1
Exhibit 10.12.2
AGREEMENT, ACKNOWLEDGMENT AND CONSENT
AGREEMENT, ACKNOWLEDGMENT AND CONSENT dated as of
December 31, 1998 (this "Agreement"), by and among CREDIT
SUISSE FIRST BOSTON ("CSFB"), POPULAR, INC., POPULAR NORTH
AMERICA, INC. (together with Popular, Inc., the
"Borrowers") and THE CHASE MANHATTAN BANK ("Chase"), as
administrative agent (in such capacity, the
"Administrative Agent").
A. Reference is made to the Credit Agreement dated as of
October 29, 1998 (the "Credit Agreement"), among the Borrowers, the financial
institutions from time to time party thereto, initially consisting of those
listed on Schedule 2.01 (the "Lenders") and the Administrative Agent.
Capitalized terms used but not otherwise defined herein have the meaning
assigned to them in the Credit Agreement.
B. The Lenders have agreed to extend credit to the Borrowers
in the form of Revolving Loans in an aggregate principal amount of $320,000,000
on the terms and subject to the conditions set forth in the Credit Agreement.
C. The Borrowers have requested that the Lenders increase
their individual commitments in an aggregate amount of $50,000,000 effective
December 31, 1998.
D. Each Lender has declined or is deemed to have declined to
increase its Commitment pursuant to Section 2.22 of the Credit Agreement.
E. The Borrowers have arranged for CSFB to become a party to
the Credit Agreement and to extend a Commitment of $25,000,000.
NOW, THEREFORE, in consideration of the mutual agreements
herein contained and other good and valuable consideration, the sufficiency and
receipt of which are hereby acknowledged, the Borrowers, CSFB and the
Administrative Agent agree, acknowledge and consent as follows:
SECTION 1. Borrowers' Acknowledgements. The Borrowers
acknowledge that, pursuant to Section 2.22 of the Credit Agreement, they have
requested that (i) the aggregate amount of the Commitments be increased to
$345,000,000, (ii) CSFB become a Lender under the Credit Agreement and (iii)
CSFB extend credit under the Credit Agreement in the amount of $25,000,000.
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SECTION 2. Extension of Credit and Commitment of CSFB. CSFB
agrees to become a Lender under the Credit Agreement and to extend credit to the
Borrowers on the terms and subject to the conditions set forth in the Credit
Agreement. CSFB further agrees that its Revolving Credit Commitment under the
Credit Agreement shall be $25,000,000.
SECTION 3. Consent of the Administrative Agent. The
Administrative Agent consents to the addition of CSFB as a Lender under the
Credit Agreement.
SECTION 4. Certification of the Borrowers. Pursuant to Section
2.22 of the Credit Agreement, the Borrowers hereby certify that as of the date
hereof:
(a) No Default or Event of Default has occurred and is
continuing.
(b) The representations and warranties set forth in Article
III of the Credit Agreement are true and correct in all material
respects on and as of the date hereof with the same effect as though
made on and as of such date, except to the extent such representations
and warranties expressly relate to an earlier date.
(c) The Borrowers are in compliance with all the terms and
provisions set forth in the Credit Agreement and in each other Loan
Document on its part to be observed or performed as of the date hereof.
SECTION 5. Effectiveness. This Agreement shall effective upon
the satisfaction in full of the following conditions precedent:
(a) The Administrative Agent shall have received counterparts
hereof, duly executed and delivered by the Borrowers, CSFB and the
Administrative Agent; and
(b) The Borrowers shall have delivered to the Administrative
Agent documents consistent with those delivered under clauses (a) and
(c) of Section 4.02 as to the corporate power and authority of the
Borrowers to borrow under the Credit Agreement after giving effect to
the $25,000,000 increase of the aggregate commitments pursuant to
Section 2.22.
SECTION 6. Applicable Law. THIS AGREEMENT SHALL BE CONSTRUED
IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF NEW YORK.
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SECTION 7. Counterparts. This Agreement may be executed in two
or more counterparts, each of which shall constitute an original but all of
which when taken together shall constitute but one contract. This Agreement may
be delivered by facsimile transmission of the relevant signature pages hereof.
SECTION 8. Headings. Section headings used herein are for
convenience of reference only, are not part of this Agreement and are not to
affect the construction of, or to be taken into consideration in interpreting,
this Agreement.
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4
IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement as of the day and year first above written.
POPULAR, INC.,
by
----------------------------------------
Name:
Title:
POPULAR NORTH AMERICA, INC.,
by
----------------------------------------
Name:
Title:
CREDIT SUISSE FIRST BOSTON,
by
----------------------------------------
Name:
Title:
THE CHASE MANHATTAN BANK,
as Administrative Agent,
by
----------------------------------------
Name:
Title:
5
Exhibit 10.12.2 (2)
AMENDMENT dated as of February 12, 1999, to
the Credit Agreement dated as of October 29, 1998,
among POPULAR, INC., POPULAR NORTH AMERICA INC., the
Lenders party thereto and THE CHASE MANHATTAN BANK,
as Administrative Agent.
WHEREAS, the Borrowers (such term and each other capitalized
term used but not defined herein having the meaning assigned to it in the Credit
Agreement), have requested that the Lenders approve an amendment to a certain
provision of the Credit Agreement; and
WHEREAS, the undersigned Lenders are willing, on the terms and
subject to the conditions set forth herein, to approve such amendment;
NOW, THEREFORE, in consideration of these premises, the
Borrowers and the undersigned Lenders hereby agree as follows:
SECTION 1. Amendment. Effective as of the Amendment Effective
Date (as defined in Section 2 hereof), Section 6.08 of the Credit Agreement is
hereby amended to increase the maximum double leverage ratio by replacing the
"125%" at the end of Section 6.08 with "130%".
SECTION 2. Effectiveness. This Amendment shall become
effective as of the date (the "Amendment Effective Date") when the
Administrative Agent (or its counsel) shall have received copies hereof that,
when taken together, bear the signatures of the Borrowers and the Required
Lenders.
SECTION 3. Applicable Law. This Amendment shall be
construed in accordance with and governed by the law of the State
of New York.
SECTION 4. No Other Amendments. Except as expressly set forth
herein, this Amendment shall not by implication or otherwise limit, impair,
constitute a waiver of, or otherwise affect the rights and remedies of any party
under, the Credit Agreement, nor alter, modify, amend or in any way affect any
of the terms, conditions, obligations, covenants or agreements contained in the
Credit Agreement, all of which are ratified and affirmed in all respects and
shall continue in full force and effect. This Amendment shall apply and be
effective only with respect to the provisions of the Credit Agreement
specifically referred to herein.
SECTION 5. Counterparts. This Amendment may be executed in two
or more counterparts, each of which shall constitute an original, but all of
which when taken together
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shall constitute but one contract. Delivery of an executed counterpart of a
signature page of this Amendment by facsimile transmission shall be as effective
as delivery of a manually executed counterpart of this Amendment.
SECTION 6. Headings. Section headings used herein are for
convenience of reference only, are not part of this Amendment and are not to
affect the construction of, or to be taken into consideration in interpreting,
this Amendment.
SECTION 7. Expenses. The Borrowers shall reimburse the
Administrative Agent for its reasonable out-of-pocket expenses incurred in
connection with this Amendment, including the reasonable fees and expenses of
Cravath, Swaine & ▇▇▇▇▇, counsel for the Administrative Agent.
IN WITNESS WHEREOF, the Borrowers and the undersigned Lenders
have caused this Amendment to be duly executed by their duly authorized
officers, all as of the date first above written.
POPULAR, INC.,
by
-----------------------------------
Name:
Title:
by
-----------------------------------
Name:
Title:
POPULAR NORTH AMERICA, INC.,
by
-----------------------------------
Name:
Title:
by
-----------------------------------
Name:
Title:
THE CHASE MANHATTAN BANK,
by
-----------------------------------
Name:
Title:
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BARCLAYS BANK PLC
by
-------------------------
Name:
Title:
CARIPLO-CASSA DI RISPARMIO DELLE
PROVINCIE LOMBARDE S.P.A.
by
-------------------------
Name:
Title:
by
-------------------------
Name:
Title:
CITIBANK, N.A.
by
-------------------------
Name:
Title:
COMERICA BANK
by
-------------------------
Name:
Title:
THE FIRST NATIONAL BANK OF CHICAGO
by
-------------------------
Name:
Title:
LASALLE NATIONAL BANK
by
-------------------------
Name:
Title:
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NORDDEUTSCHE LANDESBANK
GIROZENTRALE NEW YORK BRANCH
AND/OR CAYMAN ISLANDS BRANCH
by
-------------------------
Name:
Title:
by
-------------------------
Name:
Title:
BANCO BILBAO VIZCAYA S.A.
by
-------------------------
Name:
Title:
BANCA MONTE DEI PASCHI DI SIENA
S.P.A. NEW YORK BRANCH
by
-------------------------
Name:
Title:
by
-------------------------
Name:
Title:
MELLON BANK
by
-------------------------
Name:
Title:
BANCA CRT SPA
by
-------------------------
Name:
Title:
by
-------------------------
Name:
Title:
9
Exhibit 10.12.2 (3)
================================================================================
CREDIT AGREEMENT
Dated as of October 29, 1998
among
POPULAR, INC.,
POPULAR NORTH AMERICA, INC.,
THE LENDERS NAMED HEREIN
and
THE CHASE MANHATTAN BANK,
as Administrative Agent
CHASE SECURITIES, INC.
as advisor, arranger and book manger
================================================================================
[CS&M Ref. No. 6700-751]
10
TABLE OF CONTENTS
Article Section Page
------- ------- ----
I. DEFINITIONS ................................................................... 1
1.01. Defined Terms ................................................. 11
1.02. Terms Generally ............................................... 12
II. THE CREDITS ................................................................... 12
2.01. Commitments.................................................... 12
2.02. Loans ......................................................... 12
2.03. Competitive Bid Procedure ..................................... 14
2.04. Borrowing Procedure ........................................... 16
2.05. Evidence of Debt; Repayment of Loans .......................... 16
2.06. Fees .......................................................... 17
2.07. Interest on Loans ............................................. 18
2.08. Default Interest .............................................. 18
2.09. Alternate Rate of Interest .................................... 18
2.10. Termination and Reduction of Commitments....................... 19
2.11. Prepayment .................................................... 19
2.12. Reserve Requirements; Change in Circumstances.................. 20
2.13. Change in Legality ............................................ 21
2.14. Indemnity ..................................................... 21
2.15. Pro Rata Treatment ............................................ 22
2.16. Sharing of Setoffs ............................................ 22
2.17. Payments ...................................................... 23
2.18. Taxes ......................................................... 23
2.19. Assignment of Commitments Under Certain Circumstances.......... 26
2.20. Cross Guaranty................................................. 27
2.21. Extension of Revolving Credit Maturity Date.................... 28
2.22. Increase in Commitments........................................ 29
III. REPRESENTATIONS AND WARRANTIES................................................. 31
3.01. Organization; Powers .......................................... 31
3.02. Authorization ................................................. 31
3.03. Enforceability ................................................ 31
3.04. Governmental Approvals ........................................ 31
3.05. Financial Statements .......................................... 32
11
Contents, p. 2
Article Section Page
3.06. No Material Adverse Change..................................... 32
3.07. Title to Properties; Possession Under Leases................... 32
3.08. Subsidiaries................................................... 32
3.09. Litigation; Compliance with Laws............................... 32
3.10. Agreements..................................................... 33
3.11. Federal Reserve Regulations.................................... 33
3.12. Investment Company Act; Public Utility Holding Company Act..... 33
3.13. Use of Proceeds................................................ 33
3.14. Tax Returns.................................................... 33
3.15. No Material Misstatements...................................... 33
3.16. Employee Benefit Plans......................................... 34
3.17. Environmental and Safety Matters............................... 34
3.18. Capital Commitments............................................ 34
3.19. Year 2000...................................................... 34
IV. CONDITIONS OF LENDING.......................................................... 35
4.01. All Credit Events ............................................. 35
4.02. First Credit Event ............................................ 35
V. AFFIRMATIVE COVENANTS.......................................................... 36
5.01. Existence; Businesses and Properties........................... 36
5.02 Insurance...................................................... 37
5.03 Obligations and Taxes.......................................... 37
5.04. Financial Statements, Reports, etc............................. 37
5.05. Litigation and Other Notices .................................. 38
5.06. Employee Benefits.............................................. 39
5.07. Maintaining Records; Access to Properties and Inspections...... 39
5.08 Use of Proceeds................................................ 39
5.09 Continuance of Business........................................ 39
5.10 Compliance with Regulatory Standards........................... 40
5.11 Capital Requirements........................................... 40
12
Contents, p. 3
Article Section Page
VI. NEGATIVE COVENANTS............................................................. 40
6.01. Liens.......................................................... 40
6.02. Sale and Lease-Back Transactions............................... 41
6.03. Mergers, Consolidations, Sales of Assets ...................... 41
6.04 Business of Borrowers and Subsidiaries......................... 42
6.05 Consolidated Tangible Net Worth................................ 42
6.06 Ratio of Long-Term Indebtedness to Total Capitalization........ 42
6.07 Non-Performing Assets.......................................... 42
6.08 Double Leverage................................................ 42
VII. EVENTS OF DEFAULT.............................................................. 42
VIII. THE ADMINISTRATIVE AGENT....................................................... 45
IX. MISCELLANEOUS.................................................................. 47
9.01. Notices........................................................ 47
9.02. Survival of Agreement ......................................... 48
9.03. Binding Effect ................................................ 48
9.04. Successors and Assigns ........................................ 48
9.05. Expenses; Indemnity ........................................... 51
9.06. Right of Setoff................................................ 51
9.07. Applicable Law ................................................ 52
9.08. Waivers; Amendment ............................................ 52
9.09 Interest Rate Limitation....................................... 52
9.10. Entire Agreement .............................................. 53
9.11. WAIVER OF JURY TRIAL........................................... 53
9.12. Severability .................................................. 53
9.13. Counterparts .................................................. 53
9.14. Headings ...................................................... 53
9.15. Jurisdiction; Consent to Service of Process.................... 53
9.16 Confidentiality................................................ 54
9.17 Termination of Existing Credit Agreement....................... 54
13
Contents, p. 4
EXHIBITS AND SCHEDULES
Exhibit A Form of Assignment and Acceptance
Exhibit B Form of Opinion of Borrowers' Counsel
EXHIBIT C Form of Request for Extension of Maturity Date
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1
CREDIT AGREEMENT dated as of October 29, 1998, among
POPULAR, INC., a Puerto Rico corporation ("Popular"),
Popular North America, Inc., a Delaware corporation
("Popular North America"), and together with Popular,
the "Borrowers"), the financial institutions from
time to time party hereto, initially consisting of
those listed on Schedule 2.01 (the "Lenders"), and
The Chase Manhattan Bank, a New York banking
corporation, as agent (in such capacity, the
"Administrative Agent") for the Lenders.
The Borrowers have requested the Lenders to extend credit in
the form of Revolving Loans (such term and each other capitalized term used but
not defined herein having the meaning given it in Article I) at any time and
from time to time prior to the Revolving Credit Maturity Date, in an aggregate
principal amount at any time outstanding not in excess of $320,000,000. The
Borrowers have requested the Lenders to provide a procedure pursuant to which a
Borrower may invite the Lenders to bid on an uncommitted basis on short-term
borrowings by such Borrower. The proceeds of the Loans are to be used for
general corporate purposes, including commercial paper back-up.
The Lenders are willing to extend such credit to the Borrowers
on the terms and subject to the conditions set forth herein. Accordingly, the
parties hereto agree as follows:
ARTICLE I. DEFINITIONS
SECTION 1.01. Defined Terms. As used in this Agreement, the
following terms shall have the meanings specified below:
"ABR Borrowing" shall mean a Borrowing comprised of ABR Loans.
"ABR Loan" shall mean any Loan bearing interest at the
Alternate Base Rate in accordance with the provisions of Article II.
"Administrative Agent Fees" shall have the meaning assigned to
such term in Section 2.06(c).
15
2
"Administrative Questionnaire" shall mean an Administrative
Questionnaire in a form supplied by the Administrative Agent.
"Affiliate" shall mean, when used with respect to a specified
person, another person that directly, or indirectly through one or more
intermediaries, Controls or is Controlled by or is under common Control with the
person specified.
"Aggregate Revolving Credit Exposure" shall mean the aggregate
amount of the Lenders' Revolving Credit Exposures.
"Alternate Base Rate" shall mean, for any day, a rate per
annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to the
greater of (a) the Prime Rate in effect on such day and (b) the Federal Funds
Effective Rate in effect on such day plus 1/2 of 1%. If for any reason the
Administrative Agent shall have determined (which determination shall be
conclusive absent manifest error) that it is unable to ascertain the Federal
Funds Effective Rate for any reason, including the inability or failure of the
Administrative Agent to obtain sufficient quotations in accordance with the
terms thereof, the Alternate Base Rate shall be determined without regard to
clause (b) of the preceding sentence, as appropriate, until the circumstances
giving rise to such inability no longer exist. Any change in the Alternate Base
Rate due to a change in the Prime Rate or the Federal Funds Effective Rate shall
be effective on the effective date of such change in the Prime Rate or the
Federal Funds Effective Rate, respectively.
"Applicable Percentage" means, with respect to any Lender, the
percentage of the total Commitments represented by such Lender's Commitment.
"Applicable Rate" shall mean, with respect to any Eurodollar
Loan (other than any Eurodollar Competitive Loan), or with respect to the
Facility Fees, as the case may be, the Applicable Rate set forth below in the
row across from the caption "Eurodollar Spread" or "Facility Fee", as the case
may be, based
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upon the ratings by S&P and ▇▇▇▇▇'▇, respectively, applicable on such date to
the Index Debt:
=======================================================================================================
Category 1 Category 2 Category 3 Category 4 Category 5
---------- ---------- ---------- ---------- ----------
A/A2 or A-/A3 BBB+/Baa1 BBB/Baa2 BBB-/Baa3/ or
Higher Lower
-------------------------------------------------------------------------------------------------------
C>
Eurodollar Spread 25.00 30.00 35.00 42.50 50.00
-----------------
(bp)
-------------------------------------------------------------------------------------------------------
Facility Fee (bp) 10.00 12.50 15.00 20.00 25.00
=======================================================================================================
For purposes of the foregoing, (i) if S&P or Moody's shall not
have in effect a rating for the Index Debt (other than by reason of the
circumstances referred to in the last sentence of this definition), then such
rating agency shall be deemed to have established a rating in Category 5; (ii)
if the ratings established or deemed to have been established by S&P and Moody's
for the Index Debt shall fall within different Categories, the Applicable Rate
shall be based on (A) if the ratings are in adjacent categories, the higher of
the two ratings and (B) if the ratings are in non-adjacent categories, the
rating immediately below the higher of the two ratings; and (iii) if the ratings
established or deemed to have been established by S&P and Moody's for the Index
Debt shall be changed (other than as a result of a change in the rating system
of such rating agency), such change shall be effective as of the date on which
it is first announced by the applicable rating agency. Each change in the
Applicable Rate shall apply during the period commencing on the effective date
of such change and ending on the date immediately preceding the effective date
of the next such change. If the rating system of S&P or Moody's shall change, or
if any such rating agency shall cease to be in the business of rating corporate
debt obligations, the Borrowers and the Lenders shall negotiate in good faith to
amend this definition to reflect such changed rating system or the
non-availability of ratings from such rating agency and, pending the
effectiveness of any such amendment, the Applicable Rate shall be determined
using the rating of such rating agency most recently in effect prior to such
change or cessation.
"Assignment and Acceptance" shall mean an assignment and
acceptance entered into by a Lender and an assignee, and accepted by the
Administrative Agent, in the form of Exhibit B or such other form as shall be
approved by the Administrative Agent.
"Banco Popular" shall mean the Banco Popular de Puerto Rico, a
Puerto Rico bank.
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4
"Bank Regulatory Authority" shall mean the Board of Governors
of the Federal Reserve System, the Comptroller of the Currency, the Federal
Deposit Insurance Corporation and all other relevant bank regulatory authorities
(including relevant state bank regulatory authorities).
"Bank Subsidiary" shall mean any Subsidiary that is a
commercial bank, banking corporation, savings and loan association, savings
bank, trust company or Edge Act corporation.
"Board" shall mean the Board of Governors of the Federal
Reserve System of the United States.
"Borrowing" shall mean a group of Loans of a single Type made
by the Lenders (or, in the case of a Competitive Borrowing, by the Lender or
Lenders whose Competitive Bids have been accepted pursuant to Section 2.03) on a
single date and as to which a single Interest Period is in effect.
"Borrowing Request" shall mean a request by a Borrower in
accordance with the terms of Section 2.04.
"Business Day" shall mean any day other than a Saturday,
Sunday or day on which banks in New York City are authorized or required by law
to close; provided, however, that (i) when used in connection with a Eurodollar
Loan, the term "Business Day" shall also exclude any day on which banks are not
open for dealings in Dollar deposits in the London interbank market and (ii)
when used in Sections 2.03 and 2.04, the Term "Business Day" shall also exclude
any day on which banks in Puerto Rico are authorized or required by law to
close.
"Capital Commitment" shall mean any commitment to the Federal
Deposit Insurance Corporation, the Resolution Trust Corporation, the Director of
the Office of Thrift Supervision, the Comptroller of the Currency, or the Board,
or their predecessors or successors, to maintain the capital of an insured
depository institution.
"Capital Lease Obligations" of any person shall mean the
obligations of such person to pay rent or other amounts under any lease of (or
other arrangement conveying the right to use) real or personal property, or a
combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such person under GAAP,
and the amount of such obligations shall be the capitalized amount thereof
determined in accordance with GAAP.
