Execution Copy
EXHIBIT 99-11
364-DAY
CREDIT AGREEMENT
Dated as of October 24, 2003
Among
MICHIGAN CONSOLIDATED GAS COMPANY,
as Borrower
and
THE INITIAL LENDERS NAMED HEREIN,
as Initial Lenders
and
BANK ONE, NA
(MAIN OFFICE - CHICAGO),
as Administrative Agent
and
BARCLAYS BANK PLC, CITIGROUP GLOBAL MARKETS INC.,
as Co-Syndication Agent as Co-Syndication Agent
and
COMERICA BANK BNP PARIBAS
as Co-Documentation Agent as Co-Documentation Agent
BANC ONE CAPITAL MARKETS, INC. BARCLAYS CAPITAL
as Co-Lead Arrangers and Joint Book Runners
================================================================================
TABLE OF CONTENTS
Page
ARTICLE I: DEFINITIONS AND ACCOUNTING TERMS........................................... 1
SECTION 1.01. Certain Defined Terms............................................... 1
SECTION 1.02. Computation of Time Periods......................................... 12
SECTION 1.03. Accounting Terms.................................................... 12
ARTICLE II: AMOUNTS AND TERMS OF THE REVOLVING CREDIT ADVANCES........................ 12
SECTION 2.01. The Revolving Credit Advances....................................... 12
SECTION 2.02. Making the Revolving Credit Advances................................ 13
SECTION 2.03. Fees................................................................ 14
SECTION 2.04. Termination or Reduction of the Commitments......................... 14
SECTION 2.05. Repayment of Revolving Credit Advances.............................. 15
SECTION 2.06. Interest on Revolving Credit Advances............................... 15
SECTION 2.07. Interest Rate Determination......................................... 15
SECTION 2.08. Optional Conversion of Revolving Credit Advances.................... 16
SECTION 2.09. Prepayments of Revolving Credit Advances............................ 17
SECTION 2.10. Increased Costs..................................................... 17
SECTION 2.11. Illegality.......................................................... 18
SECTION 2.12. Payments and Computations........................................... 18
SECTION 2.13. Taxes............................................................... 20
SECTION 2.14. Sharing of Payments, Etc............................................ 21
SECTION 2.15. Use of Proceeds..................................................... 22
SECTION 2.16. Extensions of Revolver Termination Date............................. 22
SECTION 2.17. Noteless Agreement; Evidence of Indebtedness........................ 23
ARTICLE III: CONDITIONS TO EFFECTIVENESS AND LENDING.................................. 24
SECTION 3.01. Conditions Precedent to Effectiveness of Section 2.01............... 24
SECTION 3.02. Conditions Precedent to Each Borrowing.............................. 25
SECTION 3.03. Determinations Under Section 3.01................................... 26
ARTICLE IV: REPRESENTATIONS AND WARRANTIES............................................ 26
SECTION 4.01. Representations and Warranties of the Borrower...................... 26
ARTICLE V: COVENANTS OF THE BORROWER.................................................. 28
SECTION 5.01. Affirmative Covenants............................................... 28
SECTION 5.02. Negative Covenants.................................................. 30
ARTICLE VI: EVENTS OF DEFAULT......................................................... 32
SECTION 6.01. Events of Default................................................... 32
ARTICLE VII: THE AGENT................................................................ 34
SECTION 7.01. Authorization and Action............................................ 34
SECTION 7.02. Agent's Reliance, Etc............................................... 34
SECTION 7.03. Bank One and Affiliates............................................. 35
SECTION 7.04. Lender Credit Decision.............................................. 35
SECTION 7.05. Indemnification..................................................... 35
SECTION 7.06. Successor Agent..................................................... 36
ARTICLE VIII: MISCELLANEOUS........................................................... 36
SECTION 8.01. Amendments, Etc..................................................... 36
SECTION 8.02. Notices, Etc........................................................ 37
SECTION 8.03. No Waiver; Remedies................................................. 37
SECTION 8.04. Costs and Expenses.................................................. 37
SECTION 8.05. Right of Set-off.................................................... 38
SECTION 8.06. Binding Effect...................................................... 39
SECTION 8.07. Assignments, Designations and Participations........................ 39
ii
SECTION 8.08. Confidentiality..................................................... 43
SECTION 8.09. Governing Law....................................................... 43
SECTION 8.10. Execution in Counterparts........................................... 43
SECTION 8.11. Jurisdiction, Etc................................................... 43
SECTION 8.12. Waiver of Jury Trial................................................ 44
iii
SCHEDULES AND EXHIBITS
Schedules
Schedule I - List of Applicable Lending Offices
Pricing Schedule
Exhibits
Exhibit A - Form of Note (If Requested)
Exhibit B - Form of Notice of Borrowing
Exhibit C - Form of Assignment and Acceptance
Exhibit D - Form of Certificate by Borrower
Exhibit E - Form of Opinion of Counsel to the Borrower
Exhibit F - Form of Compliance Certificate
iv
364-DAY CREDIT AGREEMENT dated as of October 24, 2003 among
MICHIGAN CONSOLIDATED GAS COMPANY, a Michigan corporation (the "Borrower"), the
banks, financial institutions and other institutional lenders (the "Initial
Lenders") listed on the signature pages hereof, and BANK ONE, NA (Main Office -
Chicago) ("Bank One"), as Administrative Agent (the "Agent") and BARCLAYS BANK
PLC, as Co-Syndication Agent, and CITIGROUP GLOBAL MARKETS INC., as
Co-Syndication Agent for the Lenders (as hereinafter defined).
PRELIMINARY STATEMENTS
The Borrower has requested that the Initial Lenders enter into
this Agreement, and the Initial Lenders have indicated their willingness to
enter into this Agreement upon the terms and conditions stated herein.
NOW, THEREFORE, in consideration of the premises and the
mutual covenants and agreements contained herein, the parties hereto hereby
agree, subject to the satisfaction of the conditions set forth in Article III,
as follows
ARTICLE I:
DEFINITIONS AND ACCOUNTING TERMS
SECTION 1.01. Certain Defined Terms. As used in this Agreement, the
following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):
"Affiliate" means, as to any Person, any other Person that,
directly 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 Agent at Bank One with its office at Xxx Xxxx Xxx Xxxxx, Xxxxx
0000, Xxxxxxx, XX 00000, Account No. 4811-5286-0000, Attention: Xxxxxx
Xxxxxxxxxxxx.
"Agents" means the Agent and each Co-Syndication Agent,
collectively.
"Applicable Lending Office" means, with respect to each
Lender, such 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.
"Applicable Margin" means, as of any date, (i) with respect to
all Base Rate Advances, 0.0% per annum, and (ii) with respect to all
Eurodollar Rate Advances, the percentage rate per annum which is
applicable at such time with respect to Eurodollar Rate Advances as set
forth in the Pricing Schedule.
1
"Applicable Percentage" means, as of any date, the percentage
rate per annum at which Facility Fees are accruing on each Lender's
Commitment (without regard to usage) at such time as set forth in the
Pricing Schedule.
"Applicable Utilization Fee Rate" means, as of any date, the
percentage rate per annum at which Utilization Fees accrue on all
Revolving Credit Advances at such time as set forth in the Pricing
Schedule.
"Assignment and Acceptance" means an assignment and acceptance
entered into by a Lender and an Eligible Assignee, and accepted by the
Agent, in substantially the form of Exhibit C hereto.
"Audited Statements" means the Consolidated balance sheets of
the Borrower as at December 31, 2002, and the related Consolidated
statements of income and cash flows of the Borrower for the fiscal year
then ended, accompanied by the opinion thereon of the Borrower's
independent public accountants.
"Base Rate" means a fluctuating interest rate per annum in
effect from time to time, which rate per annum shall at all times be
equal to the highest of:
(a) the rate of interest established by Bank One in New
York, New York, from time to time, as Bank One's base rate;
(b) the sum (adjusted to the nearest 1/16 of 1% or, if
there is no nearest 1/16 of 1%, to the next higher 1/16 of 1%) of (i) 1/2 of 1%
per annum, plus (ii) the rate obtained by dividing (A) the latest three-week
moving average of secondary market morning offering rates in the United States
for three-month certificates of deposit of major United States money market
banks, such three-week moving average (adjusted to the basis of a year of 360
days) being determined weekly on each Monday (or, if such day is not a Business
Day, on the next succeeding Business Day) for the three-week period ending on
the previous Friday by Bank One on the basis of such rates reported by
certificate of deposit dealers to and published by the Federal Reserve Bank of
New York or, if such publication shall be suspended or terminated, on the basis
of quotations for such rates received by Bank One from three New York
certificate of deposit dealers of recognized standing selected by Bank One, by
(B) a percentage equal to 100% minus the average of the daily percentages
specified during such three-week period by the Board of Governors of the Federal
Reserve System (or any successor) for determining the maximum reserve
requirement (including, but not limited to, any emergency, supplemental or other
marginal reserve requirement) for Bank One with respect to liabilities
consisting of or including (among other liabilities) three-month U.S. dollar
non-personal time deposits in the United States, plus (iii) the average during
such three-week period of the annual assessment rates estimated by Bank One for
determining the then current annual assessment payable by Bank One to the
Federal Deposit Insurance Corporation (or any successor) for insuring U.S.
dollar deposits of Bank One in the United States; and
(c) 1/2 of one percent per annum above the Federal Funds
Rate.
"Base Rate Advance" means a Revolving Credit Advance that
bears interest as provided in Section 2.06(a)(i).
2
"Borrower" has the meaning specified in the recital of parties
to this Agreement.
"Borrowing" means a borrowing consisting of simultaneous
Revolving Credit Advances of the same Type and (in the case of
Eurodollar Rate Advances) having the same Interest Period, made by each
of the Lenders pursuant to Section 2.01.
"Business Day" means a day of the year on which banks are not
required or authorized by law to close in New York City or Chicago,
Illinois and, if the applicable Business Day relates to any Eurodollar
Rate Advances, on which dealings are carried on in the London interbank
market.
"Capitalization" means the sum of (a) total net worth plus (b)
Consolidated Debt plus (c) an amount equal to the restructuring charges
relating to the merger of MCN Energy Group Inc. with and into
Enterprises.
"Commitment" has the meaning specified in Section 2.01.
"Confidential Information" means information that the Borrower
furnishes to the Agent or any Lender in a writing designated as
confidential, but does not include any such information that is or
becomes generally available to the public or that is or becomes
available to the Agent or such Lender from a source other than the
Borrower.
"Consolidated" refers to the consolidation of accounts in
accordance with GAAP.
"Convert", "Conversion" 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 2.07 or 2.08.
"Debt" of any Person means, without duplication, (a) all
indebtedness 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 not overdue by more than 60 days incurred in
the ordinary course of such Person's business), (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 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 or
should be, in accordance with GAAP, recorded as capital leases, (f) all
obligations, contingent or otherwise, of such Person in respect of
acceptances, letters of credit or similar extensions of credit, (g) all
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 in any manner by such Person,
or in effect guaranteed directly or indirectly by such Person through
an agreement (1) to pay or purchase such Debt or to advance or supply
funds for the payment or purchase of such Debt, (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,
(3) to supply funds to or in any other manner invest in the debtor
(including any agreement to
3
pay for property or services irrespective of whether such property is
received or such services are rendered) or (4) otherwise to assure a
creditor 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. See the definition of
"Nonrecourse Debt" below.
"Declining Lender" has the meaning specified in Section 2.16.
"DECO" means The Detroit Edison Company, a Michigan
corporation wholly owned by DTE Energy.
"Default" means any Event of Default or any event that would
constitute an Event of Default but for the requirement that notice be
given or time elapse or both.
"Designating Lender" has the meaning specified in Section
8.07(h).
"Disclosed Litigation" has the meaning specified in Section
3.01(b).
"Domestic Lending Office" means, with respect to any Lender,
the office of such Lender specified as its "Domestic Lending Office"
opposite its name on Schedule I hereto or in 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.
"DTE Energy" means DTE Energy Company, a Michigan corporation.
"EBITDA" means, for any period, net income (or net loss) plus
the sum of (a) interest expense, (b) income tax expense, (c)
depreciation expense and (d) amortization expense, in each case
determined in accordance with GAAP for such period.
"Effective Date" has the meaning specified in Section 3.01.
"Eligible Assignee" means (i) a Lender; (ii) an Affiliate of a
Lender; (iii) a commercial bank organized under the laws of the United
States, or any State thereof, and having a combined capital and surplus
of at least $250,000,000; (iv) a savings and loan association or
savings bank organized under the laws of the United States, or any
State thereof, and having a combined capital and surplus of at least
$250,000,000; (v) 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 a political subdivision of any such
country, and having a combined capital and surplus of at least
$250,000,000, so long as such bank is acting through a branch or agency
located in the United States; (vi) the central bank of any country that
is a member of the Organization for Economic Cooperation and
Development; (vii) a finance company, insurance company or other
financial institution
4
or fund (whether a corporation, partnership, trust or other entity)
that is engaged in making, purchasing or otherwise investing in
commercial loans in the ordinary course of its business and having a
combined capital and surplus of at least $250,000,000; and (viii) any
other Person approved by the Agent and, so long as no Event of Default
shall be continuing, the Borrower, such approval not to be unreasonably
withheld or delayed by either party; provided, however, that neither
the Borrower nor an Affiliate of the Borrower shall qualify as an
Eligible Assignee.
"Enterprises" means DTE Enterprises, Inc., a Michigan
corporation wholly owned by DTE Energy.
"Environmental Action" means any action, suit, demand, demand
letter, 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
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 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 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) (i) the occurrence of a reportable
event, within 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, or (ii) the requirements of subsection (1)
of Section 4043(b) of ERISA (without regard to subsection (2) of such
Section) are met with respect to a contributing sponsor, as defined in
Section 4001(a)(13) of ERISA, of a Plan, and an event described in
paragraph (9), (10), (11), (12) or (13) of Section 4043(c) of ERISA is
reasonably expected to occur with respect to such Plan within the
following 30 days; (b) the application for a minimum
5
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 conditions for the imposition of a lien under Section 302(f) of
ERISA shall have been met 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 constitutes grounds for the termination of, or the
appointment of a trustee to administer, a Plan.
"Eurocurrency Liabilities" has the meaning assigned to that
term in 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 office of such Lender specified as its "Eurodollar Lending Office"
opposite its name on Schedule I hereto or in 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 Rate Advance comprising part of the same 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 Eurodollar Rate
Advance comprising part of such 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 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 Section 2.07.
"Eurodollar Rate Advance" means a Revolving Credit Advance
that bears interest as provided in Section 2.06(a)(ii).
"Eurodollar Rate Reserve Percentage" for any Interest Period
for all Eurodollar 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
6
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 is determined) having a term equal to such Interest
Period.
"Events of Default" has the meaning specified in Section 6.01.
"Excluded Hedging Debt" means all Debt arising under any Hedge
Agreement in respect of fluctuations in commodity prices.
"Existing Credit Agreement" means that certain Credit
Agreement, dated as of October 25, 2002, among the Borrower, the
lenders parties thereto, Bank One, NA, as administrative agent, and
Barclays Bank PLC and Xxxxxxx Xxxxx Barney Inc., as co-syndication
agents, as the same has been amended, restated, supplemented or
otherwise modified from time to time.
"Extending Lenders" has the meaning specified in Section 2.16.
"Facility Fee" has the meaning specified in Section 2.03(a).
"Federal Funds Rate" means, for any period, a fluctuating
interest rate per annum equal for each day during such period to the
weighted average of the rates on overnight federal funds transactions
with members of the Federal Reserve System arranged by federal funds
brokers, as published for such day (or, if such day is not a Business
Day, for the next preceding Business Day) by the Federal Reserve Bank
of New York, or, if such rate is not so published for any day 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.
