EXHIBIT 10(n)
EXECUTION COPY
AMENDED AND EXTENDED REVOLVING CREDIT AGREEMENT
(364-Day)
Dated as of April 27, 2001
Among
ALCOA INC.,
THE LENDERS NAMED HEREIN,
CITIBANK, N.A. and CREDIT SUISSE FIRST BOSTON,
as Syndication Agents,
DEUTSCHE BANK AG and ABN AMRO BANK, N.V.,
as Documentation Agents, and
THE CHASE MANHATTAN BANK,
as Administrative Agent,
---------------
JPMORGAN,
as Lead Arranger and Bookrunner
TABLE OF CONTENTS
Page
----
ARTICLE I. DEFINITIONS AND CONSTRUCTION....................................1
SECTION 1.01. Defined Terms...............................................1
SECTION 1.02. Terms Generally; Accounting Principles.....................13
ARTICLE II. THE CREDITS....................................................14
SECTION 2.01. Commitments................................................14
SECTION 2.02. Loans......................................................14
SECTION 2.03. Notice of Borrowings.......................................15
SECTION 2.04. Evidence of Debt; Repayment of Loans.......................16
SECTION 2.05. Fees.......................................................17
SECTION 2.06. Interest on Loans..........................................17
SECTION 2.07. Default Interest...........................................18
SECTION 2.08. Alternate Rate of Interest.................................18
SECTION 2.09. Termination and Reduction of Commitments...................18
SECTION 2.10. Refinancings...............................................19
SECTION 2.11. Prepayment.................................................19
SECTION 2.12. Reserve Requirements; Change in Circumstances..............19
SECTION 2.13. Change in Legality.........................................21
SECTION 2.14. Indemnity..................................................21
SECTION 2.15. Pro Rata Treatment.........................................22
SECTION 2.16. Sharing of Setoffs.........................................22
SECTION 2.17. Payments...................................................23
SECTION 2.18. Taxes......................................................23
SECTION 2.19. Assignment of Commitments Under Certain Circumstances......26
ARTICLE III. REPRESENTATIONS AND WARRANTIES.................................27
SECTION 3.01. Organization...............................................27
SECTION 3.02. Authorization..............................................27
SECTION 3.03. Enforceability.............................................27
SECTION 3.04. Governmental Approvals.....................................27
SECTION 3.05. No Conflict................................................27
SECTION 3.06. Financial Statements.......................................28
SECTION 3.07. No Defaults................................................28
SECTION 3.08. Litigation.................................................28
SECTION 3.09. No Material Adverse Change.................................28
SECTION 3.10. Employee Benefit Plans.....................................28
SECTION 3.11. Title to Properties; Possession Under Leases...............29
SECTION 3.12. Investment Company Act; Public Utility Holding Company Act.30
SECTION 3.13. Tax Returns................................................30
SECTION 3.14. Compliance with Laws and Agreements........................30
SECTION 3.15. No Material Misstatements..................................30
SECTION 3.16. Federal Reserve Regulations................................30
SECTION 3.17. No Trusts..................................................30
ARTICLE IV. CONDITIONS OF EFFECTIVENESS, LENDING AND DESIGNATION OF
BORROWING SUBSIDIARIES.......................................................31
SECTION 4.01. Effective Date.............................................31
SECTION 4.02. All Borrowings.............................................32
SECTION 4.03. Designation of Borrowing Subsidiaries......................33
ARTICLE V. AFFIRMATIVE COVENANTS..........................................34
SECTION 5.01. Financial Statements, Reports, etc.........................34
SECTION 5.02. Pari Passu Ranking.........................................35
SECTION 5.03. Maintenance of Properties..................................35
SECTION 5.04. Obligations and Taxes......................................35
SECTION 5.05. Insurance..................................................35
SECTION 5.06. Existence; Businesses and Properties.......................35
SECTION 5.07. Compliance with Laws.......................................36
SECTION 5.08. Litigation and Other Notices...............................37
SECTION 5.09. Borrowing Subsidiaries.....................................37
ARTICLE VI. NEGATIVE COVENANTS.............................................37
SECTION 6.01. Liens.....................................................37
SECTION 6.02. Consolidation, Merger, Sale of Assets, etc................38
SECTION 6.03. Financial Undertaking.....................................39
SECTION 6.04. Change in Business........................................39
ARTICLE VII. EVENTS OF DEFAULT..............................................39
ARTICLE VIII. GUARANTEE......................................................43
ARTICLE IX. THE ADMINISTRATIVE AGENT.......................................44
ARTICLE X. MISCELLANEOUS..................................................47
SECTION 10.01. Notices...................................................47
SECTION 10.02. Survival of Agreement.....................................48
SECTION 10.03. Binding Effect............................................48
SECTION 10.04. Successors and Assigns; Additional Borrowing Subsidiaries.48
SECTION 10.05. Expenses; Indemnity.......................................52
SECTION 10.06. Right of Setoff...........................................53
SECTION 10.07. Applicable Law............................................53
SECTION 10.08. Waivers; Amendment........................................53
SECTION 10.09. Interest Rate Limitation..................................54
SECTION 10.10. Entire Agreement..........................................54
SECTION 10.11. Waiver of Jury Trial......................................54
SECTION 10.12. Severability..............................................55
SECTION 10.13. Counterparts..............................................55
SECTION 10.14. Headings..................................................55
SECTION 10.15. Jurisdiction, Consent to Service of Process...............55
SECTION 10.16. Conversion of Currencies..................................56
References
----------
Exhibit A Assignment and Acceptance
Exhibit B Administrative Questionnaire
Exhibit C Form of Opinion of Counsel
Exhibit D Designation of Borrowing Subsidiary
Schedule 2.01 Lenders and Commitments
Schedule 3.04 Governmental Approvals
Schedule 3.08 Litigation
Schedule 6.01(a) Existing Liens
AMENDED AND EXTENDED 364-DAY
REVOLVING CREDIT AGREEMENT dated as of April
27, 2001 (as the same may be amended,
modified or supplemented from time to time,
the "Agreement"), among ALCOA INC., a
Pennsylvania corporation ("Alcoa"), the
Lenders (such term and each other
capitalized term used but not defined herein
having the meaning ascribed thereto in
Article I), and THE CHASE MANHATTAN BANK, a
New York banking corporation, as
Administrative Agent for the Lenders.
Alcoa and the Borrowing Subsidiaries have requested the
Lenders to amend and extend the Existing 364-Day Revolving Credit Agreement
(such term and each other capitalized term used and not otherwise defined herein
having the meaning assigned to it in Article I) in an aggregate principal amount
of US$2,490,000,000 in order to enable Alcoa and the Borrowing Subsidiaries,
subject to the terms and conditions of this Agreement, to borrow on a revolving
basis, at any time and from time to time prior to the Maturity Date, an
aggregate principal amount at any time outstanding not in excess of
US$2,000,000,000. The proceeds of such borrowings are to be used to provide
working capital and for other general corporate purposes, including but not
limited to the support of Alcoa's commercial paper program. The Lenders are
willing to extend such credit to Alcoa and the Borrowing Subsidiaries on the
terms and subject to the conditions set forth herein.
Accordingly, the Borrowers, the Lenders and the Administrative
Agent agree as follows:
ARTICLE I. DEFINITIONS AND CONSTRUCTION
SECTION 1.01. Defined Terms. As used in this Agreement, the
following terms shall have the meanings set forth below:
"ABR Borrowing" shall mean a Borrowing comprised of ABR Loans.
"ABR Loan" shall mean any Loan bearing interest at a rate
determined by reference to the Alternate Base Rate in accordance with the
provisions of Article II.
"Administrative Agent" shall mean The Chase Manhattan Bank, a
New York banking corporation, in its capacity as administrative agent for the
Lenders hereunder.
"Administrative Questionnaire" shall mean an Administrative
Questionnaire in the form of Exhibit B.
2
"Affiliate" shall mean, when used with respect to a specified
person, another person that directly, or indirectly through one or more
intermediaries, Controls or is Controlled by or is under common Control with the
person specified.
"Alternate Base Rate" shall mean, for any day, a rate per
annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to the
greatest of (a) the Prime Rate in effect on such day, (b) the Base CD Rate in
effect on such day plus 1% and (c) the Federal Funds Effective Rate in effect on
such day plus 1/2 of 1%. For purposes hereof, "Prime Rate" shall mean the rate
of interest per annum publicly announced from time to time by the Administrative
Agent as its prime rate in effect at its principal office in New York City; each
change in the Prime Rate shall be effective on the date such change is publicly
announced as being effective. "Base CD Rate" shall mean the sum of (a) the
product of (i) the Three-Month Secondary CD Rate and (ii) Statutory Reserves and
(b) the Assessment Rate. "Three-Month Secondary CD Rate" shall mean, for any
day, the secondary market rate for three-month certificates of deposit reported
as being in effect on such day (or, if such day shall not be a Business Day, the
next preceding Business Day) by the Board through the public information
telephone line of the Federal Reserve Bank of New York (which rate will, under
the current practices of the Board, be published in Federal Reserve Statistical
Release H.l5(519) during the week following such day), or, if such rate shall
not be so reported on such day or such next preceding Business Day, the average
of the secondary market quotations for three month certificates of deposit of
major money center banks in New York City received at approximately 10:00 a.m.,
New York City time, on such day (or, if such day shall not be a Business Day, on
the next preceding Business Day) by the Administrative Agent from three New York
City negotiable certificate of deposit dealers of recognized standing selected
by it. "Federal Funds Effective Rate" shall mean, for any day, the weighted
average of the rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by Federal funds brokers, as published on the
next succeeding Business Day by the Federal Reserve Bank of New York, or, if
such rate is not so published for any day which is a Business Day, the average
of the quotations for the day of such transactions received by the
Administrative Agent from three Federal funds brokers of recognized standing
selected by it. If for any reason the Administrative Agent shall have determined
(which determination shall be conclusive absent manifest error) that it is
unable to ascertain the Base CD Rate or the Federal Funds Effective Rate or both
for any reason, including the inability of the Administrative Agent to obtain
sufficient quotations in accordance with the terms thereof, the Alternate Base
Rate shall be determined without regard to clause (b) or (c), or both, of the
first sentence of this definition, as appropriate, until the circumstances
giving rise to such inability no longer exist. Any change in the Alternate Base
Rate due to a change in the Prime Rate, the Three-Month Secondary CD Rate or the
Federal Funds Effective Rate shall be effective on the effective date of such
change in the Prime Rate, the Three-Month Secondary CD Rate or the Federal Funds
Effective Rate, respectively.
3
"Applicable Margin" shall mean, with respect to the Eurodollar
Loans comprising any Borrowing, the applicable percentage set forth below based
upon the ratings by S&P and ▇▇▇▇▇'▇ applicable on such date to the Index Debt:
Category 1 Percentage
---------- ----------
AA-/Aa3 .1350%
or above
Category 2
----------
A+/A1 .1400%
Category 3
----------
A/A2 .1375%
Category 4
----------
A-/A3 .1450%
Category 5
----------
BBB/Baa2 .2200%
Category 6
----------
BBB-/Baa3 .2700%
or below
For purposes of the foregoing, (i) if neither ▇▇▇▇▇'▇ nor S&P
shall have in effect a rating for any Index Debt (other than by reason of the
circumstances referred to in the last sentence of this definition), then both
such rating agencies shall be deemed to have established ratings for such Index
Debt in Category 6; (ii) if only one of ▇▇▇▇▇'▇ and S&P shall have in effect a
rating for any Index Debt, then the Applicable Margin, to the extent determined
by reference to such Index Debt, shall be determined on the basis of such
rating; (iii) if the ratings established or deemed to have been established by
▇▇▇▇▇'▇ or S&P for any Index Debt shall fall within different Categories, the
Applicable Margin, to the extent determined by reference to such Index Debt,
shall be based on the Category corresponding to the higher rating; and (iv) if
any rating established or deemed to have been established by ▇▇▇▇▇'▇ or S&P
shall be changed (other than as a result of a change in the rating system of
▇▇▇▇▇'▇ or S&P), such change shall be effective as of the date on which it is
first announced by the applicable rating agency. Each change in the Applicable
Margin shall apply during the period commencing on the effective date of such
change and ending on the date immediately preceding the effective date of the
next such change. If the rating system
4
of ▇▇▇▇▇'▇ or S&P shall change, or if any such rating agency shall cease to be
in the business of rating corporate debt obligations, Alcoa and the Lenders
shall negotiate in good faith to amend the references to specific ratings in
this definition to reflect such changed rating system or the non-availability of
ratings from such rating agency, and pending the effectiveness of any such
amendment, the ratings of such rating agency most recently in effect prior to
such change or cessation shall be employed in determining the Applicable Margin.
"Assessment Rate" shall mean, for any date, the annual rate
(rounded upwards, if necessary, to the next 1/100 of 1%) most recently estimated
by the Administrative Agent as the then current net annual assessment rate that
will be employed in determining amounts payable by the Administrative Agent to
the Federal Deposit Insurance Corporation (or any successor) for such date for
insurance by such Corporation (or such successor) of time deposits made in
dollars at the Administrative Agent's domestic offices.
"Assignment and Acceptance" shall mean an assignment and
acceptance entered into by a Lender and an assignee, and accepted by the
Administrative Agent, in the form of Exhibit A or such other form as shall be
approved by the Administrative Agent.
"Board" shall mean the Board of Governors of the Federal
Reserve System of the United States.
"Borrowers" shall mean Alcoa and the Borrowing Subsidiaries.
"Borrowing" shall mean any group of Loans of a single Type
made by the Lenders on a single date and as to which a single Interest Period is
in effect.
"Borrowing Subsidiaries" shall mean, at any time, the
wholly-owned Subsidiaries of Alcoa that have undertaken the obligations of
Borrowing Subsidiaries pursuant to Section 10.04(i).
"Borrowing Subsidiary Obligations" shall mean, collectively,
the due and punctual payment by any Borrowing Subsidiary of the principal of and
interest on the Loans to it, when and as due, whether at maturity, by
acceleration or otherwise, and the due and punctual payment and performance of
all other obligations of such Borrowing Subsidiary under this Agreement.
"Business Day" shall mean any day (other than a day which is a
Saturday, Sunday or day on which banks in New York City are authorized or
required by law to remain closed); provided, however, that, when used in
connection with any Eurodollar Loan, the term "Business Day" shall in each case
also exclude any day on which banks are not open for dealings in dollar deposits
in the London interbank market.
5
"Code" shall mean the Internal Revenue Code of 1986, as the
same may be amended from time to time.
"Commercial Paper" of any person shall mean any note, draft,
▇▇▇▇ of exchange or other negotiable instrument issued by such person (other
than any extendable commercial notes issued pursuant to Section 4(2) of the
Securities Act of 1933) that has a maturity at the time of issuance not
exceeding thirteen months, exclusive of days of grace, or any renewal thereof
the maturity of which is likewise limited, pursuant to Section 3(a)(3) or
Section 4(2) of the Securities Act of 1933.
"Commitment" shall mean, with respect to each Lender, the
commitment of such Lender to make Loans hereunder as set forth in Schedule 2.01,
as the same may be terminated, reduced or increased from time to time pursuant
to Section 2.09.
"Consolidated Net Tangible Assets" shall mean at any time, the
aggregate amount of assets (less applicable reserves and other properly
deductible items) of Alcoa and its consolidated Subsidiaries adjusted for
inventories on the basis of cost (before application of the "last-in first-out"
method of determining cost) or current market value, whichever is lower, and
deducting therefrom (a) all current liabilities of such corporation and its
consolidated Subsidiaries except for (i) notes and loans payable, (ii) current
maturities of long-term debt and (iii) current maturities of obligations under
capital leases and (b) all goodwill, trade names, patents, unamortized debt
discount and expenses of such corporation and its consolidated Subsidiaries (to
the extent included in said aggregate amount of assets) and other like
intangibles, all as set forth in the most recent consolidated balance sheet of
Alcoa and its consolidated Subsidiaries, delivered to the Administrative Agent
pursuant to Section 5.01, computed and consolidated in accordance with GAAP.
"Consolidated Net Worth" shall mean at any time, the net worth
of Alcoa and its consolidated Subsidiaries at such time (including minority
interests), computed and consolidated in accordance with GAAP.
"Control" shall mean the possession, directly or indirectly,
of the power to direct or cause the direction of the management or policies of a
person, whether through the ownership of Voting Stock, by contract or otherwise,
and "Controlling" and "Controlled" shall have meanings correlative thereto.
"Default" shall mean any event or condition which upon notice,
lapse of time or both would constitute an Event of Default.
"Designation Date" shall have the meaning assigned to such
term in Section 10.04(i).
6
"Designation of Borrowing Subsidiary" shall mean a Designation
of Borrowing Subsidiary executed by Alcoa and a wholly-owned Subsidiary in the
form of Exhibit D.
"dollars" or "$" shall mean lawful money of the
United States of America.
"Effective Date" shall mean the date of this Agreement.
"Eligible Transferee" shall mean (i) a commercial bank having
total assets in excess of $10,000,000,000 or the equivalent thereof in another
currency, provided that such bank or its holding company has issued obligations
which are rated investment grade by any of ▇▇▇▇▇'▇, S&P or International Banking
and Credit Analysis and (ii) any other person which Alcoa agrees may be an
Eligible Transferee (which consent shall not be unreasonably withheld or
delayed).
"Engagement Fees" shall have the meaning assigned to such term
in Section 2.05(b).
"Engagement Letter" shall mean the letter agreement dated as
of April 2, 2001, among the Administrative Agent, JPMorgan, a division of Chase
Securities Inc. ("JPMorgan"), and Alcoa.
"ERISA" shall mean the Employee Retirement Income Security Act
of 1974, as the same may be amended from time to time.
"ERISA Affiliate" shall mean any trade or business (whether or
not incorporated) that is a member of a group of which any Borrower is a member
and which is treated as a single employer under Section 414 of the Code.
"ERISA Event" shall mean (i) any Reportable Event; (ii) the
adoption of any amendment to a Plan that would require the provision of security
pursuant to Section 401(a)(29) of the Code or Section 307 of ERISA; (iii) the
existence with respect to any Plan of an "accumulated funding deficiency" (as
defined in Section 412 of the Code or Section 302 of ERISA), whether or not
waived; (iv) the filing pursuant to Section 412(d) of the Code or Section 302(d)
of ERISA of an application for a waiver of the minimum funding standard with
respect to any Plan; (v) the incurrence of any liability under Title IV of ERISA
with respect to the termination of any Plan or the withdrawal or partial
withdrawal of the Borrower or any of its ERISA Affiliates from any Plan or
Multiemployer Plan; (vi) the receipt by the Borrower or any ERISA Affiliate from
the PBGC or a plan administrator of any notice relating to the intention to
terminate any Plan or Plans or to appoint a trustee to administer any Plan;
(vii) the receipt by the Borrower or any ERISA Affiliate of any notice
concerning the imposition of Withdrawal Liability or a determination that a
Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA; (viii) the occurrence of a "prohibited
transaction" with respect to which the
7
Borrower or any of its subsidiaries is a "disqualified person" (within the
meaning of Section 4975 of the Code) or with respect to which the Borrower or
any such subsidiary could otherwise be liable; (ix) any other similar event or
condition with respect to a Plan or Multiemployer Plan that could result in
liability of the Borrowers and (x) any Foreign Benefit Event.
"Eurodollar Borrowing" shall mean a Borrowing comprised of
Eurodollar Loans.
"Eurodollar Loan" shall mean any Loan bearing interest at a
rate determined by reference to the LIBO Rate in accordance with the provisions
of Article II.
"Event of Default" shall have the meaning assigned to such
term in Article VII.
"Exchange Act Report" shall mean the Annual Report of Alcoa on
Form 10-K for the year ended December 31, 2000, as amended by Amendment No. 1 on
Form 10-K/A filed on March 6, 2001, by Alcoa with the Securities and Exchange
Commission pursuant to the Securities Exchange Act of 1934.
"Existing Five-Year Credit Agreement" shall mean the Revolving
Credit Agreement (Five-Year) dated as of April 28, 2000, among Alcoa, the
lenders party thereto, The Chase Manhattan Bank, as Administrative Agent, and
Chase Securities Inc., as lead arranger and book manager. The Existing Five-Year
Credit Agreement is being amended and restated by the Five-Year Credit
Agreement.
