or other ownership
interest in one or more Significant Subsidiaries which did not account for an
aggregate of 10% of the consolidated assets of the Borrower at the end of the
prior fiscal year and (ii) notwithstanding anything to the contrary in this
Section 6.05, the Borrower may dispose of its ownership interest in the ▇▇▇▇▇▇▇
Subsidiaries.
SECTION 6.06. AMENDMENT OF CERTAIN DOCUMENTS. The Borrower shall not,
and shall not permit any Significant Subsidiary to, modify, amend, supplement or
terminate, or agree to modify, amend, supplement or terminate its certificate of
incorporation or by-laws or any other constituent documents, in any manner which
would materially and adversely affect the interests of any of the Lenders
hereunder.
SECTION 6.07. MERGERS; ACQUISITIONS. The Borrower shall not, and
shall not permit any of its Significant Subsidiaries to, merge or consolidate
with any Person; PROVIDED, HOWEVER, that the Borrower or any Significant
Subsidiary thereof may merge with another Person if (i) in the case of a merger
involving the Borrower, the Borrower is the surviving corporation, (ii) in the
case of a merger involving a Significant Subsidiary, a Subsidiary of the
Borrower or, if the Borrower is also party to such merger, the Borrower, is the
surviving corporation, and (iii) after giving effect to such merger no Potential
Default or Event of Default would then exist; and PROVIDED FURTHER, that
notwithstanding anything to the contrary in this Section 6.07, the Borrower may
dispose of its ownership interest in the ▇▇▇▇▇▇▇ Subsidiaries.
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SECTION 6.08. ERISA OBLIGATIONS. The Borrower shall not, and shall
not permit any of its Subsidiaries to, engage in a transaction in connection
with which the Benefit Plans, the Borrower, any of its Subsidiaries or any
entity which they have an obligation to indemnify could be subject to liability
for either a civil penalty assessed pursuant to Section 502(i) or 502(1) of
ERISA or a tax imposed by Section 4975 of the Code or any other material
liability Plan or Benefit Plan, take any other action with respect to any such
Pension Plan or Benefit Plan if such termination or other action could result in
liability, or take any action or fail to take any action which could result in
withdrawal liabilities under Title IV of ERISA or liability under Section 502(g)
of ERISA or any analogous provision relating to Section 515 of ERISA; fail to
make any payments on a timely basis which are required under applicable Law
(including Section 412 of the Code) to be paid as contributions to Pension
Plans; incur an accumulated funding deficiency (as defined in Section 302 of
ERISA and Section 412 of the Code), whether or not waived, with respect to any
Pension Plan; amend any Pension Plan in a manner which would require the
granting of a security interest to maintain the continued qualification of such
Pension Plan under Section 401(a)(29) of the Code, if, in any case described
herein, or together with any other event described herein, such action, failure
to act, event or transaction would (i) result in an ERISA Lien exceeding the
percentage limitations of Section 6.02(a) or (ii) have a Material Adverse
Effect.
SECTION 6.09. PRINCIPAL FOREIGN AFFILIATES. The Borrower shall not
permit any of its Principal Foreign Affiliates to create, assume or permit to
exist any Indebtedness the terms of which, prior to a payment default
thereunder, would restrict dividends to be paid with respect to the consolidated
net income of such Affiliate for any fiscal year by more than 40% of the
consolidated net income of such Affiliate for such fiscal year. For purposes of
this Section, "Principal Foreign Affiliates" shall mean ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Limited
(Reading), ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ France, S.A., ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Italiana, S.p.A., ▇▇▇▇▇▇
▇▇▇▇▇▇▇ Iberia, S.A., ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Energia, S.A. and their respective
successors and any other foreign Affiliate of the Borrower which in the most
recent fiscal year of the Borrower accounted for more than 10% of the
consolidated assets of the Borrower and its Subsidiaries or which accounted for
more than 5% of the consolidated income of the Borrower and its Subsidiaries for
the most recent fiscal year of the Borrower; PROVIDED, HOWEVER, that with
respect to such foreign Affiliate created or acquired after the date hereof, if
thereafter such entity, in a fiscal year, accounts for more than 10% of the
consolidated assets of the Borrower and its Subsidiaries or accounts for more
than 5% of the consolidated income of the Borrower and its Subsidiaries in such
fiscal year, it shall be deemed to be a Principal Foreign Affiliate for such
fiscal year.
SECTION 6.10. CERTAIN AGREEMENTS. The Borrower will not become or be
a party to any agreement or instrument relating to Indebtedness for borrowed
money (other than the Exit Funding Agreement and agreements and instruments
relating to Indebtedness for borrowed money in an aggregate principal amount not
exceeding $15,000,000 (individually or in the aggregate with respect to such
agreements and instruments) at any time outstanding and other than (with respect
to debt securities offered and sold in a public offering in a principal amount
not exceeding $500,000,000 ($175,000,000 of which is outstanding under the
Borrower's Trust Preferred)) the Indenture between the Borrower and ▇▇▇▇▇▇ Trust
and Savings Bank, as Trustee, as amended and supplemented from time to time (the
"INDENTURE"), filed as an exhibit to the Borrower's Registration Statement on
Form S-3 (registration no. 33-61809)) which contains any
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covenant or event of default which could result in such Indebtedness becoming or
being declared to be due and payable prior to its stated maturity (including by
a requirement for purchase or prepayment) upon the occurrence of an event or
condition which is not an event or condition the occurrence of which could cause
the Loans to become or be declared to be (other than pursuant to Section 7.01(f)
hereto) due and payable prior to their stated maturity, unless the Borrower
shall make an "Amendment Offer" (as hereinafter defined); PROVIDED that this
covenant shall not be violated by (i) an agreement to pay the principal of and
interest on such Indebtedness in accordance with its terms or to provide to the
holders of such Indebtedness or an agent or trustee for such holders any
information which the Borrower is obligated to provide to the Lender or an Agent
hereunder or (ii) any agreement or instrument relating to Indebtedness on
account of Capitalized Lease or secured by Purchase Money Security Interest, any
covenant or event of default of which principally relates to the use, condition
or disposition of the property financed or acquired or constructed with such
Indebtedness. As used herein, an "Amendment Offer" is an effective offer by the
Borrower to the Administrative Agent to amend this Agreement, which offer shall
be made no later than ten days after the Borrower becoming party to an agreement
or instrument referred to in the first sentence of this Section 6.10, to amend
this Agreement (without deleting or overriding any term or provision of this
Section 6.10) in a way that the first sentence of this Section would not
otherwise be applicable to such agreement or instrument. The Administrative
Agent, if so instructed by the Required Lenders, shall accept or decline such
Amendment Offer within thirty days thereof, and a failure to so respond shall be
deemed a declination of such Amendment Offer.
SECTION 6.11. RESTRICTED PAYMENTS. The Borrower shall not, and shall
not suffer or permit any Subsidiary to, declare or make any Stock Payment;
except that (i) any wholly-owned Subsidiary may declare and make dividend
payments or other distributions to the Borrower or to another wholly-owned
Subsidiary; (ii) any non-wholly-owned Subsidiary may declare and make dividend
payments or other distribution to its shareholders or other equity holders
generally so long as the Borrower or its respective Subsidiary which owns the
equity interest in the Subsidiary paying such dividends or other distributions
receives at least its proportionate share thereof (based upon its relative
holdings of the equity interest in the Subsidiary paying such dividends or other
distributions and taking into account the relative preferences, if any, of the
various classes of equity interest of such Subsidiary); (iii) the Borrower and
any Subsidiary may declare and make dividend payments or other distributions, in
each case, payable solely in its stock; and (iv) the Borrower and any Subsidiary
may declare, pay or make cash Stock Payments so long as no Event of Default then
exist or would result therefrom.
SECTION 6.12. TRANSACTIONS WITH AFFILIATES. The Borrower will not,
and will not permit any of its Subsidiaries to, enter into any transaction or
series of related transactions, whether or not in the ordinary course of
business, with any Affiliate of the Borrower or any of its Subsidiaries, other
than on terms and conditions substantially as favorable to the Borrower or such
Subsidiary as would be obtainable by the Borrower or such Subsidiary at the time
in a comparable arm's-length transaction with a Person other than an Affiliate.
Notwithstanding the foregoing, the provisions of this Section 6.12 shall not
prohibit (i) Stock Payments permitted under Section 6.11 hereof, (ii) loans and
other advances that may from time to time be made to directors, officers and/or
employees of the Borrower or any of its Subsidiaries in the ordinary course of
business, (iii) customary fees paid to directors of the Borrower and its
Subsidiaries,
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(iv) the entering into, and making payments under, employment agreements,
employee benefit plans, indemnification provisions and other similar
compensatory arrangements with directors, officers and/or employees of the
Borrower and its Subsidiaries in the ordinary course of business and (v)
transactions between or among the Borrower and its Subsidiaries to the extent
that such transactions are not otherwise prohibited by the terms of this
Agreement.
SECTION 6.13. CAPITAL EXPENDITURES. The Borrower shall not, and shall
not permit any of its Subsidiaries (other than Special Purpose Subsidiaries) to,
make any Capital Expenditures, except that during any fiscal year of the
Borrower, the Borrower and its Subsidiaries (other than Special Purpose
Subsidiaries) may make Capital Expenditures so long as the aggregate amount of
such Capital Expenditures does not exceed $75,000,000 in such fiscal year.
"CAPITAL EXPENDITURES" shall mean any expenditure for fixed or capital assets
(including, without limitation, expenditures for maintenance and repairs which
are capitalized in accordance with GAAP and Capitalized Lease Obligations).
ARTICLE VII
DEFAULTS
SECTION 7.01. EVENTS OF DEFAULT. An Event of Default shall mean the
occurrence or existence of one or more of the following events or conditions
(for any reason, whether voluntary, involuntary or effected or required by Law):
(a) The Borrower shall fail to pay when due principal of any Loan.
(b) The Borrower shall fail to pay when due interest on any Loan, any
fees, indemnity or expenses, or any other amount due hereunder or under any
other Loan Document and such failure shall have continued for a period of five
Business Days.
(c) Any representation or warranty made or deemed made by the Borrower
or any Subsidiary of the Borrower in or pursuant to any Loan Document or in any
certificate delivered thereunder, or any statement made by the Borrower or any
Subsidiary of the Borrower in any financial statement, certificate, report,
exhibit or document furnished by the Borrower or any Subsidiary of the Borrower
to any Agent or any Lender pursuant to or in connection with any Loan Document,
shall prove to have been false or misleading in any material respect as of the
time when made or deemed made (including by omission of material information
necessary to make such representation, warranty or statement not misleading).
(d) The Borrower shall default in the performance or observance of any
covenant contained in Article VI hereof which shall remain unremedied for a
period of five days after the occurrence thereof or the Borrower shall default
in the observance of any covenant contained in Section 5.01(f) hereof.
(e) The Borrower shall default in the performance or observance of any
other covenant, agreement or duty under this Agreement or any other Loan
Document and such default shall have
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continued for a period of 30 days after notice of such default from the
Administrative Agent to the Borrower.
(f) (i) The Borrower or any Guarantor (other than a Special Purpose
Subsidiary) or any Significant Subsidiary (other than a Special Purpose
Subsidiary) of the Borrower shall fail to perform or observe any term, condition
or covenant of any bond, note, debenture, loan or letter of credit agreement,
indenture, guaranty, trust agreement, mortgage or similar instrument to which
the Borrower or any such Guarantor (other than Special Purpose Subsidiary) or
any such Significant Subsidiary (other than a Special Purpose Subsidiary) is a
party or by which it is bound, or by which any of its properties or assets may
be affected (a "DEBT INSTRUMENT"), so that, as a result of any such failure to
perform, the Indebtedness included therein or secured or covered thereby may at
the time be declared due and payable prior to the date on which such
Indebtedness would otherwise become due and payable; or (ii) any event or
condition referred to in any Debt Instrument shall occur or fail to occur, so
that, as a result thereof, the Indebtedness included therein or secured or
covered thereby may at such time be declared due and payable prior to the date
on which such Indebtedness would otherwise become due and payable; or (iii) the
Borrower or any Guarantor (other than Special Purpose Subsidiary) or any
Significant Subsidiary of the Borrower (other than any Special Purpose
Subsidiary) shall fail to pay any Indebtedness when due, pursuant to demand
under any Debt Instrument or otherwise, subject to any applicable grace period
or shall fail to make any payment required to be made under the Exit Funding
Agreement when due; PROVIDED, HOWEVER, that the provisions of this Section
7.01(f) shall not be applicable to Indebtedness or any Debt Instrument or Debt
Instruments which relate to or evidence Indebtedness which, on the date this
Section 7.01(f) would otherwise be applicable thereto, is in the principal
amount of less than $10,000,000 (or its equivalent in any foreign currencies) in
the aggregate.
(g) One or more final, non-appealable judgments for the payment of
money shall have been entered against the Borrower or any Significant Subsidiary
(other than a Special Purpose Subsidiary), which judgment or judgments exceed
$15,000,000 (or its equivalent in any foreign currencies) in the aggregate, and
such judgment or judgments shall have remained unpaid, undischarged and unstayed
for a period of sixty consecutive days.
(h) One or more final, non-appealable writs or warrants of attachment,
garnishment, execution, distraint or similar process exceeding in value the
aggregate amount of $15,000,000 (or its equivalent in any foreign currencies)
shall have been issued against the Borrower or any Significant Subsidiary (other
than a Special Purpose Subsidiary) or any of their respective properties and
shall have remained undischarged and unstayed for a period of sixty consecutive
days.
(i) This Agreement or any term or provision hereof shall cease to be in
full force and effect, or any Credit Party shall, or shall purport to,
terminate, repudiate, declare voidable or void or otherwise contest, this
Agreement or any term or provision thereof or any obligation or liability of the
Credit Parties hereunder.
(j) (i) Any Pension Plan is terminated pursuant to Section 4041 or 4042
of ERISA and the benefit liabilities exceed the assets based upon the
assumptions used by the PBGC on plan
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termination by an amount such that the termination of such Pension Plan would
have a Material Adverse Effect; (ii) the Borrower or any of its Subsidiaries (or
a member of their respective Controlled Group) incur a liability under Section
4062, 4063 or 4064 of ERISA for an amount that such liability would materially
and adversely affect the financial condition of the Borrower and its
Subsidiaries taken as a whole; or (iii) any other event or events shall occur
with respect to any employee benefit plan whether or not subject to ERISA which
individually or in the aggregate results in a Material Adverse Effect.
(k) The obligations of the Borrower hereunder shall at any time cease
to be "SENIOR DEBT" as defined in the Exit Funding Agreement.
(l) A proceeding shall have been instituted in respect of the Borrower
or any Significant Subsidiary (other than a Special Purpose Subsidiary)
(i) seeking to have an order for relief entered in respect of
such Person, or seeking a declaration or entailing a finding that such
Person is insolvent or a similar declaration or finding, or seeking
dissolution, winding-up, charter revocation or forfeiture, liquidation,
reorganization, arrangement, adjustment, composition or other similar
relief with respect to such Person, its assets or its debts under any
Law relating to bankruptcy, insolvency, relief of debtors or protection
of creditors, termination of legal entities or any other similar Law
now or hereafter in effect, or
(ii) seeking appointment of a receiver, trustee, liquidator,
assignee, sequestrator or other custodian for such Person or for all or
any substantial part of its property
and such proceeding shall result in the entry, making or grant of any such order
for relief, declaration, finding, relief or appointment, or such proceeding
shall remain undismissed and unstayed for a period of 60 consecutive days.
(m) The Borrower or any Significant Subsidiary (other than a Special
Purpose Subsidiary) shall voluntarily suspend transaction of its business; shall
make a general assignment for the benefit of creditors; shall institute (or fail
to controvert in a timely and appropriate manner) a proceeding described in
Section 7.01(l)(i) hereof, or (whether or not any such proceeding has been
instituted) shall consent to or acquiesce in any such order for relief,
declaration, finding or relief described therein; shall institute (or fail to
controvert in a timely and appropriate manner) a proceeding described in Section
7.01(l)(ii) hereof, or (whether or not any such proceeding has been instituted)
shall consent to or acquiesce in any such appointment or to the taking of
possession by any such custodian of all or any substantial part of its or his
property; shall dissolve, wind-up, revoke or forfeit its charter (or other
constituent documents) or liquidate itself or any substantial part of its
property; or shall take any corporate or similar action in furtherance of any of
the foregoing.
SECTION 7.02. CONSEQUENCES OF AN EVENT OF DEFAULT. (a) If an Event of
Default specified in subsections (a) through (k) of Section 7.01 hereof, or in
subsections (l) and (m) with respect to a Significant Subsidiary, shall occur
and be continuing or shall exist, then, in addition to all other
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rights and remedies which any Agent or any Lender may have hereunder or under
any other Loan Document, at law, in equity or otherwise, the Lenders shall be
under no further obligation to make Loans hereunder, and the Administrative
Agent may, and upon the written request of the Required Lenders shall, by notice
to the Borrower, from time to time do any or all of the following:
(i) Declare the Commitments terminated, whereupon the
Commitments will terminate and any fees hereunder shall be immediately
due and payable without presentment, demand, protest or further notice
of any kind, all of which are hereby waived, and an action therefor
shall immediately accrue.
(ii) Declare the unpaid principal amount of the Loans, interest
accrued thereon and all other Obligations to be immediately due and
payable without presentment, demand, protest or further notice of any
kind, all of which are hereby waived, and an action therefor shall
immediately accrue.
(b) If an Event of Default specified in subsection (l) or (m) of
Section 7.01 hereof shall occur or exist with respect to the Borrower, then, in
addition to all other rights and remedies which any Agent or any Lender may have
hereunder or under any other Loan Document, at law, in equity or otherwise, the
Commitments shall automatically terminate and the Lenders shall be under no
further obligation to make Loans, and the unpaid principal amount of the Loans,
interest accrued thereon and all other Obligations shall become immediately due
and payable, without presentment, demand, protest or notice of any kind, all of
which are hereby waived, and an action therefor shall immediately accrue.
ARTICLE VIII
THE AGENTS
SECTION 8.01. APPOINTMENT. Each Lender hereby irrevocably appoints
Bank of America National Trust and Savings Association to act as Administrative
Agent for such Lender under this Agreement and the other Loan Documents. Each
Lender hereby irrevocably authorizes the Administrative Agent to take such
action on behalf of such Lender under the provisions of this Agreement and the
other Loan Documents, and to exercise such powers and to perform such duties, as
are expressly delegated to or required of the Administrative Agent by the terms
hereof or thereof, together with such powers as are reasonably incidental
thereto. Bank of America National Trust and Savings Association hereby agrees to
act as Administrative Agent on behalf of the Lenders on the terms and conditions
set forth in this Agreement and the other Loan Documents, subject to its right
to resign as provided in Section 8.10 hereof. Each Lender hereby irrevocably
authorizes the Administrative Agent to execute and deliver each of the Loan
Documents and to accept delivery of such of the other Loan Documents as may not
require execution by the Administrative Agent. Each Lender agrees that the
rights and remedies granted to the Administrative Agent under the Loan Documents
shall be exercised exclusively by the Administrative Agent, and that no Lender
shall have any right individually to exercise any such right or remedy, except
to the extent expressly provided herein or therein.
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SECTION 8.02. GENERAL NATURE OF AGENTS' DUTIES. Notwithstanding
anything to the contrary elsewhere in this Agreement or in any other Loan
Document:
(a) No Agent shall have duties or responsibilities except
those expressly set forth in this Agreement and the other Loan
Documents, and no implied duties or responsibilities on the part of any
Agent shall be read into this Agreement or any Loan Document or shall
otherwise exist.
(b) The duties and responsibilities of each Agent under
this Agreement and the other Loan Documents shall be mechanical and
administrative in nature, and no Agent shall have a fiduciary
relationship in respect of any Lender.
(c) Each Agent is and shall be solely the agent of the
Lenders. No Agent assumes, and shall not at any time be deemed to have,
any relationship of agency or trust with or for, or any other duty or
responsibility to, the Borrower, any Subsidiary of the Borrower or any
other Person (except only for its relationship as agent for, and its
express duties and responsibilities to, the Lenders as provided in this
Agreement and the other Loan Documents).
(d) No Agent shall be under any obligation to take any
action hereunder or under any other Loan Document if such Agent
believes in good faith after consultation with counsel that taking such
action may conflict with any Law or any provision of this Agreement or
any other Loan Document, or may require such Agent to qualify to do
business in any jurisdiction where it is not then so qualified.
SECTION 8.03. EXERCISE OF POWERS. Each Agent shall take any action of
the type specified in this Agreement or any other Loan Document as being within
such Agent's rights, powers or discretion in accordance with directions from the
Required Lenders (or, to the extent this Agreement or such Loan Document
expressly requires the direction or consent of some other Person or set of
Persons, then instead in accordance with the directions of such other Person or
set of Persons). In the absence of such directions, each Agent shall have the
authority (but under no circumstances shall be obligated), in its sole
discretion, to take any such action, except to the extent this Agreement or such
Loan Document expressly requires the direction or consent of the Required
Lenders (or some other Person or set of Persons), in which case such Agent shall
not take such action absent such direction or consent. Any action or inaction
pursuant to such direction, discretion or consent shall be binding on all the
Lenders. No Agent shall have any liability to any Person as a result of (x) any
Agent acting or refraining from acting in accordance with the directions of the
Required Lenders (or other applicable Person or set of Persons), (y) any Agent
refraining from acting in the absence of instructions to act from the Required
Lenders (or other applicable Person or set of Persons), whether or not such
Agent has discretionary power to take such action, or (z) any Agent taking
discretionary action it is authorized to take under this Section.
