EXHIBIT 10(o)
EXECUTION COPY
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AMENDED AND RESTATED
REVOLVING CREDIT AGREEMENT
(Five-Year)
Dated as of April 27, 2001
Among
ALCOA INC.,
THE LENDERS NAMED HEREIN,
CITIBANK, N.A. and CREDIT SUISSE FIRST BOSTON,
as Syndication Agents,
DEUTSCHE BANK AG and ABN AMRO BANK, N.V.,
as Documentation Agents, and
THE CHASE MANHATTAN BANK,
as Administrative Agent
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JPMORGAN,
as Lead Arranger and Bookrunner
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[6700-242]
TABLE OF CONTENTS
Page
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ARTICLE I. DEFINITIONS AND CONSTRUCTION
SECTION 1.01. Defined Terms.................................................1
SECTION 1.02. Terms Generally; Accounting Principles.......................16
ARTICLE II. THE CREDITS
SECTION 2.01. Commitments..................................................16
SECTION 2.02. Loans........................................................17
SECTION 2.03. Notice of Borrowings.........................................18
SECTION 2.04. Evidence of Debt; Repayment of Loans.........................19
SECTION 2.05. Fees.........................................................20
SECTION 2.06. Interest on Loans............................................20
SECTION 2.07. Default Interest.............................................21
SECTION 2.08. Alternate Rate of Interest...................................21
SECTION 2.09. Termination and Reduction of Commitments.....................22
SECTION 2.10. Refinancings.................................................22
SECTION 2.11. Prepayment...................................................23
SECTION 2.12. Reserve Requirements; Change in
Circumstances...............................................23
SECTION 2.13. Change in Legality...........................................25
SECTION 2.14. Indemnity....................................................26
SECTION 2.15. Pro Rata Treatment...........................................27
SECTION 2.16. Sharing of Setoffs...........................................27
SECTION 2.17. Payments.....................................................28
SECTION 2.18. Taxes........................................................28
SECTION 2.19. Assignment of Commitments Under Certain
Circumstances...............................................32
ARTICLE III. REPRESENTATIONS AND WARRANTIES
SECTION 3.01. Organization.................................................32
SECTION 3.02. Authorization................................................33
SECTION 3.03. Enforceability...............................................33
SECTION 3.04. Governmental Approvals.......................................33
SECTION 3.05. No Conflict..................................................33
SECTION 3.06. Financial Statements.........................................34
SECTION 3.07. No Defaults..................................................34
SECTION 3.08. Litigation...................................................34
SECTION 3.09. No Material Adverse Change...................................34
SECTION 3.10. Employee Benefit Plans.......................................34
SECTION 3.11. Title to Properties; Possession Under
Leases......................................................36
SECTION 3.12. Investment Company Act; Public Utility
Holding Company Act.........................................36
SECTION 3.13. Tax Returns..................................................36
SECTION 3.14. Compliance with Laws and Agreements..........................36
SECTION 3.15. No Material Misstatements....................................37
SECTION 3.16. Federal Reserve Regulations..................................37
SECTION 3.17. No Trusts....................................................37
ARTICLE IV. CONDITIONS OF EFFECTIVENESS, LENDING AND
DESIGNATION OF BORROWING SUBSIDIARIES
SECTION 4.01. Effective Date...............................................37
SECTION 4.02. All Borrowings...............................................39
SECTION 4.03. Designation of Borrowing Subsidiaries........................40
ARTICLE V. AFFIRMATIVE COVENANTS
SECTION 5.01. Financial Statements, Reports, etc...........................41
SECTION 5.02. Pari Passu Ranking...........................................42
SECTION 5.03. Maintenance of Properties....................................42
SECTION 5.04. Obligations and Taxes........................................43
SECTION 5.05. Insurance....................................................43
SECTION 5.06. Existence; Businesses and Properties.........................43
SECTION 5.07. Compliance with Laws.........................................43
SECTION 5.08. Litigation and Other Notices.................................44
SECTION 5.09. Borrowing Subsidiaries.......................................45
ARTICLE VI. NEGATIVE COVENANTS
SECTION 6.01. Liens........................................................45
SECTION 6.02. Consolidation, Merger, Sale of Assets,
etc.........................................................47
SECTION 6.03. Financial Undertaking........................................47
SECTION 6.04. Change in Business...........................................47
ARTICLE VII. EVENTS OF DEFAULT
ARTICLE VIII. GUARANTEE
ARTICLE IX. THE ADMINISTRATIVE AGENT
ARTICLE X. MISCELLANEOUS
SECTION 10.01. Notices......................................................57
SECTION 10.02. Survival of Agreement........................................58
SECTION 10.03. Binding Effect...............................................58
SECTION 10.04. Successors and Assigns; Additional
Borrowing Subsidiaries......................................58
SECTION 10.05. Expenses; Indemnity..........................................63
SECTION 10.06. Right of Setoff..............................................65
SECTION 10.07. Applicable Law...............................................65
SECTION 10.08. Waivers; Amendment...........................................65
SECTION 10.09. Interest Rate Limitation.....................................66
SECTION 10.10. Entire Agreement.............................................66
SECTION 10.11. Waiver of Jury Trial.........................................66
SECTION 10.12. Severability.................................................67
SECTION 10.13. Counterparts.................................................67
SECTION 10.14. Headings.....................................................67
SECTION 10.15. Jurisdiction, Consent to Service of
Process.....................................................67
SECTION 10.16. Conversion of Currencies.....................................68
References
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Exhibit A Assignment and Acceptance
Exhibit B Administrative Questionnaire
Exhibit C Form of Opinion of Counsel
Exhibit D Designation of Borrowing Subsidiary
Schedule 2.01 Lenders and Commitments
Schedule 3.04 Governmental Approvals
Schedule 3.08 Litigation
Schedule 6.01(a) Existing Liens
AMENDED AND RESTATED FIVE-YEAR REVOLVING
CREDIT AGREEMENT dated as of April 27, 2001 (as the
same may be amended, modified or supplemented from
time to time, the "Agreement"), among ALCOA INC., a
Pennsylvania corporation ("Alcoa"), the Lenders (such
term and each other capitalized term used but not
defined herein having the meaning ascribed thereto in
Article I) and THE CHASE MANHATTAN BANK, a New York
banking corporation, as Administrative Agent for the
Lenders.
Alcoa and the Borrowing Subsidiaries have requested the Lenders to
amend and restate the Existing Five-Year Credit Agreement (such term and each
other capitalized term used and not otherwise defined herein having the meaning
assigned to it in Article I) in an aggregate principal amount of US$510,000,000
in order to enable Alcoa and the Borrowing Subsidiaries, subject to the terms
and conditions of this Agreement, to borrow on a revolving basis, at any time
and from time to time prior to the Maturity Date, an aggregate principal amount
at any time outstanding not in excess of US$1,000,000,000. The proceeds of such
borrowings are to be used to provide working capital and for other general
corporate purposes, including but not limited to the support of Alcoa's
commercial paper program. The Lenders are willing to extend such credit to Alcoa
and the Borrowing Subsidiaries on the terms and subject to the conditions set
forth herein.
Accordingly, the Borrowers, the Lenders and the Administrative Agent
agree as follows:
ARTICLE I. DEFINITIONS AND CONSTRUCTION
SECTION 1.01. Defined Terms. As used in this Agreement, the following
terms shall have the meanings set forth below:
"ABR Borrowing" shall mean a Borrowing comprised of ABR Loans.
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"ABR Loan" shall mean any Loan bearing interest at a rate determined by
reference to the Alternate Base Rate in accordance with the provisions of
Article II.
"Administrative Agent" shall mean The Chase Manhattan Bank, a New York
banking corporation, in its capacity as administrative agent for the Lenders
hereunder.
"Administrative Questionnaire" shall mean an Administrative
Questionnaire in the form of Exhibit B.
"Affiliate" shall mean, when used with respect to a specified person,
another person that directly, or indirectly through one or more intermediaries,
Controls or is Controlled by or is under common Control with the person
specified.
"Alternate Base Rate" shall mean, for any day, a rate per annum
(rounded upwards, if necessary, to the next 1/16 of 1%) equal to the greatest of
(a) the Prime Rate in effect on such day, (b) the Base CD Rate in effect on such
day plus 1% and (c) the Federal Funds Effective Rate in effect on such day plus
1/2 of 1%. For purposes hereof, "Prime Rate" shall mean the rate of interest per
annum publicly announced from time to time by the Administrative Agent as its
prime rate in effect at its principal office in New York City; each change in
the Prime Rate shall be effective on the date such change is publicly announced
as being effective. "Base CD Rate" shall mean the sum of (a) the product of (i)
the Three-Month Secondary CD Rate and (ii) Statutory Reserves and (b) the
Assessment Rate. "Three-Month Secondary CD Rate" shall mean, for any day, the
secondary market rate for three-month certificates of deposit reported as being
in effect on such day (or, if such day shall not be a Business Day, the next
preceding Business Day) by the Board through the public information telephone
line of the Federal Reserve Bank of New York (which rate will, under the current
practices of the Board, be published in Federal Reserve Statistical Release
H.15(519) during the week following such day), or, if such rate shall not be so
reported on such day or such next preceding Business Day, the average of the
secondary market quotations for three month certificates of deposit of major
money center banks in New York City received at approximately 10:00 a.m., New
York City time, on such day (or, if such day shall not be a Business Day, on the
next preceding Business Day) by the Administrative Agent from three New York
City negotiable certificate of deposit
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dealers of recognized standing selected by it. "Federal Funds Effective Rate"
shall mean, for any day, the weighted average of the rates on overnight Federal
funds transactions with members of the Federal Reserve System arranged by
Federal funds brokers, as published on the next succeeding Business Day by the
Federal Reserve Bank of New York, or, if such rate is not so published for any
day which is a Business Day, the average of the quotations for the day of such
transactions received by the Administrative Agent from three Federal funds
brokers of recognized standing selected by it. If for any reason the
Administrative Agent shall have determined (which determination shall be
conclusive absent manifest error) that it is unable to ascertain the Base CD
Rate or the Federal Funds Effective Rate or both for any reason, including the
inability of the Administrative Agent to obtain sufficient quotations in
accordance with the terms thereof, the Alternate Base Rate shall be determined
without regard to clause (b) or (c) , or both, of the first sentence of this
definition, as appropriate, until the circumstances giving rise to such
inability no longer exist. Any change in the Alternate Base Rate due to a change
in the Prime Rate, the Three-Month Secondary CD Rate or the Federal Funds
Effective Rate shall be effective on the effective date of such change in the
Prime Rate, the Three-Month Secondary CD Rate or the Federal Funds Effective
Rate, respectively.
"Applicable Margin" shall mean, with respect to the Eurodollar Loans
comprising any Borrowing, the applicable percentage set forth below based upon
the ratings by S&P and ▇▇▇▇▇'▇ applicable on such date to the Index Debt:
Category 1 Percentage
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AA-/Aa3
or above .1150%
Category 2
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A+/A1 .1250%
Category 3
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A/A2 .1225%
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Category 4
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A-/A3 .1300%
Category 5
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BBB/Baa2 .2000%
Category 6
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BBB-/Baa3
or below .2500%
For purposes of the foregoing, (i) if neither ▇▇▇▇▇'▇ nor S&P shall
have in effect a rating for any Index Debt (other than by reason of the
circumstances referred to in the last sentence of this definition), then both
such rating agencies shall be deemed to have established ratings for such Index
Debt in Category 6; (ii) if only one of ▇▇▇▇▇'▇ and S&P shall have in effect a
rating for any Index Debt, then the Applicable Margin, to the extent determined
by reference to such Index Debt, shall be determined on the basis of such
rating; (iii) if the ratings established or deemed to have been established by
▇▇▇▇▇'▇ or S&P for any Index Debt shall fall within different Categories, the
Applicable Margin, to the extent determined by reference to such Index Debt,
shall be based on the Category corresponding to the higher rating; and (iv) if
any rating established or deemed to have been established by ▇▇▇▇▇'▇ or S&P
shall be changed (other than as a result of a change in the rating system of
▇▇▇▇▇'▇ or S&P), such change shall be effective as of the date on which it is
first announced by the applicable rating agency. Each change in the Applicable
Margin shall apply during the period commencing on the effective date of such
change and ending on the date immediately preceding the effective date of the
next such change. If the rating system of ▇▇▇▇▇'▇ or S&P shall change, or if any
such rating agency shall cease to be in the business of rating corporate debt
obligations, Alcoa and the Lenders shall negotiate in good faith to amend the
references to specific ratings in this definition to reflect such changed rating
system or the non-availability of ratings from such rating agency, and pending
the effectiveness of any such amendment, the ratings of such rating agency most
recently in effect prior to such change
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or cessation shall be employed in determining the Applicable Margin.
"Assessment Rate" shall mean, for any date, the annual rate (rounded
upwards, if necessary, to the next 1/100 of 1%) most recently estimated by the
Administrative Agent as the then current net annual assessment rate that will be
employed in determining amounts payable by the Administrative Agent to the
Federal Deposit Insurance Corporation (or any successor) for such date for
insurance by such Corporation (or such successor) of time deposits made in
dollars at the Administrative Agent's domestic offices.
"Assignment and Acceptance" shall mean an assignment and acceptance
entered into by a Lender and an assignee, and accepted by the Administrative
Agent, in the form of Exhibit A or such other form as shall be approved by the
Administrative Agent.
"Board" shall mean the Board of Governors of the Federal Reserve System
of the United States.
"Borrowers" shall mean Alcoa and the Borrowing Subsidiaries.
"Borrowing" shall mean any group of Loans of a single Type made by the
Lenders on a single date and as to which a single Interest Period is in effect.
"Borrowing Subsidiaries" shall mean, at any time, the wholly-owned
Subsidiaries of Alcoa that have undertaken the obligations of Borrowing
Subsidiaries pursuant to Section 10.04(i).
"Borrowing Subsidiary Obligations" shall mean, collectively, the due
and punctual payment by any Borrowing Subsidiary of the principal of and
interest on the Loans to it, when and as due, whether at maturity, by
acceleration or otherwise, and the due and punctual payment and performance of
all other obligations of such Borrowing Subsidiary under this Agreement.
"Business Day" shall mean any day (other than a day which is a
Saturday, Sunday or day on which banks in New York City are authorized or
required by law to remain closed); provided, however, that, when used in
connection with any Eurodollar Loan, the term "Business Day" shall in
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each case also exclude any day on which banks are not open for dealings in
dollar deposits in the London interbank market.
"Code" shall mean the Internal Revenue Code of 1986, as the same may be
amended from time to time.
"Commercial Paper" of any person shall mean any note, draft, ▇▇▇▇ of
exchange or other negotiable instrument issued by such person (other than any
extendable commercial notes issued pursuant to Section 4(2) of the Securities
Act of 1933) that has a maturity at the time of issuance not exceeding thirteen
months, exclusive of days of grace, or any renewal thereof the maturity of which
is likewise limited, pursuant to Section 3(a)(3) or Section 4(2) of the
Securities Act of 1933.
"Commitment" shall mean, with respect to each Lender, the commitment of
such Lender to make Loans hereunder as set forth in Schedule 2.01, as the same
may be terminated, reduced or increased from time to time pursuant to Section
2.09.
"Consolidated Net Tangible Assets" shall mean at any time, the
aggregate amount of assets (less applicable reserves and other properly
deductible items) of Alcoa and its consolidated Subsidiaries adjusted for
inventories on the basis of cost (before application of the "last-in first-out"
method of determining cost) or current market value, whichever is lower, and
deducting therefrom (a) all current liabilities of such corporation and its
consolidated Subsidiaries except for (i) notes and loans payable, (ii) current
maturities of long-term debt and (iii) current maturities of obligations under
capital leases and (b) all goodwill, trade names, patents, unamortized debt
discount and expenses of such corporation and its consolidated Subsidiaries (to
the extent included in said aggregate amount of assets) and other like
intangibles, all as set forth in the most recent consolidated balance sheet of
Alcoa and its consolidated Subsidiaries, delivered to the Administrative Agent
pursuant to Section 5.01, computed and consolidated in accordance with GAAP.
"Consolidated Net Worth" shall mean at any time, the net worth of Alcoa
and its consolidated Subsidiaries at
7
such time (including minority interests), computed and consolidated in
accordance with GAAP.
"Control" shall mean the possession, directly or indirectly, of the
power to direct or cause the direction of the management or policies of a
person, whether through the ownership of Voting Stock, by contract or otherwise,
and "Controlling" and "Controlled" shall have meanings correlative thereto.
"Default" shall mean any event or condition which upon notice, lapse of
time or both would constitute an Event of Default.
"Designation Date" shall have the meaning assigned to such term in
Section 10.04(i).
"Designation of Borrowing Subsidiary" shall mean a Designation of
Borrowing Subsidiary executed by Alcoa and a wholly-owned Subsidiary in the form
of Exhibit D.
"dollars" or "$" shall mean lawful money of the United States of
America.
"Effective Date" shall mean the date of this Agreement.
"Eligible Transferee" shall mean (i) a commercial bank having total
assets in excess of $10,000,000,000 or the equivalent thereof in another
currency, provided that such bank or its holding company has issued obligations
which are rated investment grade by any of ▇▇▇▇▇'▇, S&P or International Banking
and Credit Analysis and (ii) any other person which Alcoa agrees may be an
Eligible Transferee (which consent shall not be unreasonably withheld or
delayed).
"Engagement Fees" shall have the meaning assigned to such term in
Section 2.05(b).
"Engagement Letter" shall mean the letter agreement dated as of April
2, 2001, among the Administrative Agent, JPMorgan, a division of Chase
Securities Inc. ("JPMorgan"), and Alcoa.
8
"ERISA" shall mean the Employee Retirement Income Security Act of 1974,
as the same may be amended from time to time.
"ERISA Affiliate" shall mean any trade or business (whether or not
incorporated) that is a member of a group of which any Borrower is a member and
which is treated as a single employer under Section 414 of the Code.
"ERISA Event" shall mean (i) any Reportable Event; (ii) the adoption of
any amendment to a Plan that would require the provision of security pursuant to
Section 401(a)(29) of the Code or Section 307 of ERISA; (iii) the existence with
respect to any Plan of an "accumulated funding deficiency" (as defined in
Section 412 of the Code or Section 302 of ERISA), whether or not waived; (iv)
the filing pursuant to Section 412 (d) of the Code or Section 302 (d) of ERISA
of an application for a waiver of the minimum funding standard with respect to
any Plan; (v) the incurrence of any liability under Title IV of ERISA with
respect to the termination of any Plan or the withdrawal or partial withdrawal
of the Borrower or any of its ERISA Affiliates from any Plan or Multiemployer
Plan; (vi) the receipt by the Borrower or any ERISA Affiliate from the PBGC or a
plan administrator of any notice relating to the intention to terminate any Plan
or Plans or to appoint a trustee to administer any Plan; (vii) the receipt by
the Borrower or any ERISA Affiliate of any notice concerning the imposition of
Withdrawal Liability or a determination that a Multiemployer Plan is, or is
expected to be, insolvent or in reorganization, within the meaning of Title IV
of ERISA; (viii) the occurrence of a "prohibited transaction" with respect to
which the Borrower or any of its subsidiaries is a "disqualified person" (within
the meaning of Section 4975 of the Code) or with respect to which the Borrower
or any such subsidiary could otherwise be liable; (ix) any other similar event
or condition with respect to a Plan or Multiemployer Plan that could result in
liability of the Borrowers and (x) any Foreign Benefit Event.
"Eurodollar Borrowing" shall mean a Borrowing comprised of Eurodollar
Loans.
"Eurodollar Loan" shall mean any Loan bearing interest at a rate
determined by reference to the LIBO Rate in accordance with the provisions of
Article II.
9
"Event of Default" shall have the meaning assigned to such term in
Article VII.
"Exchange Act Report" shall mean the Annual Report of Alcoa on Form
10-K for the year ended December 31, 2000, as amended by Amendment No. 1 on Form
10-K/A filed on March 6, 2001, by Alcoa with the Securities and Exchange
Commission pursuant to the Securities Exchange Act of 1934.
"Existing Five-Year Credit Agreement" shall mean the Revolving Credit
Agreement (Five-Year) dated as of April 28, 2000, among Alcoa, the lenders party
thereto, The Chase Manhattan Bank, as Administrative Agent, and Chase Securities
Inc., as lead arranger and book manager. The Existing Five-Year Credit Agreement
is being amended and restated by this Agreement.