"Existing 364-Day Credit Agreement" shall mean the Revolving
Credit Agreement (364-Day) dated as of April 28, 2000, among Alcoa, the lenders
party thereto, The Chase Manhattan Bank, as Administrative Agent, and Chase
Securities Inc., as lead arranger and book manager. The Existing 364-Day Credit
Agreement is being amended and extended by this Agreement.
"Facility Fee" shall have the meaning assigned to such term in
Section 2.05(a).
"Facility Fee Percentage" shall mean on any date the
applicable percentage set forth below based upon the ratings by S&P and ▇▇▇▇▇'▇,
respectively, applicable on such date to the Index Debt:
Category 1 Percentage
---------- ----------
AA-/Aa3 .0400%
or above
8
Category 2
----------
A+/A1 .0475%
Category 3
----------
A/A2 .0500%
Category 4
----------
A-/A3 .0550%
Category 5
----------
BBB/Baa2 .0800%
Category 6
----------
BBB-/Baa3 .1300%
or below
For purposes of the foregoing, (i) if neither ▇▇▇▇▇'▇ nor S&P
shall have in effect a rating for the Index Debt (other than by reason of the
circumstances referred to in the last sentence of this definition), then both
such rating agencies shall be deemed to have established ratings in Category 6;
(ii) if only one of ▇▇▇▇▇'▇ and S&P shall have in effect a rating for the Index
Debt, then the Facility Fee Percentage shall be determined on the basis of such
rating; (iii) if the ratings established or deemed to have been established by
▇▇▇▇▇'▇ or S&P for the Index Debt shall fall within different Categories, the
Facility Fee Percentage shall be based on the Category corresponding to the
higher rating; and (iv) if any rating established or deemed to have been
established by ▇▇▇▇▇'▇ or S&P shall be changed (other than as a result of a
change in the rating system of ▇▇▇▇▇'▇ or S&P), such change shall be effective
as of the date on which it is first announced by the applicable rating agency.
Each change in the Facility Fee Percentage shall apply during the period
commencing on the effective date of such change and ending on the date
immediately preceding the effective date of the next such change. If the rating
system of ▇▇▇▇▇'▇ or S&P shall change, or if either of such rating agencies
shall cease to be in the business of rating corporate debt obligations, Alcoa
and the Lenders shall negotiate in good faith to amend the references to
specific ratings in this definition to reflect such changed rating system or the
non-availability of ratings from such rating agency, and pending the
effectiveness of any such amendment, the ratings of such rating agency most
recently in effect prior to such change or cessation shall be employed in
determining the Facility Fee Percentage.
"Fees" shall mean the Facility Fees and the Engagement Fees.
"Financial Officer" of any corporation shall mean the chief
financial officer, principal accounting officer, Treasurer or Controller of such
corporation.
9
"Five-Year Credit Agreement" shall mean the Existing Five-Year
Credit Agreement, as amended and restated by the Five-Year Revolving Credit
Agreement dated as of the date hereof among Alcoa, the lenders party thereto and
The Chase Manhattan Bank, as Administrative Agent.
"Foreign Benefit Event" shall mean (a) with respect to any
Foreign Pension Plan, (i) the existence of unfunded liabilities in excess of the
amount permitted under any applicable law, or in excess of the amount that would
be permitted absent a waiver from a Governmental Authority, (ii) the failure to
make the required contributions or payments, under any applicable law, on or
before the due date for such contributions or payments, (iii) the receipt of a
notice by a Governmental Authority relating to the intention to terminate any
such Foreign Pension Plan or to appoint a trustee to administer any such Foreign
Pension Plan, or to the insolvency of any such Foreign Pension Plan and (iv) the
incurrence of any liability of the Borrowers under applicable law on account of
the complete or partial termination of such Foreign Pension Plan or the complete
or partial withdrawal of any participating employer therein and (b) with respect
to any Foreign Plan, (i) the occurrence of any transaction that is prohibited
under any applicable law and could result in the incurrence of any liability by
the Borrowers, or the imposition on the Borrowers of any fine, excise tax or
penalty resulting from any noncompliance with any applicable law and (ii) any
other event or condition that could reasonably be expected to result in
liability of any of the Borrowers.
"Foreign Plan" shall mean any plan or arrangement established
or maintained outside the United States for the benefit of present or former
employees of any of the Borrowers.
"Foreign Pension Plan" shall mean any benefit plan which under
applicable law is required to be funded through a trust or other funding vehicle
other than a trust or funding vehicle maintained exclusively by a Governmental
Authority.
"GAAP" shall mean generally accepted accounting principles, as
used in, and applied on a basis consistent with, the financial statements of
Alcoa referred to in Section 3.06.
"Governmental Authority" shall mean any Federal, state, local
or foreign court or governmental agency, authority, instrumentality or
regulatory body.
"Guarantee" of or by any person shall mean any obligation,
contingent or otherwise, of such person guaranteeing any Indebtedness of any
other person, whether directly or indirectly, and including any obligation of
such person, direct or indirect, to purchase or pay such Indebtedness or to
purchase any security for the payment of such Indebtedness; provided, however,
that the term "Guarantee" shall not include endorsements for collection or
deposit, in either case in the ordinary course of business.
10
"Indebtedness" of any person at any time shall mean, without
duplication, (a) all obligations for money borrowed or raised, all obligations
(other than accounts payable and other similar items arising in the ordinary
course of business) for the deferred payment of the purchase price of property,
and all capital lease obligations which, in each case, in accordance with GAAP,
would be included in determining total liabilities as shown on the liability
side of the balance sheet of such person and (b) all Guarantees of such person.
"Index Debt" shall mean the senior, unsecured, non-credit
enhanced, long-term Indebtedness for borrowed money of Alcoa.
"Interest Payment Date" shall mean, with respect to any Loan,
the last day of the Interest Period applicable to the Borrowing of which such
Loan is a part and, in the case of a Eurodollar Borrowing with an Interest
Period of more than three months' duration, each day that would have been an
Interest Payment Date had successive Interest Periods of three months' duration
been applicable to such Borrowing, and, in addition, the date of any
refinancing, continuation or conversion of such Borrowing with or to a Borrowing
of a different Type.
"Interest Period" shall mean (a) as to any Eurodollar
Borrowing, the period commencing on the date of such Borrowing or on the last
day of the immediately preceding Interest Period applicable to such Borrowing,
as the case may be, and ending on the numerically corresponding day (or, if
there is no numerically corresponding day, on the last day) in the calendar
month that is 1, 2, 3 or 6 months thereafter, as the Borrower to which such Loan
is made may elect; and (b) as to any ABR Borrowing, the period commencing on the
date of such Borrowing or on the last day of the immediately preceding Interest
Period applicable to such Borrowing, as the case may be, and ending on the
earliest of (i) the next succeeding March 31, June 30, September 30 or December
31, (ii) the Maturity Date and (iii) the date such Borrowing is prepaid in
accordance with Section 2.11; provided, however, that if any Interest Period
would end on a day other than a Business Day, such Interest Period shall be
extended to the next succeeding Business Day unless, in the case of a Eurodollar
Borrowing only, such next succeeding Business Day would fall in the next
calendar month, in which case such Interest Period shall end on the next
preceding Business Day.
"Lenders" shall mean (a) the financial institutions listed on
Schedule 2.01 (other than any such financial institution that has ceased to be a
party hereto pursuant to an Assignment and Acceptance) and (b) any financial
institution that has become a party hereto pursuant to an Assignment and
Acceptance.
"LIBO Rate" shall mean, with respect to any Eurodollar
Borrowing for any Interest Period, an interest rate (rounded upwards, if
necessary, to the next 1/16 of 1%) equal to the offered rate for dollar deposits
for a period equal to the Interest Period for such Eurodollar Borrowing that
appears on the LIBO page on the Reuters Screen
11
(or any page that can reasonably be considered a replacement page) at
approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period. If such rate is not available on the
Reuters Screen, the "LIBO Rate" shall be the rate (rounded upwards, if
necessary, to the next 1/16 of 1%) equal to the arithmetic average of the
respective rates per annum at which dollar deposits approximately equal in
principal amount to such Eurodollar Borrowing and for a maturity comparable to
such Interest Period are offered in immediately available funds to the London
branches of the Reference Banks in the London interbank market at approximately
11:00 a.m., London time, two Business Days prior to the commencement of such
Interest Period. The Administrative Agent shall determine the LIBO Rate and such
determination shall be conclusive absent manifest error.
"Lien" shall mean, with respect to any asset, (a) any
mortgage, deed of trust, lien, pledge, encumbrance, charge or security interest
in or on such asset, (b) the interest of a vendor or a lessor under any
conditional sale agreement, capital lease or title retention agreement relating
to such asset and (c) in the case of securities, any purchase option, call or
similar right of a third party with respect to such securities.
"Loans" shall have the meaning assigned to it in Section 2.01.
Each Loan shall be a Eurodollar Loan or an ABR Loan.
"Material Adverse Effect" shall mean a materially adverse
effect on the business, assets, operations or financial condition of Alcoa and
its Subsidiaries taken as a whole, or a material impairment of the ability of
Alcoa to perform any of its obligations under this Agreement.
"Maturity Date" shall mean April 26, 2002.
"Moody's" shall mean ▇▇▇▇▇'▇ Investors Service, Inc.
"Multiemployer Plan" shall mean a multiemployer plan as
defined in Section 4001(a)(3) of ERISA to which any Borrower or any ERISA
Affiliate (other than one considered an ERISA Affiliate only pursuant to
subsection (m) or (o) of Section 414 of the Code) is making or accruing an
obligation to make contributions, or has within any of the preceding five plan
years made or accrued an obligation to make contributions.
"1998 Five-Year Credit Agreement" shall mean the Revolving
Credit Agreement (Five-Year) dated as of August 14, 1998, among Alcoa, Alcoa of
Australia Limited, a company incorporated with limited liability in Australia,
the lenders party thereto, The Chase Manhattan Bank, as U.S. agent for such
lenders, and Chase Securities Australia Limited, a company incorporated with
limited liability in Australia, as Australian Agent for such lenders.
"PBGC" shall mean the Pension Benefit Guaranty Corporation
referred to and defined in ERISA.
12
"person" shall mean any natural person, corporation
organization, business trust, joint venture, association, company, partnership
or government, or any agency or political subdivision thereof.
"Plan" shall mean any pension plan (other than a Multiemployer
Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code
which is maintained for employees of any Borrower or any ERISA Affiliate.
"Pro Rata Percentage" of any Lender at any time shall mean the
percentage of the Total Commitment that is represented by such Lender's
Commitment.
"Reference Banks" shall mean The Chase Manhattan Bank, Mellon
Bank, N.A. and Bank of America National Trust and Savings Association.
"Register" shall have the meaning given such term in Section
10.04(d).
"Reportable Event" shall mean any reportable event as defined
in Section 4043(b) of ERISA or the regulations issued thereunder with respect to
a Plan (other than a Plan maintained by an ERISA Affiliate which is considered
an ERISA Affiliate only pursuant to subsection (m) or (o) of Section 414 of the
Code).
"Required Lenders" shall mean Lenders representing at least
66-2/3% in principal amount of the outstanding Loans and unused Commitments.
"Responsible Officer" of any corporation shall mean any
executive officer or Financial Officer of such corporation and any other officer
or similar official thereof responsible for the administration of the
obligations of such corporation in respect of this Agreement.
"Restricted Subsidiary" shall mean any consolidated Subsidiary
of Alcoa which owns any manufacturing plant or manufacturing facility located in
the United States, except any such plant or facility which, in the opinion of
the Board of Directors of Alcoa, is not of material importance to the business
of Alcoa and its Restricted Subsidiaries, taken as a whole, excluding any such
Subsidiary which (a) is principally engaged in leasing or financing receivables,
(b) is principally engaged in financing Alcoa's operations outside the United
States or (c) principally serves as a partner in a partnership.
"S&P" shall mean Standard & Poor's Ratings Services, a
Division of the ▇▇▇▇▇▇-▇▇▇▇ Companies Inc.
"Statutory Reserves" shall mean a fraction (expressed as a
decimal), the numerator of which is the number one and the denominator of which
is the number one minus the aggregate of the maximum reserve percentages
(including any marginal, special, emergency or supplemental reserves) expressed
as a decimal established by the Board and any other banking authority to which
the Administrative Agent is subject for
13
new negotiable nonpersonal time deposits in dollars of over $100,000 with
maturities approximately equal to three months. Such reserve percentages shall
include those imposed pursuant to such Regulation D of the Board. Statutory
Reserves shall be adjusted automatically on and as of the effective date of any
change in any reserve percentage.
"Subsidiary" shall mean, with respect to any person (herein
referred to as the "parent"), any corporation, partnership, association or other
business entity of which securities or other ownership interests representing
more than 50% of the Voting Stock or more than 50% of the general partnership
interests are, at the time any determination is being made, owned, controlled or
held by the parent or one or more Subsidiaries of the parent or by the parent
and one or more Subsidiaries of the parent.
"Total Commitment" shall mean, at any time, the aggregate
amount of the Commitments, as in effect at such time.
"Type", when used in respect of any Loan or Borrowing, shall
refer to the Rate by reference to which interest on such Loan or on the Loans
comprising such Borrowing is determined. For purposes hereof, "Rate" shall mean
the LIBO Rate and the Alternate Base Rate.
"Voting Stock" with respect to the stock of any person means
stock of any class or classes (however designated) having ordinary voting power
for the election of the directors of such person, other than stock having such
power only by reason of the occurrence of a contingency.
"Withdrawal Liability" shall mean liability to a Multiemployer
Plan as a result of a complete or partial withdrawal from such Multiemployer
Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.
SECTION 1.02. Terms Generally; Accounting Principles. The
definitions in Section 1.01 shall apply equally to both the singular and plural
forms of the terms defined. Whenever the context may require, any pronoun shall
include the corresponding masculine, feminine and neuter forms. The words
"include", "includes" and "including" shall be deemed to be followed by the
phrase "without limitation". All references herein to Articles, Sections,
Exhibits and Schedules shall be deemed references to Articles and Sections of,
and Exhibits and Schedules to, this Agreement unless the context shall otherwise
require , and all references herein to the "date hereof" or the "date of this
Agreement" shall be construed as referring to April 27, 2001; provided that all
obligations of the Borrower accruing under the Existing 364-Day Credit Agreement
shall continue to be obligations of the Borrower under this Agreement. Except as
otherwise expressly provided herein, all terms of an accounting or financial
nature shall be construed in accordance with GAAP, as in effect from time to
time; provided, however, that, if Alcoa notifies the Administrative Agent that
it requests an amendment to any provision hereof to eliminate the effect of any
change in GAAP on the operation of such provision (or if the Administrative
Agent notifies Alcoa that the Required Lenders request an amendment to any
provision hereof for
14
such purpose), regardless of whether any such notice is given before or after
such change in GAAP (provided such change in GAAP occurs after the date hereof),
then such provision shall be interpreted on the basis of GAAP in effect
immediately before such change became effective until such notice shall have
been withdrawn or such provision amended in accordance herewith.
ARTICLE II. THE CREDITS
SECTION 2.01. Commitments. Subject to the terms and conditions
and relying upon the representations and warranties herein set forth, each
Lender agrees, severally and not jointly, to make revolving credit loans in
dollars (the "Loans") to Alcoa and the Borrowing Subsidiaries, at any time and
from time to time on or after the Effective Date and until the earlier of the
Maturity Date and the termination of the Commitment of such Lender in accordance
with the terms hereof; provided, however, that (i) after giving effect to any
Loan, the aggregate principal amount of the outstanding Loans shall not exceed
the Total Commitment and (ii) at all times the aggregate principal amount of all
outstanding Loans made by each Lender shall equal its Pro Rata Percentage of the
aggregate principal amount of all outstanding Loans. The Commitment of each
Lender is set forth on Schedule 2.01 to this Agreement. Such Commitment may be
terminated, reduced or increased from time to time pursuant to Section 2.09.
Within the limits set forth in the preceding sentence, the Borrowers may borrow,
pay or prepay and reborrow Loans on or after the Effective Date and prior to the
Maturity Date, subject to the terms, conditions and limitations set forth
herein.
SECTION 2.02. Loans. (a) Each Loan shall be made as part of a
Borrowing consisting of Loans made by the Lenders ratably in accordance with
their respective applicable Commitments; provided, however, that the failure of
any Lender to make any Loan shall not in itself relieve any other Lender of its
obligation to lend hereunder (it being understood, however, that no Lender shall
be responsible for the failure of any other Lender to make any Loan required to
be made by such other Lender). The Loans comprising each Borrowing shall be in
an aggregate principal amount which is an integral multiple of $1,000,000 and
not less than $10,000,000 (or an aggregate principal amount equal to the
remaining balance of the applicable Commitments, as the case may be).
(b) Each Borrowing shall be comprised entirely of Eurodollar
Loans or ABR Loans, as the applicable Borrower may request pursuant to Section
2.03. Each Lender may at its option fulfill its Commitment with respect to any
Loan by causing any domestic or foreign branch or Affiliate of such Lender to
make such Loan; provided, however, that any exercise of such option shall not
affect the obligation of the applicable Borrower to repay such Loan in
accordance with the terms of this Agreement. Borrowings of more than one Type
may be outstanding at the same time; provided, however, that no Borrower shall
be entitled to request any Borrowing which, if made, would result in an
aggregate of more than five separate Eurodollar Loans of any Lender being made
to the Borrowers and outstanding under this Agreement at any
15
one time. For purposes of the foregoing, Loans having different Interest
Periods, regardless of whether they commence on the same date, shall be
considered separate Loans.
(c) Except as otherwise provided in Section 2.10, each Lender
shall make each Loan that is (A) an ABR Loan or (B) a Eurodollar Loan, to be
made by it hereunder on the proposed date thereof by wire transfer of
immediately available funds to the Administrative Agent in New York, New York,
not later than 1:00 p.m., New York City time, and the Administrative Agent shall
by 3:00 p.m., New York City time, credit the amounts so received to the general
deposit account of the Borrower to which such Loan is to be made with Mellon
Bank, N.A., or such other account as such Borrower may designate in a written
notice to the Administrative Agent, or, if such Loans are not made on such date
because any condition precedent to a Borrowing herein specified shall not have
been met, return the amounts so received to the respective Lenders. Unless the
Administrative Agent shall have received notice from a Lender prior to the date
of any Borrowing that such Lender will not make available to the Administrative
Agent such Lender's portion of such Borrowing, the Administrative Agent may
assume that such Lender has made such portion available to the Administrative
Agent on the date of such Borrowing in accordance with this paragraph (c) and
the Administrative Agent may, in reliance upon such assumption, make available
to the applicable Borrower on such date a corresponding amount. If and to the
extent that such Lender shall not have made such portion available to the
Administrative Agent, such Lender and the applicable Borrower severally agree to
repay to the Administrative Agent forthwith on demand such corresponding amount
together with interest thereon, for each day from the date such amount is made
available to such Borrower until the date such amount is repaid to the
Administrative Agent, at (i) in the case of such Borrower, the interest rate
applicable at the time to the Loans comprising such Borrowing and (ii) in the
case of such Lender, a rate determined by the Administrative Agent to represent
its cost of overnight or short-term funds (which determination shall be
conclusive absent manifest error). If such Lender shall repay to the
Administrative Agent such corresponding amount, such amount shall constitute
such Lender's Loan as part of such Borrowing for purposes of this Agreement.
(d) Notwithstanding any other provision of this Agreement, no
Borrower shall be entitled to request any Borrowing if the Interest Period
requested with respect thereto would end after the Maturity Date.
SECTION 2.03. Notice of Borrowings. In order to request a
Borrowing, a Borrower shall give written or telecopy notice (or telephone notice
promptly confirmed in writing or by telecopy) (a) in the case of an ABR
Borrowing, to the Administrative Agent not later than 12:00 noon, New York City
time, on the Business Day of such proposed Borrowing, (b) in the case of a
Eurodollar Borrowing, to the Administrative Agent not later than 10:00 a.m., New
York City time, three Business Days before such proposed Borrowing. Such notice
shall be irrevocable and shall in each case refer to this Agreement, identify
the applicable Borrower and specify (i) whether such Borrowing is to be a
Eurodollar Borrowing or an ABR Borrowing; (ii)
16
the date of such Borrowing (which shall be a Business Day) and the amount
thereof; and (iii) if such Borrowing is to be a Eurodollar Borrowing, the
Interest Period with respect thereto. If no election as to the Type of Borrowing
is specified in any such notice, then the requested Borrowing shall be an ABR
Borrowing. If no Interest Period with respect to any Eurodollar Borrowing is
specified in any such notice, then the Borrower giving the notice of Borrowing
shall be deemed to have selected an Interest Period of one month's duration. If
a Borrower shall not have given notice in accordance with this Section 2.03 of
its election to refinance a Borrowing prior to the end of the Interest Period in
effect for such Borrowing, then the Borrower shall (unless such Borrowing is
repaid at the end of such Interest Period) be deemed to have given notice of an
election to refinance such Borrowing with an ABR Borrowing. The Administrative
Agent shall promptly advise the Lenders of any notice given pursuant to this
Section 2.03 and of each Lender's portion of the requested Borrowing.
