Exhibit 10.1
U.S. $2,000,000,000
FIVE-YEAR CREDIT AGREEMENT
Dated as of September 5, 2000
Among
GENUITY INC.
as Borrower,
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THE INITIAL LENDERS NAMED HEREIN
as Initial Lenders,
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THE CHASE MANHATTAN BANK
as Administrative Agent,
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CHASE SECURITIES, INC.
as Arranger,
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CITIBANK, N.A.
as Syndication Agent,
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and
CREDIT SUISSE FIRST BOSTON
and
DEUTSCHE BANK AG, NEW YORK AND/OR CAYMAN ISLANDS BRANCHES
as Co-Documentation Agents
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TABLE OF CONTENTS
Page
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ARTICLE I
DEFINITIONS AND ACCOUNTING TERMS
SECTION 1.01. Certain Defined Terms....................................... 9
SECTION 1.02. Computation of Time Periods................................. 22
SECTION 1.03. Accounting Terms............................................ 22
ARTICLE II
AMOUNTS AND TERMS OF THE ADVANCES
SECTION 2.01. The Revolving Credit Advances............................... 22
SECTION 2.02. Making the Revolving Credit Advances........................ 22
SECTION 2.03. The Competitive Bid Advances................................ 24
SECTION 2.04. Fees........................................................ 28
SECTION 2.05. Termination, Reduction or Increase of the Commitments....... 28
SECTION 2.06. Repayment of Revolving Credit Advances...................... 30
SECTION 2.07. Interest.................................................... 30
SECTION 2.08. Interest Rate Determination................................. 31
SECTION 2.09. Optional Conversion of Revolving Credit Advances............ 32
SECTION 2.10. Optional Prepayments of Revolving Credit Advances........... 33
SECTION 2.11. Increased Costs............................................. 33
SECTION 2.12. Illegality.................................................. 34
SECTION 2.13. Payments and Computations................................... 34
SECTION 2.14. Taxes....................................................... 35
SECTION 2.15. Sharing of Payments, Etc.................................... 38
SECTION 2.16. Use of Proceeds............................................. 38
ARTICLE III
CONDITIONS TO EFFECTIVENESS AND LENDING
SECTION 3.01. Conditions Precedent to Effectiveness of Sections 2.01 and 2.03.............. 39
SECTION 3.02. Conditions Precedent to Each Revolving Credit Borrowing..................... 40
SECTION 3.03. Conditions Precedent to Each Competitive Bid Borrowing...................... 41
SECTION 3.04. Determinations Under Section 3.01........................................... 41
ARTICLE IV
REPRESENTATIONS AND WARRANTIES
SECTION 4.01. Representations and Warranties of the Borrower.............................. 42
ARTICLE V
COVENANTS OF THE BORROWER
SECTION 5.01. Affirmative Covenants....................................................... 43
SECTION 5.02. Negative Covenants.......................................................... 46
SECTION 5.03. Financial Covenant.......................................................... 48
ARTICLE VI
EVENTS OF DEFAULT
SECTION 6.01. Events of Default........................................................... 48
ARTICLE VII
THE AGENT
SECTION 7.01. Authorization and Action.................................................... 51
SECTION 7.02. Agent's Reliance, Etc....................................................... 51
SECTION 7.03. Chase and Affiliates........................................................ 51
SECTION 7.04. Lender Credit Decision...................................................... 52
SECTION 7.05. Indemnification............................................................. 52
SECTION 7.06. Successor Agent............................................................. 52
SECTION 7.07. Other Agents................................................................ 53
ARTICLE VIII
MISCELLANEOUS
SECTION 8.01. Amendments, Etc............................................... 53
SECTION 8.02. Notices, Etc.................................................. 54
SECTION 8.03. No Waiver; Remedies........................................... 54
SECTION 8.04. Costs and Expenses............................................ 54
SECTION 8.05. Right of Set-off.............................................. 56
SECTION 8.06. Binding Effect................................................ 56
SECTION 8.07. Assignments and Participations................................ 56
SECTION 8.08. Governing Law................................................. 59
SECTION 8.09. Execution in Counterparts..................................... 59
SECTION 8.10. Jurisdiction, Etc............................................. 60
SECTION 8.11. Waiver of Jury Trial.......................................... 61
Schedules
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Schedule I - List of Applicable Lending Offices
Schedule 5.02(a)- Existing Liens
Exhibits
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Exhibit A-1 - Form of Revolving Credit Note
Exhibit A-2 - Form of Competitive Bid Note
Exhibit B-1 - Form of Notice of Revolving Credit Borrowing
Exhibit B-2 - Form of Notice of Competitive Bid Borrowing
Exhibit C - Form of Assignment and Acceptance
Exhibit D - Form of Assumption Agreement
Exhibit E - Form of Opinion of Counsel for the Borrower
Exhibit F - Form of Guaranty
FIVE-YEAR CREDIT AGREEMENT
Dated as of September 5, 2000
Genuity Inc., a Delaware corporation (the "Borrower"), the banks,
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financial institutions and other institutional lenders (the "Initial Lenders")
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listed on the signature pages hereof, The Chase Manhattan Bank ("Chase"), as
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administrative agent (in such capacity, the "Agent") for the Lenders (as
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hereinafter defined), Chase Securities, Inc., as arranger (the "Arranger"),
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Citibank, N.A., as syndication agent, and Credit Suisse First Boston and
Deutsche Bank AG, New York and/or Cayman Islands Branches, as co-documentation
agents, agree as follows:
ARTICLE I
DEFINITIONS AND ACCOUNTING TERMS
1. Certain Defined Terms. As used in this Agreement, the following
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terms shall have the following meanings (such meanings to be equally applicable
to both the singular and plural forms of the terms defined):
"Advance" means a Revolving Credit Advance or a Competitive Bid
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Advance.
"Affiliate" means, as to any Person, any other Person that, directly
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or indirectly, controls, is controlled by or is under common control with
such Person or is a director or officer of such Person. For purposes of
this definition, the term "control" (including the terms "controlling",
"controlled by" and "under common control with") of a Person means the
possession, direct or indirect, of the power to vote 5% or more of the
Voting Stock of such Person or to direct or cause the direction of the
management and policies of such Person, whether through the ownership of
Voting Stock, by contract or otherwise.
"Agent's Account" means the account of the Agent maintained by the
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Agent at Chase with its office at 000 Xxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx
00000, Account No. __________, Attention: __________.
"Applicable Lending Office" means, with respect to each Lender, such
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Lender's Domestic Lending Office in the case of a Base Rate Advance and
such Lender's Eurodollar Lending Office in the case of a Eurodollar Rate
Advance and, in the case of a Competitive Bid Advance, the office of such
Lender notified by such Lender to the Agent as its Applicable Lending
Office with respect to such Competitive Bid Advance.
"Applicable Margin" means, as of any date, a percentage per annum
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determined by reference to the Performance Level in effect on such date as
set forth below:
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Performance Level Applicable Margin Applicable Margin for
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for Eurodollar Rate
--- ---------------
Base Rate Advances Advances
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Xxxxx 0 0.000% 0.220%
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Xxxxx 0 0.000% 0.285%
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Xxxxx 0 0.000% 0.300%
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Xxxxx 0 0.000% 0.375%
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Xxxxx 0 0.000% 0.475%
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Xxxxx 0 0.000% 0.550%
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Xxxxx 0 0.000% 1.000%
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Xxxxx 0 0.000% 1.355%
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Xxxxx 0 0.000% 1.750%
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Xxxxx 00 0.000% 2.250%
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Xxxxx 00 0.000% 2.750%
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Xxxxx 00 0.000% 3.250%
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"Applicable Percentage" means, as of any date, a percentage per annum
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determined by reference to the Performance Level in effect on such date as set
forth below:
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Performance Level Applicable
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Percentage
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Xxxxx 0 0.080%
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Xxxxx 0 0.090%
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Xxxxx 0 0.100%
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Xxxxx 0 0.125%
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Xxxxx 0 0.150%
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Xxxxx 0 0.200%
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Xxxxx 0 0.250%
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Xxxxx 0 0.375%
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Xxxxx 0 0.50%
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Xxxxx 00 0.50%
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Xxxxx 00 0.50%
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Xxxxx 00 0.50%
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"Assignment and Acceptance" means an assignment and acceptance entered into
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by a Lender and an Eligible Assignee, and accepted by the Agent, in
substantially the form of Exhibit C hereto.
"Assuming Lender" means an Eligible Assignee not previously a Lender that
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becomes a Lender hereunder pursuant to Section 2.05(b).
"Assumption Agreement" means an agreement in substantially the form of
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Exhibit D hereto by which an Eligible Assignee agrees to become a Lender
hereunder pursuant to Section 2.05(b), in each case agreeing to be bound by
all obligations of a Lender hereunder.
"Base Rate" means a fluctuating interest rate per annum in effect from
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time to time, which rate per annum shall at all times be equal to the
higher of:
(a) the rate of interest annOunced publicly by Chase in New York,
New York, from time to time, as Chase's prime rate that is offered to
its customers generally (before giving effect to any applicable
margin); and
(b) 1/2 of 1% per annum above the Federal Funds Rate.
"Base Rate Advance" means a Revolving Credit Advance that bears
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interest as provided in Section 2.07(a)(i).
"Borrowing" means a Revolving Credit Borrowing or a Competitive Bid
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Borrowing.
"Business Day" means a day of the year on which banks are not required
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or authorized by law to close in New York City, provided that, if the
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applicable Business Day relates to any Eurodollar Rate Advances, "Business
Day" means a day of the year on which banks are not required or authorized
by law to close in New York City and on which dealings are carried on in
the London interbank market.
"Commitment" has the meaning specified in Section 2.01.
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"Commitment Date" has the meaning specified in Section 2.05(b)(i).
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"Commitment Increase" has the meaning specified in Section 2.05(b)(i).
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"Competitive Bid Advance" means an advance by a Lender to the Borrower
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as part of a Competitive Bid Borrowing resulting from the competitive
bidding procedure described in Section 2.03 and refers to a Fixed Rate
Advance or a LIBO Rate Advance.
"Competitive Bid Borrowing" means a borrowing consisting of
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simultaneous Competitive Bid Advances from each of the Lenders whose offer
to make one or more Competitive Bid Advances as part of such borrowing has
been accepted under the competitive bidding procedure described in Section
2.03.
"Competitive Bid Note" means a promissory note of the Borrower payable
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to the order of any Lender, in substantially the form of Exhibit A-2
hereto, evidencing the indebtedness of the Borrower to such Lender
resulting from a Competitive Bid Advance made by such Lender.
"Competitive Bid Reduction" has the meaning specified in Section 2.01.
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"Consolidated" refers to the consolidation of accounts in accordance
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with GAAP.
"Contributed Capital" as of any date means the sum, without
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duplication, of (a) capital attributed to the Borrower's Class A Common
Stock, (b) capital attributed to the Borrower's Class B Common Stock, (c)
additional paid-in capital and (d) all other equity issued by the Borrower
and retained for use in its operations, in each case as presented on the
most recent Consolidated balance sheet of the Borrower delivered in
accordance with Section 5.01(i), provided, that with respect to any equity
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issued in connection with an acquisition, such equity shall be deemed to be
in an amount equal to the fair market value of such equity at the date of
such acquisition.
"Conversion", "Convert" and "Converted" each refers to a conversion
---------- ------- ---------
of Revolving Credit Advances of one Type into Revolving Credit Advances of
the other Type pursuant to Section 2.08 or 2.09.
"Debt" of any Person means, without duplication, (a) all indebtedness
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of such Person for borrowed money, (b) all obligations of such Person for
the deferred purchase price of property or services (other than trade
payables incurred in the ordinary course of such Person's business for
which collection proceedings have not been commenced, provided that trade
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payables for which collection proceedings have commenced shall not be
included in the term "Debt" so long as the payment of such trade payables
is being contested in good faith and by proper proceedings and for which
appropriate reserves are being maintained), (c) all obligations of such
Person evidenced by notes, bonds, debentures or other similar instruments,
(d) all obligations of such Person created or arising under any conditional
sale or other similar title retention agreement with respect to property
acquired by such Person (even though the rights and remedies of the seller
or lender under such agreement in the event of default are limited to
repossession or sale of such property), (e) all obligations of such Person
as lessee under leases that have been, in accordance with GAAP, recorded as
capital leases, (f) all obligations of such Person in respect of
acceptances, letters of credit or similar extensions of credit, (g) all net
obligations of such Person in respect of Hedge Agreements, (h) all Debt of
others referred to in clauses (a) through (g) above or clause (i) below
guaranteed directly, or indirectly through a Subsidiary, by such Person, or
in effect guaranteed directly, or indirectly through a Subsidiary, by such
Person through a written agreement either (1) to pay or purchase such Debt
or to advance or supply funds for the payment or purchase of such Debt or
(2) to purchase, sell or lease (as lessee or lessor) property, or to
purchase or sell services, primarily for the purpose of enabling the debtor
to make payment of such Debt or to assure the holder of such Debt against
loss, and (i) all Debt referred to in clauses (a) through (h) above secured
by (or for which the holder of such Debt has an existing right, contingent
or otherwise, to be secured by) any Lien on property (including, without
limitation, accounts and contract rights) owned by such Person, even though
such Person has not assumed or become liable for the payment of such Debt.
"Default" means any Event of Default or any event that would
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constitute an Event of Default but for the requirement that notice be given
or time elapse or both.
"Domestic Lending Office" means, with respect to any Lender, the
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office of such Lender specified as its "Domestic Lending Office" opposite
its name on Schedule I hereto or in the Assumption Agreement or the
Assignment and Acceptance pursuant to which it became a Lender, or such
other office of such Lender as such Lender may from time to time specify to
the Borrower and the Agent.
"Domestic Subsidiary" means a Subsidiary that is organized under the
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laws of any political subdivision of the United States.
"Effective Date" has the meaning specified in Section 3.01.
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"Eligible Assignee" means (a) a Lender; (b) an Affiliate of a Lender;
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(c) a commercial bank organized under the laws of the United States, or any
State thereof, and having total assets in excess of $5,000,000,000; (d) a
savings and loan association or savings bank organized under the laws of
the United States, or any State thereof, and having total assets in excess
of $5,000,000,000; (e) a commercial bank organized under the laws of any
other country that is a member of the Organization for Economic Cooperation
and Development or has concluded special lending arrangements with the
International Monetary Fund associated with its General Arrangements to
Borrow or of the Cayman Islands, or a political subdivision of any such
country, and having total assets in excess of $5,000,000,000 so long as
such bank is acting through a branch or agency located in the United States
or in the country in which it is organized or another country that is
described in this clause (e); (f) the central bank of any country that is a
member of the Organization for Economic Cooperation and Development; or (g)
any other Person approved by the Agent and the Borrower, such approval not
to be unreasonably withheld; provided, however, that neither the Borrower
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nor any Affiliate of any of the Borrower shall qualify as an Eligible
Assignee.
"Environmental Action" means any action, suit, demand, demand letter,
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claim, notice of non-compliance or violation, notice of liability or
potential liability, investigation, proceeding, consent order or consent
agreement relating in any way to any Environmental Law, Environmental
Permit or Hazardous Materials or arising from alleged injury or threat of
injury to health, safety or the environment, including, without limitation,
(a) by any governmental or regulatory authority for enforcement, cleanup,
removal, response, remedial or other actions or damages and (b) by any
governmental or regulatory authority or any third party for damages,
contribution, indemnification, cost recovery, compensation or injunctive
relief.
"Environmental Law" means any federal, state, local or foreign
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statute, law, ordinance, rule, regulation, code, order, judgment, decree or
judicial or agency interpretation, policy or guidance relating to pollution
or protection of the environment, health, safety or natural resources,
including, without limitation, those relating to the use, handling,
transportation, treatment, storage, disposal, release or discharge of
Hazardous Materials.
"Environmental Permit" means any permit, approval, identification
--------------------
number,
license or other authorization required under any Environmental
Law.
"ERISA" means the Employee Retirement Income Security Act of 1974, as
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amended from time to time, and the regulations promulgated and rulings
issued thereunder.
"ERISA Affiliate" means any Person that for purposes of Title IV of
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ERISA is a member of the Borrower's controlled group, or under common
control with the Borrower, within the meaning of Section 414 of the
Internal Revenue Code.
"ERISA Event" means (a) the occurrence of a reportable event, within
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the meaning of Section 4043 of ERISA, with respect to any Plan unless the
30-day notice requirement with respect to such event has been waived by the
PBGC; (b) the application for a minimum funding waiver with respect to a
Plan; (c) the provision by the administrator of any Plan of a notice of
intent to terminate such Plan pursuant to Section 4041(a)(2) of ERISA
(including any such notice with respect to a plan amendment referred to in
Section 4041(e) of ERISA); (d) the cessation of operations at a facility of
the Borrower or any ERISA Affiliate in the circumstances described in
Section 4062(e) of ERISA; (e) the withdrawal by the Borrower or any ERISA
Affiliate from a Multiple Employer Plan during a plan year for which it was
a substantial employer, as defined in Section 4001(a)(2) of ERISA; (f) the
imposition of a lien under Section 302(f) of ERISA with respect to any
Plan; (g) the adoption of an amendment to a Plan requiring the provision of
security to such Plan pursuant to Section 307 of ERISA; or (h) the
institution by the PBGC of proceedings to terminate a Plan pursuant to
Section 4042 of ERISA, or the occurrence of any event or condition
described in Section 4042 of ERISA that is reasonably expected to result in
the termination of, or the appointment of a trustee to administer, a Plan.
"Eurocurrency Liabilities" has the meaning assigned to that term in
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Regulation D of the Board of Governors of the Federal Reserve System, as in
effect from time to time.
"Eurodollar Lending Office" means, with respect to any Lender, the
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office of such Lender specified as its "Eurodollar Lending Office" opposite
its name on Schedule I hereto or in the Assumption Agreement or the
Assignment and Acceptance pursuant to which it became a Lender (or, if no
such office is specified, its Domestic Lending Office), or such other
office of such Lender as such Lender may from time to time specify to the
Borrower and the Agent.
"Eurodollar Rate" means, for any Interest Period for each Eurodollar
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Rate Advance comprising part of the same Revolving Credit Borrowing, an
interest rate per annum equal to the rate per annum obtained by dividing
(a) the average (rounded upward to the nearest whole multiple of 1/16 of 1%
per annum, if such average is not such a multiple) of the rate per annum at
which deposits in U.S. dollars are offered by the principal office of each
of the Reference Banks in London, England to prime banks in the London
interbank market at 11:00 A.M. (London time) two Business Days before the
first day of such Interest Period in an amount approximately equal to such
Reference
Bank's pro rata share of the contemplated Eurodollar Rate Advance
comprising part of such Revolving Credit Borrowing to be outstanding during
such Interest Period and for a period equal to such Interest Period by (b)
a percentage equal to 100% minus the Eurodollar Rate Reserve Percentage for
such Interest Period. The Eurodollar Rate for any Interest Period for each
Eurodollar Rate Advance comprising part of the same Revolving Credit
Borrowing shall be determined by the Agent on the basis of applicable rates
furnished to and received by the Agent from the Reference Banks two
Business Days before the first day of such Interest Period, subject,
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however, to the provisions of Section 2.08.
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"Eurodollar Rate Advance" means a Revolving Credit Advance that bears
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interest as provided in Section 2.07(a)(ii).
"Eurodollar Rate Reserve Percentage" for any Interest Period for all
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Eurodollar Rate Advances or LIBO Rate Advances comprising part of the same
Borrowing means the reserve percentage applicable two Business Days before
the first day of such Interest Period under regulations issued from time to
time by the Board of Governors of the Federal Reserve System (or any
successor) for determining the maximum reserve requirement (including,
without limitation, any emergency, supplemental or other marginal reserve
requirement) for a member bank of the Federal Reserve System in New York
City with respect to liabilities or assets consisting of or including
Eurocurrency Liabilities (or with respect to any other category of
liabilities that includes deposits by reference to which the interest rate
on Eurodollar Rate Advances or LIBO Rate Advances is determined) having a
term equal to such Interest Period.
"Events of Default" has the meaning specified in Section 6.01.
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"Federal Funds Rate" means, for any period, a fluctuating interest
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rate per annum equal for each day during such period to the weighted
average of the rates on overnight Federal funds transactions with members
of the Federal Reserve System arranged by Federal funds brokers, as
published for such day (or, if such day is not a Business Day, for the next
preceding Business Day) by the Federal Reserve Bank of New York, or, if
such rate is not so published for any day that is a Business Day, the
average of the quotations for such day on such transactions received by the
Agent from three Federal funds brokers of recognized standing selected by
it.
"Fixed Rate Advances" has the meaning specified in Section 2.03(a)(i).
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"GAAP" has the meaning specified in Section 1.03.
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"Guaranty" has the meaning specified in Section 5.01(j).
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"Hazardous Materials" means (a) petroleum and petroleum products,
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byproducts or breakdown products, radioactive materials, asbestos-
containing materials, polychlorinated biphenyls and radon gas and (b) any
other chemicals, materials or substances designated, classified or
regulated as hazardous or toxic or as a pollutant or
contaminant under any Environmental Law.
"Hedge Agreements" means interest rate swap, cap or collar agreements,
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interest rate future or option contracts, currency swap agreements,
currency future or option contracts and other similar agreements.
"Increase Date" has the meaning specified in Section 2.05(b)(i).
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"Increasing Lender" has the meaning specified in Section 2.05(b)(i).
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"Information Memorandum" means the information memorandum dated July,
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2000 used by the Agent in connection with the syndication of the
Commitments.