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A "Change in Control" shall be deemed to have occurred if (a)
any person or group (within the meaning of Rule 13d-5 of the Securities Exchange
Act of 1934 as in effect on the date hereof) shall own directly or indirectly,
beneficially or of record, shares representing more than 25% of the aggregate
ordinary voting power represented by the issued and outstanding capital stock of
Popular; (b) a majority of the seats (other than vacant seats) on the board of
directors of a Borrower shall at any time have been occupied by persons who were
neither (i) nominated by the board of directors of a Borrower, nor (ii)
appointed by directors so nominated; (c) Popular shall cease to own, directly or
indirectly, all of the outstanding and issued voting stock of Popular North
America; (d) Popular shall cease to own, directly or indirectly, all of the
outstanding and issued capital stock of Banco Popular (other than directors'
qualifying shares); or (e) any person or group shall otherwise directly or
indirectly control Popular.
"Closing Date" shall mean the date of execution of this
Agreement.
"Code" shall mean the Internal Revenue Code of 1986, as the
same may be amended from time to time.
"Commitment" shall mean, with respect to any Lender, such
Lender's Revolving Credit Commitment.
"Competitive Bid" shall mean an offer by a Lender to make a
Competitive Loan pursuant to Section 2.03.
"Competitive Bid Accept/Reject Letter" shall mean a
notification made by a Borrower pursuant to Section 2.03(d) in a form approved
by the Administrative Agent.
"Competitive Bid Rate" shall mean, as to any Competitive Bid
made by a Lender pursuant to Section 2.03(b), (i) in the case of a Eurodollar
Loan, the Margin, and (ii) in the case of a Fixed Rate Loan, the fixed rate of
interest offered by the Lender making such Competitive Bid.
"Competitive Bid Request" shall mean a request made pursuant
to Section 2.03 in a form approved by the Administrative Agent.
"Competitive Borrowing" shall mean a Borrowing consisting of a
Competitive Loan or concurrent Competitive Loans from the Lender or Lenders
whose Competitive Bids for such Borrowing have been accepted by a Borrower under
the bidding procedure described in Section 2.03.
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6
"Competitive Loan" shall mean a Loan from a Lender to a
Borrower pursuant to the bidding procedure described in Section 2.03. Each
Competitive Loan shall be a Eurodollar Competitive Loan or a Fixed Rate Loan.
"Consolidated Net Worth" shall mean at any date the Net Worth
of Popular and its consolidated Subsidiaries on such date, determined on a
consolidated basis in accordance with GAAP.
"Consolidated Tangible Net Worth" shall mean, at any date, (a)
Consolidated Net Worth at such date minus (b) with respect to Popular and its
Subsidiaries (determined on a consolidated basis in accordance with GAAP), the
book value of all Intangibles reflected in clause (a) above.
"Control" shall mean the possession, directly or indirectly,
of the power to direct or cause the direction of the management or policies of a
person, whether through the ownership of voting securities, by contract or
otherwise, and "Controlling" and "Controlled" shall have meanings correlative
thereto.
"Credit Event" shall have the meaning assigned to such term in
Section 4.01.
"Default" shall mean any event or condition which upon notice,
lapse of time or both would constitute an Event of Default.
"Dollars" or "$" shall mean lawful money of the United States
of America.
"Equity Investments in Subsidiaries" shall mean, at any date,
Popular's aggregate equity investments in the Subsidiaries, determined in
accordance with GAAP.
"ERISA" shall mean the Employee Retirement Income Security Act
of 1974, as the same may be amended from time to time.
"ERISA Affiliate" shall mean any trade or business (whether or
not incorporated) that, together with a Borrower, is treated as a single
employer under Section 414 of the Code.
"Eurodollar Borrowing" shall mean a Borrowing comprised of
Eurodollar Loans.
"Eurodollar Competitive Borrowing" shall mean a Borrowing
comprised of Eurodollar Competitive Loans.
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7
"Eurodollar Competitive Loan" shall mean any Competitive Loan
bearing interest at a rate determined by reference to the LIBO Rate in
accordance with the provisions of Article II.
"Eurodollar Loan" shall mean any Eurodollar Revolving Loan or
Eurodollar Competitive Loan.
"Eurodollar Revolving Credit Borrowing" shall mean a Borrowing
comprised of Eurodollar Revolving Loans.
"Eurodollar Revolving Loan" shall mean any Revolving Loan
bearing interest at a rate determined by reference to the LIBO Rate in
accordance with the provisions of Article II.
"Event of Default" shall have the meaning assigned to such
term in Article VII.
"Existing Credit Agreement" shall mean the Credit Agreement
dated as of November 3, 1995, among Popular, Popular North America, the
financial institutions from time to time party thereto and The Chase Manhattan
Bank, as administrative agent.
"Facility Fee" shall have the meaning assigned to such term in
Section 2.06(a).
"Federal Funds Effective Rate" shall mean, for any day, the
weighted average of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of New
York, or, if such rate is not so published for any day which is a Business Day,
the average of the quotations for the day of such transactions received by the
Administrative Agent from three Federal funds brokers of recognized standing
selected by it.
"Fee Letter" shall mean the Fee Letter dated September 25,
1998, among the Borrowers, the Administrative Agent and Chase Securities Inc.
"Fees" shall mean the Facility Fees, the Utilization Fees and
the Administrative Agent Fees.
"Financial Officer" of any corporation shall mean the chief
financial officer, principal accounting officer, Treasurer or Controller of such
corporation.
"Fixed Rate Borrowing" shall mean a Borrowing comprised of
Fixed Rate Loans.
21
8
"Fixed Rate Loan" shall mean any Competitive Loan bearing
interest at a fixed percentage rate per annum (expressed as a number of basis
points to no more than four decimal places) specified by the Lender making such
Loan in its Competitive Bid.
"GAAP" shall mean generally accepted accounting principles
applied on a consistent basis.
"Governmental Authority" shall mean any Federal, state, local
or foreign court or governmental agency, authority, instrumentality or
regulatory body.
"Guarantee" of or by any person shall mean any obligation,
contingent or otherwise, of such person guaranteeing or having the economic
effect of guaranteeing any Indebtedness of any other person (the "primary
obligor") in any manner, whether directly or indirectly, and including any
obligation of such person, direct or indirect, (a) to purchase or pay (or
advance or supply funds for the purchase or payment of) such Indebtedness or to
purchase (or to advance or supply funds for the purchase of) any security for
the payment of such Indebtedness, (b) to purchase or lease property, securities
or services for the purpose of assuring the owner of such Indebtedness of the
payment of such Indebtedness or (c) to maintain working capital, equity capital
or any other financial statement condition or liquidity of the primary obligor
so as to enable the primary obligor to pay such Indebtedness; provided, however,
that the term Guarantee shall not include endorsements for collection or deposit
in the ordinary course of business.
"Guarantors" shall mean the Borrowers, in their capacity as
guarantors under Section 2.20.
"Indebtedness" of any person shall mean, without duplication,
(a) all obligations of such person for borrowed money or with respect to
deposits or advances of any kind, (b) all obligations of such person evidenced
by bonds, debentures, notes or similar instruments, (c) all obligations of such
person upon which interest charges are customarily paid, (d) all obligations of
such person under conditional sale or other title retention agreements relating
to property or assets purchased by such person, (e) all obligations of such
person issued or assumed as the deferred purchase price of property or services
(excluding trade accounts payable and accrued obligations incurred in the
ordinary course of business), (f) all Indebtedness of others secured by (or for
which the holder of such Indebtedness has an existing right, contingent or
otherwise, to be secured by) any Lien on property owned or acquired by such
person, whether or not the obligations secured thereby have been assumed, (g)
all Guarantees by such person of Indebtedness of
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others, (h) all Capital Lease Obligations of such person and (i) all obligations
of such person as an account party in respect of letters of credit and bankers'
acceptances, excluding (in all cases) (x) liabilities of any Bank Subsidiary
that constitute "deposits" within the meaning of Section 3(i) of the Federal
Deposit Insurance Act, as amended, and (y) repurchase agreements entered into in
the ordinary course of business with a maturity of less than one year. The
Indebtedness of any person shall include the Indebtedness of any partnership in
which such person is a general partner.
"Index Debt" shall mean the senior, unsecured, non-credit
enhanced, long-term indebtedness for borrowed money of Popular.
"Intangibles" shall mean with respect to any person at any
date the amount of all assets of such person that would be classified as
intangible assets in accordance with GAAP, but in any event including
unamortized debt discount and expense, unamortized organization and
reorganization expense, costs in excess of the net asset value of acquired
companies, patents, copyrights, trade or service marks, franchises, trade names,
goodwill and the amount of any write-up in the book value of any assets
resulting from any revaluation thereof (other than (a) revaluations of tangible
assets arising out of purchase accounting adjustments, (b) revaluations arising
out of foreign currency valuations in accordance with GAAP, and (c) revaluations
pursuant to the Statement of Financial Accounting Standards No. 115).
"Interest Payment Date" shall mean, with respect to any Loan,
the last day of the Interest Period applicable to the Borrowing of which such
Loan is a part and, in the case of a Eurodollar Borrowing with an Interest
Period of more than three months' duration, each day that would have been an
Interest Payment Date had successive Interest Periods of three months' duration
been applicable to such Borrowing, and, in addition, the date of any refinancing
of such Borrowing with a Borrowing of a different Type.
"Interest Period" shall mean (a) as to any Eurodollar
Borrowing, the period commencing on the date of such Borrowing or on the last
day of the immediately preceding Interest Period applicable to such Borrowing,
as the case may be, and ending on the numerically corresponding day (or, if
there is no numerically corresponding day, on the last day) in the calendar
month that is 1, 2, 3 or 6 months thereafter, as the Borrower may elect, (b) as
to any ABR Borrowing, the period commencing on the date of such Borrowing or on
the last day of the immediately preceding Interest Period applicable to such
Borrowing, as the case may be, and ending on the earliest of (i) the next
succeeding March 31, June 30, September 30 or December 31, (ii) the Revolving
Credit Maturity Date and (iii) the date such
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Borrowing is prepaid in accordance with Section 2.11 and (c) as to any Fixed
Rate Borrowing, the period commencing on the date of such Borrowing and ending
on the date specified in the Competitive Bids in which the offer to make the
Fixed Rate Loans comprising such Borrowing were extended, which shall not be
earlier than seven days after the date of such Borrowing or later than 360 days
after the date of such Borrowing; provided, however, that if any Interest Period
would end on a day other than a Business Day, such Interest Period shall be
extended to the next succeeding Business Day unless, in the case of a Eurodollar
Borrowing only, such next succeeding Business Day would fall in the next
calendar month, in which case such Interest Period shall end on the next
preceding Business Day. Interest shall accrue from and including the first day
of an Interest Period to but excluding the last day of such Interest Period.
"LIBO Rate" shall mean, with respect to any Eurodollar
Borrowing, the rate (rounded upwards, if necessary, to the next 1/16 of 1%) at
which Dollar deposits approximately equal in principal amount to (i) in the case
of a Revolving Credit Borrowing, the Administrative Agent's portion of such
Eurodollar Borrowing and (ii) in the case of a Competitive Borrowing, a
principal amount that would have been the Administrative Agent's portion of such
Competitive Borrowing had such Competitive Borrowing been a Revolving Credit
Borrowing, and for a maturity comparable to such Interest Period are offered to
the principal London office of the Administrative Agent in immediately available
funds in the London interbank market at approximately 11:00 a.m., London time,
two Business Days prior to the commencement of such Interest Period.
"Lien" shall mean, with respect to any asset, (a) any
mortgage, deed of trust, lien, pledge, encumbrance, charge or security interest
in or on such asset, (b) the interest of a vendor or a lessor under any
conditional sale agreement, capital lease or title retention agreement relating
to such asset and (c) in the case of securities, any purchase option, call or
similar right of a third party with respect to such securities.
"Loan Documents" shall mean this Agreement and the Fee Letter.
"Loans" shall mean the Revolving Loans and the Competitive
Loans.
"Long-Term Indebtedness" shall mean, at any date, all
Indebtedness of Popular and the consolidated Subsidiaries outstanding as of such
date that does not mature or that is treated
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on the consolidated financial statements of Popular as not maturing, or
otherwise come due and payable, within one year of such date.
"Margin" shall mean, as to any Eurodollar Competitive Loan,
the margin (expressed as a number of basis points per annum in the form of a
decimal to no more than four decimal places) to be added to or subtracted from
the LIBO Rate in order to determine the interest rate applicable to such Loan,
as specified in the Competitive Bid relating to such Loan.
"Margin Stock" shall have the meaning assigned to such term in
Regulation U.
"Material Adverse Effect" shall mean (a) a materially adverse
effect on the business, assets, operations, prospects or condition, financial or
otherwise, of the Borrowers and the Subsidiaries taken as a whole, (b) material
impairment of the ability of any Borrower to perform any of its obligations
under any Loan Document to which it is or will be a party or (c) material
impairment of the rights of or benefits available to the Lenders under any Loan
Document.
"Moody's" shall mean ▇▇▇▇▇'▇ Investors Service, Inc.
"Multiemployer Plan" shall mean a multiemployer plan as
defined in Section 4001(a)(3) of ERISA to which a Borrower or any ERISA
Affiliate (other than one considered an ERISA Affiliate only pursuant to
subsection (m) or (o) of Code Section 414) is making or accruing an obligation
to make contributions, or has within any of the preceding five plan years made
or accrued an obligation to make contributions.
"Net Worth" with respect to any person at any date shall mean
(i) all amounts which would be included under shareholders' equity on a balance
sheet of such person, as of such date, determined in accordance with GAAP, less
(ii) such person's treasury stock (to the extent included in clause (i) above).
"Nonperforming Assets" shall mean, at any date, the sum, for
Popular and its Subsidiaries (determined on a consolidated basis without
duplication in accordance with GAAP) of the following: (a) loans that are at
least 90 days past-due as to principal or interest; (b) loans that are required
to have been placed on nonaccrual status by the relevant Bank Regulatory
Authority for Popular or its Subsidiaries; (c) loans that bear a rate of
interest that has been reduced below market rates due to the deteriorating
financial condition of a borrower; and (d) assets that have been
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acquired in satisfaction of indebtedness or have been classified as
"in-substance foreclosures".
"Note" shall mean a promissory note delivered pursuant to
Section 9.04(h).
"Obligations" shall have the meaning assigned to such term in
the first paragraph of Section 2.20.
"PBGC" shall mean the Pension Benefit Guaranty Corporation
referred to and defined in ERISA.
"person" shall mean any natural person, corporation, business
trust, joint venture, association, company, partnership or government, or any
agency or political subdivision thereof.
"Plan" shall mean any employee pension benefit plan (other
than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or
Section 412 of the Code that is maintained for current or former employees, or
any beneficiary thereof, of a Borrower or any ERISA Affiliate.
"Prime Rate" shall mean the rate of interest per annum
publicly announced from time to time by the Administrative Agent as its prime
rate in effect at its principal office in New York City; each change in the
Prime Rate shall be effective on the date such change is publicly announced as
being effective.
"Register" shall have the meaning given such term in Section
9.04(d).
"Regulation U" shall mean Regulation U of the Board as from
time to time in effect and all official rulings and interpretations thereunder
or thereof.
"Regulation X" shall mean Regulation X of the Board as from
time to time in effect and all official rulings and interpretations thereunder
or thereof.
"Regulation Y" shall mean Regulation Y of the Board as from
time to time in effect and all official rulings and interpretations thereunder
or thereof.
"Reportable Event" shall mean any reportable event as defined
in Section 4043 of ERISA or the regulations issued thereunder with respect to a
Plan (other than a Plan maintained by an ERISA Affiliate that is considered an
ERISA Affiliate only pursuant to subsection (m) or (o) of Code Section 414).
"Required Lenders" shall mean, at any time, Lenders having
Revolving Credit Commitments representing greater than 50% of
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13
the sum of all Revolving Credit Commitments at such time or, for purposes of
acceleration pursuant to clause (ii) of Article VII, Lenders having Loans and
unused Revolving Credit Commitments representing greater than 50% of the sum of
all Loans outstanding and unused Revolving Credit Commitments.
"Responsible Officer" of any corporation shall mean any
executive officer or Financial Officer of such corporation and any other officer
or similar official thereof responsible for the administration of the
obligations of such corporation in respect of this Agreement.
"Revolving Credit Borrowing" shall mean a Borrowing comprised
of Revolving Loans.
"Revolving Credit Commitment" shall mean, with respect to each
Lender, the commitment of such Lender to make Revolving Loans hereunder as set
forth in Schedule 2.01, or in the Assignment and Acceptance pursuant to which
such Lender assumed its Revolving Credit Commitment, as applicable, as the same
(a) may be reduced from time to time pursuant to Section 2.10, and (b) may be
reduced or increased from time to time pursuant to assignments by or to such
Lender pursuant to Section 9.04.
"Revolving Credit Exposure" shall mean, with respect to any
Lender at any time, the aggregate principal amount at such time of all
outstanding Revolving Credit Loans of such Lender.
"Revolving Credit Lender" shall mean a Lender with a Revolving
Credit Commitment.
"Revolving Credit Maturity Date" shall mean October 28, 1999,
as such date may be extended pursuant to Section 2.21.
"Revolving Loans" shall mean the revolving loans made by the
Lenders to a Borrower pursuant to Section 2.01. Each Revolving Loan shall be a
Eurodollar Revolving Loan or an ABR Revolving Loan.
"Significant Subsidiary" shall mean any Subsidiary which, at
the time any determination is being made, constitutes a "significant subsidiary"
as defined in Rule 1-02 of Regulation S-X of the Securities and Exchange
Commission, 17 C.F.R. ss. 210.1-02, as in effect on the date hereof.
"S&P" shall mean Standard & Poor's Ratings Group, a division
of ▇▇▇▇▇▇-▇▇▇▇, Inc.
"Subsidiary" shall mean any corporation, partnership,
association or other business entity (a) of which securities or other ownership
interests representing more than 50% of the equity or more than 50% of the
ordinary voting power or more than 50% of
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the general partnership interests are, at the time any determination is being
made, owned, controlled or held by either Borrower, or (b) which is, at the time
any determination is made, otherwise Controlled, by either Borrower or one or
more Subsidiaries of either Borrower or by either Borrower and one or more
Subsidiaries of either Borrower.
"Total Assets" shall mean, at any date, the total assets that
would be included on a balance sheet of Popular and its Subsidiaries (determined
on a consolidated basis in accordance with GAAP) as of such date.
"Total Capitalization" shall mean, at any date, the sum of
Consolidated Net Worth and Long-Term Indebtedness, each determined as of such
date.
"Total Revolving Credit Commitment" shall mean, at any time,
the aggregate amount of the Revolving Credit Commitments, as in effect at such
time.
"Transactions" shall have the meaning assigned to such term in
Section 3.02.
"Type", when used in respect of any Loan or Borrowing, shall
refer to the Rate by reference to which interest on such Loan or on the Loans
comprising such Borrowing is determined. For purposes hereof, "Rate" shall
include the LIBO Rate and the Alternate Base Rate.
"Utilization Fee" shall have the meaning assigned to such term
in Section 2.06(b).
"Withdrawal Liability" shall mean liability to a Multiemployer
Plan as a result of a complete or partial withdrawal from such Multiemployer
Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.
SECTION 1.02. Terms Generally. The definitions in Section 1.01
shall apply equally to both the singular and plural forms of the terms defined.
Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words "include", "includes" and
"including" shall be deemed to be followed by the phrase "without limitation".
All references herein to Articles, Sections, Exhibits and Schedules shall be
deemed references to Articles and Sections of, and Exhibits and Schedules to,
this Agreement unless the context shall otherwise require. Except as otherwise
expressly provided herein, (a) any reference in this Agreement to any Loan
Document shall mean such document as amended, restated, supplemented or
otherwise modified from time to time and (b) all terms of an accounting or
financial nature shall be construed in accordance with GAAP, as in effect from
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time to time; provided, however, that for purposes of determining compliance
with the covenants contained in Article VI, all accounting terms herein shall be
interpreted and all accounting determinations hereunder shall be made in
accordance with GAAP as in effect on the date of this Agreement and applied on a
basis consistent with the application used in the financial statements referred
to in Section 3.05.
ARTICLE II. THE CREDITS
SECTION 2.01. Commitments. Subject to the terms and conditions
and relying upon the representations and warranties herein set forth, each
Lender agrees, severally and not jointly, to make Revolving Loans to the
Borrowers, at any time and from time to time on or after the date hereof, and
until the earlier of the Revolving Credit Maturity Date and the termination of
the Revolving Credit Commitment of such Lender in accordance with the terms
hereof, in an aggregate principal amount at any time outstanding that will not
result in such Lender's Revolving Credit Exposure exceeding such Lender's
Revolving Credit Commitment (minus the amount by which the Competitive Loans
outstanding at such time shall be deemed to have used such Commitment pursuant
to Section 2.15), subject, however, to the conditions that (i) at no time shall
(A) the sum of (x) the outstanding aggregate principal amount of all Revolving
Credit Loans made by all Lenders plus (y) the outstanding aggregate principal
amount of all Competitive Loans made by all Lenders exceed (B) the Total
Revolving Credit Commitment and (ii) at all times, the outstanding aggregate
principal amount of all Revolving Loans made by each Lender shall equal the
product of (A) the percentage which its Revolving Credit Commitment represents
of the Total Revolving Credit Commitment times (B) the outstanding aggregate
principal amount of all Revolving Loans.
Within the foregoing limits, a Borrower may borrow, pay or
prepay and reborrow Revolving Loans on or after the Closing Date and prior to
the Revolving Credit Maturity Date, subject to the terms, conditions and
limitations set forth herein.
SECTION 2.02. Loans. (a) Each Revolving Loan shall be made as
part of a Borrowing consisting of Revolving Loans made by the Lenders ratably in
accordance with their applicable Revolving Credit Commitments; provided,
however, that the failure of any Lender to make any Revolving Loan shall not in
itself relieve any other Lender of its obligation to lend hereunder (it being
understood, however, that no Lender shall be responsible for the failure of any
other Lender to make any Loan required to be made by such other Lender). Each
Competitive Loan shall be made in accordance with the procedures set forth in
Section 2.03. The Loans comprising any Borrowing shall be in an aggregate
principal amount which is (i) an integral multiple of $1,000,000 and not less
than
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$5,000,000 or (ii) equal to the remaining available balance of the applicable
Commitments.