SECTION 8.04. CERTAIN PROVISIONS. Notwithstanding anything to the
contrary elsewhere in this Agreement or any other Loan Document:
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(a) No Agent shall be liable for any action taken or
omitted to be taken by it under or in connection with this Agreement or
any other Loan Document, unless caused by its own gross negligence or
willful misconduct.
(b) No Agent shall be responsible for (i) the execution,
delivery, effectiveness, enforceability, genuineness, validity or
adequacy of this Agreement or any other Loan Document, (ii) any
recital, representation, warranty, document, certificate, report or
statement in, provided for in, or received under or in connection with,
this Agreement or any other Loan Document or (iii) any failure of the
Borrower or any Subsidiary of the Borrower or Lender to perform any of
their respective obligations under this Agreement or any other Loan
Document.
(c) No Agent shall be under any obligation to ascertain,
inquire or give any notice relating to (i) the performance or
observance of any of the terms or conditions of this Agreement or any
other Loan Document on the part of the Borrower or any Subsidiary of
the Borrower, (ii) the business, operations, condition (financial or
otherwise) or prospects of the Borrower or any other Person, or (iii)
except to the extent set forth in Section 8.05(f) hereof, the existence
of any Event of Default or Potential Default.
(d) No Agent shall be under any obligation, either
initially or on a continuing basis, to provide any Lender with any
notices, reports or information of any nature, whether in its
possession presently or hereafter, except for such notices, reports and
other information expressly required by this Agreement or any other
Loan Document to be furnished by such Agent to such Lender.
SECTION 8.05. ADMINISTRATION BY THE AGENTS. (a) Any Agent may rely in
good faith upon any notice or other communication of any nature (written or
oral, including but not limited to telephone conversations, whether or not such
notice or other communication is made in a manner permitted or required by this
Agreement or any Loan Document) purportedly made by or on behalf of the proper
party or parties, and no Agent shall have any duty to verify the identity or
authority of any Person giving such notice or other communication.
(b) Each Agent may consult with legal counsel (including, without
limitation, in-house counsel for such Agent or in-house or other counsel for the
Borrower), independent public accountants and any other experts selected by it
from time to time, and such Agent shall not be liable for any action taken or
omitted to be taken in good faith by it in accordance with the advice of such
counsel, accountants or experts.
(c) Each Agent may conclusively rely upon the truth of the statements
and the correctness of the opinions expressed in any certificates or opinions
furnished to such Agent in accordance with the requirements of this Agreement or
any other Loan Document. Whenever any Agent shall deem it necessary or desirable
that a matter be proved or established with respect to the Borrower or any
Lender, such matter may be established by a certificate of the Borrower or
Lender, as the case may be, and such Agent may conclusively rely upon such
certificate
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(unless other evidence with respect to such matter is specifically prescribed in
this Agreement or another Loan Document).
(d) Any Agent may fail or refuse to take any action unless it shall be
indemnified to its reasonable satisfaction from time to time against any and all
amounts, liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature which
may be imposed on, incurred by or asserted against such Agent by reason of
taking or continuing to take any such action.
(e) Any Agent may perform any of its duties under this Agreement or any
other Loan Document by or through agents or attorneys-in-fact. No Agent shall be
responsible for the negligence or misconduct of any agents or attorneys-in fact
selected by it with reasonable care.
(f) No Agent shall be deemed to have any knowledge or notice of the
occurrence of any Event of Default or Potential Default unless such Agent has
actual knowledge or has received notice from a Lender or the Borrower referring
to this Agreement, describing such Event of Default or Potential Default, and
stating that such notice is a "notice of default." If any Agent receives such a
notice, such Agent shall give prompt notice thereof to the other Agent and each
Lender.
SECTION 8.06. LENDER NOT RELYING ON AGENTS OR OTHER LENDERS. Each
Lender acknowledges as follows:
(a) No Agent nor any other Lender has made any
representations or warranties to it, and no act taken hereafter by any Agent or
any other Lender shall be deemed to constitute any representation or warranty by
such Agent or such other Lender to it.
(b) It has, independently and without reliance upon any
Agent or any other Lender, and based upon such documents and information as it
has deemed appropriate, made its own credit and legal analysis and decision to
enter into this Agreement and the other Loan Documents.
(c) It will, independently and without reliance upon any
Agent or any other Lender, and based upon such documents and information as it
shall deem appropriate at the time, make its own decisions to take or not take
action under or in connection with this Agreement and the other Loan Documents.
SECTION 8.07. INDEMNIFICATION. Each Lender agrees to reimburse and
indemnify each Agent and its directors, officers, employees and agents (to the
extent not reimbursed by the Borrower and without limitation of the obligations
of the Borrower to do so), Pro Rata, from and against any and all amounts,
losses, liabilities, claims, damages, expenses, obligations, penalties, actions,
judgments, suits, costs or disbursements of any kind or nature (including,
without limitation, the fees and disbursements of counsel for such Agent or such
other Person in connection with any investigative, administrative or judicial
proceeding commenced or threatened, whether or not such Agent or such other
Person shall be designated a party thereto) that may at any time be imposed on,
incurred by or asserted against such Agent or such other
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Person as a result of, or arising out of, or in any way related to or by reason
of, this Agreement, any other Loan Document, any transaction from time to time
contemplated hereby or thereby, or any transaction financed in whole or in part
or directly or indirectly with the proceeds of any Loan, PROVIDED that no Lender
shall be liable for any portion of such amounts, losses, liabilities, claims,
damages, expenses, obligations, penalties, actions, judgments, suits, costs or
disbursements resulting solely from the gross negligence or willful misconduct
of such Agent or such other Person, as finally determined by a court of
competent jurisdiction.
SECTION 8.08. AGENTS IN THEIR INDIVIDUAL CAPACITIES. With respect to
its Commitments and the obligations owing to it, each Agent shall have the same
rights and powers under this Agreement and each other Loan Document as any other
Lender and may exercise the same as though it were not an Agent, and the terms
"Lenders," "holders of Notes" and like terms shall include each Agent in its
individual capacity as such. Each Agent and its affiliates may, without
liability to account, make loans to, accept deposits from, acquire debt or
equity interests in, act as trustee under indentures of, and engage in any other
business with, the Borrower and any stockholder, Subsidiary or Affiliate of the
Borrower, as though such Agent were not an Agent hereunder.
SECTION 8.09. HOLDERS OF NOTES. Each Agent may deem and treat the
Lender which is payee of a Note as the owner and holder of such Note for all
purposes hereof unless and until a Transfer Supplement with respect to the
assignment or transfer thereof shall have been filed with the Administrative
Agent in accordance with Section 10.14 hereof. Any authority, direction or
consent of any Person who at the time of giving such authority, direction or
consent is shown in the Register as being a Lender shall be conclusive and
binding on each present and subsequent holder, transferee or assignee of any
Note or Notes payable to such Lender or of any Note or Notes issued in exchange
therefor.
SECTION 8.10. SUCCESSOR AGENTS. Any Agent may resign at any time by
giving 30 days' written notice thereof to the Lenders and the Borrower. Any
Agent may be removed by the Required Lenders at any time by giving 10 days'
prior written notice thereof to such Agent, the other Lenders and the Borrower.
Upon any such resignation or removal, the Borrower shall have the right to
appoint a successor Agent; PROVIDED, that the Required Lenders or the remaining
Agents shall have the right, acting reasonably, to disapprove such successor
Agent. If no successor Agent shall have been so appointed and consented to, and
shall have accepted such appointment, within 30 days after such notice of
resignation or removal, then any of the remaining Agents shall succeed to the
obligations of such Agent hereunder. Each successor Agent shall be a commercial
bank or trust company organized or licensed under the laws of the United States
of America or any State thereof and having a combined capital and surplus of at
least $1,000,000,000. Upon the acceptance by a successor Agent of its
appointment as Agent hereunder, such successor Agent shall thereupon succeed to
and become vested with all the properties, rights, powers, privileges and duties
of the former Agent, without further act, deed or conveyance. Upon the effective
date of resignation or removal of a retiring Agent, such Agent shall be
discharged from its duties under this Agreement and the other Loan Documents,
but the provisions of this Agreement shall inure to its benefit as to any
actions taken or omitted by it while it was Agent under this Agreement. If and
so long as no successor Agent shall have been appointed, then any notice or
other communication required or permitted to be given by the
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retiring Agent shall be sufficiently given if given by the Required Lenders, all
notices or other communications required or permitted to be given to the Agent
shall be given to each Lender, and all payments to be made to the retiring Agent
shall be made directly to the Borrower or Lender for whose account such payment
is made.
SECTION 8.11. CALCULATIONS. No Agent shall be liable for any
calculation, apportionment or distribution of payments made by it in good faith.
If such calculation, apportionment or distribution is subsequently determined to
have been made in error, the sole recourse of any Lender to whom payment was due
but not made shall be to recover from the other Lenders any payment in excess of
the amount to which they are determined to be entitled or, if the amount due was
not paid by the Borrower, to recover such amount from the Borrower.
SECTION 8.12. FUNDING BY ADMINISTRATIVE AGENT. Unless the
Administrative Agent shall have been notified in writing by any Lender not later
than the close of business on the day before the day on which Loans are
requested by the Borrower to be made that such Lender will not make its ratable
share of such Loans, the Administrative Agent may assume that such Lender will
make its ratable share of the Loans, and in reliance upon such assumption the
Administrative Agent may (but in no circumstances shall be required to) make
available to the Borrower a corresponding amount. If and to the extent that any
Lender fails to make such payment to the Administrative Agent on such date, such
Lender shall pay such amount on demand (or, if such Lender fails to pay such
amount on demand, the Borrower shall pay such amount on demand), together with
interest, for the Administrative Agent's own account, for each day from and
including the date of the Administrative Agent's payment to and including the
date of repayment to the Administrative Agent (before and after judgment) at the
Federal Funds Effective Rate for the first day and thereafter at the rate or
rates per annum applicable to such Loans. All payments to the Administrative
Agent under this Section shall be made to the Administrative Agent at its Office
in Dollars in funds immediately available at such Office, without set-off,
withholding, counterclaim or other deduction of any nature.
SECTION 8.13. SYNDICATION AGENT AND DOCUMENTATION AGENT. Nothing in
this Agreement shall impose upon the Syndication Agent or the Documentation
Agent, in their respective capacities as such, any duty or responsibility
whatsoever.
ARTICLE IX
GUARANTY
SECTION 9.01. THE GUARANTY. In order to induce the Lenders to enter
into this Agreement and to extend credit hereunder to the Borrower and in
recognition of the direct benefits to be received by the Borrower and each
Guarantor from the proceeds of the Loans to the Borrower, each Guarantor hereby
agrees with the Lenders as follows: each Guarantor hereby unconditionally and
irrevocably guarantees as primary obligor and not merely as surety the full and
prompt payment when due, whether upon maturity, by acceleration or otherwise, of
any and all of the Guaranteed Obligations to the Creditors. If any or all of the
Guaranteed Obligations to the Creditors becomes due and payable hereunder, each
Guarantor unconditionally promises to
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pay such Guaranteed Obligations to the Creditors in the same currency in which
such Guaranteed Obligations are denominated, or order, on demand, together with
any and all reasonable expenses which may be incurred by the Administrative
Agent or the Creditors in collecting any of the Guaranteed Obligations.
SECTION 9.02. BANKRUPTCY. Additionally, each Guarantor
unconditionally and irrevocably guarantees the payment of any and all of the
Guaranteed Obligations to the Creditors whether or not then due or payable by
the Borrower upon the occurrence in respect of the Borrower of any of the events
specified in Section 7.01(l) or (m), and unconditionally and irrevocably
promises to pay such Guaranteed Obligations to the Creditors, or order, on
demand, in the same currency in which such Guaranteed Obligations are
denominated.
SECTION 9.03. NATURE OF LIABILITY. The liability of each Guarantor
hereunder is exclusive and independent of any security for or other guaranty of
the Guaranteed Obligations whether executed by such Guarantor, any other
guarantor or by any other party, and the liability of each Guarantor hereunder
shall not be affected or impaired by (a) any direction as to application of
payment by the Borrower or by any other party, or (b) any other continuing or
other guaranty, undertaking or maximum liability of a guarantor or of any other
party as to the Guaranteed Obligations of the Borrower, or (c) any payment on or
in reduction of any such other guaranty or undertaking, or (d) any dissolution,
termination or increase, decrease or change in personnel by any Borrower, or (e)
any payment made to the Administrative Agent or the other Creditors on the
indebtedness which the Administrative Agent or such other Creditors repay the
Borrower pursuant to court order in any bankruptcy, reorganization, arrangement,
moratorium or other debtor relief proceeding (the Guaranty shall be reinstated
in the case of any such disgorgement), and each Guarantor waives any right to
the deferral or modification of its obligations hereunder by reason of any such
proceeding.
SECTION 9.04. INDEPENDENT OBLIGATION. The obligations of each
Guarantor hereunder are independent of the obligations of any other guarantor or
the Borrower, and a separate action or actions may be brought and prosecuted
against each Guarantor whether or not action is brought against any other
guarantor or the Borrower and whether or not any other Guarantor or the Borrower
be joined in any such action or actions. Each Guarantor waives, to the fullest
extent permitted by law, the benefit of any statute of limitations affecting its
liability hereunder or the enforcement thereof. Any payment by the Borrower or
other circumstance which operates to toll any statute of limitations as to the
Borrower shall operate to toll the statute of limitations as to each Guarantor.
SECTION 9.05. AUTHORIZATION. Each Guarantor authorizes the Creditors
without notice or demand (except as shall be required by applicable law and
cannot be waived), and without affecting or impairing its liability hereunder,
from time to time to:
(a) change the manner, place or terms of payment of,
and/or change or extend the time of payment of, renew, increase,
accelerate or alter, any of the Guaranteed Obligations (including any
increase or decrease in the rate of interest thereon), any security
therefor, or any liability incurred directly or indirectly in respect
thereof, and the
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guaranty herein made shall apply to the Guaranteed Obligations as so
changed, extended, renewed or altered;
(b) take and hold security for the payment of the
Guaranteed Obligations and sell, exchange, release, surrender, realize
upon or otherwise deal with in any manner and in any order any property
by whomsoever at any time pledged or mortgaged to secure, or howsoever
securing, the Guaranteed Obligations or any liabilities (including any
of those hereunder) incurred directly or indirectly in respect thereof
or hereof, and/or any offset there against;
(c) exercise or refrain from exercising any rights
against the Borrower or others or otherwise act or refrain from acting;
(d) release or substitute any one or more endorsers,
guarantors, the Borrower or other obligors;
(e) settle or compromise any of the Guaranteed
Obligations, any security therefor or any liability (including any of
those hereunder) incurred directly or indirectly in respect thereof or
hereof, and may subordinate the payment of all or any part thereof to
the payment of any liability (whether due or not) of the Borrower to
its creditors other than the Creditors;
(f) apply any sums by whomsoever paid or howsoever
realized to any liability or liabilities of the Borrower to the
Creditors regardless of what liability or liabilities of the Borrower
remain unpaid;
(g) consent to or waive any breach of, or any act,
omission or default under, this Agreement or any of the instruments or
agreements referred to herein, or otherwise amend, modify or supplement
this Agreement or any of such other instruments or agreements; and/or
(h) take any other action which would, under otherwise
applicable principles of common law, give rise to a legal or equitable
discharge of such Guarantor from its liabilities under this Section 9.
SECTION 9.06. RELIANCE. It is not necessary for the Creditors to
inquire into the capacity or powers of the Borrower or the officers, directors,
partners or agents acting or purporting to act on its behalf, and any Guaranteed
Obligations made or created in reliance upon the professed exercise of such
powers shall be guaranteed hereunder.
SECTION 9.07. SUBORDINATION. Any of the indebtedness of the Borrower
now or hereafter owing to a Guarantor is hereby subordinated to the Guaranteed
Obligations of the Borrower owing to the Creditors; and if the Administrative
Agent so requests at a time when an Event of Default exists, all such
indebtedness of the Borrower to a Guarantor shall be collected, enforced and
received by the Borrower for the benefit of the Creditors and be paid over to
the Administrative Agent on behalf of the Creditors on account of the Guaranteed
Obligations of the
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Borrower to the Creditors, but without affecting or impairing in any manner the
liability of such Guarantor under the other provisions of this Guaranty. Prior
to the transfer by any Guarantor of any note or negotiable instrument evidencing
any of the indebtedness of the Borrower to such Guarantor, such Guarantor shall
▇▇▇▇ such note or negotiable instrument with a legend that the same is subject
to this subordination. Without limiting the generality of the foregoing, each
Guarantor hereby agrees with the Creditors that it will not exercise any right
of subrogation or contribution which it may at any time otherwise have as a
result of this Guaranty (whether contractual, under Section 509 of the
Bankruptcy Code or otherwise) against the Borrower or any other Guarantor until
all Guaranteed Obligations have been irrevocably paid in full in cash. The
Guaranteed Obligations shall not be deemed to be paid in full unless the
Creditors shall have received all amounts set forth in the definition of
"Guaranteed Obligations", including, in the event of a bankruptcy proceeding,
all interest, fees and expenses accruing and arising after the filing of the
bankruptcy petition.
SECTION 9.08. WAIVER. (a) Each Guarantor waives any right (except as
shall be required by applicable law and cannot be waived) to require the
Creditors to (i) proceed against the Borrower or any other party, (ii) proceed
against or exhaust any security held from the Borrower or any other party or
(iii) pursue any other remedy in the Administrative Agent's or any other
Creditors' power whatsoever. Each Guarantor waives any defense based on or
arising out of any defense of the Borrower or any other party, other than
payment in full of the Guaranteed Obligations, based on or arising out of the
disability of the Borrower, any other guarantor or any other party, or the
unenforceability of the Guaranteed Obligations or any part thereof from any
cause, or the cessation from any cause of the liability of the Borrower other
than payment in full of the Guaranteed Obligations. To the greatest extent
permitted by law the Creditors may, at their election, foreclose on any security
held by the Administrative Agent or any other Creditors by one or more judicial
or nonjudicial sales, whether or not every aspect of any such sale is
commercially reasonable (to the extent such sale is permitted by applicable
law), or exercise any other right or remedy the Administrative Agent and any
other Creditors may have against the Borrower or any other party, or any
security, without affecting or impairing in any way the liability of any
Guarantor hereunder except to the extent the Guaranteed Obligations have been
paid. Each Guarantor waives any defense arising out of any such election by the
Creditors, even though such election operates to impair or extinguish any right
of reimbursement or subrogation or other right or remedy of such Guarantor
against the Borrower or any other Guarantor or any other party or any security.
(b) Each Guarantor waives all presentments, demands for performance,
protests and notices (except as otherwise expressly provided for herein),
including without limitation notices of nonperformance, notices of protest,
notices of dishonor, notices of acceptance of this Guaranty, and notices of the
existence, creation or incurring of new or additional Guaranteed Obligations.
Each Guarantor assumes all responsibility for being and keeping itself informed
of the Borrower's financial condition and assets, and of all circumstances
bearing upon the risk of nonpayment of the Guaranteed Obligations and the
nature, scope and extent of the risks which each Guarantor assumes and incurs
hereunder, and agrees that the Creditors shall have no duty to advise any
Guarantor of information known to them regarding such circumstances or risks.
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SECTION 9.09. NATURE OF LIABILITY. It is the desire and intent of the
Guarantors and the Creditors that this Guaranty shall be enforced against each
Guarantor to the fullest extent permissible under the laws and public policies
applied in each jurisdiction in which enforcement is sought. If, however, and to
the extent that, the obligations of any Guarantor under this Guaranty shall be
adjudicated to be invalid or unenforceable for any reason (including, without
limitation, because of any applicable state or federal law relating to
fraudulent conveyances or transfers), then the amount of the Guaranteed
Obligations of such Guarantor shall be deemed to be reduced and such Guarantor
shall pay the maximum amount of the Guaranteed Obligations which would be
permissible under applicable law.
SECTION 9.10. JUDGMENTS BINDING. If claim is ever made upon any
Creditor or any subsequent holder of a Note of the Borrower for repayment or
recovery of any amount or amounts received in payment or on account of any of
the Guaranteed Obligations and any of the aforesaid payees repays all or part of
said amount by reason of (a) any judgment, decree or order of any court or
administrative body having jurisdiction over such payee or any of its property,
or (b) any settlement or compromise of any such claim effected by such payee
with any such claimant, then and in such event each Guarantor agrees that any
such judgment, decree, order, settlement or compromise shall be binding upon
each Guarantor, notwithstanding any revocation hereof or the cancellation of any
Note or other instrument evidencing any liability of any Borrower, and each
Guarantor shall be and remain liable to the aforesaid payees hereunder for the
amount so repaid or recovered to the same extent as if such amount had never
originally been received by any such payee.
