Exhibit 10.2
EXECUTION COPY
$3,150,000,000 364-Day Revolving Credit Agreement
dated as of
October 17, 2003
among
INTERNATIONAL LEASE FINANCE CORPORATION,
THE BANKS (as defined herein)
and
CITICORP USA, INC.,
as Administrative Agent
BANK OF AMERICA, N.A.,
BANK OF SCOTLAND
and
CREDIT SUISSE FIRST BOSTON,
as Co-Documentation Agents,
CITIGROUP GLOBAL MARKETS INC.,
as Sole Arranger and Book Manager
TABLE OF CONTENTS
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SECTION 1. CERTAIN DEFINITIONS............................................................................ 1
Section 1.1. Terms Generally..................................................................... 1
Section 1.2. Specific Terms...................................................................... 1
SECTION 2. BID LOANS AND BID NOTES........................................................................ 11
Section 2.1. Making of Bid Loans................................................................. 11
Section 2.2. Procedure for Bid Loans............................................................. 11
Section 2.3. Funding of Bid Loans................................................................ 13
SECTION 3. COMMITTED LOANS AND NOTES...................................................................... 14
Section 3.1. Agreement to Make Committed Loans................................................... 14
Section 3.2. Procedure for Committed Loans....................................................... 14
Section 3.3. Maturity of Committed Loans......................................................... 15
SECTION 4. INTEREST AND FEES.............................................................................. 15
Section 4.1. Interest Rates...................................................................... 16
Section 4.2. Interest Payment Dates.............................................................. 16
Section 4.3. Setting and Notice of Committed Loan Rates.......................................... 16
Section 4.4. Facility Fee........................................................................ 17
Section 4.5. Utilization Fee..................................................................... 17
Section 4.6. Agent's Fees........................................................................ 17
Section 4.7. Computation of Interest and Fees.................................................... 17
SECTION 5. REDUCTION OR TERMINATION OF THE COMMITMENTS; REPAYMENT; PREPAYMENTS............................ 18
Section 5.1. Voluntary Termination or Reduction of the Commitments............................... 18
Section 5.2. Voluntary Prepayments............................................................... 18
Section 5.3. Term-Out Option..................................................................... 18
SECTION 6. MAKING AND PRORATION OF PAYMENTS; SET-OFF; TAXES............................................... 19
Section 6.1. Making of Payments.................................................................. 19
Section 6.2. Pro Rata Treatment; Sharing......................................................... 19
Section 6.3. Set-off............................................................................. 20
Section 6.4. Taxes, etc. ........................................................................ 20
SECTION 7. INCREASED COSTS AND SPECIAL PROVISIONS FOR ABSOLUTE RATE LOANS AND LIBOR RATE LOANS............ 23
Section 7.1. Increased Costs..................................................................... 23
Section 7.2. Basis for Determining Interest Rate Inadequate or Unfair............................ 25
Section 7.3. Changes in Law Rendering Certain Loans Unlawful..................................... 25
Section 7.4. Funding Losses...................................................................... 26
Section 7.5. Discretion of Banks as to Manner of Funding......................................... 26
Section 7.6. Conclusiveness of Statements; Survival of Provisions................................ 26
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SECTION 8. REPRESENTATIONS AND WARRANTIES................................................................. 26
Section 8.1. Organization, etc. ................................................................. 26
Section 8.2. Authorization; Consents; No Conflict................................................ 27
Section 8.3. Validity and Binding Nature......................................................... 27
Section 8.4. Financial Statements................................................................ 27
Section 8.5. Litigation and Contingent Liabilities............................................... 27
Section 8.6. Employee Benefit Plans.............................................................. 27
Section 8.7. Investment Company Act.............................................................. 28
Section 8.8. Public Utility Holding Company Act.................................................. 28
Section 8.9. Regulation U........................................................................ 28
Section 8.10. Information........................................................................ 28
Section 8.11. Compliance with Applicable Laws, etc. ............................................. 29
Section 8.12. Insurance.......................................................................... 29
Section 8.13. Taxes.............................................................................. 29
Section 8.14. Use of Proceeds.................................................................... 29
Section 8.15. Pari Passu......................................................................... 29
SECTION 9. COVENANTS...................................................................................... 29
Section 9.1. Reports, Certificates and Other Information......................................... 29
Section 9.2. Existence........................................................................... 31
Section 9.3. Nature of Business.................................................................. 31
Section 9.4. Books, Records and Access........................................................... 31
Section 9.5. Insurance........................................................................... 31
Section 9.6. Repair.............................................................................. 32
Section 9.7. Taxes............................................................................... 32
Section 9.8. Compliance.......................................................................... 32
Section 9.9. Sale of Assets...................................................................... 32
Section 9.10. Consolidated Indebtedness to Consolidated Tangible Net Worth Ratio................. 32
Section 9.11. Fixed Charge Coverage Ratio........................................................ 32
Section 9.12. Consolidated Tangible Net Worth.................................................... 32
Section 9.13. Restricted Payments................................................................ 33
Section 9.14. Liens.............................................................................. 33
Section 9.15. Use of Proceeds.................................................................... 34
SECTION 10. CONDITIONS TO LENDING......................................................................... 35
Section 10.1. Conditions Precedent to All Loans.................................................. 35
Section 10.2. Conditions to the Availability of the Commitments.................................. 35
SECTION 11. EVENTS OF DEFAULT AND THEIR EFFECT............................................................ 37
Section 11.1. Events of Default.................................................................. 37
Section 11.2. Effect of Event of Default......................................................... 39
SECTION 12. THE AGENT..................................................................................... 39
Section 12.1. Authorization...................................................................... 39
Section 12.2. Indemnification.................................................................... 39
Section 12.3. Action on Instructions of the Required Banks....................................... 40
Section 12.4. Payments........................................................................... 40
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Section 12.5. Exculpation........................................................................ 41
Section 12.6. Credit Investigation............................................................... 41
Section 12.7. CUSA and Affiliates................................................................ 41
Section 12.8. Resignation........................................................................ 42
Section 12.9. The Register; the Notes............................................................ 42
SECTION 13. GENERAL....................................................................................... 43
Section 13.1. Waiver; Amendments................................................................. 43
Section 13.2. Notices............................................................................ 43
Section 13.3. Computations....................................................................... 44
Section 13.4. Assignments; Participations........................................................ 45
Section 13.5. Costs, Expenses and Taxes.......................................................... 48
Section 13.6. Indemnification.................................................................... 49
Section 13.7. Regulation U....................................................................... 49
Section 13.8. Extension of Termination Dates; Removal of Banks; Substitution of Banks............ 49
Section 13.9. Captions........................................................................... 51
Section 13.10. Governing Law; Severability....................................................... 51
Section 13.11. Counterparts; Effectiveness....................................................... 52
Section 13.12. Further Assurances................................................................ 52
Section 13.13. Successors and Assigns............................................................ 52
Section 13.14. Waiver of Jury Trial.............................................................. 52
Section 13.15. No Fiduciary Relationship......................................................... 52
Section 13.16. Tax Structure Disclosure.......................................................... 52
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SCHEDULES AND EXHIBITS
Schedule I Schedule of Banks (Sections 1.2 and 13.8)
Schedule II Fees and Margins (Sections 1.2, 4.4, 4.5 and 4.6)
Schedule III Address for Notices (Section 13.2)
Exhibit A Form of Notice of Competitive Bid Borrowing (Sections 1.2 and 2.2)
Exhibit B Form of Bid (Sections 1.2 and 2.2)
Exhibit C Form of Committed Loan Request (Sections 1.2 and 3.2)
Exhibit D Form of Bid Note (Sections 1.2 and 2.4)
Exhibit E Form of Committed Note (Sections 1.2 and 3.4)
Exhibit F Fixed Charge Coverage Ratio (Sections 1.2 and 9.11)
Exhibit G Form of Opinion of Counsel for the Company (Section 10.2.5)
Exhibit H Form of Opinion of the General Counsel of the Company (Section
10.2.5)
Exhibit I Form of Assignment and Assumption Agreement (Section 13.4.1)
Exhibit J Form of Request for Extension of Termination Date (Section 13.8)
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364-DAY REVOLVING CREDIT AGREEMENT
364-DAY REVOLVING CREDIT AGREEMENT (this "Agreement"), dated
as of October 17, 2003, among INTERNATIONAL LEASE FINANCE CORPORATION, a
California corporation (herein called the "Company"), the financial institutions
listed on the signature pages hereof (herein, together with their respective
successors and assigns, collectively called the "Banks" and individually each
called a "Bank") and CITICORP USA, INC. (herein, in its individual corporate
capacity, together with its successors and assigns, called "CUSA"), as agent for
the Banks (herein, in such capacity, together with its successors and assigns in
such capacity, called the "Agent").
W I T N E S S E T H:
WHEREAS, the Company has requested the Banks to lend up to
$3,150,000,000 to the Company on a 364-day revolving basis for general corporate
purposes;
NOW, THEREFORE, in consideration of the premises and the
mutual agreements herein contained, the parties hereto agree as follows:
SECTION 1. CERTAIN DEFINITIONS.
Section 1.1. Terms Generally. The definitions ascribed to
terms in this Section 1 and elsewhere in this Agreement shall apply equally to
both the singular and plural forms of the terms defined. Whenever the context
may require, any pronoun shall include the corresponding masculine, feminine and
neuter forms. The words "include", "includes" and "including" shall be deemed to
be followed by the phrase "without limitation". The words "hereby", "herein",
"hereof", "hereunder" and words of similar import refer to this Agreement as a
whole (including any exhibits and schedules hereto) and not merely to the
specific section, paragraph or clause in which such word appears. All references
herein to Sections, Exhibits and Schedules shall be deemed references to
Sections of and Exhibits and Schedules to this Agreement unless the context
shall otherwise require.
Section 1.2. Specific Terms. When used herein, the following
terms shall have the following meanings:
"Absolute Rate" means a rate of interest per annum, expressed
as a percentage to four decimal places and set forth in a Bid for a particular
Bid Loan amount and a particular Loan Period.
"Absolute Rate Loan" means any Loan which bears interest at an
Absolute Rate.
"Affiliate" means, with respect to any Person, any other
Person directly or indirectly controlling, controlled by, or under direct or
indirect common control with such Person. A Person shall be deemed to control
another Person if such first Person possesses, directly or indirectly, the power
to direct or cause the direction of the management and policies of such other
Person, whether through ownership of stock, by contract or otherwise.
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"Agent" - see Preamble.
"Aggregate Commitment" means $3,150,000,000, as reduced by any
reduction in the Commitments made from time to time pursuant to Section 5.1 or
Section 13.8.
"Agreement" - see Preamble.
"AIG" means American International Group, Inc.
"Assignee" - see Section 13.4.1.
"Authorized Officer" of the Company means any of the Chairman
of the Board, the President, the Vice Chair and Chief Financial Officer, the
Treasurer, the Controller and the Assistant Controller of the Company.
"Available Commitment" - see Section 2.2(a).
"Bank" - see Preamble.
"Bank Parties" - see Section 13.6.
"Base LIBOR" means, with respect to any Loan Period for a
LIBOR Rate Loan, (a) the rate per annum for Dollar deposits approximately equal
to the principal amount of the LIBOR Rate Loans for which LIBOR is being
determined and with maturities comparable to the Loan Period for which such rate
would apply, which appears on the Telerate Page 3750 (the "Telerate Page") at
approximately 11:00 A.M., London time, on the day that is two Business Days
prior to the first day of such Loan Period and (b) if no such rate so appears on
the Telerate Page 3750, the rate per annum determined by the Agent to be the
arithmetic mean (rounded to the nearest 1/100 of 1% or, if there is no nearest
1/100 of 1%, to the next higher 1/100 of 1%) of the respective rates of interest
communicated by the Reference Banks to the Agent as the rate at which Dollar
deposits are offered to the Reference Banks by leading banks in the London
interbank deposit market at approximately 11:00 a.m., London time, on the second
full Business Day preceding the first day of such Loan Period in an amount
substantially equal to the amount of such LIBOR Rate Loan for such Reference
Banks and for a period equal to such Loan Period.
"Base Rate" means a fluctuating interest rate per annum, as
shall be in effect from time to time, which rate per annum shall on any day be
equal to the higher of, (a) the rate of interest announced publicly by Citibank,
N.A. in New York, New York, from time to time, as Citibank, N.A.'s base rate;
and (b) the Federal Funds Rate for such day plus -1/2 of 1% per annum.
"Base Rate Loan" means any Loan which bears interest at the
Base Rate.
"Bid" means one or more offers by a Bank to make one or more
Bid Loans, submitted to the Agent by telephone no later than the Submission
Deadline and promptly confirmed in writing on the same day on a duly completed
and executed form substantially
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similar to Exhibit B, personally delivered or transmitted by facsimile to the
Agent.
"Bid Borrowing" - see Section 2.2(a).
"Bid Loan" means a Loan in Dollars that is an Absolute Rate
Loan or a LIBOR Rate Loan made pursuant to Section 2.
"Bid Note" means a promissory note of the Company,
substantially in the form of Exhibit D, duly completed, evidencing Bid Loans
made to the Company, as such note may be amended, modified or supplemented or
supplanted pursuant to Section 13.4.1 from time to time.
"Business Day" means any day of the year on which banks are
open for commercial banking business in the City of New York and Los Angeles
and, if the applicable Business Day relates to the determination of LIBOR for
any LIBOR Rate Loan, any such Business Day on which dealings in deposits in
Dollars are transacted in the London interbank market.
"Capitalized Lease" means any lease under which any
obligations of the lessee are, or are required to be, capitalized on a balance
sheet of the lessee in accordance with generally accepted accounting principles
in the United States of America.
"Capitalized Rentals" means, as of the date of any
determination, the amount at which the obligations of the lessee, due and to
become due under all Capitalized Leases under which the Company or any
Subsidiary is a lessee, are reflected as a liability on a consolidated balance
sheet of the Company and its Subsidiaries.
"Closing Date" - see Section 10.2.
"Code" means the Internal Revenue Code of 1986, as amended.
"Commitments" means the Banks' commitments to make Committed
Loans hereunder; and "Commitment" as to any Bank means the amount set forth
opposite such Bank's name on Schedule I (as reduced in accordance with Section
5.1, or as periodically revised in accordance with Section 13.4 or Section
13.8).
"Committed Loan" means a Loan in Dollars that is a Base Rate
Loan or LIBOR Rate Loan made pursuant to Section 3 or, if the Term-Out Option is
in effect, Section 5.3.
"Committed Loan Request" - see Section 3.2(a).
"Committed Note" means a promissory note of the Company,
substantially in the form of Exhibit E, duly completed, evidencing Committed
Loans to the Company, as such note may be amended, modified or supplemented or
supplanted pursuant to Section 13.4.1 from time to time.
"Company" - see Preamble.
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"Consolidated Indebtedness" means, as of the date of any
determination, the total amount of Indebtedness, less the amount of current and
deferred income taxes and rentals received in advance of the Company and its
Subsidiaries determined on a consolidated basis in accordance with generally
accepted accounting principles in the United States of America.
"Consolidated Tangible Net Assets" means, as of the date of
any determination, the total amount of assets (less depreciation and valuation
reserves and other reserves and items deductible from the gross book value of
specific asset amounts under generally accepted accounting principles) which
under generally accepted accounting principles would be included on a balance
sheet of the Company and its Subsidiaries, after deducting therefrom (i) all
liability items except Indebtedness (whether incurred, assumed or guaranteed)
for borrowed money maturing by its terms more than one year from the date of
creation thereof or which is extendible or renewable at the sole option of the
obligor in such manner that it may become payable more than one year from the
date of creation thereof, shareholder's equity and reserves for deferred income
taxes and (ii) all good will, trade names, trademarks, patents, unamortized debt
discount and expense and other like intangibles, which in each case would be so
included on such balance sheet.
"Consolidated Tangible Net Worth" means, as of the date of any
determination, the total of shareholders' equity (including capital stock,
additional paid-in capital and retained earnings after deducting treasury
stock), less the sum of the total amount of goodwill, organization expenses,
unamortized debt issue costs (determined on an after-tax basis), deferred assets
other than prepaid insurance and prepaid taxes, the excess of cost of shares
acquired over book value of related assets, surplus resulting from any
revaluation write-up of assets subsequent to December 31, 2002 and such other
assets as are properly classified as intangible assets, all determined in
accordance with generally accepted accounting principles in the United States of
America consolidating the Company and its Subsidiaries.
"Covered Taxes" means all Taxes, including all liabilities
(including, without limitation, any penalties, interest and other additions to
tax) with respect thereto, other than the following Taxes, including all
liabilities (including, without limitation, any penalties, interest and other
additions to tax) with respect thereto: (i) Taxes imposed on the net income or
capital of the Agent, a Bank, Assignee or Participant under this Agreement and
franchise taxes imposed in lieu thereof (including without limitation branch
profits taxes, minimum taxes and taxes computed under alternative methods, at
least one of which is based on net income (collectively referred to as "net
income taxes")) by (A) the jurisdiction under the laws of which such Agent,
Bank, Assignee or Participant under this Agreement is organized or resident for
tax purposes or any political subdivision thereof or (B) the jurisdiction of
such Agent, Bank, Assignee or Participant's applicable lending office or any
political subdivision thereof or (C) any jurisdiction with which such Agent,
Bank, Assignee or Participant has any present or former connection (other than
solely by virtue of being a Bank under this Agreement), (ii) any Taxes to the
extent that they are in effect and would apply to a payment to such Agent, Bank,
Assignee or Participant as of the date of a change in the jurisdiction of such
Agent, Bank, Assignee or Participant's applicable lending office or (iii) any
Taxes that would not have been imposed but for (A) the failure or unreasonable
delay by such Agent, Bank, Assignee or Participant, as
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applicable, to complete, provide, or file and update or renew, any application
forms, certificates, documents or other evidence required from time to time,
properly completed and duly executed, to qualify for any applicable exemption
from or reduction of Taxes, including, without limitation, the certificates,
documents or other evidence required under Sections 6.4(b), 6.4(c) and 6.4(e)
(unless such failure or delay results from a change in applicable law after the
Closing Date or the date of the applicable agreement pursuant to which such
Assignee or Participant, as the case may be, acquires an interest under this
Agreement, which precludes such Agent, Bank, Assignee or Participant, as
applicable, from qualifying for such exemption or reduction) or (B) the gross
negligence or willful misconduct of such Agent, Bank, Assignee or Participant.
"CUSA" - see Preamble.
"Dollar", and $, refer to the lawful money of the United
States of America.
"ECA Financing" means any subsidized financing of the
acquisition of Airbus Industrie aircraft, the repayment obligations of which
will be supported by guaranties issued by certain European government export
credit agencies (the European Credit Agency Export Finance Program) and a
Company Guaranty and a pledge of the assets of (including any rights to or
interests in any reserve or security deposit held by) each such Wholly-owned
Subsidiary.
"Eligible Assignee" means (i) any Bank, and any Affiliate of
any Bank and (ii)(a) a commercial bank organized under the laws of the United
States or any state thereof, (b) a savings and loan association or savings bank
organized under the laws of the United States or any state thereof, (c) a
commercial bank organized under the laws of any other country or a political
subdivision thereof; provided that (1) such bank is acting through a branch or
agency located in the United States or (2) such bank organized under the laws of
a country that is a member of the Organization for Economic Cooperation and
Development or a political subdivision of such country and (d) a finance
company, insurance company, mutual fund, leasing company or other financial
institution or fund (whether a corporation, partnership or other entity) which
is engaged in making, purchasing or otherwise investing in commercial loans in
the ordinary course of its business, and having total assets in excess of
$150,000,000.
"ERISA" means the Employee Retirement Income Security Act of
1974, as amended.
"ERISA Affiliate" means any corporation, trade or business
that is, along with the Company or any Subsidiary, a member of a controlled
group of corporations or a controlled group of trades or businesses, as
described in sections 414(b) and 414(c), respectively, of the Code or Section
4001 of ERISA.
"Eurodollar Reserve Percentage" means for any day in any Loan
Period for any LIBOR Rate Loan that percentage in effect on such day as
prescribed by the Board of Governors of the Federal Reserve System (or any
successor thereto) or other U.S. government agency for determining the reserve
requirement (including, without limitation, any marginal, basic, supplemental or
emergency reserves) for a member bank of the Federal Reserve System in New York
City with deposits exceeding one billion dollars in respect of eurocurrency
funding
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liabilities. LIBOR shall be adjusted automatically on and as of the effective
date of any change in the Eurodollar Reserve Percentage.
"Event of Default" means any of the events described in
Section 11.1.
"Eximbank" means the Export-Import Bank of the United States.
"Existing Litigation" - see Section 10.1.3.
"FASB 13" means the Statement of Financial Accounting
Standards No. 13 (Accounting for Leases) as in effect on the date hereof.
"Federal Funds Rate" means, for any period, a fluctuating
interest rate per annum equal for each day during such period to the weighted
average of the rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by Federal funds brokers, as published for such
day (or, if such day is not a Business Day, for the next preceding Business Day)
by the Federal Reserve Bank of New York, or, if such rate is not so published
for any day which is a Business Day, the average of the quotations for such day
on such transactions received by the Agent from three Federal funds brokers of
recognized standing selected by it.
