Exhibit 10(ee)
CONFORMED COPY
$400,000,000
AMENDED AND RESTATED REVOLVING CREDIT AND
COMPETITIVE ADVANCE FACILITIES AGREEMENT
AMONG
RELIANT ENERGY, INCORPORATED
AND
THE BANKS NAMED ON THE
SIGNATURE PAGES HEREOF,
AND
MIZUHO GROUP,
AS DOCUMENTATION AGENT,
AND
CREDIT SUISSE FIRST BOSTON
AND
COMMERZBANK AG,
AS CO-SYNDICATION AGENTS,
AND
THE CHASE MANHATTAN BANK,
AS ADMINISTRATIVE AGENT
Dated as of July 13, 2001
TABLE OF CONTENTS
PAGE
ARTICLE I DEFINITIONS AND ACCOUNTING TERMS....................................................... 1
Section 1.01. Certain Defined Terms..................................................... 1
Section 1.02. Computation of Time Periods............................................... 15
Section 1.03. Accounting Terms.......................................................... 16
ARTICLE II AMOUNTS AND TERMS OF THE COMMITTED LOANS.............................................. 16
Section 2.01. The Committed Loans....................................................... 16
Section 2.02. Making the Loans.......................................................... 16
Section 2.03. Minimum Tranches.......................................................... 17
ARTICLE III AMOUNTS AND TERMS OF THE CAF LOANS................................................... 17
Section 3.01. The CAF Loans............................................................. 17
Section 3.02. Competitive Bid Procedure................................................. 17
ARTICLE IV PROVISIONS RELATING TO ALL LOANS...................................................... 20
Section 4.01. The Loans................................................................. 20
Section 4.02. Fees...................................................................... 20
Section 4.03. Termination or Reduction of the Commitments............................... 21
Section 4.04. Interest.................................................................. 21
Section 4.05. Reserve Requirements...................................................... 22
Section 4.06. Interest Rate Determination and Protection................................ 23
Section 4.07. Voluntary Interest Conversion or Continuation of Committed Loans.......... 24
Section 4.08. Funding Losses Relating to LIBOR Rate Loans............................... 24
Section 4.09. Change in Legality........................................................ 25
Section 4.10. Extension of Commitments.................................................. 25
ARTICLE V INCREASED COSTS, TAXES, PAYMENTS AND PREPAYMENTS....................................... 28
Section 5.01. Increased Costs; Capital Adequacy......................................... 28
Section 5.02. Payments and Computations................................................. 29
Section 5.03. Taxes..................................................................... 29
Section 5.04. Sharing of Payments, Etc.................................................. 31
Section 5.05. Voluntary Prepayments..................................................... 31
Section 5.06. Mitigation of Losses and Costs............................................ 31
Section 5.07. Determination and Notice of Additional Costs and Other Amounts............ 31
ARTICLE VI CONDITIONS OF LENDING................................................................. 32
Section 6.01. Conditions Precedent to Initial Loans..................................... 32
Section 6.02. Conditions Precedent to Each Borrowing.................................... 32
ARTICLE VII REPRESENTATIONS AND WARRANTIES....................................................... 33
Section 7.01. Representations and Warranties of Borrower................................ 33
ARTICLE VIII AFFIRMATIVE AND NEGATIVE COVENANTS.................................................. 36
Section 8.01. Affirmative Covenants of Borrower......................................... 36
Section 8.02. Negative Covenants of Borrower............................................ 38
Section 8.03. Consent to Unregco IPO Transaction........................................ 38
PAGE
Section 8.04. Consent to Restructuring.................................................. 39
ARTICLE IX EVENTS OF DEFAULT..................................................................... 39
Section 9.01. Events of Default......................................................... 39
Section 9.02. Cancellation/Acceleration................................................. 41
ARTICLE X THE AGENT.............................................................................. 42
Section 10.01. Appointment.............................................................. 42
Section 10.02. Delegation of Duties..................................................... 42
Section 10.03. Exculpatory Provisions................................................... 42
Section 10.04. Reliance by Agent........................................................ 42
Section 10.05. Notice of Default........................................................ 43
Section 10.06. Non-Reliance on Agent and Other Banks.................................... 43
Section 10.07. Indemnification.......................................................... 43
Section 10.08. Agent in Its Individual Capacity......................................... 44
Section 10.09. Successor Agent.......................................................... 44
ARTICLE XI MISCELLANEOUS......................................................................... 44
Section 11.01. Amendments and Waivers................................................... 44
Section 11.02. Notices.................................................................. 45
Section 11.03. No Waiver; Cumulative Remedies........................................... 45
Section 11.04. Survival of Representations and Warranties............................... 46
Section 11.05. Payment of Expenses and Taxes............................................ 46
Section 11.06. Effectiveness; Successors and Assigns; Participations; Assignments....... 46
Section 11.07. Setoff................................................................... 50
Section 11.08. Counterparts............................................................. 50
Section 11.09. Severability............................................................. 50
Section 11.10. Integration.............................................................. 50
Section 11.11. GOVERNING LAW............................................................ 50
Section 11.12. Submission to Jurisdiction; Waivers...................................... 51
Section 11.13. Acknowledgments.......................................................... 51
Section 11.14. Limitation on Agreements................................................. 52
Section 11.15. Removal of Bank.......................................................... 52
EXHIBITS AND SCHEDULES
Exhibit 2.02 -- Notice of Borrowing
Exhibit 3.02 -- A -- Competitive Bid Request
Exhibit 3.02 -- B -- Competitive Bid
Exhibit 3.02 -- C -- Competitive Bid Confirmation
Exhibit 4.07 -- Notice of Interest Conversion/Continuation
Exhibit 11.06(c) -- Committed Loan Assignment and Acceptance
Exhibit 11.06(i)(a) -- Committed Note
Exhibit 11.06(i)(b) -- CAF Note
Schedule I -- Schedule of Commitments and Lending Offices
Schedule 8.04 -- Steps of the Restructuring
AMENDED AND RESTATED REVOLVING CREDIT AND
COMPETITIVE ADVANCE FACILITIES AGREEMENT
Dated as of July 13, 2001
This Amended and Restated Revolving Credit and Competitive
Advance Facilities Agreement, dated as of July 13, 2001 (as the same may be
amended, supplemented and otherwise modified from time to time, this
"Agreement"), is made and entered into among Reliant Energy, Incorporated, a
Texas corporation ("Borrower"), the banks named on the signature pages hereof
(hereinafter individually called a "Bank" and collectively called the "Banks"),
Credit Suisse First Boston and Commerzbank AG, as co-syndication agents (in such
capacity and collectively, the "Syndication Agents"), Mizuho Group as
documentation agent (in such capacity, the "Documentation Agent") and The Chase
Manhattan Bank, as Administrative Agent (hereinafter in such capacity, together
with any successors thereto in such capacity, the "Agent").
WHEREAS, the parties entered into that certain Amended and
Restated Revolving Credit and Competitive Advance Facilities Agreement, dated as
of December 1, 1997, as has been extended by an extension request confirmed by
Agent's Letter dated September 5, 1998, and amended by the First Amendment to
Amended and Restated Revolving Credit and Competitive Advance Facilities
Agreement dated as of November 9, 1998, the Second Amendment to Amended and
Restated Revolving Credit and Competitive Advance Facilities Agreement dated as
of September 4, 1999, the Third Amendment to Amended and Restated Revolving
Credit and Competitive Advance Facilities Agreement dated as of September 24,
1999, the Fourth Amendment to Amended and Restated Revolving Credit and
Competitive Advance Facilities Agreement dated as of May 3, 2000, but effective
as of March 31, 2000, and the Fifth Amendment to Amended and Restated Revolving
Credit and Competitive Advance Facilities Agreement dated as of August 24, 2000
(as so amended and extended, the "Existing Agreement"); and
WHEREAS, the parties desire to amend and restate the Existing
Agreement in order to incorporate all prior amendments into one document and to
make certain changes, including, without limitation, the extension of the
Termination Date;
NOW, THEREFORE, in consideration of the premises of the mutual
agreements, representations and warranties herein set forth, and for other good
and valuable consideration, the parties hereto agree as follows:
ARTICLE I
DEFINITIONS AND ACCOUNTING TERMS
Section 1.01. Certain Defined Terms. As used in this Amended
and Restated Revolving Credit and Competitive Advance Facilities Agreement, the
following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):
"ABR" or "Alternate Base Rate" means, for any day, an
alternate base rate calculated as a fluctuating rate per annum (rounded
upwards to the nearest 1/16 of 1% if not already an integral multiple
of 1/16 of 1%) as shall be in effect from time to time, equal to the
greatest of:
(a) the Prime Rate in effect on such day;
(b) the Base CD Rate in effect on such day plus 1%;
or
2
(c) the Federal Funds Effective Rate in effect on
such day plus 1/2 of 1%.
As used in this definition, (i) the term "Prime Rate" means
the rate of interest per annum publicly announced from time to time by
the Agent as its prime rate in effect at its principal office in New
York City; (ii) the term "Base CD Rate" means the sum of (A) the
product of (y) the Three-Month Secondary CD Rate and (z) a fraction,
the numerator of which is one and the denominator of which is one minus
the CD Reserve Percentage and (B) the Assessment Rate; (iii) the term
"Three-Month Secondary CD Rate" means, for any day, the secondary
market rate for three-month certificates of deposit reported as being
in effect on such day (or, if such day is not a Business Day, the next
preceding Business Day) by the Board through the public information
telephone line of the Federal Reserve Bank of New York (which rate
will, under the current practices of the Board, be published in Federal
Reserve Statistical Release H.15(519) during the week following such
day), or, if such rate is not so reported on such day or such next
preceding Business Day, the average of the secondary market quotations
for three-month certificates of deposit of major money center banks in
New York City received at approximately 10:00 A.M., New York City time,
on such day (or, if such day is not a Business Day, on the next
preceding Business Day) by the Agent from three New York City
negotiable certificate of deposit dealers of recognized standing
selected by it; (iv) the term "Assessment Rate" means for any day, the
annual rate (rounded upwards to the nearest 1/100 of 1%) most recently
estimated by the Agent as the then current net annual assessment rate
that will be employed in determining amounts payable by the Agent to
the Federal Deposit Insurance Corporation (or any successor) for
insurance by such Corporation (or such successor) of time deposits made
in Dollars at the Agent's domestic offices; and (v) the term "CD
Reserve Percentage" means for any day, that percentage (expressed as a
decimal) that is in effect on such day, as prescribed by the Board, for
determining the maximum reserve requirement for a member bank of the
Federal Reserve System in New York City with deposits exceeding
$1,000,000,000 in respect of new non-personal time deposits in Dollars
in New York City having a maturity approximately equal to three months
and in an amount of $100,000 or more. If for any reason the Agent shall
have determined (which determination shall be conclusive absent
manifest error) that it is unable to ascertain the Base CD Rate or the
Federal Funds Effective Rate, or both, for any reason, including the
inability or failure of the Agent to obtain sufficient quotations in
accordance with the terms hereof, the ABR shall be determined without
regard to clause (b) or (c) above or both, as appropriate, until the
circumstances giving rise to such inability no longer exist. Any change
in the ABR due to a change in the Prime Rate, the Three-Month Secondary
CD Rate, the CD Reserve Percentage, the Assessment Rate or the Federal
Funds Effective Rate shall be effective as of the effective day of such
change in the Prime Rate, the Three-Month Secondary CD Rate, the CD
Reserve Percentage, the Assessment Rate or the Federal Funds Effective
Rate, respectively.
"ABR Loan" means a Loan that bears interest at the ABR as
provided in Section 4.04(a).
"Affiliate" means any Person that, directly or indirectly,
Controls or is Controlled by or is under common Control with another
Person.
"Agent" has the meaning specified in the introduction to this
Agreement.
"Applicable Lending Office" means, with respect to each Bank,
such Bank's Domestic Lending Office in the case of an ABR Loan or a
Fixed Rate Loan or such Bank's LIBOR Lending Office in the case of a
LIBOR Rate Loan.
"Applicable Margin" means the rate per annum set forth below
opposite the Designated Rating (which corresponds to the Designated
Ratings assigned by Standard & Poor's Ratings
3
Group (a division of McGraw Hill, Inc.), Fitch Investor Services and
▇▇▇▇▇'▇ Investors Service, Inc., respectively) from time to time in
effect during the period for which payment is due:
Designated Rating Applicable Margin
----------------- -----------------
A-/A3 or higher 0.535%
BBB+/Baa1 0.650%
BBB/Baa2 0.750%
BBB-/Baa3 0.950%
BB+/Ba1 or lower or unrated 1.125%
"Applicable Termination Date" has the meaning specified in
Section 4.10(a).
"Bank" and "Banks" have the meanings specified in the
introduction to this Agreement.
"Bank Affiliate" has the meaning specified in Section
11.06(c).
"Board" means the Board of Governors of the Federal Reserve
System of the United States (or any successor).
"Borrowed Money" of any Person means any Indebtedness of such
Person for or in respect of money borrowed or raised by whatever means
(including acceptances, deposits and lease obligations under Capital
Leases and Mandatory Payment Preferred Stock); provided, however, that
Borrowed Money shall not include (a) any guarantees that may be
incurred by endorsement of negotiable instruments for deposit or
collection in the ordinary course of business or similar transactions,
(b) any obligations or guarantees of performance of obligations under a
franchise, performance bonds, franchise bonds, obligations to reimburse
drawings under letters of credit issued in accordance with the terms of
any safe harbor lease or franchise or in lieu of performance or
franchise bonds or other obligations incurred in the ordinary course of
business that do not represent money borrowed or raised, which
reimbursement obligations in each case shall be payable in full within
ten (10) Business Days after the date upon which such obligation
arises, (c) trade payables or (d) customer advance payments and
deposits arising in the ordinary course of such Person's business.
"Borrower" means Reliant Energy, Incorporated, a Texas
corporation formerly known as Houston Industries Incorporated.
"Borrowing" means either a Committed Borrowing or a CAF
Borrowing.
"Business Day" means a day other than a Saturday, Sunday or
other day on which commercial banks in New York City are authorized or
required by law to close; provided, that when used in connection with a
LIBOR Rate Loan, the term "Business Day" shall also exclude any day on
which commercial banks are not open for dealings in Dollar deposits in
the London interbank market.
"CAF Borrowing" means a borrowing consisting of a CAF Loan
under Section 3.01 made on the same day by the Bank or Banks whose
Competitive Bid or Bids have been accepted pursuant to Section 3.02(d).
"CAF Facility" has the meaning specified in Section 3.01.
4
"CAF LIBOR Rate Loan" means any CAF Loan that bears interest
at the LIBOR Rate.
"CAF Loan Assignee" has the meaning specified in Section
11.06(d).
"CAF Loan Assignment and Acceptance" means an assignment and
acceptance executed in connection with the assignment of any CAF Loan
to a CAF Loan Assignee in the manner set forth in Section 11.06(d).
Each CAF Loan Assignment and Acceptance to be registered in the
Register shall set forth (a) the full name of such CAF Loan Assignee;
(b) such CAF Loan Assignee's address for notices and its lending office
address (in each case to include telephone, telex and facsimile
transmission numbers); and (c) payment instructions for all payments to
such CAF Loan Assignee, and must contain an agreement by such CAF Loan
Assignee to comply with the provisions of Sections 11.06(d), 11.06(g)
and 11.06(h) to the same extent as any Bank.
"CAF Loan" means a Loan made to Borrower pursuant to Section
3.01 by a Bank in response to a Competitive Bid Request.
"CAF Margin" means, as to any Competitive Bid relating to a
CAF LIBOR Rate Loan, the margin (expressed as a percentage rate per
annum in the form of a decimal to no more than four decimal places) to
be added to or subtracted from the LIBOR Rate in order to determine the
interest rate acceptable to such Bank with respect to such CAF LIBOR
Rate Loan.
"CAF Rate" means, as to any Competitive Bid made by a Bank
pursuant to Section 3.02(b), (i) in the case of a CAF LIBOR Rate Loan,
the CAF Margin added to or subtracted from, as the case may be, the
LIBOR Rate, and (ii) in the case of a Fixed Rate Loan, the fixed rate
of interest, in each case, offered by such Bank.
"Capital Lease" means a lease that, in accordance with GAAP,
would be recorded as a capital lease on the balance sheet of the
lessee.
"Code" means the Internal Revenue Code of 1986, as amended
from time to time, and any successor statute.
"Commitment" means, with respect to each Bank, the obligation
of such Bank to make Committed Loans in an aggregate principal amount
at any one time outstanding not to exceed the amount set forth under
such Bank's name on Schedule I attached hereto under the caption
"Commitment," as such amount may be changed from time to time pursuant
to Sections 4.03, 4.10 and 11.06, and "Commitments" means the
Commitment of all of the Banks.
"Committed Borrowing" means a borrowing consisting of a Loan
under Section 2.01 in each case of the same Type and having in the case
of Committed LIBOR Rate Loans the same Interest Period, made on the
same day by the Banks. The term "Committed Borrowing" as used herein
shall not include any conversion or continuation of a Loan under
Section 4.07.
"Committed LIBOR Rate Loan" means any Committed Loan that
bears interest at the LIBOR Rate.
"Committed Loan Assignment and Acceptance" has the meaning
specified in Section 11.06(c).
"Committed Loans" has the meaning specified in Section 2.01.
5
"Commonly Controlled Entity" means an entity, whether or not
incorporated, that is under common Control with Borrower within the
meaning of Section 4001 of ERISA or is part of a group that includes
Borrower and that is treated as a single employer under Section 414 of
the Code.
"Competitive Bid" has the meaning specified in Section
3.02(b).
"Competitive Bid Confirmation" has the meaning specified in
Section 3.02(d).
"Competitive Bid Request" has the meaning specified in Section
3.02(a).
"Consent Date" has the meaning specified in Section 4.10(b).
"Consolidated Capitalization" means the sum of (a)
Consolidated Shareholders' Equity, (b) Consolidated Indebtedness for
Borrowed Money and (c) without duplication, any Mandatory Payment
Preferred Stock.
"Consolidated Indebtedness" means, as of any date of
determination, the sum of (i) the total Indebtedness as shown on the
consolidated balance sheet of Borrower and its Consolidated
Subsidiaries, determined without duplication of any Guarantee of
Indebtedness of Borrower by any of its Consolidated Subsidiaries or of
any Guarantee of Indebtedness of any such Consolidated Subsidiary by
Borrower or any other Consolidated Subsidiary of Borrower, plus any
Mandatory Payment Preferred Stock, less (ii) such amount of
Indebtedness attributable to amounts then outstanding under receivables
facilities or arrangements to the extent that such amounts would not
have been shown as Indebtedness on a balance sheet prepared in
accordance with GAAP prior to January 1, 1997, less (iii) the aggregate
amount of liabilities in respect of Indexed Debt Securities as shown on
the consolidated balance sheet of Borrower and its Consolidated
Subsidiaries.
"Consolidated Shareholders' Equity" means, as of any date of
determination, the total assets of Borrower and its Consolidated
Subsidiaries (less an amount of such assets associated with the
liabilities identified in items (ii) and (iii) of the definition of
Consolidated Indebtedness to the extent of the related liabilities)
less all liabilities of Borrower and its Consolidated Subsidiaries. As
used in this definition, "liabilities" means all obligations that, in
accordance with GAAP consistently applied, would be classified on a
balance sheet as liabilities (including, without limitation, (a)
Indebtedness; (b) deferred liabilities; and (c) Indebtedness of
Borrower or any of its Consolidated Subsidiaries that is expressly
subordinated in right and priority of payment to other liabilities of
Borrower or such Consolidated Subsidiary, but in any case excluding as
at such date of determination any Junior Subordinated Debt owned by any
Hybrid Preferred Securities Subsidiary) less liabilities of the type
identified in items (ii) and (iii) in the definition of "Consolidated
Indebtedness".
"Consolidated Subsidiary" means, at any date, any Subsidiary
or any other Person, the accounts of which under GAAP would be
consolidated with those of Borrower in its consolidated financial
statements as of such date.
"Continuing Banks" has the meaning specified in Section
4.10(b).
"Controlled" means, with respect to any Person, the ability of
another Person (whether directly or indirectly and whether by the
ownership of voting securities, contract or otherwise) to
6
appoint and/or remove the majority of the members of the board of
directors or other governing body of that Person (and "Control" shall
be similarly construed).
"Default" means any event that, with the lapse of time or
giving of notice, or both, or any other condition, would constitute an
Event of Default.
"Default Rate" means with respect to any overdue amount owed
by Borrower hereunder, a rate per annum equal to (a) in the case of
overdue principal with respect to any Loan, the sum of the interest
rate in effect at such time with respect to such Loan under Section
4.04 plus 2%; provided, that in the case of overdue principal with
respect to any Committed LIBOR Rate Loan, after the end of the Interest
Period with respect to such Loan, the Default Rate shall equal the rate
set forth in clause (b) below and (b) in the case of overdue interest
with respect to any Loan, Facility Fees or other amounts payable by
Borrower hereunder, the sum of the ABR in effect at such time plus 2%.
"Designated Rating" means (a) at any time the Long Term Debt
Rating is assigned by both S&P or Moody's and such ratings are
equivalent, such rating shall be the Designated Rating or (b) if clause
(a) does not apply, (i) at any time that the Long Term Debt Rating is
issued by only one of S&P or Moody's, the rating of such debt issued by
such Rating Agency shall be the Designated Rating, and (ii) at any time
that such debt is rated by more than one Rating Agency, the lower of
the two highest of such ratings; provided, that at least one of such
two ratings must be issued by either S&P or Moody's. Any change in the
calculation of the Facility Fees or the Applicable Margin with respect
to the Borrower that is caused by a change in the Designated Rating for
the Borrower will become effective on the date of the change in the
Designated Rating for the Borrower.
"Dollars" and the symbol "$" mean the lawful currency of the
United States of America.