"Interest Period" means, for each Eurodollar Rate Advance comprising
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part of the same Revolving Credit Borrowing and each LIBO Rate Advance
comprising part of the same Competitive Bid Borrowing, the period
commencing on the date of such Eurodollar Rate Advance or LIBO Rate Advance
or the date of the Conversion of any Base Rate Advance into such Eurodollar
Rate Advance and ending on the last day of the period selected by the
Borrower pursuant to the provisions below and, thereafter, with respect to
Eurodollar Rate Advances, each subsequent period commencing on the last day
of the immediately preceding Interest Period and ending on the last day of
the period selected by the Borrower pursuant to the provisions below. The
duration of each such Interest Period shall be one, two, three or six
months, as the Borrower may, upon notice received by the Agent not later
than 11:00 A.M. (New York City time) on the third Business Day prior to the
first day of such Interest Period, select; provided, however, that:
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(i) the Borrower may not select any Interest Period that ends
after the Termination Date;
(ii) Interest Periods commencing on the same date for Eurodollar
Rate Advances comprising part of the same Revolving Credit Borrowing
or for LIBO Rate Advances comprising part of the same Competitive Bid
Borrowing shall be of the same duration;
(iii) whenever the last day of any Interest Period would otherwise
occur on a day other than a Business Day, the last day of such
Interest Period shall be extended to occur on the next succeeding
Business Day, provided, however, that, if such extension would cause
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the last day of such Interest Period to occur in the next following
calendar month, the last day of such Interest Period shall occur on
the next preceding Business Day; and
(iv) whenever the first day of any Interest Period occurs on a day
of an initial calendar month for which there is no numerically
corresponding day in the calendar month that succeeds such initial
calendar month by the number of months equal to the number of months
in such Interest Period, such Interest Period shall end on the last
Business Day of such succeeding calendar month.
"Internal Revenue Code" means the Internal Revenue Code of 1986, as
---------------------
amended from time to time, and the regulations promulgated and rulings
issued thereunder.
"Lenders" means the Initial Lenders and each Person that shall become
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a party hereto pursuant to Section 2.05(b) or Section 8.07(a), (b) and (c).
"LIBO Rate" means, for any Interest Period for all LIBO Rate Advances
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comprising part of the same Competitive Bid Borrowing, an interest rate per
annum equal to the average (rounded upward to the nearest whole multiple of
1/16 of 1% per annum, if such average is not such a multiple) of the rate
per annum at which deposits in U.S. dollars are offered to the principal
office of each of the Reference Banks in London, England by prime banks in
the London interbank market at 11:00 A.M. (London time) two Business Days
before the first day of such Interest Period in an amount substantially
equal to the amount that would be such Reference Bank's ratable share of
such Borrowing if such Borrowing were to be a Revolving Credit Borrowing to
be outstanding during such Interest Period and for a period equal to such
Interest Period. The LIBO Rate for any Interest Period for each LIBO Rate
Advance comprising part of the same Competitive Bid Borrowing shall be
determined by the Agent on the basis of applicable rates furnished to and
received by the Agent from the Reference Banks two Business Days before the
first day of such Interest Period, subject, however, to the provisions of
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Section 2.08.
"LIBO Rate Advances" has the meaning specified in Section 2.03(a)(i).
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"Lien" means any lien, security interest or other charge or
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encumbrance of any kind.
"Material Adverse Change" means any material adverse change in the
-----------------------
business, condition (financial or otherwise), operations, performance,
properties or prospects of the Borrower or the Borrower and its
Subsidiaries taken as a whole.
"Material Adverse Effect" means a material adverse effect on (a) the
-----------------------
ability of the Borrower to conduct its business on substantially the same
basis as conducted on the Effective Date or (b) the ability of the Borrower
to service its Debt obligations on a timely basis.
"Material Subsidiary" means each Domestic Subsidiary of the Borrower
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to which as of the end of any fiscal quarter is attributed 5% of more of
the Consolidated total revenues or sales of the Borrower and its
Subsidiaries, as shown on the Consolidated financial statements of the
Borrower and its Subsidiaries for such fiscal quarter or, in the case of
any Subsidiary of the Borrower that is acquired or is merged with or into
any other Subsidiary of the Borrower, determined by reference to the pro
forma financial statements of the Borrower and its Subsidiaries prepared in
accordance with GAAP as of the most recent fiscal quarter of the Borrower,
giving effect to such acquisition or merger as if such transaction had been
consummated as of the first day of such fiscal quarter.
"Moody's" means Xxxxx'x Investors Service, Inc.
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"Multiemployer Plan" means a multiemployer plan, as defined in Section
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4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate is making
or accruing an obligation to make contributions, or has within any of the
preceding five plan years made or accrued an obligation to make
contributions.
"Multiple Employer Plan" means a single employer plan, as defined in
----------------------
Section 4001(a)(15) of ERISA, that (a) is maintained for employees of the
Borrower or any ERISA Affiliate and at least one Person other than the
Borrower and the ERISA Affiliates or (b) was so maintained and in respect
of which the Borrower or any ERISA Affiliate could have liability under
Section 4064 or 4069 of ERISA in the event such plan has been or were to be
terminated.
"Note" means a Revolving Credit Note or a Competitive Bid Note.
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"Notice of Competitive Bid Borrowing" has the meaning specified in
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Section 2.03(a)(i).
"Notice of Revolving Credit Borrowing" has the meaning specified in
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Section 2.02(a).
"Other Taxes" has the meaning specified in Section 2.14(b).
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"PBGC" means the Pension Benefit Guaranty Corporation (or any
----
successor).
"Performance Level" means, as of any date of the determination, the
-----------------
level set forth below as then in effect for the Borrower, as determined in
accordance with the following provisions of this definition:
Level 1: Public Debt Rating of not lower than A+ by S&P or not lower
than A1 by Moody's.
Level 2: Public Debt Rating of lower than Level 1 but not lower than
A by S&P or not lower than A2 by Moody's.
Level 3: Public Debt Rating of lower than Level 2 but not lower than
A- by S&P or not lower than A3 by Moody's.
Level 4: Public Debt Rating of lower than Level 3 but not lower than
BBB+ by S&P or not lower than Baa1 by Moody's.
Level 5: Public Debt Rating of lower than Level 4 but not lower than
BBB by S&P or not lower than Baa2 by Moody's.
Level 6: Public Debt Rating of lower than Level 5 but not lower than
BBB- by S&P or not lower than Baa3 by Moody's.
Level 7: Public Debt Rating of lower than Level 6 but not lower than
BB+ by S&P or not lower than Ba1 by Moody's.
Level 8: Public Debt Rating of lower than Level 7 but not lower than
BB by S&P or not lower than Ba2 by Moody's.
Level 9: Public Debt Rating of lower than Level 8 but not lower than
BB- by S&P or not lower than Ba3 by Moody's.
Level 10: Public Debt Rating of lower than Level 9 but not lower than
B+ by S&P or not lower than B1 by Moody's.
Level 11: Public Debt Rating of lower than Xxxxx 00 but not lower than
B by S&P or not lower than B2 by Moody's.
Level 12: Public Debt Rating of lower than Level 12 or no Public Debt
Rating available.
For purposes of the foregoing, (a) if only one of S&P and Moody's
shall have in effect a Public Debt Rating, the Performance Level shall be
determined by reference to the available rating, (b) if the Public Debt
Ratings established by S&P and Moody's shall fall within different
Performance Levels, the Performance Level shall be based upon the higher
rating, unless the ratings differ by more than one Performance Level, in
which case the Performance Level shall be determined by reference to the
midpoint of the two Performance Levels, or in the case that such midpoint
is not at a Performance Level, at the Performance Level immediately above
such midpoint and (c) until the date that is three months after the
Effective Date, the Performance Level shall be deemed to be Performance
Level 5.
"Permitted Liens" means, with respect to any Person, (a) Liens for
---------------
taxes, assessments and governmental charges and levies to the extent not
required to be paid under Section 5.01(b) hereof; (b) pledges or deposits
to secure obligations under workers' compensation laws or similar
legislation, unemployment insurance, old age pensions or other social
security; (c) pledges or deposits to secure performance in connection with
bids, tenders, contracts (other than contracts for the payment of money) or
leases to which such Person is a party; (d) deposits to secure public or
statutory obligations of such Person; (e) materialmen's, mechanics',
carriers', workers', repairmen's or other like Liens in the ordinary course
of business, or deposits to obtain the release of such Liens to the extent
such Liens, in the aggregate, would not have a Material Adverse Effect; (f)
deposits to secure surety and appeal bonds to which such Person is a party;
(g) pledges or deposits to secure indemnity, performance or other similar
bonds in the ordinary course of business; (h) other pledges or deposits for
similar purposes in the ordinary course of business, including pledges and
deposits in connection with insurance maintenance in accordance with
Section 5.01(c); (i) Liens created by or resulting from any litigation or
legal proceeding which at the time is currently being contested in good
faith by appropriate proceedings; (j) leases made, or existing on property
acquired, in the
ordinary course of business; (k) landlord's Liens under leases to which
such Person is a party; (l) zoning restrictions, easements, licenses,
restrictions on the use of real property or minor irregularities in title
thereto, which do not materially impair the use of such property in the
operation of the business of such Person or the value or such property for
the purpose of such business; and (m) restrictions under federal, state and
foreign securities laws on the transfer of securities.
"Person" means an individual, partnership, corporation (including a
------
business trust), joint stock company, trust, unincorporated association,
joint venture, limited liability company or other entity, or a government
or any political subdivision or agency thereof.
"Plan" means a Single Employer Plan or a Multiple Employer Plan.
----
"Public Debt Rating" means, as of any date, the lowest rating that has
------------------
been most recently announced by any of S&P or Moody's, as the case may be,
for any class of non-credit enhanced long-term senior unsecured debt issued
by the Borrower. For purposes of the foregoing, (a) if any rating
established by S&P or Moody's shall be changed, such change shall be
effective as of the date on which such change is first announced publicly
by the rating agency making such change; and (b) if S&P or Moody's shall
change the basis on which ratings are established, each reference to the
Public Debt Rating announced by S&P or Moody's, as the case may be, shall
refer to the then equivalent rating by S&P or Moody's, as the case may be.
"Reference Banks" means initially, Chase and Citibank, N.A., or, if
---------------
less than two of such banks are able to furnish timely information in
accordance with Section 2.08, any other commercial bank designated by the
Borrower and approved by the Required Lenders as constituting a "Reference
Bank" hereunder.
"Register" has the meaning specified in Section 8.07(d).
--------
"Required Lenders" means at any time Lenders owed at least a majority
----------------
in interest of the then aggregate unpaid principal amount of the Revolving
Credit Advances owing to Lenders, or, if no such principal amount is then
outstanding, Lenders having at least a majority in interest of the
Commitments.
"Requisite Amount" has the meaning specified in Section 6.01(d).
----------------
"Revolving Credit Advance" means an advance by a Lender to the
------------------------
Borrower as part of a Revolving Credit Borrowing and refers to a Base Rate
Advance or a Eurodollar Rate Advance (each of which shall be a "Type" of
----
Revolving Credit Advance).
"Revolving Credit Borrowing" means a borrowing consisting of
--------------------------
simultaneous Revolving Credit Advances of the same Type made by each of the
Lenders pursuant to Section 2.01.
"Revolving Credit Note" means a promissory note of the Borrower
---------------------
payable to the order of any Lender, in substantially the form of Xxxxxxx X-
0 hereto, evidencing the aggregate indebtedness of the Borrower to such
Lender resulting from the Revolving Credit Advances made by such Lender.
"S&P" means Standard & Poor's Ratings Group, a division of The McGraw-
---
Hill Companies, Inc.
"Single Employer Plan" means a single employer plan, as defined in
--------------------
Section 4001(a)(15) of ERISA, that (a) is maintained for employees of the
Borrower or any ERISA Affiliate and no Person other than the Borrower and
the ERISA Affiliates or (b) was so maintained and in respect of which the
Borrower or any ERISA Affiliate could have liability under Section 4069 of
ERISA in the event such plan has been or were to be terminated.
"Subsidiary" of any Person means any corporation, partnership, joint
----------
venture, limited liability company, trust or estate of which (or in which)
more than 50% of (a) the issued and outstanding capital stock having
ordinary voting power to elect a majority of the Board of Directors of such
corporation (irrespective of whether at the time capital stock of any other
class or classes of such corporation shall or might have voting power upon
the occurrence of any contingency), (b) the interest in the capital or
profits of such limited liability company, partnership or joint venture or
(c) the beneficial interest in such trust or estate, is at the time
directly or indirectly owned or controlled by such Person, by such Person
and one or more of its other Subsidiaries or by one or more of such
Person's other Subsidiaries.
"Taxes" has the meaning specified in Section 2.14(a).
-----
"Termination Date" means, subject to the provisions of Section 2.05,
----------------
the earliest of (a) [August 30], 2005, (b) the date that is three months
before any scheduled expiration of the Verizon Option and (c) the date of
termination in whole of the Commitments pursuant to Section 2.05 or 6.01.
"Verizon" means Xxxx Atlantic Corporation (as the survivor of the
-------
merger of GTE Corporation with and into Xxxx Atlantic Corporation), doing
business as Verizon Communications, and its successors.
"Verizon Option" means the five-year (or, if extended under certain
--------------
conditions, six-year) option held by Verizon to exchange its Class B Common
Stock of the Borrower for Class C Common Stock of the Borrower that will
represent up to 82% of the aggregate equity and up to 95% of the combined
voting power of all Voting Stock of the Borrower.
"Voting Stock" means capital stock issued by a corporation, or
------------
equivalent interests in any other Person, the holders of which are
ordinarily, in the absence of contingencies, entitled to vote for the
election of directors (or persons performing similar
functions) of such Person, even if the right so to vote has been suspended
by the happening of such a contingency.
2. Computation of Time Periods. In this Agreement in the
-------------------------------
computation of periods of time from a specified date to a later specified date,
the word "from" means "from and including" and the words "to" and "until" each
mean "to but excluding".
3. Accounting Terms. All terms of an accounting or financial nature
--------------------
not otherwise defined herein shall be construed in accordance with generally
accepted accounting principles ("GAAP"), as in effect from time to time;
----
provided, however, that if the Borrower notifies the Agent that the Borrower
-------- -------
wishes to amend the covenant in Section 5.03 or any related definition to
eliminate the effect of any change in GAAP occurring after the date of this
Agreement on the operation of such covenant, or if the Agent notifies the
Borrower that the Required Lenders wish to amend Section 5.03 or any related
definition for such purpose, then the Borrower's compliance with such covenant
shall be determined on the basis of GAAP in effect immediately before the
relevant change in GAAP became effective, until either such notice is withdrawn
or such covenant is amended in a manner satisfactory to the Borrower and the
Required Lenders.
ARTICLE II
AMOUNTS AND TERMS OF THE ADVANCES
1. The Revolving Credit Advances. Each Lender severally agrees, on
---------------------------------
the terms and conditions hereinafter set forth, to make Revolving Credit
Advances to the Borrower from time to time on any Business Day during the period
from the Effective Date until the Termination Date in an aggregate amount not to
exceed at any time outstanding the amount set forth opposite such Lender's name
on the signature pages hereof or, if such Lender has entered into an Assumption
Agreement or any Assignment and Acceptance, set forth for such Lender in the
Register maintained by the Agent pursuant to Section 8.07(d), as such amount may
be reduced pursuant to Section 2.05 (such Lender's "Commitment"), provided that
---------- --------
the aggregate amount of the Commitments of the Lenders shall be deemed used from
time to time to the extent of the aggregate amount of the Competitive Bid
Advances then outstanding and such deemed use of the aggregate amount of the
Commitments shall be allocated among the Lenders ratably according to their
respective Commitments (such deemed use of the aggregate amount of the
Commitments being a "Competitive Bid Reduction"), and provided further that any
------------------------- -------- -------
Competitive Bid Advance made by a Lender shall not reduce such Lender's
obligation to lend its pro rata share of the remaining undrawn Commitments. Each
Revolving Credit Borrowing shall be in an aggregate amount of $10,000,000 or an
integral multiple of $1,000,000 in excess thereof and shall consist of Revolving
Credit Advances of the same Type made on the same day by the Lenders ratably
according to their respective Commitments. Within the limits of this Section
2.01, the Borrower may borrow under this Section 2.01, prepay pursuant to
Section 2.10 and reborrow under this Section 2.01.
2. Making the Revolving Credit Advances. (a) Each Revolving Credit
----------------------------------------
Borrowing shall be made on notice, given not later than 11:00 A.M. (New York
City time) on the
third Business Day prior to the date of the proposed Revolving Credit Borrowing
in the case of a Revolving Credit Borrowing consisting of Eurodollar Rate
Advances, or the Business Day of the proposed Revolving Credit Borrowing in the
case of a Revolving Credit Borrowing consisting of Base Rate Advances, by the
Borrower to the Agent, which shall give to each Lender prompt notice thereof by
telecopier or telex. Each such notice of a Revolving Credit Borrowing (a "Notice
------
of Revolving Credit Borrowing") shall be by telephone, confirmed immediately in
-----------------------------
writing, or telecopier or telex in substantially the form of Exhibit B-1 hereto,
specifying therein the requested (i) date of such Revolving Credit Borrowing,
(ii) Type of Advances comprising such Revolving Credit Borrowing, (iii)
aggregate amount of such Revolving Credit Borrowing, and (iv) in the case of a
Revolving Credit Borrowing consisting of Eurodollar Rate Advances, initial
Interest Period for each such Revolving Credit Advance. Each Lender shall,
before 12:00 noon (New York City time) on the date of such Revolving Credit
Borrowing, make available for the account of its Applicable Lending Office to
the Agent at the Agent's Account, in same day funds, such Lender's ratable
portion of such Revolving Credit Borrowing. After the Agent's receipt of such
funds and upon fulfillment of the applicable conditions set forth in Article
III, the Agent will make such funds available to the Borrower at the Agent's
address referred to in Section 8.02.
(b) Anything in Section 2.02(a) to the contrary notwithstanding, the
Borrower may not select Eurodollar Rate Advances for any Revolving Credit
Borrowing if the aggregate obligation of the Lenders to make Eurodollar Rate
Advances shall then be suspended pursuant to Section 2.08 or 2.12.
(c) Each Notice of Revolving Credit Borrowing shall be irrevocable and
binding on the Borrower. In the case of any Revolving Credit Borrowing that the
related Notice of Revolving Credit Borrowing specifies is to be comprised of
Eurodollar Rate Advances, the Borrower shall indemnify each Lender against any
loss, cost or expense incurred by such Lender as a result of any failure to
fulfill on or before the date specified in such Notice of Revolving Credit
Borrowing for such Revolving Credit Borrowing the applicable conditions set
forth in Article III, including, without limitation, any loss (excluding loss of
anticipated profits), cost or expense incurred by reason of the liquidation or
reemployment of deposits or other funds acquired by such Lender to fund the
Revolving Credit Advance to be made by such Lender as part of such Revolving
Credit Borrowing when such Revolving Credit Advance, as a result of such
failure, is not made on such date.
(d) Unless the Agent shall have received notice from a Lender prior to the
date of any Revolving Credit Borrowing that such Lender will not make available
to the Agent such Lender's ratable portion of such Revolving Credit Borrowing,
the Agent may assume that such Lender has made such portion available to the
Agent on the date of such Revolving Credit Borrowing in accordance with Section
2.02(a) and the Agent may, in reliance upon such assumption, make available to
the Borrower on such date a corresponding amount. If and to the extent that
such Lender shall not have so made such ratable portion available to the Agent,
such Lender and the Borrower severally agree to repay to the Agent forthwith on
demand such corresponding amount together with interest thereon, for each day
from the date such amount is made available to the Borrower until the date such
amount is repaid to the Agent, at (i) in the
case of the Borrower, the interest rate applicable at the time to Revolving
Credit Advances comprising such Revolving Credit Borrowing and (ii) in the case
of such Lender, the Federal Funds Rate. If such Lender shall repay to the Agent
such corresponding amount, such amount so repaid shall constitute such Lender's
Revolving Credit Advance as part of such Revolving Credit Borrowing for purposes
of this Agreement and the Borrower shall be relieved of its obligations to repay
such amount under this Section 2.02(d).
(e) The failure of any Lender to make the Revolving Credit Advance to
be made by it as part of any Revolving Credit Borrowing shall not relieve any
other Lender of its obligation, if any, hereunder to make its Revolving Credit
Advance on the date of such Revolving Credit Borrowing, but no Lender shall be
responsible for the failure of any other Lender to make the Revolving Credit
Advance to be made by such other Lender on the date of any Revolving Credit
Borrowing.
3. The Competitive Bid Advances. (a) Each Lender severally agrees
--------------------------------
that the Borrower may make Competitive Bid Borrowings under this Section 2.03
from time to time on any Business Day during the period from the Effective Date
until the date occurring 30 days prior to the Termination Date in the manner set
forth below; provided that, following the making of each Competitive Bid
--------
Borrowing, the aggregate amount of the Advances then outstanding shall not
exceed the aggregate amount of the Commitments of the Lenders (computed without
regard to any Competitive Bid Reduction).
(i) The Borrower may request a Competitive Bid Borrowing under this
Section 2.03 by delivering to the Agent, by telecopier or telex, a notice
of a Competitive Bid Borrowing (a "Notice of Competitive Bid Borrowing"),
-----------------------------------
in substantially the form of Exhibit B-2 hereto, specifying therein the
requested (A) date of such proposed Competitive Bid Borrowing, (B)
aggregate amount of such proposed Competitive Bid Borrowing, (C) (1) in the
case of a Competitive Bid Borrowing consisting of LIBO Rate Advances,
Interest Period and maturity date for repayment of each LIBO Rate Advance
to be made as part of such Competitive Bid Borrowing or (2) in the case of
a Competitive Bid Borrowing consisting of Fixed Rate Advances, maturity
date for repayment of each Fixed Rate Advance to be made as part of such
Competitive Bid Borrowing (which maturity date may not be earlier than the
date occurring 7 days after the date of such Competitive Bid Borrowing or
later than the Termination Date), (D) interest payment date or dates
relating thereto, and (E) other terms (if any) to be applicable to such
Competitive Bid Borrowing, not later than 10:00 A.M. (New York City time)
(y) at least one Business Day prior to the date of the proposed Competitive
Bid Borrowing, if the Borrower shall specify in the Notice of Competitive
Bid Borrowing that the rates of interest to be offered by the Lenders shall
be fixed rates per annum (the Advances comprising any such Competitive Bid
Borrowing being referred to herein as "Fixed Rate Advances") and (z) at
-------------------
least four Business Days prior to the date of the proposed Competitive Bid
Borrowing, if the Borrower shall instead specify in the Notice of
Competitive Bid Borrowing that the rates of interest to be offered by the
Lenders are to be based on the LIBO Rate (the Advances comprising such
Competitive Bid Borrowing being referred to herein as "LIBO Rate
---------
Advances"). Each Notice of Competitive Bid
--------
Borrowing shall be irrevocable and binding on the Borrower. The Agent shall
in turn promptly notify each Lender of each request for a Competitive Bid
Borrowing received by it from the Borrower by sending such Lender a copy of
the related Notice of Competitive Bid Borrowing.