"Existing 364-Day Credit Agreement" shall mean the Revolving Credit
Agreement (364-Day) dated as of April 28, 2000, among Alcoa, the lenders party
thereto, The Chase Manhattan Bank, as Administrative Agent, and Chase Securities
Inc., as lead arranger and book manager. The Existing 364-Day Credit Agreement
is being amended and extended by the 364-Day Credit Agreement.
"Facility Fee" shall have the meaning assigned to such term in Section
2.05(a).
"Facility Fee Percentage" shall mean on any date the applicable
percentage set forth below based upon the ratings by S&P and ▇▇▇▇▇'▇,
respectively, applicable on such date to the Index Debt:
Category 1 Percentage
---------- ----------
AA-/Aa3
or above .0600%
Category 2
----------
A+/A1 .0625%
Category 3
----------
A/A2 .0650%
10
Category 4
----------
A-/A3 .0700%
Category 5
----------
BBB/Baa2 .1000%
Category 6
----------
BBB-/Baa3
or below .1500%
For purposes of the foregoing, (i) if neither ▇▇▇▇▇'▇ nor S&P shall
have in effect a rating for the Index Debt (other than by reason of the
circumstances referred to in the last sentence of this definition), then both
such rating agencies shall be deemed to have established ratings in Category 6;
(ii) if only one of ▇▇▇▇▇'▇ and S&P shall have in effect a rating for the Index
Debt, then the Facility Fee Percentage shall be determined on the basis of such
rating; (iii) if the ratings established or deemed to have been established by
▇▇▇▇▇'▇ or S&P for the Index Debt shall fall within different Categories, the
Facility Fee Percentage shall be based on the Category corresponding to the
higher rating; and (iv) if any rating established or deemed to have been
established by ▇▇▇▇▇'▇ or S&P shall be changed (other than as a result of a
change in the rating system of ▇▇▇▇▇'▇ or S&P), such change shall be effective
as of the date on which it is first announced by the applicable rating agency.
Each change in the Facility Fee Percentage shall apply during the period
commencing on the effective date of such change and ending on the date
immediately preceding the effective date of the next such change. If the rating
system of ▇▇▇▇▇'▇ or S&P shall change, or if either of such rating agencies
shall cease to be in the business of rating corporate debt obligations, Alcoa
and the Lenders shall negotiate in good faith to amend the references to
specific ratings in this definition to reflect such changed rating system or the
non-availability of ratings from such rating agency, and pending the
effectiveness of any such amendment, the ratings of such rating agency most
recently in effect prior to such change or cessation shall be employed in
determining the Facility Fee Percentage.
"Fees" shall mean the Facility Fees and the Engagement Fees.
11
"Financial Officer" of any corporation shall mean the chief financial
officer, principal accounting officer, Treasurer or Controller of such
corporation.
"Foreign Benefit Event" shall mean (a) with respect to any Foreign
Pension Plan, (i) the existence of unfunded liabilities in excess of the amount
permitted under any applicable law, or in excess of the amount that would be
permitted absent a waiver from a Governmental Authority, (ii) the failure to
make the required contributions or payments, under any applicable law, on or
before the due date for such contributions or payments, (iii) the receipt of a
notice by a Governmental Authority relating to the intention to terminate any
such Foreign Pension Plan or to appoint a trustee to administer any such Foreign
Pension Plan, or to the insolvency of any such Foreign Pension Plan and (iv) the
incurrence of any liability of the Borrowers under applicable law on account of
the complete or partial termination of such Foreign Pension Plan or the complete
or partial withdrawal of any participating employer therein and (b) with respect
to any Foreign Plan, (i) the occurrence of any transaction that is prohibited
under any applicable law and could result in the incurrence of any liability by
the Borrowers, or the imposition on the Borrowers of any fine, excise tax or
penalty resulting from any noncompliance with any applicable law and (ii) any
other event or condition that could reasonably be expected to result in
liability of any of the Borrowers.
"Foreign Plan" shall mean any plan or arrangement established or
maintained outside the United States for the benefit of present or former
employees of any of the Borrowers.
"Foreign Pension Plan" shall mean any benefit plan which under
applicable law is required to be funded through a trust or other funding vehicle
other than a trust or funding vehicle maintained exclusively by a Governmental
Authority.
"GAAP" shall mean generally accepted accounting principles, as used in,
and applied on a basis consistent with, the financial statements of Alcoa
referred to in Section 3.06.
12
"Governmental Authority" shall mean any Federal, state, local or
foreign court or governmental agency, authority, instrumentality or regulatory
body.
"Guarantee" of or by any person shall mean any obligation, contingent
or otherwise, of such person guaranteeing any Indebtedness of any other person,
whether directly or indirectly, and including any obligation of such person,
direct or indirect, to purchase or pay such Indebtedness or to purchase any
security for the payment of such Indebtedness; provided, however, that the term
"Guarantee" shall not include endorsements for collection or deposit, in either
case in the ordinary course of business.
"Indebtedness" of any person at any time shall mean, without
duplication, (a) all obligations for money borrowed or raised, all obligations
(other than accounts payable and other similar items arising in the ordinary
course of business) for the deferred payment of the purchase price of property,
and all capital lease obligations which, in each case, in accordance with GAAP,
would be included in determining total liabilities as shown on the liability
side of the balance sheet of such person and (b) all Guarantees of such person.
"Index Debt" shall mean the senior, unsecured, non-credit enhanced,
longterm Indebtedness for borrowed money of Alcoa.
"Interest Payment Date" shall mean, with respect to any Loan, the last
day of the Interest Period applicable to the Borrowing of which such Loan is a
part and, in the case of a Eurodollar Borrowing with an Interest Period of more
than three months' duration, each day that would have been an Interest Payment
Date had successive Interest Periods of three months' duration been applicable
to such Borrowing, and, in addition, the date of any refinancing, continuation
or conversion of such Borrowing with or to a Borrowing of a different Type.
"Interest Period" shall mean (a) as to any Eurodollar Borrowing, the
period commencing on the date of such Borrowing or on the last day of the
immediately preceding Interest Period applicable to such Borrowing, as the case
may be, and ending on the numerically corresponding day (or, if there is no
numerically
13
corresponding day, on the last day) in the calendar month that is 1, 2, 3 or 6
months thereafter, as the Borrower to which such Loan is made may elect; and (b)
as to any ABR Borrowing, the period commencing on the date of such Borrowing or
on the last day of the immediately preceding Interest Period applicable to such
Borrowing, as the case may be, and ending on the earliest of (i) the next
succeeding March 31, June 30, September 30 or December 31, (ii) the Maturity
Date and (iii) the date such Borrowing is prepaid in accordance with Section
2.11; provided, however, that if any Interest Period would end on a day other
than a Business Day, such Interest Period shall be extended to the next
succeeding Business Day unless, in the case of a Eurodollar Borrowing only, such
next succeeding Business Day would fall in the next calendar month, in which
case such Interest Period shall end on the next preceding Business Day.
"Lenders" shall mean (a) the financial institutions listed on Schedule
2.01 (other than any such financial institution that has ceased to be a party
hereto pursuant to an Assignment and Acceptance) and (b) any financial
institution that has become a party hereto pursuant to an Assignment and
Acceptance.
"LIBO Rate" shall mean, with respect to any Eurodollar Borrowing for
any Interest Period, an interest rate (rounded upwards, if necessary, to the
next 1/16 of 1%) equal to the offered rate for dollar deposits for a period
equal to the Interest Period for such Eurodollar Borrowing that appears on the
LIBO page on the Reuters Screen (or any page that can reasonably be considered a
replacement page) at approximately 11:00 a.m., London time, two Business Days
prior to the commencement of such Interest Period. If such rate is not available
on the Reuters Screen, the "LIBO Rate" shall be the rate (rounded upwards, if
necessary, to the next 1/16 of 1%) equal to the arithmetic average of the
respective rates per annum at which dollar deposits approximately equal in
principal amount to such Eurodollar Borrowing and for a maturity comparable to
such Interest Period are offered in immediately available funds to the London
branches of the Reference Banks in the London interbank market at approximately
11:00 a.m., London time, two Business Days prior to the commencement of such
Interest Period. The Administrative Agent shall determine the LIBO Rate and such
determination shall be conclusive absent manifest error.
14
"Lien" shall mean, with respect to any asset, (a) any mortgage, deed of
trust, lien, pledge, encumbrance, charge or security interest in or on such
asset, (b) the interest of a vendor or a lessor under any conditional sale
agreement, capital lease or title retention agreement relating to such asset and
(c) in the case of securities, any purchase option, call or similar right of a
third party with respect to such securities.
"Loans" shall have the meaning assigned to it in Section 2.01. Each
Loan shall be a Eurodollar Loan or an ABR Loan.
"Material Adverse Effect" shall mean a materially adverse effect on the
business, assets, operations or financial condition of Alcoa and its
Subsidiaries taken as a whole, or a material impairment of the ability of Alcoa
to perform any of its obligations under this Agreement.
"Maturity Date" shall mean April 28, 2005.
"Moody's" shall mean ▇▇▇▇▇'▇ Investors Service, Inc.
"Multiemployer Plan" shall mean a multiemployer plan as defined in
Section 4001(a)(3) of ERISA to which any Borrower or any ERISA Affiliate (other
than one considered an ERISA Affiliate only pursuant to subsection (m) or (o) of
Section 414 of the Code) is making or accruing an obligation to make
contributions, or has within any of the preceding five plan years made or
accrued an obligation to make contributions.
"1998 Five-Year Credit Agreement" shall mean the Revolving Credit
Agreement (Five-Year) dated as of August 14, 1998, among Alcoa, Alcoa of
Australia Limited, a company incorporated with limited liability in Australia,
the lenders party thereto, The Chase Manhattan Bank, as U.S. agent for such
lenders, and Chase Securities Australia Limited, a company incorporated with
limited liability in Australia, as Australian Agent for such lenders.
"PBGC" shall mean the Pension Benefit Guaranty Corporation referred to
and defined in ERISA.
15
"person" shall mean any natural person, corporation organization,
business trust, joint venture, association, company, partnership or government,
or any agency or political subdivision thereof.
"Plan" shall mean any pension plan (other than a Multiemployer Plan)
subject to the provisions of Title IV of ERISA or Section 412 of the Code which
is maintained for employees of any Borrower or any ERISA Affiliate.
"Pro Rata Percentage" of any Lender at any time shall mean the
percentage of the Total Commitment that is represented by such Lender's
Commitment.
"Reference Banks" shall mean The Chase Manhattan Bank, Mellon Bank,
N.A. and Bank of America National Trust and Savings Association.
"Register" shall have the meaning given such term in Section 10.04(d).
"Reportable Event" shall mean any reportable event as defined in
Section 4043 (b) of ERISA or the regulations issued thereunder with respect to a
Plan (other than a Plan maintained by an ERISA Affiliate which is considered an
ERISA Affiliate only pursuant to subsection (m) or (o) of Section 414 of the
Code).
"Required Lenders" shall mean Lenders representing at least 66-2/3% in
principal amount of the outstanding Loans and unused Commitments.
"Responsible Officer" of any corporation shall mean any executive
officer or Financial Officer of such corporation and any other officer or
similar official thereof responsible for the administration of the obligations
of such corporation in respect of this Agreement.
"Restricted Subsidiary" shall mean any consolidated Subsidiary of Alcoa
which owns any manufacturing plant or manufacturing facility located in the
United States, except any such plant or facility which, in the opinion of the
Board of Directors of Alcoa, is not of material importance to the business of
Alcoa and its Restricted Subsidiaries, taken as a whole, excluding any such
Subsidiary which (a) is principally engaged in leasing
16
or financing receivables, (b) is principally engaged in financing Alcoa's
operations outside the United States or (c) principally serves as a partner in a
partnership.
"S&P" shall mean Standard & Poor's Ratings Services, a Division of the
▇▇▇▇▇▇-▇▇▇▇ Companies Inc.
"Statutory Reserves" shall mean a fraction (expressed as a decimal),
the numerator of which is the number one and the denominator of which is the
number one minus the aggregate of the maximum reserve percentages (including any
marginal, special, emergency or supplemental reserves) expressed as a decimal
established by the Board and any other banking authority to which the
Administrative Agent is subject for new negotiable nonpersonal time deposits in
dollars of over $100,000 with maturities approximately equal to three months.
Such reserve percentages shall include those imposed pursuant to such Regulation
D of the Board. Statutory Reserves shall be adjusted automatically on and as of
the effective date of any change in any reserve percentage.
"Subsidiary" shall mean, with respect to any person (herein referred to
as the "parent"), any corporation, partnership, association or other business
entity of which securities or other ownership interests representing more than
50% of the Voting Stock or more than 50% of the general partnership interests
are, at the time any determination is being made, owned, controlled or held by
the parent or one or more Subsidiaries of the parent or by the parent and one or
more Subsidiaries of the parent.
"364-Day Credit Agreement" shall mean the Existing 364-Day Credit
Agreement, as amended and extended by the 364-Day Revolving Credit Agreement
dated as of the date hereof among Alcoa, the lenders party thereto and The Chase
Manhattan Bank, as Administrative Agent.
"Total Commitment" shall mean, at any time, the aggregate amount of the
Commitments, as in effect at such time.
"Type", when used in respect of any Loan or Borrowing, shall refer to
the Rate by reference to which interest on such Loan or on the Loans comprising
such Borrowing is determined. For purposes hereof, "Rate" shall mean the LIBO
Rate and the Alternate Base Rate.
17
"Voting Stock" with respect to the stock of any person means stock of
any class or classes (however designated) having ordinary voting power for the
election of the directors of such person, other than stock having such power
only by reason of the occurrence of a contingency.
"Withdrawal Liability" shall mean liability to a Multiemployer Plan as
a result of a complete or partial withdrawal from such Multiemployer Plan, as
such terms are defined in Part I of Subtitle E of Title IV of ERISA.
SECTION 1.02. Terms Generally; Accounting Principles. The definitions
in Section 1.01 shall apply equally to both the singular and plural forms of the
terms defined. Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms. The words "include",
"includes" and "including" shall be deemed to be followed by the phrase "without
limitation". All references herein to Articles, Sections, Exhibits and Schedules
shall be deemed references to Articles and Sections of, and Exhibits and
Schedules to, this Agreement unless the context shall otherwise require, and all
references herein to the "date hereof" or the "date of this Agreement" shall be
construed as referring to April 27, 2001; provided that all obligations of the
Borrower accruing under the Existing Five-Year Credit Agreement shall continue
to be obligations of the Borrower under this Agreement. Except as otherwise
expressly provided herein, all terms of an accounting or financial nature shall
be construed in accordance with GAAP, as in effect from time to time; provided,
however, that, if Alcoa notifies the Administrative Agent that it requests an
amendment to any provision hereof to eliminate the effect of any change in GAAP
on the operation of such provision (or if the Administrative Agent notifies
Alcoa that the Required Lenders request an amendment to any provision hereof for
such purpose), regardless of whether any such notice is given before or after
such change in GAAP (provided such change in GAAP occurs after the date hereof),
then such provision shall be interpreted on the basis of GAAP in effect
immediately before such change became effective until such notice shall have
been withdrawn or such provision amended in accordance herewith.
18
ARTICLE II. THE CREDITS
SECTION 2.01. Commitments. Subject to the terms and conditions and
relying upon the representations and warranties herein set forth, each Lender
agrees, severally and not jointly, to make revolving credit loans in dollars
(the "Loans") to Alcoa and the Borrowing Subsidiaries, at any time and from time
to time on or after the Effective Date and until the earlier of the Maturity
Date and the termination of the Commitment of such Lender in accordance with the
terms hereof; provided, however, that (i) after giving effect to any Loan, the
aggregate principal amount of the outstanding Loans shall not exceed the Total
Commitment and (ii) at all times the aggregate principal amount of all
outstanding Loans made by each Lender shall equal its Pro Rata Percentage of the
aggregate principal amount of all outstanding Loans. The Commitment of each
Lender is set forth on Schedule 2.01 to this Agreement. Such Commitment may be
terminated, reduced or increased from time to time pursuant to Section 2.09.
Within the limits set forth in the preceding sentence, the Borrowers may borrow,
pay or prepay and reborrow Loans on or after the Effective Date and prior to the
Maturity Date, subject to the terms, conditions and limitations set forth
herein.
SECTION 2.02. Loans. (a) Each Loan shall be made as part of a
Borrowing consisting of Loans made by the Lenders ratably in accordance with
their respective applicable Commitments; provided, however, that the failure of
any Lender to make any Loan shall not in itself relieve any other Lender of its
obligation to lend hereunder (it being understood, however, that no Lender shall
be responsible for the failure of any other Lender to make any Loan required to
be made by such other Lender). The Loans comprising each Borrowing shall be in
an aggregate principal amount which is an integral multiple of $1,000,000 and
not less than $10,000,000 (or an aggregate principal amount equal to the
remaining balance of the applicable Commitments, as the case may be).
(b) Each Borrowing shall be comprised entirely of Eurodollar Loans or
ABR Loans, as the applicable Borrower may request pursuant to Section 2.03. Each
Lender may at its option fulfill its Commitment with respect to any Loan by
causing any domestic or foreign branch or Affiliate of such Lender to make such
Loan; provided, however, that any exercise of such option shall not affect
19
the obligation of the applicable Borrower to repay such Loan in accordance with
the terms of this Agreement. Borrowings of more than one Type may be outstanding
at the same time; provided, however, that no Borrower shall be entitled to
request any Borrowing which, if made, would result in an aggregate of more than
five separate Eurodollar Loans of any Lender being made to the Borrowers and
outstanding under this Agreement at any one time. For purposes of the foregoing,
Loans having different Interest Periods, regardless of whether they commence on
the same date, shall be considered separate Loans.
(c) Except as otherwise provided in Section 2.10, each Lender shall
make each Loan that is (A) an ABR Loan or (B) a Eurodollar Loan, to be made by
it hereunder on the proposed date thereof by wire transfer of immediately
available funds to the Administrative Agent in New York, New York, not later
than 1:00 p.m., New York City time, and the Administrative Agent shall by 3:00
p.m., New York City time, credit the amounts so received to the general deposit
account of the Borrower to which such Loan is to be made with Mellon Bank, N.A.,
or such other account as such Borrower may designate in a written notice to the
Administrative Agent, or, if such Loans are not made on such date because any
condition precedent to a Borrowing herein specified shall not have been met,
return the amounts so received to the respective Lenders. Unless the
Administrative Agent shall have received notice from a Lender prior to the date
of any Borrowing that such Lender will not make available to the Administrative
Agent such Lender's portion of such Borrowing, the Administrative Agent may
assume that such Lender has made such portion available to the Administrative
Agent on the date of such Borrowing in accordance with this paragraph (c) and
the Administrative Agent may, in reliance upon such assumption, make available
to the applicable Borrower on such date a corresponding amount. If and to the
extent that such Lender shall not have made such portion available to the
Administrative Agent, such Lender and the applicable Borrower severally agree to
repay to the Administrative Agent forthwith on demand such corresponding amount
together with interest thereon, for each day from the date such amount is made
available to such Borrower until the date such amount is repaid to the
Administrative Agent, at (i) in the case of such Borrower, the interest rate
applicable at the time to the Loans comprising such Borrowing and (ii) in the
case of
20
such Lender, a rate determined by the Administrative Agent to represent its cost
of overnight or short-term funds (which determination shall be conclusive absent
manifest error). If such Lender shall repay to the Administrative Agent such
corresponding amount, such amount shall constitute such Lender's Loan as part of
such Borrowing for purposes of this Agreement.
(d) Notwithstanding any other provision of this Agreement, no Borrower
shall be entitled to request any Borrowing if the Interest Period requested with
respect thereto would end after the Maturity Date.