"Fixed Charge Coverage Ratio" on the last day of any quarter
of any fiscal year of the Company means the ratio for the period of four fiscal
quarters ending on such day of earnings to combined fixed charges and preferred
stock dividends referred to in Paragraph (d)(1) of Item 503 of Regulation S-K of
the Securities and Exchange Commission, as amended from time to time, and
determined pursuant to Instructions to paragraph 503(d) of such Item 503 with
the Company as "registrant" (such ratio for the four fiscal quarters ended
December 31, 2002 is attached hereto as Exhibit F); provided, however, that if
the Required Banks in their reasonable discretion determine that amendments to
Regulation S-K subsequent to the date hereof substantially modify the provisions
of such Item 503, "Fixed Charge Coverage Ratio" shall have the meaning
determined by this definition without regard to any such amendments.
"Funding Date" means the date on which any Loan is scheduled
to be disbursed.
"Funding Office" means, with respect to any Bank, any office
or offices of such Bank or Affiliate or Affiliates of such Bank through which
such Bank shall fund or shall have funded any Loan. A Funding Office may be, at
such Bank's option, either a domestic or foreign office of such Bank or a
domestic or foreign office of an Affiliate of such Bank.
"Governmental Authority" means any nation or government, any
state or other political subdivision thereof and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government.
"Guaranties" by any Person means, without duplication, all
obligations (other than endorsements in the ordinary course of business of
negotiable instruments for deposit or collection) of such Person guaranteeing or
in effect guaranteeing any Indebtedness, dividend or other obligation of any
other Person (the "Primary Obligor") in any manner, whether directly or
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indirectly, including, without limitation, all obligations incurred through an
agreement, contingent or otherwise, by such Person: (a) to purchase such
Indebtedness or obligation or any property or assets constituting security
therefor, (b) to advance or supply funds (i) for the purchase or payment of such
Indebtedness or obligation or (ii) to maintain working capital or other balance
sheet condition or otherwise to advance or make available funds for the purchase
or payment of such Indebtedness or obligation, (c) to lease property or to
purchase securities or other property or services primarily for the purpose of
assuring the owner of such Indebtedness or obligation of the ability of the
Primary Obligor to make payment of the Indebtedness or obligation or (d)
otherwise to assure the owner of the Indebtedness or obligation of the Primary
Obligor against loss in respect thereof; provided, however, that the obligation
described in clause (c) shall not include (i) obligations of a buyer under an
agreement with a seller to purchase goods or services entered into in the
ordinary course of such buyer's and seller's businesses unless such agreement
requires that such buyer make payment whether or not delivery is ever made of
such goods or services and (ii) remarketing agreements where the remaining debt
on an aircraft does not exceed the aircraft's net book value, determined in
accordance with industry standards, except that clause (c) shall apply to the
amount of remaining debt under a remarketing agreement that exceeds the net book
value of the aircraft. For the purposes of all computations made under this
Agreement, a Guaranty in respect of any Indebtedness for borrowed money shall be
deemed to be Indebtedness equal to the principal amount of such Indebtedness for
borrowed money which has been guaranteed, and a Guaranty in respect of any other
obligation or liability or any dividend shall be deemed to be Indebtedness equal
to the maximum aggregate amount of such obligation, liability or dividend.
"Indebtedness" of any Person means and includes, without
duplication, all obligations of such Person which in accordance with generally
accepted accounting principles in the United States of America shall be
classified upon a balance sheet of such Person as liabilities of such Person,
and in any event shall include all:
(a) obligations of such Person for borrowed money or
which have been incurred in connection with the acquisition of property
or assets (other than security and other deposits on flight equipment),
(b) obligations secured by any Lien or other charge upon
property or assets owned by such Person, even though such Person has
not assumed or become liable for the payment of such obligations,
(c) obligations created or arising under any conditional
sale, or other title retention agreement with respect to property
acquired by such Person, notwithstanding the fact that the rights and
remedies of the seller, lender or lessor under such agreement in the
event of default are limited to repossession or sale of property,
(d) Capitalized Rentals of such Person under any
Capitalized Lease,
(e) obligations evidenced by bonds, debentures, notes or
other similar instruments, and
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(f) Guaranties by such Person, to the extent required
pursuant to the definition thereof.
"Indemnified Liabilities" - see Section 13.6.
"LIBOR" means, with respect to any Loan Period the rate per
annum (rounded to the nearest 1/100 of 1% or, if there is no nearest 1/100 of
1%, to the next higher 1/100 of 1%), determined pursuant to the following
formula:
LIBOR= Base LIBOR
--------------------------------------------
(1 - Eurodollar Reserve Percentage)
"LIBOR Rate" means (i) with respect to Committed Loans that
are LIBOR Rate Loans (but not Term Loans), LIBOR plus the applicable rate margin
set forth in Schedule II, (ii) with respect to Bid Loans that are LIBOR Rate
Loans, LIBOR plus or minus the rate margin set forth in a Bid for a particular
Bid Loan amount and a particular Loan Period and (iii) with respect to Term
Loans that are LIBOR Rate Loans, LIBOR plus the applicable rate margin set forth
in the row entitled "Drawn Pricing Under the Term-Out Option (if LIBOR Rate
Loans)" on Schedule II.
"LIBOR Rate Loan" means any Loan which bears interest at a
LIBOR Rate.
"Lien" means any mortgage, pledge, lien, security interest or
other charge, encumbrance or preferential arrangement, including the retained
security title of a conditional vendor or lessor. For avoidance of doubt, the
parties hereto acknowledge that the filing of a financing statement under the
Uniform Commercial Code does not, in and of itself, give rise to a Lien.
"Litigation Actions" means all litigation, claims and
arbitration proceedings, proceedings before any Governmental Authority or
investigations which are pending or, to the knowledge of the Company, threatened
against, or affecting, the Company or any Subsidiary.
"Loan Period" means (i) with respect to any Absolute Rate
Loan, the period commencing on such Loan's Funding Date and ending not less than
14 days thereafter nor more than 6 months thereafter as specified in the Bid
Loan Request related to such Bid Loan and (ii) with respect to any LIBOR Rate
Loan, the period commencing on such Loan's Funding Date and ending 1, 2, 3 or 6
months thereafter as selected by the Company pursuant to Section 3.2(a) or
specified in the Notice of Competitive Bid Borrowing, as the case may be;
provided, however, that:
(a) if a Loan Period would otherwise end on a day which
is not a Business Day, such Loan Period shall end on the next
succeeding Business Day (unless, in the case of a LIBOR Rate Loan, such
next succeeding Business Day would fall in the next succeeding calendar
month, in which case such Loan Period shall end on the next preceding
Business Day),
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(b) in the case of a Loan Period for any LIBOR Rate Loan,
if there exists no day numerically corresponding to the day such Loan
was made in the month in which the last day of such Loan Period would
otherwise fall, such Loan Period shall end on the last Business Day of
such month, and
(c) on the date of the making of any Loan by a Bank, the
Loan Period for such Loan shall not extend beyond the then-scheduled
Termination Date for such Bank (or the date contemplated by Section 5.3
if the Term-Out Option is in effect).
"Loans" means, collectively, the Bid Loans and the Committed
Loans and, individually, any Bid Loan or Committed Loan.
"Material Adverse Effect" means (i) any material adverse
effect on the business, properties, condition (financial or otherwise) or
operations of the Company and its Subsidiaries, taken as a whole since any
stated reference date or from and after the date of determination, as the case
may be, (ii) any material adverse effect on the ability of the Company to
perform its material obligations hereunder and under the Notes or (iii) any
material adverse effect on the legality, validity, binding effect or
enforceability of any material provision of this Agreement or any Note.
"Multiemployer Plan" has the meaning assigned to such term in
Section 3(37) of ERISA.
"New Litigation" - see Section 10.1.3.
"Notes" means, collectively, the Bid Notes and the Committed
Notes; and "Note" means any individual Bid Note or Committed Note.
"Notice of Competitive Bid Borrowing" - see Section 2.2(a).
"Notice Office" means the office of CUSA which, as of the date
hereof, is located at 0 Xxxxx Xxx, Xxxxx 000, Xxx Xxxxxx, XX 00000, Telecopy
Number 000-000-0000; Telephone 000-000-0000.
"Participant" - see Section 13.4.2.
"Payment Office" means the office of the Agent which, as of
the date hereof, is at 0 Xxxxx Xxx, Xxxxx 000, Xxx Xxxxxx, XX 00000, Account
Number: 00000000.
"PBGC" means the Pension Benefit Guaranty Corporation and any
entity succeeding to any or all of its functions under ERISA.
"Percentage" means as to any Bank the ratio, expressed as a
percentage, that such Bank's Commitment as set forth opposite such Bank's name
on Schedule I, as periodically revised in accordance with Section 13.4 or 13.8,
bears to the Aggregate Commitment or, if the
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Commitments have been terminated, the ratio, expressed as a percentage, that the
aggregate principal amount of such Bank's outstanding Loans bears to the
aggregate principal amount of all outstanding Loans.
"Person" means an individual or a corporation, partnership,
trust, incorporated or unincorporated association, joint venture, joint stock
company, government (or an agency or political subdivision thereof) or other
entity of any kind.
"Plan" means, at any date, any employee pension benefit plan
(as defined in section 3(2) of ERISA) which is subject to Title IV of ERISA
(other than a Multiemployer Plan) and to which the Company or any ERISA
Affiliate may have any liability, including any liability by reason of having
been a substantial employer within the meaning of section 4063 of ERISA at any
time during the preceding five years, or by reason of being deemed to be a
contributing sponsor under section 4069 of ERISA.
"Reference Banks" means Citibank, N.A., Bank of America, N.A.
and The Governor and Company of the Bank of Scotland.
"Reportable Event" means an event described in Section 4043(c)
of ERISA with respect to a Plan other than those events as to which the 30-day
notice period is waived under subsection .22, .23, .25, .27 or .28 of PBGC
Regulation Section 4043.
"Required Banks" means Banks having an aggregate Percentage of
51% or more.
"Significant Subsidiary" means any Subsidiary which is so
defined pursuant to Rule 1-02 of Regulation S-X promulgated by the Securities
and Exchange Commission.
"Submission Deadline" - see Section 2.2(b).
"Subsidiary" means any Person of which or in which the Company
and its other Subsidiaries own directly or indirectly 50% or more of:
(a) the combined voting power of all classes of stock
having general voting power under ordinary circumstances to elect a
majority of the board of directors of such Person, if it is a
corporation,
(b) the capital interest or profits interest of such
Person, if it is a partnership, joint venture or similar entity, or
(c) the beneficial interest of such Person, if it is a
trust, association or other unincorporated organization.
"Successor Bank" - see Section 13.8(c).
"Taxes" with respect to any Person means income, excise and
other taxes, and all assessments, imposts, duties and other governmental charges
or levies, imposed upon such
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Person, its income or any of its properties, franchises or assets by any
Governmental Authority.
"Telerate Page" - see "Base LIBOR".
"Terminating Bank" - see Section 13.8(c).
"Termination Date" means, with respect to any Bank, the
earliest to occur of (i) October 15, 2004 or such later date as may be agreed to
by such Bank pursuant to Section 13.8(a), or if such day is not a Business Day,
the next preceding Business Day, (ii) the date on which the Commitments shall
terminate pursuant to Section 11.2 or the Commitments shall be reduced to zero
pursuant to Section 5.1 and (iii) the date specified as such Bank's Termination
Date pursuant to Section 13.8(b), or, if such day is not a Business Day, the
next preceding Business Day; in all cases, subject to the provisions of Section
13.8(d).
"Term Loans" - see Section 5.3.
"Term-Out Option" means the option of the Company to convert
the Committed Loans to Term Loans as defined in and contemplated by Section 5.3.
"Unmatured Event of Default" means any event which if it
continues uncured will, with lapse of time or notice or lapse of time and
notice, constitute an Event of Default.
"Wholly-owned Subsidiary" means any Person of which or in
which the Company and its other Wholly-owned Subsidiaries own directly or
indirectly 100% of:
(a) the issued and outstanding shares of stock (except
shares required as directors, qualifying shares),
(b) the capital interest or profits interest of such
Person, if it is a partnership, joint venture or similar entity, or
(c) the beneficial interest of such Person, if it is a
trust, association or other unincorporated organization.
SECTION 2. BID LOANS AND BID NOTES.
Section 2.1. Making of Bid Loans. On the terms and subject to
the conditions of this Agreement, each Bank, severally and for itself alone, may
(but is not obligated to) make Bid Loans to the Company from time to time on or
after the date hereof and prior to the date which is the fourteenth day
preceding such Bank's Termination Date in amounts equal to such Bank's Bids that
have been accepted as provided in Section 2.2(c); provided, that the aggregate
principal amount of all outstanding Loans shall not at any time exceed the then
Aggregate Commitment.
Section 2.2. Procedure for Bid Loans.
(a) Bid Loan Request. Whenever the Company desires to
incur a competitive bid borrowing (a "Bid Borrowing"), it shall give
the Agent written notice (or telephonic notice
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promptly confirmed in writing), such notice to be delivered to the Agent at its
Notice Office no later than 12:00 Noon, New York City time, at least three
Business Days prior to any proposed LIBOR Rate Loan and at least one Business
Day prior to any proposed Absolute Rate Loan. Each such notice shall be
substantially in the form of Exhibit A hereto (each a "Notice of Competitive Bid
Borrowing"), and shall specify in each case (i) the date of such proposed Bid
Borrowing (which shall be a Business Day), (ii) the aggregate amount of the
proposed Bid Borrowing, (iii) whether the proposed Bid Borrowing is to be an
Absolute Rate Loan or a LIBOR Rate Loan and the Loan Period, (iv) the maturity
date for repayment of each Bid Loan to be made as part of such borrowing (which
maturity date shall not be earlier than one month after the date of any proposed
LIBOR Rate Loan or 14 days after the date of any proposed Absolute Rate Loan or
later than the earliest to occur of (x) six months after the date of such
proposed Bid Loan, (y) the Termination Date and (z) if the proposed Bid Loan has
an interest rate that is the LIBOR Rate, the last day of the proposed Loan
Period), (v) the interest payment date or dates relating thereto, (vi) the
account to which the proceeds of such Bid Borrowing are to be credited and (vii)
any other terms to be applicable to such Bid Borrowing. The Agent shall promptly
give each Bank written notice (or telephonic notice promptly confirmed in
writing) of each such request for a Bid Borrowing received by it from the
Company. Each Notice of Competitive Bid Borrowing shall contemplate Bid Loans in
a minimum aggregate principal amount of $10,000,000 or a higher integral
multiple of $1,000,000, not to exceed, however, the excess of the then Aggregate
Commitment over the aggregate principal amount of all outstanding Loans,
calculated as of the relevant Funding Date, assuming that the Company will pay,
when due, all Loans maturing on or prior to such Funding Date (the "Available
Commitment").
(b) Bidding Procedure. Each Bank shall, if in its sole
discretion it elects to do so, irrevocably offer to make one or more Bid Loans
to the Company as part of such proposed Bid Borrowing at a rate or rates of
interest specified by such Bank in its sole discretion and determined by such
Bank independently of each other Bank, by notifying by telephone confirmed in
writing to the Agent at its Notice Office (which shall give prompt notice
thereof to the Company), before 10:00 a.m., New York City time, on the date (the
"Submission Deadline") that is (x) in the case of a proposed Absolute Rate Loan,
the same day as the date of such proposed Bid Loan and (y) in the case of a
proposed LIBOR Rate Loan, two Business Days before the date of such proposed Bid
Loan. Each Bid shall be substantially in the form of Exhibit B (each a "Bid"),
and shall specify in each case (i) the Loan Period, (ii) the minimum amount and
maximum amount of each Bid Loan that such Bank would be willing to make as part
of such proposed Bid Borrowing (which amounts may, subject to the proviso in
Section 2.1, exceed such Bank's Commitment), (iii) the rate or rates of interest
therefor and (iv) such Bank's lending office with respect to such Bid Loan;
provided, that if the Agent in its capacity as a Bank shall, in its sole
discretion, elect to make any such offer, it shall notify the Company of such
offer before 8:30 a.m., New York City time, on the Submission Deadline.
(c) Acceptance of Bids. The Company shall, in turn,
before 10:30 a.m., New York City time, on the Submission Deadline, either:
(i) cancel such proposed Bid Borrowing by giving the
Agent notice to that effect, or
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(ii) accept (such acceptance to be irrevocable) one or
more of the offers made by any Bank or Banks pursuant to clause (b)
above by giving notice (in writing or by telephone confirmed in
writing) to the Agent of the amount of each Bid Loan (which amount
shall be equal to or greater than the minimum amount, and equal to or
less than the maximum amount, notified to the Company by the Agent on
behalf of such Bank for such Bid Borrowing pursuant to clause (b)
above) to be made by such Bank as part of such Bid Borrowing, and
reject any remaining offers made by any Bank pursuant to clause (b)
above by giving the Agent notice to that effect; provided, that for any
maturity date acceptance of offers may only be made on the basis of
ascending Absolute Rates (in the case of an Absolute Rate Loan) or
floating rates (in the case of a LIBOR Rate Loan), in each case
commencing with the lowest rate so offered and only as to offers made
in conformity with the terms hereof; provided, further, however, if
offers are made by two or more Banks at the same rate or rates and
acceptance of all such equal offers would result in a greater principal
amount of Bid Loans being accepted than the aggregate principal amount
requested by the Company, the Company shall have the right to accept
one or more of such equal offers in their entirety and reject the other
equal offer or offers or to allocate acceptance among all such equal
offers (but giving effect to the minimum and maximum amounts specified
for each such offer pursuant to clause (b) above), as the Company may
elect in its sole discretion. The Company may not accept offers whose
aggregate principal amount is greater than the requested aggregate
amount as specified in the related Notice of Competitive Bid Borrowing,
subject to the proviso in Section 2.1.
(d) Cancellation of Bid Borrowing. If the Company
notifies the Agent that such proposed Bid Borrowing is cancelled pursuant to
clause (c)(i) above, the Agent shall give prompt notice thereof to the Banks and
such Bid Borrowing shall not be made.
(e) Notification of Acceptance. If the Company accepts
one or more of the offers made by any Bank or Banks pursuant to clause (c)(ii)
above, the Agent shall in turn promptly notify (x) each Bank that has made an
offer as described in clause (b) above, of the date and aggregate amount of such
Bid Borrowing and whether or not any offer or offers made by such Bank pursuant
to clause (b) above have been accepted by the Company and (y) each Bank that is
to make a Bid Loan as part of such Bid Borrowing, of the amount of each Bid Loan
to be made by such Bank as part of such Bid Borrowing.
(f) Reliance. The Agent may rely and act upon notice
given by telephone by individuals reasonably believed by the Agent to be those
designated to the Agent by the Company or by any Bank in writing from time to
time, without waiting for receipt of written confirmation thereof, and the
Company hereby agrees to indemnify and hold harmless the Agent from and against
any and all losses, costs, expenses, damages, claims, actions or other
proceedings relating to such reliance.
Section 2.3. Funding of Bid Loans. No later than 1:00 p.m.,
New York City time, on the date specified in each Notice of Competitive Bid
Borrowing, each Bank will make available the Bid Loan, if any, to be made by
such Bank as part of the Bid Borrowing requested to be made on such date in the
manner provided below. All amounts shall be made available to the Agent in
Dollars and immediately available funds at the Payment Office of the Agent and
the
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Agent promptly will make available to the Company at its account specified in
the relevant Notice of Competitive Bid Borrowing the aggregate of the amounts so
made available in the type of funds received. Unless the Agent shall have been
notified by any Bank which has submitted a bid pursuant to Section 2.2(b) prior
to the date of the proposed Bid Borrowing that such Bank does not intend to make
available to the Agent its portion, if any, of the Bid Borrowing to be made on
such date, the Agent may assume that such Bank has made such amount available to
the Agent on such date of the Bid Borrowing, and the Agent, in reliance upon
such assumption, may (in its sole discretion and without any obligation to do
so) make available to the Company a corresponding amount.
SECTION 3. COMMITTED LOANS AND NOTES.
Section 3.1. Agreement to Make Committed Loans. On the terms
and subject to the conditions of this Agreement, each Bank, severally and for
itself alone, agrees to make Loans (herein collectively called "Committed Loans"
and individually each called a "Committed Loan") on a revolving basis from time
to time from the date hereof until such Bank's Termination Date in such Bank's
Percentage of such aggregate amounts as the Company may from time to time
request as provided in Section 3.2; provided, that (a) the aggregate principal
amount of all outstanding Committed Loans of any Bank shall not at any time
exceed the amount set forth opposite such Bank's name on Schedule I (as reduced
in accordance with Section 5.1, Section 13.4 or Section 13.8) and (b) the
aggregate principal amount of all outstanding Committed Loans of all Banks plus
the aggregate principal amount of all outstanding Bid Loans of all Banks shall
not at any time exceed the then Aggregate Commitment. Within the limits of this
Section 3.1, the Company may from time to time borrow, prepay and reborrow
Committed Loans on the terms and conditions set forth in this Agreement.