(ii) Each Lender may, if, in its sole discretion, it elects to do so,
irrevocably offer to make one or more Competitive Bid Advances to the
Borrower as part of such proposed Competitive Bid Borrowing at a rate or
rates of interest specified by such Lender in its sole discretion, by
notifying the Agent (which shall give prompt notice thereof to the
Borrower), (A) before 9:30 A.M. (New York City time) on the date of such
proposed Competitive Bid Borrowing, in the case of a Competitive Bid
Borrowing consisting of Fixed Rate Advances, and (B) before 10:00 A.M. (New
York City time) two Business Days before the date of such proposed
Competitive Bid Borrowing, in the case of a Competitive Bid Borrowing
consisting of LIBO Rate Advances, of (1) the minimum amount and maximum
amount of each Competitive Bid Advance which such Lender would be willing
to make as part of such proposed Competitive Bid Borrowing (which amounts
may, subject to the proviso to the first sentence of this Section 2.03(a),
exceed such Lender's Commitment, if any), (2) the rate or rates of interest
therefor and (3) such Lender's Applicable Lending Office with respect to
such Competitive Bid Advance; provided that if the Agent in its capacity as
--------
a Lender shall, in its sole discretion, elect to make any such offer, it
shall notify the Borrower of such offer at least 30 minutes before the time
and on the date on which notice of such election is to be given to the
Agent by the other Lenders. If any Lender shall elect not to make such an
offer, such Lender shall so notify the Agent, before 10:00 A.M. (New York
City time) on the date on which notice of such election is to be given to
the Agent by the other Lenders, and such Lender shall not be obligated to,
and shall not, make any Competitive Bid Advance as part of such Competitive
Bid Borrowing; provided that the failure by any Lender to give such notice
--------
shall not cause such Lender to be obligated to make any Competitive Bid
Advance as part of such proposed Competitive Bid Borrowing.
(iii) The Borrower shall, in turn, (A) before 10:30 A.M. (New York City
time) on the date of such proposed Competitive Bid Borrowing, in the case
of a Competitive Bid Borrowing consisting of Fixed Rate Advances, and (B)
before 11:00 A.M. (New York City time) two Business Days before the date of
such proposed Competitive Bid Borrowing, in the case of a Competitive Bid
Borrowing consisting of LIBO Rate Advances, either:
(1) cancel such Competitive Bid Borrowing by giving the Agent
notice to that effect, or
(2) accept one or more of the offers made by any Lender or
Lenders pursuant to Section 2.03(a)(ii) (provided that the Borrower
may not accept bids in excess of the aggregate amount of such
Competitive Bid Borrowing), in its sole discretion, by giving notice
to the Agent of the amount of each Competitive Bid Advance (which
amount shall be equal to or greater than the minimum amount,
and equal to or less than the maximum amount, notified to the Borrower
by the Agent on behalf of such Lender for such Competitive Bid Advance
pursuant to Section 2.03(a)(ii)) to be made by each Lender as part of
such Competitive Bid Borrowing, and reject any remaining offers made
by Lenders pursuant to Section 2.03(a)(ii) by giving the Agent notice
to that effect. The Borrower shall accept the offers made by any
Lender or Lenders to make Competitive Bid Advances in order of the
lowest to the highest rates of interest offered by such Lenders. If
two or more Lenders have offered the same interest rate, the amount to
be borrowed at such interest rate will be allocated among such Lenders
in proportion to the amount that each such Lender offered at such
interest rate.
(iv) If the Borrower notifies the Agent that such Competitive Bid
Borrowing is cancelled pursuant to clause (1) of Section 2.03(a)(iii), the
Agent shall give prompt notice thereof to the Lenders and such Competitive
Bid Borrowing shall not be made.
(v) If the Borrower accepts one or more of the offers made by any
Lender or Lenders pursuant to clause (2) of Section 2.03(a)(iii), the Agent
shall in turn promptly notify (A) each Lender that has made an offer as
described in Section 2.03(a)(ii), of the date and aggregate amount of such
Competitive Bid Borrowing and whether or not any offer or offers made by
such Lender pursuant to Section 2.03(a)(ii) have been accepted by the
Borrower, (B) each Lender that is to make a Competitive Bid Advance as part
of such Competitive Bid Borrowing, of the amount of each Competitive Bid
Advance to be made by such Lender as part of such Competitive Bid
Borrowing, and (C) each Lender that is to make a Competitive Bid Advance as
part of such Competitive Bid Borrowing, upon receipt, that the Agent has
received forms of documents appearing to fulfill the applicable conditions
set forth in Article III. Each Lender that is to make a Competitive Bid
Advance as part of such Competitive Bid Borrowing shall, before 12:00 noon
(New York City time) on the date of such Competitive Bid Borrowing
specified in the notice received from the Agent pursuant to clause (A) of
the immediately preceding sentence or any later time when such Lender shall
have received notice from the Agent pursuant to clause (C) of the
immediately preceding sentence, make available for the account of its
Applicable Lending Office to the Agent at the Agent's Account, in same day
funds, such Lender's portion of such Competitive Bid Borrowing. Upon
fulfillment of the applicable conditions set forth in Article III and after
receipt by the Agent of such funds, the Agent will make such funds
available to the Borrower at the Agent's address referred to in Section
8.02. Promptly after each Competitive Bid Borrowing the Agent will notify
each Lender of the amount of the Competitive Bid Borrowing, the consequent
Competitive Bid Reduction and the dates upon which such Competitive Bid
Reduction commenced and will terminate.
(vi) If the Borrower notifies the Agent that it accepts one or more of
the offers made by any Lender or Lenders pursuant to clause (2) of Section
2.03(a)(iii), such notice of acceptance shall be irrevocable and binding on
the Borrower. The Borrower shall indemnify each Lender against any loss,
cost or expense incurred by such Lender as a result of any failure to
fulfill on or before the date specified in the related Notice of
Competitive Bid Borrowing for such Competitive Bid Borrowing the applicable
conditions set forth in Article III, including, without limitation, any
loss (including loss of anticipated profits), cost or expense incurred by
reason of the liquidation or reemployment of deposits or other funds
acquired by such Lender to fund the Competitive Bid Advance to be made by
such Lender as part of such Competitive Bid Borrowing when such Competitive
Bid Advance, as a result of such failure, is not made on such date.
(b) Each Competitive Bid Borrowing shall be in an aggregate amount of
$10,000,000 or an integral multiple of $1,000,000 in excess thereof and,
following the making of each Competitive Bid Borrowing, the Borrower shall be in
compliance with the limitations set forth in the proviso to the first sentence
of Section 2.03(a).
(c) Within the limits and on the conditions set forth in this Section
2.03, the Borrower may from time to time borrow under this Section 2.03, repay
or prepay pursuant to Section 2.03(d), and reborrow under this Section 2.03,
provided that a Competitive Bid Borrowing shall not be made within three
--------
Business Days of the date of any other Competitive Bid Borrowing.
(d) The Borrower shall repay to the Agent for the account of each
Lender that has made a Competitive Bid Advance, on the maturity date of each
Competitive Bid Advance (such maturity date being that specified by the Borrower
for repayment of such Competitive Bid Advance in the related Notice of
Competitive Bid Borrowing delivered pursuant to Section 2.03(a)(i) and provided
in the Competitive Bid Note evidencing such Competitive Bid Advance), the then
unpaid principal amount of such Competitive Bid Advance. The Borrower shall have
no right to prepay any principal amount of any Competitive Bid Advance unless,
and then only on the terms, specified by the Borrower for such Competitive Bid
Advance in the related Notice of Competitive Bid Borrowing delivered pursuant to
Section 2.03(a)(i) and set forth in the Competitive Bid Note evidencing such
Competitive Bid Advance.
(e) The Borrower shall pay interest on the unpaid principal amount of
each Competitive Bid Advance from the date of such Competitive Bid Advance to
the date the principal amount of such Competitive Bid Advance is repaid in full,
at the rate of interest for such Competitive Bid Advance specified by the Lender
making such Competitive Bid Advance in its notice with respect thereto delivered
pursuant to Section 2.03(a)(ii), payable on the interest payment date or dates
specified by the Borrower for such Competitive Bid Advance in the related Notice
of Competitive Bid Borrowing delivered pursuant to Section 2.03(a)(i), as
provided in the Competitive Bid Note evidencing such Competitive Bid Advance.
Upon the occurrence and during the continuance of an Event of Default under
Section 6.01(a), the Borrower shall pay interest on the amount of unpaid
principal of and interest on each Competitive Bid Advance owing to a Lender,
payable in arrears on the date or dates interest is payable thereon, at a rate
per annum equal at all times to 2% per annum above the rate per annum required
to be paid on such Competitive Bid Advance under the terms of the Competitive
Bid Note evidencing such Competitive Bid Advance unless otherwise agreed in such
Competitive Bid Note.
(f) The indebtedness of the Borrower resulting from each Competitive
Bid Advance as part of a Competitive Bid Borrowing shall be evidenced by a
separate Competitive Bid Note payable to the order of the Lender making such
Competitive Bid Advance.
4. Fees. (a) Facility Fee. The Borrower agrees to pay to the
-------- ------------
Agent for the account of each Lender a facility fee on the aggregate amount of
such Lender's Commitment from (i) the Effective Date, in the case of each
Initial Lender, and (ii) the later of the Effective Date and the effective date
specified in the Assumption Agreement or the Assignment and Acceptance pursuant
to which it became a Lender, in the case of each other Lender, until the
Termination Date at a rate per annum equal to the Applicable Percentage in
effect from time to time, payable in arrears quarterly on the last day of each
March, June, September and December, commencing September 30, 2000, and on the
Termination Date.
(b) Agent's Fees. The Borrower shall pay to the Agent for its own
------------
account such fees as may from time to time be agreed between the Borrower and
the Agent.
5. Termination, Reduction or Increase of the Commitments. (a)
---------------------------------------------------------
Termination or Reduction. The Borrower shall have the right, upon at least three
Business Days' notice to the Agent, to terminate in whole or reduce ratably in
part the unused portions of the respective Commitments of the Lenders, provided
--------
that (i) each partial reduction shall be in the aggregate amount of $10,000,000
or an integral multiple of $1,000,000 in excess thereof, (ii) the aggregate
amount of the Commitments of the Lenders shall not be reduced to an amount that
is less than the aggregate principal amount of the Competitive Bid Advances then
outstanding and (iii) once terminated, a Commitment may not be reinstated except
as provided in Section 2.05(b).
(b) Increase in Aggregate of the Commitments. (i) The Borrower may
----------------------------------------
at any time, by notice to the Agent, propose that the aggregate amount of the
Commitments be increased (such aggregate amount being, a "Commitment Increase"),
-------------------
effective as at a date prior to the Termination Date (an "Increase Date") as to
-------------
which agreement is to be reached by an earlier date specified in such notice (a
"Commitment Date"); provided, however, that (A) the Borrower may not propose
--------------- -------- -------
more than one Commitment Increase in any twelve month period, (B) the minimum
proposed Commitment Increase per notice shall be $50,000,000, (C) in no event
shall the aggregate amount of the Commitments at any time exceed $2,500,000,000,
(D) the Borrower has a Public Debt Rating from at least one of Xxxxx'x and S&P
of better than or equal to Baa2 and BBB, respectively, (E) no Default shall have
occurred and be continuing on such Increase Date and (F) a certificate as to
corporate authorization and other appropriate documentation is received by the
Agent. The Agent shall notify the Lenders thereof promptly upon its receipt of
any such notice. The Agent agrees that it will cooperate with the Borrower in
discussions with the Lenders and other Eligible Assignees with a view to
arranging the proposed Commitment Increase through the increase of the
Commitments of one or more of the Lenders (each such Lender that is willing to
increase its Commitment hereunder being an "Increasing Lender") and, with the
-----------------
consent of the Borrower (which consent may be withheld in the Borrower's sole
and absolute discretion), the addition of one or more other Eligible Assignees
as Assuming Lenders and as parties to this Agreement; provided, however, that it
-------- -------
shall be in each Lender's sole discretion whether to increase its Commitment
hereunder in connection with the proposed
Commitment Increase; and provided further that the minimum Commitment of each
-------- -------
such Assuming Lender that becomes a party to this Agreement pursuant to this
Section 2.05(b), shall be at least equal to $20,000,000. If any of the Lenders
agree to increase their respective Commitments by an aggregate amount in excess
of the proposed Commitment Increase, the proposed Commitment Increase shall be
allocated among such Lenders as determined at such time by the Borrower. If
agreement is reached on or prior to the applicable Commitment Date with any
Increasing Lenders and Assuming Lenders as to a Commitment Increase (which may
be less than but not greater than specified in the applicable notice from the
Borrower), such agreement to be evidenced by a notice in reasonable detail from
the Borrower to the Agent on or prior to the applicable Commitment Date, such
Assuming Lenders, if any, shall become Lenders hereunder as of the applicable
Increase Date and the Commitments of such Increasing Lenders and such Assuming
Lenders shall become or be, as the case may be, as of the Increase Date, the
amounts specified in such notice; provided that:
--------
(1) the Agent shall have received (with copies for each such Lender,
including each such Assuming Lender) by no later than 10:00 A.M. (New York
City time) on the applicable Increase Date a copy certified by the
Secretary, an Assistant Secretary or a comparable officer of the Borrower,
of the resolutions adopted by the Board of Directors of the Borrower
authorizing such Commitment Increase;
(2) each such Assuming Lender shall have delivered to the Agent by no
later than 10:00 A.M. (New York City time) on such Increase Date, an
appropriate Assumption Agreement in substantially the form of Exhibit D
hereto, duly executed by such Assuming Lender and the Borrower; and
(3) each such Increasing Lender shall have delivered to the Agent by
no later than 10:00 A.M. (New York City time) on such Increase Date (y) its
existing Revolving Credit Note and (z) confirmation in writing satisfactory
to the Agent as to its increased Commitment.
(ii) In the event that the Agent shall have received notice from the
Borrower as to its agreement to a Commitment Increase on or prior to the
applicable Commitment Date and each of the actions provided for in clauses (1)
through (3) of Section 2.05(b)(i) shall have occurred prior to 10:00 A.M. (New
York City time) on the applicable Increase Date to the satisfaction of the
Agent, the Agent shall notify the Lenders (including any Assuming Lenders) and
the Borrower of the occurrence of such Commitment Increase by telephone,
confirmed immediately in writing, telecopier, telex or cable and in any event no
later than 1:00 P.M. (New York City time) on such Increase Date and shall record
in the Register the relevant information with respect to each Increasing Lender
and Assuming Lender. Each Increasing Lender and each Assuming Lender shall,
before 2:00 P.M. (New York City time) on the applicable Increase Date, make
available for the account of its Applicable Lending Office to the Agent at the
Agent's Account, in same day funds, in the case of such Assuming Lender, an
amount equal to such Assuming Lender's ratable portion of the Revolving Credit
Borrowings then outstanding (calculated based on its Commitment as a percentage
of the aggregate Commitments outstanding after giving effect to the relevant
Commitment Increase) and, in the case of such Increasing
Lender, an amount equal to the excess of (A) such Increasing Lender's ratable
portion of the Revolving Credit Borrowings then outstanding (calculated based on
its Commitment as a percentage of the aggregate Commitments outstanding after
giving effect to the relevant Commitment Increase) over (B) such Increasing
Lender's ratable portion of the Revolving Credit Borrowings then outstanding
(calculated based on its Commitment (without giving effect to the relevant
Commitment Increase) as a percentage of the aggregate Commitments (without
giving effect to the relevant Commitment Increase)). After the Agent's receipt
of such funds from each such Increasing Lender and each such Assuming Lender,
the Agent will promptly thereafter cause to be distributed like funds to the
other Lenders for the account of their respective Applicable Lending Offices in
an amount to each other Lender such that the aggregate amount of the outstanding
Revolving Credit Advances owing to each Lender after giving effect to such
distribution equals such Lender's ratable portion of the Revolving Credit
Borrowings then outstanding (calculated based on its Commitment as a percentage
of the aggregate Commitments outstanding after giving effect to the relevant
Commitment Increase). Within five Business Day after the Borrower receives
notice from the Agent, the Borrower, at its own expense, shall execute and
deliver to the Agent, Revolving Credit Notes dated as of the applicable Increase
Date and payable to the order of each Assuming Lender, if any, and each
Increasing Lender in a principal amount equal to such Lender's Commitment after
giving effect to the relevant Commitment Increase, and substantially in the form
of Exhibit A-1 hereto. The Agent, upon receipt of such Revolving Credit Notes,
shall promptly deliver such Revolving Credit Notes to the respective Assuming
Lenders and Increasing Lenders.
(iii) In the event that the Agent shall not have received notice from
the Borrower as to such agreement on or prior to the applicable Commitment Date
or the Borrower shall, by notice to the Agent prior to the applicable Increase
Date, withdraw its proposal for a Commitment Increase or any of the actions
provided for above in clauses (1) through (3) of Section 2.05(b)(i) shall not
have occurred by 10:00 A.M. (New York City time) on the such Increase Date, such
proposal by the Borrower shall be deemed not to have been made. In such event,
any actions theretofore taken under clauses (1) through (3) of Section
2.05(b)(i) shall be deemed to be of no effect and all the rights and obligations
of the parties shall continue as if no such proposal had been made.
6. Repayment of Revolving Credit Advances. The Borrower shall repay
------------------------------------------
to the Agent for the ratable account of the Lenders on the Termination Date the
aggregate principal amount of the Revolving Credit Advances then outstanding.
7. Interest. (a) Scheduled Interest. The Borrower shall pay interest
------------ ------------------
on the unpaid principal amount of each Revolving Credit Advance owing to each
Lender from the date of such Advance until such principal amount shall be paid
in full, at the following rates per annum:
(i) Base Rate Advances. During such periods as such Revolving Credit
------------------
Advance is a Base Rate Advance, a rate per annum equal at all times to the
sum of (A) the Base Rate in effect from time to time plus (B) the
----
Applicable Margin in effect from time to time, payable in arrears quarterly
on the last day of each March, June, September and
December during such periods and on the date such Base Rate Advance shall
be Converted or paid in full.
(ii) Eurodollar Rate Advances. During such periods as such Revolving
------------------------
Credit Advance is a Eurodollar Rate Advance, a rate per annum equal at all
times during each Interest Period for such Revolving Credit Advance to the
sum of (A) the Eurodollar Rate for such Interest Period for such Revolving
Credit Advance plus (B) the Applicable Margin in effect from time to time,
----
payable in arrears on the last day of such Interest Period and, if such
Interest Period has a duration of more than three months, on each day that
occurs during such Interest Period every three months from the first day of
such Interest Period and on the date such Eurodollar Rate Advance shall be
Converted or paid in full.
(b) Default Interest. Upon the occurrence and during the continuance
----------------
of an Event of Default under Section 6.01(a), the Borrower shall pay interest on
(i) the unpaid principal amount of each Revolving Credit Advance owing to each
Lender, payable in arrears on the dates referred to in Section 2.07(a)(i) or
2.07(a)(ii), at a rate per annum equal at all times to 2% per annum above the
rate per annum required to be paid on such Revolving Credit Advance pursuant to
Section 2.07(a)(i) or 2.07(a)(ii) and (ii) to the fullest extent permitted by
law, the amount of any interest, fee or other amount payable hereunder that is
not paid when due, from the date such amount shall be due until such amount
shall be paid in full, payable in arrears on the date such amount shall be paid
in full and on demand, at a rate per annum equal at all times to 2% per annum
above the rate per annum required to be paid on Base Rate Advances pursuant to
Section 2.07(a)(i).
8. Interest Rate Determination. (a) Each Reference Bank agrees to
-------------------------------
furnish to the Agent timely information for the purpose of determining each
Eurodollar Rate and each LIBO Rate. If any one or more of the Reference Banks
shall not furnish such timely information to the Agent for the purpose of
determining any such interest rate, the Agent shall determine such interest rate
on the basis of timely information furnished by the remaining Reference Banks.
The Agent shall give prompt notice to the Borrower and the Lenders of the
applicable interest rate determined by the Agent for purposes of Section
2.07(a)(i) or 2.07(ii), and the rate, if any, furnished by each Reference Bank
for the purpose of determining the interest rate under Section 2.07(a)(ii).
(b) If, with respect to any Eurodollar Rate Advances, the Required
Lenders notify the Agent that the Eurodollar Rate for any Interest Period for
such Advances will not adequately reflect the cost to such Required Lenders of
making, funding or maintaining their respective Eurodollar Rate Advances for
such Interest Period, the Agent shall forthwith so notify the Borrower and the
Lenders, whereupon (i) each Eurodollar Rate Advance will automatically, on the
last day of the then existing Interest Period therefor, Convert into a Base Rate
Advance, and (ii) the obligation of the Lenders to make, or to Convert Revolving
Credit Advances into, Eurodollar Rate Advances shall be suspended until the
Agent shall notify the Borrower and the Lenders that the circumstances causing
such suspension no longer exist.
(c) If the Borrower shall fail to select the duration of any
Interest Period for any Eurodollar Rate Advances in accordance with the
provisions contained in the definition of "Interest Period" in Section 1.01, the
Agent will forthwith so notify the Borrower and the Lenders and such Advances
will automatically, on the last day of the then existing Interest Period
therefor, Convert into Base Rate Advances.