"Financial Officer" of any Person means the chief executive
officer, president, chief financial officer, any vice president,
controller, assistant controller, treasurer or any assistant treasurer
of such Person.
"GAAP" has the meaning specified in Section 1.03.
"Hazardous Materials" means (a) petroleum and petroleum
products, by-products 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, interest rate future or option contracts, currency swap
agreements, currency future or option contracts and other similar
agreements.
7
"Insufficiency" means, with respect to any Plan, the amount,
if any, of its unfunded benefit liabilities, as defined in Section
4001(a)(18) of ERISA.
"Interest Period" means, for each Eurodollar Rate Advance
comprising part of the same Borrowing, the period commencing on the
date of such Eurodollar 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 10:00 A.M. (Chicago time) on the third Business Day prior to
the first day of such Interest Period, select; provided, however, that:
(i) the Borrower may not select any Interest
Period that ends after the Revolver Termination Date then in
effect;
(ii) Interest Periods commencing on the same date
for Eurodollar Rate Advances comprising part of the same
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 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.
"Junior Subordinated Debt" means (a) subordinated junior
deferrable interest debentures of the Borrower, (b) the related
preferred securities, if applicable, of Subsidiaries of the Borrower
and (c) the related subordinated guarantees, if applicable, of the
Borrower, in each case, from time to time outstanding.
"Lenders" means the Initial Lenders and each Person that shall
become a party hereto pursuant to Section 8.07(a), (b) and (c).
"Lien" means any lien, security interest or other charge or
encumbrance of any kind, or any other type of preferential arrangement,
including, without limitation, the lien
8
or retained security title of a conditional vendor and any easement,
right of way or other encumbrance on title to real property.
"Loan Documents" means this Agreement and the Notes.
"Material Adverse Change" means any material adverse change in
the business, condition (financial or otherwise), operations,
performance, properties or prospects of the Borrower and its
Subsidiaries taken as a whole.
"Material Adverse Effect" means a material adverse effect on
(a) the business, condition (financial or otherwise), operations,
performance, properties or prospects of the Borrower and its
Subsidiaries taken as a whole, (b) the rights and remedies of the Agent
or any Lender under any Loan Document or (c) the ability of the
Borrower to perform its obligations under any Loan Document to which it
is a party.
"Maximum Facility Amount" means $162,500,000.
"Moody's" means Xxxxx'x Investors Service, Inc.
"Xxxxx'x Rating" is defined in the Pricing Schedule.
"Multiemployer Plan" means a multiemployer plan, as defined in
Section 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.
"Nonrecourse Debt" means Debt of the Borrower or any of its
Subsidiaries in respect of which no recourse may be had by the
creditors under such Debt against the Borrower or such Subsidiary in
its individual capacity or against the assets of the Borrower or such
Subsidiary, other than assets which were purchased by the Borrower or
such Subsidiary with the proceeds of such Debt.
"Note" has the meaning specified in Section 2.17.
"Notice of Borrowing" has the meaning specified in Section
2.02(a).
"PBGC" means the Pension Benefit Guaranty Corporation (or any
successor).
"Person" means an individual, partnership, corporation
(including a business trust), joint stock company, trust,
unincorporated association, joint venture, limited
9
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.
"Pricing Schedule" means the Pricing Schedule identifying the
Applicable Margin, the Applicable Percentage and the Applicable
Utilization Fee Rate attached hereto identified as such.
"Property" of a Person means any and all property, whether
real, personal, tangible, intangible, or mixed, of such Person, or
other assets owned by such Person.
"Receivables Purchase Documents" means those documents entered
into in connection with any series of receivables purchase or sale
agreements generally consistent with terms contained in comparable
structured finance transactions pursuant to which the Borrower or any
of its Subsidiaries, in their respective capacities as sellers or
transferors of any receivables, sell or transfer to SPCs all of their
respective rights, title and interest in and to certain receivables for
further sale or transfer to other purchasers of or investors in such
assets (and the other documents, instruments and agreements executed in
connection therewith), as any such agreements may be amended, restated,
supplemented or otherwise modified from time to time, or any
replacement or substitution therefor
"Receivables Purchase Facility" means any securitization
facility made available to the Borrower or any of its Subsidiaries,
pursuant to which receivables of the Borrower or any of its
Subsidiaries are transferred to one or more SPCs, and thereafter to
certain investors, pursuant to the terms and conditions of the
Receivables Purchase Documents
"Reference Banks" means Citibank, N.A., Barclays Bank PLC and
Bank One, NA (Main Office - Chicago).
"Register" has the meaning specified in Section 8.07(d).
"Required Lenders" means at any time Lenders owed more than
fifty percent (50%) 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 more than fifty
percent (50%) of the Commitments.
"Revolver Termination Date" means the earlier of (a) October
21, 2004 or, if extended pursuant to Section 2.16, the date that is 364
days after the Revolver Termination Date then in effect, and (b) the
date of termination in whole of the Commitments pursuant to Section
2.04 or 6.01; provided, however, that the Revolver Termination Date of
any Lender that is a Declining Lender to any requested extension
pursuant to Section 2.16 shall be the Revolver Termination Date in
effect immediately prior to the date on which such extension was
granted for all purposes of this Agreement.
10
"Revolving Credit Advance" means an advance by a Lender to the
Borrower as part of a Borrowing, and refers to a Base Rate Advance or a
Eurodollar Rate Advance (each of which shall be a "Type" of Revolving
Credit Advance).
"S&P" means Standard & Poor's Ratings Services, a division of
the XxXxxx-Xxxx Companies, Inc.
"S&P Rating" is defined in the Pricing Schedule.
"SEC Reports" means the following reports and financial
statements of the Borrower:
(i) the Borrower's Annual Report on Form 10-K
for the year ended December 31, 2002, as filed with or sent to
the Securities and Exchange Commission, including therein the
Audited Statements of the Borrower; and
(ii) the Borrower's Quarterly Report on Form 10-Q
for the quarter ended June 30, 2003, including therein the
Unaudited Statements of the Borrower, and the Borrower's
Current Reports on Form 8-K, if any, provided to the Lenders
prior to the date of this Agreement.
"SPC" means any special purpose entity established for the
purpose of purchasing receivables in connection with a receivables
securitization transaction permitted under the terms of this Agreement
"SPV" has the meaning specified in Section 8.07(h).
"Significant Subsidiary" means any Subsidiary of the Borrower
(A) the total assets (after intercompany eliminations) of which exceed
30% of the total assets of the Borrower and its Subsidiaries or (B) the
net worth of which exceeds 30% of the Consolidated Net Worth of the
Borrower and its Subsidiaries, in each case as shown on the audited
consolidated financial statements of the Borrower as of the end of the
fiscal year immediately preceding the date of determination.
"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
11
trust or estate is at the time directly 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.
"Three-Year Agreement" means that certain $162,500,000
three-year credit agreement dated as of October 24, 2003, by and among
the Borrower, the Lenders and the Agents, as the same may be amended,
restated, supplemented or otherwise modified from time to time.
"Unaudited Statements" means the unaudited condensed
Consolidated balance sheets of the Borrower, as at June 30, 2003, and
the related condensed Consolidated statements of income and cash flows
of the Borrower for the six-month period then ended, duly certified by
a Financial Officer of the Borrower.
"Utilization Fee" has the meaning specified in Section
2.03(c).
"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.
"Withdrawal Liability" has the meaning specified in Part I of
Subtitle E of Title IV of ERISA.
SECTION 1.02. 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".
SECTION 1.03. Accounting Terms. All accounting terms not specifically
defined herein shall be construed in accordance with generally accepted
accounting principles consistent with those applied in the preparation of the
financial statements referred to in Section 4.01(e) ("GAAP").
ARTICLE II:
AMOUNTS AND TERMS OF THE REVOLVING CREDIT ADVANCES
SECTION 2.01. 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 Revolver Termination Date in an
aggregate amount not to exceed at any time outstanding the amount set forth
opposite such Lender's name on Schedule 1 hereto or, if such Lender has entered
into 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 2.04 (such Lender's "Commitment"). Each Borrowing
shall be in an aggregate amount of $5,000,000 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 each Lender's Commitment, the
12
Borrower may borrow under this Section 2.01, prepay pursuant to Section 2.09 and
reborrow under this Section 2.01.
SECTION 2.02. Making the Revolving Credit Advances. (a) Each Borrowing
shall be made on notice, given not later than 10:00 A.M. (Chicago time) on the
third Business Day prior to the date of the proposed Borrowing in the case of a
Borrowing consisting of Eurodollar Rate Advances, or 9:00 A.M. (Chicago time) on
the Business Day of the proposed Borrowing in the case of a 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
Borrowing (a "Notice of Borrowing") shall be by telephone, confirmed immediately
in writing, or telecopier or telex in substantially the form of Exhibit B
hereto, specifying therein the requested (i) date of such Borrowing, (ii) Type
of Revolving Credit Advances comprising such Borrowing, (iii) aggregate amount
of such Borrowing, and (iv) in the case of a Borrowing consisting of Eurodollar
Rate Advances, initial Interest Period for each such Revolving Credit Advance.
Each Lender shall, before 11:00 A.M. (Chicago time) on the date of such
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 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 subsection (a) above to the contrary
notwithstanding, (i) the Borrower may not select Eurodollar Rate Advances for
any Borrowing if the aggregate amount of such Borrowing is less than $5,000,000
or if the obligation of the Lenders to make Eurodollar Rate Advances shall then
be suspended pursuant to Section 2.07 or 2.11 and (ii) at no time shall the sum
of (x) all Borrowings comprising Eurodollar Rate Advances outstanding hereunder
and (y) all "Borrowings" comprising "Eurodollar Rate Advances" outstanding
under, and as such terms are defined in, the Three-Year Agreement, be greater
than ten.
(c) Each Notice of Borrowing shall be irrevocable and
binding on the Borrower. In the case of any Borrowing that the related Notice of
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 Borrowing for such 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
Revolving Credit Advance to be made by such Lender as part of such 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 Borrowing that such Lender will not make
available to the Agent such Lender's ratable portion of such Borrowing, the
Agent may assume that such Lender has made such portion available to the Agent
on the date of such Borrowing in accordance with subsection (a) of this Section
2.02 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
13
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 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 Borrowing for purposes of this
Agreement.
(e) The failure of any Lender to make the Revolving
Credit Advance to be made by it as part of any Borrowing shall not relieve any
other Lender of its obligation, if any, hereunder to make its Revolving Credit
Advance on the date of such 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 Borrowing.
SECTION 2.03. Fees. (a) Facility Fee. The Borrower agrees to pay to the
Agent for the account of each Lender a facility fee (the "Facility Fee") on the
aggregate amount of such Lender's Commitment from the date hereof in the case of
each Initial Lender and from effective date specified in the Assignment and
Acceptance pursuant to which it became a Lender in the case of each other Lender
until all of the Revolving Credit Advances have been paid in full and the
Commitments under this Agreement have been terminated 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, and on
the Revolver 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.
(a) Utilization Fee. If the aggregate outstanding amount
of (i) all Revolving Credit Advances hereunder and (ii) all "Revolving Credit
Advances" under (and as defined in) the Three-Year Agreement exceeds
thirty-three percent (33%) of the aggregate amount of (x) all Commitments
hereunder and (y) all "Commitments" under (and as defined in) the Three-Year
Agreement then in effect on such date (or, if any of the Commitments or
"Commitments" have been terminated, the aggregate amount of all Commitments and
"Commitments" in effect immediately prior to such termination), the Borrower
will pay to the Agent for the ratable benefit of the Lenders a utilization fee
(the "Utilization Fee") at a per annum rate equal to the Applicable Utilization
Fee Rate in effect from time to time payable on the aggregate outstanding amount
of all Revolving Credit Advances on such date, payable in arrears quarterly on
the last day of each March, June, September and December, and on the Revolver
Termination Date.
SECTION 2.04. Termination or Reduction of the Commitments. (a) The
Commitments shall be automatically terminated on the Revolver Termination Date.
(b) 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 each partial reduction shall be in the aggregate amount
of $5,000,000 or an integral multiple of $1,000,000 in excess thereof. Once
terminated, a Commitment or portion thereof may not be reinstated.
14
SECTION 2.05. Repayment of Revolving Credit Advances. The Borrower
shall repay to the Agent for the ratable account of the Lenders on the Revolver
Termination Date the aggregate principal amount of the Revolving Credit Advances
then outstanding.
SECTION 2.06. Interest on Revolving Credit Advances. (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 Revolving
Credit 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 (x) the Base Rate
in effect from time to time plus (y) 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 (x) the Eurodollar Rate for such Interest Period for such
Revolving Credit Advance plus (y) 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. (i) Upon the occurrence and during
the continuance of an Event of Default, the Borrower shall pay interest on the
unpaid principal amount of each Revolving Credit Advance owing to each Lender,
payable in arrears on the dates referred to in clause (a)(i) or (a)(ii) above,
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 clause (a)(i)
or (a)(ii) above, and (ii) the Borrower shall pay, 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 clause (a)(i) above.
SECTION 2.07. Interest Rate Determination. (a) Each Reference Bank
agrees to furnish to the Agent timely information for the purpose of determining
each Eurodollar 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 2.06(a)(i) or (ii), and the
rate, if any, furnished by each Reference Bank for the purpose of determining
the interest rate under Section 2.06(a)(ii).
15
(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 Eurodollar Rate 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.
(a) 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 Eurodollar
Rate Advances will automatically, on the last day of the then existing Interest
Period therefor, Convert into Base Rate Advances.
(b) 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 $5,000,000, such Eurodollar
Rate Advances shall automatically Convert into Base Rate Advances.
(c) Upon the occurrence and during the continuance of any
Event of Default, (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.
(d) If fewer than two Reference Banks furnish timely
information to the Agent for determining the Eurodollar Rate for any Eurodollar
Rate Advances:
(i) the Agent shall forthwith notify the
Borrower and the Lenders that the interest rate cannot be
determined for such Eurodollar Rate Advances,
(ii) with respect to Eurodollar Rate Advances,
each such Eurodollar Rate Advance will automatically, on the
last day of the then existing Interest Period therefor,
Convert into a Base Rate Advance (or if such Eurodollar Rate
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 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.
SECTION 2.08. Optional Conversion of Revolving Credit Advances. The
Borrower may on any Business Day, upon notice given to the Agent not later than
10:00 A.M. (Chicago time) on the third Business Day prior to the date of the
proposed Conversion and subject to the provisions of Sections 2.07 and 2.11,
Convert all Revolving Credit Advances of one Type comprising the same Borrowing
into Revolving Credit Advances of the other Type (it
16
being understood that such Conversion of a Revolving Credit Advance or of its
Interest Period does not constitute a repayment or prepayment of such Revolving
Credit Advance); 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, any Conversion of Base Rate
Advances into Eurodollar Rate Advances shall be in an amount not less than the
minimum amount specified in Section 2.02(b) and no Conversion of any Revolving
Credit Advances shall result in more separate Borrowings than permitted under
Section 2.02(b). Each such notice of a Conversion shall, within the restrictions
specified above, specify (i) the date of such Conversion, (ii) the Revolving
Credit Advances to be Converted, and (iii) if such Conversion is into Eurodollar
Rate Advances, the duration of the initial Interest Period for each such
Eurodollar Rate Advance. Each notice of Conversion shall be irrevocable and
binding on the Borrower.
