Exhibit 10.1
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[Published CUSIP Number: ___________]
4-YEAR REVOLVING CREDIT AGREEMENT
Dated as of May 5, 2005
among
THE TJX COMPANIES, INC.,
as the Borrower,
THE FINANCIAL INSTITUTIONS NAMED HEREIN,
as the Lenders,
BANK OF AMERICA, N.A.,
as Administrative Agent,
JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,
and
THE BANK OF NEW YORK,
as Syndication Agents,
and
CITIZENS BANK OF MASSACHUSETTS,
KEYBANK NATIONAL ASSOCIATION,
and
UNION BANK OF CALIFORNIA, N.A.,
as Documentation Agents
▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇
▇▇▇▇ ▇▇ ▇▇▇▇▇▇▇ SECURITIES LLC,
BNY CAPITAL MARKETS, INC.,
and
JPMORGAN SECURITIES INC.,
as Co-Lead Arrangers
and
BNY CAPITAL MARKETS, INC.,
and
JPMORGAN SECURITIES INC.,
as Joint Book Runners
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PORTIONS OF CERTAIN EXHIBITS TO THIS AGREEMENT HAVE BEEN OMITTED AND WILL BE
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
CONFIDENTIAL TREATMENT REQUEST
TABLE OF CONTENTS
Page
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ARTICLE I DEFINITIONS.............................................................. 1
1.1 Certain Defined Terms................................................... 1
ARTICLE II THE CREDITS............................................................. 16
2.1 The Syndicated Loans.................................................... 16
2.2 Repayment of the Syndicated Loans....................................... 16
2.3 Ratable Syndicated Loans; Types of Syndicated Advances.................. 16
2.4 Minimum Amount of Each Syndicated Advance............................... 16
2.5 Optional Prepayments of Syndicated Loans................................ 17
2.6 Method of Selecting Types and Interest Periods for New Syndicated
Advances............................................................. 17
2.7 Conversion and Continuation of Outstanding Syndicated Advances.......... 18
2.8 Payment of Interest on Syndicated Advances; Changes in Interest Rate.... 18
2.9 Facility Fee; Utilization Fee; Adjustments in Aggregate Commitment...... 19
2.10 Rates Applicable After Default.......................................... 20
2.11 Method of Payment....................................................... 21
2.12 Evidence of Debt (Optional Syndicated Notes); Telephonic Notices........ 21
2.13 Notification of Syndicated Advances, Interest Rates, Prepayments and
Commitment Reductions................................................ 22
2.14 Lending Installations................................................... 22
2.15 Non-Receipt of Funds by the Administrative Agent........................ 22
2.16 Withholding Tax Exemption............................................... 23
2.17 Termination............................................................. 23
2.18 Pricing................................................................. 23
ARTICLE III CHANGE IN CIRCUMSTANCES................................................ 25
3.1 Yield Protection........................................................ 25
3.2 Changes in Capital Adequacy Regulations................................. 25
3.3 Availability of Types of Syndicated Advances............................ 26
3.4 Funding Indemnification................................................. 26
3.5 Mitigation; Lender Statements; Survival of Indemnity.................... 27
ARTICLE IV CONDITIONS PRECEDENT.................................................... 27
4.1 Effectiveness; Initial Syndicated Advance............................... 27
4.2 Each Syndicated Advance................................................. 28
ARTICLE V REPRESENTATIONS AND WARRANTIES........................................... 29
5.1 Existence and Standing.................................................. 29
5.2 Authorization and Validity.............................................. 29
5.3 No Conflict; Government Consent......................................... 30
5.4 Financial Statements.................................................... 30
5.5 Material Adverse Change................................................. 31
5.6 Taxes................................................................... 31
5.7 Litigation and Contingent Obligations................................... 31
5.8 Subsidiaries............................................................ 31
5.9 ERISA................................................................... 32
5.10 Accuracy of Information................................................. 32
5.11 Regulations T, U and X.................................................. 32
5.12 Material Agreements..................................................... 32
5.13 Compliance With Laws.................................................... 32
5.14 Ownership of Property................................................... 33
5.15 Labor Matters........................................................... 33
5.16 Investment Company Act.................................................. 33
5.17 Public Utility Holding Company Act...................................... 33
5.18 Insurance............................................................... 34
ARTICLE VI COVENANTS............................................................... 34
6.1 Financial Reporting..................................................... 34
6.2 Use of Proceeds......................................................... 35
6.3 Other Notices........................................................... 36
6.4 Conduct of Business..................................................... 36
6.5 Taxes................................................................... 36
6.6 Insurance............................................................... 36
6.7 Compliance with Laws.................................................... 37
6.8 Maintenance of Properties............................................... 37
6.9 Inspection.............................................................. 37
6.10 Merger.................................................................. 37
6.11 Sale of Assets.......................................................... 38
6.12 Affiliates.............................................................. 38
6.13 Investments............................................................. 39
6.14 Contingent Obligations.................................................. 39
6.15 Liens................................................................... 40
6.16 Maximum Leverage Ratio.................................................. 42
6.17 Intentionally Deleted................................................... 42
6.18 Acquisitions............................................................ 42
6.19 Rate Hedging Obligations................................................ 42
6.20 Subsidiary Indebtedness................................................. 42
6.21 Subordination of Intercompany Indebtedness.............................. 42
ARTICLE VII DEFAULTS............................................................... 43
7.1 Breach of Representation or Warranty.................................... 43
7.2 Payment Default......................................................... 43
7.3 Breach of Certain Covenants............................................. 43
7.4 Breach of Other Provisions.............................................. 43
7.5 Default on Material Indebtedness........................................ 43
7.6 Voluntary Insolvency Proceedings........................................ 44
7.7 Involuntary Insolvency Proceedings...................................... 44
7.8 Condemnation............................................................ 44
7.9 Judgments............................................................... 45
7.10 ERISA Matters........................................................... 45
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7.11 Environmental Matters................................................... 45
7.12 Change of Control....................................................... 45
7.13 Loan Document Defaults.................................................. 45
7.14 Off-Balance Sheet Liabilities........................................... 46
ARTICLE VIII ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES........................ 46
8.1 Acceleration............................................................ 46
8.2 Amendments.............................................................. 46
8.3 Preservation of Rights.................................................. 47
ARTICLE IX GENERAL PROVISIONS...................................................... 47
9.1 Survival of Representations............................................. 47
9.2 Governmental Regulation................................................. 48
9.3 Taxes; Stamp Duties..................................................... 48
9.4 Headings................................................................ 48
9.5 Entire Agreement........................................................ 48
9.6 Several Obligations; Benefits of this Agreement......................... 48
9.7 Expenses; Indemnification............................................... 49
9.8 Numbers of Documents.................................................... 50
9.9 Accounting.............................................................. 50
9.10 Severability of Provisions.............................................. 51
9.11 Nonliability of Lenders................................................. 51
9.12 GOVERNING LAW........................................................... 51
9.13 CONSENT TO JURISDICTION; SERVICE OF PROCESS; JURY TRIAL................. 52
9.14 Confidentiality......................................................... 53
ARTICLE X THE ADMINISTRATIVE AGENT................................................. 54
10.1 Appointment; Nature of Relationship..................................... 54
10.2 Powers.................................................................. 54
10.3 General Immunity........................................................ 54
10.4 No Responsibility for Syndicated Loans, Creditworthiness, Collateral,
Recitals, Etc........................................................ 55
10.5 Action on Instructions of Lenders....................................... 55
10.6 Employment of Agents and Counsel........................................ 56
10.7 Reliance on Documents; Counsel.......................................... 56
10.8 The Administrative Agent's Reimbursement and Indemnification............ 56
10.9 Rights as a Lender...................................................... 56
10.10 Lender Credit Decision.................................................. 57
10.11 Successor Administrative Agent.......................................... 57
10.12 No Duties Imposed on Syndication Agents, Documentation Agents or
Arrangers............................................................ 58
10.13 Administrative Agent's Fee.............................................. 58
ARTICLE XI SETOFF; RATABLE PAYMENTS................................................ 58
11.1 Setoff.................................................................. 58
11.2 Ratable Payments........................................................ 58
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11.3 Application of Payments................................................. 59
ARTICLE XII BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS...................... 59
12.1 Successors and Assigns.................................................. 59
12.2 Participations.......................................................... 60
12.3 Assignments............................................................. 61
12.4 Designated Lenders...................................................... 62
12.5 Dissemination of Information............................................ 63
12.6 Tax Treatment........................................................... 63
ARTICLE XIII NOTICES............................................................... 63
13.1 Giving Notice........................................................... 63
13.2 Change of Address....................................................... 64
ARTICLE XIV COUNTERPARTS........................................................... 64
ARTICLE XV USA PATRIOT ACT NOTICE.................................................. 65
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SCHEDULES
Schedule 1 Commitments
Schedule 5.3 Governmental Authorizations
Schedule 5.7 Litigation
Schedule 5.8 Subsidiaries
Schedule 5.13 Environmental, Health or Safety Requirements of Law
Schedule 5.14 Liens and Encumbrances
Schedule 6.11 Asset Sales
Schedule 6.13 Investments
Schedule 6.14 Contingent Obligations
Schedule 6.20 Subsidiary Indebtedness
Schedule 6.21 Subordination Terms
EXHIBITS
Exhibit A Form of Syndicated Note (if requested)
Exhibit B Required Opinions
Exhibit C Form of Compliance Certificate
Exhibit D Form of Assignment Agreement
Exhibit E Form of Syndicated Loan/Credit Related Money Transfer
Instruction
Exhibit F Form of Syndicated Advance Borrowing Notice
Exhibit G Form of Prepayment Notice
Exhibit H Form of Conversion/Continuation Notice
Exhibit I Form of Designation Agreement
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THIS 4-YEAR REVOLVING CREDIT AGREEMENT, dated as of May 5, 2005, is
among THE TJX COMPANIES, INC., as the Borrower, THE FINANCIAL INSTITUTIONS NAMED
HEREIN, as the Lenders, BANK OF AMERICA, N.A., as the Administrative Agent,
JPMORGAN CHASE BANK, NATIONAL ASSOCIATION and THE BANK OF NEW YORK, as
Syndication Agents, and CITIZENS BANK OF MASSACHUSETTS, KEYBANK NATIONAL
ASSOCIATION and UNION BANK OF CALIFORNIA, N.A., as Documentation Agents. The
parties hereto agree as follows:
ARTICLE I
DEFINITIONS
1.1 Certain Defined Terms.
As used in this Agreement the following terms shall have the following
meanings, such meanings being equally applicable to both the singular and plural
forms of the terms defined:
"Accounting Changes" has the meaning specified in Section 9.9.
"Acquisition" means any transaction, or any series of related
transactions, by which the Borrower or any of its Subsidiaries (a) acquires any
going business or all or substantially all of the assets of any firm,
corporation or division thereof which constitutes a going business, whether
through purchase of assets, merger or otherwise or (b) directly or indirectly
acquires (in one transaction or as the most recent transaction in a series of
transactions) at least a majority (in number of votes) of the securities of a
corporation which have ordinary voting power for the election of directors
(other than securities having such power only by reason of the happening of a
contingency), or a majority (by percentage or voting power) of the outstanding
partnership interests of a partnership or a majority (by percentage or voting
power) of the outstanding ownership interests of a limited liability company.
"Administrative Agent" means Bank of America in its capacity as
contractual representative for the Lenders pursuant to Article X, and not in its
capacity as a Lender, and any successor Administrative Agent appointed pursuant
to Article X.
"Affiliate" of any Person means any other Person directly or
indirectly controlling, controlled by or under common control with such Person.
A Person shall be deemed to control another Person if the controlling Person
owns 20% or more of any class of voting securities (or other ownership
interests) of the controlled Person or possesses, directly or indirectly, the
power to direct or cause the direction of the management or policies of the
controlled Person, whether through ownership of stock, by contract or otherwise;
provided that no individual shall be an Affiliate solely by reason of being, or
actions taken as, a director, officer or employee.
"Aggregate Commitment" means the aggregate of the Commitments of all
the Lenders, as adjusted from time to time pursuant to the terms hereof. The
initial Aggregate Commitment hereunder is Five Hundred Million and 00/100
Dollars ($500,000,000).
"Agreement" means this 4-Year Revolving Credit Agreement, as it may
from time to time be amended, restated, supplemented or otherwise modified.
"Alternate Base Rate" means, for any day, a rate of interest per annum
equal to the higher of (a) the Prime Rate for such day and (b) the sum of
Federal Funds Effective Rate for such day plus 0.50% per annum.
"Applicable Facility Fee Rate" means, from time to time, the
Applicable Facility Fee Rate set forth in Section 2.18.
"Applicable Utilization Fee Rate" means, from time to time, the
Applicable Utilization Fee Rate set forth in Section 2.18.
"Arrangers" means BAS, BNYCMI and JPMorgan Securities, in their
capacity as co-lead arrangers and BNYCMI and JPMorgan Securities, in their
capacity as joint book runners.
"Article" means an article of this Agreement unless another document
is specifically referenced.
"Authorized Officer" means any of the President, the Chief Executive
Officer, the Chief Financial Officer, the Chief Operating Officer, the
Controller or the Treasurer of the Borrower, acting singly.
"Bank of America" means Bank of America, N.A., in its individual
capacity, and its successors.
"BAS" means Banc of America Securities LLC, in its individual
capacity, and its successors.
"BNY" means The Bank of New York, in its individual capacity, and its
successors.
"BNYCMI" means BNY Capital Markets, Inc., in its individual capacity,
and its successors.
"Borrower" means The TJX Companies, Inc., a Delaware corporation, and
its successors and assigns.
"Borrowing Date" means a date on which a Syndicated Advance is made
hereunder.
"Business Day" means (a) with respect to any borrowing, payment or
rate selection of Eurodollar Advances, a day (other than a Saturday or Sunday)
on which banks generally are open in New York, New York and London, England for
the conduct of substantially all of their commercial lending activities and (b)
for all other purposes, a day (other than a Saturday or Sunday) on which banks
generally are open in New York, New York for the conduct of substantially all of
their commercial lending activities; provided, that each such day must also be a
day on which the Administrative Agent is open for the conduct of its business.
2
"Capitalized Lease" of a Person means any lease of Property by such
Person as lessee which would be capitalized on a balance sheet of such Person
prepared in accordance with GAAP.
"Capitalized Lease Obligations" of a Person means the amount of the
obligations of such Person under Capitalized Leases which would be shown as a
liability on a balance sheet of such Person prepared in accordance with GAAP.
"Change" has the meaning specified in Section 3.2.
"Change in Control" means:
(a) the acquisition by any Person, or "group" (within the meaning of
Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended)
of Persons acting in concert, of beneficial ownership (within the meaning of
Rule 13d-3 of the Securities and Exchange Commission under the Securities
Exchange Act of 1934, as amended), directly or indirectly, of 50% or more of the
outstanding shares of voting stock of the Borrower; or
(b) during any period of twelve (12) consecutive calendar months,
individuals:
(i) who were directors of the Borrower on the first day of such
period; or
(ii) whose election or nomination for election to the board of
directors of the Borrower was recommended or approved by at least a
majority of the directors then still in office who were directors of the
Borrower on the first day of such period, or whose election or nomination
for election was so approved,
shall cease to constitute a majority of the board of directors of the
Borrower.
"Chief Financial Officer" means, at any time, the Person who reports
to the board of directors of the Borrower on the financial affairs of the
Borrower and its Subsidiaries.
"Code" means the Internal Revenue Code of 1986, as amended, reformed
or otherwise modified from time to time.
"Combined Commitment" means the sum of (a) the Aggregate Commitment
(as defined in the 5-Year Revolving Credit Agreement) and (b) the Aggregate
Commitment hereunder.
"Combined Utilized Amount" means (1) the sum of all Syndicated Loans,
and (2) the aggregate principal amount of all "Syndicated Loans" (whether
"Syndicated Loans" or "Swing Line Loans") and "L/C Obligations" under and as
defined in the 5-Year Revolving Credit Agreement.
"Commitment" means, for each Lender, the obligation of such Lender to
make Syndicated Loans not exceeding, in the aggregate, the amount set forth
opposite its name on Schedule 1 hereto or as set forth in any Notice of
Assignment relating to any assignment that has
3
become effective pursuant to Section 12.3.2, as such amount may be modified from
time to time pursuant to the terms hereof.
"Condemnation" has the meaning specified in Section 7.8.
"Consolidated Interest Expense" means, for any period, the aggregate
amount of interest, including payments in the nature of interest under
Capitalized Lease Obligations and the discount or implied interest component of
Off-Balance Sheet Liabilities payable by the Borrower and its Subsidiaries for
such period on a consolidated basis in accordance with GAAP.
"Consolidated Net Income" means, for any period, the consolidated net
income (or loss) of the Borrower and its Subsidiaries for such period determined
in accordance with GAAP; provided, that there shall be excluded from such amount
(i) the income (or loss) of any Affiliate of the Borrower or other Person (other
than a Subsidiary of the Borrower) in which any Person (other than the Borrower
or any of its Subsidiaries) has a joint interest, except to the extent of the
amount of dividends or other distributions actually paid to the Borrower or any
of its Subsidiaries by such Affiliate or other Person during such period and
(ii) the income (or loss) of any Person accrued prior to the date it becomes a
Subsidiary of the Borrower or is merged into or consolidated with the Borrower
or any of its Subsidiaries or that Person's assets are acquired by the Borrower
or any of its Subsidiaries.
"Consolidated Net Worth" means, as of the date of any determination
thereof, the consolidated shareholders' equity of the Borrower and its
Subsidiaries determined in accordance with GAAP.
"Consolidated Rentals" means, for any period, the aggregate rental
amounts payable by the Borrower and its Subsidiaries for such period under any
lease of Property having an original term (including any required renewals or
any renewals at the option of the lessor or lessee) of one year or more (but
does not include any amounts payable under Capitalized Leases), determined in
accordance with GAAP; provided, however, that there shall be excluded from such
calculation rentals in respect of discontinued operations and other store
closings reflected in the Borrower's consolidated financial statements (or the
footnotes thereto) to the extent such rentals relate to operations for which a
charge has been taken and/or reserve established in accordance with GAAP and
which do not exceed the amount of such charge and/or reserve, the amount of
which charge and/or reserve has been established consistent with GAAP.
"Consolidated Total Assets" means, as of the date of any determination
thereof, the total assets of the Borrower and its Subsidiaries on a consolidated
basis determined in accordance with GAAP.
"Contingent Obligation" of a Person means any agreement, written
undertaking or contractual arrangement by which such Person assumes, guarantees,
endorses, contingently agrees to purchase or provide funds for the payment of,
or otherwise becomes or is contingently liable upon, the financial or monetary
obligation or financial or monetary liability of any other Person (excluding
customary indemnification obligations arising from a purchase and sale agreement
negotiated at arm's length and typical for transactions of a similar nature), or
agrees in
4
writing to maintain the net worth or working capital or other financial
condition of any other Person, or otherwise assures any creditor of such other
Person in writing against loss, including, without limitation, any operating
agreement, take-or-pay contract or application for or reimbursement agreement
with respect to a letter of credit.
"Controlled Group" means all members of a controlled group of
corporations and all trades or businesses (whether or not incorporated) under
common control which, together with the Borrower or any of its Subsidiaries, are
treated as a single employer under Section 414 of the Code.
"Conversion/Continuation Notice" has the meaning specified in Section
2.7.
"Credit Ratings" has the meaning specified in Section 2.18.
"Default" means an event described in Article VII.
"Designated Lender" means, with respect to each Designating Lender,
each Eligible Designee designated by such Designating Lender pursuant to Section
12.4(a).
"Designating Lender" means, with respect to each Designated Lender,
the Lender that designated such Designated Lender pursuant to such Section
12.4(a).
"Disqualified Stock" means, for any Person, any capital stock of such
Person that, by its terms (or by the terms of any security into which it is
convertible or for which it is exchangeable), or upon the happening of any
event, matures or is mandatorily redeemable, pursuant to a sinking fund
obligation or otherwise, or redeemable at the option of the holder thereof, in
whole or in part, on or prior to the date that is ninety-one (91) days after the
Facility Termination Date.
"Dollars" and "$" mean the lawful money of the United States.
"EBITDAR" for any period means the sum, without duplication, of (a)
Consolidated Net Income during such period, plus (to the extent deducted in
determining Consolidated Net Income) (b) all provisions for any foreign,
federal, state and local taxes paid or accrued by the Borrower or any of its
Subsidiaries during such period, plus (to the extent deducted in determining
Consolidated Net Income) (c) Consolidated Interest Expense of the Borrower or
any of its Subsidiaries during such period, minus (to the extent included in
determining Consolidated Net Income) (d) extraordinary gains (and any unusual
gains whether or not arising in the ordinary course of business not included in
extraordinary gains) to the extent not included in income from continuing
operations, plus (to the extent deducted in determining Consolidated Net Income)
(e) consolidated depreciation, plus (to the extent deducted in determining
Consolidated Net Income) (f) consolidated amortization expense, including
without limitation, amortization of goodwill and other intangible assets and
other non-cash charges but excluding reserves, plus (to the extent deducted in
determining Consolidated Net Income) (g) Consolidated Rentals, plus (to the
extent deducted in determining Consolidated Net Income) (h) extraordinary
losses; all of such items as determined in accordance with GAAP.
5
"Eligible Designee" means a special purpose corporation, partnership,
limited partnership or limited liability company that is administered or
sponsored by a Lender or an Affiliate of a Lender and (i) is organized under the
laws of the United States or any state thereof, (ii) is engaged primarily in
making, purchasing or otherwise investing in commercial loans in the ordinary
course of its business and (iii) issues (or the parent of which issues)
commercial paper rated at least A-1 or the equivalent thereof by S&P or P-1 or
the equivalent thereof by ▇▇▇▇▇'▇.
"Eligible Participant" means (i) a Lender or any Affiliate thereof
which is a commercial bank, (ii) any other commercial bank having capital and
surplus in excess of $100,000,000 or (iii) an Eligible Designee.
"Environmental, Health or Safety Requirements of Law" means all
Requirements of Law derived from or relating to federal, state and local laws or
regulations relating to or addressing pollution or protection of the
environment, or protection of worker health or safety, including, but not
limited to, the Comprehensive Environmental Response, Compensation and Liability
Act, 42 U.S.C. Section 9601 et seq., the Occupational Safety and Health Act of
1970, 29 U.S.C. Section 651 et seq., and the Resource Conservation and Recovery
Act of 1976, 42 U.S.C. Section 6901 et seq., in each case including any
amendments thereto, any successor statutes, and any regulations or guidance
promulgated thereunder, and any state or local equivalent thereof.
"ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and any rule or regulation issued thereunder.
"Eurodollar Advance" means a Syndicated Advance denominated in Dollars
that bears interest at a Eurodollar Rate.
"Eurodollar Applicable Margin" means, from time to time, the
Eurodollar Applicable Margin set forth in Section 2.18.
"Eurodollar Base Rate" means, with respect to a Eurodollar Advance for
the relevant Eurodollar Interest Period, the applicable British Bankers'
Association Interest Settlement Rate for deposits in Dollars appearing on
Reuters Screen FRBD as of 11:00 a.m. (London time) two Business Days prior to
the first day of such Eurodollar Interest Period, and having a maturity equal to
such Eurodollar Interest Period, provided that, (i) if Reuters Screen FRBD is
not available to the Administrative Agent for any reason, the applicable
Eurodollar Base Rate for the relevant Eurodollar Interest Period shall instead
be the applicable British Bankers' Association Interest Settlement Rate for
deposits in Dollars as reported by any other generally recognized financial
information service as of 11:00 a.m. (London time) two Business Days prior to
the first day of such Eurodollar Interest Period and having a maturity equal to
such Eurodollar Interest Period, and (ii) if no such British Bankers'
Association Interest Settlement Rate is available to the Administrative Agent,
the applicable Eurodollar Base Rate for the relevant Eurodollar Interest Period
shall instead be the rate determined by the Administrative Agent to be the rate
at which Bank of America or one of its affiliate banks offers to place deposits
in Dollars with first-class banks in the London interbank market at
approximately 11:00 a.m. (London time) two Business Days prior to the first day
of such Eurodollar Interest Period, in the approximate amount of Bank of
America's relevant Eurodollar Advance, and having a maturity equal to such
Eurodollar Interest Period.
6
"Eurodollar Interest Period" means, with respect to a Eurodollar
Advance, a period of one, two, three, six or, if available to all Lenders,
twelve months commencing on a Business Day selected by the Borrower pursuant to
this Agreement. Such Eurodollar Interest Period shall end on (but exclude) the
day which corresponds numerically to such date one, two, three, six or twelve
months thereafter, unless there is no such numerically corresponding day in such
next, second, third, sixth or twelfth succeeding month, in which case such
Eurodollar Interest Period shall end on the last Business Day of such next,
second, third, sixth or twelfth succeeding month. If a Eurodollar Interest
Period would otherwise end on a day which is not a Business Day, such Eurodollar
Interest Period shall end on the next succeeding Business Day, unless said next
succeeding Business Day falls in a new calendar month, in which case such
Eurodollar Interest Period shall end on the immediately preceding Business Day.
"Eurodollar Loan" means a Syndicated Loan denominated in Dollars which
bears interest at the Eurodollar Rate.
"Eurodollar Rate" means, with respect to a Eurodollar Advance for the
relevant Eurodollar Interest Period, the sum of (a) the quotient of (i) the
Eurodollar Base Rate applicable to such Eurodollar Interest Period, divided by
(ii) one minus the Reserves (expressed as a decimal) applicable to such
Eurodollar Interest Period, plus (b) the Eurodollar Applicable Margin in effect
from time to time during such Eurodollar Interest Period. The Eurodollar Rate
shall be rounded to the next higher multiple of 1/100 of 1% if the rate is not
such a multiple.
"Existing Credit Agreements" means, collectively, (i) that certain
364-Day Credit Agreement dated as of March 26, 2002 among the Borrower, the
financial institutions named therein, BNY, as successor administrative agent to
▇▇▇▇ ▇▇▇, ▇▇, ▇▇▇▇▇▇▇▇ and Bank of America, as successor syndication agents to
Fleet National Bank and BNY and KeyBank and Union Bank of California, as
successor documentation agents to Bank of America and ▇▇ ▇▇▇▇▇▇, as amended from
time to time, and (ii) that certain 5-Year Revolving Credit Agreement dated as
of March 26, 2002 among the Borrower, the financial institutions named therein,
Bank One, NA, as administrative agent, Fleet National Bank and BNY, as
syndication agents, and Bank of America and JPMorgan, as documentation agents,
as amended from time to time.
"Facility Termination Date" means May 5, 2009.
"Fair Value" means the value of the relevant asset determined in an
arm's-length transaction conducted in good faith between an informed and willing
buyer and an informed and willing seller under no compulsion to buy or sell.
"Federal Funds Effective Rate" means, for any day, an interest rate
per annum equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers on such day, as published for such day (or, if such day is not a
Business Day, for the immediately preceding 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 (rounded upward, if necessary, to a whole multiple of
1/100 of 1%) of the quotations at approximately 10:00 a.m. (New York time) on
such day on such transactions received by the Administrative Agent from three
Federal funds brokers of recognized standing selected by the Administrative
Agent in its sole discretion.
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"Fee Letters" means, collectively, (i) that certain fee letter dated
as of March 23, 2005 among the Borrower, the Syndication Agents and the
Arrangers (other than BAS), as amended, restated, supplemented or otherwise
modified from time to time; and (ii) that certain fee letter dated as of the
April 6, 2005 between the Borrower and the Administrative Agent, as amended,
restated, supplemented or otherwise modified from time to time.
"5-Year Revolving Credit Agreement" means that certain 5-Year
Revolving Credit Agreement dated as of May 5, 2005 among the Borrower, the
financial institutions named therein, Bank of America, N.A., as the
administrative agent thereunder, BNY and JPMorgan, as the syndication agents
thereunder, and Citizens Bank of Massachusetts, KeyBank National Association and
Union Bank of California, N.A., as the documentation agents thereunder, as the
same may be further amended, restated, supplemented or otherwise modified and as
in effect from time to time.
"Floating Rate" means, for any day, a rate per annum equal to the
Alternate Base Rate for such day, changing when and as the Alternate Base Rate
changes.
"Floating Rate Advance" means a Syndicated Advance denominated in
Dollars which bears interest at the Floating Rate.
"Floating Rate Loan" means a Syndicated Loan denominated in Dollars
which bears interest at the Floating Rate.