SECTION 2.04. Evidence of Debt; Repayment of Loans. (a) The
outstanding principal balance of each Loan shall be payable on the earlier of
the last day of the Interest Period applicable to such Loan or the Maturity
Date.
(b) Each Lender shall maintain in accordance with its usual
practice an account or accounts evidencing the indebtedness of each Borrower to
such Lender resulting from each Loan made by such Lender from time to time,
including the amounts of principal and interest payable and paid such Lender
from time to time under this Agreement.
(c) The Administrative Agent shall maintain accounts in which
it will record (i) the amount of each Loan made to a Borrower hereunder, (ii)
the Type of each such Loan and the Interest Period applicable thereto, (iii) the
amount of any principal or interest due and payable or to become due and payable
from the applicable Borrower to each Lender hereunder and (iv) the amount of any
sum received by the Administrative Agent hereunder from any Borrower and each
Lender's share thereof.
(d) The entries made in the accounts maintained pursuant to
paragraphs (b) and (c) above shall be prima facie evidence of the existence and
amounts of the obligations therein recorded; provided, however, that the failure
of any Lender or the Administrative Agent to maintain such accounts or any error
therein shall not in any manner affect the obligation of any Borrower to repay
the Loans in accordance with their terms.
(e) Notwithstanding any other provision of this Agreement, in
the event any Lender shall request a promissory note evidencing the Loans made
by it hereunder to Alcoa or any Borrowing Subsidiary, the Borrower shall deliver
such a note, satisfactory to the Administrative Agent, payable to such Lender
and its registered assigns, and the interests represented by such note shall at
all times (including after any assignment of all or part of such interests
pursuant to Section 10.04) be represented by one or more promissory notes
payable to the payee named therein or its registered assigns.
17
SECTION 2.05. Fees. (a) Alcoa will pay to each Lender, through
the Administrative Agent, on the last day of March, June, September and December
in each year, and on the date on which the Commitment of such Lender shall be
terminated as provided herein, a facility fee (the "Facility Fee") at a rate per
annum equal to the Facility Fee Percentage from time to time in effect on the
aggregate amount of the Commitment of such Lender, whether used or unused, from
time to time in effect during the preceding quarter (or shorter period
commencing with the date hereof or ending with the Maturity Date or the date on
which the Commitment of such Lender shall be terminated). All Facility Fees
shall be computed on the basis of the actual number of days elapsed in a year of
360 days. The Facility Fee due to each Lender shall commence to accrue on the
date hereof and shall cease to accrue on the date on which the Commitment of
such Lender shall be terminated as provided herein.
(b) Alcoa agrees to pay to the Administrative Agent, for its
own account, the fees provided for in the Engagement Letter (the "Engagement
Fees") at the times provided therein.
(c) All Fees shall be paid on the dates due, in immediately
available funds, to the Administrative Agent, for distribution, if and as
appropriate, among the Lenders. Once paid, the Fees shall not be refundable
except in the case of an error which results in the payment of Fees in excess of
those due and payable as of such date, in which case the Administrative Agent
shall cause a refund in the amount of such excess to be paid to Alcoa.
SECTION 2.06. Interest on Loans. (a) Subject to the provisions
of Section 2.07, the unpaid principal amount of the Loans comprising each ABR
Borrowing shall bear interest for each day (computed on the basis of the actual
number of days elapsed over a year of 365 or 366 days, as the case may be, when
the Alternate Base Rate is determined by reference to the Prime Rate and over a
year of 360 days at all other times) at a rate per annum equal to the Alternate
Base Rate.
(b) Subject to the provisions of Section 2.07, the unpaid
principal amount of the Loans comprising each Eurodollar Borrowing shall bear
interest (computed on the basis of the actual number of days elapsed over a year
of 360 days) at a rate per annum equal to the LIBO Rate for the Interest Period
in effect for such Borrowing plus the Applicable Margin.
(c) Interest on each Loan shall be payable on the Interest
Payment Dates applicable to such Loan except as otherwise provided in this
Agreement. Interest shall accrue from and including the first day of an Interest
Period to but excluding the last day of such Interest Period. The applicable
LIBO Rate or Alternate Base Rate for each Interest Period or day within an
Interest Period, as the case may be, shall be determined by the Administrative
Agent, and such determination shall be conclusive absent manifest error.
18
SECTION 2.07. Default Interest. If any Borrower shall default
in the payment of the principal of or interest on any Loan or any other amount
becoming due hereunder, by acceleration or otherwise, such Borrower shall on
demand from time to time pay interest, to the extent permitted by law, on such
defaulted amount up to (but not including) the date of actual payment (after as
well as before judgment) at a rate per annum equal to (a) in the case of overdue
principal of any Loan, the rate otherwise applicable to such Loan as provided in
Section 2.06 plus 2% per annum, or (b) in the case of any other amount, the rate
applicable to ABR Borrowings plus 2% per annum.
SECTION 2.08. Alternate Rate of Interest. In the event, and on
each occasion, that on the day two Business Days prior to the commencement of
any Interest Period for a Eurodollar Loan, the Administrative Agent shall have
determined in good faith that dollar deposits in the principal amounts of the
Loans comprising such Borrowing are not generally available in the London
interbank market or other market in which Lenders ordinarily raise dollars to
fund Loans of the requested Type, or that the rates at which such dollar
deposits are being offered will not adequately and fairly reflect the cost to
any Lender of making or maintaining its Eurodollar Loan during such Interest
Period, or that reasonable means do not exist for ascertaining the LIBO Rate,
then the Administrative Agent shall, as soon as practicable thereafter, give
written or telecopy notice of such determination to the relevant Borrower and
Lenders. In the event of any such determination, any request made by a Borrower
after the date of such notice for a Eurodollar Borrowing pursuant to Section
2.03 or 2.10 shall, until the Administrative Agent shall have advised the
Borrowers and the Lenders that the circumstances giving rise to such notice no
longer exist, be deemed to be a request for an ABR Borrowing. Each determination
by the Administrative Agent hereunder shall be conclusive absent manifest error.
SECTION 2.09. Termination and Reduction of Commitments. (a)
The Commitments shall be automatically terminated on the Maturity Date.
(b) Upon at least 10 Business Days' prior irrevocable, written
or telecopy notice to the Administrative Agent, Alcoa may at any time in whole
permanently terminate, or from time to time in part permanently reduce, the
Total Commitment; provided, however, that (i) each partial reduction shall be in
an integral multiple of $1,000,000 and in a minimum principal amount of
$10,000,000 and (ii) the Total Commitment shall not be reduced to an amount that
is less than the aggregate principal amount of the outstanding Loans (after
giving effect to any simultaneous prepayment pursuant to Section 2.11).
(c) Each reduction in Commitments hereunder shall be made
ratably among the Lenders in accordance with each such Lender's Pro Rata
Percentage of the Total Commitment. Alcoa shall pay to the Administrative Agent
for the account of the applicable Lenders, on the date of each such termination
or reduction, the Facility Fees on the amount of the Commitments so terminated
or reduced accrued to the date of such termination or reduction.
19
SECTION 2.10. Refinancings. Any Borrower may refinance all or
any part of any Loan made to it with a Loan of the same or a different Type made
pursuant to the same Commitments, subject to the conditions and limitations set
forth in this Agreement. Any Borrowing or part thereof so refinanced shall be
deemed to have been repaid or prepaid in accordance with Section 2.04 or 2.11,
as applicable, with the proceeds of a new Borrowing; and the proceeds of the new
Borrowing, to the extent they do not exceed the principal amount of the
Borrowing being refinanced, shall not be paid by the applicable Lenders to the
Administrative Agent or by the Administrative Agent to the applicable Borrower
pursuant to Section 2.02(c).
SECTION 2.11. Prepayment. (a) Each Borrower shall have the
right at any time and from time to time to prepay any Borrowing, in whole or in
part, upon at least three Business Days' prior written or telecopy notice (or
telephone notice promptly confirmed by written or telecopy notice) to the
Administrative Agent; provided, however, that each partial prepayment shall be
in an amount which is an integral multiple of $1,000,000 and not less than
$10,000,000.
(b) On the date of any termination or reduction of any
Commitments pursuant to Section 2.09, the Borrowers shall pay or prepay so much
of the Loans, as shall be necessary in order that, after giving effect to such
reduction or termination, the aggregate principal amount of the outstanding
Loans shall not exceed the Total Commitment.
(c) Each notice of prepayment shall specify the prepayment
date and the principal amount of each Loan (or portion thereof) to be prepaid,
shall be irrevocable and shall commit the applicable Borrower to prepay the Loan
to which such notice relates by the amount stated therein on the date stated
therein. All prepayments under this Section 2.11 shall be subject to Section
2.14 but otherwise without premium or penalty. All prepayments under this
Section 2.11 shall be accompanied by accrued interest on the principal amount
being prepaid to the date of payment.
SECTION 2.12. Reserve Requirements; Change in Circumstances.
(a) Notwithstanding any other provision herein other than Section 2.14(c), if
after the date of this Agreement any change in applicable law or regulation or
in the interpretation or administration thereof by any Governmental Authority
charged with the interpretation or administration thereof (whether or not having
the force of law) shall change the basis of taxation of payments to any Lender
of the principal of or interest on any Eurodollar Loan made by such Lender or
any Fees or other amounts payable hereunder (other than changes in respect of
taxes imposed on the overall net income of such Lender by the jurisdiction in
which such Lender has its principal office or by any political subdivision or
taxing authority therein), or shall impose, modify or deem applicable any
reserve, special deposit or similar requirement against assets of, deposits with
or for the account of or credit extended by such Lender (except any such reserve
requirement which is reflected in the LIBO Rate or the Base CD Rate) or shall
impose on such Lender or the London interbank market or other market in which
Lenders ordinarily raise dollars to fund Loans of the requested Type any other
condition affecting this Agreement or
20
Eurodollar Loans made by such Lender, and the result of any of the foregoing
shall be to increase the cost to such Lender of funding, making or maintaining
any Eurodollar Loan or to reduce the amount of any sum received or receivable by
such Lender hereunder (whether of principal, interest or otherwise) by an amount
deemed by such Lender to be material, then Alcoa will pay or cause the other
Borrowers to pay to such Lender upon demand such additional amount or amounts as
will compensate such Lender for such additional costs incurred or reduction
suffered.
(b) If any Lender shall have determined that the applicability
of any law, rule, regulation, agreement or guideline adopted after the date of
this Agreement pursuant to the July 1988 report of the Basle Committee on
Banking Regulations and Supervisory Practices entitled "International
Convergence of Capital Measurement and Capital Standards", or the adoption after
the date hereof of any other law, rule, regulation, agreement or guideline
regarding capital adequacy, or any change in any of the foregoing or in the
interpretation or administration of any of the foregoing by any governmental
authority, central bank or comparable agency charged with the interpretation or
administration thereof, or compliance by any Lender (or any lending office of
such Lender) or any Lender's holding company with any request or directive
regarding capital adequacy (whether or not having the force of law) of any such
authority, central bank or comparable agency, has or would have the effect of
reducing the rate of return on such Lender's capital or on the capital of such
Lender's holding company, if any, as a consequence of this Agreement or the
Loans made by such Lender pursuant hereto to a level below that which such
Lender or such Lender's holding company could have achieved but for such
applicability, adoption, change or compliance (taking into consideration such
Lender's policies and the policies of such Lender's holding company with respect
to capital adequacy) by an amount deemed by such Lender to be material, then
from time to time Alcoa shall pay or cause the other Borrowers to pay to such
Lender such additional amount or amounts as will compensate such Lender or such
Lender's holding company for any such reduction suffered.
(c) A certificate of each Lender setting forth such amount or
amounts as shall be necessary to compensate such Lender or its holding company
as specified in paragraph (a) or (b) above, as the case may be, together with a
statement of reasons for such demand and showing the calculation for such
amounts shall be delivered to Alcoa and shall be conclusive absent manifest
error. Alcoa shall pay or cause to be paid to each Lender the amount shown as
due on any such certificate delivered by it within 10 days after its receipt of
the same.
(d) Except as provided in this paragraph, failure on the part
of any Lender to demand compensation for any increased costs or reduction in
amounts received or receivable or reduction in return on capital with respect to
any period shall not constitute a waiver of such Lender's right to demand
compensation with respect to such period or any other period. The protection of
this Section 2.12 shall be available to each Lender regardless of any possible
contention of the invalidity or inapplicability of the law, rule, regulation,
guideline or other change or condition which shall have occurred or been
imposed. No Lender shall be entitled to compensation under this
21
Section 2.12 for any costs incurred or reductions suffered with respect to any
date unless it shall have notified Alcoa that it will demand compensation for
such costs or reductions under paragraph (c) above not more than 60 days after
the later of (i) such date and (ii) the date on which it shall have or
reasonably should have become aware of such costs or reductions. In the event a
Borrower shall reimburse any Lender pursuant to this Section 2.12 for any cost
and the Lender shall subsequently receive a refund in respect thereof, the
Lender shall so notify such Borrower and shall pay to such Borrower the portion
of such refund which it shall determine in good faith to be allocable to the
cost so reimbursed.
SECTION 2.13. Change in Legality. (a) Notwithstanding any
other provision herein other than Section 2.14(c), if any change in any law or
regulation or in the interpretation thereof by any Governmental Authority
charged with the administration or interpretation thereof shall make it unlawful
for any Lender to make or maintain any Eurodollar Loan or to give effect to its
obligations as contemplated hereby with respect to any Eurodollar Loan, then, by
written or telecopy notice to Alcoa and the Administrative Agent, such Lender
may:
(i) declare that Eurodollar Loans will not
thereafter be made by such Lender hereunder, whereupon any
request by a Borrower for a Eurodollar Borrowing shall, as to
such Lender only, be deemed a request for an ABR Loan unless
such declaration shall be subsequently withdrawn; and
(ii) require that all outstanding Eurodollar Loans
made by it be converted to ABR Loans, in which event all such
Eurodollar Loans shall automatically be so converted as of the
effective date of such notice as provided in paragraph (b)
below.
In the event any Lender shall exercise its rights under clause (i) or (ii)
above, all payments and prepayments of principal which would otherwise have been
applied to repay the Eurodollar Loans that would have been made by such Lender
or the converted Eurodollar Loans of such Lender shall instead be applied to
repay the Loans made by such Lender in lieu of, or resulting from the conversion
of, such Eurodollar Loans.
(b) For purposes of this Section 2.13, a notice by any Lender
shall be effective as to each Eurodollar Loan, if lawful, on the last day of the
Interest Period applicable to such Eurodollar Loan; in all other cases such
notice shall be effective on the date of receipt.
SECTION 2.14. Indemnity. Alcoa shall indemnify or cause the
other Borrowers to indemnify each Lender against any loss or expense which such
Lender may sustain or incur as a consequence of (a) any failure to fulfill on
the date of any borrowing hereunder the applicable conditions set forth in
Article IV, (b) any failure by a Borrower to borrow or refinance any Loan
hereunder after irrevocable notice of such
22
borrowing or refinancing has been given pursuant to Section 2.03, (c) any
payment, prepayment or refinancing of a Eurodollar Loan required by any other
provision of this Agreement or otherwise made or deemed made on a date other
than the last day of the Interest Period applicable thereto, other than any loss
of profit resulting from any event, circumstance or condition set forth in
Section 2.12 or 2.13, (d) any default in payment or prepayment of the principal
amount of any Loan or any part thereof or interest accrued thereon, as and when
due and payable (at the due date thereof, whether by scheduled maturity,
acceleration, irrevocable notice of prepayment or otherwise) or (e) the
occurrence of any Event of Default, including, in each such case, any loss or
reasonable expense sustained or incurred or to be sustained or incurred in
liquidating or employing deposits from third parties acquired to effect or
maintain such Loan or any part thereof as a Eurodollar Loan. Such loss or
reasonable expense shall include an amount equal to the excess, if any, as
reasonably determined by such Lender, of (i) its cost of obtaining the funds for
the Loan being paid, prepaid, refinanced or not borrowed (assumed to be the LIBO
Rate applicable thereto) for the period from the date of such payment,
prepayment, refinancing or failure to borrow or refinance to the last day of the
Interest Period for such Loan (or, in the case of a failure to borrow or
refinance the Interest Period for such Loan which would have commenced on the
date of such failure) over (ii) the amount of interest (as reasonably determined
by such Lender) that would be realized by such Lender in reemploying the funds
so paid, prepaid or not borrowed or refinanced for such period or Interest
Period, as the case may be. A certificate of any Lender setting forth any amount
or amounts which such Lender is entitled to receive pursuant to this Section
together with a statement of reasons for such demand and the calculation of such
amount or amounts shall be delivered to Alcoa and shall be conclusive absent
manifest error.
SECTION 2.15. Pro Rata Treatment. Except as required under
Section 2.13, each Borrowing, each payment or prepayment of principal of any
Borrowing, each payment of interest on the Loans, each payment of the Facility
Fees, each reduction of Commitments and each conversion or continuation of any
Borrowing with a Borrowing of any Type shall be allocated pro rata among the
Lenders in accordance with their respective applicable Commitments (or, if such
Commitments shall have expired or been terminated, in accordance with the
respective principal amounts of their applicable outstanding Loans). Each Lender
agrees that in computing such Lender's portion of any Borrowing to be made
hereunder, the Administrative Agent may, in its discretion, round each Lender's
percentage of such Borrowing, computed in accordance with Schedule 2.01, to the
next higher or lower whole dollar amount.
SECTION 2.16. Sharing of Setoffs. Each Lender agrees that if
it shall, through the exercise of a right of banker's lien, setoff or
counterclaim against any Borrower, or pursuant to a secured claim under Section
506 of Title 11 of the United States Code or other security or interest arising
from, or in lieu of, such secured claim, received by such Lender under any
applicable bankruptcy, insolvency or other similar law or otherwise, or by any
other means, obtain payment (voluntary or involuntary) in respect of any Loan or
Loans as a result of which the unpaid principal portion of its Loans shall be
proportionately less than the unpaid principal portion of the Loans of
23
any other Lender, it shall be deemed simultaneously to have purchased from such
other Lender at face value, and shall promptly pay to such other Lender the
purchase price for, a participation in the Loans of such other Lender, so that
the aggregate unpaid principal amount of the Loans and participations in Loans
held by each Lender shall be in the same proportion to the aggregate unpaid
principal amount of all Loans then outstanding as the principal amount of its
Loans prior to such exercise of banker's lien, setoff or counterclaim or other
event was to the principal amount of all Loans outstanding prior to such
exercise of banker's lien, setoff or counterclaim or other event; provided,
however, that, if any such purchase or purchases or adjustments shall be made
pursuant to this Section and the payment giving rise thereto shall thereafter be
recovered, such purchase or purchases or adjustments shall be rescinded to the
extent of such recovery and the purchase price or prices or adjustment restored
without interest. Alcoa and each other Borrower expressly consent to the
foregoing arrangements and agree that any Lender holding a participation in a
Loan deemed to have been so purchased may exercise any and all rights of
banker's lien, setoff or counterclaim with respect to any and all moneys owing
by Alcoa or such other Borrower to such Lender by reason thereof as fully as if
such Lender had made a Loan directly to Alcoa or such Borrower in the amount of
such participation.
SECTION 2.17. Payments. (a) Each payment or prepayment by any
Borrower of the principal of or interest on any Loans, any Fees payable to the
Administrative Agent or the Lenders or any other amounts due hereunder (other
than amounts referred to in clause (b) below) shall be made, without setoff or
counterclaim, not later than 12:00 (noon), New York City time, on the date when
due in dollars to the Administrative Agent at its offices at ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇,
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇, in immediately available funds.
(b) Whenever any payment (including principal of or interest
on any Borrowing or any Fees or other amounts) hereunder shall become due, or
otherwise would occur, on a day that is not a Business Day, such payment may be
made on the next succeeding Business Day, and such extension of time shall in
such case be included in the computation of interest or Fees, if applicable.
