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EXHIBIT 10.10
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SECOND AMENDED AND RESTATED CREDIT AGREEMENT
AMONG
PACIFIC GATEWAY EXCHANGE, INC.
PACIFIC GATEWAY EXCHANGE (BERMUDA) LIMITED
AND
BANK OF AMERICA, N.A.
AS ADMINISTRATIVE AGENT
DEUTSCHE BANK SECURITIES INC.
AS SYNDICATION AGENT
AND
BANC OF AMERICA SECURITIES LLC
DEUTSCHE BANK SECURITIES INC.
AS JOINT LEAD ARRANGERS
AND
AS JOINT BOOK MANAGERS
AND
THE
LENDERS
DATED AS OF MAY 31, 2000
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TABLE OF CONTENTS
ARTICLE I. DEFINITIONS
1.01. Definitions...................................................1
1.02. Accounting and Other Terms...................................18
ARTICLE II. THE LOAN FACILITY
2.01. Loans........................................................18
2.02. Making Advances..............................................18
2.03. Evidence of Debt for Borrowed Money..........................20
2.04. Optional Prepayments.........................................20
2.05. Mandatory Prepayments........................................21
2.06. Repayment....................................................21
2.07. Interest.....................................................21
2.08. Default Interest.............................................22
2.09. INTENTIONALLY DELETED........................................22
2.10. Fees.........................................................22
2.11. Reduction and Adjustment of Commitments......................23
2.12. Funding Losses...............................................24
2.13. Computations and Manner of Payments..........................24
2.14. Intentionally Deleted........................................25
2.15. Use of Proceeds..............................................25
2.16. Collateral and Collateral Call...............................25
ARTICLE III. LETTERS OF CREDIT
3.01. Issuance of Letters of Credit................................27
3.02. Letters of Credit Fee........................................27
3.03. Reimbursement Obligations....................................27
3.04. Lenders' Obligations.........................................29
3.05. Administrative Agent's Obligations...........................29
ARTICLE IV. CONDITIONS PRECEDENT
4.01. Conditions Precedent to the Closing Date.....................30
4.02. Conditions Precedent to All Advances.........................32
ARTICLE V. REPRESENTATIONS AND WARRANTIES
5.01. Representations and Warranties...............................33
5.02. Survival of Representations and Warranties...................39
ARTICLE VI. GENERAL COVENANTS
6.01. Preservation of Existence and Similar Matters................39
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6.02. Business; Compliance with Applicable Law. ...................40
6.03. Maintenance of Properties....................................40
6.04. Accounting Methods and Financial Records.....................40
6.05. Insurance....................................................40
6.06. Payment of Taxes and Claims..................................40
6.07. Visits and Inspections.......................................40
6.08. Use of Proceeds..............................................41
6.09. Indemnity....................................................41
6.10. Environmental Law Compliance.................................42
6.11. Acquisitions, Generally......................................42
6.12. Subsidiary Designation.......................................43
6.13. Accounts.....................................................43
ARTICLE VII. INFORMATION COVENANTS
7.01. Quarterly Financial Statements and Information...............43
7.02. Annual Financial Statements and Information..................43
7.03. Compliance Certificates......................................43
7.04. Copies of Other Reports and Notices..........................43
7.05. Weekly Reporting.............................................44
7.06. Monthly Reporting............................................44
7.07. Administrative Agent Financial Advisor.......................45
7.08. Notice of Default and Other Matters..........................45
7.09. ERISA Reporting Requirements.................................45
ARTICLE VIII. NEGATIVE COVENANTS
8.01. Financial Covenants..........................................46
8.02. Debt for Borrowed Money......................................47
8.03. Liens........................................................47
8.04. Investments..................................................47
8.05. Liquidation, Disposition or Acquisition of Assets,
Merger, New Subsidiaries ..................................48
8.06. Guaranties; Contingent Liabilities...........................48
8.07. Restricted Payments..........................................49
8.08. Affiliate Transactions.......................................49
8.09. Compliance with ERISA........................................49
8.10. Capital Stock................................................49
8.11. Sale and Leaseback...........................................50
8.12. Sale or Discount of Receivables..............................50
8.13. Limitation on Restrictive Agreements.........................50
8.14. Amendment of Material Agreements. ..........................50
8.15. Name Changes. ..............................................50
8.16. Cable Contracts..............................................50
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ARTICLE IX. EVENTS OF DEFAULT
9.01. Events of Default............................................50
9.02. Remedies upon Default........................................53
9.03. Cumulative Rights............................................54
9.04. Waivers......................................................54
9.05. Performance by Administrative Agent or any Lender............54
9.06. Expenditures.................................................55
9.07. Control......................................................55
ARTICLE X. THE ADMINISTRATIVE AGENT
10.01. Authorization and Action.....................................55
10.02. Administrative Agent's Reliance, Etc.........................55
10.03. Bank of America, N.A. and Affiliates.........................56
10.04. Lender Credit Decision.......................................56
10.05. Indemnification by Lenders...................................56
10.06. Successor Administrative Agent...............................57
ARTICLE XI. MISCELLANEOUS
11.01. Amendments and Waivers.......................................57
11.02. Notices......................................................58
11.03. Parties in Interest..........................................60
11.04. Assignments and Participations...............................60
11.05. Sharing of Payments..........................................61
11.06. Right of Set-off.............................................61
11.07. Costs, Expenses, and Taxes...................................62
11.08. Rate Provision...............................................63
11.09. Severability.................................................63
11.10. Exceptions to Covenants......................................63
11.11. Waivers......................................................63
11.12. Counterparts.................................................63
11.13. GOVERNING LAW; WAIVER OF JURY TRIAL..........................64
11.14. RELEASE......................................................64
11.15. Waiver of Civil Code ss.1542.................................65
11.16. ENTIRE AGREEMENT.............................................66
11.17. Confidentiality..............................................66
11.18. Amendment, Restatement, Extension, Renewal and Increase......66
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TABLE OF SCHEDULES AND EXHIBITS
SCHEDULES
Schedule 1.02 - Subsidiaries Required to be Approved Subsidiaries as
of Closing Date
Schedule 1.03 - Excluded IRU Agreements
Schedule 1.04 - Included IRU Agreements
Schedule 5.01(a) - Jurisdictions of Qualification, Ownership and Capital
Structure - the Borrower and its Subsidiaries
Schedule 5.01(f) - Non-Compliance with FCC or any applicable PUC
Schedule 5.01(h) - Existing Litigation of the Borrower and its Subsidiaries
Schedule 5.01(q) - Redemption Options
Schedule 5.01(w) - Accounts
Schedule 8.02 - Existing Debt and Liabilities of the Borrower and the
Subsidiaries
Schedule 8.03 - Existing Liens of the Borrower and the Subsidiaries
Schedule 8.04 - Existing Investments of the Borrower and the Subsidiaries
Schedule 8.08 - Loan and Advances on the Closing Date
Schedule 8.08 - Permitted Affiliate Non-Market Transactions
Schedule 8.13 - Contract Restrictions
EXHIBITS
Exhibit A - Form of Domestic Revolver Note
Exhibit B - Form of Compliance Certificate
Exhibit C - Form of Borrowing Notice
Exhibit D - Intentionally Deleted
Exhibit E - Form of Assignment and Acceptance
Exhibit F - Form of Foreign Unlimited Guaranty
Exhibit G - Form of Domestic Unlimited Guaranty
Exhibit H - Form of Foreign Revolver Note
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$75,638,982.31
PACIFIC GATEWAY EXCHANGE, INC.
PACIFIC GATEWAY EXCHANGE (BERMUDA) LIMITED
SECOND AMENDED AND RESTATED CREDIT AGREEMENT
THIS SECOND AMENDED AND RESTATED CREDIT AGREEMENT is dated as of May 31,
2000, among PACIFIC GATEWAY EXCHANGE, INC., a Delaware corporation (the
"Domestic Borrower"), PACIFIC GATEWAY EXCHANGE (BERMUDA) LIMITED, a Bermuda
company (the "Foreign Borrower"), the Lenders (as defined below), BANC OF
AMERICA SECURITIES LLC, as joint lead arranger and joint book manager, DEUTSCHE
BANK SECURITIES INC., as joint lead arranger, joint book manager and syndication
agent and BANK OF AMERICA, N.A., as a Lender and Administrative Agent.
BACKGROUND.
WHEREAS, the Domestic Borrower, the Administrative Agent and the Lenders
entered into a 364-day Credit Agreement on December 18, 1998;
WHEREAS, the Domestic Borrower, the Foreign Borrower and the Lenders
entered into a First Amended and Restated Credit Agreement on November 23, 1999,
as amended (the "Original Credit Agreement");
WHEREAS, the Domestic Borrower and the Foreign Borrower have requested the
Administrative Agent and the Lenders to amend and restate the Original Credit
Agreement.
AGREEMENT.
NOW, THEREFORE, for valuable consideration hereby acknowledged, the
parties hereto agree as follows:
ARTICLE I. DEFINITIONS
1.01. Definitions. As used in this Agreement, the following terms have the
respective meanings indicated below (such meanings to be applicable equally to
both the singular and plural forms of such terms):
"Accrual Rate" means the per annum interest rate equal to the Base Rate
plus 2.00%.
"Administrative Agent" means Bank of America, N.A. f/k/a Bank of America,
NT&SA in
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its capacity as Administrative Agent hereunder, or any successor Administrative
Agent appointed pursuant to Section 10.06 hereof.
"Advance" means an advance made by a Lender to either Borrower pursuant to
Section 2.01 hereof or any payment by Administrative Agent of a draft drawn
under any Letter of Credit which is not reimbursed by the Borrower as provided
in Section 3.03(d), which shall include Domestic Revolver Advances and Foreign
Revolver Advances.
"Affiliate" means a Person that directly, or indirectly through one or
more intermediaries, Controls or is Controlled By or is Under Common Control
with another Person.
"Agreement" means this Credit Agreement, as hereafter amended, modified,
increased, extended, restated or supplemented from time to time.
"Applicable Law" means in respect of any Person, all provisions of Laws of
Tribunals applicable to such Person, and all orders and decrees of all courts
and arbitrators in proceedings or actions to which the Person in question is a
party.
"Applicable Margin" means, with respect to Base Rate Advances, 2.50% per
annum.
"Applicable Specified Percentage" means with respect to any Lender, in the
case of the Domestic Revolver Loan, such Lender's Domestic Revolver Specified
Percentage, in the case of the Foreign Revolver Loan, such Lender's Foreign
Revolver Specified Percentage.
"Application" means any stand-by letter of credit application delivered to
Administrative Agent for or in connection with any stand-by Letter of Credit
pursuant to Article III hereof, in Administrative Agent's standard form for
stand-by multicurrency letters of credit.
"Approved Subsidiary" means (i) any wholly owned Domestic DB Subsidiary
which has executed an Unlimited Guaranty of Obligations and security agreement
pledging its assets to secure the Obligations and for which 100% of the Capital
Stock is subject to the first and prior Lien of the Lenders or (ii) with respect
to any wholly owned FB Subsidiary or Foreign DB Subsidiary (A) that has executed
an Unlimited Guaranty of the Obligations of the Foreign Borrower and its
Subsidiaries under the Foreign Commitment, (B) that has executed a security
agreement pledging its assets to secure the Obligations of the Foreign Borrower
and its Subsidiaries under the Foreign Commitment and for which 100% of the
Capital Stock is subject to the first and prior Lien of the Lenders, (C) and for
which the Administrative Agent has received an opinion of foreign counsel in
form reasonably acceptable to Administrative Agent, or (iii) any Subsidiary that
the Lenders, in their sole discretion agree and acknowledge is an Approved
Subsidiary in a subsequent agreement.
"Asset Sale" means any sale of goods, real property (including leaseholds)
accounts, contract rights or general intangibles but shall not include (i) sales
of wholesale or retail telephone services, internet services or data-packet
services which are provided to individual retail, wholesale or internet
customers in the ordinary course of business or (ii) the first $50,000.00 in the
aggregate over the term of this Agreement of sales of goods, real property,
furniture, fixtures or equipment.
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"Assignment and Acceptance" means an assignment and acceptance entered
into by a Lender and an assignee in accordance with the terms and conditions of
Section 11.04 hereof, and accepted by Administrative Agent, in the form of
Exhibit E hereto.
"Auditor" means PricewaterhouseCoopers or other independent certified
public accountants selected by the Borrower and acceptable to Administrative
Agent.
"Authorized Officer" means, with respect to either Borrower and its
Subsidiaries respectively, any of the Chief Executive Officer, the Chief
Operating Officer, the Chief Financial Officer or any Vice President of the
Domestic Borrower.
"Bank Affiliate" means the holding company of any Lender, or any wholly
owned direct or indirect subsidiary of such holding company or of such Lender.
"Base Advance" means an Advance under the Domestic Revolver Loan or the
Foreign Revolver Loan, bearing interest at the Base Rate.
"Base Rate" means a per annum interest rate equal to the lesser of (a) the
Highest Lawful Rate, and (b) the sum of the Applicable Margin plus the higher of
(i) a fluctuating rate per annum as shall be in effect from time to time
announced or published by Bank of America, N.A. as its "Reference Rate", and
which may not necessarily be the lowest interest rate charged by Bank of
America, N.A., and (ii) the Federal Funds Rate in effect at such time plus
0.50%.
"Board of Directors" means the Board of Directors of the Domestic Borrower
or any committee thereof duly authorized to act on behalf of such Board.
"Borrower" or "Borrowers" means individually the Domestic Borrower and the
Foreign Borrower, and collectively both the Domestic Borrower and the Foreign
Borrower.
"Borrowing" means a borrowing made on the same day to the same Borrower.
"Borrowing Notice" has the meaning set forth in Section 2.02(a) hereof.
"Business Day" means a day on which banks are open for the transaction of
business as required by this Agreement in New York, New York, and as otherwise
relevant to the determination to be made or the action to be taken.
"Capital Expenditures" means capital expenditures, as defined in
accordance with GAAP.
"Capital Leases" means capital leases and subleases, as defined in
accordance with GAAP.
"Capital Stock" means, as to any Person, the equity interests in such
Person, including,
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without limitation, the shares of each class of capital stock of any Person that
is a corporation, each class of partnership interests (including without
limitation, general, limited and preference units) in any Person that is a
partnership, and each membership interest in any Person that is a limited
liability company.
"Closing Date" means the date on which all of the conditions precedent set
forth in Section 4.01 have been satisfied or waived by the Lenders.
"Change of Control" means the occurrence of any one or more of the
following events: (i) any event which constitutes a change in Control of the
Domestic Borrower, or (ii) any event which constitutes a change in Control of
the Foreign Borrower, or (iii) any event which results in either Borrower's
failure to own and control 100% of the Capital Stock of any of their
Subsidiaries, except as otherwise expressly permitted hereunder or as scheduled
on Schedule 5.01(a) hereto.
"Cisco Credit Facility" means that certain letter agreement, dated as of
December 22, 1999, among the Domestic Borrower and Onyx Networks, Inc., a
Delaware corporation, as borrowers and Cisco Systems Capital Corporation, as
lender.
"Code" means the Internal Revenue Code of 1986, as amended, and any
reference to any provision of the Code shall include all successor provisions
thereto.
"Collateral" has the meaning ascribed thereto in Section 2.16 hereof.
"Commitment" means the Domestic Commitment, the Foreign Commitment and the
Letter of Credit Commitment, which in the aggregate shall not exceed
$75,638,982.31 at any time or such lesser amount as provided herein.
"Commitment Fee" means the Domestic Revolver Commitment Fee and the
Foreign Revolver Commitment Fee.
"Communications Act" means, collectively, the Communications Act of 1934,
as amended by the Telecommunications Act of 1996, and as further amended, and
the rules and regulations promulgated thereunder, as from time to time in
effect.
"Compliance Certificate" means a certificate of an Authorized Officer in
the form of Exhibit B hereto, (a) certifying that such individual has no
knowledge that a Default or Event of Default has occurred and is continuing, or
if a Default or Event of Default has occurred and is continuing, a statement as
to the nature thereof and the action being taken or proposed to be taken with
respect thereto and (b) setting forth detailed calculations with respect to the
covenants described in Sections 8.01 and 8.02 hereof.
"Consequential Loss" means any loss, cost or expense incurred by any
Lender as a result of the timing of the payment or Advance or in liquidating,
redepositing, redeploying or reinvesting the principal amount so paid or
affected by the timing of the Advance or the
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circumstances described in Sections 2.04, 2.05 or 2.06 hereof, which amount
shall be the sum of (i) the interest that, but for the payment or timing of
Advance, such Lender would have earned in respect of that principal amount,
reduced, if such Lender is able to redeposit, redeploy, or reinvest the
principal amount, by the interest earned by such Lender as a result of
redepositing, redeploying or reinvesting the principal amount plus (ii) any
expense or penalty incurred by such Lender by reason of liquidating,
redepositing, redeploying or reinvesting the principal amount. Each
determination by each Lender of any Consequential Loss is, in the absence of
manifest error, presumptive evidence of the validity of such claim, which upon
request by either Borrower shall be certified in a certificate.
"Contingent Liability" means, as to any Person, any obligation or
Guaranty, contingent or otherwise, of such Person guaranteeing or having the
economic effect of guaranteeing any Debt or obligation of any other Person in
any manner, whether directly or indirectly, including without limitation 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 Debt or to purchase
(or to advance or supply funds for the purchase of) any security for the payment
of such Debt, (b) to purchase Property or services for the purpose of assuring
the owner of such Debt of its payment, or (c) to maintain the solvency, working
capital, equity, cash flow, fixed charge or other coverage ratio, or any other
financial condition of the primary obligor so as to enable the primary obligor
to pay any Debt or to comply with any agreement relating to any Debt or
obligation, but excluding endorsement of checks, drafts and other instruments in
the ordinary course of business, provided that this definition of "Contingent
Liability" shall not include Guaranties by either Borrower or any Subsidiary of
either Borrower of any obligations of such Borrower or any wholly owned
Subsidiary of such Borrower that has executed an Unlimited Guaranty.
"Control" or "Controlled By" or "Under Common Control" mean possession,
direct or indirect, of power to direct or cause the direction of management or
policies (whether through ownership of voting securities, by contract or
otherwise); provided that, in any event any Person or "group" (as defined in
Sections 13(d) and 14(a) of the Securities Exchange Act of 1934) which
beneficially owns (i)35% or more (in number of votes) of the securities having
ordinary voting power for the election of directors of a corporation shall be
conclusively presumed to control such corporation and (ii) 35% or more of the
interest in capital or profits of a partnership shall be conclusively presumed
to control such partnership.
"Controlled Group" means, as to any Person, all members of a controlled
group of corporations and all trades or businesses (whether or not incorporated)
which are under common control with such Person and which, together with such
Person, are treated as a single employer under Section 414(b), (c), (m) or (o)
of the Code.
"DB Subsidiaries" means all direct Subsidiaries of the Domestic Borrower
and all further Subsidiaries (direct and indirect) of such direct Subsidiaries,
but shall exclude the Foreign Borrower and PGE New Zealand Partnership.
"Debt" means all obligations, contingent or otherwise, which in accordance
with GAAP are required to be classified on the balance sheet as liabilities
incurred by the Borrowers or their
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Subsidiaries, and in any event including (without duplication) (a) Capital
Leases, (b) Contingent Liabilities that are required to be disclosed and
quantified in notes to consolidated financial statements in accordance with
GAAP, (c) liabilities secured by any Lien on any Property, regardless of whether
such secured liability is with or without recourse, and (d) installment payment
non- compete agreements.
"Debt for Borrowed Money" means, with respect to either Borrower and their
Subsidiaries, at any date, without duplication, all Debt of the Borrowers and
their Subsidiaries that constitutes (a) all obligations of the Borrowers and
such Subsidiaries for borrowed money, letters of credit (or applications for
letters of credit) or other similar instruments, (b) all obligations of the
Borrowers and their Subsidiaries evidenced by bonds, debentures, notes or other
similar instruments, (c) all obligations of the Borrowers and their Subsidiaries
to pay the deferred purchase price of property or services, (d) the principal
component of obligations under Capital Leases of the Borrowers and their
Subsidiaries, (e) installment payment non-compete agreements for the Borrowers
and their Subsidiaries, and (f) all Contingent Liabilities relating to
obligations of another Person (other than a wholly owned Subsidiary of either
Borrower that has executed an Unlimited Guaranty, with respect to Debt of
another wholly owned Subsidiary of either Borrower that has executed an
Unlimited Guaranty) of the type described in (a) through (e) above, but
excluding in each case, trade payables incurred in the ordinary course of
business and operations (whether or not such payables are being paid on a
payment plan, through a guaranty or otherwise).
"Debtor Relief Laws" means applicable bankruptcy, reorganization,
moratorium, or similar Laws, or principles of equity affecting the enforcement
of creditors' rights generally.
"Default" means any events, acts or conditions specified in Section 9.01
hereof, whether or not any requirement in connection with such events, acts or
conditions for the giving of notice, lapse of time, or happening of any further
condition has been satisfied.
"Distribution" means, as to any Person, (a) any declaration or payment of
any distribution or dividend (other than a stock dividend) on, or the making of
any pro rata distribution, loan, advance, or investment to or in any holder of,
any partnership interest or shares of Capital Stock or other equity interest of
such Person (or the establishment of a sinking fund or otherwise setting aside
of funds for any such purpose), or (b) any purchase, redemption, or other
acquisition or retirement for value of any shares of partnership interest or
Capital Stock or other equity interest of such Person (or the establishment of a
sinking fund or otherwise setting aside of funds for any such purpose).
"Dollars" and the symbol "$" mean the lawful currency of the United
States.
"Domestic Affiliate IRU Agreement" means that IRU agreement between the
Domestic Borrower and PGE Fiber, L.L.C. dated as of May 31, 2000.
"Domestic Commitment" means the Domestic Revolver Commitment.
"Domestic Commitment Fee" means the Domestic Revolver Commitment Fee.
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"Domestic DB Subsidiaries" means DB Subsidiaries that are incorporated or
organized under the Laws of the United States or any state therein.
"Domestic Revolver Commitment" means, with respect to the Domestic
Revolver Loan, $28,000,000 as reduced from time to time pursuant to Section 2.11
hereof.
"Domestic Revolver Advance" means any advance made under the Domestic
Revolver Loan.
"Domestic Revolver Commitment Fee" means the fee described in Section
2.10(a) hereof.
"Domestic Revolver Loan" means the loan made by a Lender pursuant to
Section 2.01(a) of this Agreement.
"Domestic Revolver Note" means each Note of the Domestic Borrower
evidencing Domestic Revolver Advances under the Domestic Revolver Loan
hereunder, substantially in the form of Exhibit A hereto, together in each case,
with any extension, renewal or amendment thereof, or substitution therefor.
"Domestic Revolver Specified Percentage" means, as to any Lender, the
percentage indicated beside its name on the signature pages hereof designated as
its Domestic Revolver Specified Percentage, or as adjusted or specified (i) in
any Assignment and Acceptance or (ii) in any amendment to this Agreement.
"Environmental Claim" means any written notice by any Tribunal alleging
liability for damage to the environment, or by any Person alleging liability for
personal injury (including sickness, disease or death), resulting from or based
upon (a) the presence or release (including sudden or non-sudden, accidental or
non-accidental, leaks or spills) of any Hazardous Material at, in or from
property, whether or not owned by the Borrower or any of its Subsidiaries, or
(b) circumstances forming the basis of any violation, or alleged violation, of
any Environmental Law.
"Environmental Laws" means the Comprehensive Environmental Response,
Compensation, and Liability Act (42 U.S.C.ss.9601 et seq.) ("CERCLA"), the
Hazardous Material Transportation Act (49 U.S.C.ss.1801 et seq.), the Resource
Conservation and Recovery Act (42 U.S.C.ss.6901 et seq.), the Federal Water
Pollution Control Act (33 U.S.C.ss.1251 et seq.), the Clean Air Act (42 U.S.C.
ss.7401 et seq.), the Toxic Substances Control Act (15 U.S.C.ss.2601 et seq.),
and the Occupational Safety and Health Act (29 U.S.C.ss.651 et seq.) ("OSHA"),
as such laws have been or hereafter may be amended or supplemented, and any and
all analogous future federal, or present or future state or local, Laws.
"ERISA" means the Employee Retirement Income Security Act of 1974, as
amended, and the rulings and regulations issued thereunder, as from time to time
in effect.
"ERISA Affiliate" means any Person that for purposes of Title IV of ERISA
is a member
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of the controlled group of either Borrower or any Obligor, or is under common
control with either Borrower or any Obligor, within the meaning of Section
414(c) of the Code, and the regulations and rulings issued thereunder.