"Domestic Lending Office" means, with respect to any Bank, the
office of such Bank specified as its "Domestic Lending Office" on
Schedule I attached hereto, or such other office of such Bank as such
Bank may from time to time specify to Borrower and the Agent.
"Effective Date" has the meaning specified in Section
11.06(a).
"ERISA" means the Employee Retirement Income Security Act of
1974, as amended from time to time.
"Event of Default" has the meaning specified in Section 9.01.
"Exchange Act" means the Securities Exchange Act of 1934, as
amended.
"Extension Consideration Period" has the meaning specified in
Section 4.10(a).
"Extension Request" has the meaning specified in Section
4.10(a).
"Facility Fee" has the meaning specified in Section 4.02(a).
"Federal Funds Effective Rate" means, for any day, a
fluctuating 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, as published on the
next succeeding Business Day by the Federal Reserve Bank of New York,
or, if such rate is not so published for
7
any day that is a Business Day, the average of the quotations for such
day for such transactions received by the Agent from three federal
funds brokers of recognized standing selected by it.
"FinanceCo" means Houston Industries FinanceCo LP, a Delaware
limited partnership.
"FinanceCo Credit Facilities" means, collectively, (i) the
FinanceCo $2.5 Billion Senior A Credit Agreement dated as of July 13,
2001 among FinanceCo, as borrower, The Chase Manhattan Bank, as
administrative agent, and the other financial institutions party
thereto, as amended, modified or supplemented from time to time and
(ii) the FinanceCo $1.8 Billion Senior B Credit Agreement dated as of
July 13, 2001 among FinanceCo, as borrower, The Chase Manhattan Bank,
as administrative agent, and the other financial institutions party
thereto, as amended, modified or supplemented from time to time.
"FinanceCo Permitted Facility" means any "Permitted Facility"
as such term is defined in the FinanceCo Credit Facility.
"Fixed Rate Loan" means any CAF Loan made by a Bank pursuant
to Section 3.02 based upon a fixed percentage rate per annum offered by
such Bank, expressed as a decimal (to no more than four decimal
places), and accepted by Borrower.
"GAAP" means generally accepted accounting principles in
effect from time to time in the United States of America.
"Governmental Authority" means any nation or government, any
state or other political subdivision thereof and any entity exercising
executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government.
"Guarantee" means, as to any Person (the "guaranteeing
person"), any obligation of (a) the guaranteeing person or (b) another
Person (including, without limitation, any bank under any letter of
credit) to induce the creation of which the guaranteeing person has
issued a reimbursement, counterindemnity or similar obligation, in
either case guaranteeing or in effect guaranteeing any principal of any
Indebtedness for Borrowed Money (the "primary obligations") of any
other third Person in any manner, whether directly or indirectly,
including, without limitation, any obligation of the guaranteeing
person, whether or not contingent, (i) to purchase any such primary
obligation or any property constituting direct or indirect security
therefor, (ii) to advance or supply funds for the purchase or payment
of any such primary obligation or (iii) otherwise to assure or hold
harmless the owner of any such primary obligation against loss in
respect thereof. The amount of any Guarantee of any guaranteeing person
shall be deemed to be the lower of (a) an amount equal to the stated or
determinable amount of the primary obligation in respect of which such
Guarantee is made and (b) the maximum amount for which such
guaranteeing person may be liable pursuant to the terms of the
instrument embodying such Guarantee, unless such primary obligation and
the maximum amount for which such guaranteeing person may be liable are
not stated or determinable, in which case the amount of such Guarantee
shall be such guaranteeing person's maximum reasonably anticipated
liability in respect thereof as determined by Borrower in good faith
(and "guaranteed" and "guarantor" shall be construed accordingly).
"Highest Lawful Rate" means, with respect to each Bank, the
maximum nonusurious interest rate, if any, that at any time or from
time to time may be contracted for, taken, reserved, charged or
received with respect to any Loan or on other amounts, if any, due to
such Bank pursuant to this Agreement or any other Loan Document under
applicable law. "Applicable law"
8
as used in this definition means, with respect to each Bank, that law
in effect from time to time that permits the charging and collection by
such Bank of the highest permissible lawful, nonusurious rate of
interest on the transactions herein contemplated including, without
limitation, the laws of each State that may be held to be applicable,
and of the United States of America, if applicable.
"HI/HL&P Merger" means the merger pursuant to which Houston
Industries Incorporated, a Texas corporation, merged with and into
HL&P, with the surviving corporation changing its name to "Houston
Industries Incorporated".
"HL&P" means Houston Lighting & Power Company, a Texas
corporation, as existing immediately prior to the HI/HL&P Merger.
"Hybrid Preferred Securities" means preferred stock issued by
any Hybrid Preferred Securities Subsidiary.
"Hybrid Preferred Securities Subsidiary" means any Delaware
business trust (or similar entity) (i) all of the common equity
interest of which is owned (either directly or indirectly through one
or more Wholly-Owned Subsidiaries) at all times by Borrower, (ii) that
has been formed for the purpose of issuing Hybrid Preferred Securities
and (iii) substantially all of the assets of which consist at all times
solely of the Junior Subordinated Debt and payments made from time to
time on the Junior Subordinated Debt.
"Indebtedness" of any Person means the sum of (a) all items
(other than capital stock, capital surplus and retained earnings) that,
in accordance with GAAP consistently applied, would be included in
determining total liabilities as shown on the liability side of a
balance sheet of such Person as at the date on which the Indebtedness
is to be determined and (b) without duplication, the amount of all
Guarantees by such Person; provided, however, that Indebtedness of a
Person shall not include (i) any Junior Subordinated Debt owned by any
Hybrid Preferred Securities Subsidiary, (ii) any Guarantee by the
Borrower or Resources of payments with respect to any Hybrid Preferred
Securities or (iii) any Securitization Securities.
"Indexed Asset" means, with respect to any Indexed Debt
Security, (i) any security or commodity that is deliverable upon
maturity of such Indexed Debt Security to satisfy the obligations under
such Indexed Debt Security at maturity or (ii) any security, commodity
or index relating to one or more securities or commodities used to
determine or measure the obligations under such Indexed Debt Security
at maturity thereof.
"Indexed Debt Securities" means (i) the ▇▇▇▇ and (ii) any
other security issued by Borrower or any Consolidated Subsidiary of
Borrower that (a) in accordance with GAAP, is shown on the consolidated
balance sheet of Borrower and its Consolidated Subsidiaries as
Indebtedness or a liability and (b) the obligations at maturity of
which may, under certain circumstances, be satisfied completely by the
delivery of, or the amount of such obligations are determined by
reference to, (1) an equity security owned by the Borrower or any of
its Consolidated Subsidiaries which is issued by an issuer other than
Borrower or any such Consolidated Subsidiary or (2) an underlying
commodity or security owned by the Borrower or any of its Consolidated
Subsidiaries.
"Insolvency" means, with respect to any Multiemployer Plan,
the condition that such Plan is insolvent within the meaning of Section
4245 of ERISA (and "Insolvent" shall be construed accordingly).
9
"Interest Period" means, for each Committed LIBOR Rate Loan
comprising part of the same Committed Borrowing, the period commencing
on the date of such Committed LIBOR Rate Loan or the date of the
conversion of any Committed Loan into such Committed LIBOR Rate Loan,
as the case may be, and ending on the last day of the period selected
by Borrower pursuant to Section 2.02 or 4.07, as the case may be, and,
thereafter, each subsequent period commencing on the last day of the
immediately preceding Interest Period and ending on the last day of the
period selected by Borrower pursuant to Section 4.07. The duration of
each such Interest Period shall be one, two, three, six or, with the
consent of all the Banks, nine months, as Borrower may select by notice
pursuant to Section 2.02(a) or 4.07 hereof; provided, however, that:
(i) any Interest Period that would otherwise extend
beyond the Termination Date shall end on the Termination Date;
(ii) whenever the last day of any Interest Period
would otherwise occur on a day other than a Business Day, the
last day of such Interest Period shall be extended to occur on
the next succeeding Business Day; provided that if such
extension would cause the last day of such Interest Period to
occur in the next following calendar month, the last day of
such Interest Period shall occur on the next preceding
Business Day; and
(iii) any Interest Period that begins on the last
Business Day of a calendar month (or on a day for which there
is no numerically corresponding day in the calendar month at
the end of such Interest Period) shall end on the last
Business Day of a calendar month.
"Investment" of any Person means any investment so classified
under GAAP, and, whether or not so classified, includes (a) any direct
or indirect loan, advance or extension of credit made by it to any
other Person, whether by means of purchase of debt or equity
securities, loan, advance, Guarantee or otherwise; (b) any capital
contribution to any other Person; and (c) any ownership or similar
interest in any other Person.
"Junior Subordinated Debt" means subordinated debt of Borrower
or any Subsidiary of Borrower other than FinanceCo (i) that is issued
at par to a Hybrid Preferred Securities Subsidiary in connection with
the issuance of Hybrid Preferred Securities, (ii) the payment of the
principal of which and interest on which is subordinated (with certain
exceptions) to the prior payment in full in cash or its equivalent of
all senior indebtedness of the obligor thereunder and (iii) that has an
original tenor no earlier than 30 years from the issuance thereof.
"LIBOR Lending Office" means, with respect to any Bank, the
office of such Bank specified as its "LIBOR Lending Office" on Schedule
I attached hereto (or, if no such office is specified, its Domestic
Lending Office), or such other office of such Bank as such Bank may
from time to time specify to Borrower and the Agent.
"LIBOR Rate" means (a) with respect to any Committed LIBOR
Rate Loan, for each day during each Interest Period pertaining thereto,
the rate per annum equal to the average (rounded upward to the nearest
1/16th of 1%) of the respective rates notified to the Agent by each
Reference Bank as the rate at which such Reference Bank is offered
Dollar deposits at or about 10:00 A.M., New York City time, two
Business Days prior to the beginning of such Interest Period in the
interbank eurodollar market where the eurodollar and foreign currency
and exchange operations in respect of its LIBOR Rate Loans are then
being conducted for delivery on the first day of such Interest Period
for the number of days therein and in an amount comparable to the
principal amount of its Committed LIBOR Rate Loan to be outstanding
during such
10
Interest Period and (b) with respect to any CAF LIBOR Rate Loan of a
specified maturity requested pursuant to a Competitive Bid Request, the
rate per annum equal to the average (rounded upward to the nearest 1/16
of l%) of the respective rates notified to the Agent by each Reference
Bank as the rate at which such Reference Bank is offered Dollar
deposits at or about 10:00 A.M., New York City time, two Business Days
prior to the date of borrowing of such CAF LIBOR Rate Loan in the
interbank eurodollar market where the eurodollar and foreign currency
and exchange operations in respect of its LIBOR Rate Loans are then
being conducted for delivery on such borrowing date, in an amount
comparable to the principal amount of such CAF LIBOR Rate Loan and with
a maturity comparable to the maturity applicable to such CAF LIBOR Rate
Loan.
"LIBOR Rate Loan" means a Loan that bears interest at the
LIBOR Rate as provided in Section 4.04(b).
"Lien" means any mortgage, deed of trust, pledge,
hypothecation, assignment, deposit arrangement, charge, security
interest, encumbrance or lien of any kind whatsoever (including any
Capital Lease).
"Loan" means a Committed Loan or a CAF Loan, or both.
"Loan Documents" means this Agreement, any Notes issued
hereunder and any document or instrument executed in connection with
the foregoing.
"Long-Term Debt Rating" means the rating assigned by a Rating
Agency to the first mortgage bonds of Borrower or, in the event no
first mortgage bonds are outstanding, the long-term senior debt
securities of Borrower (it being understood that a change in outlook
status (e.g., watch status, negative outlook status) is not a change in
rating as contemplated hereby).
"Majority Banks" means, at any time, Banks having at least 51%
of the aggregate Commitments or, if the Commitments have been
terminated, 51% of the aggregate Commitments in effect immediately
prior to such termination.
"Mandatory Payment Preferred Stock" means any preference or
preferred stock of Borrower or of any Consolidated Subsidiary (in each
case other than any issued to Borrower or its Subsidiaries and other
than Hybrid Preferred Securities or Junior Subordinated Debt) that is
subject to mandatory redemption, sinking fund or retirement provisions
(regardless of whether any portion thereof is due and payable within
one year).
"Margin Stock" has the meaning assigned to such term (or, in
the case of Regulation T, the term "margin security") in Regulation T,
U or X as the case may be.
"Material Adverse Effect" means any material adverse effect on
the ability of Borrower to perform its obligations under this
Agreement, or any other Loan Document to which it is a party on a
timely basis.
"Mortgage" means the Mortgage and Deed of Trust dated as of
November 1, 1944 by Borrower to South Texas Commercial National Bank of
Houston, as Trustee (The Chase Manhattan Bank, successor Trustee), as
amended and supplemented from time to time.
"Multiemployer Plan" means a Plan that is a multiemployer plan
as defined in Section 4001(a)(3) of ERISA.
11
"Non-Consenting Banks" has the meaning specified in Section
4.10(b).
"Note" or "Notes" means any promissory note or notes issued
pursuant to Section 11.06(i) hereof.
"Notice of Borrowing" has the meaning specified in Section
2.02(a).
"Notice of Interest Conversion/Continuation" has the meaning
specified in Section 4.07(a).
"Other Taxes" has the meaning specified in Section 5.03(b).
"Participant" has the meaning specified in Section 11.06(b).
"PBGC" means the Pension Benefit Guaranty Corporation
established pursuant to Subtitle A of Title IV of ERISA or any
successor.
"Permitted Liens" means with respect to any Person:
(a) Liens for current taxes, assessments or other
governmental charges that are not delinquent or remain payable without
any penalty, or the validity or amount of which is contested in good
faith by appropriate proceedings; provided, however, that, adequate
reserves with respect thereto are maintained on the books of such
Person in accordance with GAAP; and provided, further, that any right
to seizure, levy, attachment, sequestration, foreclosure or garnishment
with respect to Property of such Person or any Subsidiary of such
Person by reason of such Lien has not matured, or has been, and
continues to be, effectively enjoined or stayed;
(b) landlord Liens for rent not yet due and payable
and Liens for materialmen, mechanics, warehousemen, carriers,
employees, workmen, repairmen and other similar nonconsensual Liens
imposed by operation of law, for current wages or accounts payable or
other sums not yet delinquent, in each case arising in the ordinary
course of business; provided, however, that any right to seizure, levy,
attachment, sequestration, foreclosure or garnishment with respect to
Property of such Person or any Subsidiary of such Person by reason of
such Lien has not matured, or has been, and continues to be,
effectively enjoined or stayed;
(c) Liens (other than any Lien imposed pursuant to
Section 401(a)(29) or 412(n) of the Code, ERISA or any environmental
law, order, rule or regulation) incurred or deposits made, in each
case, in the ordinary course of business, (i) in connection with
workers' compensation, unemployment insurance and other types of social
security or (ii) to secure (or to obtain letters of credit that secure)
the performance of tenders, statutory obligations, surety and appeal
bonds, bids, leases, performance or payment bonds, purchase,
construction or sales contracts and other similar obligations, in each
case not incurred or made in connection with the borrowing of money,
the obtaining of advances or credit or the payment of the deferred
purchase price of property;
(d) Liens arising out of or in connection with any
litigation or other legal proceeding that is being contested in good
faith by appropriate proceedings; provided, however, that adequate
reserves with respect thereto are maintained on the books of such
Person in accordance with GAAP; and provided, further, that any right
to seizure, levy, attachment, sequestration, foreclosure or garnishment
with respect to Property of such Person or any
12
Subsidiary of such Person by reason of such Lien has not matured, or
has been, and continues to be, effectively enjoined or stayed;
(e) precautionary filings under the applicable
Uniform Commercial Code made by a lessor with respect to personal
property leased to such Person or any Subsidiary of such Person;
(f) Liens that, at the time of consummation of the
HI/HL&P Merger, existed or are permitted to be in existence with
respect to Reliant Resources and its Subsidiaries pursuant to any
indenture, loan agreement or other agreement to which Reliant Resources
or any of its Subsidiaries is a party; and
(g) Liens in connection with or permitted under the
FinanceCo Credit Facilities and any FinanceCo Permitted Facility.
"Person" means an individual, partnership, corporation
(including a business trust), joint stock company, trust,
unincorporated association, joint venture, government (or any political
subdivision or agency thereof) or any other entity of whatever nature.
"Plan" means, at a particular time, any employee benefit plan
that is covered by ERISA and in respect of which Borrower or a Commonly
Controlled Entity is (or, if such plan were terminated at such time,
would under Section 4069 of ERISA be deemed to be) an "employer" as
defined in Section 3(5) of ERISA.
"Pro Rata Percentage" means, with respect to any Bank, a
fraction (expressed as a percentage), the numerator of which is the
amount of such Bank's Commitment and the denominator of which is the
Commitments of all of the Banks.
"Property" means any interest or right in any kind of property
or asset, whether real, personal or mixed, owned or leased, tangible or
intangible and whether now held or hereafter acquired.
"Purchasing Banks" has the meaning specified in Section
11.06(c).
"Rating Agencies" means (a) Standard & Poor's Ratings Group;
(b) Fitch, Inc.; and (c) ▇▇▇▇▇'▇ Investors Service, Inc., or any
successor to any of such rating agencies.
"Reference Banks" means The Chase Manhattan Bank (formerly
Chemical Bank), Bank of America, N.A. and Citibank, N.A. or any
successor thereto pursuant to Section 4.04(g).
"Regco" means the newly created utility holding company
owning, through its Subsidiaries, certain of the currently regulated
utility businesses currently owned by Reliant Energy, together with its
successors and assigns permitted by the definition of Restructuring.
"Regco Credit Facilities" means, collectively, (i) the Regco
$2.5 Billion Credit Agreement and (ii) the Regco $1.8 Billion Credit
Agreement.
"Regco $1.8 Billion Credit Agreement" means the $1,800,000,000
Senior B Revolving Credit and Competitive Advance Facilities Agreement
as such agreement becomes effective pursuant to Section 2.1(c) of the
▇▇▇▇▇ $1.8 Billion Credit Agreement, as amended, supplemented or
otherwise modified from time to time.
13
"Regco $2.5 Billion Credit Agreement" means the $2,500,000,000
Senior A Revolving Credit and Competitive Advance Facilities Agreement
as such agreement becomes effective pursuant to Section 2.1(c) of the
▇▇▇▇▇ $2.5 Billion Credit Agreement, as amended, supplemented or
otherwise modified from time to time.
"Register" has the meaning specified in Section 11.06(e)
hereof.
"Regulation T," "Regulation U" and "Regulation X" means
Regulation T, U and X, respectively, of the Board or any other
regulation hereafter promulgated by the Board to replace the prior
Regulation T, U or X, as the case may be, and having substantially the
same function.
"Reliant Energy Services" means Reliant Energy Services, Inc.,
a Delaware corporation.
"Reliant Resources" means Reliant Energy Resources Corp., a
Delaware corporation formerly known as "NorAm Energy Corp.," and a
Subsidiary of Borrower.
"Reorganization" means, with respect to any Multiemployer
Plan, the condition that such Plan is in reorganization within the
meaning of Section 4241 of ERISA.
"Reportable Event" means any of the events set forth in
Section 4043(b) of ERISA, other than those events as to which the
thirty-day notice period is waived under PBGC Reg. Section 4043.
"Resources" means Reliant Energy Resources Corp., a Delaware
corporation formerly known as "NorAm Energy Corp."
"Responsible Officer" means the chief financial officer, the
chief accounting officer, an assistant treasurer, the treasurer or the
comptroller of Borrower or any other officer of Borrower whose primary
duties are similar to the duties of any of the previously listed
officers.
"Restructuring" has the meaning set forth on Schedule 8.04
attached hereto.
"SEC" means the Securities and Exchange Commission.
"Secured Indebtedness" means, with respect to any Person, all
Indebtedness secured (or for which the holder of such Indebtedness has
an existing right, contingent or otherwise, to be secured) by any Lien
on any Property (including, without limitation, accounts and contract
rights) owned by such Person or any of its Subsidiaries, even though
such Person has not assumed or become liable for the payment of such
Indebtedness.
"Securitization Securities" means transition bonds to be
issued pursuant to the Texas Electric Choice Plan if (and only if ) no
recourse may be had to the Borrower or any of its Subsidiaries (or to
their respective assets) for the payment of such obligations, other
than the Securitization Subsidiary that is the issuer of such bonds and
its assets, provided that, payment of such transition charges by any
retail electric provider ("REP") in accordance with such legislation,
whether or not such REP has collected such charges from the retail
electric customers, shall not be deemed "recourse" hereunder, including
any REP that is a division or an Affiliate of the Borrower or any
Affiliate of the Borrower.
"Securitization Subsidiary" means the special purpose
subsidiary created to issue Securitization Securities.
14
"Significant Subsidiary" means (i) for the purposes of
determining what constitutes an "Event of Default" under Section
9.01(j), a Subsidiary of Borrower whose total assets, as determined in
accordance with GAAP, represent at least 10% of the total assets of
Borrower, on a consolidated basis, as determined in accordance with
GAAP and (ii) for all other purposes the "Significant Subsidiaries"
shall be those Subsidiaries whose total assets, as determined in
accordance with GAAP, represent at least 10% of the total assets of
Borrower, on a consolidated basis, as determined in accordance with
GAAP for Borrower's most recently completed fiscal year and identified
in the certificate most recently delivered pursuant to Section
8.01(a)(iv)(C); provided further that none of any Securitization
Subsidiary, Unregco or Unregco's Subsidiaries shall be deemed to be a
Significant Subsidiary or subject to the restrictions, covenants or
events of default under this Agreement.
"Single Employer Plan" means any Plan that is covered by Title
IV of ERISA, but which is not a Multiemployer Plan.