SECTION 2.03. Notice of Borrowings. In order to request a Borrowing, a
Borrower shall give written or telecopy notice (or telephone notice promptly
confirmed in writing or by telecopy) (a) in the case of an ABR Borrowing, to the
Administrative Agent not later than 12:00 noon, New York City time, on the
Business Day of such proposed Borrowing, (b) in the case of a Eurodollar
Borrowing, to the Administrative Agent not later than 10:00 a.m., New York City
time, three Business Days before such proposed Borrowing. Such notice shall be
irrevocable and shall in each case refer to this Agreement, identify the
applicable Borrower and specify (i) whether such Borrowing is to be a Eurodollar
Borrowing or an ABR Borrowing; (ii) the date of such Borrowing (which shall be a
Business Day) and the amount thereof; and (iii) if such Borrowing is to be a
Eurodollar Borrowing, the Interest Period with respect thereto. If no election
as to the Type of Borrowing is specified in any such notice, then the requested
Borrowing shall be an ABR Borrowing. If no Interest Period with respect to any
Eurodollar Borrowing is specified in any such notice, then the Borrower giving
the notice of Borrowing shall be deemed to have selected an Interest Period of
one month's duration. If a Borrower shall not have given notice in accordance
with this Section 2.03 of its election to refinance a Borrowing prior to the end
of the Interest Period in effect for such Borrowing, then the Borrower shall
(unless such Borrowing is repaid at the end of such Interest Period) be deemed
to have given notice of an election to refinance such Borrowing with an ABR
Borrowing. The Administrative Agent shall promptly advise the Lenders of any
notice given pursuant to this Section 2.03 and of each Lender's portion of the
requested Borrowing.
21
SECTION 2.04. Evidence of Debt; Repayment of Loans. (a) The outstanding
principal balance of each Loan shall be payable on the earlier of the last day
of the Interest Period applicable to such Loan or the Maturity Date.
(b) Each Lender shall maintain in accordance with its usual practice an
account or accounts evidencing the indebtedness of each Borrower to such Lender
resulting from each Loan made by such Lender from time to time, including the
amounts of principal and interest payable and paid such Lender from time to time
under this Agreement.
(c) The Administrative Agent shall maintain accounts in which it will
record (i) the amount of each Loan made to a Borrower hereunder, (ii) the Type
of each such Loan and the Interest Period applicable thereto, (iii) the amount
of any principal or interest due and payable or to become due and payable from
the applicable Borrower to each Lender hereunder and (iv) the amount of any sum
received by the Administrative Agent hereunder from any Borrower and each
Lender's share thereof.
(d) The entries made in the accounts maintained pursuant to paragraphs
(b) and (c) above shall be prima facie evidence of the existence and amounts of
the obligations therein recorded; provided, however, that the failure of any
Lender or the Administrative Agent to maintain such accounts or any error
therein shall not in any manner affect the obligation of any Borrower to repay
the Loans in accordance with their terms.
(e) Notwithstanding any other provision of this Agreement, in the event
any Lender shall request a promissory note evidencing the Loans made by it
hereunder to Alcoa or any Borrowing Subsidiary, the Borrower shall deliver such
a note, satisfactory to the Administrative Agent, payable to such Lender and its
registered assigns, and the interests represented by such note shall at all
times (including after any assignment of all or part of such interests pursuant
to Section 10.04) be represented by one or more promissory notes payable to the
payee named therein or its registered assigns.
SECTION 2.05. Fees. (a) Alcoa will pay to each Lender, through the
Administrative Agent, on the last day of March, June, September and December in
each year, and on
22
the date on which the Commitment of such Lender shall be terminated as provided
herein, a facility fee (the "Facility Fee") at a rate per annum equal to the
Facility Fee Percentage from time to time in effect on the aggregate amount of
the Commitment of such Lender, whether used or unused, from time to time in
effect during the preceding quarter (or shorter period commencing with the date
hereof or ending with the Maturity Date or the date on which the Commitment of
such Lender shall be terminated). All Facility Fees shall be computed on the
basis of the actual number of days elapsed in a year of 360 days. The Facility
Fee due to each Lender shall commence to accrue on the date hereof and shall
cease to accrue on the date on which the Commitment of such Lender shall be
terminated as provided herein.
(b) Alcoa agrees to pay to the Administrative Agent, for its own
account, the fees provided for in the Engagement Letter (the "Engagement Fees")
at the times provided therein.
(c) All Fees shall be paid on the dates due, in immediately available
funds, to the Administrative Agent, for distribution, if and as appropriate,
among the Lenders. Once paid, the Fees shall not be refundable except in the
case of an error which results in the payment of Fees in excess of those due and
payable as of such date, in which case the Administrative Agent shall cause a
refund in the amount of such excess to be paid to Alcoa.
SECTION 2.06. Interest on Loans. (a) Subject to the provisions of
Section 2.07, the unpaid principal amount of the Loans comprising each ABR
Borrowing shall bear interest for each day (computed on the basis of the actual
number of days elapsed over a year of 365 or 366 days, as the case may be, when
the Alternate Base Rate is determined by reference to the Prime Rate and over a
year of 360 days at all other times) at a rate per annum equal to the Alternate
Base Rate.
(b) Subject to the provisions of Section 2.07, the unpaid principal
amount of the Loans comprising each Eurodollar Borrowing shall bear interest
(computed on the basis of the actual number of days elapsed over a year of 360
days) at a rate per annum equal to the LIBO Rate for the Interest Period in
effect for such Borrowing plus the Applicable Margin.
23
(c) Interest on each Loan shall be payable on the Interest Payment
Dates applicable to such Loan except as otherwise provided in this Agreement.
Interest shall accrue from and including the first day of an Interest Period to
but excluding the last day of such Interest Period. The applicable LIBO Rate or
Alternate Base Rate for each Interest Period or day within an Interest Period,
as the case may be, shall be determined by the Administrative Agent, and such
determination shall be conclusive absent manifest error.
SECTION 2.07. Default Interest. If any Borrower shall default in the
payment of the principal of or interest on any Loan or any other amount becoming
due hereunder, by acceleration or otherwise, such Borrower shall on demand from
time to time pay interest, to the extent permitted by law, on such defaulted
amount up to (but not including) the date of actual payment (after as well as
before judgment) at a rate per annum equal to (a) in the case of overdue
principal of any Loan, the rate otherwise applicable to such Loan as provided in
Section 2.06 plus 2% per annum, or (b) in the case of any other amount, the rate
applicable to ABR Borrowings plus 2% per annum.
SECTION 2.08. Alternate Rate of Interest. In the event, and on each
occasion, that on the day two Business Days prior to the commencement of any
Interest Period for a Eurodollar Loan, the Administrative Agent shall have
determined in good faith that dollar deposits in the principal amounts of the
Loans comprising such Borrowing are not generally available in the London
interbank market or other market in which Lenders ordinarily raise dollars to
fund Loans of the requested Type, or that the rates at which such dollar
deposits are being offered will not adequately and fairly reflect the cost to
any Lender of making or maintaining its Eurodollar Loan during such Interest
Period, or that reasonable means do not exist for ascertaining the LIBO Rate,
then the Administrative Agent shall, as soon as practicable thereafter, give
written or telecopy notice of such determination to the relevant Borrower and
Lenders. In the event of any such determination, any request made by a Borrower
after the date of such notice for a Eurodollar Borrowing pursuant to Section
2.03 or 2.10 shall, until the Administrative Agent shall have advised the
Borrowers and the Lenders that the
24
circumstances giving rise to such notice no longer exist, be deemed to be a
request for an ABR Borrowing. Each determination by the Administrative Agent
hereunder shall be conclusive absent manifest error.
SECTION 2.09. Termination and Reduction of Commitments. (a) The
Commitments shall be automatically terminated on the Maturity Date.
(b) Upon at least 10 Business Days' prior irrevocable, written or
telecopy notice to the Administrative Agent, Alcoa may at any time in whole
permanently terminate, or from time to time in part permanently reduce, the
Total Commitment; provided, however, that (i) each partial reduction shall be in
an integral multiple of $1,000,000 and in a minimum principal amount of
$10,000,000 and (ii) the Total Commitment shall not be reduced to an amount that
is less than the aggregate principal amount of the outstanding Loans (after
giving effect to any simultaneous prepayment pursuant to Section 2.11).
(c) Each reduction in Commitments hereunder shall be made ratably among
the Lenders in accordance with each such Lender's Pro Rata Percentage of the
Total Commitment. Alcoa shall pay to the Administrative Agent for the account of
the applicable Lenders, on the date of each such termination or reduction, the
Facility Fees on the amount of the Commitments so terminated or reduced accrued
to the date of such termination or reduction.
SECTION 2.10. Refinancings. Any Borrower may refinance all or any part
of any Loan made to it with a Loan of the same or a different Type made pursuant
to the same Commitments, subject to the conditions and limitations set forth in
this Agreement. Any Borrowing or part thereof so refinanced shall be deemed to
have been repaid or prepaid in accordance with Section 2.04 or 2.11, as
applicable, with the proceeds of a new Borrowing; and the proceeds of the new
Borrowing, to the extent they do not exceed the principal amount of the
Borrowing being refinanced, shall not be paid by the applicable Lenders to the
Administrative Agent or by the Administrative Agent to the applicable Borrower
pursuant to Section 2.02(c).
SECTION 2.11. Prepayment. (a) Each Borrower shall have the right at
any time and from time to time to prepay
25
any Borrowing, in whole or in part, upon at least three Business Days' prior
written or telecopy notice (or telephone notice promptly confirmed by written or
telecopy notice) to the Administrative Agent; provided, however, that each
partial prepayment shall be in an amount which is an integral multiple of
$1,000,000 and not less than $10,000,000.
(b) On the date of any termination or reduction of any Commitments
pursuant to Section 2.09, the Borrowers shall pay or prepay so much of the
Loans, as shall be necessary in order that, after giving effect to such
reduction or termination, the aggregate principal amount of the outstanding
Loans shall not exceed the Total Commitment.
(c) Each notice of prepayment shall specify the prepayment date and the
principal amount of each Loan (or portion thereof) to be prepaid, shall be
irrevocable and shall commit the applicable Borrower to prepay the Loan to which
such notice relates by the amount stated therein on the date stated therein. All
prepayments under this Section 2.11 shall be subject to Section 2.14 but
otherwise without premium or penalty. All prepayments under this Section 2.11
shall be accompanied by accrued interest on the principal amount being prepaid
to the date of payment.
SECTION 2.12. Reserve Requirements; Change in Circumstances. (a)
Notwithstanding any other provision herein other than Section 2.14(c), if after
the date of this Agreement any change in applicable law or regulation or in the
interpretation or administration thereof by any Governmental Authority charged
with the interpretation or administration thereof (whether or not having the
force of law) shall change the basis of taxation of payments to any Lender of
the principal of or interest on any Eurodollar Loan made by such Lender or any
Fees or other amounts payable hereunder (other than changes in respect of taxes
imposed on the overall net income of such Lender by the jurisdiction in which
such Lender has its principal office or by any political subdivision or taxing
authority therein), or shall impose, modify or deem applicable any reserve,
special deposit or similar requirement against assets of, deposits with or for
the account of or credit extended by such Lender (except any such reserve
requirement which is reflected in the LIBO Rate or the Base CD Rate) or shall
impose on such Lender or the London
26
interbank market or other market in which Lenders ordinarily raise dollars to
fund Loans of the requested Type any other condition affecting this Agreement or
Eurodollar Loans made by such Lender, and the result of any of the foregoing
shall be to increase the cost to such Lender of funding, making or maintaining
any Eurodollar Loan or to reduce the amount of any sum received or receivable by
such Lender hereunder (whether of principal, interest or otherwise) by an amount
deemed by such Lender to be material, then Alcoa will pay or cause the other
Borrowers to pay to such Lender upon demand such additional amount or amounts as
will compensate such Lender for such additional costs incurred or reduction
suffered.
(b) If any Lender shall have determined that the applicability of any
law, rule, regulation, agreement or guideline adopted after the date of this
Agreement pursuant to the July 1988 report of the Basle Committee on Banking
Regulations and Supervisory Practices entitled "International Convergence of
Capital Measurement and Capital Standards", or the adoption after the date
hereof of any other law, rule, regulation, agreement or guideline regarding
capital adequacy, or any change in any of the foregoing or in the interpretation
or administration of any of the foregoing by any governmental authority, central
bank or comparable agency charged with the interpretation or administration
thereof, or compliance by any Lender (or any lending office of such Lender) or
any Lender's holding company with any request or directive regarding capital
adequacy (whether or not having the force of law) of any such authority, central
bank or comparable agency, has or would have the effect of reducing the rate of
return on such Lender's capital or on the capital of such Lender's holding
company, if any, as a consequence of this Agreement or the Loans made by such
Lender pursuant hereto to a level below that which such Lender or such Lender's
holding company could have achieved but for such applicability, adoption, change
or compliance (taking into consideration such Lender's policies and the policies
of such Lender's holding company with respect to capital adequacy) by an amount
deemed by such Lender to be material, then from time to time Alcoa shall pay or
cause the other Borrowers to pay to such Lender such additional amount or
amounts as will compensate such Lender or such Lender's holding company for any
such reduction suffered.
27
(c) A certificate of each Lender setting forth such amount or amounts
as shall be necessary to compensate such Lender or its holding company as
specified in paragraph (a) or (b) above, as the case may be, together with a
statement of reasons for such demand and showing the calculation for such
amounts shall be delivered to Alcoa and shall be conclusive absent manifest
error. Alcoa shall pay or cause to be paid to each Lender the amount shown as
due on any such certificate delivered by it within 10 days after its receipt of
the same.
(d) Except as provided in this paragraph, failure on the part of any
Lender to demand compensation for any increased costs or reduction in amounts
received or receivable or reduction in return on capital with respect to any
period shall not constitute a waiver of such Lender's right to demand
compensation with respect to such period or any other period. The protection of
this Section 2.12 shall be available to each Lender regardless of any possible
contention of the invalidity or inapplicability of the law, rule, regulation,
guideline or other change or condition which shall have occurred or been
imposed. No Lender shall be entitled to compensation under this Section 2.12 for
any costs incurred or reductions suffered with respect to any date unless it
shall have notified Alcoa that it will demand compensation for such costs or
reductions under paragraph (c) above not more than 60 days after the later of
(i) such date and (ii) the date on which it shall have or reasonably should have
become aware of such costs or reductions. In the event a Borrower shall
reimburse any Lender pursuant to this Section 2.12 for any cost and the Lender
shall subsequently receive a refund in respect thereof, the Lender shall so
notify such Borrower and shall pay to such Borrower the portion of such refund
which it shall determine in good faith to be allocable to the cost so
reimbursed.
SECTION 2.13. Change in Legality. (a) Notwithstanding any other
provision herein other than Section 2.14(c), if any change in any law or
regulation or in the interpretation thereof by any Governmental Authority
charged with the administration or interpretation thereof shall make it unlawful
for any Lender to make or maintain any Eurodollar Loan or to give effect to its
obligations as contemplated hereby with respect to any Eurodollar Loan, then, by
written or telecopy notice to Alcoa and the Administrative Agent, such Lender
may:
28
(i) declare that Eurodollar Loans will not thereafter be
made by such Lender hereunder, whereupon any request by a Borrower for
a Eurodollar Borrowing shall, as to such Lender only, be deemed a
request for an ABR Loan unless such declaration shall be subsequently
withdrawn; and
(ii) require that all outstanding Eurodollar Loans made by it
be converted to ABR Loans, in which event all such Eurodollar Loans
shall automatically be so converted as of the effective date of such
notice as provided in paragraph (b) below.
In the event any Lender shall exercise its rights under clause (i) or (ii)
above, all payments and prepayments of principal which would otherwise have been
applied to repay the Eurodollar Loans that would have been made by such Lender
or the converted Eurodollar Loans of such Lender shall instead be applied to
repay the Loans made by such Lender in lieu of, or resulting from the conversion
of, such Eurodollar Loans.
(b) For purposes of this Section 2.13, a notice by any Lender shall be
effective as to each Eurodollar Loan, if lawful, on the last day of the Interest
Period applicable to such Eurodollar Loan; in all other cases such notice shall
be effective on the date of receipt.
SECTION 2.14. Indemnity. Alcoa shall indemnify or cause the other
Borrowers to indemnify each Lender against any loss or expense which such Lender
may sustain or incur as a consequence of (a) any failure to fulfill on the date
of any borrowing hereunder the applicable conditions set forth in Article IV,
(b) any failure by a Borrower to borrow or refinance any Loan hereunder after
irrevocable notice of such borrowing or refinancing has been given pursuant to
Section 2.03, (c) any payment, prepayment or refinancing of a Eurodollar Loan
required by any other provision of this Agreement or otherwise made or deemed
made on a date other than the last day of the Interest Period applicable
thereto, other than any loss of profit resulting from any event, circumstance or
condition set forth in Section 2.12 or 2.13, (d) any default in payment or
prepayment of the principal amount of any Loan
29
or any part thereof or interest accrued thereon, as and when due and payable (at
the due date thereof, whether by scheduled maturity, acceleration, irrevocable
notice of prepayment or otherwise) or (e) the occurrence of any Event of
Default, including, in each such case, any loss or reasonable expense sustained
or incurred or to be sustained or incurred in liquidating or employing deposits
from third parties acquired to effect or maintain such Loan or any part thereof
as a Eurodollar Loan. Such loss or reasonable expense shall include an amount
equal to the excess, if any, as reasonably determined by such Lender, of (i) its
cost of obtaining the funds for the Loan being paid, prepaid, refinanced or not
borrowed (assumed to be the LIBO Rate applicable thereto) for the period from
the date of such payment, prepayment, refinancing or failure to borrow or
refinance to the last day of the Interest Period for such Loan (or, in the case
of a failure to borrow or refinance the Interest Period for such Loan which
would have commenced on the date of such failure) over (ii) the amount of
interest (as reasonably determined by such Lender) that would be realized by
such Lender in reemploying the funds so paid, prepaid or not borrowed or
refinanced for such period or Interest Period, as the case may be. A certificate
of any Lender setting forth any amount or amounts which such Lender is entitled
to receive pursuant to this Section together with a statement of reasons for
such demand and the calculation of such amount or amounts shall be delivered to
Alcoa and shall be conclusive absent manifest error.
SECTION 2.15. Pro Rata Treatment. Except as required under Section
2.13, each Borrowing, each payment or prepayment of principal of any Borrowing,
each payment of interest on the Loans, each payment of the Facility Fees, each
reduction of Commitments and each conversion or continuation of any Borrowing
with a Borrowing of any Type shall be allocated pro rata among the Lenders in
accordance with their respective applicable Commitments (or, if such Commitments
shall have expired or been terminated, in accordance with the respective
principal amounts of their applicable outstanding Loans). Each Lender agrees
that in computing such Lender's portion of any Borrowing to be made hereunder,
the Administrative Agent may, in its discretion, round each Lender's percentage
of such Borrowing, computed in accordance with Schedule 2.01, to the next higher
or lower whole dollar amount.
30
SECTION 2.16. Sharing of Setoffs. Each Lender agrees that if it shall,
through the exercise of a right of banker's lien, setoff or counterclaim against
any Borrower, or pursuant to a secured claim under Section 506 of Title 11 of
the United States Code or other security or interest arising from, or in lieu
of, such secured claim, received by such Lender under any applicable bankruptcy,
insolvency or other similar law or otherwise, or by any other means, obtain
payment (voluntary or involuntary) in respect of any Loan or Loans as a result
of which the unpaid principal portion of its Loans shall be proportionately less
than the unpaid principal portion of the Loans of any other Lender, it shall be
deemed simultaneously to have purchased from such other Lender at face value,
and shall promptly pay to such other Lender the purchase price for, a
participation in the Loans of such other Lender, so that the aggregate unpaid
principal amount of the Loans and participations in Loans held by each Lender
shall be in the same proportion to the aggregate unpaid principal amount of all
Loans then outstanding as the principal amount of its Loans prior to such
exercise of banker's lien, setoff or counterclaim or other event was to the
principal amount of all Loans outstanding prior to such exercise of banker's
lien, setoff or counterclaim or other event; provided, however, that, if any
such purchase or purchases or adjustments shall be made pursuant to this Section
and the payment giving rise thereto shall thereafter be recovered, such purchase
or purchases or adjustments shall be rescinded to the extent of such recovery
and the purchase price or prices or adjustment restored without interest. Alcoa
and each other Borrower expressly consent to the foregoing arrangements and
agree that any Lender holding a participation in a Loan deemed to have been so
purchased may exercise any and all rights of banker's lien, setoff or
counterclaim with respect to any and all moneys owing by Alcoa or such other
Borrower to such Lender by reason thereof as fully as if such Lender had made a
Loan directly to Alcoa or such Borrower in the amount of such participation.
SECTION 2.17. Payments. (a) Each payment or prepayment by any Borrower
of the principal of or interest on any Loans, any Fees payable to the
Administrative Agent or the Lenders or any other amounts due hereunder (other
than amounts referred to in clause (b) below) shall be made, without setoff or
counterclaim, not later than 12:00 (noon), New York City time, on the date when
due in dollars
31
to the Administrative Agent at its offices at ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇
▇▇▇▇, in immediately available funds.