(b) Subject to Sections 2.09 and 2.13, each Competitive
Borrowing shall be comprised entirely of Eurodollar Competitive Loans or Fixed
Rate Loans, and each other Borrowing shall be comprised entirely of ABR Loans or
Eurodollar Loans as the Borrower may request pursuant to Section 2.03 or 2.04,
as applicable. Each Lender may at its option make any Eurodollar Loan by causing
any domestic or foreign branch or Affiliate of such Lender to make such Loan;
provided that any exercise of such option shall not affect the obligation of a
Borrower to repay such Loan in accordance with the terms of this Agreement.
Borrowings of more than one Type may be outstanding at the same time; provided,
however, that a Borrower shall not be entitled to request any Borrowing which,
if made, would result in more than five Eurodollar Borrowings outstanding
hereunder at any time. For purposes of the foregoing, Borrowings having
different Interest Periods, regardless of whether they commence on the same
date, shall be considered separate Borrowings.
(c) Subject to paragraph (f) below, each Lender shall make
each Loan to be made by it hereunder on the proposed date thereof by wire
transfer to such account as the Administrative Agent may designate in federal
funds not later than 11:00 a.m., New York City time, and the Administrative
Agent shall by 12:00 (noon), New York City time, credit the amounts so received
to an account with the Administrative Agent designated by the applicable
Borrower in the applicable Borrowing Request or Competitive Bid Request, which
account must be in the name of the Borrower or, if a Borrowing shall not occur
on such date because any condition precedent herein specified shall not have
been met, return the amounts so received to the respective Lenders.
(d) Unless the Administrative Agent shall have received notice
from a Lender prior to the date of any Borrowing that such Lender will not make
available to the Administrative Agent such Lender's portion of such Borrowing,
the Administrative Agent may assume that such Lender has made such portion
available to the Administrative Agent on the date of such Borrowing in
accordance with paragraph (c) above and the Administrative Agent may, in
reliance upon such assumption, make available to the Borrower on such date a
corresponding amount. If the Administrative Agent shall have so made funds
available then, to the extent that such Lender shall not have made such portion
available to the Administrative Agent, such Lender and the applicable Borrower
severally agree to repay to the Administrative Agent, in the case of such
Lender, forthwith on demand and, in the case of the applicable Borrower, within
two Business Days of demand, such corresponding amount together with interest
thereon, for each day from the date such amount is made available to such
Borrower until the date such amount is repaid to the Administrative Agent at (i)
in the case of such
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Borrower, the interest rate applicable at the time to the Loans comprising such
Borrowing and (ii) in the case of such Lender, a rate determined by the
Administrative Agent to represent its cost of overnight or short-term funds
(which determination shall be conclusive absent manifest error). If such Lender
shall repay to the Administrative Agent such corresponding amount, such amount
shall constitute such Lender's Loan as part of such Borrowing for purposes of
this Agreement.
(e) Notwithstanding any other provision of this Agreement, a
Borrower shall not be entitled to request any Borrowing if the Interest Period
requested with respect thereto would end after the Revolving Credit Maturity
Date.
(f) A Borrower may refinance all or any part of a Borrowing
with another Borrowing, subject to the conditions and limitations set forth in
this Agreement (including the condition that the Aggregate Revolving Credit
Exposure after giving effect thereto will not exceed the Total Revolving Credit
Commitment). Any Borrowing or part thereof so refinanced shall be deemed to be
repaid or prepaid in accordance with the applicable provisions of this Agreement
with the proceeds of the new Borrowing, and the proceeds of such new Borrowing,
to the extent they do not exceed the principal amount of the Borrowing being
refinanced, shall not be paid by the Lenders to the Administrative Agent or by
the Administrative Agent to such Borrower pursuant to paragraph (c) above.
SECTION 2.03. Competitive Bid Procedure. (a) In order to
request Competitive Bids, a Borrower shall hand deliver or telecopy to the
Administrative Agent a duly completed Competitive Bid Request (i) in the case of
a Eurodollar Competitive Borrowing, not later than 10:00 a.m., New York City
time, four Business Days before the proposed date of such Borrowing and (ii) in
the case of a Fixed Rate Borrowing, not later than 10:00 a.m., New York City
time, one Business Day before the proposed date of such Borrowing. A Competitive
Bid Request shall not be made within five Business Days after the date of any
previous Competitive Bid Request. No ABR Loan shall be requested in, or made
pursuant to, a Competitive Bid Request. A Competitive Bid Request that does not
conform to a form approved by the Administrative Agent may be rejected by the
Administrative Agent, and the Administrative Agent shall notify the applicable
Borrower of such rejection as promptly as practicable. Each Competitive Bid
Request shall refer to this Agreement and specify (i) whether the Borrowing
being requested is to be a Eurodollar Borrowing or a Fixed Rate Borrowing; (ii)
the date of such Borrowing (which shall be a Business Day); (iii) the number and
the location of the account to which funds are to be disbursed (which shall be
an account that complies with the requirements of Section 2.02(c)); (iv) the
aggregate principal amount of such Borrowing, which shall be a minimum of
$5,000,000 and an integral
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multiple of $1,000,000; and (v) the Interest Period with respect thereto (which
may not end after the Revolving Credit Maturity Date). Promptly after its
receipt of a Competitive Bid Request that is not rejected, the Administrative
Agent shall by telecopy in a form Approved by the Administrative Agent invite
the Revolving Credit Lenders to bid to make Competitive Loans pursuant to the
Competitive Bid Request.
(b) Each Revolving Credit Lender may make one or more
Competitive Bids to the applicable Borrower responsive to a Competitive Bid
Request. Each Competitive Bid by a Revolving Credit Lender must be received by
the Administrative Agent by telecopy in a form approved by the Administrative
Agent, (i) in the case of a Eurodollar Competitive Borrowing, not later than
9:30 a.m., New York City time, three Business Days before the proposed date of
such Competitive Borrowing, and (ii) in the case of a Fixed Rate Borrowing, not
later than 9:30 a.m., New York City time, on the proposed date of such
Competitive Borrowing. Competitive Bids that do not conform to the form of
approved by the Administrative Agent may be rejected by the Administrative
Agent, and the Administrative Agent shall notify the applicable Lender as
promptly as practicable. Each Competitive Bid shall refer to this Agreement and
specify (x) the principal amount (which shall be a minimum of $5,000,000 and an
integral multiple of $1,000,000 and which may equal the entire principal amount
of the Competitive Borrowing requested by the Borrower) of the Competitive Loan
or Loans that the Revolving Credit Lender is willing to make, (y) the
Competitive Bid Rate or Rates at which the Revolving Credit Lender is prepared
to make such Loan or Loans and (z) the Interest Period applicable to such Loan
or Loans and the last day thereof.
(c) The Administrative Agent shall promptly notify the
applicable Borrower by telecopy of the Competitive Bid Rate and the principal
amount of each Competitive Loan in respect of which a Competitive Bid shall have
been made and the identity of the Revolving Credit Lender that shall have made
each bid.
(d) The applicable Borrower may, subject only to the
provisions of this paragraph (d), accept or reject any Competitive Bid. Such
Borrower shall notify the Administrative Agent by telephone, confirmed by
telecopy in the form of a Competitive Bid Accept/Reject Letter, whether and to
what extent it has decided to accept or reject each Competitive Bid, (x) in the
case of a Eurodollar Competitive Borrowing, not later than 10:30 a.m., New York
City time, three Business Days before the date of the proposed Competitive
Borrowing, and (y) in the case of a Fixed Rate Borrowing, not later than 10:30
a.m., New York City time, on the proposed date of the Competitive Borrowing;
provided, however, that (i) the failure of such Borrower to give such notice
shall be deemed to be a rejection of each Competitive Bid, (ii) such Borrower
shall not accept a Competitive Bid made at a particular Competitive Bid
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Rate if such Borrower has decided to reject a Competitive Bid made at a lower
Competitive Bid Rate, (iii) the aggregate amount of the Competitive Bids
accepted by such Borrower shall not exceed the principal amount specified in the
Competitive Bid Request, (iv) if such Borrower shall accept a Competitive Bid or
Bids made at a particular Competitive Bid Rate but the amount of such
Competitive Bid or Bids would cause the total amount to be accepted by such
Borrower to exceed the amount specified in the Competitive Bid Request, then
such Borrower shall accept a portion of such Competitive Bid or Bids in an
amount equal to the amount specified in the Competitive Bid Request less the
amount of all other Competitive Bids so accepted, which acceptance, in the case
of multiple Competitive Bids at such Competitive Bid Rate, shall be made pro
rata in accordance with the amount of each such Bid, and (v) except pursuant to
clause (iv) above, no Competitive Bid shall be accepted for a Competitive Loan
unless such Competitive Loan is in a minimum principal amount of $5,000,000 and
an integral multiple of $1,000,000; provided further, however, that if a
Competitive Loan must be in an amount less than $5,000,000 because of the
provisions of clause (iv) above, such Competitive Loan may be for a minimum of
$1,000,000 or any integral multiple thereof, and in calculating the pro rata
allocation of acceptances of portions of multiple Competitive Bids at a
particular Competitive Bid Rate pursuant to clause (iv) the amounts shall be
rounded to integral multiples of $1,000,000 in a manner determined by such
Borrower. A notice given by any Borrower pursuant to this paragraph (d) shall be
irrevocable.
(e) The Administrative Agent shall promptly notify each
bidding Revolving Credit Lender by telecopy whether or not its Competitive Bid
has been accepted (and, if so, in what amount and at what Competitive Bid Rate),
and each successful bidder will thereupon become bound, upon the terms and
subject to the conditions hereof, to make the Competitive Loan in respect of
which its Competitive Bid has been accepted.
(f) No Competitive Borrowing shall be requested or made
hereunder if after giving effect thereto any of the conditions set forth in
clause (i) of Section 2.01 would not be met.
(g) If the Administrative Agent shall elect to submit a
Competitive Bid in its capacity as a Revolving Credit Lender, it shall submit
such Competitive Bid directly to the applicable Borrower at least one quarter of
an hour earlier than the time by which the other Revolving Credit Lenders are
required to submit their Competitive Bids to the Administrative Agent pursuant
to paragraph (b) above.
SECTION 2.04. Borrowing Procedure. (a) In order to request a
Borrowing (other than a Competitive Loan, as to which this Section 2.04 shall
not apply), the applicable Borrower shall hand deliver or telecopy to the
Administrative Agent a duly completed
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Borrowing Request in a form approved by the Administrative Agent (a) in the case
of a Eurodollar Borrowing, not later than 11:00 a.m., New York City time, three
Business Days before a proposed Borrowing, and (b) in the case of an ABR
Borrowing, not later than 10:00 a.m., New York City time, on the day of such
Borrowing; provided, however, that Borrowing Requests with respect to Borrowings
to be made on the Closing Date may, at the discretion of the Administrative
Agent, be delivered later than the times specified above. Each Borrowing Request
shall be irrevocable, signed by or on behalf of the applicable Borrower and
shall specify the following information: (i) whether the Borrowing then being
requested is to be a Eurodollar Borrowing or an ABR Borrowing; (ii) the date of
such Borrowing (which shall be a Business Day), (iii) the number and location of
the account to which funds are to be disbursed (which shall be an account that
complies with the requirements of Section 2.02(c)); (iv) the amount of such
Borrowing; and (v) if such Borrowing is to be a Eurodollar Borrowing, the
Interest Period with respect thereto; provided, however, that, notwithstanding
any contrary specification in any Borrowing Request, each requested Borrowing
shall comply with the requirements set forth in Section 2.02. If no election as
to the Type of Borrowing is specified in any such notice, then the requested
Borrowing shall be an ABR Borrowing. If no Interest Period with respect to any
Eurodollar Borrowing is specified in any such notice, then the Borrower shall be
deemed to have selected an Interest Period of one month's duration. The
Administrative Agent shall promptly (and in any event on the same day that the
Administrative Agent receives such notice, if received by 1:00 p.m., New York
City time, on such day) advise the applicable Lenders of any notice given
pursuant to this Section 2.04 (and the contents thereof), of each Lender's
portion of the requested Borrowing.
(b) If the applicable Borrower shall not have delivered a
Borrowing Request in accordance with this Section 2.04 prior to the end of the
Interest Period then in effect for any Revolving Credit Borrowing and requesting
that such Borrowing be refinanced, then such Borrower shall (unless such
Borrower has notified the Administrative Agent, not less than three Business
Days prior to the end of such Interest Period, that such Borrowing is to be
repaid at the end of such Interest Period) be deemed to have delivered a
Borrowing Request requesting that such Borrowing be refinanced with a new
Borrowing of equivalent amount, and such new Borrowing shall be an ABR
Borrowing.
SECTION 2.05. Evidence of Debt; Repayment of Loans. (a) The
outstanding principal balance of each Loan shall be payable on the earlier of
the last day of the Interest Period applicable to such Loan and the Revolving
Credit Maturity Date. Each Loan shall bear interest from the date of the first
Borrowing hereunder on the outstanding principal balance thereof as set forth in
Section 2.07.
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(b) Each Lender shall maintain in accordance with its usual
practice an account or accounts evidencing the indebtedness to such Lender
resulting from each Loan made by such Lender from time to time, including the
amounts of principal and interest payable and paid such Lender from time to time
under this Agreement.
(c) The Administrative Agent shall maintain accounts in which
it will record (i) the amount of each Loan made hereunder, the Type of each Loan
made and the Interest Period applicable thereto, (ii) the amount of any
principal or interest due and payable or to become due and payable from the
Borrower to each Lender hereunder and (iii) the amount of any sum received by
the Administrative Agent hereunder from the Borrower and each Lender's share
thereof.
(d) The entries made in the accounts maintained pursuant to
paragraphs (b) and (c) of this Section 2.05 shall be prima facie evidence of the
existence and amounts of the obligations therein recorded; provided, however,
that the failure of any Lender or the Administrative Agent to maintain such
accounts or any error therein shall not in any manner affect the obligations of
the Borrower to repay the Loans in accordance with their terms.
(e) Notwithstanding any other provision of this Agreement, in
the event any Lender shall request and receive a Note payable to such Lender and
its registered assigns (which Note shall be consistent in all respects with this
Agreement), the interests represented by that Note shall at all times (including
after any assignment of all or part of such interests pursuant to Section 9.04)
be represented by one or more Notes payable to the payee named therein or its
registered assigns.
SECTION 2.06. Fees. (a) The Borrowers agree to pay to each
Lender, through the Administrative Agent, on the last Business Day of March,
June, September and December in each year, and on the date on which the
Commitment of such Lender shall be terminated as provided herein, a facility fee
(a "Facility Fee") equal to the Applicable Rate per annum on the average daily
amount of the Revolving Credit Commitment of such Lender (whether used or
unused) during the preceding quarter (or shorter period commencing with the date
hereof or ending with the Revolving Credit Maturity Date or the date on which
the Revolving Credit Commitment of such Lender shall be terminated). All
Facility Fees shall be computed on the basis of the actual number of days
elapsed in a year of 360 days. The Facility Fee due to each Lender shall
commence to accrue on the date of this Agreement and shall cease to accrue on
the date on which the Revolving Credit Commitment of such Lender shall be
terminated as provided herein.
(b) Each Borrower agrees to pay to each Lender, through the
Administrative Agent, on the last Business Day of March, June, September and
December in each year, and on the date on which all
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the Loans shall have been paid in full and all the Commitments shall be
terminated as provided herein, a utilization fee (a "Utilization Fee") equal to
0.0625% per annum on the average daily amount of Loans made to such Borrower and
outstanding during the preceding quarter (or shorter period commencing with the
date hereof or ending with the date on which all the Loans shall have been paid
in full and all the Commitments shall be terminated), if during such preceding
quarter (or such shorter period), the average daily amount of all Loans
outstanding exceeded 50% of the average amount of the Total Revolving Credit
Commitment in effect during such period. All Utilization Fees shall be computed
on the basis of the actual number of days elapsed in a year of 360 days.
(c) The Borrowers agree to pay to the Administrative Agent,
for its own account, the fees set forth in the Fee Letter at the times specified
therein (the "Administrative Agent Fees").
(d) All Fees shall be paid on the dates due, in immediately
available funds, to the Administrative Agent for distribution, if and as
appropriate, among the Lenders. Once paid, none of the Fees shall be refundable
under any circumstances.
SECTION 2.07. Interest on Loans. (a) Subject to the provisions
of Section 2.08, the Loans comprising each ABR Borrowing shall bear interest
(computed on the basis of the actual number of days elapsed over a year of 365
or 366 days, as the case may be, when determined by reference to the Prime Rate
and over a year of 360 days at all other times) at a rate per annum equal to the
Alternate Base Rate.
(b) Subject to the provisions of Section 2.08, the Loans
comprising each Eurodollar Borrowing shall bear interest (computed on the basis
of the actual number of days elapsed over a year of 360 days) at a rate per
annum equal to (i) in the case of each Eurodollar Revolving Loan, the LIBO Rate
for the Interest Period in effect for such Borrowing plus the Applicable Rate,
and (ii) in the case of each Eurodollar Competitive Loan, the LIBO Rate for the
Interest Period in effect for such Borrowing plus the Margin offered by the
Lender making such Loan and accepted by the applicable Borrower pursuant to
Section 2.03.
(c) Subject to the provisions of Section 2.08, Fixed Rate
Loans shall bear interest (computed on the basis of the actual number of days
elapsed over a year of 360 days) at a rate per annum equal to the fixed rate of
interest offered by the Lender making such Loan and accepted by the applicable
Borrower pursuant to Section 2.03.
(d) Interest on each Loan shall be payable on the Interest
Payment Dates applicable to such Loan except as otherwise provided in this
Agreement. The applicable Alternate Base Rate or
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LIBO Rate for each Interest Period or day within an Interest Period, as the case
may be, shall be determined by the Administrative Agent, and such determination
shall be conclusive absent manifest error.
SECTION 2.08. Default Interest. If a Borrower shall default in
the payment of the principal of or interest on any Loan or any other amount
becoming due hereunder, by acceleration or otherwise, such Borrower shall on
demand from time to time pay interest, to the extent permitted by law, on such
defaulted amount up to (but not including) the date of actual payment (after as
well as before judgment) at a rate per annum (computed on the basis of the
actual number of days elapsed over a year of 360 days) equal to the sum of the
Alternate Base Rate, plus the margin from time to time applicable for purposes
of determining the interest rate on Revolving Credit Borrowings comprised of ABR
Loans under Section 2.07 plus 2.00%.
SECTION 2.09. Alternate Rate of Interest. In the event, and on
each occasion, that on the day two Business Days prior to the commencement of
any Interest Period for a Eurodollar Borrowing the Administrative Agent shall
have determined that Dollar deposits in the principal amount of the Loans
comprising such Borrowing are not generally available in the London interbank
market, or that the rates at which such Dollar deposits are being offered will
not adequately and fairly reflect the cost to any Lender of making or
maintaining its Eurodollar Loan during such Interest Period, or that reasonable
means do not exist for ascertaining the LIBO Rate, the Administrative Agent
shall, as soon as practicable thereafter, give written or telecopy notice of
such determination to the Borrowers and the Lenders. In the event of any such
determination, until the Administrative Agent shall have advised the Borrowers
and the Lenders that the circumstances giving rise to such notice no longer
exist, (i) any request by a Borrower for a Eurodollar Revolving Credit Borrowing
pursuant to Section 2.04 shall be deemed to be a request for an ABR Borrowing
and (ii) any request by a Borrower for a Eurodollar Competitive Borrowing
pursuant to Section 2.03 shall be of no force and effect and shall be denied by
the Administrative Agent. Each determination by the Administrative Agent
hereunder shall be conclusive absent manifest error.
SECTION 2.10. Termination and Reduction of Commitments.
(a) The Revolving Credit Commitments shall be automatically terminated on the
Revolving Credit Maturity Date.
(b) Upon at least three Business Days' prior irrevocable
written or telecopy notice to the Administrative Agent, the Borrowers may at any
time in whole permanently terminate, or from time to time in part permanently
reduce, the Revolving Credit Commitments; provided, however, that (i) each
partial reduction of the Revolving Credit Commitments shall be in an integral
multiple of $1,000,000 and in a minimum principal amount of $5,000,000 and
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(ii) the Total Revolving Credit Commitment shall not be reduced to an amount
that is less than the sum of the Aggregate Revolving Credit Exposure and the
aggregate outstanding amount of the Competitive Loans at the time.
(c) Each reduction in the Revolving Credit Commitments
hereunder shall be made ratably among the Lenders in accordance with their
respective Commitments. The Borrowers shall pay to the Administrative Agent for
the account of the Lenders, on the date of each termination or reduction, the
Facility Fees on the amount of the Commitments so terminated or reduced accrued
to the date of such termination or reduction.
SECTION 2.11. Prepayment. (a) Each Borrower shall have the
right at any time and from time to time to prepay any Borrowing (other than a
Competitive Borrowing) consisting of Loans made to such Borrower, in whole or in
part, upon at least three Business Days' prior written or telecopy notice (or
telephone notice promptly confirmed by written or telecopy notice) to the
Administrative Agent before 11:00 a.m., New York City time; provided, however,
that each partial prepayment shall be in an amount which is an integral multiple
of $1,000,000 and not less than $5,000,000. The Borrowers shall not have the
right to prepay any Competitive Borrowing.
(b) In the event of any termination of the Revolving Credit
Commitments, each Borrower shall repay or prepay all its outstanding Revolving
Credit Borrowings on the date of such termination. In the event of any partial
reduction of the Revolving Credit Commitments, then (i) at or prior to the
effective date of such reduction, the Administrative Agent shall notify the
Borrowers and the Revolving Credit Lenders of the Aggregate Revolving Credit
Exposure and (ii) if the Aggregate Revolving Credit Exposure would exceed the
Total Revolving Credit Commitment after giving effect to such reduction, then
the Borrowers shall, on the date of such reduction, repay or prepay Revolving
Credit Borrowings in an amount sufficient to eliminate such excess.