Section 3.2. Procedure for Committed Loans.
(a) Committed Loan Requests. The Company shall give the
Agent irrevocable telephonic notice at the Notice Office (promptly confirmed in
writing on the same day), not later than 10:30 a.m., New York City time, (i) at
least three Business Days prior to the Funding Date in the case of LIBOR Rate
Loans or (ii) on the Funding Date in the case of Base Rate Loans, of each
requested Committed Loan, and the Agent shall promptly advise each Bank thereof
and, in the case of a LIBOR Rate Loan, if the Telerate Page is not available,
request each Reference Bank to notify the Agent of its applicable rate (as
contemplated in the definition of LIBOR). Each such notice to the Agent (a
"Committed Loan Request") shall be substantially in the form of Exhibit C and
shall specify (i) the Funding Date (which shall be a Business Day), (ii) the
aggregate amount of the Loans requested (in an amount permitted under clause (b)
below), (iii) whether each Loan shall be a LIBOR Rate Loan or a Base Rate Loan
and (iv) if a LIBOR Rate Loan, the Loan Period therefor (subject to the
limitations set forth in the definition of Loan Period).
(b) Amount and Increments of Committed Loans. Each
Committed Loan Request shall contemplate Committed Loans in a minimum aggregate
amount of $10,000,000 or a higher integral multiple of $1,000,000, not to exceed
in the aggregate (for all requested Committed Loans) the Available Commitment.
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(c) Funding of Committed Loans.
(i) Not later than 1:30 p.m., New York City time, on the
Funding Date of a Committed Loan, each Bank shall, subject to this Section
3.2(c), provide the Agent at its Notice Office with immediately available funds
covering such Bank's Committed Loan (provided, that a Bank's obligation to
provide funds to the Agent shall be deemed satisfied by such Bank's delivery to
the Agent at its Notice Office not later than 1:30 p.m., New York City time, of
a Federal reserve wire confirmation number covering the proceeds of such Bank's
Committed Loan) and the Agent shall pay over such funds to the Company not later
than 2:00 p.m., New York City time, on such day if the Agent shall have received
the documents required under Section 10 with respect to such Loan and the other
conditions precedent to the making of such Loan shall have been satisfied not
later than 10:00 a.m., New York City time, on such day. If the Agent does not
receive such documents or such other conditions precedent have not been
satisfied prior to such time, then (A) the Agent shall not pay over such funds
to the Company, (B) the Company's Committed Loan Request related to such Loan
shall be deemed cancelled in its entirety, (C) in the case of Committed Loan
Requests relative to LIBOR Rate Loans, the Company shall be liable to each Bank
in accordance with Section 7.4(a) and (D) the Agent shall return the amount
previously provided to the Agent by each Bank on the next following Business
Day.
(ii) The Company agrees, notwithstanding its previous
delivery of any documents required under Section 10 with respect to a particular
Loan, immediately to notify the Agent of any failure by it to satisfy the
conditions precedent to the making of such Loan. The Agent shall be entitled to
assume, after it has received each of the documents required under Section 10
with respect to a particular Loan, that each of the conditions precedent to the
making of such Loan has been satisfied absent actual knowledge to the contrary
received by the Agent prior to the time of the receipt of such documents. Unless
the Agent shall have notified the Banks prior to 10:30 a.m., New York City time,
on the Funding Date of any Loan that the Agent has actual knowledge that the
conditions precedent to the making of such Loan have not been satisfied, the
Banks shall be entitled to assume that such conditions precedent have been
satisfied.
(d) Repayment of Loans. If any Bank is to make a
Committed Loan hereunder on a day on which the Company is to repay (or has
elected to prepay, pursuant to Section 5.2) all or any part of any outstanding
Loan held by such Bank, the proceeds of such new Committed Loan shall be applied
to make such repayment and only an amount equal to the positive difference, if
any, between the amount being borrowed and the amount being repaid shall be
requested by the Agent to be made available by such Bank to the Agent as
provided in Section 3.2(c).
Section 3.3. Maturity of Committed Loans. Except for a Base
Rate Loan, which shall mature on the Termination Date (or the date contemplated
by Section 5.3 if the Term-Out Option is in effect), a Committed Loan made by a
Bank shall mature on the last day of the Loan Period applicable to such
Committed Loan, but in no event later than the Termination Date for such Bank
(or the date contemplated by Section 5.3 if the Term-Out Option is in effect).
SECTION 4. INTEREST AND FEES.
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Section 4.1. Interest Rates. The Company hereby promises to
pay interest on the unpaid principal amount of each Loan for the period
commencing on the Funding Date for such Loan until such Loan is paid in full, as
follows:
(a) if such Loan is a Bid Loan, at a rate per annum equal
to the Absolute Rate or the LIBOR Rate, as applicable, offered by the applicable
Bank and accepted by the Company for such Bid Loan;
(b) if such Loan is a Base Rate Loan, at a rate per annum
equal to the Base Rate from time to time in effect; and
(c) if such Loan is a Committed Loan that is a LIBOR Rate
Loan, at a rate per annum equal to the LIBOR Rate applicable to the Loan Period
for such Loan; provided, however, that after the maturity of any Loan (whether
by acceleration or otherwise), such Loan shall bear interest on the unpaid
principal amount thereof at a rate per annum (calculated on the basis of a
360-day year for the actual number of days involved) equal to the Base Rate from
time to time in effect (but not less than the interest rate in effect for such
Loan immediately prior to maturity) plus 1% per annum.
Section 4.2. Interest Payment Dates. Except for Base Rate
Loans, as to which accrued interest shall be payable on the last day of each
calendar quarter and on the Termination Date (or the date contemplated by
Section 5.3 if the Term-Out Option is in effect), accrued interest on each Loan
shall be payable in arrears on the last day of the Loan Period therefor and (i)
with respect to each LIBOR Rate Loan with a Loan Period of six months, on the
day that is three months after the first day of such Loan Period (or, if there
is no day in such third month numerically corresponding to such first day of the
Loan Period, on the last Business Day of such month) and (ii) with respect to
each Absolute Rate Loan with a Loan Period exceeding 90 days, on the day that is
90 days after the first day of such Loan Period. After the maturity of any Loan,
accrued interest on such Loan shall be payable on demand. If any interest
payment date falls on a day that is not a Business Day, such interest payment
date shall be postponed to the next succeeding Business Day and the interest
paid shall cover the period of postponement (except that if the Loan is a LIBOR
Rate Loan and the next succeeding Business Day falls in the next succeeding
calendar month, such interest payment date shall be the immediately preceding
Business Day).
Section 4.3. Setting and Notice of Committed Loan Rates. The
applicable interest rate for each Committed Loan hereunder shall be determined
by the Agent and notice thereof shall be given by the Agent promptly to the
Company and to each Bank. Each determination of the applicable interest rate by
the Agent shall be conclusive and binding upon the parties hereto in the absence
of demonstrable error.
In the case of LIBOR Rate Loans, each Reference Bank agrees to
use its best efforts to notify the Agent in a timely fashion of its applicable
rate after the Agent's request (if any) therefor under Section 2.2(a) and
Section 3.2(a) (as contemplated in the definition of LIBOR). If as to any Loan
Period the Telerate Page is not available and any one or more of the Reference
Banks is unable or for any reason fails to notify the Agent of its applicable
rate by
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11:30 a.m., New York City time, two Business Days before the Funding Date, then
the applicable LIBOR Rate shall be determined on the basis of the rate or rates
of which the Agent is given notice by the remaining Reference Bank or Banks by
such time. If the Telerate Page is not available and none of the Reference Banks
notifies the Agent of the applicable rate prior to 11:30 a.m., New York City
time, two Business Days before the Funding Date, then (i) the Agent shall
promptly notify the other parties thereof and (ii) at the option of the Company
the Committed Loan Request delivered by the Company pursuant to Section 3.2(a)
with respect to such Funding Date shall be cancelled or shall be deemed to have
specified a Base Rate Loan.
The Agent shall, upon written request of the Company or any
Bank, deliver to the Company or such Bank a statement showing the computations
used by the Agent in determining the interest rate applicable to any LIBOR Rate
Loan.
Section 4.4. Facility Fee. The Company agrees to pay to the
Agent for the accounts of the Banks pro rata in accordance with their respective
Percentages an annual facility fee computed by multiplying the average daily
amount of the Aggregate Commitment (whether used or unused) by the applicable
percentage determined with respect to such facility fee in accordance with
Schedule II hereto. Such fee shall be payable quarterly in arrears on the last
Business Day of March, June, September and December of each year (beginning with
the last Business Day of December, 2003) until the Commitments have expired or
have been terminated and on the date of such expiration or termination (and, in
the case of any Terminating Bank, such Bank's Termination Date), in each case
for the period then ending for which such facility fee has not previously been
paid.
Section 4.5. Utilization Fee. The Company agrees to pay to the
Agent for the accounts of the Banks pro rata in accordance with their respective
Percentages, (i) during any period that the aggregate outstanding principal
amount of the Loans exceeds 33.33% of the Aggregate Commitment, a utilization
fee computed by multiplying the average daily amount of the Aggregate Commitment
by the applicable percentage determined with respect to such utilization fee in
accordance with Schedule II hereto and (ii) during any period that the aggregate
outstanding principal amount of the Loans exceeds 66.66% of the Aggregate
Commitment, a utilization fee in addition to the utilization fees accruing
pursuant to clause (i) above computed by multiplying the average daily amount of
the Aggregate Commitment by the applicable percentage determined with respect to
such utilization fee in accordance with Schedule II hereto; provided, that if
the then outstanding aggregate principal amount of Bid Loans exceeds an amount
equal to 33.33% of the Aggregate Commitments as then in effect, then in
calculating the aggregate outstanding principal amount of the Loans for purposes
of this Section 4.5 only, the aggregate outstanding principal amount of Loans
shall not include an amount equal to 33.33% of the Aggregate Commitments as then
in effect. Accrued utilization fees shall be due and payable on each date that
interest is payable on each such Loan.
Section 4.6. Agent's Fees. The Company agrees promptly to pay
to the Agent such fees as may be agreed from time to time by the Company and the
Agent.
Section 4.7. Computation of Interest and Fees. Interest on
LIBOR Rate Loans, and facility and utilization fees shall be computed for the
actual number of days elapsed on the
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basis of a 360-day year; and interest on Base Rate Loans shall be computed for
the actual number of days elapsed on the basis of a 365/366 day year, as the
case may be. The interest rate applicable to each LIBOR Rate Loan and Base Rate
Loan, and (to the extent applicable) after the maturity of any other type of
Loan, the interest rate applicable to such Loan, shall change simultaneously
with each change in the LIBOR Rate or the Base Rate, as applicable.
SECTION 5. REDUCTION OR TERMINATION OF THE COMMITMENTS;
REPAYMENT; PREPAYMENTS.
Section 5.1. Voluntary Termination or Reduction of the
Commitments. The Company may at any time on at least 5 days' prior irrevocable
notice received by the Agent (which shall promptly on the same day or on the
next Business Day advise each Bank thereof) permanently reduce the amount of the
Commitments (such reduction to be pro rata among the Banks according to their
respective Percentages) to an amount not less than the aggregate principal
amount of all outstanding Loans. Any such reduction shall be in the amount of
$5,000,000 or an integral multiple of $1,000,000 in excess thereof. Concurrently
with any such reduction, the Company shall prepay the principal of any Committed
Loans outstanding to the extent that the aggregate amount of such Loans
outstanding shall then exceed the Aggregate Commitment, as so reduced. The
Company may from time to time on like irrevocable notice terminate the
Commitments upon payment in full of all Loans, all interest accrued thereon, all
fees and all other obligations of the Company hereunder; provided, however, that
the Company may not at any time terminate the Commitments if any Bid Loan is
outstanding (unless the holder of each such outstanding Bid Loan has given its
prior written consent to the concurrent repayment of such Bid Loan).
Section 5.2. Voluntary Prepayments. The Company may
voluntarily prepay Loans (other than Bid Loans, which may only be prepaid with
the prior written consent of the holder thereof) without premium or penalty,
except as may be required pursuant to subsection (e) below, in whole or in part;
provided, that (a) each prepayment shall be in an aggregate principal amount of
$10,000,000 or an integral multiple of $1,000,000 in excess thereof, (b) except
for the prepayment of the aggregate amount of all Loans outstanding, no such
prepayment shall result in there being less than $10,000,000 in Loans
outstanding in the aggregate, (c) the Company shall give the Agent at its Notice
Office (which shall promptly advise each Bank) not less than three Business
Days' prior notice thereof specifying the Loans to be prepaid and the date and
amount of prepayment, (d) any prepayment of principal of any Loan shall include
accrued interest to the date of prepayment on the principal amount being prepaid
and (e) any prepayment of a LIBOR Rate Loan shall be subject to the provisions
of Section 7.4.
Section 5.3. Term-Out Option. The Company may, by notice to
the Agent not less than 10 days prior to the then-effective Termination Date,
subject to the conditions set forth below in this Section 5.3, elect to convert
the aggregate outstanding principal amount of the Committed Loans of each Bank
as of such then-effective Termination Date to a term loan of such Bank in said
amount (herein collectively called "Term Loans" and individually each called a
"Term Loan"). Each Term Loan shall bear interest, from and including such
then-effective Termination Date until the payment thereof in full, at a rate per
annum equal to (x) in the case such Term Loan is a Base Rate Loan, the Base Rate
from time to time in effect and (y) in the case such Term Loan is a LIBOR Rate
Loan, the LIBOR Rate applicable to the Loan Period for
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such Term Loan, and in each case shall otherwise constitute a Committed Loan for
all purposes of this Agreement. The Company agrees to repay to the Agent for
account of the Banks the unpaid principal amount of the Term Loans on the date
364 days after such then-effective Termination Date or, if such date is not a
Business Day, the immediately preceding Business Day (and any outstanding
Committed Note shall be deemed amended accordingly). Once repaid or prepaid
(other than as contemplated by Section 3.2(d)), Term Loans cannot be reborrowed.
Anything in this Section 5.3 to the contrary notwithstanding, any such
conversion shall be subject to the conditions precedent that (i) no Unmatured
Event of Default or Event of Default shall have occurred and be continuing on
such then-effective Termination Date and (ii) the representations and warranties
made by the Company in Section 8 shall be true on and as of such then-effective
Termination Date with the same force and effect as if made on and as of such
date. Each notice of conversion delivered by the Company in accordance with this
Section 5.3 shall constitute a certification by the Company to the effect set
forth in the preceding sentence (both as of the date of such notice and, unless
the Company, after delivery of such notice, otherwise notifies the Agent prior
to such then-effective Termination Date, as of such date). Notwithstanding
anything in this Agreement to the contrary, facility fees contemplated by
Section 4.4 and utilization fees contemplated by Section 4.5 shall cease to
accrue after the effectiveness of the Term-Out Option.
SECTION 6. MAKING AND PRORATION OF PAYMENTS; SET-OFF; TAXES.
Section 6.1. Making of Payments. Except as provided in Section
3.2(d), payments (including those made pursuant to Section 5.1) of principal of,
or interest on, the Loans and all payments of fees shall be made by the Company
to the Agent in immediately available funds at its Payment Office not later than
12:00 Noon, New York City time, on the date due; and funds received after that
hour shall be deemed to have been received by the Agent on the next following
Business Day. The Agent shall promptly remit to each Bank its share (if any) of
each such payment. All payments under Section 7 shall be made by the Company
directly to the Persons entitled thereto.
Section 6.2. Pro Rata Treatment; Sharing.
(a) Except as required pursuant to Section 7 or Section
13.8, each payment or prepayment of principal of any Committed Loans, each
payment of interest on the Committed Loans, and each payment of the facility fee
shall be allocated pro rata among the Banks in accordance with their respective
Percentages. Each payment of principal of any Bid Borrowing shall be allocated
pro rata among the Banks participating in such Bid Borrowing in accordance with
the respective principal amounts of their outstanding Bid Loans comprising such
Bid Borrowing. Each payment of interest on any Bid Borrowing shall be allocated
pro rata among the Banks participating in such Bid Borrowing in accordance with
the respective amounts of accrued and unpaid interest on their outstanding Bid
Loans comprising such Bid Borrowing.
(b) If any Bank or other holder of a Committed Loan shall
obtain any payment or other recovery (whether voluntary, involuntary, by
application of offset or otherwise) on account of principal of, interest on or
fees or other amounts with respect to any Committed Loan in
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excess of the share of payments and other recoveries (exclusive of payments or
recoveries under Section 7 or pursuant to Section 13.8) such Bank or other
holder would have received if such payment had been distributed pursuant to the
provisions of Section 6.2(a), such Bank or other holder shall purchase from the
other Banks or holders, in a manner to be specified by the Agent, such
participations in the Committed Loans held by them as shall be necessary so that
all such payments of principal and interest with respect to the Committed Loans
shall be shared by the Banks and other holders pro rata in accordance with their
respective Percentages; provided, however, that if all or any portion of the
excess payment or other recovery is thereafter recovered from such purchasing
Bank or holder, the purchase shall be rescinded and the purchase price restored
to the extent of such recovery, but without interest.
(c) If any Bank or other holder of a Bid Loan shall
obtain any payment or other recovery (whether voluntary, involuntary, by
application of offset or otherwise) on account of principal of, interest on or
fees or other amounts with respect to any Bid Loan in excess of the share of
payments and other recoveries (exclusive of payments or recoveries pursuant to
Section 7 or Section 13.8) such Bank or other holder would have received if such
payment had been distributed pursuant to the provisions of Section 6.2(a), such
Bank or other holder shall purchase from the other Banks or holders
participating in such Bid Borrowing, in a manner to be specified by the Agent,
such participations in the Bid Loans held by them as shall be necessary so that
all such payments of principal and interest with respect to the Bid Loans shall
be shared by the Banks and other holders participating in such Bid Borrowing in
a manner consistent with Section 6.2(a); provided, however, that if all or any
portion of the excess payment or other recovery is thereafter recovered from
such purchasing Bank or holder, the purchase shall be rescinded and the purchase
price restored to the extent of such recovery, but without interest.
Section 6.3. Set-off. The Company agrees that the Agent, each
Bank, each Assignee and each Participant has all rights of set-off and bankers'
lien provided by applicable law, and the Company further agrees that at any time
(i) any amount owing by the Company under this Agreement is due to any such
Person or (ii) any Event of Default exists, each such Person may apply to the
payment of any amount payable hereunder any and all balances, credits, deposits,
accounts or moneys of the Company then or thereafter with such Person.
Section 6.4. Taxes, etc. (a) All payments made by the Company
to the Agent, any Bank, any Assignee or any Participant under this Agreement and
the Notes shall be made without any set-off or counterclaim, and free and clear
of and without deduction for or on account of any present or future Covered
Taxes now or hereafter imposed (except to the extent that such withholding or
deduction (x) is compelled by law, (y) results from the breach, by the recipient
of a payment, of its agreement contained in Section 6.4(b), Section 6.4(c) or
Section 6.4(e) or (z) would not be required if the representation or warranty
contained in the second sentence of Section 6.4(b) were true as of the date of
this Agreement, or with respect to a Bank that becomes a Bank pursuant to
Section 13.4.1, Section 13.4.2 or Section 13.8, true at the time such Bank
becomes a Bank hereunder). If the Company is compelled by law to make any such
deductions or withholdings of any Covered Taxes it will:
(i) pay to the relevant authorities the full amount
required to be so withheld or deducted,
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(ii) except to the extent that such withholding or
deduction results from the breach by the recipient of its agreement
contained in Section 6.4(b), Section 6.4(c) or Section 6.4(e) or, if
applicable, would not be required if the representation or warranty
contained in the second sentence of Section 6.4(b) were true as of the
date of this Agreement, or with respect to a Bank that becomes a Bank
pursuant to Section 13.4.1, Section 13.4.2 or Section 13.8, true at the
time such Bank becomes a Bank hereunder, pay such additional amounts as
may be necessary in order that the net amount received by the Agent,
each Bank, each Assignee and each Participant after such deductions or
withholdings (including any required deduction or withholding on such
additional amounts) shall equal the amount such payee would have
received had no such deductions or withholdings been made, and
(iii) promptly forward to the Agent (for delivery to such
payee) an official receipt or other documentation satisfactory to the
Agent evidencing such payment to such authorities.
Moreover, if any Covered Taxes are directly asserted against
the Agent, any Bank, any Assignee or any Participant, such payee may pay such
Covered Taxes, and, upon receipt of an official receipt or other satisfactory
documentation evidencing such payment, the Company shall promptly pay such
additional amount (including, without limitation, any penalties, interest or
reasonable expenses) as may be necessary in order that the net amount received
by such payee after the payment of such Covered Taxes (including any Covered
Taxes on such additional amount) shall equal the amount such payee would have
received had no such Covered Taxes been asserted (provided, that the Agent, the
Banks, and any Assignee or Participant shall use reasonable efforts, to the
extent consistent with applicable laws and regulations, to minimize to the
extent possible any such Covered Taxes if they can do so without material cost
or legal or regulatory disadvantage). For purposes of this Section 6.4, a
distribution hereunder by the Agent or any Bank to or for the account of any
Bank, Assignee or Participant shall be deemed to be a payment by the Company.