"Subsidiary" means, as to any Person, a corporation,
partnership or other entity of which more than 50% of the outstanding
shares of stock or other ownership interests having ordinary voting
power (other than stock or such other ownership interests having such
power only by reason of the happening of a contingency) to elect
directors or other managers of such corporation, partnership or other
entity are at the time owned, directly or indirectly, through one or
more Subsidiaries of such Person, by such Person; provided, however,
that no Securitization Subsidiary shall be deemed to be a Subsidiary
for purposes of this Agreement.
"Taxes" has the meaning specified in Section 5.03(a).
"Termination Date" means July 12, 2002 as the same may be
extended pursuant to Section 4.10, or any earlier date on which (a) the
Commitments have been terminated in accordance with this Agreement or
(b) all unpaid principal amounts of the Loans hereunder have been
declared due and payable in accordance with this Agreement.
"Tranche" means the collective reference to Committed LIBOR
Rate Loans, the Interest Period with respect to all of which begin on
the same date and end on the same later date (whether or not such Loans
shall originally have been made on the same day).
"Transferee" has the meaning specified in Section 11.06(g).
"Transfer Effective Date" has the meaning specified in Section
11.06(c).
"Triggering Event" has the meaning specified in Section
5.07(b).
"Type" refers to the determination of whether a Loan is an ABR
Loan or a Committed LIBOR Rate Loan (or a Committed Borrowing comprised
of such Loans).
"Unregco" means Reliant Resources, Inc., a Delaware
corporation and Subsidiary of the Borrower which is the parent company
of a significant portion of the Borrower's unregulated businesses.
"Unregco IPO Transaction" means collectively, the related
transactions whereby:
(i) all of the capital stock of Reliant Energy
Retail, Inc. (or alternatively, all of the assets, including
contracts, of Reliant Energy Retail, Inc. related to the
retail sale of
15
electricity were conveyed by Reliant Energy Retail, Inc. to a
Wholly-Owned Subsidiary of Unregco) and certain other
Subsidiaries of Reliant Resources was contributed by Reliant
Resources to Reliant Energy Services;
(ii) Unregco Merger Sub was merged into Reliant
Energy Services with Reliant Energy Services as the surviving
corporation of the merger, and the surviving corporation of
the merger became a Wholly-Owned Subsidiary of Unregco;
(iii) all of the assets of the Borrower's regulated
and unregulated retail electric operations, including retail
customer care operations, were contributed by the Borrower to
Unregco or a Wholly-Owned Subsidiary of Unregco;
(iv) all of the capital stock of the Borrower's
non-Reliant Resources unregulated businesses, including (A)
Reliant Energy Power Generation, Inc., a Delaware corporation,
(B) Reliant Energy Net Ventures, Inc., a Delaware corporation,
(C) Reliant Energy Communications, Inc., a Delaware
corporation and (D) certain other Subsidiaries of the
Borrower, was contributed by the Borrower to Unregco; and
(v) up to 20% of the common stock of Unregco was
issued and sold in an initial public offering of such stock,
and any changes to such steps of the Unregco IPO Transaction
as described in the Texas Public Utility Commission's Final
Order in Docket 21956 or any changes to such steps of the
Unregco IPO Transaction to the extent reflected in such
transaction as actually consummated.
"Unregco Merger Sub" means a Subsidiary of Unregco which
merged with and into Reliant Energy Services.
"Wholly-Owned" means, with respect to any Subsidiary of any
Person, a Subsidiary, all the outstanding capital stock (other than
directors' qualifying shares required by law) or other ownership
interest of which are at the time owned by such Person or by one or
more Wholly-Owned Subsidiaries of such Person, or both.
"▇▇▇▇" means the 2.0% Zero-Premium Exchangeable Subordinated
Notes due 2029 issued by the Borrower in an initial aggregate face
amount of $999,999,943.25 and the obligations at maturity of which may
be determined by reference to shares of common stock of AOL Time Warner
Inc.
Section 1.02. Computation of Time Periods. In this Agreement, in the
computation of periods of time from a specified date to a later specified date,
unless otherwise specified herein, the word "from" means "from and including"
and the words "to" and "until" each means "to but excluding."
Section 1.03. Accounting Terms. Unless otherwise specified in this
Agreement, all accounting terms used herein shall be construed in accordance
with GAAP as in effect from time to time.
16
ARTICLE II
AMOUNTS AND TERMS OF THE COMMITTED LOANS
Section 2.01. The Committed Loans. Each Bank severally agrees, on the
terms and subject to the conditions hereinafter set forth, to make revolving
credit Loans (the "Committed Loans") to Borrower from time to time on any
Business Day during the period from the Effective Date until the Termination
Date in an aggregate principal amount not to exceed at any time outstanding such
Bank's Commitment; provided that no Committed Loan shall be made as a Committed
LIBOR Rate Loan after the day that is one month prior to the Termination Date;
and provided, further, that in no event shall the aggregate principal amount of
Committed Loans and CAF Loans outstanding at any time exceed the lesser of (i)
$400,000,000 and (ii) the aggregate amount of the Commitments at such time. Each
Committed Borrowing by Borrower shall be in an aggregate principal amount not
less than $10,000,000 (in the case of Committed LIBOR Rate Loans) or $5,000,000
(in the case of ABR Loans), or an integral multiple of $1,000,000 in excess
thereof and shall consist of Loans of the same Type made on the same day by the
Banks ratably according to their respective Pro Rata Percentages. Within the
limits of the Commitments, Borrower may borrow, prepay pursuant to Section 5.05
and reborrow under this Section 2.01. The principal amount outstanding on the
Committed Loans shall mature and, together with accrued and unpaid interest
thereon, shall be due and payable on the Termination Date.
Section 2.02. Making the Loans. (a) Each Committed Borrowing under
Section 2.01 shall be made on Borrower's oral or written notice given by
Borrower to the Agent (i) not later than 11:00 A.M. (New York City time) on the
third Business Day prior to the date of the proposed Committed Borrowing in the
case of a Committed LIBOR Rate Loan and (ii) not later than 11:00 A.M. (New York
City time) on the same Business Day of the proposed Committed Borrowing in the
case of an ABR Loan. With respect to any oral notice of borrowing given by
Borrower, Borrower shall promptly thereafter confirm such notice in writing.
Each written notice of borrowing and each confirmation of an oral notice of
borrowing shall be in substantially the form of Exhibit 2.02 hereto ("Notice of
Borrowing"). Each Notice of Borrowing shall be signed by Borrower and shall
specify therein the requested (i) date of such Committed Borrowing, (ii) Type of
Loans comprising such Committed Borrowing, (iii) aggregate amount of such
Committed Borrowing and (iv) with respect to any Committed LIBOR Rate Loan, the
Interest Period for each such Loan. The Agent shall promptly deliver a copy of
each Notice of Borrowing to each Bank, but in any event no later than 11:30 A.M.
(New York City time) on the relevant borrowing date. Each Bank shall, before
12:00 Noon (New York City time) on the date of such Committed Borrowing, make
available to the Agent at its address referred to in Section 11.02, in
immediately available funds, such Bank's applicable Pro Rata Percentage of such
Committed Borrowing. The Agent shall, no later than 1:00 P.M. (New York City
time), make such funds available to Borrower at Borrower's account as shall be
designated by Borrower to the Agent from time to time. Each Notice of Borrowing
shall be irrevocable and binding on Borrower.
(b) Unless the Agent shall have received notice from a Bank
prior to the date of any Committed Borrowing that such Bank will not make
available to the Agent such Bank's applicable Pro Rata Percentage of such
Committed Borrowing, the Agent may assume that such Bank has made such portion
available to the Agent on the date of such Committed Borrowing in accordance
with Section 2.02(a) and the Agent may, in reliance upon such assumption, make
available to Borrower on such date a corresponding amount. If such amount is
made available to the Agent on a date after such date of Committed Borrowing,
such Bank shall pay to the Agent on demand an amount equal to the product of (i)
the daily average Federal Funds Effective Rate during such period, times (ii)
the amount of such Bank's applicable Pro Rata Percentage of such Committed
Borrowing, times (iii) a fraction, the numerator of which is the number of days
that elapse from and including such date of Committed Borrowing to the date on
which such Bank's applicable Pro Rata Percentage of such Committed
17
Borrowing shall have become immediately available to the Agent and the
denominator of which is 360. A certificate of the Agent submitted to any Bank
with respect to any amounts owing under this Section 2.02(b) shall be conclusive
in the absence of manifest error. If such Bank shall repay to the Agent such
corresponding amount, such amount so repaid shall constitute such Bank's Loan as
part of such Committed Borrowing for purposes of this Agreement. If such Bank's
applicable Pro Rata Percentage of such Committed Borrowing is not in fact made
available to the Agent by such Bank within three (3) Business Days of such date
of Committed Borrowing, the Agent shall be entitled to recover such amount with
interest thereon at the rate per annum, equal to (i) the ABR (in the case of ABR
Loans) or (ii) the Federal Funds Effective Rate (in the case of Committed LIBOR
Rate Loans), on demand, from Borrower.
(c) The failure of any Bank to make the Loan to be made by it
as part of any Committed Borrowing shall not relieve any other Bank of its
obligation, if any, hereunder to make its Loan on the date of such Committed
Borrowing, but no Bank shall be responsible for the failure of any other Bank to
make the Loan to be made by such other Bank on the date of any Committed
Borrowing.
Section 2.03. Minimum Tranches. All Borrowings, prepayments,
conversions and continuations of Committed Loans hereunder and all selections of
Interest Periods hereunder shall be in such amounts and be made pursuant to such
elections so that, after giving effect thereto, the aggregate principal amount
of the Loans comprising each Tranche of Committed LIBOR Rate Loans shall be
equal to $10,000,000 or an integral multiple of $1,000,000 in excess thereof.
ARTICLE III
AMOUNTS AND TERMS OF THE CAF LOANS
Section 3.01. The CAF Loans. From time to time on any Business Day
during the period from the Effective Date until the Termination Date, Borrower
may request CAF Loans from the Banks in amounts such that the aggregate
principal amount of Committed Loans and CAF Loans outstanding at any time shall
not exceed the aggregate amount of the Commitments at such time (the "CAF
Facility"). Under the terms and conditions set forth below, Borrower may borrow,
repay pursuant to Section 3.02(h) and reborrow under this Section 3.01.
Section 3.02. Competitive Bid Procedure. (a) In order to request a CAF
Loan, Borrower shall deliver to the Agent a written notice in the form of
Exhibit 3.02-A, attached hereto (a "Competitive Bid Request"), to be received by
the Agent (i) in the case of each CAF LIBOR Rate Loan, not later than 3:00 P.M.
(New York City time), four (4) Business Days before the borrowing date specified
for such CAF LIBOR Rate Loan and (ii) in the case of each Fixed Rate Loan, not
later than 11:00 A.M. (New York City time), one (1) Business Day before the
borrowing date specified for such Fixed Rate Loan. Each Competitive Bid Request
shall in each case refer to this Agreement and specify (i) the date of Borrowing
of such CAF Loans (which shall be a Business Day), (ii) the aggregate principal
amount thereof, (iii) whether the CAF Loans then being requested are to be CAF
LIBOR Rate Loans or Fixed Rate Loans, (iv) the maturity date for each CAF Loan
requested to be made and (v) the interest payment dates for each CAF Loan
requested to be made. The Agent shall promptly notify each Bank by telex or
facsimile transmission of the contents of each Competitive Bid Request received
by it. Each Competitive Bid Request may solicit bids for CAF Loans in an
aggregate principal amount of $5,000,000 or an integral multiple of $1,000,000
in excess thereof and for not more than three alternative maturity dates for
such CAF Loans. The maturity date for each CAF Loan shall be not less than 15
days nor more than 180 days after the applicable date of CAF Borrowing (and in
any event shall not extend beyond the Termination Date).
18
(b) Each Bank may, in its sole discretion, irrevocably offer
to make one or more CAF Loans to Borrower responsive to each Competitive Bid
Request from Borrower. Any such irrevocable offer by a Bank must be received by
the Agent, in the form of Exhibit 3.02-B hereto (a "Competitive Bid"), (i) in
the case of each CAF LIBOR Rate Loan, not later than 10:30 A.M. (New York City
time), three (3) Business Days before the borrowing date specified for such CAF
LIBOR Rate Loan and (ii) in the case of each Fixed Rate Loan, not later than
9:30 A.M. (New York City time) on the borrowing date specified for such Fixed
Rate Loan. Competitive Bids that do not conform substantially to the format of
Exhibit 3.02-B may be rejected by the Agent after conferring with, and upon the
instruction of, Borrower, and the Agent shall notify the Bank of such rejection
as soon as practicable. Each Competitive Bid shall refer to this Agreement and
(i) specify the maximum principal amount of CAF Loans for each maturity date
(which shall be in an aggregate principal amount not less than $5,000,000 or an
integral multiple of $1,000,000 in excess thereof and which may equal, but not
exceed, the principal amount requested for such maturity date by Borrower) and
the aggregate maximum principal amount of CAF Loans for all maturity dates
(which amount, with respect to any Bank, may exceed such Bank's Commitment) that
the Bank is willing to make to Borrower; and (ii) specify the CAF Rate at which
the Bank is prepared to make each such CAF Loan. A Competitive Bid submitted by
a Bank pursuant to this Section 3.02(b) shall be irrevocable.
(c) The Agent shall (i) in the case of each CAF LIBOR Rate
Loan, not later than 11:00 A.M. (New York City time) three (3) Business Days
before the borrowing date specified for such CAF LIBOR Rate Loan and (ii) in the
case of each Fixed Rate Loan, not later than 10:00 A.M. (New York City time) on
the borrowing date specified for such Fixed Rate Loan, notify Borrower in
writing of all the Competitive Bids made (arranging each such bid in ascending
interest rate order), and the CAF Rate or Rates and the maximum principal amount
of each CAF Loan in respect of which Competitive Bid was made, and the identity
of the Bank that made each bid. The Agent shall send a copy of all Competitive
Bids to Borrower for its records as soon as practicable after completion of the
bidding process set forth in this Section 3.02.
(d) Borrower may in its sole and absolute discretion, subject
only to the provisions of this Section 3.02(d), accept or reject any Competitive
Bid referred to in Section 3.02(c); provided, however, that the aggregate amount
of Borrower's Competitive Bids so accepted by Borrower may not exceed the lesser
of (i) the principal amount of the CAF Borrowing requested by Borrower or (ii)
the amount of the Commitments less the aggregate principal amount of Committed
Loans and CAF Loans made to Borrower and outstanding at such time after giving
effect to the application of the proceeds of such CAF Borrowing on the borrowing
date therefor. Borrower shall notify the Agent in writing whether and to what
extent it has decided to accept or reject any or all of the bids referred to in
Section 3.02(c) by delivering to the Agent a written notice in the form of
Exhibit 3.02-C hereto (a "Competitive Bid Confirmation"), (i) in the case of
each CAF LIBOR Rate Loan, not later than 1:00 P.M. (New York City time), three
(3) Business Days before the borrowing date specified for such CAF LIBOR Rate
Loan and (ii) in the case of each Fixed Rate Loan, not later than 11:00 A.M.
(New York City time) on the borrowing date specified for such Fixed Rate Loan,
which Competitive Bid Confirmation shall specify the principal amount of CAF
Loans for each relevant maturity date to be made by each such bidding Bank
(which amount for each such maturity date shall be equal to or less than the
maximum amount for such maturity date specified in the Competitive Bid of such
Bank, and for all maturity dates included in such Competitive Bid shall be equal
to or less than the aggregate maximum amount specified in such Competitive Bid
for all such maturity dates); provided, however, that (A) the failure by
Borrower to so deliver a Competitive Bid Confirmation shall be deemed to be a
rejection of all the bids referred to in Section 3.02(c); (B) Borrower shall not
accept a bid made at a particular CAF Rate for a particular maturity if Borrower
has decided to reject a bid made at a lower CAF Rate for such maturity; (C) if
Borrower shall accept bids made at a particular CAF Rate for a particular
maturity but shall be restricted by other conditions hereof from borrowing the
maximum principal amount of CAF Loans in respect of
19
which bids at such CAF Rate have been made, then Borrower shall accept a pro
rata portion of each bid made at such CAF Rate based as nearly as possible on
the respective maximum principal amounts of CAF Loans offered to be made by the
relevant Banks pursuant to such bids; and (D) no bid shall be accepted for a CAF
Loan by any Bank unless such CAF Loan is in an aggregate principal amount not
less than $5,000,000 or an integral multiple of $1,000,000 in excess thereof.
Notwithstanding the foregoing, if it is necessary for Borrower to accept a pro
rata allocation of the bids made in response to a Competitive Bid Request
(whether pursuant to the events specified in clause (C) above or otherwise) and
the available principal amount of CAF Loans to be allocated among the Banks is
not sufficient to enable CAF Loans to be allocated to each Bank in an aggregate
principal amount not less than $5,000,000 or in integral multiples of $1,000,000
in excess thereof, then Borrower shall, subject to clause (D) above, select the
Banks to be allocated such CAF Loans and shall round allocations up or down to
the next higher or lower multiple of $1,000,000 as it shall deem appropriate;
provided that the allocations among the Banks to be allocated such CAF Loans
shall be made pro rata based as nearly as possible on the respective maximum
principal amounts of CAF Loans offered to be made by such Banks. The Competitive
Bid Confirmation given by Borrower pursuant to this Section 3.02(d) shall be
irrevocable.
(e) Upon receipt from the Agent of the LIBOR Rate applicable
to any CAF LIBOR Rate Loan to be made by any Bank pursuant to a Competitive Bid
that has been accepted by Borrower pursuant to Section 3.02, the Agent shall
notify such Bank of the applicable LIBOR Rate.
(f) If the Agent shall at any time elect to submit a
Competitive Bid in its capacity as a Bank, it shall submit such bid directly to
Borrower by (i) in the case of a CAF LIBOR Rate Loan, not later than 10:15 A.M.
(New York City time), and (ii) in the case of a Fixed Rate Loan, not later than
9:15 A.M. (New York City time), in each case, on the Business Day on which the
other Banks are required to submit their bids to the Agent pursuant to Section
3.02(b) above.
(g) If Borrower accepts pursuant to Section 3.02(d) one or
more of the offers made by any Bank or Banks, the Agent shall promptly notify
each Bank that has made such an offer of the aggregate amount of such CAF Loans
to be made on such borrowing date for each maturity date and of the acceptance
or rejection of any offers to make such CAF Loans made by such Bank. Each Bank
that is to make a CAF Loan shall, before 12:00 Noon (New York City time) on the
borrowing date specified in the Competitive Bid Request applicable thereto, make
available to the Agent at its office set forth in Section 11.02 the amount of
CAF Loans to be made by such Bank, in immediately available funds. The Agent
shall, no later than 1:00 P.M. (New York City time) on such borrowing date, make
such funds available to Borrower at Borrower's account as shall be designated by
it to the Agent from time to time. As soon as practicable after each borrowing
date, the Agent shall notify each Bank of the aggregate amount of CAF Loans
advanced on such borrowing date and the respective maturity dates thereof.
(h) Borrower shall repay to the Agent for the account of each
Bank that has made a CAF Loan (or the CAF Loan Assignee in respect thereof, as
the case may be) on the maturity date of each CAF Loan (such maturity date being
that specified by Borrower for repayment of such CAF Loan in the related
Competitive Bid Request) the then unpaid principal amount of such CAF Loan.
Borrower shall not have the right to prepay any principal amount of any CAF
Loan.
(i) All notices required by this Section 3.02 shall be made in
accordance with Section 11.02 hereof; provided, however, that each request or
notice required to be made under Section 3.02(a) or 3.02(d) by Borrower may be
made by the giving of telephone notice to the Agent that is promptly confirmed
by delivery of a notice in writing (in substantially the form of Exhibit 3.02-A
or Exhibit 3.02-C, as the case may be) to the Agent.
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ARTICLE IV
PROVISIONS RELATING TO ALL LOANS
Section 4.01. The Loans. (a) Each Bank shall maintain in accordance
with its usual practice an account or accounts evidencing indebtedness of
Borrower to such bank resulting from each Committed Loan and each CAF Loan of
such Bank from time to time, including the amounts of principal and interest
payable and paid to such Bank from time to time under this Agreement.
(b) The Agent shall maintain the Register pursuant to
subsection 11.06(e) and a subaccount therein for each Bank, in which shall be
recorded (i) the amount of each Committed Loan and CAF Loan made by the Banks
through the Agent hereunder, the type thereof and each Interest Period
applicable thereto, (ii) the amount of any principal or interest due and payable
or to become due and payable from Borrower to each Bank hereunder and (iii) both
the amount of any sum received by the Agent hereunder from Borrower and each
Bank's share thereof.
(c) The entries made in the Register and the accounts of each
Bank maintained pursuant to subsection 4.01(a) shall, to the extent permitted by
applicable law, be prima facie evidence of the existence and amounts of the
obligations of Borrower therein recorded; provided, however, that the failure of
any Bank or the Agent to maintain the Register or any such account, or any error
therein, shall not in any manner affect the obligation of Borrower to repay
(with applicable interest) the Loans actually made to Borrower by such Bank in
accordance with the terms of this Agreement.
Section 4.02. Fees. (a) Borrower agrees to pay to the Agent for the
account of each Bank a facility fee (the "Facility Fee") on the average daily
amount of such Bank's Commitment, from the date hereof until the Termination
Date, payable quarterly in arrears beginning on September 30, 2001 and
continuing thereafter on the last day of each March, June, September and
December during the term of this Agreement, and on the Termination Date, at the
applicable rate per annum as specified below:
If Borrower's Designated The Facility Fee (expressed as a
Rating is on any date: percentage on a per annum basis) will be:
---------------------- -----------------------------------------
A-/A-/A3 or higher 0.090%
BBB+/BBB+/Baa1 0.100%
BBB/BBB/Baa2 0.125%
BBB-/BBB-/Baa3 0.175%
BB+/BB+/Ba1 or lower or unrated 0.250%
(b) The Facility Fees payable under Section 4.02(a) and the
fees payable under Section 4.02(e) shall be calculated by the Agent on the basis
of a 365- or 366-day year, as the case may be, for the actual days (including
the first day but excluding the last day) occurring in the period for which such
fee is payable.