(c) Each notice of prepayment shall specify the prepayment
date and the principal amount of each Borrowing (or portion thereof) to be
prepaid, shall be irrevocable and shall commit the applicable Borrower to prepay
such Borrowing by the amount stated therein on the date stated therein. All
prepayments under this Section 2.11 shall be subject to Section 2.14 but
otherwise without premium or penalty. All prepayments under this Section 2.11
shall be accompanied by accrued interest on the principal amount being prepaid
to the date of payment.
SECTION 2.12. Reserve Requirements; Change in Circumstances.
(a) If after the date of this Agreement any change in applicable law or
regulation or in the interpretation or administration thereof by any
Governmental Authority charged with
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the interpretation or administration thereof (whether or not having the force of
law) shall change the basis of taxation of payments to any Lender of the
principal of or interest on any Eurodollar Loan or Fixed Rate Loan made by such
Lender or any Fees or other amounts payable hereunder (other than changes in
respect of taxes imposed on the overall net income of such Lender by the
jurisdiction in which such Lender has its principal office or by any political
subdivision or taxing authority therein), or shall impose, modify or deem
applicable any reserve, special deposit or similar requirement against assets
of, deposits with or for the account of or credit extended by such Lender, or
shall impose on such Lender or the London interbank market (or other relevant
interbank market) any other condition affecting this Agreement or Eurodollar
Loans or Fixed Rate Loans made by such Lender, and the result of any of the
foregoing shall be to increase the cost to such Lender of making or maintaining
any Eurodollar Loan, or to reduce the amount of any sum received or receivable
by such Lender hereunder (whether of principal, interest or otherwise) by an
amount deemed by such Lender to be material, then each Borrower will pay to such
Lender upon demand such additional amount or amounts as will compensate such
Lender for such additional costs incurred or reduction suffered.
(b) If any Lender shall have determined that the adoption
after the date hereof of any law, rule, regulation, agreement or guideline
regarding capital adequacy, or any change after the date hereof in any such law,
rule, regulation, agreement or guideline (whether such law, rule, regulation,
agreement or guideline has been adopted) or in the interpretation or
administration thereof by any Governmental Authority charged with the
interpretation or administration thereof, or compliance by any Lender (or any
lending office of such Lender) or any Lender's holding company with any request
or directive regarding capital adequacy (whether or not having the force of law)
of any Governmental Authority has or would have the effect of reducing the rate
of return on such Lender's capital or on the capital of such Lender's holding
company, if any, as a consequence of this Agreement or the Loans made by such
Lender pursuant hereto to a level below that which such Lender or such Lender's
holding company could have achieved but for such applicability, adoption, change
or compliance (taking into consideration such Lender's policies and the policies
of such Lender's holding company with respect to capital adequacy) by an amount
deemed by such Lender to be material, then from time to time each Borrower shall
pay to such Lender such additional amount or amounts as will compensate such
Lender or such Lender's holding company for any such reduction suffered.
(c) A certificate of a Lender setting forth the amount or
amounts necessary to compensate such Lender or its holding company as specified
in paragraph (a) or (b) above shall be delivered to the Borrowers and shall be
conclusive absent manifest error. Each Borrower shall pay each Lender the amount
shown as due
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from such Borrower on any such certificate delivered by it within 10 days after
its receipt of the same.
(d) Failure or delay on the part of any Lender to demand
compensation for any increased costs or reduction in amounts received or
receivable or reduction in return on capital shall not constitute a waiver of
such Lender's right to demand such compensation. The protection of this Section
shall be available to each Lender regardless of any possible contention of the
invalidity or inapplicability of the law, rule, regulation, agreement, guideline
or other change or condition which shall have occurred or been imposed.
Notwithstanding any other provision of this Section, no Lender shall be entitled
to demand compensation hereunder in respect of any Competitive Loan if it shall
have been aware of the event or circumstance giving rise to such demand at the
time it submitted the Competitive Bid pursuant to which such Loan was made.
SECTION 2.13. Change in Legality. (a) Notwithstanding any
other provision herein, if, after the date hereof, any change in any law or
regulation or in the interpretation thereof by any Governmental Authority
charged with the administration or interpretation thereof shall make it unlawful
for any Lender to make or maintain any Eurodollar Loan or to give effect to its
obligations as contemplated hereby with respect to any Eurodollar Loan, then, by
written notice to the Borrowers and to the Administrative Agent:
(i) such Lender may declare that Eurodollar Loans will not
thereafter (for the duration of such unlawfulness or impracticability)
be made by such Lender hereunder, whereupon such Lender shall not
submit a Competitive Bid in response to a request for a Eurodollar
Competitive Loan and any request for a Eurodollar Borrowing, shall, as
to such Lender only, be deemed a request for an ABR Loan unless such
declaration shall be subsequently withdrawn (or, if a Loan to a
Borrower cannot be made for the reasons specified above, such request
shall be deemed to have been withdrawn); and
(ii) such Lender may require that all outstanding Eurodollar
Loans made by it be converted to ABR Loans, in which event all such
Eurodollar Loans shall be automatically converted to ABR Loans as of
the effective date of such notice as provided in paragraph (b) below.
In the event any Lender shall exercise its rights under (i) or (ii) above, all
payments and prepayments of principal which would otherwise have been applied to
repay the Eurodollar Loans that would have been made by such Lender or the
converted Eurodollar Loans of such Lender shall instead be applied to repay the
ABR Loans made by such Lender in lieu of, or resulting from the conversion of,
such Eurodollar Loans.
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(b) For purposes of this Section 2.13, a notice to a Borrower
by any Lender shall be effective as to each Eurodollar Loan, if lawful, on the
last day of the Interest Period currently applicable to such Eurodollar Loan; in
all other cases such notice shall be effective on the date of receipt by such
Borrower.
SECTION 2.14. Indemnity. The Borrowers shall indemnify each
Lender against any loss or expense which such Lender may sustain or incur as a
consequence of (a) any event, other than a default by such Lender in the
performance of its obligations hereunder, which results in (i) such Lender
receiving or being deemed to receive any amount on account of the principal of
any Loan prior to the end of the Interest Period in effect therefor or (ii) any
Loan to be made by such Lender not being made after notice of such Loan shall
have been given by a Borrower hereunder (any of the events referred to in this
clause (a) being called a "Breakage Event") or (b) any default in the making of
any payment or prepayment required to be made hereunder; provided, however, that
any Breakage Event caused by the prepayment by a Borrower of an ABR Loan shall
not result in such Borrower becoming liable to such Lender pursuant to this
Section 2.14. In the case of any Breakage Event, such loss shall include an
amount equal to the excess, as reasonably determined by such Lender, of (i) its
cost of obtaining funds for the Loan which is the subject of such Breakage Event
for the period from the date of such Breakage Event to the last day of the
Interest Period in effect (or which would have been in effect) for such Loan
over (ii) the amount of interest likely to be realized by such Lender in
redeploying the funds released or not utilized by reason of such Breakage Event
for such period. A certificate of any Lender setting forth any amount or amounts
which such Lender is entitled to receive pursuant to this Section shall be
delivered to the applicable Borrower and shall be conclusive absent manifest
error.
SECTION 2.15. Pro Rata Treatment. Except as provided in the
succeeding sentence with respect to Competitive Borrowings and as required under
Section 2.13, each Borrowing, each payment or prepayment of principal of any
Borrowing, each payment of interest on the Loans, each payment of the Facility
Fees, each reduction of the Revolving Credit Commitments and each refinancing of
any Borrowing with a Borrowing of any Type shall be allocated pro rata among the
Lenders in accordance with their respective applicable Commitments (or, if such
Commitments shall have expired or been terminated, in accordance with the
respective principal amounts of their outstanding Loans). Each payment of
principal of any Competitive Borrowing shall be allocated pro rata among the
Lenders participating in such Borrowing in accordance with the respective
principal amounts of their outstanding Competitive Loans comprising such
Borrowing. Each payment of interest on any Competitive Borrowing shall be
allocated pro rata among the Lenders participating in such Borrowing in
accordance with the respective
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amounts of accrued and unpaid interest on their outstanding Competitive Loans
comprising such Borrowing. For purposes of determining the available Revolving
Credit Commitment of each Lender at any time, each outstanding Competitive
Borrowing shall be deemed to have utilized the Revolving Credit Commitments of
the Lenders (including those Lenders which shall not have made Loans as part of
such Competitive Borrowing) pro rata in accordance with such respective
Revolving Credit Commitments. Each Lender agrees that in computing such Lender's
portion of any Borrowing to be made hereunder, the Administrative Agent may, in
its discretion, round each Lender's percentage of such Borrowing, computed in
accordance with Section 2.01, to the next higher or lower whole Dollar amount.
SECTION 2.16. Sharing of Setoffs. Each Lender agrees that if
it shall, through the exercise of a right of banker's lien, setoff or
counterclaim against a Borrower, or pursuant to a secured claim under Section
506 of Title 11 of the United States Code or other security or interest arising
from, or in lieu of, such secured claim, received by such Lender under any
applicable bankruptcy, insolvency or other similar law or otherwise, or by any
other means, obtain payment (voluntary or involuntary) in respect of any Loan or
Loans as a result of which the unpaid principal portion of its Loans shall be
proportionately less than the unpaid principal portion of the Loans of any other
Lender, it shall be deemed simultaneously to have purchased from such other
Lender at face value, and shall promptly pay to such other Lender the purchase
price for, a participation in the Loans of such other Lender, so that the
aggregate unpaid principal amount of the Loans and participations in Loans held
by each Lender shall be in the same proportion to the aggregate unpaid principal
amount of all Loans then outstanding as the principal amount of its Loans prior
to such exercise of banker's lien, setoff or counterclaim or other event was to
the principal amount of all Loans outstanding prior to such exercise of banker's
lien, setoff or counterclaim or other event; provided, however, that, if any
such purchase or purchases or adjustments shall be made pursuant to this Section
and the payment giving rise thereto shall thereafter be recovered, such purchase
or purchases or adjustments shall be rescinded to the extent of such recovery
and the purchase price or prices or adjustment restored without interest. The
Borrowers expressly consent to the foregoing arrangements and agree that any
Lender holding a participation in a Loan deemed to have been so purchased may
exercise any and all rights of banker's lien, setoff or counterclaim with
respect to any and all moneys owing by a Borrower to such Lender by reason
thereof as fully as if such Lender had made a Loan directly to such Borrower in
the amount of such participation.
SECTION 2.17. Payments. (a) The Borrowers shall make each
payment (including principal of or interest on any Borrowing or any Fees or
other amounts) hereunder and under any other Loan Document not later than 12:00
(noon), New York City time, on the
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date when due in immediately available funds by wire transfer to such account as
the Administrative Agent may designate. Each such payment shall be made to the
Administrative Agent at its offices at ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇. Each
such payment shall be made in Dollars.
(b) Whenever any payment (including principal of or interest
on any Borrowing or any Fees or other amounts) hereunder or under any other Loan
Document shall become due, or otherwise would occur, on a day that is not a
Business Day, such payment may be made on the next succeeding Business Day, and
such extension of time shall in such case be included in the computation of
interest or Fees, if applicable.
SECTION 2.18. Taxes. (a) Any and all payments by a Borrower
hereunder and under any other Loan Document shall be made, in accordance with
Section 2.17, free and clear of and without deduction for any and all current or
future taxes, levies, imposts, deductions, charges or withholdings, and all
liabilities with respect thereto, excluding (i) income taxes imposed on the net
income of the Administrative Agent or any Lender (or any transferee or assignee
thereof, including a participation holder (any such entity a "Transferee")) and
(ii) franchise taxes imposed on the net income of the Administrative Agent or
any Lender (or Transferee), in each case by the jurisdiction under the laws of
which the Administrative Agent or such Lender (or Transferee) is organized or
any political subdivision thereof (all such nonexcluded taxes, levies, imposts,
deductions, charges, withholdings and liabilities, collectively or individually,
being called "Taxes"). If a Borrower shall be required to deduct any Taxes from
or in respect of any sum payable hereunder or under any other Loan Document to
the Administrative Agent or any Lender (or any Transferee), (i) the sum payable
shall be increased by the amount (an "additional amount") necessary so that
after making all required deductions (including deductions applicable to
additional sums payable under this Section 2.18) the Administrative Agent or
such Lender (or Transferee), as the case may be, shall receive an amount equal
to the sum it would have received had no such deductions been made, (ii) such
Borrower shall make such deductions and (iii) such Borrower shall pay the full
amount deducted to the relevant Governmental Authority in accordance with
applicable law.
(b) In addition, each Borrower agrees to bear and to pay to
the relevant Governmental Authority in accordance with applicable law any
current 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 any other Loan Document or from the execution, delivery or registration
of, or otherwise with respect to, this Agreement or any other Loan Document
("Other Taxes").
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(c) Each Borrower will indemnify the Administrative Agent and
each Lender (or Transferee) for the full amount of Taxes and Other Taxes paid by
the Administrative Agent or such Lender (or Transferee), as the case may be, and
any liability (including penalties, interest and expenses (including reasonable
attorney's fees and expenses)) arising therefrom or with respect thereto,
whether or not such Taxes or Other Taxes were correctly or legally asserted by
the relevant Governmental Authority. A certificate as to the amount of such
payment or liability prepared by the Administrative Agent or a Lender (or
Transferee), or the Administrative Agent on its behalf, absent manifest error,
shall be final, conclusive and binding for all purposes. Such indemnification
shall be made within 30 days after the date the Administrative Agent or any
Lender (or Transferee), as the case may be, makes written demand therefor.
(d) If the Administrative Agent or a Lender (or Transferee)
shall become aware that it is entitled to claim a refund from a Governmental
Authority in respect of Taxes or Other Taxes as to which it has been indemnified
by the Borrowers, or with respect to which a Borrower has paid additional
amounts, pursuant to this Section 2.18, it shall promptly notify such Borrower
of the availability of such refund claim and shall, within 30 days after receipt
of a request by such Borrower, make a claim to such Governmental Authority for
such refund at such Borrower's expense. If the Administrative Agent or a Lender
(or Transferee) receives a refund (including pursuant to a claim for refund made
pursuant to the preceding sentence) in respect of any Taxes or Other Taxes as to
which it determines in its sole discretion that it has been indemnified by the
Borrowers or with respect to which a Borrower has paid additional amounts
pursuant to this Section 2.18, it shall within 30 days from the date of such
receipt pay over such refund to such Borrower (but only to the extent of
indemnity payments made, or additional amounts paid, by such Borrower under this
Section 2.18 with respect to the Taxes or Other Taxes giving rise to such
refund), net of all out-of-pocket expenses of the Administrative Agent or such
Lender (or Transferee) and without interest (other than interest paid by the
relevant Governmental Authority with respect to such refund); provided, however,
that such Borrower, upon the request of the Administrative Agent or such Lender
(or Transferee), agrees to repay the amount paid over to such Borrower (plus
penalties, interest or other charges) to the Administrative Agent or such Lender
(or Transferee) in the event the Administrative Agent or such Lender (or
Transferee) is required to repay such refund to such Governmental Authority.
(e) As soon as practicable after the date of any payment of
Taxes or Other Taxes by a Borrower to the relevant Governmental Authority, such
Borrower will deliver to the Administrative Agent, at its address referred to in
Section 9.01, the original or a
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certified copy of a receipt issued by such Governmental Authority evidencing
payment thereof.
(f) Without prejudice to the survival of any other agreement
contained herein, the agreements and obligations contained in this Section 2.18
shall survive the payment in full of the principal of and interest on all Loans
made hereunder.
(g) Each Lender (or Transferee) that is organized under the
laws of a jurisdiction other than the United States, any State thereof or the
District of Columbia (a "Non-U.S. Lender") shall deliver to the Borrowers and
the Administrative Agent two copies of either United States Internal Revenue
Service Form 1001 or Form 4224, or, in the case of a Non-U.S. Lender claiming
exemption from U.S. Federal withholding tax under Section 871(h) or 881(c) of
the Code with respect to payments of "portfolio interest", a Form W-8, or any
subsequent versions thereof or successors thereto (and, if such Non-U.S. Lender
delivers a Form W-8, a certificate representing that such Non-U.S. Lender is not
a bank for purposes of Section 881(c) of the Code, is not a 10-percent
shareholder (within the meaning of Section 871(h)(3)(B) of the Code) of a
Borrower and is not a controlled foreign corporation related to a Borrower
(within the meaning of Section 864(d)(4) of the Code)), properly completed and
duly executed by such Non-U.S. Lender claiming complete exemption from, or
reduced rate of, U.S. Federal withholding tax on payments by a Borrower under
this Agreement and the other Loan Documents. Such forms shall be delivered by
each Non-U.S. Lender on or before the date it becomes a party to this Agreement
(or, in the case of a Transferee that is a participation holder, on or before
the date such participation holder becomes a Transferee hereunder) and on or
before the date, if any, such Non-U.S. Lender changes its applicable lending
office by designating a different lending office (a "New Lending Office"). In
addition, each Non-U.S. Lender shall deliver such forms promptly upon the
obsolescence or invalidity of any form previously delivered by such Non-U.S.
Lender. Notwithstanding any other provision of this Section 2.18(g), a Non-U.S.
Lender shall not be required to deliver any form pursuant to this Section
2.18(g) that such Non-U.S. Lender is not legally able to deliver.
(h) The Borrowers shall not be required to indemnify any
Non-U.S. Lender or to pay any additional amounts to any Non-U.S. Lender, in
respect of United States Federal withholding tax pursuant to paragraph (a) or
(c) above to the extent that (i) the obligation to withhold amounts with respect
to United States Federal withholding tax existed on the date such Non U.S.
Lender became a party to this Agreement (or, in the case of a Transferee that is
a participation holder, on the date such participation holder became a
Transferee hereunder) or, with respect to payments to a New Lending Office, the
date such Non-U.S. Lender designated such New Lending Office with respect to a
Loan; provided, however, that this
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paragraph (h) shall not apply (x) to any Transferee or New Lending Office that
becomes a Transferee or New Lending Office as a result of an assignment,
participation, transfer or designation made at the request of a Borrower and (y)
to the extent the indemnity payment or additional amounts any Transferee, or any
Lender (or Transferee), acting through a New Lending Office, would be entitled
to receive (without regard to this paragraph (h)) do not exceed the indemnity
payment or additional amounts that the person making the assignment,
participation or transfer to such Transferee, or Lender (or Transferee) making
the designation of such New Lending Office, would have been entitled to receive
in the absence of such assignment, participation, transfer or designation or
(ii) the obligation to pay such additional amounts would not have arisen but for
a failure by such Non-U.S. Lender to comply with the provisions of paragraph (g)
above.
(i) Any Lender (or Transferee) claiming any indemnity payment
or additional amounts payable pursuant to this Section 2.18 shall use reasonable
efforts (consistent with legal and regulatory restrictions) to file any
certificate or document reasonably requested in writing by a Borrower or to
change the jurisdiction of its applicable lending office if the making of such a
filing or change would avoid the need for or reduce the amount of any such
indemnity payment or additional amounts that may thereafter accrue and would
not, in the sole determination of such Lender (or Transferee), be otherwise
disadvantageous to such Lender (or Transferee).
(j) Nothing contained in this Section 2.18 shall require any
Lender (or any Transferee) or the Administrative Agent to make available any of
its tax returns (or any other information that it deems to be confidential or
proprietary).
SECTION 2.19. Assignment of Commitments Under Certain
Circumstances. (a) In the event (i) any Lender delivers a certificate requesting
compensation pursuant to Section 2.12, (ii) any Lender delivers a notice
described in Section 2.13 or (iii) a Borrower is required to pay any additional
amount to any Lender or any Governmental Authority on account of any Lender
pursuant to Section 2.18, such Borrower may, at its sole expense and effort,
upon notice to such Lender and the Administrative Agent, require such Lender to
transfer and assign, without recourse (in accordance with and subject to the
restrictions contained in Section 9.04), all of its interests, rights and
obligations under this Agreement to an assignee which shall assume such assigned
obligations (which assignee may be another Lender, if a Lender accepts such
assignment); provided that (x) such assignment shall not conflict with any law,
rule or regulation or order of any court or other Governmental Authority having
jurisdiction, (y) such Borrower shall have received the prior written consent of
the Administrative Agent, which consent shall not unreasonably be
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withheld, and (z) such Borrower or such assignee shall have paid to the affected
Lender in immediately available funds an amount equal to the sum of the
principal of and interest accrued to the date of such payment on the outstanding
Loans of such Lender plus all Fees and other amounts accrued for the account of
such Lender hereunder (including any amounts under Section 2.12 and Section
2.14); provided further that if prior to any such transfer and assignment the
circumstances or event that resulted in such Lender's claim for compensation
under Section 2.12 or notice under Section 2.13 or the amounts paid pursuant to
Section 2.18, as the case may be, cease to cause such Lender to suffer increased
costs or reductions in amounts received or receivable or reduction in return on
capital, or cease to have the consequences specified in Section 2.13, or cease
to result in amounts being payable under Section 2.18, as the case may be
(including as a result of any action taken by such Lender pursuant to paragraph
(b) below), or if such Lender shall waive its right to claim further
compensation under Section 2.12 in respect of such circumstances or event or
shall withdraw its notice under Section 2.13 or shall waive its right to further
payments under Section 2.18 in respect of such circumstances or event, as the
case may be, then such Lender shall not thereafter be required to make any such
transfer and assignment hereunder.
(b) If (i) any Lender shall request compensation under Section
2.12, (ii) any Lender delivers a notice described in Section 2.13 or (iii) a
Borrower is required to pay any additional amount to any Lender or any
Governmental Authority on account of any Lender, pursuant to Section 2.18, then,
such Lender shall exercise reasonable efforts (which shall not require such
Lender to incur an unreimbursed loss or unreimbursed cost or expense or
otherwise take any action inconsistent with its internal policies or suffer any
disadvantage or burden deemed by it to be significant) to assign its rights and
delegate and transfer its obligations hereunder to another of its offices,
branches or affiliates, if such assignment would reduce its claims for
compensation under Section 2.12 or enable it to withdraw its notice pursuant to
Section 2.13 or would reduce amounts payable pursuant to Section 2.18, as the
case may be, in the future. The Borrowers hereby agree to pay all reasonable
costs and expenses incurred by any Lender in connection with any such
assignment, delegation and transfer.