SECTION 2.09. Prepayments of Revolving Credit Advances. (a) Optional
Prepayment. The Borrower may on any Business Day, upon notice given to the Agent
not later than 10:00 A.M. (Chicago time), (i) on the same day for Base Rate
Advances and (ii) on the second Business Day prior to the prepayment in the case
of 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 (x) each partial prepayment shall be in an aggregate
principal amount of $5,000,000 or an integral multiple of $1,000,000 in excess
thereof and (y) 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).
(b) Mandatory Prepayment. The Borrower shall, upon five
Business Days notice from the Agent given at the request or with the consent of
the Required Lenders, prepay the aggregate principal amount outstanding plus all
interest thereon and all other amounts payable hereunder or under the Notes, in
the event that: (i) any Person or two or more Persons acting in concert (other
than DTE Energy or any of its Subsidiaries) 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 20% or more of the combined voting power of all
Voting Stock of the Borrower; or (ii) any Person or two or more Persons acting
in concert (other than DTE Energy or any of its Subsidiaries) shall have
acquired by contract or otherwise, or shall have entered into a contract or
arrangement that, upon consummation, will result in its or their acquisition of
the power to exercise, directly or indirectly, a controlling influence over the
management or policies of the Borrower.
SECTION 2.10. 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 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 (excluding for purposes
of this Section 2.10 any such increased costs resulting from (i) Taxes or Other
Taxes (as to which Section 2.13 shall govern) and (ii) changes in the basis of
taxation of overall net income or
17
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. 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 manifest
error.
(b) If any Lender determines that compliance with any law
or regulation or any 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 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. 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 manifest error.
(a) In the event that a Lender demands payment from the
Borrower for amounts owing pursuant to subsection (a) or (b) of this Section
2.10, the Borrower may, upon payment of such amounts and subject to the
requirements of Sections 8.04 and 8.07, substitute for such Lender another
financial institution, which financial institution shall be an Eligible Assignee
and shall assume the Commitments of such Lender and purchase the Revolving
Credit Advances held by such Lender in accordance with Section 8.07, provided,
however, that (i) no Default shall have occurred and be continuing, (ii) the
Borrower shall have satisfied all of its obligations in connection with the Loan
Documents with respect to such Lender, and (iii) if such assignee is not a
Lender, (A) such assignee is acceptable to the Agent and (B) the Borrower shall
have paid the Agent a $3,000 administrative fee.
SECTION 2.11. 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 asserts that it is unlawful,
for any Lender or its Eurodollar Lending Office to perform its obligations
hereunder to make Eurodollar Rate Advances or to fund or maintain Eurodollar
Rate Advances hereunder, (i) each Eurodollar Rate Advance will automatically,
upon such demand, Convert into a Base Rate Advance or a Revolving Credit Advance
that bears interest at the rate set forth in Section 2.06(a)(i), as the case may
be, and (ii) the obligation of the Lenders to make Eurodollar 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.
SECTION 2.12. Payments and Computations. (a) The Borrower shall make
each payment hereunder and under the Notes not later than 10:00 A.M. (Chicago
time) on the day
18
when due in U.S. dollars to the Agent at the Agent's Account in same day funds
and without set off, deduction or counterclaim. The Agent will promptly
thereafter cause to be distributed like funds relating to the payment of
principal or interest, facility fees or the Utilization Fee ratably (other than
amounts payable pursuant to Section 2.10, 2.13 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.
(b) The Borrower hereby authorizes each Lender, if and to
the extent payment owed to such Lender is not made when due hereunder or under
the Note held by such Lender, to charge from time to time against any or all of
the Borrower's accounts with such Lender any amount so due.
(a) 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 or
the Federal Funds Rate and of facility fees and the Utilization Fee 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, facility fees or the
Utilization Fee are payable. Each determination by the Agent of an interest rate
hereunder shall be conclusive and binding for all purposes, absent manifest
error.
(b) 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, facility fee or
the Utilization Fee, as the case may be; provided, however, that, if such
extension would cause payment of interest on or principal of Eurodollar Rate
Advances to be made in the next following calendar month, such payment shall be
made on the next preceding Business Day.
(c) 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.
19
SECTION 2.13. Taxes. (a) Any and all payments by the Borrower hereunder
or under the Notes shall be made, in accordance with Section 2.12, free and
clear of and without deduction for any and all present or future taxes, levies,
imposts, deductions, charges or withholdings, and all liabilities with respect
thereto, excluding, 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, by the jurisdiction under the laws of which such Lender or the Agent (as
the case may be) is organized or any political subdivision thereof and, in the
case of each Lender, taxes imposed on its overall net income, and franchise
taxes imposed on it in lieu of net income taxes, by the jurisdiction of such
Lender's Applicable Lending Office or any political subdivision thereof (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"). 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 2.13) 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.
(b) In addition, the Borrower agrees to pay any present
or future stamp or documentary taxes or any other excise or property taxes,
charges or similar levies that arise from any payment made hereunder or under
the Notes or from the execution, delivery or registration of, performing under,
or otherwise with respect to, this Agreement or the Notes (hereinafter referred
to as "Other Taxes").
(a) The Borrower shall indemnify each Lender and the
Agent for the full amount of Taxes or Other Taxes (including, without
limitation, any taxes imposed by any jurisdiction on amounts payable under this
Section 2.13) imposed on or paid by such Lender or the Agent (as the case may
be) and any liability (including penalties, interest and expenses) 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.
(b) 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. In the case of any payment hereunder or under the Notes by or on 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, if the
Borrower determines that no Taxes are payable in respect thereof, the Borrower
shall furnish, or shall cause such payor to furnish, to the Agent, at such
address, an opinion of counsel acceptable to the Agent stating that such payment
is exempt from Taxes. For purposes of this subsection (d) and subsection (e),
the terms "United States" and "United States person" shall have the meanings
specified in Section 7701 of the Internal Revenue Code.
(c) 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 Assignment and Acceptance pursuant to which it becomes a
20
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 original Internal Revenue Service Form W-8BEN or W-8ECI, as appropriate, or
any successor or other form prescribed by the Internal Revenue Service,
certifying that such Lender is exempt from or entitled to a reduced rate of
United States withholding tax on payments pursuant to this Agreement or the
Notes. If the forms provided by a Lender at the time such Lender first becomes a
party to this Agreement indicates a United States interest withholding tax rate
in excess of zero, withholding tax at such rate shall be considered excluded
from Taxes unless and until such Lender provides the appropriate forms
certifying that a lesser rate applies, whereupon withholding tax at such lesser
rate only shall be considered excluded from Taxes for periods governed by such
form; provided, however, that, if at the date of the Assignment and Acceptance
pursuant to which a Lender assignee becomes a party to this Agreement, the
Lender assignor was entitled to payments under subsection (a) in respect of
United States withholding tax with respect to interest paid at such date, then,
to such extent, the term Taxes shall include (in addition to withholding taxes
that may be imposed in the future or other amounts otherwise includable in
Taxes) United States withholding tax, if any, applicable with respect to the
Lender assignee on such date. If any form or document referred to in this
subsection (e) requires the disclosure of information, other than information
necessary to compute the tax payable and information required on the date hereof
by Internal Revenue Service Form W-8BEN or W-8ECI, that the Lender reasonably
considers to be confidential, the Lender shall give notice thereof to the
Borrower and shall not be obligated to include in such form or document such
confidential information.
(d) For any period with respect to which a Lender has
failed to provide the Borrower with the appropriate form described in Section
2.13(e) (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 otherwise is not required under the first sentence of subsection
(e) above), such Lender shall not be entitled to indemnification under Section
2.13(a) or (c) with respect to Taxes imposed by the United States by reason of
such failure; 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 as the Lender shall reasonably request to assist the Lender to
recover such Taxes.
(e) In the event that a Lender demands payment from the
Borrower for amounts owing pursuant to subsection (a) or (b) of this Section
2.13, the Borrower may, upon payment of such amounts and subject to the
requirements of Sections 8.04 and 8.07, substitute for such Lender another
financial institution, which financial institution shall be an Eligible Assignee
and shall assume the Commitments of such Lender and purchase the Revolving
Credit Advances held by such Lender in accordance with Section 8.07, provided,
however, that (i) no Default shall have occurred and be continuing, (ii) the
Borrower shall have satisfied all of its obligations in connection with the Loan
Documents with respect to such Lender, and (iii) if such assignee is not a
Lender, (A) such assignee is acceptable to the Agent and (B) the Borrower shall
have paid the Agent a $3,000 administrative fee.
SECTION 2.14. 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 2.10, 2.13
21
or 8.04(c)) 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 (i) the amount of such Lender's required
repayment to (ii) 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 pursuant to this Section 2.14
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.
SECTION 2.15. Use of Proceeds. The proceeds of the Revolving Credit
Advances shall be available (and the Borrower agrees that it shall use such
proceeds) solely for general corporate purposes, including commercial paper
liquidity, of the Borrower and its Subsidiaries.
SECTION 2.16. Extensions of Revolver Termination Date. No earlier than
45 days and no later than 30 days prior to the Revolver Termination Date in
effect at any time, the Borrower may, by written notice to the Agent, request
that such Revolver Termination Date be extended for a period of 364 days. Such
request shall be irrevocable and binding upon the Borrower. The Agent shall
promptly notify each Lender of such request. If a Lender agrees, in its
individual and sole discretion, to so extend its Commitment (an "Extending
Lender"), it shall deliver to the Agent a written notice of its agreement to do
so no earlier than 30 days and no later than 20 days prior to such Revolver
Termination Date and the Agent shall notify the Borrower of such Extending
Lender's agreement to extend its Commitment no later than 15 days prior to such
Revolver Termination Date. The Commitment of any Lender that fails to accept or
respond to the Borrower's request for extension of the Revolver Termination Date
(a "Declining Lender") shall be terminated on the Revolver Termination Date
originally in effect (without regard to any extension by other Lenders) and on
such Revolver Termination Date the Borrower shall pay in full the principal
amount of all Revolving Credit Advances owing to such Declining Lender, together
with accrued interest thereon to the date of such payment of principal and all
other amounts payable to such Declining Lender under this Agreement. The Agent
shall promptly notify each Extending Lender of the aggregate Commitments of the
Declining Lenders. The Extending Lenders, or any of them, may offer to increase
their respective Commitments by an aggregate amount up to the aggregate amount
of the Declining Lenders' Commitments and any such Extending Lender shall
deliver to the Agent a notice of its offer to so increase its Commitment no
later than 15 days prior to such Revolver Termination Date. To the extent of any
shortfall in the aggregate amount of extended Commitments, the Borrower shall
have the right to require any Declining Lender to assign in full its rights and
obligations under this Agreement to an Eligible Assignee designated by the
Borrower and acceptable to the Agent, that agrees to accept all of such rights
and obligations (a "Replacement Lender"), provided that (i) such increase and/or
such assignment is otherwise in compliance with Section 8.07 (provided that the
$3,000 processing and recording fee in respect of such assignment shall be
payable by
22
the Borrower), (ii) such Declining Lender receives payment in full of the
principal amount of all Revolving Credit Advances owing to such Declining
Lender, together with accrued interest thereon to the date of such payment of
principal and all other amounts payable to such Declining Lender under this
Agreement, and (iii) any such increase shall be effective on the Revolver
Termination Date in effect at the time the Borrower requests such extension and
any such assignment shall be effective on the date specified by the Borrower and
agreed to by the Replacement Lender and the Agent. If Extending Lenders and
Replacement Lenders provide Commitments in an aggregate amount at least equal to
51% of the aggregate amount of the Commitments outstanding 30 days prior to the
Revolver Termination Date in effect at the time the Borrower requests such
extension, the Revolver Termination Date shall be extended by 364 days for such
Extending Lenders.
SECTION 2.17. Noteless Agreement; Evidence of Indebtedness.
(i) Each Lender shall maintain in accordance
with its usual practice an account or accounts
evidencing the indebtedness of the Borrower to such
Lender resulting from each Revolving Credit Advance
made by such Lender from time to time, including the
amounts of principal and interest payable and paid to
such Lender from time to time hereunder.
(ii) The Agent shall also maintain accounts in
which it will record (i) the date and the amount of
each Revolving Credit Advance made hereunder and the
Interest Period, if any, applicable thereto, (ii) the
amount of any principal or interest due and payable
or to become due and payable from the Borrower to
each Lender hereunder, (iii) the effective date and
amount of each Assignment and Acceptance delivered to
and accepted by it and the parties thereto pursuant
to Section 8.07, (iv) the amount of any sum received
by the Agent hereunder from the Borrower and each
Lender's share thereof, and (v) all other appropriate
debits and credits as provided in this Agreement,
including, without limitation, all fees, charges,
expenses and interest.
(iii) The entries maintained in the accounts
maintained pursuant to clauses (a) and (b) above
shall be prima facie evidence of the existence and
amounts of the obligations hereunder and under the
Notes therein recorded; provided, however, that the
failure of the Agent or any Lender to maintain such
accounts or any error therein shall not in any manner
affect the obligation of the Borrower to repay such
obligations in accordance with their terms.
(iv) Any Lender may request that its Revolving
Credit Advances be evidenced by a promissory note
representing its Revolving Credit Advances
substantially in the form of Exhibit A (each, a
"Note"). In such event, the Borrower shall prepare,
execute and deliver to such Lender such Note payable
to the order
23
of such Lender. Thereafter, the Revolving Credit
Advances evidenced by each such Note and interest
thereon shall at all times (including after any
assignment pursuant to Section 8.07) be represented
by one or more Notes payable to the order of the
payee named therein or any assignee pursuant to
Section 8.07, except to the extent that any such
Lender or assignee subsequently returns any such Note
for cancellation and requests that such Revolving
Credit Advances once again be evidenced as described
in clauses (a) and (b) above.
ARTICLE III:
CONDITIONS TO EFFECTIVENESS AND LENDING
SECTION 3.01. Conditions Precedent to Effectiveness of Section 2.01.
Section 2.01 of this Agreement shall become effective on and as of the date
hereof (the "Effective Date"), provided that the following conditions precedent
have been satisfied on such date:
(a) There shall have occurred no Material Adverse Change
since June 30, 2003.
(b) There shall exist no action, suit, investigation,
litigation or proceeding affecting the Borrower or any of its Significant
Subsidiaries pending or threatened before any court, governmental agency or
arbitrator that (i) could be reasonably likely to have a Material Adverse Effect
other than the matters disclosed or contemplated in the SEC Reports (the
"Disclosed Litigation") or (ii) purports to affect the legality, validity or
enforceability of any Loan Document or the consummation of the transactions
contemplated hereby and there shall have been no adverse change in the status,
or financial effect on the Borrower or any of its Significant Subsidiaries of
the Disclosed Litigation from that disclosed or contemplated in the SEC Reports.
(c) The Lenders shall have been given such access, as
such Lenders have reasonably requested, to the management, records, books of
account, contracts and properties of the Borrower and its Significant
Subsidiaries as they shall have requested.
(d) 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 by the Loan Documents.
(e) The Borrower shall have notified each Lender and the
Agent in writing as to the proposed Effective Date.
(f) The Borrower shall have paid all accrued fees and
reasonable expenses of the Agent and the Lenders with respect to this Agreement
for which the Agent shall have made reasonable demand in accordance with Section
8.04 on or prior to the Effective Date.
24
(g) 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) The representations and warranties contained
in Section 4.01 are correct on and as of the Effective Date,
and
(ii) No event has occurred and is continuing that
constitutes a Default.
(iii) The Borrower shall have delivered a
certificate, substantially in the form of Exhibit D hereto,
signed on behalf of the Borrower by a Financial Officer of the
Borrower.
