Exhibit 10.1
EXECUTION COPY
364 DAY CREDIT AGREEMENT
by and among
CVS CORPORATION,
THE LENDERS PARTY HERETO,
BANK OF AMERICA, N.A., CREDIT SUISSE FIRST BOSTON, and
WACHOVIA SECURITIES, INC.,
as Co-Syndication Agents,
SUNTRUST BANK,
as Documentation Agent,
and
THE BANK OF NEW YORK,
as Administrative Agent
-----------------------------
Dated as of June 11, 2004
-----------------------------
BNY CAPITAL MARKETS, INC.
as Lead Arranger and Book Runner
TABLE OF CONTENTS
1. DEFINITIONS AND PRINCIPLES OF CONSTRUCTION.....................................................1
1.1 Definitions............................................................................1
1.2 Principles of Construction............................................................15
2. AMOUNT AND TERMS OF LOANS.....................................................................16
2.1 Revolving Credit Loans................................................................16
2.2 [Intentionally Omitted]...............................................................16
2.3 Notice of Borrowing Revolving Credit Loans............................................16
2.4 Competitive Bid Loans and Procedure...................................................17
2.5 Use of Proceeds.......................................................................19
2.6 Termination or Reduction of Commitments...............................................19
2.7 Prepayments of Loans..................................................................20
2.8 [Intentionally Omitted]...............................................................20
2.9 [Intentionally Omitted]...............................................................20
2.10 [Intentionally Omitted]...............................................................20
2.11 Notes.................................................................................20
3. PROCEEDS, PAYMENTS, CONVERSIONS, INTEREST, YIELD PROTECTION AND FEES..........................21
3.1 Disbursement of the Proceeds of the Loans.............................................21
3.2 Payments..............................................................................21
3.3 Conversions; Other Matters............................................................22
3.4 Interest Rates and Payment Dates......................................................23
3.5 Indemnification for Loss..............................................................25
3.6 Reimbursement for Costs, Etc..........................................................25
3.7 Illegality of Funding.................................................................26
3.8 Option to Fund; Substituted Interest Rate.............................................27
3.9 Certificates of Payment and Reimbursement.............................................28
3.10 Taxes; Net Payments...................................................................28
3.11 Fees..................................................................................29
3.12 Replacement of Lender.................................................................30
4. REPRESENTATIONS AND WARRANTIES................................................................30
4.1 Existence and Power...................................................................30
4.2 Authority.............................................................................31
4.3 Binding Agreement.....................................................................31
4.4 Litigation............................................................................31
4.5 No Conflicting Agreements.............................................................31
4.6 Taxes.................................................................................32
4.7 Compliance with Applicable Laws; Filings..............................................32
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4.8 Governmental Regulations..............................................................32
4.9 Federal Reserve Regulations; Use of Proceeds..........................................32
4.10 No Misrepresentation..................................................................33
4.11 Plans.................................................................................33
4.12 Environmental Matters.................................................................34
4.13 Financial Statements..................................................................34
5. CONDITIONS OF LENDING - FIRST LOANS ON THE FIRST BORROWING DATE...............................35
5.1 Evidence of Corporate Action..........................................................35
5.2 Notes.................................................................................35
5.3 Opinion of Counsel to the Borrower....................................................35
6. CONDITIONS OF LENDING - ALL LOANS.............................................................35
6.1 Compliance............................................................................35
6.2 Requests..............................................................................36
6.3 Loan Closings.........................................................................36
7. AFFIRMATIVE COVENANTS.........................................................................36
7.1 Legal Existence.......................................................................36
7.2 Taxes.................................................................................36
7.3 Insurance.............................................................................36
7.4 Performance of Obligations............................................................36
7.5 Condition of Property.................................................................37
7.6 Observance of Legal Requirements......................................................37
7.7 Financial Statements and Other Information............................................37
7.8 Records...............................................................................39
7.9 Authorizations........................................................................39
7.10 Existing Five Year Credit Agreement...................................................39
8. NEGATIVE COVENANTS............................................................................39
8.1 Subsidiary Indebtedness...............................................................39
8.2 Liens.................................................................................39
8.3 Dispositions..........................................................................40
8.4 Merger or Consolidation, Etc..........................................................40
8.5 Acquisitions..........................................................................41
8.6 Restricted Payments...................................................................41
8.7 Limitation on Upstream Dividends by Subsidiaries......................................41
8.8 Limitation on Negative Pledges........................................................42
8.9 Ratio of Consolidated Indebtedness to Total Capitalization............................42
9. DEFAULT.......................................................................................42
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9.1 Events of Default.....................................................................42
9.2 Remedies..............................................................................44
10. AGENT.........................................................................................45
10.1 Appointment...........................................................................45
10.2 Delegation of Duties..................................................................45
10.3 Exculpatory Provisions................................................................46
10.4 Reliance by Administrative Agent......................................................46
10.5 Notice of Default.....................................................................47
10.6 Non-Reliance..........................................................................47
10.7 [Intentionally Omitted]...............................................................48
10.8 Administrative Agent in Its Individual Capacity.......................................48
10.9 Successor Administrative Agent........................................................48
10.10 Co-Syndication Agents and Documentation Agent.........................................48
11. OTHER PROVISIONS..............................................................................49
11.1 Amendments, Waivers, Etc..............................................................49
11.2 Notices...............................................................................49
11.3 No Waiver; Cumulative Remedies........................................................51
11.4 Survival of Representations and Warranties............................................51
11.5 Payment of Expenses and Taxes; Indemnified Liabilities................................51
11.6 Lending Offices.......................................................................52
11.7 Successors and Assigns................................................................52
11.8 Counterparts..........................................................................55
11.9 Set-off and Sharing of Payments.......................................................55
11.10 Indemnity.............................................................................56
11.11 Governing Law.........................................................................57
11.12 Severability..........................................................................57
11.13 Integration...........................................................................57
11.14 Treatment of Certain Information......................................................58
11.15 Acknowledgments.......................................................................59
11.16 Consent to Jurisdiction...............................................................59
11.17 Service of Process....................................................................59
11.18 No Limitation on Service or Suit......................................................59
11.19 WAIVER OF TRIAL BY JURY...............................................................59
11.20 Effective Date........................................................................60
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EXHIBITS
Exhibit A List of Commitments
Exhibit B Form of Note
Exhibit C Form of Borrowing Request
Exhibit D-1 Form of Opinion of Counsel to the Borrower
Exhibit D-2 Form of Opinion of Special Counsel to the Borrower
Exhibit E Form of Assignment and Acceptance Agreement
Exhibit F Form of Competitive Bid Request
Exhibit G Form of Invitation to Bid
Exhibit H Form of Competitive Bid
Exhibit I Form of Competitive Bid Accept/Reject Letter
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364 DAY CREDIT AGREEMENT, dated as of June 11, 2004, by and among
CVS CORPORATION, a Delaware corporation (the "BORROWER"), the Lenders party
hereto from time to time (each a "LENDER" and, collectively, the "LENDERS"),
BANK OF AMERICA, N.A., CREDIT SUISSE FIRST BOSTON, and WACHOVIA SECURITIES,
INC., as co-syndication agents (in such capacity, each a "CO-SYNDICATION
AGENT"), SUNTRUST BANK, as documentation agent (in such capacity, a
"DOCUMENTATION AGENT"), and THE BANK OF
NEW YORK ("BNY"), as administrative
agent for the Lenders (in such capacity, the "ADMINISTRATIVE AGENT").
1. DEFINITIONS AND PRINCIPLES OF CONSTRUCTION
1.1 Definitions
When used in any Loan Document (as defined below), each of the
following terms shall have the meaning ascribed thereto unless the context
otherwise specifically requires:
"ABR ADVANCES": the Revolving Credit Loans (or any portions thereof) at
such time as they (or such portions) are made or are being maintained at a rate
of interest based upon the Alternate Base Rate.
"ACCUMULATED FUNDING DEFICIENCY": as defined in Section 302 of ERISA.
"ACQUISITION": with respect to any Person, the purchase or other
acquisition by such Person, by any means whatsoever (including by devise,
bequest, gift, through a dividend or otherwise), of (a) stock of, or other
equity securities of, any other Person if, immediately thereafter, such other
Person would be either a consolidated subsidiary of such Person or otherwise
under the control of such Person, (b) any business, going concern or division or
segment thereof, or (c) the Property of any other Person other than in the
ordinary course of business, PROVIDED that (i) no acquisition of substantially
all of the assets, or any division or segment, of such other Person shall be
deemed to be in the ordinary course of business and (ii) no redemption,
retirement, purchase or acquisition by any Person of the stock or other equity
securities of such Person shall be deemed to constitute an Acquisition.
"ADMINISTRATIVE AGENT": as defined in the preamble.
"ADMINISTRATIVE QUESTIONNAIRE": an Administrative Questionnaire in a form
supplied by the Administrative Agent.
"AFFECTED ADVANCE": as defined in Section 3.8(b).
"AFFILIATE": with respect to any Person at any time and from time to time,
any other Person (other than a wholly-owned subsidiary of such Person) which, at
such time (a) controls such Person, (b) is controlled by such Person or (c) is
under common control with such Person. The term "control", as used in this
definition with respect to any Person, means the power, whether direct or
indirect through one or more intermediaries, to direct or cause the direction of
the management and policies of such Person, whether through the ownership of
voting securities or other interests, by contract or otherwise.
"AGGREGATE COMMITMENT AMOUNT": at any time, the sum of the Commitment
Amounts of the Lenders at such time under this Agreement.
"AGGREGATE CREDIT EXPOSURE": at any time, the sum at such time of (a) the
aggregate Committed Credit Exposure of the Lenders at such time under this
Agreement and (b) the aggregate outstanding principal balance of all Competitive
Bid Loans at such time under this Agreement.
"AGREEMENT": this Credit Agreement, as the same may be amended,
supplemented or otherwise modified from time to time.
"ALTERNATE BASE RATE": for any day, a rate per annum equal to the greater
of (a) the BNY Rate in effect on such day, or (b) 0.50% plus the Federal Funds
Effective Rate (rounded, if necessary, to the nearest l/100th of 1% or, if there
is no nearest 1/100 of 1%, then to the next higher 1/100 of 1%) in effect on
such day.
"APPLICABLE MARGIN": (i) with respect to the unpaid principal balance of
ABR Advances, the applicable percentage set forth below in the column entitled
"ABR Advances", (ii) with respect to the unpaid principal balance of Eurodollar
Advances, the applicable percentage set forth below in the column entitled
"Eurodollar Advances", (iii) with respect to the Facility Fee, the applicable
percentage set forth below in the column entitled "Facility Fee", and (iv) with
respect to the Utilization Fee, the applicable percentage set forth below in the
column entitled "Utilization Fee", in each case opposite the applicable Pricing
Level:
ABR EURODOLLAR FACILITY UTILIZATION
PRICING LEVEL ADVANCES ADVANCES FEE FEE
-------------------------- -------------- ---------------- --------------- ----------------
Pricing Level I 0% 0.155% 0.045% 0.050%
Pricing Level II 0% 0.195% 0.055% 0.050%
Pricing Level III 0% 0.235% 0.065% 0.050%
Pricing Level IV 0% 0.300% 0.075% 0.050%
Pricing Level V 0% 0.350% 0.100% 0.100%
Pricing Level VI 0% 0.425% 0.125% 0.100%
Pricing Level VII 0% 0.500% 0.150% 0.100%
Decreases in the Applicable Margin resulting from a change in Pricing Level
shall become effective upon the delivery by the Borrower to the Administrative
Agent of a notice pursuant to Section 7.7(d). Increases in the Applicable Margin
resulting from a change in Pricing Level shall
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become effective on the effective date of any downgrade or withdrawal in the
rating by Xxxxx'x or S&P of the senior unsecured long term debt rating of the
Borrower.
"APPROVED FUND": with respect to any Lender that is a fund that invests in
commercial loans, any other fund that invests in commercial loans and is managed
or advised by the same investment advisor as such Lender or by an Affiliate of
such investment advisor.
"ASSIGNMENT AND ACCEPTANCE AGREEMENT": an assignment and acceptance
agreement executed by an assignor and an assignee pursuant to which, subject to
the terms and conditions hereof and thereof, the assignor assigns to the
assignee all or any portion of such assignor's Loans, Notes and Commitment,
substantially in the form of Exhibit E.
"BENEFITED LENDER": as defined in Section 11.9(b).
"BNY": as defined in the preamble.
"BNY RATE": a rate of interest per annum equal to the rate of interest
publicly announced in
New York City by BNY from time to time as its prime
commercial lending rate, such rate to be adjusted automatically (without notice)
on the effective date of any change in such publicly announced rate.
"BORROWER": as defined in the preamble.
"BORROWING DATE": (i) in respect of Revolving Credit Loans, any Domestic
Business Day or Eurodollar Business Day, as the case may be, on which the
Lenders shall make Revolving Credit Loans pursuant to a Borrowing Request and
(ii) in respect of Competitive Bid Loans, any Domestic Business Day on which a
Lender shall make a Competitive Bid Loan pursuant to a Competitive Bid Request.
"BORROWING REQUEST": a request for Revolving Credit Loans in the form of
Exhibit C.
"BRIDGE FACILITY CREDIT AGREEMENT": the Bridge Facility Credit Agreement,
dated as of June 11, 2004, by and among the Borrower, the lenders party thereto,
Bank of America, N.A., Credit Suisse First Boston, and Wachovia Securities,
Inc., as co-syndication agents, and BNY, as administrative agent, as the same
may be amended, supplemented or otherwise modified from time to time.
"CHANGE OF CONTROL": any of the following:
(i) any Person or group (as such term is used in Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended), (a) shall have or acquire
beneficial ownership of securities having 30% or more of the ordinary voting
power of the Borrower or (b) shall possess, directly or indirectly, the power to
direct or cause the direction of the management and policies of the Borrower,
whether through the ownership of voting securities, by contract or otherwise; or
(ii) the Continuing Directors shall cease for any reason to constitute a
majority of the board of directors of the Borrower then in office.
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"COMMITMENT": in respect of any Lender, such Lender's undertaking to make
Revolving Credit Loans, subject to the terms and conditions hereof, in an
aggregate outstanding principal amount not to exceed the Commitment Amount of
such Lender.
"COMMITMENT AMOUNT": at any time and with respect to any Lender, the
amount set forth adjacent to such Lender's name under the heading "Commitment
Amount" in Exhibit A at such time or, in the event that such Lender is not
listed on Exhibit A, the "Commitment Amount" which such Lender shall have
assumed from another Lender in accordance with Section 11.7 on or prior to such
time, as the same may be adjusted from time to time pursuant to Sections 2.6 and
11.7(c).
"COMMITMENT PERCENTAGE": at any time and with respect to any Lender, a
fraction the numerator of which is such Lender's Commitment Amount at such time,
and the denominator of which is the Aggregate Commitment Amount at such time.
"COMMITMENT PERIOD": the period commencing on the Effective Date and
ending on the Commitment Termination Date, or on such earlier date as all of the
Commitments shall have been terminated in accordance with the terms hereof.
"COMMITMENT TERMINATION DATE": the earlier of June 10, 2005 and the date
on which the Loans shall become due and payable, whether by acceleration, notice
of intention to prepay or otherwise.
"COMMITTED CREDIT EXPOSURE": with respect to any Lender at any time, the
sum at such time of the outstanding principal balance of such Lender's Revolving
Credit Loans.
"COMPENSATORY INTEREST PAYMENT": as defined in Section 3.4(c).
"COMPETITIVE BID": an offer by a Lender, in the form of Exhibit H, to make
one or more Competitive Bid Loans.
"COMPETITIVE BID ACCEPT/REJECT LETTER": a notification made by the
Borrower pursuant to Section 2.4(d) in the form of Exhibit I.
"COMPETITIVE BID LOAN": as defined in Section 2.4(a).
"COMPETITIVE BID RATE": as to any Competitive Bid made by a Lender
pursuant to Section 2.4(b), the fixed rate of interest (which shall be expressed
in the form of a decimal to no more than four decimal places) offered by such
Lender and accepted by the Borrower.
"COMPETITIVE BID REQUEST": a request by the Borrower, in the form of
Exhibit F, for Competitive Bids.
"COMPETITIVE INTEREST PERIOD": as to any Competitive Bid Loan, the period
commencing on the date of such Competitive Bid Loan and ending on the date
requested in the Competitive Bid Request with respect thereto, which shall not
be earlier than 3 days after the date of such Competitive Bid Loan or later than
180 days after the date of such Competitive Bid Loan, PROVIDED that if any
Competitive Interest Period would end on a day other than a Domestic Business
Day,
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such Interest Period shall be extended to the next succeeding Domestic Business
Day, unless such next succeeding Domestic Business Day would be a date on or
after the Commitment Termination Date, in which case such Competitive Interest
Period shall end on the next preceding Domestic Business Day. Interest shall
accrue from and including the first day of a Competitive Interest Period to but
excluding the last day of such Competitive Interest Period.
"CONSOLIDATED": the Borrower and the Subsidiaries on a consolidated basis
in accordance with GAAP.
"CONTINGENT OBLIGATION": as to any Person (the "secondary obligor"), any
obligation of such secondary obligor (a) guaranteeing or in effect guaranteeing
any return on any investment made by another Person, or (b) guaranteeing or in
effect guaranteeing any Indebtedness, lease, dividend or other obligation
("primary obligation") of any other Person (the "primary obligor") in any
manner, whether directly or indirectly, including any obligation of such
secondary obligor, whether or not contingent, (i) to purchase any such primary
obligation or any Property constituting direct or indirect security therefor,
(ii) to advance or supply funds (A) for the purchase or payment of any such
primary obligation or (B) to maintain working capital or equity capital of the
primary obligor or otherwise to maintain the net worth or solvency of the
primary obligor, (iii) to purchase Property, securities or services primarily
for the purpose of assuring the beneficiary of any such primary obligation of
the ability of the primary obligor to make payment of such primary obligation,
(iv) otherwise to assure or hold harmless the beneficiary of such primary
obligation against loss in respect thereof, and (v) in respect of the
Indebtedness of any partnership in which such secondary obligor is a general
partner, except to the extent that such Indebtedness of such partnership is
nonrecourse to such secondary obligor and its separate Property, PROVIDED that
the term "Contingent Obligation" shall not include the indorsement of
instruments for deposit or collection in the ordinary course of business.
"CONTINUING DIRECTOR": any member of the board of directors of the
Borrower who (i) is a member of that board of directors on the Effective Date or
(ii) was nominated for election by the board of directors a majority of whom
were directors on the Effective Date or whose election or nomination for
election was previously approved by one or more of such directors.
"CONTROL PERSON": as defined in Section 3.6.
"CONVERT", "CONVERSION" and "CONVERTED": each, a reference to a conversion
pursuant to Section 3.3 of one Type of Revolving Credit Loan into another Type
of Revolving Credit Loan.
"COSTS": as defined in Section 3.6.
"CO-SYNDICATION AGENTS": as defined in the preamble.
"CREDIT EXPOSURE": with respect to any Lender at any time, the sum at such
time of (a) the Committed Credit Exposure of such Lender at such time under this
Agreement and (b) the outstanding principal balance of all Competitive Bid Loans
of such Lender at such time under this Agreement.
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"CREDIT PARTIES" means the Administrative Agent, the Co-Syndication
Agents, the Documentation Agent and the Lenders.
"DEFAULT": any of the events specified in Section 9.1, whether any
requirement for the giving of notice, the lapse of time, or both, or any other
condition, has been satisfied.
"DISPOSITION": with respect to any Person, any sale, assignment, transfer
or other disposition by such Person by any means, of:
(a) the Stock of, or other equity interests of, any other Person,
(b) any business, operating entity, division or segment thereof, or
(c) any other Property of such Person, other than (i) the sale of
inventory (other than in connection with bulk transfers), (ii) the disposition
of equipment and (iii) the sale of cash investments.
"DIVIDEND RESTRICTIONS": as defined in Section 8.7.
"Documentation Agent": as defined in the preamble.
"DOLLAR" OR "$": lawful currency of the United States of America.
"DOMESTIC BUSINESS DAY": any day (other than a Saturday, Sunday or legal
holiday in the State of
New York) on which banks are open for business in
New
York City.
"ECKERD": Eckerd Corporation, a Delaware corporation.
"ECKERD ACQUISITION": the acquisition by the Borrower from Eckerd of
approximately 1260 drugstores located mainly in the southern United States,
including Texas and Florida, as well as Eckerd's mail order, specialty pharmacy
and pharmacy benefits management businesses pursuant to the Eckerd Asset
Purchase Agreement.