(d) On the date on which the aggregate unpaid principal amount of
Eurodollar Rate Advances comprising any Borrowing shall be reduced, by payment
or prepayment or otherwise, to less than $10,000,000, such Advances shall
automatically Convert into Base Rate Advances.
(e) Upon the occurrence and during the continuance of any Event of
Default under Section 6.01(a), (i) each Eurodollar Rate Advance will
automatically, on the last day of the then existing Interest Period therefor,
Convert into a Base Rate Advance and (ii) the obligation of the Lenders to make,
or to Convert Advances into, Eurodollar Rate Advances shall be suspended.
(f) If fewer than two Reference Banks determine and furnish timely
information to the Agent for determining the Eurodollar Rate or LIBO Rate for
any Eurodollar Rate Advances or LIBO Rate Advances, as the case may be,
(i) the Agent shall forthwith notify the Borrower and the Lenders
that the interest rate cannot be determined for such Eurodollar Rate
Advances or LIBO Rate Advances, as the case may be,
(ii) with respect to Eurodollar Rate Advances, each such Advance will
automatically, on the last day of the then existing Interest Period
therefor, Convert into a Base Rate Advance (or if such Advance is then a
Base Rate Advance, will continue as a Base Rate Advance), and
(iii) the obligation of the Lenders to make Eurodollar Rate Advances
or LIBO Rate Advances or to Convert Revolving Credit Advances into
Eurodollar Rate Advances shall be suspended until the Agent shall notify
the Borrower and the Lenders that the circumstances causing such suspension
no longer exist.
9. Optional Conversion of Revolving Credit Advances. The Borrower
-----------------------------------------------------
may on any Business Day, upon notice given to the Agent not later than 11:00
A.M. (New York City time) on the third Business Day prior to the date of the
proposed Conversion and subject to the provisions of Sections 2.08 and 2.12,
Convert all Revolving Credit Advances of one Type comprising the same Borrowing
into Revolving Credit Advances of the other Type; provided, however, that any
-------- -------
Conversion of Eurodollar Rate Advances into Base Rate Advances shall be made
only on the last day of an Interest Period for such Eurodollar Rate Advances and
any Conversion of Base Rate Advances into Eurodollar Rate Advances shall be in
an amount not less than $10,000,000. Each such notice of a Conversion shall,
within the restrictions specified above, specify (a) the date of such
Conversion, (b) the Revolving Credit Advances to be Converted and (c) if such
Conversion is into Eurodollar Rate Advances, the duration of the initial
Interest Period for each such Advance. Each notice of Conversion shall be
irrevocable and binding on the Borrower.
10. Optional Prepayments of Revolving Credit Advances. The Borrower
-------------------------------------------------------
may, upon notice not later than 11:00 A.M. (New York City time) for Base Rate
Advances and upon at least two Business Days' notice to the Agent for Eurodollar
Rate Advances stating the proposed date and aggregate principal amount of the
prepayment, and if such notice is given the Borrower shall, prepay the
outstanding principal amount of the Revolving Credit Advances comprising part of
the same Borrowing in whole or ratably in part, together with accrued interest
to the date of such prepayment on the principal amount prepaid; provided,
--------
however, that (a) each partial prepayment shall be in an aggregate principal
-------
amount of $10,000,000 or an integral multiple of $1,000,000 in excess thereof
and (b) in the event of any such prepayment of a Eurodollar Rate Advance, the
Borrower shall be obligated to reimburse the Lenders in respect thereof pursuant
to Section 8.04(c).
11. Increased Costs. (a) If, due to either (i) the introduction of
---------------------
or any change in or in the interpretation of any law or regulation or (ii) the
compliance with any written guideline or request from any central bank or other
governmental authority (whether or not having the force of law), there shall be
any increase in the cost to any Lender of agreeing to make or making, funding or
maintaining Eurodollar Rate Advances or LIBO Rate Advances (excluding for
purposes of this Section 2.11 any such increased costs resulting from (A) Taxes
or Other Taxes (as to which Section 2.14 shall govern) and (B) changes in the
basis of taxation of overall net income or overall gross income by the United
States or by the foreign jurisdiction or state under the laws of which such
Lender is organized or has its Applicable Lending Office or any political
subdivision thereof), then the Borrower shall from time to time, upon demand by
such Lender (with a copy of such demand to the Agent), pay to the Agent for the
account of such Lender additional amounts sufficient to compensate such Lender
for such increased cost (whether or not such increased costs arise prior to the
receipt of written notification from such central bank or other governmental
authority); provided that the Borrower shall not be required to pay any such
--------
increased costs to the extent such increased costs accrued prior to the date
that is six months prior to such notice. A certificate as to the amount of such
increased cost, submitted to the Borrower and the Agent by such Lender, shall be
conclusive and binding for all purposes, absent error in the calculation of such
amount.
(b) If any Lender determines that compliance with any law or
regulation or any written guideline or request from any central bank or other
governmental authority (whether or not having the force of law) affects or would
affect the amount of capital required or expected to be maintained by such
Lender or any corporation controlling such Lender and that the amount of such
capital is increased by or based upon the existence of such Lender's commitment
to lend hereunder and other commitments of this type, then, upon demand by such
Lender (with a copy of such demand to the Agent), the Borrower shall pay to the
Agent for the account of such Lender, from time to time as specified by such
Lender, additional amounts sufficient to compensate such Lender or such
corporation (whether or not such amounts arise prior to the receipt of written
notification from such central bank or other governmental authority) in the
light of such circumstances, to the extent that such Lender reasonably
determines such increase
in capital to be allocable to the existence of such Lender's commitment to lend
hereunder; provided that the Borrower shall not be required to compensate such
--------
Lender to the extent such amounts arose prior to the date that is six months
prior to such notice. A certificate as to such amounts submitted to the Borrower
and the Agent by such Lender shall be conclusive and binding for all purposes,
absent error in the calculation of such amounts.
(c) Any Lender claiming any additional amounts payable pursuant to
this Section 2.11 agrees to use reasonable efforts (consistent with its internal
policy and legal and regulatory restrictions) to minimize such additional
amounts and to change the jurisdiction of its Applicable Lending Office if the
making of such a change would avoid the need for, or reduce the amount of, any
additional amounts that may thereafter accrue and would not, in the reasonable
judgment of such Lender, be otherwise notably disadvantageous to such Lender.
The Borrower shall reimburse such Lender for such Lender's reasonable expenses
incurred in connection with such change or in considering such a change in an
amount not to exceed the Borrower's pro rata share of such expenses based on
such Lender's Commitment and Advances to the Borrower and the total lending
commitments and loans of such Lender to its similarly situated customers.
12. Illegality. Notwithstanding any other provision of this
----------------
Agreement, if any Lender shall notify the Agent that the introduction of or any
change in or in the interpretation of any law or regulation makes it unlawful,
or any central bank or other governmental authority having relevant jurisdiction
asserts that it is unlawful, for any Lender or its Eurodollar Lending Office to
perform its obligations hereunder to make Eurodollar Rate Advances or LIBO Rate
Advances or to fund or maintain Eurodollar Rate Advances or LIBO Rate Advances
hereunder, (a) each Eurodollar Rate Advance or LIBO Rate Advance, as the case
may be, will automatically, upon such demand, Convert into a Base Rate Advance
or an Advance that bears interest at the rate set forth in Section 2.07(a)(i),
as the case may be, and (b) the obligation of the Lenders to make Eurodollar
Rate Advances or LIBO Rate Advances or to Convert Revolving Credit Advances into
Eurodollar Rate Advances shall be suspended until the Agent shall notify the
Borrower and the Lenders that the circumstances causing such suspension no
longer exist.
13. Payments and Computations. (a) The Borrower shall make each
-------------------------------
payment hereunder and under the Notes not later than 11:00 A.M. (New York City
time) on the day when due in U.S. dollars to the Agent at the Agent's Account in
same day funds. The Agent will promptly thereafter cause to be distributed like
funds relating to the payment of principal or interest or facility fees ratably
(other than amounts payable pursuant to Section 2.03, 2.11, 2.14 or 8.04(c)) to
the Lenders for the account of their respective Applicable Lending Offices, and
like funds relating to the payment of any other amount payable to any Lender to
such Lender for the account of its Applicable Lending Office, in each case to be
applied in accordance with the terms of this Agreement. Upon its acceptance of
an Assignment and Acceptance and recording of the information contained therein
in the Register pursuant to Section 8.07(c), from and after the effective date
specified in such Assignment and Acceptance, the Agent shall make all payments
hereunder and under the Notes in respect of the interest assigned thereby to the
Lender assignee thereunder, and the parties to such Assignment and Acceptance
shall make all appropriate adjustments in such payments for periods prior to
such effective date directly between
themselves. Upon any Assuming Lender becoming a Lender hereunder as a result of
a Commitment Increase pursuant to Section 2.05(b) and upon the Agent's receipt
of such Lender's Assumption Agreement and recording the information contained
therein in the Register, from and after the applicable Increase Date, the Agent
shall make all payments hereunder and under the Notes in respect of the interest
assumed thereby to such Assuming Lender.
(b) All computations of interest based on the Base Rate shall be made
by the Agent on the basis of a year of 365 or 366 days, as the case may be, and
all computations of interest based on the Eurodollar Rate, LIBO Rate or the
Federal Funds Rate and of facility fees shall be made by the Agent on the basis
of a year of 360 days, in each case for the actual number of days (including the
first day but excluding the last day) occurring in the period for which such
interest or facility fees are payable. Each determination by the Agent of an
interest rate hereunder shall be conclusive and binding for all purposes, absent
error in the calculation of such interest rate.
(c) Whenever any payment hereunder or under the Notes shall be stated
to be due on a day other than a Business Day, such payment shall be made on the
next succeeding Business Day, and such extension of time shall in such case be
included in the computation of payment of interest or facility fee, as the case
may be; provided, however, that, if such extension would cause payment of
-------- -------
interest on or principal of Eurodollar Rate Advances or LIBO Rate Advances to be
made in the next following calendar month, such payment shall be made on the
next preceding Business Day.
(d) Unless the Agent shall have received notice from the Borrower
prior to the date on which any payment is due to the Lenders hereunder that the
Borrower will not make such payment in full, the Agent may assume that the
Borrower has made such payment in full to the Agent on such date and the Agent
may, in reliance upon such assumption, cause to be distributed to each Lender on
such due date an amount equal to the amount then due such Lender. If and to the
extent the Borrower shall not have so made such payment in full to the Agent,
each Lender shall repay to the Agent forthwith on demand such amount distributed
to such Lender together with interest thereon, for each day from the date such
amount is distributed to such Lender until the date such Lender repays such
amount to the Agent, at the Federal Funds Rate.
14. Taxes. (a) Subject to Sections 2.14(e) and 2.14(f), any and all
-----------
payments by the Borrower hereunder or under the Notes shall be made, in
accordance with Section 2.13, 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 imposed by the United
States or any political subdivision thereof (or in the case of any payments by
or behalf of the Borrower through an account or branch outside the United States
or by or on behalf of the Borrower by a payor that is not a United States
person, such payments 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 imposed by a foreign
jurisdiction or any political subdivision thereof), excluding, in the case of
---------
each Lender and the Agent, taxes imposed on its overall net income, and
franchise taxes imposed on it in lieu of net income taxes (all such non-excluded
taxes, levies, imposts, deductions, charges, withholdings and liabilities in
respect of payments hereunder or under the Notes being hereinafter referred to
as "Taxes"). Subject to Sections 2.14(e) and 2.14(f), if the Borrower shall be
-----
required by law to deduct any Taxes from or in respect of any sum payable
hereunder or under any Note to any Lender or the Agent, (i) the sum payable
shall be increased as may be necessary so that after making all required
deductions (including deductions applicable to additional sums payable under
this Section 2.14) such Lender or the Agent (as the case may be) receives an
amount equal to the sum it would have received had no such deductions been made,
(ii) the Borrower shall make such deductions and (iii) the Borrower shall pay
the full amount deducted to the relevant taxation authority or other authority
in accordance with applicable law. Within 30 days after the date of any payment
of Taxes, the Borrower shall furnish to the Agent, at its address referred to in
Section 8.02, the original or a certified copy of a receipt evidencing payment
thereof. For purposes of this Section 2.14(a) and Section 2.14(e), the terms
"United States" and "United States person" shall have
------------- --------------------
the meanings specified in Section 7701 of the Internal Revenue Code.
(b) In addition, the Borrower agrees to pay any stamp or documentary
taxes or any other excise or property taxes, charges or similar levies that
arise from any payment made hereunder or under the Notes or from the execution,
delivery or registration of, performing under, or otherwise with respect to,
this Agreement or the Notes as a result of the introduction of, any change in,
or any change in the interpretation of, any law or regulation after the
Effective Date (hereinafter referred to as "Other Taxes").
-----------
(c) Subject to Sections 2.14(d), 2.14(e) and 2.14(f), the Borrower
shall indemnify each Lender and the Agent for the full amount of Taxes or Other
Taxes (to the extent not previously paid under Section 2.14(a) or 2.14(b))
imposed on or paid by such Lender or the Agent (as the case may be) and any
liability (including penalties, interest and expenses but excluding any taxes
imposed by any jurisdiction on amounts payable under this Section 2.14) arising
therefrom or with respect thereto. This indemnification shall be made within 30
days from the date such Lender or the Agent (as the case may be) makes written
demand therefor.
(d) Each Lender organized under the laws of a jurisdiction outside
the United States, on or prior to the date of its execution and delivery of this
Agreement in the case of each Initial Lender and on the date of the Assumption
Agreement or the Assignment and Acceptance, as the case may be, pursuant to
which it becomes a Lender in the case of each other Lender, and from time to
time thereafter as requested in writing by the Borrower (but only so long as
such Lender remains lawfully able to do so), shall provide each of the Agent and
the Borrower with two properly and accurately completed and duly executed
original Internal Revenue Service forms W-8BEN or W-8ECI, as appropriate, or any
successor or other form prescribed by the Internal Revenue Service, establishing
that payments to such Lender are not subject to United States federal
withholding tax under the Internal Revenue Code because such payment is either
effectively connected with the conduct by such Lender of a trade or business in
the United States or totally exempt from United States federal withholding tax
by reason of the application of an income tax treaty to which the United States
is a party. If any Lender which is organized under the laws of a jurisdiction
outside the United States is unable to provide the above-described forms for a
relevant interest period (or if the Lender's appropriate personnel responsible
for providing the forms actually become aware that the forms provided by it are
inaccurate), such
Lender shall notify the Borrower in writing prior to or immediately upon the
commencement of such relevant interest period.
(e) For any period with respect to which a Lender has failed to
provide the Borrower with the appropriate form described in Section 2.14(d)
(other than if such failure is due to a change in law occurring subsequent to
----- ----
the date on which a form originally was required to be provided, or if such form
is no longer required to establish an exemption from United States federal
withholding tax), such Lender shall not be entitled to indemnification under
Section 2.14(a) or 2.14(c) with respect to Taxes imposed by the United States by
reason of such failure and the Borrower shall be entitled to withhold Taxes from
payments to such Lender; provided, however, that should a Lender become subject
-------- -------
to Taxes because of its failure to deliver a form required hereunder, the
Borrower shall take such steps at such Lender's expense as such Lender shall
reasonably request to assist such Lender to recover such Taxes.
(f) Notwithstanding anything else contained in this Section 2.14, the
Borrower shall only be required to pay additional sums with respect to Taxes
(subject to Section 2.14(h)), to a Lender (or the Agent, as the case may be)
pursuant to Section 2.14(a) or 2.14(c) if the obligation to pay such Taxes
results from such Lender's inability to obtain a complete exemption from Taxes
as a result of (i) any amendment to the laws (or any regulations thereunder), or
any amendment to, or change in, an interpretation or application of any such
laws or regulations by any legislative body, court, governmental agency or
regulatory authority adopted or enacted after the date hereof (or in the case of
an entity that becomes a Lender after the date hereof, the date such entity
becomes a Lender), (ii) an amendment, modification or revocation of any existing
applicable tax treaty ratified, enacted or amended after the date hereof (or in
the case of an entity that becomes a Lender after the date hereof, the date such
entity becomes a Lender), or (iii) the ratification of a new tax treaty ratified
after the date hereof (or in the case of an entity that becomes a Lender after
the date hereof, the date such entity becomes a Lender).
(g) In the event that the Borrower makes an additional payment under
Section 2.14(a) or 2.14(c) for the account of any Lender and such Lender, in its
sole opinion, determines that it has finally and irrevocably received or been
granted a credit against, or relief or remission from, or repayment of, any tax
paid or payable by it in respect of or calculated with reference to the
deduction or withholding giving rise to such additional payment, such Lender
shall, to the extent that it determines that it can do so without prejudice to
the retention of the amount of such credit, relief, remission or repayment, pay
to the Borrower such amount as such Lender shall, in its sole opinion, have
determined is attributable to such deduction or withholding and will leave such
Lender (after such payment) in no worse position than it would have been had the
Borrower not been required to make such deduction or withholding. Nothing
contained herein shall (i) interfere with the right of a Lender to arrange its
tax affairs in whatever manner it thinks fit or (ii) oblige any Lender to claim
any tax credit or to disclose any information relating to its tax affairs or any
computations in respect thereof or (iii) require any Lender to take or refrain
from taking any action that would prejudice its ability to benefit from any
other credits, reliefs, remissions or repayments to which it may be entitled.
Each Lender and the Agent shall reasonably cooperate with the Borrower at the
Borrower's written request and sole expense, in contesting any Tax or Other Tax
the Borrower would bear pursuant to this Section 2.14, provided, however, that
-------- -------
(A) no
tax return of such Lender or the Agent is or would be held open as a result of
such contest, (B) neither such Lender nor the Agent is required to reopen a tax
year that has already closed and (C) such Lender and the Agent shall, in the
sole opinions of such Lender and the Agent, respectively, have determined that
such contest will leave such Lender and the Agent, respectively, in no worse
position than it would have been in had it not contested such Tax or Other Tax.
Nothing contained herein shall interfere with the right of a Lender or the Agent
to arrange its tax affairs in whatever manner it thinks fit, if in the sole
judgment of such Lender or the Agent, such contest would be disadvantageous to
such Lender or the Agent. In pursuing a contest in the Lender's or the Agent's
name, such Lender or the Agent will be represented by counsel of such Lender's
or the Agent's choice, and will defend against, settle or otherwise control the
contest and will not relinquish control or decision making over the contest.
(h) Any Lender claiming any additional amounts payable pursuant to
this Section 2.14 agrees to use reasonable efforts (consistent with its internal
policy and legal and regulatory restrictions) to minimize such additional
amounts and to change the jurisdiction of its Eurodollar Lending Office if the
making of such a change would avoid the need for, or reduce the amount of, any
additional amounts that may thereafter accrue and would not, in the reasonable
judgment of such Lender, be otherwise notably disadvantageous to such Lender.
The Borrower shall reimburse such Lender for such Lender's reasonable expenses
incurred in connection with such change or in considering such a change in an
amount not to exceed the Borrower's pro rata share of such expenses based on
such Lender's Commitment and Advances to the Borrower and the total lending
commitments and loans of such Lender to its similarly situated customers.
15. Sharing of Payments, Etc. If any Lender shall obtain any
------------------------------
payment (whether voluntary, involuntary, through the exercise of any right of
set-off, or otherwise) on account of the Revolving Credit Advances owing to it
(other than pursuant to Section 2.11, 2.14, 8.01(b), 8.04(c) or 8.07) in excess
of its ratable share of payments on account of the Revolving Credit Advances
obtained by all the Lenders, such Lender shall forthwith purchase from the other
Lenders such participations in the Revolving Credit Advances owing to them as
shall be necessary to cause such purchasing Lender to share the excess payment
ratably with each of them; provided, however, that if all or any portion of such
-------- -------
excess payment is thereafter recovered from such purchasing Lender, such
purchase from each Lender shall be rescinded and such Lender shall repay to the
purchasing Lender the purchase price to the extent of such recovery together
with an amount equal to such Lender's ratable share (according to the proportion
of (a) the amount of such Lender's required repayment to (b) the total amount so
recovered from the purchasing Lender) of any interest or other amount paid or
payable by the purchasing Lender in respect of the total amount so recovered.
The Borrower agrees that any Lender so purchasing a participation from another
Lender by delivering payment pursuant to this Section 2.15 may, to the fullest
extent permitted by law, exercise all its rights of payment (including the right
of set-off) with respect to such participation as fully as if such Lender were
the direct creditor of the Borrower in the amount of such participation.
16. Use of Proceeds. The proceeds of the Advances shall be
---------------------
available (and the Borrower agrees that it shall use such proceeds) solely for
general corporate purposes of the
Borrower and its Subsidiaries, including, without limitation, as a commercial
paper backstop, provided that such proceeds shall not be used for the purpose of
--------
purchasing or carrying margin stock (within the meaning of Regulation U issued
by the Board of Governors of the Federal Reserve System).
ARTICLE III
CONDITIONS TO EFFECTIVENESS AND LENDING
1. Conditions Precedent to Effectiveness of Sections 2.01 and 2.03.
-------------------------------------------------------------------
Sections 2.01 and 2.03 of this Agreement shall become effective on and as of the
first date (the "Effective Date") on which the following conditions precedent
--------------
have been satisfied:
(a) There shall have occurred no Material Adverse Change since
December 31, 1999.
(b) There shall exist no action, suit, investigation, litigation or
proceeding affecting the Borrower or any of its Subsidiaries pending or
threatened before any court, governmental agency or arbitrator that (i)
could be reasonably likely to have a Material Adverse Effect or (ii) is
initiated by any Person other than a Lender in its capacity as a Lender
that purports to affect the legality, validity or enforceability of this
Agreement or any Note or the consummation of the transactions contemplated
hereby.