(h) The Agent shall have received on or before the
Effective Date the following, each dated such day, in form and substance
satisfactory to the Agent and (except for any Notes requested by the Lenders) in
sufficient copies for each Lender:
(i) Notes, if any, to the order of each Lender
requesting the issuance of a Note as of the Closing Date
pursuant to Section 2.17.
(ii) Certified copies of the resolutions of the
Board of Directors of the Borrower approving each Loan
Document to which it is a party, and of all documents
evidencing other necessary corporate action and governmental
approvals, if any, with respect to each Loan Document to which
it is a party.
(iii) A certificate of the Corporate Secretary or
an Assistant Corporate Secretary of the Borrower certifying
the names and true signatures of the officers of the Borrower
authorized to sign each Loan Document to which it is a party
and the other documents to be delivered hereunder or
thereunder.
(iv) Copies of the SEC Reports.
(v) A favorable opinion of X.X. Xxxxxx, the
General Counsel of the Borrower, substantially in the form of
Exhibit E hereto and as to such other matters as any Lender
through the Agent may reasonably request.
(vi) Evidence satisfactory to the Agent that the
Existing Credit Agreement shall have been or shall
simultaneously with the initial Revolving Credit Advance
hereunder be terminated (except for those provisions that
expressly survive the termination thereof) and all loans
outstanding and other amounts owed to the lenders or agents
thereunder shall have been simultaneously with the initial
Revolving Credit Advance hereunder be paid in full.
(i) The Three-Year Agreement shall have been duly
executed by all parties thereto.
SECTION 3.02. Conditions Precedent to Each Borrowing. The obligation of
each Lender to make a Revolving Credit Advance on the occasion of each Borrowing
shall be subject
25
to the conditions precedent that the Effective Date shall have occurred and on
the date of such Borrowing (a) the following statements shall be true (and each
of the giving of the applicable Notice of Borrowing and the acceptance by the
Borrower of the proceeds of such Borrowing shall constitute a representation and
warranty by the Borrower that on the date of such Borrowing such statements are
true):
(i) the representations and warranties contained
in Section 4.01 are correct on and as of the date of such
Borrowing, before and after giving effect to such Borrowing
and to the application of the proceeds therefrom, as though
made on and as of such date, and
(ii) no event has occurred and is continuing, or
would result from such Borrowing or from the application of
the proceeds therefrom, that constitutes a Default;
and (b) the Agent shall have received such other approvals, opinions or
documents as any Lender through the Agent may reasonably request.
SECTION 3.03. 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
SECTION 4.01. 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 jurisdiction of its
incorporation.
(b) The execution, delivery and performance by the
Borrower of the Loan Documents to which it is a party, and the consummation of
the transactions contemplated hereby and thereby, 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 (ii) law or any
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, the Notes or any other Loan
Document to which it is a party.
26
(d) This Agreement has been, and each of the Notes and
each of the other Loan Documents to which it is a party when delivered hereunder
will have been, duly executed and delivered by the Borrower. This Agreement is,
and each of the Notes and each of the other Loan Documents to which it is a
party when delivered hereunder will be, the legal, valid and binding obligation
of the Borrower enforceable against the Borrower in accordance with their
respective terms, subject to the effect of any applicable bankruptcy,
insolvency, reorganization, moratorium or similar law affecting creditors rights
generally.
(e) The Audited Statements of the Borrower and the
Unaudited Statements of the Borrower, copies of each of which have been
furnished to each Lender, fairly present, subject in the case of Unaudited
Statements to normal year-end audit adjustments, the Consolidated financial
condition, results of operations and cash flows of the relevant Persons and
entities, as at the dates and for the periods therein indicated, all in
accordance with generally accepted accounting principles consistently applied.
Since June 30, 2003, there has been no Material Adverse Change, except as shall
have been disclosed or contemplated in the SEC Reports.
(f) There is no pending or threatened action, suit,
investigation, litigation or proceeding, including, without limitation, any
Environmental Action, affecting the Borrower or any of the Significant
Subsidiaries before any court, governmental agency or arbitrator that (i) could
be reasonably likely to have a Material Adverse Effect (other than the Disclosed
Litigation) or (ii) purports to affect the legality, validity or enforceability
of this Agreement, any Note or any other Loan Document or the consummation of
the transactions contemplated hereby and there has been no adverse change in the
status of any Disclosed Litigation, or its financial effect on the Borrower or
any of the Significant Subsidiaries from that disclosed or contemplated in the
SEC Reports that could be reasonably likely to have a Material Adverse Effect.
(g) The operations and properties of the Borrower and
each of the Significant Subsidiaries comply in all material respects with all
applicable Environmental Laws and Environmental Permits, all past non-compliance
with such Environmental Laws and Environmental Permits has been resolved without
ongoing obligations or costs, except as disclosed or contemplated in the SEC
Reports, and no circumstances exist that could be reasonably likely to (i) form
the basis of an Environmental Action against the Borrower or any of the
Significant Subsidiaries or any of their properties that could have a Material
Adverse Effect or (ii) cause any such property to be subject to any restrictions
on ownership, occupancy, use or transferability under any Environmental Law that
could have a Material Adverse Effect.
(h) No ERISA Event has occurred or is reasonably expected
to occur with respect to any Plan.
(i) Schedule B (Actuarial Information) to the most recent
annual report (Form 5500 Series) for each Plan, copies of which have been filed
with the Internal Revenue Service, is complete and accurate and fairly presents
the funding status of such Plan, and since the date of such Schedule B there has
been no material adverse change in such funding status.
(j) Neither the Borrower nor any ERISA Affiliate has
incurred or is reasonably expected to incur any Withdrawal Liability to any
Multiemployer Plan.
27
(k) Neither the Borrower nor any ERISA Affiliate has been
notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is
in reorganization or has been terminated, within the meaning of Title IV of
ERISA, and no such Multiemployer Plan is reasonably expected to be in
reorganization or to be terminated, within the meaning of Title IV of ERISA.
(l) Except as set forth in the financial statements
referred to in subsection (e) above, the Borrower and its Subsidiaries have no
material liability with respect to "expected post retirement benefit
obligations" within the meaning of Statement of Financial Accounting Standards
No. 106.
(m) The Borrower is not engaged in the business of
extending credit 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), and no proceeds of any Revolving Credit Advance will be used to
purchase or carry any margin stock or to extend credit to others for the purpose
of purchasing or carrying any margin stock; and after applying the proceeds of
each Revolving Credit Advance hereunder, margin stock (within the meaning of
Regulation U issued by the Board of Governors of the Federal Reserve System)
constitutes less than twenty-five percent (25%) of the value of those assets of
the Borrower and its Subsidiaries which are subject to any limitation on sale or
pledge, or any other restriction hereunder.
(n) Neither the Borrower nor any of its Subsidiaries is,
or after the making of any Revolving Credit Advance or the application of the
proceeds or repayment thereof, or the consummation of any of the other
transactions contemplated hereby, will be, an "investment company", or an
"affiliated person" of, or "promoter" or "principal underwriter" for, an
"investment company" (within the meaning of the Investment Company Act of 1940,
as amended).
(o) The Borrower is a "public utility company" and a
"subsidiary company" of MichCon Holdings, Inc., which is a "holding company" and
a "subsidiary company" of Enterprises, which is a "holding company" and
"subsidiary company" of DTE Energy, which is a "holding company" as such terms
are defined in the Public Utility Holding Company Act of 1935, as amended (the
"1935 Act"), and such "holding companies" and the Borrower are currently exempt
from the provisions of the 1935 Act (except Section 9 thereof).
ARTICLE V:
COVENANTS OF THE BORROWER
SECTION 5.01. Affirmative Covenants. So long as any Revolving Credit
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.
(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
28
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.
(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
(including customary self-insurance) in the same general areas in which the
Borrower or such Subsidiary operates.
(d) Preservation of Corporate Existence, Etc. Preserve
and maintain its corporate existence, rights (charter and statutory) and
franchises; provided, however, that the Borrower shall not be required to
preserve any right or franchise if the Board of Directors of the Borrower or
such Subsidiary shall determine that the preservation thereof is no longer
desirable in the conduct of the business of the Borrower and that the loss
thereof is not disadvantageous in any material respect to the Borrower or the
Lenders.
(e) Visitation Rights. At any reasonable time and from
time to time, 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, and visit the properties of, the Borrower and
any of the Significant Subsidiaries, and to discuss the affairs, finances and
accounts of the Borrower and any of the Significant Subsidiaries with any of
their officers or directors and with their independent certified public
accountants.
(f) Keeping of Books. Keep, and cause each of its
Significant 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. Subject to clause (d)
above, maintain and preserve, and cause each of its Significant Subsidiaries to
maintain and preserve, all of their respective properties that are used or
useful in the conduct of their respective businesses in good working order and
condition, ordinary wear and tear excepted.
(h) Reporting Requirements. Furnish to the Lenders:
(i) as soon as available and in any event within
65 days after the end of each of the first three quarters of
each fiscal year of the Borrower, Consolidated balance sheet
of the Borrower and its Consolidated Subsidiaries as of the
end of such quarter and 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;
(ii) as soon as available and in any event within
115 days after the end of each fiscal year of the Borrower, a
copy of the Annual Report on Form 10-K for such year for the
Borrower and its Consolidated Subsidiaries, as filed with or
29
sent to the Securities and Exchange Commission, containing the
Consolidated balance sheet of the Borrower and its
Consolidated Subsidiaries as of the end of such fiscal year
and Consolidated statements of income and cash flows of the
Borrower and its Subsidiaries for such fiscal year, in each
case accompanied by an opinion by Deloitte & Touche LLP or
other independent public accountants acceptable to the
Required Lenders;
(iii) together with the financial statements
required under clauses (i) or (ii) above, a compliance
certificate in substantially the form of Exhibit F signed by a
Financial Officer of the Borrower showing the then current
information and calculations necessary to determine the
Applicable Margin, the Applicable Percentage and the
Applicable Utilization Fee Rate and compliance with this
Agreement and stating that no Event of Default or Default
exists, or if any Event of Default or Default exists, stating
the nature and status thereof;
(iv) as soon as possible and in any event within
five days after the occurrence of each Default continuing on
the date of such statement, a statement of a Financial Officer
of the Borrower setting forth details of such Default and the
action that the Borrower has taken and proposes to take with
respect thereto;
(v) as soon as possible and in any event within
five days after any change in the Borrower's Xxxxx'x Rating or
S&P Rating, notice thereof;
(vi) reasonably promptly after the sending or
filing thereof copies of all reports and registration
statements that the Borrower or any Subsidiary filed with the
Securities and Exchange Commission or any national securities
exchange;
(vii) promptly after the commencement thereof,
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
4.01(f); and
(viii) such other information respecting the
Borrower or any of its Subsidiaries as any Lender through the
Agent may from time to time reasonably request.
SECTION 5.02. Negative Covenants. At all times on and after the
Effective Date so long as any Revolving Credit Advance shall remain unpaid or
any Lender shall have any Commitment hereunder, the Borrower will not:
(a) Liens, Etc. Create, incur, or suffer to exist any
Lien in, of or on the Property of the Borrower or any of its Subsidiaries,
except:
(i) Liens for taxes, assessments or governmental
charges or levies on its Property if the same shall not at the
time be delinquent or thereafter can be paid without penalty,
or are being contested in good faith and by appropriate
proceedings and for which adequate reserves in accordance with
GAAP shall have been set aside on its books;
30
(ii) Liens imposed by law, such as carriers',
warehousemen's and mechanics' liens and other similar liens
arising in the ordinary course of business which secure
payment of obligations not more than sixty (60) days past due
or which are being contested in good faith by appropriate
proceedings and for which adequate reserves in accordance with
GAAP shall have been set aside on its books;
(iii) Liens arising out of pledges or deposits
under worker's compensation laws, unemployment insurance, old
age pensions, or other social security or retirement benefits,
or similar legislation;
(iv) Utility easements, building restrictions and
such other encumbrances or charges against real property as
are of a nature generally existing with respect to properties
of a similar character and which do not in any material way
affect the marketability of the same or interfere with the use
thereof in the business of the Borrower or its Subsidiaries;
(v) Liens described in the SEC Reports;
(vi) Liens pursuant to the Borrower's Indenture
of Mortgage and Deed of Trust, dated as of March 1, 1944, as
restated as of July 15, 1989, as supplemented, as described
therein;
(vii) Liens pursuant to the Borrower's Senior
Indenture, dated as of June 1, 1998, as supplemented, as
described therein, in connection with the issuance of debt
securities secured by mortgage bonds; and
(viii) Liens, including, without limitation, Liens
arising in connection with a Receivables Purchase Facility,
securing Debt of the Borrower (other than Debt of the Borrower
owed to any Subsidiary) and/or securing Debt of the Borrower's
Subsidiaries (other than Debt of any Subsidiary owed to the
Borrower or any other Subsidiary), in an aggregate outstanding
amount not to exceed ten percent (10%) of the consolidated
assets of the Borrower and its Subsidiaries at any time.
(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 any Significant
Subsidiary to do so, except that (i) any Significant Subsidiary may merge or
consolidate with or into any other Significant Subsidiary, (ii) any Significant
Subsidiary may merge into or dispose of assets to the Borrower, and (iii) the
Borrower may merge or consolidate with (a) DECO, so long as the Borrower shall
be the surviving entity or DECO shall expressly assume the obligations under
this Agreement or (b) any other Person so long as the Borrower shall be the
surviving entity and has, after giving effect to such merger or consolidation,
senior unsecured Debt outstanding rated at least BBB- by S&P and Baa3 by
Xxxxx'x; provided, in each case, that no Default shall have occurred and be
continuing at the time of such proposed transaction or would result therefrom.
31
(c) Change in Nature of Business. Make, or permit any of
its Significant Subsidiaries to make, any material change in the nature of its
business as carried on the date hereof, other than as disclosed or contemplated
in the SEC Reports.
(d) Accounting Changes. Make or permit, or permit any of
its Subsidiaries to make or permit, any change in accounting policies or
reporting practices, except as required or permitted by generally accepted
accounting principles.