"ERISA Event" means (a) a reportable event, within the meaning of Section
4043 of ERISA, unless the 30-day notice requirement with respect thereto has
been waived by the PBGC, (b) the issuance by the administrator of any Plan of a
notice of intent to terminate such Plan, pursuant to Section 4041(a)(2) of ERISA
(including any such notice with respect to a plan amendment referred to in
Section 4041(e) of ERISA), (c) the withdrawal by either Borrower, any Subsidiary
of either Borrower or an ERISA Affiliate from a Multiple Employer Plan during a
Plan year for which it was a substantial employer, as defined in Section
4001(a)(2) of ERISA, (d) the failure by either Borrower any Subsidiary of either
Borrower, or any ERISA Affiliate to make a payment to a Plan required under
Section 302 of ERISA, (e) the adoption of an amendment to a Plan requiring the
provision of security to such Plan, pursuant to Section 307 of ERISA, or (f) the
institution by the PBGC of proceedings to terminate a Plan, pursuant to Section
4042 of ERISA, or the occurrence of any event or condition that constitutes
grounds under Section 4042 of ERISA for the termination of, or the appointment
of a trustee to administer, a Plan.
"Event of Default" means any of the events, acts or conditions specified
in Section 9.01 of this Agreement, provided there has been satisfied any
requirement in connection therewith for the giving of notice, lapse of time, or
happening of any further condition.
"Exchange Act" means the Securities Exchange Act of 1934, as amended from
time to time.
"Excluded IRU Agreements" means those certain IRU agreements executed by
the Domestic Borrower, the Foreign Borrower or their Subsidiaries and detailed
on Schedule 1.03 hereof by both description and estimated book value in the
aggregate.
"FCC" means the Federal Communications Commission, or any governmental
agency succeeding to the functions thereof.
"Federal Funds Rate" means, for any period, a fluctuating interest rate
per annum equal for each day during such period to the weighted average of the
rates on overnight federal funds transactions with members of the Federal
Reserve System arranged by federal funds brokers, as published for such day (or,
if such day is not a Business Day, for the next preceding Business Day) by the
Federal Reserve Bank of New York, or, if such rate is not so published for any
day which is a Business Day, the average of the quotations for such date on such
transactions received by Administrative Agent from three federal funds brokers
of recognized standing selected by it.
"Fee Letter" means that certain Fee Letter dated as of October 29, 1999
among the Borrowers, the Administrative Agent, Bankers Trust Company, Deutsche
Bank Securities Inc. and Banc of America Securities LLC.
"First Amendment and Waiver" means that certain Limited Conditional Waiver
to First
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Amended and Restated Credit Agreement dated as of March 31, 2000 among the
Administrative Agent, each of the Lenders and the Borrowers.
"FB Subsidiaries" means all direct Subsidiaries of the Foreign Borrower
and all further Subsidiaries (direct or indirect) of such direct Subsidiaries.
"Foreign Affiliate IRU Agreement" means that IRU agreement between the
Foreign Borrower and PGE Fiber (Bermuda) Limited dated as of May 31, 2000.
"Foreign Borrower" means Pacific Gateway Exchange (Bermuda) Limited, a
Bermuda company and wholly owned Subsidiary of the Domestic Borrower.
"Foreign Commitment" means the Foreign Revolver Commitment.
"Foreign Commitment Fee" means the Foreign Revolver Commitment Fee.
"Foreign DB Subsidiaries" means DB Subsidiaries that are not Domestic DB
Subsidiaries.
"Foreign Revolver Commitment" means, with respect to the Foreign Revolver
Loan, $47,638,982.31 as reduced or adjusted from time to time pursuant to
Section 2.11 hereof.
"Foreign Revolver Advance" means any advance made under the Foreign
Revolver Loan.
"Foreign Revolver Commitment Fee" means the fee described in Section
2.10(a) hereof.
"Foreign Revolver Loan" means the loan made by a Lender pursuant to
Section 2.01(b) of this Agreement.
"Foreign Revolver Note" means each Note of the Foreign Borrower evidencing
Foreign Revolver Advances under the Foreign Revolver Loan hereunder,
substantially in the form of Exhibit H hereto, together in each case, with any
extension, renewal or amendment thereof, or substitution therefor.
"Foreign Revolver Specified Percentage" means, as to any Lender, the
percentage indicated beside its name on the signature pages hereof designated as
its Foreign Revolver Specified Percentage, or as adjusted or specified (i) in
any Assignment and Acceptance or (ii) in any amendment to this Agreement.
"GAAP" means generally accepted accounting principles promulgated in the
United States applied on a consistent basis. Application on a consistent basis
shall mean that the accounting principles observed in a current period are
comparable in all material respects to those applied in a preceding period,
except for new developments or statements promulgated by the Financial
Accounting Standards Board and other changes in accounting methods permitted by
generally accepted accounting principles.
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"Guarantors" means (i) with respect to the Foreign Borrower, the Domestic
Borrower, each FB Subsidiary and each DB Subsidiary existing on the Closing Date
or formed or acquired by the applicable Borrower after the date hereof and (ii)
with respect to the Domestic Borrower, each Domestic DB Subsidiary existing on
the Closing Date or formed or acquired by the Domestic Borrower after the date
hereof; in each case if it has executed an Unlimited Guaranty.
"Guaranty" means a guaranty executed by any Person of the obligations of
another Person, or any agreement by which such Person assumes, guarantees,
endorses, contingently agrees to purchase or provide funds for the payment of,
or otherwise becomes liable upon, the obligation of any other Person, or agrees
to maintain the net worth or working capital or other financial condition of any
other Person, or otherwise assures any creditor or such other Person against
loss, including, without limitation, any comfort letter, or take-or-pay contract
and shall include without limitation, the contingent liability of such Person in
connection with any application for a letter of credit.
"Hazardous Materials" means all materials subject to any Environmental
Law, including without limitation materials listed in 49 C.F.R. ss. 172.101,
Hazardous Substances, explosive or radioactive materials, hazardous or toxic
wastes or substances, petroleum or petroleum distillates, asbestos, or material
containing asbestos.
"Hazardous Substances" means hazardous waste as defined in the Clean Water
Act, 33 U.S.C. ss. 1251 et seq., the Comprehensive Environmental Response
Compensation and Liability Act as amended by the Superfund Amendments and
Reauthorization Act, 42 ▇.▇.▇.▇▇. 9601 et seq., the Resource Conservation
Recovery Act, 42 ▇.▇.▇.▇▇. 6901 et seq., and the Toxic Substances Control Act,
15 ▇.▇.▇.▇▇. 2601 et seq.
"Highest Lawful Rate" means at the particular time in question the maximum
rate of interest which, under Applicable Law, any Lender is then permitted to
charge on the Obligations. If the maximum rate of interest which, under
Applicable Law, any Lender is permitted to charge on the Obligations shall
change after the date hereof, the Highest Lawful Rate shall be automatically
increased or decreased, as the case may be, from time to time as of the
effective time of each change in the Highest Lawful Rate without notice to the
Borrower.
"Income Tax Expense" means the aggregate Taxes paid or accrued by either
Borrower or any of their Subsidiaries for the relevant period of determination.
"Insufficiency" means, with respect to any Plan, the amount, if any, of
its unfunded benefit liabilities within the meaning of Section 4001(a)(18) of
ERISA.
"Interest Rate Protection Agreement" means an interest rate swap, cap,
collar or similar interest rate protection agreement between either Borrower and
any Lender.
"Investment" means any acquisition of all or substantially all of the
assets of any Person, or any direct or indirect purchase or other acquisition
of, or a beneficial interest in, any Capital Stock or other securities of any
other Person, or any direct or indirect loan, advance, or capital
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contribution to or investment in any other Person, including without limitation
the incurrence or sufferance of Debt or accounts receivable of any other Person
that are not current assets or do not arise from sales to that other Person in
the ordinary course of business.
"IRU" means an indefeasible right to use fiber or telecommunications
capacity, including the right to use the related transport and network
equipment.
"IRU Agreements" means those certain IRU agreements executed by the
Domestic Borrower, the Foreign Borrower or their Subsidiaries and detailed on
Schedule 1.04 hereof.
"Japan-US Agreement" means that certain Japan-U.S. Cable Network and
Construction and Maintenance Agreement dated as of July 31, 1998 among Foreign
Borrower and the other parties thereto, as amended from time to time.
"Law" means any constitution, statute, law, ordinance, regulation, rule,
order, writ, injunction, or decree of any Tribunal.
"Lenders" means the lenders listed on the signature pages of this
Agreement, and each transferee which hereafter becomes a party to this Agreement
pursuant to Section 11.04 hereof or pursuant to an amendment to this Agreement,
so long as each is owed any portion of the Obligation or is obligated to make
any Advance hereunder.
"Lending Office" means, with respect to each Lender, its branch or
affiliate, (a) initially, the office of each Lender, branch or affiliate
identified on each Lender's signature page hereto, and (b) subsequently, such
other office of each Lender, branch or affiliate as each Lender may designate to
the Borrowers and Administrative Agent as the office from which the Advances of
each Lender will be made and maintained and for the account of which all
payments of principal and interest on the Advances and the Commitment Fee will
thereafter be made. Lenders may have more than one Lending Office for the
purpose of making Base Advances.
"Letters of Credit" means the irrevocable standby letters of credit issued
by Administrative Agent under and pursuant to Article III hereof, as each may be
amended, modified, substituted, increased, replaced, renewed or extended from
time to time.
"License" means, as to either Borrower, or any Subsidiary of either
Borrower, any license, permit, consent, certificate of need, authorization,
certification, accreditation, franchise, approval, or grant of rights by, or any
filing or registration with, any Tribunal or third Person (including without
limitation, the FCC or any applicable PUC) necessary for such Person to own,
build, maintain, or operate its business or Property.
"Lien" means any mortgage, pledge, assignment, security interest,
encumbrance, lien, statutory or otherwise, or charge of any kind, (or an
equivalent under the laws of a country other than the US) or other priority or
preferential arrangement having the practical effect of any of the foregoing,
including without limitation any agreement to give or not to give any of the
foregoing, any conditional sale or other title retention agreement, any lease in
the nature thereof, and the
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filing of or agreement to give any financing statement or other similar form of
public notice under the Laws of any jurisdiction (except for the filing of a
financing statement or notice in connection with an (a) operating lease or (b)
the true consignment of goods to either Borrower or any Subsidiary of either
Borrower as consignee).
"Litigation" means any proceeding, claim, lawsuit, arbitration, and/or
investigation conducted by or before any Tribunal or arbitrator, including
without limitation proceedings, claims, lawsuits, and/or investigations under or
pursuant to any environmental, occupational, safety and health, antitrust,
unfair competition, securities, Tax, or other Law, or under or pursuant to any
contract, agreement, or other instrument.
"Loan Papers" means this Agreement, the Notes, the Unlimited Guaranties,
the pledge agreements, the financing statements, any Interest Rate Protection
Agreement and related documents entered into by the Borrowers or any Obligor
with any Lender or any Bank Affiliate, all Letters of Credit, all security
agreements, pledges, mortgages, deeds of trust, assignments, leasehold
mortgages, leasehold deeds of trust, collateral assignments and other agreements
and documentation relating to the Liens securing the Obligations, as each such
agreement may be amended, modified, substituted, replaced or extended from time
to time.
"Loans" means the Domestic Revolver Loan and the Foreign Revolver Loan.
"Majority Lenders" means (i) if there are three or fewer Lenders, all
Lenders, and (ii) if there are four or more Lenders, any combination of Lenders
having at least 66 2/3% of the aggregate amount of outstanding Advances
hereunder, provided, however, that if no Advances are outstanding, such term
means any combination of one or more Lenders having Total Specified Percentages
equal to at least 66 2/3% of the aggregate Commitment.
"Material Adverse Change" means any circumstance or event that is or could
reasonably be expected to (a) be a material and adverse change in the financial
condition, business, operations, prospects, or Properties of the Borrowers and
their Subsidiaries on a consolidated basis from their condition on the Closing
Date or, (b) materially and adversely affect the validity, enforceability or
collection under any Loan Paper.
"Maturity Date" means the earlier of November 20 , 2000, or such earlier
date on which the total amount of outstanding Obligations are due and payable
(including, without limitation, whether by acceleration, scheduled reduction of
the Commitment to zero, mandatory or voluntary commitment reduction of the
Commitment to zero, installment payments or otherwise).
"Maximum Amount" means the maximum amount of interest which, under
Applicable Law, a Lender is permitted to charge on the Obligations.
"MFN Sale" means those certain sales of capacity by the Borrowers under
the Japan-US Agreement and the TAT-14 Agreement to Metromedia Fiber Network
Services, Inc., (i) the first of such sales which is scheduled to close by no
later than June 5, 2000, generating Net Proceeds of approximately $42 million
and (ii) the second of such sales which is scheduled to close by no
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later than August 31, 2000, generating Net Proceeds of approximately $10
million.
"Multiemployer Plan" means a multiemployer plan, as defined in Section
4001(a)(3) of ERISA, to which either Borrower, any Subsidiary of either
Borrower, or any ERISA Affiliate 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, such plan being maintained pursuant
to one or more collective bargaining agreements.
"Multiple Employer Plan" means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, that (a) is maintained for employees of either
Borrower, any Subsidiary of either Borrower, or any ERISA Affiliate and at least
one Person other than either Borrower, any Subsidiary of either Borrower and any
ERISA Affiliate, or (b) was so maintained and in respect of which either
Borrower, any Subsidiary of either Borrower, or any ERISA Affiliate could have
liability under Section 4064 or 4069 of ERISA in the event such plan has been or
were to be terminated.
"Net Proceeds" means the gross proceeds (excluding liabilities assumed by
a purchaser) received by either Borrower or any Subsidiary of either Borrower in
connection with or as a result of any Asset Sales or the incurrence of Debt for
Borrowed Money, minus (so long as each of the following are estimated in good
faith by the management of such Borrower and certified to the Lenders in detail
acceptable to the Lenders by an Authorized Officer) (a) actual taxes estimated
in good faith by the Board of Directors incurred as a result of such sale (after
giving effect to all tax benefits available to the Borrowers and such
Subsidiaries of the Borrowers), (b) reasonable and customary transaction costs
payable by the Borrowers and any Subsidiary of the Borrowers that are related to
such sale and payable to a Person other than an Affiliate of the Borrowers and
their Subsidiaries, (c) in the case of Permitted Refinancing Indebtedness,
repayment of the Debt being refinanced, and (d) in the case of Asset Sales,
payment of any Debt secured by a Permitted Lien on the assets sold (excluding
the Liens of the Lenders).
"Notes" means each of the Domestic Revolver Notes and the Foreign Revolver
Notes, and "Note" means any Domestic Revolver Note or Foreign Revolver Note, as
applicable in the context used, and in each case, with any extension, renewal or
amendment thereof, or substitution therefor.
"Obligations" means all present and future obligations, indebtedness and
liabilities, and all renewals and extensions of all or any part thereof, of the
applicable Borrower and each other Obligor to Lenders and Administrative Agent
arising from, by virtue of, or pursuant to this Agreement, any of the other Loan
Papers and any and all renewals and extensions thereof or any part thereof, or
future amendments thereto, all interest accruing on all or any part thereof and
reasonable attorneys' fees incurred by the Administrative Agent for the
preparation of this Agreement and consummation of this credit facility,
execution of waivers, amendments and consents, and in connection with the
enforcement or the collection of all or any part thereof, and reasonable
attorneys' fees incurred by the Lenders in connection with the enforcement or
the collection of all or any part of the Obligations during the continuance of
an Event of Default, in each case whether such obligations, indebtedness and
liabilities are direct, indirect, fixed,
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contingent, joint, several or joint and several. Without limiting the generality
of the foregoing, "Obligations" includes all amounts which would be owed by the
applicable Borrower, each other Obligor and any other Person (other than
Administrative Agent or Lenders) to Administrative Agent or Lenders under any
Loan Paper, but for the fact that they are unenforceable or not allowable due to
the existence of a bankruptcy, reorganization or similar proceeding involving
either Borrower, any other Obligor or any other Person (including all such
amounts which would become due or would be secured but for the filing of any
petition in bankruptcy, or the commencement of any insolvency, reorganization or
like proceeding of either Borrower, any other Obligor or any other Person under
any Debtor Relief Law).
"Obligor" means (a) the Domestic Borrower, (b) the Foreign Borrower, (c)
each Subsidiary of either Borrower which executes a Loan Paper, and (d) each
other Person the Property of which secures the performance of any of the
Obligations.
"Onyx Entities" means: (i) Onyx Networks, Inc., a Delaware corporation,
Onyx Networks, Ltd., a Bermuda company, Onyx Networks International, Ltd., an
Ireland company, Onyx Internet Ltd., a U.K. company; (ii) any newly formed or
subsequently acquired direct or indirect Subsidiaries of the Persons described
in clause (i), (iii) any newly formed holding company created to hold the equity
interests in one or more of the Persons described herein; but shall exclude
Domestic Borrower, Foreign Borrower and every other Subsidiary listed on
Schedule 5.01(a) hereof.
"Onyx Parent Company" means the single Onyx Entity for which each and
every other Onyx Entity is a direct or indirect Subsidiary.
"Original Credit Agreement" has the meaning ascribed thereto in the
Background section of this Agreement.
"PBGC" means the Pension Benefit Guaranty Corporation, or any successor
agency or entity performing substantially the same functions.
"Permitted Acquisition" means acquisitions approved by the Lenders in
their sole discretion.
"Permitted Asset Sales" means Asset Sales approved by the Lenders in their
sole discretion.
"Permitted Liens" means, as applied to any Person:
(a) any Lien in favor of the Lenders to secure the Obligations hereunder;
(b) (i) Liens on real estate for real estate Taxes not yet delinquent,
(ii) Liens created by lease agreements, statute or common law to secure the
payments of rental amounts and other sums not yet due thereunder, (iii) Liens on
leasehold interests created by the lessor in favor of any mortgagee of the
leased premises, and (iv) Liens for Taxes, assessments, governmental charges,
levies or claims that are being diligently contested in good faith by
appropriate proceedings and
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for which adequate reserves shall have been set aside on such Person's books,
but only so long as no foreclosure, restraint, sale or similar proceedings have
been commenced with respect thereto;
(c) Liens of carriers, warehousemen, mechanics, laborers and materialmen
and other similar Liens incurred in the ordinary course of business for sums not
yet due or being contested in good faith, if such reserve or appropriate
provision, if any, as shall be required by GAAP shall have been made therefor;
(d) Liens incurred in the ordinary course of business in connection with
worker's compensation, unemployment insurance or similar legislation;
(e) Easements, right-of-way, restrictions and other similar encumbrances
on the use of real property which do not interfere with the ordinary conduct of
the business of such Person;
(f) Liens in respect of judgments or awards for which appeals or
proceedings for review are being prosecuted and in respect of which a stay of
execution upon any such appeal or proceeding for review shall have been secured,
provided that (i) such Person shall have established adequate reserves for such
judgments or awards, (ii) such judgments or awards shall be fully insured and
the insurer shall not have denied coverage, or (iii) such judgments or awards
shall have been bonded to the satisfaction of the Majority Lenders; and
(g) Liens securing trade payables to the extent that such Lien is created
as a result of the shipment of goods under a reservation of title in a
jurisdiction other than the United States and to a Foreign FB Subsidiary (other
than PGE Fiber (Bermuda)) or a Foreign DB Subsidiary (other than PGE Fiber
(Bermuda));
(h) Liens securing goods purchased under the Cisco Credit Facility; and
(i) Any Liens existing on the Closing Date which are described on Schedule
8.03 hereto and not otherwise described elsewhere in the definition of Permitted
Liens securing Debt existing on the Closing Date which is described on Schedule
8.02 hereto.
"Permitted Refinancing Indebtedness" means Debt of the applicable Obligor
to the extent the proceeds thereof are used to refinance Debt, the Net Proceeds
are applied in accordance with Sections 2.05 and 2.11 of this Agreement, and is
approved by the Lenders in their sole discretion.
"Person" means an individual, partnership, joint venture, corporation,
limited liability company, trust, Tribunal, unincorporated organization, and
government, or any department, agency, or political subdivision thereof.
"PGE Fiber" means PGE Fiber, L.L.C., a Delaware limited liability
corporation.
"PGE Fiber (Bermuda)" means PGE Fiber (Bermuda) Limited, a Bermuda
company.
"PGE Switzerland" means Pacific Gateway Exchange (Switzerland) AG.
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"Plan" means a Single Employer Plan or a Multiple Employer Plan.
"Preferred Stock", as applied to the Capital Stock of any Person, means
Capital Stock of any class or classes (however designated) which is preferred as
to the payment of dividends or distributions, or as to the distribution of
assets upon any voluntary or involuntary liquidation or dissolution of such
Person, over shares of Capital Stock of any other class of such Person.
"Prohibited Transaction" has the meaning specified in Section 4975 of the
Code or Section 406 of Title I of ERISA.
"Property" means all types of real, personal, tangible, intangible, or
mixed property, whether owned or hereafter acquired in fee simple or leased by
either Borrower or any Subsidiary of either Borrower.
"PUC" means any state regulatory agency or body that exercises
jurisdiction over the rates or services or the ownership, construction or
operation of any network facility or long distance telecommunications systems or
over Persons who own, construct or operate a network facility or long distance
telecommunications systems, in each case by reason of the nature or type of the
business subject to regulation and not pursuant to laws and regulations of
general applicability to Persons conducting business in such state.
"Release Date" means the date on which the Notes have been paid, all other
Obligations due and owing have been paid and performed in full, and the
Commitment has been terminated.
"Restricted Payments" means, for the Borrowers and their Subsidiaries, (a)
any direct or indirect Distribution, dividend or other payment on account of any
equity interest in, or shares of Capital Stock or other securities of either
Borrower or their Subsidiaries (or the establishment of any sinking fund or
otherwise the setting aside of any funds with respect thereto); (b) any
management, consulting or other similar fees, or any interest thereon, payable
by either Borrower or any of their Subsidiaries to any other Subsidiary and/or
any other Affiliate of either Borrower (or the establishment of any sinking fund
or otherwise the setting aside of any funds with respect thereto), but
specifically excluding any consulting fees payable by either Borrower or any
Subsidiary of either Borrower to a Person that is not an Affiliate of either
Borrower, (c) loans or advances to employees and/or shareholders of either
Borrower and their Subsidiaries, except advances to employees of either Borrower
or their Subsidiaries for moving and travel expenses in the ordinary course of
business; and (d) payments of any amounts, fees, advances, loans, investments or
otherwise to any Subsidiary.
"Rights" means rights, remedies, powers, and privileges.
"Rustelnet" means the Subsidiary organized under the law of the country of
Russia, and identified on Schedule 5.01(a).
"Single Employer Plan" means a single employer plan, as defined in Section
4001(a)(15)
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of ERISA, other than a Multiple Employer Plan of either Borrower.
"Solvent" means, with respect to any Person, that on such date (a) the
fair value of the Property of such Person is greater than the total amount of
liabilities, including without limitation Contingent Liabilities of such Person,
and (b) the present fair salable value of the assets of such Person on a going
concern basis is not less than the amount that will be required to pay the
probable liability of such Person on its debts.
"Special Counsel" means the law firm of ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ & ▇▇▇▇▇▇▇, P.C.,
Dallas, Texas, or such other individual or firm acting as special counsel to
Administrative Agent, as designated by Administrative Agent from time to time.
"Subordinated Indebtedness" means Debt of either Borrower that is
unsecured and subordinated to the Obligations, such Debt in each case (a) to be
pursuant to documentation containing terms and conditions no more onerous than
this Agreement and the Loan Papers, (b) to have a maturity not less than one
year after the Maturity Date, and (c) to be subordinated on terms and conditions
acceptable to the Administrative Agent and the Majority Lenders in their sole
discretion.
"Subsidiary" of any Person means any corporation, limited liability
company, partnership, joint venture, trust or estate of which (or in which) 50%
or more of:
(a) the outstanding Capital Stock having voting power to elect a
majority of the board of directors of such corporation (irrespective of
whether at the time Capital Stock of any other class or classes of such
corporation shall or might have voting power upon the occurrence of any
contingency),
(b) the interest in the capital or profits of such partnership or
joint venture, or
(c) the beneficial interest of such trust or estate,
is at the time directly or indirectly owned by such Person, by such Person and
one or more of its Subsidiaries or by one or more of such Person's Subsidiaries.
"TAT-14 Agreement" means that certain TAT-14 Cable Network Construction
and Maintenance Agreement dated as of September 2, 1998 among Foreign Borrower
and the other parties thereto, as amended from time to time.
"Taxes" means all taxes, assessments, imposts, fees, or other charges at
any time imposed by any Laws or Tribunal.
"Total Specified Percentage" means, as to any Lender on any date of
determination, the percentage that such Lender's outstanding Advances (all
Domestic Revolving Advances and Foreign Revolving Advances) bears to the
aggregate outstanding amount of Advances (all Domestic Revolving Advances and
Foreign Revolving Advances) made by all Lenders hereunder,
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provided that, if there are no outstanding Advances hereunder, "Total Specified
Percentage" shall mean for such Lender the percentage that the sum of its (i)
Domestic Revolver Specified Percentage of the Domestic Revolver Commitment plus
(ii) Foreign Revolver Specified Percentage of the Foreign Revolver Commitment
bears to the aggregate Commitments of all Lenders on such date.