(c) All governmental and third party consents and approvals necessary
in connection with the transactions contemplated hereby shall have been
obtained (without the imposition of any conditions that are not acceptable
to the Lenders) and shall remain in effect, and no law or regulation shall
be applicable in the reasonable judgment of the Lenders that restrains,
prevents or imposes materially adverse conditions upon the transactions
contemplated hereby.
(d) The Borrower shall have notified each Lender and the Agent in
writing as to the proposed Effective Date.
(e) The Borrower shall have paid all invoiced fees and expenses of
the Agent and the Lenders (including the invoiced fees and expenses of
counsel to the Agent).
(f) On the Effective Date, the following statements shall be true and
the Agent shall have received for the account of each Lender a certificate
signed by a duly authorized officer of the Borrower, dated the Effective
Date, stating that:
(i) between December 31, 1999 and the Effective Date, there
has been no Material Adverse Change;
(ii) there is no pending or (to the knowledge of the
Borrower) threatened action or proceeding, including, without
limitation, any Environmental Action, affecting the Borrower or any of
its Subsidiaries before any court, governmental agency or arbitrator
that is reasonably likely to have a Material Adverse Effect;
(iii) the representations and warranties contained in Section
4.01 are correct on and as of the Effective Date; and
(iv) no event has occurred and is continuing that constitutes a
Default.
(g) The Agent shall have received on or before the Effective Date the
following, each dated the Effective Date, in form and substance
satisfactory to the Agent and (except for the Revolving Credit Notes) in
sufficient copies for each Lender:
(i) the Revolving Credit Notes to the order of the Lenders,
respectively;
(ii) certified copies of the resolutions of the Board of
Directors of the Borrower approving the transactions contemplated by
this Agreement and the Notes, and of all documents evidencing other
necessary corporate action and governmental approvals, if any, with
respect to this Agreement and such Notes;
(iii) a certificate of the Secretary or an Assistant Secretary of
the Borrower certifying the names and true signatures of the officers
of the Borrower authorized to sign this Agreement and the Notes and
the other documents to be delivered hereunder;
(iv) a favorable opinion of Xxxx Xxxxxxx, Counsel for the
Borrower, substantially in the form of Exhibit E hereto; and
(v) a favorable opinion of Shearman & Sterling, counsel for the
Agent, in form and substance satisfactory to the Agent.
2. Conditions Precedent to Each Revolving Credit Borrowing. The
-----------------------------------------------------------
obligation of each Lender to make a Revolving Credit Advance on the occasion of
each Revolving Credit Borrowing shall be subject to the conditions precedent
that the Effective Date shall have occurred and on the date of such Revolving
Credit Borrowing the following statements shall be true (and each of the giving
of the applicable Notice of Revolving Credit Borrowing and the acceptance by the
Borrower of the proceeds of such Revolving Credit Borrowing shall constitute a
representation and warranty by the Borrower that on the date of such Borrowing
such statements are true):
(a) the representations and warranties contained in Section 4.01 and
in each Guaranty are correct on and as of the date of such Revolving Credit
Borrowing, before and after giving effect to such Revolving Credit
Borrowing and to the application of the proceeds therefrom, as though made
on and as of such date (except to the extent that any such representation
or warranty relates to a specific earlier date); and
(b) no event has occurred and is continuing, or would result from
such Revolving Credit Borrowing or from the application of the proceeds
therefrom, that constitutes a Default.
3. Conditions Precedent to Each Competitive Bid Borrowing. The
----------------------------------------------------------
obligation of each Lender that is to make a Competitive Bid Advance on the
occasion of a Competitive Bid Borrowing to make such Competitive Bid Advance as
part of such Competitive Bid Borrowing is subject to the conditions precedent
that (a) the Agent shall have received the written confirmatory Notice of
Competitive Bid Borrowing with respect thereto, (b) on or before the date of
such Competitive Bid Borrowing, but prior to such Competitive Bid Borrowing, the
Agent shall have received a Competitive Bid Note payable to the order of such
Lender for each of the one or more Competitive Bid Advances to be made by such
Lender as part of such Competitive Bid Borrowing, in a principal amount equal to
the principal amount of the Competitive Bid Advance to be evidenced thereby and
otherwise on such terms as were agreed to for such Competitive Bid Advance in
accordance with Section 2.03, and (c) on the date of such Competitive Bid
Borrowing the following statements shall be true (and each of the giving of the
applicable Notice of Competitive Bid Borrowing and the acceptance by the
Borrower of the proceeds of such Competitive Bid Borrowing shall constitute a
representation and warranty by the Borrower that on the date of such Competitive
Bid Borrowing such statements are true):
(i) the representations and warranties contained in Section 4.01 and
in each Guaranty are correct on and as of the date of such Competitive Bid
Borrowing, before and after giving effect to such Competitive Bid Borrowing
and to the application of the proceeds therefrom, as though made on and as
of such date (except to the extent that any such representation or warranty
relates to a specific earlier date);
(ii) no event has occurred and is continuing, or would result from
such Competitive Bid Borrowing or from the application of the proceeds
therefrom, that constitutes a Default; and
(iii) no event has occurred and no circumstance exists as a result of
which the information concerning the Borrower that has been provided to the
Agent and each Lender by the Borrower in connection herewith would include
an untrue statement of a material fact or omit to state any material fact
or any fact necessary to make the statements contained therein, in the
light of the circumstances under which they were made, not misleading.
4. Determinations Under Section 3.01. For purposes of determining
-------------------------------------
compliance with the conditions specified in Section 3.01, each Lender shall be
deemed to have consented to, approved or accepted or to be satisfied with each
document or other matter required thereunder to be consented to or approved by
or acceptable or satisfactory to the Lenders unless an officer of the Agent
responsible for the transactions contemplated by this Agreement shall have
received notice from such Lender prior to the date that the Borrower, by notice
to the Lenders, designates as the proposed Effective Date, specifying its
objection thereto. The Agent shall promptly notify the Lenders of the occurrence
of the Effective Date.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES
1. Representations and Warranties of the Borrower. The Borrower
--------------------------------------------------
represents and warrants as follows:
(a) The Borrower is a corporation duly organized, validly existing
and in good standing under the laws of the state of its incorporation.
(b) The execution, delivery and performance by the Borrower of this
Agreement and the Notes, and the consummation of the transactions
contemplated hereby, are within the Borrower's corporate powers, have been
duly authorized by all necessary corporate action, and do not contravene
(i) the Borrower's charter or by-laws (or other equivalent organizational
documents) or (ii) any law or contractual restriction binding on or
affecting the Borrower.
(c) No authorization or approval or other action by, and no notice to
or filing with, any governmental authority or regulatory body or any other
third party is required for the due execution, delivery and performance by
the Borrower of this Agreement or the Notes.
(d) This Agreement has been, and each of the Notes when delivered
hereunder will have been, duly executed and delivered by the Borrower.
Assuming that this Agreement has been duly executed and delivered by the
Agent and each of the Initial Lenders, this Agreement is, and each of the
Notes when delivered hereunder will be, the legal, valid and binding
obligation of the Borrower enforceable against the Borrower in accordance
with its terms, subject to (i) bankruptcy, insolvency, reorganization,
moratorium and other similar laws of general application affecting the
rights and remedies of creditors and secured parties and (ii) general
principals of equity, regardless of whether applied in proceedings in
equity or at law.
(e) The Consolidated balance sheet of the Borrower and its
Subsidiaries as at December 31, 1999, and the related Consolidated
statements of income and cash flows of the Borrower and its Subsidiaries
for the fiscal year then ended, accompanied by an opinion of Xxxxxx
Xxxxxxxx LLP, independent public accountants, copies of which have been
furnished to each Lender, fairly present the Consolidated financial
condition of the Borrower and its Subsidiaries as at such date and the
Consolidated results of the operations of the Borrower and its Subsidiaries
for the period ended on such date, all in accordance with generally
accepted accounting principles consistently applied.
(f) There is no pending or (to the knowledge of the Borrower)
threatened action or proceeding, including, without limitation, any
Environmental Action, affecting the Borrower or any of its Subsidiaries
before any court, governmental agency or arbitrator that is initiated by
any Person other than a Lender in its capacity as a Lender that purports to
affect the legality, validity or enforceability of this Agreement or any
Note.
(g) Neither the Borrower nor any of its Subsidiaries is an Investment
Company, as such term is defined in the Investment Company Act of 1940, as
amended.
(h) The Consolidated forecasted balance sheets, statements of income
and statements of cash flows of the Borrower and its Subsidiaries included
in the Information Memorandum were prepared in good faith on the basis of
the assumptions stated therein, which assumptions were reasonable in light
of the conditions existing at the time of delivery of such forecasts, and
represented, at the time of delivery, a reasonable estimate by the Borrower
of its future financial performance.
ARTICLE V
COVENANTS OF THE BORROWER
1. Affirmative Covenants. So long as any Advance shall remain unpaid
-------------------------
or any Lender shall have any Commitment hereunder, the Borrower will:
(a) Compliance with Laws, Etc. Comply, and cause each of its
-------------------------
Subsidiaries to comply, in all material respects, with all applicable laws,
rules, regulations and orders, such compliance to include, without
limitation, compliance with ERISA and Environmental Laws, except where the
failure to so comply would not have a Material Adverse Effect.
(b) Payment of Taxes, Etc. Pay and discharge, and cause each of its
---------------------
Subsidiaries to pay and discharge, before the same shall become delinquent,
(i) all taxes, assessments and governmental charges or levies imposed upon
it or upon its property and (ii) all lawful claims that, if unpaid, might
by law become a Lien upon its property; provided, however, that neither the
-------- -------
Borrower nor any of its Subsidiaries shall be required to pay or discharge
any such tax, assessment, charge or claim that is being contested in good
faith and by proper proceedings and as to which appropriate reserves are
being maintained, unless and until any Lien resulting therefrom attaches to
its property and becomes enforceable against its other creditors and the
aggregate of such Liens would have a Material Adverse Effect.
(c) Maintenance of Insurance. Maintain, and cause each of its
------------------------
Subsidiaries to maintain, insurance with responsible and reputable
insurance companies or associations in such amounts and covering such risks
as is usually carried by companies engaged in similar businesses and owning
similar properties in the same general areas in which the Borrower or such
Subsidiary operates; provided, however, that each of the Borrower and its
-------- -------
Subsidiaries may self-insure to the extent consistent with prudent business
practice.
(d) Preservation of Corporate Existence, Etc. Preserve and maintain,
----------------------------------------
and cause each of its Subsidiaries to preserve and maintain, its corporate
existence, rights (charter and statutory) and franchises; provided,
--------
however, that the Borrower and its Subsidiaries may consummate any
-------
transaction permitted under Section 5.02(b) and provided further that
-------- -------
neither the Borrower nor any of its Subsidiaries shall be required to
preserve any right or franchise if the senior management of the Borrower or
of such Subsidiary shall
determine that the preservation thereof is no longer desirable in the
conduct of the business of the Borrower or such Subsidiary, as the case may
be, and that the loss thereof is not disadvantageous in any material
respect to the Borrower or such Subsidiary.
(e) Visitation Rights. During normal business hours and upon not less
-----------------
than five days' notice, permit the Agent or any of the Lenders or any
agents or representatives thereof, to examine and make copies of and
abstracts from the records and books of account of (excluding any
confidential information), and visit the properties of, the Borrower and
any of its Subsidiaries, and to discuss the affairs, finances and accounts
of the Borrower and any of its Subsidiaries with the appropriate
representatives of the Borrower and together with the appropriate
representatives of the Borrower's independent certified public accountants,
provided, however, that examination of the records of the Borrower shall
-------- -------
occur only at times when an Advance or Advances shall be outstanding to the
Borrower and provided, further, that the Agent and the Lenders may make
-------- -------
copies of and abstracts from the records and books of account only at times
when a Default has occurred and is continuing.
(f) Keeping of Books. Keep, and cause each of its Subsidiaries to
----------------
keep, proper books of record and account, in which full and correct entries
shall be made of all financial transactions and the assets and business of
the Borrower and each such Subsidiary in accordance with generally accepted
accounting principles in effect from time to time.
(g) Maintenance of Properties, Etc. Maintain and preserve, and cause
------------------------------
each of its Subsidiaries to maintain and preserve, its properties that are
used or useful in the conduct of its business in good working order and
condition, ordinary wear and tear excepted.
(h) Transactions with Affiliates. Conduct, and cause each of its
----------------------------
Subsidiaries to conduct, all transactions otherwise permitted under this
Agreement with any of their Affiliates on terms that are fair and
reasonable and no less favorable to the Borrower or such Subsidiary than it
would obtain in a comparable arm's-length transaction with a Person not an
Affiliate, except where the failure to do so, in the aggregate, would not
have a Material Adverse Effect.
(i) Reporting Requirements. Furnish to the Lenders:
----------------------
(i) soon as available and in any event within 60 days after
the end of each of the first three quarters of each fiscal year of the
Borrower, the Consolidated balance sheet of the Borrower and its
Subsidiaries as of the end of such quarter and the Consolidated
statements of income and cash flows of the Borrower and its
Subsidiaries for the period commencing at the end of the previous
fiscal year and ending with the end of such quarter, duly certified
(subject to year-end audit adjustments) by the chief financial
officer, treasurer or controller of the Borrower as having been
prepared in accordance with generally accepted accounting principles
and certificates of the chief financial officer, treasurer or
controller of the Borrower as to compliance with the terms of this
Agreement and setting forth
in reasonable detail the calculations necessary to demonstrate
compliance with Section 5.03, provided that in the event of any change
--------
in GAAP used in the preparation of such financial statements, the
Borrower shall also provide, if necessary for the determination of
compliance with Section 5.03, a description of such change in GAAP and
the effect of such change on the calculations required to make such
determination of compliance;
(ii) as soon as available and in any event within 120 days after
the end of each fiscal year of the Borrower, a copy of the annual
audited report for such year for the Borrower and its Subsidiaries,
containing the Consolidated balance sheet of the Borrower and its
Subsidiaries as of the end of such fiscal year and the Consolidated
statements of income and cash flows of the Borrower and its
Subsidiaries for such fiscal year, in each case accompanied by an
opinion acceptable to the Required Lenders by Xxxxxx Xxxxxxxx LLP or
other independent public accountants of nationally recognized
standing, provided that in the event of any change in GAAP used in the
--------
preparation of such financial statements, the Borrower shall also
provide, if necessary for the determination of compliance with Section
5.03, a description of such change in GAAP and the effect of such
change on the calculations required to make such determination of
compliance;
(iii) as soon as possible and in any event within five Business
Days after the occurrence of each Default continuing on the date of
such statement, a statement of the chief financial officer, treasurer
or controller of the Borrower setting forth details of such Default
and the action that the Borrower has taken and proposes to take with
respect thereto;
(iv) promptly after the sending or filing thereof, copies of all
quarterly and annual reports and proxy solicitations that the Borrower
sends to any of its securityholders, and copies of all reports on Form
8-K that the Borrower files with the Securities and Exchange
Commission (other than reports on Form 8-K filed solely for the
purpose of incorporating exhibits into a registration statement
previously filed with the Securities and Exchange Commission);
(v) prompt notice of all actions and proceedings before any
court, governmental agency or arbitrator affecting the Borrower or any
of its Subsidiaries of the type described in Section 3.01(b); and
(vi) such other information respecting the Borrower or any of
its Subsidiaries as any Lender through the Agent may from time to time
reasonably request.
Reports required to be delivered pursuant to clauses (i), (ii) and
(iv) above shall be deemed to have been delivered on the date on which such
report is posted on the SEC's website at xxx.xxx.xxx, and such posting shall be
-----------
deemed to satisfy the reporting requirements of clauses (i), (ii) and (iv)
above; provided that in every instance the Borrower shall provide paper copies
--------
of the certificate required by clauses (iii) and (v)
above to the Agent and each of the Lenders until such time as the Agent
shall provided the Borrower written notice otherwise.
(j) Covenant to Guarantee Obligations. Promptly and in any event
---------------------------------
within 10 days of either (i) the formation or acquisition of any new direct
or indirect Material Subsidiary or (ii) the delivery of audited annual
financial statements pursuant to Section 5.01(i) that indicate that a
Subsidiary of the Borrower that is not at such time a guarantor is a
Material Subsidiary, at the Borrower's expense, cause such Material
Subsidiary to duly execute and deliver to the Agent a guaranty in
substantially the form of Exhibit F hereto (a "Guaranty") or Guaranty
--------
Supplement (as defined in the Guaranty), together with such documents as
the Required Lenders may request evidencing corporate action taken to
authorize such execution and delivery, the incumbency and signatures of
officers of such Material Subsidiary and a signed copy of a favorable
opinion, addressed to the Agent and the Lenders, of counsel for the
Borrower reasonably acceptable to the Agent as to (A) such Guaranties and
Guaranty Supplements being legal, valid and binding obligations of each
Person party thereto, enforceable in accordance with their terms, subject
to (1) bankruptcy, insolvency, reorganization, moratorium and other similar
laws of general application affecting the rights and remedies of creditors
and secured parties and (2) general principles of equity, regardless of
whether applied in proceedings in equity or at law, and (B) such other
matters as the Required Lenders may reasonably request.
2. Negative Covenants. So long as any Advance shall remain unpaid or
----------------------
any Lender shall have any Commitment hereunder, the Borrower will not:
(a) Liens, Etc. Create or suffer to exist, or permit any Subsidiary
----------
to create or suffer to exist, any Lien on or with respect to any of its
properties, whether now owned or hereafter acquired, or on any of the
income or profits therefrom, unless it shall have made effective provision
whereby the Advances shall be secured by such Lien equally and ratably with
any and all obligations and Debt so secured so long as such obligations and
Debt are so secured; provided that nothing in this Section 5.02 shall be
construed to prevent or restrict the following:
(i) Permitted Liens;
(ii) purchase money Liens (including mortgages, conditional
sales, capital leases and any other title retention, deferred purchase
or vendor financing device or arrangement) upon or in any real
property or equipment acquired or held by the Borrower or any of its
Subsidiaries in the ordinary course of business to secure the purchase
price of such property or equipment or to secure Debt incurred solely
for the purpose of financing the acquisition of such property or
equipment, or Liens existing on such property or equipment at the time
of its acquisition, or conditional sales or other similar title
retention agreements with respect to property hereafter acquired or
extensions, renewals or replacements of any of the foregoing for the
same or a lesser amount, provided, however, that no such Lien shall
-------- -------
extend to or cover any properties of any character other than the real
property or equipment being acquired, and no such extension, renewal
or replacement shall extend to or cover any properties not theretofore
subject to the Lien being extended, renewed or replaced;
(iii) the Liens existing on the Effective Date and described on
Schedule 5.02(a) hereto;
(iv) Liens on property or assets of a Person existing at the
time (A) such Person is merged into or consolidated with the Borrower
or any of its Subsidiaries or (B) any property or assets of such
Person is acquired by the Borrower or any of its Subsidiaries;
provided that any such Liens that were created during the period
--------
immediately prior to such merger, consolidation or acquisition were
created in the ordinary course of business of such Person and the Debt
secured by such Liens does not exceed the fair market value of the
assets (including intangible assets) of such Person so merged into or
consolidated with the Borrower or any of its Subsidiaries or so
acquired by the Borrower or any of its Subsidiaries;
(v) the subordination of the Borrower's rights with respect to
any Debt owed to the Borrower by any of its Subsidiaries to the right
of any creditor of such Subsidiary for money or credit advanced to
such Subsidiary;
(vi) the replacement, extension or renewal of any Lien permitted
by clauses (iii) and (iv) above upon or in the same property
theretofore subject thereto or the replacement, extension or renewal
(without increase in the amount or extension of the final maturity
date) of the Debt secured thereby; and
(vii) Liens on deposits with banks, if such Liens are made in
connection with loans made by such banks to any Subsidiaries of the
Borrower so long as all such deposits subject to such Liens shall not
in the aggregate exceed $35,000,000.
(b) Mergers, Etc. Merge or consolidate with or into, or convey,
------------
transfer, lease or otherwise dispose of (whether in one transaction or in a
series of transactions) all or substantially all of its assets (whether now
owned or hereafter acquired) to, any Person, or permit its Subsidiaries to
merge or consolidate with or into, or convey, transfer, lease or otherwise
dispose of (whether in one transaction or in a series of transactions) all
or substantially all of their assets to, any Person (other than the
Borrower or any Subsidiary), except that (i) any Person primarily engaged
in the communications business may merge into or consolidate with the
Borrower so long as the Borrower is the surviving corporation, (ii) the
Subsidiaries may merge into, consolidate with or dispose of assets to
Persons other than the Borrower and its Subsidiaries so long as, after
giving effect to such transaction, the Subsidiaries, taken as a whole, have
not disposed of all or substantially all of their assets, and (iii) the
Borrower may merge with any of its Subsidiaries so long as the surviving
corporation assumes all obligations of the Borrower hereunder and under the
Notes and such surviving corporation has a Public Debt Rating from at least
one of Xxxxx'x and S&P of better than or equal to Baa2 and BBB,
respectively, provided, in
--------
each case, that no Default shall have occurred and be continuing at the
time of such proposed transaction or would result therefrom.
(c) Accounting Changes. Make or permit, or permit any of its
------------------
Subsidiaries to make or permit, any change in accounting policies or
reporting practices, except (i) as required or permitted by GAAP or (ii)
where the effect of such change, together with all other changes in
accounting policies or reporting practices made pursuant to this clause
(ii) since the Effective Date, is immaterial to the Borrower and its
Subsidiaries taken as a whole.
3. Financial Covenant. So long as any Advance shall remain unpaid or
----------------------
any Lender shall have any Commitment hereunder, the Borrower shall maintain, at
the end of each fiscal quarter, a ratio of (a) Consolidated Debt to (b) the sum
of Consolidated Debt plus Consolidated Contributed Capital, of not more than
0.73:1.0.