ARTICLE X
MISCELLANEOUS
SECTION 10.01. HOLIDAYS. Whenever any payment or action to be made or
taken hereunder or under any other Loan Document shall be stated to be due on a
day which is not a Business Day, such payment or action shall be made or taken
on the next following Business Day and such extension of time shall be included
in computing interest or fees, if any, in connection with such payment or
action.
SECTION 10.02. RECORDS. The unpaid principal amount of the Loans owing
to each Lender, the unpaid interest accrued thereon, the interest rate or rates
applicable to such unpaid principal amount, the duration of such applicability,
each Lender's Revolving Credit Committed Amount shall at all times be
ascertained from the records of the Administrative Agent, which shall be
conclusive absent manifest error.
SECTION 10.03. AMENDMENTS AND WAIVERS. Neither this Agreement nor any
other Loan Document may be amended, modified or supplemented except in
accordance with the provisions of this Section. The Required Lenders and the
Borrower may from time to time amend, modify or supplement the provisions of
this Agreement or any other Loan Document for the purpose of amending, adding
to, or waiving any provisions or changing in any manner the rights and duties of
the Borrower, any Agent or any Lender. Any such amendment, modification or
supplement
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made by the Borrower and the Required Lenders, in accordance with the provisions
of this Section shall be binding upon the Borrower, each Lender and each Agent.
The Agents shall enter into such amendments, modifications, supplements or
waivers from time to time as directed by the Required Lenders, and only as so
directed, PROVIDED, that no such amendment, modification, waiver or supplement
may be made which will:
(a) Increase the Revolving Credit Committed Amount of any
Lender over the amount thereof then in effect, or extend the Revolving
Credit Maturity Date or the Competitive Bid Loan Expiration Date
without the written consent of each Lender affected thereby, or
increase the Total Revolving Commitment Amount to exceed $100,000,000;
(b) Reduce the principal amount of or extend the time for
any payment of any Loan, or reduce the amount of or rate of interest or
extend the time for payment of interest borne by any Loan or extend the
time for payment of or reduce the amount of any Facility Fee or reduce
or postpone the date for payment of any other fees, expenses,
indemnities or amounts payable under any Loan Document, without the
written consent of each Lender affected thereby;
(c) Change the definition of "Required Lenders" or amend
this Section 10.03, Section 10.13 hereof or any provision of this
Agreement that states a requirement for the consent of all the Lenders,
without the written consent of all the Lenders;
(d) Release any of the Guarantors without the written
consent of all the Lenders; or
(e) Amend or waive any of the provisions of Article VIII
hereof, or impose additional duties upon any Agent or otherwise
adversely affect the rights, interests or obligations of any Agent,
without the written consent of such Agent,
and PROVIDED FURTHER, that Transfer Supplements may be entered into in the
manner provided in Section 10.14 hereof. Any such amendment, modification or
supplement must be in writing and shall be effective only to the extent set
forth in such writing. Any Event of Default or Potential Default waived or
consented to in any such amendment, modification or supplement shall be deemed
to be cured and not continuing to the extent and for the period set forth in
such waiver or consent, but no such waiver or consent shall extend to any other
or subsequent Event of Default or Potential Default or impair any right
consequent thereto.
SECTION 10.04. NO IMPLIED WAIVER; CUMULATIVE REMEDIES. No course of
dealing and no delay or failure of any Agent or any Lender in exercising any
right, power or privilege under this Agreement or any other Loan Document shall
affect any other or future exercise thereof or exercise of any other right,
power or privilege; nor shall any single or partial exercise of any such right,
power or privilege or any abandonment or discontinuance of steps to enforce such
a right, power or privilege preclude any further exercise thereof or of any
other right, power or privilege. The rights and remedies of the Agents and the
Lenders under this Agreement and any other Loan
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Document are cumulative and not exclusive of any rights or remedies which any
Agent or any Lender would otherwise have hereunder or thereunder, at law, in
equity or otherwise.
SECTION 10.05. NOTICES. (a) Except to the extent otherwise expressly
permitted hereunder or thereunder, all notices, requests, demands, directions
and other communications (collectively "NOTICES") under this Agreement or any
other Loan Document shall be in writing (including telexed and telecopied
communication) and shall be sent by first-class mail, or by
nationally-recognized overnight courier, or by telex or telecopier (with
confirmation in writing mailed first-class or sent by such an overnight
courier), or by personal delivery. All notices shall be sent to the applicable
party at the address stated on the signature pages hereof or in accordance with
the last unrevoked written direction from such party to the other parties
hereto, in all cases with postage or other charges prepaid. Any such properly
given notice shall be effective on the earliest to occur of receipt, telephone
confirmation of receipt of telex or telecopy communication, one Business Day
after delivery to a nationally-recognized overnight courier, or three Business
Days after deposit in the mail.
(b) Any Lender giving any notice to the Borrower shall simultaneously
send a copy thereof to each Agent, and each Agent shall promptly notify the
other Lenders of the receipt by it of any such notice.
(c) Each Agent and each Lender may rely on any notice (whether or not
such notice is made in a manner permitted or required by this Agreement or any
Loan Document) purportedly made by or on behalf of the Borrower, and neither
Agent nor any Lender shall have any duty to verify the identity or authority of
any Person giving such notice.
SECTION 10.06. EXPENSES; TAXES; INDEMNITY. (a) The Borrower agrees to
pay or cause to be paid and to save each Agent and, in the case of clause (iii)
below, each of the Lenders harmless against liability for the payment of all
reasonable out-of-pocket costs and expenses (including but not limited to
reasonable fees and expenses of one counsel to the Agents and auditors,
consulting engineers, appraisers, and all other professional, accounting,
evaluation and consulting costs approved by the Borrower and, with respect to
costs incurred by the Agents or any Lender pursuant to clause (iii) below,
reasonable fees and expenses of counsel (including allocated costs of in-house
counsel to the extent that outside counsel has not been retained by such
Lender)) incurred by the Agents or, in the case of clause (iii) below any Lender
from time to time arising from or relating to (i) the negotiation, preparation,
execution, delivery, administration and performance of this Agreement and the
other Loan Documents, (ii) any requested amendments, modifications, supplements,
waivers or consents (whether or not ultimately entered into or granted) to this
Agreement or any other Loan Document, and (iii) following the occurrence of an
Event of Default, the enforcement or preservation of rights under this Agreement
or any other Loan Document (including but not limited to any such costs or
expenses arising from or relating to (A) collection or enforcement of an
outstanding Loan or any other amount owing hereunder or thereunder by any Agent
or any Lender, and (B) any litigation, proceeding, dispute, work-out,
restructuring or rescheduling related in any way to this Agreement or the other
Loan Documents).
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(b) The Borrower hereby agrees to pay all stamp, document, transfer,
recording, filing, registration, search, sales and excise fees and taxes and all
similar impositions now or hereafter determined by any Agent or any Lender to be
payable in connection with this Agreement or any other Loan Documents or any
other documents, instruments or transactions pursuant to or in connection
herewith or therewith, and the Borrower agrees to save each Agent and each
Lender harmless from and against any and all present or future claims,
liabilities or losses with respect to or resulting from any omission to pay or
delay in paying any such fees, taxes or impositions.
(c) The Borrower hereby agrees to reimburse and indemnify each of the
Indemnified Parties from and against any and all losses, liabilities, claims,
damages, expenses, obligations, penalties, actions, judgments, suits, costs or
disbursements of any kind or nature whatsoever (including, without limitation,
the reasonable fees and disbursements of counsel (including, without
duplication, allocated costs of in-house counsel) for such Indemnified Party in
connection with any investigative, administrative or judicial proceeding
commenced or threatened, whether or not such Indemnified Party shall be
designated a party thereto) that may at any time be imposed on, asserted against
or incurred by such Indemnified Party as a result of, or arising out of, or in
any way related to or by reason of, this Agreement or any other Loan Document,
any transaction from time to time contemplated hereby or thereby, or any
transaction financed in whole or in part or directly or indirectly with the
proceeds of any Loan (and without in any way limiting the generality of the
foregoing, including any violation or breach of any Requirement of Law or any
other Law by the Borrower or any Subsidiary); or any exercise by any Agent or
any Lender of any of its rights or remedies under this Agreement or any other
Loan Document); but excluding any such losses, liabilities, claims, damages,
expenses, obligations, penalties, actions, judgments, suits, costs or
disbursements resulting primarily from the gross negligence or willful
misconduct of such Indemnified Party. If and to the extent that the foregoing
obligations of the Borrower under this subsection (c), or any other
indemnification obligation of the Borrower hereunder or under any other Loan
Document, are unenforceable for any reason, the Borrower hereby agrees to make
the maximum contribution to the payment and satisfaction of such obligations
which is permissible under applicable Law.
SECTION 10.07. SEVERABILITY. The provisions of this Agreement are
intended to be severable. If any provision of this Agreement shall be held
invalid or unenforceable in whole or in part in any jurisdiction such provision
shall, as to such jurisdiction, be ineffective to the extent of such invalidity
or unenforceability without in any manner affecting the validity or
enforceability thereof in any other jurisdiction or the remaining provisions
hereof in any jurisdiction.
SECTION 10.08. PRIOR UNDERSTANDINGS. This Agreement and the other Loan
Documents supersede all prior and contemporaneous understandings and agreements
other than with regard to any upfront fees, whether written or oral, among the
parties hereto relating to the transactions provided for herein and therein.
SECTION 10.09. DURATION; SURVIVAL. All representations and warranties
of the Borrower contained herein or in any other Loan Document or made in
connection herewith shall survive the making of, and shall not be waived by the
execution and delivery, of this Agreement or any other Loan Document, any
investigation by or knowledge of any Agent or any Lender, the making of any
Loan, or any other event or condition whatever. All covenants and agreements of
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the Credit Parties contained herein or in any other Loan Document shall continue
in full force and effect from and after the date hereof so long as the Borrower
may borrow hereunder and until payment in full of all Obligations other than
indemnity obligations not yet due and payable. Without limitation, all
obligations of the Borrower hereunder or under any other Loan Document to make
payments to or indemnify each Agent or any Lender shall survive the payment in
full of all other obligations, termination of the Borrower's right to borrow
hereunder, and all other events and conditions whatever. In addition, all
obligations of each Lender to make payments to or indemnify the Agents shall
survive the payment in full by the Borrower of all Obligations, termination of
the Borrower's right to borrow hereunder, and all other events or conditions
whatever.
SECTION 10.10. COUNTERPARTS. This Agreement may be executed in any
number of counterparts and by the different parties hereto on separate
counterparts each of which, when so executed, shall be deemed an original, but
all such counterparts shall constitute but one and the same instrument.
SECTION 10.11. LIMITATION ON PAYMENTS. The parties hereto intend to
conform to all applicable Laws in effect from time to time limiting the maximum
rate of interest that may be charged or collected. Accordingly, notwithstanding
any other provision hereof or of any other Loan Document, the Borrower shall not
be required to make any payment to or for the account of any Lender, and each
Lender shall refund any payment made by the Borrower, to the extent that such
requirement or such failure to refund would violate or conflict with nonwaivable
provisions of applicable Laws limiting the maximum amount of interest which may
be charged or collected by such Lender.
SECTION 10.12. SET-OFF. Each Credit Party hereby agrees that, to the
fullest extent permitted by law, if any Obligation of the Borrower shall be due
and payable (by acceleration or otherwise), each Lender shall have the right,
without notice to the Borrower, such Credit Party or any other Person, to
set-off against and to appropriate and apply to the Obligation any indebtedness,
liability or obligation of any nature owing to such Credit Party by such Lender,
including but not limited to all deposits (whether time or demand, general or
special, provisionally credited or finally credited, whether or not evidenced by
a certificate of deposit and in whatever currency denominated) now or hereafter
maintained by such Credit Party with such Lender. Such right shall be absolute
and unconditional in all circumstances and, without limitation, shall exist
whether or not such Lender or any other Person shall have given notice or made
any demand to the Borrower, such other Credit Party or any other Person, whether
such indebtedness, obligation or liability owed to such Credit Party is
contingent, absolute, matured or unmatured (it being agreed that such Lender may
deem such indebtedness, obligation or liability to be then due and payable at
the time of such setoff), and regardless of the existence or adequacy of any
collateral, guaranty or any other security, right or remedy available to any
Lender or any other Person. Each Credit Party hereby agrees that, to the fullest
extent permitted by law, any Participant and any branch, subsidiary or affiliate
of any Lender or any Participant shall have the same rights of set-off as a
Lender as provided in this Section (regardless of whether such Participant,
branch, subsidiary or affiliate would otherwise be deemed in privity with or a
direct creditor of the Borrower). The rights provided by this Section are in
addition to all other rights of set-off and banker's lien and all other rights
and remedies which any Lender (or any such
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Participant, branch, subsidiary or affiliate) may otherwise have under this
Agreement, any other Loan Document, at law or in equity, or otherwise, and
nothing in this Agreement or any Loan Document shall be deemed a waiver or
prohibition of or restriction on the rights of set-off or bankers' lien of any
such Person.
SECTION 10.13. SHARING OF COLLECTIONS. The Lenders hereby agree among
themselves that if any Lender shall receive (by voluntary payment, realization
upon security, set-off or from any other source) any amount on account of the
Loans, interest thereon, or any other Obligation contemplated by this Agreement
or the other Loan Documents to be made by the Borrower pro rata to all Lenders
in greater proportion than any such amount received by any other Lender, then
the Lender receiving such proportionately greater payment shall notify each
other Lender and the Agents of such receipt, and equitable adjustment will be
made in the manner stated in this Section so that, in effect, all such excess
amounts will be shared ratably among all of the Lenders. The Lender receiving
such excess amount shall purchase (which it shall be deemed to have done
simultaneously upon the receipt of such excess amount) for cash from the other
Lenders a participation in the applicable Obligations owed to such other Lenders
in such amount as shall result in a ratable sharing by all Lenders of such
excess amount (and to such extent the receiving Lender shall be a Participant).
If all or any portion of such excess amount is thereafter recovered from the
Lender making such purchase, such purchase shall be rescinded and the purchase
price restored to the extent of such recovery, together with interest or other
amounts, if any, required by Law to be paid by the Lender making such purchase.
The Borrower hereby consents to and confirms the foregoing arrangements. Each
Participant shall be bound by this Section as fully as if it were a Lender
hereunder.
SECTION 10.14. SUCCESSORS AND ASSIGNS; PARTICIPATIONS; ASSIGNMENTS.
(a) SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and inure to
the benefit of the Borrower, the Lenders, all future holders of the Notes, each
Agent and their respective successors and assigns, except that the Borrower may
not assign or transfer any of its rights hereunder or interests herein without
the prior written consent of all the Lenders and each Agent, and any purported
assignment without such consent shall be void.
(b) PARTICIPATIONS. Any Lender may, in accordance with applicable Law,
at any time sell participations to one or more commercial banks or other Persons
(each a "PARTICIPANT") in all or a portion of its rights and obligations under
this Agreement and the other Loan Documents (including, without limitation, all
or a portion of its Commitments and the Loans owing to it and any Note held by
it); PROVIDED, that
(i) any such Lender's obligations under this Agreement and the
other Loan Documents shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations,
(iii) the parties hereto shall continue to deal solely and
directly with such Lender in connection with such Lender's rights and
obligations under this Agreement and each of the other Loan Documents,
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(iv) such Participant shall be bound by the provisions of
Sections 10.13 and 10.16 hereof, and the Lender selling such
participation shall obtain from such Participant a written confirmation
of its agreement to be so bound,
(v) no Participant (unless such Participant is an affiliate of
such Lender, or is itself a Lender) shall be entitled to require such
Lender to take or refrain from taking action under this Agreement or
under any other Loan Document, except that such Lender may agree with
such Participant that such Lender will not, without such Participant's
consent, take action of the type described in subsections (a), (b), (c)
or (d) of Section 10.03 hereof to the extent relating to such
Participant's participation; notwithstanding the foregoing, in no event
shall any participation by any Lender have the effect of releasing such
Lenders from its obligations hereunder, and
(vi) no Participant shall be an Affiliate of any Credit Party.
The Borrower agrees that any such Participant shall be entitled to the benefits
of Sections 2.14, 2.16 and 10.06 with respect to its participation in the
Commitments and the Loans outstanding from time to time but only to the extent
such Participant sustains such losses; PROVIDED, that no such Participant shall
be entitled to receive any greater amount pursuant to such Sections than the
transferor Lender would have been entitled to receive in respect of the amount
of the participation transferred to such Participant had no such transfer
occurred and nothing in this Section shall relieve such transferor Lender from
its obligations under Section 2.17 hereof.
(c) ASSIGNMENTS. Any Lender may, in the ordinary course of its
commercial banking business and in accordance with applicable Law, at any time
assign all or a portion of its rights and obligations under this Agreement and
the other Loan Documents (including, without limitation, all or any portion of
its Commitments and Loans owing to it and any Note held by it) to any Eligible
Assignee (each a "PURCHASING LENDER"); PROVIDED, that
(i) any such assignment to a Purchasing Lender which is not a
Lender shall be made only with the consent of the Borrower (provided
that such consent of the Borrower shall not be required during the
occurrence of and continuation of an Event of Default) and each Agent
which with respect to each Agent shall not be unreasonably withheld,
(ii) if a Lender makes such an assignment of less than all of
its then remaining rights and obligations under this Agreement and the
other Loan Documents, such transferor Lender shall retain, after such
assignment, a minimum principal amount of $5,000,000 of the Commitments
and Loans then outstanding, and such assignment shall be in a minimum
aggregate principal amount of $5,000,000 of the Commitments and Loans
then outstanding,
(iii) each such assignment shall be of a constant, and not a
varying, percentage of each Commitment of the transferor Lender and of
all of the transferor Lender's rights and obligations under this
Agreement and the other Loan Documents,
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(iv) each such assignment shall be made pursuant to a Transfer
Supplement in substantially the form of Exhibit G to this Agreement,
duly completed (a "TRANSFER SUPPLEMENT"); and
(v) to the extent the Other Credit Agreement is in effect, the
assigning Lender shall assign the same percentage of its "COMMITMENT"
under the Other Credit Agreement concurrently with such assignment.
In order to effect any such assignment, the transferor Lender and the Purchasing
Lender shall execute and deliver to the Administrative Agent a duly completed
Transfer Supplement (including the consents required by clause (i) of the
preceding sentence) with respect to such assignment, together with any Note or
Notes subject to such assignment (the "TRANSFEROR LENDER NOTES") and (except in
the case of a transfer required by the Borrower under Section 10.17 hereof) a
processing and recording fee of $3,500; and, upon receipt thereof, the
Administrative Agent shall accept such Transfer Supplement. Notwithstanding the
foregoing, no such processing and recording fee shall be payable in the case of
a replacement of a Lender pursuant to Section 2.18 or 10.17. Upon receipt of the
Purchase Price Receipt Notice pursuant to such Transfer Supplement, the
Administrative Agent shall record such acceptance in the Register. Upon such
execution, delivery, acceptance and recording, from and after the Transfer
Effective Date specified in such Transfer Supplement
(x) the Purchasing Lender shall be a party hereto and, to the
extent provided in such Transfer Supplement, shall have the rights and
obligations of a Lender hereunder, and
(y) the transferor Lender thereunder shall be released from
its obligations under this Agreement to the extent so transferred (and,
in the case of an Transfer Supplement covering all or the remaining
portion of a transferor Lender's rights and obligations under this
Agreement, such transferor Lender shall cease to be a party to this
Agreement) from and after the Transfer Effective Date.
To the extent requested by the Purchasing Lender, on or prior to the Transfer
Effective Date specified in an Transfer Supplement, the Borrower, at its
expense, shall execute and deliver to the Administrative Agent (for delivery to
the Purchasing Lender) new Notes evidencing such Purchasing Lender's assigned
Commitments or Loans and (for delivery to the transferor Lender) replacement
Notes in the principal amount of the Loans or Commitments retained by the
transferor Lender (such Notes to be in exchange for, but not in payment of,
those Notes then held by such transferor Lender). Each such Note shall be dated
the date and be substantially in the form of the predecessor Note. The
Administrative Agent shall ▇▇▇▇ the predecessor Notes, if any, "exchanged" and
deliver them to the Borrower. Accrued interest and accrued fees shall be paid to
the Purchasing Lender at the same time or times provided in the predecessor
Notes and this Agreement.
A transfer by a Lender of its rights under this Agreement from one of
such Lender's branches to another of its branches shall not be considered to be
an assignment for the purposes of this Section 10.14 and shall be permitted
without the consent of the Borrower or of the
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Agents, PROVIDED that to the extent such transfer would, at the time of such
transfer, result in increased costs under Section 2.14 or 2.16 from those being
charged by the transferring branch, the Borrower shall not be obligated to pay
such increased costs (although the Borrower shall be obligated to pay any other
increased costs of the type described above resulting from changes after the
date of the respective transfer). The foregoing proviso shall also apply to such
transfer from a Lender to another Lender or any affiliate thereof or of an
affiliate of such transferor Lender or to a Person which will become a Lender.