"ECKERD ASSET PURCHASE AGREEMENT": the Asset Purchase Agreement, dated as
of April 4, 2004, between the Borrower, CVS Pharmacy, Inc. and X.X. Penney
Company, Inc. and certain of its subsidiaries, including Eckerd (as amended,
supplemented or otherwise modified from time to time).
"EFFECTIVE DATE": as defined in Section 11.20.
"ELIGIBLE ASSIGNEE": (i) any commercial bank, investment bank, trust
company, banking association, financial institution, mutual fund, pension fund
or any Approved Fund or (ii) any Lender or any Affiliate or any Approved Fund of
such Lender.
"ELIGIBLE SPC": a special purpose corporation that (i) is organized under
the laws of the United States or any state thereof, (ii) is engaged in making,
purchasing or otherwise investing in commercial loans in the ordinary course of
its business and (iii) issues (or the parent of which issues) commercial paper
rated at least A-1 or the equivalent thereof by S&P or at least P-1 or the
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equivalent thereof by Xxxxx'x.
"EMPLOYEE BENEFIT PLAN": an employee benefit plan, within the meaning of
Section 3(3) of ERISA, maintained, sponsored or contributed to by the Borrower,
any Subsidiary or any ERISA Affiliate.
"ENVIRONMENTAL LAWS": all laws, rules, regulations, codes, ordinances,
orders, decrees, judgments, injunctions, notices or binding agreements issued,
promulgated or entered into by any Governmental Authority, relating in any way
to the environment, preservation or reclamation of natural resources, the
management, release or threatened release of any Hazardous Material or to health
and safety matters.
"ENVIRONMENTAL LIABILITY": as to any Person, any liability, contingent or
otherwise (including any liability for damages, costs of environmental
remediation, fines, penalties or indemnities), of such Person directly or
indirectly resulting from or based upon (i) violation of any Environmental Law,
(ii) the generation, use, handling, transportation, storage, treatment or
disposal of any Hazardous Materials, (iii) exposure to any Hazardous Materials,
(iv) the release or threatened release of any Hazardous Materials into the
environment or (v) any contract, agreement or other consensual arrangement
pursuant to which liability is assumed or imposed with respect to any of the
foregoing.
"ERISA": the Employee Retirement Income Security Act of 1974, as amended
from time to time, or any successor thereto, and the rules and regulations
issued thereunder, as from time to time in effect.
"ERISA AFFILIATE": when used with respect to an Employee Benefit Plan,
ERISA, the PBGC or a provision of the Internal Revenue Code pertaining to
employee benefit plans, any Person that is a member of any group of
organizations within the meaning of Sections 414(b) or (c) of the Internal
Revenue Code or, solely with respect to the applicable provisions of the
Internal Revenue Code, Sections 414(m) or (o) of the Internal Revenue Code, of
which the Borrower or any Subsidiary is a member.
"ESOP GUARANTY": the guaranty of the 8.52% ESOP Note maturing 2008 in the
aggregate unpaid principal amount, as of January 3, 2004, of $163,200,000.
"EURODOLLAR ADVANCE": a portion of the Revolving Credit Loans selected by
the Borrower to bear interest during a Eurodollar Interest Period selected by
the Borrower at a rate per annum based upon a Eurodollar Rate determined with
reference to such Interest Period, all pursuant to and in accordance with
Section 2.1 or 3.3.
"EURODOLLAR BUSINESS DAY": any Domestic Business Day, other than a
Domestic Business Day on which banks are not open for dealings in Dollar
deposits in the interbank eurodollar market.
"EURODOLLAR INTEREST PERIOD": the period commencing on any Eurodollar
Business Day selected by the Borrower in accordance with Section 2.1 or Section
3.3 and ending one, two, three or six months thereafter, as selected by the
Borrower in accordance with either such Sections, subject to the following:
7
(i) if any Interest Period would otherwise end on a day which is not a
Eurodollar Business Day, such Interest Period shall be extended to the
immediately succeeding Eurodollar Business Day unless the result of such
extension would be to carry the end of such Interest Period into another
calendar month, in which event such Interest Period shall end on the Eurodollar
Business Day immediately preceding such day; and
(ii) if any Interest Period shall begin on the last Eurodollar Business
Day of a calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period),
such Interest Period shall end on the last Eurodollar Business Day of such
latter calendar month.
"EURODOLLAR RATE": with respect to each Eurodollar Advance and as
determined by the Administrative Agent, the rate of interest per annum (rounded,
if necessary, to the nearest 1/100 of 1% or, if there is no nearest 1/100 of 1%,
then to the next higher 1/100 of 1%) equal to a fraction, the numerator of which
is the rate per annum quoted by BNY at approximately 11:00 A.M. (or as soon
thereafter as practicable) two Eurodollar Business Days prior to the first day
of such Interest Period to leading banks in the interbank eurodollar market as
the rate at which BNY is offering Dollar deposits in an amount approximately
equal to its Commitment Percentage of such Eurodollar Advance and having a
period to maturity approximately equal to the Interest Period applicable to such
Eurodollar Advance, and the denominator of which is an amount equal to 1.00
MINUS the aggregate of the then stated maximum rates during such Interest Period
of all reserve requirements (including marginal, emergency, supplemental and
special reserves), expressed as a decimal, established by the Board of Governors
of the Federal Reserve System and any other banking authority to which BNY and
other major United States money center banks are subject, in respect of
eurocurrency liabilities.
"EVENT OF DEFAULT": any of the events specified in Section 9.1, PROVIDED
that any requirement for the giving of notice, the lapse of time, or both, or
any other condition has been satisfied.
"EXPIRATION DATE": the first date, occurring after the Commitments shall
have terminated or been terminated in accordance herewith, upon which there
shall be no Loans outstanding.
"EXISTING FIVE YEAR BANK INDEBTEDNESS": all Indebtedness under the
Existing Five Year Credit Agreement and all accrued and unpaid monetary
obligations of the Borrower under the Existing Five Year Credit Agreement.
"EXISTING FIVE YEAR CREDIT AGREEMENT": the Five Year Credit Agreement,
dated as of May 21, 2001, by and among the Borrower, the lenders party thereto,
Credit Suisse First Boston and First Union National Bank, as co-documentation
agents, and BNY, as administrative agent thereunder, as amended.
"FACILITY FEE": as defined in Section 3.11(a).
"FEDERAL FUNDS EFFECTIVE RATE": 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
8
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 Domestic
Business Day, for the next preceding Domestic Business Day) by the Federal
Reserve Bank of
New York, or, if such rate is not so published for any day which
is a Domestic Business Day, the average (rounded, if necessary, to the nearest
1/100 of 1% or, if there is no nearest 1/100 of 1%, then to the next higher
1/100 of 1%) of the quotations for such day on such transactions received by the
Administrative Agent from three Federal funds brokers of recognized standing
selected by the Administrative Agent.
"FEES": as defined in Section 3.2.
"FINANCIAL STATEMENTS": as defined in Section 4.13.
"FOREIGN LENDER": any Lender that is organized under the laws of a
jurisdiction other than the United States of America, any State thereof or the
District of Columbia.
"GAAP": generally accepted accounting principles set forth in the opinions
and pronouncements of the Accounting Principles Board and the American Institute
of Certified Public Accountants and statements and pronouncements of the
Financial Accounting Standards Board or such other principles as may be approved
by a significant segment of the accounting profession, which are applicable to
the circumstances as of the date of determination, consistently applied.
"GOVERNMENTAL AUTHORITY": any foreign, federal, state, municipal or other
government, or any department, commission, board, bureau, agency, public
authority or instrumentality thereof, or any court or arbitrator.
"GRANTING LENDER": as defined in Section 11.7(h).
"HAZARDOUS MATERIALS": all explosive or radioactive substances or wastes
and all hazardous or toxic substances, wastes or other pollutants, including
petroleum or petroleum distillates, asbestos or asbestos containing materials,
polychlorinated biphenyls, radon gas, infectious or medical wastes and all other
substances or wastes of any nature regulated pursuant to any Environmental Law.
"HIGHEST LAWFUL RATE": as to any Lender, the maximum rate of interest, if
any, which at any time or from time to time may be contracted for, taken,
charged or received on the Loans or the Notes or which may be owing to such
Lender pursuant to this Agreement under the laws applicable to such Lender and
this Agreement.
"INDEBTEDNESS": as to any Person at a particular time, all items of such
Person which constitute, without duplication, (a) indebtedness for borrowed
money or the deferred purchase price of Property (other than trade payables and
accrued expenses incurred in the ordinary course of business), (b) indebtedness
evidenced by notes, bonds, debentures or similar instruments, (c) indebtedness
with respect to any conditional sale or other title retention agreement, (d)
indebtedness arising under acceptance facilities and the amount available to be
drawn under all letters of credit (excluding for purposes of Sections 8.1 and
8.9 letters of credit obtained in the ordinary course of business by the
Borrower or any Subsidiary) issued for the account of such Person and, without
duplication, all drafts drawn thereunder to the extent such Person shall not
have reimbursed the
9
issuer in respect of the issuer's payment of such drafts, (e) that portion of
any obligation of such Person, as lessee, which in accordance with GAAP is
required to be capitalized on a balance sheet of such Person, (f) all
indebtedness described in (a) - (e) above secured by any Lien on any Property
owned by such Person even though such Person shall not have assumed or otherwise
become liable for the payment thereof (other than carriers', warehousemen's,
mechanics', repairmen's or other like non-consensual Liens arising in the
ordinary course of business), and (g) Contingent Obligations in respect of any
indebtedness described in items (a) - (f) above, PROVIDED that, for purposes of
this definition, Indebtedness shall not include Intercompany Debt and
obligations in respect of interest rate caps, collars, exchanges, swaps or
other, similar agreements.
"INDEMNIFIED LIABILITIES": as defined in Section 11.5.
"INDEMNIFIED PERSON": as defined in Section 11.10.
"INTERCOMPANY DEBT": (i) Indebtedness of the Borrower to one or more of
the Subsidiaries of the Borrower and (ii) demand Indebtedness of one or more of
the Subsidiaries of the Borrower to the Borrower or any one or more of the other
Subsidiaries of the Borrower.
"INTERCOMPANY DISPOSITION": a Disposition by the Borrower or any of the
Subsidiaries of the Borrower to the Borrower or to any of the other Subsidiaries
of the Borrower.
"INTEREST PAYMENT DATE": (i) as to any ABR Advance, the last day of each
March, June, September and December, commencing on the first of such days to
occur after such ABR Advance is made or any Eurodollar Advance is converted to
an ABR Advance, (ii) as to any Eurodollar Advance in respect of which the
Borrower has selected a Eurodollar Interest Period of one, two or three months,
the last day of such Eurodollar Interest Period, (iii) as to any Competitive Bid
Loan in respect of which the Borrower has selected a Competitive Interest Period
of 90 days or less the last day of such Competitive Interest Period and (iv) as
to any Eurodollar Advance or Competitive Bid Loan in respect of which the
Borrower has selected an Interest Period greater than three months or 90 days,
as the case may be, the last day of the third month or the 90th day, as the case
may be, of such Interest Period and the last day of such Interest Period.
"INTEREST PERIOD": a Eurodollar Interest Period or a Competitive Interest
Period, as the case may be.
"INTERNAL REVENUE CODE": the Internal Revenue Code of 1986, as amended
from time to time, or any successor thereto, and the rules and regulations
issued thereunder, as from time to time in effect.
"INVITATION TO BID": an invitation by the Administrative Agent to the
Lenders to make Competitive Bids in the form of Exhibit G.
"LENDER": as defined in the preamble.
"LIEN": any mortgage, pledge, hypothecation, assignment, lien, deposit
arrangement, charge, encumbrance or other security arrangement or security
interest of any kind, or the interest of
10
a vendor or lessor under any conditional sale agreement, capital lease or other
title retention agreement.
"LOAN": a Revolving Credit Loan or a Competitive Bid Loan, as the case may
be.
"LOAN DOCUMENTS": this Agreement and, upon the execution and delivery
thereof, the Notes, if any.
"LOANS": the Revolving Credit Loans and the Competitive Bid Loans.
"MARGIN STOCK": any "margin stock", as said term is defined in Regulation
U of the Board of Governors of the Federal Reserve System, as the same may be
amended or supplemented from time to time.
"MATERIAL ADVERSE": with respect to any change or effect, a material
adverse change in, or effect on, as the case may be, (i) the financial
condition, operations, business, or Property of the Borrower and the
Subsidiaries taken as a whole, (ii) the ability of the Borrower to perform its
obligations under the Loan Documents, or (iii) the ability of the Administrative
Agent or any Lender to enforce the Loan Documents.
"MOODY'S": Xxxxx'x Investors Service, Inc.
"MULTIEMPLOYER PLAN": a Pension Plan which is a multiemployer plan as
defined in Section 4001(a)(3) of ERISA.
"NET WORTH": at any date of determination, the sum of all amounts which
would be included under shareholders' equity on a Consolidated balance sheet of
the Borrower and the Subsidiaries determined in accordance with GAAP as at such
date.
"NOTE": with respect to each Lender that has requested one, a promissory
note evidencing such Lender's Loans payable to the order of such Lender (or, if
required by such Lender, to such Lender and its registered assigns),
substantially in the form of Exhibit B.
"OTHER CREDIT AGREEMENT": the Five Year Credit Agreement, dated as of June
11, 2004, by and among the Borrower, the lenders party thereto, Bank of America,
N.A., Credit Suisse First Boston, and Wachovia Securities, Inc., as
co-syndication agents, ABN AMRO Bank N.V., as documentation agent, and BNY, as
administrative agent, as the same may be amended, supplemented, replaced or
otherwise modified from time to time.
"PARTICIPANT": as defined in Section 11.7(e).
"PBGC": the Pension Benefit Guaranty Corporation established pursuant to
Subtitle A of Title IV of ERISA, or any Governmental Authority succeeding to the
functions thereof.
"PENSION PLAN": at any time, any Employee Benefit Plan (including a
Multiemployer Plan) subject to Section 302 of ERISA or Section 412 of the
Internal Revenue Code, the funding requirements of which are, or at any time
within the six years immediately preceding the time in
11
question, were in whole or in part, the responsibility of the Borrower, any
Subsidiary or an ERISA Affiliate.
"PERSON": any individual, firm, partnership, limited liability company,
joint venture, corporation, association, business trust, joint stock company,
unincorporated association, trust, Governmental Authority or any other entity,
whether acting in an individual, fiduciary, or other capacity, and for the
purpose of the definition of "ERISA Affiliate", a trade or business.
"PRICING LEVEL": Pricing Level I, Pricing Level II, Pricing Level III,
Pricing Level IV, Pricing Level V, Pricing Level VI or Pricing Level VII, as the
case may be.
"PRICING LEVEL I": any time when the senior unsecured long term debt
rating of the Borrower by (x) S&P is AA - or higher or (y) Xxxxx'x is Aa3 or
higher.
"PRICING LEVEL II": any time when (i) the senior unsecured long term debt
rating of the Borrower by (x) S&P is A+ or higher or (y) Xxxxx'x is A1 or higher
and (ii) Pricing Level I does not apply.
"PRICING LEVEL III": any time when (i) the senior unsecured long term debt
rating of the Borrower by (x) S&P is A or higher or (y) Xxxxx'x is A2 or higher
and (ii) neither Pricing Level I nor II applies.
"PRICING LEVEL IV": any time when (i) the senior unsecured long term debt
rating of the Borrower by (x) S&P is A - or higher or (y) Xxxxx'x is A3 or
higher and (ii) none of Pricing Level I, II or III applies.
"PRICING LEVEL V": any time when (i) the senior unsecured long term debt
rating of the Borrower by (x) S&P is BBB+ or higher or (y) Xxxxx'x is Baa1 or
higher and (ii) none of Pricing Level I, II, III or IV applies.
"PRICING LEVEL VI": any time when (i) the senior unsecured long term debt
rating of the Borrower by (x) S&P is BBB or higher or (y) Xxxxx'x is Baa2 or
higher and (ii) none of Pricing Level I, II, III, IV or V applies.
"PRICING LEVEL VII": any time when none of Pricing Level I, II, III, IV, V
or VI applies.
Notwithstanding each definition of Pricing Level set forth above, if at
any time the senior unsecured long term debt ratings of the Borrower by S&P and
Moody's differ by more than one equivalent rating level, then the applicable
Pricing Level shall be determined based upon the lower such rating adjusted
upwards to the next higher rating level.
"PRINCIPAL OFFICE": from time to time, the principal office of BNY,
located on the date hereof in
New York,
New York.
"PROHIBITED TRANSACTION": a transaction that is prohibited under Section
4975 of the Internal Revenue Code or Section 406 of ERISA and not exempt under
Section 4975 of the Internal Revenue Code or Section 408 of ERISA.
12
"PROPERTY": in respect of any Person, all types of real, personal or mixed
property and all types of tangible or intangible property owned or leased by
such Person.
"REGULATORY CHANGE": (a) the introduction or phasing in of any law, rule
or regulation after the date hereof, (b) the issuance or promulgation after the
date hereof of any directive, guideline or request from any central bank or
United States or foreign Governmental Authority (whether or not having the force
of law), or (c) any change after the date hereof in the interpretation of any
existing law, rule, regulation, directive, guideline or request by any central
bank or United States or foreign Governmental Authority charged with the
administration thereof, in each case applicable to the transactions contemplated
by this Agreement.
"RELATED PARTIES": with respect to any specified Person, such Person's
Affiliates and the respective directors, officers, employees, agents and
advisors of such Person and such Person's Affiliates.
"REPLACED LENDER": as defined in Section 3.12.
"REPLACEMENT LENDER": as defined in Section 3.12.
"REPORTABLE EVENT": with respect to any Pension Plan, (a) any event set
forth in Sections 4043(c) (other than a Reportable Event as to which the 30 day
notice requirement is waived by the PBGC under applicable regulations), 4062(e)
or 4063(a) of ERISA, or the regulations thereunder, (b) an event requiring the
Borrower, any Subsidiary or any ERISA Affiliate to provide security to a Pension
Plan under Section 401(a)(29) of the Internal Revenue Code, or (c) the failure
to make any payment required by Section 412(m) of the Internal Revenue Code.
"REQUIRED LENDERS": (a) at any time prior to the Commitment Termination
Date or such earlier date as all of the Commitments shall have terminated or
been terminated in accordance herewith, Lenders having Commitment Amounts equal
to or more than 51% of the Aggregate Commitment Amount, and (b) at all other
times, Lenders having Credit Exposure equal to or more than 51% of the Aggregate
Credit Exposure.
"RESTRICTED PAYMENT": with respect to any Person, any of the following,
whether direct or indirect: (a) the declaration or payment by such Person of any
dividend or distribution on any class of Stock of such Person, other than a
dividend payable solely in shares of that class of Stock to the holders of such
class, (b) the declaration or payment by such Person of any distribution on any
other type or class of equity interest or equity investment in such Person, and
(c) any redemption, retirement, purchase or acquisition of, or sinking fund or
other similar payment in respect of, any class of Stock of, or other type or
class of equity interest or equity investment in, such Person.
"RESTRICTIVE AGREEMENT": as defined in Section 8.7.
"REVOLVING CREDIT LOANS": as defined in Section 2.1(a).
"S&P": Standard & Poor's, a division of The XxXxxx-Xxxx Companies, Inc.
13
"SOLVENT": with respect to any Person on a particular date, the condition
that on such date, (i) the fair value of the Property of such Person is greater
than the total amount of liabilities, including, without limitation, contingent
liabilities, of such Person, (ii) the present fair salable value of the assets
of such Person is not less than the amount that will be required to pay the
probable liability of such Person on its debts as they become absolute and
matured, (iii) such Person does not intend to, and does not believe that it
will, incur debts or liabilities beyond such Person's ability to pay as such
debts and liabilities mature, and (iv) such Person is not engaged in business or
a transaction, and is not about to engage in business or a transaction, for
which such Person's Property would constitute an unreasonably small amount of
capital. For purposes of this definition, the amount of any contingent liability
at any time shall be computed as the amount that, in light of all the facts and
circumstances existing at such time, represents the amount that can reasonably
be expected to become an actual or matured liability after taking into account
probable payments by co-obligors.
"SPECIAL COUNSEL": such counsel as the Administrative Agent may engage
from time to time.
"SUBSIDIARY": at any time and from time to time, any corporation,
association, partnership, limited liability company, joint venture or other
business entity of which the Borrower and/or any Subsidiary of the Borrower,
directly or indirectly at such time, either (a) in respect of a corporation,
owns or controls more than 50% of the outstanding stock having ordinary voting
power to elect a majority of the board of directors or similar managing body,
irrespective of whether a class or classes shall or might have voting power by
reason of the happening of any contingency, or (b) in respect of an association,
partnership, limited liability company, joint venture or other business entity,
is entitled to share in more than 50% of the profits and losses, however
determined.