(c) The Designated Ratings set forth in Section 4.02(a)
correspond to the Designated Ratings assigned by Standard & Poor's Ratings
Group, Fitch, Inc. and ▇▇▇▇▇'▇ Investors Service, Inc., respectively.
(d) Borrower shall pay to the Agent, for its own account, the
fees in the amounts and on the dates previously agreed to in writing by Borrower
and the Agent.
21
(e) Borrower agrees to pay to the Agent for the account of
each Bank a usage fee at a rate of 0.125% per annum on the aggregate outstanding
principal amount of all Loans (other than CAF Loans) owed to such Bank at all
times during which the aggregate outstanding principal amount of all Loans
(other than CAF Loans) exceeds 33 1/3% of the Commitments of the Banks, payable
quarterly in arrears on the last day of each March, June, September and December
during the term of this Agreement, commencing September 30, 2001, and on the
Termination Date.
Section 4.03. Termination or Reduction of the Commitments. Borrower
shall have the right, upon at least three (3) Business Days' irrevocable notice
to the Agent, to terminate in whole or permanently reduce ratably in part the
unused portions of its Commitments, provided that (a) each partial reduction
shall be in the aggregate principal amount of $5,000,000 or an integral multiple
of $1,000,000 in excess thereof and (b) no such termination or reduction shall
be permitted if, after giving effect thereto and to any prepayments made under
Section 5.05 hereof by Borrower on the effective date thereof, the aggregate
principal amount of Loans made to Borrower and then outstanding would exceed the
Commitments then in effect.
Section 4.04. Interest. Borrower shall pay interest on the unpaid
principal amount of each Loan made by each Bank from the date of such Loan until
such principal amount shall be paid in full, at the times and at the rates per
annum set forth below:
(a) ABR Loans. Each ABR Loan shall bear interest at a rate per
annum equal at all times to the lesser of (i) the ABR and (ii) the Highest
Lawful Rate, payable quarterly in arrears on the last day of each March, June,
September and December, commencing on September 30, 2001 and on the Termination
Date.
(b) LIBOR Rate Loans. Each LIBOR Rate Loan shall bear interest
at a rate per annum equal at all times to (i) in the case of each Committed
LIBOR Rate Loan, the lesser of (A) the sum of the LIBOR Rate for the applicable
Interest Period for such Loan plus the Applicable Margin and (B) the Highest
Lawful Rate, payable on the last day of such Interest Period and, with respect
to Interest Periods of six or nine months, on the ninetieth (90th) day after the
commencement of the Interest Period and on each succeeding ninetieth (90th) day
during such Interest Period, and on the Termination Date and (ii) in the case of
each CAF LIBOR Rate Loan, the lesser of (A) the sum of the LIBOR Rate applicable
to such Loan plus or minus, as the case may be, the CAF Margin specified by a
Bank with respect to such Loan in its Competitive Bid submitted pursuant to
Section 3.02(b) and (B) the Highest Lawful Rate, payable on the date or dates
specified in the relevant Competitive Bid Request.
(c) Fixed Rate Loans. Each Fixed Rate Loan shall bear interest
at a rate per annum equal at all times to the lesser of (i) the fixed rate of
interest offered by the Bank making such Loan and accepted by Borrower pursuant
to Section 3.02 and (ii) the Highest Lawful Rate, payable on the date or dates
specified in the relevant Competitive Bid Request.
(d) Interest payable under Sections 4.04(a) and 4.04(e) (to
the extent that the calculation of the Default Rate thereunder is based on the
Alternate Base Rate) shall be calculated by the Agent on the basis of a 365- or
366-day year, as the case may be, for the actual days (including the first day
but excluding the last day) occurring in the period in which such interest is
payable. Interest payable under Sections 4.04(b), (c) and (e) (to the extent
that the calculation of the Default Rate is based on either the LIBOR Rate or
the rate set forth in Section 4.04(c)) shall be calculated by the Agent on the
basis of a 360-day year for the actual days (including the first day and
excluding the last day) occurring in the period for which such interest is
payable.
22
(e) Notwithstanding the foregoing, if all or a portion of (i)
the principal amount of any Loan, (ii) any interest payable thereon, or (iii)
any Facility Fee or other amount payable hereunder shall not be paid when due
(whether at the stated maturity, by acceleration or otherwise), such overdue
amount shall bear interest, payable from time to time on demand, at a rate per
annum equal to the lesser of (A) the Highest Lawful Rate and (B) the Default
Rate, in each case from the date of such non-payment until such amount is paid
in full (as well after as before judgment).
(f) Each determination of an interest rate by the Agent
pursuant to any provisions of this Agreement shall be conclusive and binding on
Borrower and the Banks in the absence of manifest error. The Agent shall, at the
request of Borrower, deliver to Borrower a statement showing in reasonable
detail the quotations used by the Agent in determining the LIBOR Rate.
(g) If any Reference Bank shall for any reason no longer have
a Commitment or any Loans, such Reference Bank shall thereupon cease to be a
Reference Bank, and if, as a result, there shall only be one Reference Bank
remaining, the Agent (after consultation with Borrower and the Banks) shall, by
notice to Borrower and the Banks, designate another Bank as a Reference Bank so
that there shall at all times be at least two Reference Banks.
(h) Each Reference Bank shall use its best efforts to furnish
quotations of rates to the Agent as contemplated hereby. If any of the Reference
Banks shall be unable or shall otherwise fail to supply such rates to the Agent
upon its request, the rate of interest shall, subject to the provisions of
Section 4.06(b), be determined on the basis of the quotations of the remaining
Reference Banks or Reference Bank.
Section 4.05. Reserve Requirements. (a) Borrower agrees to pay
to each Bank that requests compensation under this Section 4.05 in accordance
with the provisions set forth in Section 5.07(b), so long as such Bank shall be
required to maintain reserves against "Eurocurrency liabilities" under
Regulation D of the Board (or, so long as such Bank shall be required by the
Board or by any other Governmental Authority to maintain reserves against any
other category of liabilities that includes deposits by reference to which the
interest rate on LIBOR Rate Loans is determined as provided in this Agreement or
against any category of extensions of credit or other assets of such Bank that
includes any LIBOR Rate Loans), an additional amount (determined by such Bank
and notified to Borrower pursuant to the provisions set forth in Section
5.07(b)) representing such Bank's calculation or, if an accurate calculation is
impracticable, reasonable estimate (using such method of allocation to such
Loans of Borrower as such Bank shall determine in accordance with Section
5.07(a)) of the actual costs, if any, incurred by such Bank during the relevant
Interest Period or during the period a CAF LIBOR Rate Loan made by such Bank was
outstanding, as the case may be, as a result of the applicability of the
foregoing reserves to such Committed LIBOR Rate Loans or CAF LIBOR Rate Loans,
which amount in any event shall not exceed the product of the following for each
day of such Interest Period or each day during the period such CAF LIBOR Rate
Loan was outstanding, as the case may be:
(i) the principal amount of the relevant Committed LIBOR Rate
Loans or CAF LIBOR Rate Loans made by such Bank outstanding on such
day; and
(ii) the difference between (A) a fraction, the numerator of
which is the LIBOR Rate (expressed as a decimal) applicable to such
Committed LIBOR Rate Loan or CAF LIBOR Rate Loan, as the case may be
(expressed as a decimal), and the denominator of which is one minus the
maximum rate (expressed as a decimal) at which such reserve
requirements are imposed by the Board or other Governmental Authority
on such date, minus (B) such numerator; and
(iii) a fraction, the numerator of which is one and the
denominator of which is 360.
23
(b) The agreements in this Section 4.05 shall survive the
termination of this Agreement and the payment of the Loans and all other amounts
payable hereunder.
Section 4.06. Interest Rate Determination and Protection. (a) The rate
of interest for each Committed LIBOR Rate Loan shall be determined by the Agent
two (2) Business Days before the first day of each Interest Period applicable to
such Loan. The Agent shall give prompt notice to Borrower and the Banks of the
applicable interest rate determined by the Agent for purposes of Sections
4.04(a) and (b) hereof.
(b) If, with respect to any Committed LIBOR Rate Loans, prior
to the first day of an Interest Period (i) the Agent shall have determined
(which determination shall be conclusive and binding upon Borrower) that, by
reason of circumstances affecting the London interbank market, adequate and
reasonable means do not exist for ascertaining the LIBOR Rate for such Interest
Period or (ii) the Agent shall have received notice from the Majority Banks that
the LIBOR Rate determined or to be determined for such Interest Period will not
adequately and fairly reflect the cost to such Banks (as determined in good
faith and certified by such Banks) of making or maintaining their affected
Committed LIBOR Rate Loans during such Interest Period, the Agent shall give
telecopy or telephonic notice thereof to Borrower and the Banks as soon as
practicable thereafter. If such notice is given, (A) any Committed LIBOR Rate
Loans requested to be made on the first day of such Interest Period shall be
made as ABR Loans, (B) any Committed Loans that were to have been converted on
the first day of such Interest Period to Committed LIBOR Rate Loans shall be
continued as ABR Loans and (C) any outstanding Committed LIBOR Rate Loans shall
be converted, on the first day of such Interest Period, to ABR Loans. Until such
notice has been withdrawn by the Agent, no further Committed LIBOR Rate Loans
shall be made or continued as such, nor shall Borrower have the right to convert
Committed Loans to Committed LIBOR Rate Loans.
Section 4.07. Voluntary Interest Conversion or Continuation of
Committed Loans. (a) Borrower may on any Business Day, upon its irrevocable oral
or written notice of interest conversion/continuation given by it to the Agent
not later than 11:00 A.M. (New York City time) on the third Business Day prior
to the date of the proposed interest conversion or continuation in the case of a
Committed LIBOR Rate Loan, (i) convert Committed Loans of one Type into
Committed Loans of another Type; (ii) convert Committed LIBOR Rate Loans for a
specified Interest Period into Committed LIBOR Rate Loans for a different
Interest Period; or (iii) continue Committed LIBOR Rate Loans for a specified
Interest Period as Committed LIBOR Rate Loans for the same Interest Period;
provided, however, that (A) any conversion of any Committed LIBOR Rate Loans
into Committed LIBOR Rate Loans for a different Interest Period, or into ABR
Loans, or any continuation of Committed LIBOR Rate Loans for the same Interest
Period shall be made on, and only on, the last day of an Interest Period for
such Committed LIBOR Rate Loans; (B) no Committed Loan may be converted into or
continued as a Committed LIBOR Rate Loan by Borrower so long as an Event of
Default has occurred and is continuing; (C) no Committed Loan may be converted
into or continued as a Committed LIBOR Rate Loan after the date that is one
month prior to the Termination Date, and (D) no Committed Loan may be converted
into or continued as a Committed LIBOR Rate Loan if, after giving effect
thereto, Section 2.03 would be contravened. With respect to any oral notice of
interest conversion/continuation given by Borrower under this Section 4.07(a),
Borrower shall promptly thereafter confirm such notice in writing. Each written
notice of interest conversion/continuation given by Borrower under this Section
4.07(a) and each confirmation of an oral notice of interest conversion/
continuation given by Borrower under this Section 4.07(a) shall be in
substantially the form of Exhibit 4.07 hereto ("Notice of Interest
Conversion/Continuation"). Each such Notice of Interest Conversion/Continuation
shall specify therein the requested (x) date of such interest conversion or
continuation; (y) the Committed Loans to be converted or continued; and (z) if
such interest conversion or continuation is into Committed LIBOR Rate Loans, the
duration of the Interest Period for each such Committed LIBOR Rate Loan. The
Agent shall
24
promptly deliver a copy of each Notice of Interest Conversion/Continuation to
each Bank. Each Notice of Interest Conversion/Continuation shall be irrevocable
and binding on Borrower.
(b) If Borrower shall fail to deliver to the Agent a Notice of
Interest Conversion/Continuation in accordance with Section 4.07(a) hereof, or
to select the duration of any Interest Period for the principal amount
outstanding under any Committed LIBOR Rate Loan by 11:00 A.M. (New York City
time) on the third Business Day prior to the last day of the Interest Period
applicable to such Loan in accordance with Section 4.07(a), the Agent will
forthwith so notify Borrower and the Banks (provided that the failure to give
such notice shall not affect the conversion referred to below) and such
Committed Loans will automatically, on the last day of the then existing
Interest Period therefor, convert into ABR Loans.
Section 4.08. Funding Losses Relating to LIBOR Rate Loans. (a) Borrower
agrees, without duplication of any other provision under this Agreement, to
indemnify each Bank and to hold each Bank harmless from any loss or expense that
such Bank may sustain or incur as a consequence of (i) default by Borrower in
payment when due of the principal amount of or interest on any LIBOR Rate Loan,
(ii) default by Borrower in making a borrowing of, conversion into or
continuation of LIBOR Rate Loans after Borrower has given a notice requesting
the same in accordance with the provisions of this Agreement, (iii) default by
Borrower in making any prepayment after Borrower has given a notice thereof in
accordance with the provisions of this Agreement or (iv) the making of a
prepayment of LIBOR Rate Loans or the conversion of Committed LIBOR Rate Loans
into ABR Loans, on a day that is not the last day of an Interest Period with
respect thereto (excluding any prepayment made pursuant to Section 4.09),
including, without limitation, in each case, any such loss or expense arising
from the reemployment of funds obtained by it or from fees payable to terminate
the deposits from which such funds were obtained. The calculation of all amounts
payable to a Bank under this Section 4.08(a) shall be made pursuant to the
method described in Section 5.07(a), but in no event shall such amounts exceed
the amounts that would have been payable assuming such Bank had actually funded
its relevant LIBOR Rate Loan through the purchase of a deposit bearing interest
at the LIBOR Rate in an amount equal to the amount of such LIBOR Rate Loan and
having a maturity comparable to (A) with respect to any Committed LIBOR Rate
Loan, the relevant Interest Period and (B) with respect to any CAF LIBOR Rate
Loan, the maturity set forth in the Competitive Bid applicable thereto;
provided, that each Bank may fund each of its LIBOR Rate Loans in any manner it
sees fit, and the foregoing assumption shall be utilized only for the
calculation of amounts payable under this Section 4.08(a).
(b) The agreements in this Section 4.08 shall survive the
termination of this Agreement and the payment of the Loans and all other amounts
payable hereunder.
Section 4.09. Change in Legality. (a) Notwithstanding any other
provision of this Agreement, if any Bank shall notify the Agent that the
introduction of or any change in or in the interpretation or application of any
law or regulation makes it unlawful, or any central bank or other governmental
authority asserts that it is unlawful, for any Bank or its LIBOR Lending Office
to perform its obligations hereunder to make LIBOR Rate Loans or to fund or
maintain LIBOR Rate Loans hereunder, (i) the obligation of such Bank to make, or
to convert Committed Loans into, or to continue Committed LIBOR Rate Loans as,
LIBOR Rate Loans shall be suspended until the Agent shall notify Borrower that
the circumstances causing such suspension no longer exist; (ii) Borrower shall,
at its option, either prepay in full all Committed LIBOR Rate Loans of such Bank
then outstanding, or convert all such Loans to ABR Loans, on the respective last
days of the then current Interest Periods with respect to such Loans (or within
such earlier period as required by law), accompanied, in the case of any
prepayments, by interest accrued thereon; and (iii) Borrower shall, with respect
to each CAF LIBOR Rate Loan of such Bank, take such action as such Bank shall
reasonably request. Each Bank agrees that it will use reasonable efforts to
designate a different Applicable Lending Office for the LIBOR Rate Loans due to
it affected by this
25
Section 4.09, if such designation will avoid the illegality described in this
Section 4.09 so long as such designation will not be disadvantageous to such
Bank as determined by such Bank in its sole discretion acting in good faith.
(b) For purposes of this Section 4.09, a notice to Borrower
(with a copy to the Agent) by any Bank pursuant to paragraph (a) above shall be
effective on the date of receipt thereof by Borrower.
Section 4.10. Extension of Commitments. (a) Borrower may, by written
request to the Agent given not more than 65 days prior to the Termination Date
then in effect with respect to the Commitments of the Banks (the "Applicable
Termination Date"), and in a form reasonably acceptable to the Agent (an
"Extension Request"), request that the Applicable Termination Date be extended
to the date that is 364 days following such Applicable Termination Date, which
request shall identify (i) the most recent audited financial statements of
Borrower that have been delivered to the Banks pursuant to Section 8.01(a)(i)
and (ii) the most recent unaudited financial statements of Borrower, if any,
that have been delivered to the Banks pursuant to Section 8.01(a)(ii) relating
to periods subsequent to the period covered by the audited financial statements
referred to in clause (i) above (such audited financial statements and any such
unaudited financial statements being collectively referred to as the "Extension
Financial Statements"). The Agent shall, within five days of receipt of the
Extension Request, request each Bank to indicate whether or not it consents to
such extension (which consent may be granted or withheld by each Bank in its
sole discretion). Not more than 60 days and not less than 45 days before the
Applicable Termination Date, each Bank will notify Borrower in writing (with a
copy thereof to the Agent) whether or not it consents to such Extension Request;
provided that any Bank that fails to so advise Borrower within such time period
(the "Extension Consideration Period") shall be deemed to have denied such
Extension Request. Subject to the provisions of Sections 4.10(b) and 4.10(c)
below, the extension of the Applicable Termination Date then in effect
contemplated by such Extension Request shall become effective as of such
Applicable Termination Date only upon satisfaction of the following conditions
as of such date: (A) no Default or Event of Default shall have occurred and be
continuing; (B) Borrower shall be in compliance with and shall have performed
all agreements and covenants made by it under this Agreement; and (C) the
representations and warranties made by Borrower in Section 7.01 hereof (except
for those representations and warranties or parts thereof that, by their terms,
expressly relate solely to a specific date, in which case such representations
and warranties shall be true and correct in all material respects as of such
specific date) shall be true and correct in all material respects on and as of
said date with the same force and effect as if made on or as of such date;
provided that (y) the representations and warranties set forth in Section
7.01(j) will be made with respect to the latest date covered by the Extension
Financial Statements and (z) the representations and warranties set forth in
Section 7.01(m) will be made with respect to the Extension Financial Statements.
Each such Extension Request by Borrower under this Section 4.10 shall constitute
a certification by Borrower to the effect set forth in clauses (A), (B) and (C)
of the preceding sentence (both as of the date of such notice and, unless
Borrower otherwise notifies the Agent, as of such Applicable Termination Date).
Upon the effectiveness of any extension of the Applicable Termination Date
pursuant to any Extension Request under this Section 4.10, the representations
and warranties set forth in Section 7.01(j) shall, as of the effective date of
such extension, be deemed for all purposes, including, without limitation,
Section 6.02(i), to be made with respect to of the audited financial statements
included in the Extension Financial Statements identified in such Extension
Request.
(b) In the event that Banks representing at least 51% of the
Commitments at the time Borrower delivers the Extension Request (the "Continuing
Banks") advise the Agent in writing during the Extension Consideration Period
(the last day of such Period being referred to herein as the "Consent Date") of
their consent to a requested extension, which consent shall be irrevocable, the
applicable Termination Date for the Loans held or thereafter made by the
Continuing Banks shall, subject to the
26
provisions of Section 4.10(c) and without derogation of the Banks' rights to
demand payment therefor, be automatically extended for a 364-day period from the
Applicable Termination Date then in effect; provided, however, that the
Applicable Termination Date for the Loans of those Banks that shall not have
consented to such extension ("Non-Consenting Banks") shall not be affected. Any
Bank that does not advise the Agent of its consent as aforesaid will, as of 5:00
P.M. (New York City time), on the Consent Date, without any further action on
its part, be deemed a Non-Consenting Bank. In the event of the extension
(subject to the provisions of Section 4.10(c)) of the Applicable Termination
Date pursuant to this Section 4.10(b), the Agent shall promptly notify Borrower
and all of the Banks. Any Non-Consenting Bank may, by written notice to the
Agent and Borrower given within 15 days following receipt by such Bank of any
such notice from the Agent, advise the Agent and Borrower of its election to
become a Continuing Bank. Upon receipt by the Agent of any such notice from a
Non-Consenting Bank, such Non-Consenting Bank, subject to the provisions of
Section 4.10(c), shall thereupon cease to be a Non-Consenting Bank and, in lieu
thereof, shall irrevocably become a Continuing Bank and the Applicable
Termination Date then in effect for the Loans held by such Bank shall be
automatically extended as provided above in this Section 4.10. The Agent shall
promptly notify Borrower and the Banks in the event any Non-Consenting Bank
becomes a Continuing Bank as hereinabove provided.