SECTION 2.20. Cross Guaranty. Each Guarantor unconditionally
guarantees, as a primary obligor and not merely as a surety, jointly and
severally with the other Guarantor, (a) the due and punctual payment of (i) the
principal of and premium, if any, and interest on the Loans, when and as due,
whether at maturity, by acceleration, upon one or more dates set for prepayment
or otherwise, and (ii) all other monetary obligations (other than those referred
to in the preceding clause (i)) of the Borrowers under the Loan Documents and
(b) the due and punctual performance of all covenants, agreements, obligations
and liabilities of the Borrowers
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under or pursuant to the Loan Documents (collectively, the "Obligations"). Each
Guarantor further agrees that the Obligations may be extended and renewed, in
whole or in part, without notice to or further assent from it, and that it will
remain bound upon its guarantee notwithstanding any extension or renewal of any
Obligation.
Each Guarantor waives presentment to, demand of payment from
and protest to the Borrowers of any of the Obligations, and also waives notice
of acceptance of its guarantee and notice of protest for nonpayment. The
obligations of a Guarantor hereunder shall not be affected by (a) the failure of
any Lender or the Administrative Agent to assert any claim or demand or to
enforce any right or remedy against the Borrowers or the other Guarantor under
the provisions of this Agreement or any of the other Loan Documents or
otherwise; (b) any rescission, waiver, amendment or modification of any of the
terms or provisions of this Agreement any of the other Loan Documents, any
guarantee or any other agreement; or (c) the failure of any Lender to exercise
any right or remedy against any other guarantor of the Obligations.
Each Guarantor further agrees that its guarantee constitutes a
guarantee of payment when due and not of collection, and waives any right to
require that any resort be had by any Lender to any balance of any deposit
account or credit on the books of any Lender in favor or any Borrower or any
other person.
The obligations of each Guarantor hereunder shall not be
subject to any reduction, limitation, impairment or termination for any reason,
including, without limitation, compromise, and shall not be subject to any
defense or setoff, counterclaim, recoupment or termination whatsoever by reason
of the invalidity, illegality or unenforceability of the Obligations or
otherwise. Without limiting the generality of the foregoing, the obligations of
each Guarantor hereunder shall not be discharged or impaired or otherwise
affected by the failure of the Administrative Agent or any Lender to assert any
claim or demand or to enforce any remedy under this Agreement or under any other
Loan Document, any guarantee or any other agreement, by any waiver or
modification in respect of any thereof, by any default, failure or delay, wilful
or otherwise, in the performance of the Obligations, or by any other act or
omission which may or might in any manner or to any extent vary the risk of such
Guarantor or otherwise operate as a discharge of such Guarantor as a matter of
law or equity.
Each Guarantor further agrees that its guarantee shall
continue to be effective or be reinstated, as the case may be, if at any time
payment, or any part thereof, of principal of or interest on any Obligation is
rescinded or must otherwise be restored by the Administrative Agent or any
Lender upon the bankruptcy or reorganization of any of the Borrowers or
otherwise.
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In furtherance of the foregoing and not in limitation of any
other right which the Administrative Agent or any Lender may have at law or in
equity against any Guarantor by virtue hereof, upon the failure of a Borrower to
pay any Obligation when and as the same shall become due, whether at maturity,
by acceleration, after notice of prepayment or otherwise, each Guarantor hereby
promises to and will, upon receipt of written demand by the Administrative
Agent, forthwith pay, or cause to be paid, in cash the amount of such unpaid
Obligations, and thereupon each Lender shall, in a reasonable manner, assign the
amount of the Obligations owed to it and paid by such Guarantor pursuant to this
guarantee to such Guarantor, such assignment to be pro tanto to the extent to
which the Obligations in question were discharged by such Guarantor, or make
such disposition thereof as such Guarantor shall direct (all without recourse to
any Lender and without any representation or warranty by any Lender).
Upon payment by a Guarantor of any sums as provided above, all
rights of such Guarantor against a Borrower, as the case may be, arising as a
result thereof by way of right of subrogation or otherwise shall in all respects
be subordinated and junior in right of payment to the prior indefeasible payment
in full of all the Obligations to the Lenders.
SECTION 2.21. Extension of Revolving Credit Maturity Date. (a)
The Borrower may, by notice to the Administrative Agent in a the form of Exhibit
C hereto (which shall promptly deliver a copy to each of the Lenders) not less
than 45 days and not more than 60 days prior to the Revolving Credit Maturity
Date at any time in effect (the "Existing Revolving Credit Maturity Date"),
request that the Lenders extend the Revolving Credit Maturity Date for an
additional 364 days from the Existing Revolving Credit Maturity Date. Each
Lender shall, by notice to the Borrower and the Administrative Agent given not
less than 20 and not more than 30 days prior to the Existing Revolving Credit
Maturity Date, advise the Borrower whether or not such Lender agrees to such
extension (and any Lender that does not advise the Borrower on or before the
later of such days shall be deemed to have advised the Borrower that it will not
agree to such extension).
(b) The Borrower shall have the right, on or before the
Existing Revolving Credit Maturity Date, to require any Lender which shall have
advised or been deemed to advise the Borrower that it will not agree to an
extension of the Revolving Credit Maturity Date (each a "Non-Extending Lender")
to transfer without recourse (in accordance with and subject to the restrictions
contained in Section 9.04) all its interests, rights and obligations under this
Agreement to one or more other banks or other financial institutions (any such
bank or other financial institution being called a "Substitute Lender"), which
may include any Lender; provided that (i) such Substitute Lender, if not already
a Lender hereunder, shall
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have been approved by the Administrative Agent (which approval shall not be
unreasonably withheld) and shall execute all such documentation as the
Administrative Agent shall specify to evidence its status as a Lender hereunder,
(ii) such assignment shall become effective as of the Existing Revolving Credit
Maturity Date and (iii) the Borrower or such Substitute Lender shall pay to such
Non-Extending Lender in immediately available funds on the effective date of
such assignment the principal of and interest accrued to the date of payment on
the Loans made by it hereunder and all other amounts accrued for its account or
owed to it hereunder.
(c) If (and only if) Lenders (including Substitute Lenders)
holding Commitments that represent at least 66 2/3% of the Total Commitment on
the 60th day prior to the Existing Revolving Credit Maturity Date shall have
agreed to extend the Existing Revolving Credit Maturity Date (the "Continuing
Lenders"), then the Revolving Credit Maturity Date shall be extended to the date
364 days after the Existing Revolving Credit Maturity Date (provided, that if
such date is not a Business Day, then the Maturity Date shall be extended to the
next preceding Business Day). The decision to agree or withhold agreement to any
extension of the Revolving Credit Maturity Date hereunder shall be at the sole
discretion of each Lender. The Commitment of each Non-Extending Lender (after
giving effect to each transfer and assignment pursuant to paragraph (b) above)
shall terminate, and all Loans of such Non-Extending Lender shall become due and
payable, together with all interest accrued thereon and all other amounts owed
to such Lender hereunder, on the Existing Revolving Credit Maturity Date.
Notwithstanding the foregoing, no extension of the Revolving
Credit Maturity Date shall be effective with respect to any Lender unless, on
and as of the Existing Revolving Credit Maturity Date, the conditions set forth
in paragraphs (b) and (c) of Section 4.01 shall be satisfied (with all
references in such paragraphs to a Credit Event being deemed to be references to
such extension) and the Agent shall have received a certificate to that effect,
dated the Existing Revolving Credit Maturity Date and executed by a Responsible
Officer of the Borrower.
SECTION 2.22. Increase in Commitments. (a) The Borrower may,
by written notice to the Administrative Agent (which shall promptly deliver a
copy to each of the Lenders), request that the total Commitments be increased by
an amount not less than 50,000,000 for any such increase provided that the total
Commitments shall not exceed $500,000,000. Such notice shall set forth the
amount of the requested increase in the total Commitments and the date on which
such increase is requested to become effective (which shall be not less than 30
days or more than 60 days after the date of such notice), and shall offer each
Lender the opportunity to increase its Commitment by its Applicable Percentage
of the proposed increased amount. Each Lender shall, by notice to the Borrower
and the Administrative Agent given not more than 20 days after the date of the
Borrower's notice, either agree to increase its Commitment by
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all or a portion of the offered amount (each Lender so agreeing being an
"Increasing Lender") or decline to increase its Commitment (and any Lender that
does not deliver such a notice within such period of 20 days shall be deemed to
have declined to increase its Commitment) (each Lender so declining or deemed to
have declined being a "Non-Increasing Lender"). In the event that, on the 20th
day after the Borrower shall have delivered a notice pursuant to the first
sentence of this paragraph, the Lenders shall have agreed pursuant to the
preceding sentence to increase their Commitments by an aggregate amount less
than the increase in the total Commitments requested by the Borrower, the
Borrower may arrange for one or more banks or other financial institutions (any
such bank or other financial institution referred to in this clause (a) being
called an "Augmenting Lender"), which may include any Lender, to extend
Commitments or increase their existing Commitments in an aggregate amount equal
to the unsubscribed amount; provided that each Augmenting Lender, if not already
a Lender hereunder, shall be subject to the approval of the Administrative Agent
(which approval shall not be unreasonably withheld) and each Augmenting Lender
shall execute all such documentation as the Administrative Agent shall specify
to evidence its Commitment and its status as a Lender hereunder. Any increase in
the total Commitments may be made in an amount which is less than the increase
requested by the Borrower if the Borrower is unable to arrange for, or chooses
not to arrange for Augmenting Lenders. Increases and new Commitments created
pursuant to this clause (a) shall become effective on the date specified in the
notice delivered by the Borrower pursuant to the first sentence of this
paragraph. Notwithstanding the foregoing, no increase in the total Commitments
(or in the Commitment of any Lender) shall become effective under this paragraph
unless, (i) on the date of such increase, the conditions set forth in paragraphs
(b) and (c) of Section 4.01 shall be satisfied (with all references in such
paragraphs to a Credit Event being deemed to be references to such increase) and
the Administrative Agent shall have received a certificate to that effect dated
such date and executed by a Financial Officer of the Borrower, and (ii) the
Administrative Agent shall have received (with sufficient copies for each of the
Lenders) documents consistent with those delivered on the under clauses (a) and
(c) of Section 4.02 as to the corporate power and authority of the Borrower to
borrow hereunder after giving effect to such increase.
(b) On the effective date (the "Increase Effective Date") of
any increase in the total Commitments pursuant to Section 2.22(a) (the
"Commitment Increase"), (i) the aggregate principal amount of the Loans
outstanding (the "Initial Loans") immediately prior to giving effect to the
Commitment Increase on the Increase Effective Date shall be deemed to be paid,
(ii) each Increasing Lender and each Augmenting Lender that shall have been a
Lender prior to the Commitment Increase shall pay to the Administrative Agent in
same day funds an amount equal to the difference between (A) the product of (1)
such Lender's Applicable Percentage (calculated after giving effect to the
Commitment Increase) multiplied by (2) the amount of the Subsequent Borrowings
(as hereinafter defined) and (B) the product of (1) such Lender's Applicable
Percentage (calculated without giving effect to the Commitment Increase)
multiplied by (2) the amount of the Initial
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Loans, (iii) each Augmenting Lender that shall not have been a Lender prior to
the Commitment Increase shall pay to Administrative Agent in same day funds an
amount equal to the product of (1) such Augmenting Lender's Applicable
Percentage (calculated after giving effect to the Commitment Increase)
multiplied by (2) the amount of the Subsequent Borrowings, and (iv) after the
Administrative Agent receives the funds specified in clauses (ii) and (iii)
above, the Administrative Agent shall pay to each Non-Increasing Lender the
portion of such funds that is equal to the difference between (A) the product of
(1) such Non-Increasing Lender's Applicable Percentage (calculated without
giving effect to the Commitment Increase) multiplied by (2) the amount of the
Initial Loans, and (B) the product of (1) such Non-Increasing Lender's
Applicable Percentage (calculated after giving effect to the Commitment
Increase) multiplied by (2) the amount of the Subsequent Borrowings, (v) after
the effectiveness of the Commitment Increase, the Borrower shall be deemed to
have made new Borrowings (the "Subsequent Borrowings") in an aggregate principal
amount equal to the aggregate principal amount of the Initial Loans and of the
types and for the Interest Periods specified in a Borrowing Request delivered to
the Administrative Agent in accordance with Section 2.04, (vi) each
Non-Increasing Lender, each Increasing Lender and each Augmenting Lender shall
be deemed to hold its Applicable Percentage of each Subsequent Borrowing
(calculated after giving effect to the Commitment Increase) and (vii) the
Borrower shall pay each Increasing Lender and each Non-Increasing Lender any and
all accrued but unpaid interest on the Initial Loans. The deemed payments made
pursuant to clause (i) above in respect of each Eurodollar Loan shall be subject
to indemnification by the Borrower pursuant to the provisions of Section 2.14 if
the Increase Effective Date occurs other than on the last day of the Interest
Period relating thereto.
ARTICLE III. REPRESENTATIONS AND WARRANTIES
Each Borrower represents and warrants to each of the Lenders
that:
SECTION 3.01. Organization; Powers. (a) Each Borrower and each
of the Subsidiaries (i) is a corporation duly organized, validly existing and in
good standing under the laws of the jurisdiction of its organization, (ii) has
all requisite power and authority to own its property and assets and to carry on
its business as now conducted and as proposed to be conducted, (iii) is
qualified to do business in every jurisdiction where such qualification is
required, except where the failure so to qualify would not result in a Material
Adverse Effect, and (iv) has the corporate power and authority to execute,
deliver and perform its obligations under each of the Loan Documents and each
other agreement or instrument contemplated thereby to which it is or will be a
party and, in the case of each Borrower, to borrow hereunder.
(b) Popular is duly registered as a bank holding company under
the Bank Holding Company Act of 1956, as amended.
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SECTION 3.02. Authorization. The execution, delivery and
performance by each Borrower of each of the Loan Documents and the borrowings
hereunder (collectively, the "Transactions") (a) have been duly authorized by
all requisite corporate and, if required, stockholder action and (b) will not
(i) violate (A) any provision of law, statute, rule or regulation, or of the
certificate or articles of incorporation or other constitutive documents or
by-laws of such Borrower or any Subsidiary, (B) any order of any Governmental
Authority or (C) any provision of any indenture, agreement or other instrument
to which such Borrower or any Subsidiary is a party or by which any of them or
any of their property is or may be bound, (ii) be in conflict with, result in a
breach of or constitute (alone or with notice or lapse of time or both) a
default under any such indenture, agreement or other instrument or (iii) result
in the creation or imposition of any Lien upon or with respect to any property
or assets now owned or hereafter acquired by such Borrower or any Subsidiary.
SECTION 3.03. Enforceability. This Agreement has been duly
executed and delivered by each Borrower and constitutes, and each other Loan
Document when executed and delivered by such Borrower will constitute, a legal,
valid and binding obligation of such Borrower enforceable against such Borrower
in accordance with its terms.
SECTION 3.04. Governmental Approvals. No action, consent or
approval of, registration or filing with or any other action by any Governmental
Authority is or will be required in connection with the Transactions, except for
such as have been made or obtained and are in full force and effect.
SECTION 3.05. Financial Statements. Popular has heretofore
furnished to the Lenders its consolidated balance sheets and statements of
income and changes in financial condition (i) as of and for the fiscal year
ended December 31, 1997, audited by and accompanied by the opinion of Price
Waterhouse LLP, independent public accountants, and (ii) as of and for the
fiscal quarter and portion of the fiscal year ended June 30, 1998. Such
financial statements present fairly the financial condition and results of
operations of Popular and its consolidated Subsidiaries as of such dates and for
such periods. Such balance sheets and the notes thereto disclose all material
liabilities, direct or contingent, of the Popular and its consolidated
Subsidiaries as of the dates thereof. Such financial statements were prepared in
accordance with GAAP applied on a consistent basis subject to, in the case of
the statements referred to in clause (ii) above, normal year-end audit
adjustments and the absence of footnotes.
SECTION 3.06. No Material Adverse Change. There has been no
material adverse change in the business, assets, operations,
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prospects or condition, financial or otherwise, of the Borrowers and the
Subsidiaries, taken as a whole, since December 31, 1997.
SECTION 3.07. Title to Properties; Possession Under Leases.
(a) Each of the Borrowers and the Subsidiaries has good and marketable title to,
or valid leasehold interests in, all its material properties and assets, except
for minor defects in title that do not interfere with its ability to conduct its
business as currently conducted or to utilize such properties and assets for
their intended purposes. All such material properties and assets are free and
clear of Liens prohibited by Section 6.01.
(b) Each of the Borrowers and the Subsidiaries has complied
with all obligations under all material leases to which it is a party and all
such leases are in full force and effect. Each of the Borrowers and the
Subsidiaries enjoys peaceful and undisturbed possession under all such material
leases.
SECTION 3.08. Subsidiaries. Schedule 3.08 sets forth a
complete and correct list, as of the date hereof, of all Subsidiaries. Except as
set forth in Schedule 3.08, all the issued and outstanding shares of capital
stock or the partnership interests, as the case may be, of each of the
Subsidiaries have been validly issued and are fully paid and nonassessable and
are owned directly or indirectly by the Borrower free and clear of all Liens
whatsoever, and there are no options, warrants, calls, conversion or exchange
rights, commitments or agreements of any character obligating any of the
Subsidiaries to issue, deliver or sell additional shares of capital stock of any
class or any securities convertible into or exchangeable for any such capital
stock or any additional partnership interests.
SECTION 3.09. Litigation; Compliance with Laws. (a) Except as
set forth in Schedule 3.09, there are not any actions, suits or proceedings at
law or in equity or by or before any Governmental Authority now pending or, to
the knowledge of either the Borrowers, threatened against or affecting either of
the Borrowers or any Subsidiary or any business, property or rights of any such
person (i) which involve any Loan Document or the Transactions or (ii) as to
which there is a reasonable possibility of an adverse determination and which,
if adversely determined, could, individually or in the aggregate, result in a
Material Adverse Effect.
(b) None of the Borrowers or any of the Subsidiaries or any of
their respective material properties or assets is in violation of, nor will the
continued operation of their material properties and assets as currently
conducted violate, any law, rule or regulation, or is in default with respect to
any judgment, writ, injunction or decree of any Governmental Authority, where
such violation or default could result in a Material Adverse Effect.
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SECTION 3.10. Agreements. (a) Neither of the Borrowers
nor any of the Subsidiaries is a party to any agreement or instrument
or subject to any corporate restriction that has resulted or could
result in a Material Adverse Effect.
(b) Neither of the Borrowers nor any of the Subsidiaries is in
default in any manner under any provision of any indenture or other agreement or
instrument evidencing Indebtedness, or any other material agreement or
instrument to which it is a party or by which it or any of its properties or
assets are or may be bound, where such default could result in a Material
Adverse Effect.
SECTION 3.11. Federal Reserve Regulations. (a) Neither of the
Borrowers nor any of the Subsidiaries is engaged principally, or as one of its
important activities, in the business of extending credit for the purpose of
purchasing or carrying Margin Stock.
(b) No part of the proceeds of any Loan will be used, whether
directly or indirectly, and whether immediately, incidentally or ultimately, (i)
to purchase or carry Margin Stock or to extend credit to others for the purpose
of purchasing or carrying Margin Stock or to refund indebtedness originally
incurred for such purpose, or (ii) for any purpose which entails a violation of,
or which is inconsistent with, the provisions of the Regulations of the Board,
including Regulation U or X.
SECTION 3.12. Investment Company Act; Public Utility Holding
Company Act. Neither of the Borrowers nor any Subsidiary is (a) an "investment
company" as defined in, or subject to regulation under, the Investment Company
Act of 1940 or (b) a "holding company" as defined in, or subject to regulation
under, the Public Utility Holding Company Act of 1935.
SECTION 3.13. Use of Proceeds. The Borrowers will use the
proceeds of the Loans only for the purposes specified in the preamble to this
Agreement.
SECTION 3.14. Tax Returns. Each of the Borrowers and the
Subsidiaries has filed or caused to be filed all Federal, state and local tax
returns required to have been filed by it and has paid or caused to be paid all
taxes due and payable by it and all assessments received by it, except taxes
that are being contested in good faith by appropriate proceedings and for which
a Borrower shall have set aside on its books adequate reserves.
SECTION 3.15. No Material Misstatements. No information,
report, financial statement, exhibit or schedule furnished by or on behalf of a
Borrower to the Administrative Agent or any Lender in connection with the
negotiation of any Loan Document or included therein or delivered pursuant
thereto
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contained, contains or will contain any material misstatement of fact or
omitted, omits or will omit to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were, are
or will be made, not misleading.
SECTION 3.16. Employee Benefit Plans. Each of the Borrowers
and their respective ERISA Affiliates is in compliance in all material respects
with the applicable provisions of ERISA and the Code and the regulations and
published interpretations thereunder. No Reportable Event has occurred in
respect of any Plan of a Borrower or any ERISA Affiliate. The present value of
all benefit liabilities under each Plan (based on those assumptions used to fund
such Plan) did not, as of the last annual valuation date applicable thereto,
exceed by more than $10,000,000 the value of the assets of such Plan, and the
present value of all benefit liabilities of all underfunded Plans (based on
those assumptions used to fund each such Plan) did not, as of the last annual
valuation dates applicable thereto, exceed by more than $10,000,000 the value of
the assets of all such underfunded Plans. Neither of the Borrowers nor any ERISA
Affiliate has incurred any Withdrawal Liability that materially adversely
affects the financial condition of a Borrower and its ERISA Affiliates taken as
a whole. Neither of the Borrowers nor any ERISA Affiliate has received any
notification that any Multiemployer Plan is in reorganization or has been
terminated, within the meaning of Title IV of ERISA, and no Multiemployer Plan
is reasonably expected to be in reorganization or to be terminated, where such
reorganization or termination has resulted or can reasonably be expected to
result in an increase in the contributions required to be made to such Plan that
would materially and adversely affect the financial condition of a Borrower and
its ERISA Affiliates taken as a whole.