"Funded Debt" of any Person means, without duplication, all
obligations of such Person for money borrowed (whether or not such obligations
have a maturity in excess of one year) which in accordance with GAAP shall be
classified upon a balance sheet of such Person as liabilities of such Person,
and in any event shall include (a) all Capitalized Lease Obligations of such
Person and (b) all Contingent Obligations of such Person with respect to money
borrowed, but shall exclude (i) notes, bills and checks presented in the
ordinary course of business by such Person to banks for collection or deposit,
(ii) with reference to the Borrower and its Subsidiaries, all obligations of the
Borrower and its Subsidiaries of the character referred to in this definition to
the extent owing to the Borrower or any Subsidiary, (iii) bankers acceptances
which, in accordance with GAAP, are classified as accounts payable and (iv)
Contingent Obligations set forth on Schedule 6.14. Without in any way limiting
the foregoing, Funded Debt of the Borrower shall include all Syndicated Loans
outstanding under this Agreement and all "Syndicated Loans" outstanding under
and as defined in the 5-Year Revolving Credit Agreement.
"GAAP" means generally accepted accounting principles as in effect
from time to time in the United States. An Affiliate of the Borrower which is
consolidated with the accounts of the Borrower in accordance with GAAP shall for
all accounting and financial tests contained in this Agreement be treated as a
Subsidiary hereunder.
"Governmental Authority" means any country or nation, any political
subdivision of such country or nation, and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government of any country or nation or political subdivision thereof.
8
"Gross Negligence" means either recklessness or actions taken or
omitted with conscious indifference to or the complete disregard of
consequences. Gross Negligence does not mean the absence of ordinary care or
diligence, or an inadvertent act or inadvertent failure to act. If the term
"gross negligence" is used with respect to the Administrative Agent or any
Lender or any indemnitee in any of the Loan Documents, it shall have the meaning
set forth herein.
"Hedging Agreement" means any interest rate, commodity or foreign
currency exchange swap, cap or collar arrangement or any other derivative
product customarily offered by banks or other financial institutions to their
customers in order to reduce the exposure of such customers to interest rate and
exchange rate fluctuations.
"Indebtedness" of a Person means, without duplication, such Person's
(a) obligations for borrowed money, (b) obligations representing the deferred
purchase price of Property or services (other than (i) accounts payable and (ii)
bankers acceptances classified in accordance with GAAP as accounts payable, in
each case arising in the ordinary course of such Person's business payable on
terms customary in the trade), (c) obligations, whether or not assumed, secured
by Liens or payable out of the proceeds or production from Property now or
hereafter owned or acquired by such Person, (d) obligations which are evidenced
by notes, acceptances (to the extent not classified as accounts payable in
accordance with GAAP), or other similar instruments, (e) Capitalized Lease
Obligations, (f) obligations of such Person to purchase securities or other
property arising out of or in connection with the sale of the same or
substantially similar securities or property, (g) all Off-Balance Sheet
Liabilities of such Person, (h) net obligations in respect of Hedging Agreements
(to the extent a liability is created) (i) all Disqualified Stock and (j) any
other obligation in writing for borrowed money or financial accommodation with
respect to other items included in the definition of Indebtedness above which in
accordance with GAAP would be shown as a liability on the consolidated balance
sheet of such Person, but excluding, in any event, (i) amounts payable by such
Person in respect of covenants not to compete, and (ii) with reference to the
Borrower and its Subsidiaries, all obligations of the Borrower and its
Subsidiaries of the character referred to in this definition to the extent owing
to the Borrower or any Subsidiary of the Borrower.
"Indemnified Matters" has the meaning specified in Section 9.7(b).
"Indemnitees" has the meaning specified in Section 9.7(b).
"Intellectual Property" means (i) any and all intangible personal
property consisting of intellectual property, whether or not registered with any
governmental entity, including, without limitation, franchises, licenses,
patents, technology and know-how, copyrights, trademarks, trade secrets, service
marks, logos and trade names and (ii) any and all contract rights (including,
without limitation, applications for governmental registrations, license
agreements, trust agreements and assignment agreements) creating, evidencing or
conveying an interest or right in or to any of the intellectual property
described in the preceding clause (i).
"Interest Period" means a Eurodollar Interest Period.
"Investment" of a Person means any loan, advance (other than
commission, travel and other loans, credits and advances to officers and
employees made in the ordinary course of
9
business), extension of credit (other than accounts receivable arising in the
ordinary course of business on terms customary in the trade), deposit account or
contribution of capital by such Person to any other Person or any investment in,
or purchase or other acquisition of, the stock, partnership interests, ownership
interests in any limited liability company, notes, debentures or other
securities of any other Person made by such Person (other than anticipatory
prepayments to vendors in the ordinary course of business consistent with past
practice).
"JPMorgan" means JPMorgan Chase Bank, National Association, in its
individual capacity, and its successors.
"JPMorgan Securities" means JPMorgan Securities Inc., in its
individual capacity, and its successors.
"Lenders" means the lending institutions listed on the signature pages
of this Agreement and their respective successors and assigns.
"Lending Installation" means, with respect to a Lender, any office,
branch, subsidiary or affiliate of such Lender.
"Leverage Ratio" means, with respect to the last day of any fiscal
quarter, the ratio of:
(i) the sum of (a) Funded Debt of the Borrower and its Subsidiaries on
a consolidated basis, plus (b) an amount equal to the product of four (4)
multiplied by Consolidated Rentals for the period of four consecutive
fiscal quarters ending on such day to
(ii) EBITDAR of the Borrower and its Subsidiaries on a consolidated
basis for the period of four consecutive fiscal quarters ending on such
day.
"Lien" means any lien (statutory or other), mortgage, pledge,
hypothecation, assignment, deposit arrangement, encumbrance or preference,
priority or other security agreement or preferential arrangement of any kind or
nature whatsoever (including, without limitation, the interest of a vendor or
lessor under any conditional sale, Capitalized Lease or other title retention
agreement).
"Loan Documents" means this Agreement, any Syndicated Notes and all
other documents, instruments and agreements executed in connection therewith or
contemplated thereby, as the same may be amended, restated, supplemented or
otherwise modified and in effect from time to time.
"Material Adverse Effect" means a material adverse effect on (a) the
business, financial condition, operations, performance or Property of the
Borrower and its Subsidiaries on a consolidated basis, (b) the ability of the
Borrower to perform its obligations under the Loan Documents, or (c) the
validity or enforceability of any of the Loan Documents or any material rights
or remedies of the Administrative Agent or the Lenders thereunder.
10
"Material Indebtedness" means Indebtedness (including the net
obligations in respect of Hedging Agreements) which, individually, or in the
aggregate, exceeds $30,000,000.
"Moody's" means ▇▇▇▇▇'▇ Investors Service, Inc.
"Multiemployer Plan" means a Plan, if any, maintained pursuant to a
collective bargaining agreement or any other arrangement to which the Borrower
or any member of the Controlled Group is a party to which more than one
non-Affiliated employer is obligated to make contributions.
"Notice of Assignment" has the meaning specified in Section 12.3.2.
"Obligations" means all unpaid principal of and accrued and unpaid
interest on the Syndicated Loans, all accrued and unpaid fees and all expenses,
reimbursements, indemnities and other obligations of the Borrower to the Lenders
or to any Lender, the Administrative Agent or any indemnified party hereunder
arising under the Loan Documents.
"Off-Balance Sheet Liability" of a Person means (i) any repurchase
obligation or liability of such Person or any of its Subsidiaries with respect
to accounts or notes receivable sold by such Person or any of its Subsidiaries
(calculated to include the unrecovered investment of purchasers or transferees
of accounts or any other obligation of such Person or such transferor to
purchasers/transferees of interests in accounts or notes receivable or the agent
for such purchasers/transferees), (ii) any liability under any sale and
leaseback transaction which is not a Capitalized Lease, (iii) any liability
under any financing lease or Synthetic Lease or "tax ownership operating lease"
transaction entered into by such Person, including any Synthetic Lease
Obligations, or (iv) any obligation arising with respect to any other
transaction which is the functional equivalent of or takes the place of
borrowing but which does not constitute a liability on the balance sheets of
such Person, but excluding from this clause (iv) Operating Leases.
"Operating Lease" of a Person means any lease of Property (other than
a Capitalized Lease) by such Person as lessee.
"Participant" has the meaning specified in Section 12.2.1.
"Patriot Act" has the meaning specified in Article XV.
"Payment Office" means the principal office of the Administrative
Agent in Concord, California, located on the date hereof at ▇▇▇▇ ▇▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ or such other office of the Administrative
Agent as the Administrative Agent may from time to time designate by written
notice to the Borrower and the Lenders.
"PBGC" means the Pension Benefit Guaranty Corporation, or any
successor thereto.
"Permitted Acquisition" means any Acquisition made by the Borrower or
any of its Subsidiaries, provided that upon giving effect to each such
Acquisition (a) the Person so acquired by the Borrower shall have either been
merged into the Borrower or a Subsidiary (with
11
the Borrower or the Subsidiary as the surviving entity) or such Person shall
have become a Subsidiary of the Borrower; (b) no Default or Unmatured Default
shall exist; (c) the Acquisition is consummated on a non-hostile basis approved
by a majority of the board of directors or other governing body of the Person
being acquired; and (d) involves the purchase of a business line similar,
related, complementary or incidental to that of the Borrower and its
Subsidiaries as of the date of this Agreement.
"Person" means any natural person, corporation, firm, joint venture,
partnership, limited liability company, association, enterprise, trust or other
entity or organization, or any government or political subdivision or any
agency, department or instrumentality thereof.
"Plan" means an employee pension benefit plan which is covered by
Title IV of ERISA or subject to the minimum funding standards under Section 412
of the Code as to which the Borrower or any member of the Controlled Group may
have any liability.
"Prepayment Notice" has the meaning specified in Section 2.5.
"Prime Rate" means the per annum rate announced by the Administrative
Agent (or its parent) from time to time as its "prime rate" (it being
acknowledged that such announced rate is a rate set by the Administrative Agent
based on various factors including the Administrative Agent's costs and desired
return, general economic conditions and other factors, and is used as a
reference point for pricing some loans, which may be priced at, above or below
such announced rate), which prime rate shall change at the opening of business
on the day of any change in such announced rate.
"Pro Rata Share" means, with respect to any Lender, the percentage
obtained by dividing (A) such Lender's Commitment at such time (as adjusted from
time to time in accordance with the provisions of this Agreement) by (B) the
Aggregate Commitment at such time; provided, that if the Commitments are
terminated pursuant to the terms of this Agreement, then "Pro Rata Share" means
the percentage obtained by dividing (x) the sum of each Lender's Syndicated
Loans by (y) the aggregate amount of all Syndicated Loans.
"Property" of a Person means any and all property, whether real,
personal, tangible, intangible, or mixed, of such Person, or other assets owned,
leased or operated by such Person.
"Purchasers" has the meaning specified in Section 12.3.1.
"Rated Debt" means the Borrower's senior unsecured non-credit-enhanced
long-term Indebtedness, which Indebtedness does not benefit from guaranties or
other credit enhancement provided by any of the Borrower's Subsidiaries.
"Regulation D" means Regulation D of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor thereto
or other regulation or official interpretation of said Board of Governors
relating to reserve requirements applicable to member banks of the Federal
Reserve System.
12
"Regulation T" means Regulation T of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor or other
regulation or official interpretation of said Board of Governors relating to the
extension of credit by and to brokers and dealers of securities for the purpose
of purchasing or carrying margin stocks.
"Regulation U" means Regulation U of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor or other
regulation or official interpretation of said Board of Governors relating to the
extension of credit by banks for the purpose of purchasing or carrying margin
stocks applicable to member banks of the Federal Reserve System.
"Regulation X" means Regulation X of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor or other
regulation or official interpretation of said Board of Governors relating to the
extension of credit by foreign lenders for the purpose of purchasing or carrying
margin stock (as defined therein).
"Reportable Event" means a reportable event as defined in Section 4043
of ERISA and the regulations issued under such section, with respect to a Plan,
excluding, however, such events as to which the PBGC by regulation waived the
requirement of Section 4043(a) of ERISA that it be notified within 30 days of
the occurrence of such event; provided, however, that a failure to meet the
minimum funding standard of Section 412 of the Code and of Section 302 of ERISA
shall be a Reportable Event regardless of the issuance of any such waiver of the
notice requirement in accordance with either Section 4043(a) of ERISA or Section
412(d) of the Code.
"Required Lenders" means Lenders having, in the aggregate, at least
51% of the Aggregate Commitment; provided, however, that in the event any of the
Lenders shall have failed to fund a portion of any Syndicated Advance requested
by the Borrower which such Lenders are obligated to fund under the terms of this
Agreement and any such failure has not been cured, then for so long as such
failure continues, "Required Lenders" means Lenders (excluding all such
defaulting Lenders) having, in the aggregate, at least 51% of the aggregate
Commitments of such non-defaulting Lenders; provided, further, however, that, if
the Aggregate Commitment has been terminated pursuant to the terms of this
Agreement, "Required Lenders" means Lenders (without regard to such Lenders'
performance of their respective obligations hereunder) whose aggregate
outstanding principal balance of all Syndicated Loans is equal to or greater
than 51%.
"Requirements of Law" means, as to any Person, the charter and by-laws
or other organizational or governing documents of such Person, and any law, rule
or regulation, or determination of an arbitrator or a court or other
Governmental Authority, in each case applicable to or binding upon such Person
or any of its property or to which such Person or any of its property is subject
including, without limitation, the Securities Act of 1933, as amended, the
Securities Exchange Act of 1934, as amended, Regulations T, U and X, ERISA, the
Fair Labor Standards Act, the Worker Adjustment and Retraining Notification Act,
Americans with Disabilities Act of 1990, and any certificate of occupancy,
zoning ordinance, building, environmental or land use requirement or permit or
environmental, labor, employment, occupational safety or health law, rule or
regulation, including Environmental, Health or Safety Requirements of Law.
13
"Reserves" means, with respect to a Eurodollar Interest Period, the
maximum aggregate reserves (including all basic, supplemental, marginal and
other reserves) imposed under Regulation D on Eurocurrency liabilities.
"Risk-Based Capital Guidelines" has the meaning specified in Section
3.2.
"S&P" means Standard & Poor's Ratings Group, a division of The
▇▇▇▇▇▇-▇▇▇▇ Companies, Inc.
"Sale and Leaseback Transaction" means any sale or other transfer of
Property by any Person with intent to lease such Property as lessee pursuant to
a Capitalized Lease.
"Section" means a numbered section of this Agreement, unless another
document is specifically referenced.
"Single Employer Plan" means a Plan, if any, maintained by the
Borrower or any member of the Controlled Group for employees of the Borrower or
any member of the Controlled Group. The term "Single Employer Plan" does not
include any Multiemployer Plan.
"Specified Remittance Time" means (a) if the relevant Payment Office
is located in New York, New York, 2:00 p.m. (New York time) and (b) if the
relevant Payment Office is located elsewhere, such time as the Administrative
Agent shall specify after consultation with the Lenders and the consent of the
Borrower, which consent shall not be unreasonably withheld.
"Subsidiary" of a Person means (a) any corporation more than 50% of
the outstanding securities having ordinary voting power of which shall at the
time be owned or controlled, directly or indirectly, by such Person or by one or
more of its Subsidiaries or by such Person and one or more of its Subsidiaries,
or (b) any partnership, limited liability company, association, joint venture or
similar business organization more than 50% of the ownership interests having
ordinary voting power of which shall at the time be so owned or controlled.
Unless otherwise expressly provided, all references herein to a "Subsidiary"
shall mean a Subsidiary of the Borrower.
"Substantial Portion" means, with respect to the Property of any
Person and its Subsidiaries, Property which:
(a) when aggregated with all other Property in accordance with Section
6.11 (i) represents more than 15% of the consolidated assets of such Person and
its Subsidiaries as would be shown in the consolidated financial statements of
such Person and its Subsidiaries as at the beginning of the fiscal year in which
such determination is made, or (ii) is responsible for more than 15% of the
consolidated net sales of such Person and its Subsidiaries as reflected in the
financial statements referred to in clause (i) above; or
(b) in any individual transaction or series of related transactions
(i) represents more than 10% of the consolidated assets of such Person and its
Subsidiaries as would be shown in the consolidated financial statements of such
Person and its Subsidiaries as at the beginning of the fiscal year in which such
determination is made, or (ii) is responsible for more than 10% of
14
the consolidated net sales of such Person and its Subsidiaries as reflected in
the financial statements referred to in clause (i) above.
"Syndicated Advance" means a borrowing consisting of simultaneous
Syndicated Loans of the same Type made to the Borrower by each of the Lenders
pursuant to Section 2.1, and, in the case of Eurodollar Advances, for the same
Interest Period.
"Syndicated Advance Borrowing Notice" has the meaning specified in
Section 2.6.
"Syndicated Loan" means a loan by a Lender to the Borrower as part of
a Syndicated Advance.
"Syndicated Note" means a promissory note of the Borrower payable to
the order of any Lender, in substantially the form of Exhibit A hereto,
evidencing the aggregate indebtedness of the Borrower to such Lender resulting
from the Syndicated Loans made by such Lender to the Borrower.
"Syndication Agents" means, collectively, BNY and JPMorgan, and their
respective successors and assigns.
"Synthetic Lease" means a so-called "synthetic" lease that is not
treated as a capital lease under GAAP, but that is treated as a financing under
the Code.
"Synthetic Lease Obligations" means, collectively, the payment
obligations of the Borrower or any of its Subsidiaries pursuant to a Synthetic
Lease.
"Transferee" has the meaning specified in Section 12.5.
"Type" means, (a) with respect to any Syndicated Loan, its nature as a
Floating Rate Loan or a Eurodollar Loan and (b) with respect to any Syndicated
Advance, its nature as a Floating Rate Advance or a Eurodollar Advance.
"Unfunded Liabilities" means the amount (if any) by which the present
actuarial value of all vested nonforfeitable benefits under all Single Employer
Plans (based on the actuarial assumptions for each such plan) exceeds the Fair
Value of all such Plan assets allocable to such benefits, all determined as of
the then most recent valuation date for such Plans.
"United States" and "U.S." mean the United States of America.
"Unmatured Default" means an event which but for the lapse of time or
the giving of notice, or both, would constitute a Default.
"Wholly-Owned Subsidiary" of a Person means (a) any Subsidiary all of
the outstanding voting securities of which (other than directors qualifying
shares and shares required by applicable corporate law to be owned by foreign
nationals) shall at the time be owned or controlled, directly or indirectly, by
such Person or one or more Wholly-Owned Subsidiaries of such Person, or by such
Person and one or more Wholly-Owned Subsidiaries of such Person, or
15
(b) any partnership, association, joint venture or similar business organization
100% of the ownership interests having ordinary voting power of which (other
than directors qualifying shares and shares required by applicable corporate law
to be owned by foreign nationals) shall at the time be so owned or controlled.
ARTICLE II
THE CREDITS
2.1 The Syndicated Loans.
From and including the date of this Agreement and prior to the
Facility Termination Date, each Lender severally agrees, on the terms and
conditions set forth in this Agreement (including, without limitation, the terms
and conditions of Section 2.9 and Section 8.1 relating to the reduction,
suspension or termination of the Aggregate Commitment), to make Syndicated Loans
to the Borrower from time to time in an aggregate amount not to exceed at any
one time outstanding the amount of such Lender's Commitment. Subject to the
terms of this Agreement (including, without limitation, the terms and conditions
of Section 2.9 and Section 8.1 relating to the reduction, suspension or
termination of the Aggregate Commitment), the Borrower may borrow, repay and
reborrow Syndicated Loans at any time prior to the Facility Termination Date.
Unless earlier terminated in accordance with the terms and conditions of this
Agreement, the Commitments of the Lenders to lend hereunder shall expire on the
Facility Termination Date.
2.2 Repayment of the Syndicated Loans.
Any outstanding Syndicated Loans shall be paid in full by the Borrower
on the Facility Termination Date; provided, however, that nothing in this
Section 2.2 shall be construed as limiting or modifying the obligation of the
Borrower to repay any or all of the outstanding Syndicated Loans at any earlier
time in accordance with the terms of this Agreement.
2.3 Ratable Syndicated Loans; Types of Syndicated Advances.
Each Syndicated Advance hereunder shall consist of Syndicated Loans
made from the several Lenders ratably in proportion to their respective Pro Rata
Shares of the Aggregate Commitment. Any Syndicated Advance may be a Floating
Rate Advance or a Eurodollar Advance, as the Borrower shall select in accordance
with Sections 2.6 and 2.7.
2.4 Minimum Amount of Each Syndicated Advance.
Each Eurodollar Advance shall be in the minimum amount of $15,000,000
(and an integral multiple of $5,000,000 if in excess thereof) and each Floating
Rate Advance shall be in the minimum amount of $10,000,000 (and an integral
multiple of $1,000,000 if in excess thereof); provided, however, that any
Syndicated Advance that is a Floating Rate Advance may be in the amount of the
unused Aggregate Commitment.
16
2.5 Optional Prepayments of Syndicated Loans.
Subject to Section 3.4 and the requirements of Section 2.4, the
Borrower may (a) following notice given to the Administrative Agent by the
Borrower, in the form attached hereto as Exhibit G (a "Prepayment Notice") by
not later than 2:00 p.m. (New York time) on the date of the proposed prepayment,
such notice specifying the aggregate principal amount of and the proposed date
of the prepayment, and if such notice is given the Borrower shall, prepay the
outstanding principal amounts of the Floating Rate Loans comprising part of the
same Syndicated Advance in whole or ratably in part, together with accrued
interest to the date of such prepayment on the principal amount prepaid and (b)
following a Prepayment Notice given to the Administrative Agent by the Borrower
by not later than 2:00 p.m. (New York time) on, if the Syndicated Advance to be
prepaid is a Eurodollar Advance, the third Business Day preceding the date of
the proposed prepayment, such notice specifying the Syndicated Advance to be
prepaid and the proposed date of the prepayment, and, if such notice is given,
such Borrower shall, prepay the outstanding principal amounts of the Eurodollar
Loans comprising a Eurodollar Advance in whole (and not in part), together with
accrued interest to the date of such prepayment on the principal amount prepaid.
In the case of a Floating Rate Advance, each partial prepayment shall be in an
aggregate principal amount not less than $10,000,000 (and an integral multiple
of $1,000,000 if in excess thereof).
2.6 Method of Selecting Types and Interest Periods for New Syndicated
Advances.
The Borrower shall select the Type of each Syndicated Advance and, in
the case of a Eurodollar Advance, the Interest Period applicable to such
Syndicated Advance from time to time. The Borrower shall give the Administrative
Agent irrevocable notice, in the form attached hereto as Exhibit F (a
"Syndicated Advance Borrowing Notice"), not later than 12:00 p.m. (New York
time) (i) on the Borrowing Date for each Floating Rate Advance and (ii) at least
three Business Days before the Borrowing Date for each Eurodollar Advance,
specifying:
(a) the Borrowing Date, which shall be a Business Day, of such
Syndicated Advance,
(b) the aggregate amount of such Syndicated Advance,
(c) the Type of such Syndicated Advance, and
(d) in the case of each Eurodollar Advance, the Interest Period
applicable thereto.
Not later than the Specified Remittance Time on each Borrowing Date, each Lender
shall make available its Syndicated Loan or Syndicated Loans to the
Administrative Agent in immediately available funds at the relevant Payment
Office. To the extent that the Administrative Agent has received funds from the
Lenders as specified in the preceding sentence and the applicable conditions set
forth in Article IV have been fulfilled, the Administrative Agent will make such
funds available to the Borrower at the relevant Payment Office promptly
following the Specified Remittance Time, it being understood that, upon the
request and direction of the Borrower, the
17
Administrative Agent will make the applicable funds available to the Borrower by
depositing such funds to such account with Bank of America as the Borrower shall
designate.
2.7 Conversion and Continuation of Outstanding Syndicated Advances.
Floating Rate Advances shall continue as Floating Rate Advances unless
and until such Floating Rate Advances are converted into Eurodollar Advances or
prepaid pursuant to Section 2.5. Each Eurodollar Advance shall continue as a
Eurodollar Advance until the end of the then applicable Interest Period
therefor, at which time such Eurodollar Advance shall be automatically converted
into a Floating Rate Advance unless the Borrower shall have given the
Administrative Agent a Conversion/Continuation Notice requesting that, at the
end of such Interest Period, such Eurodollar Advance either continue as a
Eurodollar Advance for the same or another Interest Period or be converted into
a Syndicated Advance of another Type. Subject to the terms of Section 2.6, the
Borrower may elect from time to time to convert all or any part of a Syndicated
Advance of any Type into any other Type or Types of Syndicated Advances;
provided that any conversion of any Eurodollar Advance shall be made on, and
only on, the last day of the Interest Period applicable thereto. The Borrower
shall give the Administrative Agent irrevocable notice in the form of Exhibit H
hereto (a "Conversion/Continuation Notice") of each conversion of a Syndicated
Advance or continuation of a Eurodollar Advance not later than 12:00 p.m. (New
York time) (i) in the case of a conversion into a Floating Rate Advance on the
date of such conversion and (ii) in the case of a conversion into or
continuation of a Eurodollar Advance, at least three Business Days before the
date of such conversion or continuation, specifying:
(a) the requested date, which shall be a Business Day, of such
conversion or continuation;
(b) the aggregate amount and Type of the Syndicated Advance which is
to be converted or continued; and
(c) the amount and Type(s) of Syndicated Advance(s) into which such
Syndicated Advance is to be converted or continued and, in the case of a
conversion into or continuation of a Eurodollar Advance, the duration of the
Interest Period applicable thereto.
2.8 Payment of Interest on Syndicated Advances; Changes in Interest
Rate.
(a) Interest accrued on each Floating Rate Advance shall be payable in
arrears on the last Business Day of each fiscal quarter, on the Facility
Termination Date, on the date of the reduction of all or any part of the
Aggregate Commitment pursuant to Section 2.9 (solely with respect to such
reduced amount) and on the date on which this Agreement is terminated in full
and all of the Obligations hereunder have been paid in full pursuant to Section
2.2. Interest accrued on each Eurodollar Advance shall be payable in arrears on
the last day of its applicable Interest Period, on any date on which the
Eurodollar Advance is prepaid, whether by acceleration or otherwise, and at
maturity. Interest accrued on each Eurodollar Advance having an Interest Period
longer than three months shall also be payable on the last day of each
three-month interval during such Interest Period. Interest on Floating Rate
Advances shall be calculated for actual days elapsed on the basis of a 365/366
-day year. Interest on Eurodollar Advances shall
18
be calculated for actual days elapsed on the basis of a 360-day year. Interest
shall be payable for the day a Syndicated Advance is made but not for the day of
any payment on the amount paid if payment is received prior to 2:00 p.m. (New
York time) at the place of payment. If any payment of principal of or interest
on a Syndicated Advance shall become due on a day which is not a Business Day,
such payment shall be made on the next succeeding Business Day and, in the case
of a principal payment, such extension of time shall be included in computing
interest in connection with such payment.
(b) Each Floating Rate Advance shall bear interest on the outstanding
principal amount thereof, for each day from and including the date such Floating
Rate Advance is made or is converted from a Eurodollar Advance into a Floating
Rate Advance pursuant to Section 2.7 to but excluding the date it becomes due or
is converted into a Eurodollar Advance pursuant to Section 2.7, at a rate per
annum equal to the Floating Rate for such day. Changes in the rate of interest
on each Syndicated Advance maintained as a Floating Rate Advance will take
effect simultaneously with each change in the Alternate Base Rate. Each
Eurodollar Advance shall bear interest from and including the first day of the
Interest Period applicable thereto to (but not including) the last day of such
Interest Period at the Eurodollar Rate determined as applicable to such
Eurodollar Advance. No Interest Period may end after the Facility Termination
Date.
2.9 Facility Fee; Utilization Fee; Adjustments in Aggregate
Commitment.
(a) Facility Fee. The Borrower agrees to pay to the Administrative
Agent for the account of each Lender a facility fee at a rate per annum equal to
the Applicable Facility Fee Rate in effect from time to time on such Lender's
Commitment (determined without giving effect to any usage of the Commitments),
whether used or unused, from the date hereof until the date on which this
Agreement is terminated in full and all of the Obligations hereunder have been
paid in full pursuant to Section 2.2. Such facility fees shall be payable in
arrears on the last Business Day of each March, June, September and December, on
the Facility Termination Date, on the date of the reduction of all or any part
of the Aggregate Commitment pursuant to Section 2.9(c) (solely with respect to
such reduced amount) and on the date on which this Agreement is terminated in
full and all of the Obligations hereunder have been paid in full pursuant to
Section 2.2. Facility fees shall be calculated for actual days elapsed on the
basis of a 360-day year.
