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EXHIBIT 4(i).1
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$2,500,000,000
CREDIT AGREEMENT
DATED AS OF MAY 24, 2001
AMONG
SAFEWAY INC.
AND
CANADA SAFEWAY LIMITED,
AS BORROWERS,
DEUTSCHE BANC ALEX. ▇▇▇▇▇ INC.
AND
▇.▇. ▇▇▇▇▇▇ SECURITIES INC.,
AS CO-ARRANGERS
THE BANK OF NOVA SCOTIA,
AS ADMINISTRATIVE AGENT,
DEUTSCHE BANK AG NEW YORK BRANCH
THE CHASE MANHATTAN BANK,
BANK OF AMERICA, NA
AND
CITICORP USA, INC.,
AS CO-SYNDICATION AGENTS,
US BANK NATIONAL ASSOCIATION,
AS DOCUMENTATION AGENT,
THE AGENTS LISTED HEREIN,
AS AGENTS,
AND
THE LENDERS LISTED HEREIN,
AS LENDERS
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SAFEWAY INC.
CANADA SAFEWAY LIMITED
CREDIT AGREEMENT
TABLE OF CONTENTS
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SECTION 1. DEFINITIONS ................................................................................ 2
1.1 Certain Defined Terms ................................................................. 2
1.2 Accounting Terms; Utilization of GAAP for Purposes of Calculations Under Agreement .... 31
1.3 Other Definitional Provisions ......................................................... 31
Section 2. AMOUNTS AND TERMS OF COMMITMENTS AND LOANS ................................................. 31
2.1 Commitments; Making of Loans; the Register; Notes ..................................... 31
2.2 Interest on the Loans ................................................................. 49
2.3 Fees .................................................................................. 54
2.4 Prepayments and Reductions in Commitments; General Provisions Regarding Payments ...... 56
2.5 Use of Proceeds ....................................................................... 62
2.6 Special Provisions Governing Fixed Rate Loans ......................................... 62
2.7 Extension of Tranche A Termination Date ............................................... 65
2.8 Extension of Tranche B Revolving Termination Date ..................................... 66
2.9 Conversion of Tranche B Domestic Loans and Tranche B Canadian Loans into Term Loans ... 67
Section 3. LETTERS OF CREDIT .......................................................................... 67
3.1 Issuance of Letters of Credit and Lenders' Purchase of Participations Therein ......... 67
3.2 Letter of Credit Fees ................................................................. 71
3.3 Drawings and Reimbursement of Amounts Drawn Under Letters of Credit ................... 71
3.4 Obligations Absolute .................................................................. 74
3.5 Indemnification; Nature of Issuing Lenders' Duties .................................... 75
Section 4. ACCEPTANCES ................................................................................ 76
4.1 Acceptance Commitment ................................................................. 76
4.2 Drawing Notice ........................................................................ 77
4.3 Form of Acceptances ................................................................... 78
4.4 Acceptance and Purchase or Delivery of Drafts ......................................... 78
4.5 Payment of the Drawing Purchase Price ................................................. 79
4.6 Average Effective Discount Rate Determination ......................................... 79
4.7 Acceptance Payment Obligations ........................................................ 80
4.8 Power of Attorney in Favor of Canadian Lenders ........................................ 81
4.9 Circumstances Making Acceptances Unavailable .......................................... 81
4.10 Prepayments ........................................................................... 82
4.11 Use of Proceeds of Loans and Acceptance Facility ...................................... 82
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SECTION 5. INCREASED COSTS, TAXES, CAPITAL ADEQUACY, AND MITIGATION ................................ 82
5.1 Increased Costs; Taxes; Capital Adequacy ........................................... 82
5.2 Obligation of Lenders and Issuing Lenders to Mitigate .............................. 87
5.3 Replacement of Lenders ............................................................. 88
Section 6. CONDITIONS TO LOANS, LETTERS OF CREDIT AND ACCEPTANCES .................................. 89
6.1 Conditions to Initial Loans ........................................................ 89
6.2 Conditions to All Loans ............................................................ 91
6.3 Conditions to Letters of Credit .................................................... 92
6.4 Conditions to Acceptances .......................................................... 92
Section 7. BORROWERS' REPRESENTATIONS AND WARRANTIES ............................................... 93
7.1 Organization, Powers, Qualification, Good Standing and Business .................... 93
7.2 Authorization of Borrowing, etc .................................................... 93
7.3 Financial Condition ................................................................ 94
7.4 No Material Adverse Effect ......................................................... 94
7.5 Litigation; Adverse Facts .......................................................... 94
7.6 Payment of Taxes ................................................................... 95
7.7 Governmental Regulation ............................................................ 95
7.8 Securities Activities .............................................................. 95
7.9 Employee Benefit Plans ............................................................. 95
7.10 Disclosure ......................................................................... 96
7.11 Solvency ........................................................................... 96
Section 8. BORROWERS' AFFIRMATIVE COVENANTS ........................................................ 96
8.1 Financial Statements and Other Reports ............................................. 97
8.2 Corporate Existence, etc ........................................................... 99
8.3 Payment of Taxes and Claims ........................................................ 99
8.4 Maintenance of Properties; Insurance ............................................... 100
8.5 Inspection ......................................................................... 100
8.6 Compliance with Laws, etc .......................................................... 100
Section 9. BORROWERS' NEGATIVE COVENANTS ........................................................... 100
9.1 Liens and Related Matters .......................................................... 100
9.2 Financial Covenants ................................................................ 103
9.3 Restriction on Fundamental Changes; Material Asset Sales ........................... 103
9.4 Transactions with Shareholders and Affiliates ...................................... 104
9.5 Conduct of Business ................................................................ 104
9.6 Unrestricted Subsidiaries .......................................................... 104
Section 10. EVENTS OF DEFAULT ...................................................................... 105
10.1 Failure to Make Payments When Due .................................................. 105
10.2 Default in Other Agreements ........................................................ 106
10.3 Breach of Certain Covenants ........................................................ 106
10.4 Breach of Warranty ................................................................. 106
10.5 Other Defaults Under Loan Documents ................................................ 107
10.6 Involuntary Bankruptcy; Appointment of Receiver, etc ............................... 107
10.7 Voluntary Bankruptcy; Appointment of Receiver, etc ................................. 107
10.8 Judgments and Attachments .......................................................... 107
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10.9 Dissolution ........................................................................ 108
10.10 Employee Benefit Plans ............................................................. 108
10.11 Invalidity of Subsidiary Borrower Guaranty ......................................... 108
10.12 Change in Control .................................................................. 108
Section 11. AGENTS ................................................................................. 110
11.1 Appointment ........................................................................ 110
11.2 Powers; General Immunity ........................................................... 110
11.3 Representations and Warranties; No Responsibility For Appraisal of
Creditworthiness ................................................................. 112
11.4 Right to Indemnity ................................................................. 112
11.5 Successor Agent .................................................................... 112
11.6 Collateral Account Agreement; Subsidiary Borrower Guaranty ......................... 113
Section 12. COMPANY GUARANTY OF CERTAIN CREDIT FACILITIES .......................................... 113
Section 13. MISCELLANEOUS .......................................................................... 116
13.1 Assignments and Participations in Loans and Letters of Credit ...................... 116
13.2 Expenses ........................................................................... 121
13.3 Indemnity .......................................................................... 122
13.4 Set-Off ............................................................................ 122
13.5 Ratable Sharing .................................................................... 123
13.6 Amendments and Waivers; Replacement of Banks ....................................... 124
13.7 Independence of Covenants .......................................................... 126
13.8 Notices ............................................................................ 126
13.9 Survival of Representations, Warranties and Agreements ............................. 126
13.10 Failure or Indulgence Not Waiver; Remedies Cumulative .............................. 127
13.11 Marshalling; Payments Set Aside .................................................... 127
13.12 Severability ....................................................................... 127
13.13 Obligations Several; Independent Nature of Lenders' Rights and Borrowers'
Obligations ...................................................................... 127
13.14 Headings ........................................................................... 128
13.15 Applicable Law ..................................................................... 128
13.16 Successors and Assigns ............................................................. 128
13.17 Consent to Jurisdiction and Service of Process ..................................... 128
13.18 Waiver of Jury Trial ............................................................... 129
13.19 Confidentiality .................................................................... 129
13.20 Judgment Currency .................................................................. 130
13.21 Counterparts; Effectiveness ........................................................ 130
Signature pages .................................................................................... S-1
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EXHIBITS
I FORM OF NOTICE OF BORROWING
II FORM OF NOTICE OF CONVERSION/CONTINUATION
III FORM OF NOTICE OF ISSUANCE OF LETTER OF CREDIT
IV-A FORM OF NOTE (COMPANY)
IV-B FORM OF NOTE (CANADA SAFEWAY)
V FORM OF COMPLIANCE CERTIFICATE
VI-A FORM OF OPINION OF ▇▇▇▇▇▇ & ▇▇▇▇▇▇▇
VI-B FORM OF OPINION OF SAFEWAY VICE PRESIDENT -- CORPORATE LAW
VI-C FORM OF OPINION OF ▇▇▇▇▇▇ ▇▇▇▇▇▇
VI-D FORM OF OPINION OF CANADA SAFEWAY GENERAL COUNSEL
VII FORM OF OPINION OF O'MELVENY & ▇▇▇▇▇ LLP
VIII FORM OF ASSIGNMENT AGREEMENT
IX FORM OF TRANCHE A EXTENSION REQUEST
X FORM OF TRANCHE B EXTENSION REQUEST
XI FORM OF PRICING LEVEL DETERMINATION CERTIFICATE
XII FORM OF DRAWING NOTICE
XIII FORM OF ACCEPTANCE ENDORSEMENT
XIV FORM OF DRAFT
XV FORM OF CERTIFICATE RE NON-BANK STATUS
XVI FORM OF SPECIAL FUNDING PROCEDURES LETTER AGREEMENT
SCHEDULES
2.1 LENDERS' COMMITMENTS AND PRO RATA SHARES
3.1 EXISTING COMPANY LETTERS OF CREDIT
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SAFEWAY INC.
CANADA SAFEWAY LIMITED
CREDIT AGREEMENT
This CREDIT AGREEMENT is dated as of May 24, 2001 and entered
into by and among SAFEWAY INC., a Delaware corporation ("COMPANY"), and CANADA
SAFEWAY LIMITED, an Alberta corporation ("CANADA SAFEWAY"; and together with the
Company, collectively, "BORROWERS"), DEUTSCHE BANC ALEX. ▇▇▇▇▇ INC. ("DEUTSCHE
BANC ALEX. ▇▇▇▇▇") and ▇.▇. ▇▇▇▇▇▇ SECURITIES INC. ("JPMORGAN"), as co-arrangers
("CO-ARRANGERS"), THE BANK OF NOVA SCOTIA ("SCOTIABANK"), as administrative
agent for the Lenders referred to below (in such capacity, "ADMINISTRATIVE
AGENT"), DEUTSCHE BANK AG NEW YORK BRANCH ("DEUTSCHE BANK"), THE CHASE MANHATTAN
BANK ("CHASE"), BANK OF AMERICA, NA ("BOFA") and CITICORP USA, INC.
("CITICORP"), as the syndication agents for the Lenders referred to below
("CO-SYNDICATION AGENTS"), US BANK NATIONAL ASSOCIATION ("US BANK"), as the
documentation agent for the Lenders referred to below ("DOCUMENTATION AGENT"),
THE LENDERS LISTED AS AGENTS ON THE SIGNATURE PAGES HEREOF, as agents
("AGENTS"), and THE LENDERS LISTED ON THE SIGNATURE PAGES HEREOF (each
individually referred to herein as a "LENDER" and collectively as "LENDERS").
R E C I T A L S
WHEREAS, Company desires that Lenders extend certain credit
facilities to Borrowers for working capital and other general corporate
purposes, including the refinancing of amounts outstanding under existing bank
credit facilities;
WHEREAS, Company will benefit from the extensions of credit to
be provided under such credit facilities and, in order to induce Lenders to
provide such credit facilities, is willing to guaranty the obligations of Canada
Safeway with respect to such credit facilities;
NOW, THEREFORE, in consideration of the premises and the
agreements, provisions and covenants herein contained, Company, Canada Safeway,
Lenders, Co-Arrangers, Co-Syndication Agents, Agents, Documentation Agent and
Administrative Agent agree as follows:
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SECTION 1. DEFINITIONS
1.1 CERTAIN DEFINED TERMS.
The following terms used in this Agreement shall have the
following meanings:
"ACCEPTANCE" has the meaning assigned to that term in subsection
4.1.
"ACCEPTANCE FACILITY" means the bankers' acceptance facility
established under Section 4.
"ACCEPTANCE USAGE" means, as at any date, the sum (without
duplication) of the aggregate Face Amount of all Acceptances created by Canadian
Lenders pursuant to Section 4 which have not been repaid by Canada Safeway
whether or not due and whether or not held by any Lender. For purposes of this
definition, any Acceptance which has been prepaid in full shall not be deemed to
be outstanding and all Acceptances shall be valued in Dollar Equivalents as of
any date of determination.
"ADJUSTED EURODOLLAR RATE" means, for any Interest Rate
Determination Date with respect to an Interest Period for a Tranche A Domestic
Eurodollar Rate Loan or Tranche B Domestic Eurodollar Rate Loan, as the case may
be, the rate per annum obtained by dividing (i) the arithmetic average (rounded
upward to the nearest 1/16 of one percent) of the offered quotation, if any, to
first class banks in the interbank Eurodollar market by each of the Domestic
Reference Banks for Dollar deposits of amounts in same day funds comparable to
the principal amount of the Tranche A Domestic Eurodollar Rate Loan or Tranche B
Domestic Eurodollar Rate Loan, as the case may be, of that Domestic Reference
Bank for which the Adjusted Eurodollar Rate is then being determined with
maturities comparable to such Interest Period as of approximately 10:00 A.M.
(New York time) on such Interest Rate Determination Date by (ii) a percentage
equal to 100% minus the stated maximum rate of all reserve requirements
(including, without limitation, any marginal, emergency, supplemental, special
or other reserves) applicable on such Interest Rate Determination Date to any
member bank of the Federal Reserve System in respect of "Eurocurrency
liabilities" as defined in Regulation D (or any successor category of
liabilities under Regulation D); provided that if any Domestic Reference Bank
fails to provide Administrative Agent with its aforementioned quotation then the
Adjusted Eurodollar Rate shall be determined based on the quotation(s) provided
to Administrative Agent by the other Domestic Reference Bank(s).
"ADMINISTRATIVE AGENT" has the meaning assigned to that term in
the introduction to this Agreement and also means and includes any successor
Administrative Agent appointed pursuant to subsection 11.5.
"AFFECTED LENDER" has the meaning assigned to that term in
subsection 2.6C.
"AFFILIATE," as applied to any Person, means any other Person
directly or indirectly controlling, controlled by, or under common control with,
that Person. For the purposes of this definition, "control" (including, with
correlative meanings, the terms
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"controlling", "controlled by" and "under common control with"), as applied to
any Person, means the possession, directly or indirectly, of the power to direct
or cause the direction of the management and policies of that Person, whether
through the ownership of voting securities or by contract or otherwise.
"AGENTS" has the meaning assigned to that term in the
introduction to this Agreement.
"AGGREGATE AMOUNTS DUE FROM CANADA SAFEWAY" has the meaning
assigned to that term in subsection 13.5B.
"AGGREGATE AMOUNTS DUE FROM COMPANY" has the meaning assigned to
that term in subsection 13.5A.
"AGGREGATE COMMITMENT" means, with respect to any Lender, the
sum of (i) the Tranche A Domestic Commitment plus (ii) the Tranche A Canadian
Commitment plus (iii) the Tranche B Domestic Commitment plus (iv) the Tranche B
Canadian Commitment of such Lender, and "AGGREGATE COMMITMENTS" means the
Aggregate Commitments of all Lenders; provided that for the purposes of the
definition of Aggregate Commitment (i) upon the termination of the Tranche A
Domestic Commitments, the Tranche A Domestic Commitment of any Lender shall be
deemed to be the total outstanding Tranche A Domestic Loans of such Lender, (ii)
upon the termination of the Tranche A Canadian Commitments, the Tranche A
Canadian Commitment of any Lender shall be deemed to be the total outstanding
Tranche A Canadian Loans of such Lender, (iii) upon the termination of the
Tranche B Domestic Commitments, the Tranche B Domestic Commitment of any Lender
shall be deemed to be the total outstanding Tranche B Domestic Loans of such
Lender, and (iv) upon the termination of the Tranche B Canadian Commitments, the
Tranche B Canadian Commitment of any Lender shall be deemed to be the total
outstanding Tranche B Canadian Loans of such Lender.
"AGGREGATE PRO RATA SHARE" means, with respect to any Lender,
the Aggregate Commitment of such Lender as a percentage of the sum of the
Aggregate Commitments of all Lenders.
"AGGREGATE TOTAL UTILIZATION" means the sum of the Total
Utilization of Tranche A Canadian Commitments, the Total Utilization of Tranche
A Domestic Commitments, the Total Utilization of Tranche B Canadian Commitments
and the Total Utilization of Tranche B Domestic Commitments.
"AGREEMENT" means this Credit Agreement dated as of May 24,
2001, as it may be amended, supplemented or otherwise modified from time to
time.
"ASSIGNMENT AGREEMENT" means an Assignment Agreement in
substantially the form of Exhibit VIII annexed hereto.
"AUTHORIZED OFFICER" has the meaning assigned to that term in
subsection 6.2A.
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"AVERAGE EFFECTIVE DISCOUNT RATE" means, (a) in respect of any
Acceptances to be purchased by a Schedule I Lender pursuant hereto, the
arithmetic average of the discount rates (calculated on an annual basis and
rounded to the nearest one-hundredth of 1%, with five-thousandths of 1% being
rounded up) quoted by each Schedule I Reference Bank at or about 10:00 A.M.
(Toronto time) as the discount rate at which such Schedule I Reference Bank
would purchase, on the relevant Drawing Date, its own bankers' acceptances
having an aggregate Face Amount equal to and with a term to maturity the same as
the Acceptances to be acquired by such Schedule I Reference Bank on such Drawing
Date or (b) in respect of any Acceptances to be purchased by a Schedule II
Lender or any other Person (other than a Schedule I Lender) pursuant hereto, the
arithmetic average of the discount rates (calculated on an annual basis and
rounded to the nearest one-hundredth of 1%, with five-thousandths of 1% being
rounded up) quoted by each Schedule II Reference Bank at or about 10:00 A.M.
(Toronto time) as the discount rate at which such Schedule II Reference Bank
would purchase, on the relevant Drawing Date, its own bankers' acceptances
having an aggregate Face Amount equal to and with a term to maturity the same as
the Acceptances to be acquired by such Schedule II Reference Bank or other
Person on such Drawing Date. If any Schedule I Reference Bank or Schedule II
Reference Bank fails to provide its quotation to Administrative Agent, the
Average Effective Discount Rate shall be determined on the basis of the
quotation(s) by the other Schedule I Reference Bank(s) or Schedule II Reference
Bank(s), as applicable.
"BANKRUPTCY CODE" means Title 11 of the United States Code
entitled "Bankruptcy", as now and hereafter in effect, or any successor statute.
"BOFA" has the meaning assigned to that term in the introduction
to this Agreement.
"BOOK VALUE" means, with respect to the assets of Company or any
of its Subsidiaries, the value of such Person's assets recorded in the
consolidated balance sheet of Company most recently delivered to Lenders
pursuant to subsection 8.1(i) or 8.1(ii).
"BORROWERS" has the meaning assigned to that term in the
introduction to this Agreement.
"BUSINESS DAY" means any day excluding Saturday and Sunday and
also excluding (i) for all purposes other than as covered by clauses (ii) and
(iii) below, any day which is a legal holiday under the laws of the States of
New York or California or is a day on which banking institutions located in any
such state are authorized or required by law or other governmental action to
close, (ii) with respect to all notices, determinations, fundings and payments
in connection with Tranche A Canadian Loans, Tranche B Canadian Loans, Tranche A
Canadian Swing Line Loans and the Acceptance Facility, any day which is a legal
holiday under the laws of the Province of Ontario or Alberta, Canada or is a day
on which banking institutions located in any such Province are authorized or
required by law or other governmental action to close; and (iii) with respect to
all notices, determinations, fundings and payments in connection with the
Adjusted Eurodollar Rate, any day which is not a Business Day pursuant to clause
(i) or which is not a day for trading by and between banks in Dollar deposits in
the applicable interbank Eurodollar market and with respect to all notices,
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determinations, fundings and payments in connection with the Canadian Eurodollar
Rate, any day which is not a Business Day pursuant to clause (ii) and which is
also not a day for trading by and between banks in Dollar deposits in the
applicable interbank Eurodollar market.
"CANADA SAFEWAY" has the meaning assigned to that term in the
introduction to this Agreement.
"CANADIAN BASE RATE" means as at any date, with respect to any
Canadian Loan denominated in Dollars that is to be or has been advanced to
Canada Safeway in Canada, the variable rate of interest per annum equal to the
greater of (a) the rate which Administrative Agent announces from time to time
as its base lending rate per annum with respect to loans denominated in Dollars
advanced to Canadian customers in Canada, as in effect from time to time and (b)
the aggregate of (i) the Federal Funds Effective Rate per annum for such day and
(ii) 3/8 of 1% per annum. As to any loan, the Canadian Base Rate is a reference
rate and does not necessarily represent the lowest or best rate actually charged
to any customer for loans denominated in Dollars. Administrative Agent may make
commercial loans or other loans denominated in Dollars at rates of interest at,
above or below the Canadian Base Rate.
"CANADIAN DOLLARS" or "CDN.$" means the lawful money of Canada.
"CANADIAN EURODOLLAR RATE" means, with respect to each Interest
Period to be applicable to a Tranche A Canadian Eurodollar Rate Loan or a
Tranche B Canadian Eurodollar Rate Loan, the rate per annum obtained by
determining the arithmetic average (rounded upward to the nearest 1/16th of 1%)
of the offered quotation to first-class banks in the interbank Eurodollar market
by each Canadian Loan Pricing Reference Bank for Dollar deposits of an amount in
immediately available funds approximately equal to the principal amount of the
Tranche A Canadian Eurodollar Rate Loan or Tranche B Canadian Eurodollar Rate
Loan to be made by such Canadian Loan Pricing Reference Bank for a period
approximately equal to such Interest Period determined as of 10:00 a.m. (New
York time) two Business Days prior to the commencement of such Interest Period.
If any Canadian Loan Pricing Reference Bank fails to provide its offered
quotation to Administrative Agent, the Canadian Eurodollar Rate shall be
determined on the basis of the offered quotation(s) by the other Canadian Loan
Pricing Reference Bank(s).
"CANADIAN FUNDING AND PAYMENT OFFICE" means the office of
Administrative Agent located at ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇,
▇▇▇▇▇▇▇ ▇▇▇▇▇▇, or such other location in Canada as may from time to time be
designated in writing by Administrative Agent.
"CANADIAN LENDERS" means any Lender having a Tranche A Canadian
Commitment or a Tranche B Canadian Commitment or, on and after the termination
of any such Commitments, Canadian Loans outstanding and shall include any U.S.
Affiliate of any such Lender.
"CANADIAN LOAN PRICING REFERENCE BANKS" means Scotiabank and
CIBC.
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"CANADIAN LOANS" means the Tranche A Canadian Loans and the
Tranche B Canadian Loans, or any combination thereof.
"CANADIAN PRIME RATE" means with respect to any Canadian Loan
denominated in Canadian Dollars that is to be or has been advanced to Canada
Safeway in Canada as of any date, the greater of (a) the variable rate announced
by Scotiabank from time to time as its prime lending rate per annum for Canadian
Dollar loans made by Scotiabank, as in effect on such date and (b) the sum of
(i) the rate per annum for Canadian Dollar bankers' acceptances having a term of
30 days for Scotiabank as of 10:00 A.M. (Toronto time) on such date, and (ii)
3/8 of 1% per annum. As to any loan, the Canadian Prime Rate is a reference rate
and does not necessarily represent the lowest or best rate actually charged to
any customer. Scotiabank may make commercial loans or other loans at rates of
interest at, above or below the Canadian Prime Rate.
"CANADIAN/U.S. BASE RATE LOANS" means Canadian/U.S. Loans
bearing interest at rates determined by reference to the Domestic Base Rate as
provided in subsection 2.2A.
"CANADIAN/U.S. EURODOLLAR RATE LOANS" means Canadian/U.S. Loans
bearing interest at rates determined by reference to the Adjusted Eurodollar
Rate as provided in subsection 2.2A.
"CANADIAN/U.S. FUNDING ASSIGNMENT" has the meaning assigned to
that term in subsection 13.1B.
"CANADIAN/U.S. LOANS" means Dollar denominated Canadian Loans
advanced to Company by Canadian Lenders pursuant to subsection 2.1A(ii).
"CAPITAL LEASE," as applied to any Person, means any lease of
any property (whether real, personal or mixed) by that Person as lessee that, in
conformity with GAAP, is accounted for as a capital lease on the balance sheet
of that Person.
"CAPITAL STOCK" means any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate
stock.
"CASA LEY" means Casa ▇▇▇, ▇.▇. de C.V., a Mexican corporation.
"CERTIFICATE RE NON-BANK STATUS" means a certificate
substantially in the form of Exhibit XV annexed hereto delivered by a Lender to
Administrative Agent pursuant to subsection 5.1B(iii).
"CHASE" has the meaning assigned to that term in the
introduction to this Agreement.
"CIBC" means CIBC Inc.
"CITICORP" has the meaning assigned to that term in the
introduction to this Agreement.
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"CLOSING DATE" means the date on or before May 24, 2001, on
which the initial Loans are made.
"CO-ARRANGERS" has the meaning assigned to that term in the
introduction to this Agreement.
"COMMERCIAL LETTER OF CREDIT" means any letter of credit or
similar instrument (which may include a "steamship guaranty" or similar
undertaking issued in connection with such letter of credit or similar
instrument) issued for the purpose of providing the primary payment mechanism in
connection with the purchase of any materials, goods or services by Company or
any of its Subsidiaries in the ordinary course of business of Company or such
Subsidiary.
"COMMITMENTS" means the Tranche A Domestic Commitments, the
Tranche A Canadian Commitments, the Tranche B Domestic Commitments, the Tranche
B Canadian Commitments or any combination thereof.
"COMPANY" has the meaning assigned to that term in the
introduction to this Agreement.
"COMPANY'S COMMON STOCK" means the common stock, $.01 par value,
of Company.
"COMPLIANCE CERTIFICATE" means a certificate substantially in
the form of Exhibit V annexed hereto delivered to Administrative Agent and
Lenders by Company pursuant to subsection 8.1(iii).
"CONSOLIDATED ADJUSTED EBITDA" means, for any period,
Consolidated Net Income adjusted to exclude (without duplication) the effects of
(i) any LIFO expense or income, (ii) Consolidated Interest Expense, (iii)
provisions for taxes based on income, (iv) depreciation expense, (v)
amortization expense, (vi) equity in earnings or losses of unconsolidated
affiliates to the extent not actually received or paid by Company or its
Subsidiaries, and (vii) material non-cash, non-recurring gains and losses, all
of the foregoing as determined on a consolidated basis for Company and its
Subsidiaries (excluding any Unrestricted Subsidiaries) in conformity with GAAP.
"CONSOLIDATED INTEREST EXPENSE" means, for any period, interest
expense with respect to all outstanding Indebtedness (including, without
limitation, net costs under Interest Rate Agreements and any such expense
attributable to Capital Leases in accordance with GAAP) of Company and its
Subsidiaries (excluding any Unrestricted Subsidiaries) for such period
determined on a consolidated basis in conformity with GAAP.
"CONSOLIDATED NET INCOME" means, for any period, the net income
(or loss), before extraordinary items, of Company and its Subsidiaries
(excluding any Unrestricted Subsidiaries) on a consolidated basis for such
period taken as a single accounting period determined in conformity with GAAP.
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"CONSOLIDATED TOTAL DEBT" means, as at any date of
determination, the aggregate stated balance sheet amount of all Indebtedness and
all guaranties of Company and its Subsidiaries (excluding any Unrestricted
Subsidiaries), determined on a consolidated basis in conformity with GAAP.
"CONTRACTUAL OBLIGATION," as applied to any Person, means any
provision of any material indenture, mortgage, deed of trust, contract,
undertaking, agreement or other instrument to which that Person is a party or by
which it or any of its properties is bound or to which it or any of its
properties is subject.
"CO-SYNDICATION AGENTS" has the meaning assigned to that term in
the introduction to this Agreement.
"DBNA" means the Depository Bills and Notes Act (Canada), as
amended from time to time, and any successor statute.
"DEEMED FLOATING RATE" means (a) with respect to any portion of
the principal amount of any Loan advanced to, or to be advanced to, Company, the
Domestic Base Rate, (b) with respect to any portion of the principal amount of
any Dollar denominated Loan advanced to, or to be advanced to, Canada Safeway,
the Canadian Base Rate, or (c) with respect to any portion of the principal
amount of any Canadian Dollar denominated Loan advanced to, or to be advanced
to, Canada Safeway, the Canadian Prime Rate.
"DESIGNATING LENDER" has the meaning assigned to that term in
subsection 13.1.
"DEUTSCHE BANK" means Deutsche Bank AG New York Branch.
"DEUTSCHE BANC ALEX. ▇▇▇▇▇" has the meaning assigned to that
term in the introduction to this Agreement.
"DOCUMENTATION AGENT" has the meaning assigned to that term in
the introduction to this Agreement and also means and includes any successor
Documentation Agents appointed pursuant to subsection 11.5.
"DOLLARS," "$" and "U.S.$" mean the lawful money of the United
States of America.
"DOLLAR EQUIVALENTS" means Dollars or, with respect to any
amount of Canadian Dollars, an equivalent amount of Dollars determined at the
rate of exchange quoted by Administrative Agent in New York City, at 9:00 A.M.
(New York time) on the date of determination, to prime banks in New York City
for the spot purchase in the New York foreign exchange market of Dollars with
Canadian Dollars.
"DOMESTIC BASE RATE" means the rate that Administrative Agent
announces from time to time as its prime lending rate in the United States for
Dollar denominated loans, as in effect from time to time. Such prime lending
rate is a reference rate and does not
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necessarily represent the lowest or best rate actually charged to any customer.
Administrative Agent or any other Lender may make commercial loans or other
loans at rates of interest at, above or below such prime lending rate.
"DOMESTIC FUNDING AND PAYMENT OFFICE" means the office of
Administrative Agent located at ▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇.▇., ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇
▇▇▇▇▇, or such other location in the United States of America as may from time
to time be designated in writing by Administrative Agent.
"DOMESTIC LENDERS" means any Lender having a Tranche A Domestic
Commitment or a Tranche B Domestic Commitment or, on and after the termination
of any such Commitments, Domestic Loans outstanding.
"DOMESTIC LOANS" means the Tranche A Domestic Loans and the
Tranche B Domestic Loans, or any combination thereof.
"DOMESTIC REFERENCE BANKS" means Deutsche Bank, Chase and
Scotiabank.
"DRAFTS" means, at any time, either a depository ▇▇▇▇ within the
meaning of the DBNA or a ▇▇▇▇▇ ▇▇▇▇ of exchange, within the meaning of the Bills
of Exchange Act (Canada), in substantially the form of Exhibit XIV annexed
hereto or such other form as may be agreed by Canada Safeway and Administrative
Agent or such Canadian Lender, drawn by Canada Safeway on a Canadian Lender and
bearing such distinguishing letters and numbers as such Canadian Lender may
determine, but which at such time, except as otherwise provided herein, has not
been completed or accepted by such Canadian Lender.
"DRAWING" means the creation of Acceptances by a Canadian Lender
pursuant to Section 4.
"DRAWING DATE" means any Business Day fixed pursuant to
subsection 4.1 for a Drawing.
"DRAWING FEE" means, with respect to the Drafts drawn by Canada
Safeway hereunder and accepted by any Canadian Lender as provided herein on any
Drawing Date, an amount equal to the Tranche A Pricing Margin per annum on the
aggregate Face Amount of such Drafts or an amount equal to the Tranche B Pricing
Margin per annum on the aggregate Face Amount of such Drafts, as the case may
be, calculated, in each case, on the basis of the term to maturity of such Draft
and a year of 365 days, as appropriate.
"DRAWING NOTICE" has the meaning assigned to that term in
subsection 4.2.
"DRAWING PURCHASE PRICE" means, in respect of Acceptances to be
purchased by a Canadian Lender, the difference between (i) the result (rounded
to the nearest whole cent, with one-half of one cent being rounded up) obtained
by dividing the aggregate Face Amount of such Acceptances by the sum of one plus
the product of (x) the applicable Average Effective Discount Rate multiplied by
(y) a fraction the numerator of which is the
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term of maturity of such Acceptances and the denominator of which is 365 (as
appropriate given the number of days in the current calendar year); and (ii) the
applicable Drawing Fee.
"ELIGIBLE ASSIGNEE" means (A) (i) a commercial bank organized
under the laws of the United States or any state thereof; (ii) a savings and
loan association or savings bank organized under the laws of the United States
or any state thereof; (iii) a commercial bank organized under the laws of any
other country or a political subdivision thereof; provided that (x) such bank is
acting through a branch or agency located in the United States or (y) such bank
is organized under the laws of a country that is a member of the Organization
for Economic Cooperation and Development or a political subdivision of such
country; and (iv) any other entity which is an "accredited investor" (as defined
in Regulation D under the Securities Act) which extends credit or buys loans as
one of its businesses including, but not limited to, insurance companies, mutual
funds and lease financing companies; and (B) subject to such transfer not
resulting in additional costs being payable by Borrowers under subsection 2.6 or
5.1, any Lender and any Affiliate of any Lender; provided that no Borrower or
Affiliate of Company shall be an Eligible Assignee.
"EMPLOYEE BENEFIT PLAN" means any "employee benefit plan" as
defined in Section 3(3) of ERISA which is, or was at any time, maintained or
contributed to by Company or any of its ERISA Affiliates.
"ENVIRONMENTAL LAWS" means all statutes, ordinances, orders,
rules, regulations, plans, policies or decrees and the like relating to (i)
environmental matters, including, without limitation, those relating to fines,
injunctions, penalties, damages, contribution, cost recovery compensation,
losses or injuries resulting from the Release or threatened Release of Hazardous
Materials, (ii) the generation, use, storage, transportation or disposal of
Hazardous Materials, or (iii) occupational safety and health, industrial
hygiene, land use or the protection of human, plant or animal health or welfare,
in any manner applicable to Company or any of its Subsidiaries or any of their
respective properties, including, without limitation, the Comprehensive
Environmental Response, Compensation, and Liability Act (42 U.S.C. Section 9601
et seq.), the Hazardous Materials Transportation Act (49 U.S.C. Section 1801 et
seq.), the Resource Conservation and Recovery Act (42 U.S.C. Section 6901 et
seq.), the Federal Water Pollution Control Act ( 33 U.S.C. Section 1251 et
seq.), the Clean Air Act (42 U.S.C. Section 7401 et seq.), the Toxic Substances
Control Act (15 U.S.C. Section 2601 et seq.), the Federal Insecticide, Fungicide
and Rodenticide Act (7 U.S.C. Section 136 et seq.), the Occupational Safety and
Health Act (29 U.S.C. Section 651 et seq.) and the Emergency Planning and
Community Right-to-Know Act (42 U.S.C. Section 11001 et seq.), each as amended
or supplemented, and any analogous future or present local, state and federal
statutes and regulations promulgated pursuant thereto, each as in effect as of
the date of determination.
"ERISA" means the Employee Retirement Income Security Act of
1974, as amended from time to time, and any successor statute.
"ERISA AFFILIATE," as applied to any Person as of any date,
means (i) any corporation which is (or, for the purposes of subsection 10.10
only, was at any time during the preceding five years) a member of a controlled
group of corporations within the meaning of Section 414(b) of the Internal
Revenue Code of which that Person is (or was at any time
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during the preceding five years) a member; (ii) any trade or business (whether
or not incorporated) which is (or, for the purposes of subsection 10.10 only,
was at any time during the preceding five years) a member of a group of trades
or businesses under common control within the meaning of Section 414(c) of the
Internal Revenue Code of which that Person is (or was at any time during the
preceding five years) a member; and (iii) any member of an affiliated service
group within the meaning of Section 414(m) or (o) of the Internal Revenue Code
of which that Person, any corporation described in clause (i) above or any trade
or business described in clause (ii) above is (or, for the purposes of
subsection 10.10 only, was at any time during the preceding five years) a
member.
"ERISA EVENT" means (i) a "reportable event" within the meaning
of Section 4043 of ERISA and the regulations issued thereunder with respect to
any Pension Plan (excluding those for which the provision for 30-day notice to
the PBGC has been waived by regulation); (ii) the failure to meet the minimum
funding standard of Section 412 of the Internal Revenue Code with respect to any
Pension Plan (whether or not waived in accordance with Section 412(d) of the
Internal Revenue Code) or the failure to make by its due date a required
installment under Section 412(m) of the Internal Revenue Code with respect to
any Pension Plan or the failure to make any required contribution to a
Multiemployer Plan; (iii) the provision by the administrator of any Pension Plan
pursuant to Section 4041(a)(2) of ERISA of a notice of intent to terminate such
plan in a distress termination described in Section 4041(c) of ERISA; (iv) the
withdrawal by Company or any of its ERISA Affiliates from any Pension Plan with
two or more contributing sponsors or the termination of any such Pension Plan
resulting in liability pursuant to Sections 4063 or 4064 of ERISA; (v) the
institution by the PBGC of proceedings to terminate any Pension Plan, or the
occurrence of any event or condition which might constitute grounds under ERISA
for the termination of, or the appointment of a trustee to administer, any
Pension Plan; (vi) the imposition of liability on Company or any of its ERISA
Affiliates pursuant to Section 4062(e) or 4069 of ERISA or by reason of the
application of Section 4212(c) of ERISA; (vii) the withdrawal by Company or any
of its ERISA Affiliates in a complete or partial withdrawal (within the meaning
of Sections 4203 and 4205 of ERISA) from any Multiemployer Plan if there is any
potential liability therefor, or the receipt by Company or any of its ERISA
Affiliates of notice from any Multiemployer Plan that it is in reorganization or
insolvency pursuant to Section 4241 or 4245 of ERISA, or that it intends to
terminate or has terminated under Section 4041A or 4042 of ERISA; (viii) the
occurrence of an act or omission which could give rise to the imposition on
Company or any of its ERISA Affiliates of fines, penalties, taxes or related
charges under Chapter 43 of the Internal Revenue Code or under Section 409 or
502(c), (i) or (l) or 4071 of ERISA in respect of any Employee Benefit Plan;
(ix) the assertion of a material claim (other than routine claims for benefits)
against any Employee Benefit Plan other than a Multiemployer Plan or the assets
thereof, or against Company or any of its ERISA Affiliates in connection with
any such Employee Benefit Plan; (x) receipt from the Internal Revenue Service of
notice of the failure of any Pension Plan (or any other Employee Benefit Plan
intended to be qualified under Section 401(a) of the Internal Revenue Code) to
qualify under Section 401(a) of the Internal Revenue Code, or the failure of any
trust forming part of any Pension Plan to qualify for exemption from taxation
under Section 501(a) of the Internal Revenue Code; or (xi) the imposition of a
Lien pursuant to Section 401(a)(29) or 412(n) of the Internal Revenue Code or
pursuant to ERISA with respect
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to any Pension Plan; provided, however, that for all purposes of this Agreement,
no event specified in clauses (i) through (xi) above shall constitute an ERISA
Event if Company and its ERISA Affiliates would not reasonably be expected to
incur liabilities aggregating more than $100,000,000 in connection with such
event and all other such events.
"EVENT OF DEFAULT" means each of the events set forth in Section
10.
"EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended from time to time, and any successor statute.
"EXCLUDED TAXES" means with respect to any Person (i) any Tax
imposed by the jurisdiction in which that Person's principal office (and/or, in
the case of a Lender, its lending office) is located or in which that Person is
deemed to be organized, resident or doing business on all or part of the net
income, profits or gains of that Person (whether worldwide, or only insofar as
such income, profits or gains are considered to arise in or to relate to a
particular jurisdiction, or otherwise), (ii) any Taxes imposed pursuant to
provisions of any laws, treaties, notices or regulations in effect on (and as
interpreted by any relevant taxing authority or agency on) the Closing Date in
the United States of America or Canada or any state or province thereof or
political subdivision of any of the foregoing that are applicable to any of the
Obligations or to any payments thereof made by any Borrower to any Lender except
(a) any such Taxes that are applicable to the Obligations or any such payment
solely by reason of the fact Canada Safeway is doing business in the United
States of America or (b) any withholding tax payable during the continuance of
any Event of Default and (iii) Taxes which a Lender could have avoided in the
ordinary course of business (including by payments of its taxes) without the
incurrence of additional expense.
"EXISTING ACCEPTANCES" has the meaning assigned to that term in
subsection 4.1.
"EXISTING COMPANY LETTERS OF CREDIT" means those certain Letters
of Credit issued and outstanding pursuant to the Existing Credit Agreement and
described on Schedule 3.1 annexed hereto.
"EXISTING CREDIT AGREEMENT" means the Credit Agreement dated as
of April 8, 1997, among Company, Canada Safeway, The Vons Companies, Inc., the
lenders named therein, Bankers Trust Company, as administrative agent,
Scotiabank and Bank of America N.A., as documentation agents, the agents named
therein, and the syndication agents named therein, as amended from time to time.
"FACE AMOUNT" means, in respect of a Draft or an Acceptance, as
the case may be, the amount payable to the holder thereof on its maturity.
"FEDERAL FUNDS EFFECTIVE RATE" means, for any period, a
fluctuating interest rate 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
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published for any day which is a Business Day, the average of the quotations for
such day on such transactions received by Administrative Agent from three
Federal funds brokers of recognized standing selected by Administrative Agent.
"FISCAL YEAR" means, for any purpose, any of the 52-week or
53-week reporting periods used by Company in the financial reports it prepares
for external reporting purposes.
"FIXED RATE LOANS" means Tranche A Domestic Eurodollar Rate
Loans, Tranche A Canadian Eurodollar Rate Loans, Canadian/U.S. Eurodollar Rate
Loans, Tranche B Domestic Eurodollar Rate Loans or Tranche B Canadian Eurodollar
Rate Loans, or any combination thereof.
"FLOATING RATE LOANS" means Tranche A Domestic Base Rate Loans,
Tranche B Domestic Base Rate Loans, Tranche A Canadian Prime Rate Loans, Tranche
A Canadian Base Rate Loans, Tranche B Canadian Prime Rate Loans, Tranche B
Canadian Base Rate Loans or Canadian/U.S. Base Rate Loans, or any combination
thereof.
"FUNDING DATE" means the date any Loan is funded or any
Acceptance is created, as applicable.
"GAAP" means generally accepted accounting principles set forth
in opinions and pronouncements of the Accounting Principles Board of the
American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as may be approved by a significant segment of
the accounting profession, in each case as the same are applicable to the
circumstances as of the date of determination.
"HAZARDOUS MATERIALS" means (i) any chemical, material or
substance at any time defined as or included in the definition of "hazardous
substances", "hazardous wastes", "hazardous materials", "extremely hazardous
waste", "restricted hazardous waste", "infectious waste", "toxic substances" or
any other formulations intended to define, list or classify substances by reason
of deleterious properties such as ignitability, corrosivity, reactivity,
carcinogenicity, toxicity, reproductive toxicity, "TCLP toxicity" or "EP
toxicity" or words of similar import under any applicable Environmental Laws or
publications promulgated pursuant thereto; (ii) any oil, petroleum, petroleum
fraction or petroleum derived substance; (iii) any drilling fluids, produced
waters and other wastes associated with the exploration, development or
production of crude oil, natural gas or geothermal resources; (iv) any flammable
substances or explosives; (v) any radioactive materials; (vi) asbestos in any
form; (vii) urea formaldehyde foam insulation; (viii) electrical equipment which
contains any oil or dielectric fluid containing levels of polychlorinated
biphenyls in excess of fifty parts per million; and (ix) pesticides.
"INDEBTEDNESS," as applied to any Person, means (i) all
indebtedness for borrowed money, (ii) that portion of obligations with respect
to Capital Leases that is properly classified as a liability on a balance sheet
in conformity with GAAP, (iii) notes payable and drafts accepted representing
extensions of credit whether or not representing
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obligations for borrowed money, (iv) any obligation owed for all or any part of
the deferred purchase price of property or services (excluding any such
obligations incurred under ERISA), which purchase price is (a) due more than six
months from the date of incurrence of the obligation in respect thereof or (b)
evidenced by a note or similar written instrument, and (v) all indebtedness
secured by any Lien on any property or asset owned or held by that Person
regardless of whether the indebtedness secured thereby shall have been assumed
by that Person or is nonrecourse to the credit of that Person.
"INDEMNITEE" has the meaning assigned to that term in subsection
13.3.
"INDEMNITY" means the Indemnity dated as of May 24, 2001 from
the Canadian Lenders hereunder to the Old Syndicate Lenders (as defined in the
Indemnity).
"INSOLVENCY LAWS" means the Bankruptcy Code, the Bankruptcy and
Insolvency Act (Canada) or any comparable law of Canada or any other applicable
bankruptcy, insolvency or similar law now or hereafter in effect in the United
States of America or any state thereof or Canada or any province thereof.
"INTEREST COVERAGE RATIO" means, as at any date of
determination, the ratio (rounded down to the nearest one-hundredth) of (i)
Consolidated Adjusted EBITDA to (ii) Consolidated Interest Expense, in each case
for the four fiscal quarter period ending with the most recently completed
fiscal quarter of Company.
"INTEREST PAYMENT DATE" means (i) with respect to any Floating
Rate Loan, each Quarterly Payment Date; (ii) with respect to any Swing Line
Loan, the last day of each month; (iii) with respect to any Fixed Rate Loan, the
last day of each Interest Period applicable to such Loan; provided that in the
case of each Interest Period of longer than three months "Interest Payment Date"
shall also include each date that is three months, or an integral multiple
thereof, after the commencement of such Interest Period, and (iv) in the case of
any Negotiated Rate Loan, the dates mutually agreed upon by Company and the
applicable Lender.
"INTEREST PERIOD" has the meaning assigned to that term in
subsection 2.2B.