"TANGIBLE NET WORTH": at any date of determination, Net Worth less all
assets of the Borrower and its Subsidiaries included in such Net Worth,
determined on a Consolidated basis at such date, that would be classified as
intangible assets in accordance with GAAP.
"TERMINATION EVENT": with respect to any Pension Plan, (a) a Reportable
Event, (b) the termination of a Pension Plan under Section 4041(c) of ERISA, or
the filing of a notice of intent to terminate a Pension Plan under Section
4041(c) of ERISA, or the treatment of a Pension Plan amendment as a termination
under Section 4041(e) of ERISA (except an amendment made after such Pension Plan
satisfies the requirement for a standard termination under Section 4041(b) of
ERISA), (c) the institution of proceedings by the PBGC to terminate a Pension
Plan under Section 4042 of ERISA, or (d) the appointment of a trustee to
administer any Pension Plan under Section 4042 of ERISA.
"TOTAL CAPITALIZATION": at any date, the sum of the Borrower's
Consolidated Indebtedness and shareholders' equity on such date, determined in
accordance with GAAP.
"TYPE": with respect to any Revolving Credit Loan, the characteristic of
such Loan as an ABR Advance or a Eurodollar Advance, each of which constitutes a
Type of Revolving Credit Loan.
14
"UNQUALIFIED AMOUNT": as defined in Section 3.4(c).
"UPSTREAM DIVIDENDS": as defined in Section 8.7.
"UTILIZATION FEE": as defined in Section 3.11(b).
1.2 PRINCIPLES OF CONSTRUCTION
(a) All capitalized terms defined in this Agreement shall have the
meanings given such capitalized terms herein when used in the other Loan
Documents or in any certificate, opinion or other document made or delivered
pursuant hereto or thereto, unless otherwise expressly provided therein.
(b) Unless otherwise expressly provided herein, the word "FISCAL"
when used herein shall refer to the relevant fiscal period of the Borrower. As
used in the Loan Documents and in any certificate, opinion or other document
made or delivered pursuant thereto, accounting terms not defined in Section 1.1,
and accounting terms partly defined in Section 1.1, to the extent not defined,
shall have the respective meanings given to them under GAAP.
(c) The words "HEREOF", "HEREIN", "HERETO" and "HEREUNDER" and
similar words when used in each Loan Document shall refer to such Loan Document
as a whole and not to any particular provision of such Loan Document, and
Section, schedule and exhibit references contained therein shall refer to
Sections thereof or schedules or exhibits thereto unless otherwise expressly
provided therein.
(d) All references herein to a time of day shall mean the then
applicable time in
New York,
New York, unless otherwise expressly provided
herein.
(e) Section headings have been inserted in the Loan Documents for
convenience only and shall not be construed to be a part thereof. Unless the
context otherwise requires, words in the singular number include the plural, and
words in the plural include the singular.
(f) Whenever in any Loan Document or in any certificate or other
document made or delivered pursuant thereto, the terms thereof require that a
Person sign or execute the same or refer to the same as having been so signed or
executed, such terms shall mean that the same shall be, or was, duly signed or
executed by (i) in respect of any Person that is a corporation, any duly
authorized officer thereof, and (ii) in respect of any other Person (other than
an individual), any analogous counterpart thereof.
(g) The words "INCLUDE" and "INCLUDING", when used in each Loan
Document, shall mean that the same shall be included "without limitation",
unless otherwise specifically provided.
15
2. AMOUNT AND TERMS OF LOANS
2.1 Revolving Credit Loans
(a) Subject to the terms and conditions hereof, each Lender
severally (and not jointly) agrees to make loans under this Agreement (each a
"REVOLVING CREDIT LOAN" and, collectively with each other Revolving Credit Loan
of such Lender and/or with each Revolving Credit Loan of each other Lender, the
"REVOLVING CREDIT LOANS") to the Borrower from time to time during the
Commitment Period, during which period the Borrower may borrow, prepay and
reborrow in accordance with the provisions hereof. Immediately after making each
Revolving Credit Loan and after giving effect to all Competitive Bid Loans
repaid on the same date, the Aggregate Credit Exposure will not exceed the
Aggregate Commitment Amount. With respect to each Lender, at the time of the
making of any Revolving Credit Loan, the sum of (I) the principal amount of such
Lender's Revolving Credit Loan constituting a part of the Revolving Credit Loans
to be made and (II) the aggregate principal balance of all other Revolving
Credit Loans (exclusive of Revolving Credit Loans which are repaid with the
proceeds of, and simultaneously with the incidence of, the Revolving Credit
Loans to be made) then outstanding from such Lender will not exceed the
Commitment of such Lender at such time. At the option of the Borrower, indicated
in a Borrowing Request, Revolving Credit Loans may be made as ABR Advances or
Eurodollar Advances.
(b) The aggregate outstanding principal balance of all Revolving
Credit Loans shall be due and payable on the Commitment Termination Date or on
such earlier date upon which all of the Commitments shall have been voluntarily
terminated by the Borrower in accordance with Section 2.6.
2.2 [INTENTIONALLY OMITTED]
2.3 NOTICE OF BORROWING REVOLVING CREDIT LOANS
The Borrower agrees to notify the Administrative Agent, which
notification shall be irrevocable, no later than (a) 10:00 A.M. on the proposed
Borrowing Date in the case of Revolving Credit Loans to consist of ABR Advances
and (b) 10:00 A.M. at least two Eurodollar Business Days prior to the proposed
Borrowing Date in the case of Revolving Credit Loans to consist of Eurodollar
Advances. Each such notice shall specify (i) the aggregate amount requested to
be borrowed under the Commitments, (ii) the proposed Borrowing Date, (iii)
whether a borrowing of Revolving Credit Loans is to be of ABR Advances or
Eurodollar Advances, and the amount of each thereof and (iv) the Interest Period
for such Eurodollar Advances. Each such notice shall be promptly confirmed by
delivery to the Administrative Agent of a Borrowing Request. Each Eurodollar
Advance to be made on a Borrowing Date, when aggregated with all amounts to be
Converted to Eurodollar Advances on such date and having the same Interest
Period as such Eurodollar Advance, shall equal no less than $10,000,000, or an
integral multiple of $1,000,000 in excess thereof. Each ABR Advance made on each
Borrowing Date shall equal no less than $5,000,000 or an integral multiple of
$500,000 in excess thereof. The Administrative Agent shall promptly notify each
Lender (by telephone or otherwise, such notification to be confirmed by fax or
other writing) of each such Borrowing
16
Request. Subject to its receipt of each such notice from the Administrative
Agent and subject to the terms and conditions hereof, each Lender shall make
immediately available funds available to the Administrative Agent at the address
therefor set forth in Section 11.2 not later than 1:00 P.M. on each Borrowing
Date in an amount equal to such Lender's Commitment Percentage of the Revolving
Credit Loans requested by the Borrower on such Borrowing Date.
2.4 COMPETITIVE BID LOANS AND PROCEDURE
(a) Subject to the terms and conditions hereof, the Borrower may
request competitive bid loans under this Agreement (each a "COMPETITIVE BID
LOAN") during the Commitment Period. In order to request Competitive Bids, the
Borrower shall deliver by hand or fax to the Administrative Agent a duly
completed Competitive Bid Request not later than 11:00 A.M., one Domestic
Business Day before the proposed Borrowing Date therefor. A Competitive Bid
Request that does not conform substantially to the format of Exhibit F may be
rejected by the Administrative Agent in the Administrative Agent's reasonable
discretion, and the Administrative Agent shall promptly notify the Borrower of
such rejection by fax and telephone. Each Competitive Bid Request shall specify
(x) the proposed Borrowing Date for the Competitive Bid Loans then being
requested (which shall be a Domestic Business Day) and the aggregate principal
amount thereof and (y) the Competitive Interest Period or Interest Periods
(which shall not exceed ten different Interest Periods in a single Competitive
Bid Request), with respect thereto (which may not end after the Domestic
Business Day immediately preceding the Commitment Termination Date). Promptly
after its receipt of each Competitive Bid Request that is not rejected as
aforesaid, the Administrative Agent shall invite by fax (in the form of Exhibit
G) the Lenders to bid, on the terms and conditions of this Agreement, to make
Competitive Bid Loans pursuant to such Competitive Bid Request.
(b) Each Lender, in its sole and absolute discretion, may make one
or more Competitive Bids to the Borrower responsive to a Competitive Bid
Request. Each Competitive Bid by a Lender must be received by the Administrative
Agent not later than 10:00 A.M. on the proposed Borrowing Date for the relevant
Competitive Bid Loan. Multiple bids will be accepted by the Administrative
Agent. Bids to make Competitive Bid Loans that do not conform substantially to
the format of Exhibit H may be rejected by the Administrative Agent after
conferring with, and upon the instruction of, the Borrower, and the
Administrative Agent shall notify the Lender making such nonconforming bid of
such rejection as soon as practicable. Each Competitive Bid shall be irrevocable
and shall specify (x) the principal amount (which (1) shall be in a minimum
principal amount of $5,000,000 or an integral multiple of $1,000,000 in excess
thereof, and (2) may equal the entire principal amount requested by the
Borrower) of the Competitive Bid Loan or Competitive Bid Loans that the Lender
is willing to make to the Borrower, (y) the Competitive Bid Rate or Rates at
which the Lender is prepared to make such Competitive Bid Loan or Competitive
Bid Loans, and (z) the Competitive Interest Period with respect to each such
Competitive Bid Loan and the last day thereof. If any Lender shall elect not to
make a Competitive Bid, such Lender shall so notify the Administrative Agent by
fax not later than 10:00 A.M. on the proposed Borrowing Date therefor, PROVIDED
that the failure by any Lender to give any such notice shall not obligate such
Lender to make any Competitive Bid Loan in connection with the relevant
Competitive Bid Request.
17
(c) With respect to each Competitive Bid Request, the
Administrative Agent shall (i) notify the Borrower by fax by 11:00 A.M. on the
proposed Borrowing Date with respect thereto of each Competitive Bid made, the
Competitive Bid Rate applicable thereto and the identity of the Lender that made
such Competitive Bid, and (ii) send a list of all Competitive Bids to the
Borrower for its records as soon as practicable after completion of the bidding
process. Each notice and list sent by the Administrative Agent pursuant to this
Section 2.4(c) shall list the Competitive Bids in ascending yield order.
(d) The Borrower may in its sole and absolute discretion, subject
only to the provisions of this Section 2.4(d), accept or reject any Competitive
Bid made in accordance with the procedures set forth in this Section 2.4, and
the Borrower shall notify the Administrative Agent by telephone, confirmed by
fax in the form of a Competitive Bid Accept/Reject Letter, whether and to what
extent it has decided to accept or reject any or all of such Competitive Bids
not later than 12:00 Noon on the proposed Borrowing Date therefor, PROVIDED that
the failure by the Borrower to give such notice shall be deemed to be a
rejection of all such Competitive Bids. In connection with each acceptance of
one or more Competitive Bids by the Borrower:
(1) the Borrower shall not accept a Competitive Bid made at
a particular Competitive Bid Rate if the Borrower has decided to reject a
Competitive Bid made at a lower Competitive Bid Rate unless the acceptance of
such lower Competitive Bid would subject the Borrower to any requirement to
withhold any taxes or deduct any amount from any amounts payable under the Loan
Documents, in which case the Borrower may reject such lower Competitive Bid,
(2) the aggregate amount of the Competitive Bids accepted by
the Borrower shall not exceed the principal amount specified in the Competitive
Bid Request therefor,
(3) if the Borrower shall desire to accept a Competitive Bid
made at a particular Competitive Bid Rate, it must accept all other Competitive
Bids at such Competitive Bid Rate, except for any such Competitive Bid the
acceptance of which would subject the Borrower to any requirement to withhold
any taxes or deduct any amount from any amounts payable under the Loan
Documents, PROVIDED that if the acceptance of all such other Competitive Bids
would cause the aggregate amount of all such accepted Competitive Bids to exceed
the amount requested, then such acceptance shall be made pro rata in accordance
with the amount of each such Competitive Bid at such Competitive Bid Rate,
(4) except pursuant to clause (3) above, no Competitive Bid
shall be accepted unless the Competitive Bid Loan with respect thereto shall be
in a minimum principal amount of $5,000,000 or an integral multiple of
$1,000,000 in excess thereof, and
(5) no Competitive Bid shall be accepted and no Competitive
Bid Loan shall be made, if immediately after giving effect thereto, the
Aggregate Credit Exposure would exceed the Aggregate Commitment Amount.
18
(e) The Administrative Agent shall promptly fax to each bidding
Lender (with a copy to the Borrower) a Competitive Bid Accept/Reject Letter
advising such Lender whether its Competitive Bid has been accepted (and if
accepted, in what amount and at what Competitive Bid Rate), and each successful
bidder so notified will thereupon become bound, subject to the other applicable
conditions hereof, to make the Competitive Bid Loan in respect of which each of
its Competitive Bids has been accepted by making immediately available funds
available to the Administrative Agent at its address set forth in Section 11.2
not later than 1:00 P.M. on the Borrowing Date for such Competitive Bid Loan in
the amount thereof.
(f) Anything herein to the contrary notwithstanding, if the
Administrative Agent shall elect to submit a Competitive Bid in its capacity as
a Lender, it shall submit such bid directly to the Borrower not later than 9:30
A.M. on the relevant proposed Borrowing Date.
(g) All notices required by this Section shall be given in
accordance with Section 11.2.
2.5 USE OF PROCEEDS
The Borrower agrees that the proceeds of the Loans shall be used
solely for its general corporate purposes not inconsistent with the provisions
hereof, including as a backup for commercial paper issued by the Borrower.
Notwithstanding anything to the contrary contained in any Loan Document, the
Borrower further agrees that no part of the proceeds of any Loan will be used,
directly or indirectly, and whether immediately, incidentally or ultimately (i)
for a purpose which violates any law, rule or regulation of any Governmental
Authority, including the provisions of Regulations U or X of the Board of
Governors of the Federal Reserve System, as amended or any provision of this
Agreement, including, without limitation, the provisions of Section 4.9 and (ii)
to make a loan to any director or executive officer of the Borrower or any
Subsidiary.
2.6 TERMINATION OR REDUCTION OF COMMITMENTS
(a) VOLUNTARY TERMINATION OR REDUCTIONS. At the Borrower's option
and upon at least three Domestic Business Days' prior irrevocable notice to the
Administrative Agent, the Borrower may (i) terminate the Commitments at any
time, or (ii) permanently reduce the Aggregate Commitment Amount in part at any
time and from time to time, PROVIDED that (1) each such partial reduction shall
be in an amount equal to at least $10,000,000 or an integral multiple of
$1,000,000 in excess thereof, and (2) immediately after giving effect to each
such reduction, the Aggregate Commitment Amount shall equal or exceed the
Aggregate Credit Exposure, and PROVIDED FURTHER that a notice of termination of
the Commitments, delivered by the Borrower may state that such notice is
conditioned upon the effectiveness of other credit facilities (such notice to
specify the proposed effective date), in which case such notice may be revoked
by the Borrower (by notice to the Administrative Agent on or prior to such
specified effective date) if such condition is not satisfied and the Borrower
shall indemnify the Lenders in accordance with Section 3.5.
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(b) IN GENERAL. Each reduction of the Aggregate Commitment Amount
shall be made by reducing each Lender's Commitment Amount by a sum equal to such
Lender's Commitment Percentage of the amount of such reduction.
2.7 PREPAYMENTS OF LOANS
(a) VOLUNTARY PREPAYMENTS. The Borrower may prepay Revolving
Credit Loans and Competitive Bid Loans, in whole or in part, without premium or
penalty, but subject to Section 3.5 at any time and from time to time, by
notifying the Administrative Agent, which notification shall be irrevocable, at
least two Eurodollar Business Days, in the case of a prepayment of Eurodollar
Advances, two Domestic Business Days, in the case of Competitive Bid Loans, or
one Domestic Business Day, in the case of a prepayment of ABR Advances, prior to
the proposed prepayment date specifying (i) the Loans to be prepaid, (ii) the
amount to be prepaid, and (iii) the date of prepayment. Upon receipt of each
such notice, the Administrative Agent shall promptly notify each Lender thereof.
Each such notice given by the Borrower pursuant to this Section shall be
irrevocable, PROVIDED that, if a notice of prepayment is given in connection
with a conditional notice of termination of the Commitments as contemplated by
Section 2.6, then such notice of prepayment may be revoked if such notice of
termination is revoked in accordance with Section 2.6, and the Borrower shall
indemnify the Lenders in accordance with Section 3.5. Each partial prepayment
under this Section shall be in a minimum amount of $1,000,000 ($500,000 in the
case of ABR Advances) or an integral multiple of $1,000,000 ($100,000 in the
case of ABR Advances) in excess thereof.
(b) IN GENERAL. Simultaneously with each prepayment hereunder, the
Borrower shall prepay all accrued interest on the amount prepaid through the
date of prepayment and indemnify the Lenders in accordance with Section 3.5.
2.8 [INTENTIONALLY OMITTED]
2.9 [INTENTIONALLY OMITTED]
2.10 [INTENTIONALLY OMITTED]
2.11 NOTES
Any Lender may request that the Loans made by it be evidenced by a
Note. In such event, the Borrower shall prepare, execute and deliver to such
Lender a Note payable to the order of such Person or, if requested by such
Person, such Person and its registered assigns. Thereafter, all Loans evidenced
by such Note and interest thereon shall at all times (including after assignment
pursuant to Section 11.7) be represented by a Note in like form payable to the
order of the payee named therein and its registered assigns.
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3. PROCEEDS, PAYMENTS, CONVERSIONS, INTEREST, YIELD PROTECTION AND FEES
3.1 DISBURSEMENT OF THE PROCEEDS OF THE LOANS
The Administrative Agent shall disburse the proceeds of the Loans at
its office specified in Section 11.2 by crediting to the Borrower's general
deposit account with the Administrative Agent the funds received from each
Lender. Unless the Administrative Agent shall have received prior notice from a
Lender (by telephone or otherwise, such notice to be confirmed by fax or other
writing) that such Lender will not make available to the Administrative Agent
such Lender's Commitment Percentage of the Revolving Credit Loans, or the amount
of any Competitive Bid Loan, to be made by it on a Borrowing Date, the
Administrative Agent may assume that such Lender has made such amount available
to the Administrative Agent on such Borrowing Date in accordance with this
Section, PROVIDED that, in the case of a Revolving Credit Loan, such Lender
received notice thereof from the Administrative Agent in accordance with the
terms hereof, and the Administrative Agent may, in reliance upon such
assumption, make available to the Borrower on such Borrowing Date a
corresponding amount. If and to the extent such Lender shall not have so made
such amount available to the Administrative Agent, such Lender and the Borrower
severally agree to pay to the Administrative Agent, forthwith on demand, such
corresponding amount (to the extent not previously paid by the other), together
with interest thereon for each day from the date such amount is made available
to the Borrower until the date such amount is paid to the Administrative Agent,
at a rate per annum equal to, in the case of the Borrower, the applicable
interest rate set forth in Section 3.4(a) and, in the case of such Lender, the
Federal Funds Effective Rate from the date such payment is due until the third
day after such date and, thereafter, at the Federal Funds Effective Rate PLUS
2%. Any such payment by the Borrower shall be without prejudice to its rights
against such Lender. If such Lender shall pay to the Administrative Agent such
corresponding amount, such amount so paid shall constitute such Lender's Loan as
part of such Loans for purposes of this Agreement, which Loan shall be deemed to
have been made by such Lender on the Borrowing Date applicable to such Loans.