(c) In the event of an extension of the Applicable Termination
Date pursuant to Section 4.10(b), the Continuing Banks, or any of them, shall
have the right (but not the obligation) to assume all or any part of the
Non-Consenting Banks' Commitments by giving written notice to Borrower and the
Agent of their election to do so on or before the 30th day next preceding the
Applicable Termination Date in effect at the time the Extension Request was
given, which notice shall be irrevocable and shall constitute an undertaking to
purchase (without recourse), pursuant to a Committed Loan Assignment and
Acceptance, from the Non-Consenting Banks, at the close of business on the
Applicable Termination Date, all Loans outstanding on the Applicable Termination
Date that correspond to the portion of the Commitments to be assumed at a price
equal to the unpaid principal amount of such Loans plus all accrued and unpaid
interest and fees thereon. Such Commitments, or portion thereof, to be assumed
by Continuing Banks shall be allocated among those Continuing Banks who have so
elected to assume the same pro rata in accordance with the respective
Commitments of such Continuing Banks as of the date of the Extension Request or
on such other basis as such Continuing Banks shall mutually agree; provided,
however, that immediately following such allocation the Commitment of any
Continuing Bank shall not constitute more than 16.6% of the Commitments of all
the Continuing Banks. In the event that the Continuing Banks shall not elect as
hereinabove provided to assume all of the Non-Consenting Banks' Commitments on
or before the 30th day next preceding the Applicable Termination Date, then
Borrower may thereafter, with the consent of the Agent (which consent shall not
be unreasonably withheld), arrange for the assumption by one or more new lending
institutions, effective as of the close of business on the Applicable
Termination Date, of that part of the Non-Consenting Banks' Commitments not to
be assumed by the Continuing Banks; provided, however, that each such new
lending institution (i) shall not have a Commitment that shall constitute more
than 16.6% of the Commitments of all the Continuing Banks and any such new
lending institutions, (ii) shall, pursuant to a Committed Loan Assignment and
Acceptance, purchase (without recourse) from the Non-Consenting Banks, at the
close of business on the Applicable Termination Date, all Loans outstanding on
the Applicable Termination Date that correspond to the portion of the
Commitments to be so assumed at a price equal to the unpaid principal amount of
such Loans plus all accrued and unpaid interest and fees thereon, (iii) shall
assume, pursuant to a Committed Loan Assignment and Acceptance, its share of the
obligations of the Non-Consenting Banks hereunder, including, but not limited
to, its share of the Commitments of such Non-Consenting Banks, (iv) shall agree,
pursuant to a Committed Loan Assignment and Acceptance, to be bound as a Bank by
the terms of this Agreement and (v) shall execute and deliver to the Agent such
other documents as the Agent may reasonably require to evidence the succession
of interest; and provided further, that upon satisfaction of the foregoing and
effective at the close of business on the Applicable Termination Date, (i) the
Non-Consenting Banks shall sell (pro rata and without recourse) their respective
Loans that each new lending
27
institution has agreed to purchase hereunder, (ii) each Non-Consenting Bank and
the Agent shall make entries in the accounts of each such Non-Consenting Bank
and the Register, respectively, evidencing the purchase of the Loans by each new
lending institution, (iii) each such new lending institution shall become a Bank
for all purposes hereof, (iv) each Non-Consenting Bank shall cease to be a Bank
hereunder and shall be released from all obligations hereunder (other than those
arising prior to the close of business on the Applicable Termination Date), (v)
Borrower shall be released from any and all obligations owing hereunder to such
Non-Consenting Bank (other than those arising prior to the close of business on
the Applicable Termination Date) and (vi) in the event that any Notes have been
issued to such Non-Consenting Bank, such Notes shall be marked "cancelled" and
surrendered by the Non-Consenting Bank to the Agent for return to Borrower. If
and to the extent that, on the third full Business Day prior to the Applicable
Termination Date, the Continuing Banks shall not have elected to assume all of
the Non-Consenting Banks' Commitments and Borrower shall not have been able to
arrange for an assumption of all of the Non-Consenting Banks' Commitments as
contemplated by the foregoing provisions of this Section 4.10(c), then Borrower
shall pay the remaining balance of the principal of, interest on, and fees in
respect of, the Loans made by each Non-Consenting Bank, as well as any other
amounts payable to such Non-Consenting Bank pursuant to this Agreement, prior to
the close of business on the Applicable Termination Date, in which event the
Commitments of the Non-Consenting Banks shall terminate and the aggregate
Commitments hereunder shall be accordingly reduced.
ARTICLE V
INCREASED COSTS, TAXES, PAYMENTS AND PREPAYMENTS
Section 5.01. Increased Costs; Capital Adequacy. (a) If after the date
of this Agreement the adoption of or any change in any law or regulation or in
the interpretation or application thereof or compliance by any Bank with any
request or directive (whether or not having the force of law) from any central
bank or other Governmental Authority made subsequent to the date of this
Agreement:
(i) shall subject any Bank to any tax of any kind whatsoever
with respect to this Agreement, any Note or any LIBOR Rate Loan made by
it, or change the basis of taxation of payments to such Bank in respect
thereof (except for (A) Taxes covered by Section 5.03, (B) net income
taxes and franchise taxes imposed on such Bank as a result of a present
or former connection between the jurisdiction of the government or
taxing authority imposing such tax and such Bank other than a
connection arising solely from such Bank having executed, delivered or
performed its obligations or received a payment under, or enforced,
this Agreement or the Loans and (C) changes in the rate of tax on the
overall net income of such Bank);
(ii) shall impose, modify or hold applicable any reserve,
special deposit, compulsory loan or similar requirement against assets
held by, deposits or other liabilities in or for the account of,
advances, loans or other extensions of credit by, or any other
acquisition of funds by, any office of such Bank that is not otherwise
included in the determination of the LIBOR Rate hereunder (except for
amounts covered by Section 4.05 or any other Section hereof); or
(iii) shall impose on such Bank any other condition;
and the result of any of the foregoing is to increase the actual cost to such
Bank, by an amount that such Bank deems to be material, of making, converting
into, continuing or maintaining LIBOR Rate Loans or to reduce any amount
receivable hereunder in respect thereof, then, in any such case, Borrower shall
promptly pay such Bank, upon its demand in the manner set forth in Section
5.07(b), any additional amounts, computed by such Bank in accordance with
Section 5.07(a), necessary to compensate such Bank for such actual increased
cost or reduced amount receivable that is attributable to Loans or Commitments
28
(to the extent that such Bank has not already been compensated or reimbursed for
such amounts pursuant to any other provision of this Agreement). If any Bank
becomes entitled to claim any additional amounts pursuant to this Section
5.01(a) from Borrower, it shall promptly notify Borrower, through the Agent, of
the event by reason of which it has become so entitled in the manner set forth
in Section 5.07(b).
(b) If any Bank determines in good faith that the introduction
of or any change in or in the interpretation or application of any law or
regulation regarding capital adequacy after the date of this Agreement or
compliance by such Bank or any corporation controlling such Bank with any law or
regulation or any guideline or request from any central bank or other
Governmental Authority (whether or not having the force of law) made or issued
after the date of this Agreement does or shall have the effect, as a result of
such Bank's obligations under this Agreement, of reducing the rate of return on
such Bank's or such corporation's capital to a level below that which such Bank
or such corporation could have achieved but for such change or compliance
(taking into consideration such Bank's or such corporation's policies with
respect to capital adequacy) by an amount deemed by such Bank to be material,
Borrower shall pay to the Agent for the account of such Bank, from time to time
as specified by such Bank in the manner set forth in Section 5.07(b), additional
amounts, computed by such Bank in accordance with Section 5.07(a), sufficient to
compensate such Bank or such corporation in the light of such circumstances, to
the extent that such Bank reasonably determines such reduction in rate of return
is allocable to the existence of such Bank's obligations hereunder.
(c) The agreements contained in this Section 5.01 shall
survive the termination of this Agreement and the payment of the Loans and all
other amounts payable hereunder.
Section 5.02. Payments and Computations. (a) Borrower shall make each
payment (including each prepayment) hereunder and under the Loans, whether on
account of principal, interest, fees or otherwise, without setoff or
counterclaim, not later than 12:00 Noon (New York City time) on the day when
due, in Dollars to the Agent at its address referred to in Section 11.02 in
immediately available funds. The Agent will promptly thereafter cause to be
distributed like funds relating to the payment of principal or interest or
Facility Fees (to the extent received by the Agent) ratably to the Banks for the
account of their respective Applicable Lending Offices, and like funds relating
to the payment of any other amount payable to any Bank (to the extent received
by the Agent) to such Bank for the account of its Applicable Lending Office, in
each case to be applied in accordance with the terms of this Agreement.
(b) Whenever any payment hereunder or under the Loans shall be
stated to be due on a day other than a Business Day, such payment shall be made
on the next succeeding Business Day, and such extension of time shall in such
case be included in the computation of payment of interest or fees, as the case
may be; provided, however, if such extension would cause payment of interest on
or principal of LIBOR Rate Loans to be made in the next following calendar
month, such payment shall be made on the next preceding Business Day.
(c) Unless the Agent shall have received notice from Borrower
prior to the date on which any payment is due to the Banks hereunder that
Borrower will not make such payment in full, the Agent may assume that Borrower
has made such payment in full to the Agent on such date and the Agent may, in
reliance upon such assumption, cause to be distributed to each Bank on such due
date an amount equal to the amount then due such Bank. If and to the extent
Borrower shall not have so made such payment in full to the Agent, each Bank
shall pay to the Agent on demand an amount equal to the product of (i) the daily
average Federal Funds Effective Rate during such period, times (ii) the amount
of such Bank's applicable Pro Rata Percentage of such payment, times (iii) a
fraction, the numerator of which is the number of days that elapse from and
including the date such amount is distributed to such Bank to the date on which
such Bank's applicable Pro Rata Percentage of such payment shall have become
immediately available to the Agent and the denominator of which is 360.
29
Section 5.03. Taxes. (a) Except with respect to withholdings of United
States taxes as provided in Section 5.03(d), any and all payments by Borrower
hereunder or under the Loans shall be made, in accordance with Section 5.02,
free and clear of and without deduction or withholding for or on account of any
and all present or future taxes, levies, imposts, deductions, charges or
withholdings, and all liabilities with respect thereto, excluding, in the case
of each Bank and the Agent, net income taxes and franchise taxes imposed on it
as a result of a present or former connection between the jurisdiction of the
government or taxing authority imposing such tax and the Agent or such Bank
other than a connection arising solely from the Agent or such Bank having
executed, delivered or performed its obligations or received a payment under, or
enforced, this Agreement or the Loans (all such non-excluded taxes, levies,
imposts, deductions, charges, withholdings and liabilities being hereinafter
referred to as "Taxes"). Except with respect to withholdings of United States
taxes as provided in Section 5.03(d), if Borrower shall be required by law to
deduct any Taxes from or in respect of any sum payable hereunder or under any
Loans to any Bank or the Agent, (i) the sum payable shall be increased as may be
necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section 5.03) such Bank or the
Agent (as the case may be) receives an amount equal to the sum it would have
received had no such deductions been made; (ii) Borrower shall make such
deductions; and (iii) Borrower shall pay the full amount deducted to the
relevant taxation authority or other authority in accordance with applicable
law. If requested by any Bank, Borrower shall confirm that all applicable Taxes,
if any, imposed on it by virtue of the transactions under this Agreement have
been properly and legally paid by it to the appropriate taxing authorities by
sending either (A) official tax receipts or notarized copies of such receipts to
such Bank within thirty (30) days after payment of any applicable tax or (B) a
certificate executed by a Responsible Officer of Borrower confirming that such
Taxes have been paid, together with evidence of such payment.
(b) In addition, Borrower agrees to pay, in the manner set
forth in Section 5.07(b), any present or future stamp or documentary taxes or
any other excise or property taxes, charges or similar levies that arise from
any payment made hereunder or under the Loans or from the execution, delivery or
registration of, or otherwise with respect to, this Agreement or the Loans and
for which such Bank or the Agent (as the case may be) has not been otherwise
reimbursed by Borrower under this Agreement (hereinafter referred to as "Other
Taxes").
(c) Borrower will indemnify each Bank and the Agent for the
full amount of Taxes or Other Taxes (including, without limitation, any Taxes or
Other Taxes imposed by any jurisdiction on amounts payable under this Section
5.03) paid by such Bank or the Agent (as the case may be) and any liability
(including penalties, interest and expenses) arising therefrom or with respect
thereto, including, without limitation or duplication, any incremental taxes,
interest or penalties that may become payable by the Agent or any Bank as a
result of any failure by Borrower to pay any Taxes or Other Taxes when due to
the appropriate taxing authority or to remit to any Bank the receipts or other
evidence of payment of Taxes or Other Taxes.
(d) Each Bank and each CAF Loan Assignee registered in the
Register that is not a U.S. Person as defined in Section 7701(a)(30) of the Code
agrees that it will deliver to the Borrower and the Agent two duly completed
copies of United States Internal Revenue Service Form W-8BEN or W-8ECI or
successor applicable forms, as the case may be. Each such Bank and each such CAF
Loan Assignee also agrees to deliver to the Borrower and the Agent two further
copies of the said Form W-8BEN or W-8ECI, or successor applicable forms or other
manner of certification, as the case may be, on or before the date that any such
form expires or becomes obsolete or after the occurrence of any event requiring
a change in the most recent form previously delivered by it to the Borrower, and
such extensions or renewals thereof as may reasonably be requested by the
Borrower or the Agent, unless in any such case any change in treaty, law or
regulation has occurred prior to the date on which any such delivery would
otherwise be required that renders all such forms inapplicable or that would
prevent such
30
Bank or such CAF Loan Assignee from duly completing and delivering any such form
with respect to it and such Bank or such CAF Loan Assignee so advises the
Borrower and the Agent. Each such Bank and each such CAF Loan Assignee shall
certify in the case of a Form W-8BEN or W-8ECI that it is entitled to receive
payments under this Agreement without deduction or withholding of any United
States federal income taxes. In the event that any such Bank or CAF Loan
Assignee fails to deliver any forms required under this Section 5.03(d), the
Borrower's obligation to pay additional amounts shall be reduced to the amount
that it would have been obligated to pay had such forms been provided.
(e) The agreements in this Section 5.03 shall survive the
termination of this Agreement and the payment of the Loans and all other amounts
payable hereunder. Nothing contained in this Section 5.03 shall require Borrower
to pay any amount to any Bank or the Agent in addition to that for which it has
already reimbursed any Bank or the Agent under any other provision of this
Agreement.
Section 5.04. Sharing of Payments, Etc. If any Bank (a "benefitted
Bank") shall at any time receive any payment (other than pursuant to Section
4.05, 4.08, 5.01 or 5.03) of all or part of its Committed Loans, or interest
thereon, or receive any collateral in respect thereof (whether voluntarily or
involuntarily, by setoff, pursuant to events or proceedings of the nature
referred to in Section 9.01(g) or 9.01(h), or otherwise), in a greater
proportion than any such payment to or collateral received by any other Bank, if
any, in respect of such other Bank's Committed Loans, or interest thereon, such
benefitted Bank shall purchase for cash from the other Banks a participating
interest in such portion of each such other Bank's Committed Loans or shall
provide such other Banks with the benefits of any such collateral, or the
proceeds thereof, as shall be necessary to cause such benefitted Bank to share
the excess payment or benefits of such collateral or proceeds ratably with each
of the Banks; provided, however, that if all or any portion of such excess
payment or benefits is thereafter recovered from such benefitted Bank, such
purchase shall be rescinded, and the purchase price and benefits returned, to
the extent of such recovery, but without interest. Borrower agrees that any Bank
so purchasing a participation from another Bank pursuant to this Section 5.04
may, to the fullest extent permitted by law, exercise all its rights of payment
(including the right of setoff) with respect to such participation as fully as
if such Bank were the direct creditor of Borrower in the amount of such
participation.
Section 5.05. Voluntary Prepayments. Subject to Section 4.08, Borrower
may, upon notice delivered to the Agent not later than 11:00 A.M. (New York City
time) one (1) Business Day prior to the date of prepayment stating the aggregate
principal amount of the prepayment and the Committed Loans to be prepaid, prepay
the outstanding principal amounts of such Committed Loans comprising part of the
same Committed Borrowing in whole or ratably in part, together with accrued
interest to the date of such prepayment on the principal amount prepaid;
provided, however, that all such prepayments shall be made without premium or
penalty thereon; and provided further that losses incurred by any Bank under
Section 4.08 shall be payable with respect to each such prepayment in the manner
set forth in Section 4.08. Such notice shall be irrevocable, and the payment
amount specified in such notice shall be due and payable on the prepayment date
described in such notice, together with accrued and unpaid interest on the
amount prepaid. Partial prepayments with respect to any Tranche of Committed
LIBOR Rate Loans shall be in an aggregate principal amount equal to the lesser
of (a) $10,000,000 or an integral multiple of $1,000,000 in excess thereof or
(b) the aggregate principal amount of such Tranche of Committed LIBOR Rate Loans
then outstanding, as the case may be; provided, that, no partial prepayment of
any Tranche of Committed LIBOR Rate Loans may be made if, after giving effect
thereto, Section 2.03 would be contravened. Partial prepayments with respect to
the ABR Loans shall be made in an aggregate principal amount equal to the lesser
of (i) $5,000,000 or an integral multiple of $1,000,000 in excess thereof or
(ii) the aggregate principal amount of ABR Loans then outstanding, as the case
may be.
Section 5.06. Mitigation of Losses and Costs. Any Bank claiming
reimbursement from Borrower under Sections 4.05, 4.08, 5.01 and 5.03 hereof
shall use reasonable efforts (including, without
31
limitation, if requested by Borrower, reasonable efforts to designate a
different Applicable Lending Office of such Bank) to mitigate the amount of such
losses, costs, expenses and liabilities, if such efforts can be made and such
mitigation can be accomplished without such Bank suffering (a) any economic
disadvantage for which such Bank does not receive full indemnity from Borrower
under this Agreement or (b) any legal or regulatory disadvantage.
Section 5.07. Determination and Notice of Additional Costs and Other
Amounts. (a) In determining the amount of any claim for reimbursement or
compensation under Sections 4.05, 4.08 and 5.01, each Bank may use any
reasonable averaging, attribution and allocation methods consistent with such
methods customarily employed by such Bank in similar situations.
(b) Each Bank or, with respect to compensation claimed by it
pursuant to Section 5.03, the Agent, as the case may be, will (i) use best
efforts to notify Borrower through the Agent (in the case of each Bank) of any
event occurring after the date of this Agreement promptly after the occurrence
thereof and (ii) notify Borrower through the Agent (in the case of each Bank)
promptly after such Bank or the Agent, as the case may be, becomes aware of any
event occurring after the date of this Agreement, in either case if such event
(for purposes of this Section 5.07(b), a "Triggering Event") will entitle such
Bank or the Agent, as the case may be, to compensation pursuant to Section 4.05,
4.08, 5.01 or 5.03, as the case may be. Each such notification of a Triggering
Event shall be accompanied by a certificate of such Bank or the Agent, as the
case may be, setting forth in reasonable detail such amount or amounts as shall
be necessary to compensate such Bank or the Agent, as the case may be, as
specified in Section 4.05, 4.08, 5.01 or 5.03, as the case may be, which
certificate shall be conclusive absent manifest error. Borrower shall pay to the
Agent for the account of such Bank or to the Agent for its own account, as the
case may be, the amount shown as due on any such certificate within ten (10)
Business Days after its receipt of the same.
ARTICLE VI
CONDITIONS OF LENDING
Section 6.01. Conditions Precedent to Effectiveness and Initial Loans.
The effectiveness of this Agreement and the obligation of each Bank to make its
initial Loan to Borrower is subject to the condition precedent that the Agent
shall have received on or before the day of the initial Borrowing the documents
and instruments set forth in subsections (i) and (ii) below, in form and
substance satisfactory to the Agent and the Banks and in sufficient copies for
each Bank:
(i) This Agreement, duly executed by Borrower and each Bank.
(ii) A certificate dated as of the Effective Date of the
Assistant Secretary of Borrower certifying (A) the names and true
signatures of the officers of Borrower authorized to sign each Loan
Document to which Borrower is a party and the notices and other
documents to be delivered by Borrower pursuant to any such Loan
Document; (B) the Bylaws and Articles of Incorporation of Borrower as
in effect on the date of such certification; and (C) the resolutions of
the Board of Directors of Borrower approving and authorizing the
execution, delivery and performance by Borrower of this Agreement and
authorizing the borrowings and other transactions contemplated
thereunder.
Section 6.02. Conditions Precedent to Each Borrowing. The obligation of
each Bank to make a Loan to Borrower on the occasion of each Borrowing
(including the initial Borrowing) shall be subject to the further conditions
precedent that (a) on or prior to the date of such Borrowing, the Agent shall
have received from Borrower a Notice of Borrowing or a Competitive Bid
Confirmation, as the case may be, in
32
accordance with the terms of this Agreement and (b) on the date of such
Borrowing, the following statements shall be true and correct (and each of the
giving of any applicable Notice of Borrowing or Competitive Bid Confirmation, as
the case may be, and the acceptance by Borrower of the proceeds of each
Borrowing, shall constitute a representation and warranty by Borrower that on
the date of such Borrowing such statements are true and correct):
(i) The representations and warranties of Borrower contained
in Section 7.01 of this Agreement are true and correct in all material
respects on and as of the date of such Borrowing (except for those
representations or warranties or parts thereof that, by their terms,
expressly relate solely to a specific date, in which case such
representations and warranties shall be true and correct in all
material respects as of such specific date), before and after giving
effect to such Borrowing, and to the application of the proceeds
therefrom, as though made on and as of such date;
(ii) Borrower shall be in compliance with and shall have
performed all agreements and covenants made by it under this Agreement;
and
(iii) No Default or Event of Default shall have occurred and
be continuing or would result from such Borrowing.
ARTICLE VII
REPRESENTATIONS AND WARRANTIES
Section 7.01. Representations and Warranties of Borrower. Borrower
represents and warrants as follows:
(a) Corporate Status of Borrower. Borrower (i) is validly
organized and existing as a corporation (or, if converted to a limited liability
company in accordance with the definition of Restructuring, a limited liability
company) and in good standing under the laws of its jurisdiction of
organization; (ii) is duly authorized or qualified to do business in and is in
good standing in each other jurisdiction in which the conduct of its business or
the ownership or leasing of its Property requires it to be so authorized or
qualified to do business, except where the failure to be so duly authorized or
qualified or in good standing, individually or in the aggregate, would not have
a Material Adverse Effect on Borrower; and (iii) has the corporate or other
requisite power and authority to conduct its business, as presently conducted.
(b) Corporate Status of Subsidiaries of Borrower. Each
Subsidiary of Borrower (i) is validly organized and existing as a corporation,
partnership or limited liability company and in good standing under the laws of
the jurisdiction of its organization and is duly authorized or qualified to do
business in and is in good standing in each other jurisdiction in which the
conduct of its business or the ownership or leasing of its Property requires it
to be so authorized or qualified to do business, except where the failure to be
so validly organized and existing or duly authorized or qualified or in good
standing, individually or in the aggregate, would not have a Material Adverse
Effect on Borrower and (ii) has the corporate, partnership or other requisite
power and authority to conduct its business, as presently conducted, except
where the failure to have such corporate power and authority, individually or in
the aggregate, would not have a Material Adverse Effect on Borrower.