"Tribunal" means any state, commonwealth, federal, foreign, territorial,
or other court or government body, subdivision, agency, department, commission,
board, bureau, or instrumentality of a governmental body.
"UCC" means the Uniform Commercial Code as adopted in the State of New
York on the Closing Date.
"Unlimited Guaranty" means the Guaranty, executed in substantially similar
form by each Subsidiary of the Borrowers, guarantying payment and performance of
certain of the Obligations, substantially in the form of Exhibit F attached
hereto, with respect to FB Subsidiaries (other than PGE Fiber (Bermuda), Foreign
DB Subsidiaries (other than PGE Fiber (Bermuda)) and the Domestic Borrower, and
in the form of Exhibit G attached hereto, with respect to the Domestic DB
Subsidiaries (other than PGE Fiber), as such agreements may be amended,
modified, renewed or extended from time to time, and each subsequent unlimited
Guaranty in the form of Exhibit F or G (as applicable) hereto executed by any
newly acquired or created Subsidiary, as each such agreement may be amended,
modified, renewed or extended from time to time.
"Unused Facility Amount" means the Commitments minus (without duplication)
the sum of (a) all outstanding Domestic Revolver Advances, plus (b) all
outstanding Foreign Revolver Advances, plus (c) all issued and outstanding
Letters of Credit denominated in Dollars.
"Voting Stock" of a Person means all classes of Capital Stock or other
interests of such Person then outstanding and normally entitled (without regard
to the occurrence of any contingency) to vote in the election of directors,
managers or trustees thereof.
"Withdrawal Liability" has the meaning given such term under Part I of
Subtitle E of Title IV of ERISA.
"WorldCom Agreement" means that agreement between the Domestic Borrower,
MCI WorldCom Network Services, Inc., as agent for WorldCom, Inc. and its
affiliates and subsidiaries on April 21, 2000, and the Lenders dated April 21,
2000.
1.02. Accounting and Other Terms. All accounting terms used in this
Agreement which are not otherwise defined herein shall be construed in
accordance with GAAP on a consolidated basis for the Borrowers and their
Subsidiaries, unless otherwise expressly stated herein. References herein to one
gender shall be deemed to include all other genders. Except where the context
otherwise requires, (a) definitions imparting the singular shall include the
plural and vice versa and (b) all references to time are deemed to refer to
central time.
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ARTICLE II. THE LOAN FACILITY
2.01. Loans.
(a) Domestic Revolver Loan. Each Lender severally agrees, on the
terms and subject to the conditions hereinafter set forth, to make Domestic
Revolver Advances to the Domestic Borrower on a Business Day during the period
from the Closing Date to the Maturity Date, in an aggregate principal amount not
to exceed at any time outstanding such Lender's Domestic Revolver Specified
Percentage of the difference between the Domestic Revolver Commitment and
Domestic Revolver Advances then outstanding. Subject to the terms and conditions
of this Agreement, the Domestic Borrower may borrow, repay and reborrow the
Domestic Revolver Advances; provided, however, that at no time shall the sum of
all outstanding Domestic Revolver Advances exceed the Domestic Revolver
Commitment.
(b) Foreign Revolver Loan. Each Lender severally agrees, on the
terms and subject to the conditions hereinafter set forth, to make Foreign
Revolver Advances to the Foreign Borrower on a Business Day during the period
from the Closing Date to the Maturity Date, in an aggregate principal amount not
to exceed at any time outstanding such Lender's Foreign Revolver Specified
Percentage of the difference between the Foreign Revolver Commitment and the sum
(without duplication) of (i) the undrawn face amount of all outstanding Letters
of Credit, plus (ii) reimbursement obligations under Article III hereof (or if
any Letters of Credit or reimbursement obligations are denominated in a currency
other than Dollars, the Dollar equivalent of such currency), plus (iii) Foreign
Revolver Advances then outstanding. Subject to the terms and conditions of this
Agreement, the Foreign Borrower may borrow, repay and reborrow the Foreign
Revolver Advances; provided, however, that at no time shall the sum (without
duplication) of (i) all outstanding Foreign Revolver Advances, plus (ii) the
undrawn face amount of all outstanding Letters of Credit (or if any Letter of
Credit is denominated in a currency other than Dollars, the Dollar equivalent of
such currency), plus (iii) reimbursement obligations under Article III hereof
(or if any reimbursement obligation is denominated in a currency other than
Dollars, the Dollar equivalent of such currency)exceed the Foreign Revolver
Commitment.
2.02. Making Advances.
(a) Each Borrowing of Advances shall be made upon the written notice of
the applicable Borrower, received by Administrative Agent not later than 12:00
noon on the date of such Borrowing. Each such notice of a Borrowing (a
"Borrowing Notice") shall be by telecopy or telephone, promptly confirmed by
letter, in substantially the form of Exhibit C hereto specifying therein:
(i) the date of such proposed Borrowing, which shall be
a Business Day; and
(ii) the amount of such proposed Borrowing which (A)
with respect to Advances drawn under (I) the Domestic Revolver Loan
shall not exceed the unused portion of the Domestic Revolver
Commitment, (II) the Foreign Revolver Loan, shall not exceed the unused
portion of the Foreign Revolver Commitment less outstanding Letters
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of Credit and reimbursement obligations (or if any Letter of Credit or
reimbursement obligation shall be in a currency other than Dollars, the
Dollar equivalent of such currency) and (B) shall be in an amount of not
less than $500,000 or an integral multiple of $100,000 in excess thereof
(or any lesser amount if such amount is the remaining undrawn portion
under the Domestic Revolver Commitment or the Foreign Revolver Commitment,
respectively).
Administrative Agent shall promptly notify Lenders of each such notice.
Each Lender shall, before 2:00 p.m. on the date of each Advance under the
Domestic Revolver Loan or the Foreign Revolver Loan hereunder, make available to
Administrative Agent, at its office at Bank of America Plaza, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇,
▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇, such Lender's Domestic Revolver Specified Percentage and
Foreign Revolver Specified Percentage of the aggregate Advances under the Loans,
to be made on that day in immediately available funds.
(b) Unless any applicable condition specified in Article IV has not been
satisfied, Administrative Agent, upon receipt of fund from the Lenders, will
make the funds promptly available to the applicable Borrower by either (i)
wiring such amounts pursuant to any wiring instructions, or (ii) depositing such
amount in the account of the applicable Borrower at the Administrative Agent, in
each case as specified by the applicable Borrower to the Administrative Agent in
writing.
(c) After giving effect to any Borrowing, the aggregate principal amount
of outstanding Advances under (i) the Domestic Revolver Loan shall not exceed
the Domestic Revolver Commitment, and (ii) the Foreign Revolver Loan, plus the
sum of the outstanding amount available to be drawn under all outstanding
Letters of Credit, and reimbursement obligations under Article III (or if any
Letter of Credit or reimbursement obligation shall be denominated in a currency
other than Dollars, the Dollar equivalent of such currency) shall not exceed the
Foreign Revolver Commitment.
(d) Unless a Lender shall have notified Administrative Agent prior to the
date of any Advance that it will not make available its Applicable Specified
Percentage of any Advance, Administrative Agent may assume that such Lender has
made the appropriate amount available in accordance with Section 2.02(a) hereof,
and Administrative Agent may, in reliance upon such assumption, make available
to the applicable Borrower a corresponding amount. If and to the extent any
Lender shall not have made such amount available to Administrative Agent, such
Lender and the applicable Borrower severally agree to repay to Administrative
Agent immediately on demand such corresponding amount together with interest
thereon, from the date such amount is made available to such Borrower until the
date such amount is repaid to Administrative Agent, at (i) in the case of such
Borrower, the Base Rate, and (ii) in the case of such Lender, the Federal Funds
Rate.
(e) The failure by any Lender to make available its Applicable Specified
Percentage of any Advance hereunder shall not relieve any other Lender of its
obligation, if any, to make available its Applicable Specified Percentage of any
Advance. In no event, however, shall any Lender be responsible for the failure
of any other Lender to make available any portion of any Advance.
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(f) The applicable Borrower shall indemnify each Lender against any
Consequential Loss incurred by each Lender as a result of (i) any failure to
fulfill, on or before the date specified for an Advance, the conditions to the
Advance set forth herein or (ii) such Borrower's requesting that an Advance not
be made on the date specified in the Borrowing Notice.
2.03. Evidence of Debt for Borrowed Money.
(a) The Advances made by each Lender under the Domestic Revolver Loan
shall be evidenced by a Domestic Revolver Note in the amount of such Lender's
Domestic Revolver Specified Percentage of the Domestic Revolver Commitment in
effect on the Closing Date.
(b) The Advances made by each Lender under the Foreign Revolver Loan shall
be evidenced by a Foreign Revolver Note in the amount of such Lender's Foreign
Revolver Specified Percentage of the Foreign Revolver Commitment in effect on
the Closing Date.
(c) Administrative Agent's and each Lender's records shall be presumptive
evidence as to amounts owed Administrative Agent and such Lender under the Notes
and this Agreement.
2.04. Optional Prepayments.
(a) Either Borrower may, upon notice of prepayment which may be given by
telephone by 12:00 noon on the date of prepayment to Administrative Agent
stating the proposed aggregate principal amount of the prepayment, prepay the
outstanding principal amount of any Advances in whole or in part, together with
accrued interest to the date of such prepayment on the principal amount prepaid
without premium or penalty. Each partial prepayment shall be in an aggregate
principal amount of not less than $100,000 or a larger integral multiple of
$50,000 in excess thereof. If any notice of prepayment is given, the principal
amount stated therein, together with accrued interest on the amount prepaid and
the amount, if any, due under Section 2.12 and Section 2.14 hereof, shall be due
and payable on the date specified in such notice unless the Borrower revokes its
notice, provided that, if the Borrower revokes its notice of prepayment prior to
such date specified, the Borrower shall reimburse the Administrative Agent for
the account of all Lenders for all Consequential Losses suffered by each Lender
as a result of the Borrower's failure to prepay. A certificate of each Lender
claiming compensation under this Section 2.04(a), setting forth in reasonable
detail the calculation of the additional amount or amounts to be paid to it
hereunder shall be presumptive evidence of the validity of such claim.
(b) The application of prepayments made under this Section 2.04 as between
the Domestic Revolver Loan and the Foreign Revolver Loan shall be determined in
accordance with the provisions of Section 2.13(f) hereof. All prepayments made
pursuant to this Section 2.04 shall be applied without premium or penalty.
2.05. Mandatory Prepayments.
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(a) Asset Sales. To the extent that either Borrower or any of the
Subsidiaries consummates any Asset Sale, then the Borrowers shall immediately
repay the Obligations under the Loans in an amount equal to 100% of the Net
Proceeds of any such transaction; provided that no such repayment will be
required if the Property sold is subject to a Permitted Lien and all the
proceeds are used to pay the Debt secured by such Permitted Lien. Sales by the
Foreign Borrower or the FB Subsidiaries will first be applied to the Foreign
Revolver Loan. Sales by the Domestic Borrower and DB Subsidiaries will be
applied first to the Domestic Revolver Loan.
(b) Public or Private Issuance of Debt or Equity. To the extent that
either Borrower or any of their Subsidiaries consummates any public or private
issuance of equity securities (other than the first $16 million of a public or
private issuance of equity securities by the Onyx Parent Company which will not
require a mandatory prepayment of the Obligations) or Debt for Borrowed Money
(this provision in and of itself not constituting permission to do so), then the
Borrowers shall immediately repay the Obligations under the Loans in an amount
equal to 100% of the Net Proceeds from any such offering. Net Proceeds received
by the Foreign Borrower or the FB Subsidiaries will first be applied to the
Foreign Revolver Loan. Net Proceeds received by the Domestic Borrower and DB
Subsidiaries will be applied first to the Domestic Revolver Loan.
(c) Mandatory Prepayments, Generally. Except as otherwise specifically
provided herein, the application of prepayments made under this Section 2.05 as
between the Domestic Revolver Loan and the Foreign Revolver Loan shall be
determined in accordance with the provisions of Section 2.13(f) hereof.
2.06. Repayment.
(a) Commitment Reduction. On the date of a reduction of the Commitment
pursuant to Section 2.11 hereof, the aggregate amount of outstanding (i)
Domestic Revolver Advances in excess of the Domestic Revolver Commitment as
reduced, (ii) Foreign Revolver Advances plus the amount available to be drawn of
the Letters of Credit, and reimbursement obligations under Article III (or if
any Letter of Credit or reimbursement obligation shall be denominated in a
currency other than Dollars, the Dollar equivalent of such currency) in excess
of the Foreign Revolver Commitment as reduced shall be immediately due and
payable.
(b) Maturity Date. All outstanding Advances under the Loans and all other
Obligations shall be due and payable in full on the Maturity Date.
(c) Repayments, Generally. Any repayments made pursuant to this Section
shall be without premium or penalty. The application of prepayments made under
this Section 2.06 as between the Domestic Revolver Loan and the Foreign Revolver
Loan shall be determined in accordance with the provisions of Section 2.13(f)
hereof.
2.07. Interest. Subject to Section 2.08 and Section 11.08 hereof, each
Borrower shall pay interest on the unpaid principal amount of each Advance from
the date of such Advance until such principal shall be paid in full, at the Base
Rate in accordance with the provisions hereof and as follows:
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(i) Base Advances. Base Advances shall accrue interest at a
rate per annum equal to the Accrual Rate. The difference between
Interest at the Base Rate and Interest at the Accrual Rate ("Interest
Accrual") (A) shall accrue as a separate Obligation under this
Agreement, (B) shall not bear any Interest under this Agreement, and
(C) shall not be payable by the Borrowers to the extent that the
Borrowers pay all Obligations in full (other than the Interest Accrual
and the Fee Accrual)on or before the Maturity Date. The Interest
Accrual becomes due and payable on the first day following the Maturity
Date if the Obligations (other than the Interest Accrual and the Fee
Accrual) have not been paid in full or upon the Administrative Agent
electing any of the remedies provided for in Section 9.02(a) through
(d), and interest shall thereafter accrue at the Default Rate on all
the outstanding Advances. If the amount of interest payable in respect
of any interest computation period is reduced to the Highest Lawful
Rate and the amount of interest payable in respect of any subsequent
interest computation period would be less than the Maximum Amount, then
the amount of interest payable in respect of such subsequent interest
computation period shall be automatically increased to the Maximum
Amount; provided that at no time shall the aggregate amount by which
interest paid has been increased pursuant to this sentence exceed the
aggregate amount by which interest has been reduced pursuant to this
sentence.
(ii) Payment Dates. Accrued and unpaid interest on
Base Advances shall be paid at the Base Rate monthly in arrears on the
first Business Day of each subsequent calendar month and on the
Maturity Date.
2.08. Default Interest. During the continuation of any Event of
Default, the Borrowers shall pay, on demand, interest (after as well as before
judgment to the extent permitted by Law) on the principal amount of all Advances
outstanding and on all other Obligations due and unpaid hereunder at a per annum
rate equal to the lesser of the (a) the Highest Lawful Rate and (b) the Base
Rate plus 3.00% (the "Default Rate").
2.09. INTENTIONALLY DELETED.
2.10. Fees.
(a) Commitment Fee. Subject to Section 11.08 hereof, the Borrower shall
pay to Administrative Agent for the account of Lenders pro rata in accordance
with each Lender's Applicable Specified Percentage, a commitment fee (the
"Revolver Commitment Fee") equal to (i) to the extent that 50% or less of the
Commitment is used, 1.00% per annum on the average daily amount of the Unused
Facility Amount and (ii) to the extent that more than 50% of the Commitment is
used, 0.75% per annum on the average daily amount of the Unused Facility Amount,
each payable monthly in arrears on the first Business Day of each subsequent
calendar month and continuing until the Maturity Date.
(b) Other Fees. Borrowers shall pay to Administrative Agent and the
Lenders such other fees as set forth in any commitment letter or any fee letter
addressed to the Administrative Agent or any Lender.
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2.11. Reduction and Adjustment of Commitments.
(a) Mandatory Termination of the Commitment. The Commitment shall
automatically be reduced to zero and terminate on the Maturity Date.
(b) Mandatory Reduction of Commitment Due to Asset Sales. The Commitment
shall be reduced immediately and automatically pro rata (unless otherwise
allocated by the Borrowers in accordance with the ownership of the assets sold)
in an amount equal to (i) (A) 100% of any amount in excess of $15,000,000 but
less than or equal to $42,000,000 of the Net Proceeds from the first phase of
the MFN Sale and (B) 50% of any amount in excess of $42,000,000 of the Net
Proceeds from the first phase of the MFN Sale, and (ii) 50% of any other amount
that would be required by Section 2.05(a) hereof to prepay the Loan, regardless
of the outstanding amount of Advances thereunder, as a result of any Asset Sales
of either Borrower or any Subsidiary of either Borrower (this provision in and
of itself not constituting permission to effectuate any Asset Sales).
(c) Mandatory Reduction of Commitment Due to Issuances of Public or
Private Equity or Debt. At the time of any issuance of public or private equity
securities or Debt by either Borrower or any of their Subsidiaries (other than
Debt permitted to be incurred in accordance with the provisions of Section 8.02)
(this provision in and of itself not constituting permission to effectuate any
such transaction), the Commitment shall be reduced immediately and automatically
in an amount equal to 50% of any amount required by Section 2.05(b) hereof to
prepay outstanding Advances under the Loan (regardless of whether there are
actually any outstanding Advances) as a result of any issuances of public or
private equity securities or Debt. Net Proceeds received by the Foreign Borrower
or the FB Subsidiaries as a result of the issuance of public or private equity
or Debt by such entities will first be applied to reduce the Foreign Revolver
Commitment. Net Proceeds received by the Domestic Borrower and DB Subsidiaries
as a result of the issuance of public or private equity or Debt by such entities
will be applied first to reduce the Domestic Revolver Commitment.
(d) Change of Control. If any Change of Control shall have occurred, the
Commitment shall immediately and automatically be reduced to zero.
(e) Voluntary Commitment Reductions. Either Borrower may from time to
time, upon notice to Administrative Agent not later than 1:00 p.m., three
Business Days in advance, terminate in whole or reduce in part the Commitment,
as designated by the Borrower; provided, however, that the Borrower shall pay
the accrued interest at the Base Rate and the applicable accrued Commitment Fee
on the amount of such reduction and all amounts due, and any partial reduction
shall be in an aggregate amount which is an integral multiple of $100,000.
(f) Commitment Reduction and Repayments, Generally. Both voluntary and
mandatory reductions of the Commitment shall be apportioned between the Domestic
Revolver Commitment and the Foreign Revolver Commitment in accordance with the
terms of Section 2.13(f) hereof. To the extent outstanding Domestic Revolver
Advances exceed the Domestic Revolver Commitment after any reduction thereof,
the Domestic Borrower shall repay, on the
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date of such reduction, any such excess amount and all accrued interest at the
Base Rate thereon, the applicable Domestic Revolver Commitment Fee on the amount
of such reduction and all other amounts due. To the extent the (i) Foreign
Revolver Advances plus (ii) the undrawn face amount of all outstanding Letters
of Credit, plus (iii) reimbursement obligations under Article III hereof (or if
any Letters of Credit or reimbursement obligations are denominated in a currency
other than Dollars, the Dollar equivalent of such currency) exceed the Foreign
Revolver Commitment after any reduction thereof, the Foreign Borrower shall
repay, on the date of such reduction, any such excess amount and all accrued
interest at the Base Rate thereon, the applicable Foreign Revolver Commitment
Fee on the amount of such reduction and all other amounts due. Once reduced or
terminated, the Domestic Revolver Commitment and the Foreign Revolver Commitment
may not be increased or reinstated.
2.12. Funding Losses. Either Borrower may prepay the outstanding principal
balance of any Advance, in full at any time or in part from time to time in
accordance with the terms of Section 2.04 hereof, provided, that as a condition
precedent to the Borrower's right to make, and any Lender's obligation to
accept, any such prepayment, each such prepayment shall be in the amount of 100%
of the principal amount to be prepaid, plus accrued unpaid interest thereon to
the date of prepayment, plus any other sums which have become due to
Administrative Agent and Lenders under the Loan Papers on or before the
prepayment date but have not been paid.
The Borrowers agree that each Lender is not obligated to actually reinvest
the amount prepaid in any specific obligation as a condition to receiving any
Consequential Loss, or otherwise.
2.13. Computations and Manner of Payments.
(a) The Borrowers shall make each payment hereunder and under the other
Loan Papers not later than 1:00 p.m. on the day when due in same day funds (by
wire transfer or otherwise) to Administrative Agent, for the account of Lenders
unless otherwise specifically provided herein, at Administrative Agent's office
at Bank of America Plaza, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇, referencing
Pacific Gateway Exchange, Inc. or Pacific Gateway Exchange (Bermuda) Limited, as
applicable. No later than the end of each day when each payment hereunder is
made, the Borrower shall notify Loan Operations at (▇▇▇) ▇▇▇-▇▇▇▇ or such other
Person as Administrative Agent may from time to time specify.
(b) Unless Administrative Agent shall have received notice from a Borrower
prior to the date on which any payment is due hereunder that such Borrower will
not make payment in full, Administrative Agent may assume that such payment is
so made on such date and may, in reliance upon such assumption, make
distributions to Lenders. If and to the extent a Borrower shall not have made
such payment in full, each Lender shall repay to Administrative Agent forthwith
on demand the applicable amount distributed, together with interest thereon at
the Federal Funds Rate, from the date of distribution until the date of
repayment. Each Borrower hereby authorizes each Lender, if and to the extent
payment is not made when due hereunder, to charge the amount so due against any
account of either Borrower with such Lender.
(c) Subject to Section 11.08 hereof, interest on Base Advances, the
Commitment Fee
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and other amounts due under the Loan Papers shall be calculated on the basis of
actual days elapsed but computed as if each year consisted of 365 or 366 days,
as applicable. Such computations shall be made including the first day but
excluding the last day occurring in the period for which such interest, payment
or Commitment Fee is payable. Each determination by Administrative Agent or a
Lender of an interest rate, fee or commission hereunder shall be presumptive
evidence of the validity of such claim. All payments under the Loan Papers shall
be made in United States dollars, and without setoff, counterclaim, or other
defense.
(d) Whenever any payment to be made hereunder or under any other Loan
Papers shall be stated to be due on a day other than a Business Day, such
payment shall be made on the next succeeding Business Day, and such extension of
time shall be included in the computation of interest or fees, if applicable.
(e) Reference to any particular index or reference rate for determining
any applicable interest rate under this Agreement is for purposes of calculating
the interest due and is not intended as and shall not be construed as requiring
any Lender to actually obtain funds for any Advance at any particular index or
reference rate.
(f) Except as provided pursuant to Section 2.11(b), (c), (d) and (f)
hereof, to the extent either Borrower makes any voluntary prepayment, or
voluntary reduction of the Commitment under Section 2.04 or 2.11 hereof, or any
mandatory prepayment, or mandatory reduction of the Commitment under Section
2.05 or 2.11 hereof, then such reduction of Commitment or such prepayment shall
be applied, first to the Domestic Revolver Commitment unless such application
would yield adverse tax consequences (provided that regardless of such tax
consequences, Net Proceeds from Asset Sales or the issuance of Debt for Borrowed
Money by the Domestic Borrower or any Domestic DB Subsidiary shall be applied to
the Domestic Revolver Commitment until the Domestic Revolver Commitment has been
terminated and all Obligations under the Domestic Revolver Commitment are paid
in full), and second, to the Foreign Revolver Commitment.
2.14. Intentionally Deleted.
2.15. Use of Proceeds. The Advances shall be available (and the Borrowers
shall use such proceeds) in the ordinary course of its existing business.
2.16. Collateral and Collateral Call.
(a) Domestic Revolver Loan. Payment of the Obligations under the Domestic
Revolver Loan will be secured by (i) a first perfected security interest in all
tangible and intangible assets of Domestic Borrower including current and future
IRU Agreements, but excluding: (A) assets purchased and subject to Liens under
vendor financing arrangements permitted hereunder, (B) certain assets set forth
on Schedule 8.13 hereof or approved by the Majority Lenders that may not by
contract or law be pledged or assigned, and (C) the Excluded IRU Agreements;
(ii) first perfected security interest in 66% of the Capital Stock of Foreign
Borrower; (iii) 100% of the Capital Stock of all Domestic DB
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Subsidiaries; (iv) 66% of Capital Stock of all Foreign DB Subsidiaries; (iv)
Guaranties by all Domestic DB Subsidiaries (other than PGE Fiber), which
Guaranties shall be secured by a first perfected security interest in all
tangible and intangible assets (including intercompany notes) of such Domestic
DB Subsidiaries including current and future IRU Agreements, but excluding: (A)
assets purchased and subject to Liens under vendor financing arrangements
permitted hereunder, (B) certain assets set forth on Schedule 8.13 hereof or
approved by the Majority Lenders that may not by contract or law be pledged or
assigned, (C) the Excluded IRU Agreements, and (D) any assets of PGE Fiber
(collectively, together with all other Properties or assets of the Borrowers,
their Subsidiaries and other Persons securing the Domestic Obligations from time
to time, the "Domestic Collateral"). The Domestic Borrower agrees that it will,
and will cause the Domestic DB Subsidiaries to execute and deliver, or cause to
be executed and delivered, such documents as the Administrative Agent may from
time to time reasonably request to create and perfect a first Lien for the
benefit of the Administrative Agent and the Lenders in the Domestic Collateral.