3.2 PAYMENTS
(a) Each borrowing of Revolving Credit Loans by the Borrower from
the Lenders, any Conversion of Revolving Credit Loans from one Type to another,
and any reduction in the Commitments shall be made pro rata according to the
Commitment Percentage of each Lender. Each payment, including each prepayment,
of principal and interest on the Loans and of the Facility Fee and the
Utilization Fee (collectively, together with all of the other fees to be paid to
the Administrative Agent and the Lenders in connection with the Loan Documents,
the "FEES"), and of all of the other amounts to be paid to the Administrative
Agent and the Lenders in connection with the Loan Documents shall be made by the
Borrower to the Administrative Agent at its office specified in Section 11.2
without setoff, deduction or counterclaim in funds immediately available in New
York by 3:00 P.M. on the due date for such payment. The failure of the Borrower
to make any such payment by such time shall not constitute a default hereunder,
PROVIDED that such payment is made on such due date, but any such payment made
after 3:00 P.M. on such due date shall be deemed to have been made on the next
Domestic Business Day or Eurodollar Business Day, as the case may be, for the
purpose of calculating interest on
21
amounts outstanding on the Loans. If the Borrower has not made any such payment
prior to 3:00 P.M., the Borrower hereby authorizes the Administrative Agent to
deduct the amount of any such payment from such account(s) as the Borrower may
from time to time designate in writing to the Administrative Agent, upon which
the Administrative Agent shall apply the amount of such deduction to such
payment. Promptly upon receipt thereof by the Administrative Agent, each payment
of principal and interest on the: (i) Revolving Credit Loans shall be remitted
by the Administrative Agent in like funds as received to each Lender (a) first,
pro rata according to the amount of interest which is then due and payable to
the Lenders, and (b) second, pro rata according to the amount of principal which
is then due and payable to the Lenders and (ii) Competitive Bid Loans shall be
remitted by the Administrative Agent in like funds as received to each
applicable Lender. Each payment of the Fees payable to the Lenders shall be
promptly transmitted by the Administrative Agent in like funds as received to
each Lender pro rata according to such Lender's Commitment Amount or, if the
Commitments shall have terminated or been terminated, according to the
outstanding principal amount of such Lender's Revolving Credit Loans.
(b) If any payment hereunder or under the Loans shall be due and
payable on a day which is not a Domestic Business Day or Eurodollar Business
Day, as the case may be, the due date thereof (except as otherwise provided in
the definition of Eurodollar Interest Period or Competitive Interest Period)
shall be extended to the next Domestic Business Day or Eurodollar Business Day,
as the case may be, and (except with respect to payments in respect of the
Facility Fee and the Utilization Fee) interest shall be payable at the
applicable rate specified herein during such extension.
3.3 CONVERSIONS; OTHER MATTERS
(a) The Borrower may elect at any time and from time to time to
Convert one or more Eurodollar Advances to an ABR Advance by giving the
Administrative Agent at least one Domestic Business Day's prior irrevocable
notice of such election, specifying the amount to be so Converted. In addition,
the Borrower may elect at any time and from time to time to Convert an ABR
Advance to any one or more new Eurodollar Advances or to Convert any one or more
existing Eurodollar Advances to any one or more new Eurodollar Advances by
giving the Administrative Agent no later than 10:00 a.m. at least two Eurodollar
Business Days' prior irrevocable notice, in the case of a Conversion to
Eurodollar Advances, of such election, specifying the amount to be so Converted
and the initial Interest Period relating thereto, PROVIDED that any Conversion
of an ABR Advance to Eurodollar Advances shall only be made on a Eurodollar
Business Day. The Administrative Agent shall promptly provide the Lenders with
notice of each such election. Each Conversion of Loans from one Type to another
shall be made pro rata according to the outstanding principal amount of the
Loans of each Lender. ABR Advances and Eurodollar Advances may be Converted
pursuant to this Section in whole or in part, PROVIDED that the amount to be
Converted to each Eurodollar Advance, when aggregated with any Eurodollar
Advance to be made on such date in accordance with Section 2.1 and having the
same Interest Period as such first Eurodollar Advance, shall equal no less than
$10,000,000 or an integral multiple of $1,000,000 in excess thereof.
22
(b) Notwithstanding anything in this Agreement to the contrary,
upon the occurrence and during the continuance of a Default or an Event of
Default, the Borrower shall have no right to elect to Convert any existing ABR
Advance to a new Eurodollar Advance or to Convert any existing Eurodollar
Advance to a new Eurodollar Advance. In such event, such ABR Advance shall be
automatically continued as an ABR Advance or such Eurodollar Advance shall be
automatically Converted to an ABR Advance on the last day of the Interest Period
applicable to such Eurodollar Advance. The foregoing shall not affect any other
rights or remedies that the Administrative Agent or any Lender may have under
this Agreement or any other Loan Document.
(c) Each Conversion shall be effected by each Lender by applying
the proceeds of each new ABR Advance or Eurodollar Advance, as the case may be,
to the existing Advance (or portion thereof) being Converted (it being
understood that such Conversion shall not constitute a borrowing for purposes of
Sections 4, 5 or 6).
(d) Notwithstanding any other provision of any Loan Document:
(i) if the Borrower shall have failed to elect a Eurodollar
Advance under Section 2.3 or this Section 3.3, as the case may be, in connection
with any borrowing of new Revolving Credit Loans or expiration of an Interest
Period with respect to any existing Eurodollar Advance, the amount of the
Revolving Credit Loans subject to such borrowing or such existing Eurodollar
Advance shall thereafter be an ABR Advance until such time, if any, as the
Borrower shall elect a new Eurodollar Advance pursuant to this Section 3.3,
(ii) the Borrower shall not be permitted to select a
Eurodollar Advance the Interest Period in respect of which ends later than the
Commitment Termination Date or such earlier date upon which all of the
Commitments shall have been voluntarily terminated by the Borrower in accordance
with Section 2.6, and
(iii) the Borrower shall not be permitted to have more than 15
Eurodollar Advances and Competitive Bid Loans, in the aggregate, outstanding at
any one time, it being understood and agreed that each borrowing of Eurodollar
Advances or Competitive Bid Loans pursuant to a single Borrowing Request or
Competitive Bid Request, as the case may be, shall constitute the making of one
Eurodollar Advance or Competitive Bid Loan for the purpose of calculating such
limitation.
3.4 INTEREST RATES AND PAYMENT DATES
(a) PRIOR TO MATURITY. Except as otherwise provided in Sections
3.4(b) and 3.4(c), the Loans shall bear interest on the unpaid principal balance
thereof at the applicable interest rate or rates per annum set forth below:
LOANS RATE
-------------------------- ---------------------------------------------
Revolving Credit Loans Alternate Base Rate applicable thereto PLUS
constituting ABR Advances the Applicable Margin.
23
Revolving Credit Loans Eurodollar Rate applicable thereto PLUS the
constituting Eurodollar Applicable Margin.
Advances
Competitive Bid Loans Fixed rate of interest applicable thereto
(b) AFTER MATURITY, LATE PAYMENT RATE. After maturity, whether by
acceleration, notice of intention to prepay or otherwise, the outstanding
principal balance of the Loans shall bear interest at the Alternate Base Rate
PLUS 2% per annum until paid (whether before or after the entry of any judgment
thereon). Any payment of principal, interest or any Fees not paid on the date
when due and payable shall bear interest at the Alternate Base Rate PLUS 2% per
annum from the due date thereof until the date such payment is made (whether
before or after the entry of any judgment thereon).
(c) HIGHEST LAWFUL RATE. Notwithstanding anything to the contrary
contained in this Agreement, at no time shall the interest rate payable to any
Lender on any of its Loans, together with the Fees and all other amounts payable
hereunder to such Lender to the extent the same constitute or are deemed to
constitute interest, exceed the Highest Lawful Rate. If in respect of any period
during the term of this Agreement, any amount paid to any Lender hereunder, to
the extent the same shall (but for the provisions of this Section 3.4)
constitute or be deemed to constitute interest, would exceed the maximum amount
of interest permitted by the Highest Lawful Rate during such period (such amount
being hereinafter referred to as an "UNQUALIFIED AMOUNT"), then (i) such
Unqualified Amount shall be applied or shall be deemed to have been applied as a
prepayment of the Loans of such Lender, and (ii) if, in any subsequent period
during the term of this Agreement, all amounts payable hereunder to such Lender
in respect of such period which constitute or shall be deemed to constitute
interest shall be less than the maximum amount of interest permitted by the
Highest Lawful Rate during such period, then the Borrower shall pay to such
Lender in respect of such period an amount (each a "COMPENSATORY INTEREST
PAYMENT") equal to the lesser of (x) a sum which, when added to all such
amounts, would equal the maximum amount of interest permitted by the Highest
Lawful Rate during such period, and (y) an amount equal to the aggregate sum of
all Unqualified Amounts LESS all other Compensatory Interest Payments.
(d) GENERAL. Interest shall be payable in arrears on each Interest
Payment Date, on the Commitment Termination Date and, to the extent provided in
Section 2.7(b), upon each prepayment of the Loans. Any change in the interest
rate on the Loans resulting from an increase or a decrease in the Alternate Base
Rate or any reserve requirement shall become effective as of the opening of
business on the day on which such change shall become effective. The
Administrative Agent shall, as soon as practicable, notify the Borrower and the
Lenders of the effective date and the amount of each change in the BNY Rate, but
any failure to so notify shall not in any manner affect the obligation of the
Borrower to pay interest on the Loans in the amounts and on the dates set forth
herein. Each determination by the Administrative Agent of the Alternate Base
Rate, the Eurodollar Rate and the Competitive Rate pursuant to this Agreement
shall be conclusive and binding on the Borrower absent manifest error. The
Borrower acknowledges that to the extent interest payable on the Loans is based
on the Alternate Base Rate, such rate is only one of the bases for computing
interest on loans made by the
24
Lenders, and by basing interest payable on ABR Advances on the Alternate Base
Rate, the Lenders have not committed to charge, and the Borrower has not in any
way bargained for, interest based on a lower or the lowest rate at which the
Lenders may now or in the future make extensions of credit to other Persons. All
interest (other than interest calculated with reference to the BNY Rate) shall
be calculated on the basis of a 360-day year for the actual number of days
elapsed, and all interest determined with reference to the BNY Rate shall be
calculated on the basis of a 365/366-day year for the actual number of days
elapsed.
3.5 INDEMNIFICATION FOR LOSS
Notwithstanding anything contained herein to the contrary, if: (i)
the Borrower shall fail to borrow a Eurodollar Advance or if the Borrower shall
fail to Convert a Eurodollar Advance after it shall have given notice to do so
in which it shall have requested a Eurodollar Advance pursuant to Section 2.3 or
3.3, as the case may be, (ii) the Borrower shall fail to borrow a Competitive
Bid Loan after it shall have accepted any offer with respect thereto in
accordance with Section 2.4, (iii) a Eurodollar Advance or Competitive Bid Loan
shall be terminated for any reason prior to the last day of the Interest Period
applicable thereto, (iv) any repayment or prepayment of the principal amount of
a Eurodollar Advance or Competitive Bid Loan is made for any reason on a date
which is prior to the last day of the Interest Period applicable thereto, or (v)
the Borrower shall have revoked a notice of prepayment or notice of termination
of the Commitments that was conditioned upon the effectiveness of other credit
facilities pursuant to Section 2.6 or 2.7, the Borrower agrees to indemnify each
Lender against, and to pay on demand directly to such Lender the amount
(calculated by such Lender using any method chosen by such Lender which is
customarily used by such Lender for such purpose) equal to any loss or expense
suffered by such Lender as a result of such failure to borrow or Convert, or
such termination, repayment, prepayment or revocation, including any loss, cost
or expense suffered by such Lender in liquidating or employing deposits acquired
to fund or maintain the funding of such Eurodollar Advance or Competitive Bid
Loan, as the case may be, or redeploying funds prepaid or repaid, in amounts
which correspond to such Eurodollar Advance or Competitive Bid Loan, as the case
may be, and any reasonable internal processing charge customarily charged by
such Lender in connection therewith.
3.6 REIMBURSEMENT FOR COSTS, ETC.
If at any time or from time to time there shall occur a Regulatory
Change and any Lender shall have reasonably determined that such Regulatory
Change (i) shall have had or will thereafter have the effect of reducing (A) the
rate of return on such Lender's capital or the capital of any Person directly or
indirectly owning or controlling such Lender (each a "CONTROL PERSON"), or (B)
the asset value (for capital purposes) to such Lender or such Control Person, as
applicable, of the Loans, or any participation therein, in any case to a level
below that which such Lender or such Control Person could have achieved or would
thereafter be able to achieve but for such Regulatory Change (after taking into
account such Lender's or such Control Person's policies regarding capital), (ii)
will impose, modify or deem applicable any reserve, asset, special deposit or
special assessment requirements on deposits obtained in the interbank eurodollar
market in connection with the Loan Documents (excluding, with respect to any
Eurodollar Advance, any such requirement which is included in the determination
of the rate applicable thereto), (iii) will subject such Lender
25
or such Control Person, as applicable, to any tax (documentary, stamp or
otherwise) with respect to this Agreement or any Note, or (iv) will change the
basis of taxation of payments to such Lender or such Control Person, as
applicable, of principal, interest or fees payable under the Loan Documents
(except, in the case of clauses (iii) and (iv) above, for any tax or changes in
the rate of tax on such Lender's or such Control Person's net income) then, in
each such case, within ten days after demand by such Lender, the Borrower shall
pay to such Lender or such Control Person, as the case may be, such additional
amount or amounts as shall be sufficient to compensate such Lender or such
Control Person, as the case may be, for any such reduction, reserve or other
requirement, tax, loss, cost or expense (excluding general administrative and
overhead costs) (collectively, "COSTS") attributable to such Lender's or such
Control Person's compliance during the term hereof with such Regulatory Change.
Each Lender may make multiple requests for compensation under this Section.
Notwithstanding the foregoing, the Borrower will not be required to
compensate any Lender for any Costs under this Section 3.6 arising prior to 45
days preceding the date of demand, unless the applicable Regulatory Change
giving rise to such Costs is imposed retroactively. In the case of
retroactivity, such notice shall be provided to the Borrower not later than 45
days from the date that such Lender learned of such Regulatory Change. The
Borrower's obligation to compensate such Lender shall be contingent upon the
provision of such timely notice (but any failure by such Lender to provide such
timely notice shall not affect the Borrower's obligations with respect to (i)
Costs incurred from the date as of which such Regulatory Change became effective
to the date that is 45 days after the date such Lender reasonably should have
learned of such Regulatory Change and (ii) Costs incurred following the
provision of such notice).
3.7 ILLEGALITY OF FUNDING
Notwithstanding any other provision hereof, if any Lender shall
reasonably determine that any law, regulation, treaty or directive, or any
change therein or in the interpretation or application thereof, shall make it
unlawful for such Lender to make or maintain any Eurodollar Advance as
contemplated by this Agreement, such Lender shall promptly notify the Borrower
and the Administrative Agent thereof, and (a) the commitment of such Lender to
make such Eurodollar Advances or Convert ABR Advances to such Eurodollar
Advances shall forthwith be suspended, (b) such Lender shall fund its portion of
each requested Eurodollar Advance as an ABR Advance and (c) such Lender's Loans
then outstanding as such Eurodollar Advances, if any, shall be Converted
automatically to an ABR Advance on the last day of the then current Interest
Period applicable thereto or at such earlier time as may be required. If the
commitment of any Lender with respect to Eurodollar Advances is suspended
pursuant to this Section and such Lender shall have obtained actual knowledge
that it is once again legal for such Lender to make or maintain Eurodollar
Advances, such Lender shall promptly notify the Administrative Agent and the
Borrower thereof and, upon receipt of such notice by each of the Administrative
Agent and the Borrower, such Lender's commitment to make or maintain Eurodollar
Advances shall be reinstated. If the commitment of any Lender with respect to
Eurodollar Advances is suspended pursuant to this Section, such suspension shall
not otherwise affect such Lender's Commitment.
26
3.8 OPTION TO FUND; SUBSTITUTED INTEREST RATE
(a) Each Lender has indicated that, if the Borrower requests a
Eurodollar Advance or a Competitive Bid Loan, such Lender may wish to purchase
one or more deposits in order to fund or maintain its funding of its Commitment
Percentage of such Eurodollar Advance or its Competitive Bid Loan during the
Interest Period with respect thereto; it being understood that the provisions of
this Agreement relating to such funding are included only for the purpose of
determining the rate of interest to be paid in respect of such Eurodollar
Advance or Competitive Bid Loan and any amounts owing under Sections 3.5 and
3.6. Each Lender shall be entitled to fund and maintain its funding of all or
any part of each Eurodollar Advance and Competitive Bid Loan in any manner it
sees fit, but all such determinations hereunder shall be made as if such Lender
had actually funded and maintained its Commitment Percentage of each Eurodollar
Advance or its Competitive Bid Loan, as the case may be, during the applicable
Interest Period through the purchase of deposits in an amount equal to the
amount of its Commitment Percentage of such Eurodollar Advance or the amount of
such Competitive Bid Loan, as the case may be, and having a maturity
corresponding to such Interest Period. Each Lender may fund its Loans from or
for the account of any branch or office of such Lender as such Lender may choose
from time to time, subject to Section 3.10.
(b) In the event that (i) the Administrative Agent shall have
determined in good faith (which determination shall be conclusive and binding
upon the Borrower) that by reason of circumstances affecting the interbank
eurodollar market either adequate and reasonable means do not exist for
ascertaining the Eurodollar Rate applicable pursuant to Section 2.3 or Section
3.3, or (ii) the Required Lenders shall have notified the Administrative Agent
that they have in good faith determined (which determination shall be conclusive
and binding on the Borrower) that the applicable Eurodollar Rate will not
adequately and fairly reflect the cost to such Lenders of maintaining or funding
loans bearing interest based on such Eurodollar Rate with respect to any portion
of the Loans that the Borrower has requested be made as Eurodollar Advances or
any Eurodollar Advance that will result from the requested conversion of any
portion of the Loans into Eurodollar Advances (each, an "AFFECTED ADVANCE"), the
Administrative Agent shall promptly notify the Borrower and the Lenders (by
telephone or otherwise, to be promptly confirmed in writing) of such
determination on or, to the extent practicable, prior to the requested Borrowing
Date or conversion date for such Affected Advances. If the Administrative Agent
shall give such notice, (A) any Affected Advances shall be made as ABR Advances
(or, subject to the terms and conditions hereof, Competitive Bid Loans), (B) the
Loans (or any portion thereof) that were to have been Converted to Affected
Advances shall be Converted to or continued as ABR Advances (or, subject to the
terms and conditions hereof, Competitive Bid Loans), and (C) any outstanding
Affected Advances shall be Converted, on the last day of the then current
Interest Period with respect thereto, to ABR Advances (or, subject to the terms
and conditions hereof, Competitive Bid Loans). Until any notice under clauses
(i) or (ii), as the case may be, of this Section 3.8(b) has been withdrawn by
the Administrative Agent (by notice to the Borrower) promptly upon either (x)
the Administrative Agent having determined that such circumstances affecting the
relevant market no longer exist and that adequate and reasonable means do exist
for determining the Eurodollar Rate pursuant to Section 2.3 or Section 3.3, or
(y) the Administrative Agent having been notified by such Required Lenders that
circumstances no longer render the Loans (or any portion thereof)
27
Affected Advances, no further Eurodollar Advances shall be required to be made
by the Lenders nor shall the Borrower have the right to Convert all or any
portion of the Loans to Eurodollar Advances.
3.9 CERTIFICATES OF PAYMENT AND REIMBURSEMENT
Each Lender agrees, in connection with any request by it for payment
or reimbursement pursuant to Section 3.5 or 3.6, to provide the Borrower with a
certificate, signed by an officer of such Lender, setting forth a description in
reasonable detail of any such payment or reimbursement. Each determination by
each Lender of such payment or reimbursement shall be conclusive absent manifest
error.
3.10 TAXES; NET PAYMENTS
(a) All payments made by the Borrower under the Loan Documents
shall be made free and clear of, and without reduction for or on account of, any
taxes required by law to be withheld from any amounts payable under the Loan
Documents. In the event that the Borrower is prohibited by law from making such
payments free of deductions or withholdings, then the Borrower shall pay such
additional amounts to the Administrative Agent, for the benefit of the Lenders,
as may be necessary in order that the actual amounts received by the Lenders in
respect of interest and any other amounts payable under the Loan Documents after
deduction or withholding (and after payment of any additional taxes or other
charges due as a consequence of the payment of such additional amounts) shall
equal the amount that would have been received if such deduction or withholding
were not required. In the event that any such deduction or withholding can be
reduced or nullified as a result of the application of any relevant double
taxation convention, the Lenders and the Administrative Agent will, at the
expense of the Borrower, cooperate with the Borrower in making application to
the relevant taxing authorities seeking to obtain such reduction or
nullification, PROVIDED that the Lenders and the Administrative Agent shall have
no obligation to (i) engage in any litigation, hearing or proceeding with
respect thereto or (ii) disclose any tax return or other confidential
information. If the Borrower shall make any payment under this Section or shall
make any deduction or withholding from amounts paid under any Loan Document, the
Borrower shall forthwith forward to the Administrative Agent original or
certified copies of official receipts or other evidence acceptable to the
Administrative Agent establishing each such payment, deduction or withholding,
as the case may be, and the Administrative Agent in turn shall distribute copies
thereof to each Lender. If any payment to any Lender under any Loan Document is
or becomes subject to any withholding, such Lender shall (unless otherwise
required by a Governmental Authority or as a result of any law, rule,
regulation, order or similar directive applicable to such Lender) designate a
different office or branch to which such payment is to be made from that
initially selected thereby, if such designation would avoid such withholding and
would not be otherwise disadvantageous to such Lender in any respect. In the
event that any Lender determines that it received a refund or credit for taxes
paid by the Borrower under this Section, such Lender shall promptly notify the
Administrative Agent and the Borrower of such fact and shall remit to the
Borrower the amount of such refund or credit applicable to the payments made by
the Borrower in respect of such Lender under this Section.