"INTEREST RATE AGREEMENT" means any interest rate swap
agreement, interest rate cap agreement, interest rate collar agreement or other
similar agreement or arrangement designed to protect Company or any of its
Subsidiaries against fluctuations in interest rates.
"INTEREST RATE DETERMINATION DATE" means, with respect to any
Interest Period, the second Business Day prior to the first day of such Interest
Period.
"INTERNAL REVENUE CODE" means the Internal Revenue Code of 1986,
as amended to the date hereof and from time to time hereafter.
"INVESTMENT" means any loans, advances, capital contributions
and transfers of assets (except for transfers for cash and/or other property
other than securities in an amount or having a fair value, as reasonably
determined by Company, equal to the fair value
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of the assets transferred), and all purchases and other acquisitions for
consideration by Company or any of its Subsidiaries of evidences of
indebtedness, capital stock or other securities.
"ISSUING LENDER" means, with respect to any Letter of Credit,
the Lender which agrees or is otherwise obligated to issue such Letter of
Credit, determined as provided in subsection 3.1B(ii), it being understood that
Deutsche Bank may designate an Affiliate, including Bankers Trust Company, as
"Lender" solely for purposes of the issuance of a Letter of Credit (including an
Existing Letter of Credit) and, for purposes hereof, such Affiliate shall be
deemed to be a Lender and an Issuing Lender.
"JPMORGAN" has the meaning assigned to that term in the
introduction to this Agreement.
"KKR" means Kohlberg Kravis ▇▇▇▇▇▇▇ & Co., L.P., a Delaware
limited partnership.
"KKR ASSOCIATES" means KKR Associates, a New York limited
partnership under common control with KKR.
"LENDER" and "LENDERS" means the persons identified as "Lenders"
and listed on the signature pages of this Agreement, together with their
successors and permitted assigns pursuant to subsection 13.1 (including, without
limitation, any U.S. Affiliate).
"LETTER OF CREDIT" or "LETTERS OF CREDIT" means Commercial
Letters of Credit and Standby Letters of Credit issued or to be issued by
Issuing Lenders for the account of Company pursuant to subsection 3.1.
"LETTER OF CREDIT USAGE" means, as at any date, (1) with respect
to all Domestic Lenders, the sum of (i) the maximum aggregate amount which is or
at any time thereafter may become available for drawing under all Letters of
Credit then outstanding plus (ii) the aggregate amount of all drawings under
Letters of Credit honored by Issuing Lenders and not theretofore reimbursed by
Company (including any such reimbursement out of the proceeds of Loans pursuant
to subsection 3.3B) and (2) with respect to any Domestic Lender, such Domestic
Lender's Tranche A Domestic Pro Rata Share of the sum of the amounts described
in the preceding clauses (i) and (ii). For purposes of this definition, any
amount described in clauses (i) or (ii) of the preceding sentence which is
denominated in Canadian Dollars shall be valued in Dollar Equivalents as of such
date.
"LIEN" means any lien, mortgage, pledge, assignment, security
interest, charge or encumbrance of any kind (including any conditional sale or
other title retention agreement, any lease in the nature thereof, and any
agreement to give any security interest).
"LOAN DOCUMENTS" means this Agreement (including the Subsidiary
Borrower Guaranty), the Notes, the Letters of Credit (and any applications for,
or reimbursement agreements or other documents or certificates executed by
Company in favor of an Issuing Lender relating to, the Letters of Credit), the
Drafts, the Acceptances, any
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collateral account agreement executed and delivered pursuant to Section 10, the
Special Funding Procedures Letter Agreement and any other agreements or
instruments executed and delivered by any Borrower hereunder or thereunder or in
connection herewith or therewith.
"LOAN PARTIES" means each of the Borrowers.
"LOANS" means Domestic Loans made by Domestic Lenders to Company
pursuant to subsections 2.1A(i), 2.1A(iii), 2.1A(v) and 2.1A(vi) or Canadian
Loans made by Canadian Lenders to any Borrower pursuant to subsections 2.1A(ii),
2.1A(iv) and 2.1A(v), or any combination thereof.
"MANAGEMENT INVESTORS" means each senior management officer or
employee, or prospective senior management officer or employee, of Company, any
Unrestricted Subsidiary, any Affiliate of Company or any of their respective
Subsidiaries who owns or will own or will have the right to acquire Company's
Common Stock.
"MARGIN STOCK" has the meaning assigned to that term in
Regulation U of the Board of Governors of the Federal Reserve System as in
effect from time to time.
"MATERIAL ADVERSE EFFECT" means (i) a material adverse effect
upon the business, operations, properties, assets or condition (financial or
otherwise) of Company and its Subsidiaries (other than Unrestricted
Subsidiaries), taken as a whole, or (ii) the material impairment of the ability
of Company to perform, or of any Primary Agent or Lender to enforce, the
Obligations in the aggregate.
"MATERIAL ASSET SALE" means the sale, in a single transaction or
series of related transactions, by Company or any of its Subsidiaries (other
than Unrestricted Subsidiaries) to any Person other than Company or any of its
Wholly-Owned Subsidiaries of (i) any of the stock of any of Company's
Subsidiaries, or (ii) any other assets (whether tangible or intangible) of
Company or any of its Subsidiaries outside of the ordinary course of business;
provided that the aggregate Book Value of all assets transferred in such sale
(including, without limitation, the assets of any Subsidiary the stock of which
is so transferred) equals or exceeds 20% of the Book Value of the consolidated
assets of Company and its Subsidiaries (other than Unrestricted Subsidiaries).
"MATERIAL SUBSIDIARY" means, at any date, any domestic
Subsidiary of Company (other than any Unrestricted Subsidiary) whose tangible
assets have a Book Value equal to or exceeding 5% of the Book Value of the
consolidated tangible assets of Company and its Subsidiaries.
"MOODYS" means ▇▇▇▇▇'▇ Investors Service, Inc.
"MULTIEMPLOYER PLAN" means a "multiemployer plan", as defined in
Section 3(37) of ERISA, to which Company or any of its ERISA Affiliates is
contributing, or ever has contributed, or to which Company or any of its ERISA
Affiliates has, or ever has had, an obligation to contribute.
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"NEGOTIATED RATE" means, with respect to any Negotiated Rate
Loan, the fixed rate of interest per annum agreed upon by Company and the
Domestic Lender funding such Loan.
"NEGOTIATED RATE LOAN" has the meaning set forth in subsection
2.1A(vi).
"NOTES" means any promissory notes issued by Company or Canada
Safeway pursuant to subsection 2.1E, substantially in the form of Exhibit IV-A
or IV-B annexed hereto, respectively, to evidence the Loans of any Lenders, as
notes may be amended, supplemented or otherwise modified from time to time.
"NOTICE OF BORROWING" means a notice substantially in the form
of Exhibit I annexed hereto delivered by a Borrower to Administrative Agent
pursuant to subsection 2.1B with respect to a proposed borrowing.
"NOTICE OF CONVERSION/CONTINUATION" means a notice substantially
in the form of Exhibit II annexed hereto delivered by a Borrower to
Administrative Agent pursuant to subsection 2.2D with respect to a proposed
conversion or continuation of the applicable basis for determining the interest
rate with respect to the Loans specified therein.
"NOTICE OF ISSUANCE OF LETTER OF CREDIT" means a notice
substantially in the form of Exhibit III annexed hereto delivered by Company to
Administrative Agent pursuant to subsection 3.1B(i) with respect to the proposed
issuance of a Letter of Credit.
"OBLIGATIONS" means all obligations of every nature of Borrowers
from time to time owed to Primary Agents, Lenders or any of them under the Loan
Documents, whether for principal, interest, reimbursement of amounts drawn under
Letters of Credit, fees, expenses, indemnification or otherwise.
"OFFICERS' CERTIFICATE" means, as applied to any corporation, a
certificate executed on behalf of such corporation by any of its executive
officers and by any of its vice presidents; provided that every Officers'
Certificate with respect to the compliance with a condition precedent to the
making of any Loans hereunder shall include (i) a statement that the officer or
officers making or giving such Officers' Certificate have read such condition
and any definitions or other provisions contained in this Agreement relating
thereto, (ii) a statement that, in the opinion of the signers, they have made or
have caused to be made such examination or investigation as is necessary to
enable them to express an informed opinion as to whether or not such condition
has been complied with, and (iii) a statement as to whether, in the opinion of
the signers, such condition has been complied with.
"PBGC" means the Pension Benefit Guaranty Corporation (or any
successor thereto).
"PENSION PLAN" means any Employee Benefit Plan, other than a
Multiemployer Plan, which is subject to Section 412 of the Internal Revenue Code
or Section 302 of ERISA.
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"PERMITTED ENCUMBRANCES" means the following types of Liens
(other than any such Lien imposed pursuant to Section 401(a)(29) or 412(n) of
the Internal Revenue Code or by ERISA):
(i) Liens for taxes, assessments or governmental charges or
claims the payment of which is not, at the time, required by subsection
8.3;
(ii) statutory Liens of landlords and Liens of carriers,
warehousemen, mechanics and materialmen and other Liens imposed by law
incurred in the ordinary course of business for sums not yet delinquent
or being contested in good faith, if such reserve or other appropriate
provision, if any, as shall be required by GAAP shall have been made
therefor;
(iii) Liens incurred or deposits made in the ordinary course of
business in connection with workers' compensation, unemployment
insurance and other types of social security (and related standby
letters of credit), or to secure the performance of tenders, statutory
obligations, surety and appeal bonds, bids, leases, government
contracts, trade contracts, performance and return-of-money bonds and
other similar obligations (exclusive of obligations for the payment of
borrowed money);
(iv) any attachment or judgment Lien not constituting an Event
of Default under subsection 10.8;
(v) leases or subleases or licenses of occupancy granted to
others not interfering in any material respect with the ordinary conduct
of the business of Company or any of its Subsidiaries;
(vi) easements, rights-of-way, restrictions, minor defects,
encroachments or irregularities in title and other similar charges or
encumbrances not interfering in any material respect with the ordinary
conduct of the business of Company or any of its Subsidiaries;
(vii) any (a) interest or title of a lessor or sublessor under
any lease, (b) restriction or encumbrance that the interest or title of
such lessor or sublessor may be subject to, or (c) subordination of the
interest of the lessee or sublessee under such lease to any restriction
or encumbrance referred to in the preceding clause (b);
(viii) Liens arising from filing UCC financing statements
relating solely to leases permitted by this Agreement;
(ix) Liens in favor of customs and revenue authorities arising
as a matter of law to secure payment of customs duties in connection
with the importation of goods;
(x) Liens encumbering deposits made to secure obligations
arising from statutory, regulatory, contractual or warranty requirements
of Company and its Subsidiaries (excluding deposits securing the
repayment of Indebtedness);
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(xi) Liens encumbering customary initial deposits and margin
deposits, and other Liens incurred in the ordinary course of business
and which are within the general parameters customary in the industry
securing obligations under commodities agreements; and
(xii) Liens securing reimbursement obligations under Commercial
Letters of Credit or bankers' acceptance facilities, which Liens
encumber documents and other property to be acquired by drawings under
such Commercial Letters of Credit or drafts accepted under such bankers'
acceptance facilities.
"PERSON" means and includes natural persons, corporations,
limited partnerships, general partnerships, limited liability companies, limited
liability partnerships, joint stock companies, joint ventures, associations,
companies, trusts, banks, trust companies, land trusts, business trusts or other
organizations, whether or not legal entities, and governments and agencies and
political subdivisions thereof.
"POTENTIAL EVENT OF DEFAULT" means a condition or event that,
after notice or lapse of time or both, would constitute an Event of Default.
"PRICING LEVEL" means as of any date, the higher Pricing Level,
whether (in descending order from the highest Pricing Level to the lowest
Pricing Level) Pricing Level A, Pricing Level B, Pricing Level C, Pricing Level
D, Pricing Level E, Pricing Level F, or Pricing Level G, that corresponds to
either (a) Company's unsecured senior debt ratings from Moodys and S&P (the more
creditworthy of such ratings being used in the case of a split rating) or (b)
Company's Interest Coverage Ratio as set forth in the most recent effective
Pricing Level Determination Certificate delivered in accordance with the
provisions of subsection 8.1(iv); provided that, notwithstanding anything herein
to the contrary, from the Closing Date to the date on which the first Pricing
Level Determination Certificate is delivered with respect to Company's financial
statements for the fourth fiscal quarter of 2001, the applicable Pricing Level
shall not be more favorable to a Borrower than Pricing Level C:
Debt Ratings/Interest
Pricing Level Coverage Ratio
------------- ---------------------
Pricing Level A: Aa2 or better by Moodys or AA
or better by S&P or Interest
Coverage Ratio of 8.00:1.00 or
higher
Pricing Level B: Aa3 by Moodys or AA -- by S&P
or Interest Coverage Ratio of
at least 7.00:1.00 but less
than 8.00:1.00
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Pricing Level C: A1 by Moodys or A+ by S&P or
Interest Coverage Ratio of at
least 6.25:1.00 but less than
7.00:1.00
Pricing Level D: A2 by Moodys or A by S&P or
Interest Coverage Ratio of at
5.75:1.00 but less than
6.25:1.00
Pricing Level E: A3 by Moodys or A -- by S&P or
Interest Coverage Ratio of at
least 5.25:1.00 but less than
5.75:1.00
Pricing Level F: Baa1 by Moodys or BBB+ by S&P
or Interest Coverage Ratio of
at least 4.75:1.00 but less
than 5.25:1.00
Pricing Level G: Baa2 or below by Moodys or BBB
or below by S&P or Interest
Coverage Ratio below 4.75:1.00
For the purposes of determining the Pricing Level, a Pricing Level Determination
Certificate shall be deemed effective on the next Business Day following
Administrative Agent's receipt thereof, and the Pricing Level shall change on
such Business Day to the extent necessary to reflect Company's debt rating and
Interest Coverage Ratio as set forth in such Pricing Level Determination
Certificate.
"PRICING LEVEL DETERMINATION CERTIFICATE" means a certificate
substantially in the form of Exhibit XI annexed hereto delivered to
Administrative Agent and Lenders by Company pursuant to subsection 8.1(iv).
"PRIMARY AGENT" and "PRIMARY AGENTS" means Scotiabank, in its
capacity as Administrative Agent, Deutsche Bank and Chase, in their respective
capacities as Co-Syndication Agents, and Deutsche Banc Alex. ▇▇▇▇▇ and JPMorgan,
in their respective capacities as Co-Arrangers, and also means and includes any
successor to the Administrative Agent, the Co-Syndication Agents or the
Co-Arrangers appointed pursuant to subsection 11.5.
"QUARTERLY PAYMENT DATE" means the last Business Day of March,
June, September and December in each calendar year.
"REGISTER" has the meaning assigned to that term in subsection
2.1D.
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"REGULATION D" means Regulation D of the Board of Governors of
the Federal Reserve System, as in effect from time to time.
"REIMBURSEMENT DATE" has the meaning assigned to that term in
subsection 3.3B.
"RELEASE" means any release, spill, emission, leaking, pumping,
pouring, injection, escaping, deposit, disposal, discharge, dispersal, dumping,
leaching or migration of Hazardous Materials into the indoor or outdoor
environment (including, without limitation, the abandonment or disposal of any
barrels, containers or other closed receptacles containing any Hazardous
Materials), including the movement of any Hazardous Material through the air,
soil, surface water, groundwater or property.
"REPURCHASED STOCK" has the meaning assigned to that term in
subsection 9.1A.
"REQUISITE LENDERS" means Lenders having or holding 51% or more
of the aggregate Tranche A Domestic Loan Exposure, Tranche A Canadian Loan
Exposure, Tranche B Domestic Loan Exposure and Tranche B Canadian Loan Exposure
of all Lenders.
"SCHEDULE I LENDER" means any Canadian Lender that is a bank
referred to in Schedule I to the Bank Act (Canada), S.C. 1991, c.46, as amended.
"SCHEDULE I REFERENCE BANKS" means Scotiabank and CIBC.
"SCHEDULE II LENDER" means any Canadian Lender that is not a
Schedule I Lender.
"SCHEDULE II REFERENCE BANKS" means Deutsche Bank Canada and The
Chase Manhattan Bank, Toronto Branch.
"SCOTIABANK" has the meaning assigned to that term in the
introduction to this Agreement.
"SEC" means the Securities and Exchange Commission or any
successor thereto.
"SECURITIES ACT" means the Securities Act of 1933, as amended
from time to time, and any successor statute.
"SOLVENT" means, with respect to any Person, that as of the date
of determination, (i) the then fair saleable value of the property of such
Person is (a) greater than the total amount of liabilities (including reasonably
anticipated liabilities with respect to contingent obligations) of such Person
and (b) greater than the amount that will be required to pay the probable
liabilities on such Person's then existing debts as they become absolute and
matured considering all financing alternatives and potential asset sales
reasonably available to such Person, and (ii) such person has not incurred and
does not intend to incur, or does not believe that it will incur, debts beyond
its ability to pay such debts as they become due.
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"SPECIAL FUNDING PROCEDURES LETTER AGREEMENT" means a letter
agreement substantially in the form of Exhibit XVI annexed hereto.
"S&P" means Standard & Poors Ratings Services, a division of The
▇▇▇▇▇▇-▇▇▇▇ Companies, Inc.
"SPV" has the meaning assigned to that term in subsection 13.1.
"STANDBY LETTER OF CREDIT" means any standby letter of credit or
similar instrument issued for the purpose of supporting (i) Indebtedness
incurred by any joint venture to which Company or any of its Subsidiaries is a
party for working capital and general business purposes, (ii) obligations of
Company or any of its Subsidiaries with respect to capital calls or similar
requirements in respect of joint ventures to which Company or such Subsidiary is
a party, (iii) workers' compensation liabilities and directors and officers
insurance of Company or any of its Subsidiaries, (iv) the obligations of third
party insurers of Company or any of its Subsidiaries arising by virtue of the
laws of any jurisdiction requiring third party insurers, (v) Indebtedness of
Company or any of its Subsidiaries or Casa Ley in respect of industrial revenue
or development bonds or financings, (vi) obligations with respect to capital or
operating leases, (vii) performance, payment, deposit or surety obligations of
Company or any of its Subsidiaries, in any case if required by law or
governmental rule or regulation or in accordance with custom and practice in the
industry, (viii) the performance of obligations of Company and its Subsidiaries
incurred in connection with the sale of any asset of Company or any of its
Subsidiaries, (ix) the payment of trade payables of Company or any of its
Subsidiaries which payables are incurred on terms customary in the industry, (x)
indebtedness (other than Subordinated Indebtedness) which was previously secured
in whole or in part by assets which were but are no longer owned by Company and
its Subsidiaries, (xi) the obligations of Company or any of its Subsidiaries
with respect to any judgments that are stayed pending appeal (including, any
appeal bonds or other security required to obtain a stay pending appeal), or
(xii) other obligations approved by Deutsche Bank, in its capacity as
Co-Syndication Agent, in its reasonable discretion.
"SUBORDINATED INDEBTEDNESS" means (i) the Indebtedness of
Company evidenced by the Subordinated Securities and (ii) any other Indebtedness
of Company subordinated in right of payment to the Obligations.
"SUBORDINATED SECURITIES" means Company's 10% Senior
Subordinated Notes due 2001, 9.875% Senior Subordinated Debentures due 2007, and
9.65% Senior Subordinated Debentures due 2004.
"SUBSIDIARY" means, with respect to any Person, any corporation,
partnership, association, joint venture or other business entity of which more
than 50% of the total voting power of shares of capital stock or other ownership
interests entitled (without regard to the occurrence of any contingency) to vote
in the election of the Person or Persons (whether directors, managers, trustees
or other Persons performing similar functions) having the power to direct or
cause the direction of the management and policies thereof is at the time owned
or controlled, directly or indirectly, by that Person or one or more of the
other Subsidiaries of that Person or a combination thereof.
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"SUBSIDIARY BORROWER GUARANTY" means the guaranty by Company of
the Subsidiary Borrower Obligations set forth in Section 12.
"SUBSIDIARY BORROWER OBLIGATIONS" has the meaning assigned to
that term in Section 12.
"SWING LINE LENDERS" means, in respect of the Tranche A Domestic
Swing Line Loans, Deutsche Bank, Chase and Scotiabank or any Lender succeeding
such Lender as a Swing Line Lender, and in respect of the Tranche A Canadian
Swing Line Loans, Scotiabank.
"SWING LINE LOANS" means any Tranche A Domestic Swing Line
Loans, any Tranche A Canadian Swing Lines Loans or any combination thereof.
"TAX" or "TAXES" means any present or future governmental tax,
levy, impost, duty, charge, fee, deduction or withholding of any nature and
whatever called, by whomsoever, on whomsoever and wherever imposed, levied,
collected, withheld or assessed.
"TOTAL UTILIZATION OF TRANCHE A CANADIAN COMMITMENTS" means, (i)
as to Canadian Lenders at any date, the sum of (a) the aggregate principal
amount of all outstanding Tranche A Canadian Loans, with all Tranche A Canadian
Loans denominated in Canadian Dollars valued in Dollar Equivalents, plus (b) the
aggregate Acceptance Usage in respect to the Tranche A Canadian Commitments; or
(ii) as to any Canadian Lender at any date of determination, the sum of (x) the
aggregate principal amount of all outstanding Tranche A Canadian Loans (other
than Tranche A Canadian Swing Line Loans) made by such Lender (and its U.S.
Affiliate) with all such Loans denominated in Canadian Dollars valued in Dollar
Equivalents plus (y) the Acceptance Usage of such Lender in respect to the
Tranche A Canadian Commitments, plus (z) the aggregate principal amount of such
Lender's participations (if any) in Tranche A Canadian Swing Line Loans with all
such Loans denominated in Canadian Dollars valued in Dollar Equivalents. Unless
the context otherwise requires, Total Utilization of Tranche A Canadian
Commitments shall be calculated in accordance with clause (i) above.
"TOTAL UTILIZATION OF TRANCHE A DOMESTIC COMMITMENTS" means, (i)
as to Domestic Lenders at any date, the sum of (a) the aggregate principal
amount of all outstanding Tranche A Domestic Loans plus (b) the Letter of Credit
Usage or (ii) as to any Domestic Lender at any date of determination, the sum of
(x) the aggregate principal amount of all outstanding Tranche A Domestic Loans
(other than Tranche A Domestic Swing Line Loans and Negotiated Rate Loans) made
by such Lender plus (y) the Letter of Credit Usage of such Lender plus (z) the
aggregate principal amount of such Lender's participations (if any) in Tranche A
Domestic Swing Line Loans. Unless the context otherwise requires, Total
Utilization of Tranche A Domestic Commitments shall be calculated in accordance
with clause (i) above.
"TOTAL UTILIZATION OF TRANCHE B CANADIAN COMMITMENTS" means, (i)
as to Canadian Lenders at any date, the sum of (a) the aggregate principal
amount of all outstanding Tranche B Canadian Loans, with all Tranche B Canadian
Loans denominated in
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Canadian Dollars valued in Dollar Equivalents, plus (b) the aggregate Acceptance
Usage with respect to the Tranche B Canadian Commitments or (ii) as to any
Canadian Lender at any date of determination, the sum of (x) the aggregate
principal amount of all outstanding Tranche B Canadian Loans made by such Lender
(and its U.S. Affiliate), with all such Canadian Loans denominated in Canadian
Dollars valued in Dollar Equivalents, plus (y) the Acceptance Usage of such
Lender with respect to Tranche B Canadian Commitments.
"TOTAL UTILIZATION OF TRANCHE B DOMESTIC COMMITMENTS" means, (i)
as to Domestic Lenders at any date, the aggregate principal amount of all
outstanding Tranche B Domestic Loans or (ii) as to any Domestic Lender at any
date of determination, the aggregate principal amount of all outstanding Tranche
B Domestic Loans made by such Lender.
"TRANCHE A ACCEPTANCE" has the meaning assigned to that term in
subsection 4.1.
"TRANCHE A CANADIAN BASE RATE LOANS" means Tranche A Canadian
Loans (other than Tranche A Canadian Swing Line Loans) denominated in Dollars
advanced to Canada Safeway and bearing interest at rates determined by reference
to the Canadian Base Rate as provided in subsection 2.2A.
"TRANCHE A CANADIAN COMMITMENT" means the commitment of a
Canadian Lender to make Tranche A Canadian Loans to Company or Canada Safeway
pursuant to subsection 2.1A(ii), and "TRANCHE A CANADIAN COMMITMENTS" means such
commitments of all Canadian Lenders in the aggregate.
"TRANCHE A CANADIAN EURODOLLAR RATE LOANS" means any Tranche A
Canadian Loans denominated in Dollars advanced to Canada Safeway and bearing
interest at rates determined by reference to the Canadian Eurodollar Rate as
provided in subsection 2.2A.
"TRANCHE A CANADIAN LENDER" means any Canadian Lender having
Tranche A Canadian Commitments.
"TRANCHE A CANADIAN LOAN EXPOSURE" means, with respect to any
Canadian Lender as of any date, (a) prior to the termination of the Tranche A
Canadian Commitments, that Lender's Tranche A Canadian Commitment, and (b) after
the termination of the Tranche A Canadian Commitments, the sum of (x) the
aggregate outstanding principal amount of the Tranche A Canadian Loans of such
Canadian Lender (it being understood and agreed for the purposes hereof that the
Canadian/U.S. Loans of any U.S. Affiliate of any Canadian Lender in respect of
the Tranche A Canadian Commitment are Tranche A Canadian Loans of such Canadian
Lender and not Tranche A Domestic Loans of such U.S. Affiliate) plus (y) without
duplication, the aggregate outstanding amount of Acceptances in respect to
Tranche A Commitments created by such Canadian Lender, as measured by the Face
Amounts of the applicable Drafts (with all such Loans denominated in Canadian
Dollars and all such Face Amounts valued in Dollar Equivalents) plus (z) the
aggregate principal amount of such Lender's participations (if any) in Tranche A
Canadian Swing Line Loans with all such Loans denominated in Canadian Dollars
valued in Dollar Equivalents.
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"TRANCHE A CANADIAN LOANS" means the Tranche A Canadian Loans
made by Canadian Lenders pursuant to their Tranche A Canadian Commitments to
Company or Canada Safeway (including, without limitation, any Canadian/U.S.
Loans) pursuant to subsection 2.1A(ii) and the Tranche A Canadian Swing Line
Loans, or any combination thereof.
"TRANCHE A CANADIAN PRIME RATE LOANS" means Tranche A Canadian
Loans (other than Tranche A Canadian Swing Line Loans) advanced to Canada
Safeway and denominated in Canadian Dollars and bearing interest at rates
determined by reference to the Canadian Prime Rate as provided in subsection
2.2A.
"TRANCHE A CANADIAN PRO RATA SHARE" means, with respect to any
Canadian Lender, (a) prior to the termination of the Tranche A Canadian
Commitments, the Tranche A Canadian Commitment of such Canadian Lender as a
percentage of the sum of the Tranche A Canadian Commitments of all Canadian
Lenders, and (b) after the termination of the Tranche A Canadian Commitments,
the outstanding Tranche A Canadian Loans made by such Canadian Lender (it being
understood and agreed for the purposes hereof that the Canadian/U.S. Loans of
any U.S. Affiliate of any Canadian Lender in respect of the Tranche A Canadian
Commitments are Tranche A Canadian Loans of such Canadian Lender and not Tranche
A Domestic Loans of such U.S. Affiliate) as a percentage of the sum of the
Tranche A Canadian Loans made by all Canadian Lenders.
"TRANCHE A CANADIAN SWING LINE COMMITMENT" means the commitment
of Swing Line Lender to make Tranche A Canadian Swing Line Loans pursuant to
subsection 2.1A(v).
"TRANCHE A CANADIAN SWING LINE LOANS" has the meaning assigned
to that term in subsection 2.1A(v).
"TRANCHE A DOMESTIC BASE RATE LOANS" means Tranche A Domestic
Loans advanced to Company (excluding Tranche A Domestic Swing Line Loans)
bearing interest at rates determined by reference to the Domestic Base Rate as
provided in subsection 2.2A.
"TRANCHE A DOMESTIC COMMITMENT" means the commitment of a
Domestic Lender to make Tranche A Domestic Loans to Company pursuant to
subsection 2.1A(i), and "TRANCHE A DOMESTIC COMMITMENTS" means such commitments
of all Domestic Lenders in the aggregate.
"TRANCHE A DOMESTIC EURODOLLAR RATE LOANS" means Tranche A
Domestic Loans (excluding any Negotiated Rate Loans) denominated in Dollars,
advanced to Company and bearing interest at rates determined by reference to the
Adjusted Eurodollar Rate as provided in subsection 2.2A.
"TRANCHE A DOMESTIC LENDER" means any Domestic Lender having a
Tranche A Domestic Commitment.
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"TRANCHE A DOMESTIC LOAN EXPOSURE" means, with respect to any
Domestic Lender as of any date, (a) prior to the termination of the Tranche A
Domestic Commitments, that Lender's Tranche A Domestic Commitment, and (b) after
the termination of the Tranche A Domestic Commitments, the sum of (w) the
aggregate outstanding principal amount of the Tranche A Domestic Loans of that
Lender (it being understood and agreed for the purposes hereof that the
Canadian/U.S. Loans of any U.S. Affiliate of any Canadian Lender in respect of
the Tranche A Canadian Commitments are Tranche A Canadian Loans of such Canadian
Lender and not Tranche A Domestic Loans of such U.S. Affiliate) plus (x) in the
event that Lender is an Issuing Lender, the aggregate Letter of Credit Usage in
respect of all Letters of Credit issued by that Lender (in each case net of any
participations purchased by other Lenders in any such Letter of Credit or any
unreimbursed drawings under such Letters of Credit) plus (y) the aggregate
amount of all participations purchased by that Lender in Letters of Credit or in
any drawings thereunder honored by Issuing Lenders and not theretofore
reimbursed by Company plus (z) the aggregate principal amount of that Lender's
participations (if any) in Tranche A Domestic Swing Line Loans.
"TRANCHE A DOMESTIC LOANS" means the Tranche A Domestic Loans
made by Domestic Lenders pursuant to their Tranche A Domestic Commitments, to
Company pursuant to subsection 2.1A(i), the Tranche A Domestic Swing Line Loans
and the Negotiated Rate Loans, or any combination thereof.
"TRANCHE A DOMESTIC PRO RATA SHARE" means, with respect to any
Domestic Lender, (a) prior to the termination of the Tranche A Domestic
Commitments, the Tranche A Domestic Commitment of such Domestic Lender as a
percentage of the sum of the Tranche A Domestic Commitments of all Domestic
Lenders, and (b) after the termination of the Tranche A Domestic Commitments,
the outstanding Tranche A Domestic Loans made by such Domestic Lender (it being
understood and agreed for the purposes hereof that the Canadian/U.S. Loans of
any U.S. Affiliate of any Canadian Lender in respect of the Tranche A Canadian
Commitments are Tranche A Canadian Loans of such Canadian Lender and not Tranche
A Domestic Loans of such U.S. Affiliate) as a percentage of the sum of the
Tranche A Domestic Loans made by all Domestic Lenders.
"TRANCHE A DOMESTIC SWING LINE COMMITMENT" means the commitment
of Swing Line Lender to make Tranche A Domestic Swing Line Loans pursuant to
subsection 2.1A(v).
"TRANCHE A DOMESTIC SWING LINE PRO RATA SHARE" means the
percentage assigned to each Swing Line Lender set forth in Schedule 2.1 annexed
hereto.
"TRANCHE A DOMESTIC SWING LINE LOANS" has the meaning assigned
to that term in subsection 2.1A(v).
"TRANCHE A EXTENSION REQUEST" means written notice substantially
in the form of Exhibit IX annexed hereto to be delivered by Company in
accordance with the provisions of subsection 2.7 to request a one-year extension
of the Tranche A Termination Date then in effect.
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"TRANCHE A FACILITY FEE PERCENTAGE" means, as of any date, the
percentage per annum set forth below that corresponds to the Pricing Level in
effect on such date:
Tranche A Facility
Fee Percentage
Pricing Level (in basis points)
------------- ------------------
Pricing Level A: 9.00
Pricing Level B: 9.50
Pricing Level C: 10.00
Pricing Level D: 12.00
Pricing Level E: 12.00
Pricing Level F: 14.50
Pricing Level G: 17.00
The Tranche A Facility Fee Percentage shall change as of the opening of business
on any day that the Pricing Level changes pursuant to the definition of "Pricing
Level."
"TRANCHE A PRICING MARGIN" means, as of any date, the Tranche A
Pricing Margin set forth below that corresponds to the Pricing Level in effect
on such date:
Tranche A
Pricing Margin
Pricing Level (in basis points)
------------- -----------------
Pricing Level A: 11.00
Pricing Level B: 13.00
Pricing Level C: 15.00
Pricing Level D: 15.50
Pricing Level E: 18.00
Pricing Level F: 20.50
Pricing Level G: 23.00
The Tranche A Pricing Margin shall change as of the opening of business on any
day that the Pricing Level changes pursuant to the definition of "Pricing
Level."
"TRANCHE A TERMINATION DATE" means May 24, 2006 or, with respect
to each Lender, such subsequent date to which the Tranche A Termination Date is
extended by such Lender pursuant to subsection 2.7 (it being understood that the
Tranche A Termination Date of any Lender not consenting to such extension shall
not be extended beyond the Tranche A Termination Date then in effect for such
Lender).
"TRANCHE B ACCEPTANCE" has the meaning assigned to that term in
subsection 4.1.
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"TRANCHE B CANADIAN BASE RATE LOANS" means Tranche B Canadian
Loans advanced to Canada Safeway bearing interest at rates determined by
reference to the Canadian Base Rate as provided in subsection 2.2A.
"TRANCHE B CANADIAN COMMITMENT" means the commitment of a
Canadian Lender to make Tranche B Canadian Loans to Company or Canada Safeway
pursuant to subsection 2.1A(iv), and "TRANCHE B CANADIAN COMMITMENTS" means such
commitments of all Canadian Lenders in the aggregate.
"TRANCHE B CANADIAN EURODOLLAR RATE LOANS" means Tranche B
Domestic Loans denominated in Dollars, advanced to Canada Safeway and bearing
interest at rates determined by reference to the Adjusted Eurodollar Rate as
provided in subsection 2.2A.
"TRANCHE B CANADIAN LENDER" means any Canadian Lender having
Tranche B Canadian Commitments.
"TRANCHE B CANADIAN LOAN EXPOSURE" means, with respect to any
Canadian Lender as of any date, (a) prior to the termination of the Tranche B
Canadian Commitments, that Lender's Tranche B Canadian Commitment, and (b) after
the termination of the Tranche B Canadian Commitments, the sum or (x) aggregate
outstanding principal amount of the Tranche B Canadian Loans of that Lender plus
(y) without duplication, the aggregate outstanding amount of Acceptances in
respect of the Tranche B Canadian Commitments created by such Canadian Lender,
as measured by the Face Amounts of the applicable Drafts (with all such Loans
denominated in Canadian Dollars and all such Face Amounts valued in Dollar
Equivalents).
"TRANCHE B CANADIAN LOANS" means the Tranche B Canadian Loans
made by Canadian Lenders pursuant to their Tranche B Canadian Commitments to
Company or Canada Safeway (including without limitation, any Canadian/U.S.
Loans) pursuant to subsection 2.1A(iv).
"TRANCHE B CANADIAN PRIME RATE LOANS" means Tranche B Canadian
Loans advanced to Canada Safeway and denominated in Canadian Dollars and bearing
interest at rates determined by reference to the Canadian Prime Rate as provided
in subsection 2.2A.
"TRANCHE B CANADIAN PRO RATA SHARE" means, with respect to any
Canadian Lender, (a) prior to the termination of the Tranche B Canadian
Commitments, the Tranche B Canadian Commitment of such Canadian Lender as a
percentage of the sum of the Tranche B Canadian Commitments of all Canadian
Lenders, and (b) after the termination of the Tranche B Canadian Commitments,
the outstanding Tranche B Canadian Loans made by such Canadian Lender (it being
understood and agreed for the purposes hereof that the Canadian/U.S. Loans of
any U.S. Affiliate of any Canadian Lender in respect of the Tranche B Canadian
Commitments are Tranche B Canadian Loans of such Canadian Lender and not Tranche
B Domestic Loans of such U.S. Affiliate) as a percentage of the sum of the
Tranche B Canadian Loans made by all Canadian Lenders.
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"TRANCHE B DOMESTIC BASE RATE LOANS" means Tranche B Domestic
Loans advanced to Company bearing interest at rates determined by reference to
the Domestic Base Rate as provided in subsection 2.2A.
"TRANCHE B DOMESTIC COMMITMENT" means the commitment of a
Domestic Lender to make Tranche B Domestic Loans to Company pursuant to
subsection 2.1A(iii), and "TRANCHE B DOMESTIC COMMITMENTS" means such
commitments of all Domestic Lenders in the aggregate.
"TRANCHE B DOMESTIC EURODOLLAR RATE LOANS" means Tranche B
Domestic Loans (excluding any Negotiated Rate Loans) denominated in Dollars,
advanced to Company and bearing interest at rates determined by reference to the
Adjusted Eurodollar Rate as provided in subsection 2.2A.
"TRANCHE B DOMESTIC LENDER" means any Domestic Lender having a
Tranche B Domestic Commitment.
"TRANCHE B DOMESTIC LOAN EXPOSURE" means, with respect to any
Domestic Lender as of any date, (a) prior to the termination of the Tranche B
Domestic Commitments, that Lender's Tranche B Domestic Commitment, and (b) after
the termination of the Tranche B Domestic Commitments, the aggregate outstanding
principal amount of the Tranche B Domestic Loans of that Lender (it being
understood and agreed for the purposes hereof that the Canadian/U.S. Loans of
any U.S. Affiliate of any Canadian Lender in respect of the Tranche B Canadian
Commitments are Tranche B Canadian Loans of such Canadian Lender and not Tranche
B Domestic Loans of such U.S. Affiliate).
"TRANCHE B DOMESTIC LOANS" means the Tranche B Domestic Loans
made by Domestic Lenders pursuant to their Tranche B Domestic Commitments to
Company pursuant to subsection 2.1A(iii).
"TRANCHE B DOMESTIC PRO RATA SHARE" means, with respect to any
Domestic Lender, (a) prior to the termination of the Tranche B Domestic
Commitments, the Tranche B Domestic Commitment of such Domestic Lender as a
percentage of the sum of the Tranche B Domestic Commitments of all Domestic
Lenders, and (b) after the termination of the Tranche B Domestic Commitments,
the outstanding Tranche B Domestic Loans made by such Domestic Lender (it being
understood and agreed for the purposes hereof that the Canadian/U.S. Loans of
any U.S. Affiliate of any Canadian Lender in respect of the Tranche B Canadian
Commitments are Tranche B Canadian Loans of such Canadian Lender and not Tranche
B Domestic Loans of such U.S. Affiliate) as a percentage of the sum of the
Tranche B Domestic Loans made by all Domestic Lenders.
"TRANCHE B EXTENSION REQUEST" means written notice substantially
in the form of Exhibit X annexed hereto to be delivered by Company in accordance
with the provisions of subsection 2.8 to request a 364-day extension of the
Tranche B Revolving Termination Date then in effect.
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"TRANCHE B FACILITY FEE PERCENTAGE" means, as of any date, the
percentage per annum set forth below that corresponds to the Pricing Level in
effect on such date:
Tranche B Facility
Fee Percentage
Pricing Level (in basis points)
------------- ------------------
Pricing Level A: 7.00
Pricing Level B: 7.50
Pricing Level C: 8.00
Pricing Level D: 8.50
Pricing Level E: 9.00
Pricing Level F: 11.00
Pricing Level G: 13.50
The Tranche B Facility Fee Percentage shall change as of the opening of business
on any day that the Pricing Level changes pursuant to the definition of "Pricing
Level."
"TRANCHE B PRICING MARGIN" means, as of any date, the Tranche B
Pricing Margin set forth below that corresponds to the Pricing Level in effect
on such date:
Tranche B
Pricing Margin
Pricing Level (in basis points)
------------- -----------------
Pricing Level A: 13.00
Pricing Level B: 15.00
Pricing Level C: 17.00
Pricing Level D: 19.00
Pricing Level E: 21.00
Pricing Level F: 24.00
Pricing Level G: 26.50
The Tranche B Pricing Margin shall change as of the opening of business on any
day that the Pricing Level changes pursuant to the definition of "Pricing
Level."
"TRANCHE B REVOLVING TERMINATION DATE" means May 23, 2002 or,
with respect to each Lender, such subsequent date to which the Tranche B
Revolving Termination Date is extended by such Lender pursuant to subsection 2.8
(it being understood that the Tranche B Revolving Termination Date of any Lender
not consenting to such extension shall not be extended beyond the Tranche B
Revolving Termination Date then in effect for such Lender).
"TRANCHE B TERM TERMINATION DATE" has the meaning assigned to
that term in subsection 2.9.
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"UNRESTRICTED SUBSIDIARY" means any Subsidiary designated by
Company as an Unrestricted Subsidiary in accordance with the provisions of
subsection 9.6.
"U.S. AFFILIATE" means, with respect to any Canadian Lender (i)
that is not resident in the United States of America for withholding tax
purposes, or (ii) with respect to which an election under Section 1504(d) of the
Internal Revenue Code has been made, in each case, the Affiliate of such
Canadian Lender that is resident in the United States of America for withholding
tax purposes with respect to which such Canadian Lender shall have assigned its
obligation to fund Canadian/U.S. Loans in accordance with the provisions of
subsections 2.1A(ii) or 2.1A(iv), as the case may be, and subsection 13.1.
"US BANK" has the meaning assigned to that term in the
introduction to this Agreement.
"U.S./CDN.$" means Dollars or Canadian Dollars, as the case may
be.
"WHOLLY-OWNED SUBSIDIARY" means, with respect to any Person, any
Subsidiary of such Person that is directly or indirectly wholly-owned by such
Person.
1.2 ACCOUNTING TERMS; UTILIZATION OF GAAP FOR PURPOSES OF CALCULATIONS UNDER
AGREEMENT.
Except as otherwise expressly provided in this Agreement, all
accounting terms not otherwise defined herein shall have the meanings assigned
to them in conformity with GAAP. Financial statements, determinations relating
to covenants, and other information required to be delivered or determined by
Company pursuant to this Agreement shall be prepared or determined in conformity
with GAAP as in effect at the time of such preparation or determination.
1.3 OTHER DEFINITIONAL PROVISIONS.
References to "Sections" and "subsections" shall be to Sections
and subsections, respectively, of this Agreement unless otherwise specifically
provided. Any of the terms defined in subsection 1.1 may, unless the context
otherwise requires, be used in the singular or the plural, depending on the
reference.
SECTION 2. AMOUNTS AND TERMS OF COMMITMENTS AND LOANS
2.1 COMMITMENTS; MAKING OF LOANS; THE REGISTER; NOTES.
A. COMMITMENTS AND LOANS. Subject to the terms and conditions of this
Agreement and in reliance upon the representations and warranties of Borrowers
herein set forth:
(i) Tranche A Domestic Loans. Each Domestic Lender severally
agrees, subject to the limitations set forth below with respect to the
maximum amount of Tranche A Domestic Loans permitted to be outstanding
from time to time, to lend to Company from time to time during the
period from the Closing Date to but excluding
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such Lender's Tranche A Termination Date an aggregate amount not
exceeding its Tranche A Domestic Pro Rata Share of the aggregate amount
of the Tranche A Domestic Commitments to be used for the purposes
identified in subsection 2.5A. The original amount of each Domestic
Lender's Tranche A Domestic Commitment is set forth opposite its name on
Schedule 2.1 annexed hereto and the aggregate original amount of the
Tranche A Domestic Commitments is $1,125,000,000; provided that the
Tranche A Domestic Commitments of Lenders shall be adjusted to give
effect to any assignments of the Tranche A Domestic Commitments pursuant
to subsection 13.1B; and provided, further that the amount of the
Tranche A Domestic Commitments shall be reduced from time to time by the
amount of any reductions thereto made pursuant to subsection 2.4A(ii).
Each Domestic Lender's Tranche A Domestic Commitment shall expire on
such Lender's Tranche A Termination Date and all Tranche A Domestic
Loans and all other amounts owed hereunder with respect to the Tranche A
Domestic Loans and the Tranche A Domestic Commitment of such Lender
shall be paid in full no later than that date; provided that each
Domestic Lender's Tranche A Domestic Commitment shall expire immediately
and without further action on July 31, 2001 if the Closing Date shall
not have occurred on or before that date. Amounts borrowed under this
subsection 2.1A(i) may be repaid and reborrowed to but excluding the
Tranche A Termination Date.
Anything contained in this Agreement to the contrary
notwithstanding, the Tranche A Domestic Loans and the Tranche A Domestic
Commitments shall be subject to the limitation that in no event shall
the Total Utilization of Tranche A Domestic Commitments at any time
exceed the Tranche A Domestic Commitments then in effect. All Tranche A
Domestic Loans shall be denominated and funded in Dollars.
(ii) Tranche A Canadian Loans. Each Canadian Lender severally
agrees, subject to the limitations set forth below with respect to the
maximum amount of Tranche A Canadian Loans permitted to be outstanding
from time to time, to lend to Company and Canada Safeway from time to
time during the period from the Closing Date to but excluding such
Lender's Tranche A Termination Date an aggregate amount not exceeding
its Tranche A Canadian Pro Rata Share of the aggregate amount of the
Tranche A Canadian Commitments to be used for the purposes identified in
subsection 2.5A. The original amount of each Canadian Lender's Tranche A
Canadian Commitment is set forth opposite its name on Schedule 2.1
annexed hereto and the aggregate original amount of the Tranche A
Canadian Commitments is $125,000,000; provided that the Tranche A
Canadian Commitments of Lenders shall be adjusted to give effect to any
assignments of the Tranche A Canadian Commitments pursuant to subsection
13.1B; and provided, further that the amount of the Tranche A Canadian
Commitments shall be reduced from time to time by the amount of any
reductions thereto made pursuant to subsection 2.4A(ii). Each Canadian
Lender's Tranche A Canadian Commitment shall expire on such Lender's
Tranche A Termination Date and all Tranche A Canadian Loans and all
other amounts owed hereunder with respect to the Tranche A Canadian
Loans and the Tranche A Canadian Commitment of such Lender shall be paid
in full no later than that date;
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provided that each Canadian Lender's Tranche A Canadian Commitment shall
expire immediately and without further action on July 31, 2001 if the
Closing Date shall not have occurred on or before that date. Amounts
borrowed under this subsection 2.1A(ii) may be repaid and reborrowed to
but excluding the Tranche A Termination Date.