(d) REGISTER. The Administrative Agent shall maintain at its office a
copy of each Transfer Supplement delivered to it and a register (the "REGISTER")
for the recordation of the names and addresses of the Lenders and the Commitment
of, and principal amount of the Loans owing to, each Lender from time to time.
The entries in the Register shall be conclusive absent manifest error and the
Borrower, the Agents and the Lenders may treat each Person whose name is
recorded in the Register as a Lender hereunder for all purposes of the
Agreement. The Register shall be available for inspection by the Borrower or any
Lender at any reasonable time and from time to time upon reasonable prior
notice.
(e) FINANCIAL AND OTHER INFORMATION. The Borrower authorizes each Agent
and each Lender to disclose to any Participant or Purchasing Lender (each, a
"TRANSFEREE") and any prospective transferee any and all financial and other
information in such Person's possession concerning the Borrower and its
Subsidiaries and Affiliates which has been or may be delivered to such Person by
or on behalf of the Borrower in connection with this Agreement or any other Loan
Document or such Person's credit evaluation of the Borrower and its Subsidiaries
and Affiliates; subject, however, to the provisions of Section 10.16 hereof.
(f) Notwithstanding anything to the contrary contained herein, any
Lender (a "GRANTING LENDER") may grant to a special purpose funding vehicle (an
"SPC") of such Granting Lender, identified as such in writing from time to time
by the 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
would otherwise be obligated to make to the Borrower pursuant to this Agreement;
PROVIDED that (i) nothing herein shall constitute a commitment by any SPC to
make any Loan, (ii) if an SPC elects not to exercise such option or otherwise
fails to provide all or any part of such Loan, the Granting Lender shall be
obligated to make such Loan pursuant to the terms hereof and (iii) no SPC or
Granting Lender shall be entitled to receive any greater amount pursuant to
Section 2.14 or 2.16 than the Granting Lender would have been entitled to
receive had the Granting Lender not otherwise granted such SPC the option to
provide any Loan to the Borrower. The making of any Revolving Credit Loan by an
SPC hereunder shall utilize the Revolving Credit Commitment of the Granting
Lender (and, if such Loan is a Competitive Bid Loan, shall be deemed to utilize
the Total Revolving Credit Commitment of all the Lenders) 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 obligation of any kind with respect
to this Agreement under any circumstances whatsoever, including without
limitation whether or not the related Granting Lender makes such payment. The
foregoing shall not release the Granting Lender from any obligation hereunder;
and the Granting Lender's liability shall be determined as if no grant to an SPC
had been made by it. Each party hereto hereby acknowledges and agrees that no
SPC shall have any voting rights hereunder and that the voting
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rights attributable to any extensions of credit made by an SPC shall be
exercised only by the relevant Granting Lender. Each Granting Lender shall serve
as the administrative agent and attorney-in-fact for its SPC and shall on behalf
of its SPC: (i) receive any and all payments made for the benefit of such SPC
and (ii) give and receive all communications and notices and take all actions
hereunder to the extent, if any, such SPC shall have any rights hereunder. To
the extent an SPC shall have the right to receive or give any such notice or
take any such action in writing, it shall be signed by its Granting Lender as
administrative agent and attorney-in-fact for such SPC and need not be signed by
such SPC on its own behalf. The Borrower, the Guarantors, the Administrative
Agent and the Lenders may rely thereon without any requirement that the SPC sign
or acknowledge the same. In addition, notwithstanding anything to the contrary
contained in this Section 10.14, any SPC may (i) with 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 or to any financial institutions providing
liquidity and/or credit facilities to or for the account of such SPC to fund the
Loans made by such SPC or to support the securities (if any) issued by such SPC
to fund such Loans and (ii) disclose on a confidential basis any non-public
information relating to its Loans to any rating agency, commercial paper dealer
or provider or a surety, guarantee or credit or liquidity enhancement to such
SPC. In the event that an SPC extends a Loan to the Borrower as contemplated
above, the Borrower shall repay such Loan to the SPC through the Administrative
Agent in full on the maturity date thereof, notwithstanding any provision for
repayments being affected on a basis of re-borrowings. The foregoing shall not
release the Granting Lender from any obligation hereunder, the Granting Lender's
liability to be determined as if no grant to an SPC had been made by it.
Each party hereto agrees that until the 369th day following the
maturity of the last maturing commercial paper note issued or to be issued by an
SPC, it will not institute, or join with others in instituting, against the SPC
any involuntary bankruptcy or insolvency proceeding under any applicable
bankruptcy reorganization, insolvency or similar law, as now or hereafter in
effect.
In the event that an SPC makes a Loan hereunder, the Borrower shall
repay the full amount of such Loan to the SPC through the Administrative Agent
on the maturity date thereof, notwithstanding any provision contained in this
Agreement with respect to netting of amounts payable by the Borrower against
amounts being borrowed by the Borrower on the same day.
SECTION 10.15. GOVERNING LAW; SUBMISSION TO JURISDICTION; WAIVER OF
JURY TRIAL. (a) GOVERNING LAW. THIS AGREEMENT AND ALL OTHER LOAN DOCUMENTS
(EXCEPT TO THE EXTENT, IF ANY, OTHERWISE EXPRESSLY STATED IN SUCH OTHER LOAN
DOCUMENTS) SHALL BE GOVERNED BY, CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CHOICE OF LAW PRINCIPLES.
(b) CERTAIN WAIVERS. THE BORROWER HEREBY IRREVOCABLY AND
UNCONDITIONALLY:
(i) AGREES THAT ANY ACTION, SUIT OR PROCEEDING BY ANY PERSON
ARISING FROM OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
OR
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ANY STATEMENT, COURSE OF CONDUCT, ACT, OMISSION, OR EVENT OCCURRING IN
CONNECTION HEREWITH OR THEREWITH (COLLECTIVELY, "RELATED LITIGATION")
MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION
SITTING IN ▇▇▇ ▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇, SUBMITS TO THE
JURISDICTION OF SUCH COURTS, AND TO THE FULLEST EXTENT PERMITTED BY LAW
AGREES THAT IT WILL NOT BRING ANY RELATED LITIGATION IN ANY OTHER FORUM
(BUT NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE AGENT OR ANY LENDER
TO BRING ANY ACTION, SUIT OR PROCEEDING IN ANY OTHER FORUM);
(ii) WAIVES ANY OBJECTION WHICH IT MAY HAVE AT ANY TIME TO THE
LAYING OF VENUE OF ANY RELATED LITIGATION BROUGHT IN ANY SUCH COURT,
WAIVES ANY CLAIM THAT ANY SUCH RELATED LITIGATION HAS BEEN BROUGHT IN
AN INCONVENIENT FORUM, AND WAIVES ANY RIGHT TO OBJECT, WITH RESPECT TO
ANY RELATED LITIGATION BROUGHT IN ANY SUCH COURT, THAT SUCH COURT DOES
NOT HAVE JURISDICTION OVER THE BORROWER;
(iii) CONSENTS AND AGREES TO SERVICE OF ANY SUMMONS, COMPLAINT
OR OTHER LEGAL PROCESS IN ANY RELATED LITIGATION BY REGISTERED OR
CERTIFIED U.S. MAIL, POSTAGE PREPAID, TO THE BORROWER AT THE ADDRESS
FOR NOTICES DESCRIBED IN SECTION 10.05 HEREOF, AND CONSENTS AND AGREES
THAT SUCH SERVICE SHALL CONSTITUTE IN EVERY RESPECT VALID AND EFFECTIVE
SERVICE (BUT NOTHING HEREIN SHALL AFFECT THE VALIDITY OR EFFECTIVENESS
OF PROCESS SERVED IN ANY OTHER MANNER PERMITTED BY LAW); AND
(iv) WAIVES THE RIGHT TO TRIAL BY JURY IN ANY RELATED
LITIGATION.
SECTION 10.16. CONFIDENTIALITY. Except as may be required by Law, each
Lender and each Agent covenants and agrees to use its best efforts not to permit
any data or information relating to the Borrower or any of its Subsidiaries or
the business of the Borrower or any of its Subsidiaries (other than any data or
information which is otherwise publicly available or which is received by any
such party in a capacity in which such party is not bound by any restriction of
a nature similar to that imposed by this Section 10.16), which data or
information such Lender or any Agent possesses due to such party's relation to
the transactions contemplated by the Loan Documents, to be out of such party's
possession or the contents thereof to be divulged to any other Person; PROVIDED,
HOWEVER, that such data or information may be disclosed to the lawyers or
accountants of such Lender or any Agent and to any Person empowered by Law to
examine the records of any such Person and to any potential participant in, or
assignee or transferee of, its rights under any Loan Documents which potential
participant, assignee or transferee shall have, in each case, agreed with such
party to comply with the terms of this Section 10.16.
SECTION 10.17. REPLACEMENT OF LENDERS. If (a) the Borrower is required
to make a payment to a particular Lender pursuant to Sections 2.14 or 2.16
hereof (or pursuant to a comparable provision in any agreement with respect to
the Borrower's Indebtedness for borrowed money between the Borrower, such Lender
and at least five other lenders) or (b) the Borrower is precluded from
requesting Loans of any type from a particular Lender pursuant to Section
2.08(e) hereof, the Borrower may, upon not less than 15 Business Days' notice to
the
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Administrative Agent, either (x) immediately terminate the Commitments of such
Lender, prepay (subject to Section 2.14(b) hereof) such Lender's Loans, together
with interest accrued thereon and all other amounts payable with respect
thereto, and pay all other amounts then due and owing to such Lender (in which
event the Total Revolving Credit Commitment shall be reduced by the amount of
such Lender's Revolving Credit Committed Amount) or (y) cause a Replacement
Lender reasonably satisfactory to the Administrative Agent (which may be one of
the other Lenders) to purchase all of such Lender's interests in accordance with
the provisions of Section 10.14(c) hereof. In such event, to the extent the
Other Credit Agreement is in effect, the Borrower must also terminate such
Lender's "COMMITMENT" under the Other Credit Agreement and such Replacement
Lender must purchase such Lender's interest under the Other Credit Agreement.
SECTION 10.18. JUDGMENT CURRENCY. (a) The Borrower's obligation
hereunder and under the other Loan Documents to make payments in Dollars or any
other currency (the "OBLIGATION CURRENCY") shall not be discharged or satisfied
by any tender or recovery pursuant to any judgment expressed in or converted
into any currency other than the Obligation Currency, except to the extent that
such tender or recovery results in the effective receipt by the Administrative
Agent or the respective Lender of the full amount of the Obligation Currency
expressed to be payable to the Administrative Agent or such Lender under this
Agreement or the other Loan Documents. If for the purpose of obtaining or
enforcing judgment against the Borrower in any court or in any jurisdiction, it
becomes necessary to convert into or from any currency other than the Obligation
Currency (such other currency being hereinafter referred to as the "JUDGMENT
CURRENCY") an amount due in the Obligation Currency, the conversion shall be
made, at the rate of exchange (as quoted by the Administrative Agent or if the
Administrative Agent does not quote a rate of exchange on such currency, by a
known dealer in such currency designated by the Administrative Agent)
determined, in each case, as of the day immediately preceding the day on which
the judgment is given (such Business Day being hereinafter referred to as the
"JUDGMENT CURRENCY CONVERSION DATE").
(b) If there is a change in the rate of exchange prevailing between the
Judgment Currency Conversion Date and the date of actual payment of the amount
due, the Borrower covenants and agrees to pay, or cause to be paid, such
additional amounts, if any (but in any event not a lesser amount) as may be
necessary to ensure that the amount paid in the Judgment Currency, when
converted at the rate of exchange prevailing on the date of payment, will
produce the amount of the Obligation Currency which could have been purchased
with the amount of Judgment Currency stipulated in the judgment or judicial
award at the rate or exchange prevailing on the Judgment Currency Conversion
Date.
(c) For purposes of determining any rate of exchange for this Section
10.18, such amounts shall include any premium and costs payable in connection
with the purchase of the Obligation Currency.
SECTION 10.19. EFFECTIVENESS. The Previous Credit Agreement became
effective on February 12, 1999 (the "ORIGINAL EFFECTIVE DATE"). This Agreement
shall become effective on December 1, 1999 (the "EFFECTIVE DATE") PROVIDED that
the following conditions precedent shall occur: (i) the Borrower and the
Required Lenders shall have signed a copy of this Agreement and
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shall have delivered executed counterparts of this Agreement to the
Administrative Agent at its Notice Office or, in the case of any Lender, shall
have given to the Administrative Agent telephonic (confirmed in writing),
written telex or facsimile transmission notice (actually received) at such
office that the same has been signed and sent to such Administrative Agent and
(ii) all fees and expenses (including, without limitation, all legal fees and
expenses) due to the Agent and the Lenders and special legal counsel to the
Agent shall have been paid.
SECTION 10.20. ENTIRE AGREEMENT - CONSTRUCTION. This Agreement and the
other Loan Documents, taken together, constitute and contain the entire
agreement among the Borrower, the Lenders, and Administrative Agent and
supercede any and all prior agreements, negotiations, correspondence,
understandings and communications among the parties, whether written or oral,
respecting the subject matter hereof. To the extent any inconsistency between
this Agreement and any other Loan Document, the terms and conditions contained
in this Agreement shall govern.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
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IN WITNESS WHEREOF, the parties hereto, by their officers thereunto
duly authorized, have executed and delivered this Agreement as of the date first
above written.
ATTEST: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ CORPORATION, as Borrower
By By
------------------------------------ -------------------------------------
Title: Title:
Address for Notices:
▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
Attn: Vice President and Treasurer
Telephone: ▇▇▇-▇▇▇-▇▇▇▇
Telecopier: ▇▇▇-▇▇▇-▇▇▇▇
S-1
(▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Corporation
Amended and Restated Revolving Credit Agreement)
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ USA CORPORATION, as
Guarantor
By
Title:
Address for Notices:
▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
Attn: Vice President and Treasurer
Telephone: ▇▇▇-▇▇▇-▇▇▇▇
Telecopier: ▇▇▇-▇▇▇-▇▇▇▇
S-2
(▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Corporation
Amended and Restated Revolving Credit Agreement)
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ENERGY INTERNATIONAL,
INC., as Guarantor
By
Title:
Address for Notices:
▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
Attn: Vice President and Treasurer
Telephone: ▇▇▇-▇▇▇-▇▇▇▇
Telecopier: ▇▇▇-▇▇▇-▇▇▇▇
S-3
(▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Corporation
Amended and Restated Revolving Credit Agreement)
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ENERGY CORPORATION, as
Guarantor
By
Title:
Address for Notices:
▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
Attn: Vice President and Treasurer
Telephone: ▇▇▇-▇▇▇-▇▇▇▇
Telecopier: ▇▇▇-▇▇▇-▇▇▇▇
S-4
(▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Corporation
Amended and Restated Revolving Credit Agreement)
BANK OF AMERICA, N.A., individually and
as Administrative Agent
By
Title:
Initial Revolving Credit
Committed Amount: $10,000,000
Commitment Percentage: 11.111%
Address for Notices:
▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
▇▇▇-▇▇▇-▇▇-▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier: (▇▇▇) ▇▇▇-▇▇▇▇
With a copy to:
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, 11th Floor
CA9-706-11-07
▇▇▇ ▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇ ▇▇▇▇▇▇▇▇
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier: (▇▇▇) ▇▇▇-▇▇▇▇
S-5
(▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Corporation
Amended and Restated Revolving Credit Agreement)
FIRST UNION NATIONAL BANK, individually
and as Syndication Agent
By
Title:
Initial Revolving Credit
Committed Amount: $10,000,000
Commitment Percentage: 11.111%
Address for Notices:
▇▇▇ ▇▇▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇
▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ ▇▇
Vice President
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier: (▇▇▇) ▇▇▇-▇▇▇▇
With a copy to:
▇▇▇ ▇▇▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇
▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇ ▇. Longhine
Senior Vice President
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier: (▇▇▇) ▇▇▇-▇▇▇▇
S-6
(▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Corporation
Amended and Restated Revolving Credit Agreement)
ABN AMRO BANK N.V., individually and
as Documentation Agent
By
Title:
By
Title:
Initial Revolving Credit
Committed Amount: $10,000,000
Commitment Percentage: 11.111%
Address for Notices:
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: Credit Administration
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier: (▇▇▇) ▇▇▇-▇▇▇▇
With a copy to:
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇ ▇▇▇▇▇▇▇▇
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier: (▇▇▇) ▇▇▇-▇▇▇▇
S-7
(▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Corporation
Amended and Restated Revolving Credit Agreement)
TORONTO DOMINION (TEXAS), INC.
By
Title:
Initial Revolving Credit
Committed Amount: $10,000,000
Commitment Percentage: 11.111%
Address for Notices:
▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
Attn: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
Energy Group
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier: (▇▇▇) ▇▇▇-▇▇▇▇
With a copy to:
The Toronto Dominion Bank
▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇ ▇▇▇▇▇▇
Manager, Credit Administration
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier: (▇▇▇) ▇▇▇-▇▇▇▇
S-8
(▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Corporation
Amended and Restated Revolving Credit Agreement)
NATIONAL WESTMINSTER BANK PLC, NEW
YORK BRANCH
By
Title:
NATIONAL WESTMINSTER BANK PLC, NASSAU
BRANCH
By
------------------------------------
Title:
Initial Revolving Credit
Committed Amount: $10,000,000
Commitment Percentage: 11.111%
Address for Notices:
▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇, ▇.▇. ▇▇▇▇▇▇▇
Attn: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
Director
Telephone: (44) (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier: (44) (171) 390-1108
With a copy to:
▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: Commercial Loans Associate
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier: (▇▇▇) ▇▇▇-▇▇▇▇
S-9
(▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Corporation
Amended and Restated Revolving Credit Agreement)
THE BANK OF NOVA SCOTIA
By
Title:
Initial Revolving Credit
Committed Amount: $2,500,000
Commitment Percentage: 2.778%
Address for Notices:
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇ ▇▇▇▇▇▇▇▇
Senior Loan Administration
Officer
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier: (▇▇▇) ▇▇▇-▇▇▇▇
S-10
(▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Corporation
Amended and Restated Revolving Credit Agreement)
BANK OF TOKYO-MITSUBISHI TRUST
COMPANY
By
Title:
Initial Revolving Credit
Committed Amount: $5,000,000
Commitment Percentage: 5.556%
Address for Notices:
▇▇▇▇ ▇▇▇▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇ ▇▇▇▇▇▇▇
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier: (▇▇▇) ▇▇▇-▇▇▇▇
S-11
(▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Corporation
Amended and Restated Revolving Credit Agreement)
CITIBANK, N.A.
By
Title:
Initial Revolving Credit
Committed Amount: $5,000,000
Commitment Percentage: 5.556%
Address for Notices:
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇ ▇▇▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇▇▇
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier: (▇▇▇) ▇▇▇-▇▇▇▇
With a copy to:
▇ ▇▇▇▇▇ ▇▇▇
▇▇▇ ▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇▇▇ ▇▇▇▇▇
Loan Administrator
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier: (▇▇▇) ▇▇▇-▇▇▇▇
S-12
(▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Corporation
Amended and Restated Revolving Credit Agreement)
DEUTSCHE BANK AG, NEW YORK BRANCH
a/o CAYMAN ISLANDS BRANCH
By
Title:
By
Title:
Initial Revolving Credit
Committed Amount: $5,000,000
Commitment Percentage: 5.556%
Address for Notices:
▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Assistant Vice President
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier: (▇▇▇) ▇▇▇-▇▇▇▇
With a copy to:
▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇ ▇▇▇▇▇▇▇▇▇
Associate
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier: (▇▇▇) ▇▇▇-▇▇▇▇/4139
S-13
(▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Corporation
Amended and Restated Revolving Credit Agreement)
PARIBAS
By
Title:
Initial Revolving Credit
Committed Amount: $5,000,000
Commitment Percentage: 5.556%
Address for Notices:
▇▇▇ ▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇ ▇▇▇▇▇▇
Director
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier: (▇▇▇) ▇▇▇-▇▇▇▇
With a copy to:
▇▇▇ ▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇ ▇▇▇▇▇▇
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier: (▇▇▇) ▇▇▇-▇▇▇▇
S-14
(▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Corporation
Amended and Restated Revolving Credit Agreement)
PNC BANK, NATIONAL ASSOCIATION
By
Title:
Initial Revolving Credit
Committed Amount: $5,000,000
Commitment Percentage: 5.556%
Address for Notices:
▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇.
▇▇▇▇▇ ▇▇-▇
▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇▇▇ ▇▇▇▇▇
Vice President
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier: (▇▇▇) ▇▇▇-▇▇▇▇
With a copy to:
▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇.