SECTION 3.17. Environmental and Safety Matters. The Borrowers
are aware of no events, conditions or circumstances involving environmental
pollution or contamination or employee health or safety that could reasonably be
expected to result in a Material Adverse Effect.
SECTION 3.18. Capital Commitments. Popular is not a party to
any Capital Commitment, other than such Capital Commitments entered into after
the Closing Date that, individually and in the aggregate, could not reasonably
be expected to have a Material Adverse Effect.
SECTION 3.19. Year 2000. Any reprogramming required to permit
the proper functioning, in and following the year 2000, of (i) the Borrower's
computer systems and equipment containing embedded microchips (including systems
and equipment supplied by others or with which Borrower's systems interface) and
the testing of all such systems and equipment, as so reprogrammed, will be
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completed by June 30, 1999. The cost to the Borrower of such reprogramming and
testing and of the reasonably foreseeable consequences of year 2000 to the
Borrower (including, without limitation, reprogramming errors and the failure of
others' systems or equipment) will not result in a Default or a Material Adverse
Effect. Except for such of the reprogramming referred to in the preceding
sentence as may be necessary, the computer and management information systems of
the Borrower and its Subsidiaries are and, with ordinary course upgrading and
maintenance, will continue for the term of this Agreement to be, sufficient to
permit the Borrower to conduct its business without Material Adverse Effect.
ARTICLE IV. CONDITIONS OF LENDING
The obligations of the Lenders to make Loans hereunder are
subject to the satisfaction of the following conditions:
SECTION 4.01. All Credit Events. On the date of each
Borrowing, including each Borrowing in which Loans are refinanced with new Loans
as contemplated by Section 2.02(f) (each such event being called a "Credit
Event"):
(a) The Administrative Agent shall have received a notice of
such Borrowing as required by Section 2.03 or 2.04, as applicable (or
such notice shall have been deemed given in accordance with the last
paragraph of Section 2.04).
(b) The representations and warranties set forth in Article
III (other than, in the case of a Borrowing that does not increase the
aggregate outstanding principal amount of the Loans of any Lender,
Sections 3.06 and 3.09(a)) shall be true and correct in all material
respects on and as of the date of such Credit Event with the same
effect as though made on and as of such date, except to the extent such
representations and warranties expressly relate to an earlier date.
(c) Each Borrower shall be in compliance with all the terms
and provisions set forth herein and in each other Loan Document on its
part to be observed or performed, and at the time of and immediately
after such Credit Event, no Event of Default or Default shall have
occurred and be continuing.
Each Credit Event shall be deemed to constitute a representation and warranty by
each Borrower on the date of such Credit Event as to the matters specified in
paragraphs (b) and (c) of this Section 4.01.
SECTION 4.02. First Credit Event. On the Closing Date:
(a) The Administrative Agent shall have received, on behalf of
itself and the Lenders, a favorable written opinion of Brunilde ▇▇▇▇▇▇
▇▇ ▇▇▇▇▇▇▇, Esq., Assistant Secretary and
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counsel for the Borrowers, substantially to the effect set forth in
Exhibit E (A) dated the Closing Date, (B) addressed to the
Administrative Agent and the Lenders, and (C) covering such other
matters relating to the Loan Documents and the Transactions as the
Administrative Agent shall reasonably request, and the Borrowers hereby
instruct such counsel to deliver such opinion.
(b) All legal matters incident to this Agreement, the
borrowings and extensions of credit hereunder and the other Loan
Documents shall be satisfactory to the Lenders and to Cravath, Swaine &
▇▇▇▇▇, counsel for the Administrative Agent.
(c) The Administrative Agent shall have received (i) a copy of the
certificate or articles of incorporation, including all amendments
thereto, of each Borrower, certified as of a recent date by the
Secretary of State of the state of its organization, and a letter
sealed by such Secretary of State from each Borrower requesting a
certificate as to the good standing of each Borrower as of a recent
date from such Secretary of State; (ii) a certificate of the Secretary
or Assistant Secretary of each Borrower dated the Closing Date and
certifying (A) that attached thereto is a true and complete copy of the
by-laws of such Borrower as in effect on the Closing Date and at all
times since a date prior to the date of the resolutions described in
clause (B) below, (B) that attached thereto is a true and complete copy
of resolutions duly adopted by the Board of Directors of such Borrower
authorizing the execution, delivery and performance of the Loan
Documents and the borrowings hereunder, and that such resolutions have
not been modified, rescinded or amended and are in full force and
effect, (C) that the certificate or articles of incorporation of such
Borrower have not been amended since the date of the last amendment
thereto which date will be shown on the certificate of good standing to
be furnished pursuant to Section 5.04(g), and (D) as to the incumbency
and specimen signature of each officer executing any Loan Document or
any other document delivered in connection herewith on behalf of such
Borrower; (iii) a certificate of another officer of each Borrower as to
the incumbency and specimen signature of the Secretary or Assistant
Secretary of such Borrower executing the certificate pursuant to (ii)
above; and (iv) such other documents as the Lenders or Cravath, Swaine
& ▇▇▇▇▇, counsel for the Administrative Agent, may reasonably request.
(d) The Administrative Agent shall have received a certificate
of each Borrower, dated the Closing Date and signed by a Financial
Officer of such Borrower, confirming compliance with the conditions
precedent set forth in paragraphs (b) and (c) of Section 4.01.
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(e) The Administrative Agent shall have received the financial
statements referred to in Section 3.05.
(f) The Administrative Agent shall have received all Fees and
other amounts due and payable on or prior to the Closing Date,
including, to the extent invoiced, reimbursement or payment of all
out-of-pocket expenses required to be reimbursed or paid by the
Borrowers hereunder or under any other Loan Document.
(g) The Administrative Agent shall have received a certificate
of a Financial Officer of each of the Borrowers certifying as to (i)
the termination of the Existing Credit Agreement, and (ii) the payment
in full of all obligations of the Borrowers outstanding under the
Existing Credit Agreement.
ARTICLE V. AFFIRMATIVE COVENANTS
Each Borrower covenants and agrees with each Lender that so
long as this Agreement shall remain in effect and until the Commitments have
been terminated and the principal of and interest on each Loan, all Fees and all
other expenses or amounts payable under any Loan Document shall have been paid
in full, unless the Required Lenders shall otherwise consent in writing, such
Borrower will, and will cause each of the Subsidiaries to:
SECTION 5.01. Existence; Businesses and Properties. (a) Do or
cause to be done all things necessary to preserve, renew and keep in full force
and effect its legal existence, except as otherwise expressly permitted under
Section 6.04.
(b) Do or cause to be done all things necessary to obtain,
preserve, renew, extend and keep in full force and effect the rights, licenses,
permits, franchises, authorizations, patents, copyrights, trademarks and trade
names material to the conduct of its business; maintain and operate such
business in substantially the manner in which it is presently conducted and
operated (provided that the Borrowers may engage in new businesses not
prohibited by Section 6.04); comply in all material respects with all applicable
laws, rules, regulations and orders of any Governmental Authority, whether now
in effect or hereafter enacted; and at all times maintain and preserve all
property material to the conduct of such business and keep such property in good
repair, working order and condition and from time to time make, or cause to be
made, all needful and proper repairs, renewals, additions, improvements and
replacements thereto necessary in order that the business carried on in
connection therewith may be properly conducted at all times.
SECTION 5.02. Insurance. Keep its insurable properties
adequately insured at all times by financially sound and reputable
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insurers; maintain such other insurance, to such extent and against such risks,
including fire and other risks insured against by extended coverage, as is
customary with companies in the same or similar businesses, including public
liability insurance against claims for personal injury or death or property
damage occurring upon, in, about or in connection with the use of any properties
owned, occupied or controlled by it; and maintain such other insurance as may be
required by law.
SECTION 5.03. Obligations and Taxes. Pay its Indebtedness and
other obligations promptly and in accordance with their terms and pay and
discharge promptly when due all taxes, assessments and governmental charges or
levies imposed upon it or upon its income or profits or in respect of its
property, before the same shall become delinquent or in default, as well as all
lawful claims for labor, materials and supplies or otherwise which, if unpaid,
might give rise to a Lien upon such properties or any part thereof; provided,
however, that such payment and discharge shall not be required with respect to
any such tax, assessment, charge, levy or claim so long as the validity or
amount thereof shall be contested in good faith by appropriate proceedings and
the Borrower shall have set aside on its books adequate reserves with respect
thereto and such contest operates to suspend collection of the contested
obligation, tax, assessment or charge and enforcement of a Lien.
SECTION 5.04. Financial Statements, Reports, etc. In the
case of Popular, furnish to the Administrative Agent and each Lender:
(a) within 90 days after the end of each fiscal year, its
consolidated balance sheets and related statements of operations,
stockholders' equity and cash flows showing the financial condition of
Popular and its consolidated subsidiaries as of the close of such
fiscal year and the results of its operations and the operations of
such subsidiaries during such year, setting forth in each case in
comparative form the figures for the previous fiscal year, all audited
by Price Waterhouse LLP or other independent public accountants of
recognized national standing acceptable to the Required Lenders and
accompanied by an opinion of such accountants (which shall not be
qualified in any material respect) to the effect that such consolidated
financial statements fairly present the financial condition and results
of operations of Popular on a consolidated basis in accordance with
GAAP consistently applied;
(b) within 45 days after the end of each of the first three
fiscal quarters of each fiscal year, its consolidated balance sheets
and related statements of operations, stockholders' equity and cash
flows showing the financial
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condition of Popular and its consolidated subsidiaries as of the close
of such fiscal quarter and the results of its operations and the
operations of such subsidiaries during such fiscal quarter and the then
elapsed portion of the fiscal year, setting forth in each case in
comparative form the figures for the corresponding quarter and the
corresponding portion of the previous fiscal year, all certified by one
of its Financial Officers as fairly presenting the financial condition
and results of operations of Popular on a consolidated basis in
accordance with GAAP consistently applied, subject to normal year-end
audit adjustments;
(c) concurrently with any delivery of financial statements
under (a) or (b) above, a certificate of a Financial Officer (i)
setting forth in reasonable detail the calculations required to
establish whether Popular was in compliance with the requirements of
Sections 6.05, 6.06, 6.07 and 6.08 and (ii) certifying that no Event of
Default or Default has occurred or, if such an Event of Default or
Default has occurred, specifying the nature and extent thereof and any
corrective action taken or proposed to be taken with respect thereto;
(d) promptly after the same become publicly available, copies
of all periodic and other reports, proxy statements and other materials
filed by it with the Securities and Exchange Commission, or any
Governmental Authority succeeding to any of or all the functions of
said Commission, or with any national securities exchange, or
distributed to its shareholders, as the case may be;
(e) as soon as is reasonably practicable after the same
becomes available, the "Parent Company Only Financial Statement for
Bank Holding Companies" (report No. FR Y-9LP or any successor form of
the Federal Reserve System) of Popular and Popular North America, Inc.
and the "Consolidated Financial Statements for Bank Holding Companies"
(report no. FR Y-9C or any successor form of the Federal Reserve
System) of Popular that Popular shall have filed with the Board;
(f) promptly upon the request of the Administrative Agent or
any Lender, copies of all call reports of each Significant Subsidiary;
(g) promptly, upon receipt by each borrower, the certificate
of good standing delivered by the Secretary of State to the Borrower in
response to the Borrower's request for such certificate in the letter
delivered to the Administrative Agent pursuant to Section 4.02(c)(i);
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(h) promptly, from time to time, such other information
regarding the operations, business affairs and financial condition of
Popular or any Subsidiary, or compliance with the terms of any Loan
Document, as the Administrative Agent or any Lender may reasonably
request; and
(i) promptly, upon entering such agreement, notice of the
terms of any agreement entered into by Banco Popular after the date of
this Agreement restricting or limiting Banco Popular's
right to declare and make payments of dividends to the Borrower, and
any changes to any existing restrictions or limits on Banco Popular's
right to declare or pay dividends to the Borrower.
SECTION 5.05. Litigation and Other Notices. Furnish to
the Administrative Agent and each Lender prompt written notice of the
following:
(a) any Event of Default or Default, specifying the nature and
extent thereof and the corrective action (if any) proposed to be taken
with respect thereto;
(b) the filing or commencement of, or any threat or notice of
intention of any person to file or commence, any action, suit or
proceeding, whether at law or in equity or by or before any
Governmental Authority, against a Borrower or any Affiliate thereof
which could reasonably be expected to result in a Material Adverse
Effect; and
(c) any other development that has resulted in, or could
reasonably be expected to result in, a Material Adverse Effect.
SECTION 5.06. Employee Benefits. (a) Comply in all material
respects with the applicable provisions of ERISA and the Code and (b) furnish to
the Administrative Agent (i) as soon as possible after, and in any event within
30 days after any Responsible Officer of such Borrower or any ERISA Affiliate
knows or has reason to know that, any Reportable Event has occurred that alone
or together with any other Reportable Event could reasonably be expected to
result in liability of such Borrower to the PBGC in an aggregate amount
exceeding $10,000,000, a statement of a Financial Officer setting forth details
as to such Reportable Event and the action that the Borrower proposes to take
with respect thereto, together with a copy of the notice, if any, of such
Reportable Event given to the PBGC, (ii) promptly after receipt thereof, a copy
of any notice that the Borrower or any ERISA Affiliate may receive from the PBGC
relating to the intention of the PBGC to terminate any Plan or Plans (other than
a Plan maintained by an ERISA Affiliate that is considered an ERISA Affiliate
only pursuant to subsection (m) or (o) of Code Section 414) or to appoint
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a trustee to administer any such Plan, (iii) within 10 days after the due date
for filing with the PBGC pursuant to Section 412(n) of the Code a notice of
failure to make a required installment or other payment with respect to a Plan,
a statement of a Financial Officer setting forth details as to such failure and
the action that such Borrower proposes to take with respect thereto, together
with a copy of any such notice given to the PBGC and (iv) promptly and in any
event within 30 days after receipt thereof by the Borrower or any ERISA
Affiliate from the sponsor of a Multiemployer Plan, a copy of each notice
received by the Borrower or any ERISA Affiliate concerning (A) the imposition of
Withdrawal Liability or (B) a determination that a Multiemployer Plan is, or is
expected to be, terminated or in reorganization, both within the meaning of
Title IV of ERISA.
SECTION 5.07. Maintaining Records; Access to Properties and
Inspections. Maintain all financial records in accordance with GAAP and permit
any representatives designated by any Lender to visit and inspect the financial
records and the properties of a Borrower or any Subsidiary at reasonable times
and upon reasonable notice and as often as requested and to make extracts from
and copies of such financial records, and permit any representatives designated
by any Lender to discuss the affairs, finances and condition of such Borrower or
any Subsidiary with the officers thereof and independent accountants therefor.
SECTION 5.08. Use of Proceeds. Use the proceeds of the
Loans only for the purposes set forth in the preamble to this
Agreement.
SECTION 5.09. Continuance of Business. With respect to
Popular, at all times be a bank holding company duly registered with the Board
under the Bank Holding Company Act of 1956, as amended, and continue (and will
cause each Subsidiary to continue) to (a) engage in business of the same general
type as now conducted by it or any other business permitted under, and in
accordance with, the Bank Holding Company Act of 1956, as amended, and any
regulation of, or ruling by, the Board issued thereunder and (b) unless
otherwise permitted by this Agreement, maintain its corporate existence and keep
in full force and effect all licenses and permits necessary to the proper
conduct of its business.
SECTION 5.10. Compliance with Regulatory Standards. At all
times substantially comply with all applicable regulatory guidelines, policy
statements, regulations or other legal requirements and cause each Bank
Subsidiary (other than any Edge Act corporation) to maintain membership with the
Federal Deposit Insurance Corporation.
SECTION 5.11. Capital Requirements. Maintain and cause each of
its Bank Subsidiaries to, (a) maintain (at all times 120
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days or more after the date such person became a Bank Subsidiary), such amount
of capital as may be prescribed from time to time by each Bank Regulatory
Authority with jurisdiction over such Borrower or such Bank Subsidiary, whether
by regulation, agreement or order.
(b) Cause each Bank Subsidiary that is a Significant
Subsidiary to be "adequately capitalized" (within the meaning of 12 U.S.C. 1831,
as amended, reenacted or redesignated from time to time) at all times 120 days
or more after the date such person became a Bank Subsidiary.
ARTICLE VI. NEGATIVE COVENANTS
Each Borrower covenants and agrees with each Lender that, so
long as this Agreement shall remain in effect and until the Commitments have
been terminated and the principal of and interest on each Loan, all Fees and all
other expenses or amounts payable under any Loan Document have been paid in
full, unless the Required Lenders shall otherwise consent in writing, such
Borrower will not, and will not cause or permit any of the Subsidiaries to:
SECTION 6.01. Liens. In the case of the Borrowers, create,
incur, assume or permit to exist any Lien on any property or assets (including
stock or other securities of any person, including any Subsidiary) now owned or
hereafter acquired by it or on any income or revenues or rights in respect of
any thereof, except:
(a) Liens on property or assets of such Borrower existing on
the date hereof and set forth in Schedule 6.01; provided that such
Liens shall secure only those obligations which they secure on the date
hereof;
(b) any Lien existing on any property or asset prior to the
acquisition thereof by such Borrower; provided that (i) such Lien is
not created in contemplation of or in connection with such acquisition
and (ii) such Lien does not apply to any other property or assets of
such Borrower;
(c) Liens for taxes not yet due or which are being contested
in compliance with Section 5.03;
(d) carriers', warehousemen's, mechanic's, materialmen's,
repairmen's or other like Liens arising in the ordinary course of
business and securing obligations that are not due and payable or which
are being contested in compliance with Section 5.03;
(e) pledges and deposits made in the ordinary course of
business in compliance with workmen's compensation,
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unemployment insurance and other social security laws or regulations;
(f) deposits to secure the performance of bids, trade
contracts (other than for Indebtedness), leases (other than Capital
Lease Obligations), statutory obligations, surety and appeal bonds,
performance bonds and other obligations of a like nature incurred in
the ordinary course of business;
(g) zoning restrictions, easements, rights-of-way,
restrictions on use of real property and other similar encumbrances
incurred in the ordinary course of business which, in the aggregate,
are not substantial in amount and do not materially detract from the
value of the property subject thereto or interfere with the ordinary
conduct of the business of such Borrower;
(h) purchase money security interests in real property,
improvements thereto or equipment hereafter acquired (or, in the case
of improvements, constructed) by such Borrower; provided that (i) such
security interests are incurred, and the Indebtedness secured thereby
is created, within 90 days after such acquisition (or construction) and
(ii) such security interests do not apply to any other property or
assets of such Borrower or any Subsidiary;
(i) any Lien (a "replacement Lien") replacing, refinancing,
extending or renewing any Lien permitted under clause (a), (b) or (h)
above; provided that such replacement Lien shall secure only those
obligations that are secured by, and shall not apply to any property of
any Borrower other than property of such Borrower subject to, the Lien
replaced, refinanced, extended or renewed by such replacement Lien on
the date of incurrence of such replacement Lien; and
(j) securities repurchase agreements entered into in the
ordinary course of business with a maturity of less than one year.
SECTION 6.02. Sale and Lease-Back Transactions. In the case of
the Borrowers, enter into any arrangement, directly or indirectly, with any
person whereby it shall sell or transfer any property, real or personal, used or
useful in its business, whether now owned or hereafter acquired, and thereafter
rent or lease such property or other property which it intends to use for
substantially the same purpose or purposes as the property being sold or
transferred.
SECTION 6.03. Mergers, Consolidations, Sales of Assets. Merge
into or consolidate with any other person, or permit any other person to merge
into or consolidate with it, or sell, transfer,
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lease or otherwise dispose of (in one transaction or in a series of
transactions) all or any substantial part of the assets of Popular or its
Subsidiaries, taken as a whole (whether now owned or hereafter acquired), except
that if at the time thereof and immediately after giving effect thereto no Event
of Default or Default shall have occurred and be continuing (a) any Subsidiary
may merge into either Borrower in a transaction in which such Borrower is the
surviving corporation, (b) any Subsidiary may merge into or consolidate with any
other Subsidiary in a transaction in which the surviving entity is a Subsidiary
and (c) a wholly owned Subsidiary (other than a Subsidiary that owns a
substantial portion of the assets of Popular and its Subsidiaries, taken as a
whole) may merge with any person if the surviving corporation is a Subsidiary.
SECTION 6.04. Business of Borrowers and Subsidiaries. Engage
at any time in any business or business activity other than the business
currently conducted by it and business activities reasonably incidental thereto.
Notwithstanding the previous sentence, either Borrower may acquire, develop or
otherwise engage in any new business (consistent with applicable regulatory
requirements); provided, however, that all such new businesses (taken together)
shall not materially affect the overall nature and character of the business of
Popular and its Subsidiaries (taken as a whole), as currently conducted.
SECTION 6.05. Consolidated Tangible Net Worth. Permit at any
time Consolidated Tangible Net Worth to be less than 5% of Total Assets.
SECTION 6.06. Ratio of Long-Term Indebtedness to Total
Capitalization. Permit at any time the ratio of Long-Term Indebtedness to Total
Capitalization to exceed .65 to 1.0.
SECTION 6.07. Non-Performing Assets. Permit NonPerforming
Assets at any time to exceed 4.5% of total (gross) loans, leases and other owned
real estate, in each case for Popular and its Subsidiaries (determined on a
consolidated basis in accordance with GAAP), as at such time.
SECTION 6.08. Double Leverage. Permit at any time the ratio of
(a) the sum of Equity Investments in Subsidiaries and the Intangibles of Popular
and its consolidated Subsidiaries, in each case determined as of such time, to
(b) Consolidated Net Worth less the goodwill of Popular and its consolidated
Subsidiaries (determined on a consolidated basis in accordance with GAAP), in
each case determined as of such time, to exceed 125%.