Upon receipt of a Notice of Borrowing from the Company with
respect to a Canadian/U.S. Loan, each Canadian Lender that is not
resident in the United States of America for withholding tax purposes,
may, in accordance with the provisions of subsection 13.1, assign its
obligations under this subsection 2.1A(ii) to fund such Canadian/U.S.
Loan (together with all of its outstanding Canadian/U.S. Loans) to a
U.S. Affiliate. Notwithstanding any provisions of this Agreement to the
contrary, no U.S. Affiliate shall be deemed to have a Tranche A Canadian
Commitment under this Agreement. For the purposes of determining whether
the Total Utilization of Tranche A Canadian Commitments of any Canadian
Lender exceeds its Tranche A Canadian Commitments, the outstanding
principal amount of its U.S. Affiliate's Canadian/U.S. Loans shall be
considered to be outstanding from such Canadian Lender hereunder.
Anything contained in this Agreement to the contrary
notwithstanding, the Tranche A Canadian Loans and the Tranche A Canadian
Commitments shall be subject to the limitation that in no event shall
the Total Utilization of Tranche A Canadian Commitments at any time
exceed the Tranche A Canadian Commitments then in effect. Tranche A
Canadian Loans advanced to Canada Safeway may, at Canada Safeway's
option, be denominated and funded in Dollars or Canadian Dollars;
Tranche A Canadian Loans advanced to Company (otherwise referred to
herein as "Canadian/U.S. Loans") shall be denominated and funded in
Dollars only.
(iii) Tranche B Domestic Loans. Each Domestic Lender severally
agrees, subject to the limitations set forth below with respect to the
maximum amount of Tranche B Domestic Loans permitted to be outstanding
from time to time, to lend to Company from time to time during the
period from the Closing Date to but excluding such Lender's Tranche B
Revolving Termination Date an aggregate amount not exceeding its Tranche
B Domestic Pro Rata Share of the aggregate amount of the Tranche B
Domestic Commitments to be used for the purposes identified in
subsection 2.5A. The original amount of each Domestic Lender's Tranche B
Domestic Commitment is set forth opposite its name on Schedule 2.1
annexed hereto and the aggregate original amount of the Tranche B
Domestic Commitments is $1,125,000,000; provided that the Tranche B
Domestic Commitments of Lenders shall be adjusted to give effect to any
assignments of the Tranche B Domestic Commitments pursuant to subsection
13.1B; and provided, further that the amount of the Tranche B Domestic
Commitments shall be reduced from time to time by the amount of any
reductions thereto made pursuant to subsection 2.4A(ii). The unused
portion of each Domestic Lender's Tranche B Domestic Commitment shall
expire on such Lender's Tranche B Revolving Termination Date and Tranche
B Domestic Loans may not be made after that date; provided that each
Domestic Lender's Tranche B Domestic Commitment shall expire immediately
and without further action on July
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31, 2001 if the Closing Date shall not have occurred on or before that
date. Each Domestic Lender's Tranche B Domestic Commitment shall expire
on such Lender's Tranche B Term Termination Date and all Tranche B
Domestic Loans and all other amounts owed hereunder with respect to the
Tranche B Domestic Loans and the Tranche B Domestic Commitment of such
Lender shall be paid in full no later than such Lender's Tranche B Term
Termination Date. Amounts borrowed under this subsection 2.1A(iii) may
be repaid and reborrowed to but excluding the Tranche B Revolving
Termination Date.
Anything contained in this Agreement to the contrary
notwithstanding, the Tranche B Domestic Loans and the Tranche B Domestic
Commitments shall be subject to the limitation that in no event shall
the Total Utilization of Tranche B Domestic Commitments at any time
exceed the Tranche B Domestic Commitments then in effect. All Tranche B
Domestic Loans shall be denominated and funded in Dollars.
(iv) Tranche B Canadian Loan. Each Canadian Lender severally
agrees, subject to the limitations set forth below with respect to the
maximum amount of Tranche B Canadian Loans permitted to be outstanding
from time to time, to lend to Company and Canada Safeway from time to
time during the period from the Closing Date to but excluding such
Lender's Tranche B Revolving Termination Date an aggregate amount not
exceeding its Tranche B Canadian Pro Rata Share of the aggregate amount
of the Tranche B Canadian Commitments to be used for the purposes
identified in subsection 2.5A. The original amount of each Canadian
Lender's Tranche B Canadian Commitment is set forth opposite its name on
Schedule 2.1 annexed hereto and the aggregate original amount of the
Tranche B Canadian Commitments is $125,000,000; provided that the
Tranche B Canadian Commitments of Lenders shall be adjusted to give
effect to any assignments of the Tranche B Canadian Commitments pursuant
to subsection 13.1B; and provided, further that the amount of the
Tranche B Canadian Commitments shall be reduced from time to time by the
amount of any reductions thereto made pursuant to subsection 2.4A(ii).
The unused portion of each Canadian Lender's Tranche B Canadian
Commitment shall expire on such Lender's Tranche B Revolving Termination
Date and Tranche B Canadian Loans may not be made after that date;
provided that each Canadian Lender's Tranche B Canadian Commitment shall
expire immediately and without further action on July 31, 2001 if the
Closing Date shall not have occurred on or before that date. Each
Canadian Lender's Tranche B Canadian Commitment shall expire on such
Lender's Tranche B Term Termination Date and all Tranche B Canadian
Loans and all other amounts owed hereunder with respect to the Tranche B
Canadian Loans and the Tranche B Canadian Commitment of such Lender
shall be paid in full no later than such Lender's Tranche B Term
Termination Date. Amounts borrowed under this subsection 2.1A(iv) may be
repaid and reborrowed to but excluding the Tranche B Revolving
Termination Date.
Upon receipt of a Notice of Borrowing from the Company with
respect to a Canadian/U.S. Loan, each Canadian Lender that is not
resident in the United States of
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America for withholding tax purposes, may, in accordance with the
provisions of subsection 13.1, assign its obligations under this
subsection 2.1A(iv) to fund such Canadian/U.S. Loan (together with all
of its outstanding Canadian/U.S. Loans) to a U.S. Affiliate.
Notwithstanding any provisions of this Agreement to the contrary, no
U.S. Affiliate shall be deemed to have a Tranche B Canadian Commitment
under this Agreement. For the purposes of determining whether the Total
Utilization of Tranche B Canadian Commitments of any Canadian Lender
exceeds its Tranche B Canadian Commitments, the outstanding principal
amount of its U.S. Affiliate's Canadian/U.S. Loans shall be considered
to be outstanding from such Canadian Lender hereunder.
Anything contained in this Agreement to the contrary
notwithstanding, the Tranche B Canadian Loans and the Tranche B Canadian
Commitments shall be subject to the limitation that in no event shall
the Total Utilization of Tranche B Canadian Commitments at any time
exceed the Tranche B Canadian Commitments then in effect. Tranche B
Canadian Loans advanced to Canada Safeway may, at Canada Safeway's
option, be denominated and funded in Dollars or Canadian Dollars;
Tranche B Canadian Loans advanced to Company (otherwise referred to
herein as "Canadian/U.S. Loans") shall be denominated and funded in
Dollars only.
(v) Swing Line Commitments and Swing Line Loans. Subject to the
terms and conditions of this Agreement and in reliance upon the
representations and warranties of Borrowers set forth herein, each Swing
Line Lender in respect of the Tranche A Domestic Swing Line Loans,
severally agrees, from time to time during the period from the Closing
Date through but excluding such Swing Line Lender's Tranche A
Termination Date, to make a portion of the Tranche A Domestic
Commitments available to Company in an aggregate amount not exceeding
its Tranche A Domestic Swing Line Pro Rata Share of $250,000,000 by
making Swing Line Loans denominated in Dollars to Company ("TRANCHE A
DOMESTIC SWING LINE LOANS"), notwithstanding the fact that such Tranche
A Domestic Swing Line Loans, when aggregated with the Total Utilization
of Tranche A Domestic Commitments of such Swing Line Lender may exceed
such Swing Line Lender's Tranche A Domestic Commitment. The Swing Line
Lender in respect of the Tranche A Canadian Swing Line Loans agrees,
from time to time during the period from the Closing Date through but
excluding such Swing Line Lender's Tranche A Termination Date, to make a
portion of the Tranche A Canadian Commitments available to Canada
Safeway in an aggregate principal amount not exceeding $25,000,000 by
making Swing Line Loans, denominated in Canadian Dollars or Dollars, to
Canada Safeway ("TRANCHE A CANADIAN SWING LINE LOANS"), notwithstanding
the fact that such Tranche A Canadian Swing Line Loans, when aggregated
with the Total Utilization of Tranche A Canadian Commitments of such
Swing Line Lender may exceed such Swing Line Lender's Tranche A Canadian
Commitment. Each Swing Line Lender's commitment to make Tranche A
Domestic Swing Line Loans pursuant to this subsection 2.1A(v) is hereby
called its "TRANCHE A DOMESTIC SWING LINE COMMITMENT," and each Swing
Line Lender's commitment to make Tranche A Canadian Swing Line Loans
pursuant to this subsection 2.1A(v) is hereby called its "TRANCHE A
CANADIAN SWING LINE COMMITMENT." The original amount of each Swing Line
Lender's Tranche A
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Domestic Swing Line Commitment is set forth opposite its name on
Schedule 2.1 annexed hereto and the aggregate original amount of the
Tranche A Domestic Swing Line Commitments is $250,000,000; provided that
the Tranche A Domestic Swing Line Commitments of such Swing Line Lenders
shall be adjusted to give effect to any assignments of the Tranche A
Domestic Swing Line Commitments pursuant to subsection 13.1B; and
provided, further that the amount of the Tranche A Domestic Swing Line
Commitments shall be reduced from time to time by the amount of any
reductions thereto made pursuant to subsection 2.4A(ii). The original
amount of the Swing Line Lender's Tranche A Canadian Swing Line
Commitment is $25,000,000; provided that the Tranche A Canadian Swing
Line Commitment of such Swing Line Lender shall be adjusted to give
effect to any assignments of the Tranche A Canadian Swing Line
Commitment pursuant to subsection 13.1B; and provided, further that the
amount of the Tranche A Canadian Swing Line Commitment shall be reduced
from time to time by the amount of any reductions thereto made pursuant
to subsection 2.4A(ii). In no event shall the aggregate principal amount
of Tranche A Domestic Swing Line Loans outstanding at any time exceed
the Tranche A Domestic Swing Line Commitments nor shall the aggregate
principal amount of Tranche A Canadian Swing Line Loans outstanding at
any time exceed the Tranche A Canadian Swing Line Commitments (with all
Tranche A Canadian Swing Line Loans denominated in Canadian Dollars
valued in Dollar Equivalents), and in no event shall the Total
Utilization of Tranche A Domestic Commitments at any time exceed the
Tranche A Domestic Commitments then in effect nor shall the Total
Utilization of Tranche A Canadian Commitments at any time exceed the
Tranche A Canadian Commitments then in effect. In no event shall the
Tranche A Domestic Swing Line Commitments exceed the Tranche A Domestic
Commitments nor shall the Tranche A Canadian Swing Line Commitments
exceed the Tranche A Canadian Commitments, and any voluntary reduction
of the Tranche A Domestic Commitments or Tranche A Canadian Commitments
made pursuant to subsection 2.4A which reduces the Tranche A Domestic
Commitments or Tranche A Canadian Commitments below the then current
amount of the Tranche A Domestic Swing Line Commitments or the Tranche A
Canadian Swing Line Commitments, respectively, shall result in an
automatic corresponding reduction of the Tranche A Domestic Swing Line
Commitments or the Tranche A Canadian Swing Line Commitments,
respectively, to the amount of the Tranche A Domestic Commitments or the
Tranche A Canadian Commitments, respectively, as so reduced, without any
further action on the part of any Swing Line Lender.
The Tranche A Domestic Swing Line Commitments and Tranche A
Canadian Swing Line Commitments of a particular Swing Line Lender shall
expire on such Swing Line Lender's Tranche A Termination Date and all
Swing Line Loans of that Swing Line Lender shall be paid in full no
later than that date.
Amounts borrowed under this subsection 2.1A(v) may be repaid
and, through but excluding Swing Line Lender's Tranche A Termination
Date, reborrowed. All Swing Line Loans shall bear interest as provided
in subsection 2.2A(v). Swing Line Loans made on any Funding Date shall
be in an aggregate minimum amount of
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U.S./Cdn.$1,000,000 and integral multiples of U.S/Cdn.$500,000 in excess
of that amount.
Each Swing Line Lender, at any time in its sole and absolute
discretion may, and on the fifth Business Day after the making of a
Swing Line Loan which has not been voluntarily prepaid by the applicable
Borrower pursuant to subsection 2.4A(i) shall, on one Business Day's
notice to the Administrative Agent, as the case may be, require each
Domestic Lender or Canadian Lender (including, in either case, Swing
Line Lenders), as the case may be, and each Lender hereby agrees,
subject to this subsection 2.1A(v), to make a Tranche A Domestic Loan or
Tranche A Canadian Loan, as the case may be (which shall initially bear
interest at the applicable Deemed Floating Rate), in an amount equal to
such Lender's Tranche A Domestic Pro Rata Share or Tranche A Canadian
Pro Rata Share of the amount of the Tranche A Domestic Swing Line Loans
or Tranche A Canadian Swing Line Loans, respectively ("REFUNDED TRANCHE
A DOMESTIC SWING LINE LOANS" and "REFUNDED TRANCHE A CANADIAN SWING LINE
LOANS," respectively) outstanding on the date notice is given by such
Swing Line Lender; provided, however, that, any provision of subsection
2.1C(iii) or any other subsection of this Agreement to the contrary
notwithstanding, the obligation of each Lender to make any such Loan is
subject to the condition that (i) such Swing Line Lender believed in
good faith that all conditions under subsection 6.2 to the making of
such Refunded Tranche A Domestic Swing Line Loan or Refunded Tranche A
Canadian Swing Line Loan were satisfied at the time such Swing Line Loan
was made, or (ii) such Lender shall have actual knowledge, by receipt of
the statements required pursuant to subsection 8.1 or otherwise, that
any such condition has not been satisfied and shall have failed to
notify the Swing Line Lenders and Administrative Agent in writing prior
to the time such Swing Line Loan was made that it has no obligation to
make Loans until such condition has been satisfied (which notice shall
be effective as of the date of receipt by Swing Line Lenders and
Administrative Agent), or (iii) the satisfaction of any such condition
not satisfied had been waived by Requisite Lenders prior to or at the
time such Swing Line Loan was made. Promptly after the receipt by
Administrative Agent of the notice from a Swing Line Lender pursuant to
the preceding sentence, Administrative Agent shall notify each Lender
required to make Refunded Tranche A Domestic Swing Line Loans or
Refunded Tranche B Domestic Swing Line Loans, as the case may be, of the
amount of its respective Tranche A Domestic Pro Rata Share of Refunded
Tranche A Domestic Swing Line Loans or Tranche A Canadian Pro Rata Share
of Refunded Tranche A Canadian Swing Line Loans, as the case may be, to
be advanced pursuant to the preceding sentence. In the event that Loans
are made by Lenders other than Swing Line Lenders under this paragraph,
each such Lender shall make the amount of its Loan available to
Administrative Agent, in same day funds and the applicable currency
(whether Dollars or Canadian Dollars), at the Domestic Funding and
Payment Office (in the case of Refunded Tranche A Domestic Swing Line
Loans) or the Canadian Funding and Paying Office (in the case of
Refunded Tranche A Canadian Swing Line Loans), in either case not later
than 1:00 p.m. (Toronto time) on the Business Day next succeeding the
date such notice is given. The proceeds of such Loans shall be
immediately delivered to such Swing Line
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Lender (and not to any Borrower) and applied to repay the Refunded
Tranche A Domestic Swing Line Loans or Refunded Tranche A Canadian Swing
Line Loans, as applicable. On the day such Loans are made, the
applicable Swing Line Lender's Tranche A Domestic Pro Rata Share or
Tranche A Canadian Pro Rata Share of the Refunded Tranche A Domestic
Swing Line Loans or Refunded Tranche A Canadian Swing Line Loans,
respectively, shall be deemed to be paid with the proceeds of a Loan
made by such Swing Line Lender bearing interest at the applicable Deemed
Floating Rate and such portion of the Swing Line Loans deemed to be so
paid shall no longer be outstanding as Swing Line Loans.
Company and Canada Safeway authorizes Administrative Agent to
charge Company's accounts with Administrative Agent, in the case of any
Refunded Tranche A Domestic Swing Line Loan, and Canada Safeway's
accounts with Administrative Agent, in the case of any Refunded Tranche
A Canadian Swing Line Loans (in each case up to the amount available in
each such account) in order to immediately pay the Swing Line Lenders
the amount of any Refunded Tranche A Domestic Swing Line Loans or
Refunded Tranche A Canadian Swing Lines Loans, as the case may be, to
the extent amounts received from Lenders, including amounts deemed to be
received from Swing Line Lenders, are not sufficient to repay in full
such Refunded Tranche A Domestic Swing Line Loans or Refunded Tranche A
Canadian Swing Line Loans. If any portion of any such amount paid (or
deemed to be paid) to any Swing Line Lender should be recovered by or on
behalf of Company or Canada Safeway from such Swing Line Lender in
bankruptcy, by assignment for the benefit of creditors or otherwise, the
loss of the amount so recovered shall be ratably shared among Domestic
Lenders or Canadian Lenders, as the case may be, in the manner
contemplated by subsection 13.5. Nothing in this Agreement shall
prejudice the rights of any Lender sharing such loss as against any
Lender causing such loss through its failure to make a Loan pursuant to
this subsection to refund any Swing Line Loan. Subject to the proviso
contained in the first sentence of the fourth paragraph of this
subsection 2.1A(v), each Lender's obligation to make the Loans referred
to in this paragraph shall be absolute and unconditional and shall not
be affected by any circumstance, including, without limitation, (i) any
set-off, counterclaim, recoupment, defense or other right which such
Lender may have against any Swing Line Lender, any Borrower or any other
Person for any reason whatsoever; (ii) the occurrence or continuance of
an Event of Default or a Potential Event of Default; (iii) any adverse
change in the condition (financial or otherwise) of any Borrower; (iv)
any breach of this Agreement by any Borrower or any other Lender; (v)
the acceleration or maturity of any Loans or the termination of the
Tranche A Domestic Commitments after the making of any Tranche A
Domestic Swing Line Loan or the termination of the Tranche A Canadian
Commitments after the making of any Tranche A Canadian Swing Line Loan;
or (vi) any other circumstance, happening or event whatsoever, whether
or not similar to any of the foregoing.
In the event that any Borrower or any of their Subsidiaries has
filed for or becomes subject to protection under the Bankruptcy Code, or
in the case of any Subsidiary of Company organized under the laws of
Canada or any Province, any
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bankruptcy, insolvency or similar laws of Canada or its Provinces or
otherwise if any Swing Line Lender requests and, in any event, subject
to satisfaction of the conditions set forth in the proviso to the first
sentence of the fourth paragraph of this subsection 2.1A(v), each Lender
shall acquire without recourse or warranty an undivided participation
interest equal to such Lender's Tranche A Domestic Pro Rata Share or
Tranche A Canadian Pro Rata Share of any Tranche A Domestic Swing Line
Loan or Tranche A Canadian Swing Line Loan, respectively, otherwise
required to be repaid by such Lender pursuant to the preceding paragraph
by paying to Swing Line Lender on the date on which such Lender would
otherwise have been required to make a Loan in respect of such Tranche A
Domestic Swing Line Loan or Tranche A Canadian Swing Line Loan, as the
case may be, pursuant to the preceding paragraph, in immediately
available funds and the applicable currency (whether Dollars or Canadian
Dollars), an amount equal to such Lender's Tranche A Domestic Pro Rata
Share or Tranche A Canadian Pro Rata Share, as the case may be, of such
Tranche A Domestic Swing Line Loan or Tranche A Canadian Swing Line
Loan, as the case may be, and no Loans shall be made by such Lender
pursuant to the fourth paragraph of this subsection 2.1A(v). If any such
amount is not in fact made available to the applicable Swing Line Lender
by that Lender on the date when Loans would otherwise be required to be
made pursuant to the preceding paragraph, such Swing Line Lenders shall
be entitled to recover such amount on demand from that Lender together
with interest accrued from such date at the customary rate set by such
Swing Line Lender for the correction of errors among banks for three
Business Days and thereafter at the applicable Deemed Floating Rate.
From and after the date on which any Lender purchases an undivided
participation interest in a Swing Line Loan pursuant to this paragraph,
the applicable Swing Line Lender shall promptly distribute to such
Lender such Lender's Tranche A Domestic Pro Rata Share or Tranche A
Canadian Pro Rata Share, as applicable, of all payments of principal and
interest in respect of such Swing Line Loan.
A copy of each notice given by Administrative Agent to Lenders
pursuant to the fourth paragraph of this subsection 2.1A(v) shall be
promptly delivered by Administrative Agent to the applicable Borrower.
Upon the making of a Loan by any Lender pursuant to this subsection
2.1A(v), Administrative Agent shall make such entries in the Register,
and Lenders shall make such entries in their respective internal
records, as appropriate in accordance with subsection 2.1D to reflect
the funding of such Loan and the associated repayment of any Refunded
Tranche A Domestic Swing Line Loan or Refunded Tranche A Canadian Swing
Line Loan.
Notwithstanding anything herein to the contrary, no Swing Line
Lender shall be obligated to make any Swing Line Loans upon the
occurrence and during the continuation of a Potential Event of Default
or Event of Default provided that any Swing Line Lender shall have
notified Company and Canada Safeway in writing or by telephone of its
election not to make Swing Line Loans during the continuation of such
Potential Event of Default or Event of Default.
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(vi) Negotiated Rate Loans. Subject to the terms and conditions
of this Agreement and in reliance upon the representations and
warranties of Company set forth herein, Company agrees that, from time
to time during the period from and including the Closing Date to but
excluding such Lender's Tranche A Termination Date, Company may request
one or more Domestic Lenders, in the sole discretion of each, to make
one or more Tranche A Domestic Loans to Company on a non-pro rata basis,
each such Loan to remain outstanding for at least one day and to mature
no later than 180 days after the making thereof or if earlier, such
Lender's Tranche A Termination Date and to bear interest at such rate as
shall be agreed to by Company and the applicable Domestic Lender (each
such Loan, a "NEGOTIATED RATE LOAN"); provided that in no event shall
(x) the aggregate principal amount of Negotiated Rate Loans outstanding
at any time exceed $500,000,000 or (y) the Total Utilization of Tranche
A Domestic Commitments exceed the Tranche A Domestic Commitments then in
effect. All Negotiated Rate Loans shall be in such minimum amounts as
may be mutually agreed upon by the applicable Domestic Lender and
Company. Company and Domestic Lenders acknowledge that (A) subject to
the proviso in the first sentence of this paragraph, notwithstanding the
Tranche A Domestic Commitment of any Domestic Lender, each such Domestic
Lender may, but shall not be obligated to, make Negotiated Rate Loans as
of any date in a aggregate amount that would not cause the Total
Utilization of Tranche A Domestic Commitments to exceed the Tranche A
Domestic Commitments then in effect (and each Domestic Lender may rely
on the information provided by Company in the Notice of Borrowing,
absent any actual knowledge to the contrary); and (B) Negotiated Rate
Loans need not be made in accordance with Lenders' Tranche A Domestic
Pro Rata Shares.
Each Lender making any Negotiated Rate Loan shall, prior to or
concurrently with the making thereof, provide Administrative Agent with
written notice of the amount, Funding Date and maturity date of such
Negotiated Rate Loan, and Company and Lenders will, from time to time,
furnish such information to Administrative Agent as Administrative Agent
may request relating to the making of Negotiated Rates Loans, including,
without limitation, confirmation of amounts, Funding Dates and
maturities (and, upon the occurrence and during the continuance of any
Potential Event of Default or Event of Default, applicable interest
rates), for the purpose of determining the Total Utilization of Tranche
A Domestic Commitments and the allocation of amounts received from
Company for payment of all amounts owing hereunder.
B. BORROWING MECHANICS.
(i) Tranche A Domestic Loans. Tranche A Domestic Loans made on
any Funding Date (other than Swing Line Loans, Tranche A Domestic Loans
made pursuant to subsection 2.1A(v) for the purpose of refunding Swing
Line Loans, Negotiated Rate Loans and Tranche A Domestic Loans made
pursuant to subsection 3.3B for the purpose of reimbursing any Issuing
Lender for the amount of a drawing under a Letter of Credit issued by
it) shall be in an aggregate minimum amount of $50,000,000 and integral
multiples of $10,000,000 in excess of that amount. Tranche
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A Domestic Swing Line Loans made on any Funding Date shall be in a
minimum amount of $1,000,000 and integral multiples of $500,000 in
excess of that amount. Whenever Company desires that Domestic Lenders
make Tranche A Domestic Loans or that Swing Line Lender make Tranche A
Domestic Swing Line Loans, it shall deliver to Administrative Agent a
Notice of Borrowing no later than 12:00 noon (New York time) at least
three Business Days in advance of the proposed Funding Date in the case
of a Tranche A Domestic Eurodollar Rate Loan, at least one Business Day
in advance of the proposed Funding Date in the case of a Tranche A
Domestic Base Rate Loan, on the proposed Funding Date in the case of a
Swing Line Loan or such advance notice, including same day notice, as
may be agreed between Company and such Domestic Lender in the case of a
Negotiated Rate Loan. The Notice of Borrowing shall specify (i) the
proposed Borrower, (ii) the proposed Funding Date (which shall be a
Business Day), (iii) the amount of Loans requested, (iv) whether such
Loans are to be Tranche A Domestic Swing Line Loans, Negotiated Rate
Loans, Tranche A Domestic Base Rate Loans or Tranche A Domestic
Eurodollar Rate Loans (it being agreed and understood that Tranche A
Domestic Eurodollar Rate Loans may not be borrowed on the Closing Date
unless Company shall have entered into a Special Funding Procedures
Letter Agreement with Primary Agents and Lenders on or prior to the date
that is two Business Days before the Closing Date), (v) that, after
giving effect to such requested Loans, the Total Utilization of Tranche
A Domestic Commitments will not exceed the Tranche A Domestic
Commitments and, if applicable, that the aggregate outstanding principal
amount of Tranche A Domestic Swing Line Loans will not exceed the
Tranche A Domestic Swing Line Commitments or that the aggregate
outstanding principal amount of Negotiated Rate Loans will not exceed
$500,000,000, (vi) in the case of any Loans requested to be made as
Tranche A Domestic Eurodollar Rate Loans, the initial Interest Period
requested therefor, and (vii) in the case of any Negotiated Rate Loans,
the proposed maturity date therefor. Tranche A Domestic Loans (other
than Swing Line Loans and Negotiated Rate Loans) may be continued as or
converted into Tranche A Domestic Base Rate Loans and Tranche A Domestic
Eurodollar Rate Loans in the manner provided in subsection 2.2D. In lieu
of delivering the above-described Notice of Borrowing, Company may give
Administrative Agent telephonic notice by the required time of any
proposed borrowing under this subsection 2.1B; provided that such notice
shall be promptly confirmed in writing by delivery of a Notice of
Borrowing to Administrative Agent on or before the applicable Funding
Date.
(ii) Tranche A Canadian Loans. Tranche A Canadian Loans made on
any Funding Date (other than Tranche A Canadian Swing Line Loans,
Tranche A Canadian Loans made pursuant to subsection 2.1A(v) for the
purpose of refunding Tranche A Canadian Swing Line Loans, and Tranche A
Canadian Loans made pursuant to subsection 4.7 for the purpose of paying
matured Acceptances) shall be in an aggregate minimum amount of
U.S./Cdn.$10,000,000 and integral multiples of U.S./Cdn.$1,000,000 in
excess of that amount. Tranche A Canadian Swing Line Loans made on any
Funding Date shall be in a minimum amount of U.S./Cdn.$1,000,000 and
integral multiples of U.S./Cdn.$500,000 in excess of that amount.
Whenever Company or Canada Safeway desires that Canadian Lenders
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make Tranche A Canadian Loans or that Swing Line Lenders make Tranche A
Canadian Swing Line Loans, it shall deliver to Administrative Agent a
Notice of Borrowing no later than 12:00 noon (New York time) at least
ten Business Days in advance of the proposed Funding Date in the case of
any Canadian/U.S. Loan, at least three Business Days in advance of the
proposed Funding Date in the case of a Tranche A Canadian Eurodollar
Rate Loan, at least two Business Days in advance of the proposed Funding
Date in the case of any Tranche A Canadian Base Rate Loan or Tranche A
Canadian Prime Rate Loan having a principal amount exceeding
U.S./Cdn.$50,000,000, at least one Business Day in advance of the
proposed Funding Date in the case of a Tranche A Canadian Base Rate Loan
or a Tranche A Canadian Prime Rate Loan having a principal amount not
exceeding U.S./Cdn.$50,000,000, or on the proposed Funding Date in the
case of a Tranche A Canadian Swing Line Loan. The Notice of Borrowing
shall specify (i) the proposed Borrower, (ii) the proposed Funding Date
(which shall be a Business Day), (iii) the amount of Loans requested,
(iv) whether such Loans are requested to be denominated in Dollars or
Canadian Dollars (it being understood that Company may request Loans
denominated in Dollars only), (v) whether such Loans are to be Tranche A
Canadian Swing Line Loans, Tranche A Canadian Base Rate Loans, Tranche A
Canadian Prime Rate Loans, Tranche A Canadian Eurodollar Rate Loans,
Canadian/U.S. Eurodollar Rate Loans or Canadian/U.S. Base Rate Loans (it
being agreed and understood that Company and Canada Safeway may not
request Fixed Rate Loans on the Closing Date unless Company and Canada
Safeway, as the case may be, shall have entered into a Special Funding
Procedures Letter Agreement with Primary Agents and Lenders on or prior
to the date that is two Business Days before the Closing Date), (vi)
that, after giving effect to the requested Loans, the Total Utilization
of Tranche A Canadian Commitments will not exceed the Tranche A Canadian
Commitments then in effect and, if applicable, that the aggregate
outstanding principal amount of the Tranche A Canadian Swing Line Loans
will not exceed the Tranche A Canadian Swing Line Commitments, and (vii)
in the case of any Loans requested to be made as Fixed Rate Loans, the
initial Interest Period requested therefor. Canadian/U.S. Loans may be
continued as or converted into Canadian/U.S. Base Rate Loans and
Canadian/U.S. Eurodollar Rate Loans and Tranche A Canadian Loans (other
than Canadian/U.S. Loans and Tranche A Canadian Swing Line Loans)
denominated in Dollars may be continued as or converted into Tranche A
Canadian Base Rate Loans or Tranche A Canadian Eurodollar Rate Loans in
the manner provided in subsection 2.2D. In lieu of delivering the
above-described Notice of Borrowing, Company or Canada Safeway may give
Administrative Agent telephonic notice by the required time of any
proposed borrowing under this subsection 2.1B; provided that such notice
shall be promptly confirmed in writing by delivery of a Notice of
Borrowing to Administrative Agent on or before the applicable Funding
Date.
(iii) Tranche B Domestic Loans. Tranche B Domestic Loans made on
any Funding Date shall be in an aggregate minimum amount of $50,000,000
and integral multiples of $10,000,000 in excess of that amount. Whenever
Company desires that Domestic Lenders make Tranche B Domestic Loans, it
shall deliver to Administrative Agent a Notice of Borrowing no later
than 12:00 noon (New York time) at least three
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Business Days in advance of the proposed Funding Date in the case of a
Tranche B Domestic Eurodollar Rate Loan, or at least one Business Day in
advance of the proposed Funding Date in the case of a Tranche B Domestic
Base Rate Loan. The Notice of Borrowing shall specify (i) the proposed
Borrower, (ii) the proposed Funding Date (which shall be a Business
Day), (iii) the amount of Loans requested, (iv) whether such Loans are
to be Tranche B Domestic Base Rate Loans or Tranche B Domestic
Eurodollar Rate Loans (it being agreed and understood that Tranche B
Domestic Eurodollar Rate Loans may not be borrowed on the Closing Date
unless Company shall have entered into a Special Funding Procedures
Letter Agreement with Primary Agents and Lenders on or prior to the date
that is two Business Days before the Closing Date), (v) that, after
giving effect to such requested Loans, the Total Utilization of Tranche
B Domestic Commitments will not exceed the Tranche B Domestic
Commitments and (vi) in the case of any Loans requested to be made as
Tranche B Domestic Eurodollar Rate Loans, the initial Interest Period
requested therefor. Tranche B Domestic Loans may be continued as or
converted into Tranche B Domestic Base Rate Loans and Tranche B Domestic
Eurodollar Rate Loans in the manner provided in subsection 2.2D. In lieu
of delivering the above-described Notice of Borrowing, Company may give
Administrative Agent telephonic notice by the required time of any
proposed borrowing under this subsection 2.1B; provided that such notice
shall be promptly confirmed in writing by delivery of a Notice of
Borrowing to Administrative Agent on or before the applicable Funding
Date.
(iv) Tranche B Canadian Loans. Tranche B Canadian Loans made on
any Funding Date (other than Tranche B Canadian Loans made pursuant to
subsection 4.7 for the purpose of paying matured Acceptances) shall be
in an aggregate minimum amount of U.S./Cdn.$10,000,000 and integral
multiples of U.S./Cdn.$1,000,000 in excess of that amount. Whenever
Company or Canada Safeway desires that Canadian Lenders make Tranche B
Canadian Loans, it shall deliver to Administrative Agent a Notice of
Borrowing no later than 12:00 noon (New York time) at least ten Business
Days in advance of the proposed Funding Date in the case of any
Canadian/U.S. Loan, at least three Business Days in advance of the
proposed Funding Date in the case of a Tranche B Canadian Eurodollar
Rate Loan, at least two Business Days in advance of the proposed Funding
Date in the case of any Tranche B Canadian Base Rate Loan or Tranche B
Canadian Prime Rate Loan having a principal amount exceeding
U.S./Cdn.$50,000,000, or at least one Business Day in advance of the
proposed Funding Date in the case of a Tranche B Canadian Base Rate Loan
or a Tranche B Canadian Prime Rate Loan having a principal amount not
exceeding U.S./Cdn.$50,000,000. The Notice of Borrowing shall specify
(i) the proposed Borrower, (ii) the proposed Funding Date (which shall
be a Business Day), (iii) the amount of Loans requested, (iv) whether
such Loans are requested to be denominated in Dollars or Canadian
Dollars (it being understood that Company may request Loans denominated
in Dollars only), (v) whether such Loans are to be Tranche B Canadian
Base Rate Loans, Tranche B Canadian Prime Rate Loans, Tranche B Canadian
Eurodollar Rate Loans, Canadian/U.S. Eurodollar Rate Loans or
Canadian/U.S. Base Rate Loans (it being agreed and understood that
Company and Canada Safeway may not request Fixed Rate Loans on the
Closing Date unless Company and Canada
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Safeway, as the case may be, shall have entered into a Special Funding
Procedures Letter Agreement with Primary Agents and Lenders on or prior
to the date that is two Business Days before the Closing Date), (vi)
that, after giving effect to the requested Loans, the Total Utilization
of Tranche B Canadian Commitments will not exceed the Tranche B Canadian
Commitments then in effect and, if applicable, and (vii) in the case of
any Loans requested to be made as Fixed Rate Loans, the initial Interest
Period requested therefor. Canadian/U.S. Loans in respect of the Tranche
B Canadian Commitments may be continued as or converted into
Canadian/U.S. Base Rate Loans and Canadian/U.S. Eurodollar Rate Loans in
respect of the Tranche B Canadian Commitments and Tranche B Canadian
Loans (other than Canadian/U.S. Loans) denominated in Dollars may be
continued as or converted into Tranche B Canadian Base Rate Loans or
Tranche B Canadian Eurodollar Rate Loans in the manner provided in
subsection 2.2D. In lieu of delivering the above-described Notice of
Borrowing, Company or Canada Safeway may give Administrative Agent
telephonic notice by the required time of any proposed borrowing under
this subsection 2.1B; provided that such notice shall be promptly
confirmed in writing by delivery of a Notice of Borrowing to
Administrative Agent on or before the applicable Funding Date.
(v) General Provisions Relating to Borrowing. Neither
Administrative Agent nor any Lender shall incur any liability to any
Borrower in acting upon any telephonic notice referred to above that
Administrative Agent believes in good faith to have been given by a duly
authorized officer or other person authorized to borrow on behalf of a
Borrower or for otherwise acting in good faith under this subsection
2.1B, and upon funding of Loans by Lenders in accordance with this
Agreement pursuant to any such telephonic notice, the applicable
Borrower shall have effected Loans hereunder.
The Borrower submitting any Notice of Borrowing shall notify
Administrative Agent prior to the funding of any Loans thereby requested in the
event that any of the matters to which such Borrower is required to certify in
the applicable Notice of Borrowing is no longer true and correct as of the
applicable Funding Date, and the acceptance by any Borrower of the proceeds of
any Loans shall constitute a re-certification by such Borrower, as of the
applicable Funding Date, as to the matters to which such Borrower is required to
certify in the applicable Notice of Borrowing.
Except as otherwise provided in subsections 2.6B, 2.6C and 2.6G,
a Notice of Borrowing for a Fixed Rate Loan (or telephonic notice in lieu
thereof) shall be irrevocable on and after the related Interest Rate
Determination Date, and the applicable Borrower shall be bound to make a
borrowing in accordance therewith.
C. DISBURSEMENT OF FUNDS.
(i) Funding Domestic Loans Other Than Swing Line Loans and
Negotiated Rate Loans. All Tranche A Domestic Loans (other than Swing
Line Loans and Negotiated Rate Loans) and Tranche B Domestic Loans, as
the case may be, under this Agreement shall be made by Domestic Lenders
simultaneously and
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proportionately to their respective Tranche A Domestic Pro Rata Shares
and Tranche B Domestic Pro Rata Shares, as the case may be. Promptly
after receipt by Administrative Agent of a Notice of Borrowing pursuant
to subsection 2.1B (or telephonic notice in lieu thereof) requesting a
Tranche A Domestic Loan (other than a Swing Line Loan or a Negotiated
Rate Loan) or a Tranche B Domestic Loan, as the case may be,
Administrative Agent shall notify each Domestic Lender of the proposed
borrowing. Each Domestic Lender shall make the amount of its Loan
available to Administrative Agent, in Dollars and same day funds, at the
Domestic Funding and Payment Office not later than 12:00 noon (New York
time) on the applicable Funding Date.
(ii) Funding Canadian Loans Other Than Swing Line Loans. All
Tranche A Canadian Loans (other than Swing Line Loans) and Tranche B
Canadian Loans, as the case may be, under this Agreement shall be made
by Canadian Lenders (including, in the case of Canadian/U.S. Loans, U.S.
Affiliates, as applicable) simultaneously and proportionately to their
respective Tranche A Canadian Pro Rata Shares and Tranche B Canadian Pro
Rata Shares, as the case may be. Promptly after receipt by
Administrative Agent of a Notice of Borrowing pursuant to subsection
2.1B (or telephonic notice in lieu thereof) requesting a Tranche A
Canadian Loan (other than a Swing Line Loan) or a Tranche B Canadian
Loan, as the case may be, Administrative Agent shall notify each
Canadian Lender of the proposed borrowing. Each Canadian Lender shall
make the amount of its Loan available to Administrative Agent, in same
day funds in the currency specified in the applicable Notice of
Borrowing, whether Dollars or Canadian Dollars, at the Domestic Funding
and Payment Office (in the case of any Canadian/U.S. Loans) or the
Canadian Funding and Payment Office (in the case of any Canadian Loans
other than Canadian/U.S. Loans), not later than 2:00 P.M. (New York
time) on the applicable Funding Date.
(iii) Disbursement of Loan Proceeds by Administrative Agent.
Except as provided in subsection 2.1A(v) with respect to Loans advanced
to refund Swing Line Loans and in subsection 3.3B with respect to
Tranche A Domestic Loans used to reimburse any Issuing Lender for the
amount of a drawing under a Letter of Credit issued by it, upon
satisfaction or waiver of the conditions precedent specified in
subsections 6.1 (in the case of Loans made on the Closing Date) and 6.2
(in the case of all Loans), Administrative Agent shall make the proceeds
of such Loans available to the applicable Borrower on the applicable
Funding Date by causing an amount of same day funds in Dollars or
Canadian Dollars, as the case may be, equal to the proceeds of all such
Loans received by Administrative Agent from Lenders to be credited to an
account of the applicable Borrower at the Domestic Funding and Payment
Office or Canadian Funding and Payment Office or to be wired to such
account with another financial institution as such Borrower may specify
in writing to Administrative Agent, as applicable.
(iv) Administrative Agent May Advance Funds; Failure of Lender
to Fund Loan. Except with respect to Negotiated Rate Loans, unless
Administrative Agent shall have been notified by any Lender prior to the
Funding Date for any Loans to be
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funded by such Lender that such Lender does not intend to make available
to Administrative Agent the amount of such Lender's Loan requested on
such Funding Date, Administrative Agent may assume that such Lender has
made such amount available to Administrative Agent on such Funding Date
and Administrative Agent may, in its sole discretion, but shall not be
obligated to, make available to the applicable Borrower a corresponding
amount on such Funding Date. If such corresponding amount is not in fact
made available to Administrative Agent by such Lender, Administrative
Agent shall be entitled to recover such corresponding amount on demand
from such Lender together with interest thereon, for each day from such
Funding Date until the date such amount is paid to Administrative Agent,
at the customary rate set by Administrative Agent for the correction of
errors among banks in the relevant currency for three Business Days and
thereafter at the applicable Deemed Floating Rate. If such Lender does
not pay such corresponding amount forthwith upon Administrative Agent's
demand therefor, Administrative Agent shall promptly notify the
applicable Borrower and such Borrower shall immediately pay such
corresponding amount to Administrative Agent together with interest
thereon, for each day from such Funding Date until the date such amount
is paid to Administrative Agent, at the applicable Deemed Floating Rate.
Nothing in this subsection 2.1C shall be deemed to relieve any Lender
from its obligation to fulfill its Tranche A Domestic Commitment,
Tranche A Canadian Commitment, Tranche B Domestic Commitment or Tranche
B Canadian Commitment hereunder or to prejudice any rights that any
Borrower may have against any Lender as a result of any default by such
Lender hereunder.
No Lender shall be responsible for any default by any other
Lender in that other Lender's obligation to make a Loan requested hereunder nor
shall the Tranche A Domestic Commitment, Tranche A Canadian Commitment, Tranche
B Domestic Commitment, Tranche B Canadian Commitment, Tranche A Domestic Swing
Line Commitment or Tranche A Canadian Swing Line Commitment of any Lender be
increased or decreased as a result of a default by any other Lender in that
other Lender's obligation to make a Loan requested hereunder.
(v) Funding Swing Line Loans or Negotiated Rate Loans;
Disbursement of Proceeds. Promptly after receipt by Administrative Agent
of a Notice of Borrowing pursuant to subsection 2.1B (or telephonic
notice in lieu thereof) requesting a Swing Line Loan or a Negotiated
Rate Loan, Administrative Agent shall forward a copy of such notice to
the Swing Line Lenders or the applicable Lender(s) specified therein.
The Swing Line Lenders in respect of Tranche A Domestic Swing Line Loans
shall make the proceeds of any Swing Line Loans to be made by such Swing
Line Lender promptly available to Administrative Agent, in Dollars and
same day funds, at the Domestic Funding and Payment Office, on the
applicable Funding Date. Upon satisfaction or waiver of the conditions
precedent specified in subsections 6.1 (in the case of Loans made on the
Closing Date) and 6.2 (in the case of all Loans), the Administrative
Agent shall make the proceeds of any Swing Line Loans to be made by a
Swing Line Lender available to the applicable Borrower on the applicable
Funding Date by causing an amount equal to the proceeds of such Swing
Line Loan,
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in same day funds and in Dollars or Canadian Dollars, as the case may
be, to be credited to such account of the applicable Borrower as may be
agreed to by the applicable Borrower and Swing Line Lender. Upon
satisfaction or waiver of the conditions precedent specified in
subsections 6.1 (in the case of Loans made on the Closing Date) and 6.2
(in the case of all Loans), the Lender in respect of a Negotiated Rate
Loan shall make the proceeds of any Negotiated Rate Loan available to
Company on the applicable Funding Date by causing an amount equal to the
proceeds of such Loan, in same day funds and in Dollars to be credited
to such account of the applicable Borrower as may be agreed to by
Company and Lender.
D. THE REGISTER.
(i) Administrative Agent shall maintain, at its address referred
to in subsection 13.8, a register for the recordation of the names and
addresses of Lenders, the Tranche A Domestic Commitment, Tranche A
Canadian Commitment, Tranche B Domestic Commitment, Tranche B Canadian
Commitment and Loans of each Lender, and the Tranche A Domestic Swing
Line Commitment, Tranche A Canadian Swing Line Commitment and Swing Line
Loans of each Swing Line Lender from time to time (the "REGISTER"). The
Register shall be available for inspection by any Borrower or any Lender
at any reasonable time and from time to time upon reasonable prior
notice.
(ii) Administrative Agent shall record in the Register the
Tranche A Domestic Commitment, Tranche A Canadian Commitment, Tranche B
Domestic Commitment, Tranche B Canadian Commitment and the Loans from
time to time of each Lender and the Tranche A Domestic Swing Line
Commitment and Tranche A Canadian Swing Line Commitment of each Swing
Line Lender and each repayment or prepayment in respect of the principal
amount of the Loans of each Lender. Any such recordation shall be
conclusive and binding on Borrowers and each Lender, absent manifest or
demonstrable error; provided that failure to make any such recordation,
or any error in such recordation, shall not affect any Borrower's
Obligations in respect of the applicable Loans.
(iii) Each Lender shall record on its internal records
(including, without limitation, any Note held by such Lender) the amount
of each Loan made by it and each payment in respect thereof. Any such
recordation shall be conclusive and binding on Borrowers and such
Lender, absent manifest or demonstrable error; provided that failure to
make any such recordation, or any error in such recordation, shall not
affect any Borrower's Obligations in respect of the applicable Loans;
and provided, further that in the event of any inconsistency between the
Register and any Lender's records, the recordations in the Register
shall govern.