(b) Utilization Fee. For each day from and after the date hereof on
which the Combined Utilized Amount exceeds fifty percent (50%) of the Combined
Commitment, the Borrower agrees to pay to the Administrative Agent, for the
ratable account of each Lender, a utilization fee at a rate per annum equal to
the Applicable Utilization Fee Rate in effect from time to time on the sum of
all Syndicated Loans, payable from the date hereof until the date on which this
Agreement is terminated in full and all of the Obligations hereunder have been
paid in full pursuant to Section 2.2. Such utilization fees shall be payable in
arrears on the last Business Day of each March, June, September and December, on
the Facility Termination Date, on the date of the reduction of all or any part
of the Aggregate Commitment pursuant to Section 2.9(c) and on the date on which
this Agreement is terminated in full and all of the Obligations hereunder have
been paid in full pursuant to Section 2.2. Utilization fees shall be calculated
for actual days elapsed on the basis of a 360-day year.
19
(c) Reductions in Aggregate Commitment. The Borrower may permanently
reduce the Aggregate Commitment in whole or in part ratably among the Lenders in
a minimum amount of $15,000,000 and integral multiples of $2,500,000 in excess
thereof, upon at least two Business Days' written notice to the Administrative
Agent, which notice shall specify the amount of any such reduction; provided,
however, that the amount of the Aggregate Commitment may not be reduced below
the aggregate principal amount of the outstanding Syndicated Advances.
(d) Increase of Aggregate Commitment. At any time the Borrower may, on
the terms set forth below, request that the Aggregate Commitment hereunder be
increased; provided, that (i) the Aggregate Commitment hereunder at no time
shall exceed $550,000,000, (ii) the Combined Commitment at no time shall exceed
$1,100,000,000, (iii) each such request shall be in a minimum amount of at least
$10,000,000 and in increments of $5,000,000 in excess thereof, (iv) an increase
in the Aggregate Commitment hereunder may only be made at a time when no Default
or Unmatured Default shall have occurred and be continuing, (v) each Lender
shall be offered a pro rata share of any requested increase prior to the
Borrower, the Administrative Agent and the Syndication Agents inviting any
additional financial institutions to become a Lender hereunder, and (vi) no
Lender's Commitment shall be increased under this Section 2.9(d) without its
consent. In the event of such a requested increase in the Aggregate Commitment,
any financial institution which the Borrower, the Administrative Agent and the
Syndication Agents invite to become a Lender or to increase its Commitment may
set the amount of its Commitment at a level agreed to by the Borrower, the
Administrative Agent and the Syndication Agents. In the event that the Borrower
and one or more of the Lenders (or other financial institutions) shall agree
upon such an increase in the Aggregate Commitment (i) the Borrower, the
Administrative Agent and each Lender or other financial institution increasing
its Commitment or extending a new Commitment shall enter into an amendment to
this Agreement setting forth the amounts of the Commitments, as so increased,
providing that the financial institutions extending new Commitments shall be
Lenders for all purposes under this Agreement, and setting forth such additional
provisions as the Administrative Agent shall consider reasonably appropriate and
(ii) the Borrower shall furnish, if requested, a new Syndicated Note to each
financial institution that is extending a new Commitment or increasing its
Commitment. No such amendment shall require the approval or consent of any
Lender whose Commitment is not being increased. Upon the execution and delivery
of such amendment as provided above, and upon satisfaction of such other
conditions as the Administrative Agent may reasonably specify upon the request
of the financial institutions that are extending new Commitments (including,
without limitation, the Administrative Agent administering the reallocation of
any outstanding Syndicated Loans ratably among the Lenders after giving effect
to each such increase in the Aggregate Commitment, and the delivery of
certificates, evidence of corporate authority and legal opinions on behalf of
the Borrower), this Agreement shall be deemed to be amended accordingly.
2.10 Rates Applicable After Default.
Notwithstanding anything to the contrary contained in Section 2.8,
during the continuance of a Default or Unmatured Default no Syndicated Advance
may be made as, converted into or continued past the end of the applicable
Interest Period as a Eurodollar Advance. During the continuance of a Default
upon notice given to the Borrower by the
20
Administrative Agent, each Syndicated Advance shall bear interest until paid in
full at a rate per annum equal to the then-applicable rate of interest, as the
case may be, plus two percent (2.0%) per annum.
2.11 Method of Payment.
All payments of the Obligations hereunder shall be made, without
setoff, recoupment, deduction, or counterclaim, in immediately available funds
to the Administrative Agent at the Administrative Agent's address specified
pursuant to Article XIII, or at any other Lending Installation of the
Administrative Agent specified in writing by the Administrative Agent to the
Borrower, by 1:00 p.m. (New York time) on the date when due and shall be
remitted by the Administrative Agent to the Lenders according to their
respective interests therein. Each payment delivered to the Administrative Agent
for the account of any Lender shall be delivered promptly by the Administrative
Agent to such Lender in the same type of funds that the Administrative Agent
received at its address specified pursuant to Article XIII or at any Lending
Installation specified in a notice received by the Administrative Agent from
such Lender. The Administrative Agent is hereby authorized, but is not
obligated, to charge the accounts of the Borrower maintained with Bank of
America into which proceeds of Syndicated Advances are remitted pursuant to
Section 2.6 for each payment of interest and fees as it becomes due hereunder,
for each payment of principal, in accordance with the applicable Prepayment
Notice or when otherwise due and payable in accordance with the terms hereof.
2.12 Evidence of Debt (Optional Syndicated Notes); Telephonic Notices.
(a) Evidence of Debt (Optional Syndicated Notes).
(i) Each Lender shall maintain in accordance with its usual
practice an account or accounts evidencing the indebtedness of the Borrower to
such Lender resulting from each Syndicated Loan made by such Lender from time to
time, including the amounts of principal and interest payable and paid to such
Lender from time to time hereunder.
(ii) The Administrative Agent shall also maintain accounts in
which it will record (a) the amount of each Syndicated Loan made hereunder, and,
to the extent applicable, the Type thereof and the interest period with respect
thereto, (b) the amount of any principal or interest due and payable or to
become due and payable from the Borrower to each Lender hereunder and (c) the
amount of any sum received by the Administrative Agent hereunder from the
Borrower and each Lender's share thereof.
(iii) The entries in the accounts maintained pursuant to clauses
(i) and (ii) above shall be prima facie evidence of the existence and amounts of
the Obligations therein recorded; provided, however, that the failure of the
Administrative Agent or any Lender to maintain such accounts or any error
therein shall not in any manner affect the obligation of the Borrower to repay
the Obligations in accordance with their terms. In the event of a conflict
between the accounts maintained by the Administrative Agent and the accounts
maintained by a Lender, the accounts maintained by the Administrative Agent
shall control in the absence of manifest error.
21
(iv) Any Lender may request that its Syndicated Loans be
evidenced by one or more Syndicated Notes. In such event, the Borrower shall
execute and deliver to such Lender the applicable Syndicated Note or Syndicated
Notes payable to the order of such Lender. Thereafter, the Syndicated Loans
evidenced by any such Syndicated Note and interest thereon shall at all times
(including after any assignment pursuant to Section 12.3) be represented by one
or more Syndicated Notes payable to the order of the payee named therein or any
assignee pursuant to Section 12.3, except to the extent that any such Lender or
assignee subsequently returns any such Syndicated Note for cancellation and
requests that such Syndicated Loans once again be evidenced as described in
clauses (i) and (ii) above.
(b) Telephonic Notices. The Borrower hereby authorizes the Lenders and
the Administrative Agent to extend, convert or continue Syndicated Advances and
effect selections of Types of Syndicated Advances based on telephonic notices
made by any person or persons the Administrative Agent in good faith believes to
be acting on behalf of the Borrower. The Borrower agrees to deliver promptly to
the Administrative Agent a written confirmation, if such confirmation is
requested by the Administrative Agent or any Lender, of each telephonic notice
signed by an Authorized Officer. If the written confirmation differs in any
material respect from the action taken by the Administrative Agent and the
Lenders, the records of the Administrative Agent of the relevant telephonic
notice shall govern absent manifest error.
2.13 Notification of Syndicated Advances, Interest Rates, Prepayments
and Commitment Reductions.
Promptly after receipt thereof, the Administrative Agent will notify
each Lender of the contents of each Aggregate Commitment reduction notice,
Syndicated Advance Borrowing Notice, Conversion/Continuation Notice and
Prepayment Notice received by it hereunder. The Administrative Agent will notify
each Lender of the interest rate applicable to each Eurodollar Advance promptly
upon determination of such interest rate and will give each Lender prompt notice
of each change in the Alternate Base Rate.
2.14 Lending Installations.
Each Lender may book its Syndicated Loans at any one or more Lending
Installations selected by such Lender and may change any such Lending
Installation from time to time. All terms of this Agreement shall apply to any
such Lending Installation and any Syndicated Notes requested by such Lender
shall be deemed held by such Lender for the benefit of such Lending
Installation. Each Lender may, by written or telex notice to the Administrative
Agent and the Borrower, designate a Lending Installation through which
Syndicated Loans will be made by it and for whose account Syndicated Loan
payments are to be made.
2.15 Non-Receipt of Funds by the Administrative Agent.
Unless the Borrower or a Lender, as the case may be, notifies the
Administrative Agent prior to the date on which it is scheduled to make payment
to the Administrative Agent of (a) in the case of a Lender, the proceeds of a
Syndicated Loan or (b) in the case of the Borrower, a payment of principal,
interest or fees to the Administrative Agent for the account of the Lenders,
that it does not intend to make such payment, the Administrative Agent may
assume
22
that such payment has been made. The Administrative Agent may, but shall not be
obligated to, make the amount of such payment available to the intended
recipient in reliance upon such assumption. If such Lender or the Borrower, as
the case may be, has not in fact made such payment to the Administrative Agent,
the recipient of such payment shall, on demand by the Administrative Agent,
repay to the Administrative Agent the amount so made available together with
interest thereon in respect of each day during the period commencing on the date
such amount was so made available by the Administrative Agent until the date the
Administrative Agent recovers such amount at a rate per annum equal to (a) in
the case of repayment by a Lender, the Federal Funds Effective Rate for such day
or (b) in the case of repayment by the Borrower, the interest rate applicable to
the relevant Syndicated Loan.
2.16 Withholding Tax Exemption.
At least five Business Days prior to the first date on which interest
or fees are payable hereunder for the account of any Lender, each Lender that is
not incorporated under the laws of the United States of America, or a state
thereof, agrees that it will deliver to each of the Borrower and the
Administrative Agent two duly completed copies of United States Internal Revenue
Service Form W-8BEN or W-8ECI, or successor applicable form, certifying in
either case that such Lender is entitled to receive payments under this
Agreement and the Syndicated Notes (if requested) without deduction or
withholding of any United States federal income taxes. Each Lender which so
delivers a Form W-8BEN or W-8ECI, or successor applicable form, further
undertakes to deliver to each of the Borrower and the Administrative Agent two
additional copies of such form (or any successor form or related form as may
from time to time be required under applicable law) on or before the date that
such form expires or becomes obsolete or after the occurrence of any event
requiring a change in the most recent forms so delivered by it, and such
amendments thereto or extensions or renewals thereof as may be reasonably
requested by the Borrower or the Administrative Agent, in each case certifying
that such Lender is entitled to receive payments under this Agreement and the
Syndicated Notes (if requested) without deduction or withholding of any United
States federal income taxes, unless an event (including without limitation any
change in treaty, law or regulation) has occurred prior to the date on which any
such delivery would otherwise be required which renders all such forms
inapplicable or which would prevent such Lender from duly completing and
delivering any such form with respect to it and such Lender advises the Borrower
and the Administrative Agent that it is not capable of receiving payments
without any deduction or withholding of United States federal income tax.
2.17 Termination.
All unpaid Obligations shall be paid in full by the Borrower on the
Facility Termination Date; provided, however, that nothing in this Section 2.17
shall be construed as limiting or modifying the obligation of the Borrower to
repay any or all of the outstanding Obligations at any earlier time in
accordance with the terms of this Agreement.
2.18 Pricing.
The Eurodollar Applicable Margin, the Applicable Facility Fee Rate and
the Applicable Utilization Fee Rate for any period shall be determined on the
basis of the publicly
23
announced ratings ("Credit Ratings") by ▇▇▇▇▇'▇ and S&P on the Borrower's Rated
Debt during such period, in each case in accordance with the table set forth
below, to change when and as such Credit Ratings change. For purposes of
determining the Applicable Margin, the Applicable Facility Fee Rate and the
Applicable Utilization Fee Rate with respect to any period:
(i) Any change in the Credit Rating shall be deemed to become
effective on the date of public announcement thereof and shall remain in effect
until the date of public announcement that such Credit Rating shall no longer be
in effect. If any change in Credit Rating occurs during an Interest Period, the
new Eurodollar Applicable Margin, Applicable Facility Fee Rate and Applicable
Utilization Fee Rate shall become effective from the date of the public
announcement.
(ii) If, during any period, either ▇▇▇▇▇'▇ or S&P shall not have
a publicly-announced Credit Rating with respect to the Borrower's Rated Debt,
the Credit Rating announced by the other rating agency with respect thereto
shall be used.
(iii) Except as provided below, in the event that the Credit
Ratings publicly announced by ▇▇▇▇▇'▇ and S&P with respect to the Borrower's
Rated Debt appear in more than one column of the table, the Eurodollar
Applicable Margin, the Applicable Facility Fee Rate and the Applicable
Utilization Fee Rate will be based on the column which includes the highest
rating; provided, however, that if there exists a differential of two or more
levels between the Credit Rating publicly announced by ▇▇▇▇▇'▇ and the Credit
Rating publicly announced by S & P, then the Credit Rating which is one level
below the higher announced Credit Rating will determine the Eurodollar
Applicable Margin, the Applicable Facility Fee Rate and the Applicable
Utilization Fee Rate.
(iv) If, during any period, neither ▇▇▇▇▇'▇ nor S&P shall have
publicly announced a Credit Rating with respect to the Borrower's Rated Debt,
the Eurodollar Applicable Margin, the Applicable Facility Fee Rate and the
Applicable Utilization Fee Rate shall be the margins set forth under the column
entitled "No Other Pricing Level Applies."
EURODOLLAR APPLICABLE MARGINS
APPLICABLE FACILITY FEE RATES
AND APPLICABLE UTILIZATION FEE RATES
(IN BASIS POINTS)
AT LEAST
AT LEAST A+ AT LEAST A AT LEAST A- BBB+ FROM AT LEAST BBB NO OTHER
FROM S&P OR FROM S&P OR FROM S&P OR S&P OR BAA1 FROM S&P OR PRICING
CREDIT A1 FROM A2 FROM A3 FROM FROM BAA2 FROM LEVEL
RATINGS ▇▇▇▇▇'▇ ▇▇▇▇▇'▇ ▇▇▇▇▇'▇ ▇▇▇▇▇'▇ ▇▇▇▇▇'▇ APPLIES
--------------- ----------- ----------- ----------- ----------- ------------ --------
Eurodollar
Applicable
Margin 13.5 17.5 29.0 40.0 61.5 84.0
24
AT LEAST
AT LEAST A+ AT LEAST A AT LEAST A- BBB+ FROM AT LEAST BBB NO OTHER
FROM S&P OR FROM S&P OR FROM S&P OR S&P OR BAA1 FROM S&P OR PRICING
CREDIT A1 FROM A2 FROM A3 FROM FROM BAA2 FROM LEVEL
RATINGS ▇▇▇▇▇'▇ ▇▇▇▇▇'▇ ▇▇▇▇▇'▇ ▇▇▇▇▇'▇ ▇▇▇▇▇'▇ APPLIES
--------------- ----------- ----------- ----------- ----------- ------------ --------
Applicable
Facility Fee 6.5 7.5 8.5 10.0 13.5 16.0
Applicable
Utilization Fee
Rate 10.0 10.0 10.0 10.0 10.0 10.0
ARTICLE III
CHANGE IN CIRCUMSTANCES
3.1 Yield Protection.
If any law or any governmental or quasi-governmental rule, regulation,
policy, guideline or directive (whether or not having the force of law), or any
interpretation thereof, or the compliance by any Lender therewith,
(a) subjects any Lender or any applicable Lending Installation to any
tax, duty, charge or withholding on or from payments due from the Borrower
(excluding federal taxation of the overall net income of any Lender, franchise
taxes and branch profit taxes), or changes the basis of taxation of payments to
any Lender or any applicable Lending Installation in respect of its Syndicated
Loans or other amounts due it hereunder, or
(b) imposes or increases or deems applicable any reserve, assessment,
insurance charge, special deposit or similar requirement against assets of,
deposits with or for the account of, or credit extended by, any Lender or any
applicable Lending Installation (other than reserves and assessments taken into
account in determining the interest rate applicable to Eurodollar Advances), or
(c) imposes any other condition, in each case, the result of which is
to increase the cost to any Lender or any applicable Lending Installation of
making, funding or maintaining Syndicated Loans or reduces any amount receivable
by any Lender or any applicable Lending Installation in connection with
Syndicated Loans, or requires any Lender or any applicable Lending Installation
to make any payment calculated by reference to the amount of Syndicated Loans
held, or interest received by it, by an amount deemed material by such Lender,
then, within 15 days of demand by such Lender, the Borrower shall pay such
Lender that portion of such increased expense incurred or reduction in an amount
received which such Lender reasonably determines is attributable to making,
funding and maintaining its Syndicated Loans and its Commitment.
3.2 Changes in Capital Adequacy Regulations.
If a Lender determines that the amount of capital required or expected
to be maintained by such Lender, any Lending Installation of such Lender or any
corporation
25
controlling such Lender is increased as a result of a Change (as defined below
in this Section 3.2), then, within 15 days of demand by such Lender, the
Borrower shall pay such Lender the amount necessary to compensate for any
shortfall in the rate of return on the portion of such increased capital which
such Lender reasonably determines is attributable to this Agreement, its
Syndicated Loans or its obligation to make Syndicated Loans hereunder (after
taking into account such Lender's or such controlling corporation's policies as
to capital adequacy). "Change" means (a) any change after the date of this
Agreement in the Risk-Based Capital Guidelines (as defined below in this Section
3.2) or (b) any adoption of or change in any other law, governmental or
quasi-governmental rule, regulation, policy, guideline, interpretation, or
directive (whether or not having the force of law) after the date of this
Agreement which affects the amount of capital required or expected to be
maintained by any Lender or any Lending Installation or any corporation
controlling any Lender. "Risk-Based Capital Guidelines" means (a) the risk-based
capital guidelines in effect in the United States on the date of this Agreement,
including transition rules, and (b) the corresponding capital regulations
promulgated by regulatory authorities outside the United States implementing the
July 1988 report of the Basle Committee on Banking Regulation and Supervisory
Practices Entitled "International Convergence of Capital Measurements and
Capital Standards," including transition rules, and any amendments to such
regulations adopted prior to the date of this Agreement. Each Lender agrees
promptly to notify the Borrower and the Administrative Agent of any
circumstances that would cause the Borrower to pay additional amounts pursuant
to this Section 3.2, provided that, except as set forth in Section 3.5(b), the
failure to give such notice shall not affect the Borrower's obligation to pay
such additional amounts hereunder.
3.3 Availability of Types of Syndicated Advances.
If any Lender reasonably determines that maintenance of its Eurodollar
Loans at a suitable Lending Installation would violate any applicable law, rule,
regulation, or directive, whether or not having the force of law, or if the
Required Lenders reasonably determine that (a) deposits of a type and maturity
appropriate to match fund Eurodollar Advances are not available or (b) the
interest rate applicable to a Type of Syndicated Advance does not accurately
reflect the cost of making or maintaining such Syndicated Advance, then the
Administrative Agent shall suspend the availability of the affected Type of
Syndicated Advance.
3.4 Funding Indemnification.
If any payment of a Eurodollar Advance occurs on a date which is not
the last day of the applicable Interest Period, whether because of acceleration,
prepayment, conversion or otherwise, or a Eurodollar Advance is not made
(whether by borrowing, continuation or conversion) on the date specified by the
Borrower for any reason other than default by the Lenders, or an optional
prepayment, notice of which has been given in accordance with Section 2.5, is
not made on the date specified therefor in such notice, the Borrower will
indemnify each Lender for any loss or cost incurred by it resulting therefrom,
including, without limitation, any loss or cost in liquidating or employing
deposits acquired to fund or maintain the Eurodollar Advance.
26
3.5 Mitigation; Lender Statements; Survival of Indemnity.
(a) To the extent reasonably possible, each Lender shall designate an
alternate Lending Installation with respect to its Eurodollar Loans to reduce
any liability of the Borrower to such Lender under Sections 3.1 and 3.2 or to
avoid the unavailability of a Type of Syndicated Advance under Section 3.3, so
long as such designation is not disadvantageous to such Lender in its reasonable
determination. If the obligation of the Lenders to make Eurodollar Advances has
been suspended pursuant to Section 3.3 as a consequence of a determination by
any Lender that maintenance of its Eurodollar Loans at a suitable Lending
Installation would violate any applicable law or any Lender has demanded
compensation under Section 3.1 or 3.2, the Borrower may elect (i) subject to
Section 3.4, to prepay any outstanding Syndicated Advances to the extent
necessary to mitigate its liability under Section 3.1 or 3.2, or (ii) to require
the applicable Lender to assign its outstanding Syndicated Loans and Commitment
hereunder to another financial institution designated by the Borrower and
reasonably acceptable to the Administrative Agent. The obligation of a Lender to
assign its rights and obligations hereunder as contemplated by this Section
3.5(a) is subject to the requirements that (x) all amounts owing to that Lender
under the Loan Documents are paid in full upon the completion of such assignment
and (y) any assignment is effected in accordance with the terms of Section 12.3
and on terms otherwise satisfactory to that Lender (it being understood that the
Borrower or the replacement Lender shall pay the processing fee payable to the
Administrative Agent pursuant to Section 12.3.2 in connection with any such
assignment).
(b) In determining the amounts payable under Sections 3.1, 3.2 or 3.4,
each Lender shall use its reasonable efforts to make its allocations and
computations, to the extent readily determinable, consistent with the
allocations and computations applied generally by such Lender to other customers
of similar size and credit quality and under similar circumstances. Each Lender
shall deliver a written statement of such Lender as to the amount due, if any,
under Section 3.1, 3.2 or 3.4. Such written statement shall set forth in
reasonable detail the calculations upon which such Lender determined such amount
and shall be final, conclusive and binding on the Borrower in the absence of
manifest error. Unless otherwise provided herein, the amount specified in the
written statement shall be payable not later than fifteen (15) days after
receipt by the Borrower of the written statement. The Borrower shall not be
liable for any amounts under Sections 3.1, 3.2 or 3.4 accruing more than 120
days prior to the receipt of a demand for payment therefor. The obligations of
the Borrower under Sections 3.1, 3.2 and 3.4 shall survive payment of the
Obligations and termination of this Agreement.
ARTICLE IV
CONDITIONS PRECEDENT
4.1 Effectiveness; Initial Syndicated Advance.
This Agreement shall become effective and the Lenders shall be
obligated to make the initial Syndicated Advance only after the Administrative
Agent shall have received from the Borrower, with sufficient copies (other than
in the case of any requested Syndicated Notes) for each of the Lenders, each of
the following items in form and substance satisfactory to the Administrative
Agent:
27
(a) a copy of the certificate of incorporation (or comparable
constitutive document) of the Borrower, together with all amendments thereto and
a certificate of good standing, certified by the appropriate governmental
officer of its jurisdiction of organization and by the Secretary, Assistant
Secretary, or other appropriate officer of the Borrower;
(b) copies, certified by the Secretary, Assistant Secretary or other
appropriate officer of the Borrower of its by-laws (or any comparable
constitutive laws, rules or regulations) and of its board of directors'
resolutions (and resolutions of other bodies, if any are deemed necessary by
counsel for any Lender) authorizing the execution of the Loan Documents;
(c) incumbency certificates, executed by the Secretary or Assistant
Secretary or other appropriate officer of the Borrower, which shall identify by
name and title and bear the signature of the officers of the Borrower authorized
to sign the Loan Documents and to make borrowings hereunder, as applicable, upon
which certificate the Administrative Agent and the Lenders shall be entitled to
rely until informed of any change in writing by the Borrower;
(d) a certificate, signed by the Chief Financial Officer, stating that
on the date hereof no Default or Unmatured Default has occurred and is
continuing;
(e) evidence of the payment of all fees required to be paid by the
Borrower pursuant to the Fee Letters;
(f) opinions of (i) Ropes & ▇▇▇▇ LLP, counsel to the Borrower, and
(ii) a Senior Vice President-Legal of the Borrower, substantially in the forms
attached as Exhibit B hereto;
(g) evidence of delivery of the 5-Year Revolving Credit Agreement by
each of the parties thereto;
(h) written money transfer instructions, in substantially the form of
Exhibit E hereto, addressed to the Administrative Agent and signed by an
Authorized Officer, together with such other related money transfer
authorizations as the Administrative Agent may have reasonably requested;
(i) evidence of the termination of the Existing Credit Agreements and
repayment of in full of all obligations, indebtedness and liabilities
outstanding thereunder from the proceeds of the initial Syndicated Loans
hereunder and/or the initial "Syndicated Loans" under and as defined in the
5-Year Revolving Credit Agreement; and
(j) such other documents as any Lender or its counsel may have
reasonably requested (including, without limitation, any Syndicated Notes
requested pursuant to Section 2.12(a)(iv)).
4.2 Each Syndicated Advance.
No Lender shall be required to make any Syndicated Loan hereunder
unless on the applicable Borrowing Date:
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(a) there exists no Default or Unmatured Default;
(b) the representations and warranties contained in Article V are true
and correct as of such Borrowing Date (other than the representation and
warranty set forth in Section 5.5, which shall only be made by the Borrower as
of the date of this Agreement) except to the extent any such representation or
warranty is stated to relate solely to an earlier date, in which case such
representation or warranty shall be true and correct on and as of such earlier
date;
(c) after giving effect to such Syndicated Loan and the other
Syndicated Loans being made as a part of such Syndicated Advance, the aggregate
outstanding principal amount of all Syndicated Advances does not exceed the
Aggregate Commitment; and
(d) all legal matters incident to the making of such Syndicated
Advance shall be reasonably satisfactory to the Lenders and their counsel.
Each Syndicated Advance Borrowing Notice and each Conversion/Continuation Notice
with respect to a Syndicated Loan shall constitute a representation and warranty
by the Borrower that the conditions contained in Sections 4.2(a), (b) and (c)
have been satisfied.
ARTICLE V
REPRESENTATIONS AND WARRANTIES
In order to induce the Administrative Agent and the Lenders to enter
into this Agreement and to make the Syndicated Loans and the other financial
accommodations to the Borrower described herein, the Borrower represents and
warrants to the Administrative Agent and each Lender as follows as of the date
of this Agreement, the date of the initial extension of credit hereunder and
thereafter on each date as required by Section 4.2 that:
5.1 Existence and Standing.
Each of the Borrower and its Subsidiaries (other than Subsidiaries
which in the aggregate own, directly or indirectly, less than ten percent (10%)
of the total consolidated assets of the Borrower and its Subsidiaries) (i) is
duly organized, validly existing and in good standing under the laws of its
jurisdiction of organization, (ii) is duly qualified to do business as a foreign
organization and is in good standing under the laws of each jurisdiction in
which it owns or leases real property or in which the nature of its business
requires it to be so qualified, except those jurisdictions where the failure to
be in good standing or to so qualify is not reasonably likely to have a Material
Adverse Effect, and (iii) has all requisite corporate or other organizational
power and authority to own, lease and operate its property and assets and to
conduct its business as presently conducted and as proposed to be conducted.
5.2 Authorization and Validity.
(a) The Borrower has the requisite corporate or other organizational
power and authority to execute, deliver and perform each of the Loan Documents
which have been or are to be executed by it.
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(b) The execution, delivery and performance, as the case may be, of
each of the Loan Documents executed by the Borrower, and the consummation of the
transactions contemplated thereby, have been duly approved by the board of
directors and, if necessary, the shareholders of the Borrower, and such
approvals have not been rescinded. No other corporate or other organizational
action or proceedings on the part of the Borrower is necessary to consummate
such transactions.
(c) Each of the Loan Documents to which the Borrower is a party has
been duly executed or delivered, as the case may be, by it and constitutes its
legal, valid and binding obligation, enforceable against it in accordance with
its terms (except as enforceability may be limited by bankruptcy, insolvency or
similar laws affecting the enforcement of creditor's rights generally), is in
full force and effect and no material term or condition thereof has been
amended, modified or waived without the prior written consent of the Required
Lenders (or all of the Lenders if so required under Section 8.2), and the
Borrower has performed and complied with all the terms, provisions, agreements
and conditions set forth therein and required to be performed or complied with
by the Borrower and no unmatured default, default or breach of any covenant by
any such party exists thereunder.