▇▇▇▇▇ ▇▇-▇
▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇ ▇'▇▇▇▇▇
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier: (▇▇▇) ▇▇▇-▇▇▇▇
S-15
(▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Corporation
Amended and Restated Revolving Credit Agreement)
SOCIETE GENERALE, NEW YORK BRANCH
By
Title:
Initial Revolving Credit
Committed Amount: $8,750,000
Commitment Percentage: 9.722%
Address for Notices:
▇▇▇▇ ▇▇▇▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Vice President
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier: (▇▇▇) ▇▇▇-▇▇▇▇
With a copy to:
▇▇▇▇ ▇▇▇▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇▇ ▇▇▇▇▇▇
Corporate Assistant
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier: (▇▇▇) ▇▇▇-▇▇▇▇
S-16
(▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Corporation
Amended and Restated Revolving Credit Agreement)
STANDARD CHARTERED BANK
By
Title:
Initial Revolving Credit
Committed Amount: $3,750,000
Commitment Percentage: 4.167%
Address for Notices:
▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Vice President
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier: (▇▇▇) ▇▇▇-▇▇▇▇
With a copy to:
▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇. ▇▇▇▇▇▇▇▇▇
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier: (▇▇▇) ▇▇▇-▇▇▇▇
S-17
(▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Corporation
Amended and Restated Revolving Credit Agreement)
EXHIBIT A
TO
CREDIT AGREEMENT
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ CORPORATION
REVOLVING CREDIT NOTE
$ New York, New York
----------------------- ----------------, ----
FOR VALUED RECEIVED, the undersigned, ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ CORPORATION, a New
York corporation, (the "Borrower"), promises to pay to the order of [NAME OF
LENDER] (the "LENDER") on or before the Revolving Credit Maturity Date, and at
such earlier dates as may be required by the Agreement (as defined below), the
lesser of (i) the principal sum of ________ ($_______) or (ii) the aggregate
unpaid principal amount of all Revolving Credit Loans made by the Lender to the
Borrower from time to time pursuant to the Agreement. The Borrower further
promises to pay to the order of the Lender interest on the unpaid principal
amount hereof from time to time outstanding at the rate or rates per annum
determined pursuant to the Agreement, payable on the dates set forth in the
Agreement.
This Note is one of the "REVOLVING CREDIT NOTES" as referred to in, and
is entitled to the benefits of, the Amended and Restated Short Term Revolving
Credit Agreement, dated as of December 1, 1999, by and among the Borrower, the
Guarantors party thereto from time to time, the Lenders party thereto from time
to time and Bank of America National Trust and Savings Association, as
Administrative Agent (as the same may be amended, modified or supplemented from
time to time, the "AGREEMENT"), which among other things provides for the
acceleration of the maturity hereof upon the occurrence of certain events and
for prepayments in certain circumstances and upon certain terms and conditions.
Terms defined in the Agreement have the same meanings herein.
Except as otherwise set forth in the Agreement, the Borrower hereby
expressly waives presentment, demand, notice, protest and all other demands and
notices in connection with the delivery, acceptance, performance, default or
enforcement of this Note and the Agreement, and an action for amounts due
hereunder or thereunder shall immediately accrue.
This Note shall be governed by, construed and enforced in accordance
with the laws of the State of New York, without regard to principles of choice
of law.
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ CORPORATION
By
Title:
------------------------------
EXHIBIT B
TO
CREDIT AGREEMENT
[Form of Competitive Bid Loan Quote Request]
----------------, ----
To: Bank of America National Trust and Savings Association, as
Administrative Agent
From: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Corporation
Re: Competitive Bid Loan Quote Request
Pursuant to Section 2.03(b) of the Revolving Credit Agreement
dated as of February 12, 1999, by and among ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ CORPORATION, the
guarantors party thereto, the lenders party thereto and Bank of America National
Trust and Savings Association, as Administrative Agent (as the same may from
time to time be amended or modified, the "AGREEMENT"), we hereby give notice
that we request Competitive Bid Loan Quotes for the following proposed
Competitive Bid Borrowing(s):
--------------------------------------------------------------------------------
Borrowing Principal
Date Amount1 Type2 Interest Period3 Currency
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Terms used herein have the meanings assigned to them in the Agreement.
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ CORPORATION
By:
Title:
-----------------------------
--------------------------------
1 Each amount must be a Dollar Equivalent of $5,000,000 or a higher integral
multiple of $1,000,000 (to the extent practical in the case of Eurocurrency
Loans).
2 Insert either "LIBOR-based Margin" (in the case of LIBOR-based Loans), "CD
Rate Margin" (in the case of CD Rate Loans), "Base Rate Margin" (in the
case of Base Rate Loans) or "Absolute Rate" (in the case of Absolute Rate
Loans).
3 Each Interest Period must be not less than seven days or more than 180
days.
EXHIBIT C
TO
CREDIT AGREEMENT
[Form of Competitive Bid Loan Quote]
Bank of America National Trust and
Savings Association, as Administrative Agent
▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
ATTENTION:
----------------------------
RE: COMPETITIVE BID LOAN QUOTE TO
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ CORPORATION (THE "BORROWER")
-------------------------------------------
This Competitive Bid Loan Quote is given in accordance with Section
2.03(d) of the Short Term Revolving Credit Agreement dated as of February 12,
1999, by and among ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Corporation, a New York corporation (the
"BORROWER"), the guarantors party thereto, the lenders party thereto and Bank of
America National Trust and Savings Association, as Administrative Agent (as the
same may from time to time be amended or modified, the "AGREEMENT"). Terms
defined in the Agreement are used herein as defined therein.
In response to the Borrower's invitation dated ___________, ___, we
hereby make the following Competitive Bid Loan Quote(s) on the following terms:
1. Quoting Bank:
2. Person to contact at Quoting Bank:
3. We hereby offer to make Competitive Bid Loan(s) in the following
principal amounts, for the following Interest Periods and at the
following rates:
--------------------------------------------------------------------------------
Borrowing Principal
Date1 Amount2 Type3 Interest Period4 Rate5 Currency
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
We understand and agree that the offer(s) set forth above, subject to
the satisfaction of the applicable conditions set forth in the Agreement,
irrevocably obligate(s) us to make the Competitive Bid Loan(s) for which any
offer(s) [is] [are] accepted, in whole or in part (subject to Section 2.03(g) of
the Agreement).
Very truly yours,
[LENDER]
By
------------------------------------
Authorized Officer
Dated:
---------------------
--------------------------------
1 As specified in the related Competitive Bid Loan Quote Request.
2 The principal amount bid for each Interest Period may not exceed the
principal amount of Competitive Bid Loans requested. Bids must be made for
a Dollar Equivalent of at least $5,000,000 or a higher integral multiple of
$1,000,000.
3 Indicate "LIBOR-based Margin" (in the case of LIBOR-based Loans), "CD Rate
Margin" (in the case of CD Rate Loans), "Base Rate Margin" (in the case of
Base Rate Loans) or "Absolute Rate" (in the case of Absolute Rate Loans).
4 Must be not less than seven days or more than 180 days, as specified in the
related Competitive Bid Loan Quote Request
5 For a LIBOR-based Loan, specify margin over or under the LIBOR-Rate
determined for the applicable Interest Period. For a CD Rate Loan, specify
margin over or under the CD Rate determined for the applicable Interest
Period. For a Base Rate Loan, specify margin over or under the Base Rate
determined for the applicable Interest Period. In each case, specify
percentage (rounded to the nearest 1/10,000 of 1%) and specify whether
"PLUS" or "MINUS". For an Absolute Rate Loan, specify rate of interest per
annum (rounded to the nearest 1/10,000 of 1%).
-2-
EXHIBIT D
TO
CREDIT AGREEMENT
[Form of Competitive Bid Note]
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ CORPORATION
PROMISSORY NOTE
$
--------------------- ------------, ----
FOR VALUE RECEIVED, the undersigned, ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ CORPORATION, a New
York corporation (the "Borrower"), hereby promises to pay to the order of
__________________ (the "LENDER") on the Competitive Bid Loan Maturity Date of
each Competitive Bid Loan made by the Lender to the Borrower pursuant to the
Agreement described below, the lesser of (i) the principal sum of
____________________________________________ Dollars ($___________) or (ii) the
unpaid principal amount of all such Competitive Bid Loans made by the Lender
maturing on such Competitive Bid Loan Maturity Date. The Borrower further
promises to pay to the order of the Lender interest on the unpaid principal
amount of each such Competitive Bid Loan from time to time outstanding at the
rate or rates per annum determined pursuant to Section 2.03 of, or as otherwise
provided in, the Agreement, payable on the dates set forth in Sections 2.03 (k)
and 2.15 of, or as otherwise provided in, the Agreement.
This Competitive Bid Note is one of the "COMPETITIVE BID NOTES"
referred to in, and is entitled to the benefits provided by, the Short Term
Revolving Credit Agreement dated as of February 12, 1999, by and among the
Borrower, the guarantors party thereto, the lenders party thereto and Bank of
America National Trust and Savings Association, as Administrative Agent for the
lenders (as the same may from time to time be amended or modified, the
"AGREEMENT"). Said Agreement, among other things, contains provisions for
acceleration of the maturity of Competitive Bid Loans evidenced hereby upon the
happening of certain stated events, upon the terms and conditions therein
specified. Terms defined in the Agreement shall have the same meanings herein.
Subject to the provisions of the Agreement, payments of both principal
and interest shall be made at the office of Bank of America National Trust and
Savings Association located at ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇,
▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, in lawful money of the United States of America in immediately
available funds.
Except as otherwise set forth in the Agreement, the Borrower hereby
expressly waives presentment, demand, notice, protest and all other demands and
notices in connection with the delivery, acceptance, performance, default or
enforcement of this Competitive Bid Note and the Agreement, and an action for
amounts due hereunder or thereunder shall immediately accrue.
This Competitive Bid Note shall be governed by and construed and
enforced in accordance with the laws of the State of New York.
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ CORPORATION
By
Title:
------------------------------
-2-
EXHIBIT E
TO
CREDIT AGREEMENT
[INTENTIONALLY OMITTED]
EXHIBIT F
TO
CREDIT AGREEMENT
QUARTERLY COMPLIANCE CERTIFICATE
I have conducted a review of the terms and conditions of the Short Term
Revolving Credit Agreement dated as of February 12, 1999, (the "AGREEMENT"), the
Notes and the other Loan Documents, and the financial statements of the
Borrower. Defined terms used herein without definition are used as defined in
the Agreement. Such review has not disclosed nor does the signer have any
knowledge of the existence as of the date of this certificate of any condition
or event which constitutes a Potential Default or Event of Default.
I further certify that all representations and warranties contained in
the Agreement are true and correct in all material respects with the same effect
as though such representations and warranties were made on the date of this
certificate.
Attached are Schedules 1, 2 and 3 which are detailed calculations
indicating compliance with the covenants contained in Sections 6.01, 6.02 and
6.03 of the Agreement as of the date of this certificate.
Date: By
------------------------------------
Title:
------------------------------
EXHIBIT G
TO
CREDIT AGREEMENT
TRANSFER SUPPLEMENT
THIS TRANSFER SUPPLEMENT, dated as of the date specified in Item 1 of
Schedule I hereto, among the Transferor Lender specified in Item 2 of Schedule I
hereto (the "TRANSFEROR LENDER"), each Purchasing Lender specified in Item 3 of
Schedule I hereto (each a "PURCHASING LENDER") and Bank of America National
Trust and Savings Association, as Administrative Agent for the Lenders under the
Short Term Revolving Credit Agreement described below.
RECITALS:
A. This Transfer Supplement is being executed and delivered in
accordance with Section 10.14(c) of the Short Term Revolving Credit Agreement,
dated as of February 12, 1999, by and among ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Corporation, a New
York corporation (the "BORROWER"), the Guarantors party thereto from time to
time, the Lenders party thereto from time to time and Bank of America National
Trust and Savings Association, as Administrative Agent for the Lenders (as the
same may be amended, modified or supplemented from time to time, the "CREDIT
AGREEMENT"). Capitalized terms used herein without definition have the meaning
specified in the Credit Agreement.
B. Each Purchasing Lender (if it is not already a Lender) wishes to
become a Lender party to the Credit Agreement.
C. The Transferor Lender is selling and assigning to each Purchasing
Lender, and each Purchasing Lender is purchasing and assuming, a certain portion
of the Transferor Lender's rights and obligations under the Credit Agreement,
including, without limitation, the Transferor Lender's Commitments, Loans owing
to it and any Notes held by it (the "TRANSFEROR LENDER'S INTERESTS").
NOW, THEREFORE, the parties hereto, intending to be legally bound,
hereby agree as follows:
1. TRANSFER EFFECTIVE NOTICE. Upon receipt by the Administrative
Agent of five counterparts of this Transfer Supplement (to each of which is
attached a fully completed Schedule I and Schedule II), and each of which has
been executed by the Transferor Lender, by each Purchasing Lender and by any
other Person required by Section 10.14(c) of the Credit Agreement to execute
this Transfer Supplement, the Administrative Agent will transmit to the
Borrower, the Transferor Lender and each Purchasing Lender a transfer effective
notice, substantially in the form of Schedule III to this Transfer Supplement (a
"TRANSFER EFFECTIVE NOTICE"). The date specified in such Transfer Effective
Notice as the date on which the transfer effected by this Transfer Supplement
shall become effective (the "TRANSFER EFFECTIVE DATE") shall be the fifth
Business Day following the date of such Transfer Effective Notice or such other
date as shall be agreed upon among the Transfer Lender, the Purchasing Lender,
the Administrative Agent and the Borrower. From and after the Transfer Effective
Date each Purchasing Lender (if not already a Lender party to the Credit
Agreement) shall be a Lender party to the Credit Agreement for all purposes
thereof having the respective interests in the Transferor Lender's interests
reflected in this Transfer Supplement.
2. PURCHASE PRICE; SALE. At or before 12:00 Noon, local time at the
Transferor Lender's office specified in Schedule III, on the Transfer Effective
Date, each Purchasing Lender shall pay to the Transferor Lender, in immediately
available funds, an amount equal to the purchase price, as agreed between the
Transferor Lender and such Purchasing Lender (the "PURCHASE PRICE"), of the
portion being purchased by such Purchasing Lender (such Purchasing Lender's
"PURCHASED PERCENTAGE") of the Transferor Lender's Interests. Effective upon
receipt by the Transferor Lender of the Purchase Price from a Purchasing Lender,
the Transferor Lender hereby irrevocably sells, assigns and transfers to such
Purchasing Lender, without recourse, representation or warranty (express or
implied) except as set forth in Section 6 hereof, and each Purchasing Lender
hereby irrevocably purchases, takes and assumes from the Transferor Lender such
Purchasing Lender's Purchased Percentage of the Transferor Lender's Interests.
The Transferor Lender shall promptly notify the Administrative Agent of the
receipt of the Purchase Price from a Purchasing Lender ("PURCHASE PRICE RECEIPT
NOTICE"). Upon receipt by the Administrative Agent of such Purchase Price
Receipt Notice, the Administrative Agent shall record in the Register the
information with respect to such sale and purchase as contemplated by Section
10.14(d) of the Credit Agreement.
3. PRINCIPAL, INTEREST AND FEES. All principal payments, interest,
fees and other amounts that would otherwise be payable from and after the
Transfer Effective Date to or for the account of the Transferor Lender in
respect of the Transferor Lender's Interests shall, instead, be payable to or
for the account of the Transferor Lender and the Purchasing Lenders, as the case
may be, in accordance with their respective interests as reflected in this
Transfer Supplement.
4. CLOSING DOCUMENTS. Concurrently with the execution and delivery
hereof, the Transferor Lender will request that the Administrative Agent provide
to each Purchasing Lender (if it is not already a Lender party to the Credit
Agreement) conformed copies of all documents delivered to such Transferor Lender
on the Closing Date in satisfaction of conditions precedent set forth in the
Credit Agreement.
5. FURTHER ASSURANCES. Each of the parties to this Transfer
Supplement agrees that at any time and from time to time upon the written
request of any other party, it will execute and deliver such further documents
and do such further acts and things as such other party may reasonably request
in order to effect the purposes of this Transfer Supplement.
6. CERTAIN REPRESENTATIONS AND AGREEMENTS. By executing and
delivering this Transfer Supplement, the Transferor Lender and each Purchasing
Lender confirm to and agree with each other and the Administrative Agent and the
Lenders as follows:
(a) Other than the representation and warranty that it is
the legal and beneficial owner of the interest being assigned hereby
free and clear of any adverse claim,
-2-
the Transferor Lender makes no representation or warranty and assumes
no responsibility with respect to (i) the execution, delivery,
effectiveness, enforceability, genuineness, validity or adequacy of the
Credit Agreement or any other Loan Document, (ii) any recital,
representation, warranty, document, certificate, report or statement
in, provided for in, received under or in connection with, the Credit
Agreement or any other Loan Document, or (iii) the existence, validity,
enforceability, perfection, recordation, priority, adequacy or value,
now or hereafter, of any Lien or other direct or indirect security
afforded or purported to be afforded by any of the Loan Documents or
otherwise from time to time.
(b) The Transferor Lender makes no representation or
warranty and assumes no responsibility with respect to (i) the
performance or observance of any of the terms or conditions of the
Credit Agreement or any other Loan Document on the part of the Borrower
or any other Person, (ii) the business, operations, condition
(financial or otherwise) or prospects of the Borrower or any other
Person, or (iii) the existence of any Event of Default or Potential
Default.
(c) Each Purchasing Lender confirms that it has received
a copy of the Credit Agreement and each of the other Loan Documents,
together with copies of the financial statements referred to in Section
3.06 thereof, the most recent financial statements delivered pursuant
to Section 5.01 thereof, if any, and such other documents and
information as it has deemed appropriate to make its own credit and
legal analysis and decision to enter into this Transfer Supplement.
Each Purchasing Lender confirms that it has made such analysis and
decision independently and without reliance upon the Administrative
Agent, the other Agents, the Transferor Lender or any other Lender.
(d) Each Purchasing Lender, independently and without
reliance upon the Administrative Agent, the other Agents, the
Transferor Lender or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, will make its own
decisions to take or not take action under or in connection with the
Credit Agreement or any other Loan Document.
(e) Each Purchasing Lender irrevocably appoints the
Administrative Agent to act as Administrative Agent for such Purchasing
Lender under the Agreement and the other Loan Documents, all in
accordance with Article VIII of the Credit Agreement and the other
provisions of the Credit Agreement and the other Loan Documents.
(f) Each Purchasing Lender agrees that it will perform in
accordance with their terms all of the obligations which by the terms
of the Credit Agreement and the other Loan Documents are required to be
performed by it as a Lender.
7. SCHEDULE II. Schedule II hereto sets forth the revised Commitments
of the Transferor Lender and each Purchasing Lender as well as administrative
information with respect to each Purchasing Lender.
-3-
8. GOVERNING LAW. This Transfer Supplement shall be governed by,
construed and enforced in accordance with the laws of the State of New York,
without regard to principles of choice of law.
9. COUNTERPARTS. This Transfer Supplement may be executed on any
number of counterparts and by the different parties hereto on separate
counterparts each of which, when so executed, shall be deemed an original, but
all such counterparts shall constitute but one and the same instrument.
IN WITNESS WHEREOF, the parties hereto have caused this Transfer
Supplement to be executed by their respective duly authorized officers on
Schedule I hereto as of the date set forth in Item I of Schedule I hereto.