(iv) Borrowers, Administrative Agent and Lenders shall deem and
treat the Persons listed as Lenders in the Register as the holders and
owners of the corresponding Tranche A Domestic Commitments, Tranche A
Canadian Commitments, Tranche B Domestic Commitments, Tranche B Canadian
Commitments, Tranche A Domestic Swing Line Commitments, Tranche A
Canadian
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Swing Line Commitments and Loans listed therein for all purposes hereof,
and no assignment or transfer of any such Tranche A Domestic Commitment,
Tranche A Canadian Commitment, Tranche B Domestic Commitment, Tranche B
Canadian Commitment, Tranche A Domestic Swing Line Commitment, Tranche A
Canadian Swing Line Commitment or Loan shall be effective, in each case
unless and until an Assignment Agreement effecting the assignment or
transfer thereof shall have been accepted by Administrative Agent and
recorded in the Register as provided in subsection 13.1B(ii). Prior to
such recordation, all amounts owed with respect to the applicable
Tranche A Domestic Commitment, Tranche A Canadian Commitment, Tranche B
Domestic Commitment, Tranche B Canadian Commitment, Tranche A Domestic
Swing Line Commitment, Tranche A Canadian Swing Line Commitment or Loan
shall be owed to the Lender listed in the Register as the owner thereof,
and any request, authority or consent of any Person who, at the time of
making such request or giving such authority or consent, is listed in
the Register as a Lender shall be conclusive and binding on any
subsequent holder, assignee or transferee of the corresponding Tranche A
Domestic Commitment, Tranche A Canadian Commitment, Tranche B Domestic
Commitment, Tranche B Canadian Commitment, Tranche A Domestic Swing Line
Commitment, Tranche A Canadian Swing Line Commitment or Loan.
(v) Company hereby designates Administrative Agent to serve as
Company's agent solely for purposes of maintaining the Register as
provided in this subsection 2.1D, and Company hereby agrees that, to the
extent Administrative Agent serves in such capacity, Administrative
Agent and its officers, directors, employees, agents and affiliates
shall constitute Indemnitees for all purposes under subsection 13.3.
E. OPTIONAL NOTES. If so requested by any Lender by written notice to
any Borrower (with a copy to Administrative Agent) at least two Business Days
prior to the Closing Date or at any time thereafter, such Borrower shall execute
and deliver to such Lender (and/or, if applicable and if so specified in such
notice, to any Person who is an assignee of such Lender pursuant to subsection
13.1) on the Closing Date (or, if such notice is delivered after the Closing
Date, promptly after such Borrower's receipt of such notice) a promissory note
to evidence such Lender's Loans to such Borrower, substantially in the form of
Exhibit IV-A annexed hereto, in the case of Domestic Loans and Canadian/U.S.
Loans advanced to Company or Exhibit IV-B annexed hereto, in the case of
Canadian Loans advanced to Canada Safeway, in each case with appropriate
insertions.
Administrative Agent may deem and treat the payee of any Note as
the owner thereof for all purposes hereof unless and until an Assignment
Agreement effecting the assignment or transfer thereof shall have been accepted
by Administrative Agent as provided in subsection 13.1B(ii). Any request,
authority or consent of any person or entity who, at the time of making such
request or giving such authority or consent, is the record holder of any Note
shall be conclusive and binding on any subsequent holder, assignee or transferee
of that Note or of any Note or Notes issued in exchange therefor.
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2.2 INTEREST ON THE LOANS.
A. RATE OF INTEREST. (i) Domestic Loans (other than Swing Line Loans or
Negotiated Rate Loans) shall bear interest on the unpaid principal amount
thereof from the date made through maturity (whether by acceleration or
otherwise) at a rate determined by reference to the Domestic Base Rate or the
Adjusted Eurodollar Rate. Canadian Loans denominated in Canadian Dollars (other
than Swing Line Loans) shall bear interest on the unpaid principal amount
thereof from the date made through maturity (whether by acceleration or
otherwise) at a rate determined by reference to the Canadian Prime Rate;
Canadian Loans made to Canada Safeway and denominated in Dollars (other than
Swing Line Loans) shall bear interest on the unpaid principal amount thereof
from the date made through maturity (whether by acceleration or otherwise) at a
rate determined by reference to the Canadian Base Rate or the Canadian
Eurodollar Rate; Canadian/U.S. Loans shall bear interest on the unpaid principal
amount thereof from the date made through maturity (whether by acceleration or
otherwise) at a rate determined by reference to the Domestic Base Rate or the
Adjusted Eurodollar Rate. Tranche A Domestic Swing Line Loans shall bear
interest at a rate determined by reference to the Domestic Base Rate; Tranche A
Canadian Swing Line Loans denominated in Dollars shall bear interest at a rate
determined by reference to the Canadian Base Rate; and Tranche A Canadian Swing
Line Loans denominated in Canadian Dollars shall bear interest at a rate
determined by reference to the Canadian Prime Rate. The applicable basis for
determining the rate of interest on Loans shall be selected by the applicable
Borrower at the time such Borrower submits a Notice of Borrowing pursuant to
subsection 2.1B or a Notice of Conversion/Continuation is given pursuant to
subsection 2.2D. If on any date a Loan is outstanding with respect to which
notice has not been delivered to Administrative Agent in accordance with the
terms of this Agreement specifying the basis for determining the rate of
interest, then for that day that Loan shall bear interest determined by
reference to the applicable Deemed Floating Rate.
(ii) Subject to the provisions of subsections 2.2E and 5.1,
Domestic Loans (other than Tranche A Domestic Swing Line Loans or
Negotiated Rate Loans) shall bear interest as follows:
(a) if a Tranche A Domestic Base Rate Loan or a Tranche
B Domestic Base Rate Loan, then at the Domestic Base Rate per
annum; or
(b) if a Tranche A Domestic Eurodollar Rate Loan, then
at a rate per annum equal to the sum of the Adjusted Eurodollar
Rate for the applicable Interest Period plus the Tranche A
Pricing Margin; or
(c) if a Tranche B Domestic Eurodollar Rate Loan, then
at a rate per annum equal to the sum of the Adjusted Eurodollar
Rate for the applicable Interest Period plus the Tranche B
Pricing Margin.
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(iii) Subject to the provisions of subsections 2.2E and 5.1,
Canadian Loans (other than Tranche A Canadian Swing Line Loans) made to
Canada Safeway and denominated in Dollars shall bear interest as
follows:
(a) if a Tranche A Canadian Base Rate Loan or a Tranche
B Canadian Base Rate Loan, then at the Canadian Base Rate per
annum; or
(b) if a Tranche A Canadian Eurodollar Rate Loan, then
at a rate per annum equal to the sum of the Canadian Eurodollar
Rate for the applicable Interest Period plus the Tranche A
Pricing Margin; or
(c) if a Tranche B Canadian Eurodollar Rate Loan, then
at a rate per annum equal to the sum of the Canadian Eurodollar
Rate for the applicable Interest Period plus the Tranche B
Pricing Margin.
(iv) Subject to the provisions of subsections 2.2E and 5.1,
Canadian/U.S. Loans shall bear interest as follows:
(a) if a Canadian/U.S. Base Rate Loan, then at the
Domestic Base Rate per annum; or
(b) if a Canadian/U.S. Eurodollar Rate Loan in respect
of the Tranche A Canadian Commitments, then at a rate per annum
equal to the sum of the Adjusted Eurodollar Rate for the
applicable Interest Period plus the Tranche A Pricing Margin; or
(c) if a Canadian/U.S. Eurodollar Rate Loan in respect
of the Tranche B Canadian Commitments, then at a rate per annum
equal to the sum of the Adjusted Eurodollar Rate for the
applicable Interest Period plus the Tranche B Pricing Margin.
(v) Subject to the provisions of subsections 2.2E and 5.1,
Canadian Loans (other than Tranche A Canadian Swing Line Loans)
denominated in Canadian Dollars shall bear interest at the Canadian
Prime Rate per annum.
(vi) Subject to the provisions of subsections 2.2E and 5.1,
Tranche A Canadian Swing Line Loans denominated in Dollars shall bear
interest at a rate per annum equal to the Canadian Base Rate minus the
Tranche A Facility Fee Percentage, as in effect from time to time;
Tranche A Canadian Swing Line Loans denominated in Canadian Dollars
shall bear interest at a rate equal to the Canadian Prime Rate minus the
Tranche A Facility Fee Percentage, as in effect from time to time; and
Tranche A Domestic Swing Line Loans shall bear interest at a rate per
annum equal to the Domestic Base Rate minus the Tranche A Facility Fee
Percentage, as in effect from time to time.
(vii) Subject to the provisions of subsections 2.2E and 5.1,
each Negotiated Rate Loan shall bear interest at the Negotiated Rate
applicable thereto.
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Notwithstanding the foregoing, if Company fails to deliver a
Pricing Level Determination Certificate when due pursuant to subsection 8.1(iv)
or delivers an incorrect Pricing Level Determination Certificate and as the
result thereof the amount of interest paid by the applicable Borrower for any
period is less than it would have been if a correct Pricing Level Determination
Certificate had been timely delivered in accordance with the provisions of
subsection 8.1(iv), the amount of interest payable on the next Quarterly Payment
Date following the delivery of a correct Pricing Level Determination Certificate
(or the Tranche A Termination Date or Tranche B Term Termination Date, as the
case may be, if no Quarterly Payment Date will occur prior thereto) shall be
increased by any additional amount of interest that would have accrued during
such period if the Pricing Level had been correctly and timely determined.
B. INTEREST PERIODS. In connection with each Fixed Rate Loan, the
applicable Borrower may, pursuant to the applicable Notice of Borrowing or
Notice of Conversion/Continuation, as the case may be, select an interest period
(each an "INTEREST PERIOD") to be applicable to such Loan, which Interest Period
shall be, at Company's option, either a 14-day or one, two, three or six month
period or, if permitted under clause (vii) of this subsection 2.2B, a nine or
twelve month period; provided that:
(i) the initial Interest Period for any Fixed Rate Loan shall
commence on the Funding Date in respect of such Loan, in the case of a
Loan initially made as a Fixed Rate Loan, or on the date specified in
the applicable Notice of Conversion/Continuation, in the case of a Loan
converted to a Fixed Rate Loan;
(ii) in the case of immediately successive Interest Periods
applicable to a Fixed Rate Loan continued as such pursuant to a Notice
of Conversion/Continuation, each successive Interest Period shall
commence on the day on which the next preceding Interest Period expires;
(iii) if an Interest Period would otherwise expire on a day that
is not a Business Day, such Interest Period shall expire on the next
succeeding Business Day; provided that, if any Interest Period would
otherwise expire on a day that is not a Business Day but is a day of the
month after which no further Business Day occurs in such month, such
Interest Period shall expire on the next preceding Business Day;
(iv) any Interest Period that begins on the last Business Day of
a calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest
Period) shall, subject to clause (v) of this subsection 2.2B and except
in the case of a 14-day Interest Period, end on the last Business Day of
a calendar month;
(v) no Interest Period with respect to any portion of the Loans
shall extend beyond (a) the Tranche A Termination Date in the case of
Tranche A Domestic Loans, Tranche A Canadian Loans, Tranche A Domestic
Swing Line Loans and Tranche A Canadian Swing Line Loans, and (b) the
Tranche B Term Termination Date in the case of Tranche B Domestic Loans
and Tranche B Canadian Loans;
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(vi) there shall be no more than 20 Interest Periods outstanding
at any time; provided that there shall be no more than 8 Interest
Periods outstanding at any time with respect to the Tranche A Canadian
Loans and Tranche B Canadian Loans in the aggregate;
(vii) no Fixed Rate Loan shall have an Interest Period of nine
or twelve months unless Administrative Agent, after consultation with
the Lenders that will fund such Loan, has received notice from each such
Lender that said Lender has determined in good faith based on prevailing
conditions in the Eurodollar market, that Dollar deposits are generally
offered by such Lenders to first class banks in the Eurodollar market
for a comparable maturity (and Administrative Agent shall notify Company
of any notice it receives from any Lender to the contrary); and
(viii) in the event the applicable Borrower fails to specify an
Interest Period for any Fixed Rate Loan in the applicable Notice of
Borrowing or Notice of Conversion/Continuation, such Borrower shall be
deemed to have selected an Interest Period of one month.
C. INTEREST PAYMENTS; PAYMENT CURRENCY. Subject to the provisions of
subsection 2.2E, interest on each Loan shall be payable in arrears on and to
each Interest Payment Date applicable to that Loan, upon any prepayment of that
Loan (to the extent accrued on the amount being prepaid) and at maturity
(including final maturity). Interest in respect of any Loan denominated in
Dollars shall accrue and be paid in Dollars; interest in respect to any Loan
denominated in Canadian Dollars shall accrue and be paid in Canadian Dollars.
D. CONVERSION OR CONTINUATION. Subject to the provisions of subsection
2.6, each Borrower shall have the option (i) to continue all or any part of its
outstanding Fixed Rate Loans in an amount equal to U.S./Cdn.$10,000,000 and
integral multiples thereof or (ii) to convert all or any part of its outstanding
Loans in an amount equal to U.S./Cdn.$10,000,000 and integral multiples of
U.S.$10,000,000 (in the case of Domestic Loans) or U.S./Cdn.$1,000,000 (in the
case of Canadian Loans) in excess thereof from Loans bearing interest at a rate
determined by reference to one basis to Loans bearing interest at a rate
determined by reference to an alternative basis provided (a) Tranche A Domestic
Loans may be continued as or converted into Tranche A Domestic Base Rate Loans
or Tranche A Domestic Eurodollar Rate Loans only, Tranche A Canadian Loans
(other than Canadian/U.S. Loans) denominated in Dollars may be continued as or
converted into Tranche A Canadian Eurodollar Rate Loans or Tranche A Canadian
Base Rate Loans only, Canadian/U.S. Loans, in respect of Tranche A Canadian
Commitments may be continued as or converted into Canadian/U.S. Eurodollar Rate
Loans or Canadian/U.S. Base Rate Loans only, in respect of Tranche A Canadian
Commitments, Tranche A Canadian Loans denominated in Canadian Dollars may not be
converted but shall at all times be Tranche A Canadian Prime Rate Loans, Swing
Line Loans may not be converted but shall at all times bear interest as provided
in subsection 2.2A(vi) and Negotiated Rate Loans may not be converted or
continued but shall at all times bear interest at the applicable Negotiated
Rate; (b) Tranche B Domestic Loans may be continued as or converted into Tranche
B Domestic Base Rate Loans or Tranche B Domestic Eurodollar Rate Loans only,
Tranche B Canadian Loans (other than Canadian/U.S.
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Loans) denominated in Dollars may be continued as or converted into Tranche B
Canadian Eurodollar Rate Loans or Tranche B Canadian Base Rate Loans only,
Canadian/U.S. Loans, in respect of Tranche B Canadian Commitments, may be
continued as or converted into Canadian/U.S. Eurodollar Rate Loans or
Canadian/U.S. Base Rate Loans only, in respect of Tranche B Canadian
Commitments, and Tranche B Canadian Loans denominated in Canadian Dollars may
not be converted but shall at all times be Tranche B Canadian Prime Rate Loans;
(c) Floating Rate Loans may be converted into Fixed Rate Loans at any time, and,
subject to subsection 2.6D, Fixed Rate Loans may be converted or continued at
any time; and (d) no Loan may be continued as or converted into a Fixed Rate
Loan at any time that an Event of Default has occurred and is continuing.
The applicable Borrower shall deliver a Notice of
Conversion/Continuation to Administrative Agent no later than 1:00 P.M. (New
York time) at least one Business Day in advance of the proposed conversion date
in the case of a conversion to a Floating Rate Loan and at least three Business
Days in advance of the proposed conversion/continuation date in the case of a
conversion to, or a continuation of, a Fixed Rate Loan. A Notice of
Conversion/Continuation shall specify (i) the Borrower, (ii) the proposed
conversion/continuation date (which shall be a Business Day), (iii) the amount
and type of the Loan to be converted/continued, (iv) the nature of the proposed
conversion/continuation, (v) in the case of a conversion to, or a continuation
of, a Fixed Rate Loan, the requested Interest Period, and (vi) in the case of a
conversion to, or a continuation of, a Fixed Rate Loan, that no Event of Default
has occurred and is continuing. In lieu of delivering the above-described Notice
of Conversion/Continuation, the applicable Borrower may give Administrative
Agent telephonic notice by the required time of any proposed
conversion/continuation under this subsection 2.2D; provided that such notice
shall be promptly confirmed in writing by delivery of a Notice of
Conversion/Continuation to Administrative Agent on or before the proposed
conversion/continuation date.
Neither Administrative Agent nor any Lender shall incur any
liability to any Borrower in acting upon any telephonic notice referred to above
that Administrative Agent believes in good faith to have been given by a duly
authorized officer or other person authorized to act on behalf of a Borrower or
for otherwise acting in good faith under this subsection 2.2D, and upon
conversion or continuation of the applicable basis for determining the interest
rate with respect to any Loans in accordance with this Agreement pursuant to any
such telephonic notice the applicable Borrower shall have effected a conversion
or continuation, as the case may be, hereunder.
Except as otherwise provided in subsections 2.6B, 2.6C and 2.6G,
a Notice of Conversion/Continuation for conversion to, or continuation of, a
Fixed Rate Loan (or telephonic notice in lieu thereof) shall be irrevocable on
and after the related Interest Rate Determination Date, and the Borrower
submitting any such Notice of Conversion/Continuation shall be bound to effect a
conversion or continuation in accordance therewith unless such Borrower pays to
Lenders such amounts as may be due under subsection 2.6D for failure of a
conversion to or continuation of any Fixed Rate Loan to occur on the date
specified therefor in the Notice of Conversion/Continuation (or telephonic
notice in lieu thereof).
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E. POST-MATURITY INTEREST. Any principal payments on the Loans not paid
when due and, to the extent permitted by applicable law, any interest payments
on the Loans not paid when due, in each case whether at stated maturity, by
notice of prepayment, by acceleration or otherwise, shall thereafter bear
interest (including post-petition interest in any proceeding under the
Bankruptcy Code or other applicable Insolvency Laws) payable on demand at a rate
which is 2% per annum in excess of the interest rate otherwise payable under
this Agreement with respect to the applicable Loans; provided that, in the case
of Fixed Rate Loans, upon the expiration of the Interest Period in effect at the
time any such increase in interest rate is effective, such Fixed Rate Loans
shall thereupon become Floating Rate Loans and shall thereafter bear interest
payable upon demand at a rate which is 2% per annum in excess of the applicable
Deemed Floating Rate. Payment or acceptance of the increased rates of interest
provided for in this subsection 2.2E is not a permitted alternative to timely
payment and shall not constitute a waiver of any Event of Default or otherwise
prejudice or limit any rights or remedies of any Primary Agent or Lender.
F. COMPUTATION OF INTEREST. Interest on the Loans shall be computed (i)
in the case of Floating Rate Loans and Swing Line Loans, on the basis of a
365-day or 366-day year, as the case may be, (ii) in the case of Fixed Rate
Loans, on the basis of a 360-day year, and (iii) in the case of any Negotiated
Rate Loans, on such basis as is agreed upon by Company and the Lender advancing
such Loan, in each case for the actual number of days elapsed in the period
during which it accrues. In computing interest on any Loan, the date of the
making of such Loan or the first day of an Interest Period applicable to such
Loan or, with respect to a Floating Rate Loan being converted from a Fixed Rate
Loan, the date of conversion of such Fixed Rate Loan to such Floating Rate Loan,
as the case may be, shall be included, and the date of payment of such Loan or
the expiration date of an Interest Period applicable to such Loan or, with
respect to a Floating Rate Loan being converted to a Fixed Rate Loan, the date
of conversion of such Floating Rate Loan to such Fixed Rate Loan, as the case
may be, shall be excluded; provided that if a Loan is repaid on the same day on
which it is made, one day's interest shall be paid on that Loan.
G. CANADIAN INTEREST PROVISIONS. For purposes of disclosure pursuant to
the Interest Act (Canada), the parties hereto acknowledge that with respect to
any Loan to Canada Safeway which is expressed as a rate for a period of less
than one year, the yearly rate of interest to which any such rate is equivalent
is the rate for the applicable period divided by the number of days in such
period and multiplied by the actual number of days in the year.
2.3 FEES.
A. FACILITY FEES. Company agrees to pay to Administrative Agent, for
distribution to each Domestic Lender in proportion to that Lender's Tranche A
Domestic Pro Rata Share, facility fees for the period from and including the
Closing Date to and excluding such Lender's Tranche A Termination Date equal to
the average of the daily Tranche A Domestic Commitments during each fiscal
quarter of Company multiplied by the Tranche A Facility Fee Percentage, as in
effect from time to time. Canada Safeway agrees to pay to Administrative Agent,
for distribution to each Canadian Lender (excluding any U.S. Affiliate) in
proportion to that Lender's Tranche A Canadian Pro Rata Share, facility fees for
the period from and including Closing Date to and excluding such Lender's
Tranche A Termination
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Date equal to the average of the daily Tranche A Canadian Commitments during
each fiscal quarter of Company multiplied by the Tranche A Facility Fee
Percentage, as in effect from time to time. Company agrees to pay to
Administrative Agent, for distribution to each Domestic Lender in proportion to
that Lender's Tranche B Domestic Pro Rata Share, facility fees for the period
from and including the Closing Date to and excluding such Lender's Tranche B
Revolving Termination Date equal to the average of the daily Tranche B Domestic
Commitments during each fiscal quarter of Company multiplied by the Tranche B
Facility Fee Percentage, as in effect from time to time. Company agrees to pay
to Administrative Agent, for distribution to each Domestic Lender in proportion
to that Lender's Tranche B Domestic Pro Rata Share, facility fees for the period
from and including such Lender's Tranche B Revolving Termination Date to and
excluding such Lender's Tranche B Term Termination Date equal to the average of
the daily Tranche B Domestic Loans outstanding during each fiscal quarter of
Company during such period multiplied by the Tranche B Facility Fee Percentage,
as in effect from time to time. Canada Safeway agrees to pay to Administrative
Agent, for distribution to each Canadian Lender (excluding any U.S. Affiliate)
in proportion to that Lender's Tranche B Canadian Pro Rata Share, facility fees
for the period from and including Closing Date to and excluding such Lender's
Tranche B Revolving Termination Date equal to the average of the daily Tranche B
Canadian Commitments during each fiscal quarter of Company multiplied by the
Tranche B Facility Fee Percentage, as in effect from time to time. In the event
(i) any Tranche A Domestic Loans or Tranche A Canadian Loans remain outstanding
beyond any Lender's Tranche A Termination Date or (ii) any Tranche B Domestic
Loans or Tranche B Canadian Loans remain outstanding beyond any Lender's Tranche
B Term Termination Date, the facility fees described in this subsection 2.3A
shall continue to accrue on such Loans and be due and payable as described in
this subsection 2.3A. All such facility fees described in this subsection 2.3A
are to be calculated on the basis of a 360-day year and the actual number of
days elapsed and to be payable quarterly in arrears on each Quarterly Payment
Date, commencing on the first such date to occur after the Closing Date, and on
each Lender's Tranche A Termination Date, Tranche B Revolving Termination Date
and Tranche B Term Termination Date, as the case may be.
Notwithstanding the foregoing, if Company fails to deliver a
Pricing Level Determination Certificate when due in accordance with the
provisions of subsection 8.1(iv) or delivers an incorrect Pricing Level
Determination Certificate, and as the result thereof, the amount of facility
fees paid by Company for any period is less than it would have been if a correct
Pricing Level Determination Certificate had been timely delivered in accordance
with the provisions of subsection 8.1(iv), the amount of facility fees payable
on the next Quarterly Payment Date following the delivery of a correct Pricing
Level Determination Certificate (or the Tranche A Termination Date or Tranche B
Revolving Termination Date, as the case may be, if no Quarterly Payment Date
will occur prior thereto) shall be increased by any additional amount of
facility fees that would have accrued during such period if the Pricing Level
had been correctly and timely determined.
B. OTHER FEES. Company agrees to pay such other fees in the amounts and
at the times as may be separately agreed upon by Company in connection with this
Agreement.
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C. UTILIZATION FEE. The Company shall pay to the Agent for distribution
to each Lender as provided herein, a utilization fee based on the actual
Aggregate Total Utilization with respect to each day on which Aggregate Total
Utilization outstanding exceeds 33% of the Aggregate Commitments. The amount of
the utilization fee will equal 0.35% per annum of the Aggregate Total
Utilization during each day the Aggregate Total Utilization exceeds 33% of the
Aggregate Commitments and shall be increased to 0.65% per annum of the Aggregate
Total Utilization during each day the Aggregate Total Utilization exceed 67% of
the Aggregate Commitments. The utilization fee shall be payable to each Lender
in proportion to such Lender's Aggregate Pro Rata Share. In the event that any
Lender's Loans or other Obligations in respect of the Tranche A Domestic
Commitments or the Tranche A Canadian Commitments remain outstanding beyond such
Lender's Tranche A Termination Date, a utilization fee of 0.65% per annum of the
Total Utilization of Tranche A Domestic Commitments and the Total Utilization of
Tranche A Canadian Commitments shall accrue on such amount and be due and
payable as described in this subsection 2.3C. In the event that any Lender's
Loans or other Obligations in respect of Tranche B Domestic Commitments or
Tranche B Canadian Commitments remain outstanding beyond such Lender's Tranche B
Revolving Termination Date, a utilization fee of 0.65% per annum of the Total
Utilization of Tranche B Domestic Commitments and the Total Utilization of
Tranche B Canadian Commitments shall accrue on such amount for the period from
and including such Lender's Tranche B Revolving Termination Date, to and
excluding such Lender's Tranche B Term Termination Date. In the event any Loans
or other Obligations in respect of Tranche B Domestic Commitments or the Tranche
B Canadian Commitments remain outstanding beyond any Lender's Tranche B Term
Termination Date, the utilization fees described in the previous sentence shall
continue to accrue on such Loans and be due and payable as described in this
subsection 2.3C. All such utilization fees described in this subsection 2.3C are
to be payable quarterly in arrears on each Quarterly Payment Date, and with
respect of the Loans and other Obligations incurred pursuant to the Tranche A
Commitments, on each Tranche A Domestic Lender's Tranche A Termination Date and
Tranche A Canadian Lender's Tranche A Termination Date, and with respect of the
Loans and other Obligations incurred pursuant to the Tranche B Commitments, the
Tranche B Domestic Lender's Tranche B Revolving Termination Date and Tranche B
Term Termination Date, and Tranche B Canadian Lender's Tranche B Revolving
Termination Date and Tranche B Term Termination Date.
2.4 PREPAYMENTS AND REDUCTIONS IN COMMITMENTS; GENERAL PROVISIONS REGARDING
PAYMENTS.
A. PREPAYMENTS AND REDUCTIONS IN COMMITMENTS.
(i) Voluntary Prepayments. Each Borrower may, upon written or
telephonic notice delivered to Administrative Agent not later than 12:00
noon (New York time) on any prepayment date, prepay the Swing Line Loans
in whole or in part in an aggregate minimum amount of
U.S./Cdn.$1,000,000 and integral multiples of U.S./Cdn.$500,000 in
excess thereof. Each Borrower may upon not less than one Business Day's
prior written or telephonic notice, in the case of Floating Rate Loans,
and three Business Days' prior written or telephonic notice, in the case
of Fixed Rate
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Loans, in each case given to Administrative Agent by 12:00 noon (New
York time) on the date required and, if given by telephone, promptly
confirmed in writing to Administrative Agent (which original written or
telephonic notice Administrative Agent will promptly transmit by
telecopy or telephone to each Lender), at any time and from time to time
prepay any Loans on any Business Day in whole or in part in an aggregate
minimum amount of (a) U.S.$50,000,000 and integral multiples of
U.S.$10,000,000 in excess of that amount, in the case of Domestic Loans,
or (b) U.S./Cdn.$10,000,000 and integral multiples of
U.S./Cdn.$1,000,000 in excess of that amount, in the case of Canadian
Loans; provided, however, that a Fixed Rate Loan may only be prepaid
prior to the expiration of the Interest Period applicable thereto upon
the applicable Borrower's payment of any amounts that may, as a result
of such prepayment, be due and payable to Lenders pursuant to subsection
2.6D. Any Negotiated Rate Loan may be prepaid only upon such terms and
conditions as are agreed to by the Lender funding such Negotiated Rate
Loan. Notice of prepayment having been given as aforesaid, the principal
amount of the Loans specified in such notice shall become due and
payable on the prepayment date specified therein. Any such voluntary
prepayment shall be applied as specified in subsection 2.4A(iv).
(ii) Voluntary Reductions of Commitments. Company may, upon not
less than three Business Days' prior written or telephonic notice
confirmed in writing to Administrative Agent (which original written or
telephonic notice Administrative Agent will promptly transmit by
telecopy or telephone to each Domestic Lender or Canadian Lender, as the
case may be), at any time and from time to time terminate in whole or
permanently reduce in part, without premium or penalty, the Tranche A
Domestic Commitments, the Tranche A Canadian Commitments, the Tranche B
Domestic Commitments, or the Tranche B Canadian Commitments in an amount
up to the amount by which the Tranche A Domestic Commitments exceed the
Total Utilization of Tranche A Domestic Commitments, the Tranche A
Canadian Commitments exceed the Total Utilization of Tranche A Canadian
Commitments, the Tranche B Domestic Commitments exceed the Total
Utilization of Tranche B Domestic Commitments or the Tranche B Canadian
Commitments exceed the Total Utilization of Tranche B Canadian
Commitments, respectively, at the time of such proposed termination or
reduction; provided that any such partial reduction of the Tranche A
Domestic Commitments or the Tranche B Domestic Commitments shall be in
an aggregate minimum amount of U.S.$50,000,000 and integral multiples of
U.S.$10,000,000 in excess of that amount and any such partial reduction
of the Tranche A Canadian Commitments or Tranche B Canadian Commitments
shall be in an aggregate minimum amount of U.S.$10,000,000 and integral
multiples of U.S.$1,000,000 in excess of that amount. Company's notice
to Administrative Agent shall designate the date (which shall be a
Business Day) of such termination or reduction and the amount of any
partial reduction, and such termination or reduction of the Tranche A
Domestic Commitments, Tranche A Canadian Commitments, Tranche B Domestic
Commitments or Tranche B Canadian Commitments shall be effective on the
date specified in Company's notice and shall reduce the Tranche A
Domestic Commitment or Tranche B Domestic Commitment of each Domestic
Lender or Tranche A Canadian Commitment or Tranche B Canadian Commitment
of
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each Canadian Lender, as applicable, proportionately to its Tranche A
Domestic Pro Rata Share, Tranche A Canadian Pro Rata Share, Tranche B
Domestic Pro Rata Share or Tranche B Canadian Pro Rata Share,
respectively.
(iii) Mandatory Prepayments. Borrowers shall from time to time
prepay their respective Loans (and in the case of Canada Safeway, after
repayment of its outstanding Loans, its outstanding Acceptances) to the
extent necessary (1) so that the Total Utilization of Tranche A Domestic
Commitments shall not at any time exceed the Tranche A Domestic
Commitments, (2) so that the Total Utilization of Tranche A Canadian
Commitments shall not at any time exceed the Tranche A Canadian
Commitments, (3) so that the Total Utilization of Tranche B Domestic
Commitments shall not at any time exceed the Tranche B Domestic
Commitments, and (4) so that the Total Utilization of Tranche B Canadian
Commitments shall not at any time exceed the Tranche B Canadian
Commitments; provided that if the Total Utilization of Tranche A
Canadian Commitments at any time exceeds the Tranche A Canadian
Commitments or Total Utilization of Tranche B Canadian Commitments at
any time exceeds the Tranche B Canadian Commitments solely as a result
of a change in the relative exchange rate for Dollars and Canadian
Dollars, Canada Safeway shall within five Business Days of such change
in such exchange rate prepay Tranche A Canadian Loans or Tranche B
Canadian Loans, as the case may be, or, to the extent no Tranche A
Canadian Loans or Tranche B Canadian Loans, as the case may be, are
outstanding, Acceptances in an amount necessary so that the Total
Utilization of Tranche A Canadian Commitments and the Total Utilization
of Tranche B Canadian Commitments, respectively, is equal to or less
than the Tranche A Canadian Commitments and the Tranche B Canadian
Commitments, respectively. Any mandatory prepayments pursuant to this
subsection 2.4A(iii) shall be applied as specified in subsection
2.4A(iv).
(iv) Application of Prepayments to Swing Line Loans, Floating
Rate Loans and Fixed Rate Loans. Any prepayment by Company of Tranche A
Domestic Loans shall be applied first to Tranche A Domestic Swing Line
Loans of Company to the full extent thereof, second to Tranche A
Domestic Base Rate Loans of Company to the full extent thereof and third
to Tranche A Domestic Eurodollar Rate Loans of Company, in each case in
a manner which minimizes the amount of any payments required to be made
by Company pursuant to subsection 2.6D. Any prepayment by Company of
Tranche B Domestic Loans shall be applied first to Tranche B Domestic
Base Rate Loans of Company to the full extent thereof and second to
Tranche B Domestic Eurodollar Rate Loans of Company, in each case in a
manner which minimizes the amount of any payments required to be made by
Company pursuant to subsection 2.6D. Any prepayment by Company of
Canadian/U.S. Loans shall be applied first to Canadian/U.S. Base Rate
Loans to the full extent thereof and second to Canadian/U.S. Eurodollar
Rate Loans, in each case in a manner which minimizes the amount of any
payments required to be made by Company pursuant to subsection 2.6D. Any
prepayment in any currency (whether Dollars or Canadian Dollars) by
Canada Safeway of Tranche A Canadian Loans shall be applied first to
Tranche A Canadian Swing Line Loans denominated in such currency to the
full
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extent thereof, second to Floating Rate Loans of Canada Safeway
denominated in such currency to the full extent thereof and third to
Fixed Rate Loans of Canada Safeway denominated in such currency, in each
case in a manner which minimizes the amount of any payments required to
be made by Canada Safeway pursuant to subsection 2.6D. Any prepayment in
any currency (whether Dollars or Canadian Dollars) by Canada Safeway of
Tranche B Canadian Loans shall be applied first to Floating Rate Loans
of Canada Safeway denominated in such currency to the full extent
thereof and second to Fixed Rate Loans of Canada Safeway denominated in
such currency, in each case in a manner which minimizes the amount of
any payments required to be made by Canada Safeway pursuant to
subsection 2.6D. The applicable Borrower shall, upon making any
prepayment, specify whether such prepayment is to be applied to Tranche
A Domestic Loans, Tranche A Canadian Loans, Tranche B Domestic Loans or
Tranche B Canadian Loans, as applicable.
(v) Prepayments to Remove a Lender. In the event Company is
entitled to replace a non-consenting Lender pursuant to subsection
13.6B, each Borrower shall have the right, upon five Business Days'
prior written notice to Administrative Agent (which notice
Administrative Agent shall promptly transmit to each of the Lenders), to
prepay all Loans, together with accrued and unpaid interest, fees and
other amounts owing to such Lender (including the U.S. Affiliate of such
Lender, if any) in accordance with subsection 13.6B so long as and
subject to subsection 2.4A(vii) (1) all Commitments of such Lender
(including the U.S. Affiliate of such Lender, if any) are terminated
concurrently with such prepayment pursuant to subsection 2.4A(vi) (at
which time Schedule 2.1 shall be deemed modified to reflect the changed
Commitments), and (2) the consents required by subsection 13.6B in
connection with the prepayment pursuant to this subsection 2.4A(v) shall
have been obtained, and at such time, such Lender (including the U.S.
Affiliate of such Lender, if any) shall no longer constitute a "Lender"
for purposes of this Agreement, except with respect to indemnifications
under this Agreement (including, without limitation, subsections 2.6D,
3.5A, 13.2 and 13.3), which shall survive as to such Lender (including
the U.S. Affiliate of such Lender, if any).
(vi) Reductions of Commitments to Remove a Lender. In the event
Company is entitled to replace a non-consenting Lender pursuant to
subsection 13.6B, each Borrower shall have the right, upon five Business
Days' prior written notice to Administrative Agent (which notice
Administrative Agent shall promptly transmit to each of the Lenders), to
terminate the entire Commitment of such Lender (including the U.S.
Affiliate of such Lender, if any), so long as (1) all Loans, together
with accrued and unpaid interest, fees and other amounts owing to such
Lender (including the U.S. Affiliate of such Lender, if any) are repaid,
including without limitation amounts owing to such Lender (including the
U.S. Affiliate of such Lender, if any) pursuant to subsection 2.6D,
pursuant to subsection 2.4A(v) concurrently with the effectiveness of
such termination (at which time Schedule 2.1 shall be deemed modified to
reflect the changed Commitments) and (2) the consents required by
subsection 13.6B in connection with the prepayment pursuant to
subsection 2.4A(v) shall have been obtained, and at such time, such
Lender (including the U.S. Affiliate
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of such Lender, if any) shall no longer constitute a "Lender" for
purposes of this Agreement, except with respect to indemnifications
under this Agreement (including, without limitation, subsections 2.6D,
3.5A, 13.2 and 13.3), which shall survive as to such Lender (including
the U.S. Affiliate of such Lender, if any).
(vii) Replacement of Outstanding Letters of Credit and
Prepayment of Acceptances. If the Lender being replaced or terminated as
contemplated by subsection 2.4A(v) or 2.4A(vi) (1) is an Issuing Lender
which has agreed to issue any Letter of Credit (but has not yet issued
such Letter of Credit), such agreement shall be automatically terminated
without any further act of the parties hereto, (2) is a Lender which has
agreed to create any Acceptances (but such Acceptances are not yet
outstanding), such agreement shall be automatically terminated without
any further act of the parties and (3) is an Issuing Lender that has
issued any Letter of Credit and such Letter of Credit is still
outstanding or any amounts drawn under such Letter of Credit have not
been reimbursed by Company pursuant to subsection 3.3B, or such Lender
has created any Acceptances which are outstanding, then the replacement
or termination of such Lender shall not take effect until (y) in the
case of an Issuing Lender, any Letters of Credit issued by such Lender
shall have been returned to such Issuing Lender and such Issuing Lender
shall have been reimbursed in full for all amounts drawn under such
Letters of Credit pursuant to subsection 3.3B and (z) in the case of a
Lender which has created any Acceptances, such Lender shall have been
paid in full for all sums due or to become due pursuant to such
Acceptances.
B. GENERAL PROVISIONS REGARDING PAYMENTS.
(i) Manner and Time of Payment. All payments by Company of
principal, interest, fees and other Obligations hereunder and under the
Notes issued by Company shall be made in Dollars in same day funds,
without defense, setoff or counterclaim, free of any restriction or
condition, and delivered to Administrative Agent not later than 12:00
noon (New York time) on the due date at the Domestic Funding and Payment
Office. All payments by Canada Safeway shall be in Dollars except for
payments in respect of the principal amount of, and interest accrued in
respect of, Loans denominated in Canadian Dollars or Acceptances, which
principal and interest shall be payable in Canadian Dollars, and, in any
event, shall be payable in same day funds, without defense, setoff or
counterclaim, free of any restriction or condition, and delivered to
Administrative Agent not later than 12:00 noon (New York time) on the
due date at the Canadian Funding and Payment Office. Funds received by
Administrative Agent after that time on such due date shall be deemed to
have been paid by the applicable Borrower on the next succeeding
Business Day. Each Borrower hereby authorizes Administrative Agent to
charge its accounts with Administrative Agent in order to cause timely
payment to be made to Administrative Agent of all principal, interest,
fees and expenses due hereunder (subject to sufficient funds being
available in its accounts for that purpose). Administrative Agent shall
give the applicable Borrower notice of any such charge as soon as
practicable, whether before or after making such charge.
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(ii) Application of Payments to Principal and Interest. All
payments in respect of the principal amount of any Loan shall include
payment of accrued interest on the principal amount being repaid or
prepaid, and all such payments shall be applied to the payment of
interest before application to principal.
(iii) Apportionment of Payments. Aggregate principal and
interest payments shall be apportioned among all outstanding Loans or
Acceptances to which such payments relate, in each case proportionately
to Lenders' respective Tranche A Domestic Pro Rata Shares, Tranche A
Canadian Pro Rata Shares, Tranche B Domestic Pro Rata Shares or Tranche
B Canadian Pro Rata Shares, as applicable, of such Loans or Acceptances.
Administrative Agent shall promptly distribute to each Domestic Lender,
at its primary address set forth below its name on the appropriate
signature page hereof or at such other address as such Lender may
request, its Tranche A Domestic Pro Rata Share of all payments received
by Administrative Agent in respect of Tranche A Domestic Loans (other
than Swing Line Loans and Negotiated Rate Loans). Administrative Agent
shall promptly distribute to each Canadian Lender (or in the case of
payments relating to Canadian/U.S. Loans, any U.S. Affiliate of such
Canadian Lender, if any) at its primary address set forth below its name
on the appropriate signature page hereof or at such other address as
such Lender may request, its Tranche A Canadian Pro Rata Share of all
payments received by Administrative Agent in respect of Tranche A
Canadian Loans (other than Swing Line Loans) and Tranche A Acceptances.
Administrative Agent shall promptly distribute to each Domestic Lender,
at its primary address set forth below its name on the appropriate
signature page hereof or at such other address as such Lender may
request, its Tranche B Domestic Pro Rata Share of all payments received
by Administrative Agent in respect of Tranche B Domestic Loans.
Administrative Agent shall promptly distribute to each Canadian Lender
(or in the case of payments relating to Canadian/U.S. Loans, any U.S.
Affiliate of such Canadian Lender, if any) at its primary address set
forth below its name on the appropriate signature page hereof or at such
other address as such Lender may request, its Tranche B Canadian Pro
Rata Share of all payments received by Administrative Agent in respect
of Tranche B Canadian Loans and Tranche B Acceptances. Administrative
Agent shall promptly distribute to each Swing Line Lender in respect of
Tranche A Domestic Swing Line Loans, at its primary address set forth
below its name on the appropriate signature page hereof or at such other
address as such Lender may request, its Tranche A Domestic Swing Line
Pro Rata Share of all payments received by Administrative Agent in
respect of Tranche A Domestic Swing Line Loans. Additionally,
Administrative Agent shall distribute to each Lender, at its primary
address set forth below its name on the appropriate signature page
hereof or at such other address as such Lender may request, its
Aggregate Pro Rata Share of the facility fees when received by
Administrative Agent pursuant to subsection 2.3.
Notwithstanding the foregoing provisions of this
subsection 2.4C(iii), if, pursuant to the provisions of subsection 2.6C,
any Notice of Conversion/Continuation is withdrawn as to any Affected
Lender or if any Affected Lender makes Floating Rate Loans in lieu of
its Pro Rata Share of any Fixed Rate
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Loans, Administrative Agent shall give effect thereto in apportioning
payments received thereafter.
(iv) Payments on Business Days. Whenever any payment to be made
hereunder shall be stated to be due on a day that is not 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 the payment of
interest hereunder or of the facility fees hereunder, as the case may
be.
(v) Notation of Payment. Each Lender agrees that before
disposing of any Note held by it, or any part thereof (other than by
granting participations therein), that Lender will make a notation
thereon of all Loans evidenced by that Note and all principal payments
previously made thereon and of the date to which interest thereon has
been paid; provided that the failure to make (or any error in the making
of) a notation of any Loan made under such Note shall not limit or
otherwise affect the obligations of any Borrower hereunder or under such
Note with respect to any Loan or any payments of principal or interest
on such Note.
2.5 USE OF PROCEEDS.
A. LOANS. Proceeds of the Tranche A Domestic Loans, the Tranche A
Canadian Loans, Tranche B Domestic Loans and Tranche B Canadian Loans advanced
on the Closing Date shall be applied, together with other available funds of
Borrowers, by the applicable Borrowers (i) to repay all amounts of principal and
accrued interest owing by Company, Canada Safeway and The Vons Companies, Inc.
under the Existing Credit Agreement; and (ii) for the payment of fees and
expenses due and payable on the Closing Date associated with the negotiation,
preparation, execution and syndication of this Agreement. Any excess or other
proceeds of the Tranche A Domestic Loans, the Tranche A Canadian Loans, Tranche
B Domestic Loans and Tranche B Canadian Loans shall be applied by the applicable
Borrower for general corporate purposes.
B. MARGIN REGULATIONS. No portion of the proceeds of any borrowing under
this Agreement shall be used by Company or any of its Subsidiaries in any manner
that might cause the borrowing or the application of such proceeds to violate
Regulation U, Regulation T or Regulation X of the Board of Governors of the
Federal Reserve System or any other regulation of such Board or to violate the
Exchange Act, in each case as in effect on the date or dates of such borrowing
and such use of proceeds.
2.6 SPECIAL PROVISIONS GOVERNING FIXED RATE LOANS.
Notwithstanding any other provision of this Agreement to the
contrary, the following provisions shall govern with respect to Fixed Rate Loans
as to the matters covered:
A. DETERMINATION OF APPLICABLE INTEREST RATE. As soon as practicable
after 10:00 A.M. (New York time) on each Interest Rate Determination Date,
Administrative Agent shall determine (which determination shall, absent manifest
or demonstrable error, be final, conclusive and binding upon all parties) the
interest rate that shall apply to the Fixed
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Rate Loans for which an interest rate is then being determined for the
applicable Interest Period and shall promptly give notice thereof (in writing or
by telephone confirmed in writing) to the Borrower requesting such Fixed Rate
Loans and the Lenders having commitments hereunder to fund such Fixed Rate
Loans.
B. INABILITY TO DETERMINE APPLICABLE INTEREST RATE. In the event that
Administrative Agent shall have determined (which determination shall be final
and conclusive and binding upon all parties hereto), on any Interest Rate
Determination Date with respect to any Fixed Rate Loans, that by reason of
circumstances affecting the interbank Eurodollar market adequate and fair means
do not exist for ascertaining the interest rate applicable to such Loans on the
basis provided for in the definition of Adjusted Eurodollar Rate or Canadian
Eurodollar Rate, as applicable, Administrative Agent shall on such date give
notice (by telecopy or by telephone confirmed in writing) to Borrowers and each
Lender of such determination, whereupon (i) no Loans may be made as, or
converted to, Tranche A Domestic Eurodollar Rate Loans, Tranche A Canadian
Eurodollar Rate Loans, Tranche B Domestic Eurodollar Rate Loans or Tranche B
Canadian Eurodollar Rate Loans, as the case may be, until such time as
Administrative Agent notifies Borrowers and Lenders that the circumstances
giving rise to such notice no longer exist and (ii) any Notice of Borrowing or
Notice of Conversion/Continuation given by any Borrower with respect to the
Loans in respect of which such determination was made shall be deemed to be
rescinded by the applicable Borrower.