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ARTICLE VII. EVENTS OF DEFAULT
In case of the happening of any of the following events
("Events of Default"):
(a) any representation or warranty made or deemed made in or
in connection with any Loan Document or the borrowings hereunder, or
any representation, warranty, statement or information contained in any
report, certificate, financial statement or other instrument furnished
in connection with or pursuant to any Loan Document, shall prove to
have been false or misleading in any material respect when so made,
deemed made or furnished;
(b) default shall be made in the payment of any principal of
any Loan when and as the same shall become due and payable, whether at
the due date thereof or at a date fixed for prepayment thereof or by
acceleration thereof or otherwise;
(c) default shall be made in the payment of any interest on
any Loan or any Fee or any other amount (other than an amount referred
to in (b) above) due under any Loan Document, when and as the same
shall become due and payable, and such default shall continue
unremedied for a period of three Business Days;
(d) default shall be made in the due observance or performance
by a Borrower or any Subsidiary of any covenant, condition or agreement
contained in Section 5.01(a), 5.05, 5.08 or 5.11 or in Article VI;
(e) default shall be made in the due observance or performance
by a Borrower or any Subsidiary of any covenant, condition or agreement
contained in any Loan Document (other than those specified in (b), (c)
or (d) above) and such default shall continue unremedied for a period
of 30 days after notice thereof from the Administrative Agent or any
Lender to such Borrower;
(f) a Borrower or any Subsidiary shall (i) fail to pay any
principal or interest, regardless of amount, due in respect of any
Indebtedness in a principal amount in excess of $25,000,000 when and as
the same shall become due and payable, or (ii) fail to observe or
perform any other term, covenant, condition or agreement contained in
any agreement or instrument evidencing or governing any such
Indebtedness if the effect of any failure referred to in this clause
(ii) is to cause, or to permit the holder or holders of such
Indebtedness or a trustee on its or their behalf (with or without the
giving of notice, the lapse of time or both) to
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cause, such Indebtedness to become due prior to its stated maturity;
(g) an involuntary proceeding shall be commenced or an
involuntary petition shall be filed in a court of competent
jurisdiction seeking (i) relief in respect of a Borrower or any
Subsidiary, or of a substantial part of the property or assets of such
Borrower or a Subsidiary, under Title 11 of the United States Code, as
now constituted or hereafter amended, or any other Federal or state
bankruptcy, insolvency, receivership or similar law, (ii) the
appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for such Borrower or any Subsidiary or
for a substantial part of the property or assets of such Borrower or a
Subsidiary or (iii) the winding-up or liquidation of such Borrower or
any Subsidiary; and such proceeding or petition shall continue
undismissed for 60 days or an order or decree approving or ordering any
of the foregoing shall be entered;
(h) a Borrower or any Subsidiary shall (i) voluntarily
commence any proceeding or file any petition seeking relief under Title
11 of the United States Code, as now constituted or hereafter amended,
or any other Federal or state bankruptcy, insolvency, receivership or
similar law, (ii) consent to the institution of, or fail to contest in
a timely and appropriate manner, any proceeding or the filing of any
petition described in (g) above, (iii) apply for or consent to the
appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for such Borrower or any Subsidiary or
for a substantial part of the property or assets of such Borrower or
any Subsidiary, (iv) file an answer admitting the material allegations
of a petition filed against it in any such proceeding, (v) make a
general assignment for the benefit of creditors, (vi) become unable,
admit in writing its inability or fail generally to pay its debts as
they become due or (vii) take any action for the purpose of effecting
any of the foregoing;
(i) one or more judgments for the payment of money in an
aggregate amount in excess of $10,000,000 shall be rendered against a
Borrower, any Subsidiary or any combination thereof and the same shall
remain undischarged for a period of 30 consecutive days during which
execution shall not be effectively stayed, or any action shall be
legally taken by a judgment creditor to levy upon assets or properties
of such Borrower or any Subsidiary to enforce any such judgment;
(j) (i) a Reportable Event or Reportable Events, or a failure
to make a required installment or other payment (within the meaning of
Section 412(n)(1) of the Code), shall have occurred with respect to any
Plan or Plans that
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reasonably could be expected to result in liability of a Borrower to
the PBGC or to a Plan in an aggregate amount exceeding $10,000,000 and,
within 30 days after the reporting of any such Reportable Event to the
Administrative Agent or after the receipt by the Administrative Agent
of a statement required pursuant to Section 5.06(b)(iii) hereof, the
Administrative Agent shall have notified such Borrower in writing that
(A) the Required Lenders have made a determination that, on the basis
of such Reportable Event or Reportable Events or the failure to make a
required payment, there are reasonable grounds for the termination of
such Plan or Plans by the PBGC, the appointment by the appropriate
United States district court of a trustee to administer such Plan or
Plans or the imposition of a lien in favor of a Plan and (B) as a
result thereof an Event of Default exists hereunder; or (ii) a trustee
shall be appointed by a United States district court to administer any
such Plan or Plans; or (iii) the PBGC shall institute proceedings
(including giving notice of intent thereof) to terminate any such Plan
or Plans;
(k) (i) a Borrower or any ERISA Affiliate shall have been
notified by the sponsor of a Multiemployer Plan that it has incurred
Withdrawal Liability to such Multiemployer Plan, (ii) such Borrower or
such ERISA Affiliate does not have reasonable grounds for contesting
such Withdrawal Liability or is not contesting such Withdrawal
Liability in a timely and appropriate manner and (iii) the amount of
such Withdrawal Liability specified in such notice, when aggregated
with all other amounts required to be paid to Multiemployer Plans in
connection with Withdrawal Liabilities (determined as of the date or
dates of such notification), either (A) exceeds $10,000,000 or requires
payments exceeding $1,000,000 in any year or (B) is less than
$10,000,000 but any Withdrawal Liability payment remains unpaid 30 days
after such payment is due;
(l) a Borrower or any ERISA Affiliate shall have been notified
by the sponsor of a Multiemployer Plan that such Multiemployer Plan is
in reorganization or is being terminated, within the meaning of Title
IV of ERISA, if solely as a result of such reorganization or
termination the aggregate annual contributions of such Borrower and its
ERISA Affiliates to all Multiemployer Plans that are then in
reorganization or have been or are being terminated have been or will
be increased over the amounts required to be contributed to such
Multiemployer Plans for their most recently completed plan years by an
amount exceeding $1,000,000; or
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(m) there shall have occurred a Change in Control; then, and
in every such event (other than an event with respect to a Borrower
described in paragraph (g) or (h) above), and at any time thereafter
during the continuance of such event, the Administrative Agent may, and
at the request of the Required Lenders shall, by notice to the
Borrowers, take either or both of the following actions, at the same or
different times: (i) terminate forthwith the Commitments and (ii)
declare the Loans then outstanding to be forthwith due and payable in
whole or in part, whereupon the principal of the Loans so declared to
be due and payable, together with accrued interest thereon and any
unpaid accrued Fees and all other liabilities of the Borrowers accrued
hereunder and under any other Loan Document, shall become forthwith due
and payable, without presentment, demand, protest or any other notice
of any kind, all of which are hereby expressly waived by the Borrowers,
anything contained herein or in any other Loan Document to the contrary
notwithstanding; and in any event with respect to a Borrower described
in paragraph (g) or (h) above, the Commitments shall automatically
terminate and the principal of the Loans then outstanding, together
with accrued interest thereon and any unpaid accrued Fees and all other
liabilities of such Borrower accrued hereunder and under any other Loan
Document, shall automatically become due and payable, without
presentment, demand, protest or any other notice of any kind, all of
which are hereby expressly waived by such Borrower, anything contained
herein or in any other Loan Document to the contrary notwithstanding.
ARTICLE VIII. THE ADMINISTRATIVE AGENT
In order to expedite the transactions contemplated by this Agreement,
The Chase Manhattan Bank is hereby appointed to act as Administrative Agent on
behalf of the Lenders. Each of the Lenders and each assignee of any such Lender,
hereby irrevocably authorizes the Administrative Agent to take such actions on
behalf of such Lender or assignee and to exercise such powers as are
specifically delegated to the Administrative Agent by the terms and provisions
hereof and of the other Loan Documents, together with such actions and powers as
are reasonably incidental thereto. The Administrative Agent is hereby expressly
authorized by the Lenders, without hereby limiting any implied authority, (a) to
receive on behalf of the Lenders all payments of principal of and interest on
the Loans and all other amounts due to the Lenders hereunder, and promptly to
distribute to each Lender its proper share of each payment so received; (b) to
give notice on behalf of each of the Lenders to the Borrowers of any Event of
Default specified in this Agreement of which the Administrative Agent has actual
knowledge acquired in connection with its agency hereunder; and (c) to
distribute to each Lender copies of all notices, financial statements and other
materials delivered by a Borrower pursuant to this Agreement as received by the
Administrative Agent.
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Neither the Administrative Agent nor any of its directors, officers,
employees or agents shall be liable as such for any action taken or omitted by
any of them except for its or his own gross negligence or wilful misconduct, or
be responsible for any statement, warranty or representation herein or the
contents of any document delivered in connection herewith, or be required to
ascertain or to make any inquiry concerning the performance or observance by a
Borrower of any of the terms, conditions, covenants or agreements contained in
any Loan Document. The Administrative Agent shall not be responsible to the
Lenders for the due execution, genuineness, validity, enforceability or
effectiveness of this Agreement or any other Loan Documents or other instruments
or agreements. The Administrative Agent shall in all cases be fully protected in
acting, or refraining from acting, in accordance with written instructions
signed by the Required Lenders and, except as otherwise specifically provided
herein, such instructions and any action or inaction pursuant thereto shall be
binding on all the Lenders. The Administrative Agent shall, in the absence of
knowledge to the contrary, be entitled to rely on any instrument or document
believed by it in good faith to be genuine and correct and to have been signed
or sent by the proper person or persons. Neither the Administrative Agent nor
any of its directors, officers, employees or agents shall have any
responsibility to the Borrowers on account of the failure of or delay in
performance or breach by any Lender of any of its obligations hereunder or to
any Lender on account of the failure of or delay in performance or breach by any
other Lender or a Borrower of any of their respective obligations hereunder or
under any other Loan Document or in connection herewith or therewith. The
Administrative Agent may execute any and all duties hereunder by or through
agents or employees and shall be entitled to rely upon the advice of legal
counsel selected by it with respect to all matters arising hereunder and shall
not be liable for any action taken or suffered in good faith by it in accordance
with the advice of such counsel.
The Lenders hereby acknowledge that the Administrative Agent
shall be under no duty to take any discretionary action permitted to be taken by
it pursuant to the provisions of this Agreement unless it shall be requested in
writing to do so by the Required Lenders.
Subject to the appointment and acceptance of a successor
Administrative Agent as provided below, the Administrative Agent may resign at
any time by notifying the Lenders and the Borrowers. Upon any such resignation,
the Required Lenders shall have the right to appoint a successor. If no
successor shall have been so appointed by the Required Lenders and shall have
accepted such appointment within 30 days after the retiring Administrative Agent
gives notice of its resignation, then the retiring Administrative Agent may, on
behalf of the Lenders, appoint a successor Administrative Agent which shall be a
bank with an office in New York, New York, having a
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combined capital and surplus of at least $500,000,000 or an Affiliate of any
such bank. Upon the acceptance of any appointment as Administrative Agent
hereunder by a successor bank, such successor shall succeed to and become vested
with all the rights, powers, privileges and duties of the retiring
Administrative Agent and the retiring Administrative Agent shall be discharged
from its duties and obligations hereunder. After the Administrative Agent's
resignation hereunder, the provisions of this Article and Section 9.05 shall
continue in effect for its benefit in respect of any actions taken or omitted to
be taken by it while it was acting as Administrative Agent.
With respect to the Loans made by it hereunder, the
Administrative Agent in its individual capacity and not as Administrative Agent
shall have the same rights and powers as any other Lender and may exercise the
same as though it were not the Administrative Agent, and the Administrative
Agent and its Affiliates may accept deposits from, lend money to and generally
engage in any kind of business with the Borrowers or any Subsidiary or other
Affiliate thereof as if it were not the Administrative Agent.
Each Lender agrees (i) to reimburse the Administrative Agent,
on demand, in the amount of its pro rata share (based on its Commitments
hereunder) of any expenses incurred for the benefit of the Lenders by the
Administrative Agent, including counsel fees and compensation of agents and
employees paid for services rendered on behalf of the Lenders, which shall not
have been reimbursed by the Borrowers and (ii) to indemnify and hold harmless
the Administrative Agent and any of its directors, officers, employees or
agents, on demand, in the amount of such pro rata share, from and against any
and all liabilities, taxes, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever which may be imposed on, incurred by or asserted against it in its
capacity as the Administrative Agent or any of them in any way relating to or
arising out of this Agreement or any other Loan Document or any action taken or
omitted by it or any of them under this Agreement or any other Loan Document, to
the extent the same shall not have been reimbursed by the Borrowers; provided
that no Lender shall be liable to the Administrative Agent for any portion of
such liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements resulting from the gross negligence or
wilful misconduct of the Administrative Agent or any of its directors, officers,
employees or agents.
Each Lender acknowledges that it has, independently and
without reliance upon the Administrative Agent or any other Lender and based on
such documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will,
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independently and without reliance upon the Administrative Agent or any other
Lender and based on such documents and information as it shall from time to time
deem appropriate, continue to make its own decisions in taking or not taking
action under or based upon this Agreement or any other Loan Document, any
related agreement or any document furnished hereunder or thereunder.
ARTICLE IX. MISCELLANEOUS
SECTION 9.01. Notices. Notices and other communications
provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by
telecopy, as follows:
(a) if to a Borrower, to it at Banco Popular Center
Building, ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇,
Attention of ▇▇. ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ (Telecopy No. 787-751-2137);
(b) if to the Administrative Agent, to The Chase Manhattan
Bank Agency Services Group, ▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇
▇▇▇▇▇, Attention of ▇▇▇▇▇ ▇▇▇▇▇▇▇ (Telecopy No. ▇▇▇- ▇▇▇-▇▇▇▇), with a
copy to The Chase Manhattan Bank, at ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇,
Attention of ▇▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ (Telecopy No. 212-270-1789); and
(c) if to a Lender, to it at its address (or telecopy number)
set forth in Schedule 2.01 or in the Assignment and Acceptance pursuant
to which such Lender shall have become a party hereto.
All notices and other communications given to any party hereto in accordance
with the provisions of this Agreement shall be deemed to have been given on the
date of receipt if delivered by hand or overnight courier service or sent by
telecopy or on the date five Business Days after dispatch by certified or
registered mail if mailed, in each case delivered, sent or mailed (properly
addressed) to such party as provided in this Section 9.01 or in accordance with
the latest unrevoked direction from such party given in accordance with this
Section 9.01.
SECTION 9.02. Survival of Agreement. All covenants,
agreements, representations and warranties made by each Borrower herein and in
the certificates or other instruments prepared or delivered in connection with
or pursuant to this Agreement or any other Loan Document shall be considered to
have been relied upon by the Lenders and shall survive the making by the Lenders
of the Loans, regardless of any investigation made by the Lenders or on their
behalf, and shall continue in full force and effect as long as the principal of
or any accrued interest on any Loan or any Fee or
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any other amount payable under this Agreement or any other Loan Document is
outstanding and unpaid and so long as the Commitments have not been terminated.
SECTION 9.03. Binding Effect. This Agreement shall become
effective when it shall have been executed by the Borrowers and the
Administrative Agent and when the Administrative Agent shall have received
counterparts hereof which, when taken together, bear the signatures of each of
the other parties hereto, and thereafter shall be binding upon and inure to the
benefit of the parties hereto and their respective permitted successors and
assigns.
SECTION 9.04. Successors and Assigns. (a) Whenever in this
Agreement any of the parties hereto is referred to, such reference shall be
deemed to include the permitted successors and assigns of such party; and all
covenants, promises and agreements by or on behalf of each Borrower, the
Administrative Agent or the Lenders that are contained in this Agreement shall
bind and inure to the benefit of their respective successors and assigns.
(b) Each Lender may assign to one or more assignees all or a
portion of its interests, rights and obligations under this Agreement (including
all or a portion of its Commitment and the Loans at the time owing to it);
provided, however, that (i) except in the case of an assignment to a Lender or
an Affiliate of such Lender, each Borrower and the Administrative Agent must
give their prior written consent to such assignment (which consent shall not be
unreasonably withheld), (ii) the amount of the Commitment of the assigning
Lender subject to each such assignment (determined as of the date the Assignment
and Acceptance with respect to such assignment is delivered to the
Administrative Agent) shall not be less than $5,000,000, (iii) the parties to
each such assignment shall execute and deliver to the Administrative Agent an
Assignment and Acceptance, together with a processing and recordation fee of
$3,500 and (iv) the assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire. Upon acceptance and
recording pursuant to paragraph (e) of this Section 9.04, from and after the
effective date specified in each Assignment and Acceptance, which effective date
shall be at least five Business Days after the execution thereof, (A) the
assignee thereunder shall be a party hereto and, to the extent of the interest
assigned by such Assignment and Acceptance, have the rights and obligations of a
Lender under this Agreement and (B) the assigning Lender thereunder shall, to
the extent of the interest assigned by such Assignment and Acceptance, be
released from its obligations under this Agreement (and, in the case of an
Assignment and Acceptance covering all or the remaining portion of an assigning
Lender's rights and obligations under this Agreement, such Lender shall cease to
be a party hereto but shall continue to be entitled to the benefits of Sections
2.12, 2.14, 2.18 and 9.05, as well as to any Fees accrued for its account and
not yet paid).
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(c) By executing and delivering an Assignment and Acceptance,
the assigning Lender thereunder and the assignee thereunder shall be deemed to
confirm to and agree with each other and the other parties hereto as follows:
(i) such assigning Lender warrants that it is the legal and beneficial owner of
the interest being assigned thereby free and clear of any adverse claim and that
its Revolving Credit Commitment, and the outstanding balances of its Revolving
Loans and Competitive Loans, in each case without giving effect to assignments
thereof which have not become effective, are as set forth in such Assignment and
Acceptance, (ii) except as set forth in (i) above, such assigning Lender makes
no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with this
Agreement, or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of this Agreement, any other Loan Document or any other
instrument or document furnished pursuant hereto, or the financial condition of
the Borrowers or any Subsidiary or the performance or observance by the
Borrowers or any Subsidiary of any of its obligations under this Agreement, any
other Loan Document or any other instrument or document furnished pursuant
hereto; (iii) such assignee represents and warrants that it is legally
authorized to enter into such Assignment and Acceptance; (iv) such assignee
confirms that it has received a copy of this Agreement, together with copies of
the most recent financial statements, if any, delivered pursuant to Section 5.04
and such other documents and information as it has deemed appropriate to make
its own credit analysis and decision to enter into such Assignment and
Acceptance; (v) such assignee will independently and without reliance upon the
Administrative Agent, such assigning Lender or any other Lender and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
this Agreement; (vi) such assignee appoints and authorizes the Administrative
Agent to take such action as agent on its behalf and to exercise such powers
under this Agreement as are delegated to the Administrative Agent by the terms
hereof, together with such powers as are reasonably incidental thereto; and
(vii) such assignee agrees that it will perform in accordance with their terms
all the obligations which by the terms of this Agreement are required to be
performed by it as a Lender.
(d) The Administrative Agent, acting for this purpose as an
agent of the Borrowers, shall maintain at one of its offices in The City of New
York a copy of each Assignment and Acceptance delivered to it and a register for
the recordation of the names and addresses of the Lenders, and the Commitment
of, and principal amount of the Loans owing to, each Lender pursuant to the
terms hereof from time to time (the "Register"). The entries in the Register
shall be conclusive and the Borrowers, the Administrative Agent and the Lenders
may treat each person whose name is recorded in the Register pursuant to the
terms hereof as a Lender hereunder
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for all purposes of this Agreement, notwithstanding notice to the contrary. The
Register shall be available for inspection by the Borrowers and any Lender, at
any reasonable time and from time to time upon reasonable prior notice.
(e) Upon its receipt of a duly completed Assignment and
Acceptance executed by an assigning Lender and an assignee, an Administrative
Questionnaire completed in respect of the assignee (unless the assignee shall
already be a Lender hereunder), the processing and recordation fee referred to
in paragraph (b) above and, if required, the written consent of each Borrower
and the Administrative Agent to such assignment, the Administrative Agent shall
(i) accept such Assignment and Acceptance, (ii) record the information contained
therein in the Register and (iii) give prompt notice thereof to the Lenders. No
assignment shall be effective unless it has been recorded in the Register as
provided in this paragraph (e).
(f) Each Lender may without the consent of the Borrowers or
the Administrative Agent sell participations to one or more banks or other
entities in all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans owing to it);
provided, however, that (i) such Lender's obligations under this Agreement shall
remain unchanged, (ii) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations, (iii) the participating
banks or other entities shall be entitled to the benefit of the cost protection
provisions contained in Sections 2.12, 2.14 and 2.18 to the same extent as if
they were Lenders; provided that no such participating bank or entity shall be
entitled to receive any greater amount pursuant to such Sections than a Lender
would have been entitled to receive in respect of the amount of the
participation sold by such Lender to such participating bank or entity had no
sale occurred, and (iv) the Borrowers, the Administrative Agent and the Lenders
shall continue to deal solely and directly with such Lender in connection with
such Lender's rights and obligations under this Agreement, and such Lender shall
retain the sole right to enforce the obligations of the Borrowers relating to
the Loans and to approve any amendment, modification or waiver of any provision
of this Agreement (other than amendments, modifications or waivers decreasing
any fees payable hereunder or the amount of principal of or the rate at which
interest is payable on the Loans, extending any scheduled principal payment date
or date fixed for the payment of interest on the Loans or changing or extending
the Commitments).
(g) Any Lender or participant may, in connection with any
assignment or participation or proposed assignment or participation pursuant to
this Section 9.04, disclose to the assignee or participant or proposed assignee
or participant any information relating to a Borrower furnished to such Lender
by or on
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behalf of the Borrowers; provided that, prior to any such disclosure of
information designated by a Borrower as confidential, each such assignee or
participant or proposed assignee or participant shall execute an agreement
whereby such assignee or participant shall agree (subject to customary
exceptions) to preserve the confidentiality of such confidential information on
terms no less restrictive than those applicable to the Lenders pursuant to
Section 9.16.