SECTION 2.18. Taxes. (a) Any and all payments by or on behalf
of a Borrower hereunder shall be made free and clear of and without deduction
for any and all present or future taxes, levies, imposts, deductions, charges or
withholdings, and all liabilities with respect thereto, excluding taxes imposed
on the net income of the Administrative Agent or any Lender (or any transferee
or assignee thereof, including a participation holder (any such entity a
"Transferee")) and franchise taxes imposed on the Administrative Agent or any
Lender (or Transferee) in each case by the United States or any jurisdiction
under the laws of which the Administrative Agent or any such Lender (or
Transferee) is organized or any political subdivision thereof (all such
nonexcluded taxes, levies, imposts, deductions, charges, withholdings and
liabilities, collectively or individually, "Taxes"). If any Borrower shall be
required by law to deduct any Taxes from or in respect of any sum payable
hereunder to the Lenders (or any Transferee) or the Administrative Agent, (i)
the sum payable shall be increased by
24
the amount necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section 2.18) such
Lender (or Transferee) or the Administrative Agent (as the case may be) shall
receive an amount equal to the sum it would have received had no such deductions
been made, (ii) such Borrower shall make such deductions and (iii) such Borrower
shall pay the full amount deducted to the relevant taxing authority or other
Governmental Authority in accordance with applicable law; provided, however,
that no Transferee of any Lender shall be entitled to receive any greater
payment under this paragraph (a) than such Lender would have been entitled to
receive immediately before assignment, participation or other transfer with
respect to the rights assigned, participated or transferred unless such
assignment, participation or transfer shall have been made (A) prior to the
occurrence of an event (including any change in treaty, law or regulation)
giving rise to such greater payment or (B) at the request of Alcoa.
(b) In addition, each Borrower agrees to pay any present or
future stamp or documentary taxes or any other excise or property taxes, charges
or similar levies which arise from any payment made hereunder or from the
execution, delivery or registration of, or otherwise with respect to, this
Agreement (hereinafter referred to as "Other Taxes").
(c) Each Borrower will indemnify each Lender (or Transferee)
and the Administrative Agent for the full amount of Taxes and Other Taxes paid
by such Lender (or Transferee) or the Administrative Agent, as the case may be,
and any liability (including penalties, interest and expenses) arising therefrom
or with respect thereto, whether or not such Taxes or Other Taxes were correctly
or legally asserted by the relevant taxing authority or other Governmental
Authority. Such indemnification shall be made within 30 days after the date any
Lender (or Transferee) or the Administrative Agent, as the case may be, makes
written demand therefor, together with a statement of reasons for such demand
and the calculations of such amount.
(d) Within 30 days after the date of any payment of Taxes or
Other Taxes withheld by any Borrower in respect of any payment to any Lender (or
Transferee) or the Administrative Agent, such Borrower will furnish to the
Administrative Agent, at its address referred to in Section 10.01, the original
or a certified copy of a receipt evidencing payment thereof.
(e) Without prejudice to the survival of any other agreement
contained herein, the agreements and obligations contained in this Section 2.18
shall survive the payment in full of the principal of and interest on all Loans
made hereunder.
(f) Each Lender (or Transferee) represents to Alcoa that, on
the date such Lender (or such Transferee) becomes a party to this Agreement, it
is eligible to receive payments of interest hereunder from Alcoa or any
Borrowing Subsidiary without withholding in respect of United States Federal
withholding tax (except, in the case of a Transferee of any Lender, as a result
of the occurrence of an event (including
25
a change in treaty, law or regulation) after the date of this Agreement giving
rise to withholding to which such Lender would be subject).
(g) Each Lender (or Transferee, other than a Transferee
described in the exception in Section 2.18(f)) that is organized under the laws
of a jurisdiction outside the United States shall, on or before the date it
becomes a party to this Agreement (or, in the case of a Transferee that is a
participation holder, on or before the date such Transferee becomes a
participation holder hereunder), deliver to Alcoa and the Administrative Agent
such certificates, documents or other evidence, as required by the Code or
Treasury Regulations issued pursuant thereto, including Internal Revenue Service
Form W8-BEN, Form W-8ECI, or any other certificate or statement of exemption
required by Treasury Regulation Section 1.1441-1, 1.1441-4 or 1.1441-6(c) or any
subsequent version thereof or successors thereto, properly completed and duly
executed by such Lender (or Transferee) establishing that payment is (i) not
subject to United States Federal withholding tax under the Code because such
payments are effectively connected with the conduct by such Lender (or
Transferee) of a trade or business in the United States or (ii) totally exempt
from United States Federal withholding tax under a provision of an applicable
tax treaty. In addition, each such Lender (or such Transferee) shall, if legally
able to do so, thereafter deliver such certificates, documents or other evidence
from time to time establishing that payments received hereunder are not subject
to such withholding upon receipt of a written request therefor from Alcoa or the
Administrative Agent. Unless Alcoa and the Administrative Agent have received
forms or other documents satisfactory to them indicating that payments hereunder
are not subject to United States Federal withholding tax, Alcoa or the
Administrative Agent shall withhold such taxes from such payments at the
applicable statutory rate, subject to Section 2.18(a).
(h) None of the Borrowers shall be required to pay any
additional amounts to any Lender (or Transferee) in respect of United States
Federal withholding tax pursuant to paragraph (a) above to the extent that the
obligation to pay such additional amounts would not have arisen but for a
failure by such Lender (or Transferee) to deliver the certificates, documents or
other evidence required to be delivered under the preceding paragraph (g) unless
such failure is attributable to (i) a change in applicable law, regulation or
official interpretation thereof or (ii) an amendment or modification to or a
revocation of any applicable tax treaty or a change in official position
regarding the application or interpretation thereof, in each case on or after
the date such Lender (or Transferee) became a party to this Agreement.
(i) Any Lender (or Transferee) claiming any additional amounts
payable pursuant to this Section 2.18 shall use reasonable efforts (consistent
with legal and regulatory restrictions) to file any certificate or document
requested in writing by the relevant Borrower or to change the jurisdiction of
its applicable lending office if the making of such a filing or change would
avoid the need for or reduce the amount of any such additional amounts which may
thereafter accrue and would not, in the sole determination of such Lender (or
Transferee), be otherwise disadvantageous to such Lender (or Transferee).
26
(j) If a Lender (or Transferee) or the Administrative Agent
shall become aware that it may be entitled to receive a refund in respect of
Taxes or Other Taxes as to which it has been indemnified by a Borrower pursuant
to this Section 2.18, it shall promptly notify Alcoa of the availability of such
refund and shall, within 30 days after receipt of a request by Alcoa, apply for
such refund at Alcoa's expense. If any Lender (or Transferee) or the
Administrative Agent receives a refund in respect of any Taxes or Other Taxes as
to which it has been indemnified by a Borrower pursuant to this Section 2.18, it
shall promptly repay such refund to such Borrower (to the extent of amounts that
have been paid by such Borrower under this Section 2.18 with respect to such
refund), net of all out-of-pocket expenses (including taxes imposed with respect
to such refund) of such Lender (or Transferee) or the Administrative Agent and
without interest; provided, however, that such Borrower, upon the request of
such Lender (or Transferee) or the Administrative Agent, agrees to return such
refund (plus penalties, interest or other charges) to such Lender (or
Transferee) or the Administrative Agent in the event such Lender (or Transferee)
or the Administrative Agent is required to repay such refund.
(k) Nothing contained in this Section 2.18 shall require any
Lender (or Transferee) or the Administrative Agent to make available any of its
tax returns (or any other information relating to its taxes which it deems to be
confidential).
(l) No Borrower shall be required to reimburse any Lender (or
Transferee) or the Administrative Agent with respect to any Tax or Other Tax
unless such Lender, Transferee or the Administrative Agent notifies such
Borrower of the amount of such Tax or Other Tax on or before the second
anniversary of the date such Lender, Transferee or the Administrative Agent pays
such Tax or Other Tax.
SECTION 2.19. Assignment of Commitments Under Certain
Circumstances. In the event that any Lender shall have delivered a notice or
certificate pursuant to Section 2.12 or 2.13, or a Borrower shall be required to
make additional payments to any Lender under Section 2.18, Alcoa shall have the
right, at its own expense, upon notice to such Lender and the Administrative
Agent, to require such Lender to transfer and assign without recourse (in
accordance with and subject to the restrictions contained in Section 10.04) all
its interests, rights and obligations under this Agreement to another financial
institution which shall assume such obligations; provided, however, that (i) no
such assignment shall conflict with any law, rule or regulation or order of any
Governmental Authority and (ii) Alcoa or the assignee, as the case may be, shall
pay (or, in the case of Alcoa, cause another Borrower to pay) to the affected
Lender in immediately available funds on the date of such termination or
assignment the principal of and interest accrued to the date of payment on the
Loans made by it hereunder and all other amounts accrued for its account or owed
to it hereunder.
27
ARTICLE III. REPRESENTATIONS AND WARRANTIES
Each Borrower represents and warrants to each of the Lenders
with respect to itself as follows (except that the Borrowing Subsidiaries make
no representations or warranties under Section 3.06 or 3.09):
SECTION 3.01. Organization. Such Borrower is a corporation
duly organized, validly existing and, where applicable, in good standing under
the laws of its jurisdiction of incorporation and is duly qualified to do
business as a foreign corporation and, where applicable, is in good standing in
all other jurisdictions in which the ownership of its properties or the nature
of its activities or both makes such qualification necessary, except to the
extent that failure to be so qualified would not result in a Material Adverse
Effect.
SECTION 3.02. Authorization. Such Borrower has corporate power
and authority to execute, deliver and carry out the provisions of this Agreement
to which it is a party, to borrow hereunder and to perform its obligations
hereunder and all such action has been duly and validly authorized by all
necessary corporate proceedings on its part.
SECTION 3.03. Enforceability. This Agreement has been duly
executed and delivered by such Borrower and constitutes the legal, valid and
binding obligation of such Borrower enforceable in accordance to its terms,
except as limited by bankruptcy, insolvency or other similar laws of general
application affecting the enforcement of creditors' rights or by general
principles of equity limiting the availability of equitable remedies.
SECTION 3.04. Governmental Approvals. No authorization,
consent, approval, license exemption or other action by, and no registration,
qualification, designation, declaration or filing with, any Governmental
Authority is necessary in connection with such Borrower's execution and delivery
of this Agreement, the consummation by any Borrower of the transactions
contemplated hereby or such Borrower's performance of or compliance with the
terms and conditions hereof, except as set forth on Schedule 3.04.
SECTION 3.05. No Conflict. None of the execution and delivery
by such Borrower of this Agreement, the consummation by such Borrower of the
transactions contemplated hereby or performance by such Borrower of or
compliance by such Borrower with the terms and conditions hereof or thereof will
(a) violate any law, constitution, statute, treaty, regulation, rule, ordinance,
order, injunction, writ, decree or award of any Governmental Authority to which
it is subject, (b) conflict with or result in a breach or default under its
charter or Memorandum and Articles of Association or by-laws, as applicable, (c)
conflict with or result in a breach or default which is material in the context
of this Agreement under any agreement or instrument to which such Borrower is a
party or by which it or any of its properties, whether now owned or hereafter
acquired, may be subject or bound or (d) result in the creation or
28
imposition of any Lien prohibited by Section 6.01 upon any property or assets,
whether now owned or hereafter acquired, of such Borrower.
SECTION 3.06. Financial Statements. In the case of Alcoa, it
has furnished to the Lenders copies of its consolidated balance sheet as of
December 31, 2000, and the related consolidated statements of income and cash
flow for the year then ended, all examined and certified by
PricewaterhouseCoopers, L.L.P. Such financial statements (including the notes
thereto) present fairly the financial condition of Alcoa and its Subsidiaries as
of such dates and the results of their operations for the periods then ended,
all in conformity with GAAP, subject (in the case of the interim financial
statements) to year-end audit adjustments.
SECTION 3.07. No Defaults. No event has occurred and is
continuing and no condition exists which constitutes a Default or Event of
Default hereunder. Such Borrower is not in violation of (i) any term of its
charter or Constitution or by-laws, as applicable, or (ii) any material
agreement or instrument to which it is a party or by which it or any of its
properties may be subject or bound where such violation is likely to result in a
Material Adverse Effect.
SECTION 3.08. Litigation. Except as set forth in the financial
statements referred to in Section 3.06 or any Exchange Act Report or otherwise
disclosed on Schedule 3.08, there is no pending or, to the knowledge of any of
its Responsible Officers, threatened proceeding by or before any Governmental
Authority against it which in the opinion of its counsel is likely to result in
a Material Adverse Effect. Except as set forth in the financial statements
referred to in Section 3.06 or any Exchange Act Report or otherwise disclosed in
Schedule 3.08, there is no pending or, to the knowledge of any of its
Responsible Officers, threatened proceeding by or before any Governmental
Authority against any of its Subsidiaries which in the opinion of its counsel is
likely to result in a Material Adverse Effect.
SECTION 3.09. No Material Adverse Change. As of the date of
this Agreement, there has been no material adverse change in the business,
assets, operations or financial condition of itself and its Subsidiaries, taken
as a whole except, in the case of Alcoa and the Borrowing Subsidiaries, as
disclosed in any Exchange Act Report since December 31, 2000.
SECTION 3.10. Employee Benefit Plans. (a) U.S. Plans. It and
each of its ERISA Affiliates is in compliance in all material respects with the
applicable provisions of ERISA and the regulations and published interpretations
thereunder. No Reportable Event has occurred as to which such Borrower or any
ERISA Affiliate was required to file a report with the PBGC that alone or
together with any other Reportable Event would reasonably be expected to result
in a liability of such Borrower to the PBGC in an aggregate amount in excess of
$25,000,000. The aggregate present value of all benefit liabilities under the
Plans (based on the assumptions used to fund such Plans) did not, as of the last
annual valuation dates applicable thereto, exceed the aggregate value of the
assets of the Plans by more than 10% of Consolidated Net
29
Worth. Neither such Borrower nor any ERISA Affiliate has incurred any Withdrawal
Liability that would reasonably be expected to result in a Material Adverse
Effect. Neither such Borrower nor any ERISA Affiliate has received any
notification that any Multiemployer Plan is in reorganization or has been
terminated within the meaning of Title IV of ERISA, and no Responsible Officer
of any Borrower has knowledge of any fact which would reasonably be expected to
result in the reorganization or termination of a Multiemployer Plan where such
reorganization or termination has resulted or would reasonably be expected to
result, through increases in the contributions required to be made to such Plan
or otherwise, in a Material Adverse Effect.
(b) Foreign Plans. Each Foreign Plan is in compliance in all
material respects with all requirements of law applicable thereto and the
respective requirements of the governing documents for such plan except to the
extent such non-compliance could not reasonably be expected to result in a
Material Adverse Effect. With respect to each Foreign Pension Plan, none of the
Borrowers, their respective Affiliates or any of their directors, officers,
employees or agents has engaged in a transaction which would subject any of the
Borrowers, directly or indirectly, to a material tax or civil penalty which
could reasonably be expected to result in a Material Adverse Effect. With
respect to each Foreign Pension Plan, none of the Borrowers, their respective
Affiliates or any of their directors, officers, employees or agents has engaged
in a transaction which would subject any of the Borrowers, directly or
indirectly, to a material tax or civil penalty which could reasonably be
expected to result in a Material Adverse Effect. With respect to each Foreign
Plan, adequate reserves have been established in the financial statements
furnished to Lenders in respect of any unfunded liabilities in accordance with
applicable law and prudent business practice or, where required, in accordance
with ordinary accounting practices in the jurisdiction in which such Foreign
Plan is maintained. The aggregate unfunded liabilities, after giving effect to
any such reserves for such liabilities, with respect to such Foreign Plans could
not reasonably be expected to result in a Material Adverse Effect. There are no
material actions, suits or claims (other than routine claims for benefits)
pending or threatened against any of the Borrowers or any of their Affiliates
with respect to any Foreign Plan which could reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Effect.
SECTION 3.11. Title to Properties; Possession Under Leases.
(a) Such Borrower and each of its Subsidiaries have good and marketable title
to, or valid leasehold interests in, all its material properties and assets,
except for minor defects in title that do not materially interfere with its
ability to conduct its business as currently conducted or to utilize such
properties and assets for their intended purposes.
(b) Such Borrower and each of its Subsidiaries have complied
with all material obligations under all material leases to which it is a party
and all such leases are in full force and effect. Such Borrower and its
Subsidiaries enjoy peaceful and undisturbed possession under all such material
leases.
30
SECTION 3.12. Investment Company Act; Public Utility Holding
Company Act. None of Alcoa or any Borrowing Subsidiary is an "investment
company" as defined in, or subject to regulation under, the Investment Company
Act of 1940. Alcoa is exempted as, and no Borrowing Subsidiary is, a "holding
company" as defined in, or subject to regulation under, the Public Utility
Holding Company Act of 1935.
SECTION 3.13. Tax Returns. Such Borrower and its Subsidiaries
have filed or caused to be filed all Federal, state, local and foreign tax
returns required to have been filed by it and have paid or caused to be paid all
taxes shown to be due and payable on such returns or on any assessments received
by it, except taxes that are being contested in good faith by appropriate
proceedings and for which adequate reserves are maintained in accordance with
GAAP.
SECTION 3.14. Compliance with Laws and Agreements. (a) Neither
such Borrower nor any of its Subsidiaries is in violation of any law, rule or
regulation, or in default with respect to any judgment, writ, injunction or
decree of any Governmental Authority, where such violation or default would
reasonably be expected to result in a Material Adverse Effect.
(b) Neither such Borrower nor any of its Subsidiaries is in
default in any material manner under any provision of any indenture or other
agreement or instrument evidencing Indebtedness, or any other material agreement
or instrument to which it is a party or by which it or any of its properties or
assets are or may be bound, where such default would be reasonably likely to
result in a Material Adverse Effect.
SECTION 3.15. No Material Misstatements. Except for
information not prepared by Alcoa and expressly disclaimed thereby, no report,
financial statement, exhibit or schedule furnished by or on behalf of such
Borrower to the Administrative Agent or any Lender in connection with the
negotiation of this Agreement or included herein or delivered pursuant thereto
contained or contains any material misstatement of fact or omitted or omits to
state any material fact necessary to make the statements therein, in the light
of the circumstances under which they were or are made, not misleading.
SECTION 3.16. Federal Reserve Regulations. The proceeds of any
Loan will be used to provide working capital or for other general corporate
purposes, including but not limited to the support of Alcoa's Commercial Paper
program. No part of the proceeds of any Loan to such Borrower will be used,
whether directly or indirectly, and whether immediately, incidentally or
ultimately, for any purpose that entails a violation of any of the Regulations
of the Board, including Regulations U and X.
SECTION 3.17. No Trusts. Such Borrower is not entering into
this Agreement in its capacity as trustee of any trust.
31
ARTICLE IV. CONDITIONS OF EFFECTIVENESS, LENDING AND DESIGNATION OF BORROWING
SUBSIDIARIES
The obligations of the Lenders to make Loans to any Borrower
hereunder are subject to the satisfaction of the conditions set forth in
Sections 4.01 and 4.02 below (and, in the case of Loans to any Borrowing
Subsidiary, the satisfaction, as to such Borrowing Subsidiary, of the conditions
set forth in Section 4.03 below):
SECTION 4.01. Effective Date. On the Effective Date:
(a) The Administrative Agent shall have received a written
opinion of ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, Counsel of Alcoa, dated the Effective Date and
addressed to the Lenders, to the effect set forth in Exhibit C hereto.
(b) All legal matters incident to this Agreement and the
borrowings hereunder shall be satisfactory to the Lenders and to Cravath, Swaine
& ▇▇▇▇▇, counsel for the Administrative Agent.