C. ILLEGALITY OR IMPRACTICABILITY OF FIXED RATE LOANS. In the event that
on any date any Lender shall have determined (which determination shall be final
and conclusive and binding upon all parties hereto but shall be made only after
consultation with Company and Administrative Agent) that the making, maintaining
or continuation of its Tranche A Domestic Eurodollar Rate Loans, Tranche A
Canadian Eurodollar Rate Loans, Tranche B Domestic Eurodollar Rate Loans or
Tranche B Canadian Eurodollar Rate Loans, as the case may be, (i) has become
unlawful as a result of compliance by such Lender in good faith with any law,
treaty, governmental rule, regulation, guideline or order (or would conflict
with any such treaty, governmental rule, regulation, guideline or order not
having the force of law even though the failure to comply therewith would not be
unlawful) or (ii) has become impracticable, or would cause such Lender material
hardship, as a result of contingencies occurring after the date of this
Agreement which materially and adversely affect the interbank Eurodollar market
or the position of such Lender in that market, then, and in any such event, such
Lender shall be an "AFFECTED LENDER" and it shall on that day give notice (by
telecopy or by telephone confirmed in writing) to Borrowers and Administrative
Agent of such determination (which notice Administrative Agent shall promptly
transmit to each other Lender). Thereafter (a) the obligation of the Affected
Lender to make Loans as, or to convert Loans to, Tranche A Domestic Eurodollar
Rate Loans, Tranche A Canadian Eurodollar Rate Loans, Tranche B Domestic
Eurodollar Rate Loans or Tranche B Canadian Eurodollar Rate Loans, as the case
may be, shall be suspended until such notice shall be withdrawn by the Affected
Lender, (b) to the extent such determination by the Affected Lender relates to a
Fixed Rate Loan then being requested by a Borrower pursuant to a Notice of
Borrowing or a Notice of Conversion/Continuation, the Affected Lender shall make
such Loan as (or convert such Loan to, as the case may be) a Floating Rate Loan
bearing interest at the applicable
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Deemed Floating Rate, (c) the Affected Lender's obligation to maintain its
outstanding Tranche A Domestic Eurodollar Rate Loans, Tranche A Canadian
Eurodollar Rate Loans, Tranche B Domestic Eurodollar Rate Loans or Tranche B
Canadian Eurodollar Rate Loans, as the case may be (the "AFFECTED LOANS"), shall
be terminated at the earlier to occur of the expiration of the Interest Period
then in effect with respect to the Affected Loans or when required by law, and
(d) the Affected Loans shall automatically convert into Floating Rate Loans
bearing interest at the applicable Deemed Floating Rate on the date of such
termination. Notwithstanding the foregoing, to the extent a determination by an
Affected Lender as described above relates to a Fixed Rate Loan then being
requested by a Borrower pursuant to a Notice of Borrowing or a Notice of
Conversion/Continuation, such Borrower shall have the option, subject to the
provisions of subsection 2.6D, to rescind such Notice of Borrowing or Notice of
Conversion/Continuation as to all Lenders by giving notice (by telecopy or by
telephone confirmed in writing) to Administrative Agent of such rescission on
the date on which the Affected Lender gives notice of its determination as
described above (which notice of rescission Administrative Agent shall promptly
transmit to each other Lender). Except as provided in the immediately preceding
sentence, nothing in this subsection 2.6C shall affect the obligation of any
Lender other than an Affected Lender to make or maintain Loans as, or to convert
Loans to, Fixed Rate Loans in accordance with the terms of this Agreement.
D. COMPENSATION FOR BREAKAGE OR NON-COMMENCEMENT OF INTEREST PERIODS.
Company shall compensate each Lender, upon written request by that Lender (which
request shall set forth the basis for requesting such amounts), for all
reasonable losses, expenses and liabilities (including, without limitation, any
interest paid by that Lender to lenders of funds borrowed by it to make or carry
its Fixed Rate Loans and any loss, expense or liability sustained by that Lender
in connection with the liquidation or re-employment of such funds) which that
Lender may sustain: (i) if for any reason (other than a default by that Lender)
a borrowing of any Fixed Rate Loan does not occur on a date specified therefor
in a Notice of Borrowing or a telephonic request for borrowing, or a conversion
to or continuation of any Fixed Rate Loan does not occur on a date specified
therefor in a Notice of Conversion/Continuation or a telephonic request for
conversion or continuation, (ii) if any prepayment or other principal payment or
any conversion of any of its Fixed Rate Loans occurs on a date prior to the last
day of an Interest Period applicable to that Loan, (iii) if any prepayment of
any of its Fixed Rate Loans is not made on any date specified in a notice of
prepayment given by a Borrower, or (iv) as a consequence of any other default by
a Borrower in the repayment of its Fixed Rate Loans when required by the terms
of this Agreement.
E. BOOKING OF FIXED RATE LOANS. Any Lender may make, carry or transfer
Fixed Rate Loans at, to, or for the account of any of its branch offices or the
office of an Affiliate of that Lender.
F. ASSUMPTIONS CONCERNING FUNDING OF FIXED RATE LOANS. Calculation of
all amounts payable to a Lender under this subsection 2.6 and under subsection
5.1A shall be made as though that Lender had actually funded each of its
relevant Fixed Rate Loans through the purchase of a Eurodollar deposit bearing
interest at the rate obtained pursuant to clause (i) of the definition of
Adjusted Eurodollar Rate or pursuant to the definition of
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Canadian Eurodollar Rate, as applicable, in an amount equal to the amount of
such Fixed Rate Loan and having a maturity comparable to the relevant Interest
Period and through the transfer of such Eurodollar deposit from an offshore
office of that Lender to an office of that Lender in the United States of
America or Canada, as applicable; provided, however, that each Lender may fund
each of its Fixed Rate Loans in any manner it sees fit and the foregoing
assumptions shall be utilized only for the purposes of calculating amounts
payable under this subsection 2.6 and under subsection 5.1A.
G. FIXED RATE LOANS AFTER DEFAULT. After the occurrence of and during
the continuation of an Event of Default, (i) Borrowers may not elect to have a
Loan be made or maintained as, or converted to, a Fixed Rate Loan after the
expiration of any Interest Period then in effect for that Loan and (ii) subject
to the provisions of subsection 2.6D, any Notice of Borrowing or Notice of
Conversion/Continuation given by any Borrower with respect to a requested
borrowing or conversion/continuation that has not yet occurred shall be deemed
to be rescinded by such Borrower.
2.7 EXTENSION OF TRANCHE A TERMINATION DATE.
Subject to the provisions of the following paragraph of this
subsection 2.7, at any time not more than two years nor less than 90 days prior
to the Tranche A Termination Date then in effect, Company may, at its option,
deliver to Co-Arrangers, for distribution to each Lender within five Business
Days of Co-Arrangers' receipt thereof, a Tranche A Extension Request signed by
each Borrower requesting an extension of the Tranche A Termination Date to a
date one year after the Tranche A Termination Date which is then in effect. Each
Lender may, in its sole discretion, consent or not consent to any such Tranche A
Extension Request and, if such Lender so consents, such Lender shall deliver its
consent to such Tranche A Extension Request to Co-Arrangers (which shall
promptly notify Company of such consent) within 25 Business Days of the date of
the Tranche A Extension Request. Any Lender that fails to consent to any Tranche
A Extension Request within such 25 Business Day period shall be deemed to have
rejected such Tranche A Extension Request. If any Lender rejects any Tranche A
Extension Request, Company may, at its option, withdraw such Tranche A Extension
Request. If Co-Arrangers shall have received, within such 25 Business Day
period, consents to such Tranche A Extension Request from Lenders having 50% or
more of the aggregate Tranche A Domestic Loan Exposure and Tranche A Canadian
Loan Exposure of all Lenders, and Company has not withdrawn such Tranche A
Extension Request, the Tranche A Termination Date to be extended pursuant to
such request shall, with respect to those Lenders consenting to such request, be
extended for one year from the then current Tranche A Termination Date. If any
Lender rejects a Tranche A Extension Request but Lenders having 50% or more of
the aggregate Tranche A Domestic Loan Exposure and Tranche A Canadian Loan
Exposure of all Lenders consent thereto, Company may, at its option, at any time
prior to the Tranche A Termination Date (as in effect prior to giving effect to
such Tranche A Extension Request), replace such rejecting Lender by causing such
Lender to assign, and each Lender agrees that, following its rejection of any
Tranche A Extension Request and upon the written request of Company, it shall
assign, its Tranche A Domestic Loans, Tranche A Canadian Loans, Tranche A
Domestic Commitment, Tranche A Canadian Commitment, Tranche A Acceptances, and
participations in Letters of Credit, as the case may
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be, to another Lender or an Eligible Assignee identified by Company (that, in
either case, has agreed to the Tranche A Extension Request) in accordance with
the provisions of subsection 13.1; provided that no assignment fee shall be
payable to Administrative Agent in connection with such assignment. If
Co-Arrangers shall not have received, within such 25 Business Day period,
consents to such Tranche A Extension Request from Lenders having 50% of the
aggregate Tranche A Domestic Loan Exposure and Tranche A Canadian Loan Exposure
of all Lenders, the Tranche A Termination Date requested to be extended by
Borrowers shall not be extended for any Lender (including, without limitation,
any such consenting Lenders). Co-Arrangers shall give Company and each Lender
prompt notice of any extension of the Tranche A Termination Date.
Company may only request two annual extensions of the Tranche A
Termination Date pursuant to this subsection 2.7, and the Tranche A Termination
Date shall in no event be extended beyond May 24, 2008.
2.8 EXTENSION OF TRANCHE B REVOLVING TERMINATION DATE.
At any time not more than 60 days nor less than 30 days prior to
the Tranche B Revolving Termination Date then in effect, Company may, at its
option, deliver to Co-Arrangers, for distribution to each Lender within five
Business Days of Co-Arrangers' receipt thereof, a Tranche B Extension Request
signed by Company requesting an extension of the Tranche B Revolving Termination
Date to a date 364 days after the Tranche B Revolving Termination Date which is
then in effect. Each Lender may, in its sole discretion, consent or not consent
to any such Tranche B Extension Request and, if such Lender so consents, such
Lender shall deliver its consent to such Tranche B Extension Request to
Co-Arrangers (which shall promptly notify Company of such consent) within 10
Business Days of receipt of such Tranche B Extension Request. Any Lender that
fails to consent to any Tranche B Extension Request within such 10 Business Day
period shall be deemed to have rejected such Tranche B Extension Request. If any
Lender rejects any Tranche B Extension Request, Company may, at its option,
withdraw such Tranche B Extension Request. If Co-Arrangers shall have received,
within such 10 Business Day period, consents to such Tranche B Extension Request
from Lenders having 50% or more of the aggregate Tranche B Domestic Loan
Exposure and 50% or more of the aggregate Tranche B Canadian Loan Exposure of
all Lenders, and Company has not withdrawn such Tranche B Extension Request, the
Tranche B Revolving Termination Date to be extended pursuant to such request
shall, with respect to those Lenders consenting to such request, be extended for
364 days from the then current Tranche B Revolving Termination Date. If any
Lender rejects a Tranche B Extension Request but Lenders having 50% or more of
the aggregate Tranche B Domestic Loan Exposure and 50% or more of the aggregate
Tranche B Canadian Loan Exposure of all Lenders consent thereto, Company may, at
its option, at any time prior to the Tranche B Revolving Termination Date (as in
effect prior to giving effect to such Tranche B Extension Request), replace such
rejecting Lender by causing such Lender to assign, and each Lender agrees that,
following its rejection of any Tranche B Extension Request and upon the written
request of Company, it shall assign, its Tranche B Domestic Loans and Tranche B
Domestic Commitment or Tranche B Canadian Loans and Tranche B Canadian
Commitments, as the case may be, to another Lender or an Eligible Assignee
identified by Company (that, in either case, has agreed to the
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Tranche B Extension Request) in accordance with the provisions of subsection
13.1; provided that no assignment fee shall be payable to Administrative Agent
in connection with such assignment. If Co-Arrangers shall not have received,
within such 10 Business Day period, consents to such Tranche B Extension Request
from Lenders having 50% of the aggregate Tranche B Domestic Loan Exposure and
50% of the aggregate Tranche B Canadian Loan Exposure of all Lenders, the
Tranche B Revolving Termination Date requested to be extended by Borrowers shall
not be extended for any Lender (including, without limitation, any such
consenting Lenders). Co-Arrangers shall give Company and each Lender prompt
notice of any extension of the Tranche B Revolving Termination Date. Company may
request one or more 364-day extensions of the Tranche B Revolving Termination
Date, provided that in no event shall the Tranche B Revolving Termination Date
be extended beyond the Tranche A Termination Date.
2.9 CONVERSION OF TRANCHE B DOMESTIC LOANS AND TRANCHE B CANADIAN LOANS INTO
TERM LOANS.
At each Borrower's option, the unused portion of each Domestic
Lender's Tranche B Domestic Commitment or each Canadian Lender's Tranche B
Canadian Commitment may expire on such Domestic Lender's Tranche B Revolving
Termination Date as set forth in subsection 2.1A(iii) or Canadian Lender's
Tranche B Revolving Termination Date as set forth in subsection 2.1A(iv), as the
case may be. All Tranche B Domestic Loans outstanding on such Domestic Lender's
Tranche B Revolving Termination Date or Tranche B Canadian Loans outstanding on
such Canadian Lender's Tranche B Revolving Termination Date, at such Borrower's
option, may be converted into term loans and, to the extent so converted, shall
be paid in full no later than the first anniversary of such Domestic Lender's or
Canadian Lender's Tranche B Revolving Termination Date, as the case may be,
(such subsequent date being such Domestic Lender's or Canadian Lender's "TRANCHE
B TERM TERMINATION DATE"). If a Borrower elects to convert the Tranche B
Domestic Loans or the Tranche B Canadian Loans into term loans pursuant to this
subsection 2.9, such Borrower shall deliver a notice of such election to the
Co-Arrangers for distribution to the Lenders no later than 12:00 noon (New York
time) at least five Business Days before the Tranche B Revolving Termination
Date.
SECTION 3. LETTERS OF CREDIT
3.1 ISSUANCE OF LETTERS OF CREDIT AND LENDERS' PURCHASE OF PARTICIPATIONS
THEREIN.
A. LETTERS OF CREDIT. In addition to Company requesting that Domestic
Lenders make Tranche A Domestic Loans pursuant to subsection 2.1A(i), Company
may request, in accordance with the provisions of this subsection 3.1, from time
to time during the period from the Closing Date to but excluding the tenth
Business Day prior to the Tranche A Termination Date, that one or more Domestic
Lenders issue Letters of Credit for the account of Company for the purposes
specified in the definitions of Commercial Letters of Credit and Standby Letters
of Credit. Subject to the terms and conditions of this Agreement and in reliance
upon the representations and warranties of Borrowers herein set forth, any one
or more Domestic Lenders may, but (except as provided in subsection 3.1B(ii))
shall not be obligated to, issue such Letters of Credit in accordance with the
provisions of this subsection
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3.1; provided that Company shall not request that any Domestic Lender issue (and
no Domestic Lender shall issue):
(i) any Letter of Credit if, after giving effect to such
issuance, the Total Utilization of Tranche A Domestic Commitments would
exceed the Tranche A Domestic Commitments then in effect;
(ii) any Letter of Credit if, after giving effect to such
issuance, the Letter of Credit Usage would exceed $500,000,000;
(iii) any Standby Letter of Credit having an expiration date
later than the earlier of (a) the fifth Business Day prior to the
Tranche A Termination Date and (b) the date which is one year from the
date of issuance of such Standby Letter of Credit; provided that the
immediately preceding clause (b) shall not prevent any Issuing Lender
from agreeing that a Standby Letter of Credit will automatically be
extended for one or more successive periods not to exceed one year each
unless such Issuing Lender elects not to extend for any such additional
period; provided, further that, unless Requisite Lenders otherwise
consent, such Issuing Lender shall give notice that it will not extend
such Standby Letter of Credit if it has knowledge that an Event of
Default has occurred and is continuing on the last day on which such
Issuing Lender may give notice that it will not extend such Standby
Letter of Credit;
(iv) any Commercial Letter of Credit having an expiration date
(a) later than the earlier of (X) the date which is 30 days prior to the
Tranche A Termination Date and (Y) the date which is 180 days from the
date of issuance of such Commercial Letter of Credit or (b) that is
otherwise unacceptable to the applicable Issuing Lender in its
reasonable discretion;
(v) any Commercial Letter of Credit if, after giving effect to
such issuance, the Letter of Credit Usage in respect of Commercial
Letters of Credit would exceed $100,000,000; or
(vi) any Letter of Credit denominated in a currency other than
Dollars or Canadian Dollars.
Company and Lenders agree that, on and after the Closing Date,
the Existing Company Letters of Credit shall for all purposes hereof be deemed
to be Letters of Credit issued pursuant to and governed in all respects by the
terms of this Agreement.
B. MECHANICS OF ISSUANCE.
(i) Notice of Issuance. Whenever Company desires the issuance of
a Letter of Credit, it shall deliver to the proposed Issuing Lender
(with a copy to Administrative Agent if Administrative Agent is not the
proposed Issuing Lender) a Notice of Issuance of Letter of Credit
substantially in the form of Exhibit III annexed hereto no later than
12:00 noon (New York time) at least five Business Days, or such shorter
period as may be agreed to by any Issuing Lender in any particular
instance, in
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advance of the proposed date of issuance. The Notice of Issuance of
Letter of Credit shall specify (a) the Domestic Lender requested to
issue the Letter of Credit, (b) whether such Letter of Credit is to be a
Commercial Letter of Credit or a Standby Letter of Credit, (c) the
proposed date of issuance (which shall be a Business Day), (d) the face
amount of the Letter of Credit, (e) whether such Letter of Credit is to
be denominated in Dollars or Canadian Dollars, (f) the expiration date
of the Letter of Credit, (g) the name and address of the beneficiary,
and (h) a summary of the purpose of such Letter of Credit. At least two
Business Days prior to the proposed date of issuance, Company shall
specify to the Issuing Lender the proposed text of the proposed Letter
of Credit or the proposed terms and conditions thereof, including a
precise description of any documents and the verbatim text of any
certificates to be presented by the beneficiary which, if presented by
the beneficiary in substantial compliance with such terms and conditions
and on or before the expiration date of the Letter of Credit, would
require the Issuing Lender to make payment under the Letter of Credit;
provided that the Issuing Lender, in its reasonable judgment, may
require changes in the text of the proposed Letter of Credit or any such
documents or certificates; and provided, further that no Letter of
Credit shall require payment against a conforming draft to be made
thereunder on the same business day (under the laws of the jurisdiction
in which the office of the Issuing Lender to which such draft is
required to be presented is located) that such draft is presented if
such presentation is made after 11:00 A.M. (in the time zone of such
office of the Issuing Lender) on such business day.
Company shall notify the applicable Issuing Lender (and
Administrative Agent, if Administrative Agent is not such
Issuing Lender) prior to the issuance of any Letter of Credit in
the event that any of the matters to which Company is required
to certify in the applicable Notice of Issuance of Letter of
Credit is no longer true and correct as of the proposed date of
issuance of such Letter of Credit, and upon the issuance of any
Letter of Credit, Company shall be deemed to have re-certified,
as of the date of such issuance, as to the matters to which
Company is required to certify in the applicable Notice of
Issuance of Letter of Credit.
(ii) Determination of Issuing Lender. Upon receipt by a proposed
Issuing Lender of a Notice of Issuance of Letter of Credit from Company
pursuant to subsection 3.1B(i) requesting the issuance of a Letter of
Credit, (a) in the event Deutsche Bank is the proposed Issuing Lender,
Deutsche Bank shall be the Issuing Lender with respect to such Letter of
Credit, notwithstanding the fact that the Letter of Credit Usage with
respect to such Letter of Credit and with respect to all other Letters
of Credit issued by Deutsche Bank, when aggregated with Deutsche Bank's
outstanding Loans, may exceed Deutsche Bank's Tranche A Domestic
Commitment then in effect; and (b) in the event any other Domestic
Lender is the proposed Issuing Lender, such Domestic Lender shall
promptly notify Company and Administrative Agent whether or not, in its
sole discretion, it has elected to issue such Letter of Credit, and (1)
if such Domestic Lender so elects to issue such Letter of Credit it
shall be the Issuing Lender with respect thereto, notwithstanding the
fact that the Letter of
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Credit Usage with respect to such Letter of Credit and with respect to
all other Letters of Credit issued by such Domestic Lender, when
aggregated with such Domestic Lender's outstanding Loans, may exceed
such Domestic Lender's Tranche A Domestic Commitment then in effect and
(2) if such Domestic Lender fails to so promptly notify Company and
Administrative Agent or declines to issue such Letter of Credit, Company
may request another Domestic Lender to be the Issuing Lender with
respect to such Letter of Credit in accordance with the provisions of
this subsection 3.1B; provided, that in the event such other Domestic
Lender fails to promptly notify Company, Deutsche Bank and
Administrative Agent or declines to issue such Letter of Credit,
Deutsche Bank shall be the Issuing Lender.
(iii) Issuance of Letter of Credit. Upon satisfaction or waiver
(in accordance with subsection 13.6) of the conditions set forth in
subsection 6.3, the Issuing Lender shall issue the requested Letter of
Credit in accordance with the Issuing Lender's standard operating
procedures.
(iv) Notification to Domestic Lenders. Upon the issuance of any
Standby Letter of Credit the applicable Issuing Lender shall promptly
notify Administrative Agent of such issuance, which notice shall be
accompanied by a copy of such Standby Letter of Credit. Promptly after
receipt of such notice, Administrative Agent shall notify each Domestic
Lender of the amount of such Domestic Lender's respective participation
in such Standby Letter of Credit, determined in accordance with
subsection 3.1C.
(v) Reports to Domestic Lenders Regarding Standby Letters of
Credit. Within 15 days after the end of each calendar quarter ending
after the Closing Date, so long as any Standby Letter of Credit shall
have been outstanding during such calendar quarter, each Issuing Lender
shall deliver to Administrative Agent for distribution to each other
Domestic Lender a report setting forth for such calendar quarter the
daily maximum amount available to be drawn under the Letters of Credit
issued by such Issuing Lender that were outstanding during such calendar
quarter.
(vi) Reports to Domestic Lenders Regarding Commercial Letters of
Credit. In the event that the Issuing Lender of any Commercial Letter of
Credit is other than the Administrative Agent, such Issuing Lender shall
send by facsimile transmission to the Administrative Agent promptly on
the first Business Day of each week the daily maximum amount available
for drawing under such Commercial Letter of Credit for the previous
week. The Administrative Agent shall deliver to each Domestic Lender,
upon each calendar month end, a report setting forth for such period the
daily maximum amount available for drawing under all Commercial Letters
of Credit issued by any Issuing Lender for such period.
C. DOMESTIC LENDERS' PURCHASE OF PARTICIPATIONS IN LETTERS OF CREDIT.
Immediately upon the issuance of each Letter of Credit, each Domestic Lender
shall be deemed to, and hereby agrees to, have irrevocably purchased from the
Issuing Lender a participation in such Letter of Credit and drawings thereunder
in an amount equal to such
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Domestic Lender's Tranche A Domestic Pro Rata Share of the maximum amount which
is or at any time may become available to be drawn thereunder.
3.2 LETTER OF CREDIT FEES.
Company in requesting the issuance of a Letter of Credit
pursuant to subsection 3.1 agrees to pay the following amounts with respect to
Letters of Credit issued hereunder by any Issuing Lender (including, without
limitation, the Existing Company Letters of Credit):
(i) with respect to each Standby Letter of Credit, (a) a
fronting fee payable directly to such Issuing Lender for its own
account, equal to the greater of (X) $250 and (Y) 0.125% per annum of
the daily maximum amount available to be drawn under such Standby Letter
of Credit and (b) a letter of credit fee payable to Administrative Agent
for the account of Domestic Lenders, equal to the Tranche A Pricing
Margin, as in effect from time to time, per annum on the daily maximum
amount available to be drawn under such Standby Letter of Credit, in
each case payable in arrears on and to (but excluding) each Quarterly
Payment Date and computed on the basis of a 360-day year for the actual
number of days elapsed;
(ii) with respect to each Commercial Letter of Credit, such fees
and commissions as are mutually agreed to by the Issuing Lender issuing
such Commercial Letter of Credit and Company, payable directly to such
Issuing Lender for its own account and at the times and calculated in
the manner required by such Issuing Lender, which fees and commissions
shall be no less than the amount which such Issuing Lender requires for
the issuance of a Commercial Letter of Credit of similar tenor and
denomination for the account of an account party with a credit standing
similar to Company; and
(iii) with respect to the amendment or transfer of each Letter
of Credit and each payment of a drawing made thereunder (without
duplication of the fees payable under clauses (i) and (ii) above),
documentary and processing charges payable directly to such Issuing
Lender for its own account and in accordance with such Issuing Lender's
standard schedule for such charges in effect at the time of such
issuance, amendment, transfer or payment of drawing, as the case may be.
Promptly upon receipt by Administrative Agent of any amount described in clause
(i)(b) of this subsection 3.2, Administrative Agent shall distribute to each
other Domestic Lender its Tranche A Domestic Pro Rata Share of such amount.
3.3 DRAWINGS AND REIMBURSEMENT OF AMOUNTS DRAWN UNDER LETTERS OF CREDIT.
A. RESPONSIBILITY OF ISSUING LENDER WITH RESPECT TO DRAWINGS. In
determining whether to honor any drawing under any Letter of Credit by the
beneficiary thereof, the Issuing Lender shall be responsible only to use
reasonable care to determine that the documents and certificates required to be
delivered under such Letter of Credit have been
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delivered and that they substantially comply on their face with the requirements
of such Letter of Credit.
B. REIMBURSEMENT BY COMPANY OF AMOUNTS DRAWN UNDER LETTERS OF CREDIT. In
the event an Issuing Lender has determined to honor a drawing under a Letter of
Credit issued by it, such Issuing Lender shall immediately notify Company that
requested the issuance of such Letter of Credit and Administrative Agent, and
Company shall reimburse such Issuing Lender on or before the Business Day (the
"REIMBURSEMENT DATE") immediately following the date on which such drawing is
honored in an amount in Dollars (which amount, in the case of a drawing under a
Letter of Credit which is denominated in Canadian Dollars, shall be calculated
in Dollar Equivalents) and in same day funds equal to the amount of such
drawing; provided that, anything contained in this Agreement to the contrary
notwithstanding, (i) unless Company shall have notified Administrative Agent and
such Issuing Lender prior to 11:00 A.M. (New York time) on the date of such
drawing that Company intends to reimburse such Issuing Lender for the amount of
such drawing with funds other than the proceeds of Loans, Company shall be
deemed to have given a timely Notice of Borrowing to Administrative Agent
requesting Domestic Lenders to make Loans that are Tranche A Domestic Base Rate
Loans on the Reimbursement Date in an amount in Dollars (which amount, in the
case of a drawing under a Letter of Credit which is denominated in Canadian
Dollars, shall be the amount drawn in Canadian Dollars converted into Dollar
Equivalents) equal to the amount of such drawing and (ii) subject to
satisfaction or waiver of the conditions specified in subsection 6.2B, Domestic
Lenders shall, on the Reimbursement Date, make Tranche A Domestic Base Rate
Loans in the amount of such drawing, the proceeds of which shall be applied
directly by Administrative Agent to reimburse such Issuing Lender for the amount
of such drawing; and provided, further that if for any reason proceeds of Loans
are not received by such Issuing Lender on the Reimbursement Date in an amount
equal to the amount of such drawing, Company shall reimburse such Issuing
Lender, on demand, in an amount in same day funds equal to the excess of the
amount of such drawing over the aggregate amount of such Loans, if any, which
are so received. Nothing in this subsection 3.3B shall be deemed to relieve any
Domestic Lender from its obligation to make Loans on the terms and conditions
set forth in this Agreement, and Company shall retain any and all rights it may
have against any Domestic Lender resulting from the failure of such Domestic
Lender to make such Loans under this subsection 3.3B.
C. PAYMENT BY DOMESTIC LENDERS OF UNREIMBURSED DRAWINGS UNDER LETTERS OF
CREDIT.
(i) Payment by Domestic Lenders. In the event that Company shall
fail for any reason to reimburse any Issuing Lender as provided in
subsection 3.3B in an amount (calculated in Dollar Equivalents, in the
case of a drawing under a Letter of Credit denominated in Canadian
Dollars) equal to the amount of any drawing honored by such Issuing
Lender under a Letter of Credit issued by it, such Issuing Lender shall
promptly notify each other Domestic Lender of the unreimbursed amount of
such drawing and of such other Domestic Lender's respective
participation therein based on such Domestic Lender's Tranche A Domestic
Pro Rata Share. Each Domestic
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Lender shall make available to such Issuing Lender an amount equal to
its respective participation, in Dollars and in same day funds, at the
office of such Issuing Lender specified in such notice, not later than
1:00 P.M. (New York time) on the first business day (under the laws of
the jurisdiction in which such office of such Issuing Lender is located)
after the date notified by such Issuing Lender. In the event that any
Domestic Lender fails to make available to such Issuing Lender on such
business day the amount of such Domestic Lender's participation in such
Letter of Credit as provided in this subsection 3.3C, such Issuing
Lender shall be entitled to recover such amount on demand from such
Domestic Lender together with interest thereon at the rate customarily
used by such Issuing Lender for the correction of errors among banks for
three Business Days and thereafter at the Domestic Base Rate. Nothing in
this subsection 3.3C shall be deemed to prejudice the right of any
Domestic Lender to recover from any Issuing Lender any amounts made
available by such Domestic Lender to such Issuing Lender pursuant to
this subsection 3.3C in the event that it is determined by the final
judgment of a court of competent jurisdiction that the payment with
respect to a Letter of Credit by such Issuing Lender in respect of which
payment was made by such Domestic Lender constituted gross negligence or
willful misconduct on the part of such Issuing Lender.
(ii) Distribution to Domestic Lenders of Reimbursements Received
From Company. In the event any Issuing Lender shall have been reimbursed
by other Domestic Lenders pursuant to subsection 3.3C(i) for all or any
portion of any drawing honored by such Issuing Lender under a Letter of
Credit issued by it, such Issuing Lender shall distribute to each other
Domestic Lender which has paid all amounts payable by it under
subsection 3.3C(i) with respect to such drawing such other Domestic
Lender's Tranche A Domestic Pro Rata Share of all payments subsequently
received by such Issuing Lender from Company in reimbursement of such
drawing when such payments are received. Any such distribution shall be
made to a Domestic Lender at its primary address set forth below its
name on the appropriate signature page hereof or at such other address
as such Domestic Lender may request.
D. INTEREST ON AMOUNTS DRAWN UNDER LETTERS OF CREDIT.
(i) Payment of Interest by Company. Company agrees to pay to
each Issuing Lender, with respect to drawings made under any Letters of
Credit requested by Company and issued by such Issuing Lender, interest
on the amount paid by such Issuing Lender in respect of each such
drawing from the date of such drawing to but excluding the date such
amount is reimbursed by Company (including any such reimbursement out of
the proceeds of Loans pursuant to subsection 3.3B) at a rate equal to
(a) for the period from the date of such drawing to but excluding the
Reimbursement Date, the rate then in effect under this Agreement with
respect to Tranche A Domestic Base Rate Loans and (b) thereafter, a rate
which is 2% per annum in excess of the rate of interest otherwise
payable under this Agreement with respect to Tranche A Domestic Base
Rate Loans. Interest payable pursuant to this subsection 3.3D(i) shall
be computed on the basis of a 365-day or 366-day year, as the case may
be, for the actual number of days elapsed in the period during which it
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accrues and shall be payable on demand or, if no demand is made, on the
date on which the related drawing under a Letter of Credit is reimbursed
in full.
(ii) Distribution of Interest Payments by Issuing Lender.
Promptly upon receipt by any Issuing Lender of any payment of interest
pursuant to subsection 3.3D(i) with respect to a drawing under a Letter
of Credit issued by it, (a) such Issuing Lender shall distribute to each
other Domestic Lender, out of the interest received by such Issuing
Lender in respect of the period from the date of such drawing to but
excluding the date on which such Issuing Lender is reimbursed for the
amount of such drawing (including any such reimbursement out of the
proceeds of Loans pursuant to subsection 3.3B), the amount that such
other Domestic Lender would have been entitled to receive in respect of
the letter of credit fee that would have been payable in respect of such
Letter of Credit for such period pursuant to subsection 3.2 if no
drawing had been made under such Letter of Credit, and (b) in the event
such Issuing Lender shall have been reimbursed by other Domestic Lenders
pursuant to subsection 3.3C(i) for all or any portion of such drawing,
such Issuing Lender shall distribute to each other Domestic Lender which
has paid all amounts payable by it under subsection 3.3C(i) with respect
to such drawing such other Domestic Lender's Tranche A Domestic Pro Rata
Share of any interest received by such Issuing Lender in respect of that
portion of such drawing so reimbursed by other Domestic Lenders for the
period from the date on which such Issuing Lender was so reimbursed by
other Domestic Lenders to and including the date on which such portion
of such drawing is reimbursed by Company. Any such distribution shall be
made to a Domestic Lender at its primary address set forth below its
name on the appropriate signature page hereof or at such other address
as such Domestic Lender may request.
3.4 OBLIGATIONS ABSOLUTE.
The obligation of Company to reimburse each Issuing Lender for
drawings made under the Letters of Credit requested by Company and issued by
such Issuing Lender and to repay any Loans made by Domestic Lenders pursuant to
subsection 3.3B and the obligations of Domestic Lenders under subsection 3.3C(i)
shall be unconditional and irrevocable and shall be paid strictly in accordance
with the terms of this Agreement under all circumstances including, without
limitation, any of the following circumstances:
(i) any lack of validity or enforceability of any Letter of
Credit;
(ii) the existence of any claim, set-off, defense or other right
which Company or any Domestic Lender may have at any time against a
beneficiary or any transferee of any Letter of Credit (or any Persons
for whom any such transferee may be acting), any Issuing Lender or other
Domestic Lender or any other Person or, in the case of a Domestic
Lender, against Company, whether in connection with this Agreement, the
transactions contemplated herein or any unrelated transaction (including
any underlying transaction between Company or one of its Subsidiaries
and the beneficiary for which any Letter of Credit was procured);
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(iii) any draft, demand, certificate or other document presented
under any Letter of Credit proving to be forged, fraudulent, invalid or
insufficient in any respect or any statement therein being untrue or
inaccurate in any respect;
(iv) payment by the applicable Issuing Lender under any Letter
of Credit against presentation of a demand, draft or certificate or
other document which does not comply with the terms of such Letter of
Credit;
(v) any adverse change in the business, operations, properties,
assets, condition (financial or otherwise) of Company or any of its
Subsidiaries;
(vi) any breach of this Agreement or any other Loan Document by
any party thereto;
(vii) any other circumstance or happening whatsoever, whether or
not similar to any of the foregoing; or
(viii) the fact that an Event of Default or a Potential Event of
Default shall have occurred and be continuing;
provided, in each case, that payment by the applicable Issuing Lender under the
applicable Letter of Credit shall not have constituted gross negligence or
willful misconduct of such Issuing Lender under the circumstances in question
(as determined by a final judgment of a court of competent jurisdiction).
3.5 INDEMNIFICATION; NATURE OF ISSUING LENDERS' DUTIES.
A. INDEMNIFICATION. In addition to amounts payable as provided in
subsection 5.1, Company hereby agrees to protect, indemnify, pay and save
harmless each Issuing Lender from and against any and all claims, demands,
liabilities, damages, losses, costs, charges and expenses (including reasonable
fees, expenses and disbursements of counsel and reasonable allocated costs of
internal counsel) which such Issuing Lender may incur or be subject to as a
consequence, direct or indirect, of (i) the issuance of any Letter of Credit by
such Issuing Lender, other than as a result of (a) the gross negligence or
willful misconduct of such Issuing Lender as determined by a final judgment of a
court of competent jurisdiction or (b) subject to the following clause (ii), the
wrongful dishonor by such Issuing Lender of a proper demand for payment made
under any Letter of Credit issued by it or (ii) the failure of such Issuing
Lender to honor a drawing under any such Letter of Credit as a result of any act
or omission, whether rightful or wrongful, of any present or future de jure or
de facto government or governmental authority (all such acts or omissions herein
called "GOVERNMENTAL ACTS").
B. NATURE OF ISSUING LENDERS' DUTIES. As between Company and any Issuing
Lender, Company assumes all risks of the acts and omissions of, or misuse of the
Letters of Credit issued by such Issuing Lender by, the respective beneficiaries
of such Letters of Credit. In furtherance and not in limitation of the
foregoing, such Issuing Lender shall not be responsible for: (i) the form,
validity, sufficiency, accuracy, genuineness or legal effect of
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any document submitted by any party in connection with the application for and
issuance of any such Letter of Credit, even if it should in fact prove to be in
any or all respects invalid, insufficient, inaccurate, fraudulent or forged;
(ii) the validity or sufficiency of any instrument transferring or assigning or
purporting to transfer or assign any such Letter of Credit or the rights or
benefits thereunder or proceeds thereof, in whole or in part, which may prove to
be invalid or ineffective for any reason; (iii) failure of the beneficiary of
any such Letter of Credit to substantially comply with any conditions required
in order to draw upon such Letter of Credit; (iv) errors, omissions,
interruptions or delays in transmission or delivery of any messages, by mail,
cable, telegraph, telex or otherwise, whether or not they be in cipher; (v)
errors in interpretation of technical terms; (vi) any loss or delay in the
transmission or otherwise of any document required in order to make a drawing
under any such Letter of Credit or of the proceeds thereof; (vii) the
misapplication by the beneficiary of any such Letter of Credit of the proceeds
of any drawing under such Letter of Credit; or (viii) any consequences arising
from causes beyond the control of such Issuing Lender, including without
limitation any Governmental Acts, and none of the above shall affect or impair,
or prevent the vesting of, any of such Issuing Lender's rights or powers
hereunder.
In furtherance and extension and not in limitation of the
specific provisions set forth in the first paragraph of this subsection 3.5B,
any action taken or omitted by any Issuing Lender under or in connection with
the Letters of Credit issued by it or any documents and certificates delivered
thereunder, if taken or omitted in good faith and without gross negligence,
shall not put such Issuing Lender under any resulting liability to Company.
Notwithstanding anything to the contrary contained in this
subsection 3.5, Company shall retain any and all rights it may have against any
Issuing Lender for any liability arising solely out of (a) the gross negligence
or willful misconduct of such Issuing Lender, as determined by a final judgment
of a court of competent jurisdiction, or (b) the wrongful dishonor by such
Issuing Lender of a proper demand for payment made under any Letter of Credit
issued by it except where such dishonor results from Governmental Acts.
SECTION 4. ACCEPTANCES
4.1 ACCEPTANCE COMMITMENT.
In addition to requesting Tranche A Canadian Loans pursuant to
subsection 2.1A(ii) and Tranche B Canadian Loans pursuant to subsection
2.1A(iv), Canada Safeway may request pursuant to this Section 4, from time to
time during the period from the Closing Date to but excluding the Tranche A
Termination Date, that, (i) under the Tranche A Canadian Facility, Canadian
Lenders create bankers' acceptances (each, a "TRANCHE A ACCEPTANCE") by
accepting Drafts from Canada Safeway in an aggregate amount not exceeding each
such Canadian Lender's Tranche A Canadian Pro Rata Share of the aggregate amount
of the Tranche A Canadian Commitments or (ii) under the Tranche B Canadian
Facility, Canadian Lenders create bankers' acceptances (each, a "TRANCHE B
ACCEPTANCE" and together with the Tranche A Acceptances, the "ACCEPTANCES") by
accepting Drafts from Canada Safeway in an aggregate amount not exceeding each
such Canadian Lender's Tranche B Canadian Pro Rata Share of the aggregate amount
of the Tranche B Canadian Commitments, in each case, to be used for the purposes
identified in subsection 4.11;
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provided that Canada Safeway shall not request the creation and purchase of (x)
any Tranche A Acceptance if, after giving effect thereto, the Total Utilization
of Tranche A Canadian Commitments would exceed the Tranche A Canadian
Commitments then in effect, and no Canadian Lender shall have any obligation to
create and purchase any Tranche A Acceptance if, after giving effect thereto,
the Total Utilization of Tranche A Canadian Commitments of such Canadian Lender
would exceed its Tranche A Canadian Commitment or (y) any Tranche B Acceptance
if, after giving effect thereto, the Total Utilization of Tranche B Canadian
Commitments would exceed the Tranche B Canadian Commitments then in effect, and
no Canadian Lender shall have any obligation to create and purchase any Tranche
B Acceptance if, after giving effect thereto, the Total Utilization of Tranche B
Canadian Commitments of such Canadian Lender would exceed its Tranche B Canadian
Commitment.
Each Drawing shall be in an aggregate Face Amount of not less
than Cdn.$10,000,000 and in integral multiples of Cdn.$1,000 and shall consist
of the creation and purchase of Tranche A Acceptances or Tranche B Acceptances
by Canadian Lenders on the same day in accordance with subsection 4.4, ratably
in accordance with their respective Tranche A Canadian Pro Rata Shares or
Tranche B Canadian Pro Rata Shares, as the case may be; provided that if
apportionment of Tranche A Acceptances or Tranche B Acceptances among the
Canadian Lenders cannot be made on a pro rata basis in even multiples of
Cdn.$100,000, Administrative Agent shall round the allocations among Canadian
Lenders consistent with Administrative Agent's money market practices.
Notwithstanding anything herein to the contrary, the bankers'
acceptances (the "EXISTING ACCEPTANCES") described in Appendix A attached to the
Indemnity shall be deemed for all purposes hereunder to be either Tranche A
Acceptances or Tranche B Acceptances outstanding under this Agreement as further
described in Appendix A and all the terms and obligations set forth herein with
respect to Acceptances shall be applicable to the Existing Acceptances.
4.2 DRAWING NOTICE.
Each Drawing shall be made on two Business Days prior written
notice specified in relation to Acceptances, given not later than 12:00 noon
(Toronto time), by Canada Safeway to Administrative Agent, which shall give each
Canadian Lender prompt notice thereof and of such Canadian Lender's ratable
portion of aggregate Face Amount of the Drafts to be accepted under the Drawing.
Each such notice of a Drawing (a "DRAWING NOTICE") shall be given in
substantially the form of Exhibit XII annexed hereto or by telephone confirmed
promptly in writing, containing the same information as would be contained in a
Drawing Notice, and shall specify therein (i) the Drawing Date; (ii) the
aggregate Face Amount of Drafts to be accepted; (iii) the maturity date for such
Drafts (it being agreed and understood that Canada Safeway shall not request a
maturity date for Drafts which would be subsequent to the Tranche A Termination
Date or the Tranche B Revolving Termination Date, as the case may be); and (iv)
whether the Acceptances are to be delivered to or to the order of the applicable
Borrower or to be purchased by the Canadian Lenders.
Neither Administrative Agent nor any Canadian Lender shall incur
any liability to any Borrower in acting on the telephonic notice referred to
above which
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Administrative Agent or such Canadian Lender believes in good faith to have been
given by a duly authorized officer or other person authorized to borrow on
behalf of Canada Safeway or for otherwise acting in good faith under this
Section 4, and upon the creation and purchase or delivery of Acceptances
pursuant to any such telephonic notice, Canada Safeway shall be liable with
respect thereto as provided herein.
Each Drawing Notice shall be irrevocable and binding on Canada
Safeway. Canada Safeway shall indemnify each Canadian Lender against any loss or
expense incurred by such Canadian Lender as a result of any failure by Canada
Safeway to fulfill or honor before the date specified for any Drawing, the
applicable conditions set forth in this Section 4 or subsection 6.4, if the
Drawing, as a result of such failure, is not made on such date.
4.3 FORM OF ACCEPTANCES.
Each Draft presented by Canada Safeway shall (i) be in an
integral multiple of Cdn.$1,000; (ii) be dated the date of the Drawing; (iii)
mature and be payable by Canada Safeway (in common with all other Drafts
presented in connection with such Drawing) on a Business Day which occurs
approximately 30, 60, 90, 120 or 180 days after the date thereof or such shorter
period than 180 days as agreed by Canada Safeway and such Canadian Lender or
Administrative Agent; (iv) be substantially in the form of Exhibit XIV annexed
hereto or such other form as may be agreed by Canada Safeway and such Canadian
Lender or Administrative Agent; and (iv) be otherwise consistent with the
provisions of this Agreement relating to the amounts and maturity dates thereof.
The acceptance endorsed by a Canadian Lender on any Draft shall be substantially
in the form of Exhibit XIII annexed hereto or such other form as may be agreed
by Canada Safeway and such Canadian Lender or Administrative Agent.
Canada Safeway hereby renounces, and shall not claim, any days
of grace for the payment of any Acceptances.
4.4 ACCEPTANCE AND PURCHASE OR DELIVERY OF DRAFTS.
Not later than 11:00 A.M. (Toronto time) on an applicable
Drawing Date, each Canadian Lender shall complete one or more Drafts dated the
date of such Drawing, with the maturity date specified in the applicable Drawing
Notice, accept such Drafts, and following fulfillment of any applicable
conditions and as specified in the applicable Drawing Notice either (a) purchase
the Acceptances thereby created for the Drawing Purchase Price or (b) deliver
such Acceptances as provided below.
Canada Safeway shall, not later than 10:30 A.M. (Toronto time)
on the applicable Drawing Date, notify Administrative Agent of such Borrower's
delivery instructions for the Acceptances to be delivered to it in accordance
with the applicable Drawing Notice and pay to Administrative Agent, for
distribution to the Canadian Lenders in accordance with their Tranche A Canadian
Pro Rata Shares, the Drawing Fees relating thereto. The Canadian Lenders shall
promptly deliver such Acceptances in accordance with such instructions.
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Canada Safeway shall pay Drawing Fees in respect of Acceptances
by deposit of the required funds to Administrative Agent at its Canadian Funding
and Payment Office. On receipt of those payments, Administrative Agent will
promptly thereafter cause those Drawing Fees to be distributed in like funds to
the applicable Canadian Lender for its account.