28
(b) Any Foreign Lender that is entitled to an exemption from or
reduction of withholding tax under the law of the jurisdiction in which the
Borrower is located, or any treaty to which such jurisdiction is a party, with
respect to payments under the Loan Documents shall deliver to the Borrower (with
a copy to the Administrative Agent), at the time or times prescribed by
applicable law, such properly completed and executed documentation prescribed by
applicable law or reasonably requested by the Borrower as will permit such
payments to be made without withholding or at a reduced rate. Notwithstanding
any provision herein to the contrary, the Borrower shall have no obligation to
pay to any Lender any amount which the Borrower is liable to withhold due to the
failure of such Lender to file any statement of exemption required by the
Internal Revenue Code.
3.11 FEES
(a) FACILITY FEE. The Borrower agrees to pay to the Administrative
Agent for the pro rata account of each Lender a fee (the "FACILITY FEE") during
the period commencing on the Effective Date and ending on the Expiration Date,
payable quarterly in arrears on the last day of each March, June, September and
December of each year, commencing on the last day of the calendar quarter in
which the Effective Date shall have occurred, and on the Expiration Date, at a
rate per annum equal to the Applicable Margin of (a) prior to the Commitment
Termination Date or such earlier date upon which all of the Commitments shall
have been voluntarily terminated by the Borrower in accordance with Section 2.6,
the Commitment Amount of such Lender (whether used or unused), and (b)
thereafter, the outstanding principal balance of all Revolving Credit Loans of
such Lender. Notwithstanding anything to the contrary contained in this Section,
on and after the Commitment Termination Date, the Facility Fee shall be payable
upon demand. In addition, upon each reduction of the Aggregate Commitment
Amount, the Borrower shall pay the Facility Fee accrued on the amount of such
reduction through the date of such reduction. The Facility Fee shall be computed
on the basis of a 360-day year for the actual number of days elapsed.
(b) UTILIZATION FEE. The Borrower agrees to pay to the
Administrative Agent for the pro rata account of each Lender a fee (the
"UTILIZATION FEE") for each day during the period commencing on the Effective
Date and ending on the Expiration Date (or, if later, the date when the
Committed Credit Exposure of such Lender is $0) that the sum of the Aggregate
Credit Exposure plus the Aggregate Credit Exposure (as defined in the Other
Credit Agreement) on such date exceeds 50% of the sum of the Aggregate
Commitment Amount plus the Aggregate Commitment Amount (as defined in the Other
Credit Agreement) on such date, payable on each Interest Payment Date (other
than an Interest Payment Date applicable solely to Competitive Bid Loans), at a
rate per annum equal to the Applicable Margin of the Committed Credit Exposure
of such Lender on such date. Notwithstanding anything to the contrary contained
in this Section, on and after the Commitment Termination Date, the Utilization
Fee shall be payable upon demand. The Utilization Fee shall be computed on the
basis of a 360-day year for the actual number of days elapsed.
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3.12 REPLACEMENT OF LENDER
If the Borrower is obligated to pay to any Lender any amount under
Section 3.6 or 3.10, the Borrower shall have the right within 90 days
thereafter, in accordance with the requirements of Section 11.7(b), if no
Default or Event of Default shall exist, to replace such Lender (the "REPLACED
LENDER") with one or more other assignees (each a "REPLACEMENT LENDER"),
PROVIDED that (i) at the time of any replacement pursuant to this Section, the
Replacement Lender shall enter into one or more Assignment and Acceptance
Agreements pursuant to Section 11.7(b) (with the processing and recordation fee
referred to in Section 11.7(b) payable pursuant to said Section 11.7(b) to be
paid by the Replacement Lender) pursuant to which the Replacement Lender shall
acquire the Commitment and the outstanding Loans of the Replaced Lender and, in
connection therewith, shall pay the following: (a) to the Replaced Lender, an
amount equal to the sum of (A) an amount equal to the principal of, and all
accrued interest on, all outstanding Loans of the Replaced Lender and (B) an
amount equal to all accrued, but unpaid, fees owing to the Replaced Lender and
(b) to the Administrative Agent an amount equal to all amounts owed by such
Replaced Lender to the Administrative Agent under this Agreement, including,
without limitation, an amount equal to the principal of, and all accrued
interest on, all outstanding Loans of the Replaced Lender, a corresponding
amount of which was made available by the Administrative Agent to the Borrower
pursuant to Section 3.1 and which has not been repaid to the Administrative
Agent by such Replaced Lender or the Borrower, and (ii) all obligations of the
Borrower owing to the Replaced Lender (other than those specifically described
in clause (i) above in respect of which the assignment purchase price has been,
or is concurrently being, paid) shall be paid in full to such Replaced Lender
concurrently with such replacement. Upon the execution of the respective
Assignment and Acceptance Agreements and the payment of amounts referred to in
clauses (i) and (ii) of this Section 3.12, the Replacement Lender shall become a
Lender hereunder and the Replaced Lender shall cease to constitute a Lender
hereunder, except with respect to indemnification provisions under this
Agreement that are intended to survive the termination of the Commitments and
the repayment of the Loans.
4. REPRESENTATIONS AND WARRANTIES
In order to induce the Administrative Agent and the Lenders to enter
into this Agreement and the Lenders to make the Loans, the Borrower hereby makes
the following representations and warranties to the Administrative Agent and the
Lenders:
4.1 EXISTENCE AND POWER
Each of the Borrower and the Subsidiaries is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
incorporation or formation (except, in the case of the Subsidiaries, where the
failure to be in such good standing could not reasonably be expected to have a
Material Adverse effect), has all requisite corporate power and authority to own
its Property and to carry on its business as now conducted, and is qualified to
do business as a foreign corporation and is in good standing in each
jurisdiction in which it owns or leases real Property or in which the nature of
its business requires it to be so qualified (except those jurisdictions where
the failure to be so qualified or to be in good standing could not reasonably be
expected to have a Material Adverse effect).
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4.2 AUTHORITY
The Borrower has full corporate power and authority to enter into,
execute, deliver and perform the terms of the Loan Documents, all of which have
been duly authorized by all proper and necessary corporate action and are not in
contravention of any applicable law or the terms of its Certificate of
Incorporation and By-Laws. No consent or approval of, or other action by,
shareholders of the Borrower, any Governmental Authority, or any other Person
(which has not already been obtained) is required to authorize in respect of the
Borrower, or is required in connection with the execution, delivery, and
performance by the Borrower of the Loan Documents or is required as a condition
to the enforceability of the Loan Documents against the Borrower.
4.3 BINDING AGREEMENT
The Loan Documents constitute the valid and legally binding
obligations of the Borrower, enforceable in accordance with their respective
terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement
of creditors' rights generally and by equitable principles relating to the
availability of specific performance as a remedy.
4.4 LITIGATION
There are no actions, suits, arbitration proceedings or claims
(whether purportedly on behalf of the Borrower, any Subsidiary or otherwise)
pending or, to the knowledge of the Borrower, threatened against the Borrower or
any Subsidiary or any of their respective Properties, or maintained by the
Borrower or any Subsidiary, at law or in equity, before any Governmental
Authority which could reasonably be expected to have a Material Adverse effect.
There are no proceedings pending or, to the knowledge of the Borrower,
threatened against the Borrower or any Subsidiary (a) which call into question
the validity or enforceability of any Loan Document, or otherwise seek to
invalidate, any Loan Document, or (b) which might, individually or in the
aggregate, materially and adversely affect any of the transactions contemplated
by any Loan Document (it being understood that the Eckerd Acquisition is not a
transaction contemplated by any Loan Document for purposes of this clause (b)).
4.5 NO CONFLICTING AGREEMENTS
(a) Neither the Borrower nor any Subsidiary is in default under
any agreement to which it is a party or by which it or any of its Property is
bound the effect of which could reasonably be expected to have a Material
Adverse effect. No notice to, or filing with, any Governmental Authority is
required for the due execution, delivery and performance by the Borrower of the
Loan Documents.
(b) No provision of any existing material mortgage, material
indenture, material contract or material agreement or of any existing statute,
rule, regulation, judgment, decree or order binding on the Borrower or any
Subsidiary or affecting the Property of the Borrower or any Subsidiary conflicts
with, or requires any consent which has not already been obtained under, or
would in any way prevent the execution, delivery or performance by the
31
Borrower of the terms of, any Loan Document. The execution, delivery or
performance by the Borrower of the terms of each Loan Document will not
constitute a default under, or result in the creation or imposition of, or
obligation to create, any Lien upon the Property of the Borrower or any
Subsidiary pursuant to the terms of any such mortgage, indenture, contract or
agreement.
4.6 TAXES
The Borrower and each Subsidiary has filed or caused to be filed all
tax returns, and has paid, or has made adequate provision for the payment of,
all taxes shown to be due and payable on said returns or in any assessments made
against them, the failure of which to file or pay could reasonably be expected
to have a Material Adverse effect, and no tax Liens (other than Liens permitted
under Section 8.2) have been filed against the Borrower or any Subsidiary and no
claims are being asserted with respect to such taxes which are required by GAAP
to be reflected in the Financial Statements and are not so reflected, except for
taxes which have been assessed but which are not yet due and payable. The
charges, accruals and reserves on the books of the Borrower and each Subsidiary
with respect to all federal, state, local and other taxes are considered by the
management of the Borrower to be adequate, and the Borrower knows of no unpaid
assessment which (a) could reasonably be expected to have a Material Adverse
effect, or (b) is or might be due and payable against it or any Subsidiary or
any Property of the Borrower or any Subsidiary, except such thereof as are being
contested in good faith and by appropriate proceedings diligently conducted, and
for which adequate reserves have been set aside in accordance with GAAP or which
have been assessed but are not yet due and payable.
4.7 COMPLIANCE WITH APPLICABLE LAWS; FILINGS
Neither the Borrower nor any Subsidiary is in default with respect
to any judgment, order, writ, injunction, decree or decision of any Governmental
Authority which default could reasonably be expected to have a Material Adverse
effect. The Borrower and each Subsidiary is complying with all applicable
statutes, rules and regulations of all Governmental Authorities, a violation of
which could reasonably be expected to have a Material Adverse effect. The
Borrower and each Subsidiary has filed or caused to be filed with all
Governmental Authorities all reports, applications, documents, instruments and
information required to be filed pursuant to all applicable laws, rules,
regulations and requests which, if not so filed, could reasonably be expected to
have a Material Adverse effect.
4.8 GOVERNMENTAL REGULATIONS
Neither the Borrower nor any Subsidiary nor any corporation
controlling the Borrower or any Subsidiary or under common control with the
Borrower or any Subsidiary is subject to regulation under the Investment Company
Act of 1940, as amended, or is subject to any statute or regulation which
regulates the incurrence of Indebtedness.
4.9 FEDERAL RESERVE REGULATIONS; USE OF PROCEEDS
The Borrower is not engaged principally, or as one of its important
activities, in the business of extending credit for the purpose of purchasing or
carrying any margin stock within the
32
meaning of Regulation U of the Board of Governors of the Federal Reserve System,
as amended. No part of the proceeds of the Loans has been or will be used,
directly or indirectly, and whether immediately, incidentally or ultimately, for
a purpose which violates any law, rule or regulation of any Governmental
Authority, including, without limitation, the provisions of Regulations T, U or
X of the Board of Governors of the Federal Reserve System, as amended. Anything
in this Agreement to the contrary notwithstanding, no Lender shall be obligated
to extend credit to or on behalf of the Borrower in violation of any limitation
or prohibition provided by any applicable law, regulation or statute, including
said Regulation U. Following application of the proceeds of each Loan, not more
than 25% (or such greater or lesser percentage as is provided in the exclusions
from the definition of "Indirectly Secured" contained in said Regulation U as in
effect at the time of the making of such Loan) of the value of the assets of the
Borrower and the Subsidiaries on a Consolidated basis that are subject to
Section 8.2 will be Margin Stock. In addition, no part of the proceeds of any
Loan will be used, whether directly or indirectly, and whether immediately,
incidentally or ultimately, to make a loan to any director or executive officer
of the Borrower or any Subsidiary.
4.10 NO MISREPRESENTATION
No representation or warranty contained in any Loan Document and no
certificate or written report furnished by the Borrower to the Administrative
Agent or any Lender pursuant to any Loan Document contains or will contain, as
of its date, a misstatement of material fact, or omits or will omit to state, as
of its date, a material fact required to be stated in order to make the
statements therein contained not misleading in the light of the circumstances
under which made (it being understood that the Borrower makes no representation
or warranty hereunder with respect to any projections or other forward looking
information).
4.11 PLANS
Each Employee Benefit Plan of the Borrower, each Subsidiary and each
ERISA Affiliate is in compliance with ERISA and the Internal Revenue Code, where
applicable, except where the failure to so comply would not be material. The
Borrower, each Subsidiary and each ERISA Affiliate have complied with the
material requirements of Section 515 of ERISA with respect to each Pension Plan
which is a Multiemployer Plan, except where the failure to so comply would not
be material. The Borrower, each Subsidiary and each ERISA Affiliate has, as of
the date hereof, made all contributions or payments to or under each Pension
Plan required by law or the terms of such Pension Plan or any contract or
agreement. No liability to the PBGC has been, or is reasonably expected by the
Borrower, any Subsidiary or any ERISA Affiliate to be, incurred by the Borrower,
any Subsidiary or any ERISA Affiliate. Liability, as referred to in this Section
4.11, includes any joint and several liability, but excludes any current or, to
the extent it represents future liability in the ordinary course, any future
liability for premiums under Section 4007 of ERISA. Each Employee Benefit Plan
which is a group health plan within the meaning of Section 5000(b)(1) of the
Internal Revenue Code is in material compliance with the continuation of health
care coverage requirements of Section 4980B of the Internal Revenue Code and
with the portability, nondiscrimination and other requirements of Sections 9801,
9802, 9803, 9811 and 9812 of the Internal Revenue Code.
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4.12 ENVIRONMENTAL MATTERS
Neither the Borrower nor any Subsidiary (a) has received written
notice or otherwise learned of any claim, demand, action, event, condition,
report or investigation indicating or concerning any potential or actual
liability which individually or in the aggregate could reasonably be expected to
have a Material Adverse effect, arising in connection with (i) any
non-compliance with or violation of the requirements of any applicable federal,
state or local environmental health or safety statute or regulation, or (ii) the
release or threatened release of any toxic or hazardous waste, substance or
constituent, or other substance into the environment, (b) to the best knowledge
of the Borrower, has any threatened or actual liability in connection with the
release or threatened release of any toxic or hazardous waste, substance or
constituent, or other substance into the environment which individually or in
the aggregate could reasonably be expected to have a Material Adverse effect,
(c) has received notice of any federal or state investigation evaluating whether
any remedial action is needed to respond to a release or threatened release of
any toxic or hazardous waste, substance or constituent or other substance into
the environment for which the Borrower or any Subsidiary is or would be liable,
which liability would reasonably be expected to have a Material Adverse effect,
or (d) has received notice that the Borrower or any Subsidiary is or may be
liable to any Person under the Comprehensive Environmental Response,
Compensation and Liability Act, as amended, 42 U.S.C. Section 9601 ET SEQ., or
any analogous state law, which liability would reasonably be expected to have a
Material Adverse effect. The Borrower and each Subsidiary is in compliance with
the financial responsibility requirements of federal and state environmental
laws to the extent applicable, including those contained in 40 C.F.R., parts 264
and 265, subpart H, and any analogous state law, except in those cases in which
the failure so to comply would not reasonably be expected to have a Material
Adverse effect.
4.13 FINANCIAL STATEMENTS
The Borrower has heretofore delivered to the Lenders through the
Administrative Agent copies of (i) the audited Consolidated Balance Sheet of the
Borrower and its Subsidiaries as of January 3, 2004, and the related
Consolidated Statements of Operations, Shareholders' Equity and Cash Flows for
the fiscal year then ended, and (ii) the unaudited Consolidated Balance Sheet of
the Borrower and its Subsidiaries as of April 3, 2004, and the related
Consolidated Statements of Operations, Shareholders' Equity and Cash Flows for
the fiscal quarter then ended. The financial statements referred to in (i) and
(ii) immediately above, including all related notes and schedules, are herein
referred to collectively as the "FINANCIAL STATEMENTS". The Financial Statements
fairly present the Consolidated financial condition and results of the
operations of the Borrower and the Subsidiaries as of the dates and for the
periods indicated therein and, except as noted therein, have been prepared in
conformity with GAAP as then in effect. Neither the Borrower nor any of the
Subsidiaries has any obligation or liability of any kind (whether fixed,
accrued, contingent, unmatured or otherwise) which, in accordance with GAAP as
then in effect, should have been disclosed in the Financial Statements and was
not. During the period from January 3, 2004 to and including the Effective Date
there has been no Material Adverse change, including as a result of any change
in law, in the consolidated financial condition, operations, business or
Property of the Borrower and the Subsidiaries taken as a whole.
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5. CONDITIONS OF LENDING - FIRST LOANS ON THE FIRST BORROWING DATE
In addition to the requirements set forth in Section 6, the
obligation of each Lender on the first Borrowing Date to make one or more
Revolving Credit Loans and any Lender to make a Competitive Bid Loan are subject
to the fulfillment of the following conditions precedent prior to or
simultaneously with the Effective Date:
5.1 EVIDENCE OF CORPORATE ACTION
The Administrative Agent shall have received a certificate, dated
the Effective Date, of the Secretary or an Assistant Secretary of the Borrower
(i) attaching a true and complete copy of the resolutions of its Board of
Directors and of all documents evidencing all other necessary corporate action
(in form and substance reasonably satisfactory to the Administrative Agent)
taken by the Borrower to authorize the Loan Documents and the transactions
contemplated thereby, (ii) attaching a true and complete copy of its Certificate
of Incorporation and By-Laws, (iii) setting forth the incumbency of the officer
or officers of the Borrower who may sign the Loan Documents and any other
certificates, requests, notices or other documents now or in the future required
thereunder, and (iv) attaching a certificate of good standing of the Secretary
of State of the State of Delaware.
5.2 NOTES
The Administrative Agent shall have received a Note for each Lender
that shall have requested one, executed by the Borrower.
5.3 OPINION OF COUNSEL TO THE BORROWER
The Administrative Agent shall have received:
(a) an opinion of Xxxxx Xxxxxxxxx, counsel to the Borrower, dated
the Effective Date, and in the form of Exhibit D-1; and
(b) an opinion of Xxxxx Xxxx & Xxxxxxxx, special counsel to the
Borrower, dated the Effective Date, and in the form of Exhibit D-2.
6. CONDITIONS OF LENDING - ALL LOANS
The obligation of each Lender on any Borrowing Date to make each
Revolving Credit Loan and any Lender to make a Competitive Bid Loan are subject
to the fulfillment of the following conditions precedent:
6.1 COMPLIANCE
On each Borrowing Date, and after giving effect to the Loans to be
made on such Borrowing Date, (a) there shall exist no Default or Event of
Default, and (b) the representations and warranties contained in this Agreement
shall be true and correct with the same effect as though such representations
and warranties had been made on such Borrowing Date, except those which are
expressly specified to be made as of an earlier date.
35
6.2 REQUESTS
The Administrative Agent shall have received a Borrowing Request
from the Borrower.
6.3 LOAN CLOSINGS
All documents required by the provisions of this Agreement to have
been executed or delivered by the Borrower to the Administrative Agent or any
Lender on or before the applicable Borrowing Date shall have been so executed or
delivered on or before such Borrowing Date.
7. AFFIRMATIVE COVENANTS
The Borrower covenants and agrees that on and after the Effective
Date and until the later to occur of (a) the Commitment Termination Date and (b)
the payment in full of the Loans, the Fees and all other sums payable under the
Loan Documents, the Borrower will:
7.1 LEGAL EXISTENCE
Except as may otherwise be permitted by Sections 8.3 and 8.4,
maintain, and cause each Subsidiary to maintain, its corporate existence in good
standing in the jurisdiction of its incorporation or formation and in each other
jurisdiction in which the failure so to do could reasonably be expected to have
a Material Adverse effect, except that the corporate existence of Subsidiaries
operating closing or discontinued operations may be terminated.