(c) The Administrative Agent shall have received (i) a copy,
including all amendments thereto, of the charter of Alcoa, certified as of a
recent date by the Secretary of State or other appropriate official of its
jurisdiction of incorporation and a certificate as to the good standing of Alcoa
as of a recent date, from such Secretary of State or other official; (ii) a
certificate of the Secretary or Assistant Secretary of Alcoa dated the Effective
Date and certifying (A) that attached thereto is a true and complete copy of the
by-laws of such corporation as in effect on the Effective Date showing all
amendments thereto since the date of the resolutions described in clause (B)
below, (B) that attached thereto is a true and complete copy of resolutions duly
adopted by the Board of Directors of such corporation authorizing the execution,
delivery and performance of this Agreement and the borrowings by such
corporation hereunder, and that such resolutions have not been modified,
rescinded or amended and are in full force and effect, (C) that the charter of
Alcoa has not been amended since the date of the last amendment thereto shown on
the certificate of good standing furnished pursuant to clause (i) above and (D)
as to the incumbency and specimen signature of each officer executing this
Agreement or any other document delivered in connection herewith on behalf of
such corporation; (iii) a certificate of another officer of each such
corporation as to the incumbency and specimen signature of the Secretary or
Assistant Secretary executing the certificate pursuant to (ii) above; and (iv)
such other documents as the Lenders or Cravath, Swaine & ▇▇▇▇▇, counsel for the
Administrative Agent may reasonably request.
(d) No loans shall be outstanding under the Existing 364-Day
Credit Agreement or the Existing Five-Year Credit Agreement.
(e) The Administrative Agent shall have received certificates
dated the Effective Date and signed by a Financial Officer of Alcoa confirming
the satisfaction of
32
the conditions precedent set forth in paragraph (d) of this Section 4.01 and
paragraphs (b) and (c) of Section 4.02.
(f) The Administrative Agent shall have received all Fees and
other amounts due and payable on or prior to the Effective Date, including all
Fees accrued to the date hereof under the Existing 364-Day Credit Agreement and
the Existing Five-Year Credit Agreement.
(g) The Administrative Agent shall have received certificates
of a Responsible Officer of Alcoa, each dated the Effective Date and stating
that (i) except as disclosed in the Exchange Act Report or otherwise disclosed
in such certificate, Alcoa and each of its Subsidiaries have complied in all
respects with all Federal, state, local and foreign statutes, ordinances,
orders, judgments, rulings and regulations relating to environmental pollution
or to environmental regulation or control except to the extent any such failure
so to comply would not, alone or together with any other such failure, be
reasonably likely to result in a Material Adverse Effect; (ii) neither Alcoa nor
any of its Subsidiaries has received notice of any failure so to comply which
alone or together with any other such failure would be reasonably likely to
result in a Material Adverse Effect; and (iii) the plants of Alcoa and its
Subsidiaries do not manage any hazardous wastes, toxic pollutants or substances
similarly denominated in violation of any applicable law or regulations
promulgated pursuant thereto including, for operations within the United States,
the Resource Conservation and Recovery Act, the Comprehensive Environmental
Response Compensation and Liability Act, the Hazardous Materials Transportation
Act, the Toxic Substance Control Act, the Clean Air Act, the Clean Water Act or
any other applicable law, where such violation would be reasonably likely to
result, individually or together with any such other violations, in a Material
Adverse Effect.
SECTION 4.02. All Borrowings. On the date of each Borrowing:
(a) Such Borrower shall have provided the notice as required
by Section 2.03.
(b) The representations and warranties set forth in Article
III hereof (except, in the case of a refinancing of any Loan that does not
increase the aggregate principal amount of Loans of any Lender outstanding, the
representations set forth in Sections 3.08 and 3.10) shall be true and correct
in all material respects on and as of the date of such Borrowing with the same
effect as though made on and as of such date, except to the extent such
representations and warranties expressly relate to an earlier date.
(c) Each Borrower shall be in compliance in all material
respects with all the terms and provisions set forth herein on its part to be
observed or performed, and at the time of and immediately after such Borrowing
no Event of Default or Default shall have occurred and be continuing.
33
(d) In the case of any Borrowing which would cause the
aggregate principal amount of outstanding loans under this Agreement, the
Five-Year Credit Agreement, the 1998 Five-Year Credit Agreement and any other
New Credit Arrangement (as defined in the resolutions duly adopted by the Board
of Directors of Alcoa on March 10, 2000) to exceed $6,000,000,000 minus the
aggregate outstanding principal amount of Commercial Paper issued by Alcoa or
issued by Subsidiaries and guaranteed by Alcoa or other loans or notes issued
under any New Credit Arrangement (other than Commercial Paper or other loans or
notes being repaid with the proceeds of such Borrowing), such Borrowing shall
have been duly authorized by Alcoa and the Administrative Agent shall have
received a true and complete copy of resolutions duly adopted by the Board of
Directors of Alcoa authorizing such Borrowing.
Each Borrowing by any Borrower shall be deemed to constitute a representation
and warranty by such Borrower and, in the case of a Borrowing Subsidiary, Alcoa
on the date of such Borrowing as to the matters specified in paragraphs (b), (c)
and (d) of this Section 4.02.
SECTION 4.03. Designation of Borrowing Subsidiaries. On each
Designation Date:
(a) The Administrative Agent shall have received (i) a copy of
the charter, including all amendments thereto, of each applicable Borrowing
Subsidiary, certified as of a recent date by the Secretary of State or the
appropriate foreign governmental official of the state or country of its
organization, and a certificate as to the good standing of such Borrowing
Subsidiary as of a recent date from such Secretary of State or appropriate
foreign governmental official, as applicable; (ii) a certificate of the
Secretary or Assistant Secretary of such Borrowing Subsidiary dated the
Designation Date and certifying (A) that attached thereto is a true and
completed copy of the by-laws of such Borrowing Subsidiary as in effect on the
Designation Date showing all amendments thereto since the date of the
resolutions described in clause (B) below, (B) that attached thereto is a true
and complete copy of resolutions duly adopted by the Board of Directors of such
Borrowing Subsidiary authorizing the execution, delivery and performance of this
Agreement and the borrowings hereunder, and that such resolutions have not been
modified, rescinded or amended and are in full force and effect, (C) that the
charter of such Borrowing Subsidiary has not been amended since the date of the
last amendment thereto shown on the certificate of good standing furnished
pursuant to clause (i) above, and (D) as to the incumbency and specimen
signature of each officer executing or any other document delivered in
connection herewith on behalf of such Borrowing Subsidiary; and (iii) a
certificate of another officer as to the incumbency and specimen signature of
the Secretary or Assistant Secretary executing the certificate pursuant to (ii)
above.
(b) The Administrative Agent shall have received a Designation
of Borrowing Subsidiary of each applicable Borrowing Subsidiary as provided in
Section 10.04(i).
34
ARTICLE V. AFFIRMATIVE COVENANTS
So long as this Agreement shall remain in effect or the
principal of or interest on any Loan, any Fees or any other expenses or amounts
payable in connection herewith shall be unpaid, unless the Required Lenders
shall otherwise consent in writing:
SECTION 5.01. Financial Statements, Reports, etc. Alcoa shall
furnish to the Administrative Agent the following, with sufficient copies for
the Administrative Agent to provide a copy to each Lender:
(a) within 120 days after the end of each fiscal year, (i) its
consolidated balance sheet and related statements of income and cash flow
audited by independent public accountants of recognized national standing,
accompanied by an opinion of such accountants (which shall not be qualified as
to scope of audit or in any manner calling into question the status of its
business as a going concern) to the effect that such consolidated financial
statements fairly present its financial condition and results of operations and
that of its consolidated Subsidiaries, taken as a whole, in accordance with GAAP
and (ii) the balance sheet and related statements of income of each of its
Subsidiaries which has been designated pursuant to Section 10.04(i) as, and as
long as such Subsidiary remains, a Borrowing Subsidiary, certified by a
Financial Officer of such Subsidiary;
(b) within 60 days after the end of each of the first three
fiscal quarters of each fiscal year, its Form 10-Q as prescribed by the
Securities and Exchange Commission (or any successor agency);
(c) concurrently with any delivery of financial statements
under (a) above and promptly at the request of the Administrative Agent (but not
more often than once with respect to any fiscal quarter), a certificate of a
Financial Officer (i) certifying that no Event of Default or Default has
occurred and is continuing or, if such an Event of Default or Default has
occurred and is continuing, specifying the nature and extent thereof and any
corrective action taken or proposed to be taken with respect thereto and (ii)
setting forth computations in reasonable detail satisfactory to the
Administrative Agent demonstrating compliance with the covenant contained in
Section 6.03;
(d) promptly after the same become publicly available, copies
of all periodic and other reports, proxy statements and other materials filed by
it (other than registration statements and prospectuses related to offerings to
directors, officers or employees) with the Securities and Exchange Commission or
any Governmental Authority succeeding to any of or all the functions of such
Commission, or with any national securities exchange, or distributed to its
shareholders, as the case may be; and
35
(e) promptly, from time to time, such other information
regarding its operations, business affairs and financial condition, or
compliance with the terms of this Agreement, as the Administrative Agent or any
Lender may reasonably request.
Alcoa shall be deemed to have fulfilled its obligations under
paragraph (a), (b) or (d) above when the Administrative Agent receives a paper
or an electronic version of the documents required to be delivered pursuant to
paragraph (a), (b) or (d) above, in a format acceptable to the Administrative
Agent; provided that (i) such paper or electronic version must be accompanied by
a certificate delivered pursuant to paragraph (c) above and (ii) the Borrower
shall deliver paper copies of the information referred to in paragraph (d) above
to any Lender which requests such delivery.
SECTION 5.02. Pari Passu Ranking. Each Borrower shall ensure
that any amounts payable by it hereunder will at all times rank at least pari
passu with all other unsecured, unsubordinated Indebtedness of such Borrower
except to the extent any such Indebtedness may be preferred by law.
SECTION 5.03. Maintenance of Properties. Each Borrower shall,
and shall cause its Subsidiaries to, maintain and keep its properties in such
repair, working order and condition, and make or cause to be made all such
needful and proper repairs, renewals and replacements thereto, as in the
judgment of such Borrower are necessary and in the interests of such Borrower;
provided, however, that nothing in this Section 5.03 shall prevent such Borrower
(or any Subsidiary thereof) from selling, abandoning or otherwise disposing of
any of its respective properties or discontinuing a part of its respective
businesses from time to time if, in the judgment of such Borrower, such sale,
abandonment, disposition or discontinuance is advisable.
SECTION 5.04. Obligations and Taxes. Each Borrower shall pay
its Indebtedness and other obligations that, if not paid, would result in a
Material Adverse Effect before the same shall become delinquent or in default,
and pay and discharge all taxes upon or against it, or against its properties,
in each case prior to the date on which penalties attach thereto, unless and to
the extent that any such obligation or tax is being contested in good faith and
adequate reserves with respect thereto are maintained in accordance with GAAP.
SECTION 5.05. Insurance. Each Borrower shall, and shall cause
its consolidated Subsidiaries to, insure and keep insured, in each case with
reputable insurance companies, so much of its respective properties to such an
extent and against such risks, or in lieu thereof, in the case of any Borrower,
maintain or cause to be maintained a system or systems of self-insurance, as is
customary in the case of corporations engaged in the same or similar business or
having similar properties similarly situated.
SECTION 5.06. Existence; Businesses and Properties. (a) Each
Borrower shall do or cause to be done all things necessary to preserve, renew
and keep
36
in full force and effect its legal existence in its jurisdiction of
incorporation, except as otherwise expressly permitted under Section 6.02.
(b) Each Borrower shall do or cause to be done all things
necessary to obtain, preserve, renew, extend and keep in full force and effect
the rights, licenses, permits, franchises, authorizations, patents, copyrights,
trademarks and trade names material to the conduct of its business as its Board
of Directors shall determine in its judgment.
SECTION 5.07. Compliance with Laws. (a) Each Borrower shall
comply in all material respects with all applicable laws, rules, regulations and
orders of any Governmental Authority to which it is subject, whether now in
effect or hereafter enacted, such that no failure so to comply will result in
the levy of any penalty or fine which shall have a Material Adverse Effect.
(b) Each Borrower shall comply in all material respects with
the applicable provisions of ERISA and all other related applicable laws and
furnish to the Administrative Agent and each Lender (i) as soon as possible, and
in any event within 30 days after any Responsible Officer of such Borrower or
any ERISA Affiliate either knows or has reason to know that any ERISA Event has
occurred that alone or together with any other ERISA Event would reasonably be
expected to result in liability of such Borrower to the PBGC in an aggregate
amount exceeding $25,000,000, a statement of a Financial Officer setting forth
details as to such ERISA Event and the action proposed to be taken with respect
thereto, together with a copy of the notice, if any, of such ERISA Event given
to the PBGC or other Governmental Authority, (ii) promptly after receipt
thereof, a copy of any notice such Borrower or any ERISA Affiliate may receive
from the PBGC or other Governmental Authority relating to the intention of the
PBGC or other Governmental Authority to terminate any Plan or Plans (other than
a Plan maintained by an ERISA Affiliate which is considered an ERISA Affiliate
only pursuant to subsection (m) or (o) of Section 414 of the Code), or any
Foreign Plan or Foreign Plans, or to appoint a trustee to administer any Plan or
Plans, or any Foreign Plan or Foreign Plans, (iii) within 10 days after the due
date for filing with the PBGC pursuant to Section 412(n) of the Code of a notice
of failure to make a required installment or other payment with respect to a
Plan, a statement of a Financial Officer setting forth details as to such
failure and the action proposed to be taken with respect thereto, together with
a copy of such notice given to the PBGC and (iv) promptly and in any event
within 30 days after receipt thereof by such Borrower or any ERISA Affiliate
from the sponsor of a Multiemployer Plan, a copy of each notice received by such
Borrower or ERISA Affiliate concerning (A) the imposition of Withdrawal
Liability in excess of $25,000,000 or (B) a determination that a Multiemployer
Plan is, or is expected to be, terminated or in reorganization, in each case
within the meaning of Title IV of ERISA, if such termination or reorganization
would reasonably be expected to result, alone or with any other such termination
or reorganization, in increases in excess of $25,000,000 in the contributions
required to be made to the relevant Plan or Plans.
37
SECTION 5.08. Litigation and Other Notices. Each Borrower
shall furnish to the Administrative Agent prompt written notice upon its
becoming aware of any of the following:
(a) any Event of Default or Default, specifying the nature and
extent thereof and the corrective action (if any) proposed to be taken with
respect thereto;
(b) the filing or commencement of, or any threat or notice of
intention of any person to file or commence, any action, suit or proceeding,
whether at law or in equity or by or before any Governmental Authority, against
it or any of its Subsidiaries which would reasonably be expected to result in a
Material Adverse Effect; and
(c) any other development that has resulted in, or would
reasonably be expected to result in, a Material Adverse Effect.
SECTION 5.09. Borrowing Subsidiaries. Alcoa shall cause each
Borrowing Subsidiary at all times to be a wholly-owned Subsidiary.
ARTICLE VI. NEGATIVE COVENANTS
Each Borrower covenants and agrees with each Lender that, so
long as this Agreement shall remain in effect or the principal of or interest on
any Loan, any Fees or any other expenses or amounts payable in connection
herewith shall be unpaid, unless the Required Lenders shall otherwise consent in
writing, such Borrower will not:
SECTION 6.01. Liens. (a) Create or incur, or permit any
Restricted Subsidiary to create or incur, any Lien on its property or assets
(including stock or other securities of any person, including any of its
Subsidiaries) now or hereafter acquired by it or on any income or revenues or
rights in respect thereof, securing Indebtedness for borrowed money, without
ratably securing the Loans; provided, however, that the foregoing shall not
apply to the following:
(i) Liens on property or assets of any corporation existing
at the time such corporation becomes a Restricted Subsidiary;
(ii) Liens existing on any property or asset at or prior to
the acquisition thereof by such Borrower or a Restricted Subsidiary,
Liens on any property or asset securing the payment of all or any part
of the purchase price of such property or asset, Liens on any property
or asset securing any Indebtedness incurred prior to, at the time of or
within 180 days after the acquisition of such property or asset for the
purpose of financing all or any part of the purchase price thereof or
Liens on any property or asset securing any Indebtedness incurred for
the purpose of financing all or any part of the cost to such Borrower
or Restricted Subsidiary of improvements thereto;
38
(iii) Liens securing Indebtedness of a Restricted Subsidiary
owing to Alcoa or to another Restricted Subsidiary;
(iv) Liens existing on April 28, 2000, and set forth on
Schedule 6.01(a);
(v) Liens on property of a person existing (or, in the case
of Alumax Inc., that shall have existed) at the time such person is
merged into or consolidated with Alcoa or a Restricted Subsidiary or at
the time such person becomes a subsidiary of Alcoa through the direct
or indirect acquisition of capital stock of such person by Alcoa or at
the time of a sale, lease or other disposition of the properties of a
person as an entirety or substantially as an entirety to Alcoa or a
Restricted Subsidiary;
(vi) Liens on any property owned by Alcoa or any Restricted
Subsidiary, in favor of the United States of America or any state
thereof, or any department, agency or instrumentality or political
subdivision of the United States of America or any State thereof, or in
favor of any other country, or any political subdivision thereof, to
secure partial, progress, advance or other payments pursuant to any
contract or statute or to secure any Indebtedness incurred for the
purpose of financing all or any part of the purchase price or the cost
of construction of the property subject to such Liens; and
(vii) any extension, renewal or replacement (or successive
extensions, renewals or replacements) in whole or in part of the Liens
referred to in clauses (i) through (vi) of this Section 6.01(a);
provided, however, that each such extension, renewal or replacement is
limited to all or a part of the property which secured the Lien so
extended, renewed or replaced (and any improvements thereon).
(b) Notwithstanding paragraph (a) of this Section 6.01 and in
addition to the Liens permitted thereunder, each Borrower and any Restricted
Subsidiary may create or incur Liens which would otherwise be subject to the
foregoing restrictions to secure Indebtedness for borrowed money in an aggregate
amount which does not at the time exceed 10% of the Consolidated Net Tangible
Assets of Alcoa and its consolidated Subsidiaries at such time.
SECTION 6.02. Consolidation, Merger, Sale of Assets, etc.
Consolidate or merge with or into any other person or sell, lease or transfer
all or substantially all of its property and assets, or agree to do any of the
foregoing, unless (a) no Default or Event of Default has occurred and is
continuing or would result immediately after giving effect thereto, (b) if such
Borrower is not the surviving corporation or if such Borrower sells, leases or
transfers all or substantially all of its property and assets, the surviving
corporation or person purchasing or being leased the assets agrees to be bound
by the terms and provisions applicable to such Borrower hereunder, and (c)(i) in
the case of Alcoa, immediately after such transaction, individuals who were
directors of Alcoa during the twelve month period prior to such
39
merger, sale or lease (together with any replacement or additional directors
whose election was recommended by or who were elected by a majority of directors
then in office) constitute the Board of Directors of the surviving corporation
or the person purchasing or being leased the assets and (ii) in the case of a
Borrowing Subsidiary, (A) the surviving corporation or the person purchasing or
being leased the assets is a wholly-owned Subsidiary of Alcoa and (B) if the
surviving corporation or such person is not Alcoa, Alcoa agrees to guarantee
pursuant to Article VIII the obligations of such person under this Agreement.
SECTION 6.03. Financial Undertaking. In the case of Alcoa,
permit the aggregate principal amount of (a) the Indebtedness of Alcoa and its
consolidated Subsidiaries, after eliminating intercompany items, plus (b) all
other liabilities of Alcoa and its consolidated Subsidiaries, after eliminating
intercompany items, in respect of any guarantee or endorsement (except the
endorsement of negotiable instruments for deposit or collection or similar
transactions in the normal course of business) of the Indebtedness of any person
to exceed 150% of Consolidated Net Worth of Alcoa and its consolidated
Subsidiaries.
SECTION 6.04. Change in Business. In the case of Alcoa, make
or permit any substantial change in the general nature of the business carried
on by Alcoa and its consolidated Subsidiaries as at the date hereof, including
any such alteration arising from an acquisition, which would reasonably be
expected to result in a Material Adverse Effect.