(c) Corporate Powers. Borrower has the corporate or other
requisite power to execute, deliver and perform and comply with its obligations
under this Agreement, any Notes and the
33
other Loan Documents to which it is a party. This Agreement has been, and each
other Loan Document to which Borrower is a party will be, duly executed and
delivered on behalf of Borrower.
(d) Authorization; No Conflict, Etc. The borrowings by
Borrower contemplated by this Agreement, the execution and delivery by Borrower
of this Agreement and the other Loan Documents to which it is a party and the
performance by Borrower of its obligations hereunder and thereunder have been
duly authorized by all requisite corporate or other requisite action on the part
of Borrower and do not and will not (i) violate any law, any order to which
Borrower or any Subsidiary of Borrower is subject of any court or other
Governmental Authority, or the articles of incorporation or bylaws or other
organizational documents (each as amended from time to time) of Borrower or any
Subsidiary of Borrower; (ii) violate, conflict with, result in a breach of or
constitute (with due notice or lapse of time or both, or any other condition) a
default under, any indenture, loan agreement or other agreement to which
Borrower or any Subsidiary of Borrower is a party or by which Borrower or any
Subsidiary of Borrower, or any of their respective Property, is bound (except
for such violations, conflicts, breaches or defaults that, individually or in
the aggregate, do not have or would not have a Material Adverse Effect on
Borrower); or (iii) result in, or require, the creation or imposition of any
material Lien upon any of the Properties of Borrower or any Significant
Subsidiary.
(e) Governmental Approvals and Consents. No authorization or
approval or action by, and no notice to or filing with, any Governmental
Authority is required for the due execution, delivery and performance by
Borrower of this Agreement and the other Loan Documents to which it is a party.
(f) Obligations Binding. This Agreement and the other Loan
Documents to which Borrower is a party are the legal, valid and binding
obligations of Borrower enforceable against Borrower in accordance with their
respective terms (assuming due and valid authorization, execution and delivery
of this Agreement by any party other than Borrower), except as such
enforceability may be (i) limited by the effect of any applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws relating to or
affecting the enforcement of creditors' rights generally and (ii) subject to the
effect of general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).
(g) Use of Proceeds; Margin Stock. This facility will be used
by Borrower for general corporate purposes, including support for commercial
paper issued by Borrower. Neither Borrower nor any Subsidiary of Borrower is
principally engaged in, or has as one of its important activities, the business
of extending credit for the purpose of purchasing or carrying any Margin Stock,
and no part of the proceeds of any Loan made to Borrower will be used for any
purpose that would violate the provisions of the margin regulations of the
Board.
(h) Title to Properties. Each of Borrower and any Subsidiary
of Borrower has good title to the Properties reflected in the financial
statements referred to in Section 7.01(m) and in any financial statements
delivered pursuant to Section 8.01(a), except for such Properties that have been
disposed of subsequent to the dates of the balance sheets included in such
financial statements and that are no longer used or useful in the conduct of the
business of Borrower or any Subsidiary of Borrower or that have been disposed of
in connection with the Unregco IPO Transaction or the Restructuring or pursuant
to Section 8.02(b) or (c) or that have been disposed of in the ordinary course
of their respective business, and all such Properties are free and clear of any
Lien except (i) in the case of the Property of Borrower, the Mortgage and Liens
permitted by the Mortgage; (ii) Liens that do not interfere with the use of such
Properties for the purposes for which they are held; (iii) minor Liens and
defects of title that are not material either individually or in the aggregate;
and (iv) Permitted Liens.
34
(i) Investment Company Act; PUHC Act of 1935. Neither Borrower
nor any Subsidiary of Borrower is (i) an "investment company" as defined in, or
otherwise subject to regulation under, the Investment Company Act of 1940, as
amended, or (ii) subject to regulation under the Public Utility Holding Company
Act of 1935, as amended, except Section 9(a)(2) thereof relating to the
acquisition of securities of other public utility companies or public utility
holding companies.
(j) Material Adverse Change. Since December 31, 2000, there
has been no change in the consolidated financial position, results of
operations, business or prospects of Borrower and any Consolidated Subsidiaries
of Borrower that would have a Material Adverse Effect on Borrower.
(k) Litigation. There is no litigation, action, suit or other
legal or governmental proceeding pending or, to the best knowledge of Borrower,
threatened, at law or in equity, or before or by any arbitrator or Governmental
Authority (i) relating to the transactions under this Agreement or (ii) in which
there is a reasonable possibility of an adverse decision that is likely to have
a Material Adverse Effect on Borrower.
(l) ERISA. Neither Borrower nor any Significant Subsidiary has
incurred any material liability or deficiency arising out of or in connection
with (i) any Reportable Event or "accumulated funding deficiency" (within the
meaning of Section 412 of the Code or Section 302 of ERISA) with respect to any
Plan that has occurred during the five-year period immediately preceding the
date on which this representation is made or deemed made, (ii) any failure of a
Plan to comply with the applicable provisions of ERISA and the Code, (iii) any
termination of a Single Employer Plan, (iv) any complete or partial withdrawal
by Borrower or any Commonly Controlled Entity from any Multiemployer Plan or (v)
any Lien in favor of the PBGC or any Plan that has arisen during the five-year
period referred to in clause (i) above. In addition, no Multiemployer Plan is in
Reorganization or is Insolvent, where such Reorganization or Insolvency,
individually or when aggregated with the events described in the first sentence
of this Section 7.01(l), is likely to result in a material liability or
deficiency of Borrower or any Significant Subsidiary. As used in this Section
7.01(1), any liability or deficiency shall be deemed not to be "material" so
long as the sum of all liabilities and deficiencies referred to in this Section
7.01(l) at any one time outstanding, individually and in the aggregate, is less
than $25,000,000.
(m) Financial Statements. The audited financial statements of
Borrower as of and for the year ended December 31, 2000 and the unaudited
financial statements of Borrower as of and for the three months ended March 31,
2001, copies of which have been delivered to the Banks, present fairly the
financial condition and results of operations of Borrower as of such dates and
for the periods then ended, in conformity with GAAP and, except as otherwise
stated therein, consistently applied.
(n) Accuracy of Information. None of the documents or written
information (excluding financial projections and forecasts) provided by Borrower
to the Banks in connection with or pursuant to this Agreement contains as of the
date thereof or will contain as of the date thereof any untrue statement of a
material fact or omits or will omit to state as of the date thereof a material
fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading. The financial projections and
forecasts furnished to the Banks by Borrower with respect to the transactions
contemplated under this Agreement were prepared in good faith and on the basis
of information and assumptions that Borrower believed to be reasonable as of the
date of such information.
(o) No Violation. Borrower is not in violation of any order,
writ, injunction or decree of any court or any order, regulation or demand of
any Governmental Authority that, individually or in the aggregate, reasonably
could be expected to have a Material Adverse Effect on Borrower.
35
ARTICLE VIII
AFFIRMATIVE AND NEGATIVE COVENANTS
Section 8.01. Affirmative Covenants of Borrower. Borrower covenants
that, so long as any Loan remains unpaid or any other amount is owing by
Borrower hereunder or under any other Loan Documents to which it is a party or
any Bank shall have any Commitment outstanding to Borrower under this Agreement,
Borrower will:
(a) Delivery of Financial Statements. Deliver to the Agent for
distribution to the Banks sufficient copies for each of the Banks of the
following:
(i) as soon as practicable and in any event within 120 days
after the end of each fiscal year of Borrower, a consolidated balance
sheet of Borrower and the Consolidated Subsidiaries of Borrower as of
the end of such fiscal year and the related statements of consolidated
income, retained earnings and cash flows prepared in conformity with
GAAP consistently applied, setting forth in comparative form the
figures for the previous fiscal year, together with a report thereon by
independent certified public accountants of nationally recognized
standing selected by Borrower (which requirement may be satisfied by
delivering Borrower's Annual Report on Form 10-K with respect to such
fiscal year as filed with the SEC);
(ii) as soon as practicable and in any event within 60 days
after the end of each of the first three quarters of each fiscal year
of Borrower, unaudited consolidated financial statements of Borrower
and the Consolidated Subsidiaries of Borrower consisting of at least a
consolidated balance sheet as at the close of such quarter and
statements of consolidated income, retained earnings and cash flows for
such quarter and for the period from the beginning of such fiscal year
to the close of such quarter (which requirement may be satisfied by
delivering Borrower's Quarterly Report on Form 10-Q with respect to
such fiscal quarter as filed with the SEC) and accompanied by a
certificate of a Responsible Officer of Borrower to the effect that
such unaudited financial statements present fairly the consolidated
financial condition and results of operations of Borrower and the
Consolidated Subsidiaries of Borrower as of such date for the period
then ending, and have been prepared in conformity with GAAP in a manner
consistent with the financial statements referred to in paragraph
(a)(i) above;
(iii) with each set of statements to be delivered above, a
certificate in a form satisfactory to the Agent, signed by a
Responsible Officer of Borrower confirming compliance with Section
8.02(a) and setting out in reasonable detail the calculations necessary
to demonstrate such compliance as at the date of the most recent
balance sheet included in such financial statements and stating that no
Default or Event of Default has occurred and is continuing or, if there
is any Default or Event of Default, describing it and the steps, if
any, being taken to cure it; and
(iv) (A) within 10 days of the filing thereof, copies of all
periodic reports (other than (x) reports on Form 11-K or any successor
form, (y) Current Reports on Form 8-K that contain no information other
than exhibits filed therewith and (z) reports on Form 10-Q or 10-K or
any successor forms) under the Exchange Act (in each case other than
exhibits thereto and documents incorporated by reference therein))
filed by Borrower with the SEC; (B) promptly, and in any event within
seven (7) days after a Responsible Officer of Borrower becomes aware of
the occurrence thereof, written notice of (x) any Event of Default or
any Default, (y) the institution of any litigation, action, suit or
other legal or governmental proceeding involving Borrower or any
Subsidiary of Borrower as to which there is a reasonable possibility of
an adverse decision
36
that is likely to have a Material Adverse Effect on Borrower or any
final adverse determination in any litigation, action, suit or other
legal or governmental proceeding involving Borrower or any Subsidiary
of Borrower that would have a Material Adverse Effect on Borrower, or
(z) the incurrence by Borrower or any Significant Subsidiary of a
material liability or deficiency, or the existence of a reasonable
possibility of incurring a material liability or deficiency, arising
out of or in connection with (1) any Reportable Event with respect to
any Plan, (2) the failure to make any required contribution to a Plan,
(3) the creation of any Lien in favor of the PBGC or a Plan, (4) any
withdrawal from, or the termination, Reorganization or Insolvency of,
any Multiemployer Plan or (5) the institution of proceedings or the
taking of any other action by the PBGC or Borrower or any Commonly
Controlled Entity or any Multiemployer Plan with respect to the
withdrawal from, or the termination, Reorganization or Insolvency of,
any Plan; provided, that, as used in this clause (z), any liability or
deficiency shall be deemed not to be "material" so long as the sum of
all liabilities and deficiencies referred to in this clause (z) at any
one time outstanding, individually and in the aggregate, is less than
$20,000,000; (C) with each set of statements delivered pursuant to
Section 8.01(a)(i), a certificate signed by a Responsible Officer of
Borrower identifying those Subsidiaries which, determined as of the
date of such financial statements, are Significant Subsidiaries; and
(D) such other information relating to Borrower or its business,
properties, condition and operations as the Agent (or any Bank through
the Agent) may reasonably request.
Information required to be delivered pursuant to the foregoing
Sections 8.01(a)(i), (ii), and (iv)(A) shall be deemed to have been
delivered on the date on which Borrower provides notice (including
notice by e-mail) to the Agent (which notice the Agent will convey
promptly to the Banks) that such information has been posted on the SEC
website on the Internet at ▇▇▇.▇▇▇/▇▇▇▇▇/▇▇▇▇▇▇▇▇.▇▇▇ or at another
website identified in such notice and accessible by the Banks without
charge; provided that (i) such notice may be included in a certificate
delivered pursuant to Section 8.01(a)(iii) and (ii) Borrower shall
deliver paper copies of such information to the Agent, and the Agent
shall deliver paper copies of such information to any Bank that
requests such delivery.
(b) Use of Proceeds. Use the proceeds of any Loan made by the
Banks to it for the purposes set forth in the first sentence of Section 7.01(g),
and it will not use the proceeds of any Loan made by the Banks for any purpose
that would violate the provisions of the margin regulations of the Board.
Borrower will not, and will not permit any of its Subsidiaries to engage
principally, or as one of its important activities, in the business of extending
credit for the purpose of purchasing or carrying, within the meaning of
Regulation U, any Margin Stock.
(c) Existence; Laws. And will cause each Subsidiary of
Borrower to, do or cause to be done all things necessary (i) to preserve, renew
and keep in full force and effect its legal existence and all rights, licenses,
permits and franchises and (ii) to comply with all laws and regulations
applicable to it, in each case where the failure to do so, individually or in
the aggregate, could reasonably be expected to have a Material Adverse Effect on
Borrower.
(d) Maintenance of Business Line. Remain primarily in the
business of providing services and products in the energy market.
(e) Access. And will cause each Significant Subsidiary to, at
any reasonable time and from time to time, permit up to six representatives of
the Banks designated by the Majority Banks, or representatives of the Agent, on
not less than five Business Days' notice, to examine and make copies of and
abstracts from the records and books of account of, and visit the properties of,
Borrower and each Significant Subsidiary and to discuss the general business
affairs of Borrower and each Significant
37
Subsidiary with their respective officers and independent certified public
accountants; subject, however, in all cases to the imposition of such conditions
as Borrower and each Significant Subsidiary shall deem necessary based on
reasonable considerations of safety and security. Notwithstanding the foregoing,
none of the conditions precedent to the exercise of the right of access
described in the preceding sentence that relate to notice requirements or
limitations on the Persons permitted to exercise such right shall apply at any
time when a Default or an Event of Default shall have occurred and be
continuing.
(f) Insurance. And will cause each Significant Subsidiary to,
maintain insurance with responsible and reputable insurance companies or
associations, or to the extent that Borrower or such Significant Subsidiary
deems it prudent to do so, through its own program of self-insurance, in such
amounts and covering such risks as is usually carried by companies engaged in
similar businesses, of comparable size and financial strength and with
comparable risks.
Section 8.02. Negative Covenants of Borrower. Borrower covenants that,
so long as any Loan remains unpaid or any other amount is owing to Borrower
hereunder or under any other Loan Document to which it is a party or any Bank
shall have any Commitment outstanding to Borrower under this Agreement, Borrower
will not:
(a) Financial Ratio. Permit the ratio of Consolidated
Indebtedness for Borrowed Money to Consolidated Capitalization to exceed
0.65:1.00.
(b) Sale of Significant Subsidiary Stock. And will not permit
any Significant Subsidiary to sell, assign, transfer or otherwise dispose of any
of the capital stock of any Significant Subsidiary other than to a Wholly-Owned
Subsidiary of Borrower that constitutes a Significant Subsidiary after giving
effect to such transaction; provided, that immediately before and after giving
effect to such sale, assignment, transfer or other disposition, no Event of
Default or Default shall have occurred and be continuing. Notwithstanding the
foregoing provisions of this Section 8.02(b), any Significant Subsidiary shall
have the right to issue, sell, assign, transfer or otherwise dispose of for
value its preference or preferred stock in one or more bona fide transactions to
third parties.
(c) Consolidation, Merger or Disposal of Assets. And will not
permit any Significant Subsidiary to, (i) consolidate with, or merge into or
amalgamate with or into, any other Person; (ii) liquidate, wind up or dissolve
itself (or suffer any liquidation or dissolution); or (iii) convey, sell,
transfer, lease or otherwise dispose of all or substantially all of its
Properties to any Person; provided, however, that nothing contained in this
Section 8.02(c) shall prohibit (A) a merger in which Borrower is the surviving
entity thereof; (B) mergers involving Significant Subsidiaries in which Borrower
or a Wholly-Owned Significant Subsidiary is the surviving entity; (C) the
liquidation, winding up or dissolution of a Significant Subsidiary if all of the
Properties of such Significant Subsidiary are conveyed, transferred or
distributed to Borrower or a Wholly-Owned Significant Subsidiary; or (D) the
conveyance, sale, transfer, lease or other disposal of all or substantially all
(or any lesser portion) of the Properties of any Significant Subsidiary to
Borrower or a Wholly-Owned Significant Subsidiary; provided, that, in each case,
immediately before and after giving effect to any such merger, dissolution or
liquidation, or conveyance, sale, transfer, lease or other disposition, no Event
of Default or Default shall have occurred and be continuing.
(d) Takeover Bid. Use the proceeds of any Loan made to it to
participate in any unsolicited control bid for any other Person.
Section 8.03. Consent to Unregco IPO Transaction. The parties hereto
hereby agree that notwithstanding any provisions of the Loan Documents
(including, without limitation, Sections 8.01(d), 8.02(b) and 8.02(c) of this
Agreement) that might otherwise prohibit the Unregco IPO Transaction, the
38
Unregco IPO Transaction shall be permitted consistent with the definition
thereof, and no Default or Event of Default shall be deemed to have occurred
under the Loan Documents solely as a result thereof.
Section 8.04. Consent to Restructuring. The parties hereto hereby agree
that notwithstanding any provisions of the Loan Documents (including, without
limitation, Sections 8.02(b) and 8.02(c) of this Agreement) that might otherwise
prohibit the Restructuring, the Restructuring (including without limitation the
distribution of the remaining 80% of the common stock of Unregco to shareholders
of Regco (as defined in Schedule 8.04)) shall be permitted consistent with the
definition thereof, and no Default or Event of Default shall be deemed to have
occurred under the Loan Documents solely as a result thereof. In addition,
notwithstanding the provisions of Section 8.02(a) and the default provisions
related thereto, if as a result of the Restructuring being partially completed
the Borrower is not in compliance with Section 8.02(a) at any time, such
non-compliance will not be a Default or Event of Default so long as Regco on a
pro forma consolidated basis would be in compliance with the financial covenant
set forth in Section 8.02(a) of either of the Regco Credit Facilities at such
time, if such covenant were then applicable, it being agreed that the foregoing
deemed compliance shall be available for 90 days following the first date on
which such test under Section 8.02(a) is not satisfied. Additionally, Unregco
and its Subsidiaries shall not be restricted by the representations, covenants
or events of default hereunder.
ARTICLE IX
EVENTS OF DEFAULT
Section 9.01. Events of Default. The occurrence of any of the following
events with respect to Borrower shall constitute an "Event of Default":
(a) Non-Payment of Principal, Interest and Facility Fee.