7.2 TAXES
Pay and discharge when due, and cause each Subsidiary so to do, all
taxes, assessments, governmental charges, license fees and levies upon or with
respect to the Borrower and such Subsidiary, and upon the income, profits and
Property thereof unless, and only to the extent, that either (i)(a) such taxes,
assessments, governmental charges, license fees and levies shall be contested in
good faith and by appropriate proceedings diligently conducted by the Borrower
or such Subsidiary, and (b) such reserve or other appropriate provision as shall
be required by GAAP shall have been made therefor, or (ii) the failure to pay or
discharge such taxes, assessments, governmental charges, license fees and levies
could not reasonably be expected to have a Material Adverse effect.
7.3 INSURANCE
Keep, and cause each Subsidiary to keep, insurance with responsible
insurance companies in such amounts and against such risks as is usually carried
by the Borrower or such Subsidiary.
7.4 PERFORMANCE OF OBLIGATIONS
Pay and discharge promptly when due, and cause each Subsidiary so to
do, all lawful Indebtedness, obligations and claims for labor, materials and
supplies or otherwise which, if
36
unpaid, could reasonably be expected to (a) have a Material Adverse effect, or
(b) become a Lien on the Property of the Borrower or any Subsidiary, except
those Liens permitted under Section 8.2, PROVIDED that neither the Borrower nor
such Subsidiary shall be required to pay or discharge or cause to be paid or
discharged any such Indebtedness, obligation or claim so long as (i) the
validity thereof shall be contested in good faith and by appropriate proceedings
diligently conducted by the Borrower or such Subsidiary, and (ii) such reserve
or other appropriate provision as shall be required by GAAP shall have been made
therefor.
7.5 CONDITION OF PROPERTY
Except for ordinary wear and tear, at all times, maintain, protect
and keep in good repair, working order and condition, all material Property
necessary for the operation of its business (other than Property which is
replaced with similar Property) as then being operated, and cause each
Subsidiary so to do.
7.6 OBSERVANCE OF LEGAL REQUIREMENTS
Observe and comply in all material respects, and cause each
Subsidiary so to do, with all laws, ordinances, orders, judgments, rules,
regulations, certifications, franchises, permits, licenses, directions and
requirements of all Governmental Authorities, which now or at any time hereafter
may be applicable to it or to such Subsidiary, a violation of which could
reasonably be expected to have a Material Adverse effect.
7.7 FINANCIAL STATEMENTS AND OTHER INFORMATION
Maintain, and cause each Subsidiary to maintain, a standard system
of accounting in accordance with GAAP, and furnish to each Lender:
(a) As soon as available and, in any event, within 120 days after
the close of each fiscal year, a copy of (x) the Borrower's 10-K in respect of
such fiscal year, and (y) (i) the Borrower's Consolidated Balance Sheet as of
the end of such fiscal year, and (ii) the related Consolidated Statements of
Operations, Shareholders' Equity and Cash Flows, as of and through the end of
such fiscal year, setting forth in each case in comparative form the
corresponding figures in respect of the previous fiscal year, all in reasonable
detail, and accompanied by a report of the Borrower's auditors, which report
shall state that (A) such auditors audited such financial statements, (B) such
audit was made in accordance with generally accepted auditing standards in
effect at the time and provides a reasonable basis for such opinion, and (C)
said financial statements have been prepared in accordance with GAAP;
(b) As soon as available, and in any event within 60 days after
the end of each of the first three fiscal quarters of each fiscal year, a copy
of (x) the Borrower's 10-Q in respect of such fiscal quarter, and (y) (i) the
Borrower's Consolidated Balance Sheet as of the end of such quarter and (ii) the
related Consolidated Statements of Operations, Shareholders' Equity and Cash
Flows for (A) such quarter and (B) the period from the beginning of the then
current fiscal year to the end of such quarter, in each case in comparable form
with the prior fiscal year, all in
37
reasonable detail and prepared in accordance with GAAP (without footnotes and
subject to year-end adjustments);
(c) Simultaneously with the delivery of the financial statements
required by clauses (a) and (b) above, a certificate of the chief financial
officer or treasurer of the Borrower certifying that no Default or Event of
Default shall have occurred or be continuing or, if so, specifying in such
certificate all such Defaults and Events of Default, and setting forth
computations in reasonable detail demonstrating compliance with Sections 8.1 and
8.9.
(d) Prompt notice upon the Borrower becoming aware of any change
in a Pricing Level;
(e) Promptly upon becoming available, copies of all regular or
periodic reports (including current reports on Form 8-K) which the Borrower or
any Subsidiary may now or hereafter be required to file with or deliver to the
Securities and Exchange Commission, or any other Governmental Authority
succeeding to the functions thereof, and copies of all material news releases
sent to all stockholders;
(f) Prompt written notice of: (i) any citation, summons, subpoena,
order to show cause or other order naming the Borrower or any Subsidiary a party
to any proceeding before any Governmental Authority which could reasonably be
expected to have a Material Adverse effect, and include with such notice a copy
of such citation, summons, subpoena, order to show cause or other order, (ii)
any lapse or other termination of any license, permit, franchise or other
authorization issued to the Borrower or any Subsidiary by any Governmental
Authority, (iii) any refusal by any Governmental Authority to renew or extend
any license, permit, franchise or other authorization, and (iv) any dispute
between the Borrower or any Subsidiary and any Governmental Authority, which
lapse, termination, refusal or dispute, referred to in clause (ii), (iii) or
(iv) above, could reasonably be expected to have a Material Adverse effect;
(g) Prompt written notice of the occurrence of (i) each Default,
(ii) each Event of Default and (iii) each Material Adverse change;
(h) Promptly upon receipt thereof, copies of any audit reports
delivered in connection with the statements referred to in Section 7.7(a);
(i) From time to time, such other information regarding the
financial position or business of the Borrower and the Subsidiaries as the
Administrative Agent, at the request of any Lender, may reasonably request; and
(j) Prompt written notice of such other information with
documentation required by bank regulatory authorities under applicable "know
your customer" and Anti-Money Laundering rules and regulations (including,
without limitation, the USA Patriot Act), as from time to time may be reasonably
requested by the Administrative Agent or any Lender.
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7.8 RECORDS
Upon reasonable notice and during normal business hours, permit
representatives of the Administrative Agent and each Lender to visit the offices
of the Borrower and each Subsidiary, to examine the books and records (other
than tax returns and work papers related to tax returns) thereof and auditors'
reports relating thereto, to discuss the affairs of the Borrower and each
Subsidiary with the respective officers thereof, and to meet and discuss the
affairs of the Borrower and each Subsidiary with the Borrower's auditors.
7.9 AUTHORIZATIONS
Maintain and cause each Subsidiary to maintain, in full force and
effect, all copyrights, patents, trademarks, trade names, franchises, licenses,
permits, applications, reports, and other authorizations and rights, which, if
not so maintained, would individually or in the aggregate have a Material
Adverse effect.
7.10 EXISTING FIVE YEAR CREDIT AGREEMENT
Cause all Existing Five Year Bank Indebtedness to have been paid in
full, cause the commitments under the Existing Five Year Credit Agreement to
have been terminated and deliver satisfactory evidence of the foregoing to the
Administrative Agent on or before September 30, 2004 if the Eckerd Acquisition
shall not close on or before September 30, 2004.
8. NEGATIVE COVENANTS
The Borrower covenants and agrees that on and after the Effective
Date and until the later to occur of (a) the Commitment Termination Date and (b)
the payment in full of the Loans, the Fees and all other sums which are payable
under the Loan Documents, the Borrower will not:
8.1 SUBSIDIARY INDEBTEDNESS
Permit the Indebtedness of all Subsidiaries (excluding the ESOP
Guaranty) to exceed (on a combined basis) 10% of Tangible Net Worth.
8.2 LIENS
Create, incur, assume or suffer to exist any Lien against or on any
Property now owned or hereafter acquired by the Borrower or any of the
Subsidiaries, or permit any of the Subsidiaries so to do, except any one or more
of the following types of Liens: (a) Liens in connection with workers'
compensation, unemployment insurance or other social security obligations (which
phrase shall not be construed to refer to ERISA or the minimum funding
obligations under Section 412 of the Code), (b) Liens to secure the performance
of bids, tenders, letters of credit, contracts (other than contracts for the
payment of Indebtedness), leases, statutory obligations, surety, customs,
appeal, performance and payment bonds and other obligations of like nature, in
each such case arising in the ordinary course of business, (c) mechanics',
workmen's, carriers', warehousemen's, materialmen's, landlords' or other like
Liens arising in the ordinary course of business with respect to obligations
which are not due or which are being contested in
39
good faith and by appropriate proceedings diligently conducted, (d) Liens for
taxes, assessments, fees or governmental charges the payment of which is not
required by Section 7.2, (e) easements, rights of way, restrictions, leases of
Property to others, easements for installations of public utilities, title
imperfections and restrictions, zoning ordinances and other similar encumbrances
affecting Property which in the aggregate do not materially impair its use for
the operation of the business of the Borrower or such Subsidiary, (f) Liens on
Property of the Subsidiaries under capital leases and Liens on Property of the
Subsidiaries acquired (whether as a result of purchase, capital lease, merger or
other acquisition) and either existing on such Property when acquired, or
created contemporaneously with or within 12 months of such acquisition to secure
the payment or financing of the purchase price of such Property (including the
construction, development, substantial repair, alteration or improvement
thereof), and any renewals thereof, PROVIDED that such Liens attach only to the
Property so purchased or acquired (including any such construction, development,
substantial repair, alteration or improvement thereof) and PROVIDED FURTHER that
the Indebtedness secured by such Liens is permitted by Section 8.1, (g)
statutory Liens in favor of lessors arising in connection with Property leased
to the Borrower or any of the Subsidiaries, (h) Liens of attachments, judgments
or awards against the Borrower or any of the Subsidiaries with respect to which
an appeal or proceeding for review shall be pending or a stay of execution or
bond shall have been obtained, or which are otherwise being contested in good
faith and by appropriate proceedings diligently conducted, and in respect of
which adequate reserves shall have been established in accordance with GAAP on
the books of the Borrower or such Subsidiary, (i) Liens securing Indebtedness of
a Subsidiary to the Borrower or another Subsidiary, (j) Liens (other than Liens
permitted by any of the foregoing clauses) arising in the ordinary course of its
business which do not secure Indebtedness and do not, in the aggregate,
materially detract from the value of the business of the Borrower and its
Subsidiaries, taken as a whole, and (k) additional Liens securing Indebtedness
of the Borrower and the Subsidiaries in an aggregate outstanding Consolidated
principal amount not exceeding 10% of Tangible Net Worth.
8.3 DISPOSITIONS
Make any Disposition, or permit any of its Subsidiaries so to do, of
all or substantially all of the assets of the Borrower and the Subsidiaries on a
Consolidated basis.
8.4 MERGER OR CONSOLIDATION, ETC.
The Borrower will not consolidate with, be acquired by, or merge
into or with any Person unless (x) immediately after giving effect thereto no
Default or Event of Default shall or would exist and (y) either (i) the Borrower
or (ii) a corporation organized and existing under the laws of one of the States
of the United States of America shall be the survivor of such consolidation or
merger, PROVIDED that if the Borrower is not the survivor, the corporation which
is the survivor shall expressly assume, pursuant to an instrument executed and
delivered to the Administrative Agent, and in form and substance satisfactory to
the Administrative Agent, all obligations of the Borrower under the Loan
Documents and the Administrative Agent shall have received such documents,
opinions and certificates as it shall have reasonable requested in connection
therewith.
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8.5 ACQUISITIONS
Make any Acquisition, or permit any of the Subsidiaries so to do,
except any one or more of the following: (a) Intercompany Dispositions permitted
by Section 8.3 and (b) Acquisitions by the Borrower or any of the Subsidiaries
(including the Eckerd Acquisition), PROVIDED that immediately before and after
giving effect to each such Acquisition no Default or Event of Default shall or
would exist.
8.6 RESTRICTED PAYMENTS
Make any Restricted Payment or permit any of the Subsidiaries so to
do, except any one or more of the following Restricted Payments: (a) any direct
or indirect Subsidiary may make dividends or other distributions to the Borrower
or to any other direct or indirect Subsidiary, and (b) the Borrower may make
Restricted Payments, PROVIDED that, in the case of this clause (b), immediately
before and after giving effect thereto, no Event of Default shall or would
exist. Nothing in this Section 8.6 shall prohibit or restrict the declaration or
payment of dividends in respect of the Series One ESOP Convertible Preferred
Stock of the Borrower.
8.7 LIMITATION ON UPSTREAM DIVIDENDS BY SUBSIDIARIES
Permit or cause any of the Subsidiaries to enter into or agree, or
otherwise be or become subject, to any agreement, contract or other arrangement
(other than this Agreement) with any Person (each a "RESTRICTIVE AGREEMENT")
pursuant to the terms of which (a) such Subsidiary is or would be prohibited
from declaring or paying any cash dividends on any class of its stock owned
directly or indirectly by the Borrower or any of the other Subsidiaries or from
making any other distribution on account of any class of any such stock (herein
referred to as "UPSTREAM DIVIDENDS"), or (b) the declaration or payment of
Upstream Dividends by a Subsidiary to the Borrower or another Subsidiary, on an
annual or cumulative basis, is or would be otherwise limited or restricted
("DIVIDEND RESTRICTIONS"). Notwithstanding the foregoing, nothing in this
Section 8.7 shall prohibit:
(i) Dividend Restrictions set forth in any Restrictive
Agreement in effect on the date hereof and any extensions, refinancings,
renewals or replacements thereof, PROVIDED that the Dividend Restrictions in any
such extensions, refinancings, renewals or replacements are no less favorable in
any material respect to the Lenders than those Dividend Restrictions that are
then in effect and that are being extended, refinanced, renewed or replaced;
(ii) Dividend Restrictions existing with respect to any
Person acquired by the Borrower or any Subsidiary and existing at the time of
such acquisition, which Dividend Restrictions are not applicable to any Person
or the property or assets of any Person other than such Person or its property
or assets acquired, and any extensions, refinancings, renewals or replacements
of any of the foregoing, PROVIDED that the Dividend Restrictions in any such
extensions, refinancings, renewals or replacements are no less favorable in any
material respect to the Lenders than those Dividend Restrictions that are then
in effect and that are being extended, refinanced, renewed or replaced;
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(iii) Dividend Restrictions consisting of customary net worth,
leverage and other financial covenants, customary covenants regarding the merger
of or sale of assets of a Subsidiary, customary restrictions on transactions
with affiliates, and customary subordination provisions governing Indebtedness
owed to the Borrower or any Subsidiary, in each case contained in, or required
by, any agreement governing Indebtedness incurred by a Subsidiary in accordance
with Section 8.1; or
(iv) Dividend Restrictions contained in any other credit
agreement so long as such Dividend Restrictions are no more restrictive than
those contained in this Agreement (including Dividend Restrictions contained in
the Other Credit Agreement and the Bridge Facility Credit Agreement).
8.8 LIMITATION ON NEGATIVE PLEDGES
Enter into any agreement, other than (i) this Agreement, (ii) the
Other Credit Agreement, (iii) the Bridge Facility Credit Agreement, (iv) any
other credit agreement that is substantially similar to this Agreement, and (v)
purchase money mortgages or capital leases permitted by this Agreement (in which
cases, any prohibition or limitation shall only be effective against the assets
financed thereby), or permit any Subsidiary so to do, which prohibits or limits
the ability of the Borrower or such Subsidiary to create, incur, assume or
suffer to exist any Lien upon any of its Property or revenues, whether now owned
or hereafter acquired to secure the obligations of the Borrower hereunder.
8.9 RATIO OF CONSOLIDATED INDEBTEDNESS TO TOTAL CAPITALIZATION
Permit its ratio of Consolidated Indebtedness to Total
Capitalization at the end of any fiscal quarter to exceed 0.6 : 1.0.
9. DEFAULT
9.1 EVENTS OF DEFAULT
The following shall each constitute an "EVENT OF DEFAULT" hereunder:
(a) The failure of the Borrower to make any payment of principal
on any Loan when due and payable; or
(b) The failure of the Borrower to make any payment of interest on
any Loan or of any Fee on any date when due and payable and such default shall
continue unremedied for a period of 5 Domestic Business Days after the same
shall be due and payable; or
(c) The failure of the Borrower to observe or perform any covenant
or agreement contained in Sections 2.5, 7.1 or 7.10 or in Section 8; or
(d) The failure of the Borrower to observe or perform any other
covenant or agreement contained in this Agreement, and such failure shall have
continued unremedied for a period of 30 days after the Borrower shall have
become aware of such failure; or
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(e) [INTENTIONALLY OMITTED]
(f) Any representation or warranty of the Borrower (or of any of
its officers on its behalf) made in any Loan Document, or made in any
certificate, report, opinion (other than an opinion of counsel) or other
document delivered on or after the date hereof shall in any such case prove to
have been incorrect or misleading (whether because of misstatement or omission)
in any material respect when made; or
(g) (i) Obligations in an aggregate Consolidated amount in excess
of $25,000,000 of the Borrower (other than its obligations hereunder and under
the Notes) and the Subsidiaries, whether as principal, guarantor, surety or
other obligor, for the payment of any Indebtedness or any net liability under
interest rate swap, collar, exchange or cap agreements, (A) shall become or
shall be declared to be due and payable prior to the expressed maturity thereof,
or (B) shall not be paid when due or within any grace period for the payment
thereof, or (ii) any holder of any such obligations shall have the right to
declare the Indebtedness evidenced thereby due and payable prior to its stated
maturity; or
(h) An involuntary proceeding shall be commenced or an involuntary
petition shall be filed seeking (i) liquidation, reorganization or other relief
in respect of the Borrower or any Subsidiary or its debts, or of a substantial
part of its assets, under any federal, state or foreign bankruptcy, insolvency,
receivership or similar law now or hereafter in effect or (ii) the appointment
of a receiver, trustee, custodian, sequestrator, conservator or similar official
for the Borrower or any Subsidiary or for a substantial part of its assets, and,
in any such case, such proceeding or petition shall continue undismissed for 60
days or an order or decree approving or ordering any of the foregoing shall be
entered; or
(i) The Borrower or any Subsidiary shall (i) voluntarily commence
any proceeding or file any petition seeking liquidation, reorganization or other
relief under any federal, state or foreign bankruptcy, insolvency, receivership
or similar law now or hereafter in effect, (ii) consent to the institution of,
or fail to contest in a timely and appropriate manner, any proceeding or
petition described in clause (h) of this Article, (iii) apply for or consent to
the appointment of a receiver, trustee, custodian, sequestrator, conservator or
similar official for the Borrower or any Subsidiary or for a substantial part of
its assets, (iv) file an answer admitting the material allegations of a petition
filed against it in any such proceeding, (v) make a general assignment for the
benefit of creditors or (vi) take any action for the purpose of effecting any of
the foregoing; or
(j) The Borrower or any Subsidiary shall (i) suspend or
discontinue its business (except for store closings in the ordinary course of
business and except in connection with a permitted Disposition under Section 8.3
and as may otherwise be expressly permitted herein), or (ii) generally not be
paying its debts as such debts become due, or (iii) admit in writing its
inability to pay its debts as they become due; or
(k) Judgments or decrees in an aggregate Consolidated amount in
excess of $25,000,000 against the Borrower and the Subsidiaries shall remain
unpaid, unstayed on appeal, undischarged, unbonded or undismissed for a period
of 60 days during which execution shall not
43
be effectively stayed, or any action shall be legally taken by a judgment
creditor to attach or levy upon any assets of the Borrower or any Subsidiary to
enforce any such judgment; or
(l) After the Effective Date a Change of Control shall occur; or
(m) (i) Any Termination Event shall occur (x) with respect to any
Pension Plan (other than a Multiemployer Plan) or (y) with respect to any other
retirement plan subject to Section 302 of ERISA or Section 412 of the Internal
Revenue Code, which plan, during the five year period prior to such Termination
Event, was the responsibility in whole or in part of the Borrower, any
Subsidiary or any ERISA Affiliate, PROVIDED that this clause (y) shall only
apply if, in connection with such Termination Event, it is reasonably likely
that liability in an aggregate Consolidated amount in excess of $25,000,000 will
be imposed upon the Borrower, any Subsidiary or any ERISA Affiliate; (ii) any
Accumulated Funding Deficiency, whether or not waived, in an aggregate
Consolidated amount in excess of $25,000,000 shall exist with respect to any
Pension Plan (other than that portion of a Multiemployer Plan's Accumulated
Funding Deficiency to the extent such Accumulated Funding Deficiency is
attributable to employers other than Borrower, any Subsidiary or any ERISA
Affiliate); (iii) any Person shall engage in any Prohibited Transaction
involving any Employee Benefit Plan; (iv) the Borrower, any Subsidiary or any
ERISA Affiliate shall fail to pay when due an amount which is payable by it to
the PBGC or to a Pension Plan (including a Multiemployer Plan) under Title IV of
ERISA; (v) the imposition of any tax under Section 4980(B)(a) of the Internal
Revenue Code; or (vi) the assessment of a civil penalty with respect to any
Employee Benefit Plan under Section 502(c) of ERISA; in each case, to the extent
such event or condition would have a Material Adverse effect.