(b) Foreign Revolver Loan. Payment of the Obligations under the Foreign
Revolver Loan will be secured by (i) a Guarantee of Domestic Borrower secured by
the Domestic Collateral; (ii) a first perfected security interest in all
tangible and intangible assets of Foreign Borrower including current and future
IRU Agreements, but excluding: (A) assets purchased and subject to Liens under
vendor financing arrangements permitted hereunder, (B) certain assets set forth
on Schedule 8.13 or approved by Majority Lenders that may not by contract or law
be pledged or assigned, and (C) the Excluded IRU Agreements; (iii) 100% of the
Capital Stock of all FB Subsidiaries; (iv) Guaranties by all Domestic DB
Subsidiaries (other than PGE Fiber), which Guaranties shall be secured by a
first perfected security interest in all tangible and intangible assets of such
Domestic DB Subsidiaries including current and future IRU Agreements, but
excluding: (A) assets purchased and subject to Liens under vendor financing
arrangements permitted hereunder, (B) certain assets set forth on Schedule 8.13
or approved by Majority Lenders that may not by contract or law be pledged or
assigned, (C) the Excluded IRU Agreements, and (D) any assets of PGE Fiber;(v)
Guaranties by FB Subsidiaries (other than PGE Fiber (Bermuda);(vi) Guaranties
made by FB Subsidiaries with assets in excess of $2 million (other than PGE
Fiber (Bermuda), shall be secured by a first perfected security interest in all
tangible and intangible assets of such FB Subsidiaries including current and
future IRU Agreements, but excluding: (A) assets purchased and subject to Liens
under vendor financing arrangements permitted hereunder, (B) certain assets set
forth on Schedule 8.13 or approved by Majority Lenders that may not by contract
or law be pledged or assigned, (C) the Excluded IRU Agreements, and (D) any
assets of PGE Fiber (Bermuda) Limited; (vii) Guaranties by Foreign DB
Subsidiaries (other than PGE Fiber (Bermuda)), which Guaranties shall be secured
by a first perfected security interest in all tangible and intangible assets of
such Foreign DB Subsidiaries including current and future IRU Agreements, but
excluding: (A) assets purchased and subject to Liens under vendor financing
arrangements permitted hereunder, (B) certain assets set forth on Schedule 8.13
or approved by Majority Lenders that may not by contract or law be pledged or
assigned, and (C) the Excluded IRU Agreements. (collectively, together with all
other Properties or assets of the Borrowers, their Subsidiaries and other
Persons securing the Foreign Obligations from time to time, the "Foreign
Collateral"). The Domestic Collateral and the Foreign Collateral together, the
"Collateral". The Domestic Borrower and the Foreign Borrower agree that they
will, and will cause their Subsidiaries to execute and deliver, or cause to be
executed and delivered,
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such documents as the Administrative Agent may from time to time reasonably
request to create and perfect a first Lien for the benefit of the Administrative
Agent and the Lenders in the Collateral.
c. Collateral Call. The Borrowers agree, in connection with (a) and (b)
above, to the extent that the Administrative Agent determines it does not have a
perfected security interest in any of the collateral described in (a) and (b)
above, promptly upon request by the Administrative Agent, to take all actions
necessary or advisable to promptly grant and perfect to the Administrative Agent
on behalf of the Lenders a Lien and/or security interest in all or any portion
of such assets and Properties of the Borrowers and their Subsidiaries (subject
to Permitted Liens)(whether through Capital Stock or otherwise), including to
immediately pledge/mortgage or grant a first priority security interest in real
property to secure the Obligations, provided that under no circumstances shall
the Borrowers or their Subsidiaries be required to ▇▇▇▇▇ ▇ ▇▇▇▇ and/or security
interest in assets which are prohibited by law or prohibited contractually on
the date hereof from being subject to Liens.
ARTICLE III. LETTERS OF CREDIT
3.01. Issuance of Letters of Credit (Intentionally Deleted).
3.02. Letters of Credit Fee. In consideration for the issuance of each
Letter of Credit issued prior to May 18, 2000, the Foreign Borrower shall pay to
the Administrative Agent for the account of the Administrative Agent and the
Lenders in accordance with their Foreign Revolver Specified Percentages, a per
annum fee for each Letter of Credit equal to the higher of (i) $350.00 and (ii)
the product of the Applicable Margin for Base Rate Advances multiplied by the
face amount of each such Letter of Credit (or if such Letter of Credit is
denominated in a currency other than Dollars, the Dollar equivalent of such
currency calculated by using the quoted spot rate to exchange Dollars for such
currency in effect on the last day of each month as the rate in effect during
the calendar month ending on such date). Each fee for each Letter of Credit
under this subsection shall be due and payable to the Administrative Agent
monthly as it accrues, on each the first Business Day of each subsequent
calendar month during the term of the Letter of Credit and on the expiration or
renewal and/or extension of each such Letter of Credit, beginning with the first
such date after the issuance of each Letter of Credit and ending on the
expiration date of each such Letter of Credit. Additionally, a fee of 2.00% per
annum (the "Fee Accrual") shall accrue as a separate obligation on the undrawn
portion of each issued and outstanding Letter of Credit. The Fee Accrual shall
not bear any Interest under this Agreement and shall not be payable by the
Borrowers to the extent that the Borrowers pay all Obligations in full (other
than the Fee Accrual and the Interest Accrual) on or before the Maturity Date.
The Fee Accrual becomes due and payable on the first day following the Maturity
Date (if the Obligations other than the Fee Accrual and the Interest Accrual
have not been paid in full) or upon the Administrative Agent electing any of the
remedies provided for in Section 9.02(a) through (d) of this Agreement, and
interest shall thereafter accrue at the Default Rate on the undrawn portion of
all issued and outstanding Letters of Credit.
3.03. Reimbursement Obligations.
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(a) The Foreign Borrower hereby agrees to reimburse Administrative Agent
immediately upon demand by Administrative Agent, and in immediately available
funds, for any payment or disbursement made by Administrative Agent under any
Letter of Credit. Administrative Agent shall notify Foreign Borrower within one
Business Day of its receipt of a draw request with respect to a Letter of Credit
issued in a currency other than Dollars. Foreign Borrower, within one Business
Day of receipt of such notice from Administrative Agent, shall notify
Administrative Agent whether Foreign Borrower intends to make funds available to
Administrative Agent in such currency. Payment shall be made by the Foreign
Borrower with interest on the amount so paid or disbursed by Administrative
Agent from and including the date payment is made under any Letter of Credit to
and including the date of payment (which shall be no later than 5 days after the
date of demand by the Administrative Agent), at the lesser of (i) the Highest
Lawful Rate, and (ii) the sum of the Base Rate in effect from time to time plus
2.00% per annum; provided, however, that if the Foreign Borrower would be
permitted under the terms of Section 2.01, Section 2.02 and Section 4.02 to
borrow Foreign Revolver Advances in amounts at least equal to their
reimbursement obligation for a drawing under any Letter of Credit, a Base
Advance by each Lender, in an amount equal to such Lender's Foreign Revolver
Specified Percentage, shall automatically be deemed made on the date of any such
payment or disbursement made by Administrative Agent in the amount of such
obligation and subject to the terms of this Agreement. To the extent that the
Foreign Borrower fails to reimburse the Administrative Agent for funds disbursed
as a result of a funding under a Letter of Credit when a Base Advance is not
available within 5 days of the demand for such payment by the Administrative
Agent, interest on such disbursement shall accrue at the lesser of (i) the
Highest Lawful Rate, and (ii) the sum of the Base Rate in effect from time to
time plus 4.00% per annum.
(b) The Foreign Borrower hereby also agrees to pay to Administrative Agent
immediately upon demand by Administrative Agent and in immediately available
funds, as security for their reimbursement obligations in respect of the Letters
of Credit under Section 3.03(a) hereof and any other amounts payable hereunder
and under the Notes, an amount equal to the aggregate Dollar amount available to
be drawn under Letters of Credit then outstanding (or if any Letter of Credit is
denominated in a currency other than Dollars, the Dollar equivalent of such
currency), irrespective of whether the Letters of Credit have been drawn upon,
upon an Event of Default. Any such payments shall be deposited in a separate
account designated "Pacific Gateway Exchange (Bermuda) Limited Special Account"
or such other designation as Administrative Agent shall elect. All such amounts
deposited with Administrative Agent shall be and shall remain funds of the
Foreign Borrower on deposit with Administrative Agent and may be invested by
Administrative Agent as Administrative Agent shall determine. Such amounts may
not be used by Administrative Agent to pay the drawings under the Letters of
Credit; however, such amounts may be used by Administrative Agent as
reimbursement for Letter of Credit drawings which Administrative Agent has paid.
During the existence of an Event of Default but after the expiration of any
Letter of Credit that was not drawn upon, the Foreign Borrower may direct the
Administrative Agent to use any cash collateral for any such expired Letter of
Credit, if any, to reduce the amount of the Obligations. Any amounts remaining
in the Pacific Gateway Exchange (Bermuda) Limited Special Account, after the
date of the expiration of all Letters of Credit and after all Obligations have
been paid in full, or after the Event of Default shall cease to exist shall be
repaid to the Foreign Borrower promptly thereafter.
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(c) The obligations of the Foreign Borrower under this Section 3.03
will continue until all Letters of Credit have expired and all reimbursement
obligations with respect thereto have been paid in full by the Foreign Borrower
and until all other Obligations shall have been paid in full.
(d) The Foreign Borrower shall be obligated to reimburse Administrative
Agent upon demand for all amounts paid under the Letters of Credit as set forth
in Section 3.03(a) hereof; provided, however, if the Foreign Borrower for any
reason fails to reimburse Administrative Agent in full upon demand, whether by
borrowing Foreign Revolver Advances to pay such reimbursement obligations or
otherwise, the Lenders shall reimburse Administrative Agent in accordance with
each Lender's Foreign Revolver Specified Percentage for amounts due and unpaid
from the Foreign Borrower as set forth in Section 3.04 hereof; provided,
however, that no such reimbursement made by the Lenders shall discharge the
Foreign Borrower's obligations to reimburse Administrative Agent.
(e) The Foreign Borrower shall indemnify and hold Administrative Agent
or any Lender, its officers, directors, representatives and employees harmless
from loss for any claim, demand or liability which may be asserted against
Administrative Agent or such indemnified party in connection with actions taken
under the Letters of Credit or in connection therewith (INCLUDING LOSSES
RESULTING FROM THE NEGLIGENCE (BUT NOT THE GROSS NEGLIGENCE) OF ADMINISTRATIVE
AGENT OR SUCH INDEMNIFIED PARTY), and shall pay Administrative Agent for
reasonable fees of attorneys (who may be employees of Administrative Agent) and
legal costs paid or incurred by Administrative Agent in connection with any
matter related to the Letters of Credit, except for losses and liabilities
incurred as a direct result of the gross negligence or wilful misconduct of
Administrative Agent or such indemnified party. If the Foreign Borrower for any
reason fails to indemnify or pay Administrative Agent or such indemnified party
as set forth herein in full, the Lenders shall indemnify and pay Administrative
Agent upon demand, in accordance with each Lender's Foreign Revolver Specified
Percentage of such amounts due and unpaid from the Foreign Borrower. The
provisions of this Section 3.03(e) shall survive the termination of this
Agreement.
3.04. Lenders' Obligations. Each Lender agrees, unconditionally and
irrevocably to reimburse Administrative Agent on demand for such Lender's
Foreign Revolver Specified Percentage of each draw paid by Administrative Agent
under any Letter of Credit (or if such Letter of Credit is denominated in a
currency other than Dollars, the Dollar equivalent of such currency). All
amounts payable by any Lender under this subsection shall include interest
thereon at the Federal Funds Rate, from the date of the applicable draw to the
date of reimbursement by such Lender. No Lender shall be liable for the
performance or nonperformance of the obligations of any other Lender under this
Section. The obligations of the Lenders under this Section shall continue after
the Maturity Date and shall survive termination of any Loan Papers.
3.05. Administrative Agent's Obligations.
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(a) Administrative Agent makes no representation or warranty, and assumes
no responsibility with respect to the validity, legality, sufficiency or
enforceability of any Application or any document relative thereto or to the
collectibility thereunder. Administrative Agent assumes no responsibility for
the financial condition of the Foreign Borrower and its Subsidiaries or for the
performance of any obligation of the Foreign Borrower. Administrative Agent may
use its discretion with respect to exercising or refraining from exercising any
rights, or taking or refraining from taking any action which may be vested in it
or which it may be entitled to take or assert with respect to any Letter of
Credit or any Application.
(b) Administrative Agent shall be under no liability to any Lender, with
respect to anything the Administrative Agent may do or refrain from doing in the
exercise of its judgment, the sole liability and responsibility of
Administrative Agent being to handle each Lender's share on as favorable a basis
as Administrative Agent handles its own share and to promptly remit to each
Lender its share of any sums received by Administrative Agent under any
Application. Administrative Agent shall have no duties or responsibilities
except those expressly set forth herein and those duties and liabilities shall
be subject to the limitations and qualifications set forth herein.
(c) Neither Administrative Agent nor any of its directors, officers, or
employees shall be liable for any action taken or omitted (whether or not such
action taken or omitted is expressly set forth herein) under or in connection
herewith or any other instrument or document in connection herewith, except for
gross negligence or willful misconduct, and no Lender or either Borrower waives
its right to institute legal action against Administrative Agent for wrongful
payment of any Letter of Credit due to Administrative Agent's gross negligence
or willful misconduct. Administrative Agent shall incur no liability to any
Lender, the Foreign Borrower or any Affiliate of the Foreign Borrower or Lender
in acting upon any notice, document, order, consent, certificate, warrant or
other instrument reasonably believed by Administrative Agent to be genuine or
authentic and to be signed by the proper party.
ARTICLE IV. CONDITIONS PRECEDENT
4.01. Conditions Precedent to the Closing Date. The occurrence of the
Closing Date is subject to receipt by the Administrative Agent of each of the
following, in form and substance satisfactory to the Administrative Agent, with
a copy (except for the Notes) for each Lender:
(a) a loan certificate of each Borrower certifying as to the accuracy of
its representations and warranties in the Loan Papers, certifying that no
Default or Event of Default has occurred under the terms of this Agreement, and
including a certificate of incumbency with respect to each Authorized Officer,
and containing a representation that the following items are attached thereto,
and that each of such items remains unchanged and valid, except as shown on the
attachments: (i) copies of the Articles of Incorporation or Memorandum of
Association of each Subsidiary formed after December 31, 1999, certified to be
true, complete and correct by the secretary of state of each such Person's
respective state or country of organization, (ii) copies of the By-Laws (or
bye-laws) of each of the Subsidiaries referenced in (i) above and (iii) copies
of a certificate of good standing and a certificate of existence for each
Subsidiary referenced in (i)
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above in their state or country of organization and each other state or country
in which they are required to be authorized to do business;
(b) duly executed Notes by each Borrower, payable to the order of each
Lender, equal to its Applicable Revolver Specified Percentage of the Commitments
on the Closing Date;
(c) a loan certificate of each Borrower certifying that a copy of the
resolutions of such Borrower and each of the Subsidiaries authorizing such
entity to execute, deliver and perform this Agreement, the Notes and the other
Loan Papers to which each such entity is a party is attached and is a true and
accurate copy;
(d) in form and substance acceptable to the Administrative Agent, a duly
executed and completed pledge agreement or share charge by the Domestic Borrower
pledging or charging 66% of the Capital Stock of each Foreign DB Subsidiary
formed after December 31, 1999;
(e) in form and substance acceptable to the Administrative Agent, a duly
executed and completed pledge agreement by the Domestic Borrower pledging 100%
of the Capital Stock of the Domestic DB Subsidiaries of the Domestic Borrower to
secure the Domestic Revolver Loan;
(f) in form and substance acceptable to the Administrative Agent, a duly
executed and completed pledge agreement or share charge by the applicable
Obligor pledging or charging 100% of the Capital Stock of the FB Subsidiaries
owned by such Obligor and 100% of the Capital Stock of the Foreign DB Subsidiary
owned by such Obligor to secure the Foreign Revolver Loan;
(g) original stock or membership certificates, as applicable, constituting
the pledged Capital Stock of the Subsidiaries as described in (e) and (f) above,
together with stock powers executed in blank and UCC filings requested by the
Administrative Agent;
(h) a reaffirmation of each of the existing Loan Papers executed by the
Obligors thereunder as set forth in Section 2.16 hereof;
(i) all other Loan Papers to be delivered on the Closing Date duly
executed and completed, dated the Closing Date;
(j) opinions addressed to Administrative Agent on behalf of the Lenders of
corporate counsel to the Borrowers, each Domestic DB Subsidiary formed after
December 31, 1999 and foreign counsel for each FB Subsidiary and each Foreign DB
Subsidiary formed after December 31, 1999 with respect to organizational
matters, due authorization, execution, etc., no violation of law or material
agreement, and the validity and enforceability under New York law;
(k) (i) reimbursement for Administrative Agent and each Lender with
respect to its reasonable fees and expenses and (ii) receipt by Administrative
Agent, (A) on behalf of Special Counsel, via wire transfer, payment of all fees
and expenses of Special Counsel through the date of this Agreement in order to
replenish the existing retainer in the amount of $100,000, which
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retainer shall be maintained at such level throughout the life of this Agreement
to reimburse Administrative Agent for legal fees to be incurred by Special
Counsel after the date hereof, such retainer to be held by Special Counsel, (B)
on behalf of O'Melveny & ▇▇▇▇▇ LLP, via wire transfer, payment of all fees and
expenses of O'Melveny & ▇▇▇▇▇ LLP through the date of this Agreement together
with a retainer in the amount of $100,000 which retainer shall be maintained at
such level throughout the life of this Agreement to reimburse Administrative
Agent for legal fees to be incurred by O'Melveny & ▇▇▇▇▇ LLP after the date
hereof, such retainer to be held by O'Melveny & ▇▇▇▇▇ LLP, and (C) on behalf of
▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇, via wire transfer, payment of fees and expenses of ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇ through the date of this Agreement in order to replenish the existing
retainer in the amount of $100,000 which retainer shall be maintained at such
level throughout the life of this Agreement to reimburse Administrative Agent
for advisory fees to be incurred by ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ after the date hereof, such
retainer to be held by ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇;
(l) evidence that all corporate proceedings of the Borrowers and each of
their Subsidiaries has taken place in connection with the transactions
contemplated by this Agreement and the other Loan Papers, shall be reasonably
satisfactory in form and substance to the Lenders and Special Counsel; and the
Lenders shall have received copies of all documents or other evidence which the
Administrative Agent, Special Counsel or any Lender may reasonably request in
connection with such transactions;
(m) a duly completed Compliance Certificate evidencing no Default or Event
of Default dated as of the Closing Date for the most recently ended calendar
month other than as previously waived or waived in this Agreement;
(n) in form and substance satisfactory to the lenders and Special Counsel,
a duly executed and completed Domestic Affiliate IRU Agreement and Foreign
Affiliate IRU Agreement; and
(o) in form and substance satisfactory to the Lenders and Special Counsel,
such other documents, instruments and certificates as the Administrative Agent
or any Lender may reasonably require in connection with the transactions
contemplated hereby, including without limitation the status, organization or
authority of the Borrowers or any Subsidiary and the enforceability of and
security for the Obligations.
4.02. Conditions Precedent to All Advances. The obligation of each Lender
to make each Advance hereunder shall be subject to the further conditions
precedent that on the date of such Advance:
(a) All of the representations and warranties of the Borrowers under this
Agreement shall be true and correct at such time in all material respects, both
before and after giving effect to the application of the proceeds of the
Advance, except those representations and warranties that specifically speak as
of a particular date;
(b) The incumbency of the Authorized Officers shall be as stated in the
certificate of incumbency delivered in the Borrowers' loan certificate pursuant
to Section 4.01(a) or as
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subsequently modified and reflected in a certificate of incumbency delivered to
the Administrative Agent. The Lenders may, without waiving this condition,
consider it fulfilled and a representation by the Borrowers made to such effect
if no written notice to the contrary, dated on or before the date of such
Advance, is received by the Administrative Agent from the Borrowers prior to the
making of such Advance;
(c) There shall not exist a Default or an Event of Default hereunder and
none shall exist as a result of making any such Advance, and the Administrative
Agent shall have received written or telephonic certification thereof by an
Authorized Officer (which certification, if telephonic, shall be followed
promptly by written certification);
(d) No Material Adverse Change has occurred and is continuing;
(e) In the case of any Domestic Revolver Advance, the aggregate
outstanding Domestic Revolver Advances after giving effect to such proposed
Domestic Revolver Advance, shall not exceed the Domestic Revolver Commitment;
and
(f) In the case of any Foreign Revolver Advance, the aggregate outstanding
Foreign Revolver Advances after giving effect to such proposed Foreign Revolver
Advance, plus the sum of the face amount of all outstanding Letters of Credit
plus all reimbursement obligations under Article III hereof, shall not exceed
the Foreign Revolver Commitment; and
(g) Certification in a Compliance Certificate from and calculations by
Borrowers demonstrating compliance with the Capital Expenditure covenant and the
loan use limitations.
ARTICLE V. REPRESENTATIONS AND WARRANTIES
5.01. Representations and Warranties. The Borrowers hereby represent and
warrant to each Lender as follows:
(a) The respective jurisdictions of incorporation and percentage ownership
of all Subsidiaries, including a designation of the DB Subsidiaries, the FB
Subsidiaries and the Foreign DB Subsidiaries, of the Borrowers on the Closing
Date and listed on Schedule 5.01(a) hereto are true and correct. Each of the
Borrowers and the Subsidiaries (other than PGE Switzerland) is a entity duly
organized, validly existing and in good standing under the laws of its state or
country of organization. Each of the Borrowers and the Subsidiaries has the
corporate power and corporate authority to own its properties and to carry on
its business as now being conducted. Each of the Borrowers and the Subsidiaries
(other than PGE Switzerland) is duly qualified, in good standing and authorized
to do business in each jurisdiction in which the character of its Properties or
the nature of its business requires such qualification or authorization, except
where the failure to so qualify could not reasonably be expected to cause a
Material Adverse Change.
(b) The Borrowers have the corporate power and has taken all necessary
corporate action to authorize it to borrow hereunder. Each of the Borrowers and
the Subsidiaries has corporate power and has taken all necessary corporate
action to execute, deliver and perform the
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Loan Papers to which it is party in accordance with the terms thereof, and to
consummate the transactions contemplated thereby. Each Loan Paper has been duly
executed and delivered by the Borrowers or such Subsidiary executing it. Each of
the Loan Papers to which the Borrowers and the Approved Subsidiaries are party
is a legal, valid and binding obligation of each of the Borrowers or such
Approved Subsidiary, as applicable, enforceable in accordance with its terms,
subject, to enforcement of remedies, to the following qualifications: (i)
equitable principles generally, and (ii) bankruptcy, insolvency, liquidation,
reorganization, reconstruction and other similar laws affecting enforcement of
creditors' rights generally (insofar as any such law relates to the bankruptcy,
insolvency or similar event of either of the Borrowers or any Approved
Subsidiary of the Borrowers).
(c) The execution, delivery and performance by the Borrowers and the
Subsidiaries of the other Loan Papers to which they are respectively a party,
and the consummation of the transactions contemplated thereby, do not and will
not (i) require any consent or approval not already obtained, (ii) violate any
Applicable Law, (iii) conflict with, result in a breach of, or constitute a
default under the articles of incorporation or by-laws (or memorandum of
association or bye-laws) of either of the Borrowers or any Subsidiary, or under
any material License, indenture, agreement or other instrument, to which either
of the Borrowers or any Subsidiary is a party or beneficiary of, or by which
they or their respective Properties may be bound, or (iv) result in or require
the creation or imposition of any Lien upon or with respect to any property now
owned or hereafter acquired by either of the Borrowers or any Subsidiary, except
Permitted Liens, except, with respect to any of the foregoing, which could not
reasonably be expected to cause a Material Adverse Change.
(d) The Borrowers and its Subsidiaries are primarily engaged in the
operation of telecommunications and internet businesses and pursuing activities
related thereto.