5.3 No Conflict; Government Consent.
Neither the execution and delivery by the Borrower of the Loan
Documents, nor the consummation of the transactions therein contemplated, nor
compliance with the provisions thereof will violate any law, rule, regulation,
order, writ, judgment, injunction, decree or award binding on the Borrower or
the Borrower's articles of incorporation or by-laws (or any comparable
constitutive laws, rules or regulations) or the provisions of any material
indenture, instrument or material agreement to which the Borrower or any of its
Subsidiaries is a party or is subject, or by which it, or its Property, is
bound, or conflict with or constitute a default thereunder, or result in the
creation or imposition of any Lien in, of or on the Property of the Borrower or
a Subsidiary pursuant to the terms of any such material indenture, instrument or
agreement. No order, consent, approval, license, authorization or validation of,
or filing, recording or registration with, or exemption by, any Governmental
Authority is required to authorize, or is required in connection with the
execution, delivery and performance of, or the legality, validity, binding
effect or enforceability of, any of the Loan Documents, except (i) such as have
been made or obtained as set forth on Schedule 5.3 or (ii) such as set forth on
Schedule 5.3 hereto which have not been obtained or made and which are
immaterial.
5.4 Financial Statements.
The January 29, 2005 audited consolidated financial statements of the
Borrower and its Subsidiaries heretofore delivered to the Administrative Agent
and the Lenders were prepared in accordance with GAAP in effect on the date such
statements were prepared and fairly present in all material respects the
consolidated financial condition and operations of the Borrower and its
Subsidiaries at such date and the consolidated results of their operations for
the period then ended.
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5.5 Material Adverse Change.
As of the date of this Agreement, since January 29, 2005 with respect
to the Borrower and its Subsidiaries, there has been no material adverse change
in the business, financial condition, operations, performance or Property of the
Borrower and its Subsidiaries on a consolidated basis.
5.6 Taxes.
The Borrower and its Subsidiaries have filed all United States federal
tax returns and all other tax returns which are required to be filed and have
paid all taxes due pursuant to said returns or pursuant to any assessment
received by the Borrower or any of its Subsidiaries, except such taxes, if any,
as are being contested in good faith, as to which adequate reserves have been
provided in accordance with GAAP and as to which no tax lien has been filed. The
United States income tax returns of the Borrower and its Subsidiaries have been
audited by the Internal Revenue Service, or the Internal Revenue Service has
allowed the Statute of Limitations for audit to expire, for fiscal years ended
January 29, 2000 and prior (provided that the year ending January 29, 2000
remains open only in respect of items from later years carried back to such
year). No tax liens have been filed and remain in effect with respect to the
Borrower and its Subsidiaries. No written claims of taxing authorities are
pending and being made, and no other claims are, to the knowledge of the
executive officers of the Borrower, pending against the Borrower or any of its
Subsidiaries, in each case (i) except claims which are being actively contested
by the Borrower or such Subsidiary in good faith and by appropriate proceedings
and with respect to which the Borrower or such Subsidiary has established such
reserves or made other appropriate provisions as shall be required in conformity
with GAAP; and (ii) which could, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. The charges, accruals and reserves
on the books of the Borrower and its Subsidiaries in respect of any taxes or
other governmental charges have been established in accordance with GAAP and, to
the knowledge of the executive officers of the Borrower, are adequate.
5.7 Litigation and Contingent Obligations.
Except as set forth on Schedule 5.7 hereto, there is no litigation,
arbitration, governmental investigation, proceeding or inquiry pending or, to
the knowledge of any of their executive officers, threatened against or
affecting the Borrower or any of its Subsidiaries which could reasonably be
expected to result in a Material Adverse Effect. Other than any liability
incident to such litigation, arbitration or proceedings, the Borrower and its
Subsidiaries have no material contingent obligations not provided for or
disclosed in the financial statements referred to in Section 5.4.
5.8 Subsidiaries.
Schedule 5.8 hereto contains an accurate list of all of the presently
existing Subsidiaries of the Borrower, setting forth their respective
jurisdictions of organization and the percentage of their respective equity held
by the Borrower or other Subsidiaries. All of the issued and outstanding shares
of capital stock of such Subsidiaries have been duly authorized and issued and
are fully paid and non-assessable.
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5.9 ERISA.
The Unfunded Liabilities of all Single Employer Plans do not in the
aggregate exceed $40,000,000. Neither the Borrower nor any other member of the
Controlled Group has failed to make any required installment or any other
required payment under Section 412 of the Code on or before the due date for
such installment or other payment with respect to a Single Employer Plan, or has
failed to make a required contribution or payment to a Multiemployer Plan.
Neither the Borrower nor any other member of the Controlled Group has any
potential liability, whether direct or indirect, contingent or otherwise, under
Section 4069, 4204 or 4212(c) of ERISA. Each Plan complies in all material
respects with all applicable requirements of law and regulations and has been
administered in all material respects in accordance with its terms. No
Reportable Event has occurred with respect to any Plan, neither the Borrower nor
any other member of the Controlled Group has withdrawn from any Plan or
initiated steps to do so, no steps have been taken to reorganize or terminate
any Plan, no event has occurred which imposes an obligation on the Borrower or
any member of the Controlled Group under Section 4041 of ERISA to provide
affected parties written notice of intent to terminate a Plan in a distress
termination described in Section 4041(c) of ERISA; no event or condition has
occurred which is reasonably likely to constitute grounds under Section 4042 of
ERISA for the termination of, or the appointment of a trustee to administer, any
Plan, in any such case where such event could reasonably be expected to have a
Material Adverse Effect.
5.10 Accuracy of Information.
No written information, certificate, exhibit or report furnished by
the Borrower or any of its Subsidiaries to the Administrative Agent or the
Lenders (including the Loan Documents and any representation or warranty
therein) contained any material misstatement of fact or omitted to state a
material fact or any fact necessary to make the statements contained therein not
misleading in light of the circumstances under which they were made.
5.11 Regulations T, U and X.
Margin stock (as defined in Regulation U) constitutes less than 25% of
those assets of the Borrower and its Subsidiaries which are subject to any
limitation on sale, pledge, or other restriction hereunder. Neither the Borrower
nor any of its Subsidiaries is engaged in the business of purchasing or carrying
margin stock.
5.12 Material Agreements.
Neither the Borrower nor any Subsidiary is in default in the
performance, observance or fulfillment of any of the obligations, covenants or
conditions contained in (i) any agreement to which it is a party, which default
could reasonably be expected to have a Material Adverse Effect or (ii) any
agreement or instrument evidencing or governing Material Indebtedness.
5.13 Compliance With Laws.
The Borrower and its Subsidiaries have complied with all applicable
statutes, rules, regulations, orders and restrictions of any Governmental
Authority having jurisdiction over
32
the conduct of their respective businesses or the ownership of their respective
Property except where the failure to so comply could not reasonably be expected
to result in a Material Adverse Effect. Except as set forth in Schedule 5.13
hereto, neither the Borrower nor any Subsidiary has received any notice to the
effect that its operations are not in material compliance with any
Environmental, Health or Safety Requirements of Law or the subject of any
federal or state investigation evaluating whether any remedial action is needed
to respond to a release of any petroleum, toxic or hazardous waste or substance
into the environment, which non-compliance or remedial action could reasonably
be expected to have a Material Adverse Effect.
5.14 Ownership of Property.
Except as set forth on Schedule 5.14 hereto, on the date of this
Agreement, the Borrower and its Subsidiaries have good title, free of all Liens
other than those permitted by Section 6.15, to all of the Property and assets
reflected in the financial statements referred to in Section 5.4 as owned by it.
The Borrower and each of its Subsidiaries owns (or is licensed to use) all
Intellectual Property which is necessary or appropriate in any material respect
for the conduct of its respective business as conducted on the date of this
Agreement, without any material conflict with the rights of any other Person.
Neither the Borrower nor any Subsidiary is aware of (i) any material existing or
threatened infringement or misappropriation of any of its Intellectual Property
by any third party or (ii) any material third party claim that any aspect of the
business of the Borrower or any Subsidiary (as conducted on the date of this
Agreement) infringes or will infringe upon, any Intellectual Property or other
property right of any other Person, in each case that could reasonably be
expected to have a Material Adverse Effect.
5.15 Labor Matters.
There are no labor controversies pending or, to the best of the
Borrower's knowledge, threatened against the Borrower or any Subsidiary, which,
if adversely determined, could reasonably be expected to have a Material Adverse
Effect. The Borrower and each of its Subsidiaries are in substantial compliance
in all material respects with the Fair Labor Standards Act, as amended.
5.16 Investment Company Act.
Neither the Borrower nor any Subsidiary thereof is an "investment
company" or a company "controlled" by an "investment company", within the
meaning of the Investment Company Act of 1940, as amended.
5.17 Public Utility Holding Company Act.
Neither the Borrower nor any Subsidiary is a "holding company" or a
"subsidiary company" of a "holding company", or an "affiliate" of a "holding
company" or of a "subsidiary company" of a "holding company", within the meaning
of the Public Utility Holding Company Act of 1935, as amended.
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5.18 Insurance.
The insurance policies and programs in effect with respect to the
Property, liabilities and business of the Borrower and its Subsidiaries are
maintained with financially sound and reputable insurance companies and reflect
coverage that is consistent with sound business practice.
ARTICLE VI
COVENANTS
6. Covenants. During the term of this Agreement, unless the Required
Lenders shall otherwise consent in writing:
6.1 Financial Reporting.
The Borrower will maintain, for itself and its Subsidiaries, a system
of accounting established and administered in accordance with GAAP, and, subject
to Section 13.1, will furnish or cause to be furnished to the Administrative
Agent with sufficient copies for each of the Lenders:
(a) As soon as practicable but in any event within 105 days after the
close of each of its fiscal years, an audit report (which audit report shall be
unqualified or shall be otherwise reasonably acceptable to the Required Lenders;
provided that such report may set forth qualifications to the extent such
qualifications pertain solely to changes in GAAP from those applied during
earlier accounting periods, the implementation of which changes (with the
concurrence of such accountants) is reflected in the financial statements
accompanying such report), certified by independent certified public accountants
who are reasonably acceptable to the Required Lenders, prepared in accordance
with GAAP on a consolidated basis for itself and its Subsidiaries, including
balance sheets as of the end of such period and the related statements of
income, and consolidated stockholder's equity and cash flows, accompanied by a
certificate of said accountants that, in the course of their examination
necessary for their certification of the foregoing, they have obtained no
knowledge of any Default or Unmatured Default, or if, in the opinion of such
accountants, any Default or Unmatured Default shall exist, stating the nature
and status thereof.
(b) As soon as practicable but in any event within 60 days after the
close of each of the first three quarterly periods of each of its fiscal years,
for itself and its Subsidiaries on a consolidated basis, balance sheets as of
the end of such period and the related statements of income, and consolidated
stockholder's equity and cash flows for the period from the beginning of such
fiscal year to the end of such quarter, all certified by its Chief Financial
Officer, Controller or Treasurer as to fairness of presentation and prepared,
with respect to such consolidated statements, in accordance with GAAP (subject
to normal year end adjustments).
(c) Together with the financial statements required hereunder, a
compliance certificate in substantially the form of Exhibit C hereto signed by
its Chief Financial Officer, Controller or Treasurer showing the calculations
necessary to determine compliance with Section 6.16 as of the last day of the
fiscal period covered by such financial statements, and stating that
34
no Default or Unmatured Default exists, or if any Default or Unmatured Default
exists, stating the nature and status thereof and the Borrower's plans with
respect thereto.
(d) As soon as possible and in any event within 10 days after an
executive officer of the Borrower knows that any Reportable Event or any other
event described in Section 5.9 has occurred with respect to any Plan, a
statement, signed by the Chief Financial Officer or Treasurer of the Borrower,
describing said Reportable Event or other event and the action which the
Borrower proposes to take with respect thereto.
(e) As soon as possible and in any event within 10 days after receipt
by the Borrower or any Subsidiary, a copy of (a) any notice or claim to the
effect that the Borrower or any of its Subsidiaries is or may be liable to any
Person as a result of the release by the Borrower, any of its Subsidiaries, or
any other Person of any petroleum, toxic or hazardous waste or substance into
the environment, and (b) any notice alleging any violation of any Environmental,
Health or Safety Requirements of Law by the Borrower or any of its Subsidiaries,
which, in either case, could reasonably be expected to have a Material Adverse
Effect or subject the Borrower and its Subsidiaries to liability, individually
or in the aggregate, in excess of $30,000,000 (in each case, determined after
giving effect to claims which the Borrower has demonstrated to the reasonable
satisfaction of the Administrative Agent are covered by applicable third-party
insurance policies (other than retro-premium insurance or other policies with
similar self-insurance attributes) of the Borrower or any of its Subsidiaries
unless the insurers of such claims have disclaimed coverage or reserved the
right to disclaim coverage).
(f) Promptly upon the furnishing thereof to the shareholders of the
Borrower, copies of all financial statements, reports and proxy statements so
furnished.
(g) Promptly upon the filing thereof, copies of all final registration
statements, proxy statements and annual, quarterly, monthly or other reports
which the Borrower or any of its Subsidiaries files with the Securities and
Exchange Commission (provided the Borrower shall not be obligated to provide
copies of routine reports which are required to be filed concerning the
management of employee benefit plans, including, without limitation, stock
purchases or the exercise of stock options made under any such employee benefit
plan).
(h) Except to the extent that such items are redundant with reports or
information otherwise provided pursuant to this Section 6.1, promptly upon the
furnishing thereof to the holders thereof, copies of all financial statements
and reports furnished to the holders of (or trustee or other representative for
the holders of) any Indebtedness for money borrowed of the Borrower or its
Subsidiaries.
(i) Such other information (including non-financial information) as
any Lender through the Administrative Agent may from time to time reasonably
request.
6.2 Use of Proceeds.
The Borrower will, and will cause each of its Subsidiaries to, use the
proceeds of the Syndicated Advances to repay outstanding loans and advances made
under the Existing Credit Agreements, to repay Syndicated Advances hereunder and
"Syndicated Advances", "Reimbursement Obligations" and the "Swing Line Loans"
under (and as such terms are defined
35
in) the 5-Year Revolving Credit Agreement or for general corporate or working
capital purposes (including, without limitation, capital expenditures, purchases
by the Borrower of its capital stock, Acquisitions permitted under Section 6.18
and support of commercial paper). The Borrower will not, nor will it permit any
Subsidiary, to use proceeds of the Syndicated Advances other than as
contemplated in this Section 6.2.
6.3 Other Notices.
Promptly after the Borrower or relevant subsidiary becomes aware of
such occurrence, the Borrower will, and will cause each of its Subsidiaries to,
give notice in writing to the Lenders of the occurrence of: (a) any Default or
Unmatured Default; and (b) any other development, financial or otherwise, which
could reasonably be expected to have a Material Adverse Effect; provided, no
separate notice of the occurrence of any such development under this clause (b)
needs to be given to the extent such item has been disclosed in the Borrower's
annual, quarterly or other reports (i.e., 10-K, 10-Q or 8-K) filed with the
Securities and Exchange Commission and delivered pursuant to Section 6.1(g) or
in a press release issued by the Borrower or one of its Subsidiaries. Any such
notice shall state the nature and status of the occurrence and any and all
actions taken with respect thereto.
6.4 Conduct of Business.
The Borrower will, and will cause each of its Subsidiaries to, carry
on and conduct its business in substantially the same manner and in
substantially the same or complementary fields of enterprise as it is presently
conducted and to do all things necessary to remain duly organized, validly
existing and in good standing as a domestic organization in its jurisdiction of
organization and maintain all requisite authority to conduct its business in
each jurisdiction in which its business is conducted except for transactions
permitted under Sections 6.10, 6.11, 6.13, or 6.18 or where the failure to
maintain such authority could not reasonably be expected to have a Material
Adverse Effect.
6.5 Taxes.
The Borrower will, and will cause each of its Subsidiaries to, pay
when due all material taxes, assessments and governmental charges and levies
upon it or its income, profits or Property, except those which are being
contested in good faith by appropriate proceedings and with respect to which
adequate reserves have been set aside in accordance with GAAP and in connection
with which no tax Lien has been filed.
6.6 Insurance.
The Borrower will, and will cause each of its Subsidiaries to,
maintain with financially sound and reputable insurance companies insurance with
respect to all their Property, liabilities and business in such amounts and
covering such risks as is consistent with sound business practice, and the
Borrower will furnish to the Administrative Agent upon request of any Lender
full information as to the insurance carried.
36
6.7 Compliance with Laws.
The Borrower will, and will cause each of its Subsidiaries to, comply
in all material respects with all laws (including, without limitation, all
environmental laws), rules, regulations, orders, writs, judgments, injunctions,
decrees or awards to which it may be subject, except where the failure to so
comply could not reasonably be expected to have a Material Adverse Effect.
6.8 Maintenance of Properties.
The Borrower will, and will cause each of its Subsidiaries to, do all
things necessary to maintain, preserve, protect and keep its material Property
in good repair, working order and condition, ordinary wear and tear excepted,
and make all necessary and proper repairs, renewals and replacements so that its
business carried on in connection therewith may be properly conducted at all
times. The Borrower will, and will cause each Subsidiary to, do all things
necessary to maintain, preserve and protect all of its material Intellectual
Property including, without limitation, perform each of its respective
obligations under any and all license agreements and other contracts and
agreements evidencing or relating to Intellectual Property, using the same in
interstate or foreign commerce, properly marking such Intellectual Property and
maintaining all necessary and appropriate governmental registrations (both
domestic and foreign) except where the failure to do so could not reasonably be
expected to have a Material Adverse Effect.
6.9 Inspection.
The Borrower will, and will cause each of its Subsidiaries to, permit
the Administrative Agent and any or each Lender, by its respective
representatives and agents, to inspect any of the Property, corporate books and
financial records of the Borrower and each of its Subsidiaries, to examine and
make copies of the books of accounts and other financial records of the Borrower
and each of its Subsidiaries, and to discuss the affairs, finances and accounts
of the Borrower and each of its Subsidiaries with, and to be advised as to the
same by, their respective officers at such reasonable times and intervals as the
Administrative Agent or such Lender may designate. Prior to the occurrence of a
Default or Unmatured Default, the Lenders will use reasonable efforts to
coordinate their inspection through the Administrative Agent so as to minimize
any disruption to the business of the Borrower and its Subsidiaries.
6.10 Merger.
The Borrower will not, nor will it permit any of its Subsidiaries to,
merge, amalgamate or consolidate with or into any other Person, except that a
Wholly-Owned Subsidiary may merge with the Borrower or a Wholly-Owned Subsidiary
of the Borrower, subject to the further condition that if the Borrower is a
party to any such permitted merger, the Borrower shall be the surviving
corporation. Nothing herein shall prohibit a transaction otherwise in compliance
with Section 6.11, 6.13, or 6.18.
37
6.11 Sale of Assets.
Except as disclosed in Schedule 6.11, the Borrower will not, nor will
it permit any of its Subsidiaries to, lease, sell or otherwise dispose of its
Property, to any other Person except for:
(a) Sales of inventory in the ordinary course of business (which in
the business of the Borrower and its Subsidiaries may include sales of larger
quantities of inventory other than to consumers, provided such sales are
consistent with the Borrower's and its Subsidiaries' past practices and which
are not extraordinary transactions under GAAP);
(b) The sale, discount, or transfer of delinquent accounts receivable
in the ordinary course of business for purposes of collection only;
(c) Occasional sales, leases or other dispositions of immaterial
assets for cash consideration and for not less than fair market value;
(d) Sales, leases or other dispositions of assets that are obsolete or
have negligible fair market value;
(e) Sales of equipment for cash consideration and for fair market
value (but if replacement equipment is necessary for the proper operation of the
business of the seller, the seller must promptly replace the sold equipment);
(f) Leases, sales or other dispositions of its Property to the
Borrower or a Wholly-Owned Subsidiary of the Borrower;
(g) Other leases, sales or other dispositions of its Property subject
to the requirement that the net proceeds of each such lease, sale or other
disposition of Property are reinvested in the business of the Borrower and the
Subsidiaries as conducted in accordance with the requirements of Section 6.4 or
are used for other general corporate purposes; and
(h) Sales of assets in the ordinary course of business and consistent
with past practices for not less than fair market value, including store
closings.
Notwithstanding anything herein to the contrary, the aggregate amount of
Property of the Borrower and its Subsidiaries leased, sold or disposed of
pursuant to clauses (g) and (h) (excluding any equipment which has been promptly
replaced) during the twelve-month period ending with the month in which any such
lease, sale or other disposition occurs shall not: (1) in any single transaction
or series of related transactions constitute a Substantial Portion of the
Property of the Borrower and its Subsidiaries under clause (b) of the definition
of Substantial Portion or (2) in the aggregate constitute a Substantial Portion
of the Property of the Borrower and its Subsidiaries under clause (a) of the
definition of Substantial Portion.
6.12 Affiliates.
Except in connection with transactions otherwise permitted pursuant to
the terms of this Article VI, the Borrower will not, nor will it permit any of
its Subsidiaries to, enter into
38
any transaction (including, without limitation, the purchase or sale of any
Property or service) with, or make any payment or transfer to, any Affiliate
except in the ordinary course of business and pursuant to the reasonable
requirements of the Borrower's or such Subsidiary's business and upon fair and
reasonable terms no less favorable to the Borrower or such Subsidiary than the
Borrower or such Subsidiary would obtain in a comparable arm's-length
transaction; provided, however, that these provisions shall not be applicable
with respect to transactions among the Borrower and its Subsidiaries which are
in the ordinary course of business and consistent with past practice.
6.13 Investments.
The Borrower will not, nor will it permit any of its Subsidiaries to,
make or suffer to exist any Investments, or commitments therefor, except:
(a) Investments by the Borrower or any of its Subsidiaries in and to
any domestic Subsidiary;
(b) Investments by the Borrower or any of its Subsidiaries in and to
any foreign Subsidiary in an aggregate amount at any time not to exceed 20% of
Consolidated Total Assets;
(c) Investments in existence as of the close of business on the date
hereof and which are described in Schedule 6.13 hereto;
(d) Subject to the proviso set forth below, investments made in
connection with Acquisitions permitted under Section 6.18;
(e) Investments consisting of cash and cash equivalents;
(f) Subject to the proviso set forth below, other Investments in any
other Persons in an aggregate amount at any time not to exceed 10% of
Consolidated Net Worth;
(g) Investments owned by the Borrower in connection with the
Borrower's Executive Savings Plan; and
(h) Syndicated Loans, capital contributions and other Investments made
by any Subsidiary in the Borrower;
provided, however, not withstanding anything in this Section 6.13 or Section
6.18 to the contrary, the aggregate amount of Investments made in connection
with Acquisitions made pursuant to clause (b) of Section 6.18 and pursuant to
clause (f) above shall not exceed 10% of Consolidated Net Worth.
6.14 Contingent Obligations.
The Borrower will not, nor will it permit any of its Subsidiaries to,
make or suffer to exist any Contingent Obligation, except:
39
(a) by endorsement of instruments for deposit or collection in the
ordinary course of business;
(b) Contingent Obligations of the Borrower and any of its Subsidiaries
existing as of the close of business on the date hereof which are described on
Schedule 6.14;
(c) Contingent Obligations of the Borrower in respect of the
obligations of any domestic Subsidiary;
(d) Reimbursement obligations in connection with letters of credit
issued under the 5-Year Revolving Credit Agreement and other letters of credit
(provided the issuance thereof is not violative of any other provision of this
Article VI);
(e) Contingent Obligations consisting of the Borrower's guaranty of
reimbursement obligations of any Subsidiary in connection with letters of credit
permitted under clause (d) above;
(f) Contingent Obligations of any Subsidiary to the extent such
Contingent Obligations constitute Indebtedness permitted under this Article VI;
(g) Contingent Obligations of the Borrower to the extent such
Contingent Obligations (or the Indebtedness underlying such Contingent
Obligations) are included in the calculation of Funded Debt; and
(h) Contingent Obligations in an additional aggregate amount not to
exceed $100,000,000 at any one time outstanding.
6.15 Liens.
(a) The Borrower will not, nor will it permit any of its Subsidiaries
to, create, incur, or suffer to exist any Lien in, of or on the Property of the
Borrower or such Subsidiary, as applicable, except:
(i) Liens for taxes, assessments or governmental charges or
levies on its Property if the same shall not at the time be delinquent or
thereafter can be paid without penalty, or are being contested in good faith and
by appropriate proceedings and for which adequate reserves in accordance with
GAAP shall have been set aside on its books;
(ii) Liens imposed by law, such as carriers', warehousemen's and
mechanics' liens and other similar liens arising in the ordinary course of
business which secure payment of obligations not more than 60 days past due or
which are being contested in good faith by appropriate proceedings and for which
adequate reserves in accordance with GAAP shall have been set aside on its
books;
(iii) Liens arising out of pledges or deposits under worker's
compensation laws, unemployment insurance, old age pensions, or other social
security or retirement benefits, or similar legislation;
40
(iv) utility easements, building restrictions and such other
encumbrances or charges against real property as are of a nature generally
existing with respect to properties of a similar character and which do not in
any material way affect the same or interfere with the use thereof in the
business of the Borrower or any Subsidiary of the Borrower;
(v) Liens existing as of the close of business on the date hereof
and which are described in Schedule 5.14;
(vi) Liens created or incurred after the date hereof, given to
secure the Indebtedness incurred or assumed in connection with the acquisition
or construction of property or assets useful and intended to be used in carrying
on the business of the Borrower or any Subsidiary of the Borrower, including
Liens existing on such property or assets at the time of acquisition or
construction thereof or at the time of acquisition or construction by the
Borrower or such Subsidiary, as applicable, of an interest in any business
entity then owning such property or assets, whether or not such existing Liens
were given to secure the consideration for the property or assets to which they
attach, subject to the requirement that the Lien shall attach solely to the
assets acquired or purchased;
(vii) secured or unsecured purchase money Indebtedness (including
Capitalized Leases) incurred in the ordinary course of business to finance the
acquisition of fixed assets or equipment used in the business of such Subsidiary
if such Indebtedness does not exceed the lower of the fair market value or the
cost of the applicable fixed assets or equipment on the date acquired;
(viii) Liens on real property with respect to Indebtedness the
proceeds of which are used (a) for the construction or improvement of the real
property securing such Indebtedness or (b) to finance the cost of construction
or improvement of such real property, provided such financing occurs within one
hundred eighty (180) days of receipt of the certificate of occupancy with
respect to such construction or improvement (other than with respect to a
refinancing under clause (x) below);
(ix) other Liens (a) securing Indebtedness or other obligations
not exceeding $75,000,000 at any one time outstanding or (b) on property having
in the aggregate a fair market value at the time of incurrence of the Lien not
exceeding $75,000,000 at any one time outstanding;
(x) any extension, renewal or replacement of any Lien permitted
by the preceding clauses (vi), (vii), (viii) or (ix) hereof in respect of the
same property or assets theretofore subject to such Lien in connection with the
extension, renewal or refunding of the Indebtedness secured thereby; provided
that (x) such Lien shall attach solely to the same property or assets, and (y)
such extension, renewal or refunding of such Indebtedness shall be without
increase in the principal remaining unpaid as of the date of such extension,
renewal or refunding; and
(xi) Liens on the shares of capital stock of the Borrower's
foreign Subsidiaries securing Indebtedness in an amount which shall not exceed
twenty-five percent (25%) of the assets of all foreign Subsidiaries.
41
6.16 Maximum Leverage Ratio.
The Borrower shall not permit its Leverage Ratio to be greater than
2.75 to 1.00 as at the end of each fiscal quarter.
6.17 Intentionally Deleted.
6.18 Acquisitions.
The Borrower will not, nor will it permit any of its Subsidiaries to,
make any Acquisition other than (a) a Permitted Acquisition; and (b) other
Acquisitions (i) made at a time when no Default or Unmatured Default exists;
(ii) consummated on a non-hostile basis approved by a majority of the board of
directors or other governing body of the Person being acquired, (iii) the
aggregate consideration for which, individually or when aggregated with the
aggregate consideration for other Acquisitions made under this clause (b) does
not exceed 10% of Consolidated Net Worth, and (iv) the aggregate consideration
for all such Acquisitions plus the aggregate amount of Investments made pursuant
to Section 6.13(f) does not exceed 10% of Consolidated Net Worth.
6.19 Rate Hedging Obligations.
The Borrower shall not, and shall not permit any of its Subsidiaries
to, enter into any Hedging Agreements, other than Hedging Agreements entered
into in the ordinary course of business to hedge or mitigate risks to which the
Borrower or such Subsidiary is exposed in the conduct of its business or the
management of its assets and liabilities.