(b) Whenever any payment (including principal of or interest on any
Borrowing or any Fees or other amounts) hereunder shall become due, or otherwise
would occur, on a day that is not a Business Day, such payment may be made on
the next succeeding Business Day, and such extension of time shall in such case
be included in the computation of interest or Fees, if applicable.
SECTION 2.18. Taxes. (a) Any and all payments by or on behalf of a
Borrower hereunder shall be made free and clear of and without deduction for any
and all present or future taxes, levies, imposts, deductions, charges or
withholdings, and all liabilities with respect thereto, excluding taxes imposed
on the net income of the Administrative Agent or any Lender (or any transferee
or assignee thereof, including a participation holder (any such entity a
"Transferee")) and franchise taxes imposed on the Administrative Agent or any
Lender (or Transferee) in each case by the United States or any jurisdiction
under the laws of which the Administrative Agent or any such Lender (or
Transferee) is organized or any political subdivision thereof (all such
nonexcluded taxes, levies, imposts, deductions, charges, withholdings and
liabilities, collectively or individually, "Taxes"). If any Borrower shall be
required by law to deduct any Taxes from or in respect of any sum payable
hereunder to the Lenders (or any Transferee) or the Administrative Agent, (i)
the sum payable shall be increased by the amount necessary so that after making
all required deductions (including deductions applicable to additional sums
payable under this Section 2.18) such Lender (or Transferee) or the
Administrative Agent (as the case may be) shall receive an amount equal to the
sum it would have received had no such deductions been made, (ii) such Borrower
shall make such deductions and (iii) such Borrower shall pay the full amount
deducted to the relevant taxing authority or other Governmental Authority in
accordance with applicable law; provided, however, that no Transferee of any
Lender shall be entitled to receive any greater payment under this paragraph (a)
than such Lender would have been entitled to receive immediately before
assignment, participation or other transfer with respect to the rights assigned,
participated or transferred unless such assignment, participation or transfer
shall have been made (A) prior to the occurrence
32
of an event (including any change in treaty, law or regulation) giving rise to
such greater payment or (B) at the request of Alcoa.
(b) In addition, each Borrower agrees to pay any present or future
stamp or documentary taxes or any other excise or property taxes, charges or
similar levies which arise from any payment made hereunder or from the
execution, delivery or registration of, or otherwise with respect to, this
Agreement (hereinafter referred to as "Other Taxes").
(c) Each Borrower will indemnify each Lender (or Transferee) and the
Administrative Agent for the full amount of Taxes and Other Taxes paid by such
Lender (or Transferee) or the Administrative Agent, as the case may be, and any
liability (including penalties, interest and expenses) arising therefrom or with
respect thereto, whether or not such Taxes or Other Taxes were correctly or
legally asserted by the relevant taxing authority or other Governmental
Authority. Such indemnification shall be made within 30 days after the date any
Lender (or Transferee) or the Administrative Agent, as the case may be, makes
written demand therefor, together with a statement of reasons for such demand
and the calculations of such amount.
(d) Within 30 days after the date of any payment of Taxes or Other
Taxes withheld by any Borrower in respect of any payment to any Lender (or
Transferee) or the Administrative Agent, such Borrower will furnish to the
Administrative Agent, at its address referred to in Section 10.01, the original
or a certified copy of a receipt evidencing payment thereof.
(e) Without prejudice to the survival of any other agreement contained
herein, the agreements and obligations contained in this Section 2.18 shall
survive the payment in full of the principal of and interest on all Loans made
hereunder.
(f) Each Lender (or Transferee) represents to Alcoa that, on the date
such Lender (or such Transferee) becomes a party to this Agreement, it is
eligible to receive payments of interest hereunder from Alcoa or any Borrowing
Subsidiary without withholding in respect of United States Federal withholding
tax (except, in the case of a Transferee of any Lender, as a result of the
33
occurrence of an event (including a change in treaty, law or regulation) after
the date of this Agreement giving rise to withholding to which such Lender would
be subject).
(g) Each Lender (or Transferee, other than a Transferee described in
the exception in Section 2.18(f)) that is organized under the laws of a
jurisdiction outside the United States shall, on or before the date it becomes a
party to this Agreement (or, in the case of a Transferee that is a participation
holder, on or before the date such Transferee becomes a participation holder
hereunder), deliver to Alcoa and the Administrative Agent such certificates,
documents or other evidence, as required by the Code or Treasury Regulations
issued pursuant thereto, including Internal Revenue Service Form W8-BEN, Form
W-8ECI, or any other certificate or statement of exemption required by Treasury
Regulation Section 1.1441-1, 1.1441-4 or 1.1441-6 or any subsequent version
thereof or successors thereto, properly completed and duly executed by such
Lender (or Transferee) establishing that payment is (i) not subject to United
States Federal withholding tax under the Code because such payments are
effectively connected with the conduct by such Lender (or Transferee) of a trade
or business in the United States or (ii) totally exempt from United States
Federal withholding tax under a provision of an applicable tax treaty. In
addition, each such Lender (or such Transferee) shall, if legally able to do so,
thereafter deliver such certificates, documents or other evidence from time to
time establishing that payments received hereunder are not subject to such
withholding upon receipt of a written request therefor from Alcoa or the
Administrative Agent. Unless Alcoa and the Administrative Agent have received
forms or other documents satisfactory to them indicating that payments hereunder
are not subject to United States Federal withholding tax, Alcoa or the
Administrative Agent shall withhold such taxes from such payments at the
applicable statutory rate, subject to Section 2.18(a).
(h) None of the Borrowers shall be required to pay any additional
amounts to any Lender (or Transferee) in respect of United States Federal
withholding tax pursuant to paragraph (a) above to the extent that the
obligation to pay such additional amounts would not have arisen but for a
failure by such Lender (or Transferee) to deliver the certificates, documents or
other evidence required to be delivered under the preceding paragraph (g) unless
such
34
failure is attributable to (i) a change in applicable law, regulation or
official interpretation thereof or (ii) an amendment or modification to or a
revocation of any applicable tax treaty or a change in official position
regarding the application or interpretation thereof, in each case on or after
the date such Lender (or Transferee) became a party to this Agreement.
(i) Any Lender (or Transferee) claiming any additional amounts payable
pursuant to this Section 2.18 shall use reasonable efforts (consistent with
legal and regulatory restrictions) to file any certificate or document requested
in writing by the relevant Borrower or to change the jurisdiction of its
applicable lending office if the making of such a filing or change would avoid
the need for or reduce the amount of any such additional amounts which may
thereafter accrue and would not, in the sole determination of such Lender (or
Transferee), be otherwise disadvantageous to such Lender (or Transferee).
(j) If a Lender (or Transferee) or the Administrative Agent shall
become aware that it may be entitled to receive a refund in respect of Taxes or
Other Taxes as to which it has been indemnified by a Borrower pursuant to this
Section 2.18, it shall promptly notify Alcoa of the availability of such refund
and shall, within 30 days after receipt of a request by Alcoa, apply for such
refund at Alcoa's expense. If any Lender (or Transferee) or the Administrative
Agent receives a refund in respect of any Taxes or Other Taxes as to which it
has been indemnified by a Borrower pursuant to this Section 2.18, it shall
promptly repay such refund to such Borrower (to the extent of amounts that have
been paid by such Borrower under this Section 2.18 with respect to such refund),
net of all out-of-pocket expenses (including taxes imposed with respect to such
refund) of such Lender (or Transferee) or the Administrative Agent and without
interest; provided, however, that such Borrower, upon the request of such Lender
(or Transferee) or the Administrative Agent, agrees to return such refund (plus
penalties, interest or other charges) to such Lender (or Transferee) or the
Administrative Agent in the event such Lender (or Transferee) or the
Administrative Agent is required to repay such refund.
(k) Nothing contained in this Section 2.18 shall require any Lender (or
Transferee) or the Administrative
35
Agent to make available any of its tax returns (or any other information
relating to its taxes which it deems to be confidential).
(l) No Borrower shall be required to reimburse any Lender (or
Transferee) or the Administrative Agent with respect to any Tax or Other Tax
unless such Lender, Transferee or the Administrative Agent notifies such
Borrower of the amount of such Tax or Other Tax on or before the second
anniversary of the date such Lender, Transferee or the Administrative Agent pays
such Tax or Other Tax.
SECTION 2.19. Assignment of Commitments Under Certain Circumstances.
In the event that any Lender shall have delivered a notice or certificate
pursuant to Section 2.12 or 2.13, or a Borrower shall be required to make
additional payments to any Lender under Section 2.18, Alcoa shall have the
right, at its own expense, upon notice to such Lender and the Administrative
Agent, to require such Lender to transfer and assign without recourse (in
accordance with and subject to the restrictions contained in Section 10.04) all
its interests, rights and obligations under this Agreement to another financial
institution which shall assume such obligations; provided, however, that (i) no
such assignment shall conflict with any law, rule or regulation or order of any
Governmental Authority and (ii) Alcoa or the assignee, as the case may be, shall
pay (or, in the case of Alcoa, cause another Borrower to pay) to the affected
Lender in immediately available funds on the date of such termination or
assignment the principal of and interest accrued to the date of payment on the
Loans made by it hereunder and all other amounts accrued for its account or owed
to it hereunder.
ARTICLE III. REPRESENTATIONS AND WARRANTIES
Each Borrower represents and warrants to each of the Lenders with
respect to itself as follows (except that the Borrowing Subsidiaries make no
representations or warranties under Section 3.06 or 3.09):
SECTION 3.01. Organization. Such Borrower is a corporation duly
organized, validly existing and, where applicable, in good standing under the
laws of its jurisdiction of incorporation and is duly qualified to do
36
business as a foreign corporation and, where applicable, is in good standing in
all other jurisdictions in which the ownership of its properties or the nature
of its activities or both makes such qualification necessary, except to the
extent that failure to be so qualified would not result in a Material Adverse
Effect.
SECTION 3.02. Authorization. Such Borrower has corporate power and
authority to execute, deliver and carry out the provisions of this Agreement to
which it is a party, to borrow hereunder and to perform its obligations
hereunder and all such action has been duly and validly authorized by all
necessary corporate proceedings on its part.
SECTION 3.03. Enforceability. This Agreement has been duly executed
and delivered by such Borrower and constitutes the legal, valid and binding
obligation of such Borrower enforceable in accordance to its terms, except as
limited by bankruptcy, insolvency or other similar laws of general application
affecting the enforcement of creditors' rights or by general principles of
equity limiting the availability of equitable remedies.
SECTION 3.04. Governmental Approvals. No authorization, consent,
approval, license exemption or other action by, and no registration,
qualification, designation, declaration or filing with, any Governmental
Authority is necessary in connection with such Borrower's execution and delivery
of this Agreement, the consummation by any Borrower of the transactions
contemplated hereby or such Borrower's performance of or compliance with the
terms and conditions hereof, except as set forth on Schedule 3.04.
SECTION 3.05. No Conflict. None of the execution and delivery by such
Borrower of this Agreement, the consummation by such Borrower of the
transactions contemplated hereby or performance by such Borrower of or
compliance by such Borrower with the terms and conditions hereof or thereof will
(a) violate any law, constitution, statute, treaty, regulation, rule, ordinance,
order, injunction, writ, decree or award of any Governmental Authority to which
it is subject, (b) conflict with or result in a breach or
37
default under its charter or Memorandum and Articles of Association or by-laws,
as applicable, (c) conflict with or result in a breach or default which is
material in the context of this Agreement under any agreement or instrument to
which such Borrower is a party or by which it or any of its properties, whether
now owned or hereafter acquired, may be subject or bound or (d) result in the
creation or imposition of any Lien prohibited by Section 6.01 upon any property
or assets, whether now owned or hereafter acquired, of such Borrower.
SECTION 3.06. Financial Statements. In the case of Alcoa, it has
furnished to the Lenders copies of its consolidated balance sheet as of December
31, 2000, and the related consolidated statements of income and cash flow for
the year then ended, all examined and certified by PricewaterhouseCoopers,
L.L.P. Such financial statements (including the notes thereto) present fairly
the financial condition of Alcoa and its Subsidiaries as of such dates and the
results of their operations for the periods then ended, all in conformity with
GAAP, subject (in the case of the interim financial statements) to year-end
audit adjustments.
SECTION 3.07. No Defaults. No event has occurred and is continuing and
no condition exists which constitutes a Default or Event of Default hereunder.
Such Borrower is not in violation of (i) any term of its charter or Constitution
or by-laws, as applicable, or (ii) any material agreement or instrument to which
it is a party or by which it or any of its properties may be subject or bound
where such violation is likely to result in a Material Adverse Effect.
SECTION 3.08. Litigation. Except as set forth in the financial
statements referred to in Section 3.06 or any Exchange Act Report or otherwise
disclosed on Schedule 3.08, there is no pending or, to the knowledge of any of
its Responsible Officers, threatened proceeding by or before any Governmental
Authority against it which in the opinion of its counsel is likely to result in
a Material Adverse Effect. Except as set forth in the financial statements
referred to in Section 3.06 or any Exchange Act Report or otherwise disclosed in
Schedule 3.08, there is no pending or, to the knowledge of any of its
Responsible Officers, threatened proceeding by or before any Governmental
Authority against any of its Subsidiaries which in the opinion of its counsel is
likely to result in a Material Adverse Effect.
38
SECTION 3.09. No Material Adverse Change. As of the date of this
Agreement, there has been no material adverse change in the business, assets,
operations or financial condition of itself and its Subsidiaries, taken as a
whole, except, in the case of Alcoa and the Borrowing Subsidiaries, as disclosed
in any Exchange Act Report, since December 31, 2000.
SECTION 3.10. Employee Benefit Plans. (a) U.S. Plans. It and each of
its ERISA Affiliates is in compliance in all material respects with the
applicable provisions of ERISA and the regulations and published interpretations
thereunder. No Reportable Event has occurred as to which such Borrower or any
ERISA Affiliate was required to file a report with the PBGC that alone or
together with any other Reportable Event would reasonably be expected to result
in a liability of such Borrower to the PBGC in an aggregate amount in excess of
$25,000,000. The aggregate present value of all benefit liabilities under the
Plans (based on the assumptions used to fund such Plans) did not, as of the last
annual valuation dates applicable thereto, exceed the aggregate value of the
assets of the Plans by more than 10% of Consolidated Net Worth. Neither such
Borrower nor any ERISA Affiliate has incurred any Withdrawal Liability that
would reasonably be expected to result in a Material Adverse Effect. Neither
such Borrower nor any ERISA Affiliate has received any notification that any
Multiemployer Plan is in reorganization or has been terminated within the
meaning of Title IV of ERISA, and no Responsible Officer of any Borrower has
knowledge of any fact which would reasonably be expected to result in the
reorganization or termination of a Multiemployer Plan where such reorganization
or termination has resulted or would reasonably be expected to result, through
increases in the contributions required to be made to such Plan or otherwise, in
a Material Adverse Effect.
(b) Foreign Plans. Each Foreign Plan is in compliance in all material
respects with all requirements of law applicable thereto and the respective
requirements of the governing documents for such plan except to the extent such
non-compliance could not reasonably be expected to result in a Material Adverse
Effect. With respect to each Foreign Pension Plan, none of the Borrowers, their
respective Affiliates or any of their directors, officers, employees or agents
has engaged in a transaction which would subject any of the Borrowers, directly
or indirectly,
39
to a material tax or civil penalty which could reasonably be expected to result
in a Material Adverse Effect. With respect to each Foreign Pension Plan, none of
the Borrowers, their respective Affiliates or any of their directors, officers,
employees or agents has engaged in a transaction which would subject any of the
Borrowers, directly or indirectly, to a material tax or civil penalty which
could reasonably be expected to result in a Material Adverse Effect. With
respect to each Foreign Plan, adequate reserves have been established in the
financial statements furnished to Lenders in respect of any unfunded liabilities
in accordance with applicable law and prudent business practice or, where
required, in accordance with ordinary accounting practices in the jurisdiction
in which such Foreign Plan is maintained. The aggregate unfunded liabilities,
after giving effect to any such reserves for such liabilities, with respect to
such Foreign Plans could not reasonably be expected to result in a Material
Adverse Effect. There are no material actions, suits or claims (other than
routine claims for benefits) pending or threatened against any of the Borrowers
or any of their Affiliates with respect to any Foreign Plan which could
reasonably be expected, individually or in the aggregate, to result in a
Material Adverse Effect.
SECTION 3.11. Title to Properties; Possession Under Leases. (a) Such
Borrower and each of its Subsidiaries have good and marketable title to, or
valid leasehold interests in, all its material properties and assets, except for
minor defects in title that do not materially interfere with its ability to
conduct its business as currently conducted or to utilize such properties and
assets for their intended purposes.
(b) Such Borrower and each of its Subsidiaries have complied with all
material obligations under all material leases to which it is a party and all
such leases are in full force and effect. Such Borrower and its Subsidiaries
enjoy peaceful and undisturbed possession under all such material leases.
SECTION 3.12. Investment Company Act; Public Utility Holding Company
Act. None of Alcoa or any Borrowing Subsidiary is an "investment company" as
defined in, or subject to regulation under, the Investment Company Act of 1940.
Alcoa is exempted as, and no Borrowing Subsidiary is, a "holding company" as
defined in, or
40
subject to regulation under, the Public Utility Holding Company Act of 1935.
SECTION 3.13. Tax Returns. Such Borrower and its Subsidiaries have
filed or caused to be filed all Federal, state, local and foreign tax returns
required to have been filed by it and have paid or caused to be paid all taxes
shown to be due and payable on such returns or on any assessments received by
it, except taxes that are being contested in good faith by appropriate
proceedings and for which adequate reserves are maintained in accordance with
GAAP.
SECTION 3.14. Compliance with Laws and Agreements. (a) Neither such
Borrower nor any of its Subsidiaries is in violation of any law, rule or
regulation, or in default with respect to any judgment, writ, injunction or
decree of any Governmental Authority, where such violation or default would
reasonably be expected to result in a Material Adverse Effect.
(b) Neither such Borrower nor any of its Subsidiaries is in default in
any material manner under any provision of any indenture or other agreement or
instrument evidencing Indebtedness, or any other material agreement or
instrument to which it is a party or by which it or any of its properties or
assets are or may be bound, where such default would be reasonably likely to
result in a Material Adverse Effect.
SECTION 3.15. No Material Misstatements. Except for information not
prepared by Alcoa and expressly disclaimed thereby, no report, financial
statement, exhibit or schedule furnished by or on behalf of such Borrower to the
Administrative Agent or any Lender in connection with the negotiation of this
Agreement or included herein or delivered pursuant thereto contained or contains
any material misstatement of fact or omitted or omits to state any material fact
necessary to make the statements therein, in the light of the circumstances
under which they were or are made, not misleading.
SECTION 3.16. Federal Reserve Regulations. The proceeds of any Loan
will be used to provide working capital or for other general corporate purposes,
including but not limited to the support of Alcoa's Commercial Paper program. No
part of the proceeds of any Loan to such Borrower will be used, whether directly
or indirectly, and
41
whether immediately, incidentally or ultimately, for any purpose that entails a
violation of any of the regulations of the Board, including Regulations U and X.
SECTION 3.17. No Trusts. Such Borrower is not entering into this
Agreement in its capacity as trustee of any trust.
ARTICLE IV. CONDITIONS OF EFFECTIVENESS, LENDING AND DESIGNATION OF BORROWING
SUBSIDIARIES
The obligations of the Lenders to make Loans to any Borrower hereunder
are subject to the satisfaction of the conditions set forth in Sections 4.01 and
4.02 below (and, in the case of Loans to any Borrowing Subsidiary, the
satisfaction, as to such Borrowing Subsidiary, of the conditions set forth in
Section 4.03 below):
SECTION 4.01. Effective Date. On the Effective Date:
(a) The Administrative Agent shall have received a written opinion of
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, Counsel of Alcoa, dated the Effective Date and addressed to
the Lenders, to the effect set forth in Exhibit C hereto.
(b) All legal matters incident to this Agreement and the borrowings
hereunder shall be satisfactory to the Lenders and to Cravath, Swaine & ▇▇▇▇▇,
counsel for the Administrative Agent.