ARTICLE VI:
EVENTS OF DEFAULT
SECTION 6.01. Events of Default. If any of the following events
("Events of Default") shall occur and be continuing:
(a) The Borrower shall fail to pay any principal of any
Revolving Credit Advance when the same becomes due and payable; or the Borrower
shall fail to pay any interest on any Revolving Credit Advance or make any other
payment of fees or other amounts payable under this Agreement or any Note within
three Business Days after the same becomes due and payable; or
(b) Any representation or warranty made by the Borrower
herein, by the Borrower (or any of its officers) in connection with this
Agreement shall prove to have been incorrect in any material respect when made;
or
(c) (i) The Borrower shall fail to perform or observe any
term, covenant or agreement contained in Section 2.09(b), 5.01(d), (e) or (h) or
5.02, or (ii) the Borrower shall fail to perform or observe any other term,
covenant or agreement contained in any Loan Document on its part to be performed
or observed if such failure shall remain unremedied for 10 days after written
notice thereof shall have been given to the Borrower by the Agent or any Lender;
or
(d) The Borrower or any of its Significant Subsidiaries
shall fail to pay any principal of or premium or interest on any Debt that is
outstanding in a principal or notional amount of at least $25,000,000 in the
aggregate (but excluding Debt outstanding hereunder and Nonrecourse Debt) of the
Borrower or such Significant Subsidiary (as the case may be), when the same
becomes due and payable (whether by scheduled maturity, required prepayment,
acceleration, demand or otherwise), and such failure shall continue after the
applicable grace period, if any, specified in the agreement or instrument
relating to such Debt; or any other event shall occur or condition shall exist
under any agreement or instrument relating to any such Debt 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, or to
permit the acceleration of, the maturity of such Debt; or any such Debt shall be
declared to be due and payable, or required to be prepaid or redeemed (other
than by a regularly scheduled required prepayment or redemption), purchased or
defeased, or an offer to prepay, redeem, purchase or defease such Debt shall be
required to be made, in each case prior to the stated maturity thereof; or
(e) The Borrower or any of its Significant 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
32
be instituted by or against the Borrower or any of its Significant 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 30 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 Significant Subsidiaries
shall take any corporate action to authorize any of the actions set forth above
in this subsection (e); or
(f) Any judgment or order for the payment of money,
individually or in the aggregate, in excess of $25,000,000 shall be rendered
against the Borrower or any of its Significant Subsidiaries and either (i)
enforcement proceedings shall have been commenced by any creditor upon such
judgment or order or (ii) there shall be any period of 10 consecutive days
during which a stay of enforcement of such judgment or order, by reason of a
pending appeal or otherwise, shall not be in effect; or
(g) Any non-monetary judgment or order shall be rendered
against the Borrower or any of its Significant Subsidiaries that could be
reasonably expected to have a Material Adverse Effect, and there shall be any
period of 10 consecutive days during which a stay of enforcement of such
judgment or order, by reason of a pending appeal or otherwise, shall not be in
effect; or
(h) (i) any Person or "group" (within the meaning of
Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended) shall
either (A) acquire beneficial ownership of more than 25% of any outstanding
class of common stock of DTE Energy having ordinary voting power in the election
of directors of DTE Energy, or (B) obtain the power (whether or not exercised)
to elect a majority of DTE Energy's directors, or (ii) DTE Energy shall at any
time cease to hold 100% of the Voting Stock of the Borrower; or
(i) The Borrower or any of its ERISA Affiliates shall
incur, or, in the reasonable opinion of the Required Lenders, shall be
reasonably likely to incur liability in excess of $25,000,000 individually or in
the aggregate 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 any
of its ERISA Affiliates from a Multiemployer Plan; or (iii) the reorganization
or termination of a Multiemployer Plan; or
(j) The Borrower and its Subsidiaries, on a Consolidated
basis, shall at any time cease to:
(i) Maintain a ratio of Consolidated
EBITDA to interest expense on all Debt
(excluding (A) all Nonrecourse Debt of the
Borrower and its Subsidiaries, (B) Excluded
Hedging Debt and (C) the Junior Subordinated
Debt) of not less than 2:1 for each
twelve-
33
month period ending on the last day of
September, December, March and June of each
year, or
(ii) Maintain a ratio of Consolidated
Debt (excluding (A) all Nonrecourse Debt of
the Borrower and its Subsidiaries, (B)
Excluded Hedging Debt and (C) the Junior
Subordinated Debt) to Capitalization of not
greater than .65:1; or
(k) any provision of any of the Loan Documents after
delivery thereof pursuant to Section 3.01 shall for any reason cease to be valid
and binding on or enforceable against the Borrower, or the Borrower shall so
state in writing;
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 Revolving Credit 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 Revolving Credit Advances, all interest thereon and all other
amounts payable under this Agreement to be forthwith due and payable, whereupon
the Revolving Credit Advances, 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 by the
Borrower; provided, however, that in the event of an actual or deemed entry of
an order for relief with respect to the Borrower under the Federal Bankruptcy
Code, (A) the obligation of each Lender to make Revolving Credit Advances shall
automatically be terminated and (B) the Revolving Credit Advances, 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 by the Borrower.
ARTICLE VII:
THE AGENT
SECTION 7.01. 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
Revolving Credit Advances), 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 (or all of the Lenders to the
extent required by the terms of this Agreement), and such instructions shall be
binding upon all Lenders and all holders of Revolving Credit Advances; provided,
however, that the Agent shall not be required to 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.
SECTION 7.02. 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
34
willful misconduct. Without limitation of the generality of the foregoing, the
Agent: (i) may treat the payee in respect of any Revolving Credit Advance as the
owner thereof until the Agent receives and accepts an Assignment and Acceptance
entered into by the Lender that is the payee in respect of such Revolving Credit
Advance, as assignor, and an Eligible Assignee, as assignee, as provided in
Section 8.07; (ii) 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; (iii)
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; (iv) 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;
(v) shall not be responsible to any Lender for the due execution, legality,
validity, enforceability, genuineness, sufficiency or value of, or the
perfection or priority of any lien or security interest created or purported to
be created under or in connection with, any Loan Document or any other
instrument or document furnished pursuant hereto; and (vi) 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.
SECTION 7.03. Bank One and Affiliates. With respect to its Commitment,
the Revolving Credit Advances made by it and any Note issued to it, Bank One
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 Bank One in
its individual capacity. Bank One 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, any of its Subsidiaries and any Person who may do business with or own
securities of the Borrower or any such Subsidiary, all as if Bank One were not
the Agent and without any duty to account therefor to the Lenders.
SECTION 7.04. 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 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.
SECTION 7.05. Indemnification. The Lenders agree to indemnify the Agent
(to the extent not reimbursed by the Borrower), ratably according to the
respective principal amounts of their respective Revolving Credit Advances (or
if no Revolving Credit Advances are at the time outstanding or if any Revolving
Credit Advances are owing to Persons that are not Lenders, ratably according to
the respective amounts of 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
35
against the Agent in any way relating to or arising out of any Loan Document or
any action taken or omitted by the Agent under any Loan Document, 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, any Loan
Document, to the extent that the Agent is not reimbursed for such expenses by
the Borrower.
SECTION 7.06. 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. 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
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 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.
ARTICLE VIII:
MISCELLANEOUS
SECTION 8.01. Amendments, Etc. No amendment or waiver of any provision
of this Agreement or the 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 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 no amendment, waiver or consent shall, unless in
writing and signed by all the Lenders, do any of the following: (a) waive any of
the conditions specified in Section 3.01, (b) increase the Commitments of the
Lenders or subject the Lenders to any additional obligations, (c) reduce the
principal of, or interest on, the Revolving Credit Advances or any fees or other
amounts payable hereunder, (d) except as provided in Section 2.16, postpone any
date fixed for any payment of principal of, or interest on, the Revolving Credit
Advances or any fees or other amounts payable hereunder, (e) change the
percentage of the Commitments or of the aggregate unpaid principal amount of the
Revolving Credit Advances, or the number of Lenders, that shall be required for
the Lenders or any of them to take any action hereunder or (f) amend this
Section 8.01; and provided further that no amendment, waiver or consent shall,
unless in writing and signed by the Agent in addition to the
36
Lenders required above to take such action, affect the rights or duties of the
Agent under this Agreement or any Note.
SECTION 8.02. Notices, Etc. All notices and other communications
provided for hereunder shall be in writing (including telecopier, telegraphic or
telex communication) and mailed, telecopied, telegraphed, telexed or delivered,
if to the Borrower, at its address at 0000 0xx Xxxxxx, Xxxxxxx, XX 00000,
Attention: Treasurer; 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 Assignment and Acceptance pursuant to
which it became a Lender; and if to the Agent, at its address at Xxx Xxxx Xxx
Xxxxx, Xxxxxxx Xxxxxxxx, 00000, Attention: Xxxx Xxxxxx; 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 other party, at such other
address as shall be designated by such party in a written notice to the Borrower
and the Agent. All such notices and communications shall, when mailed,
telecopied, telegraphed or telexed, be effective when deposited in the mails,
telecopied, delivered to the telegraph company or confirmed by telex answerback,
respectively, except that notices and communications to the Agent pursuant to
Article II, III or VII shall not be effective until received by the Agent.
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 a manually
executed counterpart thereof.
SECTION 8.03. 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.
SECTION 8.04. Costs and Expenses. (a) The Borrower agrees to pay on
demand, upon presentation of a statement of account and absent manifest error,
all reasonable costs and reasonable expenses of the Agent in connection with the
preparation, execution, delivery, administration, modification and amendment of
this Agreement, the Notes, each other Loan Document and the other documents to
be delivered hereunder and thereunder, including, without limitation, (A) all
due diligence, syndication (including printing, distribution and bank meetings),
transportation, computer, duplication, appraisal, consultant, and audit expenses
and (B) the reasonable fees and reasonable expenses of counsel for the Agent
with respect thereto and with respect to advising the Agent as to its rights and
responsibilities under the Loan Documents. The Borrower further agrees to pay on
demand all reasonable costs and reasonable expenses of the Agent and the
Lenders, if any (including, without limitation, reasonable internal and external
counsel fees and expenses, provided such fees and expenses are not duplicative),
in connection with the "workout", restructuring or 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, to the extent
legally permissible, 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
37
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, the other Loan
Documents, any of the transactions contemplated herein or therein or the actual
or proposed use of the proceeds of the Revolving Credit 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 is found in a final, non-appealable
judgment by a court of competent jurisdiction to have resulted from such
Indemnified Party's gross negligence or willful misconduct. 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, the other Loan Documents, any of the transactions contemplated herein
or therein or the actual or proposed use of the proceeds of the Revolving Credit
Advances.
(c) If any payment of principal of, or Conversion of, any
Eurodollar Rate Advance is made by the Borrower to or for the account of a
Lender other than on the last day of the Interest Period for such Revolving
Credit Advance, as a result of a payment or Conversion pursuant to Section
2.07(d) or (e), 2.09 or 2.11, acceleration of the maturity of the Revolving
Credit Advances pursuant to Section 6.01, or for any other reason, 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 (including 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 Revolving Credit 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 2.10, 2.13 and 8.04 shall survive the payment in
full of principal, interest and all other amounts payable hereunder and under
the Notes.
SECTION 8.05. Right of Set-off. Upon (i) the occurrence and during the
continuance of any Event of Default and (ii) the making of the request or the
granting of the consent specified by Section 6.01 to authorize the Agent to
declare the Revolving Credit Advances due and payable pursuant to the provisions
of 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 the Loan Documents and any Note
38
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 are in addition to other rights and remedies
(including, without limitation, other rights of set-off) that such Lender and
its Affiliates may have.
SECTION 8.06. Binding Effect. This Agreement shall become effective
(other than Section 2.01, 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 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 to any Person.
SECTION 8.07. Assignments, Designations and Participations. (a) Each
Lender may, with the prior consent of the Agent (which consent shall not be
unreasonably withheld) and (for so long as no Default has occurred and is
continuing) the Borrower (which consent shall not be unreasonably withheld)
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 owed to it and any Note or Notes held
by it); provided, however, that (i) each such assignment shall be of a constant,
and not a varying, percentage of all rights and obligations under this Agreement
and, for so long as no Default has occurred and is continuing, shall be made
concurrently with an assignment in a ratable amount of such Lender's rights and
obligations under the Three-Year Agreement (including, without limitation, all
or a portion of its "Commitment", "Revolving Credit Advances" owed to it and any
"Note" or "Notes" held by it under (and as each such term is defined in) the
Three-Year Agreement), (ii) 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 $10,000,000 or an
integral multiple of $1,000,000 in excess thereof, (iii) each such assignment
shall be to an Eligible Assignee, and (iv) 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 Note subject to such
assignment and a processing and recordation fee of $3,000. Upon such execution,
delivery, acceptance and recording, from and after the effective date specified
in each Assignment and Acceptance, (x) the assignee thereunder shall be a party
hereto and, to the extent that rights and obligations hereunder have been
assigned to it pursuant to such Assignment and Acceptance, have the rights and
obligations of a Lender hereunder and (y) 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 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).
39
(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, or the perfection or priority of any lien or security
interest created or purported to be created under or in connection with, 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 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 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; 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 and an assignee representing that it is an
Eligible Assignee, together with any Note or 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 the Borrower's receipt of such notice, if requested by the applicable
Lender, the Borrower, at its own expense, shall execute and deliver to the Agent
in exchange for the surrendered Note a new Note 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, if requested by such assigning Lender, a new Note to the order of the
assigning Lender in an amount equal to the Commitment retained by it hereunder.
Such new Note or Notes shall be in an aggregate principal amount equal to the
aggregate principal amount of such surrendered Note or Notes, shall be dated the
effective date of such Assignment and Acceptance and shall otherwise be in
substantially the form of Exhibit A 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 and
Commitment of, and principal amount of Revolving Credit 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
40
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 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
Revolving Credit Advances owing to it and any Note or 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 owner of such Revolving Credit Advances 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 and (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 to the extent that such amendment, waiver or
consent would (A) reduce the principal of, or interest on, the Revolving Credit
Advances or any fees or other amounts payable hereunder, or (B) increase the
Commitments, 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
Revolving Credit Advances or any fees or other amounts payable hereunder, in
each case to the extent subject to such participation. Each participant shall be
entitled to the benefits of Sections 2.10, 2.11 and 2.13 to the same extent as
if it were a Lender and had acquired its interest under this Agreement by an
assignment made pursuant to this Section 8.07, provided, however, that in no
event shall the Borrower be obligated to make any payment with respect to such
Sections that is greater than the amount that the Borrower would have otherwise
made had no participations been sold under this Section 8.07(e).
(f) Any Lender may, in connection with any assignment,
designation or participation or proposed assignment, designation or
participation pursuant to this Section 8.07, disclose to the assignee, designee
or participant or proposed assignee, designee or participant, any information
relating to the Borrower furnished to such Lender by or on behalf of the
Borrower; provided that, prior to any such disclosure, the assignee, designee or
participant or proposed assignee, designee or participant shall agree to
preserve the confidentiality of any Confidential Information relating to the
Borrower received by it from such Lender.
(g) Notwithstanding any other provision set forth in this
Agreement, any Lender may at any time (i) create a security interest in all or a
portion of its rights under this Agreement (including, without limitation, the
Revolving Credit Advances owing to it and the Note or Notes held by it) in favor
of any Federal Reserve Bank in accordance with Regulation A of the Board of
Governors of the Federal Reserve System or (ii) with notice to the Agent and the
Borrower, assign 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 owed to it and the Note or Notes held by it) to
any of its Affiliates.
(h) Notwithstanding anything to the contrary contained
herein, any Lender (a "Designating Lender") may grant to one or more special
purpose funding vehicles (each an
41
"SPV"), identified as such in writing from time to time by the Designating
Lender to the Agent and the Borrower, the option to provide to the Borrower all
or any part of any Revolving Credit Advance that such Designating Lender would
otherwise be obligated to make to the Borrower pursuant to this Agreement;
provided that (i) nothing herein shall constitute a commitment by any SPV to
make any Revolving Credit Advance, (ii) if an SPV elects not to exercise such
option or otherwise fails to provide all or any part of such Revolving Credit
Advance, the Designating Lender shall be obligated to make such Revolving Credit
Advance pursuant to the terms hereof, (iii) the Designating Lender shall remain
liable for any indemnity or other payment obligation with respect to its
Commitment hereunder and (iv) no SPV or Designating Lender shall be entitled to
receive any greater amount under this Agreement than the Designating Lender
would have been entitled to receive had the Designating Lender not otherwise
granted such SPV the option to provide any Revolving Credit Advance to the
Borrower. The making of a Revolving Credit Advance by an SPV hereunder shall
utilize the Commitment of the Designating Lender to the same extent, and as if,
such Revolving Credit Advance were made by such Designating Lender.