The failure of any Canadian Lender to create and purchase or
deliver Acceptances as part of any Drawing shall not relieve such Canadian
Lender of its obligation, if any, to create and purchase or deliver Acceptances
hereunder, but a Canadian Lender shall not be responsible for the failure of any
other Canadian Lender to create and purchase or deliver Acceptances on the
Drawing Date for any Drawing.
4.5 PAYMENT OF THE DRAWING PURCHASE PRICE.
Subject to subsection 4.2 and satisfaction of the conditions set
forth in subsection 6.4, each Canadian Lender shall, before 12:00 noon (Toronto
time) on the applicable Drawing Date, pay or cause to be paid the Drawing
Purchase Price in respect of any Acceptances to be purchased by such Canadian
Lender by depositing or causing to be deposited such amount to such account
maintained by Administrative Agent at its Canadian Funding and Payment Office as
shall have been notified to such Canadian Lender by Administrative Agent, in
Canadian Dollars in same day funds. Promptly upon receipt of such funds,
Administrative Agent shall make such funds available to Canada Safeway by
debiting such account (or causing such account to be debited), and (a) by
crediting Canada Safeway's account, as specified by Canada Safeway in writing to
Administrative Agent prior thereto, maintained by Administrative Agent at its
Canadian Funding and Payment Office (or causing such account to be credited)
with like funds in the aggregate amount of such funds or (b) by wiring such
funds in such amount to the account of Canada Safeway with another financial
institution specified prior thereto by Canada Safeway in writing to
Administrative Agent.
Acceptances purchased by a Canadian Lender hereunder may be held
by it for its own account until maturity or sold by it at any time prior thereto
in any relevant market therefor in Canada, in such Canadian Lender's sole
discretion.
4.6 AVERAGE EFFECTIVE DISCOUNT RATE DETERMINATION.
Each Schedule I Reference Bank or Schedule II Reference Bank, as
the case may be, agrees to furnish to Administrative Agent timely information
for the purpose of determining each Average Effective Discount Rate. If any one
or more of the Schedule I Reference Banks or Schedule II Reference Banks shall
not furnish such information to Administrative Agent, Administrative Agent shall
determine such Average Effective Discount Rate on the basis of timely
information furnished by the remaining Schedule I Reference Bank(s) or Schedule
II Reference Bank(s), as applicable.
Administrative Agent shall give prompt notice to Borrowers and
Canadian Lenders of each Average Effective Discount Rate determined by
Administrative Agent for an applicable Drawing Date and the applicable discount
rates, if any, furnished by each Schedule I Reference Bank for determining any
applicable Average Effective Discount Rate.
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4.7 ACCEPTANCE PAYMENT OBLIGATIONS.
A. GENERAL OBLIGATION. Canada Safeway unconditionally hereby agrees to
pay to Administrative Agent for the account of each Canadian Lender, on the
maturity date for each Acceptance an amount in Canadian Dollars in same day
funds equal to the Face Amount of such then-maturing Acceptance.
B. PAYMENT AT MATURITY. The obligation of Canada Safeway set forth in
subsection 4.7A to pay to Administrative Agent the Face Amount of any
then-maturing Acceptance may be satisfied by paying to Administrative Agent at
or before 12:00 noon (Toronto time) on the maturity date for such Acceptance an
amount in Canadian Dollars in same day funds equal to the Face Amount of such
Acceptance; provided that Canada Safeway shall have given not less than one
Business Day's prior notice to Administrative Agent (which shall promptly notify
each Canadian Lender thereof) of its intent to pay Administrative Agent in the
manner contemplated by this sentence. Canada Safeway shall make each payment
hereunder in respect of Acceptances by deposit of the required funds to
Administrative Agent at the Canadian Funding and Payment Office. Upon receipt of
such payment, Administrative Agent will promptly thereafter cause such payment
to be distributed in like funds in payment of Acceptances ratably (based on the
proportion that the aggregate Face Amount of Acceptances accepted by any
Canadian Lender maturing on the relevant date bears to the aggregate Face Amount
of Acceptances accepted by all Canadian Lenders maturing on such date) to
Canadian Lenders for their account. Such payment to Administrative Agent shall
satisfy Canada Safeway's obligations under any Acceptances to which it relates
and each Canadian Lender that has accepted such Acceptances shall thereafter be
solely responsible for the payment of such Acceptances.
C. ROLLOVER. The obligation of Canada Safeway set forth in subsection
4.7A to pay to Administrative Agent the Face Amount of any then-maturing
Acceptance may be satisfied by Canada Safeway requesting that new Drafts be
accepted and discounted by the Canadian Lenders in the manner contemplated by
Section 4 in substitution for any then-maturing Acceptance; provided that no
Default or Event of Default shall have occurred and be continuing and Canada
Safeway shall have delivered to Administrative Agent (which shall promptly
provide a copy thereof to each Canadian Lender) a duly completed Drawing Notice
not later than 12:00 noon (Toronto time) one Business Day prior to such maturity
date, together with any other documents, instruments, certificates and other
information contemplated by Section 4.
D. CONVERSION. In the event Canada Safeway does not or cannot for any
reason comply with the provisions of subsections 4.7B or 4.7C with respect to
the obligation of Canada Safeway set forth in subsection 4.7A to pay to
Administrative Agent the Face Amount of any then-maturing Tranche A Acceptance
or Tranche B Acceptance, the unpaid amount due and payable in respect thereof
shall be converted as of such date, and without any necessity for Canada Safeway
to give a Notice of Borrowing in accordance with subsection 2.1B, to, and
thereafter be outstanding as, a Tranche A Canadian Prime Rate Loan made by
Canadian Lenders in accordance with their Tranche A Canadian Pro Rata Shares or
a Tranche B Canadian Prime Rate Loan made by Canadian Lenders in accordance with
their Tranche B
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Pro Rata Shares, as the case may be, and shall bear interest calculated and
payable as provided in subsection 2.2.
4.8 POWER OF ATTORNEY IN FAVOR OF CANADIAN LENDERS.
Canada Safeway hereby appoints each Canadian Lender, acting by
any authorized signatory of such Canadian Lender, the attorney of Canada
Safeway:
(a) to execute, for and on behalf and in the same name
of Canada Safeway as drawer, and to endorse on its behalf,
drafts in a form in accordance with subsection 4.3 and which
constitute depository bills for the purpose of the DBNA;
(b) to complete the amount, date and maturity of such
Acceptances; and
(c) to deposit such Acceptances that have been accepted
by such Canadian Lender with a clearing house (as defined in the
DBNA);
provided that such acts in each case are to undertaken by such Canadian Lender
in accordance with instructions given to such Canadian Lender by Canada Safeway
as provided in this subsection 4.8. For certainty, signatures of any authorized
signatory of such Canadian Lender may be mechanically reproduced in facsimile on
Acceptances issued in accordance with this subsection 4.8 and such facsimile
signatures will be binding and effective as if they had been manually executed
by such authorized signatory of such Canadian Lender. Instructions from Canada
Safeway to such Canadian Lender relating to the execution, completion,
endorsement, discount and/or delivery by such Canadian Lender on behalf of
Canada Safeway of Acceptances will be communicated by delivery of a Drawing
Notice to Administrative Agent.
4.9 CIRCUMSTANCES MAKING ACCEPTANCES UNAVAILABLE.
If Administrative Agent determines in good faith, which
determination shall be final, conclusive and binding upon Canada Safeway and
notifies Canada Safeway and each Canadian Lender that, by reason of
circumstances affecting the money market (i) there is no market for Acceptances;
or (ii) the demand for Acceptances is insufficient to allow the sale or trading
of the Acceptances created and purchased hereunder; then:
(a) the right of Canada Safeway to request a Drawing
shall be suspended until Administrative Agent determines that
the circumstances causing such suspension no longer exist and
Administrative Agent so notifies Canada Safeway; and
(b) any Drawing Notice which is outstanding shall be
cancelled and the Drawing requested therein shall not be made.
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Administrative Agent shall promptly notify Canada Safeway of the
suspension of its right to request a Drawing and of the termination of any such
suspension.
4.10 PREPAYMENTS.
Except as required or permitted by subsection 2.4A(iii) or
Section 10, no repayment of an Acceptance shall be made by Canada Safeway to a
Canadian Lender prior to the maturity date thereof. Any such repayment, made as
required by subsection 2.4A(iii) or Section 10, shall be made (unless such
repayment has been rescinded or otherwise is required to be returned by such
Canadian Lender to Canada Safeway for any reason) in accordance with the
provisions of subsection 4.7B. Any such payment by Canada Safeway to
Administrative Agent shall satisfy Canada Safeway obligations under the
Acceptance to which it relates and any such Canadian Lender which has accepted
such Acceptance shall thereafter be solely responsible for the payment of such
Acceptance and shall indemnify and hold Canada Safeway harmless against any
liabilities, costs or expenses incurred by Canada Safeway as a result of any
failure by such Canadian Lender to pay such Acceptance in accordance with its
terms.
4.11 USE OF PROCEEDS OF LOANS AND ACCEPTANCE FACILITY.
The proceeds of any Acceptance created under this Section 4
shall be used in the manner and for the purposes set forth in subsection 2.5A
with respect to the use of proceeds of Loans.
SECTION 5. INCREASED COSTS, TAXES, CAPITAL ADEQUACY, AND MITIGATION
5.1 INCREASED COSTS; TAXES; CAPITAL ADEQUACY.
A. COMPENSATION FOR INCREASED COSTS AND TAXES. Subject to the provisions
of subsection 5.1B, in the event that any Lender shall determine (which
determination shall, absent manifest or demonstrable error, be final and
conclusive and binding upon all parties hereto) that any law, treaty or
governmental rule, regulation or order, or any change therein or in the
interpretation, administration or application thereof (including the
introduction of any new law, treaty or governmental rule, regulation or order),
or any determination of a court or governmental authority, in each case that
becomes effective or is adopted after the date hereof, or compliance by such
Lender with any guideline, request or directive issued or made after the date
hereof by any central bank or other governmental or quasi-governmental authority
(whether or not having the force of law):
(i) subjects such Lender (or its applicable lending office) to
any additional Tax (other than any Excluded Tax) with respect to, or
changes the basis of taxation applicable to (except for changes in the
rate of any Excluded Tax), this Agreement or any of its obligations
hereunder (including, without limitation, its obligation to make Loans,
issue or participate in Letters of Credit, or accept Drafts and purchase
the Acceptances thereby created) or any payments to such Lender (or its
applicable
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lending office) of principal, interest, fees, letter of credit
commissions, the Face Amounts of any Acceptances, or any other amount
payable hereunder;
(ii) imposes, modifies or holds applicable any reserve
(including without limitation any marginal, emergency, supplemental,
special or other reserve), special deposit, compulsory loan, FDIC
insurance or similar requirement (including, without limitation, any
such requirement imposed under the Bank Act (Canada) with respect to
Tranche A Canadian Eurodollar Rate Loans or Tranche B Canadian
Eurodollar Rate Loans, but excluding any such reserve or other
requirements that are reflected in the definition of Adjusted Eurodollar
Rate with respect to Tranche A Domestic Eurodollar Rate Loans, Tranche B
Domestic Eurodollar Rate Loans or Tranche B Canadian Eurodollar Rate
Loans or that are reflected in the definition of Canadian Eurodollar
Rate with respect to Tranche A Canadian Eurodollar Rate Loans or Tranche
B Canadian Eurodollar Rate Loans) against assets held by, or deposits or
other liabilities in or for the account of, or advances or loans by, or
other credit extended by, or any other acquisition of funds by, any
office of such Lender (including, without limitation, the Commitments,
Loans, Letters of Credit or participations in Letters of Credit and
Acceptances of such Lender); or
(iii) imposes any other condition (other than with respect to a
Tax matter) on or affecting such Lender (or its applicable lending
office) or its obligations hereunder, its Loans, its Letters of Credit
and participations therein, its Acceptances or the interbank Eurodollar
market;
and the result of any of the foregoing is (1) to increase the cost to such
Lender of agreeing to make, making or maintaining Loans hereunder, (2) to
increase the cost to such Lender of agreeing to issue, issuing or maintaining
any Letter of Credit or agreeing to purchase, purchasing or maintaining any
participation therein, (3) to increase the cost to such Lender of agreeing to
accept Drafts and to purchase and maintain the Acceptances created thereby, or
(4) to reduce any amount received or receivable by such Lender (or its
applicable lending office) with respect to its Loans, Letters of Credit and
participations therein and its Acceptances; then, in any such case, Borrowers
shall promptly pay to such Lender, upon receipt of the statement referred to in
the next sentence, such additional amount or amounts (in the form of an
increased rate of, or a different method of calculating, interest or otherwise
as such Lender in its sole discretion shall determine) as may be necessary to
compensate such Lender for any such increased cost or reduction in amounts
received or receivable hereunder; provided that such Lender shall not be
entitled to avail itself of the benefits of this subsection 5.1A to the extent
that any such increased cost or reduction was incurred more than six months
prior to the time it gives notice to Borrowers unless such circumstances arose
or became applicable retrospectively, in which case no time limit shall apply
(provided such Lender has notified the applicable Borrower within six months
from the date such circumstance arose or became applicable). Such Lender shall
deliver to Borrowers (with a copy to Administrative Agent) a written statement,
setting forth in reasonable detail the basis for calculating the additional
amounts owed to such Lender under this subsection 5.1A, which statement shall be
conclusive and binding upon all parties hereto absent manifest or demonstrable
error.
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B. WITHHOLDING OF TAXES.
(i) Payments to Be Free and Clear. All sums payable by any
Borrower to any Lender under this Agreement and the other Loan Documents
shall be paid free and clear of and (except to the extent required by
law or resulting from a breach of the exemption requirements specified
in subsection 5.1B(iii) below or the fact that the exemption forms
delivered by such Lender pursuant to subsection 5.1B(iii) were not true
and correct) without any deduction or withholding on account of any Tax
(other than any Excluded Taxes relating to such Lender) imposed, levied,
collected, withheld or assessed by or within the United States of
America or Canada or any political subdivision in or of the United
States of America or Canada or any other jurisdiction from or to which a
payment is made by or on behalf of any Borrower or by any federation or
organization of which the United States of America or Canada or any such
jurisdiction is a member at the time of payment.
(ii) Grossing-up of Payments. If any Borrower is required by law
to make any deduction or withholding on account of any such Tax (other
than Excluded Taxes) from any sum paid or payable by such Borrower to
any Primary Agent or any Lender under any of the Loan Documents:
(a) such Borrower shall notify each Primary Agent of any
such requirement or any change in any such requirement as soon
as such Borrower becomes aware of it;
(b) such Borrower shall pay any such Tax before the date
on which penalties attach thereto, such payment to be made (if
the liability to pay is imposed on such Borrower) for its own
account or (if that liability is imposed on any Primary Agent or
any Lender, as the case may be) on behalf of and in the name of
such Primary Agent or such Lender, as the case may be;
(c) the sum payable by such Borrower in respect of which
the relevant deduction, withholding or payment is required shall
be increased to the extent necessary to ensure that, after the
making of that deduction, withholding or payment, such Primary
Agent or such Lender, as the case may be, receives on the due
date a net sum equal to what it would have received had no such
deduction, withholding or payment been required or made; and
(d) within 30 days after paying any sum from which it is
required by law to make any deduction or withholding, and within
30 days after the due date of payment of any Tax which it is
required by clause (b) above to pay, such Borrower shall deliver
to each Primary Agent evidence reasonably satisfactory to the
other affected parties of such deduction, withholding or payment
and of the remittance thereof to the relevant taxing or other
authority;
provided that no such additional amount shall be required to be paid to
any Lender under clause (c) above except to the extent that any change
after the date hereof (in the case of each Lender listed on the
signature pages hereof) or after the date of the
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Assignment Agreement pursuant to which such Lender became a Lender (in
the case of each other Lender) in any such requirement for a deduction,
withholding or payment as is mentioned therein shall result in an
increase in the rate of such deduction, withholding or payment from that
in effect at the date of this Agreement or at the date of such
Assignment Agreement, as the case may be, in respect of payments to such
Lender.
In the event any Borrower is required to pay any amount under
clause (b) or (c) above, such Borrower may do so under protest
and may contest the imposition or amount of any Tax giving rise
to such payment, and each Lender agrees, at such Borrower's cost
and expense, to cooperate with and assist such Borrower in any
proceeding related to any such contest.
(iii) Evidence of Exemption from Withholding Tax.
(a) Each Domestic Lender and each Canadian Lender that
makes Loans to Company, which in either case is organized under
the laws of any jurisdiction other than the United States, any
state thereof or any political subdivision of either (for
purposes of this subsection 5.1B(iii), a "NON-US LENDER") shall
deliver to Administrative Agent for transmission to Company, on
or prior to the Closing Date (in the case of each Lender listed
on the signature pages hereof) or on the date of the Assignment
Agreement pursuant to which it becomes a such Lender (in the
case of each other Lender), and at such other times as may be
necessary in the determination of Company or Administrative
Agent (each in the reasonable exercise of its discretion), (1)
two original copies of Internal Revenue Service Form 1001 or
4224 (or any successor forms), properly completed and duly
executed by such Lender, together with any other certificate or
statement of exemption required under the Internal Revenue Code
or the regulations issued thereunder or otherwise to establish
that such Lender is not subject to deduction or withholding of
Taxes imposed by the United States, any State thereof or any
political subdivision of either with respect to any payments to
such Lender of principal, interest, fees or other amounts
payable under any of the Loan Documents or (2) if such Lender is
not a "bank" or other Person described in Section 881(c)(3) of
the Internal Revenue Code and cannot deliver either Internal
Revenue Service Form 1001 or 4224 pursuant to clause (1) above,
a Certificate re Non-Bank Status together with two original
copies of Internal Revenue Service Form W-8 (or any successor
form), properly completed and duly executed by such Lender,
together with any other certificate or statement of exemption
required under the Internal Revenue Code or the regulations
issued thereunder or otherwise to establish that such Lender is
not subject to deduction or withholding of Taxes imposed by the
United States, any state thereof or any political subdivision of
either with respect to any payments to such Lender of interest
payable under any of the Loan Documents.
Each Canadian Lender that is organized under the laws of
any jurisdiction other than Canada or any Province thereof or is
not resident in
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Canada agrees to deliver to Canada Safeway and Administrative
Agent upon request such certificates, documents or other
evidence as may be required from time to time, properly
completed and duly executed by such Canadian Lender to establish
the basis for any applicable exemption from or reduction of
Taxes with respect to any payments to such Canadian Lender of
principal, interest, fees, commissions or any other amount
payable under this Agreement or the Canadian Loans.
(b) Each Lender required to deliver any forms,
certificates or other evidence with respect to United States
federal income tax withholding or Canadian income tax
withholding matters pursuant to subsection 5.1B(iii)(a) hereby
agrees, from time to time after the initial delivery by such
Lender of such forms, certificates or other evidence, whenever a
lapse in time or change in circumstances renders such forms,
certificates or other evidence obsolete or inaccurate in any
material respect, such Lender shall (1) in the case of any
Domestic Lender or Canadian Lender advancing Loans to Company,
deliver to Administrative Agent for transmission to Company two
new original copies of Internal Revenue Service Form 1001 or
4224, or a Certificate re Non-Bank Status and two original
copies of Internal Revenue Service Form W-8, as the case may be,
or in the case of any Canadian Lender, such certificates,
documents or other evidence as may be required from time to time
under the second paragraph of subsection 5.1B(iii)(a), in each
case properly completed and duly executed by such Lender,
together with any other certificate or statement of exemption
required in order to confirm or establish that such Lender is
not subject to deduction or withholding of United States or
Canadian (as applicable) federal income tax with respect to
payments to such Lender under the Loan Documents or (2)
immediately notify Administrative Agent and Company of its
inability to deliver any such forms, certificates or other
evidence.
(c) Borrowers shall not be required to pay any
additional amount to any Non-US Lender or Canadian Lender under
clause (b) or (c) of subsection 5.1B(ii) if such Lender shall
have failed to satisfy the requirements of subsection
5.1B(iii)(a); provided that if such Lender shall have satisfied
such requirements on the Closing Date (in the case of each
Lender listed on the signature pages hereof) or on the date of
the Assignment Agreement pursuant to which it became a Lender
(in the case of each other Lender), nothing in this subsection
5.1B(iii)(c) shall relieve any Borrower of its obligation to pay
any additional amounts pursuant to clause (b) or (c) of
subsection 5.1B(ii) in the event that, as a result of any change
in any applicable law, treaty or governmental rule, regulation
or order, or any change in the interpretation, administration or
application thereof, such Lender is no longer properly entitled
to deliver forms, certificates or other evidence at a subsequent
date establishing the fact that such Lender is not subject to
withholding as described in subsection 5.1B(iii)(a).
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C. CAPITAL ADEQUACY ADJUSTMENT. If any Lender shall have determined that
the adoption, effectiveness, phase-in or applicability after the date hereof of
any law, rule or regulation (or any provision thereof) regarding capital
adequacy (excluding those published as of the Closing Date but scheduled to take
effect thereafter), or any change therein or in the interpretation or
administration thereof by any governmental authority, central bank or comparable
agency charged with the interpretation or administration thereof, or compliance
by any Lender (or its applicable lending office) with any guideline, request or
directive regarding capital adequacy (whether or not having the force of law) of
any such governmental authority, central bank or comparable agency, has or would
have the effect of reducing the rate of return on the capital of such Lender or
any corporation controlling such Lender as a consequence of, or with reference
to, such Lender's Domestic Loans, Tranche A Domestic Commitment, Tranche B
Domestic Commitment or Letters of Credit or participations therein or other
obligations hereunder with respect to the Domestic Loans or the Letters of
Credit, in the case of any Domestic Lender, or such Lender's Canadian Loans,
Tranche A Canadian Commitment, Tranche B Canadian Commitment or Acceptances or
other obligations hereunder with respect to the Canadian Loans, or Acceptances,
in the case of an Canadian Lender, to a level below that which such Lender or
such controlling corporation could have achieved but for such adoption,
effectiveness, phase-in, applicability, change or compliance (taking into
consideration the policies of such Lender or such controlling corporation with
regard to capital adequacy), then from time to time, within 15 Business Days
after receipt by Company from such Lender of the statement referred to in the
next sentence, Company (in the case of any such statement received from a
Domestic Lender) or Borrowers (in the case of any such statement receive from a
Canadian Lender) shall pay to such Lender such additional amount or amounts as
will compensate such Lender or such controlling corporation on an after-tax
basis for such reduction; provided no Lender shall be entitled to avail itself
of the benefit of this subsection 5.1C to the extent that any such reduction in
return was incurred more than six months prior to the time it first makes a
demand therefor, unless the circumstance giving rise to such reduced return
arose or became applicable retrospectively, in which case no time limit shall
apply (provided that such Lender has notified Borrowers within six months from
the date such circumstances arose or became applicable). Each Lender, upon
determining in good faith that any additional amounts will be payable pursuant
to this subsection 5.1C, will give prompt written notice thereof to Borrowers,
which notice shall set forth in reasonable detail the basis of the calculation
of such additional amounts, which statement shall be conclusive and binding upon
all parties hereto absent manifest or demonstrable error.
5.2 OBLIGATION OF LENDERS AND ISSUING LENDERS TO MITIGATE.
Each Lender and Issuing Lender agrees that, as promptly as
practicable after the officer of such Lender or Issuing Lender responsible for
administering the Loans, or Acceptances of such Lender or Letters of Credit of
such Issuing Lender, as the case may be, becomes aware of the occurrence of an
event or the existence of a condition that would cause such Lender to become an
Affected Lender or that would entitle such Lender or Issuing Lender to receive
payments under subsection 5.1 it will, to the extent not inconsistent with the
internal policies of such Lender or Issuing Lender and any applicable legal or
regulatory restrictions, use reasonable efforts (i) to make, issue, fund or
maintain the Commitment of
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such Lender or the affected Loans, Acceptances or Letters of Credit of such
Lender or Issuing Lender through another lending or letter of credit office of
such Lender or Issuing Lender, or (ii) take such other measures as such Lender
or Issuing Lender may deem reasonable, if as a result thereof the circumstances
which would cause such Lender to be an Affected Lender would cease to exist or
the additional amounts which would otherwise be required to be paid to such
Lender or Issuing Lender pursuant to subsection 5.1 would be materially reduced
and if, as determined by such Lender or Issuing Lender in its sole discretion,
the making, issuing, funding or maintaining of such Commitment, Loans,
Acceptances or Letters of Credit through such other lending or letter of credit
office or in accordance with such other measures, as the case may be, would not
otherwise materially adversely affect such Commitment, Loans, Acceptances or
Letters of Credit or the interests of such Lender or Issuing Lender; provided
that such Lender or Issuing Lender will not be obligated to utilize such other
lending or letter of credit office pursuant to this subsection 5.2 unless
Company (in the case of any Domestic Lender) or each Borrower (in the case of
any Canadian Lender) agrees to pay all reasonable expenses incurred by such
Lender or Issuing Lender as a result of utilizing such other lending or letter
of credit office as described in clause (i) above. A certificate as to the
amount of any such expenses payable by Company or Borrowers pursuant to this
subsection 5.2 (setting forth in reasonable detail the basis for requesting such
amount) submitted by such Lender or Issuing Lender to Company (with a copy to
Administrative Agent) shall be conclusive absent manifest or demonstrable error.
5.3 REPLACEMENT OF LENDERS.
In the event (i) any Borrower is required under the provisions
of subsection 2.6C or 5.1 to make payments to any Lender, or (ii) any Lender
refuses to consent to a proposed change, waiver, discharge or termination with
respect to this Agreement which has been approved by the Requisite Lenders as
provided in the first sentence of subsection 13.6A, (x) such Borrower may within
120 days after the date of any notice or demand requiring such payment under
subsection 2.6C or 5.1 is given and so long as no Event of Default shall have
occurred and be continuing, in the case of clause (i) above, and (y) Company may
at any time, so long as no Event of Default shall have occurred and be
continuing, in the case of clause (ii) above, elect to terminate such Lender
(and, if such Lender is a Canadian Lender having a U.S. Affiliate, such U.S.
Affiliate) as a party (or parties) to this Agreement; provided that,
concurrently with such termination, (i) each Borrower shall pay that Lender (and
any U.S. Affiliate of such Lender, if any), without duplication, all principal,
interest and fees and other amounts (including, without limitation, amounts, if
any, owed under subsections 5.1 or 2.6D) owed to such Lender (and any such U.S.
Affiliate) through such date of termination, (ii) another Lender or Eligible
Assignee shall agree, as of such date, in accordance with the provisions of
subsection 13.1, to become a Lender for all purposes under this Agreement
(whether by assignment or amendment, if necessary) and to assume all obligations
of the Lender to be terminated as of such date and (iii) all documents and
supporting materials necessary, in the judgment of Administrative Agent to
evidence the substitution of such Lender shall have been received and approved
by Administrative Agent as of such date.
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SECTION 6. CONDITIONS TO LOANS, LETTERS OF CREDIT AND ACCEPTANCES
The obligations of Lenders to make Loans, to create Acceptances
and to issue and participate in Letters of Credit hereunder and to deem the
Existing Company Letters of Credit to be Letters of Credit issued hereunder are
subject to the satisfaction of the following conditions:
6.1 CONDITIONS TO INITIAL LOANS.
The obligations of Lenders to extend any credit hereunder on the
Closing Date are, in addition to the conditions precedent specified in
subsection 6.2, subject to prior or concurrent satisfaction of the following
conditions:
A. BORROWER DOCUMENTS. On or before the Closing Date, each Borrower
shall deliver or cause to be delivered to Lenders (or to Co-Arrangers for
Lenders with sufficient copies, where appropriate, for each Lender) the
following, each, unless otherwise noted, dated the Closing Date:
(i) Certified copies of its Articles or Certificate of
Incorporation, together with a good standing certificate from the
Secretary of State (or comparable official) of its jurisdiction of
incorporation, each dated a recent date prior to the Closing Date;
(ii) Copies of its Bylaws, certified as of the Closing Date by
its corporate secretary or an assistant secretary;
(iii) Resolutions of its Board of Directors approving and
authorizing the execution, delivery and performance of this Agreement
and the other Loan Documents to which it is a party, certified as of the
Closing Date by its corporate secretary or an assistant secretary as
being in full force and effect without modification or amendment;
(iv) Signature and incumbency certificates of its officers
executing this Agreement and the other Loan Documents to which it is a
party;
(v) Executed originals of this Agreement, the Notes (duly
executed in accordance with subsection 2.1E, drawn to the order of each
Lender and with appropriate insertions) and the other Loan Documents to
which it is a party; and
(vi) Such other documents as any Primary Agent may reasonably
request.
B. OPINIONS OF COMPANY'S COUNSEL. On or before the Closing Date, Company
shall deliver or cause to be delivered to Lenders (or to Co-Arrangers for
Lenders with sufficient copies for each Lender) (i) originally executed copies
of one or more favorable written opinions of ▇▇▇▇▇▇ & ▇▇▇▇▇▇▇, special counsel
for Company, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇, Esq., Vice President--Corporate Law and Secretary
of Company, ▇▇▇▇▇▇ ▇▇▇▇▇▇, counsel for Canada Safeway, and M. ▇▇▇▇▇ ▇▇▇▇▇▇,
Esq., General Counsel for Canada Safeway, each
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in form and substance reasonably satisfactory to Co-Arrangers and its counsel,
dated as of the Closing Date and setting forth substantially the matters in the
opinions designated in Exhibits VI-A, VI-B, VI-C, and VI-D annexed hereto and as
to such other matters as Co-Arrangers acting on behalf of Lenders may reasonably
request and (ii) evidence satisfactory to Co-Arrangers that Company has
requested such counsel to deliver such opinions to Lenders.
C. OPINIONS OF CO-ARRANGERS' COUNSEL. Lenders (or Co-Arrangers for
Lenders with sufficient copies for each Lender) shall have received originally
executed copies of one or more favorable written opinions of O'Melveny & ▇▇▇▇▇
LLP, counsel to Co-Arrangers, dated as of the Closing Date, substantially in the
form of Exhibit VII annexed hereto and as to such other matters as Co-Arrangers
acting on behalf of Lenders may reasonably request.
D. FEES. Company shall have paid the fees payable on the Closing Date
referred to in subsection 2.3.
E. REPAYMENT OF OBLIGATIONS UNDER EXISTING CREDIT AGREEMENT. On or
before the Closing Date, Borrowers shall have paid in full all amounts
outstanding under the Existing Credit Agreement and shall have terminated all
commitments of the lenders thereunder (except with respect to the Existing
Company Letters of Credit and Existing Acceptances issued pursuant to the
Existing Credit Agreement, which shall remain issued notwithstanding the
termination of all commitments thereunder). Without affecting the terms of the
Existing Credit Agreement which expressly survive the termination of the
Existing Credit Agreement each Lender party to the Existing Credit Agreement
hereby waives any requirement of advance notice of termination required under
the Existing Credit Agreement and hereby agrees that the Existing Credit
Agreement and the commitments thereunder shall terminate simultaneously with or
before the satisfaction by Borrowers of the conditions to the funding of the
initial Loans set forth in this subsection 6.1.
F. NO MATERIAL ADVERSE EFFECT. Since December 30, 2000, no event shall
have occurred, and no condition shall have developed and persist, that could, in
the reasonable opinion of Requisite Lenders have a Material Adverse Effect other
than as disclosed to Lenders in Company's public filings with the SEC prior to
the date hereof.
G. REPRESENTATIONS AND WARRANTIES. Each Borrower shall have delivered to
Co-Arrangers an Officers' Certificate, in form and substance satisfactory to
Co-Arrangers, to the effect that the representations and warranties of such
Borrower in Section 7 hereof are true, correct and complete in all material
respects on and as of the Closing Date to the same extent as though made on and
as of that date.
H. NO DISRUPTION OF FINANCIAL MARKETS. From May 1, 2001 to the Closing
Date, there shall have occurred no disruption or adverse change in the financial
or capital markets which either Co-Arranger, in its reasonable discretion, deems
material.
I. INTERCREDITOR ARRANGEMENTS. Domestic Lenders and Canadian Lenders
shall have entered into arrangements satisfactory to each Co-Arranger and
Lenders relating to the
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sharing of payments received by Lenders upon the exercise of remedies under this
Agreement, including, but not limited to, the Subsidiary Borrower Guaranty.
J. EXISTING COMPANY LETTERS OF CREDIT. All accrued and outstanding fees
as of the Closing Date with respect to the Existing Company Letters of Credit
shall have been paid to the applicable Lender to which such fees are payable
pursuant to the terms governing such Existing Company Letters of Credit prior to
the Closing Date.
K. COMPLETION OF PROCEEDINGS. All corporate and other proceedings taken
or to be taken in connection with the transactions contemplated hereby and all
documents incidental thereto not previously found acceptable by each Primary
Agent, acting on behalf of Lenders, and their counsel shall be reasonably
satisfactory in form and substance to each Primary Agent and such counsel, and
each Primary Agent and such counsel shall have received all such counterpart
originals or certified copies of such documents as such Primary Agent may
reasonably request.
6.2 CONDITIONS TO ALL LOANS.
The obligations of Lenders to make Loans on each Funding Date
are subject to the following further conditions precedent:
A. Administrative Agent shall have received before that Funding Date, in
accordance with the provisions of subsection 2.1B, an originally executed Notice
of Borrowing, in each case signed by any executive officer or vice president of
the applicable Borrower (each such person being a "AUTHORIZED OFFICER").
B. As of that Funding Date:
(i) The representations and warranties contained herein and in
the other Loan Documents shall be true, correct and complete in all
material respects on and as of that Funding Date to the same extent as
though made on and as of that date, except to the extent that such
representations and warranties specifically relate to an earlier date,
in which case, such representations and warranties shall be true,
correct and complete in all material respects on and as of such earlier
date;
(ii) No event shall have occurred and be continuing or would
result from the consummation of the borrowing contemplated by such
Notice of Borrowing that would constitute an Event of Default or a
Potential Event of Default;
(iii) The applicable Borrower shall have performed in all
material respects all agreements and satisfied all conditions which this
Agreement provides shall be performed or satisfied by it on or before
that Funding Date;
(iv) No order, judgment or decree of any court, arbitrator or
governmental authority shall purport to enjoin or restrain Lenders from
making the Loans to be made on that Funding Date;
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(v) The making of the Loans requested on such Funding Date shall
not violate any law including, without limitation, Regulation T,
Regulation U or Regulation X of the Board of Governors of the Federal
Reserve System; and
(vi) There shall not be pending or, to the knowledge of
Borrowers, threatened, any action, suit, proceeding, governmental
investigation or arbitration against or affecting Company or any of its
Subsidiaries or any property of Company or any of its Subsidiaries that
has not been disclosed by Company in writing pursuant to subsection 7.6
or 8.1(viii) prior to the making of the last preceding Loans (or, in the
case of the initial Loans, prior to the execution of this Agreement),
and there shall have occurred no development not so disclosed in any
such action, suit, proceeding, governmental investigation or arbitration
so disclosed, that, in either event, in the opinion of any Primary Agent
or of Requisite Lenders, would be expected to have a Material Adverse
Effect.
6.3 CONDITIONS TO LETTERS OF CREDIT.
The issuance of any Letter of Credit hereunder (whether or not
the applicable Issuing Lender is obligated to issue such Letter of Credit) is
subject to the following conditions precedent:
A. On or before the date of issuance of the initial Letter of Credit
pursuant to this Agreement, the initial Loans shall have been made.
B. On or before the date of issuance of such Letter of Credit,
Administrative Agent shall have received, in accordance with the provisions of
subsection 3.1B(i), an originally executed Notice of Issuance of Letter of
Credit, in each case signed by an Authorized Officer, together with all other
information specified in subsection 3.1B(i) and such other documents, agreements
or information as the applicable Issuing Lender may reasonably require in
connection with the issuance of such Letter of Credit.
C. On the date of issuance of such Letter of Credit, all conditions
precedent described in subsection 6.2B shall be satisfied to the same extent as
if the issuance of such Letter of Credit were the making of a Loan and the date
of issuance of such Letter of Credit were a Funding Date.
6.4 CONDITIONS TO ACCEPTANCES.
The creation of any Acceptance hereunder is subject to the
following conditions precedent:
A. On or before the date of the initial creation of any Acceptance
pursuant to this Agreement, the initial Loans shall have been made.
B. On or before the date of the creation of any Acceptance,
Administrative Agent shall have received, in accordance with the provisions of
subsection 4.2, an originally
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executed Drawing Notice, in each case signed by any executive officer or vice
president of Canada Safeway and acknowledged by any Authorized Officer of
Company.
C. On the date of the creation of any Acceptance, all conditions
precedent described in subsection 6.2B shall be satisfied to the same extent as
if the creation of such Acceptance were the making of a Loan and the Drawing
Date were a Funding Date.
SECTION 7. BORROWERS' REPRESENTATIONS AND WARRANTIES
In order to induce Lenders to enter into this Agreement, to make
the Loans and/or create any Acceptance, to induce Issuing Lenders to issue
Letters of Credit and to induce other Domestic Lenders to purchase
participations therein, each Borrower represents and warrants to each Lender
(which representations and warranties in the case of Canada Safeway shall be
limited to Canada Safeway and its Subsidiaries and shall exclude the
representations and warranties set forth in subsection 7.9), on the date of this
Agreement, on each Funding Date, Drawing Date and on the date of issuance of
each Letter of Credit, that the following statements are true, correct and
complete:
7.1 ORGANIZATION, POWERS, QUALIFICATION, GOOD STANDING AND BUSINESS.
A. ORGANIZATION AND POWERS. Each of the Loan Parties is a corporation
duly incorporated, validly existing and in good standing under the laws of its
respective jurisdiction of incorporation. Each of the Loan Parties has all
requisite corporate power and authority to own and operate its properties, to
carry on its business as now conducted, to enter into each Loan Document to
which it is a party and to carry out the transactions contemplated hereby and
thereby.
B. QUALIFICATION AND GOOD STANDING. Each Loan Party is qualified to do
business and in good standing in every jurisdiction where its assets are located
and wherever necessary to carry out its business and operations, except in
jurisdictions where the failure to be so qualified or in good standing has not
had and will not have a Material Adverse Effect.
7.2 AUTHORIZATION OF BORROWING, ETC.
A. AUTHORIZATION OF BORROWING. The execution, delivery and performance
of each of the Loan Documents by each of the Loan Parties party thereto have
been duly authorized by all necessary corporate action on the part of such Loan
Parties.
B. NO CONFLICT. The execution, delivery and performance by each of the
Loan Parties of the Loan Documents to which it is a party and the consummation
of the transactions contemplated by the Loan Documents do not and will not (i)
violate any provision of any law or any governmental rule or regulation
applicable to any Loan Party, the Certificate or Articles of Incorporation or
Bylaws of any Loan Party or any order, judgment or decree of any court or other
agency of government binding on any Loan Party, (ii) conflict with, result in a
material breach of or constitute (with due notice or lapse of time or both) a
default under any Contractual Obligation of any Loan Party, (iii) result in or
require the creation or imposition of any Lien upon any of the properties or
assets of any Loan Party, or
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(iv) require any approval of stockholders or any approval or consent of any
Person under any Contractual Obligation of any Loan Party, except for such
approvals or consents which will be obtained on or before the Closing Date and
disclosed in writing to Lenders.
C. GOVERNMENTAL CONSENTS. The execution, delivery and performance by
each of the Loan Parties of the Loan Documents to which it is a party and the
consummation of the transactions contemplated by the Loan Documents do not and
will not require such Loan Party to make or obtain any registration with,
consent or approval of, or notice to, or other action to, with or by, any United
States federal, Canadian Federal, state, provincial or other governmental
authority or regulatory body.
D. BINDING OBLIGATION. Each of the Loan Documents has been duly executed
and delivered by each of the Loan Parties party thereto and is the legally valid
and binding obligation of each such Loan Party, enforceable against each such
Loan Party in accordance with its respective terms, except as may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws relating to
or limiting creditors' rights generally or by equitable principles relating to
enforceability.
7.3 FINANCIAL CONDITION.
Company has heretofore delivered to Lenders, at Lenders'
request, the audited consolidated balance sheet of Company and its Subsidiaries
as at December 30, 2000 and the related consolidated statements of income,
stockholders' equity and cash flows of Company and its Subsidiaries for the
Fiscal Year then ended, in each case as presented in Company's Annual Report on
SEC Form 10-K for its 2000 fiscal year. All such statements were prepared in
conformity with GAAP and fairly present the financial position (on a
consolidated basis) of the entities described in such financial statements as at
the respective dates thereof and the results of operations and cash flows (on a
consolidated basis) of the entities described therein for each of the periods
then ended.
7.4 NO MATERIAL ADVERSE EFFECT.
Since December 30, 2000, no event or change has occurred that
has caused or evidences, either in any case or in the aggregate, a Material
Adverse Effect other than as disclosed to Lenders in Company's public filings
with the SEC prior to the date hereof.
7.5 LITIGATION; ADVERSE FACTS.
Except as set forth in Company's Annual Report on SEC Form 10-K
for its 2000 fiscal year and Company's 2000 Annual Report to Stockholders or any
SEC Form 8-K filed with the SEC prior to the Closing Date, there are no actions,
suits, proceedings, arbitrations or governmental investigations (whether or not
purportedly on behalf of Company or any of its Subsidiaries) at law or in equity
or before or by any federal, state, municipal or other governmental department,
commission, board, bureau, agency or instrumentality, domestic or foreign,
pending or, to the knowledge of Company, threatened against or affecting Company
or any of its Subsidiaries or any property of Company or any of its Subsidiaries
that, individually or in the aggregate, would reasonably be expected to result
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in a Material Adverse Effect. Neither Company nor any of its Subsidiaries is (i)
in violation of any applicable laws that, individually or in the aggregate,
would reasonably be expected to result in a Material Adverse Effect or (ii)
subject to or in default with respect to any final judgments, writs,
injunctions, decrees, rules or regulations of any court or any federal, state,
municipal or other governmental department, commission, board, bureau, agency or
instrumentality, domestic or foreign, that, individually or in the aggregate,
would reasonably be expected to result in a Material Adverse Effect.
7.6 PAYMENT OF TAXES.
Except to the extent permitted by subsection 8.3, all material
tax returns and reports of Company and its Subsidiaries required to be filed by
any of them have been timely filed, and all material taxes, assessments, fees
and other governmental charges upon Company and its Subsidiaries and upon their
respective properties, assets, income, businesses and franchises which are due
and payable have been paid when due and payable.
7.7 GOVERNMENTAL REGULATION.
Neither Company nor any of its Subsidiaries is subject to
regulation under the Public Utility Holding Company Act of 1935, the Federal
Power Act, the Interstate Commerce Act or the Investment Company Act of 1940 or
under any other United States federal, Canadian federal, state or provincial
statute or regulation which may limit its ability to incur or guaranty
Indebtedness.
7.8 SECURITIES ACTIVITIES.
A. Neither Company nor any of its Subsidiaries is 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.
B. Following application of the proceeds of each Loan, not more than 25%
of the value of the assets (either of Company only or of Company and its
Subsidiaries on a consolidated basis) subject to the provisions of subsection
9.1 or 9.3 or subject to any restriction contained in any agreement or
instrument between Company and any Lender or any Affiliate of any Lender,
relating to Indebtedness and within the scope of subsection 10.2, will be Margin
Stock.
7.9 EMPLOYEE BENEFIT PLANS.
A. Company and each of its ERISA Affiliates are in compliance in all
material respects with all applicable provisions and requirements of ERISA and
the regulations and published interpretations thereunder with respect to each
Employee Benefit Plan, and have performed all their material obligations under
each Employee Benefit Plan.
B. No ERISA Event has occurred or is reasonably expected to occur.
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C. Except to the extent required under Section 4980B of the Internal
Revenue Code or as disclosed in Company's financial statements, no Employee
Benefit Plan that is not a Multiemployer Plan provides health or welfare
benefits (through the purchase of insurance or otherwise) for any retired or
former employees of Company or any of its ERISA Affiliates.
D. As of the most recent valuation date for any Pension Plan, the amount
of unfunded benefit liabilities (as defined in Section 4001(a)(18) of ERISA),
individually or in the aggregate for all Pension Plans (excluding for purposes
of such computation any Pension Plans with respect to which assets exceed
benefit liabilities), does not exceed $100,000,000.
7.10 DISCLOSURE.
No representation or warranty of Company or any of its
Subsidiaries contained in any Loan Document or in any other document,
certificate or written statement furnished to Lenders by or on behalf of Company
or any of its Subsidiaries for use in connection with the transactions
contemplated by this Agreement, as of the date made, contained any untrue
statement of a material fact or omitted to state a material fact (known to
Company, in the case of any document not furnished by it) necessary in order to
make the statements contained herein or therein not misleading in light of the
circumstances in which the same were made. Any projections and pro forma
financial information contained in such materials are based upon good faith
estimates and assumptions believed by Company to be reasonable at the time made,
it being recognized by Lenders that such projections as to future events are not
to be viewed as facts and that actual results during the period or periods
covered by any such projections may differ from the projected results. There are
no facts known to Company (other than matters of a general economic nature)
that, individually or in the aggregate, would reasonably be expected to result
in a Material Adverse Effect and that have not been disclosed herein or in such
other documents, certificates and written statements furnished to Lenders for
use in connection with the transactions contemplated hereby.
7.11 SOLVENCY.
At the making of any Canadian Loan, or utilization of the
Acceptance Facility, by Canada Safeway, it will be Solvent.
SECTION 8. BORROWERS' AFFIRMATIVE COVENANTS
Each Borrower covenants and agrees (which covenants and
agreements, in the case of Canada Safeway, shall be limited to those covenants
and agreements that are within the control and discretion of Canada Safeway and
its Subsidiaries) that, so long as the Commitments hereunder shall remain in
effect and until payment in full of all of the Loans, Acceptances and other
Obligations and the cancellation or expiration of all Letters of Credit, unless
Requisite Lenders shall otherwise give prior written consent, each Borrower
shall perform, and shall cause each of its Subsidiaries to perform, all
covenants in this Section 8.
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8.1 FINANCIAL STATEMENTS AND OTHER REPORTS.