ARTICLE VII. EVENTS OF DEFAULT
In case of the happening of any of the following events
("Events of Default"):
(a) any Borrower shall default in the payment when due of any
principal of any Loan and, if such default shall result from the failure of any
third party payments system used by such Borrower, such default shall continue
for a period of two Business Days;
(b) any Borrower shall fail to pay when due any interest, Fee
or other amount payable under this Agreement or Alcoa shall fail to pay any
amount due under Article VIII upon demand therefor, and, in each case, such
failure shall continue for a period of five Business Days;
(c) any representation or warranty made in Section 3.09 shall
prove to have been false or misleading in any material respect as of the time
when made (including by omission of material information necessary to make such
representation or warranty not misleading); or any other representation or
warranty made by a Borrower under this Agreement or any statement made by a
Borrower in any financial statement, certificate, report, exhibit or document
furnished by or on behalf of such
40
Borrower in connection with this Agreement shall prove to have been false or
misleading in any material respect as of the time when made and, if such
representation or warranty is able to be corrected, such representation or
warranty is not corrected within 20 days after such Borrower's knowledge that it
was false or misleading;
(d) any Borrower shall default in the performance or
observance of any covenant contained in Section 5.02, Section 5.06(a), Section
5.08(a) or Article VI;
(e) any Borrower shall default in the performance or
observance of any covenant or agreement under this Agreement (other than those
specified in paragraphs (a), (b) and (d) above) and such default shall continue
for a period of 10 Business Days, in the case of a default with respect to
Section 5.08(b) or (c), or in any other case a period of 30 days after notice
from the Administrative Agent;
(f) any Borrower shall (i) default in the payment of any
principal or interest beyond any period of grace provided with respect thereto,
due in respect of any Indebtedness in a principal amount in excess of
$20,000,000; or (ii) fail to observe or perform any other term, covenant,
condition or agreement contained in any agreement or instrument evidencing or
governing any such Indebtedness if the effect of any such failure referred to in
this paragraph (f) is to cause such Indebtedness to become due prior to its
stated maturity;
(g) a proceeding shall have been instituted or a petition
filed in respect of a Borrower
(i) seeking to have an order for relief entered in respect
of such Borrower, or seeking a declaration or entailing a finding that
such Borrower is insolvent or a similar declaration or finding, or
seeking dissolution, winding-up, revocation or forfeiture of charter or
Memorandum and Articles of Association, liquidation, reorganization,
arrangement, adjustment, composition or other relief with respect to
such Borrower, its assets or its debts under any law relating to
bankruptcy, insolvency, relief of debtors or protection of creditors,
termination of legal entities or any other similar law now or hereafter
in effect, or
(ii) seeking appointment of a receiver, trustee, custodian,
liquidator, assignee, sequestrator, administrator or other similar
official for such Borrower or for all or any substantial part of its
property,
and such proceeding or petition shall remain undismissed for a period of 90
consecutive days or an order or decree approving any of the foregoing shall be
entered;
(h) any Borrower shall become insolvent, shall become
generally unable to pay its debts as they become due, shall voluntarily suspend
transaction of its business generally or as a whole, shall make a general
assignment for the benefit of creditors, shall institute a proceeding described
in clause (g)(i) above or shall consent to any order or decree described
therein, shall institute a proceeding described in clause (g)(ii) above
41
or shall consent to any such appointment or to the taking of possession by any
such official of all or any substantial part of its property whether or not any
such proceeding is instituted, shall dissolve, wind-up or liquidate itself or
any substantial part of its property or shall take any action in furtherance of
any of the foregoing;
(i) any of the following shall have occurred: (i) any person
or group of persons shall have acquired beneficial ownership of a majority in
interest of the outstanding Voting Stock of Alcoa (within the meaning of Section
13(d) or 14(d) of the Securities Exchange Act of 1934 and the applicable rules
and regulations thereunder), (ii) during any period of 25 consecutive months,
commencing before or after the date of this Agreement, individuals who at the
beginning of such 25 month period were directors of Alcoa (together with any
replacement or additional directors whose election was recommended by or who
were elected by a majority of directors then in office) cease to constitute a
majority of the Board of Directors of Alcoa or (iii) any person or group of
related persons shall acquire all or substantially all of the assets of Alcoa;
provided, however, that a change in control of Alcoa shall not be deemed to have
occurred pursuant to clause (iii) of this paragraph (i) if Alcoa shall have
merged or consolidated with or transferred all or substantially all of its
assets to another person in compliance with the provisions of Section 6.02 and
the ratio represented by the total assets of the surviving person, successor or
transferee divided by such person's stockholders' equity, in each case as
determined and as would be shown in a consolidated balance sheet of such person
prepared in accordance with GAAP (the "Leverage Ratio" of such person) is no
greater than the then Leverage Ratio of Alcoa immediately prior to such event;
(j) an ERISA Event or ERISA Events shall have occurred with
respect to any Plan or Plans, or any Foreign Plan or Foreign Plans, that
reasonably could be expected to result in liability of any Borrower to the PBGC
or other Governmental Authority or to a Plan or Foreign Plan in an aggregate
amount exceeding $25,000,000 and, within 30 days after the reporting of any such
ERISA Event to the Administrative Agent or after the receipt by the
Administrative Agent of the statement required pursuant to Section 5.07(b), the
Administrative Agent shall have notified the Borrower in writing that (i) the
Required Lenders have made a determination that, on the basis of such ERISA
Event or ERISA Events or the failure to make a required payment, there are
reasonable grounds (A) for the termination of such Plan or Plans, or such
Foreign Plan or Foreign Plans, by the PBGC or other Governmental Authority, (B)
for the appointment either by the appropriate United States District Court of a
trustee to administer such Plan or Plans or by an applicable court of law
outside the United States of a trustee to administer such Foreign Plan or
Foreign Plans or (C) for the imposition of a lien in favor of a Plan or Foreign
Plan and (ii) as a result thereof an Event of Default exists hereunder; or a
trustee shall be appointed by a United States District Court to administer any
such Plan or Plans or by an applicable court of law outside the United States of
a trustee to administer such Foreign Plan or Foreign Plans; or the PBGC or other
Governmental Authority shall institute proceedings to terminate any Plan or
Plans or any Foreign Plan or Foreign Plans;
42
(k) (i) any Borrower or any ERISA Affiliate shall have been
notified by the sponsor of a Multiemployer Plan that it has incurred Withdrawal
Liability to such Multiemployer Plan, (ii) such Borrower or such ERISA Affiliate
does not have reasonable grounds for contesting such Withdrawal Liability or is
not in fact contesting such Withdrawal Liability in a timely and appropriate
manner and does not have adequate reserves set aside against such Withdrawal
Liability and (iii) the amount of the Withdrawal Liability specified in such
notice, when aggregated with all other amounts required to be paid to
Multiemployer Plans in connection with Withdrawal Liabilities (determined as of
the date or dates of such notification), exceeds $25,000,000 or requires
payments exceeding $25,000,000 in any calendar year;
(l) any Borrower or any ERISA Affiliate shall have been
notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is
in reorganization or is being terminated, within the meaning of Title IV of
ERISA, if solely as a result of such reorganization or termination the aggregate
annual contributions of such Borrower and its ERISA Affiliates to all
Multiemployer Plans that are then in reorganization or have been or are being
terminated have been or will be increased over the amounts required to be
contributed to such Multiemployer Plans for their most recently completed plan
years by an amount exceeding $25,000,000;
(m) one or more judgments for the payment of money in an
aggregate amount in excess of $50,000,000 shall be rendered against any Borrower
or any Subsidiary of any Borrower or any combination thereof and the same shall
remain undischarged for a period of 45 consecutive days during which execution
shall not be effectively stayed (unless an appeal or writ of certiorari is being
diligently prosecuted), or any action shall be legally taken by a judgment
creditor or creditors holding judgments which in the aggregate exceed
$50,000,000 to levy upon assets or properties of any Borrower or any Subsidiary
of a Borrower to enforce any such judgment; or
(n) Any "Event of Default" as defined in the Five-Year Credit
Agreement or the 1998 Five-Year Credit Agreement (other than an "Event of
Default" as defined in each of clauses (o), (p) or (q) of Article VII of the
1998 Five-Year Credit Agreement) shall occur and be continuing;
then, and in every such event (other than an event described in paragraph (g) or
(h) above), and at any time thereafter during the continuance of such event, the
Administrative Agent, at the request of the Required Lenders, shall, by written
notice to Alcoa, take either or both of the following actions, at the same or
different times: (i) terminate the Commitments, and (ii) declare the Loans then
outstanding to be forthwith due and payable in whole or in part, whereupon the
principal of the Loans so declared to be due and payable, together with accrued
interest thereon and any unpaid accrued Fees and all other liabilities accrued
hereunder, shall become forthwith due and payable, without presentment, demand,
protest or any other notice of any kind, all of which are hereby expressly
waived by each Borrower, anything contained herein to the contrary
notwithstanding; and in any event described in paragraph (g) or (h) above, the
Commitments of the Lenders shall automatically terminate and the principal of
the
43
Loans then outstanding, together with accrued interest thereon and any unpaid
accrued Fees and all other liabilities accrued hereunder, shall automatically
become due and payable, without presentment, demand, protest or any other notice
of any kind, all of which are hereby expressly waived by each Borrower, anything
contained herein to the contrary notwithstanding.
ARTICLE VIII. GUARANTEE
Alcoa unconditionally and irrevocably guarantees, as a
principal obligor and not merely as a surety, the due and punctual payment and
performance of all Borrowing Subsidiary Obligations. Alcoa further agrees that
the Borrowing Subsidiary 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 the provisions of this Article VIII notwithstanding any extension or
renewal of any Borrowing Subsidiary Obligation.
Alcoa waives presentation to, demand of payment from and
protest to any Borrowing Subsidiary of any of the Borrowing Subsidiary
Obligations, and also waives notice of acceptance of the guarantee set forth in
this Article VIII and notice of protest for nonpayment. The obligations of Alcoa
hereunder shall not be affected by (a) the failure of the Administrative Agent
or any Lender to assert any claim or demand or to enforce any right or remedy
against any Borrowing Subsidiary under the provisions of this Agreement or any
guarantee; (b) any extension or renewal of any provision of this Agreement or
any guarantee; or (c) any rescission, waiver, amendment or modification of any
of the terms or provisions of this Agreement or any guarantee or any other
agreement.
Alcoa further agrees that the guarantee set forth in this
Article VIII constitutes a guarantee of payment when due and not of collection
and waives any right to require that any resort be had by the Administrative
Agent or any Lender to the balance of any deposit account or credit on the books
of the Administrative Agent or the relevant Lender, as applicable, in favor of
any Borrowing Subsidiary or any other person.
The obligations of Alcoa hereunder shall not be subject to any
reduction, limitation, impairment or termination for any reason, including any
claim or waiver, release, surrender, alteration or compromise, and shall not be
subject to any defense of setoff, counterclaim, recoupment or termination
whatsoever by reason of the invalidity, illegality or unenforceability of the
Borrowing Subsidiary Obligations or otherwise. Without limiting the generality
of the foregoing, the obligations of Alcoa hereunder shall not be discharged or
impaired or otherwise affected by the failure of the Administrative Agent or any
Lender to assert any claim or demand or to enforce any remedy under this
Agreement, by any waiver or modification of any thereof, by any default, failure
or delay, wilful or otherwise, in the performance of the Borrowing Subsidiary
Obligations or by any other act or omission which may or might in any
44
manner or to any extent vary the risk of Alcoa or would otherwise operate as a
discharge of Alcoa as a matter of law or equity.
Alcoa further agrees that this guarantee shall continue to be
effective or be reinstated, as the case may be, if at any time payment by any
Borrowing Subsidiary to the Administrative Agent or any Lender, or any part
thereof, of principal of or interest on such Borrowing Subsidiary Obligation is
rescinded or must otherwise be restored by the Administrative Agent or any
Lender or any holder of any Borrowing Subsidiary Obligation upon the bankruptcy
or reorganization of such Borrowing Subsidiary or otherwise.
In furtherance of the foregoing and not in limitation of any
other right which the Administrative Agent or any Lender may have at law or in
equity against Alcoa by virtue hereof, upon the failure of any Borrowing
Subsidiary to pay any Borrowing Subsidiary Obligation when and as the same shall
become due, whether at maturity, by acceleration, after notice of prepayment or
otherwise, Alcoa hereby promises to and will, upon receipt of written demand by
the Administrative Agent, promptly pay, or cause to be paid, to such Agent in
cash the amount of such unpaid Borrowing Subsidiary Obligation, and thereupon
such Agent shall assign, in any reasonable manner, the amount of the Borrowing
Subsidiary Obligation paid by Alcoa pursuant to this guarantee to Alcoa, such
assignment to be pro tanto to the extent to which the Borrowing Subsidiary
Obligation in question was discharged by Alcoa, or make such other disposition
thereof as Alcoa shall direct (all without recourse to the Administrative Agent
or any Lender and without any representation or warranty by the Administrative
Agent or Lender).
Upon payment by Alcoa of any sums to the Administrative Agent
as provided above, all rights of Alcoa against the Borrowing Subsidiaries
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 Borrowing Subsidiary Obligations.
ARTICLE IX. THE ADMINISTRATIVE AGENT
45
In order to expedite the transactions contemplated by this
Agreement, The Chase Manhattan Bank is hereby appointed to act as the
Administrative Agent on behalf of the Lenders. Each of the Lenders and each
assignee of any such Lender hereby irrevocably authorizes the Administrative
Agent to take such actions on behalf of such Lender or assignee and to exercise
such powers as are specifically delegated to such Agent by the terms and
provisions hereof, together with such actions and powers as are reasonably
incidental thereto. The Administrative Agent is hereby expressly authorized by
the Lenders, without hereby limiting any implied authority, (a) to receive on
behalf of the Lenders all payments of principal of and interest on the Loans and
all other amounts due to the Lenders hereunder, and promptly to distribute to
each Lender its proper share of each payment so received; (b) to give notice on
behalf of each of the Lenders to the relevant Borrower of any Event of Default
specified in this Agreement of which the Administrative Agent has actual
knowledge acquired in connection with its agency hereunder; and (c) to
distribute to each Lender copies of all notices, financial statements and other
materials delivered by any Borrower pursuant to this Agreement as received by
such Agent.
None of the Administrative Agent or any of its directors,
officers, employees or agents shall be liable as such for any action taken or
omitted by any of them except for its or his own gross negligence or wilful
misconduct, or be responsible for any statement, warranty or representation
herein or the contents of any document delivered in connection herewith, or be
required to ascertain or to make any inquiry concerning the performance or
observance by any Borrower of any of the terms, conditions, covenants or
agreements contained herein. The Administrative Agent shall not be responsible
to the Lenders or any assignee thereof for the due execution, genuineness,
validity, enforceability or effectiveness of this Agreement or other instruments
or agreements. The Administrative Agent shall in all cases be fully protected in
acting, or refraining from acting, in accordance with written instructions
signed by the Required Lenders and, except as otherwise specifically provided
herein, such instructions and any action or inaction pursuant hereto shall be
binding on all the Lenders and each assignee of any such Lender. The
Administrative Agent shall, in the absence of knowledge to the contrary, be
entitled to rely on any instrument or document believed by it in good faith to
be genuine and correct and to have been signed or sent by the proper person or
persons. None of the Administrative Agent or any of its directors, officers,
employees or agents shall have any responsibility to any Borrower on account of
the failure of or delay in performance or breach by any other Lender or any
Borrower of any of their respective obligations hereunder or in connection
herewith. The Administrative Agent may execute any and all duties hereunder by
or through agents or employees and shall be entitled to rely upon the advice of
legal counsel selected by it with respect to all matters arising hereunder and
shall not be liable for any action taken or suffered in good faith by it in
accordance with the advice of such counsel.
The Lenders hereby acknowledge that the Administrative Agent
shall not be under any duty to take any discretionary action permitted to be
taken by it
46
pursuant to the provisions of this Agreement unless it shall be requested in
writing to do so by the Required Lenders.
Subject to the appointment and acceptance of a successor
Administrative Agent as provided below, the Administrative Agent may resign at
any time by notifying the Lenders and the Borrowers. Upon any such resignation,
the Required Lenders shall have the right to appoint a successor; provided,
however, that Alcoa has approved such successor (such consent not to be
unreasonably withheld or delayed and not to be required if an Event of Default
exists). If no successor shall have been so appointed by the Required Lenders
and shall have accepted such appointment within 30 days after the retiring
Administrative Agent gives notice of its resignation, then the retiring Agent
may, on behalf of the Lenders, appoint a successor Administrative Agent, subject
to the prior approval of Alcoa (such consent not to be unreasonably withheld or
delayed and not to be required if an Event of Default exists), which shall be a
bank with an office in New York, New York, having total assets in excess of
$10,000,000,000 or an Affiliate of any such bank. Upon the acceptance of any
appointment as the Administrative Agent hereunder by a successor bank, such
successor shall succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Agent and the retiring Agent shall be
discharged from its duties and obligations hereunder. After the Agent's
resignation hereunder the provisions of this Article and Section 10.05 shall
continue in effect for its benefit in respect of any actions taken or omitted to
be taken by it while it was acting as Administrative Agent.
With respect to the Loans made by it hereunder, the
Administrative Agent in its individual capacity and not as Agent shall have the
same rights and powers as any other Lender and may exercise the same as though
it were not an Administrative Agent, and such Agent and its Affiliates may
accept deposits from, lend money to and generally engage in any kind of business
with any Borrower or any Subsidiary or other Affiliate of Alcoa as if it were
not an Agent.
Each Lender agrees (i) to reimburse the Administrative Agent,
on demand, in the amount of its pro rata share (based on its Commitment
hereunder) of any expenses incurred for the benefit of the Lenders by such
Agent, including counsel fees and compensation of agents and employees paid for
services rendered on behalf of the Lenders, which shall not have been reimbursed
by the Borrowers and (ii) to indemnify and hold harmless the Administrative
Agent and any of its directors, officers, employees, agents or Affiliates, on
demand, in the amount of such pro rata share, from and against any and all
liabilities, taxes, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever which
may be imposed on, incurred by or asserted against it in its capacity as an
Administrative Agent or any of them in any way relating to or arising out of
this Agreement or any action taken or omitted by it or any of them under this
Agreement, to the extent the same shall not have been reimbursed by the
Borrowers; provided that no Lender shall be liable to the Administrative Agent
for any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs,
47
expenses or disbursements resulting from the gross negligence or wilful
misconduct of such Agent or any of its directors, officers, employees, agents or
Affiliates.
Each Lender acknowledges that it has, independently and
without reliance upon the Administrative Agent or other Lender and based on such
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or other Lender and based on such documents and information
as it shall from time to time deem appropriate, continue to make its own
decisions in taking or not taking action under or based upon this Agreement, any
related agreement or any document furnished hereunder or thereunder.
Each Lender hereby acknowledges that the documentation agents
have no liability hereunder as documentation agents other than in their capacity
as Lenders.
ARTICLE X. MISCELLANEOUS
SECTION 10.01. Notices. Notices and other communications
provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by
telecopy as follows:
(a) if to Alcoa or a Borrowing Subsidiary, to Alcoa Inc. at
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇, Attention of Vice President &
Treasurer (Telecopy No. 412-553-3640);
(b) if to the Administrative Agent, to The Chase Manhattan
Bank at ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, Attention of ▇▇▇▇▇ ▇▇▇▇
(Telecopy No. 212-552-7490), with a copy to The Chase Manhattan Bank at ▇▇▇ ▇▇▇▇
▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, Attention of ▇▇▇▇▇ ▇▇▇▇▇▇ (Telecopy No.
212-270-4724);
(c) if to a Lender, to it at its address (or telecopy number)
set forth in Schedule 2.01 or in the Assignment and Acceptance pursuant to which
such Lender shall have become a party hereto.
All notices and other communications given to any party hereto in accordance
with the provisions of this Agreement shall be deemed to have been given on the
date of receipt if delivered by hand or overnight courier service or sent by
telecopy or on the date five Business Days after dispatch by certified or
registered mail if mailed, in each case delivered, sent or mailed (properly
addressed) to such party as provided in this Section 10.01 or in accordance with
the latest unrevoked direction from such party to the Administrative Agent and
each Borrower given in accordance with this Section 10.01.
Any notice hereunder shall be effective upon receipt. Any
notice or other communication received on a day which is not a Business Day or
after business hours in the place of receipt shall be deemed to be served on the
next following
48
Business Day in such place. Any notice given to Alcoa shall be deemed to have
been duly given to each other Borrower at the same time and in the same manner.
SECTION 10.02. Survival of Agreement. All covenants,
agreements, representations and warranties made by any Borrower herein and in
the certificates or other instruments prepared or delivered in connection with
or pursuant to this Agreement shall be considered to have been relied upon by
the Lenders and shall survive the making by the Lenders of the Loans, regardless
of any investigation made by the Lenders or on their behalf, and shall continue
in full force and effect as long as the principal of or any accrued interest on
any Loan or any Fee or any other amount payable under this Agreement is
outstanding and unpaid and so long as the Commitments have not been terminated.