The Company's agreement under this Section 6.4 shall survive repayment of the
Loans, cancellation of the Notes or any termination of this Agreement.
(b) In consideration of, and as a condition to, the
Company's undertakings in Section 6.4(a), each Bank other than a Bank that is
organized and existing under the laws of the United States of America or any
State thereof (a "Non-U.S. Bank") agrees to execute and deliver to the Agent at
its Payment Office for delivery to the Company, before the first scheduled
payment date in each year, (i) to the extent it acts for its own account with
respect to any portion of any sums paid or payable to such Non-U.S. Bank under
this Agreement, two original copies of United States Internal Revenue Service
Forms X-0XXX, X-0XXX or W-8EXP (or any successor forms), as appropriate,
properly completed and duly executed by such Non-U.S. Bank, and claiming
complete exemption from withholding and deduction of United States Federal
Taxes, and (ii) to the extent it does not act or has ceased to act for its own
account with respect to any portion of any sums paid or payable to such Bank
under this Agreement (for example, in the case of a typical Participation by
such Non-U.S. Bank), (1) for the portion of any such sums paid or payable with
respect to which such Non-U.S. Bank acts for its own account, two original
copies
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of the forms or statements required to be provided by such Non-U.S. Bank under
subsection (i) of this Section 6.4(b), properly completed and duly executed by
such Non-U.S. Bank and claiming complete exemption from withholding and
deduction of United States Federal Taxes, and (2) for the portion of any such
sums paid or payable with respect to which such Non-U.S. Bank does not act or
has ceased to act for its own account, two original copies of United States
Internal Revenue Service Form W-8IMY (or any successor forms), properly
completed and duly executed by such Non-U.S. Bank, together with any
information, if any, such Non-U.S. Bank chooses to transmit with such form, and
any other certificate or statement of exemption required under the Internal
Revenue Code or the regulations issued thereunder. Each Bank hereby (i)
represents and warrants to the Company that, at the date of this Agreement, or
at the time such Bank becomes a Bank hereunder, it is entitled to receive
payments of principal and interest hereunder without deduction for or on account
of any Taxes imposed by the United States of America or any political
subdivision thereof, and (ii) acknowledges that in the event that after the date
of this Agreement or after the date that a Bank becomes a Bank hereunder, such
Bank is no longer entitled to receive payments or principal and interest
hereunder without deduction for or on account of any Taxes imposed by the United
States of America or any political subdivision thereof, such Bank will be
subject to removal pursuant to Section 13.8 hereof.
(c) Each Non-U.S. Bank hereby agrees, from time to time
after the initial delivery by such Non-U.S. Bank of any forms or other
information pursuant to Section 6.4(b), whenever a lapse in time or change in
circumstances renders such forms, certificates or other evidence so delivered
obsolete or inaccurate in any material respect, that such Non-U.S. Bank shall
promptly (and in all events, prior to the next applicable payment date), deliver
to the Agent at the Payment Office for delivery to the Company two original
copies of any renewal, amendment or additional or successor forms, properly
completed and duly executed by such Non-U.S. Bank, together with any other
certificate or statement of exemption required by applicable law or regulation
in order to (i) confirm or establish such Non-U.S. Bank's complete exemption
from withholding and deduction of United States Federal Taxes with respect to
payments to such Bank under this Agreement or (ii) in the case of a change in
law after the date on which such Non-U.S. Bank became a Bank hereunder that
results in a withholding or deduction of United States Federal Taxes on payments
hereunder to such Non-U.S. Bank, establish the status of such Non-U.S. Bank as
other than a United States person for United States Federal tax purposes and, to
the extent entitled under an applicable treaty or other law, claim the benefit
of a reduced rate of withholding and deduction of United States Federal Taxes
with respect to any such payments under an applicable tax treaty of the United
States, or (iii) if applicable, confirm or establish that such Non-U.S. Bank
does not act for its own account with respect to any portion of any such
payments.
(d) If the Company determines in good faith that a
reasonable basis exists for contesting a Covered Tax with respect to which the
Company has paid an additional amount under this Section 6.4, the Agent and the
Banks, as applicable, shall, subject to Section 6.4(f), cooperate with the
Company in challenging such Covered Tax at the Company's expense if requested by
the Company (it being understood and agreed that neither the Agent nor any Bank
shall have any obligation to contest, or any responsibility for contesting, any
Tax). If the Agent or a Bank has actual knowledge that it is entitled to receive
a refund (whether by way of a direct payment or by clearly identifiable offset
to an amount otherwise owed to the relevant taxing
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authority) in respect of a Covered Tax with respect to which the Company has
paid an additional amount under this Section 6.4, it shall promptly notify the
Company of the availability of such refund (unless it was made aware of such
refund by the Company) and shall, within 30 days after the receipt of a request
from the Company, apply for such refund at the Company's expense. If the Agent
or any Bank receives a refund (whether by way of a direct payment or by clearly
identifiable offset to an amount otherwise owed to the relevant taxing
authority) of any Covered Tax with respect to which the Company has paid an
additional amount under this Section 6.4 which, in the reasonable good faith
judgment of the Agent or such Bank, as the case may be, is allocable to such
payment made under this Section 6.4, the amount of such refund (together with
any interest received thereon) shall be paid to the Company, but only to the
extent of the additional amounts received from the Company, provided that, in
the case of a Covered Tax the Company was required to deduct and withhold under
this Section 6.4, the Company deducted and withheld such Covered Tax in full as
and when required pursuant to this Section 6.4, provided further, that if such
refund subsequently becomes unavailable or must be returned, this will be
treated as a Covered Tax indemnifiable under this Section 6.4.
(e) Each Bank that is organized and existing under the
laws of the United States of America or any State thereof (a "U.S. Bank") agrees
to execute and deliver to the Agent at the Payment Office for delivery to the
Company, on or before the date of this Agreement or on or before the date such
Bank becomes a Bank hereunder and on or before the date on which such Bank
ceases to act for its own account with respect to the applicable portion of any
sums paid or payable to such U.S. Bank and before the first scheduled payment
date in each subsequent year a copy of United States Internal Revenue Service
Form W-9 (or any successor forms) properly completed and duly executed by such
U.S. Bank, and claiming that it is organized and existing under the laws of the
United States of America or any State thereof.
(f) Nothing contained in this Section 6.4 shall require
any Bank to make available its tax returns (or any other information relating to
its taxes that it deems confidential) to the Company or any other Person.
(g) Each Bank shall promptly notify the Company and the
Agent of any event of which it has knowledge, occurring after the date hereof,
which will entitle such Bank to receipt of additional amounts pursuant to this
Section 6.4 and will designate a different Funding Office if such designation
will avoid the need for, or reduce the amount of, such amounts and will not, in
such Bank's sole discretion, be otherwise disadvantageous to such Bank.
SECTION 7. INCREASED COSTS AND SPECIAL PROVISIONS FOR
ABSOLUTE RATE LOANS AND LIBOR RATE LOANS.
Section 7.1. Increased Costs. (a) If after the date hereof,
the adoption of any applicable law, rule or regulation, or any change therein,
or any change in the interpretation or administration thereof by any
Governmental Authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Bank (or any
Funding Office of such Bank) with any request or directive (whether or not
having the force of law) of any such authority, central bank or comparable
agency,
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(A) shall subject any Bank (or any Funding Office of such
Bank) to any tax, duty or other charge with respect to its LIBOR Rate
Loans, its Notes or its obligation to make LIBOR Rate Loans, or shall
change the basis of taxation of payments to any Bank (or any Funding
Office of such Bank) of the principal of or interest on its LIBOR Rate
Loans or any other amounts due under this Agreement in respect of its
LIBOR Rate Loans or its obligation to make LIBOR Rate Loans (except for
changes in the rate of tax on the overall net income of such Bank or
its Funding Office imposed by any Governmental Authority of the country
in which such Bank is incorporated or in which such Bank's Funding
Office is located);
(B) shall impose, modify or deem applicable any reserve
(including, without limitation, any reserve imposed by the Board of
Governors of the Federal Reserve System, but excluding any reserve
included in the determination of additional interest pursuant to
Section 4.1), special deposit, assessment (including any assessment for
insurance of deposits) or similar requirement against assets of,
deposits with or for the account of, or credit extended by, any Bank
(or any Funding Office of such Bank); or
(C) shall impose on any Bank (or any Funding Office of
such Bank) any other condition affecting its LIBOR Rate Loans, its
Notes or its obligation to make or maintain LIBOR Rate Loans;
and the result of any of the foregoing is to increase the cost to (or to impose
an additional cost on) such Bank (or any Funding Office of such Bank) of making
or maintaining any LIBOR Rate Loan, or to reduce the amount of any sum received
or receivable by such Bank (or such Bank's Funding Office) under this Agreement
or under its Notes with respect thereto, then within 10 days after demand by
such Bank (which demand shall be accompanied by a statement setting forth the
basis of such demand), the Company shall pay directly to such Bank such
additional amount or amounts as will compensate such Bank for such increased
cost or such reduction (without duplication of any amounts which have been paid
or reimbursed).
(b) If, after the date hereof, any Bank shall determine
that the adoption, effectiveness or phase-in of any applicable law, rule,
guideline or regulation regarding capital adequacy, or any change therein, or
any change in the interpretation or administration thereof by any Governmental
Authority, central bank or comparable agency charged with the interpretation or
administration thereof, or compliance by any Bank (or any Funding Office of such
Bank or any Person controlling such Bank) with any request or directive
regarding capital adequacy (whether or not having the force of law) of any such
authority, central bank or comparable agency, has or would have the effect of
reducing the rate of return on the capital of such Bank or any Person
controlling such Bank as a consequence of its obligations hereunder to a level
below that which such Bank or such controlling Person could have achieved but
for such adoption, change or compliance (taking into consideration such Bank's
or such controlling Person's policies with respect to capital adequacy), then,
from time to time, within 10 days after demand by such Bank (which demand shall
be accompanied by a statement setting forth the basis of such demand), the
Company shall pay directly to such Bank such additional amount or amounts as
will compensate such Bank or such controlling Person for such reduction.
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(c) Each Bank shall promptly notify the Company and the
Agent of any event of which it has knowledge, occurring after the date hereof,
which will entitle such Bank to compensation pursuant to this Section 7.1 and
will designate a different Funding Office if such designation will avoid the
need for, or reduce the amount of, such compensation and will not, in such
Bank's sole judgment, be otherwise disadvantageous to such Bank.
Section 7.2. Basis for Determining Interest Rate Inadequate or
Unfair. If with respect to the Loan Period for any LIBOR Rate Loan:
(a) the Telerate Page is not available and the Agent is
advised by two or more Reference Banks that deposits in Dollars (in the
applicable amounts) are not being offered to such Reference Banks in
the relevant market for such Loan Period, or the Agent otherwise
determines (which determination shall be binding and conclusive on all
parties) that, by reason of circumstances affecting the LIBOR market,
adequate and reasonable means do not exist for ascertaining the
applicable LIBOR Rate; or
(b) the Required Banks advise the Agent that the LIBOR
Rate as determined by the Agent will not adequately and fairly reflect
the cost to such Required Banks of maintaining or funding LIBOR Rate
Loans for such Loan Period, or that the making or funding of LIBOR Rate
Loans has become impracticable as a result of an event occurring after
the date of this Agreement which in such Required Banks' opinion
materially affects LIBOR Rate Loans,
then (i) the Agent shall promptly notify the other parties thereof and (ii) so
long as such circumstances shall continue, no Bank shall be under any obligation
to make any LIBOR Rate Loan.
Section 7.3. Changes in Law Rendering Certain Loans Unlawful.
In the event that any change in (including the adoption of any new) applicable
laws or regulations, or in the interpretation of applicable laws or regulations
by any Governmental Authority or other regulatory body charged with the
administration thereof, should make it (or in the good faith judgment of such
Bank raise a substantial question as to whether it is) unlawful for a Bank to
make, maintain or fund any LIBOR Rate Loan, then (a) such Bank shall promptly
notify each of the other parties hereto, (b) upon the effectiveness of such
event and so long as such unlawfulness shall continue, the obligation of such
Bank to make LIBOR Rate Loans shall be suspended and any request by the Company
for LIBOR Rate Loans shall, as to such Bank, be deemed to be a request for a
Base Rate Loan, if said LIBOR Rate Loan is a Committed Loan, or an Absolute Rate
Loan, if said LIBOR Rate Loan is a Bid Loan and (c) on the last day of the
current Loan Period for such Bank's LIBOR Rate Loans (or, in any event, if such
Bank so requests on such earlier date as may be required by the relevant law,
regulation or interpretation) such Bank's Loans which are LIBOR Rate Loans shall
cease to be maintained as LIBOR Rate Loans and shall thereafter bear interest at
a floating rate per annum equal to the Base Rate, if said LIBOR Rate Loan is a
Committed Loan, or at an Absolute Rate, which Absolute Rate shall be the LIBOR
Rate in effect during such Loan Period, if said LIBOR Rate Loan is a Bid Loan.
If at any time the event giving rise to such unlawfulness shall no longer exist,
then such Bank shall
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promptly notify the Company and the Agent.
Section 7.4. Funding Losses. The Company hereby agrees that
upon demand by any Bank (which demand shall be accompanied by a statement
setting forth the basis for the calculations of the amount being claimed) the
Company will indemnify such Bank against any net loss or expense which such Bank
may sustain or incur (including, without limitation, any net loss or expense
incurred by reason of the liquidation or reemployment of deposits or other funds
acquired by such Bank to fund or maintain any LIBOR Rate Loan or Absolute Rate
Loan), as reasonably determined by such Bank, as a result of (a) any payment or
mandatory or voluntary prepayment (including, without limitation, any payment
pursuant to Section 7.3 or any payment resulting from acceleration) of any LIBOR
Rate Loan or Absolute Rate Loan of such Bank on a date other than the last day
of the Loan Period for such Loan or (b) any failure of the Company to borrow any
Loans on the originally scheduled Funding Date specified therefor pursuant to
this Agreement (including, without limitation, any failure to borrow resulting
from any failure to satisfy the conditions precedent to such borrowing). For
this purpose, all notices to the Agent pursuant to this Agreement (including,
without limitation, all acceptances of Bids) shall be deemed to be irrevocable.
Section 7.5. Discretion of Banks as to Manner of Funding.
Notwithstanding any provision of this Agreement to the contrary (but subject to
Section 7.1(c)), each Bank shall be entitled to fund and maintain its funding of
all or any part of its Loans in any manner it sees fit, it being understood,
however, that for the purposes of this Agreement all determinations hereunder
shall be made as if such Bank had actually funded and maintained each LIBOR Rate
Loan or Absolute Rate Loan during the Loan Period for such Loan through the
purchase of deposits having a maturity corresponding to such Loan Period and
bearing an interest rate equal to the rate borne by such Loan for such Loan
Period.
Section 7.6. Conclusiveness of Statements; Survival of
Provisions. Determinations and statements of any Bank pursuant to this Section 7
shall be conclusive absent demonstrable error, and each Bank may use reasonable
averaging and attribution methods in determining compensation pursuant to
Section 7.1 or 7.4. The provisions of this Section 7 shall survive termination
of this Agreement and payment of the Loans.
SECTION 8. REPRESENTATIONS AND WARRANTIES.
To induce the Banks to enter into this Agreement and to make
Loans hereunder, the Company hereby makes the following representations and
warranties to the Agent and the Banks, which representations and warranties
shall survive the execution and delivery of this Agreement and the Notes and the
disbursement of the initial Loans hereunder:
Section 8.1. Organization, etc. The Company is a corporation
duly organized, validly existing and in good standing under the laws of the
State of California; each corporate Subsidiary is a corporation duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
incorporation; each other Subsidiary (if any) is an entity duly organized and
validly existing under the laws of the jurisdiction of its organization; and
each of the Company and each Subsidiary has the power to own its property and to
carry on its business as now being conducted and is duly qualified and in good
standing as a foreign corporation or other
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entity authorized to do business in each jurisdiction where, because of the
nature of its activities or properties, such qualification is required, except
where the failure to be so qualified or in good standing could not reasonably be
expected to have a Material Adverse Effect.
Section 8.2. Authorization; Consents; No Conflict. The
execution and delivery by the Company of this Agreement and the Notes, the
borrowings hereunder and the performance by the Company of its obligations under
this Agreement and the Notes (a) are within the corporate powers of the Company,
(b) have been duly authorized by all necessary corporate action on the part of
the Company, (c) have received all necessary approvals, authorizations,
consents, registrations, notices, exemptions and licenses (if any shall be
required) from Governmental Authorities and other Persons, except for any such
approvals, authorizations, consents, registrations, notices, exemptions or
licenses non-receipt of which could not reasonably be expected to have a
Material Adverse Effect, (d) do not and will not contravene or conflict with any
provision of (i) law, (ii) any judgment, decree or order to which the Company or
any Subsidiary is a party or by which the Company or any Subsidiary is bound,
(iii) the charter, by-laws or other organizational documents of the Company or
any Subsidiary or (iv) any provision of any agreement or instrument binding on
the Company or any Subsidiary, or any agreement or instrument of which the
Company is aware affecting the properties of the Company or any Subsidiary,
except with respect to (i), (ii) and (iv) above, for any such contravention or
conflict which could not reasonably be expected to have a Material Adverse
Effect and (e) do not and will not result in or require the creation or
imposition of any Lien on any of the Company's or its Subsidiaries' properties.
Section 8.3. Validity and Binding Nature. This Agreement is,
and the Notes (if any) when duly executed and delivered will be, legal, valid
and binding obligations of the Company, enforceable against the Company in
accordance with their respective terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors' rights and to general equity
principles.
Section 8.4. Financial Statements. The Company's audited
consolidated financial statements as at December 31, 2002, and unaudited
consolidated financial statements as at June 30, 2003, a copy of each of which
has been furnished to each Bank, have been prepared in conformity with generally
accepted accounting principles in the United States of America applied on a
basis consistent with that of the preceding fiscal year subject, in the case of
unaudited financial statements, to changes resulting from audit and year-end
adjustments and fairly present the financial condition of the Company and its
Subsidiaries as at such dates and the results of their operations for the year
then ended.
Section 8.5. Litigation and Contingent Liabilities. All
Litigation Actions, taken as a whole, could not reasonably be expected to have a
Material Adverse Effect. Other than any liability incident to such Litigation
Actions or provided for or disclosed in the financial statements referred to in
Section 8.4, neither the Company nor any Subsidiary has any contingent
liabilities which are material to the business, credit, operations or financial
condition of the Company and its Subsidiaries taken as a whole.
Section 8.6. Employee Benefit Plans. Each employee benefit
plan (as defined in
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Section 3(3) of ERISA) maintained or sponsored by the Company or any Subsidiary
complies in all material respects with all applicable requirements of law and
regulations. During the twelve-consecutive-month period prior to the execution
and delivery of this Agreement, (i) no steps have been taken to terminate any
Plan and no contribution failure has occurred with respect to any Plan
sufficient to give rise to a lien under Section 302(f) of ERISA, (ii) no
Reportable Event has occurred with respect to any Plan and (iii) neither the
Company nor any ERISA Affiliate has either withdrawn or instituted steps to
withdraw from any Multiemployer Plan, except in any such case for actions which
individually or in the aggregate could not reasonably be expected to have a
Material Adverse Effect. No condition exists or event or transaction has
occurred in connection with any Plan which could reasonably be expected to
result in the incurrence by the Company or any Subsidiary of any material
liability, fine or penalty (imposed by Section 4975 of the Code or Section
502(i) of ERISA or otherwise). Neither the Company nor any ERISA Affiliate is a
member of, or contributes to, any Multiemployer Plan as to which the potential
withdrawal liability based upon the most recent actuarial report could
reasonably be expected to have a Material Adverse Effect. Neither the Company
nor any Subsidiary has any material contingent liability with respect to any
post retirement benefit under an employee welfare benefit plan (as defined in
section 3(i) of ERISA), other than liability for continuation coverage described
in Part 6 of Title I of ERISA.
Section 8.7. Investment Company Act. The Company is not an
"investment company" or a company "controlled" by an "investment company",
within the meaning of the Investment Company Act of 1940, as amended.
Section 8.8. Public Utility Holding Company Act. Neither the
Company nor any Subsidiary is a "holding company", or a "subsidiary company" of
a "holding company", or an "affiliate" of a "holding company" or of a
"subsidiary company" of a "holding company", within the meaning of the Public
Utility Holding Company Act of 1935, as amended.
Section 8.9. Regulation U. Neither the Company nor any
Subsidiary is engaged principally, or as one of its important activities, in the
business of extending credit for the purpose of purchasing or carrying margin
stock (within the meaning of Regulation U of the Board of Governors of the
Federal Reserve System).