Each Borrower shall maintain, and cause each of its Subsidiaries
to maintain, a system of accounting established and administered in accordance
with sound business practices to permit preparation of financial statements in
conformity with GAAP. Company shall deliver to Administrative Agent and Lenders:
(i) Quarterly Financials: As soon as available and in any event
within 45 days after the close of each of the first three fiscal
quarters in each fiscal year of Company, to the extent prepared to
comply with SEC requirements, a copy of Company's report on SEC Form
10-Q filed with the SEC for such fiscal quarter, or, if no such Form
10-Q was filed by Company, the unaudited consolidated condensed balance
sheet of Company and its Subsidiaries as at the end of such fiscal
quarter, the related unaudited consolidated condensed statements of
income of Company and its Subsidiaries for such fiscal quarter and for
the elapsed portion of the fiscal year ended as of the end of such
fiscal quarter and the related unaudited consolidated condensed
statement of cash flows of Company and its Subsidiaries for the elapsed
portion of the fiscal year ended as of the end of such fiscal quarter,
in each case setting forth the comparative consolidated figures for the
corresponding periods in the prior fiscal year of Company or, in the
case of such consolidated balance sheet, for the last day of the
corresponding fiscal quarter in the prior fiscal year of Company, all of
which shall be certified by the chief financial officer of Company as
fairly presenting the consolidated financial condition of Company and
its Subsidiaries at the respective dates indicated and the results of
their consolidated operations and cash flows for each of the periods
indicated, subject to changes resulting from audit and normal year-end
adjustments;
(ii) Year-End Financials: as soon as available and in any event
within 90 days after the end of each Fiscal Year, to the extent prepared
to comply with SEC requirements, a copy of Company's report on SEC Form
10-K filed with the SEC for such fiscal year, or, if no such Form 10-K
was filed by Company, the consolidated balance sheet of Company and its
Subsidiaries as at the end of such fiscal year and the related
consolidated statements of income, stockholders' equity and cash flows
of Company and its Subsidiaries for such Fiscal Year, in each case
setting forth the comparative figures for the previous Fiscal Year and
certified by independent certified public accountants of recognized
national standing selected by Company and satisfactory to Primary
Agents, whose opinion shall be unqualified as to the scope of audit or
as to the ability of Company and its Subsidiaries to continue as a going
concern and shall state that such consolidated financial statements
fairly present the consolidated financial position of Company and its
Subsidiaries as at the dates indicated and the results of their
operations and their cash flows for the periods indicated in conformity
with GAAP and that the audit by such accountants in connection with such
consolidated financial statements has been made in accordance with
generally accepted auditing standards;
(iii) Officers' and Compliance Certificates: together with each
delivery of financial statements of Company and its Subsidiaries
pursuant to subdivisions (i) and
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(ii) above, (a) an Officers' Certificate of Company stating that the
signers have reviewed the terms of this Agreement and have made, or
caused to be made under their supervision, a review in reasonable detail
of the transactions and condition of Company and its Subsidiaries during
the accounting period covered by such financial statements and that such
review has not disclosed the existence during or at the end of such
accounting period, and that the signers do not have knowledge of the
existence as at the date of such Officers' Certificate, of any condition
or event that constitutes an Event of Default or Potential Event of
Default, or, if any such condition or event existed or exists,
specifying the nature and period of existence thereof and what action
Company has taken, is taking and proposes to take with respect thereto;
and (b) a Compliance Certificate demonstrating in reasonable detail
compliance during and at the end of the applicable accounting periods
with the restrictions contained in subsections 9.1 and 9.2;
(iv) Pricing Level Determination Certificates: (a) together with
each delivery of financial statements of Company and its Subsidiaries
pursuant to subdivisions (i) and (ii) above, (b) within one Business Day
after any public release by S&P or Moodys lowering its credit rating on
any of Company's outstanding senior unsecured Indebtedness, and (c) at
such additional times as Company may elect, a Pricing Level
Determination Certificate.
(v) Accountants' Certification: together with each delivery of
consolidated financial statements of Company and its Subsidiaries
pursuant to subdivision (ii) above, a written statement by the
independent certified public accountants giving the report thereon (a)
stating that their audit has included a review of the terms of this
Agreement insofar as they relate to financial and accounting matters and
(b) stating whether, in connection with their audit examination, any
condition or event that constitutes an Event of Default or Potential
Event of Default has come to their attention and, if such a condition or
event has come to their attention, specifying the nature and period of
existence thereof; provided that such accountants shall not be liable by
reason of any failure to obtain knowledge of any such Event of Default
or Potential Event of Default that would not be disclosed in the course
of their audit;
(vi) SEC Filings and Earnings Releases: promptly upon their
becoming available, copies of (a) annual reports and proxy statements
sent or made available by Company to its security holders or by any
Subsidiary of Company to its security holders other than Company or
another Subsidiary of Company, (b) all reports and registration
statements of Company or its Subsidiaries filed with the SEC on SEC
Forms ▇-▇, ▇-▇, ▇-▇ and 8-K, (c) all press releases concerning Company's
earnings made available generally by Company or any of its Subsidiaries
to the public and (d) such other filings with the SEC or any other
regulatory agency having jurisdiction over the affairs of Company and
its Subsidiaries as any Primary Agent may reasonably request;
(vii) Events of Default, etc.: promptly upon any executive
officer, the vice president-treasurer or the vice president-corporate
accounting of any Borrower
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obtaining knowledge (a) of any condition or event that constitutes an
Event of Default or Potential Event of Default, or becoming aware that
any Lender has given any notice (other than to any Primary Agent) or
taken any other action with respect to a claimed Event of Default or
Potential Event of Default, or (b) of the occurrence of any event or
change that has caused or evidences, either in any case or in the
aggregate, a Material Adverse Effect, an Officers' Certificate
specifying the nature and period of existence of such condition, event
or change, or specifying the notice given or action taken by any such
Person and the nature of such claimed Event of Default, Potential Event
of Default, default, event or condition, and what action such Borrower
has taken, is taking and proposes to take with respect thereto;
(viii) Litigation or Other Proceedings: promptly upon any
executive officer of any Borrower obtaining knowledge of (X) the
institution of, or non-frivolous threat of, any action, suit, proceeding
(whether administrative, judicial or otherwise), governmental
investigation or arbitration against or affecting Company or any of its
Subsidiaries or any property of Company or any of its Subsidiaries
(collectively, "PROCEEDINGS") not previously disclosed in writing by any
Borrower to Lenders or (Y) any material development in any Proceeding,
that, in either case, has a reasonable possibility of giving rise to a
Material Adverse Effect, written notice thereof together with such other
information as may be reasonably available to Borrowers to enable
Lenders and their counsel to evaluate such matters; and
(ix) Other Information: with reasonable promptness, such other
information and data with respect to Company or any of its Subsidiaries
as from time to time may be reasonably requested by any Lender.
8.2 CORPORATE EXISTENCE, ETC.
Except as permitted under subsection 9.3, each Borrower shall,
and shall cause each of its Subsidiaries (other than Unrestricted Subsidiaries)
to, at all times preserve and keep in full force and effect its corporate
existence and all rights and franchises material to its business; provided that
nothing in this subsection 8.2 shall prevent the withdrawal by Company or any of
its Subsidiaries of qualification to do business as a foreign corporation in any
jurisdiction where such withdrawal would not reasonably be expected to have a
Material Adverse Effect.
8.3 PAYMENT OF TAXES AND CLAIMS.
Each Borrower shall, and shall cause each of its Subsidiaries
to, pay all material taxes, assessments and other governmental charges imposed
upon it or any of its properties or assets or in respect of any of its income,
businesses or franchises before any penalty accrues thereon, and all material
claims (including, without limitation, claims for labor, services, materials and
supplies) for sums that have become due and payable and that by law have or may
become a Lien upon any of its properties or assets, prior to the time when any
penalty or fine shall be incurred with respect thereto; provided that no such
charge or claim need be paid if being contested in good faith by appropriate
proceedings promptly
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instituted and diligently conducted and if such reserve or other appropriate
provision, if any, as shall be required in conformity with GAAP shall have been
made therefor.
8.4 MAINTENANCE OF PROPERTIES; INSURANCE.
Each Borrower shall, and shall cause each of its Subsidiaries
to, maintain or cause to be maintained in good repair, working order and
condition, ordinary wear and tear excepted, all material properties used or
useful in the business of such Borrower and its Subsidiaries and from time to
time will make or cause to be made all appropriate repairs, renewals and
replacements thereof. The Company will, and will cause each Subsidiary to,
maintain insurance (including self-insurance) in such amounts and covering such
risks as is customarily carried or maintained under similar circumstances by
corporations engaged in similar businesses.
8.5 INSPECTION.
Each Borrower shall, and shall cause each of its Subsidiaries
to, permit any authorized representatives designated by any Lender to visit and
inspect any of the properties of Company or any of its Subsidiaries, including
its and their financial and accounting records, and to make copies and take
extracts therefrom, and to discuss its and their affairs, finances and accounts
with its and their officers and independent public accountants (provided that
Company may, if it so chooses, be present at or participate in any such
discussion), all upon reasonable notice and at such reasonable times during
normal business hours and as often as may be reasonably requested.
8.6 COMPLIANCE WITH LAWS, ETC.
Each Borrower shall, and shall cause each of its Subsidiaries
to, comply with the requirements of all applicable laws, rules, regulations and
orders of any governmental authority, noncompliance with which would reasonably
be expected to result in a Material Adverse Effect.
SECTION 9. BORROWERS' NEGATIVE COVENANTS
Each Borrower covenants and agrees (which covenants and
agreements, in the case of Canada Safeway shall be limited to those covenants
and agreements that are within the control and discretion of Canada Safeway and
its Subsidiaries) that, so long as the Commitments hereunder shall remain in
effect and until payment in full of all of the Loans, Acceptances and other
Obligations and the cancellation or expiration of all Letters of Credit, unless
Requisite Lenders shall otherwise give prior written consent, such Borrower
shall perform, and shall cause each of its Subsidiaries to perform, all
covenants in this Section 9.
9.1 LIENS AND RELATED MATTERS.
A. PROHIBITION ON LIENS. Each Borrower shall not, and shall not permit
any of its Subsidiaries (other than Unrestricted Subsidiaries) to, directly or
indirectly, create, incur, assume or permit to exist any Lien on or with respect
to any property or asset of any kind
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(including any document or instrument in respect of goods or accounts
receivable, but excluding any of Company's Common Stock acquired with the
proceeds of Loans and not retired or canceled by Company (such Company's Common
Stock being "REPURCHASED STOCK")) of such Borrower or any such Subsidiary,
whether now owned or hereafter acquired, or any income or profits therefrom, or
file or permit the filing of, or permit to remain in effect, any financing
statement or other similar notice of any Lien with respect to any such property,
asset, income or profits under the Uniform Commercial Code of any State or under
any similar recording or notice statute, except:
(i) Permitted Encumbrances;
(ii) Liens existing as of the Closing Date securing Indebtedness
in an aggregate amount not exceeding the principal amount of the
Indebtedness or related commitment secured by such Liens on the Closing
Date;
(iii) Liens arising pursuant (a) to purchase money mortgages
securing Indebtedness representing the purchase price (or financing of
the purchase price within 180 days after the respective purchase) of
property or other assets acquired by Company or any of its Subsidiaries
(including, without limitation, Liens arising under Capital Leases) or
(b) mortgages or security agreements securing financing incurred to
refurbish, renovate or otherwise improve existing assets, provided, in
any event, that (1) any such Liens attach only to the assets so
purchased, refurbished, renovated or improved, and (2) the principal
amount of Indebtedness secured by any such Lien is neither greater than
100% nor less than 70% of the purchase price of the assets being
purchased or the fair market value of the assets being refurbished,
renovated or improved (determined in Company's reasonable judgment so as
to give effect to such refurbishment, renovation or improvement), as
applicable;
(iv) Liens existing on specific tangible assets at the time
acquired (including by acquisition, merger or consolidation) by Company
or any of its Subsidiaries or on assets of a Person at the time such
Person first becomes a Subsidiary of Company, provided that (a) any such
Liens were not created at the time of or in contemplation of the
acquisition of such assets or Person by Company or any of its
Subsidiaries, (b) in the case of any such acquisition of a Person other
than Casa Ley, any such Lien attached only to specific tangible assets
of such Person and not assets of such Person generally, and (c) in
Company's reasonable judgment the Indebtedness secured by any such Lien
does not exceed 100% of the fair market value of the asset to which such
Lien attaches, determined at the time of the acquisition of such asset
or the time at which such Person first becomes a Subsidiary, as the case
may be;
(v) Liens securing extensions, renewals or refinancings of any
Indebtedness secured by Liens permitted under any of the preceding
clauses (i), (ii), (iii) and (iv) of this subsection 9.1A provided that
the principal amount of any such Indebtedness (a) is not increased over
the principal amount outstanding at the time of any such extension or
renewal and (b) is not secured by Liens on any additional assets, except
that all or any portion of the aggregate amount of the Indebtedness
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described in such clauses (i), (ii), (iii) or (iv) may be extended,
renewed or refinanced in a single financing that does not increase the
aggregate principal amount of such Indebtedness but which may provide
for cross-collateralization with respect to property and assets
theretofore encumbered to secure all or any portion of the Indebtedness
being extended, renewed or refinanced;
(vi) Liens on assets substituted for assets theretofore
encumbered pursuant to Liens permitted pursuant to the preceding clauses
(i), (ii), (iii), (iv) and (v) of this subsection 9.1A to secure the
Indebtedness or obligations theretofore secured provided that the fair
market value of such assets at the time such Liens are created, as
reasonably determined by Company, shall not exceed the fair market value
of such previously encumbered assets for which such assets have been
substituted;
(vii) Liens on Company's and its Subsidiaries' accounts
receivable securing receivable securitizations and similar receivable
financing programs;
(viii) Liens on assets of Company's Subsidiaries securing
Indebtedness owed to Company or any of its Wholly-Owned Subsidiaries;
provided that the holder of such secured Indebtedness may not transfer
any such secured Indebtedness to any Person other than Company or a
Wholly-Owned Subsidiary of Company unless, upon giving effect to such
transfer, such Liens would be permitted under the provisions of this
subsection 9.1A (other than this clause (viii)); and
(ix) Other Liens securing Indebtedness in an aggregate amount
not to exceed 5% of the Book Value of the consolidated tangible assets
of Company and its Subsidiaries (other than Unrestricted Subsidiaries)
at any time.
B. NO RESTRICTIONS ON SUBSIDIARY DISTRIBUTIONS TO COMPANY OR OTHER
SUBSIDIARIES. Except as provided herein, each Borrower will not, and will not
permit any of its Subsidiaries (other than Unrestricted Subsidiaries) to, create
or otherwise cause or suffer to exist or become effective any consensual
encumbrance or restriction of any kind on the ability of any such Subsidiary to
(i) pay dividends or make any other distributions on any of such Subsidiary's
capital stock owned by Company, such Borrower or any other Subsidiary of
Company, (ii) repay or prepay any Indebtedness owed by such Subsidiary to
Company, such Borrower or any other Subsidiary of Company, (iii) make loans or
advances to Company, such Borrower or any other Subsidiary of Company, or (iv)
transfer any of its property or assets to Company, such Borrower or any other
Subsidiary of Company, except for such restrictions or encumbrances existing by
reason of (a) any restrictions existing under any of the Loan Documents or any
other agreements or contracts in effect on the Closing Date or any restrictions
under any Subordinated Indebtedness, (b) any restrictions with respect to a
Subsidiary that is not a Subsidiary on the Closing Date under any agreement in
existence at the time such Subsidiary becomes a Subsidiary of Company, (c) any
restrictions with respect to a Subsidiary of Company imposed pursuant to an
agreement which has been entered into for the sale or disposition of all or
substantially all of the capital stock or assets of such Subsidiary, (d) any
restrictions with respect to any Subsidiary of Company all or substantially all
of whose assets consist of property encumbered by Liens permitted under
subsection 9.1A, (e) restrictions imposed by applicable laws, (f) restrictions
under leases of,
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or mortgages and other agreements relating to Liens on, specified property or
assets limiting or prohibiting transfers of such property or assets (including,
without limitation, non-assignment clauses, due-on-sale clauses and clauses
prohibiting junior Liens), and (g) any restrictions existing under any agreement
that amends, refinances or replaces any agreement containing restrictions
permitted under the preceding clauses (a) through (f) provided that the terms
and conditions of any such agreement are no less favorable to Company than those
under the agreement so amended, refinanced or replaced.
9.2 FINANCIAL COVENANTS.
A. MINIMUM INTEREST COVERAGE RATIO. Borrowers shall not permit the ratio
of (i) Consolidated Adjusted EBITDA to (ii) Consolidated Interest Expense, in
each case for any four-fiscal quarter period ending as of the last day of any
fiscal quarter of Company, to be less than 2.00:1.00.
B. MAXIMUM LEVERAGE RATIO. Borrowers shall not permit the ratio of (i)
Consolidated Total Debt as of the last day of any fiscal quarter of Company to
(ii) Consolidated Adjusted EBITDA for the four-fiscal quarter period ending as
of the last day of any such fiscal quarter to exceed 3.50:1.00.
9.3 RESTRICTION ON FUNDAMENTAL CHANGES; MATERIAL ASSET SALES.
Each Borrower shall not, and shall not permit any of its
Subsidiaries (other than Unrestricted Subsidiaries) to, (A) liquidate, wind-up
or dissolve itself (or suffer any liquidation or dissolution), or (B) enter into
any transaction of merger or consolidation, or convey, sell, lease, sub-lease,
transfer or otherwise dispose of, in one transaction or a series of
transactions, all or any part of its business, property or fixed assets (but
excluding any Repurchased Stock), whether now owned or hereafter acquired,
except:
(i) any Subsidiary of Company or any other Person may be merged
or amalgamated with or into Company or any Wholly-Owned Subsidiary of
Company, or be liquidated, wound up or dissolved into, or all or any
part of its business, property or assets may be conveyed, sold, leased,
transferred or otherwise disposed of, in one transaction or a series of
transactions, to Company or any Wholly-Owned Subsidiary of Company;
provided that, (a) in the case of any such merger involving Company,
Company shall be the surviving corporation, (b) in the case of such a
merger involving Canada Safeway but not covered by clause (a), Canada
Safeway shall be the surviving corporation and shall, after giving
effect to such merger, be a Wholly-Owned Subsidiary of Company, and (c)
in the case of such a merger involving a Wholly-Owned Subsidiary and not
covered by either clause (a) or clause (b) above or permitted by clause
(ii) below, the surviving corporation shall be a Wholly-Owned Subsidiary
of Company; and
(ii) subject to the provisions of subsections 9.1, 9.4 and 9.6,
Company and its Subsidiaries may convey, lease, sublease, transfer, sell
or otherwise dispose, including by merger or amalgamation, of all or any
part of its business, property or fixed assets, whether now owned or
hereafter acquired in transactions that do not
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constitute Material Asset Sales; provided that if Canada Safeway would
cease to be a Wholly-Owned Subsidiary of Company as the result of such
conveyance, sale, transfer or other disposition, Borrowers shall have
taken such actions as are necessary to terminate and pay all amounts due
hereunder with respect to the Tranche A Canadian Commitments and the
Tranche B Canadian Commitments as to Canada Safeway prior to or at the
time such conveyance, sale, transfer or disposition becomes effective.
9.4 TRANSACTIONS WITH SHAREHOLDERS AND AFFILIATES.
Each Borrower shall not, and shall not permit any of its
Subsidiaries to, directly or indirectly, enter into or permit to exist any
transaction (including, without limitation, the purchase, sale, lease or
exchange of any property or the rendering of any service) with any holder of 5%
or more of any class of Company's Common Stock or with any Affiliate of Company
or of any such holder, on terms that are less favorable to Company or that
Subsidiary, as the case may be, than those that might be obtained at the time
from Persons who are not such a holder or Affiliate; provided that the foregoing
restriction shall not apply to (i) any transaction between Company and any of
its Wholly-Owned Subsidiaries (other than Unrestricted Subsidiaries) or between
any of Company's Wholly-Owned Subsidiaries and any other such Wholly-Owned
Subsidiary (other than an Unrestricted Subsidiary); (ii) reasonable and
customary fees paid to members of the Boards of Directors of Company and its
Subsidiaries; (iii) except as restricted by clause (i), transactions by
Unrestricted Subsidiaries; (iv) transactions approved by a majority of the
disinterested directors of Company's or the applicable Subsidiary's, as the case
may be, board of directors; (v) purchases from, sales of goods to, rendering of
services to or from, and other transactions with, ▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇ or ePOS'
Marketing Company on terms not materially less favorable to Company and its
Subsidiaries than generally available to Company and its Subsidiaries; (vi)
transactions with banks relating to cash or automated teller machines and cash
advance services; and (vii) loans to officers of Borrowers for business or
personal purposes in an aggregate outstanding principal amount not exceeding
$20,000,000 at any time.
9.5 CONDUCT OF BUSINESS.
From and after the Closing Date, each Borrower shall not, and
shall not permit any of its Subsidiaries (other than Unrestricted Subsidiaries)
to, fundamentally or substantively alter the character of its business from that
conducted by Company and its Subsidiaries taken as a whole, as of such date.
9.6 UNRESTRICTED SUBSIDIARIES.
Company may from time to time deliver to each Primary Agent an
Officers' Certificate designating one or more of its Subsidiaries (other than
Canada Safeway) as Unrestricted Subsidiaries; provided no Subsidiary shall be
designated as an Unrestricted Subsidiary if, upon giving effect to such
designation, the aggregate Book Value of all assets of all Unrestricted
Subsidiaries would exceed 15% of the Book Value of the consolidated assets of
Company and its Subsidiaries or if doing so would cause an Event of Default
under
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subsection 9.2. Company will not, and will not permit its Subsidiaries,
including any Unrestricted Subsidiary, to enter into any contract, agreement,
financing or other arrangement that would provide the creditors of any
Unrestricted Subsidiary (including Persons with contingent claims against any
Unrestricted Subsidiary) with any recourse to or against Company or any of its
Subsidiaries (other than Unrestricted Subsidiaries) or any of their respective
assets or revenues. Any Officers' Certificate designating any Unrestricted
Subsidiaries shall show, in reasonable detail, the Book Value of such
Subsidiary's assets and the consolidated assets of Company and its Subsidiaries,
shall provide proforma financial statements demonstrating Company will continue
to be in compliance with subsection 9.2 upon giving effect to such designation,
and shall certify that Company and its Subsidiaries are not parties to any
contract or agreement that would provide any such creditors of such Subsidiary
with recourse to or against Company or any of its Subsidiaries (other than
Unrestricted Subsidiaries) and that no such creditor of such Subsidiary would
have recourse to or against Company or any of its Subsidiaries (other than
Unrestricted Subsidiaries) as a matter of law. Any Person designated as an
Unrestricted Subsidiary in any such Officers' Certificate shall, without further
action, become an Unrestricted Subsidiary on the fifth Business Day after each
Primary Agent receives such Officers' Certificate.
Company shall not, and shall not permit any of its Subsidiaries
(other than Unrestricted Subsidiaries) to convey, transfer, sell or otherwise
dispose of any of its assets or properties to any Unrestricted Subsidiary if,
after giving effect thereto, the aggregate Book Value of all assets of all
Unrestricted Subsidiaries would exceed 15% of the Book Value of all assets of
Company and its Subsidiaries.
Company may from time to time deliver to each Primary Agent an
Officers' Certificate changing the designation of an Unrestricted Subsidiary so
that such Subsidiary ceases to be an Unrestricted Subsidiary, which change shall
be effective on the third Business Day after each Primary Agent receives such
Officers' Certificate. Upon effectiveness of such change, such formerly
Unrestricted Subsidiary shall be subject to the provisions of this Agreement
applicable to all other Subsidiaries of Company that are not Unrestricted
Subsidiaries and such formerly Unrestricted Subsidiary shall not maintain any
contract or condition that is not permitted hereunder for any Subsidiary of
Company that is not an Unrestricted Subsidiary regardless of when it first
entered into such contract or permitted such condition to exist.
SECTION 10. EVENTS OF DEFAULT
If any of the following conditions or events ("EVENTS OF
DEFAULT") shall occur and be continuing:
10.1 FAILURE TO MAKE PAYMENTS WHEN DUE.
Failure by any Borrower to pay any installment of principal of
any Loan when due, whether at stated maturity, by acceleration, by notice of
voluntary prepayment, by mandatory prepayment or otherwise; failure by Company
to pay when due any amount payable to an Issuing Lender in reimbursement of any
drawing under a Letter of Credit; failure by Canada Safeway to pay to the amount
of any Acceptance at maturity; or failure by
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any Borrower to pay any interest on any Loan or any fee or any other amount due
under this Agreement within five days after the date due; or
10.2 DEFAULT IN OTHER AGREEMENTS.
(i) Failure of Company or any of its Subsidiaries (other than
Unrestricted Subsidiaries) to pay when due any principal of or interest
on any items of Indebtedness (other than items of Indebtedness referred
to in subsection 10.1) with an aggregate principal amount of
$100,000,000 or more or beyond the end of any grace period provided
therefor; or (ii) breach or default by Company or any of its
Subsidiaries (other than Unrestricted Subsidiaries) with respect to any
other material term of any Indebtedness with an aggregate principal
amount of $100,000,000 or any loan agreement, mortgage, indenture or
other agreement relating to such Indebtedness, if the effect of such
breach or default is to cause, or to permit the holder or holders of
that Indebtedness (or a trustee on behalf of such holder or holders) to
cause, that Indebtedness to become or be declared due and payable prior
to its stated maturity (upon the giving or receiving of notice, lapse of
time, both, or otherwise); provided that in the event that any
non-payment described in clause (i) above or any breach or default
described in clause (ii) above is, prior to any acceleration of the
Obligations pursuant to this Section 10, cured or waived by the holders
of such Indebtedness without (a) any consent, waiver or other fee being
paid to such holders, (b) prepayments or theretofore unscheduled
reductions of such Indebtedness, (c) any additional collateral (or if
such Indebtedness was theretofore unsecured, any collateral) being
encumbered to secure such Indebtedness or any additional guaranties
thereof (or if such Indebtedness was not theretofore guarantied, any
guaranty thereof), (d) any amendment to or modification of the terms of
such Indebtedness, except any such amendment or modification as may be
necessary to relax the provisions thereof to cure such non-payment,
breach or default, then such non-payment, breach or default shall not
constitute an Event of Default hereunder; or
10.3 BREACH OF CERTAIN COVENANTS.
Failure of any Borrower to perform or comply with any term or
condition contained in subsection 2.5, 8.1(vii) or Section 9 of this Agreement
or the failure of any Borrower to maintain its corporate existence to the extent
required under subsection 8.2 of this Agreement; or
10.4 BREACH OF WARRANTY.
Any written representation, warranty, certification or other
statement made by Company or any of its Subsidiaries in any Loan Document or in
any written statement or certificate at any time given by Company or any of its
Subsidiaries (or deemed to be given in connection with any borrowing hereunder)
pursuant hereto or thereto or in connection herewith or therewith shall be false
in any material respect on the date as of which made; or
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10.5 OTHER DEFAULTS UNDER LOAN DOCUMENTS.
Any Borrower shall default in the performance of or compliance
with any term contained in this Agreement or any of the other Loan Documents,
other than any such term referred to in any other subsection of this Section 10,
and such default shall not have been remedied or waived within 30 days after
receipt by such Borrower of notice from any Primary Agent or any Lender of such
default; or
10.6 INVOLUNTARY BANKRUPTCY; APPOINTMENT OF RECEIVER, ETC.
(i) A court having jurisdiction in the premises shall enter a
decree or order for relief in respect of any Borrower or any Material
Subsidiary in an involuntary case under any Insolvency Laws which decree
or order is not stayed; or any other similar relief shall be granted
under any applicable Insolvency Laws; or (ii) an involuntary case shall
be commenced against any Borrower or any Material Subsidiary under any
Insolvency Laws; or a decree or order of a court having jurisdiction in
the premises for the appointment of a receiver, liquidator,
sequestrator, trustee, custodian or other officer having similar powers
over any Borrower or any Material Subsidiary, or over all or a
substantial part of its property, shall have been entered; or there
shall have occurred the involuntary appointment of an interim receiver,
trustee or other custodian of any Borrower or any Material Subsidiary
for all or a substantial part of its property; or a warrant of
attachment, execution or similar process shall have been issued against
any substantial part of the property of any Borrower or any Material
Subsidiary, and any such event described in this clause (ii) shall
continue for 60 days unless dismissed, bonded or discharged; or
10.7 VOLUNTARY BANKRUPTCY; APPOINTMENT OF RECEIVER, ETC.
(i) Any Borrower or any Material Subsidiary shall have an order
for relief entered with respect to it or commence a voluntary case under
any Insolvency Laws, or shall consent to the entry of an order for
relief in an involuntary case, or to the conversion of an involuntary
case to a voluntary case, under any such laws, or shall consent to the
appointment of or taking possession by a receiver, trustee or other
custodian for all or a substantial part of its property; or any Borrower
or any Material Subsidiary shall make any assignment for the benefit of
creditors; or (ii) any Borrower or any Material Subsidiary shall be
unable, or shall fail generally, or shall admit in writing its
inability, to pay its debts as such debts become due; or the Board of
Directors of any Borrower or any Material Subsidiary (or any committee
thereof) shall adopt any resolution or otherwise authorize any action to
approve any of the actions referred to in clause (i) above or this
clause (ii); or
10.8 JUDGMENTS AND ATTACHMENTS.
Any money judgment, writ or warrant of attachment or similar
process involving in the aggregate at any time an amount in excess of
$100,000,000 (not adequately covered by insurance as to which a solvent and
unaffiliated insurance company has acknowledged coverage) shall be entered or
filed against Company or any of its Subsidiaries
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other than an Unrestricted Subsidiary or any of their respective assets and
shall remain undischarged, unvacated, unbonded or unstayed for a period of 60
days (or in any event later than five days prior to the date of any proposed
sale thereunder); or
10.9 DISSOLUTION.
Any order, judgment or decree shall be entered against any
Borrower or any Material Subsidiaries decreeing the dissolution or split up of
any Borrower or that Material Subsidiary (which dissolution, in the case of
Canada Safeway or a Material Subsidiary is not permitted under subsection 9.3)
and such order shall remain undischarged or unstayed for a period in excess of
30 days; or
10.10 EMPLOYEE BENEFIT PLANS.
There shall occur any ERISA Event which individually results in
or might reasonably be expected to result in liability of Company or any of its
ERISA Affiliates in excess of $100,000,000 or, if taken together with all other
ERISA Events results in or might reasonably be expected to result in an
aggregate liability of Company or any of its ERISA Affiliates in excess of
$100,000,000 during the term of this Agreement; or there shall exist an amount
of unfunded benefit liabilities (as defined in Section 4001(a)(18) of ERISA),
individually or in the aggregate for all Pension Plans (excluding for purposes
of such computation any Pension Plans with respect to which assets exceed
benefit liabilities), which exceeds $100,000,000; or
10.11 INVALIDITY OF SUBSIDIARY BORROWER GUARANTY.
The Subsidiary Borrower Guaranty for any reason, other than the
satisfaction in full of all the "Subsidiary Borrower Obligations" as defined
therein or any written release by the Lenders required under the provisions of
subsection 11.6, ceases to be in full force and effect or is declared to be null
and void, or Company denies that it has any further liability thereunder, or
gives notice to such effect; or
10.12 CHANGE IN CONTROL.
Any Person or any two or more Persons (in either case, other
than KKR, KKR Associates, so long as KKR Associates remains under the control of
KKR, or a Person controlled by KKR or KKR Associates) acting in concert shall
have acquired beneficial ownership (within the meaning of Rule 13d-3 of the
Securities and Exchange Commission under the Exchange Act), directly or
indirectly, of capital stock of Company (or other securities at the time
convertible into capital stock) representing 35% or more of the combined voting
power of all capital stock of Company entitled to vote in the election of
directors, other than capital stock having such power only by reason of the
happening of a contingency:
THEN (i) upon the occurrence of any Event of Default described in subsection
10.6 or 10.7, each of (a) the unpaid principal amount of and accrued interest on
the Loans, (b) an amount
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equal to the maximum amount that may at any time be drawn under all Letters of
Credit then outstanding (whether or not any beneficiary under any such Letter of
Credit shall have presented, or shall be entitled at such time to present, the
drafts or other documents or certificates required to draw under such Letter of
Credit), (c) an amount equal to the Face Amount of all unmatured Acceptances,
and (d) all other Obligations shall automatically become immediately due and
payable, without presentment, demand, protest or other requirements of any kind,
all of which are hereby expressly waived by each Borrower and the obligation of
each Lender to make any Loan or create or purchase any Acceptance, the
obligation of Deutsche Bank to issue any Letter of Credit and the right of any
Lender to issue any Letter of Credit hereunder shall thereupon terminate, and
(ii) upon the occurrence and during the continuation of any other Event of
Default, Co-Arrangers shall, upon the written request or with the written
consent of Requisite Lenders, by written notice to Company, declare all or any
portion of the amounts described in clauses (a) through (d) above to be, and the
same shall forthwith become, immediately due and payable, and the obligation of
each Lender to make any Loan or create or purchase any Acceptance, the
obligation of Deutsche Bank to issue any Letter of Credit and the right of any
Lender to issue any Letter of Credit hereunder shall thereupon terminate;
provided that the foregoing shall not affect in any way the obligations of
Lenders under subsection 2.1A(v) or 3.3C(i).
Any amounts described in clauses (b) and (c) above shall be paid
to Administrative Agent and shall be held by Administrative Agent in a
collateral account over which Administrative Agent shall have sole dominion and
control upon terms that are customary to cash collateral accounts maintained
with Administrative Agent, as cash collateral for the obligation of Company to
reimburse drawings under Letters of Credit and the obligations of Canada Safeway
to pay the amount of such Acceptances at maturity, and upon any drawing under
such a Letter of Credit or the maturity of such an Acceptance, Administrative
Agent shall apply such amounts held pursuant to the terms of the collateral
account agreement to the payment thereof. At the time of any payment of such
amounts, each Borrower agrees to enter into a collateral account agreement in
form and substance satisfactory to Administrative Agent.
Notwithstanding anything contained in the second preceding
paragraph, if at any time within 60 days after an acceleration of the Loans and
Acceptances pursuant to such paragraph Borrowers shall pay all arrears of
interest and all payments on account of principal which shall have become due
otherwise than as a result of such acceleration (with interest on principal and,
to the extent permitted by law, on overdue interest, at the rates specified in
this Agreement) and all Events of Default and Potential Events of Default (other
than non-payment of the principal of and accrued interest on the Loans, in each
case which is due and payable solely by virtue of acceleration) shall be
remedied or waived pursuant to subsection 13.6, then Requisite Lenders, by
written notice to Borrowers, may at their option rescind and annul such
acceleration and its consequences; but such action shall not affect any
subsequent Event of Default or Potential Event of Default or impair any right
consequent thereon. The provisions of this paragraph are intended merely to bind
Lenders to a decision which may be made at the election of Requisite Lenders and
are not intended to benefit Borrowers and do not grant Borrowers the right to
require Lenders to rescind or annul any acceleration hereunder, even if the
conditions set forth herein are met.
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SECTION 11. AGENTS
11.1 APPOINTMENT.
Scotiabank is hereby appointed Administrative Agent and a
Primary Agent and Deutsche Bank, Chase and each Co-Arranger are each hereby
appointed a Primary Agent for the purposes of this Agreement and the other Loan
Documents and each Lender hereby authorizes each Primary Agent to act as its
agent in accordance with the terms of this Agreement and the other Loan
Documents. Each Primary Agent agrees to act upon the express conditions
contained in this Agreement and the other Loan Documents, as applicable. The
provisions of this Section 11 are solely for the benefit of Primary Agents and
Lenders and Company shall have no rights as a third party beneficiary of any of
the provisions thereof. In performing its functions and duties under this
Agreement, each Primary Agent shall act solely as an agent of Lenders and does
not assume and shall not be deemed to have assumed any obligation towards or
relationship of agency or trust with or for Company or any of its Subsidiaries.
The Borrowers and the Lenders hereby acknowledge and agree that
Documentation Agent, the Co-Syndication Agents and the Agents are neither agents
or fiduciaries of any Borrower or any Lender, and such Persons in such
capacities shall have no rights, duties or responsibilities hereunder or under
the other Loan Documents except those applicable to Lenders generally and except
as set forth in subsection 13.1.
11.2 POWERS; GENERAL IMMUNITY.
A. DUTIES SPECIFIED. Each Lender irrevocably authorizes each Primary
Agent to take such action on such Lender's behalf and to exercise such powers
hereunder and under the other Loan Documents as are specifically delegated to
such Primary Agent by the terms hereof and thereof, together with such powers as
are reasonably incidental thereto. Each Primary Agent shall have only those
duties and responsibilities that are expressly specified for such Primary Agent
in this Agreement and the other Loan Documents and it may perform such duties by
or through its agents or employees. Neither Primary Agent shall have, by reason
of this Agreement or any of the other Loan Documents, a fiduciary relationship
in respect of any Lender; and nothing in this Agreement or any of the other Loan
Documents, expressed or implied, is intended to or shall be so construed as to
impose upon any Primary Agent any obligations in respect of this Agreement or
any of the other Loan Documents except as expressly set forth herein or therein.
B. NO RESPONSIBILITY FOR CERTAIN MATTERS. No Primary Agent shall be
responsible to any Lender for the execution, effectiveness, genuineness,
validity, enforceability, collectibility or sufficiency of this Agreement or any
other Loan Document or for any representations, warranties, recitals or
statements made herein or therein or made in any written or oral statements or
in any financial or other statements, instruments, reports or certificates or
any other documents furnished or made by any Primary Agent to Lenders or by or
on behalf of Company to any Primary Agent or any Lender in connection with the
Loan Documents and the transactions contemplated thereby or for the financial
condition or business affairs of Company or any other Person liable for the
payment of any Obligations,
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nor shall any Primary Agent be required to ascertain or inquire as to the
performance or observance of any of the terms, conditions (other than those set
forth in subsection 6.1), provisions, covenants or agreements contained in any
of the Loan Documents or as to the use of the proceeds of the Loans or the
Acceptances or the use of the Letters of Credit or as to the existence or
possible existence of any Event of Default or Potential Event of Default.
C. EXCULPATORY PROVISIONS. No Primary Agent nor its officers, directors,
employees or agents shall be liable to Lenders for any action taken or omitted
by such Primary Agent under or in connection with any of the Loan Documents
except to the extent caused by such Primary Agent's gross negligence or willful
misconduct. If any Primary Agent shall request instructions from Lenders with
respect to any act or action (including the failure to take an action) in
connection with this Agreement or any of the other Loan Documents, such Primary
Agent shall be entitled to refrain from such act or taking such action unless
and until such Primary Agent shall have received instructions from Requisite
Lenders or all Lenders, as applicable. Without prejudice to the generality of
the foregoing, (i) each Primary Agent shall be entitled to rely, and shall be
fully protected in relying, upon any communication, instrument or document
believed by such Primary Agent, in good faith, to be genuine and correct and to
have been signed or sent by the proper person or persons, and shall be entitled
to rely and shall be protected in relying on opinions and judgments of attorneys
(who may be attorneys for Company and its Subsidiaries), accountants, experts
and other professional advisors selected by it; and (ii) no Lender shall have
any right of action whatsoever against either Primary Agent as a result of such
Primary Agent acting or (where so instructed) refraining from acting under this
Agreement or any of the other Loan Documents in accordance with the instructions
of Requisite Lenders or all Lenders, as applicable. Each Primary Agent shall be
entitled to refrain from exercising any power, discretion or authority vested in
it under this Agreement or any of the other Loan Documents unless and until it
has obtained the instructions of Requisite Lenders or all Lenders, as
applicable.
D. PRIMARY AGENTS ENTITLED TO ACT AS LENDER. The agency hereby created
shall in no way impair or affect any of the rights and powers of, or impose any
duties or obligations upon, any Primary Agent in its individual capacity as a
Lender hereunder. With respect to its participation in the Loans, the
Acceptances and the Letters of Credit, each Primary Agent shall have the same
rights and powers hereunder as any other Lender and may exercise the same as
though it were not performing the duties and functions delegated to it
hereunder, and the term "Lender" or "Lenders" or any similar term shall, unless
the context clearly otherwise indicates, include each Primary Agent in its
individual capacity. Each Primary Agent and its Affiliates may accept deposits
from, lend money to and generally engage in any kind of banking, trust,
financial advisory or other business with Company or any of its Affiliates as if
it were not performing the duties specified herein, and may accept fees and
other consideration from Company and its Subsidiaries for services in connection
with this Agreement and otherwise without having to account for the same to
Lenders.
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11.3 REPRESENTATIONS AND WARRANTIES; NO RESPONSIBILITY FOR APPRAISAL OF
CREDITWORTHINESS.
Each Lender represents and warrants that it has made its own
independent investigation of the financial condition and affairs of Company and
its Subsidiaries in connection with the making of the Loans, the creation of
Acceptances and the issuance of Letters of Credit hereunder and that it has made
and shall continue to make its own appraisal of the creditworthiness of Company
and its Subsidiaries. No Primary Agent shall have any duty or responsibility,
either initially or on a continuing basis, to make any such investigation or any
such appraisal on behalf of Lenders or to provide any Lender with any credit or
other information with respect thereto, whether coming into its possession
before the making of the Loans or at any time or times thereafter (except such
information as is, pursuant to the terms of this Agreement, required to be
circulated by such Primary Agent, to Lenders), and no Primary Agent shall have
any responsibility with respect to the accuracy of or the completeness of any
information provided to Lenders.
11.4 RIGHT TO INDEMNITY.
Each Lender, in proportion to its Aggregate Pro Rata Share,
severally agrees to indemnify each Primary Agent, to the extent that such
Primary Agent shall not have been reimbursed by Borrowers, for and against any
and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses (including, but not limited to reasonable
counsel fees and disbursements) or disbursements of any kind or nature
whatsoever which may be imposed on, incurred by or asserted against such Primary
Agent, in performing its duties hereunder or under the other Loan Documents or
otherwise in its capacity as Administrative Agent or a Primary Agent, in any way
relating to or arising out of this Agreement or the other Loan Documents, as the
case may be; provided that no Lender shall be liable to such Primary Agent for
any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements resulting from the
gross negligence or willful misconduct of such Primary Agent. If any indemnity
furnished to any Primary Agent for any purpose shall, in the opinion of such
Primary Agent be insufficient or become impaired, such Primary Agent may call
for additional indemnity and cease, or not commence, to do the acts indemnified
against until such additional indemnity is furnished.
11.5 SUCCESSOR AGENT.
Any Primary Agent may resign at any time by giving 30 days'
prior written notice thereof to Lenders and Company, and any Primary Agent may
be removed at any time with or without cause by an instrument or concurrent
instruments in writing delivered to Company and Primary Agents and signed by
Requisite Lenders. Upon any such notice of resignation or any such removal,
Requisite Lenders shall have the right, upon five Business Days' notice to
Company, to appoint a successor Primary Agent, as applicable; provided that if
such successor shall not be an Agent, such appointment shall be subject to
Company's consent, which consent shall not be unreasonably withheld; provided,
further, that if Requisite Lenders have not acted to appoint a successor Primary
Agent, as applicable, within 30 days after any such notice of resignation or any
such removal, then the remaining Primary
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Agent or Primary Agents shall appoint such a successor (subject to Company's
consent to such appointment, such consent not to be unreasonably withheld), and
in the event there is no remaining Primary Agent, Company shall appoint such a
successor. Upon the acceptance of any appointment as Administrative Agent or
other Primary Agent hereunder by a successor Administrative Agent or other
Primary Agent, as applicable, such successor Administrative Agent or other
Primary Agent shall thereupon succeed to and become vested with all the rights,
powers, privileges and duties of the retiring or removed Administrative Agent or
other Primary Agent, as applicable, and the retiring or removed Administrative
Agent or other Primary Agent shall be discharged from its duties and obligations
under this Agreement. After any retiring or removed Administrative Agent's or
other Primary Agent's resignation or removal hereunder as Administrative Agent
or such other Primary Agent, as applicable, the provisions of this Section 11
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Administrative Agent or such other Primary Agent, as applicable,
under this Agreement.
11.6 COLLATERAL ACCOUNT AGREEMENT; SUBSIDIARY BORROWER GUARANTY.
Each Lender hereby further authorizes Administrative Agent, on
behalf of and for the benefit of Lenders, to accept the Subsidiary Borrower
Guaranty and, as secured party on behalf of and for the benefit of Agents and
Lenders, to enter into a collateral account agreement as contemplated by Section
10 of this Agreement, and agrees to be bound by the terms of any such collateral
account agreement. Anything contained in any of the Loan Documents to the
contrary notwithstanding, each Lender agrees that no Lender shall have any right
individually to realize upon any of the collateral under any such collateral
account agreement or to enforce the Subsidiary Borrower Guaranty, it being
understood and agreed that all rights and remedies under the Subsidiary Borrower
Guaranty and any such collateral account agreement may be exercised solely by
Administrative Agent for the benefit of Agents and Lenders in accordance with
the terms thereof. Administrative Agent will not release Company from its
obligations under the Subsidiary Borrower Guaranty and will not release any
collateral under any such collateral account agreement without the prior written
consent of all Lenders.
SECTION 12. COMPANY GUARANTY OF CERTAIN CREDIT FACILITIES
Company hereby unconditionally guaranties the due and punctual
payment of all obligations of Canada Safeway arising under this Agreement, any
Notes, any Acceptances and any other Loan Documents, in each case when due,
whether by required prepayment, declaration, demand or otherwise (including
amounts which would become due but for the operation of the automatic stay under
Section 362(a) of the Bankruptcy Code, 11 U.S.C. Section 362(a) or operation of
any stay under applicable Canadian law) (the "SUBSIDIARY BORROWER OBLIGATIONS"),
and agrees to pay any and all costs and expenses (including fees and
disbursements of counsel and reasonable allocated costs of internal counsel)
incurred by any Primary Agent or Lender in enforcing any rights under this
guaranty. For purposes of this Section 12, the obligations of Company under this
Section 12, as they may be amended, modified or supplemented from time to time,
are referred to as its "SUBSIDIARY BORROWER GUARANTY."
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Company agrees that the Subsidiary Borrower Obligations may be
extended or renewed, in whole or in part, without notice or further assent from
it, and that it will remain bound upon this Subsidiary Borrower Guaranty
notwithstanding any extension, renewal or other alteration of any such
Subsidiary Borrower Obligation or any other Obligation.
Company waives presentation of, demand of and protest of any
Subsidiary Borrower Obligation and also waives notice of protest for nonpayment.