SECTION 10.03. Binding Effect. This Agreement shall become
effective when it shall have been executed by Alcoa and the Administrative Agent
and when the Administrative Agent shall have received copies hereof which, when
taken together, bear the signatures of each Lender, and thereafter shall be
binding upon and inure to the benefit of the Borrowers, the Administrative Agent
and each Lender and their respective successors and assigns, except that none of
the Borrowers shall have the right to assign its rights hereunder or any
interest herein without the prior consent of all the Lenders.
SECTION 10.04. Successors and Assigns; Additional Borrowing
Subsidiaries. (a) Whenever in this Agreement any of the parties hereto is
referred to, such reference shall be deemed to include the successors and
assigns of such party; and all covenants, promises and agreements by or on
behalf of the Borrowers, the Administrative Agent or the Lenders that are
contained in this Agreement shall bind and inure to the benefit of their
respective successors and assigns.
(b) Each Lender may assign to one or more Eligible Transferees
all or a portion of its interests, rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans at the time owing to
it); provided, however, that (i) except in the case of an assignment to a Lender
or an Affiliate of such Lender (including to any SPC pursuant to Section
10.04(j)), Alcoa and the Administrative Agent must give their prior written
consent to such assignment (which consent shall not be unreasonably withheld or
delayed and shall not be required if an Event of Default exists), (ii) the
amount of the Commitment of the assigning Lender subject to each such assignment
(determined as of the date the Assignment and Acceptance with respect to such
assignment is delivered to the Administrative Agent) shall not be less than
$12,500,000, (iii) the parties (other than the Borrowers) to each such
assignment shall execute and deliver to the Administrative Agent an Assignment
and Acceptance, together with a processing and recordation fee of $2,500 and
(iv) the assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire. Upon acceptance and
recording pursuant to paragraph (e) of this Section 10.04, from and after the
effective date specified in each Assignment and Acceptance, which effective date
shall be at least five Business Days after the
49
execution and recording thereof, (A) the assignee thereunder shall be a party
hereto and, to the extent of the interest assigned by such Assignment and
Acceptance, have the rights and obligations of a Lender under this Agreement and
(B) the assigning Lender thereunder shall, to the extent of the interest
assigned by such Assignment and Acceptance, be released from its obligations
under this Agreement (and, in the case of an Assignment and Acceptance covering
all or the remaining portion of an assigning Lender's rights and obligations
under this Agreement, such Lender shall cease to be a party hereto but shall
continue to be entitled to the benefits of Sections 2.12, 2.14, 2.18 and 10.05,
as well as to any Fees accrued for its account and not yet paid).
(c) By executing and delivering an Assignment and Acceptance,
the assigning Lender thereunder and the assignee thereunder shall be deemed to
confirm to and agree with each other and the other parties hereto as follows:
(i) such assigning Lender warrants that it is the legal and beneficial owner of
the interest being assigned thereby free and clear of any adverse claim and that
its Commitment and the outstanding balances of its Loans, in each case without
giving effect to assignments thereof which have not become effective, are as set
forth in such Assignment and Acceptance, (ii) except as set forth in (i) above,
such assigning Lender makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations
made in or in connection with this Agreement, or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of this Agreement,
or any other instrument or document furnished pursuant hereto, or the financial
condition of any Borrower or any Subsidiary of any Borrower or the performance
or observance by any Borrower or any Subsidiary of any Borrower of any of its
obligations under this Agreement or any other instrument or document furnished
pursuant hereto; (iii) such assignee represents and warrants that it is legally
authorized and has obtained any necessary consents to enter into such Assignment
and Acceptance; (iv) such assignee confirms that it has received a copy of this
Agreement, together with copies of the most recent financial statements
delivered pursuant to Section 5.01 and such other documents and information as
it has deemed appropriate to make its own credit analysis and decision to enter
into such Assignment and Acceptance; (v) such assignee will independently and
without reliance upon the Administrative Agent, such assigning Lender or any
other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under this Agreement; (vi) such assignee appoints and
authorizes the Administrative Agent to take such action as agent on its behalf
and to exercise such powers under this Agreement as are delegated to the
Administrative Agent by the terms hereof, together with such powers as are
reasonably incidental thereto; and (vii) such assignee agrees that it will
perform in accordance with their terms all the obligations which by the terms of
this Agreement are required to be performed by it as a Lender.
(d) The Administrative Agent, on behalf of and solely for this
purpose as an agent for the Borrowers, shall maintain at one of its offices in
The City of New York a copy of each Assignment and Acceptance delivered to it
and a register for the recordation of the names and addresses of the Lenders,
and the Commitment of, and
50
principal amounts of the Loans owing to, each Lender pursuant to the terms
hereof from time to time (the "Register"). The entries in the Register shall be
conclusive in the absence of manifest error and the Borrowers, the
Administrative Agent and the Lenders may treat each person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement, notwithstanding notice to the contrary. The
Register shall be available for inspection by any Borrower and any Lender at any
reasonable time and from time to time upon reasonable prior notice.
(e) Upon its receipt of a duly completed Assignment and
Acceptance executed by an assigning Lender and an assignee, an Administrative
Questionnaire completed in respect of the assignee (unless the assignee shall
already be a Lender hereunder), the processing and recordation fee referred to
in paragraph (b) above and, if required, the written consent of Alcoa and the
Administrative Agent to such assignment, the Administrative Agent shall (i)
accept such Assignment and Acceptance, (ii) record the information contained
therein in the Register and (iii) give prompt notice thereof to the Lenders and
Alcoa. No assignment shall be effective unless recorded in the Register.
(f) Each Lender may without the consent of any Borrower or the
Administrative Agent sell participations to one or more banks or other entities
in all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans owing to it);
provided, however, that (i) such Lender's obligations under this Agreement shall
remain unchanged, (ii) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations, (iii) the participating
banks or other entities shall be entitled to the benefit of the cost protection
provisions contained in Sections 2.12, 2.14 and 2.18 to the same extent as if
they were Lenders and (iv) the Borrowers, the Administrative Agent, and the
other Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender's rights and obligations under this Agreement, and
such Lender shall retain the sole right to enforce the obligations of the
Borrowers relating to the Loans and to approve any amendment, modification or
waiver of any provision of this Agreement (provided that the participating bank
or other entity may be provided with the right to approve amendments,
modifications or waivers affecting it with respect to (A) any decrease in the
Fees payable hereunder with respect to Loans in which the participating bank or
other entity has purchased a participation, (B) any change in the amount of
principal of, or decrease in the rate at which interest is payable on, the Loans
in which the participating bank or other entity has purchased a participation or
(C) any extension of the dates fixed for scheduled payments of a Fee or of
principal of or interest on the Loans in which the participating bank or other
entity has purchased a participation).
51
(g) Any Lender or participant may, in connection with any
assignment or participation or proposed assignment or participation pursuant to
this Section 10.04, disclose to the assignee or participant or proposed assignee
or participant any information relating to any Borrower furnished to such Lender
by or on behalf of such Borrower; provided, however, that, prior to any such
disclosure of information designated by Alcoa as confidential, each such
assignee or participant or proposed assignee or participant shall execute an
agreement whereby such assignee or participant shall agree (subject to customary
exceptions) to preserve the confidentiality of such confidential information.
Notwithstanding the foregoing, no Lender or participant shall disclose any such
information to any person known to it to compete with Alcoa and its Subsidiaries
in any of the principal businesses of Alcoa and its Subsidiaries taken as a
whole, without the prior written consent of Alcoa.
(h) Any Lender may at any time assign all or any portion of
its rights under this Agreement to a Federal Reserve Bank; provided that no such
assignment shall release a Lender from any of its obligations hereunder. In
order to facilitate such an assignment to a Federal Reserve Bank, each Borrower
shall, at the request of the assigning Lender, duly execute and deliver to the
assigning Lender a promissory note or notes evidencing the Loans made to such
Borrower by the assigning Lender hereunder.
(i) None of the Borrowers shall assign or delegate any of its
rights or obligations hereunder; provided, however, that unless an Event of
Default has occurred and is continuing, Alcoa at any time and from time to time
may designate any wholly-owned Subsidiary to be a Borrowing Subsidiary upon the
completion of the following: (i) each of Alcoa and such Subsidiary shall have
executed and delivered to the Administrative Agent a Designation of Borrowing
Subsidiary and (ii) such Subsidiary shall have complied with Section 4.03,
whereupon (A) such Subsidiary shall become a party hereto and shall have the
rights and obligations of a Borrowing Subsidiary hereunder and (B) the
obligations of such Subsidiary shall become part of the Borrowing Subsidiary
Obligations and the guarantee of Alcoa pursuant to Article VIII hereof shall
apply thereto to the same extent that it applies to the other Borrowing
Subsidiary Obligations, if any (the date on which any such designation shall
occur being called a "Designation Date").
(j) Notwithstanding anything to the contrary contained herein,
any Lender (a "Granting Lender") may grant to a special purpose funding vehicle
(a "SPC") identified as a SPC in writing from time to time by the Granting
Lender to the Administrative Agent and Alcoa and being either an Affiliate of
the Granting Lender or an entity approved by Alcoa and the Administrative Agent,
the option to provide to the Borrower all or any part of any Loan that such
Granting Lender would otherwise be obligated to make to the Borrower pursuant to
this Agreement; provided that (i) nothing herein shall constitute a commitment
by any SPC to make any Loan and (ii) if a SPC elects not to exercise such option
or otherwise fails to provide all or any part of such Loan, the Granting Lender
shall be obligated to make such Loan pursuant to the terms hereof. The making of
a Loan by a SPC hereunder shall utilize the Commitment of the
52
Granting Lender to the same extent, and as if, such Loan were made by such
Granting Lender. Each party hereto hereby agrees that no SPC shall be liable for
any indemnity or similar payment obligation under this Agreement (all liability
for which shall remain with the Granting Lender). In furtherance of the
foregoing, each party hereto hereby agrees (which agreement 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 SPC, it will not institute against, or join any other
person in instituting against, such SPC 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 Section 10.04(j), any SPC may (i) with notice to, but
without the prior written consent of, the Borrower and the Administrative Agent
and without paying any processing fee therefor, assign all or a portion of its
interests in any Loans to the Granting Lender or to any financial institutions
(consented to by the Borrower and Administrative Agent) providing liquidity
and/or credit support to or for the account of such SPC to support the funding
or maintenance of Loans 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 enhancement to such
SPC. This section may not be amended without the written consent of the SPC.
SECTION 10.05. Expenses; Indemnity. (a) Alcoa agrees to pay or
cause one or more other Borrowers to pay all reasonable out-of-pocket expenses
incurred by the Administrative Agent in connection with the preparation of this
Agreement or in connection with any amendments, modifications or waivers of the
provisions hereof or thereof (whether or not the transactions hereby
contemplated shall be consummated) or incurred by the Administrative Agent or
any Lender in connection with the enforcement of their rights in connection with
this Agreement or in connection with the Loans made hereunder, including the
reasonable fees, charges and disbursements of Cravath, Swaine & ▇▇▇▇▇, counsel
for the Administrative Agent, and, in connection with any such enforcement, the
reasonable fees, charges and disbursements of any other counsel for the
Administrative Agent or any Lender. Alcoa further agrees to indemnify or cause
one or more other Borrowers to indemnify the Lenders from and hold them harmless
against any documentary taxes, assessments or charges made by any Governmental
Authority by reason of the execution and delivery of this Agreement.
(b) Alcoa agrees to indemnify or cause one or more other
Borrowers to indemnify the Administrative Agent, its Affiliates, each Lender and
each of their respective directors, officers, employees and agents (each such
person being called an "Indemnitee") against, and to hold or cause one or more
other Borrowers to hold each Indemnitee harmless from, any and all losses,
claims, damages, liabilities and related expenses, including reasonable counsel
fees, charges and disbursements, incurred by or asserted against any Indemnitee
arising out of, in any way connected with, or as a result of (i) the execution
or delivery of this Agreement or any agreement or instrument contemplated
hereby, the performance by the parties thereto of their respective
53
obligations thereunder or the consummation of the transactions contemplated
thereby, (ii) the use of the proceeds of the Loans or (iii) any claim,
litigation, investigation or proceeding relating to any of the foregoing,
whether or not any Indemnitee is a party thereto; provided that such indemnity
shall not, as to any Indemnitee, be available to the extent that such losses,
claims, damages, liabilities or related expenses are determined by a court of
competent jurisdiction by final and nonappealable judgment to have resulted from
the gross negligence or wilful misconduct of such Indemnitee. The Administrative
Agent and each Lender agrees to promptly notify Alcoa of any claims relating to
clauses (i), (ii) or (iii) of the next preceding sentence; provided, however,
that any failure to deliver any such notice shall not relieve Alcoa from its
obligations under this paragraph (b).
(c) The provisions of this Section 10.05 shall remain
operative and in full force and effect regardless of the expiration of the term
of this Agreement, the consummation of the transactions contemplated hereby, the
repayment of any of the Loans, the invalidity or unenforceability of any term or
provision of this Agreement, or any investigation made by or on behalf of the
Administrative Agent or Lender. All amounts due under this Section 10.05 shall
be payable on written demand therefor.
SECTION 10.06. Right of Setoff. If an Event of Default shall
have occurred and be continuing, each Lender is hereby authorized at any time
and from time to time, to the fullest extent permitted by law, to set off and
apply any and all deposits (general or special, time or demand, provisional or
final) at any time held and other indebtedness at any time owing by such Lender
or its Affiliates to or for the credit or the account of any Borrower against
any of and all the obligations of such Borrower (or, in the case of Alcoa, any
of and all the obligations of any Borrowing Subsidiary) now or hereafter
existing under this Agreement held by such Lender, irrespective of whether or
not such Lender shall have made any demand under this Agreement or otherwise and
although such obligations may be unmatured. The rights of each Lender under this
Section are in addition to other rights and remedies (including other rights of
setoff) which such Lender may have.
SECTION 10.07. Applicable Law. THIS AGREEMENT SHALL BE
CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK
WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS.
SECTION 10.08. Waivers; Amendment. (a) No failure or delay of
the Administrative Agent or any Lender in exercising any power or right
hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right or power, or any abandonment or discontinuance of
steps to enforce such a right or power, preclude any other or further exercise
thereof or the exercise of any other right or power. The rights and remedies of
the Administrative Agent and the Lenders hereunder are cumulative and are not
exclusive of any rights or remedies which they would otherwise have. No waiver
of any provision of this Agreement or consent to any departure by any Borrower
therefrom shall in any event be effective unless the same
54
shall be permitted by paragraph (b) below, and then such waiver or consent shall
be effective only in the specific instance and for the purpose for which given.
No notice or demand on any Borrower in any case shall entitle such Borrower to
any further notice or shall entitle such Borrower or any other Borrower to
notice or demand in similar or other circumstances.
(b) Neither this Agreement nor any provision hereof may be
waived, amended or modified except pursuant to an agreement or agreements in
writing entered into by the Borrowers and the Required Lenders; provided,
however, that no such agreement shall (i) decrease the principal amount of, or
extend the maturity of or any scheduled principal payment date or date for the
payment of any interest on any Loan or date fixed for payment of any Facility
Fee, or waive or excuse any such payment or any part thereof, or decrease the
rate of interest on any Loan, without the prior written consent of each Lender
affected thereby, (ii) change or extend the Commitment or decrease the Facility
Fees of any Lender without the prior written consent of such Lender, (iii) amend
or modify the provisions of Section 2.14, the provisions of this Section or the
definition of "Required Lenders", without the prior written consent of each
Lender or (iv) amend, modify or otherwise affect the rights or duties of the
Administrative Agent hereunder without the prior written consent of such Agent.
Each Lender and each assignee thereof shall be bound by any waiver, consent,
amendment or modification authorized by this Section.
SECTION 10.09. Interest Rate Limitation. Notwithstanding
anything herein to the contrary, if at any time the applicable interest rate,
together with all fees and charges which are treated as interest under
applicable law (collectively the "Charges"), as provided for herein or in any
other document executed in connection herewith, or otherwise contracted for,
charged, received, taken or reserved by any Lender, shall exceed the maximum
lawful rate (the "Maximum Rate") which may be contracted for, charged, taken,
received or reserved by such Lender in accordance with applicable law, the rate
of interest payable to such Lender, together with all Charges payable to such
Lender, shall be limited to the Maximum Rate.
SECTION 10.10. Entire Agreement. This Agreement and the
Engagement Letter constitute the entire contract between the parties relative to
the subject matter hereof. Any previous agreement among the parties with respect
to the subject matter hereof is superseded by this Agreement and the Engagement
Letter. Nothing in this Agreement or the Engagement Letter, expressed or
implied, is intended to confer upon any party other than the parties hereto and
thereto any rights, remedies, obligations or liabilities under or by reason of
this Agreement or the Engagement Letter.
SECTION 10.11. Waiver of Jury Trial. Each party hereto hereby
waives, to the fullest extent permitted by applicable law, any right it may have
to a trial by jury in respect of any litigation directly or indirectly arising
out of, under or in connection with this Agreement. Each party hereto (a)
certifies that no representative, agent or attorney of any other party has
represented, expressly or otherwise, that such
55
other party would not, in the event of litigation, seek to enforce the foregoing
waiver and (b) acknowledges that it and the other parties hereto have been
induced to enter into this Agreement, as applicable, by, among other things, the
mutual waivers and certifications in this Section 10.11.
SECTION 10.12. Severability. In the event any one or more of
the provisions contained in this Agreement should be held invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein and therein shall not in any way be
affected or impaired thereby. The parties shall endeavor in good-faith
negotiations to replace the invalid, illegal or unenforceable provisions with
valid provisions the economic effect of which comes as close as possible to that
of the invalid, illegal or unenforceable provisions.
SECTION 10.13. Counterparts. This Agreement may be executed in
two or more counterparts, each of which shall constitute an original but all of
which when taken together shall constitute but one contract, and shall become
effective as provided in Section 10.03.
SECTION 10.14. Headings. Article and Section headings and the
Table of Contents used herein are for convenience of reference only, are not
part of this Agreement and are not to affect the construction of, or to be taken
into consideration in interpreting, this Agreement.
SECTION 10.15. Jurisdiction, Consent to Service of Process.
(a) Each Borrower hereby irrevocably and unconditionally submits, for itself and
its property, to the nonexclusive jurisdiction of any New York State court or
Federal court of the United States of America sitting in New York City, and any
appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement, or for recognition or enforcement of any judgment,
and each of the parties hereto hereby irrevocably and unconditionally agrees
that all claims in respect of any such action or proceeding may be heard and
determined in such New York State or, to the extent permitted by law, in such
Federal court. Each of the parties hereto agrees that a final judgment in any
such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.
Nothing in this Agreement shall affect any right that any Lender may otherwise
have to bring any action or proceeding relating to this Agreement against any
Borrower or its properties in the courts of any jurisdiction.
(b) Each Borrower hereby irrevocably and unconditionally
waives, to the fullest extent it may legally and effectively do so, any
objection which it may now or hereafter have to the laying of venue of any suit,
action or proceeding arising out of or relating to this Agreement in any New
York State or Federal court. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.
56
(c) Each party to this Agreement irrevocably consents to
service of process in the manner provided for notices in Section 10.01. Nothing
in this Agreement will affect the right of any party to this Agreement to serve
process in any other manner permitted by law.
SECTION 10.16. Conversion of Currencies. (a) If, for the
purpose of obtaining judgment in any court, it is necessary to convert a sum due
hereunder in dollars into another currency, the parties hereto agree, to the
fullest extent that they may legally and effectively do so, that the rate of
exchange used shall be that at which in accordance with normal banking
procedures the Administrative Agent could purchase dollars with such other
currency in The City of New York, on the Business Day immediately preceding the
day on which final judgment is given.
(b) The obligation of each Borrower in respect of any sum due
to any Lender hereunder in dollars shall, to the extent permitted by applicable
law, notwithstanding any judgment in a currency other than dollars, be
discharged only to the extent that on the Business Day following receipt of any
sum adjudged to be so due in the judgment currency such Lender may in accordance
with normal banking procedures purchase dollars in the amount originally due to
such Lender with the judgment currency. If the amount of dollars so purchased is
less than the sum originally due to such Lender, such Borrower agrees, as a
separate obligation and notwithstanding any such judgment, to indemnify such
Lender against the resulting loss.
57
IN WITNESS WHEREOF, the Borrower, the Administrative Agent and the
Lenders have caused this Agreement to be duly executed by their respective
authorized officers as of the day and year first above written.