Section 8.10. Information. (a) All information with respect to
the Company contained in the September, 2003 memorandum furnished by the Agent
to the Banks and all information heretofore furnished by the Company to the
Agent or any Bank is, to the best of the Company's knowledge after due inquiry,
true and accurate in every material respect as of the date thereof, and none of
such information contains any material misstatement of fact or omits to state
any material fact necessary to make such information not misleading.
(b) All information furnished by the Company to the Agent
or any Bank on and after the date hereof shall be, to the best of the Company's
knowledge after due inquiry, true and accurate in every material respect as of
the date of such information, and none of such information shall contain any
material misstatement of fact or shall omit to state any material fact necessary
to make such information not misleading.
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Section 8.11. Compliance with Applicable Laws, etc. The
Company and its Subsidiaries are in compliance with the requirements of all
applicable laws, rules, regulations and orders of all Governmental Authorities
(including, without limitation, ERISA and all applicable environmental laws),
except for noncompliance that could not reasonably be expected to have a
Material Adverse Effect. Neither the Company nor any Subsidiary is in default
under any agreement or instrument to which the Company or such Subsidiary is a
party or by which it or any of its properties or assets is bound, which default
could reasonably be expected to have a Material Adverse Effect on the business,
credit, operations or financial condition of the Company and its Subsidiaries
taken as a whole. No Event of Default or Unmatured Event of Default has occurred
and is continuing.
Section 8.12. Insurance. Each of the Company and each
Subsidiary maintains, or, in the case of any property owned by the Company or
any Subsidiary and leased to lessees, has contractually required such lessees to
maintain, insurance with financially sound and reputable insurers to such extent
and against such hazards and liabilities as is commonly maintained, or caused to
be maintained, as the case may be, by companies similarly situated.
Section 8.13. Taxes. Each of the Company and each Subsidiary
has filed all tax returns which are required to have been filed and has paid, or
made adequate provisions for the payment of, all of its Taxes which are due and
payable, except such Taxes, if any, as are being contested in good faith and by
appropriate proceedings and as to which such reserves or other appropriate
provisions as may be required by generally accepted accounting principles have
been established and except where failure to pay such Taxes, individually or in
the aggregate, cannot reasonably be expected to have a Material Adverse Effect.
Section 8.14. Use of Proceeds. The proceeds of the Loans will
be used by the Company for general corporate purposes.
Section 8.15. Pari Passu. All obligations and liabilities of
the Company hereunder shall rank at least equally and ratably (pari passu) in
priority with all other unsubordinated, unsecured obligations of the Company to
any other creditor.
SECTION 9. COVENANTS.
Until the expiration or termination of the Commitments, and
thereafter until all obligations of the Company hereunder and under the Notes
are paid in full, the Company agrees that, unless at any time the Required Banks
shall otherwise expressly consent in writing, it will:
Section 9.1. Reports, Certificates and Other Information.
Furnish to the Agent with sufficient copies for each Bank which the Agent shall
promptly furnish to each Bank:
9.1.1. Audited Financial Statements. As soon as available,
and in any event within 95 days after each fiscal year of the Company,
a copy of the audited financial statements and annual audit report of
the Company and its Subsidiaries for such fiscal year prepared on a
consolidated basis and in conformity with generally accepted accounting
principles in the United States of America and certified by
PricewaterhouseCoopers LLP or by another independent certified public
accountant of
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recognized national standing selected by the Company and satisfactory
to the Required Banks.
9.1.2. Interim Reports. As soon as available, and in any
event within 50 days after each quarter (except the last quarter) of
each fiscal year of the Company, a copy of the unaudited financial
statements of the Company and its Subsidiaries for such quarter
prepared in a manner consistent with the audited financial statements
referred to in Section 9.1.1, signed by the Company's chief financial
officer and consisting of at least a balance sheet as at the close of
such quarter and statements of earnings and cash flows for such quarter
and for the period from the beginning of such fiscal year to the close
of such quarter.
9.1.3. Certificates. Contemporaneously with the furnishing
of a copy of each annual audit report and of each set of quarterly
statements provided for in this Section 9.1, a certificate of the
Company dated the date of delivery of such annual report or such
quarterly statements and signed by the Company's chief financial
officer, to the effect that no Event of Default or Unmatured Event of
Default has occurred and is continuing, or, if there is any such event,
describing it and the steps, if any, being taken to cure it and
containing a computation of, and showing compliance with, each of the
financial ratios and restrictions contained in this Section 9.
9.1.4. Certain Notices. Forthwith upon learning of the
occurrence of any of the following, written notice thereof, describing
the same and the steps being taken by the Company or the Subsidiary
affected with respect thereto:
(i) the occurrence of an Event of Default or an
Unmatured Event of Default;
(ii) the institution of any Litigation Action;
provided, that the Company need not give notice of any new
Litigation Action unless such Litigation Action, together with
all other pending Litigation Actions, could reasonably be
expected to have a Material Adverse Effect;
(iii) the entry of any judgment or decree against
the Company or any Subsidiary if the aggregate amount of all
judgments and decrees then outstanding against the Company and
all Subsidiaries exceeds $50,000,000 after deducting (i) the
amount with respect to which the Company or any Subsidiary is
insured and with respect to which the insurer has not denied
coverage in writing and (ii) the amount for which the Company
or any Subsidiary is otherwise indemnified if the terms of
such indemnification are satisfactory to the Agent and the
Required Banks;
(iv) the occurrence of a Reportable Event with
respect to any Plan; the institution of any steps by the
Company, any ERISA Affiliate, the PBGC or any other Person to
terminate any Plan; the institution of any steps by the
Company or any ERISA Affiliate to withdraw from any Plan; the
incurrence of any material
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increase in the contingent liability of the Company or any
Subsidiary with respect to any post-retirement welfare
benefits; or the failure of the Company or any other Person to
make a required contribution to a Plan if such failure is
sufficient to give rise to a lien under Section 302(f) of
ERISA; provided, however, that no notice shall be required of
any of the foregoing unless the circumstance could reasonably
be expected to have a Material Adverse Effect; or
(v) the occurrence of a material adverse change
in the business, credit, operations or financial condition of
the Company and its Subsidiaries taken as a whole.
9.1.5. SEC Filings. Promptly after the filing or making
thereof, copies of all 8-K's (other than 8-K's relating solely to the
issuance by the Company of securities pursuant to an effective
registration statement), 10-Q's, 10-K's, and other material reports or
registration statements filed by the Company or any Subsidiary with or
to any securities exchange or the Securities and Exchange Commission.
9.1.6. Other Information. From time to time such other
information concerning the Company and its Subsidiaries as any Bank or
the Agent may reasonably request.
Section 9.2. Existence. Maintain and preserve, and, subject to
the proviso in Section 9.9, cause each Subsidiary to maintain and preserve, its
respective existence as a corporation or other form of business organization, as
the case may be, and all rights, privileges, licenses, patents, patent rights,
copyrights, trademarks, trade names, franchises and other authority to the
extent material and necessary for the conduct of its respective business in the
ordinary course as conducted from time to time, except as may be determined by
the Board of Directors of the Company in good faith that a Subsidiary that is
not necessary or material to the business of the Company in its ordinary course
as conducted from time to time.
Section 9.3. Nature of Business. Subject to Section 9.2,
engage, and cause each Subsidiary to engage, in substantially the same fields of
business as it is engaged in on the date hereof.
Section 9.4. Books, Records and Access.
(a) Maintain, and cause each Subsidiary to maintain,
complete and accurate books and records in which full and correct entries in
conformity with generally accepted accounting principles in the United States of
America shall be made of all dealings and transactions in relation to its
respective business and activities.
(b) Permit, and cause each Subsidiary to permit, access
by the Agent and each Bank to the books and records of the Company and such
Subsidiary during normal business hours, and permit, and cause each Subsidiary
to permit, the Agent and each Bank to make copies of such books and records upon
reasonable notice and as often as may be reasonably requested.
Section 9.5. Insurance. Maintain, and cause each Subsidiary to
maintain, such
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insurance as is described in Section 8.12.
Section 9.6. Repair. Maintain, preserve and keep, and cause
each Subsidiary to maintain, preserve and keep, its material properties in good
repair, working order and condition, ordinary wear and tear excepted. In the
case of properties leased by the Company or any Subsidiary to lessees, the
Company may satisfy its obligations related to such properties under the
previous sentence by contractually requiring, or by causing each Subsidiary to
contractually require, such lessees to perform such obligations.
Section 9.7. Taxes. Pay or cause to be paid, and cause each
Subsidiary to pay, or cause to be paid, prior to the imposition of any penalty
or fine, all of its Taxes, unless and only to the extent that the Company or
such Subsidiary, as the case may be, is contesting any such Taxes in good faith
and by appropriate proceedings and the Company or such Subsidiary has set aside
on its books such reserves or other appropriate provisions therefor as may be
required by generally accepted accounting principles in the United States of
America, except where failure to pay such Taxes, individually or in the
aggregate, cannot reasonably be expected to have a Material Adverse Effect.
Section 9.8. Compliance. Comply, and cause each Subsidiary to
comply with all statutes (including without limitation ERISA) and governmental
rules and regulations applicable to it except to the extent noncompliance could
not reasonably be expected to have a Material Adverse Effect.
Section 9.9. Sale of Assets. Not, and not permit any
Subsidiary to, transfer, convey, lease (except for in the ordinary course of
business) or otherwise dispose of all or substantially all of the assets of the
Company and its Subsidiaries taken as a whole; provided, however, that any
Wholly-owned Subsidiary may sell, transfer, convey, lease or assign all or a
substantial part of its assets to the Company or another Wholly-owned Subsidiary
if immediately thereafter and after giving effect thereto no Event of Default or
Unmatured Event of Default shall have occurred and be continuing.
Section 9.10. Consolidated Indebtedness to Consolidated
Tangible Net Worth Ratio. Not permit the ratio of Consolidated Indebtedness to
Consolidated Tangible Net Worth to exceed 600% on and as of the last day of any
fiscal year or 650% at any other time.
Section 9.11. Fixed Charge Coverage Ratio. Not permit the
Fixed Charge Coverage Ratio on the last day of any quarter of any fiscal year of
the Company to be less than 110%.
Section 9.12. Consolidated Tangible Net Worth. Not permit the
Company's Consolidated Tangible Net Worth to be less than $3,500,000,000 minus,
to the extent included in the calculation of Consolidated Tangible Net Worth,
other comprehensive income of the Company and its Subsidiaries (or, in the case
of a comprehensive income deficit, plus the amount of such deficit) plus 50% of
(a) the cumulative net income (but without deduction for cumulative net losses)
of the Company and its Subsidiaries since December 31, 2002 determined on a
consolidated basis in accordance with United States of America generally
accepted accounting principles, (b) the cumulative equity capital contributions
from AIG or any of its
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direct or indirect Subsidiaries since December 31, 2002 and (c) the net proceeds
from the sale of preferred stock, in each case for the period from December 31,
2002 to and including the date of any determination hereunder.
Section 9.13. Restricted Payments. Not declare or pay any
dividends whatsoever or make any distribution on any capital stock of the
Company (except in shares of, or warrants or rights to subscribe for or purchase
shares of, capital stock of the Company), and not, and not permit any Subsidiary
to, make any payment to acquire or retire shares of capital stock of the
Company, in each case at any time when (i) an Event of Default as described in
Section 11.1 has occurred and is continuing and there are Loans outstanding
hereunder or (ii) an Event of Default as described in Section 11.1.1 has
occurred and is continuing and there are no Loans outstanding hereunder;
provided, however, that notwithstanding the foregoing, this Section 9.13 shall
not prohibit (x) the payment of dividends on any of the Company's market auction
preferred stock that was sold to the public pursuant to an effective
registration statement under the Securities Act of 1933 or (y) the payment of
dividends within 30 days of the declaration thereof if such declaration was not
prohibited by this Section 9.13.
Section 9.14. Liens. Not, and not permit any Subsidiary to,
create or permit to exist any Lien upon or with respect to any of its properties
or assets of any kind, now owned or hereafter acquired, or on any income or
profits therefrom, except for
(a) Liens existing on the date hereof that are reflected
in the financial statements of the Company dated prior to the date
hereof;
(b) Liens to secure the payment of all or any part of the
purchase price of any property or assets or to secure any Indebtedness
incurred by the Company or a Subsidiary to finance the acquisition of
any property or asset. For the avoidance of doubt, Liens securing
Indebtedness relating to ECA Financings or Eximbank financings shall be
permitted hereunder;
(c) Liens securing the Indebtedness of a Subsidiary owing
to the Company or to a Wholly-owned Subsidiary;
(d) Liens on property of a corporation existing at the
time such corporation is merged into or consolidated with the Company
or a Subsidiary or at the time of a purchase, lease or other
acquisition of the properties of a corporation or firm as an entirety
or substantially as an entirety by the Company or a Subsidiary;
provided, that any such Lien shall not extend to or cover any assets or
properties of the Company or such Subsidiary owned by the Company or
such Subsidiary prior to such merger, consolidation, purchase, lease or
acquisition, unless otherwise permitted under this Section 9.14;
(e) leases, subleases or licenses granted to others in
the ordinary and usual course of the Company's business;
(f) easements, rights of way, restrictions and other
similar charges or
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encumbrances not interfering in any material respect with the ordinary
conduct of the business of the Company or any Subsidiary;
(g) banker's Liens arising, other than by contract, in
the ordinary and usual course of the Company's business;
(h) Liens incurred or deposits made in the ordinary
course of business in connection with surety and appeal bonds, leases,
government contracts, performance and return-of-money bonds and other
similar obligations (exclusive of obligations for the payment of
borrowed money); provided, however, that the obligation so secured is
not overdue or is being contested in good faith and by appropriate
proceedings diligently pursued;
(i) any replacement or successive replacement in whole or
in part of any Lien referred to in the foregoing clauses (a) to (h),
inclusive; provided, however, that the principal amount of any
Indebtedness secured by the Lien shall not be increased and the
principal repayment schedule and maturity of such Indebtedness shall
not be extended and (i) such replacement shall be limited to all or a
part of the property which secured the Lien so replaced (plus
improvements and construction on such property) or (ii) if the property
which secured the Lien so replaced has been destroyed, condemned or
damaged and pursuant to the terms of the Lien other property has been
substituted therefor, then such replacement shall be limited to all or
part of such substituted property;
(j) Liens created by or resulting from any litigation or
other proceeding which is being contested in good faith by appropriate
proceedings, including Liens arising out of judgments or awards against
the Company or any Subsidiary with respect to which the Company or such
Subsidiary is in good faith prosecuting an appeal or proceedings for
review; Liens incurred by the Company or any Subsidiary for the purpose
of obtaining a stay or discharge in the course of any litigation or
other proceeding to which the Company or such Subsidiary is a party; or
Liens created by or resulting from any litigation or other proceeding
that would not result in an Event of Default hereunder;
(k) carrier's, warehouseman's, mechanic's, landlord's and
materialmen's Liens, Liens for Taxes, assessments and other
governmental charges and other Liens arising in the ordinary course of
business, securing obligations that are not incurred in connection with
the obtaining of any advance or credit and which are either not overdue
or are being contested in good faith and by appropriate proceedings
diligently pursued; and
(l) other Liens securing Indebtedness of the Company or
any Subsidiary in an aggregate amount which, together with all other
outstanding Indebtedness of the Company and the Subsidiaries secured by
Liens not listed in clauses (a) through (k) of this Section 9.14, does
not at the time exceed 12.5% of the Consolidated Tangible Net Assets of
the Company as shown on its audited consolidated financial statements
as of the end of the fiscal year preceding the date of determination.
Section 9.15. Use of Proceeds. Not permit any proceeds of the
Loans to be used,
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either directly or indirectly,
(a) for the payment of any dividend or for the repurchase
of any of the Company's equity securities;
(b) for the purpose, whether immediate, incidental or
ultimate, of buying or carrying any margin stock within the meaning of
Regulation U of the Board of Governors of the Federal Reserve System,
as amended from time to time;
(c) for the purpose, whether immediate, incidental or
ultimate, of acquiring directly or indirectly any of the outstanding
shares of voting stock of any corporation which (i) has announced that
it will oppose such acquisition or (ii) has commenced any litigation
which alleges that any such acquisition violates, or will violate,
applicable law; or
(d) for any other purpose except for general corporate
purposes.
SECTION 10. CONDITIONS TO LENDING.
Section 10.1. Conditions Precedent to All Loans. Each Bank's
obligation to make each Loan is subject to the following conditions precedent:
10.1.1. No Default. (a) No Event of Default or Unmatured
Event of Default has occurred and is continuing or will result from the
making of such Loan, (b) the representations and warranties contained
in Section 8 are true and correct in all material respects as of the
date of such requested Loan, with the same effect as though made on the
date of such Loan (it being understood that each request for a Loan
shall automatically constitute a representation and warranty by the
Company that, as at the requested date of such Loan, (x) all conditions
under this Section 10.1.1 shall be satisfied and (y) after the making
of such Loan the aggregate principal amount of all outstanding Loans
will not exceed the Aggregate Commitment).
10.1.2. Documents. The Agent shall have received (a) a
certificate signed by an Authorized Officer of the Company as to
compliance with Section 10.1.1, which requirement shall be deemed
satisfied by the submission of a properly completed Notice of
Competitive Bid Borrowing or Committed Loan Request and (b) such other
documents as the Agent may reasonably request in support of such Loan.
10.1.3. Litigation. No Litigation Action not disclosed in
writing by the Company to the Agent and the Banks prior to the date of
the last previous Loan hereunder (or, in the case of the initial Loan,
prior to the date of execution and delivery of this Agreement) ("New
Litigation") has been instituted and no development not so disclosed
has occurred in any other Litigation Action ("Existing Litigation"),
unless the resolution of all New Litigation and Existing Litigation
against the Company and its Subsidiaries could not, in the aggregate,
reasonably be expected to have a Material Adverse Effect.
Section 10.2. Conditions to the Availability of the
Commitments. The
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obligations of each Bank hereunder are subject to the satisfaction of each of
the following conditions precedent, and the Banks' Commitments shall not become
available until the date on which the Agent has determined that each of the
following conditions precedent shall have been satisfied or, to the extent not
so satisfied, waived in writing by the Required Banks (the "Closing Date"):
10.2.1. Revolving Credit Agreement. The Agent shall have
received this Agreement duly executed and delivered by each of the
Banks and the Company and each of the Banks shall have received a fully
executed Committed Note and a fully executed Bid Note, if such Notes
are requested by any Bank pursuant to Section 12.9.
10.2.2. Evidence of Corporate Action. The Agent shall have
received certified copies of all corporate actions taken by the Company
to authorize this Agreement and the Notes.
10.2.3. Incumbency and Signatures. The Agent shall have
received a certificate of the Secretary or an Assistant Secretary of
the Company certifying the names of the officer or officers of the
Company authorized to sign this Agreement, the Notes and the other
documents provided for in this Agreement to be executed by the Company,
together with a sample of the true signature of each such officer (it
being understood that the Agent and each Bank may conclusively rely on
such certificate until formally advised by a like certificate of any
changes therein).
10.2.4. Good Standing Certificates. The Agent shall have
received such good standing certificates of state officials with
respect to the incorporation of the Company, or other matters, as the
Agent or the Banks may reasonably request.
10.2.5. Opinions of Company Counsel. The Agent shall have
received favorable written opinions of O'Melveny & Xxxxx LLP, counsel
for the Company, in substantially the form of Exhibit G, and the
General Counsel of the Company, in substantially the form of Exhibit H.
10.2.6. Opinion of Agent's Counsel. The Agent shall have
received a favorable written opinion of Milbank, Tweed, Xxxxxx & XxXxxx
LLP, special New York counsel to the Agent, with respect to documents
received by the Agent and the Banks and such legal matters as the Agent
reasonably may require.
10.2.7. Other Documents. The Agent shall have received such
other certificates and documents as the Agent or the Banks reasonably
may require.
10.2.8. Fees. The Agent shall have received for the account
of the Agent the Agent's fees payable to the Funding Date pursuant to
Section 4.6 hereof.
10.2.9. Material Adverse Change. The Agent shall have
received a certificate of the Company's chief financial officer
confirming that since the date of the audited financial statements
identified in Section 8.4 hereof, there shall not have occurred any
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material adverse change in the business, credit, operations or
financial condition of the Company and its Subsidiaries taken as a
whole.
10.2.10. Termination of Revolving Credit Facility. The Company
shall have paid all amounts owing and otherwise satisfied and
discharged all of its obligations arising under the $2,150,000,000
364-Day Revolving Credit Agreement, dated as of October 18, 2002, among
the Company, the Agent and the banks named therein, and such agreement
shall have been terminated and be of no further force and effect,
evidence of which shall have been made available to the Agent.
SECTION 11. EVENTS OF DEFAULT AND THEIR EFFECT.