(c) The Administrative Agent shall have received (i) a copy, including
all amendments thereto, of the charter of Alcoa, certified as of a recent date
by the Secretary of State or other appropriate official of its jurisdiction of
incorporation and a certificate as to the good standing of Alcoa as of a recent
date, from such Secretary of State or other official; (ii) a certificate of the
Secretary or Assistant Secretary of Alcoa dated the Effective Date and
certifying (A) that attached thereto is a true and complete copy of the by-laws
of such corporation as in effect on the Effective Date showing all amendments
thereto since the date of the resolutions described in clause (B) below, (B)
that attached thereto is a true and complete copy of resolutions duly adopted by
the Board of Directors of such corporation authorizing the execution,
42
delivery and performance of this Agreement and the borrowings by such
corporation hereunder, and that such resolutions have not been modified,
rescinded or amended and are in full force and effect, (C) that the charter of
Alcoa has not been amended since the date of the last amendment thereto shown on
the certificate of good standing furnished pursuant to clause (i) above and (D)
as to the incumbency and specimen signature of each officer executing this
Agreement or any other document delivered in connection herewith on behalf of
such corporation; (iii) a certificate of another officer of each such
corporation as to the incumbency and specimen signature of the Secretary or
Assistant Secretary executing the certificate pursuant to (ii) above; and (iv)
such other documents as the Lenders or Cravath, Swaine & ▇▇▇▇▇, counsel for the
Administrative Agent may reasonably request.
(d) No loans shall be outstanding under the Existing 364-Day Credit
Agreement or the Existing Five-Year Credit Agreement.
(e) The Administrative Agent shall have received certificates dated the
Effective Date and signed by a Financial Officer of Alcoa confirming the
satisfaction of the conditions precedent set forth in paragraph (d) of this
Section 4.01 and paragraphs (b) and (c) of Section 4.02.
(f) The Administrative Agent shall have received all Fees and other
amounts due and payable on or prior to the Effective Date, including all Fees
accrued to the date hereof under the Existing 364-Day Credit Agreement and the
Existing Five-Year Credit Agreement.
(g) The Administrative Agent shall have received certificates of a
Responsible Officer of Alcoa, each dated the Effective Date and stating that (i)
except as disclosed in the Exchange Act Report or otherwise disclosed in such
certificate, Alcoa and each of its Subsidiaries have complied in all respects
with all Federal, state, local and foreign statutes, ordinances, orders,
judgments, rulings and regulations relating to environmental pollution or to
environmental regulation or control except to the extent any such failure so to
comply would not, alone or together with any other such failure, be reasonably
likely to result in a Material Adverse Effect; (ii) neither Alcoa nor any of its
Subsidiaries has received notice of any failure so to comply which alone or
together with any other such failure
43
would be reasonably likely to result in a Material Adverse Effect; and (iii) the
plants of Alcoa and its Subsidiaries do not manage any hazardous wastes, toxic
pollutants or substances similarly denominated in violation of any applicable
law or regulations promulgated pursuant thereto including, for operations within
the United States, the Resource Conservation and Recovery Act, the Comprehensive
Environmental Response Compensation and Liability Act, the Hazardous Materials
Transportation Act, the Toxic Substance Control Act, the Clean Air Act, the
Clean Water Act or any other applicable law, where such violation would be
reasonably likely to result, individually or together with any such other
violations, in a Material Adverse Effect.
SECTION 4.02. All Borrowings. On the date of each Borrowing:
(a) Such Borrower shall have provided the notice as required by Section
2.03.
(b) The representations and warranties set forth in Article III hereof
(except, in the case of a refinancing of any Loan that does not increase the
aggregate principal amount of Loans of any Lender outstanding, the
representations set forth in Sections 3.08 and 3.10) shall be true and correct
in all material respects on and as of the date of such Borrowing with the same
effect as though made on and as of such date, except to the extent such
representations and warranties expressly relate to an earlier date.
(c) Each Borrower shall be in compliance in all material respects with
all the terms and provisions set forth herein on its part to be observed or
performed, and at the time of and immediately after such Borrowing no Event of
Default or Default shall have occurred and be continuing.
(d) In the case of any Borrowing which would cause the aggregate
principal amount of outstanding loans under this Agreement, the 364-Day Credit
Agreement, the 1998 Five-Year Credit Agreement and any other New Credit
Arrangement (as defined in the resolutions duly adopted by the Board of
Directors of Alcoa on March 10, 2000) to exceed $6,000,000,000 minus the
aggregate outstanding principal amount of Commercial Paper issued by Alcoa or
issued by Subsidiaries and guaranteed by Alcoa or other
44
loans or notes issued under any New Credit Arrangement (other than Commercial
Paper or other loans or notes being repaid with the proceeds of such Borrowing),
such Borrowing shall have been duly authorized by Alcoa and the Administrative
Agent shall have received a true and complete copy of resolutions duly adopted
by the Board of Directors of Alcoa authorizing such Borrowing.
Each Borrowing by any Borrower shall be deemed to constitute a representation
and warranty by such Borrower and, in the case of a Borrowing Subsidiary, Alcoa
on the date of such Borrowing as to the matters specified in paragraphs (b), (c)
and (d) of this Section 4.02.
SECTION 4.03. Designation of Borrowing Subsidiaries. On each
Designation Date:
(a) The Administrative Agent shall have received (i) a copy of the
charter, including all amendments thereto, of each applicable Borrowing
Subsidiary, certified as of a recent date by the Secretary of State or the
appropriate foreign governmental official of the state or country of its
organization, and a certificate as to the good standing of such Borrowing
Subsidiary as of a recent date from such Secretary of State or appropriate
foreign governmental official, as applicable; (ii) a certificate of the
Secretary or Assistant Secretary of such Borrowing Subsidiary dated the
Designation Date and certifying (A) that attached thereto is a true and
completed copy of the by-laws of such Borrowing Subsidiary as in effect on the
Designation Date showing all amendments thereto since the date of the
resolutions described in clause (B) below, (B) that attached thereto is a true
and complete copy of resolutions duly adopted by the Board of Directors of such
Borrowing Subsidiary authorizing the execution, delivery and performance of this
Agreement and the borrowings hereunder, and that such resolutions have not been
modified, rescinded or amended and are in full force and effect, (C) that the
charter of such Borrowing Subsidiary has not been amended since the date of the
last amendment thereto shown on the certificate of good standing furnished
pursuant to clause (i) above, and (D) as to the incumbency and specimen
signature of each officer executing or any other document delivered in
connection herewith on behalf of such Borrowing Subsidiary; and (iii) a
certificate of another officer as to the incumbency and specimen signature
45
of the Secretary or Assistant Secretary executing the certificate pursuant to
(ii) above.
(b) The Administrative Agent shall have received a Designation of
Borrowing Subsidiary of each applicable Borrowing Subsidiary as provided in
Section 10.04(i).
ARTICLE V. AFFIRMATIVE COVENANTS
So long as this Agreement shall remain in effect or the principal of or
interest on any Loan, any Fees or any other expenses or amounts payable in
connection herewith shall be unpaid, unless the Required Lenders shall otherwise
consent in writing:
SECTION 5.01. Financial Statements, Reports, etc. Alcoa shall furnish
to the Administrative Agent the following, with sufficient copies for the
Administrative Agent to provide a copy to each Lender:
(a) within 120 days after the end of each fiscal year, (i) its
consolidated balance sheet and related statements of income and cash flow
audited by independent public accountants of recognized national standing,
accompanied by an opinion of such accountants (which shall not be qualified as
to scope of audit or in any manner calling into question the status of its
business as a going concern) to the effect that such consolidated financial
statements fairly present its financial condition and results of operations and
that of its consolidated Subsidiaries, taken as a whole, in accordance with GAAP
and (ii) the balance sheet and related statements of income of each of its
Subsidiaries which has been designated pursuant to Section 10.04(i) as, and as
long as such Subsidiary remains, a Borrowing Subsidiary, certified by a
Financial Officer of such Subsidiary;
(b) within 60 days after the end of each of the first three fiscal
quarters of each fiscal year, its Form 10-Q as prescribed by the Securities and
Exchange Commission (or any successor agency);
(c) concurrently with any delivery of financial statements under (a)
above and promptly at the request of the Administrative Agent (but not more
often than once with respect to any fiscal quarter), a certificate of a
46
Financial Officer (i) certifying that no Event of Default or Default has
occurred and is continuing or, if such an Event of Default or Default has
occurred and is continuing, specifying the nature and extent thereof and any
corrective action taken or proposed to be taken with respect thereto and (ii)
setting forth computations in reasonable detail satisfactory to the
Administrative Agent demonstrating compliance with the covenant contained in
Section 6.03;
(d) promptly after the same become publicly available, copies of all
periodic and other reports, proxy statements and other materials filed by it
(other than registration statements and prospectuses related to offerings to
directors, officers or employees) with the Securities and Exchange Commission or
any Governmental Authority succeeding to any of or all the functions of such
Commission, or with any national securities exchange, or distributed to its
shareholders, as the case may be; and
(e) promptly, from time to time, such other information regarding its
operations, business affairs and financial condition, or compliance with the
terms of this Agreement, as the Administrative Agent or any Lender may
reasonably request.
Alcoa shall be deemed to have fulfilled its obligations under paragraph
(a), (b) or (d) above when the Administrative Agent receives a paper or an
electronic version of the documents required to be delivered pursuant to
paragraph (a), (b) or (d) above, in a format acceptable to the Administrative
Agent; provided that (i) such paper or electronic version must be accompanied by
a certificate delivered pursuant to paragraph (c) above and (ii) the Borrower
shall deliver paper copies of the information referred to in paragraph (d) above
to any Lender which requests such delivery.
SECTION 5.02. Pari Passu Ranking. Each Borrower shall ensure that any
amounts payable by it hereunder will at all times rank at least pari passu with
all other unsecured, unsubordinated Indebtedness of such Borrower except to the
extent any such Indebtedness may be preferred by law.
SECTION 5.03. Maintenance of Properties. Each Borrower shall, and
shall cause its Subsidiaries to, maintain and keep its properties in such
repair, working
47
order and condition, and make or cause to be made all such needful and proper
repairs, renewals and replacements thereto, as in the judgment of such Borrower
are necessary and in the interests of such Borrower; provided, however, that
nothing in this Section 5.03 shall prevent such Borrower (or any Subsidiary
thereof) from selling, abandoning or otherwise disposing of any of its
respective properties or discontinuing a part of its respective businesses from
time to time if, in the judgment of such Borrower, such sale, abandonment,
disposition or discontinuance is advisable.
SECTION 5.04. Obligations and Taxes. Each Borrower shall pay its
Indebtedness and other obligations that, if not paid, would result in a Material
Adverse Effect before the same shall become delinquent or in default, and pay
and discharge all taxes upon or against it, or against its properties, in each
case prior to the date on which penalties attach thereto, unless and to the
extent that any such obligation or tax is being contested in good faith and
adequate reserves with respect thereto are maintained in accordance with GAAP.
SECTION 5.05. Insurance. Each Borrower shall, and shall cause its
consolidated Subsidiaries to, insure and keep insured, in each case with
reputable insurance companies, so much of its respective properties to such an
extent and against such risks, or in lieu thereof, in the case of any Borrower,
maintain or cause to be maintained a system or systems of self-insurance, as is
customary in the case of corporations engaged in the same or similar business or
having similar properties similarly situated.
SECTION 5.06. Existence; Businesses and Properties. (a) Each Borrower
shall do or cause to be done all things necessary to preserve, renew and keep in
full force and effect its legal existence in its jurisdiction of incorporation,
except as otherwise expressly permitted under Section 6.02.
(b) Each Borrower shall do or cause to be done all things necessary to
obtain, preserve, renew, extend and keep in full force and effect the rights,
licenses, permits, franchises, authorizations, patents, copyrights, trademarks
and trade names material to the conduct of its business as its Board of
Directors shall determine in its judgment.
48
SECTION 5.07. Compliance with Laws. (a) Each Borrower shall comply in
all material respects with all applicable laws, rules, regulations and orders of
any Governmental Authority to which it is subject, whether now in effect or
hereafter enacted, such that no failure so to comply will result in the levy of
any penalty or fine which shall have a Material Adverse Effect.
(b) Each Borrower shall comply in all material respects with the
applicable provisions of ERISA and all other related applicable laws and furnish
to the Administrative Agent and each Lender (i) as soon as possible, and in any
event within 30 days after any Responsible Officer of such Borrower or any ERISA
Affiliate either knows or has reason to know that any ERISA Event has occurred
that alone or together with any other ERISA Event would reasonably be expected
to result in liability of such Borrower to the PBGC in an aggregate amount
exceeding $25,000,000, a statement of a Financial Officer setting forth details
as to such ERISA Event and the action proposed to be taken with respect thereto,
together with a copy of the notice, if any, of such ERISA Event given to the
PBGC or other Governmental Authority, (ii) promptly after receipt thereof, a
copy of any notice such Borrower or any ERISA Affiliate may receive from the
PBGC or other Governmental Authority relating to the intention of the PBGC or
other Governmental Authority to terminate any Plan or Plans (other than a Plan
maintained by an ERISA Affiliate which is considered an ERISA Affiliate only
pursuant to subsection (m) or (o) of Section 414 of the Code), or any Foreign
Plan or Foreign Plans, or to appoint a trustee to administer any Plan or Plans,
or any Foreign Plan or Foreign Plans, (iii) within 10 days after the due date
for filing with the PBGC pursuant to Section 412 (n) of the Code of a notice of
failure to make a required installment or other payment with respect to a Plan,
a statement of a Financial Officer setting forth details as to such failure and
the action proposed to be taken with respect thereto, together with a copy of
such notice given to the PBGC and (iv) promptly and in any event within 30 days
after receipt thereof by such Borrower or any ERISA Affiliate from the sponsor
of a Multiemployer Plan, a copy of each notice received by such Borrower or
ERISA Affiliate concerning (A) the imposition of Withdrawal Liability in excess
of $25,000,000 or (B) a determination that a Multiemployer Plan is, or is
expected to be, terminated or
49
in reorganization, in each case within the meaning of Title IV of ERISA, if such
termination or reorganization would reasonably be expected to result, alone or
with any other such termination or reorganization, in increases in excess of
$25,000,000 in the contributions required to be made to the relevant Plan or
Plans.
SECTION 5.08. Litigation and Other Notices. Each Borrower shall
furnish to the Administrative Agent prompt written notice upon its becoming
aware of any of the following:
(a) any Event of Default or Default, specifying the nature and extent
thereof and the corrective action (if any) proposed to be taken with respect
thereto;
(b) the filing or commencement of, or any threat or notice of intention
of any person to file or commence, any action, suit or proceeding, whether at
law or in equity or by or before any Governmental Authority, against it or any
of its Subsidiaries which would reasonably be expected to result in a Material
Adverse Effect; and
(c) any other development that has resulted in, or would reasonably be
expected to result in, a Material Adverse Effect.
SECTION 5.09. Borrowing Subsidiaries. Alcoa shall cause each Borrowing
Subsidiary at all times to be a wholly-owned Subsidiary.
ARTICLE VI. NEGATIVE COVENANTS
Each Borrower covenants and agrees with each Lender that, so long as
this Agreement shall remain in effect or the principal of or interest on any
Loan, any Fees or any other expenses or amounts payable in connection herewith
shall be unpaid, unless the Required Lenders shall otherwise consent in writing,
such Borrower will not:
SECTION 6.01. Liens. (a) Create or incur, or permit any Restricted
Subsidiary to create or incur, any Lien on its property or assets (including
stock or other securities of any person, including any of its Subsidiaries) now
or hereafter acquired by it or on any income or revenues or rights in respect
thereof, securing Indebtedness for borrowed money, without ratably securing
50
the Loans; provided, however, that the foregoing shall not apply to the
following:
(i) Liens on property or assets of any corporation existing
at the time such corporation becomes a Restricted Subsidiary;
(ii) Liens existing on any property or asset at or prior to
the acquisition thereof by such Borrower or a Restricted Subsidiary,
Liens on any property or asset securing the payment of all or any part
of the purchase price of such property or asset, Liens on any property
or asset securing any Indebtedness incurred prior to, at the time of or
within 180 days after the acquisition of such property or asset for the
purpose of financing all or any part of the purchase price thereof or
Liens on any property or asset securing any Indebtedness incurred for
the purpose of financing all or any part of the cost to such Borrower
or Restricted Subsidiary of improvements thereto;
(iii) Liens securing Indebtedness of a Restricted Subsidiary
owing to Alcoa or to another Restricted Subsidiary;
(iv) Liens existing on April 28, 2000, and set forth on
Schedule 6.01(a);
(v) Liens on property of a person existing (or, in the case
of Alumax Inc., that shall have existed) at the time such person is
merged into or consolidated with Alcoa or a Restricted Subsidiary or at
the time such person becomes a subsidiary of Alcoa through the direct
or indirect acquisition of capital stock of such person by Alcoa or at
the time of a sale, lease or other disposition of the properties of a
person as an entirety or substantially as an entirety to Alcoa or a
Restricted Subsidiary;
(vi) Liens on any property owned by Alcoa or any Restricted
Subsidiary, 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 in
favor of any other country, or any political subdivision thereof, to
secure partial, progress, advance or other payments pursuant to any
contract or
51
statute or to secure any Indebtedness incurred for the purpose of
financing all or any part of the purchase price or the cost of
construction of the property subject to such Liens; and
(vii) any extension, renewal or replacement (or successive
extensions, renewals or replacements) in whole or in part of the Liens
referred to in clauses (i) through (vi) of this Section 6.01(a);
provided, however, that each such extension, renewal or replacement is
limited to all or a part of the property which secured the Lien so
extended, renewed or replaced (and any improvements thereon).
(b) Notwithstanding paragraph (a) of this Section 6.01 and in addition
to the Liens permitted thereunder, each Borrower and any Restricted Subsidiary
may create or incur Liens which would otherwise be subject to the foregoing
restrictions to secure Indebtedness for borrowed money in an aggregate amount
which does not at the time exceed 10% of the Consolidated Net Tangible Assets of
Alcoa and its consolidated Subsidiaries at such time.
SECTION 6.02. Consolidation, Merger, Sale of Assets, etc. Consolidate
or merge with or into any other person or sell, lease or transfer all or
substantially all of its property and assets, or agree to do any of the
foregoing, unless (a) no Default or Event of Default has occurred and is
continuing or would result immediately after giving effect thereto, (b) if such
Borrower is not the surviving corporation or if such Borrower sells, leases or
transfers all or substantially all of its property and assets, the surviving
corporation or person purchasing or being leased the assets agrees to be bound
by the terms and provisions applicable to such Borrower hereunder, and (c)(i) in
the case of Alcoa, immediately after such transaction, individuals who were
directors of Alcoa during the twelve month period prior to such merger, sale or
lease (together with any replacement or additional directors whose election was
recommended by or who were elected by a majority of directors then in office)
constitute the Board of Directors of the surviving corporation or the person
purchasing or being leased the assets and (ii) in the case of a Borrowing
Subsidiary, (A) the surviving corporation or the person purchasing or being
leased the assets is a wholly-owned Subsidiary of Alcoa and (B) if the surviving
corporation or such person is not Alcoa, Alcoa agrees to
52
guarantee pursuant to Article VIII the obligations of such person under this
Agreement.
SECTION 6.03. Financial Undertaking. In the case of Alcoa, permit the
aggregate principal amount of (a) the Indebtedness of Alcoa and its consolidated
Subsidiaries, after eliminating intercompany items, plus (b) all other
liabilities of Alcoa and its consolidated Subsidiaries, after eliminating
intercompany items, in respect of any guarantee or endorsement (except the
endorsement of negotiable instruments for deposit or collection or similar
transactions in the normal course of business) of the Indebtedness of any person
to exceed 150% of Consolidated Net Worth of Alcoa and its consolidated
Subsidiaries.
SECTION 6.04. Change in Business. In the case of Alcoa, make or permit
any substantial change in the general nature of the business carried on by Alcoa
and its consolidated Subsidiaries as at the date hereof, including any such
alteration arising from an acquisition, which would reasonably be expected to
result in a Material Adverse Effect.