(e) On the Closing Date, all material Licenses of the Borrowers and the
Subsidiaries have been duly authorized and obtained, and are in full force and
effect. The Borrowers and the Subsidiaries are in compliance in all material
respects with all provisions thereof. On the Closing Date, no material License
is the subject of any pending or, to the best of the Borrowers' knowledge,
threatened challenge or revocation. On each date after the Closing Date on which
this representation is deemed to be made, no material License is the subject of
any pending or, to the best of the Borrowers' knowledge, threatened challenge or
revocation, which such event could reasonably be expected to cause a Material
Adverse Change. The Borrowers and the Subsidiaries are not required to obtain
any material License that has not already been obtained from, or effect any
material filing or registration that has not already been effected with, the
FCC, any applicable PUC or any other federal, state or local regulatory
authority in connection with the execution and delivery of this Agreement or any
other Loan Paper, or the performance thereof (other than any enforcement of
remedies by the Administrative Agent on behalf of the Lenders), in accordance
with their respective terms, including any borrowings hereunder.
(f) The Borrowers and the Subsidiaries are in compliance in all
material respects with all material Applicable Laws. The Borrowers and the
Subsidiaries have duly and timely filed all reports, statements and filings that
are required to be filed by any of them under the
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Communications Act, and are in all material respects in compliance therewith,
including without limitation the rules and regulations of the FCC and each
applicable PUC. Except as set forth on Schedule 5.01(f) hereto, as of the
Closing Date, the Borrowers are not aware of any event or circumstance
constituting noncompliance (or any Person alleging noncompliance) with any rule
or regulation of the FCC or any applicable PUC. On each date after the Closing
Date on which this representation is deemed to be made, the Borrowers are not
aware of any event or circumstance constituting noncompliance (or any Person
alleging noncompliance) with any rule or regulation of the FCC or any applicable
PUC, which such event or circumstance could reasonably be expected to cause a
Material Adverse Change.
(g) On the Closing Date, the Borrowers and the Subsidiaries have good and
indefeasible title to, or a valid leasehold interest in, all of their material
assets and Properties. On each date after the Closing Date on which this
representation is deemed to be made, the Borrowers and the Subsidiaries have
good and indefeasible title to, or a valid leasehold interest in, all of their
material assets and Properties, in which any such failure could reasonably be
expected to cause a Material Adverse Change. None of the assets of the Borrowers
or the Subsidiaries is subject to any Liens, except Permitted Liens and Liens
permitted under Section 8.03(b) hereof. No financing statement or other Lien
filing authorized by either of the Borrowers or any Subsidiary (except relating
to Permitted Liens and Liens permitted by Section 8.03(b) hereof) is on file in
any state or jurisdiction that names either Borrower or any of the Subsidiaries
as debtor or covers (or purports to cover) any assets of either Borrower or any
of the Subsidiaries. Neither the Borrowers nor any of the Subsidiaries have
signed any such financing statement or filing, nor any security agreement
authorizing any Person to file any such financing statement or filing.
(h) On the Closing Date, except as reflected on Schedule 5.01(h) hereto or
publically reported shareholder class action suits, there is no material action,
suit, proceeding or any other Litigation pending against, the Borrowers or any
of their Subsidiaries, or in any other manner relating directly and materially
adversely to the Borrowers any of their Subsidiaries, or any of their material
Properties, in any court or before any arbitrator of any kind or before or by
any governmental body. On each date after the Closing Date on which this
representation is deemed to be made, there is no action, suit, proceeding or any
other Litigation pending against, the Borrowers or any of their Subsidiaries, or
in any other manner relating to the Borrowers or any of their Subsidiaries, or
any of their Properties, in any court or before any arbitrator of any kind or
before or by any governmental body, which could reasonably be expected to cause
a Material Adverse Change other than litigation of the nature and type of
shareholder class action suits described on Schedule 5.01(h) or that are
publically reported.
(i) All material federal, state and other Tax returns of the Borrowers and
their Subsidiaries required by law to be filed have been duly filed and all
Taxes, assessments and governmental charges or levies imposed upon either of the
Borrowers or their Subsidiaries or any of their Properties, income, profits and
assets, except those that are diligently contested in good faith by the
Borrowers and for which adequate reserves have been established in accordance
with GAAP, and no Lien (other than a Permitted Lien) has attached and no
foreclosure, distraint, sale or similar proceedings have been commenced.
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(j) The Borrowers have furnished or caused to be furnished to the Lenders
copies of its financial statements at December 31, 1999 which are prepared in
good faith and complete in all material respects. Each such statement presents
fairly in all material respects and in accordance with GAAP the financial
position of the Borrowers and the Subsidiaries as at such dates, and the results
of operations for the periods then ended. The Borrowers and the Subsidiaries
have no material liabilities, contingent or otherwise, nor material losses,
except as disclosed in writing to the Lenders prior to the Closing Date or as
disclosed on any subsequent financial statements. On the Closing Date after
giving effect to the Advances made on such date, the Borrowers and their
Subsidiaries on a consolidated basis are Solvent.
(k) None of the Borrowers or their Controlled Group maintains or
contributes to any Plan other than those disclosed to the Administrative Agent
in writing. Each such Plan is in compliance in all material respects with the
applicable provisions of ERISA, the Code, and any other applicable Federal or
state law, rule or regulation. With respect to each Plan of either Borrower and
each member of its Controlled Group (other than a Multiemployer Plan), all
reports required under ERISA or any other Applicable Law to be filed with any
governmental authority, the failure of which to file could reasonably result in
liability of such Borrower or any member of its Controlled Group in excess of
$100,000, have been duly filed. All such reports are true and correct in all
material respects as of the date given. No such Plan of either Borrower or any
member of its Controlled Group has any accumulated funding deficiency (as
defined in Section 412(a) of the Code) (without regard to any waiver granted
under Section 412 of the Code), nor has any funding waiver from the Internal
Revenue Service been received or requested. None of the Borrowers or any member
of its Controlled Group has failed to make any contribution or pay any amount
due or owing as required by Section 412 of the Code or Section 302 of ERISA or
the terms of any such Plan prior to the due date under Section 412 of the Code
and Section 302 of ERISA. There has been no ERISA Event or any event requiring
disclosure under Section 4041(c)(3)(C), 4068(f), 4063(a) or 4043(b) of ERISA
with respect to any Plan or trust of the Borrowers or any member of its
Controlled Group since the effective date of ERISA. The value of the assets of
each Plan (other than a Multiemployer Plan) of the Borrowers and each member of
its Controlled Group equaled or exceeded the present value of the benefit
liabilities, as defined in Title IV of ERISA, of each such Plan as of the most
recent valuation date using Plan actuarial assumptions at such date. There are
no pending or, to the best of the Borrowers' knowledge, threatened claims,
lawsuits or actions (other than routine claims for benefits in the ordinary
course) asserted or instituted against, and neither the Borrowers nor any member
of their Controlled Group has knowledge of any threatened Litigation or claims
against, (i) the assets of any Plan or trust or against any fiduciary of a Plan
with respect to the operation of such Plan, or (ii) the assets of any employee
welfare benefit plan within the meaning of Section 3(1) or ERISA, or against any
fiduciary thereof with respect to the operation of any such plan. None of the
Borrowers or any member of their Controlled Group has engaged in any non-exempt
prohibited transactions, within the meaning of Section 406 or Section 4.08 of
ERISA or Section 4975 of the Code, in connection with any Plan. None of the
Borrowers or any member of their Controlled Group has incurred or reasonably
expects to incur (A) any liability under Title IV of ERISA (other than premiums
due under Section 4007 of ERISA to the PBGC), (B) any withdrawal liability (and
no event has occurred which with the giving of notice under Section 4219 of
ERISA would result in such liability) under Section 4201 of ERISA as a result of
a complete or partial
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withdrawal (within the meaning of Section 4203 or 4205 of ERISA) from a
Multiemployer Plan, or (C) any liability under Section 4062 of ERISA to the PBGC
or to a trustee appointed under Section 4042 of ERISA. None of the Borrowers,
any member of their Controlled Group, or any organization to which either
Borrower or any member of their Controlled Group is a successor or parent
corporation within the meaning of ERISA Section 4069(b), has engaged in a
transaction within the meaning of ERISA Section 4069. None of the Borrowers or
any member of their Controlled Group maintains or has established any welfare
benefit plan within the meaning of Section 3(1) of ERISA which provides for
continuing benefits or coverage for any participant or any beneficiary of any
participant after such participant's termination of employment except as may be
required by the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended ("COBRA") and the regulations thereunder, and at the expense of the
participant or the beneficiary of the participant, or retiree medical
liabilities. Each of the Borrowers and their Controlled Group which maintains a
welfare benefit plan within the meaning of Section 3(1) of ERISA has complied in
all material respects with any applicable notice and continuation requirements
of COBRA and the regulations thereunder.
(l) The Borrowers are not, nor are any of the Subsidiaries engaged
principally or as one of its important activities in the business of extending
credit for the purpose of purchasing or carrying any margin stock within the
meaning of Regulations T, U and X of the Board of Governors of the Federal
Reserve System, and no part of the proceeds of the Advances will be used to
purchase or carry any margin stock (as defined by Regulation U) or to extend
credit to others for the purpose of purchasing or carrying any margin stock. Not
more than 25% of the assets of either Borrower or any of their Subsidiaries are
margin stock (as defined by Regulation U), and none of the Capital Stock of
either Borrower's Subsidiaries is margin stock. None of the Borrowers or their
Subsidiaries, nor any agent acting on their behalf, have taken or will knowingly
take any action which might cause this Agreement or any Loan Papers to violate
any regulation of the Board of Governors of the Federal Reserve System or to
violate the Exchange Act, in each case as in effect now or as the same may
hereafter be in effect.
(m) The Borrowers and the Subsidiaries (other than PGE Switzerland) are in
compliance with all of the material provisions of their articles of
incorporation and by-laws.
(n) Neither Borrower is, nor are any of their Subsidiaries, required to
register under the provisions of the Investment Company Act of 1940, as amended.
Neither the entering into or performance by the Borrowers of this Agreement nor
the issuance of the Notes, nor the execution, delivery and performance of the
obligations under the Loan Papers by the Borrowers and their Subsidiaries,
violates any provision of such act or requires any consent, approval, or
authorization of, or registration with, the Securities and Exchange Commission
or any other governmental or public body of authority pursuant to any provisions
of such act.
(o) On the Closing Date, neither of the Borrowers or any of their
Subsidiaries has any actual knowledge or reason to believe that any substance
deemed hazardous by any applicable Environmental Law, has been installed on any
real property now owned by the Borrower or any of its Subsidiaries, except (i)
for hazardous substances the presence of which is not in violation of law and
(ii) as disclosed in writing to the Lenders. On each date after the Closing Date
on which
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this representation is deemed to be made, neither of the Borrowers nor any
Subsidiary has any actual knowledge or reason to believe that any substance
deemed hazardous by any applicable Environmental Law, has been installed in
violation of law on any real property now owned by either Borrower or any of
their Subsidiaries except as disclosed to the Lenders in writing, and which
could, in the reasonable judgment of the Borrowers, be expected to cause a
Material Adverse Change. As of the Closing Date, neither the Borrowers nor the
Subsidiaries are in violation of or subject to any existing, pending or, to the
best of either Borrower's knowledge, threatened investigation or inquiry by any
governmental authority or to any material remedial obligations under any
applicable Environmental Laws, and this representation and warranty would
continue to be true and correct following disclosure to the applicable
governmental authorities of all relevant facts, conditions and circumstances, if
any, pertaining to any real property of either Borrower or the Subsidiaries. On
each date after the Closing Date on which this representation is deemed to be
made, neither the Borrowers nor the Subsidiaries are in violation of or subject
to any existing, pending or, to the best of either Borrower's knowledge,
threatened investigation or inquiry by any governmental authority or to any
material remedial obligations under any applicable Environmental Laws which
could reasonably be expected to cause a Material Adverse Change, and this
representation and warranty would continue to be true and correct following
disclosure to the applicable governmental authorities of all relevant facts,
conditions and circumstances, if any, pertaining to any real property of either
Borrower or the Subsidiaries. Neither the Borrowers nor the Subsidiaries are
required to obtain any permits, Licenses or similar authorizations to construct,
occupy, operate or use any buildings, improvements, fixtures, and equipment
forming a part of any real property of either Borrower or any Subsidiary by
reason of any applicable Environmental Laws, except those that have been
obtained. As of the Closing Date, neither Borrower nor any or their Subsidiaries
have actual knowledge or reason to believe, after reasonable investigation, that
any hazardous substances or solid wastes have been disposed of or otherwise
released on or to the real property of either Borrower or any of their
Subsidiaries in violation of any applicable Environmental Law, except as could
be not reasonably be expected to cause a Material Adverse Change. On each date
after the Closing Date on which this representation is deemed to be made,
neither Borrower nor any of their Subsidiaries have actual knowledge or reason
to believe, that any hazardous substances or solid wastes have been disposed of
or otherwise released on or to the real property of either Borrower any of their
Subsidiaries, within the meaning of the applicable Environmental Laws, except as
disclosed to the Lenders and which such disposal or release could not reasonably
be expected to cause a Material Adverse Change.
(p) On the Closing Date, there is no pending Litigation that has not been
disclosed in writing to the Lenders either directly or through SEC filings.
(q) All Capital Stock of the Borrowers and their Subsidiaries has been
duly authorized and validly issued, and is fully paid and nonassessable. The
Capital Stock described on Schedule 5.01(a) hereto constitutes all the issued
and outstanding Capital Stock of the Foreign Borrower and all the direct and
indirect Subsidiaries of either Borrower, except such shares that have been
issued after the Closing Date. No Person has conversion rights with respect to,
or any subscription rights, calls, commitments or claims of any character for,
or any repurchase or redemption options relating to, the Capital Stock of either
Borrower and their Subsidiaries, other
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than those rights that have been waived, except as disclosed on Schedule
5.01(q). The Capital Stock of the Borrowers and their Subsidiaries when issued
or sold, was either (i) registered or qualified under applicable federal or
state securities laws, or (ii) exempt therefrom.
(r) No broker's, finder's or other fee or commission will be payable by
either Borrower (other than to the Lenders or their Affiliates hereunder) with
respect to the making of the Commitment or the Advances hereunder. The Borrowers
agree to indemnify and hold harmless the Administrative Agent and each Lender
from and against any claims, demand, liability, proceedings, costs or expenses
asserted with respect to or arising in connection with any such fees or
commissions.
(s) No event, act or condition has occurred which permits (or with the
passage of time would permit) the revocation or termination of any material
License, which could result in the imposition of any restriction thereon of such
a nature that could reasonably be expected to cause a Material Adverse Change.
(t) To the best knowledge of the Borrowers, as of the Closing Date, the
Borrowers and their Subsidiaries have obtained all material patents, trademarks,
service-marks, trade names, copyrights, Licenses and other rights, free from
burdensome restrictions, that are necessary for the operation of their business
as presently conducted and as proposed to be conducted, except those, the
failure of which to obtain could not be reasonably expected to cause a Material
Adverse Change. On each date after the Closing Date on which this representation
is deemed to be made, the Borrowers and the Subsidiaries have obtained all
patents, trademarks, service-marks, trade names, copyrights, Licenses and other
rights, free from burdensome restrictions, that are necessary for the operation
of their business as presently conducted and as proposed to be conducted, except
those, the failure of which to obtain could not be reasonably expected to cause
a Material Adverse Change. Nothing has come to the attention of either Borrower
or any of their Subsidiaries to the effect that (i) any process, method, part or
other material presently contemplated to be employed by either Borrower or any
of their Subsidiaries may infringe any patent, trademark, service-▇▇▇▇, trade
name, copyright, License or other right owned by any other Person, or (ii) there
is pending or overtly threatened any claim or Litigation against or affecting
either Borrower or any of their Subsidiaries contesting its right to sell or use
any such process, method, part or other material, which could reasonably be
expected to cause a Material Adverse Change.
(u) Neither this Agreement nor any other document, certificate or
statement taken as a whole which has been furnished to any Lender by or on
behalf of either Borrower or any of their Subsidiaries in connection with this
Second Amended and Restated Credit Agreement contained any untrue statement of a
material fact or omitted to state a material fact necessary in order to make the
statement contained herein and therein not misleading at the time it was
furnished.
(v) Neither the Borrowers nor any of their Subsidiaries is a party to any
contractual relationship which is breached or in default solely as a result of
any change in the ownership or management of either Borrower, or the Board of
Directors, unless such Borrower has agreed to a substantially similar provision
in this Agreement.
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(w) Accounts. Schedule 5.01(w) is an accurate and comprehensive list of
each of the Borrowers' and the Borrowers' Subsidiaries accounts maintained with
financial institutions identified by the name in which the account has been
established, the location of such account, the name and address of the financial
institution holding such account and the number of such account.
(x) Excluded IRU Agreements. Schedule 1.03 is an accurate and
comprehensive list of all Excluded IRU Agreements, the book value of such
agreements in the aggregate being no greater than $30,485,187.00 as of March 31,
2000.
5.02. Survival of Representations and Warranties. All representations and
warranties made under this Agreement and the other Loan Papers shall be deemed
to be made at and as of the Closing Date and at and as of the date of each
Advance, and each shall be true and correct in all material respects when made.
All such representations and warranties shall survive, and not be waived by, the
execution hereof by any Lender, any investigation or inquiry by any Lender, or
by the making of any Advance under this Agreement.
ARTICLE VI. GENERAL COVENANTS
So long as any of the Obligations are outstanding and unpaid or the
Commitment or any Letter of Credit is outstanding (whether or not the conditions
to borrowing have been or can be fulfilled):
6.01. Preservation of Existence and Similar Matters.
(a) The Borrowers shall, and shall cause their Subsidiaries to, preserve
and maintain, or timely obtain and thereafter preserve and maintain (i) material
rights, franchises, authorizations, consents, privileges and all other material
Licenses from federal, state and local governmental bodies and any Tribunal
(regulatory or otherwise) which such Borrower or such Subsidiary deems
reasonably necessary or advisable to conduct its business in the ordinary
course, and (ii) its existence (except as permitted by Section 8.05 hereof); and
(b) The Borrowers shall, and shall cause each of their Subsidiaries to,
qualify and remain qualified and authorized to do business in each jurisdiction
in which the character of its Properties or the nature of its business requires
such qualification or authorization, except where the failure to do so could not
be reasonably expected to cause a Material Adverse Change.
6.02. Business; Compliance with Applicable Law. The Borrowers shall, and
shall cause their Subsidiaries to (a) engage primarily in the business of
telecommunications and internet, and activities related thereto, and (b) comply
in all material respects with the requirements of all Applicable Law, except
where the failure to do so could not reasonably be expected to cause a Material
Adverse Change.
6.03. Maintenance of Properties. The Borrowers shall, and shall cause
their
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Subsidiaries to, maintain or cause to be maintained all their material
Properties necessary to the conduct of their business (whether owned or held
under lease) in reasonably good repair, working order and condition, taken as a
whole, and from time to time make or cause to be made all appropriate repairs,
renewals, replacements, additions, betterments and improvements thereto.
6.04. Accounting Methods and Financial Records. The Borrowers shall, and
shall cause their Subsidiaries to, maintain a system of accounting established
and administered in accordance with GAAP, keep adequate records and books of
account in which complete entries will be made and all transactions reflected in
accordance with GAAP, and keep accurate and complete records of its respective
assets. The Borrowers shall, and shall cause each of their Subsidiaries to
maintain a fiscal year ending on December 31.
6.05. Insurance. The Borrowers shall, and shall cause each of their
Subsidiaries to, maintain insurance (including self insurance with respect to
their deductibles) from responsible companies in such amounts and against such
risks as shall be customary and usual in the industry for companies of similar
size and capability, but in no event less than the amount and types insured as
of the Closing Date. The Borrowers shall or shall cause certificates of
insurance to be delivered to the Administrative Agent, in the case of liability
insurance, naming the Administrative Agent as additional insured, and in the
case of property and casualty insurance on all the assets of the Borrowers and
their Subsidiaries, naming the Administrative Agent as loss-payee.
6.06. Payment of Taxes and Claims. The Borrowers shall, and shall cause
each of their Subsidiaries to, pay and discharge all Taxes, assessments and
governmental charges or levies imposed upon it or its income, Properties,
profits or assets prior to the date on which penalties attach thereto, which, if
unpaid, might become a Lien upon any of their Properties or assets except those
Taxes, assessments and charges contested by the Borrowers diligently in good
faith, and for which adequate reserves have been established in accordance with
GAAP. The Borrowers shall, and shall cause each of their Subsidiaries to, timely
file all material information returns required by federal, state or local Tax
authorities.
6.07. Visits and Inspections. The Borrowers shall, and shall cause each of
their Subsidiaries to, promptly, permit representatives of the Administrative
Agent or any Lender from time to time, upon prior notice reasonable under the
circumstances, to (a) visit and inspect the Properties of the Borrower and each
of their Subsidiaries as often as the Administrative Agent or any Lender shall
deem advisable, (b) inspect and make extracts from and copies of either of the
Borrower's or their Subsidiary's books and records, and (c) discuss with the
Borrowers' or any of their Subsidiary's directors, officers, employees and the
auditors of either Borrower or any of their Subsidiaries, its business, assets,
liabilities, financial positions, results of operations and business prospects.
6.08. Use of Proceeds. The Borrower shall use the proceeds of the Advances
exclusively as described in Section 2.15 hereof.
6.09. Indemnity.
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(a) Each of the Borrowers shall, and shall cause each of their respective
FB or DB Subsidiaries (other than PGE Fiber and PGE Fiber (Bermuda)) to, defend,
protect, indemnify and hold harmless the Administrative Agent, each Lender, each
of their respective Affiliates, and each of their respective (including such
Affiliates') officers, directors, employees, agents, attorneys, shareholders and
consultants (including, without limitation, those retained in connection with
the satisfaction or attempted satisfaction of any of the conditions set forth
herein) of each of the foregoing (collectively, "Indemnitees") from and against
any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, claims, costs, expenses and disbursements of any kind or
nature whatsoever (including, without limitation, the reasonable fees and
disbursements of counsel for such Indemnitees in connection with any
investigative, administrative or judicial proceeding, whether or not such
Indemnitees shall be designated a party thereto), imposed on, incurred by, or
asserted against such Indemnitees (whether direct, indirect or consequential and
whether based on any federal, state, or local laws and regulations), under
common law or at equitable cause, or on contract, tort or otherwise, arising
from or connected with the past, present or future operations of the applicable
Borrower or its respective FB or DB Subsidiaries, or any of their predecessors
in interest, in any manner relating to or arising out of this Agreement, the
Loan Papers, or any act, event or transaction or alleged act, event or
transaction relating or attendant thereto, the making of any participations in
the Advances and the management of the Advances, INCLUDING IN CONNECTION WITH,
OR AS A RESULT, IN WHOLE OR IN PART, OF ANY NEGLIGENCE OF ADMINISTRATIVE AGENT
OR ANY LENDER (other than those matters raised exclusively by a participant
against the Administrative Agent or any Lender and not either Borrower), or the
use or intended use of the proceeds of the Advances hereunder, or in connection
with any investigation of any potential matter covered hereby, but excluding any
claim or liability to the extent that it arises as the result of the gross
negligence or willful misconduct of any Indemnitee, as finally judicially
determined by a court of competent jurisdiction (collectively, the "Indemnified
Matters").
(b) In addition, each of the Borrowers shall, and shall cause each of
their respective FB or DB Subsidiaries (other than PGE Fiber and PGE Fiber
(Bermuda)) to, periodically, upon request, reimburse each Indemnitee for its
reasonable legal and other actual expenses (including the cost of any
investigation and preparation) incurred in connection with any Indemnified
Matter. If for any reason the foregoing indemnification is unavailable to any
Indemnitee or insufficient to hold any Indemnitee harmless with respect to
Indemnified Matters, then the applicable Borrowers and their respective FB or DB
Subsidiaries shall contribute to the amount paid or payable by such Indemnitee
as a result of such loss, claim, damage or liability in such proportion as is
appropriate to reflect not only the relative benefits received by such Borrower
or such Subsidiaries, and either Borrower's stockholders or their Subsidiaries'
stockholders, on the one hand and such Indemnitee on the other hand but also the
relative fault of such Borrower or such Subsidiary and such Indemnitee, as well
as any other relevant equitable considerations. The reimbursement, indemnity and
contribution obligations under this Section shall be in addition to any
liability which either Borrower may otherwise have, shall extend upon the same
terms and conditions to each Indemnitee, and shall be binding upon and inure to
the benefit of any successors, assigns, heirs and personal representatives of
the Borrowers and their Subsidiaries, the Administrative Agent, the Lenders and
all other Indemnitees. This Section shall survive any termination of this
Agreement and payment of the Obligations.