ARTICLE VI
EVENTS OF DEFAULT
1. Events of Default. If any of the following events ("Events of
--------------------- ---------
Default") shall occur and be continuing:
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(a) the Borrower shall fail to pay any principal of any Advance when
the same becomes due and payable; or the Borrower shall fail to pay any
interest on any Advance or make any other payment of fees or other amounts
payable under this Agreement or any Note within five Business Days after
the same becomes due and payable; or
(b) any representation or warranty made or deemed made by the
Borrower herein or by the Borrower (or any of its officers) in connection
with this Agreement or by any Material Subsidiary in any Guaranty shall
prove to have been incorrect in any material respect when made or deemed
made; or
(c) (i) the Borrower shall fail to perform or observe any term,
covenant or agreement contained in Section 5.01(d), 5.01(e), 5.01(h),
5.01(i)(iii) or 5.01(i)(v), 5.02 or 5.03, or (ii) the Borrower shall fail
to perform or observe any term, covenant or agreement contained in Section
5.01(i) (other than clauses (iii) and (v) thereof) if such failure shall
remain unremedied for five Business Days after written notice thereof shall
have been given to the Borrower by the Agent or any Lender, or (iii) the
Borrower shall fail to perform or observe any other term, covenant or
agreement contained in this Agreement on its part to be performed or
observed if such failure shall remain unremedied for 30 days after written
notice thereof shall have been given to the Borrower by the Agent or any
Lender; or
(d) the Borrower or any Subsidiary shall fail to pay any principal of
or premium or interest on any Debt that is outstanding in a principal or,
in the case of Hedge Agreements, net amount of at least $100,000,000 in the
aggregate (but excluding Debt outstanding hereunder) of the Borrower or
such Subsidiary (as the case may be) (the
"Requisite Amount"), when the same becomes due and payable (whether by
----------------
scheduled maturity, required prepayment, acceleration, demand or
otherwise), and such failure shall continue after the later of five
Business Days and the applicable grace period, if any, specified in the
agreement or instrument relating to such Debt; or any such Debt aggregating
the Requisite Amount shall be declared due and payable or any other event
shall occur or condition shall exist under any agreement or instrument
relating to any such Debt aggregating the Requisite Amount and shall
continue after the applicable grace period, if any, specified in such
agreement or instrument, if the effect of such event or condition is to
accelerate the maturity of such Debt; or any such Debt aggregating the
Requisite Amount shall be required to be prepaid or redeemed (other than by
a regularly scheduled required prepayment or redemption), purchased or
defeased, in each case prior to the stated maturity thereof where the cause
of such prepayment, redemption, purchase or defeasance is the occurrence of
an event or condition that is premised on a material adverse deterioration
of the financial condition, results of operations or properties of the
Borrower or such Subsidiary; provided that with respect to Debt aggregating
--------
the Requisite Amount of the types described in clauses (h) or (i) of the
definition of "Debt" and to the extent such Debt relates to the obligations
of any Person other than a Subsidiary of the Borrower, no Event of Default
shall occur so long as the payment of such Debt is being contested in good
faith and by proper proceedings and as to which appropriate reserves are
being maintained; or
(e) the Borrower or any of its Material Subsidiaries shall generally
not pay its debts as such debts become due, or shall admit in writing its
inability to pay its debts generally, or shall make a general assignment
for the benefit of creditors; or any proceeding shall be instituted by or
against the Borrower or any of its Material Subsidiaries seeking to
adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up,
reorganization, arrangement, adjustment, protection, relief, or composition
of it or its debts under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order for
relief or the appointment of a receiver, trustee, custodian or other
similar official for it or for any substantial part of its property and, in
the case of any such proceeding instituted against it (but not instituted
by it), either such proceeding shall remain undismissed or unstayed for a
period of 60 days, or any of the actions sought in such proceeding
(including, without limitation, the entry of an order for relief against,
or the appointment of a receiver, trustee, custodian or other similar
official for, it or for any substantial part of its property) shall occur;
or the Borrower or any of its Material Subsidiaries shall take any
corporate action to authorize any of the actions set forth in this Section
6.01(e) under any law relating to bankruptcy, insolvency or reorganization
or relief of debtors; or
(f) any judgment or order for the payment of money in excess of
$100,000,000 shall be rendered against the Borrower or any of its Material
Subsidiaries and enforcement proceedings shall have been commenced by any
creditor upon such judgment or order for which a stay of enforcement of
such judgment or order, by reason of a pending appeal or otherwise, shall
not be in effect; provided, however, that any such judgment or order shall
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not be an Event of Default under this Section 6.01(f) if and for so
long as (i) the amount of such judgment or order is covered by a valid and
binding policy of insurance between the defendant and the insurer or
insurers covering payment thereof, (ii) such insurer shall be rated, or if
more than one insurer, at least 90% of such insurers as measured by the
amount of risk insured shall be rated, at least "A-" by A.M. Best Company
or its successor or its successors and (iii) each such insurer has been
notified of, and has not disputed the claim made for payment of, the amount
of such judgment or order; or
(g) (i) any Person (other than Verizon or any of its Subsidiaries) or
two or more Persons (other than Verizon and/or any of its Subsidiaries)
acting in concert shall have acquired beneficial ownership (within the
meaning of Rule 13d-3 of the Securities and Exchange Commission under the
Securities Exchange Act of 1934), directly or indirectly, of Voting Stock
of the Borrower (or other securities convertible into such Voting Stock)
representing more than 50% of the combined voting power of all Voting Stock
of the Borrower; or (ii) during any period of up to 24 consecutive months,
commencing after the date of this Agreement, individuals who at the
beginning of such 24-month period were directors of the Borrower shall
cease for any reason (other than solely as a result of (A) death or
disability or (B) voluntary retirement or resignation of any individual in
the ordinary course and not for reasons related to an actual or proposed
change of control of the Borrower) to constitute a majority of the board of
directors of the Borrower; or (iii) Verizon shall cease, prior to the
exercise of the Verizon Option, to control, directly or indirectly, a
sufficient number of shares of the Borrower's capital stock such that, upon
exercise of the Verizon Option, Verizon would own, directly or indirectly,
at least 50% of the combined voting power of all Voting Stock of the
Borrower; or (iv) the Verizon Option is cancelled or becomes invalid or
unenforceable (other than upon the exercise thereof) or the U.S. Federal
Communications Commission issues a final ruling that will prevent the
exercise of the Verizon Option; or (v) after the exercise of the Verizon
Option, Verizon shall cease to own, directly or indirectly, at least 50% of
the combined voting power of all Voting Stock of the Borrower; or
(h) the Borrower or its ERISA Affiliates shall incur, or shall be
reasonably likely to incur, liability that would have a Material Adverse
Effect as a result of one or more of the following: (i) the occurrence of
any ERISA Event; (ii) the partial or complete withdrawal of the Borrower or
its ERISA Affiliates from a Multiemployer Plan; or (iii) the reorganization
or termination of a Multiemployer Plan;
then, and in any such event, the Agent (i) shall at the request, or may with the
consent, of the Required Lenders, by notice to the Borrower, declare the
obligation of each Lender to make Advances to be terminated, whereupon the same
shall forthwith terminate, and (ii) shall at the request, or may with the
consent, of the Required Lenders, by notice to the Borrower, declare the Notes,
all interest thereon and all other amounts payable under this Agreement by the
Borrower to be forthwith due and payable, whereupon the Notes, all such interest
and all such amounts shall become and be forthwith due and payable, without
presentment, demand, protest or further notice of any kind, all of which are
hereby expressly waived; provided, however, that in the event of an actual or
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deemed entry of an order for relief under the Federal Bankruptcy Code, (A) the
obligation of each Lender to make Advances shall automatically be terminated and
(B) the Notes, all such interest and all such amounts shall automatically become
and be due and payable, without presentment, demand, protest or any notice of
any kind, all of which are hereby expressly waived.
ARTICLE VII
THE AGENT
1. Authorization and Action. Each Lender hereby appoints and
----------------------------
authorizes the Agent to take such action as agent on its behalf and to exercise
such powers and discretion under this Agreement as are delegated to the Agent by
the terms hereof, together with such powers and discretion as are reasonably
incidental thereto. As to any matters not expressly provided for by this
Agreement (including, without limitation, enforcement or collection of the
Notes), the Agent shall not be required to exercise any discretion or take any
action, but shall be required to act or to refrain from acting (and shall be
fully protected in so acting or refraining from acting) upon the instructions of
the Required Lenders and such instructions shall be binding upon all Lenders and
all holders of Notes; provided, however, that the Agent shall not be required to
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take any action that exposes the Agent to personal liability or that is contrary
to this Agreement or applicable law. The Agent agrees to give to each Lender
prompt notice of each notice given to it by the Borrower pursuant to the terms
of this Agreement.
2. Agent's Reliance, Etc. Neither the Agent nor any of its
-------------------------
directors, officers, agents or employees shall be liable for any action taken or
omitted to be taken by it or them under or in connection with this Agreement,
except for its or their own gross negligence or willful misconduct. Without
limitation of the generality of the foregoing, the Agent: (a) may treat the
payee of any Note as the holder thereof until the Agent receives and accepts an
Assignment and Acceptance entered into by the Lender that is the payee of such
Note, as assignor, and an Eligible Assignee, as assignee, as provided in Section
8.07; (b) may consult with legal counsel (including counsel for the Borrower),
independent public accountants and other experts selected by it and shall not be
liable for any action taken or omitted to be taken in good faith by it in
accordance with the advice of such counsel, accountants or experts; (c) makes no
warranty or representation to any Lender and shall not be responsible to any
Lender for any statements, warranties or representations (whether written or
oral) made in or in connection with this Agreement; (d) shall not have any duty
to ascertain or to inquire as to the performance or observance of any of the
terms, covenants or conditions of this Agreement on the part of the Borrower or
to inspect the property (including the books and records) of the Borrower; (e)
shall not be responsible to any Lender for the due execution, legality,
validity, enforceability, genuineness, sufficiency or value of this Agreement or
any other instrument or document furnished pursuant hereto; and (f) shall incur
no liability under or in respect of this Agreement by acting upon any notice,
consent, certificate or other instrument or writing (which may be by telecopier,
telegram or telex) believed by it to be genuine and signed or sent by the proper
party or parties.
3. Chase and Affiliates. With respect to its Commitment, the
------------------------
Advances made by it and the Notes issued to it, Chase shall have the same rights
and powers under this
Agreement as any other Lender and may exercise the same as though it were not
the Agent; and the term "Lender" or "Lenders" shall, unless otherwise expressly
indicated, include Chase in its individual capacity. Chase and its Affiliates
may accept deposits from, lend money to, act as trustee under indentures of,
accept investment banking engagements from and generally engage in any kind of
business with, the Borrower, its Subsidiaries and any Person who may do business
with or own securities of the Borrower or its Subsidiaries, all as if Chase were
not the Agent and without any duty to account therefor to the Lenders.
4. Lender Credit Decision. Each Lender acknowledges that it has,
--------------------------
independently and without reliance upon the Agent or any other Lender and based
on the financial statements referred to in Section 4.01(e) and such other
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon the Agent or
any other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under this Agreement.
5. Indemnification. The Lenders agree to indemnify the Agent (to the
-------------------
extent not reimbursed by the Borrower), ratably according to the respective
principal amounts of the Revolving Credit Advances owed each of them (or if no
Revolving Credit Advances are at the time outstanding, ratably according to
their Commitments), from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever that may be imposed on, incurred
by, or asserted against the Agent in any way relating to or arising out of this
Agreement or any action taken or omitted by the Agent under this Agreement,
provided that no Lender shall be liable for any portion of such liabilities,
--------
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting from the Agent's gross negligence or willful
misconduct. Without limitation of the foregoing, each Lender agrees to
reimburse the Agent promptly upon demand for its ratable share of any out-of-
pocket expenses (including counsel fees) incurred by the Agent in connection
with the preparation, execution, delivery, administration, modification,
amendment or enforcement (whether through negotiations, legal proceedings or
otherwise) of, or legal advice in respect of rights or responsibilities under,
this Agreement, to the extent that the Agent is not reimbursed for such expenses
by the Borrower.
6. Successor Agent. The Agent may resign at any time by giving
-------------------
written notice thereof to the Lenders and the Borrower and may be removed at any
time with or without cause by the Required Lenders. Upon any such resignation or
removal, the Required Lenders shall have the right to appoint a successor Agent
which, so long as no Default shall have occurred and be continuing, shall be
subject to the Borrower's approval, which approval shall not be unreasonably
withheld. If no successor Agent shall have been so appointed by the Required
Lenders, and shall have accepted such appointment, within 30 days after the
retiring Agent's giving of notice of resignation or the Required Lenders'
removal of the retiring Agent, then the retiring Agent may, on behalf of the
Lenders, appoint a successor Agent, which shall be a commercial bank organized
or licensed under the laws of the United States of America or of any State
thereof and having a combined capital and surplus of at least $50,000,000. Upon
the
acceptance of any appointment as Agent hereunder by a successor Agent, such
successor Agent shall thereupon succeed to and become vested with all the
rights, powers, discretion, privileges and duties of the retiring Agent, and the
retiring Agent, upon appointment of such successor Agent, shall be discharged
from its duties and obligations under this Agreement. After any retiring Agent's
resignation or removal hereunder as Agent, the provisions of this Article VII
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Agent under this Agreement.
7. Other Agents. Citibank, N.A. has been designated as syndication
----------------
agent, Credit Suisse First Boston and Deutsche Bank AG, New York and/or Cayman
Islands Branches have been designated as co-documentation agents and certain
other Lenders have been designated as managing agents or co-agents on the
signature pages hereof; the use of such titles does not impose on Citibank,
N.A., Credit Suisse First Boston, Deutsche Bank AG, New York and/or Cayman
Islands Branches or any such other Lender any duties or obligations greater than
those of any other Lender.
ARTICLE VIII
MISCELLANEOUS
1. Amendments, Etc. (a) No amendment or waiver of any provision of
-------------------
this Agreement or the Revolving Credit Notes, nor consent to any departure by
the Borrower therefrom, shall in any event be effective unless the same shall be
in writing and signed by the Borrower and the Required Lenders, and then such
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given; provided, however, that: (i) no amendment,
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waiver or consent shall, unless in writing and signed by all the Lenders, (A)
waive any of the conditions specified in Section 3.01, (B) change the percentage
of the Commitments or of the aggregate unpaid principal amount of the Revolving
Credit Notes, or the number of Lenders, that shall be required for the Lenders
or any of them to take any action hereunder or (C) amend this Section 8.01; and
(ii) no amendment, waiver or consent shall, unless in writing and signed by the
Required Lenders and each Lender that has or is owed obligations under this
Agreement or the Notes that are modified by such amendment, waiver or consent,
(A) increase the Commitment of such Lender or subject such Lender to any
additional obligations, (B) reduce the principal of, or interest on, the
Revolving Credit Notes held by such Lender or any fees or other amounts payable
hereunder to such Lender, (C) postpone any date fixed for any payment of
principal of, or interest on, the Revolving Credit Notes held by such Lender or
any fees or other amounts payable hereunder to such Lender or (D) waive the
application of Section 2.15; and provided further that no amendment, waiver or
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consent shall, unless in writing and signed by the Agent in addition to the
Lenders required above to take such action, affect the rights or duties of the
Agent under this Agreement or any Note.
(b) Each Lender grants (i) to the Agent the right to purchase all
(but not less than all) of such Lender's Commitments and Advances owing to it
and the Notes held by it and all of its rights and obligations hereunder and
under the other Loan Documents at a price equal to the aggregate amount of
outstanding Advances owed to such Lender (together with all accrued and unpaid
interest and fees owed to such Lender), and (ii) to the Borrower the right to
cause an
assignment of all (but not less than all) of such Lender's Commitments and
Advances owing to it and the Notes held by it and all of its rights and
obligations hereunder and under the other Loan Documents to Eligible Assignees,
which right may be exercised by the Agent or the Borrower, as the case may be,
if such Lender refuses to execute any amendment, waiver or consent which
requires the written consent of all the Lenders and to which Lenders owed at
least 90% of the aggregate unpaid principal amount of Revolving Credit Advances
or, if no such principal amount is then outstanding, Lenders having at least 90%
of the Commitments, the Agent and the Borrower have agreed. Each Lender agrees
that if the Agent or the Borrower, as the case may be, exercises its option
hereunder, it shall promptly execute and deliver all agreements and
documentation necessary to effectuate such assignment as set forth in Section
8.07.
2. Notices, Etc. All notices and other communications provided for
----------------
hereunder shall be in writing (including telecopier communication) and mailed,
telecopied or delivered by hand or by courier, if to the Borrower, at its
address at 0 Xxx xx Xxxxxx Xxxxx, Xxxxxxxxxx, Xxxxxxxxxxxxx 00000, Attention: W.
Xxxx Xxxxxx (fax no. 000 000-0000), with a copy to its Secretary (fax no. 781
000-0000); if to any Initial Lender, at its Domestic Lending Office specified
opposite its name on Schedule I hereto; if to any other Lender, at its Domestic
Lending Office specified in the Assumption Agreement or the Assignment and
Acceptance pursuant to which it became a Lender; and if to the Agent, at its
address at 000 Xxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: Xxxxxxxxx
Xxxxxxx (fax no. 000 000-0000), with a copy to Xxx Xxxxx Xxxxx, Xxx Xxxx, Xxx
Xxxx 00000, Attention: Xxxxxxx X. XxXxxxx (fax no. 000 000-0000); or, as to the
Borrower or the Agent, at such other address as shall be designated by such
party in a written notice to the other parties and, as to each Lender, at such
other address as shall be designated by such Lender in a written notice to the
Borrower and the Agent. All such notices and communications to any Person shall
be effective (a) when actually delivered in fully legible form to such Person or
(b) five days after being deposited in the United States mails, with first class
postage prepaid and registered or certified, provided that notices and
--------
communications to the Agent pursuant to Article II, III or VII shall not be
effective until received by the Agent, and provided, further, that notices and
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communications to any Person required to be provided hereunder within five
Business Days shall only be made by hand or via telecopy or courier. Delivery by
telecopier of an executed counterpart of any amendment or waiver of any
provision of this Agreement or the Notes or of any Exhibit hereto to be executed
and delivered hereunder shall be effective as delivery of an original executed
counterpart thereof.
3. No Waiver; Remedies. No failure on the part of any Lender or the
-----------------------
Agent to exercise, and no delay in exercising, any right hereunder or under any
Note shall operate as a waiver thereof; nor shall any single or partial exercise
of any such right preclude any other or further exercise thereof or the exercise
of any other right. The remedies herein provided are cumulative and not
exclusive of any remedies provided by law.
4. Costs and Expenses. (a) The Borrower agrees to pay on demand all
----------------------
reasonable out-of-pocket costs and expenses of the Agent and the Arranger in
connection with the preparation, execution, delivery, administration,
modification and amendment of this Agreement, the Notes and the other documents
to be delivered hereunder, including, without limitation, (i) all reasonable due
diligence, syndication (including, without limitation, printing,
distribution and bank meetings), transportation, computer, duplication,
appraisal, audit and insurance expenses and (ii) the reasonable fees and
expenses of counsel for the Agent with respect thereto and with respect to
advising the Agent as to its rights and responsibilities under this Agreement.
Such expenses shall be paid by the Borrower upon presentation of an itemized
statement of account (after reasonable time for the Borrower to review such
statement of account), regardless of whether the transactions contemplated by
this Agreement are consummated. The Borrower further agrees to pay on demand all
costs and expenses of the Agent and the Lenders, if any (including, without
limitation, reasonable counsel fees and expenses), in connection with the
enforcement (whether through negotiations, legal proceedings or otherwise) of
this Agreement, the Notes and the other documents to be delivered hereunder,
including, without limitation, reasonable fees and expenses of counsel for the
Agent and each Lender in connection with the enforcement of rights under this
Section 8.04(a).
(b) The Borrower agrees to indemnify and hold harmless the Agent and each
Lender and each of their Affiliates and their officers, directors, employees,
agents and advisors (each, an "Indemnified Party") from and against any and all
-----------------
claims, damages, losses, liabilities and expenses (including, without
limitation, reasonable fees and expenses of counsel) that may be incurred by or
asserted or awarded against any Indemnified Party, in each case arising out of
or in connection with or by reason of, or in connection with the preparation for
a defense of, any investigation, litigation or proceeding arising out of,
related to or in connection with (i) the Notes, this Agreement, any of the
transactions contemplated herein or the actual or proposed use of the proceeds
of the Advances or (ii) the actual or alleged presence of Hazardous Materials on
any property of the Borrower or any of its Subsidiaries or any Environmental
Action relating in any way to the Borrower or any of its Subsidiaries, in each
case whether or not such investigation, litigation or proceeding is brought by
the Borrower, its directors, shareholders or creditors or an Indemnified Party
or any other Person or any Indemnified Party is otherwise a party thereto and
whether or not the transactions contemplated hereby are consummated, except to
the extent such claim, damage, loss, liability or expense (A) results from such
Indemnified Party's gross negligence or willful misconduct, (B) arises from
disputes among two or more Lenders (but not including any such dispute that
involves a Lender to the extent such Lender is acting in any different capacity
(i.e., Agent, Arranger, Syndication Agent or Documentation Agent) under the Loan
----
Documents or to the extent that it involves the Agent's syndication activities)
or (C) arises from litigation commenced by the Borrower against the Lenders or
the Agent which seeks enforcement of any of the rights of the Borrower hereunder
or under the Notes and is determined adversely to the Lenders or the Agent in a
final nonappealable judgment. The Borrower also agrees not to assert any claim
against the Agent, any Lender, any of their Affiliates, or any of their
respective directors, officers, employees, attorneys and agents, on any theory
of liability, for special, indirect, consequential or punitive damages arising
out of or otherwise relating to the Notes, this Agreement, any of the
transactions contemplated herein or the actual or proposed use of the proceeds
of the Advances.