(i) Each party hereto hereby acknowledges and agrees that
no SPV shall have the rights of a Lender hereunder, such rights being retained
by the applicable Designating Lender. Accordingly, and without limiting the
foregoing, each party hereby further acknowledges and agrees that no SPV shall
have any voting rights hereunder and that the voting rights attributable to any
Revolving Credit Advance made by an SPV shall be exercised only by the relevant
Designating Lender and that each Designating Lender shall serve as the
administrative agent and attorney-in-fact for its SPV and shall on behalf of its
SPV receive any and all payments made for the benefit of such SPV and take all
actions hereunder to the extent, if any, such SPV shall have any rights
hereunder. No additional Note shall be required to evidence the Revolving Credit
Advances or portion thereof made by an SPV; and the related Designating Lender
shall be deemed to hold its Note or Notes, if any, as administrative agent for
such SPV to the extent of the Revolving Credit Advances or portion thereof
funded by such SPV. In addition, any payments for the account of any SPV shall
be paid to its Designating Lender as administrative agent for such SPV.
(j) Each party hereto hereby agrees that no SPV shall be
liable for any indemnity or payment under this Agreement for which a Lender
would otherwise be liable so long as, and to the extent that, the related
Designating Lender provides such indemnity or makes such payment; provided, with
respect to such agreement by the Borrower that the related Designating Lender
shall not be in breach of its obligation to make Revolving Credit Advances to
the Borrower hereunder. In furtherance of the foregoing, each party hereto
hereby agrees (which agreements shall survive the termination of this Agreement)
that prior to the date that is one year and one day after the payment in full of
all outstanding commercial paper or other senior indebtedness of any SPV, it
will not institute against, or join any other person in instituting against,
such SPV any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings under the laws of the United States or any State thereof; provided,
with respect to such agreement by the Borrower that the related Designating
Lender shall not be in breach of its obligation to make Revolving Credit
Advances to the Borrower hereunder. Notwithstanding the foregoing, the
Designating Lender unconditionally agrees to indemnify the Borrower, the Agent
and each Lender against all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind or nature whatsoever which may
42
be incurred by or asserted against the Borrower, the Agent or such Lender, as
the case may be, in any way relating to or arising as a consequence of any such
forbearance or delay in the initiation of any such proceeding against its SPV.
(k) In addition, notwithstanding anything to the contrary
contained in subsection 8.07(h), (i), (j) or (k) or otherwise in this Agreement,
any SPV may (i) at any time and without paying any processing fee therefor,
assign or participate all or a portion of its interest in any Revolving Credit
Advances to the Designating Lender or to any financial institutions providing
liquidity and/or credit support to or for the account of such SPV to support the
funding or maintenance of Revolving Credit Advances and (ii) disclose on a
confidential basis any non-public information relating to its Revolving Credit
Advances to any rating agency, commercial paper dealer or provider of any
surety, guarantee or credit or liquidity enhancements to such SPV. Subsection
8.07(h), (i), (j) or (k) may not be amended without the written consent of any
Designating Lender affected thereby.
SECTION 8.08. Confidentiality. Neither the Agent nor any Lender shall
disclose any Confidential Information to any other Person without the consent of
the Borrower, other than (a) to the Agent's or such Lender's Affiliates and
their officers, directors, employees, agents and advisors and, as contemplated
by Section 8.07(f), to actual or prospective assignees and participants, and
then only on a confidential basis, (b) as required by any law, rule or
regulation or judicial process, (c) to any rating agency when required by it,
provided that, prior to any such disclosure, such rating agency shall undertake
to preserve the confidentiality of any Confidential Information relating to the
Borrower received by it from such Lender, (d) as requested or required by any
state, federal or foreign authority or examiner regulating banks or banking, and
(e) on a confidential basis to any Lender's direct or indirect contractual
counterparties in swap agreements or to legal counsel, accountants and other
professional advisors to such counterparties. Notwithstanding anything herein to
the contrary, Confidential Information shall not include, and each party hereto
(and each employee, representative or other agent of any party hereto) may
disclose to any and all persons, without limitation of any kind, the U.S.
federal income tax treatment and U.S. federal income tax structure of the
transactions contemplated hereby and all materials of any kind (including
opinions or other tax analyses) that are or have been provided to such party
relating to such tax treatment or tax structure, and it is hereby confirmed that
each party hereto has been authorized to make such disclosures since the
commencement of discussions regarding the transactions contemplated hereby.
SECTION 8.09. Governing Law. This Agreement and the Notes shall be
governed by, and construed in accordance with, the laws of the State of New
York.
SECTION 8.10. 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 a manually executed counterpart of
this Agreement.
SECTION 8.11. Jurisdiction, Etc. (a) Each of the parties hereto hereby
irrevocably and unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of any
43
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.
SECTION 8.12. 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.
REMAINDER OF PAGE INTENTIONALLY BLANK
44
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.
MICHIGAN CONSOLIDATED GAS COMPANY
By /s/ X.X. Xxxxxx
------------------------------
Name: X.X. Xxxxxx
Title: Assistant Treasurer
Lenders
BANK ONE, NA (MAIN OFFICE - CHICAGO),
Individually and as Administrative
Agent
By /s/ Xxxx Xxx Xxxx
------------------------------
Name: Xxxx Xxx Xxxx
Title: Director
BARCLAYS BANK PLC, as Co-Syndication
Agent and as a Lender
By /s/ Sydney X. Xxxxxx
-------------------------------
Name: Sydney X. Xxxxxx
Title: Director
CITIGROUP GLOBAL MARKETS INC., as
Co-Syndication Agent
By /s/ Xxxxx X. Xxxxxxxx
---------------------------------
Name: Xxxxx X. Xxxxxxxx
Title: Vice President
CITIBANK, N.A., as a Lender
By /s/ Xxxxx X. Xxxxxxxx
-------------------------------
Name: Xxxxx X. Xxxxxxxx
Title: Vice President
UBS LOAN FINANCE LLC, as a Lender
By /s/ Xxxxxxx X. Xxxxxx
---------------------------------
Name: Xxxxxxx X. Xxxxxx
Title: Associate Director,
Banking Products Services, US
By /s/ Xxxxxxx X. Saint
-------------------------------
Name: Xxxxxxx X. Saint
Title: Associate Director, Banking
Products Services, US
KEY BANK NATIONAL ASSOCIATION, as a
Lender
By /s/ Xxxxxxxx X. Xxxx
-----------------------------
Name: Xxxxxxxx X. Xxxx
Title: Senior Vice President
THE BANK OF NEW YORK, as a Lender
By /s/ Xxxxxxx X. Xxxxxxx
-------------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Vice President
COMERICA BANK, as a Lender
By /s/ Xxxxx X. Xxxx
-------------------------------
Name: Xxxxx X. Xxxx
Title: Vice President
THE BANK OF NOVA SCOTIA, as a Lender
By /s/ Xxxxx X. X'Xxxxx
-------------------------------
Name: Xxxxx X. X'Xxxxx
Title: Managing Director
BNP PARIBAS, as a Lender
By /s/ Xxxxxxx XxXxxxx
------------------------------
Name: Xxxxxxx XxXxxxx
Title: Director
By /s/ Xxxx Xxxxxx
-------------------------------
Name: Xxxx Xxxxxx
Title: Managing Director
CREDIT SUISSE FIRST BOSTON, acting
through its Cayman Islands Branch, as a
Lender
By /s/ Xxxxx Xx
--------------------------------
Name: Xxxxx Xx
Title: Vice President
By /s/ Xxx Xxxxx
-------------------------------
Name: Xxx Xxxxx
Title: Director
UNION BANK OF CALIFORNIA, N.A., as a
Lender
By /s/ Xxxxx X. Xxxxx
---------------------------
Name: Xxxxx X. Xxxxx
Title: Vice President
DEUTSCHE BANK AG, NEW YORK BRANCH, as a
Lender
By /s/ Xxxxxxx Xxxxxxxx
----------------------------
Name: Xxxxxxx Xxxxxxxx
Title: Director
By /s/ Xxxx Xxxxxxxx
------------------------------
Name: Xxxx Xxxxxxxx
Title: Director
MELLON BANK, N.A., as a Lender
By /s/ Xxxxx Xxxxxxxxx
-----------------------------
Name: Xxxxx Xxxxxxxxx
Title: Vice President
XXXXXX XXXXXXX BANK, as a Lender
By /s/ Jaap L. Tonckens
-------------------------------
Name: Jaap L. Tonckens
Title: Vice President
JPMORGAN CHASE BANK, as a Lender
By /s/ Xxxxxx X. Xxx
------------------------------
Name: Xxxxxx X. Xxx
Title: Vice President
FIFTH THIRD BANK, EASTERN MICHIGAN, as
a Lender
By /s/ Xxxxxxx Xxxxxx
------------------------------
Name: Xxxxxxx Xxxxxx
Title: Vice President
XXXXXX BROTHERS BANK, FSB, as a Lender
By /s/ Xxxx X. Xxxxxx
-----------------------------
Name: Xxxx X. Xxxxxx
Title: Vice President
STANDARD FEDERAL BANK, N.A., as a
Lender
By /s/ Xxxxxxx X. Xxxxxxxx, III
---------------------------------
Name: Xxxxxxx X. Xxxxxxxx, III
Title: First Vice President
THE NORTHERN TRUST COMPANY, as a Lender
By /s/ Xxxxxxx X. Xxxxxxx
------------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Vice President - Credit
FIRST INDEPENDENCE NATIONAL BANK OF
DETROIT, as a Lender
By /s/ Xxxxx Xxxxxxx
------------------------------
Name: Xxxxx Xxxxxxx
Title: Vice President
SCHEDULE I
MICHIGAN CONSOLIDATED GAS COMPANY
APPLICABLE LENDING OFFICES
NAME OF INITIAL LENDER DOMESTIC LENDING OFFICE EURODOLLAR LENDING OFFICE COMMITMENT
----------------------------------------------------------------------------------------------------------------
Bank One, NA One Bank One Plaza Same as Domestic Lending $ 14,375,000.00
Xxxxx 0000 Xxxxxx
Xxxxxxx, XX 00000
Attention: Xxxxxx Xxxxxxxxxxxx
Telecopier: (000) 000-0000
----------------------------------------------------------------------------------------------------------------
Barclays Bank PLC 000 Xxxx Xxxxxx Same as Domestic Lending $ 14,375,000.00
Xxx Xxxx, XX 00000 Office
Attention: Xxxxxx Xxxxxx/
Xxxx Xxxxxxx
Telecopier: (000) 000-0000
----------------------------------------------------------------------------------------------------------------
Citibank, N.A. 000 Xxxxxxxxx Xxxxxx Same as Domestic Lending $ 14,375,000.00
00xx Xxxxx Xxxxxx
Xxx Xxxx, XX 00000
Attention: Xxxxx Xxxxxxxxxxx
Telecopier: (000) 000-0000
----------------------------------------------------------------------------------------------------------------
UBS Loan Finance LLC 000 Xxxxxxxxxx Xxxxxxxxx Same as Domestic Lending $ 14,375,000.00
Xxxxxxxx, XX 00000 Office
Attention: Xxxxxx Xxxxx
Telecopier: (000) 000-0000
----------------------------------------------------------------------------------------------------------------
Key Bank National Association 000 Xxxxxx Xxxxxx Same as Domestic Lending $ 11,687,500.00
Xxxxxxxxx, XX 00000 Office
Attention: Xxxxx Xxxxxxx
Telecopier: (000) 000-0000
----------------------------------------------------------------------------------------------------------------
The Bank of New York One Wall Street Same as Domestic Lending $ 10,000,000.00
Xxx Xxxx, XX 00000 Office
Attention: Xxxxx D'Xxxxx
Telecopier: (000) 000-0000
----------------------------------------------------------------------------------------------------------------
Comerica Bank 000 Xxxxxxxx Xxxxxx Same as Domestic Lending $ 10,000,000.00
XX 0000 Xxxxxx
Xxxxxxx, XX 00000
Attention: Xxxxx X. Xxxx
Telecopier: (000) 000-0000
----------------------------------------------------------------------------------------------------------------
The Bank of Nova Scotia 000 Xxxxxxxxx Xxxxxx XX Same as Domestic Lending $ 10,000,000.00
Xxxxx 0000 Xxxxxx
Xxxxxxx, XX 00000
Attention: Mystro Xxxxxxx
Telecopier: (000) 000-0000
----------------------------------------------------------------------------------------------------------------
BNP Paribas 000 Xxxxxxx Xxxxxx Same as Domestic Lending $ 10,000,000.00
Xxx Xxxx, XX 00000 Office
Attention: Xxxxx Xxxxxx
Telecopier: (000) 000-0000
----------------------------------------------------------------------------------------------------------------
NAME OF INITIAL LENDER DOMESTIC LENDING OFFICE EURODOLLAR LENDING OFFICE COMMITMENT
----------------------------------------------------------------------------------------------------------------
Credit Suisse First Boston, 00 Xxxxxxx Xxxxxx Same as Domestic Lending $ 10,000,000.00
acting through its Cayman Xxx Xxxx, XX 00000 Office
Islands Branch Attention: Xxxxxx Xxxxxx
Telecopier: (000) 000-0000
----------------------------------------------------------------------------------------------------------------
Union Bank of California, N.A. Energy Capital Services Same as Domestic Lending $ 8,125,000.00
000 X. Xxxxxxxx Xxxxxx, 00xx Xxxxxx
Xxxxx
Xxx Xxxxxxx, XX 00000
Attention: Xxxxxx Xxxxx
Telecopier: (000) 000-0000
----------------------------------------------------------------------------------------------------------------
Deutsche Bank AG, New York 00 Xxxx Xxxxxx Same as Domestic Lending $ 5,625,000.00
Branch 00xx Xxxxx Xxxxxx
Xxx Xxxx, XX 00000
Attention: Xxxx Xxxxxxxx
Telecopier: (000) 000-0000
----------------------------------------------------------------------------------------------------------------
Mellon Bank, N.A. 3 Mellon Center - Room 1203 Same as Domestic Lending $ 5,625,000.00
Xxxxxxxxxx, XX 00000 Office
Attention: Xxxxxx Leiersapf
Telecopier: (000) 000-0000
----------------------------------------------------------------------------------------------------------------
Xxxxxx Xxxxxxx Bank 0000 Xxxx Xxxx Xxxxxxxxx Same as Domestic Lending $ 5,625,000.00
Xxxxx 000X Xxxxxx
Xxxx Xxxxxx Xxxx, XX 00000
Attention: Xxxxx Xxxxxxx
Telecopier: (000) 000-0000
----------------------------------------------------------------------------------------------------------------
JPMorgan Chase Bank 000 Xxxx Xxxxxx Same as Domestic Lending $ 5,625,000.00
0xx Xxxxx Xxxxxx
Xxx Xxxx, XX 00000
Attention: Xxxxxx X. Xxxxx
Telecopier: (000)000-0000
----------------------------------------------------------------------------------------------------------------
Fifth Third Bank, Eastern c/o Madisonville Operations Same as Domestic Lending $ 5,000,000.00
Xxxxxxxx Xxxxxx Xxxxxx
XX 0X0X0X
Xxxxxxxxxx, XX 00000-0000
Attention: Xxxx Xxxxxxx
Telecopier: (000) 000-0000
----------------------------------------------------------------------------------------------------------------
Xxxxxx Brothers Bank, FSB 000 Xxxxxxx Xxxxxx Same as Domestic Lending $ 3,125,000.00
0xx Xxxxx Xxxxxx
Xxx Xxxx, XX 00000
Attention: Xxxx Xxxxxxx
Telecopier: (000) 000-0000
----------------------------------------------------------------------------------------------------------------
Standard Federal Bank, N.A. 2600 W. Big Beaver Same as Domestic Lending $ 2,500,000.00
Xxxx, XX 00000 Office
Attention: Xxxxxx Xxxxx
Telecopier: (000) 000-0000
----------------------------------------------------------------------------------------------------------------
The Northern Trust Company 00 X. XxXxxxx Xxxxxx Same as Domestic Lending $ 1,875,000.00
Xxxxxxx, XX 00000 Office
Attention: Funding Contact
Telecopier: (000) 000-0000
----------------------------------------------------------------------------------------------------------------
First Independence National 00 Xxxxxxxx Xxxxxx Same as Domestic Lending $ 187,500.00
Bank of Detroit Xxxxxxx, XX 00000 Office
Attention: Xxxxxxx X. Xxxxxx
Telecopier: (000) 000-0000
----------------------------------------------------------------------------------------------------------------
Total: $162,500,000.00
----------------------------------------------------------------------------------------------------------------
PRICING SCHEDULE
LEVEL I STATUS LEVEL II STATUS LEVEL III STATUS LEVEL IV STATUS LEVEL V STATUS
-----------------------------------------------------------------------------------------------------------------------------
Applicable Percentage 0.125% 0.150% 0.175% 0.250% 0.400%
-----------------------------------------------------------------------------------------------------------------------------
Applicable Margin (Eurodollar Rate) 0.750% 0.850% 0.950% 1.125% 1.975%
-----------------------------------------------------------------------------------------------------------------------------
Applicable Utilization Fee 0.125% 0.125% 0.125% 0.125% 0.250%
-----------------------------------------------------------------------------------------------------------------------------
Applicable Margin (Base Rate) 0.0% 0.0% 0.0% 0.0% 0.0%
-----------------------------------------------------------------------------------------------------------------------------
For the purposes of this Schedule, the following terms have
the following meanings, subject to the final paragraph of this Schedule:
"Level I Status" exists at any date if, on such date, the
Borrower's Xxxxx'x Rating is A3 or better or the Borrower's S&P Rating is A- or
better.