-4-
SCHEDULE I
TO
TRANSFER SUPPLEMENT
COMPLETION OF INFORMATION AND
SIGNATURES FOR TRANSFER SUPPLEMENT
Re: Short Term Revolving Credit Agreement, dated as of February 12, 1999,
by and among ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Corporation, a New York corporation (the
"BORROWER"), the Guarantors party thereto from time to time, the
Lenders party thereto from time to time and Bank of America National
Trust and Savings Association, as Administrative Agent for the Lenders
(as amended, modified or supplemented from time to time, the "CREDIT
AGREEMENT")
Item I (Date of [INSERT DATE OF
Assignment Supplement): ASSIGNMENT SUPPLEMENT]
Item 2 (Transferor Lender): [INSERT NAME OF TRANSFEROR
LENDER]
Item 3 (Purchasing Lender[s]): [INSERT NAME[S] OF
PURCHASING LENDER[S]]
Item 4 (Signatures of Parties
to Transfer Supplement):
[NAME OF TRANSFEROR LENDER] ,
----------------------------------
as Transferor Lender
By:
--------------------------------
Title:
[NAME OF PURCHASING LENDER] ,
----------------------------------
as Purchasing Lender
By:
--------------------------------
Title:
[NAME OF PURCHASING LENDER] ,
----------------------------------
as Purchasing Lender
By:
--------------------------------
Title:
[FOLLOWING TWO CONSENTS REQUIRED ONLY WHEN PURCHASING
LENDER IS NOT ALREADY A LENDER [OR AN AFFILIATE OF A
LENDER]]
CONSENTED TO AND ACKNOWLEDGED:
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ CORPORATION
By:
--------------------------------
Title:
BANK OF AMERICA NATIONAL TRUST AND
SAVINGS ASSOCIATION,
as Administrative Agent
By:
--------------------------------
Title:
ACCEPTED FOR RECORDATION IN
PURCHASING LENDER REGISTER:
BANK OF AMERICA NATIONAL TRUST AND
SAVINGS ASSOCIATION,
as Administrative Agent
By:
--------------------------------
Title:
-2-
SCHEDULE II
TO
TRANSFER SUPPLEMENT
LIST OF LENDING OFFICES, ADDRESSES
FOR NOTICES AND COMMITTED AMOUNTS
[NAME OF TRANSFEROR LENDER] REVISED COMMITMENT AND LOAN AMOUNTS:
Revolving Credit Committed Amount $__________
Additional Committed Amount $__________
REVISED COMMITMENT PERCENTAGE: __________
[NAME OF PURCHASING LENDER] NEW COMMITMENT AND LOAN AMOUNTS:
Revolving Credit Committed Amount $__________
Additional Committed Amount $__________
NEW COMMITMENT PERCENTAGE: __________
Administrative Information
For Purchasing Lender:
Address:
-------------------------
-------------------------
Attention:
-------------------------
Telephone:
-------------------------
Telex:
----------------------------
(Answerback: )
----------------------
Telecopier:
------------------------
SCHEDULE III
TO
TRANSFER SUPPLEMENT
TRANSFER EFFECTIVE NOTICE
To: [INSERT NAME OF BORROWER, TRANSFEROR
LENDER AND EACH PURCHASING LENDER]
The undersigned, as Administrative Agent under the Short Term Revolving
Credit Agreement, dated as of February 12, 1999, by and among ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Corporation, a New York corporation (the "BORROWER"), the Guarantors party
thereto from time to time, the Lenders party thereto from time to time and Bank
of America National Trust and Savings Association, as Administrative Agent for
the Lenders (as amended, modified or supplemented from time to time, the "CREDIT
AGREEMENT"), acknowledges receipt of five executed counterparts of a completed
Transfer Supplement, dated _________, ____, from [NAME OF TRANSFEROR LENDER] to
[NAME OF EACH PURCHASING LENDER] (the "TRANSFER SUPPLEMENT"). Terms defined in
the Transfer Supplement are used herein as therein defined.
1. Pursuant to the Transfer Supplement, you are advised that the
Transfer Effective Date will be _________, ____. [INSERT FIFTH BUSINESS DAY
FOLLOWING DATE OF TRANSFER EFFECTIVE NOTICE OR OTHER DATE AGREED TO AMONG THE
TRANSFEROR LENDER, THE PURCHASING LENDER, THE ADMINISTRATIVE AGENT AND THE
BORROWER.]
2. Pursuant to Section 10.14(c) of the Credit Agreement, the
Transferor Lender has delivered to the Administrative Agent the Transferor
Lender Notes.
3. Section 10.14(c) of the Credit Agreement provides that, to the
extent requested by the Purchasing Lender, the Borrower is to deliver to the
Administrative Agent on or before the Assignment Effective Date the following
Notes, each dated the date of the Note it replaces.
[DESCRIBE EACH NEW REVOLVING CREDIT NOTE AND COMPETITIVE BID NOTE FOR
TRANSFEROR LENDER AND PURCHASING LENDER AS TO DATE (AS REQUIRED BY THE CREDIT
AGREEMENT), PRINCIPAL AMOUNT AND PAYEE.]
4. The Transfer Supplement provides that each Purchasing Lender is to
pay its Purchase Price to the Transferor Lender at or before 12:00 o'clock Noon,
local time at the Transferor Lender's lending office specified in Schedule II to
the Transfer Supplement, on the Transfer Effective Date in immediately available
funds.
Very truly yours,
BANK OF AMERICA NATIONAL TRUST AND
SAVINGS ASSOCIATION, as Administrative
Agent
By:
-------------------------------------
Title:
EXHIBIT H
SUBSIDIARY GUARANTY AGREEMENT
------------ --, ----
Bank of America National Trust and Savings
Association, as Administrative Agent for
the Lenders party to the Short Term
Revolving Credit Agreement dated as of
February 12, 1999 among ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Corporation (the "BORROWER"), the
Guarantors party thereto from time to time,
the Lenders party thereto from time to
time, and Bank of America National Trust
and Savings Association, as Administrative
Agent (the "CREDIT AGREEMENT")
Ladies and Gentlemen:
Reference is made to the Credit Agreement described above. Terms not
defined herein which are defined in the Credit Agreement shall have for the
purposes hereof the meaning provided therein.
The undersigned, [NAME OF SUBSIDIARY GUARANTOR], a [JURISDICTION OF
INCORPORATION] corporation, hereby acknowledges that it is a "GUARANTOR" for all
purposes of the Credit Agreement, effective from the date hereof. The
undersigned confirms that the representations and warranties set forth in
Section 3 of the Credit Agreement are true and correct as to the undersigned as
of the date hereof (it being understood and agreed that any representation or
warranty which by its terms is made as of a specified date shall be required to
be true and correct in all material respects only as of such specified date).
Without limiting the generality of the foregoing, the undersigned
hereby agrees to perform all the obligations of a Guarantor under, and to be
bound in all respects by the terms of, the Credit Agreement, including without
limitation Article IX thereof, to the same extent and with the same force and
effect as if the undersigned were a direct signatory thereto.
This Agreement shall be construed in accordance with and governed by
the internal laws of the State of New York.
Very truly yours,
[NAME OF SUBSIDIARY GUARANTOR]
By
Title:
------------------------------
EXHIBIT I
JOINDER TO REVOLVING CREDIT AGREEMENT
------------ --, ----
Bank of America National Trust and Savings
Association, as Administrative Agent for
the Lenders party to the Short Term
Revolving Credit Agreement dated as of
February 12, 1999 among ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Corporation (the "BORROWER"), the
Guarantors party thereto from time to time,
the Lenders party thereto from time to
time, and Bank of America National Trust
and Savings Association, as Administrative
Agent (the "CREDIT AGREEMENT")
Ladies and Gentlemen:
Reference is made to the Credit Agreement described above. Terms not
defined herein which are defined in the Credit Agreement shall have for the
purposes hereof the meaning provided therein.
Pursuant to Section 1.04 of the Credit Agreement, the undersigned
hereby joins in the Credit Agreement for the purposes of becoming a party
thereto as one of the "Lenders" and agrees to comply with all of the terms and
conditions of the Credit Agreement. The undersigned agrees (i) to undertake all
of the obligations of a Lender under the Credit Agreement and (ii) to provide
the Revolving Credit Commitment in the amount set forth below under the terms
and conditions in the Credit Agreement. The undersigned hereby irrevocably
appoints the Administrative Agent to act as Administrative Agent for the
undersigned under the Credit Agreement and the other Loan Documents, all in
accordance with Article VIII of the Credit Agreement and the other provisions of
the Credit Agreement and the other Loan Documents.
IN WITNESS WHEREOF, the undersigned has executed this Supplement as of
the date first above written.
--------------------------------------
as Lender
By:
-----------------------------------
Title:
-----------------------------
Revolving Credit
Commitment Amount: $
-----------------
Address for Notices:
--------------------------------------
--------------------------------------
--------------------------------------
Attention:
---------------------------
Telephone:
---------------------------
Telecopier:
---------------------------
EXHIBIT J
PLEDGE AGREEMENT
PLEDGE AGREEMENT, dated as of February 12, 1999 (as amended, modified
or supplemented from time to time, this "AGREEMENT"), made by each of the
undersigned pledgors (each a "PLEDGOR", and together with any entity that
becomes a party hereto pursuant to Section 19 hereof, the "PLEDGORS"), in favor
of BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION, as collateral agent,
for the benefit of the Secured Creditors (as defined below) (in such capacity
and together with any successor thereto, the "PLEDGEE"). Except as otherwise
defined herein, terms used herein and defined in the Credit Agreements (as
defined below) shall be used herein as therein defined.
WITNESSETH:
WHEREAS, ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Corporation (the "BORROWER"), the Guarantors
from time to time party thereto, various lenders from time to time party thereto
(the "BANKS"), ABN AMRO Bank N.V. and First Union National Bank, as
Documentation Agent and Syndication Agent, respectively (in such capacity, the
"DOCUMENTATION AGENT" and the "SYNDICATION AGENT", respectively), and Bank of
America National Trust and Savings Association, as Administrative Agent (in such
capacity and together with any successor thereto, the "ADMINISTRATIVE AGENT"
and, together with the Pledgee, the Documentation Agent, the Syndication Agent
and the Banks and their respective successors and assigns, the "BANK
CREDITORS"), have entered into a Revolving Credit Agreement and a Short Term
Revolving Credit Agreement, each dated as of February 12, 1999, providing for
the extensions of credit to the Borrower as contemplated therein (as used
herein, the term "CREDIT AGREEMENTS" means the Credit Agreements described above
in this paragraph, as the same may be amended, modified, extended, renewed,
replaced, restated, supplemented or refinanced from time to time, and including
any agreement extending the maturity of, or refinancing or restructuring
(including, but not limited to, the inclusion of additional borrowers or
guarantors thereunder or any increase in the amount borrowed) all or any portion
of, the indebtedness under such agreement or any successor agreement, whether or
not with the same agent, trustee, representative, lenders or holders;
WHEREAS, pursuant to the Guaranty, the Guarantors have jointly and
severally guaranteed to the Bank Creditors the payment when due of all
obligations and liabilities of the Borrower under or with respect to the Loan
Documents;
WHEREAS, the Borrower on November 15, 1995 issued $200,000,000 in
aggregate principal amount of its 6-3/4% Notes due November 15, 2005 (the
"6-3/4% NOTES") (with the holders from time to time of such 6-3/4% Notes being
herein called the "NOTEHOLDERS") pursuant to an Indenture, dated as of November
15, 1995, by and between the Borrower and ▇▇▇▇▇▇ Trust and Savings Bank, as
trustee (together with any successor thereto, the "TRUSTEE") on behalf of the
Noteholders (as amended, modified or supplemented from time to time, the
"INDENTURE");
WHEREAS, the Pledgors have issued guarantees of the payment when due of
all of the obligations and liabilities of the Borrower under or with respect to
the 6-3/4% Notes and the Indenture (with any such guarantees, together with the
6-3/4% Notes and Indenture being herein collectively called the "NOTE
DOCUMENTS");
WHEREAS, it is a condition precedent to the extensions of credit under
the Credit Agreements, and the Indenture requires, concurrently with the
execution and delivery of the Credit Agreements by the Guarantors, that each
Pledgor shall have executed and delivered to the Pledgee this Agreement;
WHEREAS, it is contemplated that the Pledged Instruments (as defined
below) will be pledged to secure the "CREDIT DOCUMENT OBLIGATIONS" and the "NOTE
OBLIGATIONS" and all other amounts comprising "Obligations" (as each such term
is hereinafter defined) on an equal and ratable basis, as contemplated hereby,
and that in connection therewith, the Pledgee, as collateral agent hereunder,
shall act as the "Collateral Agent" for the benefit of the Bank Creditors, the
Noteholders and the other Secured Creditors; and
WHEREAS, each Pledgor desires to execute this Agreement to satisfy the
conditions described in the second preceding paragraph;
NOW, THEREFORE, in consideration of the benefits accruing to each
Pledgor, the receipt and sufficiency of which are hereby acknowledged, each
Pledgor hereby makes the following representations and warranties to the Pledgee
and hereby covenants and agrees with the Pledgee as follows:
SECTION 1. SECURITY FOR OBLIGATIONS; DEFINITIONS.
(a) This Agreement is made by each Pledgor in favor of the Pledgee for
the benefit of the Bank Creditors, the Noteholders and the Trustee
(collectively, together with the Pledgee, the "SECURED CREDITORS"), to secure on
an equal and ratable basis:
(i) the full and prompt payment when due (whether at the
stated maturity, by acceleration or otherwise) of all obligations
(including obligations which, but for the automatic stay under Section
362(a) of the Bankruptcy Code, would become due (the "BANKRUPTCY CODE"
as used herein shall mean Title 11 of the United States Code entitled
"BANKRUPTCY" as now or hereafter in effect, or any successor thereto)
and liabilities (including, without limitation, indemnities, fees and
interest thereon) of such Pledgor to the Bank Creditors, whether now
existing or hereafter incurred under, arising out of or in connection
with the Credit Agreements and all other Loan Documents to which it is
at any time a party (including, without limitation, all such
obligations and liabilities of such Pledgor under the Credit Agreements
(if a party thereto) and under any guaranty by it of the obligations
under the Credit Agreements) and the due performance and compliance by
such Pledgor with the terms of each such Loan Document (all such
obligations and liabilities under this clause (i) being herein
collectively called the "CREDIT DOCUMENT OBLIGATIONS");
-2-
(ii) the full and prompt payment when due (whether at the
stated maturity, by acceleration or otherwise) of all obligations
(including obligations which, but for the automatic stay under Section
362(a) of the Bankruptcy Code, would become due) and liabilities
(including, without limitation, indemnities, fees and interest thereon)
of such Pledgor to the Noteholders and the Trustee, whether now
existing or hereafter incurred under, arising out of or in connection
with the Note Documents to which such Pledgor is at any time a party
(including, without limitation, all such obligations and liabilities of
such Pledgor under the Indenture or any guaranty by it of the
obligations under the Indenture) and the due performance and compliance
by such Pledgor with all of the terms, conditions and agreements on its
part contained in each such Note Document (all such obligations and
liabilities under this clause (ii) being herein collectively called the
"NOTE OBLIGATIONS");
(iii) any and all sums advanced by the Pledgee in order to
preserve the Collateral (as hereinafter defined) or preserve its
security interest in the Collateral;
(iv) in the event of any proceeding for the collection or
enforcement of any indebtedness, obligations, or liabilities referred
to in clauses (i) through (iii) above, after an Event of Default (such
term, as used in this Agreement, shall mean (a) any "Event of Default"
at any time under, and as defined in, either of the Credit Agreements,
and (b) any payment default (after the expiration of any applicable
grace period) on any of the Obligations secured hereunder at such time)
shall have occurred and be continuing, the reasonable expenses of
retaking, holding, preparing for sale or otherwise disposing or
realizing on the Collateral, or of any exercise by the Pledgee of its
rights hereunder, together with reasonable attorneys' fees and court
costs; and
(v) all amounts paid by any Secured Creditor as to which such
Secured Creditor has the right to reimbursement under Section 9 of this
Agreement;
all such obligations, liabilities, sums and expenses set forth in clauses (i)
through (v) of this Section 1, being herein collectively called the
"Obligations," it being acknowledged and agreed that the "Obligations" shall
include extensions of credit of the type described above, whether outstanding on
the date of this Agreement or extended from time to time after the date of this
Agreement.
(b) As used herein, the term "Instruments" shall mean (i) a promissory
note dated February 10, 1999 of ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Constructors, Inc.
("CONSTRUCTORS") in the amount of $10,000,000 payable to the order of ▇▇▇▇▇▇
▇▇▇▇▇▇▇ USA Corporation; (ii) a promissory note dated February 10, 1999 of
Constructors in the amount of $10,000,000 payable to the order of ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Energy International, Inc. and (iii) a promissory note dated February 10, 1999
of Constructors in the amount of $10,000,000 payable to the order of ▇▇▇▇▇▇
▇▇▇▇▇▇▇ Energy Corporation.
(c) All Instruments at any time pledged or required to be pledged
hereunder is hereinafter called the "Pledged Instruments," which together with
(i) all proceeds thereof, including any instruments, securities and moneys
received and at the time held by the Pledgee
-3-
hereunder, and (ii) all principal, interest, cash, rights, instruments and other
property or proceeds from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of the Pledged
Instruments are hereinafter called the "Collateral".
SECTION 2. PLEDGE OF INSTRUMENTS.
To secure all Obligations of such Pledgor and for the purposes set
forth in Section 1 hereof, each Pledgor hereby: (i) grants to the Pledgee a
first priority security interest in all of the Collateral owned by such Pledgor;
(ii) pledges and deposits as security with the Pledgee the Pledged Instruments
owned by such Pledgor on the date hereof, and delivers to the Pledgee such
Pledged Instruments, duly endorsed in blank by such Pledgor, or such other
instruments of transfer as are reasonably acceptable to the Pledgee; and (iii)
assigns, transfers, hypothecates, mortgages, charges and sets over to the
Pledgee all of such Pledgor's right, title and interest in and to such Pledged
Instrument, to be held by the Pledgee, upon the terms and conditions set forth
in this Agreement.
SECTION 3. RIGHTS, ETC., WHILE NO EVENT OF DEFAULT.
Unless and until an Event of Default shall have occurred and be
continuing, each Pledgor shall be entitled to exercise any and all rights
pertaining to the Pledged Instruments; PROVIDED, that no action shall be taken
which would violate or be inconsistent with any of the terms of this Agreement
or any other Secured Debt Agreement (as hereinafter defined). All such rights of
such Pledgor shall cease in case an Event of Default shall occur and be
continuing, and Section 5 hereof shall become applicable.
SECTION 4. INTEREST AND OTHER DISTRIBUTIONS.
Except as provided in Section 5 hereof, all payments in respect of the
Pledged Instruments shall be paid to the respective Pledgor.
SECTION 5. REMEDIES IN CASE OF EVENT OF DEFAULT.
In case an Event of Default shall have occurred and be continuing, the
Pledgee shall be entitled to exercise all of its rights, powers and remedies
(whether vested in it by this Agreement, by any other Loan Document, or by any
Note Document (with all of the Documents listed above being herein collectively
called the "SECURED DEBT AGREEMENTS") or by law) for the protection and
enforcement of its rights in respect of the Collateral, and the Pledgee shall be
entitled to exercise all the rights and remedies of a secured party under the
Uniform Commercial Code and also shall be entitled, without limitation, to
exercise the following rights, which each Pledgor hereby agrees to be
commercially reasonable:
(i) to receive all amounts payable in respect of the
Collateral otherwise payable to such Pledgor under Section 4 hereof;
-4-
(ii) to instruct makers of the Pledged Instruments to make any
and all payments in respect of the Pledged Instruments directly to the
Pledgee;
(iii) to transfer all or any part of the Pledged Instruments
into the Pledgee's name or the name of its nominee or nominees;
(iv) to take any action in respect of the Collateral and
otherwise act with respect thereto as though it were the outright owner
thereof; and
(v) at any time or from time to time to sell, assign and
deliver, or grant options to purchase, all or any part of the
Collateral, or any interest therein, at any public or private sale,
without demand of performance, advertisement or notice of intention to
sell or of the time or place of sale or adjournment thereof or to
redeem or otherwise (all of which are hereby waived by each Pledgor),
for cash, on credit or for other property, for immediate or future
delivery without any assumption of credit risk, and for such price or
prices and on such terms as the Pledgee in its absolute discretion may
determine; PROVIDED, that at least 10 Business Days' notice of the time
and place of any such sale shall be given to such Pledgor. Each Pledgor
hereby waives and releases to the fullest extent permitted by law any
right or equity of redemption with respect to the Collateral, whether
before or after sale hereunder, and all rights, if any, of marshalling
the Collateral and any other security for the Obligations or otherwise.
At any such sale, unless prohibited by applicable law, the Pledgee on
behalf of the Secured Creditors may bid for and purchase all or any
part of the Collateral so sold free from any such right or equity of
redemption. Each purchaser at any such sale shall hold the property
sold absolutely free from any claim or right on the part of any
Pledgor, and each Pledgor hereby waives (to the extent permitted by
law) all rights of redemption, stay and/or appraisal which it now has
or may at any time in the future have under any rule of law or statute
now existing or hereafter enacted. The Pledgee may adjourn any public
or private sale from time to time by announcement at the time and place
fixed therefor, and such sale may, without further notice, be made at
the time and place to which it was so adjourned. Each Pledgor hereby
waives any claims against the Pledgee arising by reason of the fact
that the price at which any Collateral may have been sold at such a
private sale was less than the price which might have been obtained at
a public sale, even if the Pledgee accepts the first offer received and
does not offer such Collateral to more than one offeree. If the
proceeds of any sale or other disposition of the Collateral are
insufficient to pay all the Obligations, the Pledgors shall be liable
for the deficiency and the fees of any attorneys employed by the
Pledgee to collect such deficiency. Neither the Pledgee nor any other
Secured Creditor shall be liable for failure to collect or realize upon
any or all of the Collateral or for any delay in so doing nor shall any
of them be under any obligation to take any action whatsoever with
regard thereto.
SECTION 6. REMEDIES, ETC., CUMULATIVE.
Each right, power and remedy of the Pledgee provided for in this
Agreement or in any other Secured Debt Agreement or now or hereafter existing at
law or in equity or by statute shall be cumulative and concurrent and shall be
in addition to every other such right, power or remedy.
-5-
The exercise or beginning of the exercise by the Pledgee or any other Secured
Creditor of any one or more of the rights, powers or remedies provided for in
this Agreement or in any other Secured Debt Agreement or now or hereafter
existing at law or in equity or by statute or otherwise shall not preclude the
simultaneous or later exercise by the Pledgee or any other Secured Creditor of
all such other rights, powers or remedies, and no failure or delay on the part
of the Pledgee or any other Secured Creditor to exercise any such right, power
or remedy shall operate as a waiver thereof. The Secured Creditors agree that
this Agreement may be enforced only by the Pledgee acting upon the instructions
of the Required Secured Creditors (as defined in Annex A hereto) and that no
other Secured Creditor shall have any right individually to seek to enforce or
to enforce this Agreement or to realize upon the security to be granted hereby,
it being understood and agreed that such rights and remedies may be exercised by
the Pledgee for the benefit of the Secured Creditors upon the terms of this
Agreement.