Section 11.1. Events of Default. Each of the following shall
constitute an Event of Default under this Agreement:
11.1.1. Non-Payment of the Loans, etc. Default in the payment
when due of any principal of any Loan or default and continuance
thereof for three Business Days, in the payment when due of any
interest on any Loan, any fees or any other amounts payable by the
Company hereunder.
11.1.2. Non-Payment of Other Indebtedness for Borrowed Money.
Default in the payment when due (subject to any applicable grace
period), whether by acceleration or otherwise, of any principal of,
interest on or fees incurred in connection with any other Indebtedness
of, or Guaranteed by, the Company or any Significant Subsidiary (except
(i) any such Indebtedness of any Subsidiary to the Company or to any
other Subsidiary and (ii) any Indebtedness hereunder) and, if a default
in the payment of interest or fees, continuance of such default for
five days, in the case of interest, or 30 days, in the case of fees, or
default in the performance or observance of any obligation or condition
with respect to any such other Indebtedness if the effect of such
default (subject to any applicable grace period) is to accelerate the
maturity of any such Indebtedness or to permit the holder or holders
thereof, or any trustee or agent for such holders, to cause such
Indebtedness to become due and payable prior to its expressed maturity;
provided, however, that the aggregate principal amount of all
Indebtedness as to which there has occurred any default as described
above shall equal or exceed $50,000,000.
11.1.3. Bankruptcy, Insolvency, etc. The Company or any
Significant Subsidiary becomes insolvent or generally fails to pay, or
admits in writing its inability or refusal to pay, debts as they become
due; or the Company or any Significant Subsidiary applies for, consents
to, or acquiesces in the appointment of a trustee, receiver or other
custodian for the Company or such Significant Subsidiary or any
property thereof, or makes a general assignment for the benefit of
creditors; or, in the absence of such application, consent or
acquiescence, a trustee, receiver or other custodian is appointed for
the Company or any Significant Subsidiary or for a substantial part of
the property of any thereof and is not discharged within 60 days; or
any warrant of attachment or similar legal process is issued against
any substantial part of the property of the Company or any of its
Significant Subsidiaries which is not released within 60 days of
service; or any bankruptcy, reorganization, debt arrangement, or other
case or proceeding under any bankruptcy or insolvency law, or any
dissolution or liquidation proceeding (except the voluntary
dissolution, not under any bankruptcy or
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insolvency law, of a Significant Subsidiary), is commenced in respect
of the Company or any Significant Subsidiary, and, if such case or
proceeding is not commenced by the Company or such Significant
Subsidiary it is consented to or acquiesced in by the Company or such
Significant Subsidiary or remains for 60 days undismissed; or the
Company or any Significant Subsidiary takes any corporate action to
authorize, or in furtherance of, any of the foregoing.
11.1.4. Non-Compliance with this Agreement. Failure by the
Company to comply with or to perform any of the Company's covenants
herein or any other provision of this Agreement (and not constituting
an Event of Default under any of the other provisions of this Section
11.1) and continuance of such failure for 60 days (or, if the Company
failed to give notice of such noncompliance or nonperformance pursuant
to Section 9.1.4 within one Business Day after obtaining actual
knowledge thereof, 60 days less the number of days elapsed between the
date the Company obtained such actual knowledge and the date the
Company gives the notice pursuant to Section 9.1.4, but in no event
less than one Business Day) after notice thereof to the Company from
the Agent, any Bank, or the holder of any Note.
11.1.5. Representations and Warranties. Any representation or
warranty made by the Company herein is untrue or misleading in any
material respect when made or deemed made; or any schedule, statement,
report, notice, or other writing furnished by the Company to the Agent
or any Bank is false or misleading in any material respect on the date
as of which the facts therein set forth are stated or certified; or any
certification made or deemed made by the Company to the Agent or any
Bank is untrue or misleading in any material respect on or as of the
date made or deemed made.
11.1.6. Employee Benefit Plans. The occurrence of any of the
following events, provided that such event would reasonably be expected
to require payment by the Company or a Subsidiary of an amount in
excess of $10,000,000: (i) the institution by the Company or any ERISA
Affiliate of steps to terminate any Plan, (ii) the institution by the
PBGC of steps to terminate any Plan; or (iii) a contribution failure
occurs with respect to a Plan sufficient to give rise to a lien under
Section 302(f) of ERISA securing an amount in excess of $10,000,000.
11.1.7. Litigation. There shall be entered against the
Company or any Subsidiary one or more judgments or decrees in excess of
$50,000,000 in the aggregate at any one time outstanding for the
Company and all Subsidiaries and all such judgments or decrees shall
not have been vacated, discharged, stayed or bonded pending appeal
within 60 days from the entry thereof, excluding those judgments or
decrees for and to the extent to which the Company or any Subsidiary
(i) is insured and with respect to which the insurer has not denied
coverage in writing or (ii) is otherwise indemnified if the terms of
such indemnification are satisfactory to the Required Banks.
11.1.8. Change of Ownership. AIG shall cease to own
beneficially, directly or indirectly, at least 51% of all of the
outstanding shares of the common stock of the
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Company.
Section 11.2. Effect of Event of Default. If any Event of
Default described in Section 11.1.3 shall occur, the Commitments (if they have
not theretofore terminated) shall immediately terminate and all Loans and all
interest and other amounts due hereunder shall become immediately due and
payable, all without presentment, demand or notice of any kind; and, in the case
of any other Event of Default, the Agent may, and upon written request of the
Required Banks shall, declare the Commitments (if they have not theretofore
terminated) to be terminated and all Loans and all interest and other amounts
due hereunder to be due and payable, whereupon the Commitments (if they have not
theretofore terminated) shall immediately terminate and all Loans and all
interest and other amounts due hereunder shall become immediately due and
payable, all without presentment, demand or notice of any kind. The Agent shall
promptly advise the Company and each Bank of any such declaration, but failure
to do so shall not impair the effect of such declaration.
SECTION 12. THE AGENT.
Section 12.1. Authorization. Each Bank and the holder of each
Loan or interest therein authorizes the Agent to act on behalf of such Bank or
holder to the extent provided herein and in any other document or instrument
delivered hereunder or in connection herewith, and to take such other action as
may be reasonably incidental thereto. Subject to the provisions of Section 12.3,
the Agent will take such action permitted by any agreement delivered in
connection with this Agreement as may be requested in writing by the Required
Banks or if required under Section 13.1, all of the Banks. The Agent shall
promptly remit in immediately available funds to each Bank or other holder its
share of all payments received by the Agent for the account of such Bank or
holder, and shall promptly transmit to each Bank (or share with each Bank the
contents of) each notice it receives from the Company pursuant to this
Agreement.
Section 12.2. Indemnification. The Banks agree to indemnify
the Agent in its capacity as such (to the extent not reimbursed by the Company),
ratably according to their respective Percentages, from and against any and all
actions, causes of action, suits, losses, liabilities, damages and expenses
which may at any time (including, without limitation, at any time following the
repayment of the Loans) be imposed on, incurred by or asserted against the Agent
in any way relating to or arising out of this Agreement, or any documents
contemplated by or referred to herein or the transactions contemplated hereby or
any action taken or omitted by the Agent under or in connection with any of the
foregoing; provided, that no Bank shall be liable for the payment to the Agent
of any portion of such actions, causes of action, suits, losses, liabilities,
damages and expenses resulting from the Agent's or its employees' or agents'
gross negligence or willful misconduct. Without limiting the foregoing, subject
to Section 13.5 each Bank agrees to reimburse the Agent promptly upon demand for
its ratable share of any out-of-pocket expenses (including reasonable counsel
fees) incurred by the Agent in such capacity in connection with the preparation,
execution or enforcement of, or legal advice in respect of rights or
responsibilities under, this Agreement or any amendments or supplements hereto
or thereto to the extent that the Agent is not reimbursed for such expenses by
the Company. All obligations provided for in this Section 12.2 shall survive
repayment of the Loans, cancellation of the Notes or any termination of this
Agreement.
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Section 12.3. Action on Instructions of the Required Banks. As
to any matters not expressly provided for by this Agreement (including, without
limitation, enforcement or collection of the Loans), the Agent shall not be
required to exercise any discretion or take any action, but the Agent shall in
all cases be fully protected in acting or refraining from acting upon the
written instructions from (i) the Required Banks, except for instructions which
under the express provisions hereof must be received by the Agent from all Banks
and (ii) in the case of such instructions, from all Banks. In no event will the
Agent be required to take any action which exposes the Agent to personal
liability or which is contrary to this Agreement or applicable law. The
relationship between the Agent and the Banks is and shall be that of agent and
principal only and nothing herein contained shall be construed to constitute the
Agent a trustee for any holder of a Loan or of a participation therein nor to
impose on the Agent duties and obligations other than those expressly provided
for herein.
Section 12.4. Payments. (a) The Agent shall be entitled to
assume that each Bank has made its Loan available in accordance with Section 2.3
or Section 3.2(c), as applicable, unless such Bank notifies the Agent at its
Notice Office prior to 11:00 a.m., New York City time, on the Funding Date for
such Loan that it does not intend to make such Loan available, it being
understood that no such notice shall relieve such Bank of any of its obligations
under this Agreement. If the Agent makes any payment to the Company on the
assumption that a Bank has made the proceeds of such Loan available to the Agent
but such Bank has not in fact made the proceeds of such Loan available to the
Agent, such Bank shall pay to the Agent on demand an amount equal to the amount
of such Bank's Loan, together with interest thereon for each day that elapses
from and including such Funding Date to but excluding the Business Day on which
the proceeds of such Bank's Loan become immediately available to the Agent at
its Payment Office prior to 12:00 Noon, New York City time, at the Federal Funds
Rate for each such day, based upon a year of 360 days. A certificate of the
Agent submitted to any Bank with respect to any amounts owing under this Section
12.4(a) shall be conclusive absent demonstrable error. If the proceeds of such
Bank's Loan are not made available to the Agent at its Payment Office by such
Bank within three Business Days of such Funding Date, the Agent shall be
entitled to recover such amount upon two Business Days' demand from the Company,
together with interest thereon for each day that elapses from and including such
Funding Date to but excluding the Business Day on which such proceeds become
immediately available to the Agent prior to 12:00 Noon, New York City time, (i)
in the case of a Bid Loan, at the rate per annum applicable thereto and (ii) in
the case of a Committed Loan, at the rate per annum applicable to Base Rate
Loans hereunder, in either case based upon a year of 360 days. Nothing in this
paragraph (a) shall relieve any Bank of any obligation it may have hereunder to
make any Loan or prejudice any rights which the Company may have against any
Bank as a result of any default by such Bank hereunder.
(b) The Agent shall be entitled to assume that the
Company has made all payments due hereunder from the Company on the due date
thereof unless it receives notification prior to any such due date from the
Company that the Company does not intend to make any such payment, it being
understood that no such notice shall relieve the Company of any of its
obligations under this Agreement. If the Agent distributes any payment to a Bank
hereunder in the belief that the Company has paid to the Agent the amount
thereof but the Company has not in fact paid to the Agent such amount, such Bank
shall pay to the Agent on demand (which shall be
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made by facsimile or personal delivery) an amount equal to the amount of the
payment made by the Agent to such Bank, together with interest thereon for each
day that elapses from and including the date on which the Agent made such
payment to but excluding the Business Day on which the amount of such payment is
returned to the Agent at its Payment Office in immediately available funds prior
to 12:00 Noon, New York City time, at the Federal Funds Rate for each such day,
based upon a year of 360 days. If the amount of such payment is not returned to
the Agent in immediately available funds within three Business Days after demand
by the Agent, such Bank shall pay to the Agent on demand an amount calculated in
the manner specified in the preceding sentence after substituting the term "Base
Rate" for the term "Federal Funds Rate". A certificate of the Agent submitted to
any Bank with respect to amounts owing under this Section 12.4(b) shall be
conclusive absent demonstrable error.
Section 12.5. Exculpation. The Agent shall be entitled to rely
upon advice of counsel concerning legal matters, and upon this Agreement and any
Note, security agreement, schedule, certificate, statement, report, notice or
other writing which it believes to be genuine or to have been presented by a
proper person. Neither the Agent nor any of its directors, officers, employees
or agents shall (i) be responsible for any recitals, representations or
warranties contained in, or for the execution, validity, genuineness,
effectiveness or enforceability of, this Agreement, any Note or any other
instrument or document delivered hereunder or in connection herewith, (ii) be
deemed to have knowledge of an Event of Default or Unmatured Event of Default
until after having received actual notice thereof from the Company or a Bank,
(iii) be under any duty to inquire into or pass upon any of the foregoing
matters, or to make any inquiry concerning the performance by the Company or any
other obligor of its obligations or (iv) in any event, be liable as such for any
action taken or omitted by it or them, except for its or their own gross
negligence or willful misconduct. The agency hereby created shall in no way
impair or affect any of the rights and powers of, or impose any duties or
obligations upon, the Agent in its individual capacity.
Section 12.6. Credit Investigation. Each Bank acknowledges,
and shall cause each Assignee or Participant to acknowledge in its assignment or
participation agreement with such Bank, that it has (i) made and will continue
to make such inquiries and has taken and will take such care on its own behalf
as would have been the case had the Loans been made directly by such Bank or
other applicable Person to the Company without the intervention of the Agent or
any other Bank and (ii) independently and without reliance upon the Agent or any
other Bank, and based on such documents and information as it has deemed
appropriate, made and will continue to make its own credit analysis and
decisions relating to this Agreement. Each Bank agrees and acknowledges, and
shall cause each Assignee or Participant to agree and acknowledge in its
assignment or participation agreement with such Bank, that the Agent makes no
representations or warranties about the creditworthiness of the Company or any
other party to this Agreement or with respect to the legality, validity,
sufficiency or enforceability of this Agreement or any Note.
Section 12.7. CUSA and Affiliates. CUSA and each of its
successors as Agent shall have the same rights and powers hereunder as any other
Bank and may exercise or refrain from exercising the same as though it were not
the Agent, and CUSA and any such successor and its Affiliates may accept
deposits from, lend money to and generally engage, and continue to
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engage, in any kind of business with the Company or any Affiliate thereof as if
CUSA or such successor were not the Agent hereunder.
Section 12.8. Resignation. The Agent may resign as such at any
time upon at least 30 days' prior notice to the Company and the Banks. In the
event of any such resignation, Banks having an aggregate Percentage of more than
50% shall as promptly as practicable appoint a successor Agent from among the
Banks reasonably acceptable to the Company (no such acceptance being required if
an Event of Default has occurred and is continuing). If no successor Agent shall
have been so appointed, and shall have accepted such appointment, within 30 days
after the retiring Agent's giving of notice of resignation, then the retiring
Agent may, on behalf of the Banks, appoint a successor Agent from among the
Banks reasonably acceptable to the Company (no such acceptance being required if
an Event of Default has occurred and is continuing), which shall be a commercial
bank organized under the laws of the United States of America or of any State
thereof or under the laws of another country which is doing business in the
United States of America and having a combined capital, surplus and undivided
profits of at least $1,000,000,000. 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, privileges and duties
of the retiring Agent, and the retiring Agent shall be discharged from all
further duties and obligations under this Agreement. After any retiring Agent's
resignation hereunder as Agent, the provisions of this Section 12 shall inure to
its benefit as to any actions taken or omitted to be taken by it while it was
Agent under this Agreement.
Section 12.9. The Register; the Notes.
(a) The Agent, acting on behalf of the Company, shall
maintain a register for the inscription of the names and addresses of Banks and
the Commitments and Loans of each Bank from time to time (the "Register"). The
Company, the Banks, and the Agent may treat each Person whose name is inscribed
in the Register as a Bank hereunder for all purposes of this Agreement. The
Register shall be available for inspection by the Company, the Agent, or any
Bank at any reasonable time and from time to time upon reasonable prior notice.
(b) The Agent shall inscribe in the Register the
Commitments and the Bid Loans and Committed Loans from time to time of each
Bank, the amount of each Bank's participation in outstanding Bid Loans and
Committed Loans and each repayment or prepayment in respect of the principal
amount of the Bid Loans and Committed Loans of each Bank, the principal amount
owing from time to time by the Company in respect of each Bid Loan and each
Committed Loan to each Bank of such Loans and the dates on which the Loan Period
for each such Loan shall begin and end. Any such inscription shall be conclusive
and binding on the Company and each Bank, absent manifest or demonstrable error;
provided that failure to make any such inscription, or any error in such
inscription, shall not affect any of the Company's obligations in respect of the
applicable Loans. The inscription in the Register of the principal amount owing
from time to time by the Company in respect of each Loan shall constitute an
unconditional and irrevocable covenant by the Company in favor of the Person
whose name is so inscribed as the Bank in respect of such Loan that the Company
will make all payments of principal and interest in respect of the Loan in
accordance with this Agreement, make all other payments required by this
Agreement to be made by it in respect of such Loan and otherwise perform all of
its obligations
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under this Agreement in full and by the due date.
(c) Each Bank shall record on its internal records the
amount of each Loan made by it and each payment in respect thereof; provided
that in the event of any inconsistency between the Register and any Bank's
records, the inscriptions in the Register shall govern, absent manifest or
demonstrable error.
(d) If so requested by any Bank by written notice to the
Company (with a copy to Administrative Agent) at least two Business Days prior
to the Closing Date or at any time thereafter, the Company shall execute and
deliver to such Bank (and/or, if so specified in such notice, any Person who is
an assignee of such Bank pursuant to Section 13.4.1 hereof) promptly after
receipt of such notice, a Bid Note or Committed Note, as applicable,
substantially in the form of Exhibit D or Exhibit E hereto, respectively.
SECTION 13. GENERAL.
Section 13.1. Waiver; Amendments. No delay on the part of the
Agent, any Bank, or the holder of any Loan in the exercise of any right, power
or remedy shall operate as a waiver thereof, nor shall any single or partial
exercise by any of them of any right, power or remedy preclude other or further
exercise thereof, or the exercise of any other right, power or remedy. No
amendment, modification or waiver of, or consent with respect to, any provision
of this Agreement or the Notes shall in any event be effective unless the same
shall be in writing and signed and delivered by the Agent and by Banks having an
aggregate Percentage of not less than the aggregate Percentage expressly
designated herein with respect thereto or, in the absence of such designation as
to any provision of this Agreement or the Notes, by the Required Banks, and then
any amendment, modification, waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given. No amendment,
modification, waiver or consent (i) shall extend (other than in accordance with
Section 13.8(a)) or increase the amount of the Commitments, extend the maturity
of any Commitment or Loan, change the definition of "Required Banks" or
"Percentage" in Section 1, amend or modify Section 4.1, or change any of the
defined terms used in Section 4.1, amend or modify Section 4.4, Section 4.5,
Section 4.7, Section 11.1.1, Section 11.1.8, or this Section 13.1 or otherwise
change the aggregate Percentage required to effect an amendment, modification,
waiver or consent without the written consent of all Banks, (ii) shall modify or
waive any of the conditions precedent specified in Section 10.1 (or Section 5.3
in connection with the exercise of the Term-Out Option) for the making of any
Loan without the written consent of the Bank which is to make such Loan or (iii)
shall extend the scheduled maturity or reduce the principal amount of, or rate
of interest on, reduce or waive any fee hereunder or extend the due date for or
waive any amount payable under, any Loan without the written consent of the
holder of the Commitment or Loan adversely affected thereby. Amendments,
modifications, waivers and consents of the type described in clause (iii) of the
preceding sentence with respect to Bid Loans or Bid Notes may be effected with
the written consent of the holder of such Bid Loans or Bid Notes and no consent
of any other Bank or other holder shall be required in connection therewith. No
provisions of Section 12 shall be amended, modified or waived without the
Agent's written consent.
Section 13.2. Notices. (a) All notices, requests and demands
to or upon the respective parties hereto to be effective shall be either (x) in
writing (including by telecopy,
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encrypted or unencrypted) or (y) as and to the extent set forth in Section
13.2(b) and in the proviso to this Section 13.2(a), and, unless otherwise
expressly provided herein, shall be deemed to have been duly given or made when
delivered or, in the case of telecopy or e-mail notice, when received, addressed
to the Company, the Agent, or such Bank (or other holder) at its address shown
across from its name on Schedule III hereto or at such other address as it may,
by written notice received by the other parties to this Agreement, have
designated as its address for such purpose; provided, that notices hereunder
shall not be given or made to the Company by e-mail; provided, further, that any
notice, request or demand to or upon the Agent or the Banks pursuant to Sections
2.2(a), 3.2(a) or 5.2 shall not be effective until received.