6.20 Subsidiary Indebtedness.
The Borrower will not permit any Subsidiary to create, incur, assume
or suffer to exist any Indebtedness, except:
(a) Indebtedness existing on the date hereof or proposed to be
incurred, each as described in Schedule 6.20 hereto;
(b) Indebtedness of any Subsidiary to third parties (for the avoidance
of doubt, such Indebtedness shall include Indebtedness of Subsidiaries to third
parties set forth on Schedule 6.20 hereof but shall exclude any intercompany
Indebtedness of Subsidiaries), which Indebtedness for all such Subsidiaries does
not exceed 25% of Consolidated Net Worth; and
(c) Indebtedness of any Subsidiary to the Borrower or to any other
Subsidiary.
6.21 Subordination of Intercompany Indebtedness.
The Borrower will not and will not permit any of its domestic
Subsidiaries to create, incur, assume or suffer to exist any intercompany
Indebtedness where the obligor on such Indebtedness is the Borrower, unless such
indebtedness is subordinated to the Obligations hereunder on the terms described
in Schedule 6.21.
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ARTICLE VII
DEFAULTS
7. Defaults. The occurrence of any one or more of the following events
shall constitute a Default:
7.1 Breach of Representation or Warranty.
Any representation or warranty made or deemed made by or on behalf of
the Borrower or any of its Subsidiaries to the Lenders or the Administrative
Agent under or in connection with this Agreement, any Syndicated Loan or any
certificate or information delivered in connection with this Agreement or any
other Loan Document shall be materially false on the date as of which made or
deemed made.
7.2 Payment Default.
Nonpayment of (i) principal of any Syndicated Loan or Syndicated Note
when due, or (ii) interest upon any Syndicated Loan or Syndicated Note or of any
fee or other obligations under any of the Loan Documents within five Business
Days after such interest, fee or other obligation becomes due.
7.3 Breach of Certain Covenants.
The breach by the Borrower of (a) any of the terms or provisions of
Sections 6.2 and 6.4, clause (a) of Section 6.3, any of Sections 6.10 through
6.15, Sections 6.18 and 6.19 or (b) any of the terms of Section 6.16 and such
breach under this clause (b) continues for 10 days after the first to occur of
(i) the date an executive officer of the Borrower first knows of or should have
known of such breach or (ii) the date the Borrower receives written notice from
any Lender (acting through the Administrative Agent) of such breach.
7.4 Breach of Other Provisions.
The breach by the Borrower (other than a breach which constitutes a
Default under Section 7.1, 7.2 or 7.3) of any of the terms or provisions of this
Agreement, and such breach continues for 30 days after the first to occur of (i)
the date an executive officer of the Borrower first knows of or should have
known of such breach or (ii) the date the Borrower receives written notice from
any Lender (acting through the Administrative Agent) of such breach.
7.5 Default on Material Indebtedness.
Failure of the Borrower or any of its Subsidiaries to make a payment
on any Indebtedness under the 5-Year Revolving Credit Agreement; or the failure
of the Borrower or any of its Subsidiaries to make a payment on Material
Indebtedness when due (after giving effect to any applicable grace period); or
the default by the Borrower or any of its Subsidiaries in the performance of any
term, provision or condition contained in the 5-Year Revolving Credit Agreement
or the default by the Borrower or any of its Subsidiaries in the performance of
any term, provision or condition contained in any agreement or agreements under
which Material
43
Indebtedness was created or is governed (and any applicable grace period(s)
shall have expired), or any other event shall occur or condition exist, the
effect of which is to cause, or to permit the holder or holders of such
Indebtedness under the 5-Year Revolving Credit Agreement or such Material
Indebtedness to cause, such Indebtedness or Material Indebtedness to become due
prior to its stated maturity; or any of the Indebtedness under the 5-Year
Revolving Credit Agreement or Material Indebtedness of the Borrower or any of
its Subsidiaries shall be declared to be due and payable or required to be
prepaid (other than by a regularly scheduled payment) prior to the stated
maturity thereof; or the Borrower or any of its Subsidiaries shall not pay, or
shall admit in writing its inability to pay, its debts generally as they become
due.
7.6 Voluntary Insolvency Proceedings.
The Borrower or any of its Subsidiaries shall (a) have an order for
relief entered with respect to it under the United States bankruptcy laws as now
or hereafter in effect or cause or allow any similar event to occur under any
bankruptcy or similar law or laws for the relief of debtors as now or hereafter
in effect in any other jurisdiction, (b) make an assignment for the benefit of
creditors, (c) apply for, seek, consent to, or acquiesce in, the appointment of
a receiver, custodian, trustee, examiner, liquidator, monitor or similar
official for it or any Substantial Portion of its Property, (d) institute any
proceeding seeking an order for relief under the United States bankruptcy laws
as now or hereafter in effect or seeking to adjudicate it a bankrupt or
insolvent, or seeking dissolution, winding up, liquidation, reorganization,
arrangement, adjustment or composition of it or any of its property or its debts
under any law relating to bankruptcy, insolvency or reorganization or compromise
of debt or relief of debtors as now or hereafter in effect in any jurisdiction,
or any organization, arrangement or compromise of debt under the laws of its
jurisdiction of organization or fail to promptly file an answer or other
pleading denying the material allegations of any such proceeding filed against
it, (e) take any corporate or other organizational action to authorize or effect
any of the foregoing actions set forth in this Section 7.6 or (f) fail to
contest in good faith, or consent to or acquiesce in, any appointment or
proceeding described in Section 7.7.
7.7 Involuntary Insolvency Proceedings.
Without the application, approval or consent of the Borrower or any of
its Subsidiaries, a receiver, custodian, trustee, examiner, liquidator or
similar official shall be appointed (either privately or by a court) for the
Borrower or any of its Subsidiaries or any Substantial Portion of its Property,
or a proceeding described in Section 7.6(d) shall be instituted against the
Borrower or any of its Subsidiaries and such appointment continues undischarged
or such proceeding continues undismissed or unstayed for a period of 60
consecutive days.
7.8 Condemnation.
Any court, government or governmental agency shall condemn, seize or
otherwise appropriate, or take custody or control of (each a "Condemnation"),
all or any portion of the Property of the Borrower and its Subsidiaries which,
when taken together with all other Property of the Borrower and its Subsidiaries
so condemned, seized, appropriated, or taken custody or control of, during the
twelve-month period ending with the month in which any such
44
Condemnation occurs, constitutes a Substantial Portion of the consolidated
Property of the Borrower and its Subsidiaries.
7.9 Judgments.
The Borrower or any of its Subsidiaries shall fail within 30 days to
pay, bond or otherwise discharge any one or more judgments or orders for the
payment of money in excess of $30,000,000 in the aggregate (determined after
giving effect to claims which the Borrower has demonstrated to the reasonable
satisfaction of the Administrative Agent are covered by applicable third-party
insurance policies (other than retro-premium insurance or other policies with
similar self-insurance attributes) of the Borrower or any of its Subsidiaries
unless the insurers of such claims have disclaimed coverage or reserved the
right to disclaim coverage), which judgments are not stayed on appeal with
adequate reserves set aside on its books in accordance with GAAP of the Borrower
or any of its Subsidiaries.
7.10 ERISA Matters.
Any Reportable Event, in connection with any Plan shall occur, which
may reasonably be expected to subject the Borrower and its Subsidiaries to
liability, individually or in the aggregate, in excess of $30,000,000.
7.11 Environmental Matters.
The Borrower or any of its Subsidiaries shall be the subject of any
proceeding or investigation pertaining to the release by the Borrower or any of
its Subsidiaries or any other Person of any petroleum, toxic or hazardous waste
or substance into the environment, or any violation of any Environmental, Health
or Safety Requirements of Law which, in either case, could reasonably be
expected to have a Material Adverse Effect or subject the Borrower and its
Subsidiaries to liability, individually or in the aggregate, in excess of
$30,000,000 (in each case, determined after giving effect to claims which the
Borrower has demonstrated to the reasonable satisfaction of the Administrative
Agent are covered by applicable third-party insurance policies (other than
retro-premium insurance or other policies with similar self-insurance
attributes) of the Borrower or any of its Subsidiaries unless the insurers of
such claims have disclaimed coverage or reserved the right to disclaim
coverage).
7.12 Change of Control.
Any Change in Control shall occur.
7.13 Loan Document Defaults.
Any Loan Document shall fail to remain in full force or effect or any
party thereto shall so assert; or any action shall be taken to discontinue,
revoke or to assert the invalidity or unenforceability of any Loan Document.
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7.14 Off-Balance Sheet Liabilities.
Other than at the request of an Affiliate of the Borrower party
thereto (as permitted thereunder), an event shall occur which (i) permits the
investors in respect of Off-Balance Sheet Liabilities of the Borrower or any of
its Subsidiaries in an amount, individually or in the aggregate, in excess of
$30,000,000, to require amortization or liquidation of such Off-Balance Sheet
Liabilities and (x) such event is not remedied within ten (10) days after the
occurrence thereof or (y) such investors shall require amortization or
liquidation of such Off-Balance Sheet Liabilities as a result of such event, or
(ii) results in the termination or reinvestment of collections or proceeds of
accounts or note receivables, as applicable, under the documents and other
agreements evidencing such Off-Balance Sheet Liabilities.
ARTICLE VIII
ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES
8.1 Acceleration.
If any Default described in Section 7.6 or 7.7 occurs, the obligations
of the Lenders to make Syndicated Loans hereunder shall automatically terminate
and the Obligations shall immediately become due and payable without any
election or action on the part of the Administrative Agent or any Lender, and
without presentment, demand, protest or notice of any kind, all of which the
Borrower hereby expressly waives. If any other Default occurs and is continuing
(which Default has not been waived under the terms of Section 8.2) the Required
Lenders may (a) terminate or suspend the obligations of the Lenders to make
Syndicated Loans hereunder, or (b) declare the Obligations to be due and
payable, whereupon the Obligations shall become immediately due and payable,
without presentment, demand, protest or notice of any kind, all of which the
Borrower hereby expressly waives, or (c) take the action described in both the
preceding clause (a) and the preceding clause (b).
If, within 30 days after acceleration of the maturity of the
Obligations or termination of the obligations of the Lenders to make Syndicated
Loans hereunder as a result of any Default (other than any Default as described
in Section 7.6 or 7.7) and before any judgment or decree for the payment of the
Obligations due shall have been obtained or entered, the Required Lenders (in
their sole discretion) shall so direct, the Administrative Agent shall, by
notice to the Borrower, rescind and annul such acceleration and/or termination.
8.2 Amendments.
Subject to the provisions of this Article VIII, the Required Lenders
(or the Administrative Agent with the consent in writing of the Required
Lenders) and the Borrower may enter into agreements supplemental hereto for the
purpose of adding or modifying any provisions to the Loan Documents or changing
in any manner the rights of the Lenders or the Borrower hereunder or waiving any
Default or Unmatured Default hereunder; provided, however, that no such
supplemental agreement shall, without the consent of each Lender affected
thereby:
(a) extend the maturity of any Syndicated Loan or Syndicated Note or
forgive all or any portion of the principal amount thereof, any interest thereon
or any fees or other
46
amounts payable hereunder, or reduce the rate or extend the time of payment of
interest, fees or other amounts payable hereunder;
(b) reduce the percentage specified in the definition of Required
Lenders;
(c) except as provided in Section 2.9(d), increase the amount of the
Commitment of any Lender hereunder, or permit the Borrower to assign its rights
or obligations under this Agreement;
(d) amend this Section 8.2 or amend or waive any other provision of
this Agreement or any other Loan Document that specifies the number or
percentage of Lenders required to amend or waive any rights or make any
determination or grant any consent.
No amendment of any provision of this Agreement relating in any way to the
Administrative Agent shall be effective without the written consent of the
Administrative Agent. No amendment of any provision of this Agreement which
subjects any Designated Lender to any additional obligation hereunder shall be
effective with respect to such Designated Lender without the written consent of
such Designated Lender or its Designating Lender. The Administrative Agent may
waive payment of the fee required under Section 12.3.2 without obtaining the
consent of any other party to this Agreement.
8.3 Preservation of Rights.
No delay or omission of the Lenders or any of them or the
Administrative Agent to exercise any right under the Loan Documents shall impair
such right or be construed to be a waiver of any Default or an acquiescence
therein, and the making of a Syndicated Loan notwithstanding the existence of a
Default or the inability of the Borrower to satisfy the conditions precedent to
such Syndicated Loan shall not constitute any waiver or acquiescence. Any single
or partial exercise of any such right shall not preclude any other or further
exercise thereof or the exercise of any other right, and no waiver, amendment or
other variation of the terms, conditions or provisions of the Loan Documents
whatsoever shall be valid unless in writing signed by (or with the consent of)
the Lenders required pursuant to Section 8.2, and then only to the extent
specifically set forth in such writing. All remedies contained in the Loan
Documents or afforded by law shall be cumulative and all shall be available to
the Administrative Agent and the Lenders until the Obligations have been paid in
full.
ARTICLE IX
GENERAL PROVISIONS
9.1 Survival of Representations.
All representations and warranties of the Borrower contained in this
Agreement shall survive delivery hereof (including any Syndicated Notes) and the
making of the Syndicated Loans herein contemplated.
47
9.2 Governmental Regulation.
Anything contained in this Agreement to the contrary notwithstanding,
no Lender shall be obligated to extend credit to the Borrower in violation of
any limitation or prohibition provided by any applicable statute or regulation.
9.3 Taxes; Stamp Duties.
Any taxes (excluding taxes (including net income taxes, franchise
taxes and branch profit taxes) as are imposed on or measured by such Lender's
net income by the United States of America or any Governmental Authority of the
jurisdiction under the laws of which such Lender is organized or maintains its
Lending Installation) or other similar assessments or charges made by any
Governmental Authority or revenue authority in respect of the Loan Documents
shall be paid by the Borrower, together with interest and penalties, if any, as
provided in Section 3.1. The Borrower shall pay and forthwith on demand
indemnify each of the Administrative Agent and each Lender against any liability
it incurs in respect of any stamp, registration and similar tax which is or
becomes payable in connection with the entry into, performance or enforcement of
any Loan Document. To the extent reasonably possible, each Lender shall
designate an alternate Lending Installation with respect to its Syndicated Loans
to reduce any liability of the Borrower to such Lender under this Section 9.3,
so long as such designation is not disadvantageous to such Lender in its
reasonable determination. If any Lender has demanded compensation under this
Section 9.3, the Borrower may elect to require the applicable Lender to assign
its outstanding Syndicated Loans and Commitment hereunder to another financial
institution designated by the Borrower and reasonably acceptable to the
Administrative Agent. The obligation of a Lender to assign its rights and
obligations hereunder as contemplated by this Section 9.3 is subject to the
requirements that (x) all amounts owing to that Lender under the Loan Documents
are paid in full upon the completion of such assignment and (y) any assignment
is effected in accordance with the terms of Section 12.3 and on terms otherwise
satisfactory to that Lender (it being understood that the Borrower or the
replacement Lender shall pay the processing fee payable to the Administrative
Agent pursuant to Section 12.3.2 in connection with any such assignment).
9.4 Headings.
Section headings in the Loan Documents are for convenience of
reference only and shall not govern the interpretation of any of the provisions
of the Loan Documents.
9.5 Entire Agreement.
The Loan Documents embody the entire agreement and understanding among
the Borrower, the Administrative Agent and the Lenders and supersede all prior
agreements and understandings among the Borrower, the Administrative Agent and
the Lenders relating to the subject matter thereof.
9.6 Several Obligations; Benefits of this Agreement.
The respective obligations of the Lenders hereunder are several and
not joint and no Lender shall be the partner or agent of any other (except to
the extent to which the
48
Administrative Agent is authorized to act as such). The failure of any Lender to
perform any of its obligations hereunder shall not relieve any other Lender from
any of its obligations hereunder. This Agreement shall not be construed so as to
confer any right or benefit upon any Person other than the parties (and their
directors, officers and employees with respect to Section 9.7 to this Agreement)
and their respective successors and assigns.
9.7 Expenses; Indemnification.
(a) The Borrower shall reimburse the Administrative Agent for any
reasonable costs, internal charges and out-of-pocket expenses (including
reasonable attorneys' fees and time charges of attorneys for the Administrative
Agent and the Arrangers; which attorneys may be employees of the Administrative
Agent and the Arrangers or of one outside counsel, but not both) paid or
incurred by the Administrative Agent or the Arrangers in connection with the
preparation, negotiation, execution, delivery, syndication, review, amendment,
modification, and administration of the Loan Documents. The Borrower also agrees
to reimburse the Administrative Agent, the Arrangers and the Lenders for any
reasonable costs, internal charges and out-of-pocket expenses (including
reasonable attorneys' fees and time charges of not more than three firms of
attorneys for the Administrative Agent, the Arrangers and the Lenders, which
attorneys may be employees of such persons) paid or incurred by the
Administrative Agent, the Arrangers or any Lender in connection with the
restructuring, workout, collection and/or enforcement of the Loan Documents.
(b) The Borrower further agrees to defend, protect, indemnify, and
hold harmless the Administrative Agent and each and all of the Arrangers and
each of their respective Affiliates, and each of such Person's respective
officers, directors, employees, partners, managers, shareholders, attorneys and
agents (collectively, the "Indemnitees") from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
claims, costs and expenses of any kind or nature whatsoever (including, without
limitation, the reasonable fees and disbursements of attorneys and paralegals
for such Indemnitees in connection with any investigative, administrative or
judicial proceeding, whether or not such Indemnitees shall be designated a party
thereto), imposed on, incurred by or asserted against such Indemnitees in any
manner relating to or arising out of:
(i) this Agreement, the other Loan Documents or any act, event or
transaction related or attendant thereto or to the making of the Syndicated
Loans hereunder, the management of such Syndicated Loans, the use or intended
use of the proceeds of the Syndicated Loans hereunder, or any of the other
transactions contemplated by the Loan Documents; or
(ii) any liabilities, obligations, responsibilities, losses,
damages, personal injury, death, punitive damages, economic damages,
consequential damages, treble damages, intentional, willful or wanton injury,
damage or threat to the environment, natural resources or public health or
welfare, costs and expenses (including, without limitation, attorney, expert and
consulting fees and costs of investigation, feasibility or remedial action
studies), fines, penalties and monetary sanctions and interest, direct or
indirect, known or unknown, absolute or contingent, past, present or future
relating to violation of any Environmental, Health or Safety Requirements of Law
arising from or in connection with the past, present or future operations of the
Borrower, its Subsidiaries or any of their respective predecessors in interest,
or, the past,
49
present or future environmental, health or safety condition of any respective
Property of the Borrower or its Subsidiaries, the presence of
asbestos-containing materials at any respective property of the Borrower or its
Subsidiaries or the release or threatened release of any petroleum, toxic or
hazardous waste or substance into the environment (collectively, the
"Indemnified Matters");
provided, however, the Borrower shall have no obligation to an Indemnitee
hereunder with respect to Indemnified Matters caused solely by or resulting
solely from the willful misconduct or Gross Negligence of such Indemnitee as
determined by the final non-appealable judgment of a court of competent
jurisdiction. If the undertaking to indemnify, pay and hold harmless set forth
in the preceding sentence may be unenforceable because it is violative of any
law or public policy, the Borrower shall contribute the maximum portion which it
is permitted to pay and satisfy under applicable law, to the payment and
satisfaction of all Indemnified Matters incurred by the Indemnitees.
(c) The Borrower further agrees to assert no claim against any of the
Indemnitees on any theory of liability for consequential, special, indirect,
exemplary or punitive damages. No settlement shall be entered into by the
Borrower or any of its Subsidiaries with respect to any claim, litigation,
arbitration or other proceeding relating to or arising out of the transaction
evidenced by this Agreement or the other Loan Documents (whether or not the
Administrative Agent or any Lender or any other Indemnitee is a party thereto)
unless such settlement releases all Indemnitees from any and all liability with
respect thereto. After submission of a written request to an Indemnitee from the
Borrower detailing the nature of any claim, litigation, arbitration or other
proceeding which relates to or arises out of the transaction evidenced by this
Agreement or the other Loan Documents, such Indemnitee shall inform the Borrower
as to whether it will require compliance with the provisions of this clause (c)
or whether it will waive such compliance, any waiver of which shall be
applicable only for such Indemnitee.
(d) The obligations of the Borrower under this Section shall survive
the termination of this Agreement.
9.8 Numbers of Documents.
Subject to Section 13.1 hereof, all statements, notices, closing
documents, and requests hereunder shall be furnished to the Administrative Agent
with sufficient counterparts so that the Administrative Agent, if it deems
appropriate, may furnish one to each of the Lenders.
9.9 Accounting.
Except as provided to the contrary herein, all accounting terms used
herein shall be interpreted and all accounting determinations hereunder shall be
made in accordance with GAAP. If any changes in GAAP are hereafter required or
permitted and are adopted by the Borrower or any of its Subsidiaries with the
agreement of its independent certified public accountants and such changes
result in a change in the method of calculation of any of the financial
covenants, restrictions or standards herein or in the related definitions or
terms used therein ("Accounting Changes"), the parties hereto agree, at the
Borrower's request, to enter into
50
negotiations, in good faith, in order to amend such provisions in a credit
neutral manner so as to reflect equitably such Accounting Changes with the
desired result that the criteria for evaluating the Borrower's and its
Subsidiaries' financial condition shall be the same after such Accounting
Changes as if such Accounting Changes had not been made; provided, however,
until such provisions are amended in a manner reasonably satisfactory to the
Administrative Agent and the Required Lenders, no Accounting Change shall be
given effect in such calculations and all financial statements and reports
required to be delivered hereunder shall be prepared in accordance with GAAP
without taking into account such Accounting Changes. In the event such amendment
is entered into, all references in this Agreement to GAAP shall mean generally
accepted accounting principles in effect as of the date of such amendment.
9.10 Severability of Provisions.
Any provision in any Loan Document that is held to be inoperative,
unenforceable, or invalid in any jurisdiction shall, as to that jurisdiction, be
inoperative, unenforceable, or invalid without affecting the remaining
provisions in that jurisdiction or the operation, enforceability, or validity of
that provision in any other jurisdiction, and to this end the provisions of all
Loan Documents are declared to be severable.
9.11 Nonliability of Lenders.
The relationship between the Borrower, on the one hand, and the
Lenders and the Administrative Agent, on the other hand, shall be solely that of
borrower and lender. Neither the Administrative Agent nor any Lender shall have
any fiduciary responsibilities to the Borrower or any of its Subsidiaries.
Neither the Administrative Agent nor any Lender undertakes any responsibility to
the Borrower or any of its Subsidiaries to review or inform the Borrower or any
of its Subsidiaries of any matter in connection with any phase of the business
or operations of the Borrower or any of its Subsidiaries.
9.12 GOVERNING LAW.
THE ADMINISTRATIVE AGENT ACCEPTS THIS AGREEMENT, ON BEHALF OF ITSELF
AND THE LENDERS, AT NEW YORK, NEW YORK BY ACKNOWLEDGING AND AGREEING TO IT
THERE. ANY DISPUTE BETWEEN THE BORROWER AND ANY OF THE ADMINISTRATIVE AGENT, ANY
LENDER, OR ANY OTHER HOLDER OF THE OBLIGATIONS ARISING OUT OF, CONNECTED WITH,
RELATED TO OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN
CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS, AND WHETHER
ARISING IN CONTRACT, TORT, EQUITY OR OTHERWISE, SHALL BE RESOLVED IN ACCORDANCE
WITH THE INTERNAL LAWS (WITHOUT REGARD TO THE CONFLICTS OF LAWS PROVISIONS) OF
THE STATE OF NEW YORK, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL
BANKS.
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9.13 CONSENT TO JURISDICTION; SERVICE OF PROCESS; JURY TRIAL.
(a) JURISDICTION. THE BORROWER HEREBY IRREVOCABLY SUBMITS TO THE
NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR NEW YORK STATE COURT
SITTING IN NEW YORK, NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO ANY LOAN DOCUMENTS AND THE BORROWER HEREBY IRREVOCABLY AGREES THAT
ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED
IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER
HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A
COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM, BUT THE BORROWER ACKNOWLEDGES
THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED
OUTSIDE OF NEW YORK, NEW YORK. EXCEPT AS SET FORTH IN CLAUSE (B) BELOW, ANY
JUDICIAL PROCEEDING BY THE ADMINISTRATIVE AGENT, THE SWING LINE LENDER, ANY
ISSUING LENDER OR ANY LENDER ARISING OUT OF OR RELATING TO THIS CREDIT AGREEMENT
OR ANY OF THE OTHER LOAN DOCUMENTS IF BROUGHT OTHER THAN IN ANY UNITED STATES
FEDERAL OR NEW YORK STATE COURT SITTING IN NEW YORK, NEW YORK, SHALL BE BROUGHT
ONLY IN A COURT IN BOSTON, MASSACHUSETTS. ANY JUDICIAL PROCEEDING BY THE
BORROWER AGAINST THE ADMINISTRATIVE AGENT, THE SWING LINE LENDER, ANY ISSUING
LENDER OR ANY LENDER OR ANY AFFILIATE OF ANY SUCH PERSON INVOLVING, DIRECTLY OR
INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO OR CONNECTED WITH
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL BE BROUGHT ONLY IN A COURT IN
NEW YORK, NEW YORK OR BOSTON, MASSACHUSETTS, TO THE EXTENT THAT JURISDICTION CAN
BE OBTAINED AGAINST SUCH PERSONS IN ANY SUCH JURISDICTION, BUT THE PARTIES
HERETO ACKNOWLEDGE THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A
COURT LOCATED OUTSIDE OF NEW YORK, NEW YORK OR BOSTON, MASSACHUSETTS. EACH OF
THE PARTIES HERETO WAIVES IN ALL DISPUTES BROUGHT IN THE JURISDICTIONS
IDENTIFIED IN THIS CLAUSE (A) ANY OBJECTION THAT IT MAY HAVE TO THE LOCATION OF
THE COURT CONSIDERING THE DISPUTE PROVIDED, WITH RESPECT TO THE ADMINISTRATIVE
AGENT OR ANY LENDER, PERSONAL JURISDICTION WITH RESPECT TO SUCH PARTY MAY BE
OBTAINED IN SUCH JURISDICTION.
(b) OTHER JURISDICTIONS. NOTHING HEREIN SHALL LIMIT THE RIGHT OF ANY
PERSON TO BRING ANY ACTION HEREUNDER IN A COURT IN ANY LOCATION TO ENABLE SUCH
PERSON TO OBTAIN PERSONAL JURISDICTION OVER ANY OTHER PERSON WITH RESPECT
HERETO. THE BORROWER AGREES THAT THE ADMINISTRATIVE AGENT ANY LENDER OR ANY
OTHER HOLDER OF THE OBLIGATIONS SHALL HAVE THE RIGHT TO PROCEED AGAINST THE
BORROWER OR ITS PROPERTY IN A COURT IN ANY LOCATION TO ENABLE SUCH PERSON TO
ENFORCE A JUDGMENT OR OTHER COURT ORDER ENTERED IN FAVOR OF SUCH PERSON. THE
BORROWER AGREES THAT IT WILL NOT ASSERT ANY PERMISSIVE
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COUNTERCLAIMS IN ANY PROCEEDING BROUGHT UNDER THIS CLAUSE (B) BY SUCH PERSON TO
ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF SUCH PERSON, ALL OF WHICH
PERMISSIVE COUNTERCLAIMS SHALL BE BROUGHT BY THE BORROWER IN THE JURISDICTIONS
IDENTIFIED IN CLAUSE (A) ABOVE. THE BORROWER WAIVES ANY OBJECTION THAT IT MAY
HAVE TO THE LOCATION OF THE COURT IN WHICH SUCH PERSON HAS COMMENCED A
PROCEEDING DESCRIBED IN THIS CLAUSE (B).
(c) SERVICE OF PROCESS; INCONVENIENT FORUM. THE BORROWER WAIVES
PERSONAL SERVICE OF ANY PROCESS UPON IT AND AGREES THAT ANY SUCH PROCESS MAY BE
SERVED BY REGISTERED MAIL TO THE BORROWER AT ITS ADDRESS FOR NOTICES PURSUANT TO
SECTION 13.1. THE BORROWER IRREVOCABLY WAIVES ANY OBJECTION (INCLUDING, WITHOUT
LIMITATION, ANY OBJECTION OF THE LAYING OF VENUE OR BASED ON THE GROUNDS OF
FORUM NON CONVENIENS) WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY
SUCH ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER
INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH
IN ANY JURISDICTION SET FORTH ABOVE.