SECTION 7. APPLICATION OF PROCEEDS.
(a) All moneys collected by the Pledgee upon any sale or other
disposition of the Collateral of each Pledgor, together with all other moneys
received by the Pledgee hereunder, shall be applied as follows:
(i) first, to the payment of all Obligations owing to the
Pledgee of the type provided in clauses (iii), (iv) and (v) of the
definition of Obligations in Section 1 hereof;
(ii) second, to the extent proceeds remain after the
application pursuant to the preceding clause (i), an amount equal to
the outstanding Obligations shall be paid to the Secured Creditors as
provided in Section 7(d) hereof, with each Secured Creditor receiving
an amount equal to its outstanding Obligations of such Pledgor or, if
the proceeds are insufficient to pay in full all such Obligations, its
Pro Rata Share (as hereinafter defined) of the amount remaining to be
distributed; and
(iii) third, to the extent proceeds remain after the application
pursuant to the preceding clauses (i) and (ii), inclusive, and
following the termination of this Agreement pursuant to Section 15
hereof, to the relevant Pledgor or to whomever may be lawfully entitled
to receive such surplus.
(b) For purposes of this Agreement, "Pro Rata Share" shall mean, when
calculating a Secured Creditor's portion of any distribution or amount, that
amount (expressed as a percentage) equal to a fraction the numerator of which is
the then unpaid amount of such Secured Creditor's Obligations and the
denominator of which is the then outstanding amount of all Obligations.
(c) If the Bank Creditors are to receive a distribution in accordance
with the procedures set forth above in this Section 7 on account of undrawn
amounts with respect to letters of credit issued under the Credit Agreements,
such amounts shall be paid to the Administrative Agent under the Credit
Agreements and held by it, for the equal and ratable benefit of the Bank
Creditors as such. If any amounts are held as cash security pursuant to the
immediately preceding sentence, then upon the termination of all outstanding
letters of credit, and after the
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application of all such cash security to the repayment of all Obligations owing
to the Bank Creditors after giving effect to the termination of all such letters
of credit, if there remains any excess cash, such excess cash shall be returned
by the Administrative Agent to the Pledgee for distribution in accordance with
Section 7(a) hereof.
(d) Except as set forth in Section 7(c) hereof, all payments required
to be made hereunder shall be made (i) if to the Bank Creditors, to the
Administrative Agent under the Credit Agreements for the account of the Bank
Creditors, and (ii) if to any other Secured Creditors (other than the Pledgee),
to the Trustee or paying agent (each a "REPRESENTATIVE") for such Secured
Creditors or, in the absence of such a Representative, directly to the other
Secured Creditors.
(e) For purposes of applying payments received in accordance with this
Section 7, the Pledgee shall be entitled to rely upon (i) the Administrative
Agent under the Credit Agreements and (ii) the Representative for any other
Secured Creditors or, in the absence of such a Representative, upon the
respective Secured Creditors for a determination (which the Administrative
Agent, each Representative for any other Secured Creditors and the Secured
Creditors agree (or shall agree) to provide upon request of the Pledgee) of the
outstanding Primary Obligations and Secondary Obligations owed to the Secured
Creditors.
(f) It is understood and agreed that each Pledgor shall remain liable
to the extent of any deficiency between the amount of the proceeds of the
Collateral pledged by it hereunder and the aggregate amount of the Obligations
of such Pledgor.
SECTION 8. PURCHASERS OF COLLATERAL.
Upon any sale of the Collateral by the Pledgee hereunder (whether by
virtue of the power of sale herein granted, pursuant to judicial process or
otherwise), the receipt of the Pledgee or the officer making the sale shall be a
sufficient discharge to the purchaser or purchasers of the Collateral so sold,
and such purchaser or purchasers shall not be obligated to see to the
application of any part of the purchase money paid over to the Pledgee or such
officer or be answerable in any way for the misapplication or nonapplication
thereof.
SECTION 9. INDEMNITY.
Each Pledgor jointly and severally agrees (i) to indemnify and hold
harmless the Pledgee in such capacity and each Representative of a Secured
Creditor in its capacity as such from and against any and all claims, demands,
losses, judgments and liabilities of whatsoever kind or nature, and (ii) to
reimburse the Pledgee in such capacity and each Representative of a Secured
Creditor in its capacity as such for all reasonable costs and expenses,
including reasonable attorneys' fees, in each case to the extent growing out of
or resulting from the exercise by the Pledgee of any right or remedy granted to
it hereunder except, with respect to clauses (i) and (ii) above, to the extent
arising from the Pledgee's or such other Secured Creditor's gross negligence or
willful misconduct. In no event shall the Pledgee be liable, in the absence of
gross negligence or willful misconduct on its part, for any matter or thing in
connection with this Agreement other
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than to account for moneys actually received by it in accordance with the terms
hereof. If and to the extent that the obligations of the Pledgors under this
Section 9 are unenforceable for any reason, each Pledgor hereby agrees to make
the maximum contribution to the payment and satisfaction of such obligations
which is permissible under applicable law.
SECTION 10. FURTHER ASSURANCES; POWER OF ATTORNEY.
(a) Each Pledgor agrees that it will join with the Pledgee in executing
and, at such Pledgor's own expense, file and refile under the applicable Uniform
Commercial Code or such other law such financing statements, continuation
statements and other documents in such offices as the Pledgee may reasonably
deem necessary or appropriate and wherever required or permitted by law in order
to perfect and preserve the Pledgee's security interest in the Collateral and
hereby authorizes the Pledgee to file financing statements and amendments
thereto relative to all or any part of the Collateral without the signature of
such Pledgor where permitted by law, and agrees to do such further acts and
things and to execute and deliver to the Pledgee such additional conveyances,
assignments, agreements and instruments as the Pledgee may reasonably deem
necessary or advisable to carry into effect the purposes of this Agreement or to
further assure and confirm unto the Pledgee its rights, powers and remedies
hereunder.
(b) Each Pledgor hereby appoints the Pledgee such Pledgor's
attorney-in-fact, with full authority in the place and stead of such Pledgor and
in the name of such Pledgor or otherwise, to act from time to time after the
occurrence and during the continuance of an Event of Default in the Pledgee's
reasonable discretion to take any action and to execute any instrument which the
Pledgee may deem necessary or advisable to accomplish the purposes of this
Section 10.
SECTION 11. THE PLEDGEE AS AGENT.
The Pledgee will hold in accordance with this Agreement all items of
the Collateral at any time received under this Agreement. It is expressly
understood and agreed that the obligations of the Pledgee as holder of the
Collateral and interests therein and with respect to the disposition thereof,
and otherwise under this Agreement, are only those expressly set forth in this
Agreement. The Pledgee shall act hereunder on the terms and conditions set forth
herein and in Annex A hereto, the terms of which shall be deemed incorporated
herein by reference as fully as if same were set forth herein in their entirety.
SECTION 12. TRANSFER BY PLEDGORS.
No Pledgor will sell or otherwise dispose of, grant any option with
respect to, or mortgage, pledge or otherwise encumber any of the Collateral or
any interest therein (except in accordance with the terms of this Agreement and
as permitted by the terms of the Secured Debt Agreements).
SECTION 13. REPRESENTATIONS, WARRANTIES AND COVENANTS OF PLEDGORS.
(a) Each Pledgor represents, warrants and covenants that:
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(i) it is the legal, record and beneficial owner of, and has
good title to, all Pledged Instruments purported to be owned by such
Pledgor, subject to no Lien, except the Liens created by this
Agreement;
(ii) it has full power, authority and legal right to pledge all
the Pledged Instruments;
(iii) this Agreement has been duly authorized, executed and
delivered by such Pledgor and constitutes the legal, valid and binding
obligation of such Pledgor enforceable in accordance with its terms,
except to the extent that the enforceability hereof may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting creditors' rights generally and by equitable
principles (regardless of whether enforcement is sought in equity or at
law);
(iv) no consent of any other party (including, without
limitation, any stockholder or creditor of such Pledgor or any of its
Subsidiaries) and no consent, license, permit, approval or
authorization of, exemption by, notice or report to, or registration,
filing or declaration with, any governmental authority is required to
be obtained by such Pledgor in connection with the execution, delivery
or performance of this Agreement, or in connection with the exercise of
its rights and remedies pursuant to this Agreement, in each case except
those which have been obtained or made or as may be required by laws
affecting the offer and sale of securities generally in connection with
the exercise by the Pledgee of certain of its remedies hereunder;
(v) the execution, delivery and performance of this Agreement
by such Pledgor does not violate any provision of any applicable law or
regulation or of any order, judgment, writ, award or decree of any
court, arbitrator or governmental authority, domestic or foreign, or of
the certificate of incorporation or by-laws (or analogous
organizational documents) of such Pledgor or of any securities issued
by such Pledgor or any of its Subsidiaries, or of any mortgage,
indenture, lease, deed of trust, credit agreement or loan agreement, or
any other material agreement, contract or instrument to which such
Pledgor or any of its Subsidiaries is a party or which purports to be
binding upon such Pledgor or any of its Subsidiaries or upon any of
their respective assets and will not result in the creation or
imposition (or the obligation to create or impose) of any lien or
encumbrance on any of the assets of such Pledgor or any of its
Subsidiaries except as contemplated by this Agreement;
(vi) all Pledged Instruments have been duly and validly issued;
and
(vii) the pledge, assignment and delivery (which delivery has
been made) to the Pledgee of the Pledged Instruments creates a valid
and perfected first priority security interest in such Pledged
Instruments, subject to no prior lien or encumbrance or to any
agreement purporting to grant to any third party (except the Secured
Creditors) a lien or encumbrance on the property or assets of such
Pledgor which would include the Instruments.
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Each Pledgor covenants and agrees that it will defend the Pledgee's
right, title and security interest in and to the Collateral and the proceeds
thereof against the claims and demands of all persons whomsoever; and such
Pledgor covenants and agrees that it will have like title to and right to pledge
any other property at any time hereafter pledged to the Pledgee as Collateral
hereunder and will likewise defend the right thereto and security interest
therein of the Pledgee and the other Secured Creditors.
(b) The Pledgors hereby agree that the rights created by the
subordinated provisions of the guarantees executed by the Pledgors related to
the Note Documents and the subordination provisions of the Guaranty which each
provide for the subordination of the indebtedness of the Borrower owing to any
Pledgor to the Obligations of the Borrower owing to the Secured Creditors shall
be on a parity basis for the equal and ratable benefit of the Secured Creditors.
SECTION 14. PLEDGORS' OBLIGATIONS ABSOLUTE, ETC.
The obligations of each Pledgor under this Agreement shall be absolute
and unconditional and shall remain in full force and effect without regard to,
and shall not be released, suspended, discharged, terminated or otherwise
affected by, any circumstance or occurrence whatsoever, including, without
limitation: (i) any renewal, extension, amendment or modification of or addition
or supplement to or deletion from any Secured Debt Agreement or any other
instrument or agreement referred to therein, or any assignment or transfer of
any thereof; (ii) any waiver, consent, extension, indulgence or other action or
inaction under or in respect of any such agreement or instrument or this
Agreement; (iii) any furnishing of any additional security to the Pledgee or its
assignee or any acceptance thereof or any release of any security by the Pledgee
or its assignee; (iv) any limitation on any party's liability or obligations
under any such instrument or agreement or any invalidity or unenforceability, in
whole or in part, of any such instrument or agreement or any term thereof; (v)
any limitation on any other Pledgor's liability or obligations under this
Agreement or under any other Secured Debt Agreement or any invalidity or
unenforceability, in whole or in part, of this Agreement or any other Secured
Debt Agreement or any term thereof; or (vi) any bankruptcy, insolvency,
reorganization, composition, adjustment, dissolution, liquidation or other like
proceeding relating to such Pledgor or any Subsidiary of such Pledgor, or any
action taken with respect to this Agreement by any trustee or receiver, or by
any court, in any such proceeding, whether or not such Pledgor shall have notice
or knowledge of any of the foregoing.
SECTION 15. TERMINATION, RELEASE.
(a) After the Termination Date (as defined below), this Agreement shall
terminate (provided that all indemnities set forth herein including, without
limitation, in Section 9 hereof shall survive any such termination) and the
Pledgee, at the request and expense of the respective Pledgor, will promptly
execute and deliver to such Pledgor a proper instrument or instruments
acknowledging the satisfaction and termination of this Agreement, and will duly
assign, transfer and deliver to such Pledgor (without recourse and without any
representation or warranty) such of the Collateral as may be in the possession
of the Pledgee and as has not theretofore been sold or otherwise applied or
released pursuant to this Agreement. As used in this Agreement,
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"Termination Date" shall mean the earliest of (i) the date upon which the Total
Revolving Credit Commitment has been terminated, no Note under the Credit
Agreements is outstanding and all other Credit Document Obligations (excluding
normal continuing indemnity obligations which survive in accordance with their
terms, so long as no amounts are then due and payable in respect thereof) have
been indefeasibly paid in full, (ii) the date upon which the Credit Documents
are amended to release all Collateral subject to this Agreement and (iii) the
date on which the Indenture no longer requires equal and ratable security or the
6-3/4% Notes have been paid in full.
(b) In the event that any part of the Collateral is sold (other than to
any Credit Party) in connection with a sale permitted by the Secured Debt
Agreements or is otherwise released at the direction of the Required Secured
Creditors, the Pledgee, at the request and expense of such Pledgor will promptly
execute and deliver to such Pledgor a proper instrument or instruments
acknowledging such release, and will duly assign, transfer and deliver to such
Pledgor (without recourse and without any representation or warranty) such of
the Collateral as is then being (or has been) so sold, distributed or released
and as may be in possession of the Pledgee and has not theretofore been released
pursuant to this Agreement.
(c) At any time that a Pledgor desires that Collateral be released as
provided in the foregoing Section 15(a) or (b), it shall deliver to the Pledgee
a certificate signed by an authorized officer of such Pledgor stating that the
release of the respective Collateral is permitted pursuant to Section 15(a) or
(b), and the Pledgee shall be entitled (but not required) to conclusively rely
thereon.
SECTION 16. NOTICES, ETC.
Except as otherwise specified herein, all notices, requests, demands or
other communications to or upon the respective parties hereto shall be deemed to
have been given or made when delivered to the party to which such notice,
request, demand or other communication is required or permitted to be given or
made under this Agreement, addressed as follows:
(a) if to any Pledgor, at:
▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Attention: Vice President and Treasurer
Telephone No.: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier No.: (▇▇▇) ▇▇▇-▇▇▇▇
(b) if to the Pledgee, at:
Bank of America National Trust and Savings Association
▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
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Telephone No.: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier No.: (▇▇▇) ▇▇▇-▇▇▇▇
(c) if to any Bank Creditor (other than the Pledgee), (x) to the
Administrative Agent, at the address of the Administrative Agent specified in
the Credit Agreements or (y) at such address as such Bank Creditor shall have
specified in the Credit Agreements;
(d) if to any other Secured Creditor, (x) to the Representative for
such Secured Creditor or (y) if there is no such Representative, at such address
as such Secured Creditor shall have specified in writing to each Pledgor and the
Pledgee;
or at such other address as shall have been furnished in writing by any Person
described above to the party required to give notice hereunder.
SECTION 17. WAIVER; AMENDMENT.
None of the terms and conditions of this Agreement may be changed,
waived, modified or varied in any manner whatsoever unless in writing duly
signed by each Pledgor directly affected thereby (it being understood that
additional Pledgors may be added as parties hereto from time to time in
accordance with Section 19 hereof and Pledgors may be released as parties hereto
in accordance with Sections 15 and 18 hereof and that no consent of any other
Pledgor or of the Secured Creditors shall be required in connection therewith)
and the Pledgee (with the written consent of the Required Lenders (or all the
Lenders if required by Section 10.03 of the Credit Agreements); PROVIDED, that
the Borrower certifies that any such change, waiver, modification or variance is
otherwise permitted by the terms of the respective Secured Debt Agreements or,
if not so permitted, that the requisite consents therefor have been obtained.
Notwithstanding anything to the contrary contained above, it is understood and
agreed that the Required Lenders may agree to modifications to this Agreement
for the purpose, among other things, of securing additional extensions of credit
(including, without limitation, pursuant to the Credit Agreements or any
refinancing or extension thereof), with such changes not being subject to the
proviso to the immediately preceding sentence. Furthermore, the proviso to the
second preceding sentence shall not apply to any release of Collateral effected
in accordance with the requirements of Section 18 of this Agreement, or any
other release of Collateral or termination of this Agreement so long as the
Borrower certifies that such actions will not violate the terms of any Secured
Debt Agreement then in effect.
SECTION 18. RELEASE OF GUARANTORS.
In the event any Pledgor party to the Guaranty is released from the
Guaranty, such Pledgor shall be released from this Agreement and this Agreement
shall, as to such Pledgor only, have no further force or effect.
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SECTION 19. ADDITIONAL PLEDGORS.
Pursuant to Section 5.15 of the Credit Agreements, certain Subsidiaries
of the Borrower may after the date hereof be required to enter into this
Agreement as a Pledgor. Upon execution and delivery, after the date hereof, by
the Pledgee and such Subsidiary of an instrument in the form of Exhibit A-2,
such Subsidiary shall become a Pledgor hereunder with the same force and effect
as if originally named as a Pledgor hereunder. Each Subsidiary which is required
to become a party to this Agreement shall so execute and deliver a copy of
Exhibit A-2 to the Pledgee and, at such time, shall execute a Pledge and
Security Agreement Supplement in the form of Exhibit A-1 to this Agreement with
respect to all Collateral of such Pledgor required to be pledged hereunder,
which Supplement shall be completed in accordance with Exhibit A-1. The
execution and delivery of any such instrument shall not require the consent of
any other Pledgor hereunder. Upon the execution and delivery by the Pledgee and
such Subsidiary of an instrument in the form of Exhibit A-2 as provided above,
it is understood and agreed that the pledge and security interests hereunder
shall apply to all Collateral of such additional Pledgor as provided in Section
2 hereof regardless of any failure of any additional Pledgor to deliver, or any
inaccurate information stated in, the Pledge and Security Agreement Supplement.
SECTION 20. RECOURSE.
This Agreement is made with full recourse to the Pledgors and pursuant
to and upon all representations, warranties, covenants and agreements on the
part of the Pledgors contained herein and otherwise in writing in connection
herewith.
SECTION 21. PLEDGEE NOT BOUND.
(a) The Pledgee shall not be obligated to perform or discharge any
obligation of any Pledgor as a result of the collateral assignment hereby
effected.
(b) The acceptance by the Pledgee of this Agreement, with all the
rights, powers, privileges and authority so created, shall not at any time or in
any event obligate the Pledgee to appear in or defend any action or proceeding
relating to the Collateral to which it is not a party, or to take any action
hereunder or thereunder, or to expend any money or incur any expenses or perform
or discharge any obligation, duty or liability under the Collateral.
SECTION 22. CONTINUING PLEDGORS.
The rights and obligations of each Pledgor (other than the respective
released Pledgor in the case of following clause (y)) hereunder shall remain in
full force and effect notwithstanding (x) the addition of any new Pledgor as a
party to this Agreement as contemplated by Section 19 hereof or otherwise and/or
(y) the release of any Pledgor under this Agreement as contemplated by Section
18 hereof or otherwise.
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SECTION 23. NO FRAUDULENT CONVEYANCE.
Each Pledgor hereby confirms that it is its intention that this
Agreement not constitute a fraudulent transfer or conveyance for purposes of any
bankruptcy, insolvency or similar law, the Uniform Fraudulent Conveyance Act or
any similar Federal, state or foreign law. To effectuate the foregoing
intention, each Pledgor hereby irrevocably agrees that its obligations and
liabilities hereunder shall be limited to the maximum amount as will, after
giving effect to such maximum amount and all other (contingent or otherwise)
liabilities of such Pledgor that are relevant under such laws, result in the
obligations and liabilities of such Pledgor hereunder in respect of such maximum
amount not constituting a fraudulent transfer or conveyance.
SECTION 24. MISCELLANEOUS.
This Agreement shall be binding upon the successors and assigns of each
Pledgor and shall inure to the benefit of and be enforceable by the Pledgee and
its successors and assigns; provided that no Pledgor may assign any of its
rights or obligations hereunder without the prior written consent of the Pledgee
(with the consent of the Required Lenders and, if required by Section 10.03 of
the Credit Agreement, all Lenders). THIS AGREEMENT SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK
(WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS). The headings in this
Agreement are for purposes of reference only and shall not limit or define the
meaning hereof. This Agreement may be executed in any number of counterparts,
each of which shall be an original, but all of which shall constitute one
instrument.
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IN WITNESS WHEREOF, each Pledgor has caused this Agreement to be duly
executed and delivered by its duly authorized officer on the date first above
written.