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6.10. Environmental Law Compliance. The use which either of the Borrowers
or any of their respective FB or DB Subsidiaries intends to make of any real
Property owned by it will not result in the disposal or other release of any
hazardous substance or solid waste on or to such real Property in violation of
any Environmental Law that could reasonably be expected to cause a Material
Adverse Change. As used herein, the terms "hazardous substance" and "release" as
used in this Section shall have the meanings specified in CERCLA (as defined in
the definition of applicable Environmental Laws), and the terms "solid waste"
and "disposal" shall have the meanings specified in RCRA (as defined in the
definition of applicable Environmental Laws); provided, however, that if CERCLA
or RCRA is amended so as to broaden the meaning of any term defined thereby,
such broader meaning shall apply subsequent to the effective date of such
amendment; and provided further, to the extent that any other law applicable to
either Borrower or any of their respective FB or DB Subsidiaries or any of their
properties and assets establishes a meaning for "hazardous substance,"
"release," "solid waste," or "disposal" which is broader than that specified in
either CERCLA or RCRA, such broader meaning shall apply. Each of the Borrowers
shall, and shall cause their respective FB or DB Subsidiaries (other than PGE
Fiber (Bermuda) and PGE Fiber) to, indemnify and hold the Administrative Agent
and each Lender harmless from and against, and to reimburse them with respect
to, any and all claims, demands, causes of action, loss, damage, liabilities,
costs and expenses (including reasonable attorneys' fees and courts costs) of
any kind or character, known or unknown, fixed or contingent, asserted against
or incurred by any of them at any time and from time to time by reason of or
arising out of (a) the failure of either Borrower or any of their respective FB
or DB Subsidiaries (other than PGE Fiber (Bermuda) and PGE Fiber) to perform any
obligation hereunder regarding asbestos or applicable Environmental Laws, (b)
any violation on or before the Release Date of any applicable Environmental Law
in effect on or before the Release Date, and (c) any act, omission, event or
circumstance existing or occurring on or prior to the Release Date (including
without limitation the presence on such real Property or release from such real
Property of hazardous substances or solid wastes disposed of or otherwise
released on or prior to the Release Date), resulting from or in connection with
the ownership of the real Property, regardless of whether the act, omission,
event or circumstance constituted a violation of any applicable Environmental
Law at the time of its existence or occurrence, or whether the act, omission,
event or circumstance is caused by or relates to the negligence of any
indemnified Person; provided, that such Borrower shall not be under any
obligation to indemnify the Administrative Agent or any Lender to the extent
that any such liability arises as the result of the gross negligence or willful
misconduct of such Person, as finally judicially determined by a court of
competent jurisdiction. The provisions of this paragraph shall survive the
Release Date and shall continue thereafter in full force and effect.
6.11. Acquisitions, Generally. In connection with any Permitted
Acquisition made by either Borrower or any of their Subsidiaries during the term
of this Agreement, such Borrower shall or shall cause such Subsidiary to provide
the Lenders with draft copies of such acquisition documents no less than 5 days
prior to such closing together with such other documentation as may be
reasonably be requested by the Lenders.
6.12. Subsidiary Designation. The Borrower agrees that each Subsidiary
on the Closing
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Date will remain a Subsidiary until the Obligations have been repaid in full and
the Commitment has been terminated, except as permitted in Article VIII hereof.
6.13. Accounts. The Borrowers shall not, and shall not permit any of their
Subsidiaries, to change or create any new banking account without the prior
written consent of the Lenders.
ARTICLE VII. INFORMATION COVENANTS
So long as any of the Obligations are outstanding and unpaid or the
Commitment or any Letter of Credit is outstanding (whether or not the conditions
to borrowing have been or can be fulfilled), the applicable Borrower shall
furnish or cause to be furnished to each Lender:
7.01. Quarterly Financial Statements and Information. Within the earlier
of 60 days or 5 Business Days after filing its 10-Q after the end of each fiscal
quarter, (a) consolidated and consolidating balance sheets of the Domestic
Borrower and its Subsidiaries, and (b) consolidated balance sheets of the
Borrowers and their Subsidiaries, in each case, as at the end of such quarter,
and the related consolidated and consolidating statements of income and
consolidated statements of changes in cash for such quarter and for the elapsed
portion of the year ended with the last day of such quarter, all of which shall
be certified by an Authorized Officer, to, in his or her opinion, present fairly
in all material respects, in accordance with GAAP, the financial position and
results of operations of the Borrowers and their Subsidiaries, as at the end of
and for such period, and for the elapsed portion of the year ended with the last
day of such period.
7.02. Annual Financial Statements and Information. As soon as available,
but in all cases within 120 days after the end of each fiscal year, a copy of
(i) the consolidated and consolidating balance sheets of the Borrowers and their
Subsidiaries, in each case, as of the end of the current and prior fiscal years
and (ii) consolidated and consolidating statements of earnings, statements of
changes in shareholders' equity, and statements of changes in cash as of and
through the end of such fiscal year for the Borrowers and their Subsidiaries,
all of which are prepared in accordance with GAAP, and certified by independent
certified public accountants acceptable to the Lenders, whose opinion shall be
in scope and substance in accordance with GAAP and shall be unqualified.
7.03. Compliance Certificates. At the time financial statements are
furnished pursuant to Section 7.01, Section 7.02 and Section 7.06 hereof, a duly
completed Compliance Certificate with calculations attached evidencing no
Default or Event of Default, or to the extent that a Default or Event of Default
exists, the steps being taken to cure such Default or Event of Default.
7.04. Copies of Other Reports and Notices.
(a) Promptly upon their becoming available, a copy of (i) all material
reports or letters submitted to either Borrower or any Subsidiary by accountants
in connection with any annual, interim or special audit, including without
limitation any report prepared in connection with the annual audit referred to
in Section 7.02 hereof, and any other comment letter submitted to management in
connection with any such audit, (ii) each financial statement, report, notice or
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proxy statement sent by either Borrower or any Subsidiary to stockholders
generally, (iii) each regular or periodic report and any registration statement
or prospectus (or material written communication in respect of any thereof)
filed by either Borrower or any of their Subsidiaries with any securities
exchange, with the Securities and Exchange Commission or any successor agency,
and (iv) all press releases concerning material financial aspects of the
Borrowers or any of their Subsidiaries.
(b) Promptly upon becoming aware that the holder(s) of any note(s) or
other evidence of indebtedness or other security of either Borrower or any their
Subsidiaries in excess of $1,500,000.00 has given notice or taken any action
with respect to a breach, failure to perform, claimed default or event of
default thereunder;
(c) Promptly upon receipt thereof, information with respect to and copies
of any notices received from the FCC, any applicable PUC or any other federal,
state or local regulatory agencies or any tribunal relating to any order,
ruling, law, information or policy that relates to a breach of or noncompliance
with the Communications Act or any law, rule or regulation of any applicable
PUC, or might result in the payment of money by the either Borrower, any in an
amount of $250,000 or more in the aggregate, or otherwise could reasonably be
expected to cause a Material Adverse Change, or result in the loss or suspension
of any material License or any material contract;
(d) Promptly upon the knowledge of an Authorized Officer of receipt by
either Borrower or any of their Subsidiaries from any governmental agency, or
any government, political subdivision or other similar entity, of any material
notice, correspondence, hearing, proceeding or order regarding or affecting
either Borrower or any such Subsidiary or any of their Properties or businesses
not in the ordinary course of business, a copy of such notice, correspondence,
hearing, proceeding or order; and
(e) From time to time and promptly upon each request, such data,
certificates, reports, statements, documents or further information regarding
the assets, business, liabilities, financial position, projections, results of
operations or business prospects of the Borrowers and their Subsidiaries, as the
Administrative Agent or any Lender may reasonably request.
7.05. Weekly Reporting. The Borrowers shall provide, or cause to be
provided to the Lenders (a) a weekly cash flow summary to be delivered by no
later than the close of business (Pacific time) of the second Business Day
following each Friday describing the cash flow results for the week ending on
such Friday comparing those results to the most recent cash flow projections for
such week and an updated cash flow projection for the period through the
Maturity Date (which may be transmitted by email), (b) on Friday of each week
(unless rescheduled with the written consent of each of the Lenders), a
pre-arranged conference call of which each of the Lenders and their advisors
receive advance notice at which a verbal report summarizing the financial
condition of the Borrowers is presented, including but not limited to the status
of Borrowers' relations with their trade creditors and (c) on Friday of each
week (unless rescheduled with the written consent of each of the Lenders), a
pre-arranged conference call of which each of the Lenders and their advisors
receive advance notice at which a verbal report summarizing the status of Asset
Sales by the Borrowers is presented.
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7.06. Monthly Reporting. The Borrowers shall provide monthly financial
statements to the Administrative Agent within 30 calendar days after the end of
each calendar month calculating each financial covenant contained in Section
8.01, and commencing with the delivery of the April 2000 financial statements
due to be delivered no later than June 9, 2000, certified by an Authorized
Officer, that, in his or her opinion as to the accuracy of its representations
and warranties in the Loan Papers, that no Default or Event of Default has
occurred under the terms of the Credit Agreement or other Loan Papers and that
the information contained in such financial statements is accurate and presents
fairly the operating results for such month, excluding non-recurring items,
quarterly adjustments, disputes and other similar items not reconciled on a
monthly basis.
7.07. Administrative Agent Financial Advisor. The Borrowers shall provide
▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇, or the financial advisor of the Lenders' choice, with full
access to Borrowers' financial information and facilities together with access
to Borrowers' employees and consultants for purposes of gathering financial
information for the benefit of the Lenders.
7.08. Notice of Default and Other Matters. Prompt notice of the following
events after either Borrower has knowledge or notice thereof:
(a) The commencement of all proceedings and investigations by or before
the FCC, any applicable PUC, or any other governmental body, and all other
actions and proceedings in any court or before any arbitrator involving claims
for damages (including punitive damages) in excess of either $1,000,000 for any
one proceeding or investigation, or $5,000,000 in the aggregate for all such
proceedings and investigations (after deducting the amount with respect to the
Borrowers, or any of their Subsidiaries are insured), against or in any other
way relating directly to the Borrowers, any of their Subsidiaries, or any of
their properties, assets or businesses;
(b) Promptly upon the happening of any act, condition or event which
constitutes a Default or Event of Default, a written notice specifying the
nature and period of existence thereof and what action is being taken or is
proposed to be taken with respect thereto; and
(c) Any event which could reasonably be expected to cause a Material
Adverse Change with respect to the business, assets, liabilities, financial
position, results of operations or prospective business of the Borrowers or any
of their Subsidiaries.
7.09. ERISA Reporting Requirements.
(a) Promptly and in any event (i) within 30 days after either Borrower, or
any member of their Controlled Group knows or has reason to know that any ERISA
Event described in clause (a) of the definition of ERISA Event or any event
described in Section 4063(a) of ERISA with respect to any Plan of such Borrower
or any member of its Controlled Group has occurred, and (ii) within 10 days
after such Borrower or any
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member of its Controlled Group knows or has reason to know that any other ERISA
Event with respect to any Plan of such Borrower or any member of its Controlled
Group has occurred or a request for a minimum funding waiver under Section 412
of the Code with respect to any Plan of such Borrower, or any member of its
Controlled Group, a written notice describing such event and describing what
action is being taken or is proposed to be taken with respect thereto, together
with a copy of any notice of event that is given to the PBGC;
(b) Promptly and in any event within two Business Days after receipt
thereof by either Borrower or any member of their Controlled Group from the
PBGC, copies of each notice received by such Borrower or any member of its
Controlled Group of the PBGC's intention to terminate any Plan or to have a
trustee appointed to administer any Plan;
(c) Promptly and in any event within 30 days after the filing thereof by
either Borrower or any member of their Controlled Group with the United States
Department of Labor, the Internal Revenue Service or the PBGC, copies of each
annual and other report (including Schedule B thereto) with respect to each
Plan;
(d) Promptly and in any event within 30 days after receipt thereof, a copy
of any notice, determination letter, ruling or opinion either Borrower or any
member of their Controlled Group receives from the PBGC, the United States
Department of Labor or the Internal Revenue Service with respect to any Plan;
(e) Promptly, and in any event within 10 Business Days after receipt
thereof, a copy of any correspondence either Borrower or any member of their
Controlled Group receives from the Plan Sponsor (as defined by Section
4001(a)(10) of ERISA) of any Plan concerning potential withdrawal liability
pursuant to Section 4219 or 4202 of ERISA, and a statement from the chief
financial officer of such Borrower or such member of its Controlled Group
setting forth details as to the events giving rise to such potential withdrawal
liability and the action which such Borrower or such member of its Controlled
Group is taking or proposes to take with respect thereto;
(f) Notification within 30 days of any material increases in the benefits
of any existing Plan which is not a Multiemployer Plan, or the establishment of
any new Plans, or the commencement of contributions to any Plan to which either
Borrower, or any member of its Controlled Group was not previously contributing;
(g) Notification within three Business Days after the Borrower, or any
member of its Controlled Group knows or has reason to know that either Borrower,
or any such member of their Controlled Group has or intends to file a notice of
intent to terminate any Plan under a distress termination within the meaning of
Section 4041(c) of ERISA and a copy of such notice; and
(h) Promptly after receipt of written notice of commencement thereof,
notice of all actions, suits and proceedings before any court or governmental
department, commission, board, bureau, agency or instrumentality, domestic or
foreign, affecting the Borrower, or any member of its Controlled Group with
respect to any Plan.
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ARTICLE VIII. NEGATIVE COVENANTS
So long as any of the Obligations are outstanding and unpaid or the
Commitment or any Letter of Credit is outstanding (whether or not the conditions
to borrowing have been or can be fulfilled):
8.01. Financial Covenants.
(a) INTENTIONALLY DELETED.
(b) INTENTIONALLY DELETED.
(c) INTENTIONALLY DELETED.
(d) INTENTIONALLY DELETED.
(e) CAPITAL EXPENDITURES. The Borrowers shall not permit
Capital Expenditures to exceed the agreed amounts described below for
such fiscal quarter.
FISCAL QUARTER ENDING AMOUNT
June 30, 2000 $8,000,000
September 30, 2000 $8,000,000
8.02. Debt for Borrowed Money. The Borrowers shall not, and shall not
permit any of their Subsidiaries to, create, assume, incur or otherwise become
or remain obligated in respect of, or permit to be outstanding, or suffer to
exist any Debt for Borrowed Money, except:
(a) with respect to the Borrowers and their Subsidiaries, Debt for
Borrowed Money under the Loan Papers; and
(b) with respect to the Borrowers and their Subsidiaries, Debt for
Borrowed Money set forth on Schedule 8.02.
8.03. Liens. The Borrowers shall not, and shall not permit any of their
Subsidiaries to, create, assume, incur, permit or suffer to exist, directly or
indirectly, any Lien on any of its assets or Properties, whether now owned or
hereafter acquired, except Permitted Liens and IRU swaps in the ordinary course
of business as described in Section 8.16 hereof.
8.04. Investments. The Borrowers shall not, and shall not permit their
Subsidiaries to, make any Investment, except that either Borrower or its
Subsidiaries may purchase or otherwise acquire and own:
(a) Marketable, direct obligations of, or guaranteed by, the United States
of America and maturing within 365 days of the date of purchase;
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(b) Commercial paper issued by U.S. corporations that have a rating of
A-1/P-1 or better by Standard & Poor's Ratings Group, a Division of ▇▇▇▇▇▇-▇▇▇▇,
Inc. or ▇▇▇▇▇'▇ Investors Service, Inc.;
(c) Certificates of deposit of domestic banks maturing within 365 days of
the date of purchase, which banks' debt obligations have one of the two highest
ratings obtainable from Standard & Poor's Ratings Group, a Division of
▇▇▇▇▇▇-▇▇▇▇, Inc. or ▇▇▇▇▇'▇ Investors Service, Inc.;
(d) Securities issued by U.S. corporations that have one of the two
highest ratings obtainable from Standard & Poor's Ratings Group, a Division of
▇▇▇▇▇▇-▇▇▇▇, Inc. or ▇▇▇▇▇'▇ Investors Service, Inc.;
(e) Accounts receivable that arise in the ordinary course of business and
are payable on standard terms;
(f) Investments that are in existence on the Closing Date and described on
Schedules 5.01(a) and 8.04 hereto;
(g) so long as there exists no Default or Event of Default both at the
time of such Investment and immediately after giving effect thereto, Investments
in Subsidiaries after the Closing Date (other than Rustelnet); provided that (i)
Investments as of the Closing Date in Subsidiaries that are not Approved
Subsidiaries shall not exceed $2 million per Subsidiary or $5 million in the
aggregate, (ii) Investments in Subsidiaries after the Closing Date that are not
Approved Subsidiaries shall not exceed $1 million per Subsidiary or $2 million
in the aggregate of all net transfers after the Closing Date between such
non-Approved Subsidiaries and the Domestic Borrower, the Foreign Borrower and
Approved Subsidiaries during the term of this Agreement; provided that to the
extent that the Borrowers have violated this provision as of the Closing Date,
the Borrowers shall have 30 calendar days to cure such violation by making such
Subsidiary an Approved Subsidiary, and (ii) neither of the Borrowers nor any of
their Subsidiaries may create or acquire any Subsidiary pursuant to this Section
8.04(g), without having first given five days prior written notice to the
Administrative Agent in accordance with the terms of Section 11.02 hereof and
meeting each of the Collateral pledge and guaranty requirements set forth in
Section 2.16 hereof; and
(h) Investments in PGE Fiber and PGE Bermuda; provided that the aggregate
of such Investments do not exceed $3,000,000 during the term of this Agreement.
8.05. Liquidation, Disposition or Acquisition of Assets, Merger, New
Subsidiaries. The Borrowers shall not, and shall not permit any of their
Subsidiaries to, at any time:
(a) liquidate or dissolve itself (or suffer any liquidation or
dissolution) or otherwise wind up; or sell, lease, abandon, transfer or
otherwise dispose of all or any part of its assets, Properties or business other
than (i) Permitted Asset Sales, (ii) any sale, transfer, liquidation or
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dissolution of any Subsidiary, provided the assets of that Subsidiary are
transferred either to the Foreign Borrower or an Approved Subsidiary, (iii)
transactions permitted in Section 8.04(g).
(b) acquire any assets, Property or business of any other Person, or
participate in any joint venture, except (i) assets and Property acquired in the
ordinary course of business, and (ii) provided that the Foreign Borrower and
Approved Subsidiaries comply fully with Section 6.11 hereof, and upon the
execution and delivery of the required Loan Papers, Permitted Acquisitions may
be consummated by the Foreign Borrower and Approved Subsidiaries.
8.06. Guaranties; Contingent Liabilities. Other than Debt permitted
pursuant to Section 8.02 hereunder, the Borrowers shall not, and shall not
permit any of their Subsidiaries to, at any time make or issue any Guaranty, or
assume, be obligated with respect to, or permit to be outstanding any Contingent
Liabilities, except pursuant to the Loan Papers, pursuant to the WorldCom
Agreement, and pursuant to the approval of the Lenders, in their sole
discretion.
8.07. Restricted Payments. Neither the Domestic Borrower nor the Foreign
Borrower shall make or pay, and neither the Domestic Borrower nor the Foreign
Borrower shall permit any of their Subsidiaries to make or pay any Restricted
Payment; provided, however
(a) in addition to Investments permitted under Section 8.04(f)
and (g) hereof, any DB Subsidiary, the Foreign Borrower, any FB
Subsidiary and any Foreign DB Subsidiary may make intercompany
Restricted Payments to the Domestic Borrower or any Approved Subsidiary
other than Rustelnet, Pacific Gateway Exchange (Japan) Limited and PGE
Switzerland; provided that no such intercompany Restricted Payment
shall be documented as promissory notes unless such notes are delivered
to the Administrative Agent as collateral; and
(b) so long as there exists no Default or Event of Default
both before and immediately after giving effect to any such Restricted
Payment, the Borrowers may make new loans and advances to employees of
the Borrowers and their Subsidiaries in addition to the amount of such
loans and advances in existence as of the Closing Date and described on
Schedule 8.07 hereto which, in the aggregate over the term of this
Agreement, do not exceed $100,000.
8.08. Affiliate Transactions. The Borrowers shall not, and shall not
permit any of their Subsidiaries to, at any time engage in any transaction with
an Affiliate, nor make an assignment or other transfer of any of its assets or
Properties to any Affiliate, on terms materially less advantageous to such
Borrower or any such Subsidiary than would be the case if such transaction had
been effected with a non-Affiliate, except those transactions described on
Schedule 8.08 hereof.
8.09. Compliance with ERISA. The Borrowers shall not, and shall not permit
any of their Subsidiaries to, directly or indirectly, or permit any member of
its Controlled Group to directly or indirectly, (a) terminate any Plan so as to
result in any material (in the opinion of the Majority Lenders) liability to
either Borrower or any member of its Controlled Group, (b) permit
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to exist any ERISA Event, or any other event or condition which presents the
risk of liability of either Borrower or any member of its Controlled Group, (c)
make a complete or partial withdrawal (within the meaning of Section 4201 of
ERISA) from any Multiemployer Plan so as to result in any liability to either
Borrower or any member of its Controlled Group, (d) enter into any new Plan or
modify any existing Plan so as to increase its obligations thereunder except in
the ordinary course of business consistent with past practice which could result
in any liability to either Borrower, or any member of its Controlled Group, or
(e) permit the present value of all benefit liabilities, as defined in Title IV
of ERISA, under each Plan of either Borrower, or any member of its Controlled
Group (using the actuarial assumptions utilized by the PBGC upon termination of
a plan) to exceed the fair market value of Plan assets allocable to such
benefits all determined as of the most recent valuation date for each such Plan.
8.10. Capital Stock. The Borrowers shall not, and shall not permit any
Subsidiary to (a) make or permit any transfer, assignment, distribution, a
mortgage, charge, pledge or gift of any shares of Capital Stock, and (b) issue
any Capital Stock, except (i) to the Foreign Borrower or a wholly owned direct
or indirect Subsidiary of the Foreign Borrower, 100% of whose Capital Stock has
been pledged as Collateral, that has executed an Unlimited Guaranty of the
Obligations and for whom an opinion of foreign counsel acceptable in form and
substance has been received by Administrative Agent, (ii) for Asset Sales
permitted by Section 8.05(a) hereof and (iii) to employees in connection with
their existing benefit plans or in connection with the hiring of new executive
management.
8.11. Sale and Leaseback. The Borrowers shall not, and shall not permit
any of their Subsidiaries to, enter into any arrangement whereby it sells or
transfers any of its assets, and thereafter rents or leases such assets.
8.12. Sale or Discount of Receivables. The Borrowers shall not, and shall
not permit any of their Subsidiaries to, directly or indirectly sell, with or
without recourse, for discount or otherwise, any notes, contracts, or accounts
receivable except as the Lenders may approve in their sole discretion.
8.13. Limitation on Restrictive Agreements. The Borrowers shall not, and
shall not permit any of their Subsidiaries to, enter into any indenture,
agreement, instrument, financing document or other arrangement which, directly
or indirectly, prohibits or restrains, or has the effect of prohibiting or
restraining, or imposes materially adverse conditions upon the acceptance of a
waiver or consent, or the agreement to an amendment or change, by either of the
Borrowers or their Subsidiaries, with respect to any term or provision of this
Agreement or any other Loan Paper.
8.14. Amendment of Material Agreements. The Borrowers shall not, and shall
not permit any of their Subsidiaries to, amend, waive or consent to any
deviation from any provision of any documentation or agreements (other than in
the ordinary course of business) that would be adverse to the Lenders of (i)
(other than with respect to trade creditors) any material agreement relating to
either Borrower or any such Subsidiary, (ii) in any material respect, articles
of incorporation, by-laws and other organizational documents of either Borrower
or any of their
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Subsidiaries, (iii) the Japan-US Agreement, (iv) the TAT-14 Agreement, (v) the
Domestic Affiliate IRU Agreement, and (vi) the Foreign Affiliate IRU Agreement.
8.15. Name Changes. Neither Borrower shall, or shall permit any of their
Subsidiaries to, change its name or address without notifying Administrative
Agent 30 calendar day prior to such name change.
8.16. Cable Contracts. The Borrowers shall not, and shall not permit any
of their Subsidiaries to ▇▇▇▇▇ ▇ ▇▇▇▇ (other than Permitted Liens) in any
interest in any fiber contract to any party other than the Administrative Agent
for the benefit of the Lenders, other than pursuant to IRU swaps approved by the
Lenders and in the ordinary course of business.
ARTICLE IX. EVENTS OF DEFAULT
9.01. Events of Default. Any one or more of the following shall be an
"Event of Default" hereunder, if the same shall occur for any reason whatsoever,
whether voluntary or involuntary, by operation of Law, or otherwise:
(a) Either Borrower shall fail to pay any (i) principal payable under any
Loan Paper on the date due; or (ii) any interest, fees or other amounts payable
within three business days of the date due;
(b) Any representation or warranty made or deemed made by any Obligor (or
any of its officers or representatives) under or in connection with any Loan
Paper shall prove to have been incorrect or misleading in any material respect
when made or deemed made;
(c) Either Borrower shall fail to perform or observe any term or covenant
contained in Section 7.07 hereof or in Article VIII hereof;
(d) Either Borrower shall have a Material Adverse Change;
(e) The Lenders shall have received less than $42 million in cash proceeds
from the first phase of the MFN Sale by June 5, 2000;
(f) Any Obligor shall fail to perform or observe any other term or
covenant contained in this Agreement or any other Loan Paper, other than those
described in Sections 9.01(a), (b), (c), (d) and (e) above, and such failure
shall not be remedied within thirty days following the earlier of the such
Borrower's knowledge of such failure or notice from any Lender of the occurrence
of such failure; provided, however; that with respect to a failure to perform
any term of the covenants (i) under Section 7.05 hereof, such failure will
become an Event of Default if such failure is not remedied within two Business
Days following the date of receipt of notice of such from the Administrative
Agent or any Lender and (ii) under Section 7.06 hereof, such failure will become
an Event of Default if such failure is not remedied within five Business Days
following the date of receipt of notice of such from the Administrative Agent or
any Lender.