(d) WAIVER OF JURY TRIAL. TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ANY RIGHT TO HAVE
A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT
OR OTHERWISE, ARISING OUT OF, CONNECTED WITH, RELATED TO OR INCIDENTAL TO THE
RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AGREEMENT OR ANY
OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION
HEREWITH. EACH OF THE PARTIES HERETO AGREES AND CONSENTS THAT ANY SUCH CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY
AND THAT ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS
AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES
HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.
(e) ADVICE OF COUNSEL. EACH OF THE PARTIES REPRESENTS TO EACH OTHER
PARTY HERETO THAT IT HAS DISCUSSED THIS AGREEMENT AND, SPECIFICALLY, THE
PROVISIONS OF THIS SECTION 9.13 WITH ITS COUNSEL.
9.14 Confidentiality.
Each Lender agrees to hold any confidential information which it may
receive from the Borrower pursuant to this Agreement in confidence, except for
disclosure (i) to other Lenders and its and their respective Affiliates,
Transferees and prospective Transferees (each of whom by its acceptance thereof,
agrees to be bound by the terms of this Section 9.14), (ii) in confidence to
legal counsel, accountants and other professional advisors to that Lender or to
Transferees or prospective Transferees pursuant to Section 12.5, (iii) to
regulatory officials, (iv)
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to any Person as requested (which request such Lender reasonably believes could
give rise to mandatory disclosure) or pursuant to or as required by law,
regulation or legal process, (v) to any Person in connection with any legal
proceeding to which that Lender is a party with respect to any claim,
litigation, arbitration or other proceeding relating to or arising out of the
transaction evidenced by this Agreement or the other Loan Documents, (vi) to any
Person in connection with any other legal proceeding to which that Lender is a
party, provided, that such Lender uses reasonable efforts to give the Borrower
notice of any disclosure thereunder to the extent that such Lender may lawfully
do so and provided, further, that any failure in such regard shall not result in
any liability on the part of such Lender, and (vii) permitted by Section 12.5.
ARTICLE X
THE ADMINISTRATIVE AGENT
10.1 Appointment; Nature of Relationship.
Bank of America is appointed by the Lenders as the Administrative
Agent hereunder and under each other Loan Document, and each of the Lenders
irrevocably authorizes the Administrative Agent to act as the contractual
representative of such Person with the rights and duties expressly set forth
herein and in the other Loan Documents. The Administrative Agent agrees to act
as such contractual representative upon the express conditions contained in this
Article X. Notwithstanding the use of the defined term "Administrative Agent" or
"agent" in reference to Bank of America, it is expressly understood and agreed
that the Administrative Agent shall not have any fiduciary responsibilities to
any Lender by reason of this Agreement and that the Administrative Agent is
merely acting as the representative of the Lenders with only those duties as are
expressly set forth in this Agreement and the other Loan Documents. In its
capacity as such contractual representative, the Administrative Agent (i) does
not assume any fiduciary duties to any of the Lenders, (ii) is a
"representative" of the Lenders within the meaning of Section 9-102 of the
Uniform Commercial Code and (iii) is acting as an independent contractor, the
rights and duties of which are limited to those expressly set forth in this
Agreement and the other Loan Documents. Each of the Lenders agrees to assert no
claim against the Administrative Agent on any agency theory or any other theory
of liability for breach of fiduciary duty, all of which claims each Lender
waives.
10.2 Powers.
The Administrative Agent shall have and may exercise such powers under
the Loan Documents as are specifically delegated to the Administrative Agent by
the terms of each thereof, together with such powers as are reasonably
incidental thereto. The Administrative Agent shall have no implied duties or
fiduciary duties to the Lenders, or any obligation to the Lenders to take any
action hereunder or under any of the other Loan Documents except any action
specifically provided by the Loan Documents required to be taken by the
Administrative Agent.
10.3 General Immunity.
Neither the Administrative Agent nor any of its Affiliates nor their
respective Affiliates, directors, officers, agents or employees shall be liable
to the Borrower or any Lender
54
for any action taken or omitted to be taken by it or them hereunder or under any
other Loan Document or in connection herewith or therewith except to the extent
such action or inaction is found in a final judgment by a court of competent
jurisdiction to have arisen solely from the Gross Negligence or willful
misconduct of such Person.
10.4 No Responsibility for Syndicated Loans, Creditworthiness,
Collateral, Recitals, Etc.
Neither the Administrative Agent nor any of its directors, officers,
agents or employees shall be responsible for or have any duty to ascertain,
inquire into or verify (i) any statement, warranty or representation made in
connection with any Loan Document or any extension of credit hereunder; (ii) the
performance or observance of any of the covenants or agreements of the Borrower,
any Subsidiary or any other obligor under any Loan Document; (iii) the
satisfaction of any condition specified in Article IV, except receipt of items
required to be delivered solely to the Administrative Agent; (iv) the existence
or possible existence of any Default or Unmatured Default; or (v) the validity,
effectiveness or genuineness of any Loan Document or any other instrument or
writing furnished in connection therewith. The Administrative Agent shall not be
responsible to any Lender for any recitals, statements, representations or
warranties herein or in any of the other Loan Documents or for the execution,
effectiveness, genuineness, validity, legality, enforceability, collectibility
or sufficiency of this Agreement or any of the other Loan Documents or the
transactions contemplated thereby, or for the financial condition of the
Borrower or any of its Subsidiaries. The Administrative Agent will use its
reasonable efforts to distribute to each of the Lenders, in a timely fashion, a
copy of all written reports, certificates and information required to be
supplied by the Borrower or any of its Subsidiaries to the Administrative Agent
pursuant to the terms of this Agreement or any of the other Loan Documents;
provided that any failure in such regard shall not result in any liability on
the part of the Administrative Agent and provided, further that the
Administrative Agent shall have no duty to disclose to the Lenders information
that is not required to be furnished by the Borrower to the Administrative Agent
at such time, but is voluntarily furnished by the Borrower to the Administrative
Agent (either in its capacity as Administrative Agent or in its individual
capacity) or any of its Affiliates.
10.5 Action on Instructions of Lenders.
The Administrative Agent shall in all cases be fully protected in
acting, or in refraining from acting, hereunder and under any other Loan
Document in accordance with written instructions signed by the Required Lenders
or all of the Lenders (as applicable under Section 8.2 or under any other
provision of this Agreement or any other Loan Document), and such instructions
and any action taken or failure to act pursuant thereto shall be binding on all
of the Lenders and any other holders of the Obligations. The Administrative
Agent shall be fully justified in failing or refusing to take any action
hereunder and under any other Loan Document unless it shall first be indemnified
to its satisfaction (which shall not include any requirement that it be
indemnified for its willful misconduct or Gross Negligence) by the Lenders pro
rata against any and all liability, cost and expense that it may incur by reason
of taking or continuing to take any such action.
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10.6 Employment of Agents and Counsel.
The Administrative Agent may execute any of its duties as the
Administrative Agent hereunder and under any other Loan Document by or through
employees, agents and attorneys-in-fact and shall not be answerable to the
Lenders, except as to money or securities received by it or its authorized
agents, for the default or misconduct of any such agents or attorneys-in-fact
selected by it with reasonable care. The Administrative Agent shall be entitled
to advice of counsel concerning the contractual arrangement between the
Administrative Agent and the Lenders and all matters pertaining to the
Administrative Agent's duties hereunder and under any other Loan Document.
10.7 Reliance on Documents; Counsel.
The Administrative Agent shall be entitled to rely upon any Loan
Document, notice, consent, certificate, affidavit, letter, telegram, statement,
paper or document (including any electronic transmission) believed by it to be
genuine and correct and to have been signed or sent or given by the proper
person or persons, and, in respect of legal matters, upon the opinion of counsel
selected by the Administrative Agent, which counsel may be employees of the
Administrative Agent and which counsel may have acted as counsel for the
Administrative Agent in connection with the negotiation and execution of this
Agreement and the other Loan Documents.
10.8 The Administrative Agent's Reimbursement and Indemnification.
The Lenders agree to reimburse and indemnify the Administrative Agent
ratably in proportion to their respective Pro Rata Shares (i) for any amounts
not reimbursed by the Borrower for which the Administrative Agent is entitled to
reimbursement by the Borrower under the Loan Documents, (ii) for any other
expenses incurred by the Administrative Agent on behalf of the Lenders, in
connection with the preparation, execution, delivery, administration and
enforcement of the Loan Documents (including with respect to any disagreement
between or among any of the Administrative Agent or Lenders) and (iii) for any
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind and nature whatsoever which may be
imposed on, incurred by or asserted against the Administrative Agent in any way
relating to or arising out of the Loan Documents or any other document delivered
in connection therewith or the transactions contemplated thereby, or the
enforcement of any of the terms thereof or of any such other documents, provided
that no Lender shall be liable for any of the foregoing to the extent any of the
foregoing is found in a final non-appealable judgment by a court of competent
jurisdiction to have arisen solely from the Gross Negligence or willful
misconduct of the Administrative Agent.
10.9 Rights as a Lender.
With respect to its Commitment, Syndicated Loans made by it, and
Syndicated Notes (if any) issued to it, Bank of America (or any other Person
succeeding it as the Administrative Agent) shall have the same rights and powers
hereunder and under any other Loan Document as any Lender, and may exercise the
same as though it were not the Administrative Agent, and the terms "Lender" and
"Lenders" shall, unless the context otherwise
56
indicates, include Bank of America (or any other Person succeeding it as the
Administrative Agent) in its individual capacity. Bank of America (or any other
Person succeeding it as the Administrative Agent) and its Affiliates may accept
deposits from, lend money to, and generally engage in any kind of trust, debt,
equity or other transaction, in addition to those contemplated by this Agreement
or any other Loan Document, with the Borrower or any of its Subsidiaries in
which such Person is not prohibited hereby from engaging with any other Person.
10.10 Lender Credit Decision.
Each Lender acknowledges that it has, independently and without
reliance upon the Administrative Agent or any other Lender and based on the
financial statements prepared by the Borrower and its Subsidiaries and such
other documents and information as it has deemed appropriate, made its own
credit analysis and decision to enter into this Agreement and the other Loan
Documents. Each Lender also acknowledges that it will, independently and without
reliance upon the Administrative Agent or any other Lender and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under this
Agreement and the other Loan Documents.
10.11 Successor Administrative Agent.
The Administrative Agent may resign at any time by giving written
notice thereof to the Lenders and the Borrower, and the Administrative Agent may
be removed at any time with or without cause by written notice received by the
Administrative Agent from the Required Lenders. Upon any such resignation or
removal, the Required Lenders shall have the right to appoint, without the
consent of the Borrower and on behalf of the Lenders, a successor Administrative
Agent. If no successor Administrative Agent shall have been so appointed by the
Required Lenders and shall have accepted such appointment within thirty days
after the retiring Administrative Agent's giving notice of resignation, then the
retiring Administrative Agent may appoint, without the consent of the Borrower
and on behalf of the Lenders, a successor Administrative Agent, which successor
Administrative Agent shall be a Lender unless no Lender shall so agree in which
event such successor Administrative Agent may be a Person of the Administrative
Agent's choosing. Notwithstanding anything herein to the contrary, so long as no
Default has occurred and is continuing, each such successor Administrative Agent
shall be subject to approval by the Borrower, which approval shall not be
unreasonably withheld. Such successor Administrative Agent shall be a commercial
bank having capital and retained earnings of at least $100,000,000. Upon the
acceptance of any appointment as the Administrative Agent hereunder by a
successor Administrative Agent, such successor Administrative Agent shall
thereupon succeed to and become vested with all the rights, powers, privileges
and duties of the retiring Administrative Agent, and the retiring Administrative
Agent shall be discharged from its duties and obligations hereunder and under
the other Loan Documents. After any retiring Administrative Agent's resignation
hereunder as Administrative Agent, the provisions of this Article X 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 the Administrative Agent hereunder and
under the other Loan Documents.
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10.12 No Duties Imposed on Syndication Agents, Documentation Agents or
Arrangers.
None of the Persons identified on the cover page to this Agreement,
the signature pages to this Agreement or otherwise in this Agreement as a
"Syndication Agent," "Documentation Agent" or "Arranger" shall have any right,
power, obligation, liability, responsibility or duty under this Agreement other
than, if such Person is a Lender, those applicable to all Lenders as such.
Without limiting the foregoing, none of the Persons identified on the cover page
to this Agreement, the signature pages to this Agreement or otherwise in this
Agreement as a "Syndication Agent," "Documentation Agent" or "Arranger" shall
have or be deemed to have any fiduciary duty to or fiduciary relationship with
any Lender. In addition to the agreement set forth in Section 10.12, each of the
Lenders acknowledges that it has not relied, and will not rely, on any of the
Persons so identified in deciding to enter into this Agreement or in taking or
not taking action hereunder.
10.13 Administrative Agent's Fee.
The Borrower agrees to pay to the Administrative Agent, for its own
account, the fees agreed to by the Borrower and the Administrative Agent by
separate letter agreement, or as otherwise agreed from time to time.
ARTICLE XI
SETOFF; RATABLE PAYMENTS
11.1 Setoff.
In addition to, and without limitation of, any rights of the Lenders
under applicable law, if the Borrower becomes insolvent, however evidenced, or
any Default or Unmatured Default occurs and is continuing, any and all deposits
(including all account balances, whether provisional or final and whether or not
collected or available) and any other Indebtedness at any time held or owing by
any Lender to or for the credit or account of the Borrower may be offset and
applied toward the payment of the Obligations owing to such Lender, whether or
not the Obligations, or any part hereof, shall then be due.
11.2 Ratable Payments.
If any Lender, whether by setoff or otherwise, has payment made to it
upon its Syndicated Loans (other than payments received pursuant to Section 3.1,
3.2 or 3.4) in a greater proportion than that received by any other Lender, such
Lender agrees, promptly upon demand, to purchase a portion of the Syndicated
Loans held by the other Lenders so that after such purchase each Lender will
hold its ratable proportion of Syndicated Loans. If any Lender, whether in
connection with setoff or amounts which might be subject to setoff or otherwise,
receives collateral or other protection for its Obligations or such amounts
which may be subject to setoff, such Lender agrees, promptly upon demand, to
take such action necessary such that all Lenders share in the benefits of such
collateral ratably in proportion to their Syndicated Loans. In case any such
payment is disturbed by legal process, or otherwise, appropriate further
adjustments shall be made.
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11.3 Application of Payments.
The Administrative Agent shall, unless otherwise specified at the
direction of the Required Lenders which direction shall be consistent with the
last sentence of this Section 11.3, apply all payments and prepayments in
respect of any Obligations in the following order:
(a) first, to pay interest on and then principal of any portion of the
Syndicated Loans which the Administrative Agent may have advanced on behalf of
any Lender for which the Administrative Agent has not then been reimbursed by
such Lender or the Borrower;
(b) second, to pay Obligations in respect of any fees, expense
reimbursements or indemnities then due to the Administrative Agent in its
capacity as such;
(c) third, to the ratable payment of Obligations in respect of any
fees, expenses, reimbursements or indemnities then due to the Lenders;
(d) fourth, to pay interest due in respect of Syndicated Loans;
(e) fifth, to the ratable payment or prepayment of principal
outstanding on Syndicated Loans in such order as the Administrative Agent may
determine in its sole discretion; and
(f) sixth, to the ratable payment of all other Obligations.
Unless otherwise designated (which designation shall only be applicable if no
Default has occurred and is continuing) by the Borrower or unless otherwise
mandated by the terms of this Agreement, all principal payments in respect of
Syndicated Loans shall be applied first, to repay outstanding Floating Rate
Loans, and then to repay outstanding Eurodollar Loans with those Eurodollar
Loans which have earlier expiring Interest Periods being repaid prior to those
which have later expiring Interest Periods. The order of priority set forth in
this Section 11.3 and the related provisions of this Agreement are set forth
solely to determine the rights and priorities of the Administrative Agent and
the Lenders as among themselves. The order of priority set forth in clauses (d)
through (h) of this Section 11.3 may at any time and from time to time be
changed by the Required Lenders without necessity of notice to or consent of or
approval by Borrower or any other Person. The order of priority set forth in
clauses (a) and (b) of this Section 11.3 may be changed only with the prior
written consent of the Administrative.
ARTICLE XII
BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS
12.1 Successors and Assigns.
The terms and provisions of the Loan Documents shall be binding upon
and inure to the benefit of the Borrower, the Administrative Agent and the
Lenders and their respective successors and assigns, except that (a) the
Borrower shall not have the right to assign its rights or obligations under the
Loan Documents without the consent of all of the Lenders and (b) any assignment
by any Lender must be made in compliance with Section 12.3. Notwithstanding
clause (b) of the preceding sentence, any Lender may at any time, without the
consent of the
59
Borrower or the Administrative Agent, assign all or any portion of its rights
under this Agreement and its Syndicated Notes to a Federal Reserve Bank;
provided, however, that no such assignment shall release the transferor Lender
from its obligations hereunder. The Administrative Agent may treat the Person
which made any Syndicated Loan or which holds any Syndicated Note as the owner
thereof for all purposes hereof unless and until such Person complies with
Section 12.3 in the case of an assignment thereof or, in the case of any other
transfer, a written notice of the transfer is filed with the Administrative
Agent. Any assignee or transferee of the rights to any Syndicated Loan or any
Syndicated Note agrees by acceptance of such transfer or assignment to be bound
by all the terms and provisions of the Loan Documents. Any request, authority or
consent of any Person, who at the time of making such request or giving such
authority or consent is the owner of the rights to any Syndicated Loan (whether
or not a Syndicated Note has been issued in evidence thereof), shall be
conclusive and binding on any subsequent holder, transferee or assignee of the
rights to such Syndicated Loan.
12.2 Participations.
12.2.1 Permitted Participants; Effect. Any Lender may, in the ordinary
course of its business and in accordance with applicable law, at any time sell
to one or more banks or other Eligible Participants (a "Participant")
participating interests in any Syndicated Loan owing to such Lender, any
Syndicated Note held by such Lender, the Commitment of such Lender or any other
interest of such Lender under the Loan Documents. In the event of any such sale
by a Lender of participating interests to a Participant, such Lender's
obligations under the Loan Documents shall remain unchanged, such Lender shall
remain solely responsible to the other parties hereto for the performance of
such obligations, such Lender shall remain the owner of its Syndicated Loans and
the holder of any Syndicated Note issued to it for all purposes under the Loan
Documents, all amounts payable by the Borrower under this Agreement shall be
determined as if such Lender had not sold such participating interests, and the
Borrower and the Administrative Agent shall continue to deal solely and directly
with such Lender in connection with such Lender's rights and obligations under
the Loan Documents. The participation agreement effecting the sale of any
participating interest shall contain a representation by the Participant to the
effect that none of the consideration used to make the purchase of the
participating interest in the Commitment and Syndicated Loans under such
participation agreement are "plan assets" as defined under ERISA and that the
rights and interests of the Participant in and under the Loan Documents will not
be "plan assets" under ERISA.
12.2.2 Voting Rights. Each Lender shall retain the sole right to
approve, without the consent of any Participant, any amendment, modification or
waiver of any provision of the Loan Documents other than any amendment,
modification or waiver with respect to any Syndicated Loan or Commitment in
which such Participant has an interest which would require the consent of such
Participant under Section 8.2(a) if such Participant were a Lender.
12.2.3 Benefit of Setoff and Other Provisions. The Borrower agrees
that to the extent permitted by law each Participant shall be deemed to have the
right of setoff provided in Section 11.1 in respect of its participating
interest in amounts owing under the Loan Documents to the same extent as if the
amount of its participating interest were owing directly to it as a Lender under
the Loan Documents, provided that each Lender shall retain the right of setoff
provided in Section 11.1 with respect to the amount of participating interests
sold to each
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Participant. The Lenders agree to share with each Participant, and each
Participant, by exercising the right of setoff provided in Section 11.1, agrees
to share with each Lender, any amount received pursuant to the exercise of its
right of setoff, such amounts to be shared in accordance with Section 11.2 as if
each Participant were a Lender. The Borrower agrees that each Participant shall
be entitled to the benefits of Sections 3.1, 3.2 and 3.4 to the same extent as
if it were a Lender and had acquired its interest by assignment pursuant to
Section 12.3; provided, however, that in no event shall the Borrower be
obligated to make any payment with respect to such Sections which is greater
than the amount that the Borrower would have paid to the Lender had no such
participating interest been sold.
12.3 Assignments.
12.3.1 Permitted Assignments. Any Lender may, in the ordinary course
of its business and in accordance with applicable law, at any time assign to one
or more commercial banks ("Purchasers") all or any part of its Commitment and
outstanding Syndicated Loans, together with its rights and obligations under the
Loan Documents with respect thereto; provided, however, that the amount of the
Commitment of the assigning Lender being assigned pursuant to each such
assignment (determined as of the date of such assignment) may be in the amount
of such Lender's entire Commitment but otherwise shall not be less than
$10,000,000 or an integral multiple of $1,000,000 in excess of that amount. Such
assignment shall be substantially in the form of Exhibit D hereto or in such
other form as may be agreed to by the parties thereto. The consent of the
Borrower and the Administrative Agent shall be required prior to an assignment
becoming effective (neither of which consents may be unreasonably withheld or
delayed); provided, however, that if a Default has occurred and is continuing,
the consent of the Borrower shall not be required.
12.3.2 Effect; Effective Date. Upon (a) delivery to the Administrative
Agent of a notice of assignment, substantially in the form attached to Exhibit D
hereto (a "Notice of Assignment"), together with any consents required by
Section 12.3.1, and (b) payment of a $3,500 fee to the Administrative Agent for
processing such assignment, such assignment shall become effective on the
effective date specified in such Notice of Assignment. The Notice of Assignment
shall contain a representation by the Purchaser to the effect that none of the
consideration used to make the purchase of the Commitment and Syndicated Loans
under the applicable assignment agreement are "plan assets" as defined under
ERISA and that the rights and interests of the Purchaser in and under the Loan
Documents will not be "plan assets" under ERISA. On and after the effective date
of such assignment, such Purchaser shall for all purposes be a Lender party to
this Agreement and any other Loan Document executed by the Lenders and shall
have all the rights and obligations of a Lender under the Loan Documents, to the
same extent as if it were an original party hereto and thereto, and no further
consent or action by the Borrower, the Lenders or the Administrative Agent shall
be required to release the transferor Lender with respect to the percentage of
the Aggregate Commitment and Syndicated Loans assigned to such Purchaser. Upon
the consummation of any assignment to a Purchaser pursuant to this Section
12.3.2, the transferor Lender, the Administrative Agent, and the Borrower shall
make appropriate arrangements so that, if the transferor Lender desires that its
Syndicated Loans be evidenced by Syndicated Notes, replacement Syndicated Notes
are issued to such transferor Lender and, if the Purchaser desires that its
Syndicated Loans be evidenced by Syndicated Notes, new Syndicated Notes or, as
appropriate, replacement Syndicated Notes, are issued to such
61
Purchaser, in each case in principal amounts reflecting its Commitment, as
adjusted pursuant to such assignment.
12.4 Designated Lenders.
(a) Subject to the terms and conditions set forth in this Section
12.4(a), any Lender may from time to time elect to designate an Eligible
Designee to provide all or any part of the Syndicated Loans to be made by such
Lender pursuant to this Agreement; provided the designation of an Eligible
Designee by any Lender for purposes of this Section 12.4(a) shall be subject to
the approval of the Borrower (so long as no Default has occurred and is
continuing) and the Administrative Agent (which consents shall not be
unreasonably withheld or delayed). Upon the execution by the parties to each
such designation of an agreement in the form of Exhibit I hereto (a "Designation
Agreement") and the acceptance thereof by the Borrower (if required) and the
Administrative Agent, the Eligible Designee shall become a Designated Lender for
purposes of this Agreement. The Designating Lender shall thereafter have the
right to permit the Designated Lender to provide all or a portion of the
Syndicated Loans to be made by the Designating Lender pursuant to the terms of
this Agreement and the making of such Syndicated Loans or portion thereof shall
satisfy the obligation of the Designating Lender to the same extent, and as if,
such Syndicated Loan was made by the Designating Lender. As to any Syndicated
Loan made by it, each Designated Lender shall have all the rights a Lender
making such Syndicated Loan would have under this Agreement and otherwise;
provided, (x) that all voting rights under this Agreement shall be exercised
solely by the Designating Lender and (y) each Designating Lender shall remain
solely responsible to the other parties hereto for its obligations under this
Agreement, including the obligations of a Lender in respect of Syndicated Loans
made by its Designated Lender. If the Designating Lender's Syndicated Loans are
evidenced by Syndicated Notes, no additional Syndicated Notes shall be required
with respect to Syndicated Loans provided by a Designated Lender; provided,
however, to the extent any Designated Lender shall advance funds, the
Designating Lender shall be deemed to hold any Syndicated Notes in its
possession as an agent for such Designated Lender to the extent of the
Syndicated Loan funded by such Designated Lender. Such Designating Lender shall
act as administrative agent for its Designated Lender and give and receive
notices and communications hereunder. Any payments for the account of any
Designated Lender shall be paid to its Designating Lender as administrative
agent for such Designated Lender and neither the Borrower nor the Administrative
Agent shall be responsible for any Designating Lender's application of any such
payments. In addition, any Designated Lender may (i) with notice to, but without
the consent of the Borrower and the Administrative Agent, assign all or portions
of its interests in any Syndicated Loans to its Designating Lender or to any
financial institution consented to by the Borrower (so long as no Default has
occurred and is continuing) and the Administrative Agent providing liquidity
and/or credit facilities to or for the account of such Designated Lender and
(ii) subject to advising any such Person that such information is to be treated
as confidential in accordance with such Person's customary practices for dealing
with confidential, non-public information, disclose on a confidential basis any
non-public information relating to its Syndicated Loans to any rating agency,
commercial paper dealer or provider of any guarantee, surety or credit or
liquidity enhancement to such Designated Lender.
(b) Each party to this Agreement hereby agrees that it shall not
institute against, or join any other person in instituting against any
Designated Lender any bankruptcy,
62
reorganization, arrangements, insolvency or liquidation proceeding or other
proceedings under any federal or state bankruptcy or similar law for one year
and a day after the payment in full of all outstanding senior indebtedness of
any Designated Lender; provided that the Designating Lender for each Designated
Lender hereby agrees to indemnify, save and hold harmless each other party
hereto for any loss, cost, damage and expense arising out of their inability to
institute any such proceeding against such Designated Lender. This Section
12.4(b) shall survive the termination of this Agreement.
12.5 Dissemination of Information.
The Borrower authorizes each Lender to disclose to any Participant or
Purchaser or any other Person acquiring an interest in the Loan Documents by
operation of law (each a "Transferee") and any prospective Transferee any and
all information in such Lender's possession concerning the creditworthiness of
the Borrower and its Subsidiaries; provided that each Transferee and prospective
Transferee agrees to be bound by Section 9.14 of this Agreement.
12.6 Tax Treatment.
If any interest in any Loan Document is transferred to any Transferee
which is organized under the laws of any jurisdiction other than the United
States or any State thereof, the transferor Lender shall cause such Transferee,
concurrently with the effectiveness of such transfer, to comply with the
provisions of Section 2.18.
ARTICLE XIII
NOTICES
13.1 Giving Notice.
(a) Except as otherwise permitted by Section 2.14(b) with respect to
telephonic notices or as elsewhere provided herein, all notices and other
communications provided to any party hereto under this Agreement or any other
Loan Document shall be in writing or by telex or by facsimile and addressed or
delivered to such party at its address set forth below its signature hereto or
at such other address as may be designated by such party in a notice to the
other parties. Any notice, if mailed and properly addressed with postage
prepaid, shall be deemed given when received; any notice, if transmitted by
telex or facsimile, shall be deemed given when transmitted (answerback confirmed
in the case of telexes).
(b) The Borrower hereby agrees that the Administrative Agent may make
available to the Lenders materials and/or information provided by or on behalf
of the Borrower hereunder, including, but not limited to, any documents
furnished by the Borrower to the Administrative Agent pursuant to Section 6.1
(collectively, "Borrower Materials") by posting the Borrower Materials on
IntraLinks or another similar electronic system (the "Platform"). The Borrower
agrees that the Administrative Agent shall be entitled to treat any Borrower
Materials that are not marked "PUBLIC" as being suitable only for posting on the
portion of the Platform not designated "Public Investor". The Borrower
acknowledges that the distribution of material through an electronic medium is
not necessarily secure and that there are confidentiality and other risks
associated with such distribution. THE PLATFORM IS PROVIDED "AS IS" AND
63
"AS AVAILABLE." THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY
OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND
EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER
MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY
WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT
OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY
ANY AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM. In no
event shall the Administrative Agent or any of its officers, directors,
employees or agents (collectively, the "Agent Parties") have any liability to
the Borrower, any Lender or any other Person for losses, claims, damages,
liabilities or expenses of any kind (whether in tort, contract or otherwise)
arising out of the Borrower's or the Administrative Agent's transmission of
Borrower Materials through the Internet, except to the extent that such losses,
claims, damages, liabilities or expenses are determined by a court of competent
jurisdiction by a final judgment to have resulted from the Gross Negligence or
willful misconduct of such Agent Party; provided, however, that in no event
shall any Agent Party have any liability to the Borrower, any Lender or any
other Person for indirect, special, incidental, consequential or punitive
damages (as opposed to direct or actual damages).