9.2 REMEDIES
(a) Upon the occurrence of an Event of Default or at any time
thereafter during the continuance of an Event of Default, the Administrative
Agent, at the written request of the Required Lenders, shall notify the Borrower
that the Commitments have been terminated and/or that all of the Loans and the
Notes and all accrued and unpaid interest on any thereof and all other amounts
owing under the Loan Documents have been declared immediately due and payable,
PROVIDED that upon the occurrence of an Event of Default under Section 9.1(h),
(i) or (j) with respect to the Borrower, the Commitments shall automatically
terminate and all of the Loans and the Notes and all accrued and unpaid interest
on any thereof and all other amounts owing under the Loan Documents shall become
immediately due and payable without declaration or notice to the Borrower. To
the fullest extent not prohibited by law, except for the notice provided for in
the preceding sentence, the Borrower expressly waives any presentment, demand,
protest, notice of protest or other notice of any kind in connection with the
Loan Documents and its obligations thereunder. To the fullest extent not
prohibited by law, the Borrower further expressly waives and covenants not to
assert any appraisement, valuation, stay, extension, redemption or similar law,
now or at any time hereafter in force which might delay, prevent or otherwise
impede the performance or enforcement of the Loan Documents.
(b) In the event that the Commitments shall have been terminated
or all of the Loans and the Notes shall have been declared due and payable
pursuant to the provisions of this Section, the Administrative Agent and the
Lenders agree, among themselves, that any funds
44
received from or on behalf of the Borrower under any Loan Document by any Lender
(except funds received by any Lender as a result of a purchase from such Lender
pursuant to the provisions of Section 11.9(b)) shall be remitted to the
Administrative Agent, and shall be applied by the Administrative Agent in
payment of the Loans and the other obligations of the Borrower under the Loan
Documents in the following manner and order: (1) first, to reimburse the
Administrative Agent and the Lenders, in that order, for any expenses due from
the Borrower pursuant to the provisions of Section 11.5, (2) second, to the
payment of the Fees, (3) third, to the payment of any expenses or amounts (other
than the principal of and interest on the Loans and the Notes) payable by the
Borrower to the Administrative Agent or any of the Lenders under the Loan
Documents, (4) fourth, to the payment, pro rata according to the outstanding
principal balance of the Loans of each Lender, of interest due on the Loans, (5)
fifth, to the payment, pro rata according to the outstanding principal balance
of the Loans of each Lender, of the aggregate outstanding principal balance of
the Loans, and (6) sixth, any remaining funds shall be paid to whosoever shall
be entitled thereto or as a court of competent jurisdiction shall direct.
(c) In the event that the Loans and the Notes shall have been
declared due and payable pursuant to the provisions of this Section 9.2, the
Administrative Agent upon the written request of the Required Lenders, shall
proceed to enforce the rights of the holders of the Loans and the Notes by suit
in equity, action at law and/or other appropriate proceedings, whether for
payment or the specific performance of any covenant or agreement contained in
the Loan Documents. In the event that the Administrative Agent shall fail or
refuse so to proceed, each Lender shall be entitled to take such action as the
Required Lenders shall deem appropriate to enforce its rights under the Loan
Documents.
10. AGENT
10.1 APPOINTMENT
Each Lender hereby irrevocably designates and appoints BNY as the
Administrative Agent of such Lender under the Loan Documents and each Lender
irrevocably authorizes the Administrative Agent to take such action on its
behalf under the provisions of the Loan Documents and to exercise such powers
and perform such duties as are expressly delegated to the Administrative Agent
by the terms of the Loan Documents, together with such other powers as are
reasonably incidental thereto. Notwithstanding any provision to the contrary
contained in the Loan Documents, the Administrative Agent shall not have any
duties or responsibilities except those expressly set forth in the Loan
Documents, or any fiduciary relationship with any Lender, and no implied
covenants, functions, responsibilities, duties, obligations or liabilities shall
be read into the Loan Documents or otherwise exist against the Administrative
Agent.
10.2 DELEGATION OF DUTIES
The Administrative Agent may execute any of its duties under the
Loan Documents by or through agents or attorneys-in-fact and shall be entitled
to rely upon the advice of counsel concerning all matters pertaining to such
duties, and shall not be liable for any action taken or omitted to be taken in
good faith upon the advice of such counsel.
45
10.3 EXCULPATORY PROVISIONS
None of the Administrative Agent or any of its officers, directors,
employees, agents, attorneys-in-fact or Affiliates shall be (i) liable for any
action lawfully taken or omitted to be taken by the Administrative Agent or such
Person under or in connection with the Loan Documents (except the Administrative
Agent for its own gross negligence or willful misconduct), or (ii) responsible
in any manner to any of the Lenders for any recitals, statements,
representations or warranties made by any party contained in the Loan Documents
or in any certificate, report, statement or other document referred to or
provided for in, or received by the Administrative Agent under or in connection
with, the Loan Documents or for the value, validity, effectiveness, genuineness,
enforceability or sufficiency of any of the Loan Documents or for any failure of
the Borrower or any other Person to perform its obligations thereunder. The
Administrative Agent shall not be under any obligation to any Lender to
ascertain or to inquire into the observance or performance of any of the
covenants or agreements contained in, or conditions of, the Loan Documents, or
to inspect the Property, books or records of the Borrower or any Subsidiary. The
Administrative Agent shall not be under any liability or responsibility to the
Borrower or any other Person as a consequence of any failure or delay in
performance, or any breach, by any Lender of any of its obligations under any of
the Loan Documents. The Lenders acknowledge that the Administrative Agent shall
not be under any duty to take any discretionary action permitted under the Loan
Documents unless the Administrative Agent shall be requested in writing to do so
by the Required Lenders.
10.4 RELIANCE BY ADMINISTRATIVE AGENT
The Administrative Agent shall be entitled to rely, and shall be
fully protected in relying, upon any writing, resolution, notice, request,
consent, certificate, affidavit, opinion, letter, cablegram, telegram, fax,
telex or teletype message, statement, order or other document or conversation
reasonably believed by it to be genuine and correct and to have been signed,
sent or made by the proper Person or Persons and upon advice and statements of
legal counsel (including counsel to the Borrower), independent accountants and
other experts selected by the Administrative Agent. The Administrative Agent
shall not be under any duty to examine or pass upon the validity, effectiveness
or genuineness of the Loan Documents or any instrument, document or
communication furnished pursuant thereto or in connection therewith, and the
Administrative Agent shall be entitled to assume that the same are valid,
effective and genuine, have been signed or sent by the proper parties and are
what they purport to be. The Administrative Agent shall be fully justified in
failing or refusing to take any action not expressly required under the Loan
Documents unless it shall first receive such advice or concurrence of the
Required Lenders as it deems appropriate. The Administrative Agent shall in all
cases be fully protected in acting, or in refraining from acting, under the Loan
Documents in accordance with a request of the Required Lenders or, if required
by Section 11.1, all Lenders, and such request and any action taken or failure
to act pursuant thereto shall be binding upon the Borrower, all the Lenders and
all future holders of the Notes.
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10.5 NOTICE OF DEFAULT
The Administrative Agent shall not be deemed to have knowledge or
notice of the occurrence of any Default or Event of Default unless the
Administrative Agent shall have received written notice thereof from a Lender or
the Borrower referring to this Agreement, describing such Default or Event of
Default and stating such notice is a "Notice of Default." In the event that the
Administrative Agent receives such a notice, the Administrative Agent shall
promptly give notice thereof to the Lenders. The Administrative Agent shall take
such action with respect to such Default or Event of Default as shall be
reasonably directed by the Required Lenders, PROVIDED that unless and until the
Administrative Agent shall have received such directions, the Administrative
Agent may (but shall not be obligated to) take such action or give such
directions, or refrain from taking such action or giving such directions, with
respect to such Default or Event of Default as it shall deem to be in the best
interests of the Lenders.
10.6 NON-RELIANCE
Each Lender expressly acknowledges that neither the Administrative
Agent nor any of its officers, directors, employees, agents, attorneys-in-fact
or Affiliates has made any representations or warranties to such Lender and that
no act by the Administrative Agent hereafter, including any review of the
affairs of the Borrower or the Subsidiaries, shall be deemed to constitute any
representation or warranty by the Administrative Agent to any Lender. Each
Lender represents to the Administrative Agent that such Lender has,
independently and without reliance upon the Administrative Agent or any other
Lender, and based on such documents and information as it has deemed
appropriate, made its own evaluation of and investigation into the business,
operations, Property, financial and other condition and creditworthiness of the
Borrower and the Subsidiaries and has made its own decision to enter into this
Agreement. Each Lender also represents that it will, independently and without
reliance upon the Administrative Agent or any other Lender, and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit analysis, evaluations and decisions in taking or not taking
action under the Loan Documents, and to make such investigation as it deems
necessary to inform itself as to the business, operations, Property, financial
and other condition and creditworthiness of the Borrower and the Subsidiaries.
Each Lender acknowledges that a copy of this Agreement and all exhibits and
schedules hereto have been made available to it and its individual counsel for
review, and each Lender acknowledges that it is satisfied with the form and
substance thereof. Except for notices, reports and other documents expressly
required to be furnished to the Lenders by the Administrative Agent hereunder,
the Administrative Agent shall have no duty or responsibility to provide any
Lender with any credit or other information concerning the business, operations,
Property, financial and other condition or creditworthiness of the Borrower or
the Subsidiaries which may come into the possession of the Administrative Agent
or any of its officers, directors, employees, agents, attorneys-in-fact or
Affiliates.
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10.7 [INTENTIONALLY OMITTED]
10.8 ADMINISTRATIVE AGENT IN ITS INDIVIDUAL CAPACITY
BNY and each Affiliate thereof, may make loans to, accept deposits
from, issue letters of credit for the account of and generally engage in any
kind of business with the Borrower and the Subsidiaries as though it were not
the Administrative Agent. With respect to the Commitment made or renewed by BNY
and each Note issued to BNY (if any), BNY shall have the same rights and powers
under the Loan Documents as any Lender and may exercise the same as though it
were not the Administrative Agent, and the term "Lender" shall include BNY.
10.9 SUCCESSOR ADMINISTRATIVE AGENT
If at any time the Administrative Agent deems it advisable, in its
sole discretion, it may submit to each Lender a written notification of its
resignation as Administrative Agent under the Loan Documents, such resignation
to be effective on the earlier to occur of (a) the thirtieth day after the date
of such notice, and (b) the date upon which any successor to the Administrative
Agent, in accordance with the provisions of this Section, shall have accepted in
writing its appointment as successor Administrative Agent. Upon any such
resignation, the Required Lenders shall have the right to appoint from among the
Lenders a successor Administrative Agent, which successor Administrative Agent,
PROVIDED that no Default or Event of Default shall then exist, shall be
reasonably satisfactory to the Borrower. If no such successor Administrative
Agent shall have been so appointed by the Required Lenders and accepted such
appointment within 30 days after the retiring Administrative Agent's giving of
notice of resignation, then the retiring Administrative Agent may, on behalf of
the Lenders, appoint a successor Administrative Agent, which successor
Administrative Agent shall be a commercial bank organized or licensed under the
laws of the United States of America or of any State thereof and having a
combined capital and surplus of at least $500,000,000. Upon the written
acceptance of any appointment as Administrative Agent hereunder by a successor
Administrative Agent, such successor Administrative Agent shall automatically
become a party to this Agreement and shall thereupon succeed to and become
vested with all the rights, powers, privileges and duties of the retiring
Administrative Agent, and the retiring Administrative Agent's rights, powers,
privileges and duties as Administrative Agent under the Loan Documents shall be
terminated. The Borrower and the Lenders shall execute such documents as shall
be necessary to effect such appointment. After any retiring Administrative
Agent's resignation as Administrative Agent, the provisions of this Section 10
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was the Administrative Agent. If at any time there shall not be a duly
appointed and acting Administrative Agent, upon notice duly given, the Borrower
agrees to make each payment when due under the Loan Documents directly to the
Lenders entitled thereto during such time.
10.10 CO-SYNDICATION AGENTS AND DOCUMENTATION AGENT
The Co-Syndication Agents and the Documentation Agent shall have no
duties or obligations under the Loan Documents in their capacities as
Co-Syndication Agents or Documentation Agent, respectively.
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11. OTHER PROVISIONS
11.1 AMENDMENTS, WAIVERS, ETC.
With the written consent of the Required Lenders, the Administrative
Agent and the Borrower may, from time to time, enter into written amendments,
supplements or modifications of the Loan Documents and, with the written consent
of the Required Lenders, the Administrative Agent on behalf of the Lenders may
execute and deliver to any such parties a written instrument waiving or
consenting to the departure from, on such terms and conditions as the
Administrative Agent may specify in such instrument, any of the requirements of
the Loan Documents or any Default or Event of Default and its consequences,
PROVIDED that no such amendment, supplement, modification, waiver or consent
shall (i) increase the Commitment Amount of any Lender without the consent of
such Lender (PROVIDED that no waiver of a Default or Event of Default shall be
deemed to constitute such an increase), (ii) extend the Commitment Period
without the consent of each Lender directly affected thereby, (iii) reduce the
amount, or extend the time of payment, of the Fees without the consent of each
Lender directly affected thereby, (iv) reduce the rate, or extend the time of
payment of, interest on any Revolving Credit Loan or any Note (other than the
applicability of any post-default increase in such rate of interest) without the
consent of each Lender directly affected thereby, (v) reduce the amount, or
extend the time of payment of any payment of principal on any Revolving Credit
Loan or any Note without the consent of each Lender directly affected thereby,
(vi) decrease or forgive the principal amount of any Revolving Credit Loan or
any Note without the consent of each Lender directly affected thereby, (vii)
consent to any assignment or delegation by the Borrower of any of its rights or
obligations under any Loan Document without the consent of each Lender, (viii)
change the provisions of this Section 11.1 without the consent of each Lender,
(ix) change the definition of Required Lenders without the consent of each
Lender, (x) change the several nature of the obligations of the Lenders without
the consent of each Lender, or (xi) change the sharing provisions among Lenders
without the consent of each Lender. Notwithstanding the foregoing, no such
amendment, supplement, modification, waiver or consent shall (A) amend, modify
or waive any provision of Section 10 or otherwise change any of the rights or
obligations of the Administrative Agent under any Loan Document without the
written consent of the Administrative Agent or (B) change the amount or the time
of payment of any Competitive Bid Loan or interest thereon without the written
consent of the Lender holding such Competitive Bid Loan. Any such amendment,
supplement, modification, waiver or consent shall apply equally to each of the
Lenders and shall be binding upon the parties to the applicable Loan Document,
the Lenders, the Administrative Agent and all future holders of the Loans and
the Notes. In the case of any waiver, the Borrower, the Lenders and the
Administrative Agent shall be restored to their former position and rights under
the Loan Documents, but any Default or Event of Default waived shall not extend
to any subsequent or other Default or Event of Default, or impair any right
consequent thereon.
11.2 NOTICES
Except in the case of notices and other communications expressly
permitted to be given by telephone, all notices and other communications
provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by
facsimile, as follows:
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IF TO THE BORROWER:
CVS Corporation
0 XXX Xxxxx
Xxxxxxxxxx, Xxxxx Xxxxxx 00000
Attention: Xxxxxx X. Xxxxx,
Senior Vice President and Treasurer
Facsimile: (000) 000-0000
Telephone: (000) 000-0000 (Ext. 3508)
with a copy, in the case of a notice of Default or Event of Default,
to:
CVS Corporation
0 XXX Xxxxx
Xxxxxxxxxx, Xxxxx Xxxxxx 00000
Attention: Legal Department
Facsimile: (000) 000-0000
Telephone: (000) 000-0000
IF TO THE ADMINISTRATIVE AGENT:
in the case of each Borrowing Request, each notice of prepayment
under Section 2.7, each Competitive Bid Request, each Competitive
Bid, and each Competitive Bid Accept/Reject Letter:
The Bank of New York
Xxx Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxxx Xxxxxxxx,
Agency Function Administration
Facsimile: (000) 000-0000, 6366 or 6367
Telephone: (000) 000-0000,
and in all other cases:
The Bank of New York
Retailing Industry Division
0xx Xxxxx
Xxx Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxx Xxxxxxx,
Vice President
Facsimile: (000) 000-0000
Telephone: (212) 000- 0000,
IF TO ANY LENDER: to it at its address (or facsimile number) set forth in
its Administrative Questionnaire.
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Any party hereto may change its address or facsimile number for notices and
other communications hereunder by notice to the other parties hereto (or, in the
case of any Lender, by notice to the Administrative Agent and the Borrower). All
notices and other communications given to any party hereto in accordance with
the provisions of this Agreement shall be deemed to have been given on the date
of receipt. Any party to a Loan Document may rely on signatures of the parties
thereto which are transmitted by fax or other electronic means as fully as if
originally signed.
11.3 NO WAIVER; CUMULATIVE REMEDIES
No failure to exercise and no delay in exercising, on the part of
the Administrative Agent or any Lender, any right, remedy, power or privilege
under any Loan Document shall operate as a waiver thereof, nor shall any single
or partial exercise of any right, remedy, power or privilege under any Loan
Document preclude any other or further exercise thereof or the exercise of any
other right, remedy, power or privilege. The rights, remedies, powers and
privileges under the Loan Documents are cumulative and not exclusive of any
rights, remedies, powers and privileges provided by law.
11.4 SURVIVAL OF REPRESENTATIONS AND WARRANTIES
All representations and warranties made in the Loan Documents and in
any document, certificate or statement delivered pursuant thereto or in
connection therewith shall survive the execution and delivery of the Loan
Documents.
11.5 PAYMENT OF EXPENSES AND TAXES; INDEMNIFIED LIABILITIES
The Borrower agrees, promptly upon presentation of a statement or
invoice therefor setting forth in reasonable detail the items thereof, and
whether any Loan is made, (a) to pay or reimburse the Administrative Agent and
its Affiliates for all its reasonable costs and expenses actually incurred in
connection with the development, syndication, preparation and execution of, and
any amendment, waiver, consent, supplement or modification to, the Loan
Documents, any documents prepared in connection therewith and the consummation
of the transactions contemplated thereby, whether such Loan Documents or any
such amendment, waiver, consent, supplement or modification to the Loan
Documents or any documents prepared in connection therewith are executed and
whether the transactions contemplated thereby are consummated, including the
reasonable fees and disbursements of Special Counsel, (b) to pay, indemnify, and
hold the Administrative Agent and the Lenders harmless from any and all
recording and filing fees and any and all liabilities and penalties with respect
to, or resulting from any delay (other than penalties to the extent attributable
to the negligence of the Administrative Agent or the Lenders, as the case may
be, in failing to pay such fees or other liabilities when due) in paying, stamp,
excise and other similar taxes, if any, which may be payable or determined to be
payable in connection with the execution and delivery of, or consummation of any
of the transactions contemplated by, or any amendment, supplement or
modification of, or any waiver or consent under or in respect of, the Loan
Documents and any such other documents, and (c) to pay, reimburse, indemnify and
hold each Indemnified Person harmless from and against any and all other
liabilities, obligations, claims, losses, damages, penalties, actions,
judgments, suits, costs, expenses and disbursements of any kind
51
or nature whatsoever (including reasonable counsel fees and disbursements of
counsel (including the allocated costs of internal counsel) and such local
counsel as may be required) actually incurred with respect to the enforcement,
performance of, and preservation of rights under, the Loan Documents (all the
foregoing, collectively, the "INDEMNIFIED LIABILITIES") and, if and to the
extent that the foregoing indemnity may be unenforceable for any reason, the
Borrower agrees to make the maximum payment permitted under applicable law,
PROVIDED that the Borrower shall have no obligation hereunder to pay Indemnified
Liabilities to an Indemnified Person to the extent arising from its gross
negligence or willful misconduct. The agreements in this Section shall survive
the termination of the Commitments and the payment of the Loans and the Notes
and all other amounts payable under the Loan Documents.