"Level II Status" exists at any date if, on such date, (i) the
Borrower has not qualified for Level I Status and (ii) the Borrower's Xxxxx'x
Rating is Baa1 or better or the Borrower's S&P Rating is BBB+ or better.
"Level III Status" exists at any date if, on such date, (i)
the Borrower has not qualified for Level I Status or Level II Status and (ii)
the Borrower's Xxxxx'x Rating is Baa2 or better or the Borrower's S&P Rating is
BBB or better.
"Level IV Status" exists at any date if, on such date, (i) the
Borrower has not qualified for Level I Status, Level II Status or Level III
Status and (ii) the Borrower's Xxxxx'x Rating is Baa3 or better or the
Borrower's S&P Rating is BBB- or better.
"Level V Status" exists at any date if, on such date, the
Borrower has not qualified for Level I Status, Level II Status, Level III or
Level IV Status.
"Xxxxx'x Rating" means, at any time, the rating that is one
level below the rating issued by Xxxxx'x and then in effect with respect to the
Borrower's senior secured long-term debt securities without third-party credit
enhancement.
"S&P Rating" means, at any time, the rating that is one level
below the rating issued by S&P and then in effect with respect to the Borrower's
senior secured long-term debt securities without third-party credit enhancement.
"Status" means Level I Status, Level II Status, Level III
Status, Level IV Status or Level V Status.
The Applicable Margin, Applicable Utilization Fee and
Applicable Percentage shall be determined in accordance with the foregoing table
based on the Borrower's Status as determined from its then-current Xxxxx'x
Rating and S&P Rating. The credit rating in effect on any date for the purposes
of this Schedule is that in effect at the close of business on such date. If at
any time the Borrower does not have both a Xxxxx'x Rating and an S&P Rating,
Level V Status shall exist.
In the event that a split occurs between the two ratings, then
the Status corresponding to the lower of the two ratings shall apply. However,
if the split is greater than one level, then the pricing shall be based upon the
Status one level above the Status corresponding to the lower of the two ratings.
EXHIBIT A - FORM OF
REVOLVING CREDIT
PROMISSORY NOTE
U.S.$_____________ Dated: ___________, 2003
FOR VALUE RECEIVED, the undersigned, MICHIGAN CONSOLIDATED GAS
COMPANY, a Michigan corporation (the "Borrower"), HEREBY PROMISES TO PAY to the
order of _________________________ (the "Lender") for the account of its
Applicable Lending Office on the Revolver 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 364-Day Credit Agreement dated as of October 24, 2003 (as amended or
modified from time to time, the "Credit Agreement"; the terms defined therein
being used herein as therein defined) among the Borrower, the Lender and certain
other lenders parties thereto, and Bank One, NA (Main Office - Chicago), as
Agent for the Lender and such other lenders outstanding on the Revolver
Termination Date.
The Borrower promises to pay interest on the unpaid principal
amount of each Revolving Credit Advance from the date of such Revolving Credit
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 Bank One, NA (Main Office - Chicago), as Agent, at
Xxx Xxxx Xxx Xxxxx, Xxxxxxx Xxxxxxxx, 00000, Account No.4811-5286-0000,
Attention: Xxxxxx Xxxxxxxxxxxx, 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 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 Revolving Credit 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.
MICHIGAN CONSOLIDATED GAS
COMPANY
By ________________________
Title:
ADVANCES AND PAYMENTS OF PRINCIPAL
AMOUNT OF AMOUNT OF PRINCIPAL PAID OR UNPAID PRINCIPAL NOTATION
DATE ADVANCE PREPAID BALANCE MADE BY
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
EXHIBIT B - FORM OF NOTICE OF
REVOLVING CREDIT BORROWING
Bank One, NA (Main Office - Chicago), as Agent for
the Lenders parties to the Credit Agreement referred to below
Xxx Xxxx Xxx Xxxxx
Xxxxxxx, Xxxxxxxx 00000 [Date]
Attention: Xxxx Xxxxxx
Ladies and Gentlemen:
The undersigned, MICHIGAN CONSOLIDATED GAS COMPANY, refers to
the 364-Day Credit Agreement, dated as of October 24, 2003 (as amended or
modified from time to time, the "Credit Agreement"; the terms defined therein
being used herein as therein defined), among the undersigned, certain Lenders
parties thereto and Bank One, NA (Main Office - Chicago), as Agent for said
Lenders, and hereby gives you notice, irrevocably, pursuant to Section 2.02 of
the Credit Agreement that the undersigned hereby requests a Borrowing under the
Credit Agreement, and in that connection sets forth below the information
relating to such Borrowing (the "Proposed Borrowing") as required by Section
2.02(a) of the Credit Agreement:
(i) The Business Day of the Proposed Borrowing is
_______________, ____.
(ii) The Type of Advances comprising the Proposed
Borrowing is [Base Rate Advances] [Eurodollar Rate Advances].
(iii) The aggregate amount of the Proposed Borrowing is
$_______________.
[(iv) The initial Interest Period for each Eurodollar Rate
Advance made as part of the Proposed 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
Borrowing:
(A) the representations and warranties contained in
Section 4.01 of the Credit Agreement are correct, before and after
giving effect to the Proposed Borrowing and to the application of the
proceeds therefrom, as though made on and as of such date; and
(B) no event has occurred and is continuing, or would
result from such Proposed Borrowing or from the application of the
proceeds therefrom, that constitutes a Default.
Very truly yours,
MICHIGAN CONSOLIDATED GAS COMPANY
By ________________________________
Title:
EXHIBIT C - FORM OF
ASSIGNMENT AND ACCEPTANCE
Reference is made to the 364-Day Credit Agreement dated as of
October 24, 2003 (as amended or modified from time to time, the "364-Day Credit
Agreement") and to the Three-Year Credit Agreement dated October 24, 2003 (as
amended or modified from time to time, the "Three-Year Credit Agreement", and
together with the 364-Day Credit Agreement, the "Credit Agreements") each among
Michigan Consolidated Gas Company, a Michigan corporation (the "Borrower"), the
Lenders (as defined in the Credit Agreements) and Bank One, NA (Main Office -
Chicago) as agent for the Lenders (the "Agent"). Terms defined in each of the
Credit Agreements are used herein with the same meaning.
The "Assignor" and the "Assignee" referred to on Schedule 1
hereto agree as follows:
1. The Assignor hereby sells and assigns to the
Assignee, and the Assignee hereby purchases and assumes from the Assignor, (a)
an interest in and to the Assignor's rights and obligations under the 364-Day
Credit Agreement as of the date hereof equal to the percentage interest
specified on Schedule 1 hereto of all outstanding rights and obligations under
the 364-Day Credit Agreement, and (b) an interest in and to the Assignor's
rights and obligations under the Three-Year Credit Agreement as of the date
hereof equal to the percentage interest specified on Schedule 1 hereto of all
outstanding rights and obligations under the Three-Year Credit Agreement. After
giving effect to such sale and assignment, the Assignee's Commitment and the
amount of the Revolving Credit Advances owing to the Assignee under each of the
Credit Agreements 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 each of
the Credit Agreements or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of each of the Credit Agreements 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 each of the Credit Agreements or any other
instrument or document furnished pursuant thereto; and (iv) attaches the Note or
Notes held by the Assignor, if any, and requests that the Agent exchange such
Note or Notes for a new Note or Notes payable to the order of the Assignee in an
amount equal to the Commitment assumed by the Assignee pursuant hereto and the
applicable Credit Agreement or new Notes payable to the order of the Assignee in
an amount equal to the Commitment assumed by the Assignee pursuant hereto and
the applicable Credit Agreement and the Assignor in an amount equal to the
Commitment retained by the Assignor under the applicable Credit Agreement,
respectively, as specified on Schedule 1 hereto.
3. The Assignee (i) confirms that it has received a copy
of each of the Credit Agreements, together with copies of the financial
statements referred to in each Section 4.01 thereof 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 each of the Credit Agreements; (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 each of the
Credit Agreements 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 each of the Credit Agreements are required to be performed by it
as a Lender; and (vi) attaches any U.S. Internal Revenue Service forms required
under Section 2.13 of each of the Credit Agreements.
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 each of the Credit
Agreements 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
and be released from its obligations under each of the Credit Agreements.
6. Upon such acceptance and recording by the Agent, from
and after the Effective Date, the Agent shall make all payments under each of
the Credit Agreements and the Notes in respect of the interest assigned hereby
(including, without limitation, all payments of principal, interest, facility
fees and the Utilization Fee with respect thereto) to the Assignee. The Assignor
and Assignee shall make all appropriate adjustments in payments under each of
the Credit Agreements and the 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
364-Day Three-Year
Credit Credit
Agreement Agreement
----------------- -----------------
Percentage interest assigned: ________________% ________________%
Assignee's Commitment: $________________ $________________
Aggregate outstanding principal amount of Revolving
Credit Advances assigned: $________________ $________________
Principal amount of Revolving Credit Advances payable
to Assignee: $________________ $________________
Principal amount of Revolving Credit Advances payable
to Assignor: $________________ $________________
Effective Date(1): $________________ $________________
[NAME OF ASSIGNOR], as Assignor
By ___________________________
Title:
Dated:
[NAME OF ASSIGNEE], as Assignee
By ___________________________
Title:
Dated:
Domestic Lending Office:
[Address]
Eurodollar Lending Office:
[Address]
----------
(1) This date should be no earlier than five Business Days after the
delivery of this Assignment and Acceptance to the Agent.
Accepted [and Approved](2) this
day of
______________________________________________, As Agent
By ____________________________________________________
Title:
[Approved this [ ] day of ____________________________
MICHIGAN CONSOLIDATED GAS COMPANY
By ____________________________________________________
Title: ](3)
----------
(2) Required if the Assignee is an Eligible Assignee solely by reason of
clause (viii) of the definition of "Eligible Assignee".
(3) To be added only if the consent of the Borrower is required by the
terms of the Credit Agreement.
EXHIBIT D - FORM OF CERTIFICATE
DTE ENERGY COMPANY
THE DETROIT EDISON COMPANY
MICHIGAN CONSOLIDATED GAS COMPANY
OFFICER'S CERTIFICATE
I, X.X. Xxxxxx, Assistant Treasurer of DTE ENERGY COMPANY
("DTE"), THE DETROIT EDISON COMPANY ("DECO") and MICHIGAN CONSOLIDATED GAS
COMPANY ("MichCon"), each a Michigan corporation (each a "Borrower" and
collectively the "Borrowers"), DO HEREBY CERTIFY, pursuant to Section 3.01 of
each of (i) the 364-Day and Three-Year Credit Agreements, dated as of October
24, 2003, among DTE, the financial institutions from time to time parties
thereto (the "DTE Lenders"), and Citibank, N.A., as agent for said DTE Lenders
(the "DTE Credit Agreements"), (ii) the 364-Day and Three-Year Credit
Agreements, dated as of October 24, 2003, among DECO, the financial institutions
from time to time parties thereto (the "DECO Lenders") and Barclays Bank PLC, as
agent for said DECO Lenders (the "DECO Credit Agreements"), and (iii) the
364-Day and Three-Year Credit Agreements, dated as of October 24, 2003, among
MichCon, the financial institutions from time to time parties thereto (the
"MichCon Lenders", and, together with the DTE Lenders and the DECO Lenders, the
"Lenders") and Bank One, NA, as agent for said Lenders (the "MichCon Credit
Agreements", and together with the DTE Credit Agreements and the DECO Credit
Agreements, the "Credit Agreements"), that the terms defined in the Credit
Agreements are used herein as herein defined and, further, that:
1. The Effective Date shall be October 24, 2003.
2. The representation and warranties contained in Section 4.01 of
each of the Credit Agreements are true and current on and as
of the date hereof.
3. No event has occurred and is continuing that constitutes a
Default.
4. Each Borrower is a corporation duly organized, validly
existing and in good standing under the laws of the State of
Michigan.
5. The execution, delivery and performance by each Borrower of
the Loan Documents to which it is a party, and the
consummation of the transactions contemplated hereby and
thereby, are within each Borrower's corporate powers, have
been duly authorized by all necessary corporate action, and do
not contravene (i) each Borrower's charter or by-laws or (ii)
law or any contractual restriction binding on or affecting
each Borrower.
6. All governmental and third party consents and approvals
necessary in connection with the transactions contemplated by
the Loan Documents to which each Borrower is a party have been
obtained and permit the transactions contemplated by the Loan
Documents, including in the case of DECO, the orders of the
Federal Energy Regulatory Commission and the Michigan Public
Service Commission (without the imposition of any conditions
that are not acceptable to the Lenders), and no law or
regulation is applicable that restrains, prevents or imposes
materially adverse conditions upon each Borrower with respect
to the transactions contemplated by the Loan Documents to
which it is a party.
7. Each of the Loan Documents to which each of the Borrowers is a
party when delivered pursuant to each of the Credit Agreements
has been duly executed and delivered by each Borrower. Each of
the other Loan Documents to which each Borrower is a party
when delivered hereunder will be, the legal, valid and binding
obligation of each Borrower enforceable against each Borrower
in accordance with their respective terms, subject to the
effect of any applicable bankruptcy, insolvency,
reorganization, moratorium or similar law affecting creditors'
rights generally.