The obligations of Company under this Subsidiary Borrower Guaranty shall be
valid and enforceable and shall not be subject to any limitation, impairment, or
discharge for any reason (other than payment in full of the Subsidiary Borrower
Obligations) and Company hereby irrevocably waives any defenses it may now or
hereafter have in any way relating thereto, including, without limitation, the
occurrence of any of the following, whether or not Company shall have had notice
or knowledge of any of them:
(a) the failure of any Domestic Lender, Canadian Lender
or any other Lender to assert any claim or demand or to enforce
any right or remedy against Canada Safeway, Company or any other
Person under the provisions of this Agreement, this Subsidiary
Borrower Guaranty or any other Loan Document,
(b) any extension or renewal of any provision of any
thereof,
(c) any rescission, waiver, amendment or modification of
any of the terms or provisions of this Agreement or any other
Loan Document (other than this Section 12, it being agreed and
understood that any waiver, amendment or modification of this
Section 12 shall be limited exactly as written and shall not,
except as expressly written, affect the obligations of Company
under this Subsidiary Borrower Guaranty),
(d) the failure to perfect any security interest in, or
the release of, any of the security held by any Primary Agent, a
Domestic Lender or any Canadian Lender for the Subsidiary
Borrower Obligations hereby guarantied or any of them or held by
any Primary Agent, a Lender or any other Person for any of the
Obligations or any of them, or
(e) the failure of any Lender to exercise any right or
remedy against any other guarantor of the Subsidiary Borrower
Obligations or the Obligations.
Company further agrees that this Subsidiary Borrower Guaranty
constitutes a guaranty of payment when due and not of collection and waives any
right to require that any resort be had by any Primary Agent or Lender to any of
the security held for payment of the Subsidiary Borrower Obligations or to any
balance of any deposit account or credit on the books of any Primary Agent or
Lender in favor of Company, Canada Safeway or any other Person.
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The obligations of Company under this Subsidiary Borrower
Guaranty shall not be subject to any reduction, limitation, impairment or
termination for any reason, including, without limitation, any claim of waiver,
release, surrender, alteration or compromise of any of the Subsidiary Borrower
Obligations, and shall not be subject to any defense or set-off, counterclaim,
recoupment or termination whatsoever by reason of the invalidity, illegality or
unenforceability of any of the Subsidiary Borrower Obligations, discharge of
Canada Safeway from any of the Subsidiary Borrower Obligations in a bankruptcy
or similar proceeding, or otherwise. Without limiting the generality of the
foregoing, the obligations of Company under this Subsidiary Borrower Guaranty
shall not be discharged or impaired or otherwise affected by the failure of any
Primary Agent or Lender to assert any claim or demand or to enforce any remedy
under this Agreement or any document or instrument executed by Canada Safeway in
connection therewith, by any waiver or modification of any thereof, by any
default, failure or delay, willful or otherwise, in the performance of the
Subsidiary Borrower Obligations, or by any other act or thing or omission or
delay to do any other act or thing which may or might in any manner or to any
extent vary the risk of Company or which would otherwise operate as a discharge
of Company as a matter of law or equity.
Company further agrees that this Subsidiary Borrower Guaranty
shall continue to be effective or be reinstated, as the case may be, if at any
time payment, or any part thereof, of principal of or interest on any Subsidiary
Borrower Obligation is rescinded or must otherwise be restored by any Primary
Agent or Lender upon the bankruptcy or reorganization of Canada Safeway, any
other Person or otherwise.
Company further agrees, in furtherance of the foregoing and not
in limitation of any other right which any Primary Agent or Lender may have at
law or in equity against Company by virtue hereof, upon the failure of Canada
Safeway to pay any of the Subsidiary Borrower Obligations when and as the same
shall become due, whether by required prepayment, declaration, demand or
otherwise (including amounts which would become due but for the operation of the
automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. Section
362(a) or operation of any stay under applicable Canadian law), Company will
forthwith pay, or cause to be paid, in cash, to Administrative Agent for the
ratable benefit of Lenders an amount equal to the sum of the unpaid principal
amount of such Subsidiary Borrower Obligations then due as aforesaid, accrued
and unpaid interest on such Subsidiary Borrower Obligations (including, without
limitation, interest which, but for the filing of a petition in bankruptcy with
respect to Company, would accrue on such Subsidiary Borrower Obligations) and
all other Subsidiary Borrower Obligations then owed to Primary Agents and
Lenders as aforesaid.
Upon payment by Company of any sum to the Administrative Agent
for the ratable benefit of Primary Agents and Lenders as provided above so long
as any of the Subsidiary Borrower Obligations shall remain outstanding
hereunder, all rights of Company against Canada Safeway arising as a result
thereof, by way of right of subrogation or otherwise, shall in all respects be
subordinate and junior in right of payment to the prior indefeasible payment in
full of all the Subsidiary Borrower Obligations to Primary Agents and Lenders.
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This Subsidiary Borrower Guaranty shall be binding upon Company
and its successors and assigns and shall inure to the benefit of the successors
and assigns of Primary Agents and Lenders and, in the event of any transfer and
assignment of rights by a Primary Agent or Lender, the rights and privileges
herein conferred upon such Primary Agent or Lender shall automatically extend to
and be vested in such transferee or assignee, all subject to the terms and
conditions hereof.
Notwithstanding any provisions of subsection 5.1 to the
contrary, all sums payable by Company under this Subsidiary Borrower Guaranty
shall be paid free and clear of and (except to the extent required by law)
without any deduction or withholding on account of any Tax (other than any
Excluded Tax) imposed, levied, collected, withheld or assessed by or within the
United States of America or any political subdivision in or of the United States
of America or any other jurisdiction from or to which a payment is made by or on
behalf of Company or by any federation or organization of which the United
States of America or any such jurisdiction is a member at the time of payment.
If Company is required by law to make any deduction or withholding on account of
any such Tax from any sum paid or payable by Company to any Primary Agent or any
Lender hereunder with respect to any of the Subsidiary Borrower Obligations and
such deduction or withholding would not have been required if Canada Safeway
were to have paid such Subsidiary Borrower Obligation, Company agrees, as a
separate obligation, to pay such additional amounts to such Primary Agent or
Lender, as the case may be, so that the sum payable by Company in respect of
which the relevant deduction, withholding or payment is required shall be
increased to the extent necessary to ensure that, after the making of that
deduction, withholding or payment, such Primary Agent or Lender, as the case may
be, receives on the due date of such payment on an after-tax basis a net sum
equal to what it would have received had no such deduction, withholding or
payment been required or made.
SECTION 13. MISCELLANEOUS
13.1 ASSIGNMENTS AND PARTICIPATIONS IN LOANS AND LETTERS OF CREDIT.
A. GENERAL. Subject to the provisions of this subsection 13.1, each
Lender shall have the right at any time to (i) sell, assign or transfer to any
Eligible Assignee, or (ii) sell participations to any Person in, all or any part
of its Commitments or any Loan or Loans made by it or its Letters of Credit or
participations therein or any other interest herein or in any other Obligations
owed to it; provided that no such sale, assignment, transfer or participation
shall, without the consent of Company, require a Borrower to file a registration
statement with the SEC or apply to qualify such sale, assignment, transfer or
participation under the securities laws of any state; provided, further that no
such sale, assignment or transfer described in clause (i) above shall be
effective unless and until an Assignment Agreement effecting such sale,
assignment or transfer shall have been accepted by Administrative Agent and
recorded in the Register as provided in subsection 13.1B(ii); provided, further
that no such sale, assignment, transfer or participation of any Letter of Credit
or any participation therein may be made separately from a sale, assignment,
transfer or participation of a corresponding interest in the Tranche A Domestic
Commitment and the Tranche A Domestic Loans (other than Tranche A Domestic Swing
Line Loans and Negotiated Rate Loans) of the Lender effecting such sale,
assignment, transfer or
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participation; and provided, further that no such sale, assignment, transfer or
participation of any Tranche A Acceptance or related Draft or any participation
therein may be made separately from a sale, assignment, transfer or
participation of a corresponding interest in the Tranche A Canadian Commitment
and the Tranche A Canadian Loans (other than Tranche A Canadian Swing Line Loans
of the Lender effecting such sale, assignment, transfer or participation as
permitted herein) or of any Tranche B Acceptance or related Draft or any
participation therein may be made separately from a sale, assignment, transfer
or participation of a corresponding interest in the Tranche B Canadian
Commitment and the Tranche B Canadian Loans. Except as otherwise provided in
this subsection 13.1, no Lender shall, as between Borrowers and such Lender, be
relieved of any of its obligations hereunder as a result of any sale, assignment
or transfer of, or any granting of participations in, all or any part of its
Commitments or the Loans, the Letters of Credit or participations therein, or
the other Obligations owed to such Lender.
B. ASSIGNMENTS.
(i) Amounts and Terms of Assignments. Each Commitment, Loan,
Acceptance, Letter of Credit or participation therein, or other
Obligation may (a) be assigned in any amount to an Eligible Assignee
that is another Lender, or to an Eligible Assignee that is an Affiliate
of the assigning Lender or another Lender, with the giving of notice to
Company and each Primary Agent or (b) be assigned in an aggregate amount
of not less than $10,000,000 (or such lesser amount as shall constitute
the Aggregate Commitment, Loans, Letters of Credit and participations
therein, Acceptances and other Obligations of the assigning Lender) to
any other Eligible Assignee upon notice to the Administrative Agent and
with the consent of Co-Arrangers and, so long as no Event of Default
under subsection 10.1, 10.6 or 10.7 has occurred and is continuing,
Company (which consent of Company and Co-Arrangers shall not be
unreasonably withheld); provided that any such assignment in accordance
with either clause (a) or (b) shall effect an assignment of either (1) a
proportionate share of the Tranche A Domestic Commitment or Tranche B
Domestic Commitment of the assigning Lender and all corresponding Loans
and interests in Letters of Credit (in the case of the Tranche A
Domestic Commitment) of the assigning Lender or (2) except as set forth
in the next paragraph of this subsection, a proportionate share of the
Tranche A Canadian Commitment or Tranche B Canadian Commitment of the
assigning Lender and all corresponding Loans and Acceptances of the
assigning Lender. To the extent of any such assignment in accordance
with the preceding clause (a) or (b) of this subsection 13.1B, the
assigning Lender shall be relieved of its obligations with respect to
its Commitments, Loans, Letters of Credit or participations therein,
Acceptances or other Obligations or the portion thereof so assigned.
Notwithstanding the provisions of the preceding paragraph of this
subsection, any Canadian Lender that is not resident in the United
States of America for withholding tax purposes shall have the option to
assign only its obligation to fund Canadian/U.S. Loans from time to time
upon its receipt of a Notice of Borrowing relating thereto, together
with all of its rights to receive payments of principal of and
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interest on such Loans (including any such Canadian/U.S. Loans
theretofore funded and outstanding), to a U.S. Affiliate of such
Canadian Lender (such an assignment, a "CANADIAN/U.S. FUNDING
ASSIGNMENT"); provided no such assignment shall relieve such Canadian
Lender of its obligation to fund Loans (including Canadian/U.S. Loans)
under subsection 2.1A(ii) or under subsection 2.1A(iv). Any such
assignment shall obligate the U.S. Affiliate of such Canadian Lender to
make such loans on behalf of such Canadian Lender, and Company shall be
an express and intended third-party beneficiary of any such assignment
and shall have such rights and remedies against a U.S. Affiliate of any
Canadian Lender with respect to the funding of any Canadian/U.S. Loan as
Company would have against such Canadian Lender with respect to such
Loan. If any Canadian Lender proposing to make an assignment of its
Tranche A Canadian Commitments, Tranche A Canadian Loans and Tranche A
Acceptances or its Tranche B Commitments, Tranche B Canadian Loans and
Tranche B Acceptances in accordance with the first paragraph of this
subsection 13.1B, has theretofore entered into a Canadian/U.S. Funding
Assignment with its U.S. Affiliate, such Lender and its U.S. Affiliate
shall jointly enter into such proposed assignment so that the conditions
set forth in clause (b) of the first paragraph of this subsection 13.1B
are satisfied as if such Canadian Lender and its U.S. Affiliate were a
single Lender.
The parties to each such assignment shall execute and deliver to
Administrative Agent, for its acceptance and recording in the Register,
an Assignment Agreement, together with a processing and recordation fee
of $3,000, and in each case with such forms, certificates or other
evidence, if any, with respect to United States federal income tax
withholding matters as the assignee under such Assignment Agreement may
be required to deliver to Administrative Agent pursuant to subsection
5.1B(iii)(a); provided that no such processing or recordation fee shall
be payable in connection with any Canadian/U.S. Funding Assignment, any
assignment described in clause (a) of subsection 13.1B(i) or any
assignment undertaken pursuant to subsection 5.3. Upon such execution,
delivery, and acceptance and recordation, from and after the effective
date specified in such Assignment Agreement, (y) the assignee thereunder
shall be a party hereto and, to the extent that rights and obligations
hereunder have been assigned to it pursuant to such Assignment
Agreement, shall have the rights and obligations of a Lender hereunder
and (z) except as set forth with respect to Canadian/U.S. Funding
Assignments, the assigning Lender thereunder shall, to the extent that
rights and obligations hereunder have been assigned by it pursuant to
such Assignment Agreement, relinquish its rights and be released from
its obligations under this Agreement (and, in the case of an Assignment
Agreement covering all or the remaining portion of an assigning Lender's
rights and obligations under this Agreement, such Lender shall cease to
be a party hereto); provided no assignment hereunder shall impair any
rights the assigning Lender may have under subsections 2.6D, 3.5A, 5.1,
13.2 or 13.3 with respect to matters arising prior to such assignment.
The Commitments hereunder shall be modified to reflect the Commitment(s)
of such assignee and any remaining Commitments of such assigning Lender
(it being agreed that a Canadian/U.S. Funding Assignment shall not
affect the Tranche A Canadian Commitment or Tranche B Canadian
Commitment of any
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▇▇▇▇▇▇) and new Notes shall, if requested by the assignee in accordance
with subsection 2.1E, be issued to the assignee, substantially in the
form of Exhibit IV-A or Exhibit IV-B annexed hereto, as applicable, with
appropriate insertions.
Notwithstanding anything to the contrary contained herein, any
Lender (a "Designating Lender") may grant to one or more special purpose
funding vehicles (each, an "SPV"), identified as such in writing from
time to time by Designating Lender to Administrative Agent and
Borrowers, the option to provide to a Borrower all or any part of any
Loan that such Designating Lender would otherwise be obligated to make
to that Borrower pursuant to this Agreement; provided that (i) nothing
herein shall constitute a commitment by any SPV to make any Loan, (ii)
if an SPV elects not to exercise such option or otherwise fails to
provide all or any part of such Loan, the Designating Lender shall be
obligated to make such Loan pursuant to the terms hereof, (iii) the
Designating Lender shall remain liable for any indemnity or other
payment obligation or other obligation with respect to its Commitment
hereunder and (iv) there shall be no increased cost to Borrowers as a
result thereof (including without limitation as a result of taxes or
otherwise). The making of a Loan by an SPV hereunder shall utilize the
Commitment of Designating Lender to the same extent, and as if, such
Loan were made by such Designating Lender.
As to any Loans or portion thereof made by it, each SPV (in lieu
of its Designating Lender, unless otherwise agreed by such Designating
Lender and such SPV) shall have all the rights that a Lender making such
Loans or portion thereof would have had under this Agreement; provided,
however, that each SPV shall have granted to its Designating Lender an
irrevocable power of attorney, to deliver and receive all communications
and notices under this Agreement (and any Loan Documents) and to
exercise on such SPV's behalf, all of such SPV's voting rights under
this Agreement. No additional Note shall be required to evidence the
Loans or portion thereof made by an SPV; and the related Designating
Lender shall be deemed to hold its Note as agent for such SPV to the
extent of the Loans or portion thereof funded by such SPV. In addition,
any payments for the account of any SPV shall be paid to its Designating
Lender as agent for such SPV.
Each party hereto hereby agrees that no SPV shall be liable for
any indemnity or payment under this Agreement for which a Lender would
otherwise be liable. In furtherance of the foregoing, each party hereto
hereby agrees (which agreements shall survive the termination of this
Agreement) that, prior to the date that is one year and one day after
the payment in full of all outstanding commercial paper or other senior
indebtedness of any SPV, it will not institute against, or join any
other person in instituting against, such SPV any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings under
the laws of the United States or any State thereof.
In addition, notwithstanding anything to the contrary contained
in this subsection 13.1 or otherwise in this Agreement, any SPV may (i)
at any time and without paying any processing fee therefor, assign or
participate all or a portion of its interest in any Loans (x) to the
Designating Lender or (y) to any financial institutions
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providing liquidity and/or credit support to or for the account of such
SPV to support the funding or maintenance of Loans, provided that, in
the case of this clause (y), there shall be no increased cost to
Borrowers as a result thereof (including, without limitation, as a
result of taxes or otherwise), and (ii) disclose on a confidential basis
any non-public information relating to its Loans to any rating agency,
commercial paper dealer or provider of any surety, guarantee or credit
or liquidity enhancements to such SPV, provided that prior to
Designating Lender granting the option to SPV or prior to making any
such disclosure to a dealer or provider, Designating Lender shall cause
such SPV or such dealer or provider, as the case may be, to deliver to
Administrative Agent an agreement in writing to be bound by the
provisions of subsection 13.19.
(ii) Acceptance by Administrative Agent; Recordation in
Register. Upon its receipt of an Assignment Agreement executed by an
assigning Lender and an assignee representing that it is an Eligible
Assignee that is an Affiliate of the assigning Lender or other Eligible
Assignee, together with (x) the processing and recordation fee referred
to in subsection 13.1B(i) (except in the case of a Canadian/U.S. Funding
Assignment, any assignment described in clause (a) of subsection
13.1B(i) or any assignment undertaken pursuant to subsection 5.3) and
(y) any forms, certificates or other evidence with respect to United
States federal income tax withholding matters that such assignee may be
required to deliver to Administrative Agent pursuant to subsection
5.1B(iii)(a), Administrative Agent shall, if such Assignment Agreement
has been completed and is in substantially the form of Exhibit VIII
hereto and if Co-Arrangers and, so long as no Event of Default under
subsection 10.1, 10.6 or 10.7 has occurred and is continuing, Company
have consented to the assignment evidenced thereby (in each case to the
extent such consent is required pursuant to subsection 13.1B(i)), (a)
accept such Assignment Agreement by executing a counterpart thereof as
provided therein (which acceptance shall evidence any required consent
of Administrative Agent to such assignment), (b) record the information
contained therein in the Register, and (c) give prompt notice thereof to
Company. Administrative Agent shall maintain a copy of each Assignment
Agreement delivered to and accepted by it as provided in this subsection
13.1B(ii).
C. PARTICIPATIONS. Subject to the provisions of subsection 13.1A, any
Lender may, without the consent of, or notice to, Company or Administrative
Agent, sell participations to one or more banks or other entities in all or a
portion of such Lender's rights and/or obligations under this Agreement;
provided (i) such Lender's obligations under this Agreement shall remain
unchanged, (ii) such Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations, (iii) Company, Administrative
Agent and Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender in connection with such Lender's rights and
obligations under this Agreement, and (iv) such Lender satisfies any additional
provisions with respect to the sale of participations set forth in subsection
13.1A. The holder of any participation, other than an Affiliate of the Lender
granting such participation, shall not be entitled to require such Lender to
take or omit to take any action hereunder except action directly affecting (i)
the extension of the scheduled final maturity date of any Loan allocated to such
participation or (ii) a
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reduction of the principal amount of or the rate of interest payable on any Loan
allocated to such participation or any letter of credit fees, facility fees or
Drawing Fees allocated to such participation, and all amounts payable by any
Borrower hereunder (including without limitation amounts payable to such Lender
pursuant to subsections 2.6D and 5.1) shall be determined as if such Lender had
not sold such participation. Each Borrower and each Lender hereby acknowledge
and agree that, solely for purposes of subsections 13.4 and 13.5, (a) any
participation will give rise to a direct obligation of the applicable Borrower
to the participant and (b) the participant shall be considered to be a "Lender".
D. ASSIGNMENTS TO FEDERAL RESERVE BANKS. In addition to the assignments
and participations permitted under the foregoing provisions of this subsection
13.1, any Lender may assign and pledge all or any portion of its Loans, the
other Obligations owed to such Lender, and its Notes to any Federal Reserve Bank
as collateral security pursuant to Regulation A of the Board of Governors of the
Federal Reserve System and any operating circular issued by such Federal Reserve
Bank; provided that (i) no Lender shall, as between the applicable Borrower and
such Lender, be relieved of any of its obligations hereunder as a result of any
such assignment and pledge and (ii) in no event shall such Federal Reserve Bank
be considered to be a "Lender" or be entitled to require the assigning Lender to
take or omit to take any action hereunder.
E. INFORMATION. Each Lender may furnish any information concerning
Company and its Subsidiaries in the possession of that Lender from time to time
to assignees and participants (including prospective assignees and
participants), subject to subsection 13.19.
13.2 EXPENSES.
Whether or not the transactions contemplated hereby shall be
consummated, Company agrees to pay promptly (i) all the actual and reasonable
costs and expenses of preparation of the Loan Documents; (ii) all the reasonable
costs of furnishing all opinions by counsel for Borrowers (including without
limitation any opinions requested by Lenders as to any legal matters arising
hereunder) and of Borrowers' performance of and compliance with all agreements
and conditions on their parts to be performed or complied with under this
Agreement and the other Loan Documents; (iii) the reasonable fees, expenses and
disbursements of counsel to Primary Agents (including reasonable allocated costs
of internal counsel) in connection with the negotiation, preparation, execution
and administration of the Loan Documents and the Loans and any consents,
amendments, waivers or other modifications hereto or thereto and any other
documents or matters requested by Borrowers; (iv) all other actual and
reasonable costs and expenses incurred by Primary Agents in connection with the
primary syndication of the Commitments and the negotiation, preparation and
execution of the Loan Documents and the transactions contemplated hereby and
thereby; and (v) after the occurrence and during the continuation of an Event of
Default, all costs and expenses, including reasonable attorneys' fees (including
allocated costs of internal counsel) and costs of settlement, incurred by any
Primary Agent or any Lender in enforcing any Obligations of or in collecting any
payments due from Borrowers hereunder or under the other Loan Documents by
reason of such Event of Default or in connection with any refinancing or
restructuring of the credit arrangements provided under this Agreement in the
nature of a "work-out" or pursuant to any insolvency or bankruptcy proceedings.
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13.3 INDEMNITY.
In addition to the payment of expenses pursuant to subsection
13.2, whether or not the transactions contemplated hereby shall be consummated,
Company agrees to defend, indemnify, pay and hold harmless each of
Administrative Agent, Documentation Agent, Co-Syndication Agents, Agents,
Co-Arrangers and Lenders, and the officers, directors, employees, agents and
affiliates of each of Administrative Agent, Documentation Agent, Co-Syndication
Agents and Agents, Co-Arrangers and Lenders (collectively called the
"INDEMNITEES") from and against any and all other 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 (including
reasonable allocated costs of internal counsel) in connection with any
investigative, administrative or judicial proceeding commenced or threatened by
any Person, whether or not any such Indemnitee shall be designated as a party or
a potential party thereto), whether direct, indirect or consequential and
whether based on any federal, state or foreign laws, statutes, rules or
regulations (including without limitation securities and commercial laws,
statutes, rules or regulations and Environmental Laws), on common law or
equitable cause or on contract or otherwise, that may be imposed on, incurred
by, or asserted against any such Indemnitee, in any manner relating to or
arising out of this Agreement or the other Loan Documents or the transactions
contemplated hereby or thereby (including without limitation Lenders' agreement
to make the Loans hereunder or the use or intended use of the proceeds of any of
the Loans or Acceptances or the issuance of Letters of Credit hereunder or the
use or intended use of any of the Letters of Credit) or the statements contained
in the commitment letter delivered by any Lender to any Borrower with respect
thereto (collectively called the "INDEMNIFIED LIABILITIES"); provided that
Company shall not have any obligation to any Indemnitee hereunder with respect
to any Indemnified Liabilities to the extent such Indemnified Liabilities arise
solely from the gross negligence or willful misconduct of that Indemnitee as
determined by a final judgment of a court of competent jurisdiction. To the
extent that the undertaking to defend, indemnify, pay and hold harmless set
forth in the preceding sentence may be unenforceable because it is violative of
any law or public policy, Company shall contribute the maximum portion that it
is permitted to pay and satisfy under applicable law to the payment and
satisfaction of all Indemnified Liabilities incurred by the Indemnitees or any
of them.
13.4 SET-OFF.
In addition to any rights now or hereafter granted under
applicable law and not by way of limitation of any such rights, upon the
occurrence of any Event of Default each Lender is hereby authorized by each
Borrower at any time or from time to time, without notice to such Borrower or to
any other Person, any such notice being hereby expressly waived, to set off and
to appropriate and to apply any and all deposits (general or special, including,
but not limited to, Indebtedness evidenced by certificates of deposit, whether
matured or unmatured, but not including trust accounts) and any other
Indebtedness at any time held or owing by that Lender or any bank controlling
that Lender to or for the credit or the account of such Borrower against and on
account of the obligations and liabilities of such Borrower to that Lender under
this Agreement, any Letters of Credit and participations
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therein, any Acceptances and the other Loan Documents, including, but not
limited to, all claims of any nature or description arising out of or connected
with this Agreement, the Letters of Credit and participations therein, the
Acceptances or any other Loan Document, irrespective of whether or not (i) that
Lender shall have made any demand hereunder or (ii) the principal of or the
interest on the Loans or any amounts in respect of the Letters of Credit or any
other amounts due hereunder or any other Loan Document shall have become due and
payable pursuant to Section 10 and although said obligations and liabilities, or
any of them, may be contingent or unmatured.
13.5 RATABLE SHARING.
A. AMOUNTS OWED BY COMPANY. Lenders hereby agree among themselves that
if any of them shall, whether by voluntary payment, by realization upon
security, through the exercise of any right of set-off or banker's lien, by
counterclaim or cross action or by the enforcement of any right under the Loan
Documents or otherwise, or as adequate protection of a deposit treated as cash
collateral under applicable Insolvency Laws, receive payment or reduction of a
proportion of the aggregate amount of principal, interest, amounts payable in
respect of Letters of Credit, fees and other amounts then due and owing to that
Lender from Company (and not from Canada Safeway) hereunder or under the other
Loan Documents (collectively, the "AGGREGATE AMOUNTS DUE FROM COMPANY" to such
Lender) which is greater than the proportion received by any other Lender in
respect of the Aggregate Amounts Due From Company then due to such other Lender,
then the Lender receiving such proportionately greater payment shall (i) notify
each Primary Agent and each other Lender of the receipt of such payment and (ii)
apply a portion of such payment to purchase participations (which it shall be
deemed to have purchased from each seller of a participation simultaneously upon
the receipt by such seller of its portion of such payment) in the Aggregate
Amounts Due From Company then due to the other Lenders so that all such
recoveries of Aggregate Amounts Due From Company then due shall be shared by all
Lenders in proportion to the Aggregate Amounts Due From Company then due to them
(as calculated prior to such recovery); provided that if all or part of such
proportionately greater payment received by such purchasing Lender is thereafter
recovered from such Lender upon the bankruptcy or reorganization of Company or
otherwise, those purchases shall be rescinded and the purchase prices paid for
such participations shall be returned to such purchasing Lender ratably to the
extent of such recovery, but without interest. Company expressly consents to the
foregoing arrangement and agrees that any holder of a participation so purchased
may exercise any and all rights of banker's lien, set-off or counterclaim with
respect to any and all monies owing by Company to that holder with respect
thereto as fully as if that holder were owed the amount of the participation
held by that holder.
B. AMOUNTS OWED BY CANADA SAFEWAY. Canadian Lenders hereby agree among
themselves that if any of them shall, whether by voluntary payment, by
realization upon security, through the exercise of any right of set-off or
banker's lien, by counterclaim or cross action or by the enforcement of any
right under the Loan Documents or otherwise, or as adequate protection of a
deposit treated as cash collateral under any applicable Insolvency Laws, receive
payment or reduction of a proportion of the aggregate amount of principal,
interest, amounts payable in respect of Loans, Acceptances, fees and other
amounts then due
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and owing to that Lender hereunder or under the other Loan Documents from Canada
Safeway (collectively, the "AGGREGATE AMOUNTS DUE FROM CANADA SAFEWAY" to such
Lender) which is greater than the proportion received by any other Canadian
Lender in respect of the Aggregate Amounts Due From Canada Safeway to such other
Canadian Lender, then the Canadian Lender receiving such proportionately greater
payment shall (i) notify each Primary Agent and each other Canadian Lender of
the receipt of such payment and (ii) apply a portion of such payment to purchase
participations (which it shall be deemed to have purchased from each seller of a
participation simultaneously upon the receipt by such seller of its portion of
such payment) in the Aggregate Amounts Due From Canada Safeway to the other
Canadian Lenders so that all such recoveries of Aggregate Amounts Due From
Canada Safeway shall be shared by all Canadian Lenders in proportion to the
Aggregate Amounts Due From Canada Safeway to them (as calculated prior to such
recovery); provided that if all or part of such proportionately greater payment
received by such purchasing Canadian Lender is thereafter recovered from such
Canadian Lender upon the bankruptcy or reorganization of any Canada Safeway or
otherwise, those purchases shall be rescinded and the purchase prices paid for
such participations shall be returned to such purchasing Canadian Lender ratably
to the extent of such recovery, but without interest. Canada Safeway expressly
consents to the foregoing arrangement and agrees that any holder of a
participation so purchased may exercise any and all rights of banker's lien,
set-off or counterclaim with respect to any and all monies owing by Canada
Safeway to that holder with respect thereto as fully as if that holder were owed
the amount of the participation held by that holder.
13.6 AMENDMENTS AND WAIVERS; REPLACEMENT OF BANKS.
A. AMENDMENTS AND WAIVERS. No amendment, modification, termination or
waiver of any provision of this Agreement or of the Notes, or consent to any
departure by any Borrower therefrom, shall in any event be effective without the
written concurrence of Requisite Lenders; provided that any such amendment,
modification, termination, waiver or consent which (i) increases the amount of
any of the Commitments or reduces the principal amount of any of the Loans; (ii)
increases the maximum amount set forth in subsection 3.1A(ii); (iii) changes any
Lender's Tranche A Canadian Pro Rata Share, Tranche A Domestic Pro Rata Share,
Tranche B Canadian Pro Rata Share, Tranche B Domestic Pro Rata Share or
Aggregate Pro Rata Share; (iv) changes in any manner the definition of
"Requisite Lenders"; (v) changes in any manner any provision of this Agreement
which, by its terms, expressly requires the approval or concurrence of all
Lenders; (vi) postpones the scheduled final maturity date of any of the Loans
(except pursuant to subsection 2.7 or 2.8); (vii) postpones the date on which
any interest or any fees are payable (except in accordance with the provisions
of the last paragraph of Section 10); (viii) decreases the interest rate borne
by any of the Loans (other than any waiver of any increase in the interest rate
applicable to any of the Loans pursuant to subsection 2.2E) or the amount of any
fees payable hereunder; (ix) increases the maximum duration of Interest Periods
permitted hereunder; (x) reduces the amount or postpones the due date of any
amount payable in respect of, or extends the required expiration date beyond the
Tranche A Termination Date of, any Letter of Credit; (xi) changes in any manner
the obligations of Lenders relating to the purchase of participations in Letters
of Credit or Swing Line Loans; (xii) changes in any manner the provisions of
subsections 2.7 or 2.8 with respect to each Lender's right to decline to extend
the Tranche A
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Termination Date or the Tranche B Revolving Termination Date; or (xiii) changes
in any manner the provisions contained in subsection 10.1 or this subsection
13.6, shall be effective only if evidenced by a writing signed by or on behalf
of all Lenders with Obligations directly affected thereby. In addition, (i) any
amendment, modification, termination or waiver of any of the provisions
contained in Section 6 shall be effective only if evidenced by a writing signed
by or on behalf of each Primary Agent and Requisite Lenders, (ii) no amendment,
modification, termination or waiver of any provision of any Note shall be
effective without the written concurrence of the Lender which is the holder of
that Note, (iii) no amendment, modification, termination or waiver of any
provision relating to the Swing Line Loans (including, without limitation, the
provisions of subsection 2.1A(v)) shall be effective without the written
concurrence of the Swing Line Lender and (iv) no amendment, modification,
termination or waiver of any provision of Section 11 or of any other provision
of this Agreement which, by its terms, expressly requires the approval or
concurrence of a Primary Agent shall be effective without the written
concurrence of such Primary Agent. Each Primary Agent may, but shall have no
obligation to, with the concurrence of any Lender, execute amendments,
modifications, waivers or consents on behalf of that Lender. Any waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which it was given. No notice to or demand on any Borrower in any
case shall entitle such Borrower to any other or further notice or demand in
similar or other circumstances. Any amendment, modification, termination, waiver
or consent effected in accordance with this subsection 13.6 shall be binding
upon each Lender at the time outstanding, each future Lender and, if signed by
any Borrower, on such Borrower.
B. REPLACEMENT OF BANKS. If, in connection with any proposed amendment,
modification, termination or waiver to any of the provisions of this Agreement
or the Notes as contemplated by clauses (i) through (xii) of the proviso of the
first sentence of subsection 13.6A, the consent of Requisite Lenders is obtained
but the consent of one or more of such other Lenders whose consent is required
is not obtained, then Company shall have the right, so long as all
non-consenting Lenders whose individual consent is required are treated as
described in either clause (i) or (ii) below, to either (i) replace each such
non-consenting Lender or Lenders pursuant to subsection 5.3 so long as at the
time of such replacement, each such replacement Lender consents to the proposed
amendment, modification, termination or waiver, or (ii) terminate such
non-consenting Lender's Commitments, repay in full its outstanding Loans,
Acceptances and all other amounts due hereunder in accordance with subsections
2.4A(v), 2.4A(vi) and 2.4A(vii); provided that unless the Commitments that are
terminated and the Loans that are repaid pursuant to the preceding clause (ii)
are immediately replaced in full at such time through the addition of new
Lenders or the increase of the Commitments and/or outstanding Loans of existing
Lenders (who in each case must specifically consent thereto), then in the case
of any action pursuant to the preceding clause (ii), the Requisite Lenders
(determined before giving effect to the proposed action) shall specifically
consent thereto; provided further that Company shall not have the right to
terminate any such non-consenting Lender's Commitment and repay in full its
outstanding Loans pursuant to clause (ii) of this subsection 13.6B if,
immediately after the termination of such Lender's Commitments in accordance
with subsection 2.4A(vi), (a) the Tranche A Domestic Loan Exposure of all
Lenders would exceed the Tranche A Domestic Commitments of all Lenders, (b) the
Tranche A Canadian Loan Exposure of all Lenders
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would exceed the Tranche A Canadian Commitments of all Lenders, (c) the Tranche
B Domestic Loan Exposure of all Lenders would exceed the Tranche B Domestic
Commitments of all Lenders or (d) the Tranche B Canadian Loan Exposure of all
Lenders would exceed the Tranche B Canadian Commitments of all Lenders; provided
further that Company shall not have the right to replace a Lender solely as a
result of the exercise of such Lender's rights (and the withholding of any
required consent by such Lender) pursuant to the second and third sentences of
subsection 13.6A.
13.7 INDEPENDENCE OF COVENANTS.
All covenants hereunder shall be given independent effect so
that if a particular action or condition is not permitted by any of such
covenants, the fact that it would be permitted by an exception to, or would
otherwise be within the limitations of, another covenant shall not avoid the
occurrence of an Event of Default or Potential Event of Default if such action
is taken or condition exists.
13.8 NOTICES.
Unless otherwise specifically provided herein, any notice or
other communication herein required or permitted to be given shall be in writing
and may be personally served, telexed or sent by telecopy or United States or
Canadian mail or courier service and shall be deemed to have been given when
delivered in person or by courier service, upon receipt of telecopy or telex, or
three Business Days after depositing it in the United States or Canadian mail
with postage prepaid and properly addressed; provided that notices to each
Primary Agent shall not be effective until received. For the purposes hereof,
the address of each party hereto shall be as set forth under such party's name
on the signature pages hereof or (i) as to Borrowers and Primary Agents, such
other address as shall be designated by any such Person in a written notice
delivered to the other parties hereto and (ii) as to each other party, such
other address as shall be designated by such party in a written notice delivered
to Administrative Agent. Company agrees that it will use reasonable efforts to
provide Administrative Agent at its Domestic Funding and Payment Office copies
of Notices of Borrowing and other written communication related to the Canadian
Loans that are sent to the Administrative Agent's Canadian Funding and Payment
Office.
13.9 SURVIVAL OF REPRESENTATIONS, WARRANTIES AND AGREEMENTS.
A. All representations, warranties and agreements made herein shall
survive the execution and delivery of this Agreement and the making of the Loans
or other extensions of credit hereunder, including the issuance of the Letters
of Credit hereunder.
B. Notwithstanding anything in this Agreement or implied by law to the
contrary, the agreements of the applicable Borrower set forth in subsections
2.6D, 3.5A, 5.1, 13.2 and 13.3 and the agreements of Lenders set forth in
subsections 11.2C, 11.4 and 13.5 shall survive the payment of the Loans and
Acceptances, the cancellation or expiration of the Letters of Credit, and the
termination of this Agreement.
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13.10 FAILURE OR INDULGENCE NOT WAIVER; REMEDIES CUMULATIVE.
No failure or delay on the part of any Primary Agent or any
Lender in the exercise of any power, right or privilege hereunder or under any
other Loan Document shall impair such power, right or privilege or be construed
to be a waiver of any default or acquiescence therein, nor shall any single or
partial exercise of any such power, right or privilege preclude other or further
exercise thereof or of any other power, right or privilege. All rights and
remedies existing under this Agreement and the other Loan Documents are
cumulative to, and not exclusive of, any rights or remedies otherwise available.
13.11 MARSHALLING; PAYMENTS SET ASIDE.
Neither any Primary Agent nor any Lender shall be under any
obligation to marshal any assets in favor of any Borrower or any other party or
against or in payment of any or all of the Obligations. To the extent that any
Borrower makes a payment or payments to any Primary Agent or Lender (or to any
Primary Agent for the benefit of Lenders), or any Primary Agent or Lender
enforces any security interests or exercises its rights of setoff, and such
payment or payments or the proceeds of such enforcement or setoff or any part
thereof are subsequently invalidated, declared to be fraudulent or preferential,
set aside and/or required to be repaid to a trustee, receiver or any other party
under any bankruptcy law, any other state or federal law, common law or any
equitable cause, then, to the extent of such recovery, the obligation or part
thereof originally intended to be satisfied, and all Liens, rights and remedies
therefor or related thereto, shall be revived and continued in full force and
effect as if such payment or payments had not been made or such enforcement or
setoff had not occurred.
13.12 SEVERABILITY.
In case any provision in or obligation under this Agreement, the
Notes, the Acceptances or any Letter of Credit shall be invalid, illegal or
unenforceable in any jurisdiction, the validity, legality and enforceability of
the remaining provisions or obligations, or of such provision or obligation in
any other jurisdiction, shall not in any way be affected or impaired thereby.
13.13 OBLIGATIONS SEVERAL; INDEPENDENT NATURE OF LENDERS' RIGHTS AND
BORROWERS' OBLIGATIONS.
A. The obligations of Lenders hereunder are several and no Lender shall
be responsible for the obligations or Commitments of any other Lender hereunder.
Nothing contained herein or in any other Loan Document, and no action taken by
Lenders pursuant hereto or thereto, shall be deemed to constitute Lenders as a
partnership, an association, a joint venture or any other kind of entity. The
amounts payable at any time hereunder to each Lender shall be a separate and
independent debt, and, subject to Section 10, each Lender shall be entitled to
protect and enforce its rights arising out of this Agreement and it shall not be
necessary for any other Lender or Primary Agent to be joined as an additional
party in any proceeding for such purpose.
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B. Canada Safeway shall not have any obligation for any extensions of
credit made to Company.
13.14 HEADINGS.
Section and subsection headings in this Agreement are included
herein for convenience of reference only and shall not constitute a part of this
Agreement for any other purpose or be given any substantive effect.
13.15 APPLICABLE LAW.
EXCEPT AS PROVIDED IN THE NEXT SUCCEEDING SENTENCE, THIS
AGREEMENT AND EACH NOTE SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK
(INCLUDING, WITHOUT LIMITATION, SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF
THE STATE OF NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES. MATTERS
PERTAINING TO DRAFTS AND ACCEPTANCES SHALL, TO THE EXTENT APPLICABLE, BE
GOVERNED BY THE BILLS OF EXCHANGE ACT (CANADA).
13.16 SUCCESSORS AND ASSIGNS.
This Agreement shall be binding upon the parties hereto and
their respective successors and assigns and shall inure to the benefit of the
parties hereto and the successors and assigns of Lenders (it being understood
that Lenders' rights of assignment are subject to subsection 13.1). No
Borrower's rights or obligations hereunder or any interest therein may be
assigned or delegated by any Borrower without the prior written consent of all
Lenders.
13.17 CONSENT TO JURISDICTION AND SERVICE OF PROCESS.
ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY BORROWER ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR ANY
OBLIGATION MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT
JURISDICTION IN THE STATE OF NEW YORK, AND BY EXECUTION AND DELIVERY OF THIS
AGREEMENT EACH BORROWER ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS
PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE NONEXCLUSIVE JURISDICTION OF THE
AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS AND IRREVOCABLY
AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS
AGREEMENT, SUCH OTHER LOAN DOCUMENT OR SUCH OBLIGATION. Each Borrower hereby
agrees that service of all process in any such proceeding in any such court may
be made by registered or certified mail, return receipt requested, to such
Borrower at its address provided in subsection 13.8, such service being hereby
acknowledged by such Borrower to be sufficient for personal jurisdiction in any
action against such Borrower in any such court and to be otherwise effective and
binding service in every respect. Nothing herein
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shall affect the right to serve process in any other manner permitted by law or
shall limit the right of any Lender to bring proceedings against any Borrower in
the courts of any other jurisdiction.
13.18 WAIVER OF JURY TRIAL.
EACH OF THE PARTIES TO THIS AGREEMENT HEREBY WAIVES ITS
RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR
ARISING OUT OF THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR ANY DEALINGS
BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS CREDIT TRANSACTION OR THE
LENDER/BORROWER RELATIONSHIP THAT IS BEING ESTABLISHED. The scope of this waiver
is intended to be all-encompassing of any and all disputes that may be filed in
any court and that relate to the subject matter of this transaction, including
without limitation contract claims, tort claims, breach of duty claims and all
other common law and statutory claims. Each party hereto acknowledges that this
waiver is a material inducement to enter into a business relationship, that each
has already relied on this waiver in entering into this Agreement, and that each
will continue to rely on this waiver in their related future dealings. Each
party hereto further warrants and represents that it has reviewed this waiver
with its legal counsel and that it knowingly and voluntarily waives its jury
trial rights following consultation with legal counsel. THIS WAIVER IS
IRREVOCABLE AND MAY NOT BE MODIFIED ORALLY BUT MAY BE MODIFIED ONLY IN A WRITTEN
INSTRUMENT, SIGNED BY EACH OF THE PARTIES HERETO AND SPECIFICALLY REFERRING TO
THIS SUBSECTION 13.18. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT OR ANY OF THE OTHER
LOAN DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE CREDIT
EXTENDED HEREUNDER. In the event of litigation, this Agreement may be filed as a
written consent to a trial by the court.
13.19 CONFIDENTIALITY.
Each Lender shall hold all non-public information obtained
pursuant to the requirements of this Agreement in accordance with such Lender's
customary procedures for handling confidential information of this nature and in
accordance with safe and sound banking practices, it being understood and agreed
by each Borrower that in any event a Lender may make disclosures reasonably
required by any bona fide assignee, transferee or participant in connection with
the contemplated assignment or transfer by such Lender of any Loans or any
participation therein, as long as such Lender informs such assignee, transferee
or participant of the existence and content of this subsection 13.19 and such
Person agrees in writing to be bound hereby, or as required or requested by any
governmental agency or representative thereof or pursuant to legal process;
provided that, unless specifically prohibited by applicable law or court order,
each Lender shall notify Company of any request by any governmental agency or
representative thereof (other than any such request in connection with any
examination of the financial condition of such Lender by such governmental
agency) for disclosure of any such non-public information prior to disclosure of
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such information; and provided, further that in no event shall any Lender be
obligated or required to return any materials furnished by Company or any of its
Subsidiaries.
13.20 JUDGMENT CURRENCY.
(a) If, for the purposes of obtaining judgment in any court, it
is necessary to convert a sum due hereunder in any currency (the "ORIGINAL
CURRENCY") into another currency (the "OTHER CURRENCY"), the parties hereto
agree, to the fullest extent permitted by law, that the rate of exchange used
shall be that at which in accordance with normal banking procedures the
Administrative Agent could purchase the Original Currency with the Other
Currency on the Business Day immediately preceding the day on which any such
judgment, or any relevant part thereof, is paid or otherwise satisfied.
(b) The obligations of each Borrower in respect of any sum due
from it to the Lenders hereunder shall, notwithstanding any judgment in such
Other Currency, be discharged only to the extent that on the Business Day
following receipt by the Administrative Agent of any sum adjudged to be so due
in the Other Currency the Administrative Agent may in accordance with normal
banking procedures purchase the Original Currency with the Other Currency; if
the Original Currency so purchased is less than the sum originally due to the
Lenders in the Original Currency, such Borrower agrees, as a separate obligation
and notwithstanding any such judgment, to indemnify the Lenders against such
loss, and if the amount of the Original Currency so purchased exceeds the sum
originally due to the Lenders in the Original Currency, the Lenders shall remit
such excess to such Borrower.
13.21 COUNTERPARTS; EFFECTIVENESS.
This Agreement and any amendments, waivers, consents or
supplements hereto or in connection herewith may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed and delivered shall be deemed an original, but all such
counterparts together shall constitute but one and the same instrument;
signature pages may be detached from multiple separate counterparts and attached
to a single counterpart so that all signature pages are physically attached to
the same document. This Agreement shall become effective upon the execution of a
counterpart hereof by each of the parties hereto and receipt by Company and
Administrative Agent of written or telephonic notification of authorization of
delivery thereof.
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IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed and delivered by their respective officers
thereunto duly authorized as of the date first written above.
BORROWERS: SAFEWAY INC.
By:
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Name:
--------------------------------
Title:
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Notice Address:
Safeway Inc.
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CANADA SAFEWAY LIMITED
By:
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Name:
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Title:
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Notice Address:
Canada Safeway Limited
c/o Safeway Inc.
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