(c) Each Lender agrees that notice to it (as provided in the next
sentence) specifying that the Borrower Materials have been posted to the
Platform shall constitute effective delivery of the Borrower Materials to such
Lender for purposes of this Agreement or any other Loan Document. Each Lender
agrees to notify the Administrative Agent in writing (including by electronic
communication) from time to time of such Lender's e-mail address to which the
foregoing notice may be sent by electronic transmission and (ii) that the
foregoing notice may be sent to such e-mail address.
13.2 Change of Address.
The Borrower, the Administrative Agent and any Lender may each change
the address for service of notice upon it by a notice in writing to the other
parties hereto.
ARTICLE XIV
COUNTERPARTS
This Agreement may be executed in any number of counterparts, all of
which taken together shall constitute one agreement, and any of the parties
hereto may execute this Agreement by signing any such counterpart. Subject to
Section 4.1, this Agreement shall be effective when it has been executed by the
Borrower, the Administrative Agent and the Lenders and each party has notified
the Administrative Agent by telex or telephone that it has taken such action.
64
ARTICLE XV
USA PATRIOT ACT NOTICE
Each Lender hereby notifies the Borrower that, pursuant to the
requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into
law October 26, 2001)) (the "Patriot Act"), it is required to obtain, verify and
record information that identifies the Borrower, which information includes the
name and address of the Borrower and other information that will allow such
Lender to identify the Borrower in accordance with the Patriot Act.
[Remainder of this Page Intentionally Blank]
65
IN WITNESS WHEREOF, the Borrower, the Lenders and the Administrative
Agent have executed this Agreement as of the date first above written.
THE TJX COMPANIES, INC.,
as the Borrower
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
------------------------------------
Name: ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
------------------------------
Title: Vice President -- Finance,
Treasurer
-----------------------------
Address:
▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, Vice
President-Finance, Treasurer
Telephone No.: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile No.: (▇▇▇) ▇▇▇-▇▇▇▇
E-mail: ▇▇▇▇_▇▇▇▇▇▇▇▇@▇▇▇.▇▇▇
BANK OF AMERICA, N.A.,
as a Lender and as Administrative Agent
By: /s/ ▇▇▇ Honey
------------------------------------
Name: ▇▇▇ Honey
Title: Senior Vice President
Address:
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
----------------------------------------
TX1-492-64-01
----------------------------------------
▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
----------------------------------------
Telephone No: ▇▇▇.▇▇▇.▇▇▇▇
--------------------------
Facsimile No.: 214.209.0905
-------------------------
E-mail: ▇▇▇.▇▇▇▇▇@▇▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇
--------------------------------
JPMORGAN CHASE BANK, NATIONAL
ASSOCIATION, as a Lender and as a
Syndication Agent
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
------------------------------------
Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Title: Managing Director
Address:
JPMorgan Chase Bank, National
Association
----------------------------------------
▇▇▇ ▇▇▇▇ ▇▇▇
----------------------------------------
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
----------------------------------------
Attention: ▇▇▇▇▇ ▇▇▇▇▇▇▇
-----------------------------
Telephone No.: (▇▇▇) ▇▇▇-▇▇▇▇
-------------------------
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
-----------------------------
E-mail: ▇▇▇▇▇.▇▇▇▇▇▇▇@▇▇▇▇▇▇▇▇.▇▇▇
--------------------------------
THE BANK OF NEW YORK,
as a Lender and as a Syndication Agent
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
------------------------------------
Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Title: Vice President
Address:
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Telephone No: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile No.: (▇▇▇) ▇▇▇-▇▇▇▇
E-mail: ▇▇▇▇▇▇▇▇@▇▇▇▇▇▇▇▇.▇▇▇
CITIZENS BANK OF MASSACHUSETTS, as a
Lender and as a Documentation Agent
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
------------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Senior Vice President
Address:
▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
----------------------------------------
▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
----------------------------------------
----------------------------------------
Attention: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
-----------------------------
Telephone No.: ▇▇▇ ▇▇▇-▇▇▇▇
-------------------------
Facsimile: ▇▇▇ ▇▇▇-▇▇▇▇
-----------------------------
E-mail: Stephen F. ▇▇▇▇▇@▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇
---------------------------------
KEYBANK NATIONAL ASSOCIATION, as a
Lender and as a Documentation Agent
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
------------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Senior Vice President
Address:
▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇
----------------------------------------
▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
----------------------------------------
Mail code: OH-01-27-0612
----------------------------------------
Attention: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
-----------------------------
Telephone No.: (▇▇▇) ▇▇▇-▇▇▇▇
-------------------------
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
-----------------------------
E-mail: ▇▇▇▇▇▇▇_▇_▇▇▇▇▇▇@▇▇▇▇▇▇▇.▇▇▇
--------------------------------
UNION BANK OF CALIFORNIA, N.A., as a
Lender and as a Documentation Agent
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
------------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Vice President
Address:
▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ Floor
----------------------------------------
▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
----------------------------------------
----------------------------------------
Attention: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
-----------------------------
Telephone No.: (▇▇▇) ▇▇▇-▇▇▇▇
-------------------------
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
-----------------------------
E-mail: ▇▇▇▇▇▇▇.▇▇▇▇▇@▇▇▇▇.▇▇▇
--------------------------------
▇▇▇▇▇ FARGO BANK, NATIONAL ASSOCIATION,
as a Lender
By: /s/ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
------------------------------------
Name: ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Title: VP
Address:
▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
----------------------------------------
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
----------------------------------------
----------------------------------------
Attention: ▇▇▇▇▇▇▇▇ ▇▇▇▇▇/▇▇▇▇▇▇ ▇▇▇▇▇▇▇
-----------------------------
Telephone No.: ▇▇▇-▇▇▇-▇▇▇▇
-------------------------
Facsimile: ▇▇▇-▇▇▇-▇▇▇▇
-----------------------------
E-mail: ▇▇▇▇▇▇▇▇.▇.▇▇▇▇▇@▇▇▇▇▇▇▇▇▇▇.▇▇▇
--------------------------------
FIFTH THIRD BANK, as a Lender
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇
------------------------------------
Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Vice President
Address:
▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇
----------------------------------------
▇▇ ▇▇▇▇▇▇
----------------------------------------
▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
----------------------------------------
Attention: ▇▇▇▇▇▇ ▇▇▇▇▇▇
-----------------------------
Telephone No.: ▇▇▇-▇▇▇-▇▇▇▇
-------------------------
Facsimile: ▇▇▇-▇▇▇-▇▇▇▇
-----------------------------
E-mail: ▇▇▇▇▇▇.▇▇▇▇▇▇@▇▇.▇▇▇
--------------------------------
THE BANK OF NOVA SCOTIA, as a Lender
By: /s/ ▇▇▇▇ ▇▇▇▇▇▇
------------------------------------
Name: ▇▇▇▇ ▇▇▇▇▇▇
Title: Managing Director
Address:
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇
----------------------------------------
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
----------------------------------------
----------------------------------------
Attention:
-----------------------------
Telephone No.: ▇▇▇-▇▇▇-▇▇▇▇
-------------------------
Facsimile: 212-225-5254
-----------------------------
E-mail: ▇▇▇▇_▇▇▇▇▇▇@▇▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇
--------------------------------
MELLON BANK, N.A., as a Lender
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇, ▇▇.
------------------------------------
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇, ▇▇.
Title: Assistance Vice President
Address:
One Mellon Center
----------------------------------------
Room 4535
----------------------------------------
▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
----------------------------------------
Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇, ▇▇.,
Assistant Vice President
-----------------------------
Telephone No.: ▇▇▇-▇▇▇-▇▇▇▇
-------------------------
Facsimile: ▇▇▇-▇▇▇-▇▇▇▇
-----------------------------
E-mail: ▇▇▇▇▇▇▇▇▇▇.▇@▇▇▇▇▇▇.▇▇▇
--------------------------------
PNC BANK, NATIONAL ASSOCIATION, as a
Lender
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
------------------------------------
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Managing Director
Address:
▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
----------------------------------------
21st Floor
----------------------------------------
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
----------------------------------------
Attention:
-----------------------------
Telephone No.: (▇▇▇) ▇▇▇-▇▇▇▇
-------------------------
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
-----------------------------
E-mail: ▇▇.▇▇▇▇▇@▇▇▇▇▇▇▇.▇▇▇
--------------------------------
SOVEREIGN BANK, as a Lender
By: /s/ ▇▇▇▇▇▇ ▇.▇. ▇▇▇▇▇
------------------------------------
Name: ▇▇▇▇▇▇ ▇.▇. ▇▇▇▇▇
Title: Senior Vice President
Address:
▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
----------------------------------------
MA1 SST 04-10
----------------------------------------
▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
----------------------------------------
Attention: ▇▇▇▇▇▇ ▇.▇. ▇▇▇▇▇
-----------------------------
Telephone No.: ▇▇▇-▇▇▇-▇▇▇▇
-------------------------
Facsimile: ▇▇▇-▇▇▇-▇▇▇▇
-----------------------------
E-mail: ▇▇▇▇▇▇@▇▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇
--------------------------------
SUNTRUST BANK, N.A., as a Lender
By: /s/ ▇▇▇▇▇ ▇▇▇▇
------------------------------------
Name: ▇▇▇▇▇ ▇▇▇▇
Title: Managing Director
Address:
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇
----------------------------------------
10th Floor, Mailcode 1928
----------------------------------------
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
----------------------------------------
Attention: ▇▇▇▇▇ ▇▇▇▇
-----------------------------
Telephone No.: ▇▇▇-▇▇▇-▇▇▇▇
-------------------------
Facsimile: ▇▇▇-▇▇▇-▇▇▇▇
-----------------------------
E-mail: ▇▇▇▇▇.▇▇▇▇@▇▇▇▇▇▇▇▇.▇▇▇
--------------------------------
U.S. BANK NATIONAL ASSOCIATION, as a
Lender
By: /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
------------------------------------
Name: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Title: Banking Officer
Address:
One ▇▇ ▇▇▇▇ ▇▇▇▇▇
----------------------------------------
▇▇. ▇▇▇▇▇, ▇▇ ▇▇▇▇▇
----------------------------------------
----------------------------------------
Attention: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
-----------------------------
Telephone No.: ▇▇▇-▇▇▇-▇▇▇▇
-------------------------
Facsimile: ▇▇▇-▇▇▇-▇▇▇▇
-----------------------------
E-mail: ▇▇▇▇▇▇▇.▇▇▇▇▇▇▇▇▇@▇▇▇▇▇▇.▇▇▇
--------------------------------
SCHEDULE 1 TO
4-YEAR REVOLVING CREDIT AGREEMENT
Commitments
Bank of America, N.A. $ 57,500,000
The Bank of New York $ 57,500,000
JPMorgan Chase Bank, N.A. $ 57,500,000
Citizens Bank of Massachusetts $ 47,500,000
KeyBank National Association $ 47,500,000
Union Bank of California, N.A. $ 47,500,000
▇▇▇▇▇ Fargo Bank, National Association $ 35,000,000
Fifth Third Bank $ 25,000,000
The Bank of Nova Scotia $ 25,000,000
Mellon Bank, N.A. $ 20,000,000
PNC Bank, National Association $ 20,000,000
Sovereign Bank $ 20,000,000
SunTrust Bank $ 20,000,000
US Bank National Association $ 20,000,000
TOTAL $ 500,000,000
SCHEDULE 5.3 TO
4-YEAR REVOLVING CREDIT AGREEMENT
Governmental Authorizations
None.
SCHEDULE 5.7 TO
4-YEAR REVOLVING CREDIT AGREEMENT
Litigation
None.
SCHEDULE 5.8 TO
4-YEAR REVOLVING CREDIT AGREEMENT
Subsidiaries
All of the following subsidiaries are either directly or indirectly wholly owned
by the TJX Companies, Inc.
State or Jurisdiction of Incorporation Name Under Which Does Business
Operating Subsidiaries or Organization (if Different)
----------------------------------------------- -------------------------------------- ------------------------------
NBC Attire Inc. Massachusetts
▇▇▇▇▇▇ Buying Corp. Delaware
NBC Distributors Inc. Massachusetts
NBC Merchants, Inc. Indiana
NBC Charlotte Merchants, Inc. North Carolina
NBC Nevada Merchants, Inc. Nevada
NBC Philadelphia Merchants, Inc. Pennsylvania
NBC Pittston Merchants, Inc. Pennsylvania
NBC Houston Merchants, Inc. Texas
NBC Manteca Merchants, Inc. California
Marmaxx Operating Corp. Delaware T.J. Maxx/Marshalls
Marshalls Atlanta Merchants, Inc. Georgia
Marshalls Bridgewater Merchants, Inc. Virginia
Marshalls Woburn Merchants, Inc. Massachusetts
Marshalls of MA, Inc. Massachusetts
New York Department Stores de Puerto Rico, Inc. Puerto Rico Marshalls
Marshalls of Richfield, MN, Inc. Minnesota
Marshalls of Northridge-Devonshire, CA, Inc. California
Marshalls of Glen Burnie, MD, Inc. Maryland
State or Jurisdiction of Incorporation Name Under Which Does Business
Operating Subsidiaries or Organization (if Different)
---------------------------------------- -------------------------------------- -------------------------------
Marshalls of Beacon, VA, Inc. Virginia
Marshalls of Laredo, TX, Inc. Texas
Marshalls of Calumet City, IL, Inc. Illinois
Marshalls of Chicago-▇▇▇▇▇, IL, Inc. Illinois
Marshalls of Streamwood, IL, Inc. Illinois
Marshalls of Chicago-Brickyard, IL, Inc. Illinois
Marshalls of Matteson, IL, Inc. Illinois
Marshalls of Elizabeth, NJ, Inc. New Jersey
Marshall's of Nevada, Inc. Nevada
▇▇▇▇▇▇ Buying Company of CA, Inc. Delaware Marshalls
Strathmex Corp. Delaware
HomeGoods, Inc. Delaware
H.G. Merchants, Inc. Massachusetts
H.G. Indiana Distributors, Inc. Indiana
▇.▇. ▇▇▇▇. Merchants, Inc. Connecticut
HomeGoods of Puerto Rico, Inc. Puerto Rico
NBC Apparel, Inc. Delaware
NBC Apparel United Kingdom T.K. Maxx
T.K. Maxx Group Limited United Kingdom
T.K. Maxx United Kingdom
NBC Card Services Ltd. United Kingdom
T.K. Maxx Ireland Ireland
Concord Buying Group, Inc. New Hampshire ▇.▇. ▇▇▇▇▇▇
State or Jurisdiction Incorporation Name Under Which Does Business
Operating Subsidiaries or Organization (if Different)
------------------------------------- ------------------------------------- ------------------------------
AJW Merchants Inc. Massachusetts ▇.▇. ▇▇▇▇▇▇
NBC Manager, LLC Delaware
NBC Trust Massachusetts
NBC Operating, LP Delaware
NBC GP, LLC Delaware
T.J. Maxx of CA, LLC Delaware
T.J. Maxx of IL, LLC Delaware
Marshalls of CA, LLC Delaware
Marshalls of IL, LLC Delaware
NYDS, LLC Delaware
AJW South Bend Merchants, Inc. Indiana
Bob's Stores Corp. New Hampshire
Bob's Conn. Merchants, Inc. Connecticut
WMI-1 Holding Company Nova Scotia, Canada
▇▇▇-▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇
Winners Merchants International, L.P. Ontario, Canada
NBC Holding, Inc. Delaware
NBC Hong Kong Merchants, Limited Hong Kong
Leasing Subsidiaries
Cochituate Realty, Inc. Massachusetts
NBC First Realty Corp. Indiana
NBC Second Realty Corp. Massachusetts
NBC Fourth Realty Corp. Nevada
NBC Fifth Realty Corp. Illinois
NBC Sixth Realty Corp. North Carolina
Leasing Subsidiaries (continued)
NBC Seventh Realty Corp. Pennsylvania
AJW Realty of Fall River, Inc. Massachusetts
H.G. Brownsburg Realty Corp. Indiana
▇.▇. ▇▇▇▇. Realty Corp. Delaware
AJW South Bend Realty Corp. Delaware
Progress Lane Realty Corp. Connecticut
SCHEDULE 5.13 TO
4-YEAR REVOLVING CREDIT AGREEMENT
Environmental, Health and Safety Requirements of Law
None.
SCHEDULE 5.14 TO
4-YEAR REVOLVING CREDIT AGREEMENT
Liens and Encumbrances
None.
SCHEDULE 6.11 TO
4-YEAR REVOLVING CREDIT AGREEMENT
Asset Sales
Store closings to the extent such closings for a fiscal year do not exceed 5% of
the Borrower's total stores as of the beginning of that fiscal year.
SCHEDULE 6.13 TO
4-YEAR REVOLVING CREDIT AGREEMENT
Investments
1) The following investments:
OWNED CARRYING
BY VALUE
------- --------
[*****] [*****] [*****]
[*****] [*****] [*****]
2) Investments relating to the fair market value of derivatives that hedge the
Borrower's actual foreign currency exposure.
[*****] INDICATES OMITTED MATERIAL THAT IS THE SUBJECT OF A CONFIDENTIAL
TREATMENT REQUEST FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.
SCHEDULE 6.14 TO
4-YEAR REVOLVING CREDIT AGREEMENT
Contingent Obligations
1. All leases for which the Borrower or any of its Subsidiaries may be
contingently liable immediately following the closing of the Credit Agreement
(either as a previous lessee or pursuant to a written guaranty) with respect to
any previously operated location.
2. Leases for which the Borrower or any of its Subsidiaries may be contingently
liable in connection with future store closings to the extent such closings for
a fiscal year do not exceed 5% of total stores as of the beginning of that
fiscal year.
3. [*****]
4. [*****]
5. [*****]
6. [*****]
[*****] INDICATES OMITTED MATERIAL THAT IS THE SUBJECT OF A CONFIDENTIAL
TREATMENT REQUEST FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.
SCHEDULE 6.20 TO
4-YEAR REVOLVING CREDIT AGREEMENT
Subsidiary Indebtedness
(1) The following indebtedness:
Intercompany Indebedtness
SUBSIDIARY DESCRIPTION AMOUNT
-----------------------------------------------------------------------------------------------------------------
[*****] [*****] [*****]
[*****] [*****] [*****]
[*****] [*****] [*****]
[*****] [*****] [*****]
[*****] [*****] [*****]
[*****] [*****] [*****]
[*****] [*****] [*****]
In addition the domestic subsidiaries and the Borrower have ongoing outstanding
intercompany balances with each other representing the net cash funding
requirements or cash surplus of the individual entities.
indebtedness to Third Parties
SUBSIDIARY DESCRIPTION AMOUNT
-----------------------------------------------------------------------------------------------------------------
Winners Merchants International, L.P. Demand, operating and commercial letters of credit facility C$20,000,000
[*****] INDICATES OMITTED MATERIAL THAT IS THE SUBJECT OF A CONFIDENTIAL
TREATMENT REQUEST FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.
SCHEDULE 6.21 TO
4-YEAR REVOLVING CREDIT AGREEMENT
Subordination Terms
The following terms shall govern Indebtedness ("Intercompany
Indebtedness") of the Borrower or any Subsidiary of the Borrower (an
"Intercompany Obligor") to the Borrower or any Subsidiary of the Borrower (an
"Intercompany Lender"):
Any and all claims of an Intercompany Lender against an Intercompany
Obligor or against any of its properties shall be subordinate and subject in
right of payment to the prior payment, in full and in cash, of all Obligations.
Notwithstanding any right of an Intercompany Lender to ask, demand, ▇▇▇ for,
take or receive any payment from an Intercompany Obligor, all rights, liens and
security interests of such Intercompany Lender, whether now or hereafter arising
and howsoever existing, in any assets of such Intercompany Obligor shall be
subordinated to the rights, if any, of the Lenders and the Administrative Agent
in those assets. An Intercompany Lender shall have no right to possession of any
such asset or to foreclose upon any such asset, whether by judicial action or
otherwise, unless and until all of the Obligations shall have been paid in full
in cash and satisfied and all financing arrangements under this Agreement and
the other Loan Documents between the Borrower, the Administrative Agent and the
Lenders have been terminated.
If, during the continuance of a Default, all or any part of the assets
of any Intercompany Obligor, or the proceeds thereof, are subject to any
distribution, division or application to the creditors of such Intercompany
Obligor, whether partial or complete, voluntary or involuntary, and whether by
reason of liquidation, bankruptcy, arrangement, receivership, assignment for the
benefit of creditors or any other action or proceeding, then, and in any such
event, any payment or distribution of any kind or character, either in cash,
securities or other property, which shall be payable or deliverable upon or with
respect to any indebtedness of such Intercompany Obligor to an Intercompany
Lender, shall be paid or delivered directly to the Administrative Agent for
application on any of the Obligations, due or to become due, until such
Obligations shall have first been paid in full in cash and satisfied; provided,
however, ordinary course payments or distributions made by an Intercompany
Obligor to an Intercompany Lender shall be required to be paid or delivered to
the Administrative Agent only upon the Administrative Agent's request.
Each Intercompany Lender shall irrevocably authorize and empower the
Administrative Agent to demand, ▇▇▇ for, collect and receive every such payment
or distribution and give acquittance therefor and to make and present for and on
behalf of such Intercompany Lender such proofs of claim and take such other
action, in the Administrative Agent's own name or in the name of such
Intercompany Lender or otherwise, as the Administrative Agent may deem necessary
or advisable for the enforcement of Section 6.21. The Administrative Agent may
vote such proofs of claim in any such proceeding, receive and collect any and
all dividends or other payments or disbursements made thereon in whatever form
the same may be paid or issued and apply the same on account of any of the
Obligations.
Should any payment, distribution, security or instrument or proceeds
thereof be received by an Intercompany Lender upon or with respect to
Intercompany Indebtedness during the continuance of a Default and prior to the
satisfaction of all of the Obligations and the termination of all financing
arrangements under the Credit Agreement and the other Loan Documents between the
Borrower, the administrative Agent and the Lenders, such Intercompany Lender
shall receive and hold the same in trust, as trustee, for the benefit of the
Administrative Agent, and the Lenders and shall forthwith deliver the same to
the Administrative Agent, for the benefit of the Administrative Agent and the
Lenders, in
precisely the form received (except for the endorsement or assignment of such
Intercompany Lender where necessary), for application to any of the Obligations,
due or not due, and, until so delivered, the same shall be held in trust by such
Intercompany Lender as the property of the Administrative Agent and the Lenders;
provided, however, ordinary course payments or distributions made by an
Intercompany Obligor to an Intercompany Lender shall be required to be paid or
delivered to the Administrative Agent only upon the Administrative Agent's
request. If an Intercompany Lender fails to make any such endorsement or
assignment to the Administrative Agent, the Administrative Agent or any of its
officers or employees shall be irrevocably authorized to make the same.
Each Intercompany Lender shall agree that until the Obligations have been
paid in full in cash and satisfied and all financing arrangements under the
Credit Agreement and the other Loan Documents between the Borrower, the
Administrative Agent and the Lenders have been terminated, such Intercompany
Lender will not assign or transfer to any Person (other than the Administrative
Agent) any claim such Intercompany Lender has or may have against any
Intercompany Obligor.
EXHIBIT A TO
4-YEAR REVOLVING CREDIT AGREEMENT
Form of Syndicated Note
May _____, 2005
THE TJX COMPANIES, INC., a Delaware corporation (the "Borrower"),
promises to pay to the order of_________(the "Lender") the aggregate unpaid
principal amount of all Syndicated Loans made by the Lender to the Borrower
pursuant to Article II of the Credit Agreement hereinafter referred to (as the
same may be amended or modified, the "Agreement"; capitalized terms used herein
and not otherwise defined herein are used with the meanings attributed to them
in the Agreement), in immediately available funds on the dates and at the
offices of Bank of America, N.A., as Administrative Agent, specified in the
Agreement, together with interest on the unpaid principal amount hereof at the
rates and on the dates determined in accordance with the Agreement. The Borrower
shall pay the principal of and accrued and unpaid interest on the Syndicated
Loans in full on the Facility Termination Date.
The Lender shall, and is hereby authorized to, record on the schedule
attached hereto, or to otherwise record in accordance with its usual practice,
the date and amount of each Syndicated Loan and the date and amount of each
principal payment hereunder.
This Note is one of the Syndicated Notes issued pursuant to, and is
entitled to the benefits of the 4-Year Revolving Credit Agreement, dated as of
May___, 2005, among the Borrower, the financial institutions parties thereto,
Bank of America, N.A., as Administrative Agent, JPMorgan Chase Bank, N.A. and
The Bank of New York, as Syndication Agents, and Citizens Bank of Massachusetts,
KeyBank National Association and Union Bank of California, N.A., as
Documentation Agents, to which Agreement, as it may be amended from time to
time, reference is hereby made for a statement of the terms and conditions
governing this Note, including the terms and conditions under which this Note
may be prepaid or its maturity date accelerated. The Agreement, among other
things, provides for the making of "Syndicated Loans" by the Lender to the
Borrower from time to time in an aggregate amount not to exceed at any time
outstanding the Lender's Commitment, except as otherwise contemplated in the
Agreement.
The Borrower hereby waives presentment, demand, protest and notice of
any kind. No failure to exercise, and no delay in exercising, any rights
hereunder on the part of the holder hereof shall operate as a waiver of such
rights.
This Note shall be governed by, and construed in accordance with, the
internal laws of the State of New York.
THE TJX COMPANIES, INC.
By: ________________
Name:
Title:
Schedule of Loans and Payments of Principal
to
Note of The TJX Companies, Inc.,
Dated May___, 2005
Principal Maturity
Amount of of Interest Principal Unpaid
Date Loan Period Amount Paid Balance
--------- -------- ---------- ----------- --------
EXHIBIT B TO
4-YEAR REVOLVING CREDIT AGREEMENT
Required Opinions
1. The Borrower is a corporation duly incorporated, validly existing and in
good standing under the laws of the State of Delaware, with the corporate power
and authority necessary for the execution, delivery and performance of the Loan
Documents, the consummation of the credit transactions contemplated thereby, the
ownership of its properties and the conduct of the business now conducted and
permitted to be conducted by it in accordance with the Loan Documents.
2. Each of the Credit Agreement and the Syndicated Notes has been duly
authorized, executed and delivered by the Borrower and (subject to the
qualifications stated in the unnumbered paragraphs at the end hereof)
constitutes the legal, valid and binding obligation of the Borrower, enforceable
against the Borrower in accordance with its terms.
3. The execution, delivery and performance by the Borrower of the Loan
Documents, and the consummation of the credit transactions contemplated thereby,
do not, and the compliance by the Borrower with the terms thereof applicable to
it does not require approval of the Borrower's shareholders except such
approvals as have been obtained and will not, result in any violation of,
conflict with, constitute a default under or permit any party to accelerate the
payment of any obligation under, or result in the creation of a lien, mortgage,
security interest or other encumbrance upon the assets of the Borrower under,
any term or provision of: (a) its certificate of incorporation or by-laws, (b)
any federal law, statute, rule or governmental regulation, (c) the Delaware
General Corporation Law, or (d) any judgment, decree, indenture, mortgage, deed
of trust, loan agreement or other such instrument or agreement applicable to the
Borrower.
4. No consent, approval, authorization or other action by, or notice to or
filing with, any federal or Delaware court or governmental authority is required
to be obtained or made by the Borrower on or prior to the date hereof in
connection with its execution, delivery or performance of the Loan Documents or
in connection with its consummation of the credit transactions contemplated
thereby, except for such consents, approvals, authorizations or other actions as
have been obtained or made (but in the case of a Delaware court or governmental
authority, only in respect of the General Corporation Law of the State of
Delaware), except where the failure to obtain such consent or make such filing
would not reasonably be expected to have a material adverse effect on the
business, assets or financial condition of the Borrower and its Subsidiaries,
taken as a whole.
5. The making of the loans under the Credit Agreement and the application
of the proceeds thereof as provided in the Loan Documents will not violate
Regulation T, U or X of the Board of Governors of the Federal Reserve System as
in effect on the date hereof.