(b) So long as CUSA or any of its Affiliates is the
Agent, the Company shall, if in its reasonable determination it is able to do
so, provide to the Agent all information, documents and other materials that it
is obligated to furnish to the Agent pursuant to this Agreement, including all
notices, requests, financial statements, financial and other reports,
certificates and other information materials, but excluding any such
communication that (i) relates to a request for a new, or a conversion of an
existing, borrowing or other extension of credit (including any election of an
interest rate or interest period relating thereto), (ii) relates to the payment
of any principal or other amount due under this Agreement, (iii) relates to
requests for material modifications to this Agreement; (iv) relates to requests
for material waivers of any provisions of this Agreement; (v) relates to any
material non-public information of the Company; (vi) provides notice of any
Event of Default or (vii) is required to be delivered to satisfy any condition
precedent to the effectiveness of this Agreement and/or any borrowing or other
extension of credit hereunder (all such non-excluded communications being
referred to herein collectively as "Communications"), by transmitting the
Communications in an electronic/soft medium in a format acceptable to the Agent
to xxxxxxxxxxxxxxx@xxxxxxxxx.xxx. The Company agrees that the Agent may make the
Communications available to the Banks by posting the Communications on
Intralinks, Fixed Income Direct or a substantially similar electronic
transmission system (the "Platform"). The Company acknowledges that (i) the
distribution of material through an electronic medium is not necessarily secure
and that there are confidentiality and other risks associated with such
distribution, (ii) the Platform is provided "as is" and "as available", and
(iii) neither the Agent nor any of its Affiliates warrants the accuracy or
completeness of the Communications, or the adequacy of the Platform and each
expressly disclaims liability for errors or omissions in the Communications or
the Platform. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING
ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE
DEFECTS, IS MADE BY THE AGENT IN CONNECTION WITH THE COMMUNICATIONS OR THE
PLATFORM.
(c) Each Bank agrees that Communications may be made
available to such Bank as provided above, agrees to provide to the Agent,
promptly after the date of this Agreement, an e-mail address for receipt of each
notice to such Bank that Communications have been posted on the Platform, and
agrees that such notice to such Bank of such posting shall constitute effective
delivery of such Communications to such Bank hereunder.
Section 13.3. Computations. Where the character or amount of
any asset or
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liability or item of income or expense is required to be determined, or any
consolidation or other accounting computation is required to be made, for the
purpose of this Agreement, such determination or calculation shall, at any time
and to the extent applicable and except as otherwise specified in this
Agreement, be made in accordance with generally accepted accounting principles
in the United States of America applied on a basis consistent with those in
effect as at the date of the Company's audited financial statements referred to
in Section 8.4. If there should be any material change in generally accepted
accounting principles in the United States of America after the date hereof
which materially affects the financial covenants in this Agreement, the parties
hereto agree to negotiate in good faith appropriate revisions of such covenants
(it being understood, however, that such covenants shall remain in full force
and effect in accordance with their existing terms pending the execution by the
Company and the Required Banks of any such amendment).
Section 13.4. Assignments; Participations. Each Bank may
assign, or sell participations in, its Loans and its Commitment to one or more
other Persons in accordance with this Section 13.4 (and the Company consents to
the disclosure of any information obtained by any Bank in connection herewith to
any actual or prospective Assignee or Participant).
Section 13.4.1. Assignments. Any Bank may with the written
consents of the Company and the Agent (which consents will not be unreasonably
withheld or delayed) at any time assign and delegate to one or more Eligible
Assignees (any Person to whom an assignment and delegation is made being herein
called an "Assignee") all or any fraction of such Bank's Loans and Commitment
(which assignment and delegation shall be of a constant, and not a varying,
percentage of such assigning Bank's Loans and Commitment); each such assignment
of a Bank's Commitment shall be in the minimum amount of $10,000,000 or in
integral multiples of $1,000,000 in excess thereof; provided, that any such
Assignee will comply, if applicable, with the provisions contained in the first
sentence of Section 6.4(b) and in Section 6.4(c), Section 6.4(d), Section 6.4(e)
and Section 6.4(g) and shall be deemed to have made, on the date of the
effectiveness of such assignment and delegation, the representation and warranty
set forth in the second sentence of Section 6.4(b); and provided, further, that
the Company and the Agent shall be entitled to continue to deal solely and
directly with such assigning Bank in connection with the interests so assigned
and delegated to an Assignee until such assigning Bank and/or such Assignee
shall have:
(i) given written notice of such assignment and
delegation, together with payment instructions, addresses and
related information with respect to such Assignee,
substantially in the form of Exhibit I, to the Company and the
Agent;
(ii) provided evidence satisfactory to the
Company and the Agent that, as of the date of such assignment
and delegation, the Company will not be required to pay any
costs, fees, taxes or other amounts of any kind or nature with
respect to the interest assigned in excess of those payable by
the Company with respect to such interest prior to such
assignment;
(iii) paid to the Agent for the account of the
Agent a processing fee of $2,500; and
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(iv) provided to the Agent evidence reasonably
satisfactory to the Agent that the assigning Bank has complied
with the provisions of the last sentence of Section 12.6.
Upon receipt of the foregoing items and the consents of the Company and the
Agent, (x) the Assignee shall be deemed automatically to have become a party
hereto and, to the extent that rights and obligations hereunder have been
assigned and delegated to such Assignee, such Assignee shall have the rights and
obligations of a Bank hereunder and under the other instruments and documents
executed in connection herewith and (y) the assigning Bank, to the extent that
rights and obligations hereunder have been assigned and delegated by it, shall
be released from its obligations hereunder. The Agent may from time to time (and
upon the request of the Company or any Bank after any change therein shall)
distribute a revised Schedule I indicating any changes in the Banks party hereto
or the respective Percentages of such Banks and update the Register. Within five
Business Days after the Company's receipt of notice from the Agent of the
effectiveness of any such assignment and delegation, if requested by the
Assignee in accordance with Section 12.9, the Company shall execute and deliver
to the Agent (for delivery to the relevant Assignee) new Notes in favor of such
Assignee and, if the assigning Bank has retained Loans and a Commitment
hereunder and if so requested by such Bank in accordance with Section 12.9,
replacement Notes in favor of the assigning Bank (such Notes to be in exchange
for, but not in payment of, the Notes previously held by such assigning Bank).
Each such Note shall be dated the date of the predecessor Notes. The assigning
Bank shall promptly xxxx the predecessor Notes, if any, "exchanged" and deliver
them to the Company. Any attempted assignment and delegation not made in
accordance with this Section 13.4.1 shall be null and void.
The foregoing consent requirement shall not be applicable in the case
of, and this Section 13.4.1 shall not restrict, any assignment or other transfer
by any Bank of all or any portion of such Bank's Loans or Commitment to (i) any
Federal Reserve Bank (provided, that such Federal Reserve Bank shall not be
considered a "Bank" for purposes of this Agreement) or (ii) any Affiliate of
such Bank (provided, that the assigning or transferring Bank shall give notice
of such assignment or transfer to the Agent and the Company). Further, the
foregoing consent requirement of the Company shall not be applicable if an Event
of Default has occurred and is continuing.
The Company, each Bank, and each Assignee acknowledge and agree that
after receipt by the Agent of the items and consents required by this Section
each Assignee shall be considered a Bank for all purposes of this Agreement
(including without limitation Sections 6.4, 7.1, 7.4, 13.5 and 13.6) and by its
acceptance of an assignment herein, each Assignee agrees to be bound by the
provisions of this Agreement (including without limitation Section 6.4).
Section 13.4.2. Participations. Any Bank may at any time sell
to one or more commercial banks or other Persons (any such commercial bank or
other Person being herein called a "Participant") participating interests in any
of its Loans, its Commitment or any other interest of such Bank hereunder;
provided, however, that
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(a) no participation contemplated in this Section 13.4.2
shall relieve such Bank from its Commitment or its other obligations
hereunder;
(b) such Bank shall remain solely responsible for the
performance of its Commitment and such other obligations hereunder and
such Bank shall retain the sole right and responsibility to enforce the
obligations of the Company hereunder, including the right to approve
any amendment, modification or waiver of any provision of this
Agreement (subject to Section 13.4.2(d) below);
(c) the Company and the Agent shall continue to deal
solely and directly with such Bank in connection with such Bank's
rights and obligations under this Agreement;
(d) no Participant, unless such Participant is an
Affiliate of such Bank, or is itself a Bank, shall be entitled to
require such Bank to take or refrain from taking any action hereunder,
except that such Bank may agree with any Participant that such Bank
will not, without such Participant's consent, take any actions of the
type described in the third sentence of Section 13.1;
(e) the Company shall not be required to pay any amount
under Sections 4.1, 6.4 or 7.1 that is greater than the amount which
the Company would have been required to pay had no participating
interest been sold;
(f) no Participant may further participate any interest
in any Committed Loan (and each participation agreement shall contain a
restriction to such effect);
(g) to the extent permitted by applicable law, each
Participant shall be considered a Bank for purposes of Section 6.4,
Section 7.1, Section 7.4, Section 13.5 and Section 13.6 and by its
acceptance of a participating interest in any Loan, Commitment or any
other interest of a Bank hereunder, each Participant agrees (i) that it
is bound by, and agrees to deliver all documentation required under,
the provisions of Section 6.2(b) and Section 6.4 as if such Participant
were a Bank, and (ii) it is not entitled to any benefits under Section
6.4 or Section 7.1 unless it is in full compliance with all
requirements imposed on Banks under any of those Sections; and
(h) such Bank shall have provided to the Agent evidence
reasonably satisfactory to the Agent that such Bank has complied with
the provisions of the last sentence of Section 12.6.
Any Bank (a "Granting Bank") may grant to a special purpose funding
vehicle organized under the laws of the United States of America or any State
thereof (a "SPV") of such Granting Bank, identified as such in writing from time
to time by the Granting Bank to the Administrative Agent and the Company, the
option to provide to the Company all or any part of its Loans that such Granting
Bank would otherwise be obligated to make to the Company pursuant to this
Agreement; provided, that (i) such SPV shall be deemed to be a Participant for
purposes of this Section 13.4.2, (ii) nothing herein shall constitute a
commitment by any SPV to make any Loan, (iii) if a SPV elects not to exercise
such option or otherwise fails to provide all or any part of
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such Loan, the Granting Bank shall be obligated to make such Loan pursuant to
the terms hereof and (iv) the Company shall not be required to pay any amount
under Sections 13.5 or 13.6 that is greater than the amount which the Company
would have been required to pay had such SPV not provided the Company with any
part of any Loan of such Granting Bank. The making of a Loan by a SPV hereunder
shall utilize the Commitment of the Granting Bank to the same extent, and as if,
such Loan were made by such Granting Bank. Each party hereto hereby agrees that
no SPV shall be liable for any indemnity or similar payment obligation under
this Agreement (any indemnity, liability or other payment obligation, including
but not limited to any tax liabilities that occur by reason of such funding by
the SPV, shall remain the obligation of the Granting Bank). In furtherance of
the foregoing, each party hereto agrees (which agreement shall survive the
termination of this Agreement) that, prior to the date that is one year and one
day after the payment in full of all outstanding commercial paper or other
senior indebtedness of any SPV, it will not institute against, or join any other
Person in instituting against, such SPV any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under the laws of the United
States or any State thereof. In addition, notwithstanding anything contrary
contained in this Section 13.4.2, any SPV may (i) with notice to, but without
the prior written consent of, the Company and the Administrative Agent and
without paying any processing fee therefor, assign all or a portion of its
interests in any Loans to the Granting Bank providing liquidity and/or credit
support to or for the account of such SPV to support the funding or maintenance
of Loans and (ii) disclose on a confidential basis any non-public information
relating to its Loans to any rating agency, commercial paper dealer or provider
of any surety, guarantee or credit or liquidity enhancement to such SPV. This
paragraph may not be amended without the written consent of any SPV at the time
holding all or any part of any Loans under this Agreement (which consent shall
not be unreasonably withheld or delayed).
Section 13.5. Costs, Expenses and Taxes. The Company agrees to
pay on demand (a) all reasonable out-of-pocket costs and expenses of the Agent
(including the reasonable fees and out-of-pocket expenses of counsel for the
Agent (and of local counsel, if any, who may be retained by said counsel)), in
connection with the preparation, execution, delivery and administration of this
Agreement, the Notes and all other instruments or documents provided for herein
or delivered or to be delivered hereunder or in connection herewith and (b) all
out-of-pocket costs and expenses (including reasonable attorneys' fees and legal
expenses and allocated costs of staff counsel) incurred by the Agent and each
Bank in connection with the enforcement of this Agreement, the Notes or any such
other instruments or documents. Each Bank agrees to reimburse the Agent for such
Bank's pro rata share (based upon its respective Percentage) of any such costs
or expenses incurred by the Agent on behalf of all the Banks and not paid by the
Company other than any fees and out-of-pocket expenses of counsel for the Agent
which exceed the amount which the Company has agreed with the Agent to
reimburse. In addition, the Company agrees to pay, and to hold the Agent and the
Banks harmless from all liability for, any stamp or other Taxes which may be
payable in connection with the execution and delivery of this Agreement, the
borrowings hereunder, the issuance of the Notes (if any) or the execution and
delivery of any other instruments or documents provided for herein or delivered
or to be delivered hereunder or in connection herewith. All obligations provided
for in this Section 13.5 shall survive repayment of the Loans, cancellation of
the Notes or any termination of this Agreement.
Credit Agreement
-49-
Section 13.6. Indemnification. In consideration of the
execution and delivery of this Agreement by the Agent and the Banks, the Company
hereby agrees to indemnify, exonerate and hold each of the Banks, the Agent, the
Affiliates of each of the Banks and the Agent, and each of the officers,
directors, employees and agents of the Banks, the Agent and the Affiliates of
each of the Banks and the Agent (collectively herein called the "Bank Parties"
and individually called a "Bank Party") free and harmless from and against any
and all actions, causes of action, suits, losses, liabilities, damages and
expenses, including, without limitation, reasonable attorneys' fees and
disbursements (collectively herein called the "Indemnified Liabilities"),
incurred by the Bank Parties or any of them as a result of, or arising out of,
or relating to (i) this Agreement, the Notes (if any) or the Loans or (ii) the
direct or indirect use of proceeds of any of the Loans or any credit extended
hereunder, except for any such Indemnified Liabilities arising on account of
such Bank Party's gross negligence or willful misconduct, and if and to the
extent that the foregoing undertaking may be unenforceable for any reason, the
Company hereby agrees to make the maximum contribution to the payment and
satisfaction of each of the Indemnified Liabilities which is permissible under
applicable law. The Company agrees not to assert any claim against the Bank
Parties on any theory of liability, for consequential, indirect, special or
punitive damages arising out of or otherwise relating to this Agreement and the
Notes (if any) or any of the transactions contemplated hereby or thereby or the
actual or proposed use of the proceeds of the Loans. All obligations provided
for in this Section 13.6 shall survive repayment of the Loans, cancellation of
the Notes (if any) or any termination of this Agreement.
Section 13.7. Regulation U. Each Bank represents that it in
good faith is not relying, either directly or indirectly, upon any margin stock
(as such term is defined in Regulation U promulgated by the Board of Governors
of the Federal Reserve System) as collateral security for the extension or
maintenance by it of any credit provided for in this Agreement.
Section 13.8. Extension of Termination Dates; Removal of
Banks; Substitution of Banks. (a) Not more than 60 days nor less than 45 days
prior to the then-effective Termination Date, the Company may, at its option,
request all the Banks then party to this Agreement to extend their scheduled
Termination Dates by an additional 364 days, or such shorter period as agreed
upon by the Company and the Agent, by means of a letter, addressed to each such
Bank and the Agent, substantially in the form of Exhibit J. Each such Bank
electing (in its sole discretion) so to extend its scheduled Termination Date
shall execute and deliver not earlier than the 30th day nor later than the 20th
day prior to the then-effective Termination Date counterparts of such letter to
the Company and the Agent, who shall notify the Company, in writing, of the
Banks' decisions no later than 15 days prior to the existing Termination Date,
whereupon (unless Banks with an aggregate Percentage in excess of 25% decline to
extend their respective scheduled Termination Dates, in which event the Agent
shall notify all the Banks thereof and no such extension shall occur) such
Bank's scheduled Termination Date shall be extended, effective only as of the
date that is such Bank's then-current scheduled Termination Date, to the date
that is 364 days, or such shorter period as agreed as provided above, after such
Bank's then-current scheduled Termination Date. Any Bank that declines or fails
to respond to the Company's request for such extension shall be deemed to have
not extended its scheduled Termination Date.
(b) With respect to any Bank (i) on account of which the
Company is required to make any deductions or withholdings or pay any additional
amounts, as contemplated by Section
Credit Agreement
-50-
6.4, (ii) on account of which the Company is required to pay any additional
amounts, as contemplated by Section 7.1, (iii) for which it is illegal to make a
LIBOR Rate Loan, as contemplated by Section 7.3 or (iv) which has declined to
extend such Bank's scheduled Termination Date and Banks with an aggregate
Percentage in excess of 75% have elected to extend their respective Termination
Dates, the Company may in its discretion, upon not less than 30 days' prior
written notice to the Agent and each Bank, remove such Bank as a party hereto.
Each such notice shall specify the date of such removal (which shall be a
Business Day and, if such Bank has any outstanding Bid Loans, shall (unless
otherwise agreed by such Bank) be on or after the last day of the Loan Period
for the Bid Loan of such Bank having the latest maturity date), which shall
thereupon become the scheduled Termination Date for such Bank.
(c) In the event that any Bank does not extend its
scheduled Termination Date pursuant to subsection (a) above or is the subject of
a notice of removal pursuant to subsection (b) above, then, at any time prior to
the Termination Date for such Bank (a "Terminating Bank"), the Company may, at
its option, arrange to have one or more other Eligible Assignees (which may be a
Bank or Banks, or if not a Bank, shall be acceptable to the Agent (such
acceptance not to be unreasonably withheld or delayed), and each of which shall
herein be called a "Successor Bank") with the approval of the Agent (such
approval not to be unreasonably withheld or delayed) succeed to all or a
percentage of the Terminating Bank's outstanding Loans, if any, and rights under
this Agreement and assume all or a like percentage (as the case may be) of such
Terminating Bank's undertaking to make Loans pursuant hereto and other
obligations hereunder (as if (i) in the case of any Bank electing not to extend
its scheduled Termination Date pursuant to subsection (a) above, such Successor
Bank had extended its scheduled Termination Date pursuant to such subsection (a)
and (ii) in the case of any Bank that is the subject of a notice of removal
pursuant to sub-section (b) above, no such notice of removal had been given by
the Company); provided, that prior to replacing any Terminating Bank with any
Successor Bank, the Company shall have given each Bank which has agreed to
extend its Termination Date an opportunity to increase its Commitment by all or
a portion of the Terminating Banks' Commitments. Such succession and assumption
shall be effected by means of one or more agreements supplemental to this
Agreement among the Terminating Bank, the Successor Bank, the Company and the
Agent. On and as of the effective date of each such supplemental agreement (i)
each Successor Bank party thereto shall be and become a Bank for all purposes of
this Agreement and to the same extent as any other Bank hereunder and shall be
bound by and entitled to the benefits of this Agreement in the same manner as
any other Bank and (ii) the Company agrees to pay to the Agent for the account
of the Agent a processing fee of $2,500 for each such Successor Bank which is
not a Bank.
(d) On the Termination Date for any Terminating Bank,
such Terminating Bank's Commitment shall terminate and the Company shall pay in
full all of such Terminating Bank's Loans (except to the extent assigned
pursuant to subsection (c) above) and all other amounts payable to such Bank
hereunder (including any amounts payable pursuant to Section 7.4 on account of
such payment); provided, that if an Event of Default or Unmatured Event of
Default exists on the date scheduled as any Terminating Bank's Termination Date,
payment of such Terminating Bank's Loans shall be postponed to (and, for
purposes of calculating facility fees under Section 4.4, utilization fees under
Section 4.5 and determining the Required Banks (except as provided below), but
for no other purpose, such Terminating Bank's Commitment shall
Credit Agreement
-51-
continue until) the first Business Day thereafter on which (i) no Event of
Default or Unmatured Event of Default exists (without regard to any waiver or
amendment that makes this Agreement less restrictive for the Company, other than
as described in clause (ii) below) or (ii) the Required Banks (which for
purposes of this subsection (d) shall be determined based upon the respective
Percentages and aggregate Commitments of all Banks other than any Terminating
Bank whose scheduled Termination Date has been extended pursuant to this
proviso) waive or amend the provisions of this Agreement to cure all existing
Events of Default or Unmatured Events of Default or agree to permit any
borrowing hereunder notwithstanding the existence of any such event. In the
event that CUSA or its Affiliates shall become a Terminating Bank, the Required
Banks with the consent of the Company (which consent shall not be unreasonably
withheld or delayed) shall appoint another Bank or other Person as Agent, which
shall have all of the rights and obligations of the Agent upon the effective
date of and pursuant to an agreement supplemental hereto among the Company and
the Banks, and thereupon CUSA, as Agent, shall be relieved from its obligations
as Agent hereunder, it being understood that the provisions of Section 12 shall
inure to the benefit of CUSA as to any actions taken or omitted to be taken by
it while it was Agent under this Agreement. If no such successor Agent shall be
appointed within 30 days of the Termination Date of the Agent, then the Agent
shall, on behalf of the Banks, appoint a successor Agent in accordance with the
provisions set forth in Section 12.8 for a resigning Agent.