8. The Consolidated balance sheets of each of DTE, DECO, MichCon
and their respective Subsidiaries as at December 31, 2002, and
the related Consolidated statements of income and cash flows
of each of DTE, DECO, MichCon and their respective
Subsidiaries for the fiscal year then ended, accompanied by an
opinion of Deloitte & Touche LLP, independent public
accountants, and the condensed Consolidated balance sheets of
each of DTE, DECO, MichCon and their respective Subsidiaries
as at June 30, 2003 and the related condensed Consolidated
statements of income and cash flows of each of DTE, DECO,
MichCon and their respective Subsidiaries for the six months
then ended, copies of which have been furnished to each
Lender, attached hereto as Annex A-1 through A-6 are hereby
duly certified by the undersigned, as fairly presenting,
subject in the case of said balance sheet as at June 30, 2003,
and said statements of income and cash flows for the six
months then ended, to year-end audit adjustments, the
Consolidated financial condition of each of DTE, DECO, MichCon
and their respective Subsidiaries, as applicable, as at such
dates and the Consolidated results of the operations of each
of DTE, DECO, MichCon and their respective Subsidiaries, as
applicable, for the periods ended on such dates, all in
accordance with generally accepted accounting principles
consistently applied, and the respective reports in which such
financial statements are contained, together with DTE's
Current Reports on Form 8-K dated July 14, 2003 and August 27,
2003 and DECO's Current Report on Form 8-K dated August 27,
2003, are hereby designated as the "SEC Reports" for purposes
of the Credit Agreements. Since June 30, 2003, except as may
be set forth in or contemplated by DTE's and DECO's Current
Reports on Form 8-K dated August 27, 2003, there has been no
Material Adverse Change with respect to any of the Borrowers.
9. None of the Borrowers is a party to an indenture, loan or
credit agreement, lease, guarantee, mortgage, security
agreement, bond, note or other agreement or instrument, and
there are no orders, writs, judgments, awards, injunctions or
decrees, that affect or purport to affect each Borrower's
right to borrow money or each Borrower's obligations under the
Loan Documents to which it is a party.
10. Each of the Existing Credit Agreements is terminated (except
for those provisions that expressly survive the termination
thereof) upon effectiveness of the Credit Agreements on the
Effective Date; as of the date hereof, there are no loans
outstanding under any of the Existing Credit Agreements and
all amounts owed to the lender or agents thereunder have been
paid in full.
Dated as of the 24th day of October, 2003.
DTE ENERGY COMPANY
THE DETROIT EDISON COMPANY
MICHIGAN CONSOLIDATED GAS COMPANY
By _______________________________
Name: X.X. Xxxxxx
Title: Assistant Treasurer
EXHIBIT E - FORM OF
OPINION OF COUNSEL TO THE BORROWER
[Date]
To each of the Lenders set forth
in Schedule A hereto
DTE Energy Company
The Detroit Edison Company
Michigan Consolidated Gas Company
Ladies and Gentlemen:
This opinion is furnished to you pursuant to (i) Section
3.01(h)(v) of each of the 364-Day and Three-Year Credit Agreements, dated as of
October 24, 2003, among DTE Energy Company ("DTE"), the financial institutions
from time to time parties thereto (the "DTE Lenders"), and Citibank, N.A., as
agent for said DTE Lenders, Barclays Bank PLC and Banc One Capital Markets,
Inc., as Co-Syndication Agents, and with Citigroup Global Markets Inc., as Lead
Arranger and Sole Book Runner (the "DTE Credit Agreements"), (ii) Section
3.01(h)(v) of each of the 364-Day and Three-Year Credit Agreements, dated as of
October 24, 2003, among The Detroit Edison Company ("DECO"), the financial
institutions parties thereto (the "DECO Lenders") and Barclays Bank PLC, as
agent for said DECO Lenders, Citigroup Global Markets Inc. and Banc One Capital
Markets, Inc., as Co-Syndication Agents, and with Barclays Capital and Banc One
Capital Markets, Inc., as Co-Lead Arrangers and Joint Book Runners (the "DECO
Credit Agreements"), and (iii) Section 3.01(h)(v) of each of the 364-Day and
Three-Year Credit Agreements, dated as of October 24, 2003, among Michigan
Consolidated Gas Company ("MichCon"), the financial institutions parties thereto
(the "MichCon Lenders", and together with the DTE Lenders and the DECO Lenders,
the "Lenders") and Bank One, NA, as agent for said Lenders, Barclays Bank PLC
and Citigroup Global Markets Inc., as Co-Syndication Agents, and with Banc One
Capital Markets, Inc. and Barclays Capital, as Co-Lead Arrangers and Joint Book
Runners (the "MichCon Credit Agreement", and together with the DTE Credit
Agreements and the DECO Credit Agreements, the "Credit Agreements"). Terms
defined in each Credit Agreement are used herein as therein defined.
I am the Associate General Counsel of DTE, and the Vice
President and General Counsel of both DECO and MichCon, and have acted as
counsel for each of the Borrowers in connection with the preparation, execution
and delivery of the Loan Documents.
In that connection, I, in conjunction with the members of my
staff, have examined:
(i) Each Loan Document, executed by each of the parties
thereto.
(ii) The other documents furnished by each of the
Borrowers pursuant to Article III of each of the Credit Agreements.
(iii) The Restated Articles of Incorporation of DTE, the
Restated Articles of Incorporation of DECO, and the Restated Articles
of Incorporation of MichCon and all amendments thereto (the
"Charters").
(iv) The By-Laws of each of the Borrowers and all
amendments thereto (the "By-Laws").
(v) Certificates from the State of Michigan attesting
to the continued corporate existence and good standing of each of the
Borrowers.
I have also examined the originals, or copies certified to my satisfaction, of
the documents listed in a certificate of a Financial Officer of each of the
Borrowers, dated the date hereof (the "Certificate"), certifying that the
documents listed in such certificate are all of the indentures, loan or credit
agreements, leases, guarantees, mortgages, security agreements, bonds, notes
and other agreements or instruments, and all of the orders, writs, judgments,
awards, injunctions and decrees, that affect or purport to affect each
Borrower's right to borrow money or each Borrower's obligations under the Loan
Documents to which it is party. In addition, I have examined the originals,
copies certified to my satisfaction, of such other corporate records of each
Borrower, certificates of public officials and of officers of each Borrower,
and agreements, instruments and other documents, as we 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 public officials. I have assumed the due
execution and delivery, pursuant to due authorization, of each of the Credit
Agreements by the Lenders and the applicable Agent.
My opinions expressed below are limited to the law of the
State of Michigan 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. Each of the Borrowers is a corporation duly organized, validly
existing and in good standing under the laws of the State of
Michigan.
2. The execution, delivery and performance by each of the
Borrowers of the Loan Documents to which it is party, and the
consummation of the transactions contemplated thereby, are
within each Borrower's corporate powers, have been duly
authorized by all necessary corporate action, and do not
contravene (i) the Charters or the By-Laws of each Borrower or
(ii) any law, rule or regulation applicable to each of the
Borrowers (including, without limitation, Regulation X of the
Board of Governors of the Federal Reserve System) or (iii) any
contractual or legal restriction contained in any document
listed in the Certificate or, to the best of my knowledge
(after due inquiry), contained in any other similar document.
3. No authorization, 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, recordation, filing or performance by
each Borrower of the Loan Documents to which each is a party,
except such as have been obtained,
including, in the case of DECO, the orders of the Federal
Energy Regulatory Commission and the Michigan Public Service
Commission.
4. Each Loan Document has been duly executed and delivered on
behalf of the Borrower thereto.
5. Except as may have been disclosed to you in the SEC Reports
designated in the Certificate, to the best of my knowledge
(after due inquiry) there are no pending or overtly threatened
actions or proceedings affecting each Borrower or any of its
Subsidiaries before any court, governmental agency or
arbitrator that (i) could be reasonably likely to have a
Material Adverse Effect or (ii) purport to affect the
legality, validity, binding effect or enforceability of any
Loan Documents or the consummation of the transactions
contemplated thereby.
6. In a properly presented case, a Michigan court or a federal
court sitting in the State of Michigan applying Michigan
choice of law rules should give effect to the choice of law
provisions of the Loan Documents and should hold that such
Loan Documents are to be governed by the laws of the State of
New York rather than the laws of the State of Michigan. In
rendering the foregoing opinion, I note that by their terms
the Loan Documents expressly select New York law as the laws
governing their interpretation and that the Loan Documents
governed by New York law were delivered by the parties thereto
to the Agent in New York. The choice of law provisions of the
Loan Documents are not voidable under the laws of the State of
Michigan.
7. If, despite the provisions of Section 8.09 of each of the
Credit Agreements wherein the parties thereto agree that the
Loan Documents shall be governed by, and construed in
accordance with, the laws of the State of New York, a court of
the State of Michigan or a federal court sitting in the State
of Michigan were to hold that the Loan Documents are governed
by, and to be construed in accordance with the laws of the
State of Michigan, the respective Loan Documents would be,
under the laws of the State of Michigan, legal, valid and
binding obligations of the applicable Borrower, enforceable
against such Borrower in accordance with their respective
terms.
8. Neither the Borrowers nor any of their Subsidiaries is an
"investment company," or an "affiliated person" of, or
"promoter" or "principal underwriter" for, an "investment
company," as such terms are defined in the Investment Company
Act of 1940, as amended; DECO is a "public utility company"
and a "subsidiary company" of DTE, which is a "holding
company" as such terms are defined in the Public Utility
Holding Company Act of 1935, as amended (the "1935 Act"), and
such "holding company" and DECO are currently exempt from the
provisions of the 1935 Act (except Section 9 thereof); and
MichCon is a "public utility company" and a "subsidiary
company" of MichCon Holdings, Inc., which is a "holding
company" and a "subsidiary company" of DTE Enterprises, Inc.,
which is a "holding company" and a "subsidiary company" of
DTE, as such terms are defined in the 1935 Act, and such
"holding companies" and MichCon are currently exempt from the
provisions of the 1935 Act (except Section 9 thereof);
The opinions set forth above are subject to the following
qualifications:
(i) My opinion in paragraph 7 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.
(ii) My opinion in paragraph 7 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).
(iii) I express no opinion as to
participation and the effect of the law of
any jurisdiction other than the State of
Michigan wherein any Lender may be located
or wherein enforcement of the Loan Documents
may be sought that limits the rates of
interest legally chargeable or collectible.
Very truly yours,
Schedule A
Each of the Lenders party to the 364- Day Credit Agreement, dated as of October
24, 2003, among DTE, Citibank, N.A., as Lender and Agent, and Banc One Capital
Markets, Inc. and Barclays Bank PLC, as Co- Syndication Agents, and with
Citigroup Global Markets Inc., as Lead Arranger and Sole Book Runner.
Each of the Lenders party to the Three- Year Credit Agreement, dated as of
October 24, 2003, among DTE, Citibank, N.A., as Lender and Agent, and Banc One
Capital Markets, Inc. and Barclays Bank PLC, as Co- Syndication Agents, and with
Citigroup Global Markets Inc., as Lead Arranger and Sole Book Runner.
Each of the Lenders party to the 364- Day Credit Agreement, dated as of October
24, 2003, among DECO, Barclays Bank PLC, as Lender and Agent, and Citigroup
Global Markets Inc. and Banc One Capital Markets, Inc., as Co- Syndication
Agents, and with Barclays Capital and Banc One Capital Markets, Inc., as Co-
Lead Arrangers and Joint Book Runners.
Each of the Lenders party to the Three- Year Credit Agreement, dated as of
October 24, 2003, among DECO, Barclays Bank PLC, as Lender and Agent, and
Citigroup Global Markets Inc. and Banc One Capital Markets, Inc., as Co-
Syndication Agents, and with Barclays Capital and Banc One Capital Markets,
Inc., as Co- Lead Arrangers and Joint Book Runners.
Each of the Lenders party to the 364- Day Credit Agreement, dated as of October
24, 2003, among MichCon, Bank One, NA, as Lender and Agent, and Barclays Bank
PLC and Citigroup Global Markets Inc., as Co- Syndication Agents, and with Banc
One Capital Markets, Inc. and Barclays Capital, as Co- Lead Arrangers and Joint
Book Runners.
Each of the Lenders party to the Three- Year Credit Agreement, dated as of
October 24, 2003, among MichCon, Bank One, NA, as Lender and Agent, and Barclays
Bank PLC and Citigroup Global Markets Inc., as Co- Syndication Agents, and with
Banc One Capital Markets, Inc. and Barclays Capital, as Co- Lead Arrangers and
Joint Book Runners.
EXHIBIT F - FORM OF
COMPLIANCE CERTIFICATE
COMPLIANCE CERTIFICATE
To: The Lenders parties to the
Credit Agreement Described Below
This Compliance Certificate is furnished pursuant to that certain 364-
Day Credit Agreement dated as of October 24, 2003 (as amended or modified from
time to time, the "Agreement"; the terms defined therein being used herein as
therein defined) among Michigan Consolidated Gas Company, a Michigan corporation
(the "Borrower"), the lenders parties thereto, and Bank One, NA (Main Office
Chicago), as Agent for the lenders. Unless otherwise defined herein, capitalized
terms used in this Compliance Certificate have the meanings ascribed thereto in
the Agreement.
THE UNDERSIGNED HEREBY CERTIFIES THAT:
1. I am the duly elected of the Borrower;
2. I have reviewed the terms of the Agreement and I have made, or
have caused to be made under my supervision, a detailed review
of the transactions and conditions of the Borrower and its
Subsidiaries during the accounting period covered by the
attached financial statements;
3. The examinations described in paragraph 2 did not disclose,
and I have no knowledge of, the existence of any condition or
event which constitutes an Event of Default or Default during
or at the end of the accounting period covered by the attached
financial statements or as of the date of this Certificate,
except as set forth below; and
4. Schedule I attached hereto sets forth financial data and
computations evidencing the Borrower's compliance with certain
covenants of the Agreement, all of which data and computations
are true, complete and correct.
Described below are the exceptions, if any, to paragraph 3 by listing,
in detail, the nature of the condition or event, the period during which it has
existed and the action which the Borrower has taken, is taking, or proposes to
take with respect to each such condition or event:
The foregoing certifications, together with the computations set forth
in Schedule I hereto and the financial statements delivered with this
Certificate in support hereof, are made and delivered this day of , .
MICHIGAN CONSOLIDATED GAS COMPANY
By_____________________________________
Name:
Title:
SCHEDULE 1 TO COMPLIANCE CERTIFICATE
Compliance as of _________, ____ with
Provisions of Section 5.01(h) of
the Agreement
FINANCIAL COVENANTS
Ratio of Consolidated EBITDA to Interest Expense on Debt (Section 6.01(j)(i)).
(A) Numerator: Consolidated EBITDA: $_____
(B) Denominator:
(i) Interest Expense on Debt: $_____
(i) Minus: Interest Expense on all
Nonrecourse Debt of the Borrower and its Subsidiaries: -$_____
(ii) Minus: Interest Expense on Excluded Hedging Debt: -$_____
(iii) Minus: Interest Expense on Junior Subordinated Debt: -$_____
(iv) Denominator: (B)(i) minus (B)(ii) through (B)(iv): $_____
(C) State whether the ratio of (A) to (B)(v) was not less than 2:1 for the
twelve-month period ending on the last day of __________: YES/NO
Ratio of Consolidated Debt to Capitalization (Section 6.01(j)(ii)).
(D) Numerator:
(v) Consolidated Debt: $_____
(vi) Minus: Nonrecourse Debt of the Borrower and its
Subsidiaries: -$_____
(vii) Minus: Excluded Hedging Debt: -$_____
(viii) Minus: Junior Subordinated Debt: -$_____
(ix) Numerator: (A)(i) minus (A)(ii) through (A)(iv): $_____
(E) Denominator:
(x) Total Net Worth: $_____
(xi) Plus: Consolidated Debt: $_____
(xii) Plus: Restructuring Charges Relating to the Merger of MCN Energy Group
Inc. with and into DTE Enterprises, Inc.: $____
(xiii) Denominator: Sum of (B)(i) through (B)(iii): $____
State whether the ratio of (A)(v) to (B)(iv) was not greater than .65:1: YES/NO