Borrower fails to pay, in the manner provided in this Agreement, (i) any
principal payable by it hereunder when due or (ii) any interest payment or the
Facility Fee payable by it hereunder within three (3) Business Days after its
due date; or
(b) Non-Payment of Other Amounts. Borrower fails to pay, in
the manner provided in this Agreement, any other amount (other than the amounts
set forth in Section 9.01(a) above) payable by it hereunder within ten Business
Days after notice of such payment is received by Borrower from the Agent; or
(c) Breach of Representation or Warranty. Any representation
or warranty by Borrower in Section 7.01 or in any certificate, document or
instrument delivered under this Agreement shall have been incorrect in any
material respect when made or when deemed hereunder to have been made; or
(d) Breach of Certain Covenants. Borrower fails to perform or
comply with any one or more of its obligations under Section 8.01(a)(iv)(B)(x),
8.02(b), 8.02(c) or 8.02(d); or
(e) Breach of Other Obligations. Borrower does not perform or
comply with any one or more of its other obligations under this Agreement (other
than those set forth in Section 9.01(a), (b) or (d) above) and such failure to
perform or comply shall not have been remedied within 30 days after the earlier
of notice thereof to it by the Agent or the Majority Banks or discovery thereof
by a Responsible Officer of Borrower; or
(f) Other Indebtedness. (i) Borrower fails to pay when due
(either at stated maturity or by acceleration or otherwise but subject to
applicable grace periods) any principal or interest in respect
39
of any Indebtedness for Borrowed Money or Secured Indebtedness of Borrower
(other than Indebtedness of Borrower under this Agreement) if the aggregate
principal amount of all such Indebtedness for which such failure to pay shall
have occurred and be continuing exceeds $25,000,000 or (ii) any Indebtedness for
Borrowed Money or Secured Indebtedness of the Borrower (other than Indebtedness
of the Borrower under this Agreement) is declared to be or otherwise becomes due
and payable prior to its specified maturity as a result of an event of default
(however described) if the aggregate amount of all such Indebtedness that
becomes due prior to its stated maturity exceeds $25,000,000; or
(g) Involuntary Bankruptcy, Etc. (i) There shall be commenced
against Borrower any case, proceeding or other action (A) seeking a decree or
order for relief in respect of Borrower under any applicable domestic or foreign
bankruptcy, insolvency, reorganization or other similar law, (B) seeking a
decree or order adjudging Borrower a bankrupt or insolvent, (C) seeking
reorganization, arrangement, adjustment, winding-up, liquidation, dissolution,
composition or similar relief of or in respect of Borrower or its debts under
any applicable domestic or foreign law or (D) seeking the appointment of a
custodian, receiver, conservator, liquidator, assignee, trustee, sequestrator or
other similar official of Borrower or of any substantial part of its Properties,
or the liquidation of its affairs, and such petition is not dismissed within 60
days or (ii) a decree, order or other judgment is entered in respect of any
remedies, reliefs or other matters for which any petition referred to in (i)
above is presented or (iii) there shall be commenced against Borrower any case,
proceeding or other action seeking issuance of a warrant of attachment,
execution, distraint or similar process against all or any substantial part of
its assets that results in the entry of an order for any such relief that shall
not have been vacated, discharged or stayed or bonded pending appeal within 60
days from the entry thereof; or
(h) Voluntary Bankruptcy, Etc. (i) The commencement by
Borrower of a voluntary case, proceeding or other action under any applicable
domestic or foreign bankruptcy, insolvency, reorganization or other similar law
(A) seeking to have an order of relief entered with respect to it, (B) seeking
to be adjudicated a bankrupt or insolvent, (C) seeking reorganization,
arrangement, adjustment, winding-up, liquidation, dissolution, composition or
other similar relief with respect to it or its debts under any applicable
domestic or foreign law or (D) seeking the appointment of or the taking
possession by a custodian, receiver, conservator, liquidator, assignee, trustee,
sequestrator or similar official of Borrower or of any substantial part of its
Properties; or (ii) the making by Borrower of a general assignment for the
benefit of creditors; or (iii) Borrower shall take any action in furtherance of,
or indicating its consent to, approval of, or acquiescence in, any of the acts
described in clause (i) or (ii) above or in Section 9.01(g); or (iv) the
admission by Borrower in writing of its inability to pay its debts generally as
they become due or the failure by Borrower generally to pay its debts as such
debts become due; or
(i) Enforcement Proceedings. A final judgment or decree for
the payment of money which, together with all other such judgments or decrees
against Borrower then outstanding and unsatisfied, exceeds $25,000,000 in
aggregate amount shall be rendered against Borrower and the same shall remain
undischarged for a period of 60 days, during which the execution thereon shall
not effectively be stayed, released, bonded or vacated; or
(j) ERISA Events. (i) Borrower or any Significant Subsidiary
shall incur any liability arising out of (A) any "prohibited transaction" (as
defined in Section 406 of ERISA or Section 4975 of the Code) involving any Plan,
(B) the occurrence of any "accumulated funding deficiency" (as defined in
Section 302 of ERISA) by a Plan, whether or not waived, or any Lien in favor of
the PBGC or a Plan on the assets of Borrower or any Commonly Controlled Entity,
(C) the occurrence of a Reportable Event with respect to, or the commencement of
proceedings under Section 4042 of ERISA to have a trustee appointed, or the
appointment of a trustee under Section 4042 of ERISA, to administer or to
terminate any Single Employer Plan, which Reportable Event, commencement of
proceedings or
40
appointment of a trustee is likely to result in the termination of such Plan for
purposes of Title IV of ERISA, (D) the termination of any Single Employer Plan
for purposes of Title IV of ERISA, (E) withdrawal from, or the Insolvency or
Reorganization of, a Multiemployer Plan or (F) the occurrence of any other event
or condition with respect to a Plan, and any of such items (A) through (F) above
results in or is likely to result in a material liability or deficiency of
Borrower or any Significant Subsidiary; provided, however, that for purposes of
this Section 9.01(j), any liability or deficiency of Borrower or any Significant
Subsidiary shall be deemed not to be material so long as the sum of all
liabilities or deficiencies referred to in this Section 9.01(j) at any one time
outstanding, individually and in the aggregate, is less than $20,000,000, or
(ii) the occurrence of any one or more of the events specified in clauses (A)
through (F) above if, individually or in the aggregate, such event or events
would have a Material Adverse Effect on Borrower.
Section 9.02. Cancellation/Acceleration. If at any time and for any
reason (whether within or beyond the control of any party to this Agreement):
(a) either of the Events of Default specified in Section
9.01(g) or 9.01(h) occurs with respect to Borrower, then automatically:
(i) the Commitments and the CAF Facility shall immediately be
cancelled; and
(ii) all Loans made to Borrower, all unpaid accrued interest
or fees and any other sum payable by Borrower under this Agreement
shall become immediately due and payable; or
(b) any other Event of Default specified in Section 9.01
occurs and, while such Event of Default is continuing, the Agent, having been so
instructed by the Majority Banks, by notice to Borrower shall so declare that:
(i) the Commitments and the CAF Facility shall immediately be
cancelled; and/or
(ii) all Loans made to Borrower, all unpaid accrued interest
or fees and any other sum payable by Borrower under this Agreement
shall become immediately due and payable; or
(iii) all Loans made to Borrower, all unpaid accrued interest
or fees and any other sum payable by Borrower under this Agreement
shall become due and payable at any time thereafter immediately on
demand by the Agent (acting on the instructions of the Majority Banks).
Except as expressly provided above in this Section 9.02, presentment, demand,
protest, notice of intent to accelerate, notice of acceleration and all other
notices of any kind whatsoever are hereby expressly waived by Borrower.
ARTICLE X
THE AGENT
Section 10.01. Appointment. Each Bank hereby irrevocably designates and
appoints The Chase Manhattan Bank as the Agent of such Bank under this Agreement
and the other Loan Documents, and each such Bank irrevocably authorizes The
Chase Manhattan Bank, as the Agent for such Bank, to take such action on its
behalf under the provisions of this Agreement and the other Loan Documents and
to exercise such powers and perform such duties as are expressly delegated to
the Agent by the terms of this Agreement and the other Loan Documents, together
with such other powers as are reasonably incidental
41
thereto. Notwithstanding any provision to the contrary elsewhere in this
Agreement, the Agent shall not have any duties or responsibilities, except those
expressly set forth herein, or any fiduciary relationship with any Bank, and no
implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or any other Loan Document or
otherwise exist against the Agent.
Section 10.02. Delegation of Duties. The Agent may execute any of its
duties under this Agreement and the other Loan Documents by or through agents or
attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties. The Agent shall not be responsible for the
negligence or misconduct of any agents or attorneys-in-fact selected by it with
reasonable care.
Section 10.03. Exculpatory Provisions. Neither the Agent nor any of its
officers, directors, employees, agents, attorneys-in-fact or Affiliates shall be
(a) liable for any action lawfully taken or omitted to be taken by it or such
Person under or in connection with this Agreement or any other Loan Document
(except for its or such Person's own gross negligence or willful misconduct) or
(b) responsible in any manner to any of the Banks for any recitals, statements,
representations or warranties made by Borrower or any officer thereof contained
in this Agreement or any other Loan Document or in any certificate, report,
statement or other document referred to or provided for in, or received by the
Agent under or in connection with, this Agreement or any other Loan Document or
for the value, validity, effectiveness, genuineness, enforceability or
sufficiency of this Agreement or any other Loan Document or for any failure of
Borrower to perform its obligations hereunder or thereunder. The Agent shall not
be under any obligation to any Bank to ascertain or to inquire as to the
observance or performance of any of the agreements contained in, or conditions
of, this Agreement or any other Loan Document, or to inspect the properties,
books or records of Borrower.
Section 10.04. Reliance by Agent. The Agent shall be entitled to rely,
and shall be fully protected in relying, upon any Note, writing, resolution,
notice, consent, certificate, affidavit, letter, telecopy, telex or teletype
message, statement, order or other document or conversation believed by it to be
genuine and correct and to have been signed, sent or made by the proper Person
or Persons and upon advice and statements of legal counsel (including, without
limitation, counsel to Borrower), independent accountants and other experts
selected by the Agent. The Agent may deem and treat the payee of any Note or any
loan account in the Register as the owner thereof for all purposes unless a
written notice of assignment, negotiation or transfer thereof shall have been
filed with the Agent. The Agent shall be fully justified in failing or refusing
to take any action under this Agreement or any other Loan Document unless it
shall first receive such advice or concurrence of the Majority Banks as it deems
appropriate or it shall first be indemnified to its satisfaction by the Banks
against any and all liability and expense that may be incurred by it by reason
of taking or continuing to take any such action. The Agent shall in all cases be
fully protected in acting, or in refraining from acting, under this Agreement
and the other Loan Documents in accordance with a request of the Majority Banks,
and such request and any action taken or failure to act pursuant thereto shall
be binding upon all the Banks and all future holders of the amounts owing
hereunder.
Section 10.05. Notice of Default. The Agent shall not be deemed to have
knowledge or notice of the occurrence of any Default or Event of Default
hereunder unless the Agent has received notice from a Bank or Borrower referring
to this Agreement, describing such Default or Event of Default and stating that
such notice is a "notice of default". In the event that the Agent receives such
a notice, the Agent shall give notice thereof to the Banks. The Agent shall take
such action with respect to such Default or Event of Default as shall be
reasonably directed by the Majority Banks; provided that unless and until the
Agent shall have received such directions, the Agent may (but shall not be
obligated to) take such action, or refrain from taking such action, with respect
to such Default or Event of Default as it shall deem advisable in the best
interests of the Banks.
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Section 10.06. Non-Reliance on Agent and Other Banks. Each Bank
expressly acknowledges that neither the Agent nor any of its officers,
directors, employees, agents, attorneys-in-fact or Affiliates has made any
representations or warranties to it and that no act by the Agent hereinafter
taken, including any review of the affairs of Borrower, shall be deemed to
constitute any representation or warranty by the Agent to any Bank. Each Bank
represents to the Agent that it has, independently and without reliance upon the
Agent or any other Bank, and based on such documents and information as it has
deemed appropriate, made its own appraisal of and investigation into the
business, operations, property, financial and other condition and
creditworthiness of Borrower and made its own decision to make its Loans
hereunder and enter into this Agreement. Each Bank also represents that it will,
independently and without reliance upon the Agent or any other Bank, and based
on such documents and information as it shall deem appropriate at the time,
continue to make its own credit analysis, appraisals and decisions in taking or
not taking action under this Agreement and the other Loan Documents, and to make
such investigation as it deems necessary to inform itself as to the business,
operations, property, financial and other condition and creditworthiness of
Borrower. Except for notices, reports and other documents expressly required to
be furnished to the Banks by the Agent hereunder, the Agent shall not have any
duty or responsibility to provide any Bank with any credit or other information
concerning the business, operations, property, condition (financial or
otherwise), prospects or creditworthiness of Borrower that may come into the
possession of the Agent or any of its officers, directors, employees, agents,
attorneys-in-fact or Affiliates.
Section 10.07. Indemnification. The Banks agree to indemnify the Agent
in its capacity as such (to the extent not reimbursed by Borrower and without
limiting the obligation of Borrower to do so), ratably according to their
respective applicable Pro Rata Percentages in effect on the date on which
indemnification is sought under this Section 10.07, from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind whatsoever which may at any time
(including, without limitation, at any time following the payment of the Loans)
be imposed on, incurred by or asserted against the Agent in any way relating to
or arising out of this Agreement, any of the other Loan Documents or any
documents contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby or any action taken or omitted by the Agent under
or in connection with any of the foregoing; provided that no Bank shall be
liable for the payment of any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting solely from the Agent's gross negligence or willful misconduct. The
agreements in this Section 10.07 shall survive the payment of the Loans and all
other amounts payable hereunder.
Section 10.08. Agent in Its Individual Capacity. The Agent and its
Affiliates may make loans to, accept deposits from and generally engage in any
kind of business with Borrower as though the Agent were not the Agent hereunder
and under the other Loan Documents. With respect to its Loans made or renewed by
it and any Note issued to it, the Agent shall have the same rights and powers
under this Agreement and the other Loan Documents as any Bank and may exercise
the same as though it were not the Agent, and the terms "Bank" and "Banks" shall
include the Agent in its individual capacity.
Section 10.09. Successor Agent. The Agent may resign as Agent upon 30
days' notice to the Banks and Borrower, and may be removed as Agent at any time
for cause by the Majority Banks. If the Agent shall resign or be removed as
Agent under this Agreement and the other Loan Documents, then the Majority Banks
shall appoint from among the Banks a successor agent for the Banks, which
successor agent shall be approved by Borrower, whereupon such successor agent
shall succeed to the rights, powers and duties of the Agent, and the term
"Agent" shall mean such successor agent effective upon such appointment and
approval, and the former Agent's rights, powers and duties as Agent shall be
terminated, without any other or further act or deed on the part of such former
Agent or any of the parties to this Agreement or any holders of any amounts
payable hereunder. If a successor Agent shall not have been so
43
appointed within said 30-day period, the Agent may then appoint a successor
Agent who shall be a financial institution that has total assets in excess of
$500,000,000 and who shall serve as Agent until such time, if any, as an Agent
shall have been appointed as provided above. After any retiring Agent's
resignation or removal as Agent, the provisions of this Article X shall inure to
its benefit as to any actions taken or omitted to be taken by it while it was
Agent under this Agreement and the other Loan Documents.
ARTICLE XI
MISCELLANEOUS
Section 11.01. Amendments and Waivers. Neither this Agreement, any
Note, any other Loan Document, nor any terms hereof or thereof may be amended,
supplemented or modified except pursuant to an instrument or instruments in
writing executed in accordance with the provisions of this Section 11.01. The
Majority Banks may, or, with the written consent of the Majority Banks, the
Agent may, from time to time, (a) enter into with Borrower written amendments,
supplements or modifications hereto and to any Notes and the other Loan
Documents for the purpose of adding any provisions to this Agreement or any
Notes or the other Loan Documents or changing in any manner the rights of the
Banks or of Borrower hereunder or thereunder or (b) waive, on such terms and
conditions as the Majority Banks or the Agent, as the case may be, may specify
in such instrument, any of the requirements of this Agreement or any Notes or
the other Loan Documents or any Default or Event of Default and its
consequences; provided, however, that no such waiver and no such amendment,
supplement or modification shall (i) reduce the amount or extend the scheduled
date of maturity of any Note or Loan, or reduce the stated rate of any interest
or fee payable hereunder or extend the scheduled date of any payment thereof or
increase the amount or extend the expiration date of any Bank's Commitments, in
each case without the consent of each Bank affected thereby, (ii) amend, modify
or waive any provision of this Section or reduce the percentage specified in the
definition of Majority Banks, or consent to the assignment or transfer by
Borrower of any of its respective rights and obligations under this Agreement
and the other Loan Documents, in each case without the written consent of all
the Banks, or (iii) amend, modify or waive any provision of Article X without
the written consent of the then Agent. Any such waiver and any such amendment,
supplement or modification shall apply equally to each of the Banks and shall be
binding upon Borrower, the Banks, the Agent and all future holders of the
amounts payable hereunder. In the case of any waiver, Borrower, the Banks and
the Agent shall be restored to their former position and rights hereunder and
under any outstanding Notes and any Loan Documents, and any Default or Event of
Default waived shall be deemed to be cured and not continuing, but no such
waiver shall extend to any subsequent or other Default or Event of Default, or
impair any right consequent thereon.
Section 11.02. Notices. Unless otherwise expressly provided herein, all
notices, requests and demands to or upon the respective parties hereto to be
effective shall be in writing (including by telecopy), and, shall be deemed to
have been duly given or made when delivered by hand, or three days after being
deposited in the mail, postage prepaid, or, in the case of telecopy notice, when
received, addressed as follows in the case of Borrower and the Agent, and as set
forth in Schedule I in the case of the other parties hereto, or to such other
address as may be hereafter notified by the respective parties hereto and any
future holders of the amounts payable hereunder:
Borrower: ▇▇▇▇ ▇▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇ ▇▇▇▇▇▇
Assistant Treasurer
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
44
With a copy to: ▇▇▇▇ ▇▇▇▇▇▇▇▇
Treasurer
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
The Agent: Chase Loan and Agency Services Group
One Chase ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇ ▇▇▇▇▇▇
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
With a copy to: ▇▇ ▇▇▇▇▇▇ Chase
▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
provided that any notice, request or demand to or upon the Agent or the Banks
pursuant to Sections 2.02, 3.02, 4.03, 4.07, 4.10, 5.02 and 5.05 shall not be
effective until received.
Section 11.03. No Waiver; Cumulative Remedies. No failure to exercise
and no delay in exercising, on the part of the Agent or any Bank, any right,
remedy, power or privilege hereunder shall operate as a waiver thereof; nor
shall any single or partial exercise of any right, remedy, power or privilege
hereunder preclude any other or further exercise thereof or the exercise of any
other right, remedy, power or privilege. The rights, remedies, powers and
privileges herein provided are cumulative and not exclusive of any rights,
remedies, powers and privileges provided by law.
Section 11.04. Survival of Representations and Warranties. All
representations and warranties made hereunder and in any document, certificate
or statement delivered pursuant hereto or in connection herewith shall survive
the execution and delivery of this Agreement.
Section 11.05. Payment of Expenses and Taxes. Borrower agrees (a) to
pay or reimburse the Agent for all its reasonable out-of-pocket costs and
expenses incurred in connection with the development, preparation, negotiation
and execution of, and any amendment, supplement or modification to, this
Agreement and the other Loan Documents and any other documents prepared in
connection herewith or therewith, and the consummation and administration of the
transactions contemplated hereby and thereby, including, without limitation, the
reasonable fees and disbursements of Simpson, Thacher & ▇▇▇▇▇▇▇▇, special
counsel to the Agent (but excluding the fees or expenses of any other counsel),
(b) to pay or reimburse each Bank and the Agent for all its costs and expenses
incurred in connection with the enforcement or preservation of any rights under
this Agreement, any Notes, the other Loan Documents and any such other
documents, including, without limitation, the reasonable fees and disbursements
of special counsel to the Agent and (c) without duplication of any other
provision contained in this Agreement or any Notes, to pay, indemnify, and hold
each Bank and the Agent harmless from, any and all recording and filing fees, if
any, and any and all liabilities (for which each Bank has not been otherwise
reimbursed under this Agreement) with respect to, or resulting from any delay in
paying, stamp, excise and other taxes, if any, that may be payable or determined
to be payable in connection with the execution and delivery of, or consummation
or administration of any of the transactions contemplated by, or any amendment,
supplement or modification of, or any waiver or consent under or in respect of,
this Agreement, any Notes, the other Loan Documents and any such other
documents, and (d) without duplication of any other provision contained in this
Agreement or any Notes, to pay, indemnify, and hold each Bank and the Agent
harmless from and against, any and all other liabilities, obligations, losses,
45
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever with respect to the execution, delivery,
enforcement, performance and administration of this Agreement, any Notes, the
other Loan Documents and any such other documents (all the foregoing in this
clause (d), collectively, the "indemnified liabilities"); provided, that
Borrower shall have no obligation hereunder to the Agent or any Bank with
respect to indemnified liabilities arising from the gross negligence or willful
misconduct of the Agent or any such Bank; AND PROVIDED FURTHER, THAT IT IS THE
INTENTION OF BORROWER TO INDEMNIFY THE AGENT AND THE BANKS AGAINST THE
CONSEQUENCES OF THEIR OWN NEGLIGENCE. The agreements in this Section 11.05 shall
survive repayment of the Loans and all other amounts payable hereunder.
Section 11.06. Effectiveness; Successors and Assigns; Participations;
Assignments. i) This Agreement shall become effective on July 13, 2001 (the
"Effective Date") and thereafter shall be binding upon and inure to the benefit
of Borrower, the Banks, the Agent, all future holders of the Loans and their
respective successors and assigns, except that Borrower may not assign or
transfer any of its rights or obligations under this Agreement without the prior
written consent of each Bank.
(b) Any Bank may, in the ordinary course of its commercial
banking business and in accordance with applicable law, at any time sell to one
or more banks or other financial institutions (a "Participant") participating
interests in any Loan owing to such Bank, any Note held by such Bank, any
Commitment of such Bank or any other interest of such Bank hereunder and under
the other Loan Documents. In the event of any such sale by a Bank of a
participating interest to a Participant, such Bank's obligations under this
Agreement to the other parties to this Agreement shall remain unchanged, such
Bank shall remain solely responsible for the performance thereof, such Bank
shall remain the holder of any such Loan for all purposes under this Agreement
and the other Loan Documents, Borrower and the Agent shall continue to deal
solely and directly with such Bank in connection with such Bank's rights and
obligations under this Agreement and the other Loan Documents and except with
respect to the matters set forth in Section 11.01, the amendment of which
requires the consent of all of the Banks, the participation agreement between
the selling Bank and the Participant may not restrict such Bank's voting rights
hereunder. Borrower agrees that each Participant, to the extent provided in its
participation, shall be entitled to the benefits of Sections 4.05, 4.08, 5.01
and 5.03 with respect to its participation in the Commitments and the Loans
outstanding from time to time; provided, that no Participant shall be entitled
to receive any greater amount pursuant to such Sections than the selling Bank
would have been entitled to receive in respect of the amount of the
participation sold by such selling Bank to such Participant had no such sale
occurred. Except as expressly provided in this Section 11.06(b), no Participant
shall be a third-party beneficiary of or have any rights under this Agreement or
under any of the other Loan Documents.
(c) Any Bank may, in the ordinary course of its commercial
banking business and in accordance with applicable law, at any time sell to any
Affiliate of such Bank that is a bank (a "Bank Affiliate") and, with the consent
of Borrower and the Agent (which in each case shall not be unreasonably withheld
and, in the case of Borrower, shall not be required if an Event of Default
exists), to one or more additional banks ("Purchasing Banks") all or any part of
its rights and obligations under this Agreement pursuant to a Committed Loan
Assignment and Acceptance ("Committed Loan Assignment and Acceptance"),
substantially in the form of Exhibit 11.06(c) executed by such Purchasing Bank
and such transferor Bank (and, in the case of a Purchasing Bank that is not a
Bank Affiliate, by Borrower and the Agent) and delivered to the Agent for its
acceptance and recording in the Register; provided, that each such sale shall be
of a uniform, and not a varying, percentage of all rights and obligations under
and in respect of the Commitment of such Bank. Upon such execution, delivery,
acceptance and recording, from and after the effective date determined pursuant
to such Committed Loan Assignment and Acceptance (the "Transfer Effective
Date"), (i) the Purchasing Bank thereunder shall be a party hereto and, to the
extent provided in such Committed Loan Assignment and Acceptance, have the
rights and obligations of a Bank hereunder with the Commitments as set forth
therein and (ii) the transferor Bank thereunder shall,
46
to the extent provided in such Committed Loan Assignment and Acceptance, be
released from its obligations under this Agreement (and, in the case of a
Committed Loan Assignment and Acceptance covering all or the remaining portion
of a transferor Bank's rights and obligations under this Agreement, such
transferor Bank shall cease to be a party hereto). Such Committed Loan
Assignment and Acceptance shall be deemed to amend this Agreement to the extent,
and only to the extent, necessary to reflect the addition of such Purchasing
Bank and the resulting adjustment of Pro Rata Percentages arising from the
purchase by such Purchasing Bank of all or a portion of the rights and
obligations of such transferor Bank under this Agreement and the Loans. On or
prior to the Transfer Effective Date determined pursuant to such Committed Loan
Assignment and Acceptance, (i) appropriate entries shall be made in the accounts
of the transferor Bank and the Register evidencing such assignment and releasing
Borrower from any and all obligations to the transferor Bank in respect of the
assigned Loan or Loans and (ii) appropriate entries evidencing the assigned Loan
or Loans shall be made in the accounts of the Purchasing Bank and Register as
required by Section 4.01 hereof. In the event that any Notes have been issued in
respect of the assigned Loan or Loans, such Notes shall be marked "cancelled"
and surrendered by the transferor Bank to the Agent for return to the applicable
Borrower.