ARTICLE VII. EVENTS OF DEFAULT
In case of the happening of any of the following events ("Events of
Default"):
(a) any Borrower shall default in the payment when due of any principal
of any Loan and, if such default shall result from the failure of any third
party payments system used by such Borrower, such default shall continue for a
period of two Business Days;
(b) any Borrower shall fail to pay when due any interest, Fee or other
amount payable under this Agreement or Alcoa shall fail to pay any amount due
under Article VIII upon demand therefor, and, in each case, such failure shall
continue for a period of five Business Days;
(c) any representation or warranty made in Section 3.09 shall prove to
have been false or misleading in any material respect as of the time when made
(including by omission of material information necessary to make such
representation or warranty not misleading); or any other representation or
warranty made by a Borrower under this
53
Agreement or any statement made by a Borrower in any financial statement,
certificate, report, exhibit or document furnished by or on behalf of such
Borrower in connection with this Agreement shall prove to have been false or
misleading in any material respect as of the time when made and, if such
representation or warranty is able to be corrected, such representation or
warranty is not corrected within 20 days after such Borrower's knowledge that it
was false or misleading;
(d) any Borrower shall default in the performance or observance of any
covenant contained in Section 5.02, Section 5.06(a), Section 5.08(a) or Article
VI;
(e) any Borrower shall default in the performance or observance of any
covenant or agreement under this Agreement (other than those specified in
paragraphs (a) , (b) and (d) above) and such default shall continue for a period
of 10 Business Days, in the case of a default with respect to Section 5.08(b) or
(c), or in any other case a period of 30 days after notice from the
Administrative Agent;
(f) any Borrower shall (i) default in the payment of any principal or
interest beyond any period of grace provided with respect thereto, due in
respect of any Indebtedness in a principal amount in excess of $20,000,000; or
(ii) fail to observe or perform any other term, covenant, condition or agreement
contained in any agreement or instrument evidencing or governing any such
Indebtedness if the effect of any such failure referred to in this paragraph (f)
is to cause such Indebtedness to become due prior to its stated maturity;
(g) a proceeding shall have been instituted or a petition filed in
respect of a Borrower
(i) seeking to have an order for relief entered in respect
of such Borrower, or seeking a declaration or entailing a finding that
such Borrower is insolvent or a similar declaration or finding, or
seeking dissolution, winding-up, revocation or forfeiture of charter or
Memorandum and Articles of Association, liquidation, reorganization,
arrangement, adjustment, composition or other relief with respect to
such Borrower, its assets or its debts under any law relating to
bankruptcy, insolvency, relief of debtors
54
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, custodian,
liquidator, assignee, sequestrator, administrator or other similar
official for such Borrower or for all or any substantial part of its
property,
and such proceeding or petition shall remain undismissed for a period of 90
consecutive days or an order or decree approving any of the foregoing shall be
entered;
(h) any Borrower shall become insolvent, shall become generally unable
to pay its debts as they become due, shall voluntarily suspend transaction of
its business generally or as a whole, shall make a general assignment for the
benefit of creditors, shall institute a proceeding described in clause (g)(i)
above or shall consent to any order or decree described therein, shall institute
a proceeding described in clause (g)(ii) above or shall consent to any such
appointment or to the taking of possession by any such official of all or any
substantial part of its property whether or not any such proceeding is
instituted, shall dissolve, wind-up or liquidate itself or any substantial part
of its property or shall take any action in furtherance of any of the foregoing;
(i) any of the following shall have occurred: (i) any person or group
of persons shall have acquired beneficial ownership of a majority in interest of
the outstanding Voting Stock of Alcoa (within the meaning of Section 13 (d) or
14 (d) of the Securities Exchange Act of 1934 and the applicable rules and
regulations thereunder), (ii) during any period of 25 consecutive months,
commencing before or after the date of this Agreement, individuals who at the
beginning of such 25 month period were directors of Alcoa (together with any
replacement or additional directors whose election was recommended by or who
were elected by a majority of directors then in office) cease to constitute a
majority of the Board of Directors of Alcoa or (iii) any person or group of
related persons shall acquire all or substantially all of the assets of Alcoa;
provided, however, that a change in control of Alcoa shall not be deemed to have
occurred pursuant to clause (iii) of this paragraph (i) if Alcoa shall have
merged or consolidated
55
with or transferred all or substantially all of its assets to another person in
compliance with the provisions of Section 6.02 and the ratio represented by the
total assets of the surviving person, successor or transferee divided by such
person's stockholders' equity, in each case as determined and as would be shown
in a consolidated balance sheet of such person prepared in accordance with GAAP
(the "Leverage Ratio" of such person) is no greater than the then Leverage Ratio
of Alcoa immediately prior to such event;
(j) an ERISA Event or ERISA Events shall have occurred with respect to
any Plan or Plans, or any Foreign Plan or Foreign Plans, that reasonably could
be expected to result in liability of any Borrower to the PBGC or other
Governmental Authority or to a Plan or Foreign Plan in an aggregate amount
exceeding $25,000,000 and, within 30 days after the reporting of any such ERISA
Event to the Administrative Agent or after the receipt by the Administrative
Agent of the statement required pursuant to Section 5.07(b), the Administrative
Agent shall have notified the Borrower in writing that (i) the Required Lenders
have made a determination that, on the basis of such ERISA Event or ERISA Events
or the failure to make a required payment, there are reasonable grounds (A) for
the termination of such Plan or Plans, or such Foreign Plan or Foreign Plans, by
the PBGC or other Governmental Authority, (B) for the appointment either by the
appropriate United States District Court of a trustee to administer such Plan or
Plans or by an applicable court of law outside the United States of a trustee to
administer such Foreign Plan or Foreign Plans or (C) for the imposition of a
lien in favor of a Plan or Foreign Plan and (ii) as a result thereof an Event of
Default exists hereunder; or a trustee shall be appointed by a United States
District Court to administer any such Plan or Plans or by an applicable court of
law outside the United States of a trustee to administer such Foreign Plan or
Foreign Plans; or the PBGC or other Governmental Authority shall institute
proceedings to terminate any Plan or Plans or any Foreign Plan or Foreign Plans;
(k) (i) any Borrower or any ERISA Affiliate shall have been notified by
the sponsor of a Multiemployer Plan that it has incurred Withdrawal Liability to
such Multiemployer Plan, (ii) such Borrower or such ERISA Affiliate does not
have reasonable grounds for contesting
56
such Withdrawal Liability or is not in fact contesting such Withdrawal Liability
in a timely and appropriate manner and does not have adequate reserves set aside
against such Withdrawal Liability and (iii) the amount of the Withdrawal
Liability specified in such notice, when aggregated with all other amounts
required to be paid to Multiemployer Plans in connection with Withdrawal
Liabilities (determined as of the date or dates of such notification), exceeds
$25,000,000 or requires payments exceeding $25,000,000 in any calendar year;
(l) any Borrower or any ERISA Affiliate shall have been notified by the
sponsor of a Multiemployer Plan that such Multiemployer Plan is in
reorganization or is being terminated, within the meaning of Title IV of ERISA,
if solely as a result of such reorganization or termination the aggregate annual
contributions of such Borrower and its ERISA Affiliates to all Multiemployer
Plans that are then in reorganization or have been or are being terminated have
been or will be increased over the amounts required to be contributed to such
Multiemployer Plans for their most recently completed plan years by an amount
exceeding $25,000,000;
(m) one or more judgments for the payment of money in an aggregate
amount in excess of $50,000,000 shall be rendered against any Borrower or any
Subsidiary of any Borrower or any combination thereof and the same shall remain
undischarged for a period of 45 consecutive days during which execution shall
not be effectively stayed (unless an appeal or writ of certiorari is being
diligently prosecuted), or any action shall be legally taken by a judgment
creditor or creditors holding judgments which in the aggregate exceed
$50,000,000 to levy upon assets or properties of any Borrower or any Subsidiary
of a Borrower to enforce any such judgment; or
(n) Any "Event of Default" as defined in the 364-Day Credit Agreement
or the 1998 Five-Year Credit Agreement (other than an "Event of Default" as
defined in each of clauses (o), (p) or (q) of Article VII of the 1998 Five-Year
Credit Agreement) shall occur and be continuing;
then, and in every such event (other than an event described in paragraph (g) or
(h) above), and at any time thereafter during the continuance of such event, the
Administrative Agent, at the request of the Required
57
Lenders, shall, by written notice to Alcoa, take either or both of the following
actions, at the same or different times: (i) terminate the Commitments, and (ii)
declare the Loans then outstanding to be forthwith due and payable in whole or
in part, whereupon the principal of the Loans so declared to be due and payable,
together with accrued interest thereon and any unpaid accrued Fees and all other
liabilities accrued hereunder, shall become forthwith due and payable, without
presentment, demand, protest or any other notice of any kind, all of which are
hereby expressly waived by each Borrower, anything contained herein to the
contrary notwithstanding; and in any event described in paragraph (g) or (h)
above, the Commitments of the Lenders shall automatically terminate and the
principal of the Loans then outstanding, together with accrued interest thereon
and any unpaid accrued Fees and all other liabilities accrued hereunder, shall
automatically become due and payable, without presentment, demand, protest or
any other notice of any kind, all of which are hereby expressly waived by each
Borrower, anything contained herein to the contrary notwithstanding.
ARTICLE VIII. GUARANTEE
Alcoa unconditionally and irrevocably guarantees, as a principal
obligor and not merely as a surety, the due and punctual payment and performance
of all Borrowing Subsidiary Obligations. Alcoa further agrees that the Borrowing
Subsidiary Obligations may be extended or renewed, in whole or in part, without
notice or further assent from it, and that it will remain bound upon the
provisions of this Article VIII notwithstanding any extension or renewal of any
Borrowing Subsidiary Obligation.
Alcoa waives presentation to, demand of payment from and protest to any
Borrowing Subsidiary of any of the Borrowing Subsidiary Obligations, and also
waives notice of acceptance of the guarantee set forth in this Article VIII and
notice of protest for nonpayment. The obligations of Alcoa hereunder shall not
be affected by (a) the failure of the Administrative Agent or any Lender to
assert any claim or demand or to enforce any right or remedy against any
Borrowing Subsidiary under the provisions of this Agreement or any guarantee;
(b) any extension or renewal of any provision of this Agreement or any
guarantee; or (c) any
58
rescission, waiver, amendment or modification of any of the terms or provisions
of this Agreement or any guarantee or any other agreement.
Alcoa further agrees that the guarantee set forth in this Article VIII
constitutes a guarantee of payment when due and not of collection and waives any
right to require that any resort be had by the Administrative Agent or any
Lender to the balance of any deposit account or credit on the books of the
Administrative Agent or the relevant Lender, as applicable, in favor of any
Borrowing Subsidiary or any other person.
The obligations of Alcoa hereunder shall not be subject to any
reduction, limitation, impairment or termination for any reason, including any
claim or waiver, release, surrender, alteration or compromise, and shall not be
subject to any defense of setoff, counterclaim, recoupment or termination
whatsoever by reason of the invalidity, illegality or unenforceability of the
Borrowing Subsidiary Obligations or otherwise. Without limiting the generality
of the foregoing, the obligations of Alcoa hereunder shall not be discharged or
impaired or otherwise affected by the failure of the Administrative Agent or any
Lender to assert any claim or demand or to enforce any remedy under this
Agreement, by any waiver or modification of any thereof, by any default, failure
or delay, wilful or otherwise, in the performance of the Borrowing Subsidiary
Obligations or by any other act or omission which may or might in any manner or
to any extent vary the risk of Alcoa or would otherwise operate as a discharge
of Alcoa as a matter of law or equity.
Alcoa further agrees that this guarantee shall continue to be effective
or be reinstated, as the case may be, if at any time payment by any Borrowing
Subsidiary to the Administrative Agent or any Lender, or any part thereof, of
principal of or interest on such Borrowing Subsidiary Obligation is rescinded or
must otherwise be restored by the Administrative Agent or any Lender or any
holder of any Borrowing Subsidiary Obligation upon the bankruptcy or
reorganization of such Borrowing Subsidiary or otherwise.
In furtherance of the foregoing and not in limitation of any other
right which the Administrative Agent or any Lender may have at law or in equity
against
59
Alcoa by virtue hereof, upon the failure of any Borrowing Subsidiary to pay any
Borrowing Subsidiary Obligation when and as the same shall become due, whether
at maturity, by acceleration, after notice of prepayment or otherwise, Alcoa
hereby promises to and will, upon receipt of written demand by the
Administrative Agent, promptly pay, or cause to be paid, to such Agent in cash
the amount of such unpaid Borrowing Subsidiary Obligation, and thereupon such
Agent shall assign, in any reasonable manner, the amount of the Borrowing
Subsidiary Obligation paid by Alcoa pursuant to this guarantee to Alcoa, such
assignment to be pro tanto to the extent to which the Borrowing Subsidiary
Obligation in question was discharged by Alcoa, or make such other disposition
thereof as Alcoa shall direct (all without recourse to the Administrative Agent
or any Lender and without any representation or warranty by the Administrative
Agent or Lender).
Upon payment by Alcoa of any sums to the Administrative Agent as
provided above, all rights of Alcoa against the Borrowing Subsidiaries arising
as a result thereof by way of right of subrogation or otherwise shall in all
respects be subordinate and junior in right of payment to the prior indefeasible
payment in full of all the Borrowing Subsidiary Obligations.
ARTICLE IX. THE ADMINISTRATIVE AGENT
In order to expedite the transactions contemplated by this Agreement,
The Chase Manhattan Bank is hereby appointed to act as the Administrative Agent
on behalf of the Lenders. Each of the Lenders and each assignee of any such
Lender hereby irrevocably authorizes the Administrative Agent to take such
actions on behalf of such Lender or assignee and to exercise such powers as are
specifically delegated to such Agent by the terms and provisions hereof,
together with such actions and powers as are reasonably incidental thereto. The
Administrative Agent is hereby expressly authorized by the Lenders, without
hereby limiting any implied authority, (a) to receive on behalf of the Lenders
all payments of principal of and interest on the Loans and all other amounts due
to the Lenders hereunder, and promptly to distribute to each Lender its proper
share of each payment so received; (b) to give notice on behalf of each of the
Lenders to the relevant Borrower of any Event of Default specified in this
60
Agreement of which the Administrative Agent has actual knowledge acquired in
connection with its agency hereunder; and (c) to distribute to each Lender
copies of all notices, financial statements and other materials delivered by any
Borrower pursuant to this Agreement as received by such Agent.
None of the Administrative Agent or any of its directors, officers,
employees or agents shall be liable as such for any action taken or omitted by
any of them except for its or his own gross negligence or wilful misconduct, or
be responsible for any statement, warranty or representation herein or the
contents of any document delivered in connection herewith, or be required to
ascertain or to make any inquiry concerning the performance or observance by any
Borrower of any of the terms, conditions, covenants or agreements contained
herein. The Administrative Agent shall not be responsible to the Lenders or any
assignee thereof for the due execution, genuineness, validity, enforceability or
effectiveness of this Agreement or other instruments or agreements. The
Administrative Agent shall in all cases be fully protected in acting, or
refraining from acting, in accordance with written instructions signed by the
Required Lenders and, except as otherwise specifically provided herein, such
instructions and any action or inaction pursuant hereto shall be binding on all
the Lenders and each assignee of any such Lender. The Administrative Agent
shall, in the absence of knowledge to the contrary, be entitled to rely on any
instrument or document believed by it in good faith to be genuine and correct
and to have been signed or sent by the proper person or persons. None of the
Administrative Agent or any of its directors, officers, employees or agents
shall have any responsibility to any Borrower on account of the failure of or
delay in performance or breach by any other Lender or any Borrower of any of
their respective obligations hereunder or in connection herewith. The
Administrative Agent may execute any and all duties hereunder by or through
agents or employees and shall be entitled to rely upon the advice of legal
counsel selected by it with respect to all matters arising hereunder and shall
not be liable for any action taken or suffered in good faith by it in accordance
with the advice of such counsel.
The Lenders hereby acknowledge that the Administrative Agent shall not
be under any duty to take
61
any discretionary action permitted to be taken by it pursuant to the provisions
of this Agreement unless it shall be requested in writing to do so by the
Required Lenders.
Subject to the appointment and acceptance of a successor Administrative
Agent as provided below, the Administrative Agent may resign at any time by
notifying the Lenders and the Borrowers. Upon any such resignation, the Required
Lenders shall have the right to appoint a successor; provided, however, that
Alcoa has approved such successor (such consent not to be unreasonably withheld
or delayed and not to be required if an Event of Default exists). If no
successor shall have been so appointed by the Required Lenders and shall have
accepted such appointment within 30 days after the retiring Administrative Agent
gives notice of its resignation, then the retiring Agent may, on behalf of the
Lenders, appoint a successor Administrative Agent, subject to the prior approval
of Alcoa (such consent not to be unreasonably withheld or delayed and not to be
required if an Event of Default exists), which shall be a bank with an office in
New York, New York, having total assets in excess of $10,000,000,000 or an
Affiliate of any such bank. Upon the acceptance of any appointment as the
Administrative Agent hereunder by a successor bank, such successor shall succeed
to and become vested with all the rights, powers, privileges and duties of the
retiring Agent and the retiring Agent shall be discharged from its duties and
obligations hereunder. After the Agent's resignation hereunder the provisions of
this Article and Section 10.05 shall continue in effect for its benefit in
respect of any actions taken or omitted to be taken by it while it was acting as
Administrative Agent.
With respect to the Loans made by it hereunder, the Administrative
Agent in its individual capacity and not as Agent shall have the same rights and
powers as any other Lender and may exercise the same as though it were not an
Administrative Agent, and such Agent and its Affiliates may accept deposits
from, lend money to and generally engage in any kind of business with any
Borrower or any Subsidiary or other Affiliate of Alcoa as if it were not an
Agent.
Each Lender agrees (i) to reimburse the Administrative Agent, on
demand, in the amount of its pro rata share (based on its Commitment hereunder)
of any
62
expenses incurred for the benefit of the Lenders by such Agent, including
counsel fees and compensation of agents and employees paid for services rendered
on behalf of the Lenders, which shall not have been reimbursed by the Borrowers
and (ii) to indemnify and hold harmless the Administrative Agent and any of its
directors, officers, employees, agents or Affiliates, on demand, in the amount
of such pro rata share, from and against any and all liabilities, taxes,
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 it in its capacity as an Administrative
Agent or any of them in any way relating to or arising out of this Agreement or
any action taken or omitted by it or any of them under this Agreement, to the
extent the same shall not have been reimbursed by the Borrowers; provided that
no Lender shall be liable to the Administrative Agent for any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements resulting from the gross negligence or wilful
misconduct of such Agent or any of its directors, officers, employees, agents or
Affiliates.
Each Lender acknowledges that it has, independently and without
reliance upon the Administrative Agent or other Lender and based on such
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or other Lender and based on such documents and information
as it shall from time to time deem appropriate, continue to make its own
decisions in taking or not taking action under or based upon this Agreement, any
related agreement or any document furnished hereunder or thereunder.
Each Lender hereby acknowledges that the documentation agents have no
liability hereunder as documentation agents other than in their capacity as
Lenders.
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ARTICLE X. MISCELLANEOUS
SECTION 10.01. Notices. Notices and other communications provided for
herein shall be in writing and shall be delivered by hand or overnight courier
service, mailed by certified or registered mail or sent by telecopy as follows:
(a) if to Alcoa or a Borrowing Subsidiary, to Alcoa Inc. at ▇▇▇
▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇, Attention of Vice President &
Treasurer (Telecopy No. 412-553-3640);
(b) if to the Administrative Agent, to The Chase Manhattan Bank at ▇▇▇
▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, Attention of ▇▇▇▇▇ ▇▇▇▇ (Telecopy No.
212-552-7490), with a copy to The Chase Manhattan Bank at ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇
▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, Attention of ▇▇▇▇▇ ▇▇▇▇▇▇ (Telecopy No. 212-270-4724);
(c) if to a Lender, to it at its address (or telecopy number) set forth
in Schedule 2.01 or in the Assignment and Acceptance pursuant to which such
Lender shall have become a party hereto.
All notices and other communications given to any party hereto in
accordance with the provisions of this Agreement shall be deemed to have been
given on the date of receipt if delivered by hand or overnight courier service
or sent by telecopy or on the date five Business Days after dispatch by
certified or registered mail if mailed, in each case delivered, sent or mailed
(properly addressed) to such party as provided in this Section 10.01 or in
accordance with the latest unrevoked direction from such party to the
Administrative Agent and each Borrower given in accordance with this Section
10.01.
Any notice hereunder shall be effective upon receipt. Any notice or
other communication received on a day which is not a Business Day or after
business hours in the place of receipt shall be deemed to be served on the next
following Business Day in such place. Any notice given to Alcoa shall be deemed
to have been duly given to each other Borrower at the same time and in the same
manner.