ALCOA INC.,
by
Name:
Title:
THE CHASE MANHATTAN BANK,
individually and as
Administrative Agent,
by
Name:
Title:
ABN AMRO BANK N.V.,
by
Name:
Title:
by
Name:
Title:
AUSTRALIA AND NEW ZEALAND
BANKING GROUP LIMITED,
by
Name:
Title:
▇▇
▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇
▇▇▇▇ Branch,
by
Name:
Title:
by
Name:
Title:
BANCO BILBAO VIZCAYA ARGENTARIA, S.A.,
by
Name:
Title:
by
Name:
Title:
BANK OF MONTREAL,
by
Name:
Title:
BANK OF TOKYO-MITSUBISHI TRUST COMPANY,
by
Name:
Title:
59
BANK ONE, N.A.,
by
Name:
Title:
BNP PARIBAS,
by
Name:
Title:
CITIBANK, N.A.,
by
Name:
Title:
COMMERZBANK AG, New York and Grand
Cayman Branches,
by
Name:
Title:
by
Name:
Title:
60
CREDIT SUISSE FIRST BOSTON,
by
Name:
Title:
by
Name:
Title:
DEUTSCHE BANK AG, New York Branch
and/or Cayman Islands Branch,
by
Name:
Title:
by
Name:
Title:
THE FUJI BANK LIMTED,
by
Name:
Title:
MELLON BANK, N.A.,
by
Name:
Title:
61
NATIONAL AUSTRALIA BANK LIMITED,
by
Name:
Title:
SANPAOLO IMI S.p.A,
by
Name:
Title:
by
Name:
Title:
EXHIBIT A
TO CREDIT AGREEMENT
[FORM OF]
ASSIGNMENT AND ACCEPTANCE
Reference is made to the Amended and Extended 364-Day
Revolving Credit Agreement dated as of April 27, 2001 (as amended from time to
time, the "Credit Agreement"), among Alcoa Inc. ("Alcoa"), a Pennsylvania
corporation, certain subsidiaries of Alcoa, the Lenders, and The Chase Manhattan
Bank, as the Administrative Agent for the Lenders. Terms defined in the Credit
Agreement are used herein with the same meanings.
1. The Assignor hereby sells and assigns, without recourse, to
the Assignee, and the Assignee hereby purchases and assumes, without recourse,
from the Assignor, effective as of the Assignment Effective Date set forth on
the reverse hereof, the interests set forth on the reverse hereof (the "Assigned
Interest") in the Assignor's rights and obligations under the Credit Agreement,
including, without limitation, the Commitment of the Assignor on the Assignment
Effective Date and the Loans owing to the Assignor which are outstanding on the
Assignment Effective Date, together with unpaid interest accrued on the assigned
Loans to the Assignment Effective Date and the amount, if any, set forth on the
reverse hereof of the Fees accrued to the Assignment Effective Date for the
account of the Assignor. Each of the Assignor and the Assignee hereby makes and
agrees to be bound by all the representations, warranties and agreements set
forth in Section 10.04(c) of the Credit Agreement, a copy of which has been
received by each such party. From and after the Assignment Effective Date (i)
the Assignee shall be a party to and be bound by the provisions of the Credit
Agreement and, to the extent of the interests assigned by this Assignment and
Acceptance, have the rights and obligations of a Lender thereunder and (ii) the
Assignor shall, to the extent of the interests assigned by this Assignment and
Acceptance, relinquish its rights and be released from its obligations under the
Credit Agreement.
2. This Assignment and Acceptance is being delivered to the
Administrative Agent together with (i) if the Assignee is a Lender and is
organized under the laws of a jurisdiction outside the United States, the forms
specified in Section 2.18(g) of the Credit Agreement, duly completed and
executed by such Assignee, (ii) if the Assignee is not already a Lender under
the Credit Agreement, an Administrative Questionnaire in the form of Exhibit B
to the Credit Agreement and (iii) a processing and recordation fee of $2,500.
2
3. This Assignment and Acceptance shall be governed by and
construed in accordance with the laws of the State of New York.
Date of Assignment:
Legal Name of Assignor:
Legal Name of Assignee:
Assignee's Address for Notices:
Assignment Effective Date of Assignment (may
not be fewer than 5 Business Days after the
Date of Assignment):
========================================================================================================
Percentage Assigned of Applicable
Facility/Commitment(set forth, to at least
8 decimals, as a percentage of the
Facility/ Principal Facility and the aggregate Commitments
Commitment Amount Assigned of all Lenders thereunder)
---------- --------------- --------------------------
--------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------
Commitment $ %
--------------------------------------------------------------------------------------------------------
Loan: $ %
--------------------------------------------------------------------------------------------------------
Fees Assigned (if any): $ %
========================================================================================================
3
The terms set forth above and on the reverse side hereof are
hereby agreed to:
Accepted*/
_______________, as Assignor ALCOA INC.,
by:_________________________ by:_____________________
Name: Name:
Title: Title:
_______________, as Assignee THE CHASE MANHATTAN BANK
by:_________________________ by:_____________________
Name: Name:
Title: Title:
---------
*/ To be completed to the extent consents are required under Section 10.04(b) of
the Credit Agreement.
EXHIBIT B
TO CREDIT AGREEMENT
ADMINISTRATIVE QUESTIONNAIRE
ALCOA INC.
Please accurately complete the following information and return via FAX to the
attention of ▇▇▇▇▇ ▇▇▇▇ (▇▇▇) ▇▇▇-▇▇▇▇ at Chase Manhattan Bank as soon as
possible.
PHONE NUMBER: FAX NUMBER:
LEGAL NAME OF LENDER (TO APPEAR ON THE SIGNATURE LINE IN DOCUMENTATION):
------------------------------------------------------------------------
-----------------------------------------------------------
GENERAL INFORMATION - DOMESTIC LENDING OFFICE:
Institution Name: ____________________________
Street Address: ____________________________
City, State, Zip Code:____________________________
GENERAL INFORMATION - EURODOLLAR LENDING OFFICE:
Institution Name: ____________________________
Street Address: ____________________________
City, State, Zip Code:____________________________
TAX WITHHOLDING:
Non-Resident Alien: _____ Yes* ______ No*
*Form 4224 Enclosed
Tax ID Number: ____________________________
2
CONTACTS/NOTIFICATION METHODS:
CREDIT CONTACTS:
Primary Contact: ____________________________
Street Address: ____________________________
City, State, Zip Code: ____________________________
Phone Number: ____________________________
FAX Number: ____________________________
Backup Contact: ____________________________
Street Address: ____________________________
City, State, Zip Code: ____________________________
Phone Number: ____________________________
FAX Number: ____________________________
ADMINISTRATIVE CONTACTS - BORROWING, PAYMENTS, INTEREST, ETC...
Contact(s): ____________________________
Street Address: ____________________________
City, State, Zip Code: ____________________________
Phone Number: ____________________________
FAX Number: ____________________________
ACCOUNT INFORMATION - Please provide only one set of instructions for all types
of payments:
Name of Bank where funds are to be transferred:
--------------------------------------------------
Routing Transit/ABA number of Bank where funds are to be transferred:
--------------------------------------------------
3
Name of Account: ____________________________
Account Number: ____________________________
Additional Information: ____________________________
____________________________
It is very important that all of the above information is accurately filled in
and promptly returned. If there is someone other than yourself who should
receive this questionnaire, please notify us of their name and FAX number and we
will FAX them a copy of the questionnaire.
EXHIBIT C
TO CREDIT AGREEMENT
[Letterhead of]
ALCOA
April 27, 2001
The Chase Manhattan Bank, as Agent and each of the Lenders party to the
Agreement referred to below ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Ladies and Gentlemen:
I am Counsel of Alcoa Inc. ("Alcoa") and in such capacity have represented
Alcoa in connection with the Amended and Extended 364-Day Revolving Credit
Agreement dated as of April 27, 2001 (the "Agreement"), among Alcoa, certain
subsidiaries of Alcoa, the Lenders and The Chase Manhattan Bank, as the
Administrative Agent. This opinion is rendered to you pursuant to Section
4.01(a) of the Agreement. Capitalized terms used but not defined herein shall
have the meanings assigned to them in the Agreement.
In rendering the opinion expressed below, I have examined, either personally
or indirectly through other counsel, the originals or conformed copies of the
Agreement and such corporate records, agreements and instruments of Alcoa and
its Subsidiaries, certificates of public officials and of officers of Alcoa
and its Subsidiaries, and such other documents and records as I have deemed
appropriate as a basis for the opinions hereinafter expressed.
Based upon the foregoing and subject to the qualifications stated herein, I am
of the opinion that:
1. Alcoa is a corporation duly organized, validly existing and in good
standing under the laws of the Commonwealth of Pennsylvania and is duly
qualified to do business as a foreign corporation and is in good standing in
all other jurisdictions in which the ownership of its properties or the nature
of its activities or both makes such qualification necessary, except to the
extent that failure to be so qualified would not result in a Material Adverse
Effect.
2. Alcoa has corporate power and authority to execute, deliver and carry out
the provisions of the Agreement, to borrow under the Agreement and to perform
its
2
obligations thereunder and all such action has been duly and validly authorized
by all necessary corporate proceedings on its part.
3. The Agreement has been duly executed and delivered by Alcoa and constitutes
the legal, valid and binding obligation of Alcoa enforceable against Alcoa in
accordance with its terms, except as limited by bankruptcy, insolvency or
other similar laws of general application affecting the enforcement of
creditors' rights or by general principles of equity limiting the availability
of equitable remedies.
4. No authorization, consent, approval, license, exemption or other action by,
and no registration, qualification, designation, declaration or filing with,
any Governmental Authority is necessary in connection with Alcoa's execution
and delivery of the Agreement, the consummation by Alcoa of the transactions
contemplated therein or Alcoa's performance of or compliance with the terms
and conditions thereof, except as set forth on Schedule 3.04 to the Agreement.
5. The execution and delivery by Alcoa of the Agreement, the consummation by
Alcoa of the transactions contemplated thereby or performance by Alcoa of or
compliance with the terms and conditions thereof will not (a) violate any law,
constitution, statute, treaty, regulation, rule, ordinance, order, injunction,
writ, decree or award of any Governmental Authority to which it is subject,
(b) conflict with or result in a breach or default under its charter or
by-laws, (c) to the best of my knowledge, conflict with or result in a breach
or default which is material in the context of the Agreement under any
agreement or instrument to which Alcoa is a party or by which it or any of its
properties, whether now owned or hereafter acquired, may be subject or bound
or (d) result in the creation or imposition of any Lien prohibited by Section
6.01 of the Agreement upon any property or assets of Alcoa, whether now owned
or hereafter acquired.
6. Except as set forth in the financial statements referred to in Section 3.06
of the Agreement, any Exchange Act Report or otherwise disclosed on Schedule
3.08 to the Agreement, there is no pending or, to my knowledge, threatened
proceeding by or before any Governmental Authority against Alcoa or any of its
Subsidiaries which in my opinion is likely to result in a Material Adverse
Effect.
7. Alcoa is not an "investment company" as defined in, or subject to
regulation under, the Investment Company Act of 1940, and Alcoa is exempted as
a "holding company" as defined in the Public Utility Holding Company Act of
1935.
I am a member of the bar of the Commonwealth of Pennsylvania and my opinion is
limited to the laws of the Commonwealth of Pennsylvania and the laws of the
United States of America. I express no opinion herein as to whether a court
would apply New York law to any particular subject matter hereof. To the
extent that the laws of the State of New York or, contrary to the agreement of
the parties, the laws of any other State govern the documents referenced
herein, you may rely on my opinion with respect to such laws to the extent
that the laws of such state or states are substantially the same as
3
the laws of the Commonwealth of Pennsylvania, as to which sameness I express no
opinion.
Very truly yours,
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
19W
EXHIBIT D
TO CREDIT AGREEMENT
[FORM OF]
DESIGNATION OF BORROWING SUBSIDIARY
Reference is made to the Amended and Extended 364-Day Revolving Credit
Agreement dated as of April 27, 2001 (as amended from time to time, the "Credit
Agreement"), among Alcoa Inc. ("Alcoa"), a Pennsylvania corporation, certain
subsidiaries of Alcoa, the Lenders and The Chase Manhattan Bank, as the
Administrative Agent for the Lenders. Terms defined in the Credit Agreement are
used herein with the same meanings.
1. Alcoa hereby designates [ ], a [ ] corporation (the
"Subsidiary"), effective as of [ ], 20[ ] (the "Designation Date"), as a
Borrowing Subsidiary under the Credit Agreement. The Subsidiary hereby makes and
agrees to be bound by all the representations, warranties and agreements set
forth in Article III, V and VI of the Credit Agreement. From and after the
Designation Date, the Subsidiary shall become a party to the Credit Agreement
and shall have the rights and obligations of a Borrowing Subsidiary thereunder.
Alcoa agrees that its guarantee pursuant to Article VIII of the Credit Agreement
shall apply to the Borrowings of the Subsidiary.
2. This Designation of Borrowing Subsidiary is being delivered to the
Administrative Agent together with the documents set forth in Section 4.03(a).
3. This Designation of Borrowing Subsidiary shall be governed by and
construed in accordance with the laws of the State of New York.
The terms set forth above are hereby agreed to:
2
[ ], as Subsidiary,
by
--------------------------
Name:
Title:
ALCOA INC.,
by
--------------------------
Name:
Title:
Accepted:
THE CHASE MANHATTAN BANK, as the Administrative Agent
by
----------------------
Name:
Title:
SCHEDULE 2.01
----------------------------------------------------------------------------------------
Contact Person
Name and Address and Telephone
of the Lenders and Telecopy Numbers Commitment (U.S.$)
-------------- -------------------- ------------------
----------------------------------------------------------------------------------------
The Chase Manhattan Bank ▇▇▇▇▇ ▇▇▇▇▇▇ $ 215,000,000.00
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, Tel: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇ Fax: ▇▇▇-▇▇▇-▇▇▇▇
----------------------------------------------------------------------------------------
ABN AMRO Bank, N.V. ▇▇▇▇▇▇ ▇▇▇▇▇▇ $ 170,000,000.00
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, Tel: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇ Fax: ▇▇▇-▇▇▇-▇▇▇▇
----------------------------------------------------------------------------------------
Australian and New Zealand ▇▇▇▇▇ ▇▇▇▇ $ 100,000,000.00
Banking Group Ltd. Tel: ▇▇▇-▇▇▇-▇▇▇▇
1177 Avenue of the Americas, Fax: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
----------------------------------------------------------------------------------------
Banca Commerciale Italiana ▇▇▇▇▇ ▇▇▇▇▇▇ $ 140,000,000.00
▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, Tel: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇ Fax: ▇▇▇-▇▇▇-▇▇▇▇
----------------------------------------------------------------------------------------
Banco Bilbao Vizcaya ▇▇▇▇▇▇ ▇▇▇▇ $ 75,000,000.00
Argentaria, S.A. Tel: ▇▇▇-▇▇▇-▇▇▇▇
1345 Avenue of the Americas, Fax: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
----------------------------------------------------------------------------------------
Bank of Montreal ▇▇▇ ▇▇▇▇▇▇▇ $ 60,000,000.00
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, Tel: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇ Fax: ▇▇▇-▇▇▇-▇▇▇▇
----------------------------------------------------------------------------------------
Bank of ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ $ 60,000,000.00
Tokyo-Mitsubishi Trust Company Tel: ▇▇▇-▇▇▇-▇▇▇▇
1251 Avenue of the Americas, Fax: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
----------------------------------------------------------------------------------------
Bank One, N.A. ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ $ 50,000,000.00
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, Tel: ▇▇▇-▇▇▇-▇▇▇▇
2nd Flr. Fax: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
----------------------------------------------------------------------------------------
BNP Paribas ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ $ 140,000,000.00
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, Tel: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇ Fax: ▇▇▇-▇▇▇-▇▇▇▇
----------------------------------------------------------------------------------------
Citibank, N.A. ▇▇▇ ▇▇▇▇▇▇▇ $ 170,000,000.00
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, Tel: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇ Fax: ▇▇▇-▇▇▇-▇▇▇▇
----------------------------------------------------------------------------------------
2
----------------------------------------------------------------------------------------
Contact Person
Name and Address and Telephone
of the Lenders and Telecopy Numbers Commitment (U.S.$)
-------------- -------------------- ------------------
----------------------------------------------------------------------------------------
COMMERZBANK AG, ▇▇▇▇▇▇ ▇▇▇▇▇▇ $ 140,000,000.00
2 World Financial Center, Tel: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇ Fax: ▇▇▇-▇▇▇-▇▇▇▇
----------------------------------------------------------------------------------------
Credit Suisse First Boston ▇▇▇ ▇▇▇▇▇ $ 170,000,000.00
▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, Tel: ▇▇▇-▇▇▇-▇▇▇▇
20th Flr. Fax: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
----------------------------------------------------------------------------------------
Deutsche Bank AG ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ $ 170,000,000.00
▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇ Tel: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇ Fax: ▇▇▇-▇▇▇-▇▇▇▇
----------------------------------------------------------------------------------------
The Fuji Bank Ltd. ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ $ 60,000,000.00
Two World Trade Center, Tel: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇ Fax: ▇▇▇-▇▇▇-▇▇▇▇
----------------------------------------------------------------------------------------
Mellon Bank, N.A. ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇ $ 140,000,000.00
One Mellon Bank Center, Tel: ▇▇▇-▇▇▇-▇▇▇▇
Pittsburgh, PA Fax: ▇▇▇-▇▇▇-▇▇▇▇
15258-0001
----------------------------------------------------------------------------------------
National Australia Bank Ltd. ▇▇▇▇ ▇▇▇▇▇▇ $ 80,000,000.00
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, Tel: ▇▇▇-▇▇▇-▇▇▇▇
34th Flr. Fax: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
----------------------------------------------------------------------------------------
SanPaolo IMI S.p.A ▇▇▇▇ ▇▇▇▇▇▇ $ 60,000,000.00
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, Tel: ▇▇▇-▇▇▇-▇▇▇▇
35th Flr. Fax: ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
----------------------------------------------------------------------------------------
Total: $2,000,000,000.00
=================
----------------------------------------------------------------------------------------
SCHEDULE 3.04
Governmental Approvals
----------------------
International Capital Form S filed with the Federal Reserve Bank of New York.
SCHEDULE 3.08
Litigation
----------
None.
SCHEDULE 6.01(a)
Liens
-----
Liens related to the following tax-exempt municipal bond (and other) issues:
Saline County, Arkansas 1999 4,650,000
St. ▇▇▇▇▇▇▇▇ County, New York Series A 1999 9,640,000
▇▇▇▇▇ County, Texas Series 1999 16,855,000
Indiana Development Finance
Authority Series 1999 13,905,000
St. ▇▇▇▇▇▇▇▇ County, New York Series A 1998 22,800,000
Yankton, South Dakota Series 1997 9,000,000
Hutchinson, Kansas HUD UDAG Loan 1996 399,301
Berkeley County, South Carolina Series 1996 27,450,000
St. Louis, Missouri Series 1992 4,840,000
▇▇▇▇▇▇▇▇▇ County, Maryland Series 1992 9,880,000
▇▇▇▇▇▇▇ County, Indiana Series 1992 12,475,000
▇▇▇▇▇▇ County, Tennessee Series 1992 2,450,000
Lebanon County, Pennsylvania Series 1992 1,020,000
Lebanon County, Pennsylvania Series 1992 1,000,000
▇▇▇▇▇▇▇ County, Texas Series 1992 9,000,000
▇▇▇▇▇ County, Texas Series 1995 11,000,000
▇▇▇▇▇▇▇ County Navigation District, Texas
Series 1995 7,700,000
State of Ohio Series 1996 2,150,000
Chelan County, Washington Series 1995 14,000,000
Vidalia, Louisiana Series 1995 10,000,000
Tifton, Georgia Series 1996 10,000,000
▇▇▇▇▇▇▇▇▇ County, Maryland Series 1978 2,145,000
Saline County, Arkansas Series 1977 900,000
St. ▇▇▇▇▇▇▇▇ County, New York Series 1977 900,000
▇▇▇▇▇▇ County, Tennessee Series 1977 2,010,000
TOTAL $206,169,301
------------
2
Leased Equipment:
Alcoa Manufacturing (G.B.) Limited $ 7,818,701
Shibazaki Seisakusho Limited 1,968,659
Alumax Europe N.V. 3,562
Alcoa Transformacion S.A. $ 34,977
TOTAL 9,825,899
-----------
Mortgages and Capital Leases:
Alcoa Inc. $32,865,442
Alcoa Automotive Castings 15,179
A-CMI 15,520,000
TOTAL $48,400,621
-----------