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(g) Any of the following shall occur: (i) Any Loan Paper or material
provision thereof shall, for any reason, not be valid and binding on the Obligor
signatory thereto, or cease to create a valid and perfected first priority Lien
in the Collateral purported to be covered thereby or not be in full force and
effect, or shall be declared to be null and void; provided that if any Guaranty
by a Subsidiary that is not an Approved Subsidiary is invalid for any reason not
known to Borrowers at the time of the execution of such Guaranty, then the
invalidity shall not be an Event of Default if within 45 days such Subsidiary
enters into an agreement guaranteeing the Obligations hereunder the fullest
extent allowed under applicable law; or (ii) the validity or enforceability of
any Loan Paper shall be contested by any Obligor, any Subsidiary or any
Affiliate of either Borrower; or (iii) any Obligor shall deny in writing that it
has any or further liability or obligation under its respective Loan Papers; or
(iv) any default or breach under any provision of any Loan Papers shall continue
after the applicable grace period, if any, specified in such Loan Paper;
(h) Any of the following shall occur: (i) either Borrower or any of their
Subsidiaries (other than Rustelnet or PGE Switzerland) shall make an assignment
for the benefit of creditors or be unable to pay its debts generally as they
become due; (ii) either Borrower or any of their Subsidiaries shall petition or
apply to any Tribunal for the appointment of a trustee, receiver, or liquidator
of it, or of any substantial part of its assets, or shall commence any
proceedings relating to such Borrower or any of its Subsidiaries (other than
Rustelnet or PGE Switzerland) or any Debtor Relief Laws; (iii) any such petition
or application shall be filed, or any such proceedings shall be commenced,
against either Borrower or any of their Subsidiaries (other than Rustelnet or
PGE Switzerland), or an order, judgment or decree shall be entered appointing
any such trustee, receiver, or liquidator, or approving the petition in any such
proceedings, and such petition or application shall be consented to or
uncontested by either Borrower or such Subsidiary, or if contested by either
Borrower or such Subsidiary, shall not be dismissed within 60 days following the
filing of such petition or application; (iv) any final order, judgment, or
decree shall be entered in any proceedings against either Borrower or any of
their Subsidiaries (other than Rustelnet or PGE Switzerland) decreeing its
dissolution; or (v) any final order, judgment, or decree shall be entered in any
proceedings against either Borrower or any of their Subsidiaries (other than
Rustelnet or PGE Switzerland) decreeing its split-up which requires the
divestiture of a substantial part of its assets;
(i) Any Obligor shall have any final judgment(s) outstanding against it,
and such judgment(s) shall remain unstayed, in effect, and unpaid for the period
of time after which the judgment holder may cause the creation of Liens against
or seizure of any of its Property;
(j) Any of the following shall have occurred: (i) Any ERISA Event shall
have occurred with respect to a Plan of either Borrower or any Subsidiary of
either Borrower, and the sum of the Insufficiency of such Plan and liabilities
relating thereto is equal to or greater than $1,000,000 or (ii) either Borrower
or any of their Subsidiaries or any ERISA Affiliate of any of them shall have
committed a failure described in Section 302(f)(l) of ERISA, and the amount
determined under Section 302(f)(3) of ERISA is equal to or greater than
$1,000,000;
(k) Either Borrower, or any ERISA Affiliate of either Borrower shall have
been notified by the sponsor of a Multiemployer Plan that (A) it has incurred
Withdrawal Liability to such Plan
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in an amount that exceeds $1,000,000 or requires payments exceeding $1,000,000
per annum, or (B) such Plan is in reorganization or is being terminated, within
the meaning of Title IV of ERISA, if as a result thereof the aggregate annual
contributions to all Multiemployer Plans in reorganization or being terminated
is increased over the amounts contributed to such Plans for the preceding Plan
year by an amount exceeding $1,000,000;
(l) Any of the following shall have occurred: (i) A final non-appealable
order is issued by any Tribunal, including, but not limited to, the FCC, any
applicable PUC, or the United States Justice Department, requiring any Obligor
to divest a substantial portion of its assets pursuant to any antitrust,
restraint of trade, unfair competition, industry regulation, or similar Laws, or
(ii) any Tribunal shall condemn, seize, or otherwise appropriate, or take
custody or control of all or any portion of the assets with a book value of more
than $1,000,000 of either Borrower or any of their Subsidiaries;
(m) Any of the following shall have occurred if the effect thereof could
be reasonably expected to cause a Material Adverse Change: (i) Any License
whether presently existing or hereafter granted to or obtained by either
Borrower or any of their Subsidiaries shall expire without renewal or be
suspended or revoked, or (ii) either Borrower or any of their Subsidiaries shall
become subject to any injunction or other order affecting or which may affect
such Borrower's or any of its Subsidiary's present or proposed operations under
any such License;
(n) Any civil action, suit or proceeding shall be commenced against either
Borrower, any of their Subsidiaries under any federal or state racketeering
statute (including, without limitation, the Racketeer Influenced and Corrupt
Organization Act of 1970)("RICO") and such suit shall be adversely determined by
a court of applicable jurisdiction, and which is either non-appealable or which
either Borrower or such Subsidiary has elected not to appeal; or any criminal
action or proceeding shall be commenced against either Borrower, or any of their
Subsidiaries under any federal or state racketeering statute (including, without
limitation, RICO);
(o) There shall occur a Change of Control;
(p) Any Litigation commenced against either Borrower or any of their
Subsidiaries and is adversely determined by a court of applicable jurisdiction,
which such Litigation is either non- appealable or which such Obligor has
elected not to appeal, and in either case, is reasonably expected to cause a
Material Adverse Change;
(q) Either Borrower or any of their Subsidiaries shall fail to comply in
any respect with the Communications Act, or any rule or regulation promulgated
by the FCC or any applicable PUC, and such failure could reasonably be expected
to cause a Material Adverse Change; or any License or authorization constituting
authorizations, permits or licenses of either Borrower or any of their
Subsidiaries material to the operation of the business of such Borrower and any
of its Subsidiaries, has expired or shall expire without having been renewed or
shall be canceled or impaired, and such expiration, cancellation or impairment
could reasonably be expected to cause a Material Adverse Change;
(r) Either Borrower or any of their operating Subsidiaries shall fail to
operate its
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business for any period of time which, in the aggregate, could reasonably be
expected to cause a Material Adverse Change;
(s) Any of the following shall have occurred:
(i) Less than 66% of the Capital Stock of the Foreign Borrower shall
be subject to a first priority perfected pledge or Lien in favor of the
Administrative Agent to secure the Domestic Revolver Loan Obligations; or
(ii) Less than 100% of the Capital Stock of the Foreign Borrower
shall be subject to a first priority perfected pledge or Lien in favor of
the Administrative Agent to secure the Foreign Revolver Loan Obligations;
or
(t) For any reason, the loss of the chief executive officer or the current
temporary chief financial officer of the Domestic Borrower, if a permanent or
replacement acceptable to Majority Lenders is not found within 15 calendar days
for the current temporary chief financial officer or the chief executive
officer.
9.02. Remedies upon Default. If an Event of Default described in Section
9.01(h) shall occur, the aggregate unpaid principal balance of and accrued
interest on all Advances shall, to the extent permitted by applicable Law,
thereupon become due and payable concurrently therewith, without any action by
Administrative Agent or any Lender, and without diligence, presentment, demand,
protest, notice of protest or intent to accelerate, or notice of any other kind,
all of which are hereby expressly waived. Subject to the foregoing sentence, if
any Event of Default shall occur and be continuing, Administrative Agent may at
its election, or shall at the direction of the Majority Lenders, do any one or
more of the following:
(a) Declare the entire unpaid balance of all Obligations immediately due
and payable, whereupon it shall be due and payable without diligence,
presentment, demand, protest, notice of protest or intent to accelerate, or
notice of any other kind (except notices specifically provided for under Section
9.01 hereof), all of which are hereby expressly waived (except to the extent
waiver of the foregoing is not permitted by applicable Law);
(b) Terminate the Commitments;
(c) Reduce any claim of Administrative Agent and Lenders to judgment;
(d) Demand (and the Borrowers shall pay to Administrative Agent)
immediately upon demand and in immediately available funds, the amount equal to
the aggregate amount of the Letters of Credit then outstanding, irrespective of
whether such Letters of Credit have been drawn upon, all as set forth and in
accordance with the terms of provisions of Article III hereof, including the
proviso of Section 3.03(b). The Administrative Agent shall promptly advise the
Borrowers of any such declaration or demand but failure to do so shall not
impair the effect of such declaration or demand; and
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(e) Exercise any Rights afforded under any Loan Papers, by Law, including
but not limited to the UCC, at equity, or otherwise.
9.03. Cumulative Rights. All Rights available to Administrative Agent and
Lenders under the Loan Papers shall be cumulative of and in addition to all
other Rights granted thereto at Law or in equity, whether or not amounts owing
thereunder shall be due and payable, and whether or not Administrative Agent or
any Lender shall have instituted any suit for collection or other action in
connection with the Loan Papers.
9.04. Waivers. The acceptance by Administrative Agent or any Lender at any
time and from time to time of partial payment of any amount owing under any Loan
Papers shall not be deemed to be a waiver of any Default or Event of Default
then existing. No waiver by Administrative Agent or any Lender of any Default or
Event of Default shall be deemed to be a waiver of any Default or Event of
Default other than such Default or Event of Default. No delay or omission by
Administrative Agent or any Lender in exercising any Right under the Loan Papers
shall impair such Right or be construed as a waiver thereof or an acquiescence
therein, nor shall any single or partial exercise of any such Right preclude
other or further exercise thereof, or the exercise of any other Right under the
Loan Papers or otherwise.
9.05. Performance by Administrative Agent or any Lender. Should any
covenant of any Obligor fail to be performed in accordance with the terms of the
Loan Papers, Administrative Agent may, at its option, perform or attempt to
perform such covenant on behalf of such Obligor. Notwithstanding the foregoing,
it is expressly understood that neither Administrative Agent nor any Lender
assumes, and shall not ever have, except by express written consent of
Administrative Agent or such Lender, any liability or responsibility for the
performance of any duties or covenants of any Obligor.
9.06. Expenditures. The Borrowers shall reimburse Administrative Agent and
each Lender for any reasonable sums spent by it in connection with the exercise
of any Right under Section 9.05 hereof. Such sums shall bear interest at the
lesser of (a) the Base Rate (whether or not in effect), plus 2.00% per annum and
(b) the Highest Lawful Rate, from five days after the date any Lender makes
demand to the Borrower for reimbursement of such amount until the date of
repayment by the Borrowers.
9.07. Control. None of the covenants or other provisions contained in this
Agreement shall, or shall be deemed to, give Administrative Agent or any Lender
any Rights to exercise control over the affairs and/or management of any
Obligor, the power of Administrative Agent and each Lender being limited to the
Rights to exercise the remedies provided in this Article; provided, however,
that if Administrative Agent or any Lender becomes the owner of any partnership,
stock or other equity interest in any Person, whether through foreclosure or
otherwise, it shall be entitled to exercise such legal Rights as it may have by
being an owner of such stock or other equity interest in such Person.
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ARTICLE X. THE ADMINISTRATIVE AGENT
10.01. Authorization and Action. Each Lender hereby appoints and
authorizes Administrative Agent to take such action as Administrative Agent on
its behalf and to exercise such powers under this Agreement and the other Loan
Papers as are delegated to the Administrative Agent by the terms of the Loan
Papers, together with such powers as are reasonably incidental thereto. As to
any matters not expressly provided for by this Agreement and the other Loan
Papers (including without limitation enforcement or collection of the Notes),
Administrative Agent shall not be required to exercise any discretion or take
any action, but shall be required to act or to refrain from acting (and shall be
fully protected in so acting or refraining from acting) upon the instructions of
Majority Lenders (or all Lenders, if required under Section 11.01 hereof), and
such instructions shall be binding upon all Lenders; provided, however, that
Administrative Agent shall not be required to take any action which exposes
Administrative Agent to personal liability or which is contrary to any Loan
Papers or applicable Law. Administrative Agent agrees to give to each Lender
notice of each notice given to it by the Borrower pursuant to the terms of this
Agreement, and to distribute to each applicable Lender in like funds all amounts
delivered to Administrative Agent by the Borrowers for the individual account of
any Lender pro rata in accordance with the Applicable Specified Percentage, as
set forth in this Agreement. Functions of the Administrative Agent are
administerial in nature and in no event shall the Administrative Agent have a
fiduciary or trustee relationship in respect of any Lender by reason of this
Agreement or any other Loan Paper.
10.02. Administrative Agent's Reliance, Etc. Neither Administrative Agent,
nor any of its directors, officers, agents, employees, or representatives shall
be liable for any action taken or omitted to be taken by it or them under or in
connection with this Agreement or any other Loan Paper, except for its or their
own gross negligence or willful misconduct. Without limitation of the generality
of the foregoing, Administrative Agent (a) may treat the payee of any Note as
the holder thereof until Administrative Agent receives written notice of the
assignment or transfer thereof signed by such payee and in form satisfactory to
Administrative Agent; (b) may consult with legal counsel (including counsel for
the Borrowers or any of their Subsidiaries), independent public accountants, and
other experts selected by it, and shall not be liable for any action taken or
omitted to be taken in good faith by it in accordance with the advice of such
counsel, accountants, or experts; (c) makes no warranty or representation to any
Lender and shall not be responsible to any Lender for any statements,
warranties, or representations made in or in connection with this Agreement or
any other Loan Papers; (d) shall not have any duty to ascertain or to inquire as
to the performance or observance of any of the terms, covenants, or conditions
of this Agreement or any other Loan Papers on the part of the Borrowers and
their Subsidiaries or to inspect the Property (including the books and records)
of the Borrowers or their Subsidiaries; (e) shall not be responsible to any
Lender for the due execution, legality, validity, enforceability, genuineness,
sufficiency, or value of this Agreement, any other Loan Papers, or any other
instrument or document furnished pursuant hereto; and (f) shall incur no
liability under or in respect of this Agreement or any other Loan Papers by
acting upon any notice, consent, certificate, or other instrument or writing
believed by it to be genuine and signed or sent by the proper party or parties.
10.03. Bank of America, N.A. and Affiliates. With respect to its Domestic
Revolver Commitment, its Foreign Revolver Commitment, its Advances, and any Loan
Papers, Bank of America, N.A. has the same Rights under this Agreement as any
other Lender and may exercise
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the same as though it were not Administrative Agent. Bank of America, N.A. and
its Affiliates may accept deposits from, lend money to, act as trustee under
indentures of, and generally engage in any kind of business with, any Obligor,
any Affiliate thereof, and any Person who may do business therewith, all as if
Bank of America, N.A. were not Administrative Agent and without any duty to
account therefor to any Lender.
10.04. Lender Credit Decision. Each Lender acknowledges that it has,
independently and without reliance upon Administrative Agent or any other
Lender, and based on the financial statements referred to in Section 5.01(j),
Section 7.01 and Section 7.02 hereof and such other documents and information as
it has deemed appropriate, made its own credit analysis and decision to enter
into this Agreement. Each Lender also acknowledges that it will, independently
and without reliance upon Administrative Agent or any other Lender and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
this Agreement and the other Loan Papers.
10.05. Indemnification by Lenders. Lenders shall indemnify Administrative
Agent, pro rata in accordance with each Lender's Total Specified Percentage,
from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses, or disbursements of any
kind or nature whatsoever which may be imposed on, incurred by, or asserted
against Administrative Agent in any way relating to or arising out of any Loan
Papers or any action taken or omitted by Administrative Agent thereunder,
including any negligence of Administrative Agent; provided, however, that no
Lender shall be liable for any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses, or disbursements
resulting from Administrative Agent's gross negligence or willful misconduct.
Without limitation of the foregoing, Lenders shall reimburse Administrative
Agent, pro rata in accordance with each Lender's Total Specified Percentage,
promptly upon demand for any out-of-pocket expenses (including reasonable
attorneys' fees) incurred by Administrative Agent in connection with the
preparation, execution, delivery, administration, modification, amendment, or
enforcement (whether through negotiation, legal proceedings or otherwise) of, or
legal and other advice in respect of rights or responsibilities under, the Loan
Papers. The indemnity provided in this Section 10.05 shall survive the
termination of this Agreement.
10.06. Successor Administrative Agent. Administrative Agent may resign at
any time by giving written notice thereof to Lenders and the Borrower, and may
be removed at any time with or without cause by the action of all Lenders (other
than Administrative Agent, if it is a Lender). Upon any such resignation or
removal, Majority Lenders shall have the right to appoint a successor
Administrative Agent with the prior written consent of the Borrowers (which
shall not be unreasonably withheld), provided that, if there exists an Event of
Default that is continuing, no consent of the Borrowers shall be required. If no
successor Administrative Agent shall have been so appointed and shall have
accepted such appointment within thirty days after the retiring Administrative
Agent's giving of notice of resignation, then the retiring Administrative Agent
may, on behalf of Lenders, appoint a successor Administrative Agent, which shall
be a commercial bank organized under the Laws of the United States of America or
of any State thereof and having a combined capital and surplus of at least
$50,000,000. Upon the acceptance of any appointment as Administrative Agent
hereunder by a successor Administrative Agent, such successor
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Administrative Agent shall thereupon succeed to and become vested with all the
Rights and duties of the retiring Administrative Agent, and the retiring
Administrative Agent shall be discharged from its duties and obligations under
the Loan Papers, provided that if the retiring or removed Administrative Agent
is unable to appoint a successor Administrative Agent, Administrative Agent
shall, after the expiration of a sixty day period from the date of notice, be
relieved of all obligations as Administrative Agent hereunder and the Lenders
shall act as the Administrative Agent. Notwithstanding any Administrative
Agent's resignation or removal hereunder, the provisions of this Article shall
continue to inure to its benefit as to any actions taken or omitted to be taken
by it while it was Administrative Agent under this Agreement.
ARTICLE XI. MISCELLANEOUS
11.01. Amendments and Waivers. No amendment or waiver of any provision of
this Agreement or any other Loan Papers, nor consent to any departure by the
Borrower or any Obligor therefrom, shall be effective unless the same shall be
in writing and signed by the Borrower and the Administrative Agent with the
consent of the Majority Lenders, and then any such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given; provided, however, that no amendment, waiver, or consent shall (and the
result of action or failure to take action shall not) unless in writing and
signed by all of Lenders and Administrative Agent, (a) increase the Domestic
Revolver Commitment, (b) increase the Foreign Revolver Commitment (c) reduce any
principal, interest, fees, or other amounts payable hereunder, or waive or
result in the waiver of any Event of Default under Section 9.01(a) hereof, (d)
postpone any date fixed for any payment of principal, interest, fees, or other
amounts payable hereunder, (e) release or impair any collateral or guaranties
securing any Obligor's obligations hereunder, other than releases contemplated
hereby and by the other Loan Papers, (e) change the meaning of "Total Specified
Percentage", "Domestic Revolver Specified Percentage", "Foreign Revolver
Specified Percentage" or the number of Lenders required to take any action
hereunder, increase the amount of the "Commitment", "Domestic Revolver
Commitment", "Foreign Revolver Commitment", or "Letter of Credit Commitment",
extend the "Maturity Date", change the definition of "Majority Lenders", or (f)
amend this Section 11.01. No amendment, waiver, or consent shall affect the
Rights or duties of Administrative Agent under any Loan Papers, unless it is in
writing and signed by Administrative Agent in addition to the requisite number
of Lenders.
11.02. Notices.
(a) Manner of Delivery. All notices, communications and other materials to
be given or delivered under the Loan Papers shall, except in those cases where
giving notice by telephone is expressly permitted, be given or delivered in
writing. All written notices, communications and materials shall be sent by
registered or certified mail, postage prepaid, return receipt requested, by
telecopier, or delivered by hand. In the event of a discrepancy between any
telephonic notice and any written confirmation thereof, such written
confirmation shall be deemed the effective notice except to the extent
Administrative Agent, any Lender or the Borrower has acted in reliance on such
telephonic notice.
(b) Addresses. All notices, communications and materials to be given or
delivered pursuant to this Agreement shall be given or delivered at the
following respective addresses and
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telecopier and telephone numbers and to the attention of the following
individuals or departments:
(i) If to the Borrowers or any or their Subsidiaries.:
PACIFIC GATEWAY EXCHANGE, INC.
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇., ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Telephone No.: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier No.: (▇▇▇) ▇▇▇-▇▇▇▇
Attention: Chief Financial Officer
With copies to (which is not required for effective delivery
as set forth above):
▇▇▇▇▇, ▇▇▇▇▇ & ▇▇▇▇▇
▇▇▇ ▇▇▇▇▇ ▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Telephone No.: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile No.: (▇▇▇) ▇▇▇-▇▇▇▇
Attention: J. ▇▇▇▇▇▇ ▇▇▇▇▇▇, Esq.
With copies to (which is not required for effective delivery
as set forth above):
KLEE, TUCHIN, ▇▇▇▇▇▇▇▇▇ & ▇▇▇▇▇ LLP
▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇ ▇▇▇
▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Telephone No.: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile No.: (▇▇▇) ▇▇▇-▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, Esq.
(ii) If to Administrative Agent:
BANK OF AMERICA, N.A.
▇▇▇ ▇. ▇▇▇▇▇▇ ▇▇▇▇▇▇
Mail Code CA9-706-11-21
▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Telephone No.: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier No.: (▇▇▇) ▇▇▇-▇▇▇▇
Attention: ▇▇. ▇▇▇▇▇▇ ▇▇▇▇▇▇
With a copy to (which is not required for effective delivery
as set forth above):
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▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ & ▇▇▇▇▇▇▇, P.C.
3400 Renaissance Tower
▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
Telephone No.: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier No.: (▇▇▇) ▇▇▇-▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇
and
O'MELVENY & ▇▇▇▇▇ LLP
▇▇▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Telephone No.: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier No.: (▇▇▇) ▇▇▇-▇▇▇▇
Attention: ▇▇▇ ▇. ▇▇▇▇▇
(iii) If to any Lender, to its address shown opposite its signature block
on the signature pages hereto, or on any Assignment and Acceptance, or in any
other notice to the Borrowers and the Administrative Agent,
or at such other address or, telecopier or telephone number or to the attention
of such other individual or department as the party to which such information
pertains may hereafter specify for the purpose in a notice to the other
specifically captioned "Notice of Change of Address".
(c) Effectiveness. Each notice, communication and any material to be given
or delivered to any party pursuant to this Agreement shall be effective or
deemed delivered or furnished (i) if sent by mail, on the fifth day after such
notice, communication or material is deposited in the mail, addressed as above
provided, (ii) if sent by telecopier, when such notice, communication or
material is transmitted to the appropriate number, (iii) if sent by hand
delivery or overnight courier, when left at the address of the addressee
addressed as above provided, and (iv) if given by telephone, when communicated
to the individual or any member of the department specified as the individual or
department to whose attention notices, communications and materials are to be
given or delivered except that notices of a change of address, telecopier or
telephone number or individual or department to whose attention notices,
communications and materials are to be given or delivered shall not be effective
until received; provided, however, that notices to Administrative Agent pursuant
to Article II shall be effective when received. The Borrowers agree that
Administrative Agent shall have no duty or obligation to verify or otherwise
confirm telephonic notices given pursuant to Article II, and agrees to indemnify
and hold harmless Administrative Agent and Lenders for any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, claims,
costs, and expenses resulting, directly or indirectly, from acting upon any such
notice.
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11.03. Parties in Interest. All covenants and agreements contained in this
Agreement and all other Loan Papers shall bind and inure to the benefit of the
respective successors and assigns of the parties hereto. Each Lender may from
time to time assign or transfer its interests hereunder pursuant to Section
11.04 hereof. Neither Borrower may assign or transfer its Rights or obligations
hereunder without the prior written consent of Administrative Agent.