SECTION 10.02. Survival of Agreement. All covenants, agreements,
representations and warranties made
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by any Borrower herein and in the certificates or other instruments prepared or
delivered in connection with or pursuant to this Agreement shall be considered
to have been relied upon by the Lenders and shall survive the making by the
Lenders of the Loans, regardless of any investigation made by the Lenders or on
their behalf, and shall continue in full force and effect as long as the
principal of or any accrued interest on any Loan or any Fee or any other amount
payable under this Agreement is outstanding and unpaid and so long as the
Commitments have not been terminated.
SECTION 10.03. Binding Effect. This Agreement shall become effective
when it shall have been executed by Alcoa and the Administrative Agent and when
the Administrative Agent shall have received copies hereof which, when taken
together, bear the signatures of each Lender, and thereafter shall be binding
upon and inure to the benefit of the Borrowers, the Administrative Agent and
each Lender and their respective successors and assigns, except that none of the
Borrowers shall have the right to assign its rights hereunder or any interest
herein without the prior consent of all the Lenders.
SECTION 10.04. Successors and Assigns; Additional Borrowing
Subsidiaries. (a) Whenever in this Agreement any of the parties hereto is
referred to, such reference shall be deemed to include the successors and
assigns of such party; and all covenants, promises and agreements by or on
behalf of the Borrowers, the Administrative Agent or the Lenders that are
contained in this Agreement shall bind and inure to the benefit of their
respective successors and assigns.
(b) Each Lender may assign to one or more Eligible Transferees all or a
portion of its interests, rights and obligations under this Agreement (including
all or a portion of its Commitment and the Loans at the time owing to it);
provided, however, that (i) except in the case of an assignment to a Lender or
an Affiliate of such Lender (including to any SPC pursuant to Section 10.04(j)),
Alcoa and the Administrative Agent must give their prior written consent to such
assignment (which consent shall not be unreasonably withheld or delayed and
shall not be required if an Event of Default exists), (ii) the amount of the
Commitment of the assigning Lender subject to each such assignment (determined
as of the date the Assignment and Acceptance with respect to such assignment is
delivered to
65
the Administrative Agent) shall not be less than $12,500,000, (iii) the parties
(other than the Borrowers) to each such assignment shall execute and deliver to
the Administrative Agent an Assignment and Acceptance, together with a
processing and recordation fee of $2,500 and (iv) the assignee, if it shall not
be a Lender, shall deliver to the Administrative Agent an Administrative
Questionnaire. Upon acceptance and recording pursuant to paragraph (e) of this
Section 10.04, from and after the effective date specified in each Assignment
and Acceptance, which effective date shall be at least five Business Days after
the execution and recording thereof, (A) the assignee thereunder shall be a
party hereto and, to the extent of the interest assigned by such Assignment and
Acceptance, have the rights and obligations of a Lender under this Agreement and
(B) the assigning Lender thereunder shall, to the extent of the interest
assigned by such Assignment and Acceptance, be released from its obligations
under this Agreement (and, in the case of an Assignment and Acceptance covering
all or the remaining portion of an assigning Lender's rights and obligations
under this Agreement, such Lender shall cease to be a party hereto but shall
continue to be entitled to the benefits of Sections 2.12, 2.14, 2.18 and 10.05,
as well as to any Fees accrued for its account and not yet paid).
(c) By executing and delivering an Assignment and Acceptance, the
assigning Lender thereunder and the assignee thereunder shall be deemed to
confirm to and agree with each other and the other parties hereto as follows:
(i) such assigning Lender warrants that it is the legal and beneficial owner of
the interest being assigned thereby free and clear of any adverse claim and that
its Commitment and the outstanding balances of its Loans, in each case without
giving effect to assignments thereof which have not become effective, are as set
forth in such Assignment and Acceptance, (ii) except as set forth in (i) above,
such assigning Lender makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations
made in or in connection with this Agreement, or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of this Agreement,
or any other instrument or document furnished pursuant hereto, or the financial
condition of any Borrower or any Subsidiary of any Borrower or the performance
or observance by any Borrower or any Subsidiary of any Borrower of any of its
obligations under this Agreement or
66
any other instrument or document furnished pursuant hereto; (iii) such assignee
represents and warrants that it is legally authorized and has obtained any
necessary consents to enter into such Assignment and Acceptance; (iv) such
assignee confirms that it has received a copy of this Agreement, together with
copies of the most recent financial statements delivered pursuant to Section
5.01 and such other documents and information as it has deemed appropriate to
make its own credit analysis and decision to enter into such Assignment and
Acceptance; (v) such assignee will independently and without reliance upon the
Administrative Agent, such assigning Lender or any other Lender and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
this Agreement; (vi) such assignee appoints and authorizes the Administrative
Agent to take such action as agent on its behalf and to exercise such powers
under this Agreement as are delegated to the Administrative Agent by the terms
hereof, together with such powers as are reasonably incidental thereto; and
(vii) such assignee agrees that it will perform in accordance with their terms
all the obligations which by the terms of this Agreement are required to be
performed by it as a Lender.
(d) The Administrative Agent, on behalf of and solely for this purpose
as an agent for the Borrowers, shall maintain at one of its offices in The City
of New York a copy of each Assignment and Acceptance delivered to it and a
register for the recordation of the names and addresses of the Lenders, and the
Commitment of, and principal amounts of the Loans owing to, each Lender pursuant
to the terms hereof from time to time (the "Register"). The entries in the
Register shall be conclusive in the absence of manifest error and the Borrowers,
the Administrative Agent and the Lenders may treat each person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement, notwithstanding notice to the contrary. The
Register shall be available for inspection by any Borrower and any Lender at any
reasonable time and from time to time upon reasonable prior notice.
(e) Upon its receipt of a duly completed Assignment and Acceptance
executed by an assigning Lender and an assignee, an Administrative Questionnaire
completed in respect of the assignee (unless the assignee shall
67
already be a Lender hereunder), the processing and recordation fee referred to
in paragraph (b) above and, if required, the written consent of Alcoa and the
Administrative Agent to such assignment, the Administrative Agent shall (i)
accept such Assignment and Acceptance, (ii) record the information contained
therein in the Register and (iii) give prompt notice thereof to the Lenders and
Alcoa. No assignment shall be effective unless recorded in the Register.
(f) Each Lender may without the consent of any Borrower or the
Administrative Agent sell participations to one or more banks or other entities
in all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans owing to it);
provided, however, that (i) such Lender's obligations under this Agreement shall
remain unchanged, (ii) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations, (iii) the participating
banks or other entities shall be entitled to the benefit of the cost protection
provisions contained in Sections 2.12, 2.14 and 2.18 to the same extent as if
they were Lenders and (iv) the Borrowers, the Administrative Agent, and the
other Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender's rights and obligations under this Agreement, and
such Lender shall retain the sole right to enforce the obligations of the
Borrowers relating to the Loans and to approve any amendment, modification or
waiver of any provision of this Agreement (provided that the participating bank
or other entity may be provided with the right to approve amendments,
modifications or waivers affecting it with respect to (A) any decrease in the
Fees payable hereunder with respect to Loans in which the participating bank or
other entity has purchased a participation, (B) any change in the amount of
principal of, or decrease in the rate at which interest is payable on, the Loans
in which the participating bank or other entity has purchased a participation or
(C) any extension of the dates fixed for scheduled payments of a Fee or of
principal of or interest on the Loans in which the participating bank or other
entity has purchased a participation).
(g) Any Lender or participant may, in connection with any assignment or
participation or proposed assignment
68
or participation pursuant to this Section 10.04, disclose to the assignee or
participant or proposed assignee or participant any information relating to any
Borrower furnished to such Lender by or on behalf of such Borrower; provided,
however, that, prior to any such disclosure of information designated by Alcoa
as confidential, each such assignee or participant or proposed assignee or
participant shall execute an agreement whereby such assignee or participant
shall agree (subject to customary exceptions) to preserve the confidentiality of
such confidential information. Notwithstanding the foregoing, no Lender or
participant shall disclose any such information to any person known to it to
compete with Alcoa and its Subsidiaries in any of the principal businesses of
Alcoa and its Subsidiaries taken as a whole, without the prior written consent
of Alcoa.
(h) Any Lender may at any time assign all or any portion of its rights
under this Agreement to a Federal Reserve Bank; provided that no such assignment
shall release a Lender from any of its obligations hereunder. In order to
facilitate such an assignment to a Federal Reserve Bank, each Borrower shall, at
the request of the assigning Lender, duly execute and deliver to the assigning
Lender a promissory note or notes evidencing the Loans made to such Borrower by
the assigning Lender hereunder.
(i) None of the Borrowers shall assign or delegate any of its rights or
obligations hereunder; provided, however, that unless an Event of Default has
occurred and is continuing, Alcoa at any time and from time to time may
designate any wholly-owned Subsidiary to be a Borrowing Subsidiary upon the
completion of the following: (i) each of Alcoa and such Subsidiary shall have
executed and delivered to the Administrative Agent a Designation of Borrowing
Subsidiary and (ii) such Subsidiary shall have complied with Section 4.03,
whereupon (A) such Subsidiary shall become a party hereto and shall have the
rights and obligations of a Borrowing Subsidiary hereunder and (B) the
obligations of such Subsidiary shall become part of the Borrowing Subsidiary
Obligations and the guarantee of Alcoa pursuant to Article VIII hereof shall
apply thereto to the same extent that it applies to the other Borrowing
Subsidiary Obligations, if any (the date on which any such designation shall
occur being called a "Designation Date").
(j) Notwithstanding anything to the contrary contained herein, any
Lender (a "Granting Lender") may
69
grant to a special purpose funding vehicle (a "SPC"), identified as a SPC in
writing from time to time by the Granting Lender to the Administrative Agent and
Alcoa and being either an Affiliate of the Granting Lender or an entity approved
by Alcoa and the Administrative Agent, 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 and (ii) if a
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. The making of a Loan by a SPC hereunder shall
utilize the Commitment of the Granting Lender to the same extent, and as if,
such Loan were made by such Granting Lender. Each party hereto hereby agrees
that no SPC shall be liable for any indemnity or similar payment obligation
under this Agreement (all liability for which shall remain with the Granting
Lender). In furtherance of the foregoing, each party hereto hereby agrees (which
agreement shall survive the termination of this Agreement) that, prior to the
date that is one year and one day after the payment in full of all outstanding
commercial paper or other senior indebtedness of any SPC, it will not institute
against, or join any other person in instituting against, such SPC any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings
under the laws of the United States or any State thereof. In addition,
notwithstanding anything to the contrary contained in this Section 10.04(j), any
SPC may (i) with notice to, but without the prior written consent of, the
Borrower and the Administrative Agent and without paying any processing fee
therefor, assign all or a portion of its interests in any Loans to the Granting
Lender or to any financial institutions (consented to by the Borrower and
Administrative Agent) providing liquidity and/or credit support to or for the
account of such SPC to support the funding or maintenance of 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 of any surety,
guarantee or credit or liquidity enhancement to such SPC. This section may not
be amended without the written consent of the SPC.
SECTION 10.05. Expenses; Indemnity. (a) Alcoa agrees to pay or cause
one or more other Borrowers to pay
70
all reasonable out-of-pocket expenses incurred by the Administrative Agent in
connection with the preparation of this Agreement or in connection with any
amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the transactions hereby contemplated shall be consummated) or
incurred by the Administrative Agent or any Lender in connection with the
enforcement of their rights in connection with this Agreement or in connection
with the Loans made hereunder, including the reasonable fees, charges and
disbursements of Cravath, Swaine & ▇▇▇▇▇, counsel for the Administrative Agent,
and, in connection with any such enforcement, the reasonable fees, charges and
disbursements of any other counsel for the Administrative Agent or any Lender.
Alcoa further agrees to indemnify or cause one or more other Borrowers to
indemnify the Lenders from and hold them harmless against any documentary taxes,
assessments or charges made by any Governmental Authority by reason of the
execution and delivery of this Agreement.
(b) Alcoa agrees to indemnify or cause one or more other Borrowers to
indemnify the Administrative Agent, its Affiliates, each Lender and each of
their respective directors, officers, employees and agents (each such person
being called an "Indemnitee") against, and to hold or cause one or more other
Borrowers to hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses, including reasonable counsel fees,
charges and disbursements, incurred by or asserted against any Indemnitee
arising out of, in any way connected with, or as a result of (i) the execution
or delivery of this Agreement or any agreement or instrument contemplated
hereby, the performance by the parties thereto of their respective obligations
thereunder or the consummation of the transactions contemplated thereby, (ii)
the use of the proceeds of the Loans or (iii) any claim, litigation,
investigation or proceeding relating to any of the foregoing, whether or not any
Indemnitee is a party thereto; provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the gross
negligence or wilful misconduct of such Indemnitee. The Administrative Agent and
each Lender agrees to promptly notify Alcoa of any claims relating to clauses
(i), (ii) or (iii) of the next preceding sentence; provided, however,
71
that any failure to deliver any such notice shall not relieve Alcoa from its
obligations under this paragraph (b).
(c) The provisions of this Section 10.05 shall remain operative and in
full force and effect regardless of the expiration of the term of this
Agreement, the consummation of the transactions contemplated hereby, the
repayment of any of the Loans, the invalidity or unenforceability of any term or
provision of this Agreement, or any investigation made by or on behalf of the
Administrative Agent or Lender. All amounts due under this Section 10.05 shall
be payable on written demand therefor.
SECTION 10.06. Right of Setoff. If an Event of Default shall have
occurred and be continuing, each Lender is hereby authorized at any time and
from time to time, to the fullest extent permitted by law, to set off and apply
any and all deposits (general or special, time or demand, provisional or final)
at any time held and other indebtedness at any time owing by such Lender or its
Affiliates to or for the credit or the account of any Borrower against any of
and all the obligations of such Borrower (or, in the case of Alcoa, any of and
all the obligations of any Borrowing Subsidiary) now or hereafter existing under
this Agreement held by such Lender, irrespective of whether or not such Lender
shall have made any demand under this Agreement or otherwise and although such
obligations may be unmatured. The rights of each Lender under this Section are
in addition to other rights and remedies (including other rights of setoff)
which such Lender may have.
SECTION 10.07. Applicable Law. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD
TO PRINCIPLES OF CONFLICTS OF LAWS.
SECTION 10.08. Waivers; Amendment. (a) No failure or delay of the
Administrative Agent or any Lender in exercising any power or right hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of
any such right or power, or any abandonment or discontinuance of steps to
enforce such a right or power, preclude any other or further exercise thereof or
the exercise of any other right or power. The rights and remedies of the
Administrative Agent and the Lenders
72
hereunder are cumulative and are not exclusive of any rights or remedies which
they would otherwise have. No waiver of any provision of this Agreement or
consent to any departure by any Borrower therefrom shall in any event be
effective unless the same shall be permitted by paragraph (b) below, and then
such waiver or consent shall be effective only in the specific instance and for
the purpose for which given. No notice or demand on any Borrower in any case
shall entitle such Borrower to any further notice or shall entitle such Borrower
or any other Borrower to notice or demand in similar or other circumstances.
(b) Neither this Agreement nor any provision hereof may be waived,
amended or modified except pursuant to an agreement or agreements in writing
entered into by the Borrowers and the Required Lenders; provided, however, that
no such agreement shall (i) decrease the principal amount of, or extend the
maturity of or any scheduled principal payment date or date for the payment of
any interest on any Loan or date fixed for payment of any Facility Fee, or waive
or excuse any such payment or any part thereof, or decrease the rate of interest
on any Loan, without the prior written consent of each Lender affected thereby,
(ii) change or extend the Commitment or decrease the Facility Fees of any Lender
without the prior written consent of such Lender, (iii) amend or modify the
provisions of Section 2.14, the provisions of this Section or the definition of
"Required Lenders", without the prior written consent of each Lender or (iv)
amend, modify or otherwise affect the rights or duties of the Administrative
Agent hereunder without the prior written consent of such Agent. Each Lender and
each assignee thereof shall be bound by any waiver, consent, amendment or
modification authorized by this Section.
SECTION 10.09. Interest Rate Limitation. Notwithstanding anything
herein to the contrary, if at any time the applicable interest rate, together
with all fees and charges which are treated as interest under applicable law
(collectively the "Charges"), as provided for herein or in any other document
executed in connection herewith, or otherwise contracted for, charged, received,
taken or reserved by any Lender, shall exceed the maximum lawful rate (the
"Maximum Rate") which may be contracted for, charged, taken, received or
reserved by such Lender in accordance with applicable law, the rate of interest
73
payable to such Lender, together with all Charges payable to such Lender, shall
be limited to the Maximum Rate.
SECTION 10.10. Entire Agreement. This Agreement and the Engagement
Letter constitute the entire contract between the parties relative to the
subject matter hereof. Any previous agreement among the parties with respect to
the subject matter hereof is superseded by this Agreement and the Engagement
Letter. Nothing in this Agreement or the Engagement Letter, expressed or
implied, is intended to confer upon any party other than the parties hereto and
thereto any rights, remedies, obligations or liabilities under or by reason of
this Agreement or the Engagement Letter.
SECTION 10.11. Waiver of Jury Trial. Each party hereto hereby waives,
to the fullest extent permitted by applicable law, any right it may have to a
trial by jury in respect of any litigation directly or indirectly arising out
of, under or in connection with this Agreement. Each party hereto (a) certifies
that no representative, agent or attorney of any other party has represented,
expressly or otherwise, that such other party would not, in the event of
litigation, seek to enforce the foregoing waiver and (b) acknowledges that it
and the other parties hereto have been induced to enter into this Agreement, as
applicable, by, among other things, the mutual waivers and certifications in
this Section 10.11.
SECTION 10.12. Severability. In the event any one or more of the
provisions contained in this Agreement should be held invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein and therein shall not in any way be
affected or impaired thereby. The parties 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 10.13. Counterparts. This Agreement 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 contract, and shall become
effective as provided in Section 10.03.
74
SECTION 10.14. Headings. Article and Section headings and the Table of
Contents used herein are for convenience of reference only, are not part of this
Agreement and are not to affect the construction of, or to be taken into
consideration in interpreting, this Agreement.
SECTION 10.15. Jurisdiction, Consent to Service of Process. (a) Each
Borrower hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of any New York State court or
Federal court of the United States of America sitting in New York City, and any
appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement, or for recognition or enforcement of any judgment,
and each of the parties hereto hereby irrevocably and unconditionally agrees
that all claims in respect of any such action or proceeding may be heard and
determined in such New York State or, to the extent permitted by law, in such
Federal court. Each of the parties hereto agrees that a final judgment in any
such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.
Nothing in this Agreement shall affect any right that any Lender may otherwise
have to bring any action or proceeding relating to this Agreement against any
Borrower or its properties in the courts of any jurisdiction.
(b) Each Borrower hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection which it may
now or hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Agreement in any New York State or Federal
court. Each of the parties hereto hereby irrevocably waives, to the fullest
extent permitted by law, the defense of an inconvenient forum to the maintenance
of such action or proceeding in any such court.
(c) Each party to this Agreement irrevocably consents to service of
process in the manner provided for notices in Section 10.01. Nothing in this
Agreement will affect the right of any party to this Agreement to serve process
in any other manner permitted by law.
75
SECTION 10.16. Conversion of Currencies. (a) If, for the purpose of
obtaining judgment in any court, it is necessary to convert a sum due hereunder
in dollars into another currency, the parties hereto agree, to the fullest
extent that they may legally and effectively do so, that the rate of exchange
used shall be that at which in accordance with normal banking procedures the
Administrative Agent could purchase dollars with such other currency in The City
of New York, on the Business Day immediately preceding the day on which final
judgment is given.
(b) The obligation of each Borrower in respect of any sum due to any
Lender hereunder in dollars shall, to the extent permitted by applicable law,
notwithstanding any judgment in a currency other than dollars, be discharged
only to the extent that on the Business Day following receipt of any sum
adjudged to be so due in the judgment currency such Lender may in accordance
with normal banking procedures purchase dollars in the amount originally due to
such Lender with the judgment currency. If the amount of dollars so purchased is
less than the sum originally due to such Lender, such Borrower agrees, as a
separate obligation and notwithstanding any such judgment, to indemnify such
Lender against the resulting loss.
76
IN WITNESS WHEREOF, the Borrower, the Administrative Agent and the
Lenders have caused this Agreement to be duly executed by their respective
authorized officers as of the day and year first above written.