(d) Any Bank may, in the ordinary course of its commercial
banking business and in accordance with applicable law, at any time assign to
one or more banks or other financial institutions (a "CAF Loan Assignee") any
CAF Loan owing to such Bank, pursuant to a CAF Loan Assignment and Acceptance
executed by the assignor Bank and the CAF Loan Assignee. Upon such execution,
from and after the date of such CAF Loan Assignment and Acceptance, the CAF Loan
Assignee shall, to the extent of the assignment provided for in such CAF Loan
Assignment and Acceptance, be deemed to have the same rights and benefits of
payment and enforcement with respect to such CAF Loan and the same obligation to
share and rights of setoff pursuant to Sections 5.04 and 11.07 as it would have
had if it were a Bank hereunder; provided that unless such CAF Loan Assignment
and Acceptance shall otherwise specify and a copy of such CAF Loan Assignment
and Acceptance shall have been delivered to the Agent for its acceptance and
recording in the Register in accordance with Section 11.06(e), the assignor
thereunder shall act as collection agent for the CAF Loan Assignee thereunder,
and the Agent shall pay all amounts received from Borrower that are allocable to
the assigned CAF Loan directly to such assignor without any further liability to
such CAF Loan Assignee. A CAF Loan Assignee under a CAF Loan Assignment and
Acceptance shall not, by virtue of such CAF Loan Assignment and Acceptance,
become a party to this Agreement or have any rights to consent to or refrain
from consenting to any amendment, supplement, waiver or other modification of
any provision of this Agreement or any related document; provided that (i) the
assignor under such CAF Loan Assignment and Acceptance and such CAF Loan
Assignee may, in their discretion, agree between themselves upon the manner in
which such assignor will exercise its rights under this Agreement and any
related document and (ii) if a copy of such CAF Loan Assignment and Acceptance
shall have been delivered to the Agent for its acceptance and recording in the
Register in accordance with Section 11.06(e), neither the principal amount of,
the interest rate on, nor the maturity date of any CAF Loan assigned to the CAF
Loan Assignee thereunder will be reduced or postponed, as the case may be,
without the written consent of such CAF Loan Assignee. If a CAF Loan Assignee
has caused a CAF Loan Assignment and Acceptance to be recorded in the Register
in accordance with Section 11.06(e), such CAF Loan Assignee may thereafter, in
the ordinary course of its business and in accordance with applicable law,
assign such Individual CAF Loan to any Bank, to any Affiliate or Subsidiary of
such CAF Loan Assignee or to any other financial institution that has total
assets in excess of $1,000,000,000 and that in the ordinary course of its
business extends credit of the type evidenced by such Individual CAF Loan, and
the foregoing provisions of this Section 11.06(d) shall apply, mutatis mutandis,
to any such assignment by a CAF Loan Assignee. Except in accordance with the
preceding sentence, CAF Loans may not be further assigned by a CAF Loan
Assignee, subject to any legal or regulatory requirement that the CAF Loan
Assignee's assets must remain under its control.
47
(e) The Agent shall maintain at its address referred to in
Section 11.02 a copy of each CAF Loan Assignment and Acceptance and each
Committed Loan Assignment and Acceptance delivered to it and a register (the
"Register") for the recordation of (i) the names and addresses of the Banks and
the Commitments of, and principal amount of the Loans owing to, each Bank from
time to time and (ii) with respect to each CAF Loan Assignment and Acceptance
delivered to the Agent, the name and address of the CAF Loan Assignee and the
principal amount of each CAF Loan owing to such CAF Loan Assignee. To the extent
permitted by applicable law, the entries in the Register shall be conclusive, in
the absence of manifest error, and Borrower, the Agent and the Banks may (and,
in the case of any Loan or other obligation hereunder not evidenced by a Note,
shall) treat, each Person whose name is recorded in the Register as the owner of
a Loan or other obligation hereunder as the owner thereof for all purposes of
this Agreement and the other Loan Documents, notwithstanding any notice to the
contrary. Any assignment of any Loan or other obligation hereunder not evidenced
by a Note shall be effective only upon appropriate entries with respect thereto
being made in the Register. The Register shall be available for inspection by
Borrower or any Bank or any CAF Loan Assignee at any reasonable time and from
time to time upon reasonable prior notice.
(f) Upon its receipt of a Committed Loan Assignment and
Acceptance executed by a transferor Bank and Purchasing Bank (and, in the case
of a Purchasing Bank that is not then a Bank Affiliate, by Borrower and the
Agent) together with payment to the Agent of a registration and processing fee
of (i) $3000 with respect to any Purchasing Bank that is not already a Bank or a
Bank Affiliate and (ii) $1000 with respect to any Purchasing Bank that is
already a Bank or a Bank Affiliate (which fee shall not be for the account of
Borrower), the Agent shall promptly accept such Committed Loan Assignment and
Acceptance on the Transfer Effective Date determined pursuant thereto, record
the information contained therein in the Register and give notice of such
acceptance and recordation to the Banks and Borrower. Upon its receipt of a CAF
Loan Assignment and Acceptance executed by an assignor Bank and a CAF Loan
Assignee, together with payment to the Agent of a registration and processing
fee of $500 (which fee shall not be for the account of Borrower), the Agent
shall promptly accept such CAF Loan Assignment and Acceptance, record the
information contained therein in the Register and give notice of such acceptance
and recordation to the assignor Bank, the CAF Loan Assignee and Borrower.
(g) Each Bank agrees to exercise its best efforts to keep, and
to cause any third party recipient of the information described in this Section
11.06(g) to keep, any information delivered or made available by Borrower to it
(including any information obtained pursuant to Section 8.01) that is clearly
indicated to be confidential information, confidential from anyone other than
Persons employed or retained by such Bank who are or are expected to become
engaged in evaluating, approving, structuring or administering the transactions
contemplated hereunder; provided that nothing herein shall prevent any Bank from
disclosing such information (i) to any other Bank or any Affiliate of any Bank,
(ii) pursuant to subpoena or upon the order of any court or administrative
agency, (iii) upon the request or demand of any Governmental Authority having
jurisdiction over such Bank, (iv) if such information has been publicly
disclosed, (v) to the extent reasonably required in connection with any
litigation to which either the Agent, any Bank, Borrower or their respective
Affiliates may be a party, (vi) to the extent reasonably required in connection
with the exercise of any remedy hereunder, (vii) to such Bank's legal counsel,
independent auditors and other professional advisors and (viii) to any actual or
proposed Participant, Purchasing Bank or CAF Loan Assignee (each, a
"Transferee") that has agreed in writing to be bound by the provisions of this
Section 11.06(g). Unless prohibited from doing so by applicable law, each Bank
will use its best efforts to notify Borrower of any information that it is
required or requested to deliver pursuant to clause (ii) of this Section
11.06(g) and, if Borrower is not a party to any such litigation, clause (v) of
this Section 11.06(g), prior to such Bank's delivery of such information.
(h) If, pursuant to this Section, any interest in this
Agreement or any Loan is transferred to any Transferee that is organized under
the laws of any jurisdiction other than the United
48
States or any state thereof, the transferor Bank shall cause such Transferee,
concurrently with the effectiveness of such transfer, (i) to represent to the
transferor Bank (for the benefit of the transferor Bank, the Agent and Borrower)
that under applicable law and treaties no taxes will be required to be withheld
by the Agent, Borrower or the transferor Bank with respect to any payments to be
made to such Transferee in respect of the Loans, (ii) to furnish to the
transferor Bank (and, in the case of any Purchasing Bank or CAF Loan Assignee
registered in the Register, the Agent and Borrower) either U.S. Internal Revenue
Service Form W-8BEN or U.S. Internal Revenue Service Form W-8EC1 (wherein such
Transferee claims entitlement to complete exemption from U.S. federal
withholding tax on all interest payments hereunder) and (iii) to agree (for the
benefit of the transferor Bank, the Agent and Borrower) to provide the
transferor Bank (and, in the case of any Purchasing Bank or CAF Loan Assignee
registered in the Register, the Agent and Borrower) a new Form W-8BEN or Form
W-8EC1 upon the expiration or obsolescence of any previously delivered form and
comparable statements in accordance with applicable U.S. laws and regulations
and amendments duly executed and completed by such Transferee, and to comply
from time to time with all applicable U.S. laws and regulations with regard to
such withholding tax exemption.
(i) Nothing herein shall prohibit any Bank from pledging or
assigning all or any portion of its Loans to any Federal Reserve Bank in
accordance with applicable law. In order to facilitate such pledge or
assignment, Borrower hereby agrees that, upon request of any Bank at any time
and from time to time after Borrower has made its initial Borrowing hereunder,
Borrower shall provide to such Bank, at Borrower's own expense, a promissory
note, substantially in the form of Exhibit 11.06(i)(a) or 11.06(i)(b) as the
case may be, evidencing the Committed Loans or CAF Loans, as the case may be,
owing to such Bank.
Section 11.07. Setoff. In addition to any rights and remedies of the
Banks provided by law, each Bank shall have the right, without prior notice to
Borrower, any such notice being expressly waived by Borrower to the extent
permitted by applicable law, upon any amount becoming due and payable by
Borrower hereunder or under the Loans to which it is a party (whether at the
stated maturity, by acceleration or otherwise) to setoff and appropriate and
apply against such amount any and all deposits (general or special, time or
demand, provisional or final), in any currency, and any other credits,
indebtedness or claims, in any currency, in each case whether direct or
indirect, absolute or contingent, matured or unmatured, at any time held or
owing by such Bank or any branch or agency thereof to or for the credit or the
account of Borrower. Each Bank agrees promptly to notify Borrower and the Agent
after any such setoff and application made by such Bank, provided that the
failure to give such notice shall not affect the validity of such setoff and
application.
Section 11.08. Counterparts. This Agreement may be executed by one or
more of the parties to this Agreement on any number of separate counterparts,
and all of said counterparts taken together shall be deemed to constitute one
and the same instrument. A set of the copies of this Agreement signed by all the
parties shall be maintained with Borrower and the Agent.
Section 11.09. Severability. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.
Section 11.10. Integration. This Agreement and the other Loan Documents
represent the agreement of Borrower, the Agent and the Banks with respect to the
subject matter hereof, and there are no promises, undertakings, representations
or warranties by the Agent or any Bank relative to the subject matter hereof not
expressly set forth or referred to herein or in the other Loan Documents.
49
Section 11.11. GOVERNING LAW. II) THIS AGREEMENT AND ANY NOTES AND THE
RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT AND ANY NOTES SHALL
BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK.
(b) Notwithstanding anything in Section 11.11(a) to the
contrary, nothing in this Agreement or in any Note or any other Loan Documents
shall be deemed to constitute a waiver of any rights which any Bank may have
under applicable federal law relating to the amount of interest which any Bank
may contract for, take, receive or charge in respect of any Loans, including any
right to take, receive, reserve and charge interest at the rate allowed by the
laws of the state where such Bank is located. To the extent that Texas law is
applicable to the determination of the Highest Lawful Rate, the Banks and
Borrower agree that (i) if Article 1.04, Subtitle 1, Title 79, of the Revised
Civil Statutes of Texas, 1925, as amended, is applicable to such determination,
the indicated rated ceiling computed from time to time pursuant to Section (a)
of such Article shall apply, provided that, to the extent permitted by such
Article, the Agent may from time to time by notice to Borrower revise the
election of such interest rate ceiling as such ceiling affects the then current
or future balances of the Loans; and (ii) the provisions of Chapter 15 of
Subtitle 3, Title 79, of the Revised Civil Statutes of Texas, 1925, as amended,
shall not apply to this Agreement or any Note issued hereunder.
Section 11.12. Submission to Jurisdiction; Waivers. Borrower hereby
irrevocably and unconditionally:
(a) submits for itself and its property in any legal action or
proceeding relating to this Agreement and the other Loan Documents to which it
is a party, or for recognition and enforcement of any judgment in respect
thereof, to the non-exclusive general jurisdiction of the Courts of the State of
New York, the courts of the United States of America for the Southern District
of New York, and appellate courts from any thereof;
(b) consents that any such action or proceeding may be brought
in such courts and waives any objection that it may now or hereafter have to the
venue of any such action or proceeding in any such court or that such action or
proceeding was brought in an inconvenient court and agrees not to plead or claim
the same;
(c) agrees that service of process in any such action or
proceeding may be effected by mailing a copy thereof by registered or certified
mail (or any substantially similar form of mail), postage prepaid, to Borrower
at its address set forth in Section 11.02 or at such other address of which the
Agent shall have been notified pursuant thereto;
(d) agrees that nothing herein shall affect the right to
effect service of process in any other manner permitted by law or shall limit
the right to ▇▇▇ in any other jurisdiction; and
(e) waives, to the maximum extent permitted by applicable law,
any right it may have to claim or recover in any legal action or proceeding
referred to in this Section 11.12 any special, exemplary, punitive or
consequential damages.
Section 11.13. Acknowledgments. Borrower hereby acknowledges that:
(a) it has been advised by counsel in the negotiation,
execution and delivery of this Agreement, any Notes and the other Loan
Documents;
50
(b) neither the Agent nor any Bank has any fiduciary
relationship with or duty to Borrower arising out of or in connection with this
Agreement or any of the other Loan Documents, and the relationship between the
Agent and the Banks, on one hand, and Borrower, on the other hand, in connection
herewith or therewith is solely that of debtor and creditor; and
(c) no joint venture exists among the Banks or among Borrower
and the Banks.
Section 11.14. Limitation on Agreements. All agreements between
Borrower, the Agent or any Bank, whether now existing or hereafter arising and
whether written or oral, are hereby expressly limited so that in no contingency
or event whatsoever, whether by reason of demand being made in respect of an
amount due under any Loan Document or otherwise, shall the amount paid, or
agreed to be paid, to the Agent or any Bank for the use, forbearance, or
detention of the money to be loaned under this Agreement, any Notes or any other
Loan Document or otherwise or for the payment or performance of any covenant or
obligation contained herein or in any other Loan Document exceed the Highest
Lawful Rate. If, as a result of any circumstances whatsoever, fulfillment of any
provision hereof or of any of such documents, at the time performance of such
provision shall be due, shall involve transcending the limit of validity
prescribed by applicable usury law, then, ipso facto, the obligation to be
fulfilled shall be reduced to the limit of such validity, and if, from any such
circumstance, the Agent or any Bank shall ever receive interest or anything that
might be deemed interest under applicable law that would exceed the Highest
Lawful Rate, such amount that would be excessive interest shall be applied to
the reduction of the principal amount owing on account of such Bank's Loan or
the amounts owing on other obligations of Borrower to the Agent or any Bank
under any Loan Document and not to the payment of interest, or if such excessive
interest exceeds the unpaid principal balance of any Loan and the amounts owing
on other obligations of Borrower to the Agent or any Bank under any Loan
Document, as the case may be, such excess shall be refunded to Borrower. All
sums paid or agreed to be paid to the Agent or any Bank for the use, forbearance
or detention of the indebtedness of Borrower to the Agent or any Bank shall, to
the fullest extent permitted by applicable law, be amortized, prorated,
allocated and spread throughout the full term of such indebtedness until payment
in full of the principal (including the period of any renewal or extension
thereof) so that the interest on account of such indebtedness shall not exceed
the Highest Lawful Rate. Notwithstanding anything to the contrary contained in
any Loan Document, it is understood and agreed that if at any time the rate of
interest that accrues on the outstanding principal balance of any Loan shall
exceed the Highest Lawful Rate, the rate of interest that accrues on the
outstanding principal balance of any Loan shall be limited to the Highest Lawful
Rate, but any subsequent reductions in the rate of interest that accrues on the
outstanding principal balance of any Loan shall not reduce the rate of interest
that accrues on the outstanding principal balance of any Loan below the Highest
Lawful Rate until the total amount of interest accrued on the outstanding
principal balance of any Loan equals the amount of interest that would have
accrued if such interest rate had at all times been in effect. The terms and
provisions of this Section 11.14 shall control and supersede every other
provision of all Loan Documents.
Section 11.15. Removal of Bank. Notwithstanding anything herein to the
contrary, Borrower may, at any time in its sole discretion, remove any Bank upon
15 Business Days' written notice to such Bank and the Agent (the contents of
which notice shall be promptly communicated by the Agent to each other Bank),
such removal to be effective at the expiration of such 15-day notice period;
provided, however, that no Bank may be removed hereunder at a time when an Event
of Default shall have occurred and be continuing. Each notice by Borrower under
this Section 11.15 shall constitute a representation by Borrower that the
removal described in such notice is permitted under this Section 11.15.
Concurrently with such removal, Borrower shall pay to such removed Bank all
amounts owing to such Bank hereunder and under any Notes in immediately
available funds. Upon full and final payment hereunder of all amounts owing to
such removed Bank, such Bank shall make appropriate entries in its accounts
evidencing payment of all Loans hereunder and releasing Borrower from all
obligations owing to the
51
removed Bank in respect of the Loans hereunder and surrender to the Agent for
return to Borrower any Notes of Borrower then held by it. Effective immediately
upon such full and final payment, such removed Bank will not be considered to be
a "Bank" for purposes of this Agreement except for the purposes of any provision
hereof that by its terms survives the termination of this Agreement and the
payment of the amounts payable hereunder. Effective immediately upon such
removal, the Commitments of such removed Bank shall immediately terminate. Such
removal will not, however, affect the Commitments of any other Bank hereunder.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers or agents thereunto duly authorized, as of
the date first above written.
RELIANT ENERGY, INCORPORATED
By: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇
-------------------------------
Title: Assistant Treasurer
THE CHASE MANHATTAN BANK,
as Administrative Agent and as a Bank
By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
-------------------------------
Title: Vice President
Signature Page
REI Credit Agreement
Bank of America, N.A., as a Bank
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
---------------------
Title: Vice President
Signature Page
REI Credit Agreement
Bank One, NA, as a Bank
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
---------------------
Title: Director, Capital Markets
Signature Page
REI Credit Agreement
BAYERISCHE Landesbank Girozentrale,
as a Bank
By: /s/ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
------------------------
Title: Senior Vice President
By: /s/ ▇▇▇▇ ▇'▇▇▇▇▇▇▇▇
------------------------
Title: Vice President
Signature Page
REI Credit Agreement
Citibank, N.A., as a Bank
By: /s/ ▇▇▇▇▇▇ ▇▇▇
------------------
Title: Managing Director
Signature Page
REI Credit Agreement
Commerzbank AG
New York Branch and Grand Cayman Branches,
as Co-Syndication Agent and as a Bank
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
--------------------
Title: SVP & Manager
By: /s/ W. ▇▇▇▇▇ ▇▇▇▇▇▇▇
--------------------
Title: Vice President
Signature Page
REI Credit Agreement
Credit AGRICOLE INDOSUEZ, as a Bank
By: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇
----------------------
Title: FVP, Manager
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
----------------------
Title: VP, Credit Analysis
Signature Page
REI Credit Agreement
CREDIT SUISSE FIRST BOSTON, as
Co-Syndication Agent and as a Bank
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
---------------------
Title: Vice President
By: /s/ ▇▇▇ ▇▇▇▇▇
---------------
Title: Director
Signature Page
REI Credit Agreement
KBC BANK, as a Bank
By: /s/ ▇▇▇▇-▇▇▇▇▇▇ Diels
---------------------
Title: First Vice President
By: /s/ ▇▇▇▇ ▇▇▇▇▇▇
-----------------
Title: Assistant Vice President
Signature Page
REI Credit Agreement
Mellon Bank N.A., as a Bank
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
--------------------
Title: Vice President
Signature Page
REI Credit Agreement
MIZUHO GROUP, as Documentation Agent
and as a Bank
INDUSTRIAL BANK OF JAPAN, as a bank
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
---------------------
Title: Senior Vice President,
Houston Office
FUJI BANK LTD., as bank
By: /s/ ▇▇▇▇ ▇▇▇▇▇
----------------
Title: General Manager
Signature Page
REI Credit Agreement
SUMITOMO MITSUI BANKING CORPORATION,
as a Bank
By: /s/ Tamihiro Kawauchi
----------------------
Title: Joint General Manager
Signature Page
REI Credit Agreement
Toronto Dominion (TEXAS) Inc., as a Bank
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇
-------------------
Title: Vice President
Signature Page
REI Credit Agreement
UBS AG, STAMFORD BRANCH, as a Bank
By: /s/ ▇▇▇▇▇▇▇ ▇. Saint
---------------------
Title: Associate Director Banking Products Services, US
By: /s/ ▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
------------------------
Title: Associate Director Banking Products Services, US
Signature Page
REI Credit Agreement
Westdeutsche Landesbank Girozentrale, as a Bank
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇ III
------------------------
Title: Associates Director
By: /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇
-----------------------
Title: Manager