11.04. Assignments and Participations.
(a) Each Lender (an "Assignor") may assign its Rights and obligations as a
Lender under the Loan Papers to one or more transferees pursuant to an
Assignment and Acceptance, so long as (i) each assignment shall be pro rata with
respect to the Assignor's Applicable Specified Percentage of a constant, and not
a varying percentage of all Rights and obligations thereunder, (ii) each
Assignor shall obtain in each case the prior written consent of Administrative
Agent and the Borrowers, in each case such consent of the Borrowers not to be
unreasonably withheld or delayed, provided that, in the event there exists an
Event of Default that is continuing, no consent of the Borrowers shall be
required to make an assignment, (iii) each Assignor shall in each case pay a
$3,500 processing fee to Administrative Agent and (iv) no such assignment is for
an amount less than $5,000,000 and in increments of $1,000,000 (and, if such
assignment is a partial assignment, no Lender shall hold less than $5,000,000
immediately after giving effect to any assignment). Assignments and other
transfers (except participations) with respect to each Lender's participation in
a given Letter of Credit may only be made with the prior written consent of the
Administrative Agent. Within five Business Days after Administrative Agent
receives notice of any such assignment, the Borrowers shall execute and deliver
to Administrative Agent, in exchange for the Notes issued to Assignor, new Notes
to the order of such Assignor and its assignee in amounts equal to their
respective Applicable Specified Percentages of the Commitments. Such new Notes
shall be dated the effective date of the assignment. It is specifically
acknowledged and agreed that on and after the effective date of each assignment,
the assignee shall be a party hereto and shall have the Rights and obligations
of a Lender under the Loan Papers.
(b) Each Lender may sell participations to one or more Persons in all or
any of its Rights and obligations under the Loan Papers; provided, however, that
(i) such Lender's obligations under the Loan Papers shall remain unchanged, (ii)
such Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations, (iii) such Lender shall remain the holder of
its Notes for all purposes of the Loan Papers, (iv) the participant shall be
granted the Right to vote on or consent to only those matters described in
Sections 11.01(a), (b), (c) and (d) hereof, (v) Obligors, the Administrative
Agent, and other Lenders shall continue to deal solely and directly with such
Lender in connection with their respective Rights and obligations under the Loan
Papers and (vi) no such participation is for an amount less than $5,000,000.
(c) Any Lender may, in connection with any assignment or participation, or
proposed assignment or participation, disclose to the assignee or participant,
or proposed assignee or participant, any information relating to the Borrowers
and their Subsidiaries furnished to such Lender by or on behalf of the Borrowers
and their Subsidiaries.
(d) Notwithstanding any other provision set forth in this Agreement,
(i) any Lender
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may at any time create a security interest in all or any portion of its Rights
under this Agreement (including, without limitation, the Advances owing to it
and the Notes held by it) in favor of any Federal Reserve Bank in accordance
with Regulation A of the Board of Governors of the Federal Reserve System, (ii)
no participant of any Lender may further assign or participate any of its
interest in the Loan Papers to any Person (except as may be required by Law or a
Tribunal having authority over such participant), and (iii) no Lender (other
than Bank of America, N.A.) may assign any of its interest in the Loan Papers to
any Person (except as may be required by Law or a Tribunal having authority over
Bank of America, N.A.).
11.05. Sharing of Payments. If, after and during the continuance of any
Event of Default, any Lender shall obtain any payment (whether voluntary,
involuntary, through the exercise of any Right of set-off, or otherwise) on
account of its Advances in excess of its pro rata share of payments made by the
Borrowers in accordance with such Lender's Total Specified Percentage, such
Lender shall forthwith purchase participations in Advances made by the other
Lenders as shall be necessary to share the excess payment pro rata in accordance
with each Lender's Total Specified Percentage with each of them; provided,
however, that if any of such excess payment is thereafter recovered from the
purchasing Lender, its purchase from each Lender shall be rescinded and each
Lender shall repay the purchase price to the extent of such recovery together
with a pro rata share of any interest or other amount paid or payable by the
purchasing Lender in respect of the total amount so recovered. The Borrower
agrees that any Lender so purchasing a participation from another Lender
pursuant to this Section 11.05 may, to the fullest extent permitted by Law,
exercise all its Rights of payment (including the Right of set-off) with respect
to such participation as fully as if such Lender were the direct creditor of the
Borrowers in the amount of such participation.
11.06. Right of Set-off. Upon the occurrence and during the continuance of
any Event of Default, each Lender is hereby authorized (after prior written
notice to the Administrative Agent) 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 Borrowers or any of their Subsidiaries against any and all of the
obligations of the Borrowers now or hereafter existing under this Agreement and
the other Loan Papers, whether or not Administrative Agent or any Lender shall
have made any demand under this Agreement or the other Loan Papers, and even if
such obligations are unmatured. Each Lender shall promptly notify the Borrowers
after any such set-off and application, provided that the failure to give such
notice shall not affect the validity of such set-off and application. The Rights
of each Lender under this Section 11.06 are in addition to other Rights
(including, without limitation, other Rights of set-off) which such Lender may
have.
11.07. Costs, Expenses, and Taxes.
(a) Notwithstanding anything to the contrary in the Loan Papers, the
Borrowers agrees to pay on demand (i) all costs and expenses of Administrative
Agent in connection with the preparation and negotiation of all Loan Papers,
including without limitation the reasonable fees and out-of-pocket expenses of
Special Counsel, FCC counsel, PUC counsel and local counsel, as appropriate,
(ii) all costs and expenses (including reasonable advisors' and attorneys' fees
and
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expenses) of Administrative Agent in connection with the administration, any
interpretation, grant and perfection of any Lien, modification, amendment,
waiver, release of any Loan Papers, restructuring or work-out such that the
retainers established pursuant to Section 4.01(m) are maintained at the levels
established therein, (iii) all of the out-of-pocket expenses of each of the
Lenders in connection with the modification, amendment, waiver, release of any
Loan Papers, restructuring or work-out, and (iv) all costs and expenses
(including reasonable attorneys' fees and expenses) of Administrative Agent and
each Lender in connection with any collection of any portion of the Obligations
or the enforcement of any Loan Papers during the continuance of an Event of
Default. Any portion of a retainer established pursuant to Section 4.01(m) and
this Section 11.07(c) remaining unspent upon satisfaction of all Obligations
shall be promptly returned to Borrowers.
(b) In addition, notwithstanding anything to the contrary in the Loan
Papers, the Borrowers shall pay any and all stamp, debt, and other Taxes payable
or determined to be payable in connection with any payment hereunder (other than
Taxes on the overall net income of Administrative Agent or any Lender or
franchise Taxes or Taxes on capital or capital receipts of Administrative Agent
or any Lender), or the execution, delivery, or recordation of any Loan Papers,
and agrees to save Administrative Agent and each Lender harmless from and
against any and all liabilities with respect to, or resulting from any delay in
paying or omission to pay any Taxes in accordance with this Section 11.07,
including any penalty, interest, and expenses relating thereto. All payments by
the Borrowers or their Subsidiaries under any Loan Papers shall be made free and
clear of and without deduction for any present or future Taxes (other than Taxes
on the overall net income of Administrative Agent or any Lender of any nature
now or hereafter existing, levied, or withheld, or franchise Taxes or Taxes on
capital or capital receipts of Administrative Agent or any Lender), including
all interest, penalties, or similar liabilities relating thereto. If the
Borrowers shall be required by Law to deduct or to withhold any Taxes from or in
respect of any amount payable hereunder (i) the amount so payable shall be
increased to the extent necessary so that, after making all required deductions
and withholdings (including Taxes on amounts payable to Administrative Agent or
any Lender pursuant to this sentence), Administrative Agent or any Lender
receives an amount equal to the sum it would have received had no such
deductions or withholdings been made, (ii) the Borrowers shall make such
deductions or withholdings, and (iii) the Borrowers shall pay the full amount
deducted or withheld to the relevant taxing authority in accordance with
applicable Law. Without prejudice to the survival of any other agreement of the
Borrowers hereunder, the agreements and obligations of the Borrowers contained
in this Section 11.07 shall survive the execution of this Agreement, termination
of the Commitment, repayment of the Obligations, satisfaction of each agreement
securing or assuring the Obligations and termination of this Agreement and each
other Loan Paper.
11.08. Rate Provision. It is not the intention of any party to any Loan
Papers to make an agreement violative of the Laws of any applicable jurisdiction
relating to usury. In no event shall any Obligor or any other Person be
obligated to pay any amount in excess of the Maximum Amount. If Administrative
Agent or any Lender ever receives, collects or applies, as interest, any such
excess, such amount which would be excessive interest shall be deemed a partial
repayment of principal and treated hereunder as such; and if principal is paid
in full, any remaining excess shall be paid to the Borrowers or the other Person
entitled thereto. In determining whether or not the interest paid or
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payable, under any specific contingency, exceeds the Maximum Amount, each
Obligor, Administrative Agent and each Lender shall, to the maximum extent
permitted under Applicable Laws, (a) characterize any nonprincipal payment as an
expense, fee or premium rather than as interest, (b) exclude voluntary
prepayments and the effect thereof, and (c) amortize, prorate, allocate and
spread in equal parts, the total amount of interest throughout the entire
contemplated term of the Obligations so that the interest rate is uniform
throughout the entire term of the Obligations; provided that if the Obligations
are paid and performed in full prior to the end of the full contemplated term
thereof, and if the interest received for the actual period of existence thereof
exceeds the Maximum Amount, Administrative Agent or Lenders, as appropriate,
shall refund to the Borrowers the amount of such excess or credit the amount of
such excess against the total principal amount owing, and, in such event,
neither Administrative Agent nor any Lender shall be subject to any penalties
provided by any Laws for contracting for, charging or receiving interest in
excess of the Maximum Amount. This Section 11.08 shall control every other
provision of all agreements among the parties to the Loan Papers pertaining to
the transactions contemplated by or contained in the Loan Papers.
11.09. Severability. If any provision of any Loan Papers is held to be
illegal, invalid, or unenforceable under present or future Laws during the term
thereof, such provision shall be fully severable, the appropriate Loan Paper
shall be construed and enforced as if such illegal, invalid, or unenforceable
provision had never comprised a part thereof, and the remaining provisions
thereof shall remain in full force and effect and shall not be affected by the
illegal, invalid, or unenforceable provision or by its severance therefrom.
Furthermore, in lieu of such illegal, invalid, or unenforceable provision there
shall be added automatically as a part of such Loan Paper a legal, valid, and
enforceable provision as similar in terms to the illegal, invalid, or
unenforceable provision as may be possible.
11.10. Exceptions to Covenants. No Obligor shall be deemed to be permitted
to take any action or to fail to take any action that is permitted as an
exception to any covenant in any Loan Papers, or that is within the permissible
limits of any covenant, if such action or omission would result in a violation
of any other covenant in any Loan Papers.
11.11. Waivers. The Administrative Agent and the Lenders agree, on a one
time only basis, to waive any Defaults and Events of Default in existence on the
Closing Date.
11.12. Counterparts. This Agreement and the other Loan Papers may be
executed in any number of counterparts, all of which taken together shall
constitute one and the same instrument. In making proof of any such agreement,
it shall not be necessary to produce or account for any counterpart other than
one signed by the party against which enforcement is sought.
11.13. GOVERNING LAW; WAIVER OF JURY TRIAL.
(A) THIS AGREEMENT AND ALL OTHER LOAN PAPERS (EXCEPT AS SUCH LOAN PAPERS
SPECIFY APPLICATION OF THE LAWS OF ANOTHER JURISDICTION) SHALL BE DEEMED TO BE
CONTRACTS MADE IN NEW YORK, NEW YORK, AND SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE
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WITH THE LAWS OF THE STATE OF NEW YORK (EXCEPT TO THE EXTENT THE ADMINISTRATIVE
AGENT AND THE LENDERS HAVE GREATER RIGHTS OR REMEDIES UNDER FEDERAL LAW, WHETHER
AS NATIONAL BANKS OR OTHERWISE, IN WHICH CASE SUCH CHOICE OF NEW YORK LAW SHALL
NOT BE DEEMED TO DEPRIVE ADMINISTRATIVE AGENT AND LENDERS OF ANY SUCH RIGHTS AND
REMEDIES AS MAY BE AVAILABLE UNDER FEDERAL LAW) AND THE UNITED STATES OF
AMERICA. WITHOUT EXCLUDING ANY OTHER JURISDICTION, THE BORROWER AGREES THAT THE
FEDERAL COURTS OF NEW YORK LOCATED IN NEW YORK CITY, NEW YORK WILL HAVE
JURISDICTION OVER PROCEEDINGS IN CONNECTION HEREWITH. TO THE MAXIMUM EXTENT
PERMITTED BY LAW, THE BORROWERS EACH HEREBY WAIVE ANY RIGHT THAT IT MAY HAVE TO
A TRIAL BY JURY OF ANY DISPUTE (WHETHER A CLAIM IN TORT, CONTRACT, EQUITY, OR
OTHERWISE) ARISING UNDER OR RELATING TO THIS AGREEMENT, THE OTHER LOAN PAPERS,
OR ANY RELATED MATTERS, AND AGREES THAT ANY SUCH DISPUTE SHALL BE TRIED BEFORE A
JUDGE SITTING WITHOUT A JURY. EACH OF BORROWERS, THE ADMINISTRATIVE AGENT AND
EACH LENDER REPRESENTS THAT IT HAS KNOWINGLY AND VOLUNTARILY WAIVED ITS JURY
TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF
LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A
TRIAL BY THE COURT.
(B) TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE BORROWER HEREBY WAIVES
PERSONAL SERVICE OF ANY LEGAL PROCESS UPON IT. THE BORROWERS AGREE THAT SERVICE
OF PROCESS MAY BE MADE UPON IT BY REGISTERED MAIL (RETURN RECEIPT REQUESTED)
DIRECTED TO THE BORROWER AT ITS ADDRESS DESIGNATED FOR NOTICE UNDER THIS
AGREEMENT AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED FIVE DAYS AFTER
DEPOSIT IN THE UNITED STATES MAIL. NOTHING IN THIS SECTION 11.12 SHALL AFFECT
THE RIGHT OF ADMINISTRATIVE AGENT OR ANY LENDER TO SERVE LEGAL PROCESS IN ANY
OTHER MANNER PERMITTED BY LAW.
11.14. RELEASE
THE BORROWERS, THE OBLIGORS AND THEIR SUBSIDIARIES, JOINTLY AND SEVERALLY,
FOR THEMSELVES AND THEIR RESPECTIVE SUCCESSORS AND ASSIGNS, EACH HEREBY
ACKNOWLEDGE THAT NONE OF THE BORROWERS, THE OBLIGORS AND THEIR SUBSIDIARIES,
JOINTLY AND SEVERALLY, FOR THEMSELVES AND THEIR RESPECTIVE SUCCESSORS AND
ASSIGNS, HAS ANY DEFENSE, COUNTERCLAIM, OFFSET, CROSS-COMPLAINT, CLAIM OR DEMAND
OF ANY KIND OR NATURE WHATSOEVER THAT CAN BE ASSERTED TO REDUCE OR ELIMINATE ALL
OR ANY PART OF BORROWERS', THE OBLIGORS OR ANY OF THEIR SUBSIDIARIES' LIABILITY
TO REPAY THE ADMINISTRATIVE AGENT OR EACH LENDER AS PROVIDED IN THIS AGREEMENT
OR TO SEEK AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM THE
ADMINISTRATIVE
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AGENT OR ANY LENDER. EACH OF THE BORROWERS, THE OBLIGORS AND THEIR SUBSIDIARIES,
JOINTLY AND SEVERALLY, FOR THEMSELVES AND THEIR RESPECTIVE SUCCESSORS AND
ASSIGNS EACH HEREBY UNCONDITIONALLY AND IRREVOCABLY REMISES, ACQUITS, AND FULLY
AND FOREVER RELEASES AND DISCHARGES THE ADMINISTRATIVE AGENT AND EACH LENDER AND
ALL AFFILIATES AND SUBSIDIARIES OF THE ADMINISTRATIVE AGENT AND EACH LENDER,
THEIR RESPECTIVE OFFICERS, EMPLOYEES, AGENTS, ATTORNEYS, PRINCIPALS, DIRECTORS
AND SHAREHOLDERS, AND THEIR RESPECTIVE HEIRS, LEGAL REPRESENTATIVES, SUCCESSORS
AND ASSIGNS (COLLECTIVELY, THE "RELEASED LENDER PARTIES") FROM ANY AND ALL
CLAIMS, DEMANDS, CAUSES OF ACTION, OBLIGATIONS, REMEDIES, SUITS, DAMAGES AND
LIABILITIES (COLLECTIVELY, THE "BORROWER CLAIMS") OF ANY NATURE WHATSOEVER,
WHETHER NOW KNOWN, SUSPECTED OR CLAIMED, WHETHER ARISING UNDER COMMON LAW, IN
EQUITY OR UNDER STATUTE, WHICH THE BORROWERS, THE OBLIGORS AND THEIR
SUBSIDIARIES, JOINTLY AND SEVERALLY, FOR THEMSELVES AND THEIR RESPECTIVE
SUCCESSORS AND ASSIGNS EVER HAD OR NOW HAVE AGAINST THE RELEASED LENDER PARTIES
WHICH MAY HAVE ARISEN AT ANY TIME ON OR PRIOR TO THE DATE OF THIS AGREEMENT AND
WHICH WERE IN ANY MANNER RELATED TO THIS AGREEMENT, ANY OTHER LOAN PAPERS OR THE
ENFORCEMENT OR ATTEMPTED ENFORCEMENT BY THE ADMINISTRATIVE AGENT OR ANY LENDER
OF RIGHTS, REMEDIES OR RECOURSES RELATED THERETO. THE BORROWERS, THE OBLIGORS
AND THEIR SUBSIDIARIES, JOINTLY AND SEVERALLY, FOR THEMSELVES AND THEIR
RESPECTIVE SUCCESSORS AND ASSIGNS COVENANT AND AGREE NEVER TO COMMENCE,
VOLUNTARILY AID IN ANY WAY, PROSECUTE OR CAUSE TO BE COMMENCED OR PROSECUTED
AGAINST ANY OF THE RELEASED LENDER PARTIES ANY ACTION OR OTHER PROCEEDING BASED
UPON ANY OF THE BORROWER CLAIMS WHICH MAY HAVE ARISEN AT ANY TIME ON OR PRIOR TO
THE DATE OF THIS AGREEMENT AND WERE IN ANY MANNER RELATED TO THIS AGREEMENT, ANY
OTHER LOAN PAPERS OR THE TRANSACTIONS ASSOCIATED THEREWITH.
11.15. Waiver of Civil Code ss.1542.
To the extent that the foregoing release is a release as to which Section
1542 of the California Civil Code or similar provisions of other applicable law
applies, it is the intention of each of the signatories hereto that the
foregoing release shall be effective as a bar to any and all causes of action or
whatsoever character, nature and kind, known or unknown, suspected or
unsuspected, herein and above specified to be so barred. In furtherance of this
intention, the Borrowers hereby expressly waive any and all rights and benefits
conferred upon them by the provisions of Section 1542 of the California Civil
Code or similar provisions of other applicable law, and acknowledge that Section
1542 of the California Civil Code provides:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS
WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT
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TO EXIST IN ITS FAVOR AT THE TIME OF EXECUTING
THE RELEASE, WHICH IF KNOW BY HIM MUST HAVE
MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
DEBTOR.
11.16. ENTIRE AGREEMENT. THIS AGREEMENT AND THE OTHER LOAN PAPERS
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENT OF THE PARTIES.
THERE ARE NO ORAL AGREEMENTS BETWEEN THE PARTIES.
11.17. Confidentiality. Each Lender agrees to keep information obtained by
it pursuant to the terms hereof or the terms of any other Loan Paper that is not
otherwise publicly available ("Confidential Information") confidential in
accordance with such Lender's customary procedures for handling confidential
information of this nature and in accordance with safe and sound banking
practices and agrees that it will only use such Confidential Information in
connection with the transactions contemplated by this Agreement and not disclose
any of such Confidential Information other than (a) to such Lenders and its
Affiliates' (other than an Affiliate which is a competitor of the Borrower or
its Subsidiaries) employees, counsel (in-house and outside), accountants,
consultants, representatives, professional advisors and agents so long as such
Person is advised of the confidentiality of such Confidential Information and
the limitation on its use under this Section 11.14, and needs to have knowledge
of such Confidential Information for such limited use, (b) to regulatory
officials, and in order to comply with any Applicable Law, or other law,
regulation or judicial order, or as requested or required by bank regulators or
auditors or other governmental authorities or Tribunals, (c) as reasonably
deemed necessary in connection with any investigation, legal process or
litigation, or (d) to assignees or participants or proposed assignees or
proposed participants of all or any part of this credit facility. The failure of
any Lender to comply with the provisions of this Section 11.14 shall not affect
the Obligations, or the obligation of the Borrowers to comply with the terms of
this Agreement and the other Loan Papers, or the validity of any assignment or
participation granted pursuant to the terms of this Agreement.
11.18. Amendment, Restatement, Extension, Renewal and Increase. This
Agreement is a renewal and amendment and restatement of the Original Credit
Agreement, and, as such, except for the "Obligation" as defined in the Original
Credit Agreement (which shall survive, be renewed and restated by the terms of
this Agreement), all other terms and provisions supersede in their entirety the
Original Credit Agreement. This Agreement is being restated and amended in
accordance with the terms of Section 11.01 of the Original Credit Agreement. All
subordination agreements, security agreements, pledge agreements, mortgages,
deeds of trust and other documents and instruments granting any security
interest or assigning any interest in any assets of the Borrower or any
Subsidiary to secure the Obligation executed and delivered in connection with
this Agreement that restate any previously granted interest shall supersede any
subordination agreements, security agreements, pledge agreements, mortgages,
deeds of trust and other documents and instruments granting any security
interest or assigning any interest in any assets of the Borrower or any
Subsidiary that were executed and delivered in connection with the Original
Credit Agreement (the "Original Security Documents"), except for the Liens
created under the Original Security Documents
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which shall remain valid, binding and enforceable Liens against the Borrower,
the Subsidiaries and each of the other Persons granting any such Liens. All
other Original Security Documents shall continue to secure the Obligations as
herein defined, and shall be in full force and effect.
THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK
===============================================================================
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IN WITNESS WHEREOF, this Credit Agreement is executed as of the date
first set forth above.
THE BORROWERS:
PACIFIC GATEWAY EXCHANGE, INC.
By:
------------------------------
Its:
-----------------------------
PACIFIC GATEWAY EXCHANGE
(BERMUDA) LIMITED
By:
------------------------------
Its:
-----------------------------
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ADMINISTRATIVE AGENT:
BANK OF AMERICA, N.A., as
Administrative Agent
By: ▇▇▇▇▇▇ ▇▇▇▇▇▇
Its: Managing Director
LENDERS:
Domestic Revolver Specified Percentage: 50% BANK OF AMERICA, N.A., individually
Foreign Revolver Specified Percentage: 50% as a Lender
Address:
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇
11th Floor, CA9-706-11-21
----------------------------------
▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ By: ▇▇▇▇▇▇ ▇▇▇▇▇▇
Attn.: ▇▇▇▇▇▇ ▇▇▇▇▇▇ Its: Managing Director
Tel: (▇▇▇) ▇▇▇-▇▇▇▇
Facs: (▇▇▇) ▇▇▇-▇▇▇▇
Domestic Revolver Specified Percentage: 50% BANKERS TRUST COMPANY, individually
Foreign Revolver Specified Percentage: 50% as a Lender
Address:
By:
----------------------------------- -------------------------------
Attn.: Its:
-------------------------- ------------------------------
Tel:
----------------------------
Facs:
--------------------------
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ACKNOWLEDGED AND AGREED:
THE GUARANTORS AND OBLIGORS:
PACIFIC GATEWAY EXCHANGE (HONG KONG)
LTD.
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
ONYX NETWORKS INTERNATIONAL LTD.
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
PACIFIC GATEWAY EXCHANGE (TAIWAN)
LIMITED
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
PACIFIC GATEWAY EXCHANGE (▇▇▇▇▇▇▇▇)
LIMITED
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
78
▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ EXCHANGE INTERNATIONAL
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
PACIFIC GATEWAY EXCHANGE (CANADA) INC.
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
PACIFIC GATEWAY EXCHANGE (IBERIA) SA
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
PACIFIC GATEWAY EXCHANGE (CYPRUS) LTD.
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
ONYX INTERNET LIMITED
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
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PACIFIC GATEWAY EXCHANGE (GERMANY)
GMBH
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
PACIFIC GATEWAY EXCHANGE (U.K.) LIMITED
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
PACIFIC GATEWAY EXCHANGE (AUSTRALIA) PTY
LTD.
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
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▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ (▇▇▇ ▇▇▇▇▇▇▇)
PARTNERSHIP
By: Pacific Gateway Exchange (Bermuda)
Limited, Its General Partner
By:
----------------------------------------
Name:
--------------------------------------
Title:
-------------------------------------
By: Pacific Gateway Exchange New Zealand
Limited, Its General Partner
By:
----------------------------------------
Name:
--------------------------------------
Title:
-------------------------------------
By:
----------------------------------------
Name:
--------------------------------------
Title:
-------------------------------------
PACIFIC GATEWAY EXCHANGE (NEW ZEALAND)
LIMITED
By:
----------------------------------------
Name:
--------------------------------------
Title:
-------------------------------------
By:
---------------------------------------
Name:
-------------------------------------
Title:
------------------------------------
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