ALCOA INC.,
by
Name:
Title:
THE CHASE MANHATTAN BANK,
individually and as
Administrative Agent,
by
Name:
Title:
ABN AMRO BANK, N.V.,
by
Name:
Title:
by
Name:
Title:
AUSTRALIA AND NEW ZEALAND
BANKING GROUP LIMITED,
by
Name:
Title:
▇▇
▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇,
▇▇▇ ▇▇▇▇ Branch,
by
Name:
Title:
by
Name:
Title:
BANK OF AMERICA, N.A.,
by
Name:
Title:
BANK OF MONTREAL,
by
Name:
Title:
BANK OF TOKYO-MITSUBISHI
TRUST COMPANY,
by
Name:
Title:
BANK ONE, N.A.,
by
Name:
Title:
78
BNP PARIBAS,
by
Name:
Title:
CITIBANK, N.A.,
by
Name:
Title:
COMMERZBANK AG, New York and
Grand Cayman Branches,
by
Name:
Title:
by
Name:
Title:
CREDIT SUISSE FIRST BOSTON,
by
Name:
Title:
by
Name:
Title:
DEUTSCHE BANK AG, New York
Branch and/or Cayman Islands
Branch,
by
Name:
Title:
by
Name:
Title:
THE FUJI BANK LTD,
by
Name:
Title:
79
MELLON BANK, N.A.,
by
Name:
Title:
REVOLVING COMMITMENT VEHICLE
CORPORATION, by: ▇▇▇▇▇▇
Guaranty Trust Company of New
York, as Attorney-in-fact for
Revolving Commitment Vehicle
Corporation
by
Name:
Title:
NATIONAL AUSTRALIA BANK LTD.,
by
Name:
Title:
by
Name:
Title:
SANPAOLO IMI S.p.A,
by
Name:
Title:
by
Name:
Title:
EXHIBIT A
TO CREDIT AGREEMENT
[FORM OF]
ASSIGNMENT AND ACCEPTANCE
Reference is made to the Amended and Restated Five-Year Revolving
Credit Agreement dated as of April 27, 2001 (as amended from time to time, the
"Credit Agreement"), among Alcoa Inc. ("Alcoa"), a Pennsylvania corporation,
certain subsidiaries of Alcoa, the Lenders, and The Chase Manhattan Bank, as the
Administrative Agent for the Lenders. Terms defined in the Credit Agreement are
used herein with the same meanings.
1. The Assignor hereby sells and assigns, without recourse, to the
Assignee, and the Assignee hereby purchases and assumes, without recourse, from
the Assignor, effective as of the Assignment Effective Date set forth on the
reverse hereof, the interests set forth on the reverse hereof (the "Assigned
Interest") in the Assignor's rights and obligations under the Credit Agreement,
including, without limitation, the Commitment of the Assignor on the Assignment
Effective Date and the Loans owing to the Assignor which are outstanding on the
Assignment Effective Date, together with unpaid interest accrued on the assigned
Loans to the Assignment Effective Date and the amount, if any, set forth on the
reverse hereof of the Fees accrued to the Assignment Effective Date for the
account of the Assignor. Each of the Assignor and the Assignee hereby makes and
agrees to be bound by all the representations, warranties and agreements set
forth in Section 10.04(c) of the Credit Agreement, a copy of which has been
received by each such party. From and after the Assignment Effective Date (i)
the Assignee shall be a party to and be bound by the provisions of the Credit
Agreement and, to the extent of the interests assigned by this Assignment and
Acceptance, have the rights and obligations of a Lender thereunder and (ii) the
Assignor shall, to the extent of the interests assigned by this Assignment and
Acceptance, relinquish its rights and be released from its obligations under the
Credit Agreement.
2
2. This Assignment and Acceptance is being delivered to the
Administrative Agent together with (i) if the Assignee is a Lender and is
organized under the laws of a jurisdiction outside the United States, the forms
specified in Section 2.18(g) of the Credit Agreement, duly completed and
executed by such Assignee, (ii) if the Assignee is not already a Lender under
the Credit Agreement, an Administrative Questionnaire in the form of Exhibit B
to the Credit Agreement and (iii) a processing and recordation fee of $2,500.
3. This Assignment and Acceptance shall be governed by and construed
in accordance with the laws of the State of New York.
Date of Assignment:
Legal Name of Assignor:
Legal Name of Assignee:
Assignee's Address for Notices:
Assignment Effective Date of
Assignment (may not be fewer than
5 Business Days after the Date of
Assignment):
=============================================================
Percentage Assigned of
Applicable
Facility/Commitment (set
forth, to at least 8
decimals, as a percentage
Principal of the Facility and the
Facility/ Amount aggregate Commitments of
Commitment Assigned all Lenders thereunder)
-------------------------------------------------------------
-------------------------------------------------------------
Commitment $ %
-------------------------------------------------------------
Loan: $ %
-------------------------------------------------------------
Fees Assigned $ %
(if any)%
=============================================================
3
The terms set forth above and on the reverse side hereof are hereby
agreed to:
Accepted*/
_____________, as Assignor ALCOA INC.,
by:________________________
by:______________________ Name:
Name: Title:
Title:
_____________, as Assignee THE CHASE MANHATTAN BANK,
by:________________________
by:______________________ Name:
Name: Title:
Title:
--------------------
(1) To be completed to the extent consents are required under
Section 10.04(b) of the Credit Agreement.
EXHIBIT B
TO CREDIT AGREEMENT
ADMINISTRATIVE QUESTIONNAIRE
ALCOA INC.
Please accurately complete the following information and return via FAX to the
attention of ▇▇▇▇▇ ▇▇▇▇ (▇▇▇) ▇▇▇-▇▇▇▇ at Chase Manhattan Bank as soon as
possible.
PHONE NUMBER: FAX NUMBER:
LEGAL NAME OF LENDER (TO APPEAR ON THE SIGNATURE LINE IN DOCUMENTATION):
GENERAL INFORMATION - DOMESTIC LENDING OFFICE:
Institution Name: ________________________
Street Address: ________________________
City, State, Zip Code: ________________________
GENERAL INFORMATION - EURODOLLAR LENDING OFFICE:
Institution Name: ________________________
Street Address: ________________________
City, State, Zip Code: ________________________
TAX WITHHOLDING:
Non-Resident Alien: _____ Yes* _____ No*
*Form 4224 Enclosed
Tax ID Number: ________________________
2
CONTACTS/NOTIFICATION METHODS:
CREDIT CONTACTS:
Primary Contact: ________________________
Street Address: ________________________
City, State, Zip Code: ________________________
Phone Number: ________________________
FAX Number: ________________________
Backup Contact: ________________________
Street Address: ________________________
City, State, Zip Code: ________________________
Phone Number: ________________________
FAX Number: ________________________
ADMINISTRATIVE CONTACTS - BORROWING, PAYMENTS, INTEREST, ETC...
Contact: ________________________
Street Address: ________________________
City, State, Zip Code: ________________________
Phone Number: ________________________
FAX Number: ________________________
ACCOUNT INFORMATION - Please provide only one set of instructions for all types
of payments:
Name of Bank where funds are to be transferred:
_______________________________________________________________
3
Routing Transit/ABA number of Bank where funds are to be transferred:
_______________________________________________________________
Name of Account: ________________________
Account Number: ________________________
Additional Information: ________________________
________________________
It is very important that all of the above information is accurately filled in
and promptly returned. If there is someone other than yourself who should
receive this questionnaire, please notify us of their name and FAX number and we
will FAX them a copy of the questionnaire.
EXHIBIT C
TO CREDIT AGREEMENT
[Letterhead of]
ALCOA
April 27, 2001
The Chase Manhattan Bank, as Agent
and each of the Lenders party to the
Agreement referred to below
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Ladies and Gentlemen:
I am a Counsel of Alcoa Inc. ("Alcoa") and in such capacity have represented
Alcoa in connection with the Amended and Restated Five-Year Revolving Credit
Agreement dated as of April 27, 2001 (the "Agreement"), among Alcoa, certain
subsidiaries of Alcoa, the Lenders and The Chase Manhattan Bank, as the
Administrative Agent. This opinion is rendered to you pursuant to Section
4.01(a) of the Agreement. Capitalized terms used but not defined herein shall
have the meanings assigned to them in the Agreement.
In rendering the opinion expressed below, I have examined, either personally or
indirectly through other counsel, the originals or conformed copies of the
Agreement and such corporate records, agreements and instruments of Alcoa and
its Subsidiaries, certificates of public officials and of officers of Alcoa and
its Subsidiaries, and such other documents and records as I have deemed
appropriate as a basis for the opinions hereinafter expressed.
Based upon the foregoing and subject to the qualifications stated herein, I am
of the opinion that:
1. Alcoa is a corporation duly organized, validly existing and in good standing
under the laws of the Commonwealth of Pennsylvania and is duly qualified to do
business as a
2
foreign corporation and is in good standing in all other jurisdictions in which
the ownership of its properties or the nature of its activities or both makes
such qualification necessary, except to the extent that failure to be so
qualified would not result in a Material Adverse Effect.
2. Alcoa has corporate power and authority to execute, deliver and carry out the
provisions of the Agreement, to borrow under the Agreement and to perform its
obligations thereunder and all such action has been duly and validly authorized
by all necessary corporate proceedings on its part.
3. The Agreement has been duly executed and delivered by Alcoa and constitutes
the legal, valid and binding obligation of Alcoa enforceable against Alcoa in
accordance with its terms, except as limited by bankruptcy, insolvency or other
similar laws of general application affecting the enforcement of creditors'
rights or by general principles of equity limiting the availability of equitable
remedies.
4. No authorization, consent, approval, license, exemption or other action by,
and no registration, qualification, designation, declaration or filing with, any
Governmental Authority is necessary in connection with Alcoa's execution and
delivery of the Agreement, the consummation by Alcoa of the transactions
contemplated therein or Alcoa's performance of or compliance with the terms and
conditions thereof, except as set forth on Schedule 3.04 to the Agreement.
5. The execution and delivery by Alcoa of the Agreement, the consummation by
Alcoa of the transactions contemplated thereby or performance by Alcoa of or
compliance with the terms and conditions thereof will not (a) violate any law,
constitution, statute, treaty, regulation, rule, ordinance, order, injunction,
writ, decree or award of any Governmental Authority to which it is subject, (b)
conflict with or result in a breach or default under its charter or by-laws, (c)
to the best of my knowledge, conflict with or result in a breach or default
which is material in the context of the Agreement under any agreement or
instrument to which Alcoa is a party or by which it or any of its properties,
whether now owned or hereafter acquired, may be subject or bound or (d) result
in the creation or imposition of any Lien prohibited by Section 6.01 of the
3
Agreement upon any property or assets of Alcoa, whether now owned or hereafter
acquired.
6. Except as set forth in the financial statements referred to in Section 3.06
of the Agreement, any Exchange Act Report or otherwise disclosed on Schedule
3.08 to the Agreement, there is no pending or, to my knowledge, threatened
proceeding by or before any Governmental Authority against Alcoa or any of its
Subsidiaries which in my opinion is likely to result in a Material Adverse
Effect.
7. Alcoa is not an "investment company" as defined in, or subject to regulation
under, the Investment Company Act of 1940, and Alcoa is exempted as a "holding
company" as defined in the Public Utility Holding Company Act of 1935. I am a
member of the bar of the Commonwealth of Pennsylvania and my opinion is limited
to the laws of the Commonwealth of Pennsylvania and the laws of the United
States of America. I express no opinion herein as to whether a court would apply
New York law to any particular subject matter hereof. To the extent that the
laws of the State of New York or, contrary to the agreement of the parties, the
laws of any other State govern the documents referenced herein, you may rely on
my opinion with respect to such laws to the extent that the laws of such state
or states are substantially the same as the laws of the Commonwealth of
Pennsylvania, as to which sameness I express no opinion.
Very truly yours,
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
19W
EXHIBIT D
TO CREDIT AGREEMENT
[FORM OF]
DESIGNATION OF BORROWING SUBSIDIARY
Reference is made to the Amended and Restated Five-Year Revolving
Credit Agreement dated as of April 27, 2001 (as amended from time to time, the
"Credit Agreement"), among Alcoa Inc. ("Alcoa"), a Pennsylvania corporation,
certain subsidiaries of Alcoa, the Lenders and The Chase Manhattan Bank, as the
Administrative Agent for the Lenders. Terms defined in the Credit Agreement are
used herein with the same meanings.
1. Alcoa hereby designates [ ], a [ ] corporation (the "Subsidiary"),
effective as of [ ], 20[ ] (the "Designation Date"), as a Borrowing Subsidiary
under the Credit Agreement. The Subsidiary hereby makes and agrees to be bound
by all the representations, warranties and agreements set forth in Article III,
V and VI of the Credit Agreement. From and after the Designation Date, the
Subsidiary shall become a party to the Credit Agreement and shall have the
rights and obligations of a Borrowing Subsidiary thereunder. Alcoa agrees that
its guarantee pursuant to Article VIII of the Credit Agreement shall apply to
the Borrowings of the Subsidiary.
2. This Designation of Borrowing Subsidiary is being delivered to the
Administrative Agent together with the documents set forth in Section 4.03(a).
3. This Designation of Borrowing Subsidiary shall be governed by and
construed in accordance with the laws of the State of New York.
2
The terms set forth above are hereby agreed to:
[ ], as Subsidiary,
by
---------------------
Name:
Title:
ALCOA INC., by
by
---------------------
Name:
Title:
Accepted:
THE CHASE MANHATTAN BANK, as the Administrative Agent by
by
---------------------
Name:
Title:
SCHEDULE 2.01
--------------------------------------------------------------------------------
Contact Person
and Telephone
Name and Address and Telecopy Commitment
of the Lenders Numbers (U.S.$)
--------------------------------------------------------------------------------
The Chase Manhattan Bank ▇▇▇▇▇ ▇▇▇▇▇▇ $99,625,000.00
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇ ▇▇▇▇, Tel: ▇▇▇-▇▇▇-▇▇▇▇
▇▇ ▇▇▇▇▇ Fax: ▇▇▇-▇▇▇-▇▇▇▇
--------------------------------------------------------------------------------
ABN AMRO Bank, N.V. ▇▇▇▇▇▇ ▇▇▇▇▇▇ $50,000,000.00
One PPG Place, Tel: ▇▇▇-▇▇▇-▇▇▇▇
Suite 2950 Fax: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
--------------------------------------------------------------------------------
Australian and New ▇▇▇▇▇ ▇▇▇▇ $60,000,000.00
Zealand Banking Group Ltd. Tel: ▇▇▇-▇▇▇-▇▇▇▇
1177 Avenue of the Fax: ▇▇▇-▇▇▇-▇▇▇▇
Americas,
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
--------------------------------------------------------------------------------
Banca Commerciale Italiana ▇▇▇▇▇ ▇▇▇▇▇▇ $35,000,000.00
▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, Tel: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇ Fax: ▇▇▇-▇▇▇-▇▇▇▇
--------------------------------------------------------------------------------
Bank of America, N.A. ▇▇▇ Kravocheck $33,250,000.00
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, Tel: ▇▇▇-▇▇▇-▇▇▇▇
67th Flr. Fax: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
--------------------------------------------------------------------------------
Bank of Montreal ▇▇▇ ▇▇▇▇▇▇▇ $14,500,000.00
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, Tel: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇ Fax: ▇▇▇-▇▇▇-▇▇▇▇
--------------------------------------------------------------------------------
Bank of ▇▇▇▇ ▇'▇▇▇▇▇▇ $50,000,000.00
Tokyo-Mitsubishi Trust Company Tel: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇▇ ▇▇▇▇▇▇ of the Fax: ▇▇▇-▇▇▇-▇▇▇▇
Americas,
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
--------------------------------------------------------------------------------
Bank One, N.A. ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ $42,500,000.00
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, Tel: ▇▇▇-▇▇▇-▇▇▇▇
2nd Flr. Fax: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
--------------------------------------------------------------------------------
2
--------------------------------------------------------------------------------
Contact Person
and Telephone
Name and Address and Telecopy Commitment
of the Lenders Numbers (U.S.$)
--------------------------------------------------------------------------------
BNP Paribas ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ $35,000,000.00
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, Tel: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇ Fax: ▇▇▇-▇▇▇-▇▇▇▇
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Citibank, N.A. ▇▇▇ ▇▇▇▇▇▇▇ $85,000,000.00
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, Tel: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇ Fax: ▇▇▇-▇▇▇-▇▇▇▇
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COMMERZBANK AG, ▇▇▇▇▇▇ ▇▇▇▇▇▇ $70,000,000.00
2 World Financial Center, Tel: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇ Fax: ▇▇▇-▇▇▇-▇▇▇▇
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Credit Suisse First Boston ▇▇▇ ▇▇▇▇▇ $110,000,000.00
▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, Tel: ▇▇▇-▇▇▇-▇▇▇▇
20th Flr. Fax: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
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Deutsche Bank AG ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ $110,000,000.00
▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, Tel: ▇▇▇-▇▇▇-▇▇▇▇
24th Floor Fax: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
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The Fuji Bank Ltd. ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ $14,500,000.00
Two World Trade Center, Tel: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇ Fax: ▇▇▇-▇▇▇-▇▇▇▇
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Mellon Bank, N.A. ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇ $70,000,000.00
One Mellon Bank Center, Tel: ▇▇▇-▇▇▇-▇▇▇▇
Pittsburgh, PA Fax: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇▇▇-▇▇▇▇
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▇▇▇▇▇▇ Guaranty Trust ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ $40,625,000.00
Company of New York Tel: ▇▇▇-▇▇▇-▇▇▇▇
▇▇ ▇▇▇▇ ▇▇▇▇▇▇, Fax: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
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National Australia Bank ▇▇▇▇ ▇▇▇▇▇▇ $50,000,000.00
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, Tel: ▇▇▇-▇▇▇-▇▇▇▇
34th Flr. Fax: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
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3
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Contact Person
and Telephone
Name and Address and Telecopy Commitment
of the Lenders Numbers (U.S.$)
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SanPaolo IMI S.p.A ▇▇▇▇ ▇▇▇▇▇▇ $30,000,000.00
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, Tel: ▇▇▇-▇▇▇-▇▇▇▇
35th Flr. Fax: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
--------------------------------------------------------------------------------
Total: $1,000,000,000.00
=================
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SCHEDULE 3.04
Government Approvals
--------------------
International Capital Form S filed with the Federal Reserve Bank of New York.
SCHEDULE 3.08
Litigation
----------
None.
SCHEDULE 6.01(a)
Liens
-----
Liens related to the following tax-exempt municipal bond (and other) issues:
Saline County, Arkansas 1999 4,650,000
St. ▇▇▇▇▇▇▇▇ County, New York Series A 1999 9,640,000
▇▇▇▇▇ County, Texas Series 1999 16,855,000
Indiana Development Finance
Authority Series 1999 13,905,000
St. ▇▇▇▇▇▇▇▇ County, New York Series A 1998 22,800,000
Yankton, South Dakota Series 1997 9,000,000
Hutchinson, Kansas HUD UDAG 1996 399,301
Loan
Berkeley County, South Carolina Series 1996 27,450,000
St. Louis, Missouri Series 1992 4,840,000
▇▇▇▇▇▇▇▇▇ County, Maryland Series 1992 9,880,000
▇▇▇▇▇▇▇ County, Indiana Series 1992 12,475,000
▇▇▇▇▇▇ County, Tennessee Series 1992 2,450,000
Lebanon County, Pennsylvania Series 1992 1,020,000
Lebanon County, Pennsylvania Series 1992 1,000,000
▇▇▇▇▇▇▇ County, Texas Series 1992 9,000,000
▇▇▇▇▇ County, Texas Series 1995 11,000,000
▇▇▇▇▇▇▇ County Navigation District, Texas
Series 1995 7,700,000
State of Ohio Series 1996 2,150,000
Chelan County, Washington Series 1995 14,000,000
Vidalia, Louisiana Series 1995 10,000,000
Tifton, Georgia Series 1996 10,000,000
▇▇▇▇▇▇▇▇▇ County, Maryland Series 1978 2,145,000
Saline County, Arkansas Series 1977 900,000
St. ▇▇▇▇▇▇▇▇ County, New York Series 1977 900,000
▇▇▇▇▇▇ County, Tennessee Series 1977 2,010,000
TOTAL $206,169,301
------------
Leased Equipment:
Alcoa Manufacturing (G.B.) Limited $7,818,701
Shibazaki Seisakusho Limited 1,968,659
Alumax Europe N.V. 3,562
Alcoa Transformacion S.A. $34,977
TOTAL 9,825,899
---------
2
Mortgages and Capital Leases:
Alcoa Inc. $32,865,442
Alcoa Automotive Castings 15,179
A-CMI 15,520,000
TOTAL $48,400,621
-----------