(h) Any Lender may at any time assign all or any portion of
its rights under this Agreement to a Federal Reserve Bank to secure extensions
of credit by such Federal Reserve Bank to such Lender; provided that no such
assignment shall release a Lender from any of its obligations hereunder or
substitute any such Bank for such Lender as a party hereto. In order to
facilitate such an assignment to a Federal Reserve Bank, the applicable Borrower
shall, at the request of the assigning Lender, duly execute and deliver to the
assigning Lender a promissory note or notes evidencing the Loans made to such
Borrower by the assigning Lender hereunder.
(i) A Borrower shall not assign or delegate any of its rights
or duties hereunder without the prior written consent of the Administrative
Agent and each Lender, and any attempted assignment without such consent shall
be null and void.
SECTION 9.05. Expenses; Indemnity. (a) Each Borrower agrees to
pay all out-of-pocket expenses incurred by the Administrative Agent in
connection with the preparation and administration of this Agreement and the
other Loan Documents or in connection with any amendments, modifications or
waivers of the provisions hereof or thereof (whether or not the transactions
hereby contemplated shall be consummated) or incurred by the Administrative
Agent or any Lender in connection with the enforcement or protection of their
rights in connection with this Agreement and the other Loan Documents or in
connection with the Loans made issued hereunder, including the fees, charges and
disbursements of Cravath, Swaine & ▇▇▇▇▇, counsel for the Administrative Agent,
and, in connection with any such enforcement or protection, the fees, charges
and disbursements of any other counsel for the Administrative Agent or any
Lender.
(b) Each Borrower agrees to indemnify the Administrative Agent
and each Lender, each Affiliate of any of the foregoing persons and each of
their respective directors, officers, employees and agents (each such person
being called an "Indemnitee") against, and to hold each Indemnitee harmless
from, any and all losses, claims, damages, liabilities and related expenses,
including reasonable counsel fees, charges and disbursements, incurred by or
asserted against any Indemnitee arising out of, in any way connected with, or as
a result of (i) the execution or delivery of this Agreement or any other Loan
Document or any agreement or instrument
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contemplated thereby, the performance by the parties thereto of their respective
obligations thereunder or the consummation of the Transactions and the other
transactions contemplated thereby, (ii) the use of the proceeds of the Loans, or
(iii) any claim, litigation, investigation or proceeding relating to any of the
foregoing, whether or not any Indemnitee is a party thereto; provided that such
indemnity shall not, as to any Indemnitee, be available to the extent that such
losses, claims, damages, liabilities or related expenses are determined by a
court of competent jurisdiction by final and nonappealable judgment to have
resulted from the gross negligence or wilful misconduct of such Indemnitee.
(c) The provisions of this Section 9.05 shall remain operative
and in full force and effect regardless of the expiration of the term of this
Agreement, the consummation of the transactions contemplated hereby, the
repayment of any of the Loans, the expiration of the Commitments, the invalidity
or unenforceability of any term or provision of this Agreement or any other Loan
Document, or any investigation made by or on behalf of the Administrative Agent
or any Lender. All amounts due under this Section 9.05 shall be payable on
written demand therefor.
SECTION 9.06. Right of Setoff. If an Event of Default shall
have occurred and be continuing, each Lender is hereby authorized at any time
and from time to time, to the fullest extent permitted by law, to set off and
apply any and all deposits (general or special, time or demand, provisional or
final) at any time held and other indebtedness at any time owing by such Lender
to or for the credit or the account of the applicable Borrower against any of
and all the obligations of such Borrower now or hereafter existing under this
Agreement and other Loan Documents held by such Lender, irrespective of whether
or not such Lender shall have made any demand under this Agreement or such other
Loan Document and although such obligations may be unmatured. The rights of each
Lender under this Section are in addition to other rights and remedies
(including other rights of setoff) which such Lender may have.
SECTION 9.07. Applicable Law. THIS AGREEMENT AND THE OTHER
LOAN DOCUMENTS (OTHER THAN AS EXPRESSLY SET FORTH IN OTHER LOAN DOCUMENTS) SHALL
BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK.
SECTION 9.08. Waivers; Amendment. (a) No failure or delay of
the Administrative Agent or any Lender in exercising any power or right
hereunder or under any Loan Document shall operate as a waiver thereof, nor
shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power. The rights and remedies of the Administrative Agent and the
Lenders
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hereunder and under the other Loan Documents are cumulative and are not
exclusive of any rights or remedies which they would otherwise have. No waiver
of any provision of this Agreement or any other Loan Document or consent to any
departure by a Borrower therefrom shall in any event be effective unless the
same shall be permitted by paragraph (b) below, and then such waiver or consent
shall be effective only in the specific instance and for the purpose for which
given. No notice or demand on a Borrower in any case shall entitle such Borrower
to any other or further notice or demand in similar or other circumstances.
(b) Neither this Agreement nor any provision hereof may be
waived, amended or modified except pursuant to an agreement or agreements in
writing entered into by each of the Borrowers and the Required Lenders;
provided, however, that no such agreement shall (i) decrease the principal
amount of any Loan, or extend the maturity of or any scheduled principal payment
date or date for the payment of any interest on any Loan, or waive or excuse any
such payment or any part thereof, or decrease the rate of interest on any Loan,
without the prior written consent of each Lender affected thereby, (ii) change
or extend the Commitment of any Lender or postpone the date for the payment
thereof, or decrease the Facility Fees of any Lender or postpone the date for
the payment thereof, in each case without the prior written consent of such
Lender, or (iii) amend or modify the provisions of Section 2.15 or 2.20, the
provisions of this Section or the definition of "Required Lenders", or release
any Guarantor from its agreements pursuant to Section 2.20, without the prior
written consent of each Lender; provided further that no such agreement shall
amend, modify or otherwise affect the rights or duties of the Administrative
Agent hereunder or under any other Loan Document without the prior written
consent of the Administrative Agent.
SECTION 9.09. Interest Rate Limitation. Notwithstanding
anything herein to the contrary, if at any time the interest rate applicable to
any Loan, together with all fees, charges and other amounts which are treated as
interest on such Loan under applicable law (collectively the "Charges"), shall
exceed the maximum lawful rate (the "Maximum Rate") which may be contracted for,
charged, taken, received or reserved by the Lender holding such Loan in
accordance with applicable law, the rate of interest payable in respect of such
Loan hereunder, together with all Charges payable in respect thereof, shall be
limited to the Maximum Rate and, to the extent lawful, the interest and Charges
that would have been payable in respect of such Loan but were not payable as a
result of the operation of this Section shall be cumulated and the interest and
Charges payable to such Lender in respect of other Loans or periods shall be
increased (but not above the Maximum Rate therefor) until such cumulated amount,
together with interest thereon at the Federal Funds Effective Rate to the date
of repayment, shall have been received by such Lender.
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SECTION 9.10. Entire Agreement. This Agreement and the other
Loan Documents constitute the entire contract between the parties relative to
the subject matter hereof. Any previous agreement among the parties with respect
to the subject matter hereof is superseded by this Agreement and the other Loan
Documents. Nothing in this Agreement or in the other Loan Documents, expressed
or implied, is intended to confer upon any party other than the parties hereto
and thereto any rights, remedies, obligations or liabilities under or by reason
of this Agreement or the other Loan Documents.
SECTION 9.11. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING
OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER LOAN
DOCUMENTS. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, AS
APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN
THIS SECTION 9.11.
SECTION 9.12. Severability. In the event any one or more of
the provisions contained in this Agreement or in any other Loan Document should
be held invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions contained herein and therein
shall not in any way be affected or impaired thereby. The parties shall endeavor
in good-faith negotiations to replace the invalid, illegal or unenforceable
provisions with valid provisions the economic effect of which comes as close as
possible to that of the invalid, illegal or unenforceable provisions.
SECTION 9.13. Counterparts. This Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each
of which shall constitute an original but all of which when taken together shall
constitute a single contract, and shall become effective as provided in Section
9.03. Delivery of an executed signature page to this Agreement by facsimile
transmission shall be as effective as delivery of a manually signed counterpart
of this Agreement.
SECTION 9.14. Headings. Article and Section headings and the
Table of Contents used herein are for convenience of reference only, are not
part of this Agreement and are not to affect the construction of, or to be taken
into consideration in interpreting, this Agreement.
80
67
SECTION 9.15. Jurisdiction; Consent to Service of Process. (a)
Each Borrower hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of any New York State court or
Federal court of the United States of America sitting in New York City, and any
appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement or the other Loan Documents, or for recognition or
enforcement of any judgment, and each of the parties hereto hereby irrevocably
and unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in such New York State or, to the extent
permitted by law, in such Federal court. Each of the parties hereto agrees that
a final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law. Nothing in this Agreement shall affect any right that any
Lender may otherwise have to bring any action or proceeding relating to this
Agreement or the other Loan Documents against a Borrower or its properties in
the courts of any jurisdiction.
(b) Each Borrower hereby irrevocably and unconditionally
waives, to the fullest extent it may legally and effectively do so, any
objection which it may now or hereafter have to the laying of venue of any suit,
action or proceeding arising out of or relating to this agreement or the other
Loan Documents in any New York State court or Federal court sitting in New York
City. Each of the parties hereto hereby irrevocably waives, to the fullest
extent permitted by law, the defense of an inconvenient forum to the maintenance
of such action or proceeding in any such court.
(c) Each party to this Agreement irrevocably consents to
service of process in the manner provided for notices in Section 9.01. Nothing
in this Agreement will affect the right of any party to this Agreement to serve
process in any other manner permitted by law.
SECTION 9.16. Confidentiality. The Administrative Agent and
each of the Lenders agrees to keep confidential (and to use its best efforts to
cause its respective agents and representatives to keep confidential) the
Information (as defined below) and all copies thereof, extracts therefrom and
analyses or other materials based thereon, except that the Administrative Agent
or any Lender shall be permitted to disclose Information (a) to such of its
respective officers, directors, employees, agents, affiliates and
representatives as need to know such Information, (b) to the extent requested by
any regulatory authority, (c) to the extent otherwise required by applicable
laws and regulations or by any subpoena or similar legal process, (d) in
connection with any suit, action or proceeding relating to the enforcement of
its rights hereunder or under the other Loan Documents or (e) to the extent such
Information (i) becomes publicly available other than as a result of a breach of
81
68
this Agreement or (ii) becomes available to the Administrative Agent or any
Lender on a nonconfidential basis from a source other than a Borrower. For the
purposes of this Section, "Information" shall mean all financial statements,
certificates, reports, agreements and information (including all analyses,
compilations and studies prepared by the Administrative Agent or any Lender
based on any of the foregoing) that are received from a Borrower and related to
a Borrower, any shareholder of a Borrower or any employee, customer or supplier
of a Borrower, other than any of the foregoing that were available to the
Administrative Agent or any Lender on a nonconfidential basis prior to its
disclosure thereto by a Borrower, and which are in the case of Information
provided after the date hereof, clearly identified at the time of delivery as
confidential. The provisions of this Section 9.16 shall remain operative and in
full force and effect regardless of the expiration and term of this Agreement.
SECTION 9.17. Termination of Existing Credit Agreement. Each
of the undersigned Lenders that is a party to the Existing Credit Agreement and
solely in its capacity as a lender under the terms of the Existing Credit
Agreement hereby waives any requirement for notice provided in the Existing
Credit Agreement, and the Borrowers and each such lender hereby agree that the
Existing Credit Agreement shall terminate as of the date hereof.
82
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed by their respective authorized officers as of the
day and year first above written.
POPULAR, INC.,
by
--------------------------------
Name:
Title:
by
--------------------------------
Name:
Title:
POPULAR NORTH AMERICA, INC.,
by
--------------------------------
Name:
Title:
by
--------------------------------
Name:
Title:
THE CHASE MANHATTAN BANK, individually
and as Administrative Agent,
by
--------------------------------
Name:
Title:
83
BARCLAYS BANK PLC
by
-------------------------
Name:
Title:
CARIPLO-CASSA DI RISPARMIO DELLE
PROVINCIE LOMBARDE S.P.A.
by
-------------------------
Name:
Title:
by
-------------------------
Name:
Title:
CITIBANK, N.A.
by
-------------------------
Name:
Title:
COMERICA BANK
by
-------------------------
Name:
Title:
THE FIRST NATIONAL BANK OF
CHICAGO
by
-------------------------
Name:
Title:
LASALLE NATIONAL BANK
by
-------------------------
Name:
Title:
▇▇
▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇ ▇▇▇▇ BRANCH
AND/OR CAYMAN ISLANDS BRANCH
by
-------------------------
Name:
Title:
by
-------------------------
Name:
Title:
BANCO BILBAO VIZCAYA S.A.
by
-------------------------
Name:
Title:
BANCA MONTE DEI PASCHI DI SIENA
S.P.A. NEW YORK BRANCH
by
-------------------------
Name:
Title:
by
-------------------------
Name:
Title:
MELLON BANK
by
-------------------------
Name:
Title:
BANCA CRT SPA
by
-------------------------
Name:
Title:
by
-------------------------
Name:
Title:
85
EXHIBIT A
[Form of]
ASSIGNMENT AND ACCEPTANCE
Reference is made to the Credit Agreement dated as of [_____________],
1998 (the "Credit Agreement"), among Popular, Inc., a Puerto Rico corporation
("Popular"), Popular North America, Inc., a Delaware corporation ("Popular North
America"),(each a "Borrower", and collectively, the "Borrowers"), the lenders
from time to time party thereto, initially consisting of those listed on
Schedule 2.01 thereto (the "Lenders") and The Chase Manhattan Bank, as
administrative agent for the Lenders (in such capacity, the "Administrative
Agent"). Terms defined in the Credit Agreement are used herein with the same
meanings.
1. The Assignor hereby sells and assigns, without recourse, to the
Assignee, and the Assignee hereby purchases and assumes, without recourse, from
the Assignor, effective as of the Effective Date set forth below (but not prior
to the registration of the information contained herein in the Register pursuant
to Section 9.04(e) of the Credit Agreement), the interests set forth below (the
"Assigned Interest") in the Assignor's rights and obligations under the Credit
Agreement, including, without limitation, the amounts and percentages set forth
below of (i) the Commitments of the Assignor on the Effective Date and (ii) the
Loans owing to the Assignor which are outstanding on the Effective Date. Each of
the Assignor and the Assignee hereby makes and agrees to be bound by all the
representations, warranties and agreements set forth in Section 9.04(c) of the
Credit Agreement, a copy of which has been received by each such party. From and
after the Effective Date (i) the Assignee shall be a party to and be bound by
the provisions of the Credit Agreement and, to the extent of the interests
assigned by this Assignment and Acceptance, have the rights and obligations of a
Lender thereunder and under the Loan Documents and (ii) the Assignor shall, to
the extent of the interests assigned by this Assignment and Acceptance,
relinquish its rights and be released from its obligations under the Credit
Agreement.
2. This Assignment and Acceptance is being delivered to the
Administrative Agent together with (i) if the Assignee is organized under the
laws of a jurisdiction outside the United States, the forms specified in Section
2.18(g) of the Credit Agreement, duly completed and executed by such Assignee,
(ii) if the Assignee is not already a Lender under the Credit Agreement, an
Administrative Questionnaire in a form supplied by the
86
2
Administrative Agent and (iii) a processing and recordation fee of $3,500.
3. This Assignment and Acceptance shall be governed by and construed in
accordance with the laws of the State of New York.
Date of Assignment:
Legal Name of Assignor:
Legal Name of Assignee:
Assignee's Address for Notices:
Effective Date of Assignment (may not be
fewer than 5 Business Days after the Date of
Assignment):
Percentage Assigned of
Applicable
Facility/Commitment (set
Principal Amount forth, to at least 8
Assigned (and decimals, as a
Identifying percentage of the
information as to Facility and the
individual aggregate Commitments of
Facility/commitment Competitive Loans) all Lenders thereunder)
------------------- ----------------- -----------------------
$ %
Revolving Credit
Competitive Loans
The terms set forth above and
on the reverse side hereof are
hereby agreed to: Accepted */
87
3
, as Assignor THE CHASE MANHATTAN BANK,
----------------- as Administrative Agent
By: By:
--------------------------- -------------------------
Name: Name:
Title: Title:
, as Assignee POPULAR, INC.
-----------------
By: By:
--------------------------- -------------------------
Name: Name:
Title: Title:
POPULAR NORTH AMERICA, INC.
By:
-------------------------
Name:
Title:
88
EXHIBIT B
89
EXHIBIT C
FORM OF REQUEST FOR EXTENSION OF TERMINATION DATE
-----------------, ----
The Chase Manhattan Bank
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Dear Madam or Sir:
We refer to Section ___ of the Credit Agreement dated as of ____ __, 199_ among
Popular, Inc., Popular North America, Inc. the Banks listed on the signature
pages thereof, and the Chase Manhattan Bank, as Administrative Agent, and hereby
request that the Banks extend the Termination Date (as defined therein) to
_____, ____. The undersigned hereby represents to the Administrative Agent and
the Banks that as of the date hereof no Default or Event of Default exists.
Very truly yours,
POPULAR, INC.,
By:
-------------------------
Title:
POPULAR NORTH AMERICA, INC.,
By:
-------------------------
Title:
90
SCHEDULE 2.01
Revolving Credit Commitments
Name and Address of Lender Revolving Credit Commitment
-------------------------- ---------------------------
THE CHASE MANHATTAN BANK $40,000,000
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Tel: ▇▇▇-▇▇▇-▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
Attn: ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
BARCLAYS BANK PLC $40,000,000
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Tel: ▇▇▇-▇▇▇-▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
Attn: ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
CARIPLO-CASSA DI RISPARMIO $25,000,000
DELLE PROVINCIE LOMBARDE S.P.A.
▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Tel: ▇▇▇-▇▇▇-▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
Attn: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
CITIBANK, N.A. $25,000,000
▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Tel: ▇▇▇-▇▇▇-▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
Attn: ▇▇▇▇▇ ▇▇▇▇▇▇▇
COMERICA BANK $25,000,000
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇-▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Tel: ▇▇▇-▇▇▇-▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
Attn: ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
THE FIRST NATIONAL BANK OF CHICAGO $25,000,000
Mail Suite ▇▇▇▇
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Tel: ▇▇▇-▇▇▇-▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
Attn: R. ▇▇▇▇ ▇▇▇▇▇▇▇▇▇
LASALLE NATIONAL BANK $25,000,000
▇▇▇ ▇. ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Tel: ▇▇▇-▇▇▇-▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
Attn: ▇▇▇▇ ▇. ▇▇▇▇▇▇▇
NORDDEUTSCHE LANDESBANK GIROZENTTRALE
NEW YORK BRANCH AND/OR CAYMAN ISLANDS BRANCH $25,000,000
▇▇▇▇ ▇▇▇▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Tel: ▇▇▇-▇▇▇-▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
Attn: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
91
2
BANCA MONTE DEI PASCHI DI SIENA S.P.A. (NEW YORK BRANCH) 25,000,000
▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
Tel: ▇▇▇-▇▇▇-▇▇▇▇
Fax:
Attn: Gulio Natalicci
MELLON BANK $25,000,000
▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
Tel: ▇▇▇-▇▇▇-▇▇▇▇
Fax:
Attn: ▇▇▇▇▇ ▇▇▇▇▇▇▇▇
BANCA CRT SPA $25,000,000
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Tel: ▇▇▇-▇▇▇-▇▇▇▇
Fax:
Attn: J. ▇▇▇▇▇ ▇▇▇▇▇▇
BANCO BILBAO VIZCAYA S.A. $15,000,000
▇.▇. ▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
Tel: ▇▇▇-▇▇▇-▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
Attn: ▇▇▇▇▇▇▇▇▇ ▇▇▇▇
92
Schedule 3.08 to
Credit Agreement dated October 27, 1998
among Popular, Inc., Popular North America, Inc.
and The Chase Manhattan Bank
Subsidiaries
Popular, Inc. is the owner of all issued and outstanding shares of common stock
of Popular De Puerto Rico.
Popular de Puerto Rico
Popular Finance, Inc., Popular Leasing @ Rental, Inc. and Popular
Mortgage, Inc. are wholly-owned subsidiaries of Popular de Puerto
Rico.
Besides Popular de Puerto Rico, Popular, Inc. is the owner of the
following wholly-owned subsidiaries:
a. Popular International Bank, Inc.
Popular North America is a wholly-owned subsidiary of Popular
International Bank, Inc., and is the parent of Popular North America,
Popular (Texas), Popular, N.A. (Florida), Popular, FSB (New Jersey),
Popular, N.A. (California) and Popular Cash Express.
Popular North America, Inc. is the owner of Popular (Illinois) who in turn is
the owner of Popular Leasing, U.S.
b. Popular Securities, Inc.
93
Schedule 3.09 to
Credit Agreement dated October 27, 1998
among Popular, Inc., Popular North America, Inc.
and The Chase Manhattan Bank
Litigation; Compliance with Laws
None
94
Schedule 6.01 to
Credit Agreement dated October 27, 1998
among Popular, Inc., Popular North America, Inc.,
The Chase Manhattan Bank and the Lenders listed in
Schedule 2.01 to the Agreement
Liens as of September 30, 1998.
A. Securities Pledged for potential daylight overdrafts in Popular, inc.
demand deposit account with Popular de Puerto Rico (at par value):
1. Non Voting Common Stock of Venture
Capital Fund, Inc. (1,500 shares).................... $ 1,500,000
2. Municipality of Bayamon-Municipal Revenue Bond
1995 Series A, at 8.50% due 6/30/05.................. 250,000
3. Doral Financial Corporation 8% Convertible
Preferred Stock (8,460 shares)....................... 8,460,000
4. Tax Credit Enhanced Film Fund of
Puerto Rice (75 shares of common stock).............. 1,500,000
---------
SUB TOTAL.................. $11,710,000
B. Securities sold under repurchase agreements with
maturities of less than one year:
1. U.S. Treasury Notes at 6.875% due 8/31/99............ $50,000,000
-----------
TOTALS..................... $61,710,000