6. The Borrower is not an. "investment company" or a company "controlled"
by an "investment company" within the meaning of the federal Investment Company
Act of 1940, as amended, or a "holding company" or a "subsidiary company" of a
"holding company", or an "affiliate" of a "holding company" or of a "subsidiary
company" of a "holding company", within the meaning of the federal Public
Utility Holding Company Act of 1935, as amended.
EXHIBIT C TO
4-YEAR REVOLVING CREDIT AGREEMENT
Form of Compliance Certificate
To: The Lenders Parties To The
Credit Agreement Described Below
Pursuant to that certain 4-Year Revolving Credit Agreement dated as of
May__, 2005 (as amended, modified, renewed or extended from time to time, the
"Agreement") among The TJX Companies, Inc. (the "Borrower"), the Lenders party
thereto, Bank of America, N.A., as Administrative Agent (the "Administrative
Agent"), JPMorgan Chase Bank, N.A. and The Bank of New York, as Syndication
Agents, and Citizens Bank of Massachusetts, KeyBank National Association and
Union Bank of California, N.A., as Documentation Agents, the Borrower, through
its [chief financial officer], hereby delivers to the Administrative Agent
[together with the financial statements being delivered to the Administrative
Agent pursuant to Section 6.1 of the Credit Agreement] this Compliance
Certificate (the "Certificate") [for the accounting period from _____, 20__ to
______, 20__.] Unless otherwise defined herein, capitalized terms used in this
Compliance Certificate have the meanings ascribed thereto in the Agreement. With
respect to the calculations set forth below, the provisions of and definitions
of terms in the Credit Agreement shall govern the calculation of compliance with
Section 6.16.
I. MAXIMUM LEVERAGE RATIO (SECTION 6.16)
(1) The ratio of
(a)
Funded Debt $________
+ (4 * Consolidated Rentals) +________
= Numerator =________
To
(b)
EBITDAR $________
= Denominator =________
for the period from___________,______
to _________________,_____is ____________to 1.0
(2) State whether the above calculated Leverage Ratio is greater than
the maximum Leverage Ratio specified for such period in the
Credit Agreement.
Yes/No
II. DEFAULT
(A) Does any Default or Unmatured Default exist? Yes/No
(B) If the answer to question (A) is yes, state the nature and status
thereof and the borrower's plans with respect thereto on Schedule A.
The Borrower hereby certifies, through its ________, that the
information set forth above is accurate as of ________, 20__, to the best of
such officer's knowledge, after diligent inquiry, and that the financial
statements delivered herewith present fairly the financial position of the
Borrower and its Subsidiaries at the dates indicated and the results of their
operations and changes in their financial position for the periods indicated
in conformity with GAAP, consistently applied.
Dated ________,__
THE TJX COMPANIES, INC.
By: ________________________
Name:
Title:
EXHIBIT D TO
4-YEAR REVOLVING CREDIT AGREEMENT
Form of Assignment Agreement
This Assignment Agreement (this "Assignment Agreement") between
________ (the "Assignor") and ___(the "Assignee") is dated as of _____________,
200__. The parties hereto agree as follows:
1. PRELIMINARY STATEMENT. The Assignor is a party to a Credit
Agreement (which, as it may be amended, modified, renewed or extended from time
to time is herein called the "Credit Agreement") described in Item 1 of Schedule
1 attached hereto ("Schedule 1"). Capitalized terms used herein and not
otherwise defined herein shall have the meanings attributed to them in the
Credit Agreement.
2. ASSIGNMENT AND ASSUMPTION. The Assignor hereby sells and assigns to
the Assignee, and the Assignee hereby purchases and assumes from the Assignor,
an interest in and to the Assignor's rights and obligations under the Credit
Agreement such that after giving effect to such assignment the Assignee shall
have purchased pursuant to this Assignment Agreement the percentage interest
specified in Item 3 of Schedule 1 of all outstanding rights and obligations
under the Credit Agreement and the other Loan Documents. The aggregate
Commitment (or Syndicated Loans, if the applicable Commitment has been
terminated) purchased by the Assignee hereunder is set forth in Item 4 of
Schedule 1.
3. EFFECTIVE DATE. The effective date of this Assignment Agreement
(the "Effective Date") shall be the later of (i) the date specified in Item 5 of
Schedule 1 or (ii) two Business Days (or such shorter period agreed to by the
Administrative Agent) after a Notice of Assignment substantially in the form of
Exhibit I attached hereto, together with any consents and fees required by
Sections 12.3.1 and 12.3.2 of the Credit Agreement, has been delivered to the
Administrative Agent. In no event will the Effective Date occur if the payments
required to be made by the Assignee to the Assignor on the Effective Date under
Sections 4 and 5 hereof are not made on the proposed Effective Date. The
Assignor will notify the Assignee of the proposed Effective Date no later than
the Business Day prior to the proposed Effective Date. As of the Effective Date,
(a) the Assignee shall have the rights and obligations of a Lender under the
Loan Documents with respect to the rights and obligations assigned to the
Assignee hereunder and (b) the Assignor shall relinquish its rights (other than
its rights pursuant to Sections 3.1, 3.2, 3.4, 3.5 and 9.7) and be released from
its corresponding obligations under the Loan Documents with respect to the
rights and obligations assigned to the Assignee hereunder.
4. PAYMENTS OBLIGATIONS. On and after the Effective Date, the Assignee
shall be entitled to receive from the Administrative Agent all payments of
principal, interest and fees with respect to the interest assigned hereby. The
Assignee shall advance funds directly to the Administrative Agent with respect
to all Syndicated Loans made on or after the Effective Date with respect to the
interest assigned hereby. [In consideration for the sale and assignment of
Syndicated Loans hereunder, (a) the assignee shall pay the Assignor, on the
Effective Date, an amount equal to the principal amount of the portion of all
Floating Rate Loans assigned to the Assignee hereunder and (b) with respect to
each Eurodollar Rate Loan made by the Assignor and assigned to the Assignee
hereunder which is outstanding on the Effective Date, on the earliest of (i) the
last day of the Interest Period therefor, (ii) such earlier date agreed to by
the Assignor and the Assignee and (iii) the date on which any such Eurodollar
Rate Loan either becomes due (by acceleration or otherwise) or is prepaid (such
earliest date being hereinafter referred to as the "Payment Date"), the Assignee
shall pay the Assignor an amount equal to the principal
amount of the portion of such Eurodollar Rate Loan assigned to the Assignee
which is outstanding on the Payment Date. If the Assignor and the Assignee agree
that the Payment Date for such Eurodollar Rate Loan shall be the Effective Date,
they shall agree on the interest rate applicable to the portion of such
Eurodollar Rate Loan assigned hereunder for the period from the Effective Date
to the end of the existing Interest Period applicable to such Eurodollar Rate
Loan (the "Agreed Interest Rate") and any interest received by the Assignee in
excess of the Agreed Interest Rate shall be remitted to the Assignor. In the
event interest for the period from the Effective Date to but not including the
Payment Date is not paid by the Borrower with respect to any Eurodollar Rate
Loan sold by the Assignor to the Assignee hereunder, the Assignee shall pay to
the Assignor interest for such period on the portion of such Eurodollar Rate
Loan sold by the Assignor to the Assignee hereunder at the applicable rate
provided by the Credit Agreement. In the event a prepayment of any Eurodollar
Rate Loan which is existing on the Payment Date and assigned by the Assignor to
the Assignee hereunder occurs after the Payment Date but before the end of the
Interest Period applicable to such Eurodollar Rate Loan, the Assignee shall
remit to the Assignor the excess of the prepayment penalty paid with respect to
the portion of such Eurodollar Rate Loan assigned to the Assignee hereunder over
the amount which would have been paid if such prepayment penalty was calculated
based on the Agreed Interest Rate. The Assignee will also promptly remit to the
Assignor (a) any principal payments received from the Administrative Agent with
respect to Eurodollar Rate Loans prior to the Payment Date and (b) any amounts
of interest on Syndicated Loans and fees received from the Administrative Agent
which relate to the portion of the Syndicated Loans or Commitment assigned to
the Assignee hereunder for periods prior to the Effective Date, in the case of
Floating Rate Loans, or the Payment Date, in the case of Eurodollar Rate Loans,
and not previously paid by the Assignee to the Assignor.]* In the event that
either party hereto receives any payment to which the other party hereto is
entitled under this Assignment Agreement, then the party receiving such amount
shall promptly remit it to the other party hereto.
5. FEES PAYABLE BY THE ASSIGNEE. The Assignee agrees to pay __% of the
recordation fee required to be paid to the Administrative Agent in connection
with this Assignment Agreement pursuant to Section 12.3.2 of the Credit
Agreement.
6. REPRESENTATIONS OF THE ASSIGNOR; LIMITATIONS ON THE ASSIGNOR'S
LIABILITY. The Assignor represents and warrants that it is the legal and
beneficial owner of the interest being assigned by it hereunder and that such
interest is free and clear of any adverse claim created by the Assignor. It is
understood and agreed that the assignment and assumption hereunder are made
without recourse to the Assignor and that the Assignor makes no other
representation or warranty of any kind to the Assignee. Neither the Assignor nor
any of its officers, directors, employees, agents or attorneys shall be
responsible for (a) the due execution, legality, validity, enforceability,
genuineness, sufficiency or collectability of any Loan Document, including
without limitation, documents granting the Assignor and the other Lenders a
security interest in assets of the Borrower or any guarantor, (b) any
representation, warranty or statement made in or in connection with any of the
Loan Documents, (c) the financial condition or creditworthiness of the Borrower
or any guarantor, (d) the performance of or compliance with any of the terms or
provisions of any of the Loan Documents, (e) inspecting any of the property,
books or records of the Borrower, (f) the validity, enforceability, perfection,
priority, condition, value or sufficiency of any collateral securing or
purporting to secure the Syndicated Loans or (g) any mistake, error of judgment,
or action taken or omitted to be taken in connection with the Syndicated loans
or the Loan Documents.
7. REPRESENTATIONS OF THE ASSIGNEE. The Assignee (a) confirms that it
has received a copy of the Credit Agreement, together with copies of the
financial statements requested
----------
(*) Each Assignor may insert its standard payment provisions in lieu of the
foregoing payment terms.
by the Assignee and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Assignment Agreement, (b) agrees that it will, independently and without
reliance upon the Administrative Agent, the Assignor or any other Lender and
based on such documents and information that it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under the Loan Documents, (c) appoints and authorizes the Administrative Agent
to take such action as contractual representative on its behalf and to exercise
such powers under the Loan Documents as are delegated to the Administrative
Agent by the terms thereof, together with such powers as are reasonably
incidental thereto, (d) agrees that it will perform in accordance with their
terms all of the obligations which by the terms of the Loan Documents are
required to be performed by it as a Lender, (e) agrees that its payment
instructions and notice instructions are as set forth in the attachment to
Schedule 1[,] [and] (e) confirms that none of the funds, monies, assets or other
consideration being used to make the purchase and assumption hereunder are "plan
assets" as defined under ERISA and that its rights, benefits and interests in
and under the Loan Documents will not be "plan assets" under ERISA [and (f)
attaches the forms prescribed by the Internal Revenue Service of the United
States certifying that the Assignee is entitled to receive payments under the
Loan Documents without deduction or withholding of any United States federal
income taxes].*
8. INDEMNITY. The Assignee agrees to indemnify and hold harmless the
Assignor against any and all losses, costs and expenses (including, without
limitation, reasonable attorneys' fees) and liabilities incurred by the Assignor
in connection with or arising in any manner from the Assignee's non-performance
of the obligations assumed under this Assignment Agreement.
9. SUBSEQUENT ASSIGNMENTS. After the Effective Date, the Assignee
shall have the right pursuant to Section 12.3.1 of the Credit Agreement to
assign the rights which are assigned to the Assignee hereunder to any entity or
person, provided that (a) any such subsequent assignment does not violate any of
the terms and conditions of the Loan Documents or any law, rule, regulation,
order, writ, judgment, injunction or decree and that any consent required under
the terms of the Loan Documents has been obtained and (b) unless the prior
written consent of the Assignor is obtained, the Assignee is not thereby
released from its obligations to the Assignor hereunder, if any remain
unsatisfied, including, without limitation, its obligations under Sections 4, 5
and 8 hereof.
10. REDUCTIONS OF AGGREGATE COMMITMENT. If any reduction in the
Aggregate Commitment occurs between the date of this Assignment Agreement and
the Effective Date, the percentage interest specified in Item 3 of Schedule 1
shall remain the same, but the dollar amount purchased shall be recalculated
based on the reduced Aggregate Commitment.
11. ENTIRE AGREEMENT. This Assignment Agreement and the attached
Notice of Assignment embody the entire agreement and understanding between the
parties hereto and supersede all Prior agreements and understandings between the
parties hereto relating to the subject matter hereof.
12. GOVERNING LAW. This Assignment Agreement shall be governed by the
internal law, but without regard to the conflicts of laws provisions, of the
State of New York.
13. NOTICES. Notices shall be given under this Assignment Agreement in
the manner set forth in the Credit Agreement. For the purpose hereof, the
addresses of the parties hereto (until notice of a change is delivered) shall be
the addresses set forth in the attachment to Schedule 1.
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(*) To be inserted if the Assignee is not incorporated under the laws of the
United States, or a state thereof.
IN WITNESS WHEREOF, the parties hereto have executed this Assignment
Agreement by their duly authorized officers as of the date first above written.
[NAME OF ASSIGNOR]
By:__________________________
Name:
Title:
[NAME OF ASSIGNEE]
By:__________________________
Name:
Title:
SCHEDULE 1
to Assignment Agreement
1. Description and Date of Credit Agreement:
4-Year Revolving Credit Agreement dated as of May ___, 2005,
among The TJX Companies, Inc., the financial institutions parties
thereto (the "Lenders"), Bank of America, N.A., as Administrative
Agent (the "Administrative Agent"), JPMorgan Chase Bank, N.A. and The
Bank of New York, as Syndication Agents, and Citizens Bank of
Massachusetts, KeyBank National Association and Union Bank of
California, N.A., as Documentation Agents, as amended from time to
time.
2. Date of Assignment Agreement:_____,
3. Amounts (As of Date of Item 2 above):
a. Total of Commitments(*) under
Credit Agreement $________
b. Assignee's Percentage
of the Syndicated Loans purchased under
the Assignment Agreement(**) ________%
c. Amount of Assigned Share
in each Syndicated Loan purchased under
the Assignment Agreement $________
4. Assignee's Aggregate Commitment
Amount(*) Purchased Hereunder: $________
5. Proposed Effective Date: ____________
Accepted and Agreed:
[NAME OF ASSIGNOR] [NAME OF ASSIGNEE]
By: ____________________ By: ______________________
Title: _________________ Title:____________________
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(*) If the Aggregate Commitment has been terminated, insert outstanding
Syndicated Loans in place of Commitments.
(*) Percentage taken to 10 decimal places.
Attachment to SCHEDULE 1 to ASSIGNMENT AGREEMENT
Attach Assignor's Administrative Information Sheet, which must
include notice address for the Assignor and the Assignee
EXHIBIT 1
to Assignment Agreement
FORM OF NOTICE OF ASSIGNMENT
__________,200_
To: The TJX Companies, Inc.
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Attention: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, Chief Financial Officer
Bank of America, N.A., as
Administrative Agent
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From: [NAME OF ASSIGNOR] (the "Assignor")
[NAME OF ASSIGNEE] (the "Assignee")
1. We refer to the Credit Agreement (as it may be amended, modified,
renewed or extended from time to time, the "Credit Agreement") described in Item
1 of Schedule 1 attached hereto ("Schedule 1"). Capitalized terms used herein
and not otherwise defined herein shall have the meanings attributed to them in
the Credit Agreement.
2. This Notice of Assignment (this "Notice") is given and delivered to the
Borrower and the Administrative Agent pursuant to Section 12.3.2 of the Credit
Agreement.
3. The Assignor and the Assignee have entered into an Assignment Agreement,
dated as of _____, ___(the "Assignment"), pursuant to which, among other things,
the Assignor has sold, assigned, delegated and transferred to the Assignee, and
the Assignee has purchased, accepted and assumed from the Assignor the
percentage interest specified in Item 3 of Schedule 1 of all outstandings,
rights and obligations under the Credit Agreement. The Effective Date of the
Assignment shall be the later of the date specified in Item 5 of Schedule 1 or
two Business Days (or such shorter period as agreed to by the Administrative
Agent) after this Notice of Assignment and any consents and fees required by
Sections 12.3.1 and 12.3.2 of the Credit Agreement have been delivered to the
Administrative Agent, provided that the Effective Date shall not occur if any
condition precedent agreed to by the Assignor and the Assignee has not been
satisfied.
4. The Assignor and the Assignee hereby give to the Borrower and the
Administrative Agent notice of the assignment and delegation referred to herein.
The Assignor will confer with the Administrative Agent before the date specified
in Item 5 of Schedule. 1 to determine if the Assignment Agreement will become
effective on such date pursuant to Section 3 hereof, and will confer with the
Administrative Agent to determine the Effective Date pursuant to Section 3
hereof if it occurs thereafter. The Assignor shall notify the Administrative
Agent if the Assignment Agreement does not become effective on any proposed
Effective Date as a result of the failure to satisfy the conditions precedent
agreed to by the Assignor and the Assignee. At the request of the Administrative
Agent, the Assignor will give the Administrative Agent written confirmation of
the satisfaction of the conditions precedent.
5. The Assignor or the Assignee shall pay to the Administrative Agent on or
before the Effective Date the processing fee of $3,500 required by Section
12.3.2 of the Credit Agreement.
6. If Syndicated Notes are outstanding on the Effective Date, the Assignor
and the Assignee request and direct that the Administrative Agent prepare and
cause the Borrower to execute and deliver new Syndicated Notes or, as
appropriate, replacement Syndicated Notes, to the Assignor and the Assignee. The
Assignor and, if applicable, the Assignee each agree to deliver to the
Administrative Agent the original Syndicated Notes received by it from the
Borrower upon its receipt of new Syndicated Notes in the appropriate amount.
7. The Assignee advises the Administrative Agent that its notice and
payment instructions are set forth in the attachment to Schedule 1.
8. The Assignee hereby represents and warrants that none of the funds,
monies, assets or other consideration being used to make the purchase pursuant
to the Assignment are "plan assets" as defined under ERISA and that its rights,
benefits, and interests in and under the Loan Documents will not be "plan
assets" under ERISA.
9. The Assignee authorizes the Administrative Agent to act as its
contractual representative under the Loan Documents in accordance with the
terms thereof. The Assignee acknowledges that the Administrative Agent has no
duty to supply information with respect to the Borrower or the Loan Documents to
the Assignee until the Assignee becomes a party to the Credit Agreement.(*)
NAME OF ASSIGNOR NAME OF ASSIGNEE
By: ____________________ By: ______________________
Title: _________________ Title:____________________
ACKNOWLEDGED AND CONSENTED
TO BY BANK OF AMERICA, N.A., ACKNOWLEDGED AND CONSENTED TO
AS ADMINISTRATIVE AGENT BY THE TJX COMPANIES, INC.
By: ____________________ By: ______________________
Title: _________________ Title:____________________
[Attach photocopy of Schedule 1 to Assignment as Schedule 1 hereto]
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(*) This paragraph may be eliminated if the Assignee is a party to the Credit
Agreement prior to the Effective Date.
EXHIBIT E TO
4-YEAR REVOLVING CREDIT AGREEMENT
Form of Loan/Credit Related Money Transfer Instruction
To Bank of America, N.A,
as Administrative Agent (the "Administrative Agent")
under the Credit Agreement
Described Below.
Re: 4-Year Revolving Credit Agreement, dated as of May ____, 2005 (as the
same may be amended or modified, the "Credit Agreement"), among The TJX
Companies, Inc., the financial institutions parties thereto (the
"Lenders"), Bank of America, N.A., as administrative agent (the
"Administrative Agent") JPMorgan Chase Bank, N.A. and The Bank of New York,
as Syndication Agents, and Citizens Bank of Massachusetts, KeyBank
National Association and Union Bank of California, N.A., as Documentation
Agents. Terms used herein and not otherwise defined shall have the meanings
assigned thereto in the Credit Agreement.
The Administrative Agent is specifically authorized and directed to
act upon the following standing money transfer instructions with respect to the
proceeds of Syndicated Advances or other extensions of credit from time to time
until receipt by the Administrative Agent of a specific written revocation of
such instructions by the Borrower signed by two Authorized Officers; provided,
however, that the Administrative Agent may otherwise transfer funds as hereafter
directed in writing by an Authorized Officer of the Borrower, it being
understood that any change in standing wire transfer instructions for the
transfer of funds shall only be made upon the written direction of two
Authorized Officers.
Facility Identification Number(s): _________________________________
Customer/Account Name: _________________________________________
Transfer Funds To: _________________________________________
_________________________________________
For Account No.: _________________________________________
Reference/Attention To: _________________________________________
Authorized Officer (Customer Representative) Date________________________
_______________________ _______________________
(Please Print) Signature
Bank Officer Name
_______________________ _______________________
(Please Print) Signature
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(*) (Deliver Completed Form to Credit Support Staff For Immediate Processing)
EXHIBIT F TO
4-YEAR REVOLVING CREDIT AGREEMENT
Form of Syndicated Advance Borrowing Notice
[Date]
Bank of America, N.A., as Administrative Agent
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Ladies and Gentlemen:
The undersigned, The TJX Companies, Inc., refers to the 4-Year
Revolving Credit Agreement, dated as of May ____, 2005 (as amended, the "Credit
Agreement", the terms defined therein being used herein as therein defined),
among the undersigned, certain Lenders parties thereto, Bank of America, N.A.,
as administrative agent (the "Administrative Agent"), JPMorgan Chase Bank, N.A.
and The Bank of New York, as Syndication Agents, and Citizens Bank of
Massachusetts, KeyBank National Association and Union Bank of California, N.A.,
as Documentation Agents. The undersigned hereby gives you notice, irrevocably,
pursuant to Section 2.6 of the Credit Agreement that the undersigned hereby
requests a Syndicated Advance under the Credit Agreement, and in that connection
sets forth below the information relating to such Syndicated Advance (the
"Proposed Advance") as required by Section 2.6 of the Credit Agreement:
(a) The Borrowing Date for the Proposed Advance is ________, 200_.
(b) The aggregate amount of the Proposed Advance is________________.
(c) The Proposed Advance is to be [a Floating Rate Advance] [a
Eurodollar Advance].
(d) The Interest Period for the Proposed Advance is _______months.(*)
The undersigned hereby certifies that the following statements are
true on the date of the Proposed Advance:
(A) The representations and warranties contained in Article V of the
Credit Agreement are correct in all material respects, before and after
giving effect to the Proposed Advance and to the application of the
proceeds therefrom, as though made on and as of such date (other than the
representation and warranty set forth in Section 5.5 of the Credit
Agreement, which shall only be made by the Borrower as of the date of the
Credit Agreement), except to the extent any such representation or warranty
is stated to relate solely to an earlier date; and
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(*) To be included if the Proposed Syndicated Advance is to be a Eurodollar
Advance.
(B) No Default or Unmatured Default has occurred and is continuing, or
would result from the Proposed Advance or from the application of the
proceeds therefrom.
Very truly yours,
THE TJX COMPANIES, INC.
By _______________________________
Name:
Title:
EXHIBIT H TO
4-YEAR REVOLVING CREDIT AGREEMENT
Form of Continuation/Conversion Notice
[Date]
Bank of America, N.A.,as Administrative Agent
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Ladies and Gentlemen:
The undersigned, The TJX Companies, Inc., refers to the 4-Year
Revolving Credit Agreement, dated as of May__, 2005 (as amended, the "Credit
Agreement", the terms defined therein being used herein as therein defined),
among the undersigned, certain Lenders parties thereto, Bank of America, N.A.,
as administrative agent (the "Administrative Agent"), JPMorgan Chase Bank, N.A.
and The Bank of New York, as Syndication Agents, and Citizens Bank of
Massachusetts, KeyBank National Association and Union Bank of California, N.A.,
as Documentation Agents. The undersigned hereby gives you notice, irrevocably,
pursuant to Section 2.7 of the Credit Agreement that the undersigned hereby
elects to:(*)
convert a Floating Rate Advance in aggregate principal amount of
$________to a Eurodollar Advance on ____, __. The initial Interest Period
for such Eurodollar Advance is requested to be____________month[s].
convert a Eurodollar Advance in aggregate principal amount of
$______and with a current Interest Period ending ________, _____ , to a
Floating Rate Advance on _____, ___.
continue a Eurodollar Advance in aggregate principal amount of $______
and with a current Interest Period ending _____, ________, as a Eurodollar
Advance. The succeeding Interest Period is requested to be_____month[s].
Very truly yours,
THE TJX COMPANIES, INC.
By __________________________
Name:
Title:
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(*) Include one or more of the following, as applicable.
EXHIBIT I TO
4-YEAR REVOLVING CREDIT AGREEMENT
Form of Designation Agreement
Dated______, 200_
Reference is made to the 4-Year Revolving Credit Agreement dated as of
May___, 2005 (as amended or otherwise modified from time to time, the "Credit
Agreement") among The TJX Companies, Inc., a Delaware corporation (the
"Borrower"), the financial institutions named therein (the "Lenders"), Bank of
America, N.A., as Administrative Agent, JPMorgan Chase Bank, N.A. and The Bank
of New York, as Syndication Agents, and Citizens Bank of Massachusetts, KeyBank
National Association and Union Bank of California, N.A., as Documentation
Agents. Terms defined in the Credit Agreement are used herein as therein
defined.
_________(the "Designator"),___________(the "Designee"), and the
Borrower, agree as follows:
1 The Designator hereby designates the Designee, and the Designee hereby
accepts such designation, as its Designated Lender under the Credit Agreement.
2 The Designator makes no representations or warranty and assumes no
responsibility with respect to the financial condition of the Borrower or the
performance or observance by the Borrower of any of its obligations under the
Credit Agreement or any other instrument or document furnished pursuant thereto.
3. The Designee (i) confirms that it has received a copy of the Credit
Agreement, together with copies of the financial statements referred to in
Article 5 thereof and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Designation Agreement; (ii) agrees that it will, independently and without
reliance upon the Agent, the Designator 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 any action it may be
permitted to take under the Credit Agreement; (iii) confirms that it is an
Eligible Designee; (iv) appoints and authorizes the Designator as its
administrative agent and attorney-in-fact and grants the Designator an
irrevocable power of attorney to receive payments made for the benefit of the
Designee Under the Credit Agreement and to deliver and receive all
communications and notices under the Credit Agreement, if any, that Designee is
obligated to deliver or has the right to receive thereunder; (v) acknowledges
that it is subject to and bound by the confidentiality provisions of the Credit
Agreement (except as permitted under Section 9.14 thereof); and (vi)
acknowledges that the Designator retains the sole right and responsibility to
vote under the Credit Agreement, including, without limitation, the right to
approve any amendment, modification or waiver of any provision of the Credit
Agreement, and agrees that the Designee shall be bound by all such votes,
approvals, amendments, modifications and waivers and all other agreements of the
Designator pursuant to or in connection with the Credit Agreement, all subject
to Section 8.2 of the Credit Agreement.
4. Following the execution of this Designation Agreement by the Designator,
the Designee and the Borrower, it will be delivered to the Administrative Agent
for acceptance and recording by the Administrative Agent. The effective Date of
this Designation Agreement shall be the date of acceptance thereof by the
Administrative Agent, unless otherwise specified on the signature page hereto
(the "Effective Date").
5. Upon such acceptance and recording by the Administrative Agent, as of
the Effective Date (a) the Designee shall have the right to make Syndicated
Loans as a Lender pursuant to Section 2.1 or 2.7 of the Credit Agreement and the
rights of a Lender related thereto and (b) the making of any such Syndicated
Loans by the Designee shall satisfy the obligations of the Designator under the
Credit Agreement to the same extent, and as if, such Syndicated Loans were made
by the Designator.
6. This Designation Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York.
IN WITNESS WHEREOF, the parties have caused this Designation Agreement
to be executed by their respective officers hereunto duly authorized, as of the
date first above written.
Effective Date(1):
[NAME OF DESIGNATOR]
By:_______________________________
Name:_____________________________
Title:____________________________
[NAME OF DESIGNEE]
By:_______________________________
Name:_____________________________
Title:____________________________
THE TJX COMPANIES, INC.
By:_______________________________
Name:_____________________________
Title:____________________________
Accepted and Approved this
____ day of ___, ___
BANK OF AMERICA, N.A.,
as Administrative Agent
By: _____________________________
Title:___________________________
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(1) This date should be no earlier than the date of acceptance by the
Administrative Agent.