(c) If any payment of principal of, or Conversion of, any Eurodollar Rate
Advance or LIBO Rate Advance is made by the Borrower (or pursuant to Section
8.01(b)) to or for the account of a Lender other than on the last day of the
Interest Period for such Advance, as a result of a payment, prepayment or
Conversion pursuant to this Agreement or acceleration of
the maturity of the Notes pursuant to Section 6.01, the Borrower shall, upon
demand by such Lender (with a copy of such demand to the Agent), pay to the
Agent for the account of such Lender any amounts required to compensate such
Lender for any additional losses, costs or expenses that it may reasonably incur
as a result of such payment or Conversion, including, without limitation, any
loss (excluding loss of anticipated profits), cost or expense incurred by reason
of the liquidation or reemployment of deposits or other funds acquired by any
Lender to fund or maintain such Advance.
(d) Without prejudice to the survival of any other agreement of the
Borrower hereunder, the agreements and obligations of the Borrower contained in
Sections 2.11 and 2.14 and this Section 8.04 shall survive the payment in full
of principal, interest and all other amounts payable hereunder and under the
Notes.
5. Right of Set-off. Upon (a) the occurrence and during the
--------------------
continuance of any Event of Default and (b) the making of the request or the
granting of the consent specified by Section 6.01 by the Required Lenders to
authorize the Agent to declare the Notes due and payable pursuant to the
provisions of Section 6.01 and notice to the Borrower as required under Section
6.01, each Lender and each of its Affiliates 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 such Affiliate to or for the credit or the account of the Borrower against
any and all of the obligations of the Borrower now or hereafter existing under
this Agreement and the Note held by such Lender, whether or not such Lender
shall have made any demand under this Agreement or such Note and although such
obligations may be unmatured. Each Lender agrees promptly to notify the Borrower
after any such set-off and application, provided that the failure to give such
--------
notice shall not affect the validity of such set-off and application. The rights
of each Lender and its Affiliates under this Section 8.05 are in addition to
other rights and remedies (including, without limitation, other rights of set-
off) that such Lender and its Affiliates may have.
6. Binding Effect. This Agreement shall become effective (other than
------------------
Sections 2.01 and 2.03, which shall only become effective upon satisfaction of
the conditions precedent set forth in Section 3.01) when it shall have been
executed by the Borrower and the Agent and when the Agent shall have been
notified by each Initial Lender that such Initial Lender has executed it and
thereafter shall be binding upon and inure to the benefit of the Borrower, the
Agent and each Lender and their respective successors and permitted assigns,
except that the Borrower shall not have the right to assign its rights hereunder
or any interest herein without the prior written consent of the Lenders.
7. Assignments and Participations. (a) Each Lender may, with the
----------------------------------
consent of the Agent (except as provided in Section 8.07(g)) and the Borrower
(which consent may be withheld in the Borrower's sole and absolute discretion)
and, if demanded by the Borrower (i) following a request for a payment to or on
behalf of such Lender under Section 2.11 or Section 2.14, (ii) following a
notice given by such Lender pursuant to Section 2.12 or (iii) pursuant to
Section 8.01(b) upon at least ten Business Days' notice to such Lender and the
Agent, will, assign
to one or more Persons all or a portion of its rights and obligations under this
Agreement (including, without limitation, all or a portion of its Commitment,
the Revolving Credit Advances owing to it and the Revolving Credit Notes held by
it); provided, that the Borrower may make demand with respect to a Lender that
--------
has given notice pursuant to Section 2.12 only if the Borrower makes such demand
of all Lenders similarly situated that have given such notice; provided,
--------
further, that (A) each such assignment shall be of a constant, and not a
-------
varying, percentage of all rights and obligations under this Agreement and the
Revolving Credit Notes (other than any right to make Competitive Bid Advances,
Competitive Bid Advances owing to it and Competitive Bid Notes), (B) except in
the case of an assignment to a Person that, immediately prior to such
assignment, was a Lender or an assignment of all of a Lender's rights and
obligations under this Agreement, the amount of the Commitment of the assigning
Lender being assigned pursuant to each such assignment (determined as of the
date of the Assignment and Acceptance with respect to such assignment) shall in
no event be less than $20,000,000 or an integral multiple of $1,000,000 in
excess thereof, (C) each such assignment shall be to an Eligible Assignee, (D)
each such assignment made as a result of a demand by the Borrower shall be
arranged by the Borrower after consultation with the Agent and shall be either
an assignment of all of the rights and obligations of the assigning Lender under
this Agreement or an assignment of a portion of such rights and obligations made
concurrently with another such assignment or other such assignments that
together cover all of the rights and obligations of the assigning Lender under
this Agreement, (E) no Lender shall be obligated to make any such assignment as
a result of a demand by the Borrower unless and until such Lender shall have
received one or more payments from either the Borrower or one or more Eligible
Assignees in an aggregate amount at least equal to the aggregate outstanding
principal amount of the Advances owing to such Lender, together with accrued
interest thereon to the date of payment of such principal and all other amounts
payable to such Lender under this Agreement and (F) the parties to each such
assignment shall execute and deliver to the Agent, for its acceptance and
recording in the Register, an Assignment and Acceptance, together with any
Revolving Credit Notes subject to such assignment and a processing and
recordation fee of $3,500 (which shall be paid by Persons other than the
Borrower unless such assignment is made as a result of a demand by the
Borrower). Upon such execution, delivery, acceptance and recording, from and
after the effective date specified in each Assignment and Acceptance, (1) the
assignee thereunder shall (x) be a party hereto and (y) to the extent that
rights and obligations hereunder have been assigned to it pursuant to such
Assignment and Acceptance, have the rights and obligations of a Lender hereunder
and (2) the Lender assignor thereunder shall, to the extent that rights and
obligations hereunder have been assigned by it pursuant to such Assignment and
Acceptance, relinquish its rights other than rights of indemnification under
Section 8.04 or otherwise relating to a time prior to the effective date of such
Assignment and Acceptance, and 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).
(b) By executing and delivering an Assignment and Acceptance, the
Lender assignor thereunder and the assignee thereunder confirm to and agree with
each other and the other parties hereto as follows: (i) other than as provided
in such Assignment and Acceptance, 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; (ii) such assigning Lender
makes no representation or warranty and assumes no responsibility with respect
to the financial condition of the Borrower or the performance or observance by
the Borrower of any of its obligations under this Agreement or any other
instrument or document furnished pursuant hereto; (iii) such assignee confirms
that it has received a copy of this Agreement, together with copies of the
financial statements referred to in Section 4.01(e) or the most recent financial
statements required to be delivered pursuant to Section 5.01(i) 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; (iv) such
assignee will, independently and without reliance upon the 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; (v) such assignee confirms
that it is an Eligible Assignee; (vi) such assignee appoints and authorizes the
Agent to take such action as agent on behalf of such assignee and to exercise
such powers and discretion under this Agreement as are delegated to the Agent by
the terms hereof, together with such powers and discretion as are reasonably
incidental thereto; and (vii) such assignee agrees that it will perform in
accordance with their terms all of the obligations that by the terms of this
Agreement are required to be performed by it as a Lender.
(c) Upon its receipt of an Assignment and Acceptance executed by an
assigning Lender, an assignee representing that it is an Eligible Assignee and
the Borrower, together with the Revolving Credit Notes subject to such
assignment, the Agent shall, if such Assignment and Acceptance has been
completed and is in substantially the form of Exhibit C hereto, (i) accept such
Assignment and Acceptance, (ii) record the information contained therein in the
Register and (iii) give prompt notice thereof to the Borrower. Within five
Business Days after its receipt of such notice, the Borrower, at its own
expense, shall execute and deliver to the Agent in exchange for the surrendered
Revolving Credit Notes new Revolving Credit Notes to the order of such Eligible
Assignee in an amount equal to the Commitment assumed by it pursuant to such
Assignment and Acceptance and, if the assigning Lender has retained a Commitment
hereunder new Revolving Credit Notes to the order of the assigning Lender in an
amount equal to the Commitment retained by it hereunder. Such new Revolving
Credit Notes shall be in an aggregate principal amount equal to the aggregate
principal amount of such surrendered Revolving Credit Notes, shall be dated the
effective date of such Assignment and Acceptance and shall otherwise be in
substantially the form of Exhibit A-1 hereto.
(d) The Agent shall maintain at its address referred to in Section
8.02 a copy of each Assignment and Acceptance delivered to and accepted by it
and a register for the recordation of the names and addresses of the Lenders and
the Commitment of, and principal amount of the Advances owing to, each Lender
from time to time (the "Register"). The entries in the Register shall be
--------
conclusive and binding for all purposes, absent manifest error, and the
Borrower, the Agent and the Lenders may treat each Person whose name is recorded
in the Register as a Lender hereunder for all purposes of this Agreement. The
Register shall be
available for inspection by the Borrower or any Lender at any reasonable time
and from time to time upon reasonable prior notice.
(e) Each Lender may, with the prior written consent of the Borrower
(such consent not to be unreasonably withheld) sell participations to one or
more banks or other entities (other than the Borrower or any of its Affiliates)
in or to all or a portion of its rights and obligations under this Agreement
(including, without limitation, all or a portion of its Commitment, the Advances
owing to it and the Notes held by it); provided, however, that (i) such Lender's
-------- -------
obligations under this Agreement (including, without limitation, its Commitment
to the Borrower hereunder) shall remain unchanged, (ii) such Lender shall remain
solely responsible to the other parties hereto for the performance of such
obligations, (iii) such Lender shall remain the holder of any such Note for all
purposes of this Agreement, (iv) the Borrower, the 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, (v) no participant
under any such participation shall have any right to approve any amendment or
waiver of any provision of this Agreement or any Note, or any consent to any
departure by the Borrower therefrom, except that a Lender may agree with a
participant as to the manner in which the Lender shall exercise the Lender's
rights to approve any amendment, waiver or consent to the extent that such
amendment, waiver or consent would reduce the principal of, or interest on, the
Notes or any fees or other amounts payable hereunder, in each case to the extent
subject to such participation, or postpone any date fixed for any payment of
principal of, or interest on, the Notes or any fees or other amounts payable
hereunder, in each case to the extent subject to such participation, and (vi)
the minimum amount of such participation shall in no event be less than
$20,000,000 or an integral multiple of $1,000,000 in excess thereof.
(f) Any Lender may at any time, without the consent of the Agent or
the Borrower, create a security interest in all or any portion of its rights
under this Agreement (including, without limitation, the Advances owing to it
and any Note held by it) in favor of any Federal Reserve Bank in accordance with
Regulation A of the Board of Governors of the Federal Reserve System, provided,
--------
however, that no such assignment shall have the effect of increasing the costs
-------
payable by the Borrower.
(g) Any Lender may at any time, without the consent of, but with
notice to the Agent, assign all or part of its rights or obligations under this
Agreement to any Person that, directly or indirectly, controls, is controlled by
or is under common control with such Lender, provided, however, that no such
-------- -------
assignment shall have the effect of increasing the costs payable by the
Borrower.
8. Governing Law. This Agreement and the Notes shall be governed by,
-----------------
and construed in accordance with, the laws of the State of New York.
9. Execution in Counterparts. This Agreement may be executed in any
-----------------------------
number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same agreement. Delivery of an
executed counterpart of a signature page to this
Agreement by telecopier shall be effective as delivery of an original executed
counterpart of this Agreement.
10. Jurisdiction, Etc. (a) Each of the parties hereto hereby
-----------------------
irrevocably and unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of any New York State court or federal court of the
United States of America sitting in New York City, and any appellate court from
any thereof, in any action or proceeding arising out of or relating to this
Agreement or the Notes, 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 any such New York State court 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 party may
otherwise have to bring any action or proceeding relating to this Agreement or
the Notes in the courts of any jurisdiction.
(b) Each of the parties hereto irrevocably and unconditionally
waives, to the fullest extent it may legally and effectively do so, any
objection that it may now or hereafter have to the laying of venue of any suit,
action or proceeding arising out of or relating to this Agreement or the Notes
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.
.11. Waiver of Jury Trial. Each of the Borrower, the Agent and the
Lenders hereby irrevocably waives all right to trial by jury in any action,
proceeding or counterclaim (whether based on contract, tort or otherwise)
arising out of or relating to this Agreement or the Notes or the actions of the
Agent or any Lender in the negotiation, administration, performance or
enforcement thereof.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed by their respective officers thereunto duly authorized, as of the
date first above written.
GENUITY INC.
By /s/ X. X. Xxxxxx
---------------------------------
Title: Vice President and Treasurer
THE CHASE MANHATTAN BANK
as Administrative Agent
By /s/ Xxxxxxxxx X. Xxxxxxx
---------------------------------
Title: Vice President
The Agents
----------
Commitment
----------
$300,000,000 THE CHASE MANHATTAN BANK
By /s/ Xxxxxxxxx X. Xxxxxxx
---------------------------------
Title: Vice President
$300,000,000 CITICORP USA, INC.
By /s/ Xxxxxxx Xxxxxxx
---------------------------------
Title: Vice President
$300,000,000 CREDIT SUISSE FIRST BOSTON
By /s/ Xxxxxx Xxxx
---------------------------------
Title: Vice President
$300,000,000 DEUTSCHE BANK AG, NEW YORK
AND/OR CAYMAN ISLANDS
BRANCHES
By /s/ Deutsche Bank AG, New York
and/or Cayman Islands Branches
---------------------------------
Title:
By /s/ Deutsche Bank AG, New York
and/or Cayman Islands Branches
---------------------------------
Title:
$200,000,000 BNP PARIBAS
By /s/ Xxxxx X. Xxxxxx
---------------------------------
Title: Vice President
$200,000,000 XXXXXX GUARANTY TRUST
COMPANY OF NEW YORK
By /s/ Xxxxxx Xxxxxxx
---------------------------------
Title: Associate
$100,000,000 THE BANK OF NEW YORK
By /s/ The Bank of New York
---------------------------------
Title:
$100,000,000 THE INDUSTRIAL BANK OF JAPAN
By /s/ Xxxxxxx Xxxxxxx
---------------------------------
Title: Senior Vice President
$100,000,000 TORONTO DOMINION (TEXAS) INC.
By /s/ Xxxx Xxxxxx
---------------------------------
Title: Vice President
$100,000,000 WACHOVIA BANK, N.A.
By /s/ Wachovia Bank, N.A.
---------------------------------
Title:
SCHEDULE I
APPLICABLE LENDING OFFICES
Name of Lender Domestic Lending Office Eurodollar Lending Office
-------------- ----------------------- -------------------------
The Bank of Xxx Xxxx Xxx Xxxx Xxxxxx Xxx Xxxx Xxxxxx
Xxx Xxxx, XX 00000 Xxx Xxxx, XX 00000
Attn: Xxxx Xxxxxxx Attn: Xxxx Xxxxxxx
T: 000 000-0000 T: 000 000-0000
F: 000 000-0000 F: 000 000-0000
BNP Paribas 000 Xxxxxxx Xxxxxx, 0/xx/ Xxxxx 000 Xxxxxxx Xxxxxx, 0/xx/ Xxxxx
Xxx Xxxx, XX 00000 Xxx Xxxx, XX 00000
Attn: Xxxxx Xxxxxx Attn: Xxxxx Xxxxxx
T: 000 000-0000 T: 000 000-0000
F: 000 000-0000 F: 000 000-0000
The Chase Xxxxxxxxx Xxxx 000 Xxxx Xxxxxx 000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000 Xxx Xxxx, XX 00000
Attn: Xxxxxxxxx Xxxxxxx Attn: Xxxxxxxxx Xxxxxxx
T: 000 000-0000 T: 000 000-0000
F: 000 000-0000 F: 000 000-0000
Citicorp USA, Inc. 000 Xxxx Xxxxxx 000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000 Xxx Xxxx, XX 00000
Attn: Xxxxxx Xxxxx Attn: Xxxxxx Xxxxx
T: 212 559-3094 T: 212 559-3094
F: 000 000-0000 F: 000 000-0000
Credit Suisse First Boston Eleven Madison Avenue Eleven Madison Avenue
New York, NY New York, NY
Attn: Xxxxxx Xxxx Attn: Xxxxxx Xxxx
T: 000 000-0000 T: 000 000-0000
F: 000 000-0000 F: 000 000-0000
Deutsche Bank AG, New York 31 West 52/nd/ Xxxxxx 00 Xxxx 00/xx/ Xxxxxx
and/or Xxxxxx Xxxxxxx Xxxxxxxx Xxx Xxxx, XX 00000 Xxx Xxxx, XX 00000
Attn: Xxxxx xx Xxxxxxxxxxxx Attn: Xxxxx xx Xxxxxxxxxxxx
T: 000 000-0000 T: 000 000-0000
F: 000 000-0000 F: 000 000-0000
Xxx Xxxxxxxxxx Xxxx xx Xxxxx 0000 Xxxxxx of the Americas 0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx 00000 New York 10020
Attn: Xxxxxxxx Xxxxxxxxxx Attn: Xxxxxxxx Xxxxxxxxxx
T: 000 000-0000 T: 000 000-0000
F: 000 000-0000 F: 000 000-0000
Xxxxxx Guaranty Trust 00 Xxxx Xxxxxx 00 Xxxx Xxxxxx
Company of Xxx Xxxx Xxx Xxxx, XX 00000 Xxx Xxxx, XX 00000
Attn: Xxxxxx Xxxxxxx Attn: Xxxxxx Xxxxxxx
T: 000 000-0000 T: 000 000-0000
F: 000 000-0000 F: 000 000-0000
Toronto Dominion (Texas), Inc. 000 Xxxxxx, Xxxxx 0000 909 Xxxxxx, Suite 1700
Houston, TX 77010 Xxxxxxx, XX 00000
Attn: Xxxx Xxxxxx Attn: Xxxx Xxxxxx
T: 000 000-0000 T: 000 000-0000
F: 000 000-0000 F: 000 000-0000
Wachovia Bank, N.A. 000 Xxxxxxxxx Xxxxxx, X.X. 000 Xxxxxxxxx Xxxxxx, X.X.
Xxxxxxx, XX 00000 Xxxxxxx, XX 00000
Attn: Xxxx Xxxxxxx Attn: Xxxx Xxxxxxx
T: 000 000-0000 T: 000 000-0000
F: 000 000-0000 F: 000 000-0000
EXHIBIT A-1 - FORM OF
REVOLVING CREDIT
PROMISSORY NOTE
U.S.$_______________ Dated: _________, 200_
FOR VALUE RECEIVED, the undersigned, GENUITY INC., a Delaware
corporation (the "Borrower"), HEREBY PROMISES TO PAY to the order of
--------
_________________________ (the "Lender") for the account of its Applicable
------
Lending Office on the Termination Date (each as defined in the Credit Agreement
referred to below) the principal sum of U.S.$[amount of the Lender's Commitment
in figures] or, if less, the aggregate principal amount of the Revolving Credit
Advances made by the Lender to the Borrower pursuant to the Credit Agreement
dated as of [August 30], 2000, as amended or modified from time to time (the
"Credit Agreement") among the Borrower, the Lender and certain other lenders
----------------
parties thereto, The Chase Manhattan Bank ("Chase"), as Agent for the Lender and
-----
such other lenders, Chase Securities, Inc., as arranger, Citibank, N.A., as
syndication agent, and Credit Suisse First Boston and Deutsche Bank AG, New York
and/or Cayman Islands Branches, as co-documentation agents, outstanding on the
Termination Date. Terms defined in the Credit Agreement and not otherwise
defined herein are used herein with the meanings so defined.
The Borrower promises to pay interest on the unpaid principal amount
of each Revolving Credit Advance from the date of such Advance until such
principal amount is paid in full, at such interest rates, and payable at such
times, as are specified in the Credit Agreement.
Both principal and interest are payable in lawful money of the United
States of America to Chase, as Agent, at 000 Xxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx
00000, in same day funds. Each Revolving Credit Advance owing to the Lender by
the Borrower pursuant to the Credit Agreement, and all payments made on account
of principal thereof, shall be recorded by the Lender and, prior to any transfer
hereof, endorsed on the grid attached hereto which is part of this Promissory
Note.
This Promissory Note is one of the Revolving Credit Notes referred to
in, and is entitled to the benefits of, the Credit Agreement. The Credit
Agreement, among other things, (i) provides for the making of Revolving Credit
Advances by the Lender to the Borrower from time to time in an aggregate amount
not to exceed at any time outstanding the U.S. dollar amount first above
mentioned, the indebtedness of the Borrower resulting from each such Advance
being evidenced by this Promissory Note, and (ii) contains provisions for
acceleration of the maturity hereof upon the happening of certain stated events
and also for prepayments on account of principal hereof prior to the maturity
hereof upon the terms and conditions therein specified.
GENUITY INC.
By__________________________
Title:
ADVANCES AND PAYMENTS OF PRINCIPAL
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Amount of
Date Amount of Principal Paid Unpaid Principal Notation
Advance or Prepaid Balance Made By
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EXHIBIT A-2 - FORM OF
COMPETITIVE BID
PROMISSORY NOTE
U.S.$_______________ Dated: _______________, 200_
FOR VALUE RECEIVED, the undersigned, GENUITY INC., a Delaware
corporation (the "Borrower"), HEREBY PROMISES TO PAY to the order of
--------
_________________________ (the "Lender") for the account of its Applicable
------
Lending Office (as defined in the Credit Agreement dated as of [August 30],
2000, as amended or modified from time to time (the "Credit Agreement") among
----------------
the Borrower, the Lender and certain other lenders parties thereto, The Chase
Manhattan Bank ("Chase"), as Agent for the Lender and such other lenders, Chase
------
Securities, Inc., as arranger, Citibank, N.A., as syndication agent, and Credit
Suisse First Boston and Deutsche Bank AG, New York and/or Cayman Islands
Branches, as co-documentation agents, on _______________, 200_, the principal
amount of U.S.$_______________. Terms defined in the Credit Agreement and not
otherwise defined herein are used herein with the meanings so defined.
The Borrower promises to pay interest on the unpaid principal amount
hereof from the date hereof until such principal amount is paid in full, at the
interest rate and payable on the interest payment date or dates provided below:
Interest Rate: _____% per annum (calculated on the basis of a year of _____
days for the actual number of days elapsed).
Interest Payment Date(s):________________.
Both principal and interest are payable in lawful money of the United
States of America to Chase for the account of the Lender at the office of
Chase, at 000 Xxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Account No.