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ USA CORPORATION
BY:
-----------------------------------
TITLE:
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ENERGY INTERNATIONAL,
INC.
BY:
-----------------------------------
TITLE:
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ENERGY CORPORATION
BY:
-----------------------------------
TITLE:
ACCEPTED AND AGREED TO:
BANK OF AMERICA NATIONAL TRUST AND
SAVINGS ASSOCIATION, as Collateral
Agent and Pledgee
BY:
-----------------------------------
TITLE:
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ANNEX A
TO
PLEDGE AND SECURITY AGREEMENT
THE PLEDGEE
1. APPOINTMENT. The Secured Creditors, by their acceptance of the
benefits of the Pledge Agreement to which this Annex A is attached (the "Pledge
Agreement") hereby irrevocably designate Bank of America National Trust and
Savings Association (and any successor Pledgee) to act as specified herein and
therein. Unless otherwise defined herein, all capitalized terms used herein (x)
and defined in the Pledge Agreement, are used herein as therein defined and (y)
not defined in the Pledge Agreement, are used herein as defined in the Credit
Agreements referenced in the Pledge Agreement. Each Secured Creditor hereby
irrevocably authorizes, and each holder of any Obligation by the acceptance of
such Obligation and by the acceptance of the benefits of the Pledge Agreement
shall be deemed irrevocably to authorize, the Pledgee to take such action on its
behalf under the provisions of the Pledge Agreement and any instruments and
agreements referred to therein and to exercise such powers and to perform such
duties thereunder as are specifically delegated to or required of the Pledge
Agreement by the terms thereof and such other powers as are reasonably
incidental thereto. The Pledgee may perform any of its duties hereunder or
thereunder by or through its authorized agents, sub-agents or employees.
2. NATURE OF DUTIES. (a) The Pledgee shall have no duties or
responsibilities except those expressly set forth herein or in the Pledge
Agreement. The duties of the Pledgee shall be mechanical and administrative in
nature; the Pledgee shall not have by reason of the Pledge Agreement or any
other Secured Debt Agreement a fiduciary relationship in respect of any Secured
Creditor; and nothing in the Pledge Agreement or any other Secured Debt
Agreement, expressed or implied, is intended to or shall be so construed as to
impose upon the Pledgee any obligations in respect of the Pledge Agreement
except as expressly set forth herein and therein.
(b) The Pledgee shall not be responsible for insuring the Collateral or
for the payment of taxes, charges or assessments or discharging of Liens upon
the Collateral or otherwise as to the maintenance of the Collateral.
(c) The Pledgee shall not be required to ascertain or inquire as to the
performance by any Pledgor of any of the covenants or agreements contained in
the Pledge Agreement or any other Secured Debt Agreement.
(d) The Pledgee shall be under no obligation or duty to take any action
under, or with respect to, the Pledge Agreement if taking such action (i) would
subject the Pledgee to a tax in any jurisdiction where it is not then subject to
a tax or (ii) would require the Pledgee to qualify to do business, or obtain any
license, in any jurisdiction where it is not then so qualified or licensed or
(iii) would subject the Pledgee to in personam jurisdiction in any locations
where it is not then so subject.
ANNEX A
Page 2
(e) Notwithstanding any other provision of this Annex A, neither the
Pledgee nor any of its officers, directors, employees, affiliates or agents
shall, in its individual capacity, be personally liable for any action taken or
omitted to be taken by it in accordance with, or pursuant to this Annex A or the
Pledge Agreement except for its own gross negligence or willful misconduct.
3. LACK OF RELIANCE ON THE PLEDGEE. Independently and without
reliance upon the Pledgee, each Secured Creditor, to the extent it deems
appropriate, has made and shall continue to make (i) its own independent
investigation of the financial condition and affairs of each Pledgor and its
Subsidiaries in connection with the making and the continuance of the
Obligations and the taking or not taking of any action in connection therewith,
and (ii) its own appraisal of the creditworthiness of each Pledgor and its
Subsidiaries, and the Pledgee shall have no duty or responsibility, either
initially or on a continuing basis, to provide any Secured Creditor with any
credit or other information with respect thereto, whether coming into its
possession before the extension of any Obligations or the purchase of any notes
or at any time or times thereafter. The Pledgee shall not be responsible in any
manner whatsoever to any Secured Creditor for the correctness of any recitals,
statements, information, representations or warranties herein or in any
document, certificate or other writing delivered in connection herewith or for
the execution, effectiveness, genuineness, validity, enforceability, perfection,
collectibility, priority or sufficiency of the Pledge Agreement or the security
interests granted hereunder or the financial condition of any Pledgor or any
Subsidiary of any Pledgor or be required to make any inquiry concerning either
the performance or observance of any of the terms, provisions or conditions of
the Pledge Agreement, or the financial condition of any Pledgor or any
Subsidiary of any Pledgor, or the existence or possible existence of any default
or Event of Default. The Pledgee makes no representations as to the value or
condition of the Collateral or any part thereof, or as to the title of any
Pledgor thereto or as to the security afforded by the Pledge Agreement.
4. CERTAIN RIGHTS OF THE PLEDGEE. (a) No Secured Creditor shall have
the right to cause the Pledgee to take any action with respect to the
Collateral, with only the Required Secured Creditors having the right to direct
the Pledgee to take any such action. If the Pledgee shall request instructions
from the Required Secured Creditors, with respect to any act or action
(including failure to act) in connection with the Pledge Agreement, the Pledgee
shall be entitled to refrain from such act or taking such action unless and
until it shall have received instructions from the Required Secured Creditors
and to the extent requested, appropriate indemnification in respect of actions
to be taken, and the Pledgee shall not incur liability to any Person by reason
of so refraining. Without limiting the foregoing, no Secured Creditor shall have
any right of action whatsoever against the Pledgee as a result of the Pledgee
acting or refraining from acting hereunder in accordance with the instructions
of the Required Secured Creditors. As used herein, the term "Required Secured
Creditors" shall mean the holders of at least a majority of the then outstanding
Credit Document Obligations.
(b) Notwithstanding anything to the contrary contained herein, the
Pledgee is authorized, but not obligated, (i) to take any action reasonably
required to perfect or continue the
-2-
ANNEX A
Page 3
perfection of the liens on the Collateral for the benefit of the Secured
Creditors and (ii) when instructions from the Required Secured Creditors have
been requested by the Pledgee but have not yet been received, to take any action
which the Pledgee, in good faith, believes to be reasonably required to promote
and protect the interests of the Secured Creditors in the Collateral; PROVIDED
that once instructions have been received, the actions of the Pledgee shall be
governed thereby and the Pledgee shall not take any further action which would
be contrary thereto.
(c) Notwithstanding anything to the contrary contained herein or in the
Pledge Agreement, the Pledgee shall not be required to take any action that
exposes or, in the good faith judgment of the Pledgee may expose, the Pledgee or
its officers, directors, agents or employees to personal liability, unless the
Pledgee shall be adequately indemnified as provided herein, or that is, or in
the good faith judgment of the Pledgee may be, contrary to the Pledge Agreement,
any Secured Debt Agreement or applicable law.
5. RELIANCE. The Pledgee shall be entitled to rely, and shall be
fully protected in relying, upon, any note, writing, resolution, notice,
statement, certificate, telex, teletype or telescopes message, cablegram,
radiogram, order or other document or telephone message signed, sent or made by
the proper Person or entity, and, with respect to all legal matters pertaining
hereto or to the Pledge Agreement and its duties thereunder and hereunder, upon
advice of counsel selected by it.
6. INDEMNIFICATION. To the extent the Pledgee is not reimbursed and
indemnified by the Pledgors under the Pledge Agreement, the Bank Creditors will
reimburse and indemnify the Pledgee, in proportion to their respective
outstanding principal amounts of Obligations, for and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind or nature whatsoever which may be
imposed on, incurred by or asserted against the Pledgee in performing its duties
hereunder, or in any way relating to or arising out of its actions as Pledgee in
respect of the Pledge Agreement except for those resulting solely from the
Pledgee's own gross negligence or willful misconduct. The indemnities set forth
in this Section 6 shall survive the repayment of all Obligations, with the
respective indemnification at such time to be based upon the outstanding
principal amounts (determined as described above) of Obligations at the time of
the respective occurrence upon which the claim against the Pledgee is based or,
if same is not reasonably determinable, based upon the outstanding principal
amounts (determined as described above) of Obligations as in effect immediately
prior to the termination of the Pledge Agreement. The indemnities set forth in
this Section 6 are in addition to any indemnities provided by the Banks to the
Pledgee pursuant to the Credit Agreements.
7. THE PLEDGEE IN ITS INDIVIDUAL CAPACITY. With respect to its
obligations as a lender under the Credit Agreements and any other Loan Documents
to which the Pledgee is a party, and to act as agent under one or more of such
Loan Documents, the Pledgee shall have the rights and powers specified therein
and herein for a "Lender", or the "Administrative Agent", as the case may be,
and may exercise the same rights and powers as though it were not performing the
duties
-3-
ANNEX A
Page 4
specified herein; and the terms "Banks," "Required Lenders," "holders of Notes,"
or any similar terms shall, unless the context clearly otherwise indicates,
include the Pledgee in its individual capacity. The Pledgee and its affiliates
may accept deposits from, lend money to, and generally engage in any kind of
banking, investment banking, trust or other business with any Pledgor or any
Affiliate or Subsidiary of any Pledgor as if it were not performing the duties
specified herein or in the other Loan Documents, and may accept fees and other
consideration from the Pledgors for services in connection with the Credit
Agreements, the other Loan Documents and otherwise without having to account for
the same to the Secured Creditors.
8. HOLDERS. The Pledgee may deem and treat the payee of any note as
the owner thereof for all purposes hereof unless and until written notice of the
assignment, transfer or endorsement thereof, as the case may be, shall have been
filed with the Pledgee. Any request, authority or consent of any person or
entity who, at the time of making such request or giving such authority or
consent, is the holder of any note, shall be final and conclusive and binding on
any subsequent holder, transferee, assignee or endorsee, as the case may be, of
such note or of any note or notes issued in exchange therefor.
9. RESIGNATION BY THE PLEDGEE. (a) The Pledgee may resign from the
performance of all of its functions and duties hereunder and under the Pledge
Agreement at any time by giving 15 Business Days' prior or written notice to the
Borrower, the Banks and Representatives for the other Secured Creditors or, if
there is no such Representative, directly to such Secured Creditors. Such
resignation shall take effect upon the appointment of a successor Pledgee
pursuant to clause (b) or (c) below.
(b) If a successor Pledgee shall not have been appointed within said 15
Business Day period by the Required Secured Creditors, the Pledgee, with the
consent of the Borrower, which consent shall not be unreasonably withheld or
delayed, shall then appoint a successor Pledgee who shall serve as Pledgee
hereunder or thereunder until such time, if any, as the Required Secured
Creditors appoint a successor Pledgee as provided above.
(c) If no successor Pledgee has been appointed pursuant to clause (b)
above by the 20th Business Day after the date of such notice of resignation was
given by the Pledgee, as a result of a failure by the Borrower to consent to the
appointment of such a successor Pledgee, the Required Secured Creditors shall
then appoint a successor Pledgee who shall serve as Pledgee hereunder or
thereunder until such time, if any, as the Required Secured Creditors appoint a
successor Pledgee as provided above.
-4-
EXHIBIT A-1
TO
PLEDGE AND SECURITY AGREEMENT
FORM OF
PLEDGE AND SECURITY AGREEMENT SUPPLEMENT
PLEDGE AND SECURITY SUPPLEMENT, dated as of __________ (this
"SUPPLEMENT"), made by _________, a ___________ (the "PLEDGOR"), in favor of
BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION, as Pledgee and as
collateral agent (in such capacities, the "PLEDGEE") for the Secured Creditors
(such term and each other capitalized term used but not defined having the
meaning given in the Pledge Agreement referred to below).
1. Reference is hereby made to that certain Pledge Agreement, dated
as of February 12, 1999 (as amended, supplemented or otherwise modified as of
the date hereof, the "PLEDGE AGREEMENT"), made by the Pledgors party thereto in
favor of the Pledgee for the benefit of the Secured Creditors described therein.
2. The Pledgor hereby confirms and reaffirms the security interest in
the Collateral granted to the Pledgee for the benefit of the Secured Creditors
under the Pledge Agreement, and, as additional collateral security for the
prompt and complete payment when due (whether at stated maturity, by
acceleration or otherwise) of the Obligations and in order to induce the Secured
Creditors to make loans and other extensions of credit constituting Obligations,
the Pledgor hereby delivers to the Pledgee, for the benefit of the Secured
Creditors, all of the property listed in Schedule I hereto (the "ADDITIONAL
COLLATERAL"; as used in the Pledge Agreement as supplemented by this Supplement,
"COLLATERAL" shall be deemed to include the Additional Collateral), and hereby
grants to the Pledgee, for the benefit of the Secured Creditors, a first
priority security interest in the Additional Collateral and all proceeds
thereof.
3. The Pledgor hereby represents and warrants that the
representations and warranties contained in Section 13 of the Pledge Agreement
are true and correct on the date of this Supplement with references therein to
the "Collateral" to include the Additional Collateral and with references
therein to the "Pledge Agreement" to mean the Pledge Agreement as supplemented
by this Supplement.
4. This Supplement is supplemental to the Pledge Agreement, forms a
part thereof and is subject to the terms thereof and the Pledge Agreement is
hereby supplemented as provided herein. Without limiting the foregoing,
"Collateral" subject to the Pledge Agreement shall hereby be deemed to include
each item listed on Schedule I to this Supplement.
IN WITNESS WHEREOF, the Pledgor and the Pledgee have caused this
Supplement to be duly executed and delivered on the date first set forth above.
[PLEDGOR]
By:
-----------------------------------
Name:
Title:
BANK OF AMERICA NATIONAL TRUST AND
SAVINGS ASSOCIATION, as Pledgee
By:
-----------------------------------
Name:
Title:
-2-
SCHEDULE I
TO
PLEDGE AND SECURITY AGREEMENT SUPPLEMENT
ADDITIONAL COLLATERAL
EXHIBIT A-2
TO
PLEDGE AGREEMENT
SUPPLEMENT NO. _______ dated as of
__________, to the Pledge Agreement dated as of
February 12, 1999 (the "PLEDGE AGREEMENT"), among
the Pledgors party thereto (immediately before
giving effect to this Supplement) and BANK OF
AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION as
collateral agent and as pledgee (in such capacities,
the "Pledgee") for the Secured Creditors (such term
and each other capitalized term used but not defined
having the meaning given it in the Pledge Agreement
referred to below).
A. The Pledgors have entered into the Pledge Agreement in order to
induce the Secured Creditors to make loans and other extensions of credit
constituting Obligations as defined in the Pledge Agreement. Pursuant to Section
5.15 of the Credit Agreements, certain Subsidiaries of the Borrower are, after
the date of the Pledge Agreement, required to enter into the Pledge Agreement as
a Pledgor. Section 19 of the Pledge Agreement provides that additional
Subsidiaries may become Pledgors under the Pledge Agreement by execution and
delivery of an instrument in the form of this Supplement. The undersigned (the
"NEW PLEDGOR") is a Subsidiary of the Borrower and is executing this Supplement
in accordance with the requirements of the Credit Agreements and/or the Pledge
Agreement to become a Pledgor under the Pledge Agreement in order to induce the
Secured Creditors to extend, or maintain, Obligations.
Accordingly, the Pledgee and the New Pledgor agree as follows:
SECTION 1. The New Pledgor by its signature below becomes a Pledgor
under the Pledge Agreement with the same force and effect as if originally named
therein as a Pledgor and the New Pledgor hereby agrees to all the terms and
provisions of the Pledge Agreement applicable to it as a Pledgor thereunder.
Each reference to a "Pledgor" in the Pledge Agreement shall be deemed to include
the New Pledgor. The Pledge Agreement is hereby incorporated herein by
reference.
SECTION 2. The New Pledgor represents and warrants to the Secured
Creditors that this Supplement has been duly authorized, executed and delivered
by it and constitutes its legal, valid and binding obligation, enforceable
against it in accordance with its terms, subject to the effects of applicable
bankruptcy, insolvency or similar laws affecting creditors' rights generally and
equitable principles of general applicability.
SECTION 3. This Supplement may be executed in two or more counterparts,
each of which shall constitute an original, but all of which, when taken
together, shall constitute but one instrument. This Supplement shall become
effective when the Pledgee shall have received counterparts of this Supplement
that, when taken together, bear the signatures of the New Pledgor and the
Pledgee.
SECTION 4. Except as expressly supplemented hereby, the Pledge
Agreement shall remain in full force and effect.
SECTION 5. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
SECTION 6. In case any one or more of the provisions contained in this
Supplement should be held invalid, illegal or unenforceable in any respect,
neither party hereto shall be required to comply with such provision for so long
as such provision is held to be invalid, illegal or unenforceable, but the
validity, legality and enforceability of the remaining provisions contained
herein and in the Pledge Agreement shall not in any way be affected or impaired.
The parties hereto shall endeavor in good-faith negotiations to replace the
invalid, illegal or unenforceable provisions with valid provisions the economic
effect of which comes as close as possible to that of the invalid, illegal or
unenforceable provisions.
SECTION 7. All communications and notices hereunder shall be in writing
and given as provided in the Pledge Agreement. All communications and notices
hereunder to the New Pledgor shall be given to it at the address set forth under
its signature, with a copy to the Borrower.
IN WITNESS WHEREOF, the New Pledgor and the Pledgee have duly executed
this Supplement to the Pledge Agreement as of the day and year first above
written.
[NAME OF NEW PLEDGOR]
By:
-----------------------------------
Name:
Title:
Address:
BANK OF AMERICA NATIONAL TRUST AND
SAVINGS ASSOCIATION, as Pledgee
By:
-----------------------------------
Name:
Title:
-2-
EXHIBIT K
COMMITMENT INCREASE SUPPLEMENT
------------ --, ----
Bank of America National Trust and Savings
Association, as Administrative Agent for
the Lenders party to the Short Term
Revolving Credit Agreement dated as of
February 12, 1999 among ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Corporation (the "BORROWER"), the
Guarantors party thereto from time to time,
the Lenders party thereto from time to
time, and Bank of America National Trust
and Savings Association, as Administrative
Agent (the "CREDIT AGREEMENT")
Ladies and Gentlemen:
Reference is made to the Credit Agreement described above. Terms not
defined herein which are defined in the Credit Agreement shall have for the
purposes hereof the meaning provided therein.
Pursuant to Section 1.04 of the Credit Agreement, the undersigned
hereby agrees to increase, as of ______________, ______, its Revolving Credit
Commitment to the amount set forth below and agrees that all of the terms and
conditions of the Credit Agreement are equally applicable to its Revolving
Credit Commitment as so increased.
IN WITNESS WHEREOF, the undersigned has executed this Supplement as of
the date first above written.
--------------------------------------
as Lender
By:
-----------------------------------
Title:
-----------------------------
Revolving Credit
Commitment Amount: $
-----------------
Address for Notices:
--------------------------------------
--------------------------------------
--------------------------------------
Attention:
---------------------------
Telephone:
---------------------------
Telecopier:
---------------------------
EXHIBIT L
REQUEST FOR EXTENSION OF CREDIT
Date:
--------------, -----
To: Bank of America National Trust and
Savings Association, as Administrative Agent
Ladies and Gentlemen:
Reference is made to that certain Short Term Revolving Credit Agreement
dated as of February 12, 1999 among ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Corporation (the "BORROWER"),
the Guarantors from time to time party thereto, the Lenders from time to time
party thereto and Bank of America National Trust and Savings Association, as
Administrative Agent (as extended, renewed, amended or restated from time to
time, the "AGREEMENT;" the terms defined therein being used herein as therein
defined).
The undersigned hereby request (select one):
[ ] a borrowing of Revolving Credit Loans
[ ] a conversion or renewal of Loans
1. On
---------------, ------.
2. In the amount of $
---------------.
3. Borrowing of Loans comprised of
--- ---------------------------.
[type of interest rate Option requested]
Conversion of Loans comprised of to
--- ------------ ------------.
Renewal of Loans comprised of
--- --------------.
4. If applicable: with Funding Period of months/days.
----------
The foregoing request complies with the requirements of Section 2.07 or
2.09, as applicable, of the Agreement. The undersigned hereby certifies that the
following statements are true on the date hereof, and will be rue on the above
date, before and after giving effect and to the application of the proceeds
therefrom:
(a) the representations and warranties of the Borrower
contained in the Agreement are true and correct in all material
respects as though made on and as of the above date (except (i) to the
extent that such representations and warranties expressly relate solely
to an earlier date and then shall be correct as of such date and (ii)
that the
representation and warranty set forth in Section 3.08 of the Agreement
in the case of any Loans the proceeds of which are used solely to repay
Loans maturing on such date) before and after giving effect to this
extension of credit and to the application of the proceeds therefrom,
as though made on and as of this date; and
(b) no Potential Default or Event of Default has occurred
and is continuing, or would result form such proposed extension of
credit.
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ CORPORATION
By:
-----------------------------------
Title:
-----------------------------
-2-