(e) To the extent that all or a portion of any
Terminating Bank's obligations are not assumed pursuant to subsection (c) above,
the Aggregate Commitment shall be reduced on the applicable Termination Date and
each Bank's percentage of the reduced Aggregate Commitment shall be revised pro
rata to reflect such Terminating Bank's absence. The Agent shall distribute a
revised Schedule I indicating such revisions promptly after the applicable
Termination Date and update the Register accordingly. Such revised Schedule I
shall be deemed conclusive in the absence of demonstrable error.
(f) The Agent agrees to use reasonable commercial efforts
to assist the Company in locating one or more commercial banks or other
financial institutions to replace any Terminating Bank prior to such Terminating
Bank's Termination Date.
Section 13.9. Captions. Section captions used in this
Agreement are for convenience only and shall not affect the construction of this
Agreement.
Section 13.10. Governing Law; Severability. THIS AGREEMENT AND
EACH NOTE SHALL BE A CONTRACT MADE UNDER, GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK. All obligations of the Company
and the rights of the Agent, the Banks and any other holders of the Loans
expressed herein or in the Notes (if any) shall be in addition to and not in
limitation of those provided by applicable law. Whenever possible each provision
of this Agreement shall be interpreted in such manner as to be effective and
valid under applicable law, but if any provision of this Agreement shall be
prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Agreement.
Credit Agreement
-52-
Section 13.11. Counterparts; Effectiveness. This Agreement may
be executed in any number of counterparts and by the different parties on
separate counterparts and each such counterpart shall be deemed to be an
original, but all such counterparts shall together constitute but one and the
same Agreement. When counterparts of this Agreement executed by each party shall
have been lodged with the Agent (or, in the case of any Bank as to which an
executed counterpart shall not have been so lodged, the Agent shall have
received facsimile or other written confirmation of execution of a counterpart
hereof by such Bank), this Agreement shall become effective as of the date
hereof and the Agent shall so inform all of the parties hereto.
Section 13.12. Further Assurances. The Company agrees to do
such other acts and things, and to deliver to the Agent and each Bank such
additional agreements, powers and instruments, as the Agent or any Bank may
reasonably require or deem advisable to carry into effect the purposes of this
Agreement or to better assure and confirm unto the Agent and each Bank their
respective rights, powers and remedies hereunder.
Section 13.13. Successors and Assigns. This Agreement shall be
binding upon the Company, the Banks and the Agent and their respective
successors and assigns, and shall inure to the benefit of the Company, the Banks
and the Agent and the respective successors and assigns of the Banks and the
Agent. Subject to Section 9.9, the Company may not assign any of its rights or
delegate any of its duties under this Agreement without the prior written
consent of all of the Banks.
Section 13.14. Waiver of Jury Trial. THE COMPANY, THE AGENT
AND EACH BANK HEREBY WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR
PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT, ANY NOTE OR ANY
AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE
FUTURE BE DELIVERED IN CONNECTION HEREWITH OR ARISING FROM ANY BANKING
RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT, AND AGREE THAT ANY SUCH
ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.
Section 13.15. No Fiduciary Relationship. The Company
acknowledges that neither the Agent nor any Bank has any fiduciary relationship
with, or fiduciary duty to, the Company arising out of or in connection with
this Agreement, the Notes (if any) or the transactions contemplated hereby, and
the relationship between the Agent and the Banks, on the one hand, and the
Company, on the other, in connection herewith or therewith is solely that of
creditor and debtor. This Agreement does not create a joint venture among the
parties.
Section 13.16. Tax Structure Disclosure. Anything herein to
the contrary notwithstanding, each party hereto (and each party's employees,
representatives or other agents) may disclose to any and all Persons, without
limitation of any kind, the U.S. tax treatment and U.S. tax structure of this
Agreement and all materials of any kind (including opinions or other tax
analyses) that are provided to such party relating to such U.S. tax treatment
and U.S. tax structure, other than any information for which nondisclosure is
reasonably necessary in order to comply with applicable securities laws.
Credit Agreement
-53-
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the day and year first above written.
INTERNATIONAL LEASE FINANCE CORPORATION
By: /s/ Xxxx X. Xxxx
---------------------------------------
Name: Xxxx X. Xxxx
Title: Vice Chairman
Chief Financial Officer
By: /s/ Xxxxxx X. Xxxxxx
---------------------------------------
Name: Xxxxxx X. Xxxxxx
Title: Vice President
and Treasurer
Credit Agreement
-54-
Agent: CITICORP USA, INC., as Agent
By: /s/ Xxxxxx X. Xxxxxxxx
---------------------------------------
Name: Xxxxxx X. Xxxxxxxx
Title: Attorney-in-Fact
Credit Agreement
-55-
Banks: CITICORP USA, INC.
By: /s/ Xxxxxx X. Xxxxxxxx
---------------------------------------
Name: Xxxxxx X. Xxxxxxxx
Title: Attorney-in-Fact
Credit Agreement
-56-
THE GOVERNOR AND COMPANY OF
THE BANK OF SCOTLAND
By: /s/ X. X. Xxxxxx
---------------------------------------
Name: X. X. Xxxxxx
Title: Head of Aircraft Finance
Credit Agreement
-00-
XXXX XX XXXXXXX, N.A.
By: /s/ Xxxx X'Xxxxx
---------------------------------------
Name: Xxxx X'Xxxxx
Title: Managing Director
Credit Agreement
-58-
CREDIT SUISSE FIRST BOSTON, ACTING
THROUGH ITS CAYMAN ISLANDS BRANCH
By: /s/ Xxx Xxxxx /s/ Xxxxxxx Xxxx
---------------------------------------
Name: Xxx Xxxxx Xxxxxxx Xxxx
Title: Director Associate
Credit Agreement
-59-
JPMORGAN CHASE BANK
By: /s/ Xxxxxxx X. Xxxxxx
---------------------------------------
Name: Xxxxxxx X. Xxxxxx
Title: Managing Director
Credit Agreement
-00-
XXX XXXX XX XXXXX-XXXXXXXXXX, LTD.
NEW YORK BRANCH
By: /s/ Xxxxx X. Xxxx, Xx.
---------------------------------------
Xxxxx X. Xxxx, Xx.
Authorized Signatory
Credit Agreement
-61-
ABN AMRO BANK N.V.
By: /s/ Xxxx X. Xxxxx /s/ Xxxxxxx XxXxxxx
----------------------------------------------
Name: Xxxx X. Xxxxx Xxxxxxx XxXxxxx
Title: Group Vice Assistant Vice
President President
Credit Agreement
-62-
SOCIETE GENERALE
By: /s/ Xxxxx Xxxxxx
----------------------------------------------
Name: Xxxxx Xxxxxx, Vice President
Title: Corporate Banking, Societe Generale
Credit Agreement
-63-
XXXXXXX XXXXX BANK USA
By: /s/ Xxxxx Xxxxx
---------------------------------------
Name: Xxxxx Xxxxx
Title: Vice President
Credit Agreement
-00-
XXX XXXX XX XXXX XXXXXX
By: /s/ Xxxx Xxxxxxxx
---------------------------------------
Name: Xxxx Xxxxxxxx
Title: Managing Director
Credit Agreement
-65-
BANK ONE, NA
By: /s/ Xxxx Xxxxxx
---------------------------------------
Name: Xxxx Xxxxxx
Title: Director
By: /s/ X. Xxxxxxxx
---------------------------------------
Name: X. Xxxxxxxx
Title: Director
Credit Agreement
-66-
BARCLAYS BANK PLC
By: /s/ Xxxxxx XxXxxxxx
---------------------------------------
Name: Xxxxxx XxXxxxxx
Title: Associate Director
Credit Agreement
-67-
BNP PARIBAS
By: /s/ Xxxx Xxxxxxxxx
----------------------------------------
Name: Xxxx Xxxxxxxxx
Title: Director
By: /s/ Xxxxxx Xxxxxx
---------------------------------------
Name: Xxxxxx Xxxxxx
Title: Vice President
Credit Agreement
-00-
XXXXXXXX XXXX XX,
XXX XXXX BRANCH
By: /s/ Xxxxxxx Xxxxxx
---------------------------------------
Name: Xxxxxxx Xxxxxx
Title: Managing Director
By: /s/ Xxxx X. XxXxxx
---------------------------------------
Name: Xxxx X. XxXxxx
Title: Director
Credit Agreement
-69-
XXXXXX BROTHERS BANK, FSB
By: /s/ Xxxx X. Xxxxxx
---------------------------------------
Name: Xxxx X. Xxxxxx
Title: Vice President
Credit Agreement
-70-
HSBC BANK USA
By: /s/ Xxxxxxx X. Xxxxxxx
---------------------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: First Vice President
Credit Agreement
-71-
LLOYDS TSB BANK PLC
By: /s/ Xxxxxxx X. Xxxxxxxx
---------------------------------------
Name: Xxxxxxx X. Xxxxxxxx
Title: Director, Financial Institutions, USA
G311
By: /s/ Xxxxxxx Xxxxx
---------------------------------------
Name: Xxxxxxx Xxxxx
Title: Assistant Vice President
Financial Institutions, USA
B059
Credit Agreement
-00-
XXX XXXX XX XXX XXXX
By: /s/ Xxxxxxxx X. Xxxxxx
---------------------------------------
Name: Xxxxxxxx X. Xxxxxx
Title: Senior Vice President
Credit Agreement
-73-
MIZUHO CORPORATE BANK LTD
By: /s/ X. X. Xxxxxxxxx
---------------------------------------
Name: X. X. Xxxxxxxxx
Title: Vice President & Team Leader
Credit Agreement
-74-
XXXXXX XXXXXXX BANK
By: /s/ Jaap L. Tonckens
---------------------------------------
Name: Jaap L. Tonckens
Title: Vice President
Xxxxxx Xxxxxxx Bank
Credit Agreement
-75-
UBS LOAN FINANCE LLC
By: /s/ Xxxxxxxx X'Xxxxx
---------------------------------------
Name: Xxxxxxxx X'Xxxxx
Title: Director
By: /s/ Xxxxxxx X. Saint
---------------------------------------
Name: Xxxxxxx X. Saint
Title: Associate Director
Banking Products
Services, US
Credit Agreement
-76-
UFJ BANK LIMITED
By: /s/ Xxxxxxx X. Small
---------------------------------------
Name: Xxxxxxx X. Small
Title: Senior Vice President &
Area Manager
Credit Agreement
-77-
SANPAOLO IMI S.p.A.
By: /s/ Xxxxx Xxxxxxx
----------------------------------------
Name: Xxxxx Xxxxxxx
Title: E.V.P.
By: /s/ Xxxxxx Xxxxxxx
---------------------------------------
Name: Xxxxxx Xxxxxxx
Title: S.V.P.
Credit Agreement
-78-
SUMITOMO MITSUI
BANKING CORPORATION
By: /s/ Xxx X. Xxxxxxxxx
---------------------------------------
Name: Xxx X. Xxxxxxxxx
Title: Senior Vice President
Credit Agreement
-79-
STANDARD CHARTERED BANK
By: /s/ Xxxxxxx Xxxxxx
---------------------------------------
Name: Xxxxxxx Xxxxxx
Title: Senior Vice President
By: /s/ Xxxxxx Xxxxxxxxxx
---------------------------------------
Name: Xxxxxx Xxxxxxxxxx
Title: Assistant Vice President
Credit Agreement
-80-
SVENSKA HANDELSBANKEN
By: /s/ X.X. Xxxxx /s/ Niclas Fjalltoft
------------------------------------------------
Name: X.X. Xxxxx Xxxxxx Xxxxxxxxx
Title: Vice President Assistant Vice
President
Credit Agreement
Schedule I
Schedule of Banks
BANK COMMITMENT
Citicorp USA, Inc. $292,500,000.00
The Governor and Company $281,250,000.00
of the Bank of Scotland
Bank of America, N.A. $262,500,000.00
Credit Suisse First Boston $262,500,000.00
JPMorgan Chase Bank $225,000,000.00
The Bank of Tokyo-Mitsubishi, Ltd. $225,000,000.00
New York Branch
ABN AMRO Bank N.V. $187,500,000.00
Societe Generale $187,500,000.00
Xxxxxxx Xxxxx Bank USA $150,000,000.00
The Bank of Nova Scotia $112,500,000.00
Bank One, NA $112,500,000.00
Barclays Bank PLC $112,500,000.00
BNP Paribas $112,500,000.00
Deutsche Bank AG, New York Branch $112,500,000.00
Xxxxxx Brothers Bank, FSB $112,500,000.00
HSBC Bank USA $ 75,000,000.00
Lloyds TSB Bank plc $ 56,250,000.00
The Bank of New York $ 37,500,000.00
Mizuho Corporate Bank $ 37,500,000.00
Xxxxxx Xxxxxxx Bank $ 37,500,000.00
UBS $ 37,500,000.00
UFJ Bank Limited $ 37,500,000.00
SanPaolo IMI S.p.A. $ 26,250,000.00
Sumitomo Mitsui Banking Corporation $ 18,750,000.00
Standard Chartered Bank $ 18,750,000.00
Svenska Handelsbanken $ 18,750,000.00
Schedule I
Schedule II
Fees and Margins
(in basis points)
Level I Level II Level III Level IV Level V Level VI
Pricing Pricing Pricing Pricing Pricing Pricing
Facility Fee 7.0 8.0 9.0 10.0 12.5 17.5
Margins:
on LIBOR
Rate Loans
(other than
Term Loans) 8.0 17.0 26.0 35.0 47.5 57.5
on Base
Rate Loans 0.0 0.00 0.0 0.0 0.0 0.0
Competitive
Bid Option As bid by As bid by As bid by As bid by As bid by As bid by
the Banks the Banks the Banks the Banks the Banks the Banks
Utilization Fee
Rate:
In excess of
33.33% 5.0 5.0 5.0 5.0 5.0 10.0
In excess of
66.66% 5.0 5.0 5.0 10.0 10.0 15.0
Drawn Pricing Under
the Term-Out Option
(if LIBOR Rate
Loans) 40.0 50.0 60.0 75.0 90.0 115.0
For purposes of this Schedule, the following terms have the following
meanings:
"Level I Pricing" means the pricing during any period
during which the Company's long-term senior unsecured debt is rated AA
or higher by S&P or Aa2 or higher by Moody's.
Schedule II
-2-
"Level II Pricing" means the pricing during any
period during which (i) the Company's long-term senior unsecured debt
is rated AA- or higher by S&P or Aa3 or higher by Moody's and (ii)
Level I Pricing does not apply.
"Level III Pricing" means the pricing during any
period during which (i) the Company's long-term senior unsecured debt
is rated A+ or higher by S&P or A1 or higher by Moody's and (ii)
neither Level I Pricing nor Level II Pricing applies.
"Level IV Pricing" means the pricing during any
period during which (i) the Company's long-term senior unsecured debt
is rated A or higher by S&P or A2 or higher by Moody's and (ii) none of
Level I Pricing, Level II Pricing and Level III Pricing applies.
"Level V Pricing" means the pricing during any period
during which (i) the Company's long-term senior unsecured debt is rated
A- or higher by S&P or A3 or higher by Moody's and (ii) none of Level I
Pricing, Level II Pricing, Level III Pricing and Level IV Pricing
applies.
"Level VI Pricing" means the pricing during any
period during which no other Pricing Level applies.
"Moody's" means Xxxxx'x Investors Service, Inc. or
any successor corporation thereto.
"Pricing Level" means Level I Pricing, Level II
Pricing, Level III Pricing, Level IV Pricing, Level V Pricing and Level
VI Pricing.
"S & P" means Standard & Poor's Ratings, a division
of McGraw Hill, Inc., or any successor corporation thereto.
Any change in fees or margins by reason of a change in S&P's
rating or Xxxxx'x rating shall become effective on the date of announcement or
publication by the respective rating agencies of a change in such rating or, in
the absence of such announcement or publication, on the effective date of such
changed rating.
If S&P's rating and Xxxxx'x rating differ by more than one
rating level, then the applicable Pricing Level shall be one rating level higher
than the Pricing Level resulting from the application of the lower of such
ratings.
Schedule II
Schedule III
Address for Notices
PARTY ADDRESS FOR NOTICES
Company Xxxxxx X. Xxxxxx
1999 Avenue of the Stars, 00xx Xxxxx
Xxx Xxxxxxx, Xxxxxxxxxx 00000
Tel: 000-000-0000
Fax: 000-000-0000
Telex: 69-1400 INTERLEAS BVHL
Agent 0 Xxxxx Xxx, Xxxxx 000
Xxx Xxxxxx, XX 00000
Tel: 000-000-0000
Fax: 000-000-0000
Citicorp USA, Inc., as Bank 0 Xxxxx Xxx, Xxxxx 000
Xxx Xxxxxx, XX 00000
Tel: 000-000-0000
Fax: 000-000-0000
ABN Amro Bank N.V.
Bank of America, N.A. Xxxx X'Xxxxx
000 Xxxx Xxxxxx, 00xx Xx.
Xxxxxx, XX 00000
Tel: 000-000-0000
Fax: 000-000-0000
Email: xxxx.xxxxxx@xxxxxxxxxxxxx.xxx
Bank One, NA Xxxx Xxxxxx
1 Bank One Plaza
Mail Code IL1-0085
Xxxxxxx, XX 00000
Tel: 000-000-0000
Fax: 000-000-0000
Email: xxxx_x_xxxxxx@xxxxxxx.xxx
Barclays Bank Plc Xxxxxx Xxxxxxxxxxx
Tel: 000-000-0000
Fax: 000-000-0000
BNP Paribas Xxxx Xxxxxxxxx
000 Xxxxxxx Xxx., 00xx Xxxxx
Xxx Xxxx, XX 00000
Tel: 000-000-0000
Fax: 000-000-0000
Email: Xxxx.xxxxxxxxx@xxxxxxxx.xxxxxxxxxx.xxx
Credit Suisse First Boston Xxx Xxxxx
Schedule III
-0-
Xxxxxx Xxxxxxx Xxxxxx
Xxx Xxxx, XX 00000
Tel: 000-000-0000
Fax: 000-000-0000
Email: xxx.xxxxx@xxxx.xxx
Deutsche Bank AG New York Branch
HSBC Bank USA
JPMorgan Chase Bank
Xxxxxx Brothers Bank, FSB G. Xxxxxx Xxxxx
000 Xxxxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
Tel: 000-000-0000
Fax: 000-000-0000
Email: xxxxxx@xxxxxx.xxx
Lloyds TSB Bank Plc Xxx Xxxxxx/Xxxx Xxxx
1251 Avenue of the Xxxxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
Tel: 000-000-0000/000-000-0000
Fax: 000-0000
Email: xxxxxxx@xxxxxxxxx-xxx.xxx
xxxxx@xxxxxxxxx-xxx.xxx
Xxxxxxx Xxxxx Bank USA Xxxxx Xxxxx
00 X. Xxxxx Xxxxxx, Xxxxx 000
Xxxx Xxxx Xxxx, XX 00000
Tel: 000-000-0000
Fax: 000-000-0000
Mizuho Corporate Bank
Xxxxxx Xxxxxxx Bank Xxxxxx XxXxxxxx
000 Xxxxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
Tel: 000-000-0000
Fax: 000-000-0000
Email: xxxxxx.xxxxxxxx@xxxxxxxxxxxxx.xxx
SanPaolo IMI S.p.A. Xxxxxx Xxxxx
000 Xxxxx Xxxxxx Xxxxxx, Xxxxx 0000
Xxx Xxxxxxx, XX 00000
Tel: 000-000-0000
Fax: 000-000-0000
Email: xxxxxxx@xxxxxxxxx.xx
Sumitomo Mitsui Banking Corporation
Societe Generale
Standard Chartered Bank Xxxxxx Xxxxxxx
Xxx Xxxxxxx Xxxxxx
0xx Xxxxx
Xxx Xxxx, XX 00000
Tel: 000-000-0000
Schedule III
-3-
Fax: 000-000-0000
Email:Xxxxxx.Xxxxxxx@xx.xxxxxxxxxxxxxxxxx.xxx
Svenska Handelsbanken
Bank of New York
The Bank of Nova Scotia Xxx Xxxxx
Xxx Xxxxxxx Xxxxx
Xxx Xxxx, XX 00000
Tel: 000-000-0000
Fax: 000-000-0000
Email: xxx_xxxxx@xxxxxxxxxxxxx.xxx
The Bank of Tokyo-Mitsubishi, Ltd. New
York Branch
The Governor and Company of the Bank of
Scotland Xxxxx Xxxxxxxxx
000 Xxxxxxxxxxx
Xxxxx 0
Xxxxxx XX0X 0XX
Tel: 000 0000 0000
Fax: 000 0000 0000
Email: xxxx_xxxx@xxxxxxxxxxxxxx.xx.xx
UBS AG, Cayman Islands Branch
UFJ Bank Limited Xxxxxxx X. Small
00 Xxxx 00xx Xxxxxx
Xxx Xxxx, XX 00000
Tel: 000-000-0000
Fax: 000-000-0000
Email: xxxxxxx_xxxxx@xxxxxxx.xx.xx
Schedule III