________________ Attention: ________________________, in same day funds.
This Promissory Note is one of the Competitive Bid Notes referred to
in, and is entitled to the benefits of, the Credit Agreement. The Credit
Agreement, among other things, contains provisions for acceleration of the
maturity hereof upon the happening of certain stated events.
The Borrower hereby waives presentment, demand, protest and notice of
any kind. No failure to exercise, and no delay in exercising, any rights
hereunder on the part of the holder hereof shall operate as a waiver of such
rights.
This Promissory Note shall be governed by, and construed in accordance
with, the laws of the State of New York.
GENUITY INC.
By___________________________
Title:
EXHIBIT B-1 - FORM OF NOTICE OF
REVOLVING CREDIT BORROWING
The Chase Manhattan Bank, as Agent
for the Lenders parties
to the Credit Agreement
referred to below
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
[Date]
Attention: _______________
Ladies and Gentlemen:
The undersigned, Genuity Inc., refers to the Credit Agreement, dated
as of [August 30], 2000 (as amended or modified from time to time, the "Credit
------
Agreement"), among the undersigned, certain Lenders parties thereto, The Chase
---------
Manhattan Bank ("Chase"), as Agent for said Lenders, Chase Securities, Inc., as
------
arranger, Citibank, N.A., as syndication agent, and Credit Suisse First Boston
and Deutsche Bank AG, New York and/or Cayman Islands Branches, as co-
documentation agents. Terms defined in the Credit Agreement and not otherwise
defined herein are used herein with the meanings so defined. Pursuant to
Section 2.02 of the Credit Agreement, the undersigned hereby gives you notice,
irrevocably, that the undersigned hereby requests a Revolving Credit Borrowing
under the Credit Agreement, and in that connection sets forth below the
information relating to such Revolving Credit Borrowing (the "Proposed Revolving
------------------
Credit Borrowing") as required by Section 2.02(a) of the Credit Agreement:
----------------
(i) The Business Day of the Proposed Revolving Credit Borrowing is
_______________, 200_.
(ii) The Type of Advances comprising the Proposed Revolving Credit
Borrowing is [Base Rate Advances] [Eurodollar Rate Advances].
(iii) The aggregate amount of the Proposed Revolving Credit Borrowing is
$_______________.
[(iv) The initial Interest Period for each Eurodollar Rate Advance made as
part of the Proposed Revolving Credit Borrowing is _____ month[s].]
The undersigned hereby certifies that the following statements are
true on the date hereof, and will be true on the date of the Proposed Revolving
Credit Borrowing:
(A) the representations and warranties contained in Section 4.01 of the
Credit Agreement and in each Guaranty are correct, before and after giving
effect to the Proposed Revolving Credit Borrowing and to the application of
the proceeds therefrom, as though
made on and as of such date (except to the extent that any such representation
or warranty relates to a specific earlier date); and
(B) no event has occurred and is continuing, or would result from such
Proposed Revolving Credit Borrowing or from the application of the proceeds
therefrom, that constitutes a Default.
Very truly yours,
GENUITY INC.
By________________________________
Title:
EXHIBIT B-2 - FORM OF NOTICE OF
COMPETITIVE BID BORROWING
The Chase Manhattan Bank, as Agent
for the Lenders parties
to the Credit Agreement
referred to below
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
[Date]
Attention: _______________
Ladies and Gentlemen:
The undersigned, Genuity Inc., refers to the Credit Agreement, dated
as of [August 30], 2000 (as amended or modified from time to time, the "Credit
------
Agreement"), among the undersigned, certain Lenders parties thereto, The Chase
---------
Manhattan Bank ("Chase"), as Agent for said Lenders, Chase Securities, Inc., as
arranger, Citibank, N.A., as syndication agent, and Credit Suisse First Boston
and Deutsche Bank AG, New York and/or Cayman Islands Branches, as co-
documentation agents. Terms defined in the Credit Agreement and not otherwise
defined herein are used herein with the meanings so defined. Pursuant to
Section 2.03 of the Credit Agreement, the undersigned hereby gives you notice,
irrevocably, that the undersigned hereby requests a Competitive Bid Borrowing
under the Credit Agreement, and in that connection sets forth the terms on which
such Competitive Bid Borrowing (the "Proposed Competitive Bid Borrowing") is
----------------------------------
requested to be made:
(A) Date of Competitive Bid Borrowing ________________________
(B) Amount of Competitive Bid Borrowing ________________________
(C) [Maturity Date] [Interest Period] ________________________
(D) Interest Rate Basis ________________________
(E) Interest Payment Date(s) ________________________
(F) ___________________ ________________________
(G) ___________________ ________________________
(H) ___________________ ________________________
The undersigned hereby certifies that the following statements are
true on the date hereof, and will be true on the date of the Proposed
Competitive Bid Borrowing:
(a) the representations and warranties contained in Section 4.01 of the
Credit Agreement and in each Guaranty are correct, before and after giving
effect to the Proposed Competitive Bid Borrowing and to the application of the
proceeds therefrom, as though made on and as of such date (except to the
extent that any such representation or warranty relates to
a specific earlier date);
(b) no event has occurred and is continuing, or would result from the
Proposed Competitive Bid Borrowing or from the application of the proceeds
therefrom, that constitutes a Default; and
(c) no event has occurred and no circumstance exists as a result of which
the information concerning the undersigned that has been provided to the Agent
and each Lender by the undersigned in connection with the Credit Agreement
would include an untrue statement of a material fact or omit to state any
material fact or any fact necessary to make the statements contained therein,
in the light of the circumstances under which they were made, not misleading.
Subject to the undersigned's right to cancel the Proposed Competitive
Bid Borrowing in accordance with Section 2.03(a)(iii) of the Credit Agreement,
the undersigned hereby confirms that, if accepted by the undersigned in
accordance with Section 2.03(a)(iii) of the Credit Agreement, the Proposed
Competitive Bid Borrowing is to be made available to it in accordance with
Section 2.03(a)(v) of the Credit Agreement.
Very truly yours,
GENUITY INC.
By_________________________________
Title:
EXHIBIT C - FORM OF
ASSIGNMENT AND ACCEPTANCE
Reference is made to the Credit Agreement dated as of [August 30],
2000, as amended or modified from time to time (the "Credit Agreement"), among
----------------
Genuity Inc. (the "Borrower"), the Lenders (as defined in the Credit Agreement),
--------
The Chase Manhattan Bank, as agent for the Lenders (the "Agent"), Chase
-----
Securities, Inc., as arranger, Citibank, N.A., as syndication agent, and Credit
Suisse First Boston and Deutsche Bank AG, New York and/or Cayman Islands
Branches, as co-documentation agents. Terms defined in the Credit Agreement and
not otherwise defined herein are used herein with the meaning so defined.
The "Assignor" and the "Assignee" referred to on Schedule I hereto
agree as follows:
1. The Assignor hereby sells and assigns to the Assignee, and the
Assignee hereby purchases and assumes from the Assignor, an interest in and to
the Assignor's rights and obligations under the Credit Agreement as of the date
hereof (other than in respect of Competitive Bid Advances and Competitive Bid
Notes) equal to the percentage interest specified on Schedule 1 hereto of all
outstanding rights and obligations under the Credit Agreement (other than in
respect of Competitive Bid Advances and Competitive Bid Notes). After giving
effect to such sale and assignment, the Assignee's Commitment and the amount of
the Revolving Credit Advances owing to the Assignee will be as set forth on
Schedule 1 hereto.
2. The Assignor (i) represents and warrants that it is the legal and
beneficial owner of the interest being assigned by it hereunder and that such
interest is free and clear of any adverse claim; (ii) makes no representation or
warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with the Credit Agreement
or the execution, legality, validity, enforceability, genuineness, sufficiency
or value of the Credit Agreement or any other instrument or document furnished
pursuant thereto; (iii) makes no representation or warranty and assumes no
responsibility with respect to the financial condition of the Borrower or the
performance or observance by the Borrower of any of its obligations under the
Credit Agreement or any other instrument or document furnished pursuant thereto;
and (iv) attaches the Revolving Credit Notes held by the Assignor and requests
that the Agent exchange such Revolving Credit Notes for new Revolving Credit
Notes payable to the order of the Assignee in an amount equal to the Commitment
assumed by the Assignee pursuant hereto and, if applicable, the Assignor in an
amount equal to the Commitment retained by the Assignor under the Credit
Agreement, in each case, as specified on Schedule 1 hereto.
3. The Assignee (i) confirms that it has received a copy of the
Credit Agreement, together with copies of the financial statements referred to
in Section 4.01(e) thereof or the most recent financial statements required to
be delivered pursuant to Section 5.01(i)(ii) and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assignment and Acceptance; (ii) agrees that it will,
independently and without reliance upon the Agent, the Assignor 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
the Credit Agreement; (iii) confirms that it is an Eligible Assignee; (iv)
appoints and authorizes the Agent to take such action as agent on its behalf and
to exercise such powers and discretion under the Credit Agreement as are
delegated to the Agent by the terms thereof, together with such powers and
discretion as are reasonably incidental thereto; (v) agrees that it will perform
in accordance with their terms all of the obligations that by the terms of the
Credit Agreement are required to be performed by it as a Lender; and (vi)
attaches any U.S. Internal Revenue Service forms required under Section 2.14 of
the Credit Agreement.
4. Following the execution of this Assignment and Acceptance, it
will be delivered to the Agent for acceptance and recording by the Agent. The
effective date for this Assignment and Acceptance (the "Effective Date") shall
--------------
be the date of acceptance hereof by the Agent, unless otherwise specified on
Schedule 1 hereto.
5. Upon such acceptance and recording by the Agent, as of the
Effective Date, (i) the Assignee shall be a party to the Credit Agreement and,
to the extent provided in this Assignment and Acceptance, have the rights and
obligations of a Lender thereunder and (ii) the Assignor shall, to the extent
provided in this Assignment and Acceptance, relinquish its rights, other than
rights of indemnification under Section 8.04 of the Credit Agreement or
otherwise relating to a time prior to the Effective Date, and be released from
its obligations under the Credit Agreement.
6. Upon such acceptance and recording by the Agent, from and after
the Effective Date, the Agent shall make all payments under the Credit Agreement
and the Revolving Credit Notes in respect of the interest assigned hereby
(including, without limitation, all payments of principal, interest and facility
fees with respect thereto) to the Assignee. The Assignor and Assignee shall
make all appropriate adjustments in payments under the Credit Agreement and the
Revolving Credit Notes for periods prior to the Effective Date directly between
themselves.
7. This Assignment and Acceptance shall be governed by, and
construed in accordance with, the laws of the State of New York.
8. This Assignment and Acceptance may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement. Delivery of an executed
counterpart of Schedule 1 to this Assignment and Acceptance by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment
and Acceptance.
IN WITNESS WHEREOF, the Assignor and the Assignee have caused Schedule
1 to this Assignment and Acceptance to be executed by their officers thereunto
duly authorized as of the date specified thereon.
Schedule 1
to
Assignment and Acceptance
Percentage interest assigned: _____%
Assignee's Commitment: $__________
Aggregate outstanding principal amount of
Revolving Credit Advances assigned: $__________
Principal amount of Revolving Credit Note payable to Assignee: $__________
Principal amount of Revolving Credit Note payable to Assignor: $__________
Effective Date1: _______________, 200_
[NAME OF ASSIGNOR], as Assignor
By________________________________
Title:
Dated: _______________, 200_
[NAME OF ASSIGNEE], as Assignee
By________________________________
Title:
Dated: _______________, 200_
Domestic Lending Office:
[Address]
Eurodollar Lending Office:
[Address]
Accepted this
__________ day of _______________, 200_
________________________
1 This date should be no earlier than five Business Days after the delivery of
this Assignment and Acceptance to the Agent.
The Chase Manhattan Bank, as Agent
By__________________________________
Title:
Approved this __________ day
of _______________, 200_
GENUITY INC.
By__________________________________
Title:
EXHIBIT D-FORM OF
ASSUMPTION AGREEMENT
Dated:________
[Borrower]
[Borrower's Address]
Attention: Treasurer
The Chase Manhattan Bank, as Agent
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention:
Ladies and Gentlemen:
Reference is made to the Credit Agreement dated as of [August 30],
2000, as amended or modified from time to time (the "Credit Agreement"), among
----------------
Genuity Inc. (the "Borrower"), the Lenders parties thereto, The Chase Manhattan
--------
Bank, as Agent, Chase Securities, Inc., as arranger, Citibank, N.A., as
syndication agent, and Credit Suisse First Boston and Deutsche Bank AG, New York
and/or Cayman Islands Branches, as co-documentation agents. Terms defined in
the Credit Agreement and not otherwise defined herein are used herein with the
meanings so defined.
The undersigned (the "Assuming Lender") proposes to become an Assuming
---------------
Lender pursuant to Section 2.05(b) of the Credit Agreement and, in that
connection, hereby agrees that it shall become a Lender for purposes of the
Credit Agreement on [applicable Increase Date] and that its Commitment shall as
of such date be $__________.
The undersigned (i) confirms that it has received a copy of the Credit
Agreement, together with copies of the financial statements referred to in
Section 4.01(e) thereof or the most recent financial statements required to be
delivered pursuant to Section 5.01(i)(ii) thereof and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assumption Agreement; (ii) agrees that it will,
independently and without reliance upon the Agent or any other Lender and based
on such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
the Credit Agreement; (iii) appoints and authorizes the Agent to take such
action as agent on its behalf and to exercise such powers under the Credit
Agreement as are delegated to the Agent by the terms thereof, together with such
powers as are reasonably incidental thereto; (iv) agrees that it will perform in
accordance with their terms all of the obligations which by the terms of the
Credit Agreement are required to be
performed by it as a Lender; (v) confirms that it is an Eligible Assignee; (vi)
specifies as its Lending Office (and address for notices) the offices set forth
beneath its name on the signature pages hereof; and (vii) attaches the forms
prescribed by the Internal Revenue Service of the United States required under
Section 2.14 of the Credit Agreement.
The Assuming Lender requests that the Company deliver to the Agent (to
be promptly delivered to the Assuming Lender) Revolving Credit Notes payable to
the order of the Assuming Lender, dated as of the [Increase Date] and
substantially in the form of Exhibit A-1 to the Credit Agreement.
The effective date for this Assumption Agreement shall be [applicable
Increase Date]. Upon delivery of this Assumption Agreement to the Company and
the Agent, and satisfaction of all conditions imposed under Section 2.05(b) as
of [date specified above], the undersigned shall be a party to the Credit
Agreement and have the rights and obligations of a Lender thereunder. As of
[date specified above], the Agent shall make all payments under the Credit
Agreement in respect of the interest assumed hereby (including, without
limitation, all payments of principal, interest and commitment fees) to the
Assuming Lender.
This Assumption Agreement may be executed in counterparts and by
different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement. Delivery of an executed counterpart by
telecopier shall be effective as delivery of a manually executed counterpart of
this Assumption Agreement.
This Assumption Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York.
Very truly yours,
[NAME OF ASSUMING LENDER]
By________________________
Name:
Title:
Domestic Lending Office
(and address for notices):
[Address]
Eurodollar Lending Office:
[Address]
[NAME OF ASSIGNOR]
By________________________
Name:
Title:
[Address]
Above Acknowledged and Agreed to:
GENUITY INC.
By______________________
Name:
Title:
EXHIBIT E - FORM OF
OPINION OF COUNSEL
FOR THE BORROWER
[Effective Date]
To each of the Lenders parties
to the Credit Agreement referred
to below and The Chase Manhattan Bank,
as Agent for such Lenders
Genuity Inc.
------------
Ladies and Gentlemen:
This opinion is furnished to you pursuant to Section 3.01(g)(iv) of
the Credit Agreement, dated as of [August 30], 2000 (the "Credit Agreement"),
among Genuity Inc. (the "Borrower"), the Lenders parties thereto, The Chase
Manhattan Bank, as Agent for such Lenders, Chase Securities, Inc., as arranger,
Citibank, N.A., as syndication agent, and Credit Suisse First Boston and
Deutsche Bank AG, New York and/or Cayman Islands Branches, as co-documentation
agents. Terms defined in the Credit Agreement and not otherwise defined herein
are used herein with the meanings so defined.
I am Counsel for the Borrower and I have acted as counsel for the
Borrower in connection with the preparation, execution and delivery of the
Credit Agreement.
In that connection, I, or attorneys under my direction, have examined:
(a) The Credit Agreement;
(b) The documents furnished by the Borrower pursuant to Section 3.01
of the Credit Agreement;
(c) The Articles of Incorporation of the Borrower (the "Charter");
(d) The by-laws of the Borrower (the "By-laws"); and
(e) a certificate of the Secretary of State of Delaware, dated
__________ __, 2000, attesting to the continued corporate existence and good
standing of the Borrower in that State;
In addition, I, or attorneys under my direction, have examined the originals, or
copies certified to my satisfaction, of such other corporate records of the
Borrower, certificates of public officials and of officers of the Borrower, and
agreements, instruments and other documents, as I have deemed necessary as a
basis for the opinions expressed below. As to questions of fact material to such
opinions, I have, when relevant facts were not independently established by me,
relied upon certificates of the Borrower or its officers or of public officials.
I have assumed the due execution and delivery, pursuant to due authorization, of
the Credit Agreement by the Initial Lenders and the Agent.
My opinions expressed below are limited to the law of The Commonwealth
of Massachusetts and the Federal law of the United States.
Based upon the foregoing and upon such investigation as I have deemed
necessary, I am of the following opinion:
1. The Borrower is a corporation duly organized, validly existing
and in good standing under the laws of the State of Delaware.
2. The execution, delivery and performance by the Borrower of the
Credit Agreement and the Notes, and the consummation of the transactions
contemplated thereby, are within the Borrower's corporate powers, have been
duly authorized by all necessary corporate action, and do not contravene (a)
the Charter or the By-laws, (b) any law, rule or regulation applicable to the
Borrower or (c) to the best of my knowledge, after due inquiry, any material
contractual or material legal restriction contained in any document to which
the Borrower is a party or which relates to or affects the property of the
Borrower. The Credit Agreement and the Notes have been duly executed and
delivered on behalf of the Borrower.
3. No authorization, approval or other action by, and no notice to
or filing with, any governmental authority or regulatory body or, to the best
of my knowledge after due inquiry, any other third party is required for the
due execution, delivery and performance by the Borrower of the Credit Agreement
and the Notes.
4. In any action or proceeding arising out of or relating to the
Credit Agreement or the Notes in any court of The Commonwealth of Massachusetts
or in any Federal court sitting in The Commonwealth of Massachusetts, such
court would recognize and give effect to the provisions of Section 8.08 of the
Credit Agreement wherein the parties thereto agree that the Credit Agreement
and the Notes shall be governed by, and construed in accordance with, the laws
of the State of New York. Without limiting the generality of the foregoing, a
court of The Commonwealth of Massachusetts or a Federal court sitting in The
Commonwealth of Massachusetts would apply the usury law of the State of New
York, and would not apply the usury law of The Commonwealth of Massachusetts,
to the Credit Agreement and the Notes. However, if a court of The Commonwealth
of Massachusetts or a Federal court sitting in The Commonwealth of
Massachusetts were to hold that the Credit Agreement and the Notes are governed
by, and to be construed in accordance with, the laws of The Commonwealth of
Massachusetts, assuming the due execution and delivery of the Credit
Agreement by the Agent and the Initial Lenders, the Credit Agreement and the
Notes would be, under the laws of The Commonwealth of Massachusetts, legal,
valid and binding obligations of the Borrower enforceable against the Borrower
in accordance with their respective terms.
5. To the best of my knowledge, there are no pending or overtly
threatened actions or proceedings against the Borrower or any of its Material
Subsidiaries before any court, governmental agency or arbitrator that purport
to affect the legality, validity, binding effect or enforceability of the
Credit Agreement or any of the Notes or the consummation of the transactions
contemplated thereby or that are likely to have a Material Adverse Effect.
The opinions set forth above are subject to the following
qualifications:
(a) My opinion in the last sentence of paragraph 4 above as to
enforceability is subject to the effect of any applicable bankruptcy,
insolvency (including, without limitation, all laws relating to fraudulent
transfers), reorganization, moratorium or similar law affecting creditors'
rights generally.
(b) My opinion in the last sentence of paragraph 4 above as to
enforceability is subject to the effect of general principles of equity,
including, without limitation, concepts of materiality, reasonableness, good
faith and fair dealing (regardless of whether considered in a proceeding in
equity or at law).
(c) I express no opinion as to (i) Section 2.15 of the Credit
Agreement insofar as it provides that any Lender purchasing a participation
from another Lender pursuant thereto may exercise set-off or similar rights
with respect to such participation, (ii) the enforceability of the
indemnification provisions set forth in Section 8.04 of the Credit Agreement to
the extent enforcement thereof is contrary to public policy regarding the
exculpation of criminal violations, intentional harm and acts of gross
negligence or recklessness and (iii) the effect of the law of any jurisdiction
other than The Commonwealth of Massachusetts wherein any Lender may be located
or wherein enforcement of the Credit Agreement or the Notes may be sought that
limits the rates of interest legally chargeable or collectible.
A copy of this opinion letter may be delivered by any Lender to any
Person that becomes a Lender after the date hereof in accordance with the
provisions of the Credit Agreement. Any such new Lender may rely on the
opinions expressed above as if this opinion letter were addressed and delivered
to such Lender on the date hereof.
This opinion letter speaks only as of the date hereof. I expressly
disclaim any responsibility to advise the Agent or any Lender who is permitted
to rely on the opinions expressed herein of any development or circumstance of
any kind, including, without limitation, any change of law or fact that may
occur after the date of this opinion letter, even though such development,
circumstance or change may affect the legal analysis, a legal conclusion or any
other matter set forth in or relating to this opinion letter. Accordingly, the
Agent and each
Lender relying on this opinion letter at any time should seek
advice of its counsel as to the proper application of this opinion letter at
such time.
Very truly yours,