11.6 LENDING OFFICES
Each Lender shall have the right at any time and from time to time
to transfer any Loan to a different office of such Lender, subject to Section
3.10.
11.7 SUCCESSORS AND ASSIGNS
(a) The provisions of the Loan Documents shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby, except that the Borrower may not assign or otherwise
transfer any of its rights or obligations hereunder without the prior written
consent of each Lender (and any attempted assignment or transfer by the Borrower
without such consent shall be null and void). Nothing in the Loan Documents,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby
and, to the extent expressly contemplated hereby, the Related Parties of each
Credit Party) any legal or equitable right, remedy or claim under or by reason
of any Loan Document.
(b) Any Lender may assign all or a portion of its rights and
obligations under the Loan Documents (including all or a portion of its
Commitment and the applicable Loans at the time owing to it), to an Eligible
Assignee, PROVIDED that (i) except in the case of an assignment to a Lender or
an Affiliate of a Lender, each of the Borrower and the Administrative Agent must
give its prior written consent to such assignment (which consent shall not be
unreasonably withheld or delayed), (ii) except in the case of an assignment to a
Lender or an Affiliate or an Approved Fund of a Lender or an assignment of the
entire remaining amount of the assigning Lender's Commitment, the amount of the
Commitment of the assigning Lender subject to each such assignment (determined
as of the date the Assignment and Acceptance Agreement with respect to such
assignment is delivered to the Administrative Agent) shall not be less than
$5,000,000, unless the Borrower and the Administrative Agent otherwise consent
(which consent shall not be unreasonably withheld or delayed) and shall be for a
pro rata portion of such Lender's Commitment and such Lender's then outstanding
Revolving Loans, (iii) no assignments to the Borrower or any of its Affiliates
shall be permitted (and any attempted assignment or transfer to the Borrower or
any of its Affiliates shall be null and void), (iv) the parties to each
assignment shall execute and deliver to the Administrative Agent an Assignment
and Acceptance Agreement together with, unless otherwise agreed by the
Administrative Agent, a processing and recordation fee of $3,500, and (v) the
assignee, if it shall not be a Lender, shall
52
deliver to the Administrative Agent an Administrative Questionnaire, and
PROVIDED FURTHER that any consent of the Borrower otherwise required under this
subsection shall not be required if an Event of Default has occurred and is
continuing. Subject to acceptance and recording thereof pursuant to subsection
(d) of this Section, from and after the effective date specified in each
Assignment and Acceptance Agreement, the assignee thereunder shall be a party
hereto and, to the extent of the interest assigned by such Assignment and
Acceptance Agreement, have the rights and obligations of a Lender under the Loan
Documents, and the assigning Lender thereunder shall, to the extent of the
interest assigned by such Assignment and Acceptance Agreement, be released from
its obligations under the Loan Documents (and, in the case of an Assignment and
Acceptance Agreement covering all of the assigning Lender's rights and
obligations under the Loan Documents, such Lender shall cease to be a party
hereto but shall continue to be entitled to the benefits of Sections 3.5, 3.6,
3.7, 3.10 and 11.10). Except as otherwise provided under clause (iii) of this
subsection, any assignment or transfer by a Lender of rights or obligations
under the Loan Documents that does not comply with this subsection shall be
treated for purposes of the Loan Documents as a sale by such Lender of a
participation in such rights and obligations in accordance with subsection (e)
of this Section.
(c) The Administrative Agent, acting for this purpose as an agent
of the Borrower, shall maintain a copy of each Assignment and Acceptance
Agreement delivered to it and a register for the recordation of the names and
addresses of the Lenders, and the Commitments of, and principal amount of the
Loans owing to, each Lender pursuant to the terms hereof from time to time (the
"REGISTER"). The entries in the Register shall be conclusive absent clearly
demonstrable error, and the Borrower and each Credit Party may treat each Person
whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the
contrary. The Register shall be available for inspection by the Borrower and any
Credit Party, at any reasonable time and from time to time upon reasonable prior
notice.
(d) Upon its receipt of a duly completed Assignment and Acceptance
Agreement executed by an assigning Lender and an assignee, the assignee's
completed Administrative Questionnaire (unless the assignee shall already be a
Lender hereunder), the processing and recordation fee referred to in subsection
(b) of this Section and any written consent to such assignment required by
subsection (b) of this Section, the Administrative Agent shall accept such
Assignment and Acceptance Agreement and record the information contained therein
in the Register. No assignment shall be effective for purposes of this Agreement
unless it has been recorded in the Register as provided in this subsection.
(e) Any Lender may, without the consent of the Borrower or any
Credit Party, sell participations to Eligible Assignees (each a "PARTICIPANT")
in all or a portion of such Lender's rights and obligations under the Loan
Documents (including all or a portion of its Commitments and outstanding Loans
owing to it), PROVIDED that (i) such Lender's obligations under the Loan
Documents shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations,
(iii) the Loan Parties and the Credit Parties shall continue to deal solely and
directly with such Lender in connection with such Lender's rights and
obligations under the Loan Documents and (iv) no participations to the Borrower
or any of its Affiliates shall be permitted (and any attempted
53
participation to the Borrower or any of its Affiliates shall be null and void).
Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce the Loan Documents and to approve any amendment, modification or waiver
of any provision of any Loan Documents, PROVIDED that such agreement or
instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, modification or waiver described in the
proviso to Section 11.1 that affects such Participant. Subject to subsection (f)
of this Section, the Borrower agrees that each Participant shall be entitled to
the benefits of Sections 3.5, 3.6, 3.7 and 3.10 to the same extent as if it were
a Lender and had acquired its interest by assignment pursuant to subsection (b)
of this Section. To the extent permitted by law, each Participant also shall be
entitled to the benefits of Section 10.8 as though it were a Lender, PROVIDED
that such Participant agrees to be subject to Section 2.10(c) as though it were
a Lender.
(f) A Participant shall not be entitled to receive any greater
payment under Section 3.6, 3.7 or 3.10 than the Lender that sold the
participation to such Participant would have been entitled to receive with
respect to the interest in the Loan Documents subject to the participation sold
to such Participant, unless the sale of the participation to such Participant is
made with the Borrower's prior written consent. A Participant that would be a
Foreign Lender if it were a Lender shall not be entitled to the benefits of
Section 3.10 unless the Borrower is notified of the participation sold to such
Participant and such Participant agrees, for the benefit of the Borrower, to
comply with Section 3.10(b) as though it were a Lender.
(g) Any Lender may at any time pledge or assign a security
interest in all or any portion of its rights under the Loan Documents to secure
obligations of such Lender, including any pledge or assignment to secure
obligations to a Federal Reserve Bank, and this Section shall not apply to any
such pledge or assignment of a security interest, PROVIDED that no such pledge
or assignment of a security interest shall release a Lender from any of its
obligations under the Loan Documents or substitute any such pledgee or assignee
for such Lender as a party hereto.
(h) Notwithstanding anything to the contrary contained herein, any
Lender (a "GRANTING LENDER") may grant to an Eligible SPC the option to fund all
or any part of any Loan that such Granting Lender would otherwise be obligated
to fund pursuant to this Agreement, PROVIDED that (i) such designation shall not
be effective unless the Borrower consents thereto (which consent shall not be
unreasonably withheld), (ii) nothing herein shall constitute a commitment by any
Eligible SPC to fund any Loan, and (iii) if an Eligible SPC elects not to
exercise such option or otherwise fails to fund all or any part of such Loan,
the Granting Lender shall be obligated to fund such Loan pursuant to the terms
hereof. The funding of a Loan by an Eligible SPC hereunder shall utilize the
Commitment of the Granting Lender to the same extent, and as if, such Loan were
funded by such Granting Lender. As to any Loans or portion thereof made by it,
each Eligible SPC shall have all the rights that a Lender making such Loans or
portion thereof would have had under this Agreement and otherwise, PROVIDED that
(x) its voting rights under this Agreement shall be exercised solely by its
Granting Lender and (y) its Granting Lender shall remain solely responsible to
the other parties hereto for the performance of such Granting Lender's
obligations under this Agreement, including its obligations in respect of the
Loans or portion thereof made by it. Each Granting Lender shall act as
administrative agent for
54
its Eligible SPC and give and receive notices and other communications on its
behalf. Any payments for the account of any Eligible SPC shall be paid to its
Granting Lender as administrative agent for such Eligible SPC and neither the
Borrower nor the Administrative Agent shall be responsible for any Granting
Lender's application of such payments. Each party hereto hereby agrees that no
Eligible SPC shall be liable for any indemnity or payment under this Agreement
for which a Lender would otherwise be liable for so long as, and to the extent,
the Granting Lender provides such indemnity or makes such payment.
Notwithstanding anything to the contrary contained in this Agreement, any
Eligible SPC may (i) at any time, subject to payment of the processing and
recordation fee referred to in Section 11.7(b), assign all or a portion of its
interests in any Loans to its Granting Lender (but nothing contained herein
shall be construed in derogation of the obligation of the Granting Lender to
make Loans hereunder) or to any financial institutions providing liquidity
and/or credit support to or for the account of such Eligible SPC to support the
funding or maintenance of Loans, and (ii) disclose on a confidential basis any
non-public information relating to its funding of Loans to any rating agency,
commercial paper dealer or provider of any surety or guarantee or credit or
liquidity enhancements to such Eligible SPC. This Section may not be amended
without the prior written consent of each Granting Lender, all or any part of
whose Loans is being funded by an Eligible SPC at the time of such amendment.
11.8 COUNTERPARTS
Each of the Loan Documents (other than the Notes) may be executed on
any number of separate counterparts and all of said counterparts taken together
shall be deemed to constitute one and the same agreement. It shall not be
necessary in making proof of any Loan Document to produce or account for more
than one counterpart signed by the party to be charged. A set of the copies of
this Agreement signed by all of the parties hereto shall be lodged with each of
the Borrower and the Administrative Agent. Any party to a Loan Document may rely
upon the signatures of any other party thereto which are transmitted by fax or
other electronic means to the same extent as if originally signed.
11.9 SET-OFF AND SHARING OF PAYMENTS
(a) In addition to any rights and remedies of the Lenders provided
by law, upon the occurrence of an Event of Default under Section 9.1(a) or (b)
or upon the acceleration of the Loans, each Lender shall have the right, without
prior notice to the Borrower, any such notice being expressly waived by the
Borrower, to set-off and apply against any indebtedness or other liability,
whether matured or unmatured, of the Borrower to such Lender arising under the
Loan Documents, any amount owing from such Lender to the Borrower. To the extent
permitted by applicable law, the aforesaid right of set-off may be exercised by
such Lender against the Borrower or against any trustee in bankruptcy,
custodian, debtor in possession, assignee for the benefit of creditors,
receiver, or execution, judgment or attachment creditor of the Borrower, or
against anyone else claiming through or against the Borrower or such trustee in
bankruptcy, custodian, debtor in possession, assignee for the benefit of
creditors, receivers, or execution, judgment or attachment creditor,
notwithstanding the fact that such right of set-off shall not have been
exercised by such Lender prior to the making, filing or issuance of, service
upon such Lender of, or notice to such Lender of, any petition, assignment for
the benefit of creditors,
55
appointment or application for the appointment of a receiver, or issuance of
execution, subpoena, order or warrant. Each Lender agrees promptly to notify the
Borrower and the Administrative Agent after each such set-off and application
made by such Lender, PROVIDED that the failure to give such notice shall not
affect the validity of such set-off and application.
(b) If any Lender (each a "BENEFITED LENDER") shall obtain any
payment (whether voluntary, involuntary, through the exercise of any right of
set-off, or otherwise) on account of its Loans or its Notes in excess of its pro
rata share (in accordance with the outstanding principal balance of all Loans)
of payments then due and payable on account of the Loans and Notes received by
all the Lenders, such Lender shall forthwith purchase, without recourse, for
cash, from the other Lenders such participations in their Loans and Notes as
shall be necessary to cause such purchasing Lender to share the excess payment
with each of them according to their pro rata share (in accordance with the
outstanding principal balance of all Loans), PROVIDED that if all or any portion
of such excess payment is thereafter recovered from such purchasing Lender, such
purchase from each Lender shall be rescinded and each such Lender shall repay to
the purchasing Lender the purchase price to the extent of such recovery,
together with an amount equal to such Lender's pro rata share (according to the
proportion of (i) the amount of such Lender's required repayment to (ii) the
total amount so recovered from the purchasing Lender) of any interest or other
amount paid or payable by the purchasing Lender in respect of the total amount
so recovered. The Borrower agrees, to the fullest extent permitted by law, that
any Lender so purchasing a participation from another Lender pursuant to this
Section may exercise such rights to payment (including the right of set-off)
with respect to such participation as fully as if such Lender were the direct
creditor of the Borrower in the amount of such participation.
11.10 INDEMNITY
(a) The Borrower shall indemnify each Credit Party and each
Related Party thereof (each such Person being called an "INDEMNIFIED PERSON")
against, and hold each Indemnified Person harmless from, any and all losses,
claims, damages, liabilities and related expenses, including the reasonable
fees, charges and disbursements of any counsel for any Indemnified Person,
incurred by or asserted against any Indemnified Person arising out of, in
connection with, or as a result of (i) the execution or delivery of any Loan
Document or any agreement or instrument contemplated thereby, the performance by
the parties to the Loan Documents of their respective obligations thereunder or
the consummation of the transactions contemplated hereby or any other
transactions contemplated thereby (including the Eckerd Acquisition), (ii) any
Loan or the use of the proceeds thereof, (iii) any actual or alleged presence or
release of Hazardous Materials on or from any property owned or operated by the
Borrower or any of the Subsidiaries, or any Environmental Liability related in
any way to the Borrower or any of the Subsidiaries or (iv) any actual or
prospective claim, litigation, investigation or proceeding relating to any of
the foregoing, whether based on contract, tort or any other theory and
regardless of whether any Indemnified Person is a party thereto, PROVIDED that
such indemnity shall not, as to any Indemnified Person, be available to the
extent that such losses, claims, damages, liabilities or related expenses are
determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted primarily from the gross negligence or willful
misconduct of such Indemnified Person. Notwithstanding the above, the Borrower
shall have no
56
liability under clause (i) of this Section to indemnify or hold harmless any
Indemnified Person for any losses, claims, damages, liabilities and related
expenses relating to income or withholding taxes or any tax in lieu of such
taxes.
(b) To the extent that the Borrower fails to promptly pay any
amount required to be paid by it to the Administrative Agent under subsection
(a) of this Section, each Lender severally agrees to pay to the Administrative
Agent an amount equal to the product of such unpaid amount MULTIPLIED BY (i) at
any time when no Loans are outstanding, its Commitment Percentage, or if no
Commitments then exist, its Commitment Percentage on the last day on which
Commitments did exist, and (ii) at any time when Loans are outstanding (x) if
the Commitments then exist, its Commitment Percentage or (y) if the Commitments
have been terminated or otherwise no longer exist, the percentage equal to the
fraction, (A) the numerator of which is the sum of such Lender's Credit Exposure
and (B) the denominator of which is the sum of the Aggregate Credit Exposure (in
each case determined as of the time that the applicable unreimbursed expense or
indemnity payment is sought), PROVIDED that the unreimbursed expense or
indemnified loss, claim, damage, liability or related expense, as applicable,
was incurred by or asserted against the Administrative Agent in its capacity as
such.
(c) The obligations of the Borrower and the Lenders under this
Section 11.10 shall survive the termination of the Commitments and the payment
of the Loans and the Notes and all other amounts payable under the Loan
Documents.
(d) To the extent permitted by applicable law, the Borrower shall
not assert, and hereby waives, any claim against any Indemnified Person, on any
theory of liability, for special, indirect, consequential or punitive damages
(as opposed to direct and actual damages) arising out of, in connection with, or
as a result of, any Loan Document or any agreement, instrument or other document
contemplated thereby, the transactions contemplated hereby or any Loan or the
use of the proceeds thereof.
11.11 GOVERNING LAW
The Loan Documents and the rights and obligations of the parties
thereto shall be governed by, and construed and interpreted in accordance with,
the laws of the State of New York.
11.12 SEVERABILITY
Every provision of the Loan Documents is intended to be severable,
and if any term or provision thereof shall be invalid, illegal or unenforceable
for any reason, the validity, legality and enforceability of the remaining
provisions thereof shall not be affected or impaired thereby, and any
invalidity, illegality or unenforceability in any jurisdiction shall not affect
the validity, legality or enforceability of any such term or provision in any
other jurisdiction.
11.13 INTEGRATION
All exhibits to the Loan Documents shall be deemed to be a part
thereof. Each Loan Document embodies the entire agreement and understanding
between or among the parties thereto
57
with respect to the subject matter thereof and supersedes all prior agreements
and understandings between or among the parties thereto with respect to the
subject matter thereof.
11.14 TREATMENT OF CERTAIN INFORMATION
Each Lender and the Administrative Agent agrees to maintain as
confidential and not to disclose, publish or disseminate to any third parties
any financial or other information relating to the business, operations and
condition, financial or otherwise, of the Borrower provided to it, except if and
to the extent that:
(a) such information is in the public domain at the time of
disclosure;
(b) such information is required to be disclosed by subpoena or
similar process or applicable law or regulations;
(c) such information is required or requested to be disclosed to
any regulatory or administrative body or commission to whose jurisdiction it may
be subject;
(d) such information is disclosed to its counsel, auditors or
other professional advisors;
(e) such information is disclosed to (and, unless and until it
receives written objection from the Borrower, the Borrower shall be deemed to
have consented to disclosure of such information to) its affiliates (and its
affiliates' officers, directors and employees), PROVIDED that such information
shall be used in connection with this Agreement and the transactions
contemplated hereby;
(f) such information is disclosed to its officers, directors and
employees;
(g) such information is disclosed with the prior written consent
of the party furnishing the information;
(h) such information is disclosed in connection with any
litigation or dispute involving the Borrower and/or it;
(i) such information is disclosed in connection with the sale of a
participation or other disposition by it of any of its interest in this
Agreement, PROVIDED that such information shall not be disclosed unless and
until the party to whom it shall be disclosed shall have agreed to keep such
information confidential as set forth herein;
(j) such information was in its possession or in its affiliate's
possession as shown by clear and convincing evidence prior to any of the
Borrower and/or any or the Borrower's representatives or agents furnishing such
information to it; or
(k) such information is received by it, without restriction as to
its disclosure or use, from a Person who, to its knowledge or reasonable belief,
was not prohibited from disclosing such information by any duty of
confidentiality.
58
Except to the extent prohibited or restricted by law or Governmental
Authority, each Lender shall notify the Borrower promptly of any disclosures of
information made by it as permitted pursuant to (h) above.
11.15 ACKNOWLEDGMENTS
The Borrower acknowledges that (a) it has been advised by counsel in
the negotiation, execution and delivery of the Loan Documents, (b) by virtue of
the Loan Documents, neither the Administrative Agent nor any Lender has any
fiduciary relationship to the Borrower, and the relationship between the
Administrative Agent and the Lenders, on the one hand, and the Borrower, on the
other hand, is solely that of debtor and creditor, and (c) by virtue of the Loan
Documents, no joint venture exists among the Lenders or among the Borrower and
the Lenders.
11.16 CONSENT TO JURISDICTION
The Borrower irrevocably submits to the non-exclusive jurisdiction
of any New York State or Federal Court sitting in the City of New York over any
suit, action or proceeding arising out of or relating to the Loan Documents. The
Borrower irrevocably waives, to the fullest extent permitted by law, any
objection which it may now or hereafter have to the laying of the venue of any
such suit, action or proceeding brought in such a court and any claim that any
such suit, action or proceeding brought in such a court has been brought in an
inconvenient forum. The Borrower agrees that a final judgment in any such suit,
action or proceeding brought in such a court, after all appropriate appeals,
shall be conclusive and binding upon it.
11.17 SERVICE OF PROCESS
The Borrower agrees that process may be served against it in any
suit, action or proceeding referred to in Section 11.16 by sending the same by
first class mail, return receipt requested or by overnight courier service, with
receipt acknowledged, to the address of the Borrower set forth in Section 11.2.
The Borrower agrees that any such service (i) shall be deemed in every respect
effective service of process upon it in any such suit, action, or proceeding,
and (ii) shall to the fullest extent enforceable by law, be taken and held to be
valid personal service upon and personal delivery to it.
11.18 NO LIMITATION ON SERVICE OR SUIT
Nothing in the Loan Documents or any modification, waiver, or
amendment thereto shall affect the right of the Administrative Agent or any
Lender to serve process in any manner permitted by law or limit the right of the
Administrative Agent or any Lender to bring proceedings against the Borrower in
the courts of any jurisdiction or jurisdictions.
11.19 WAIVER OF TRIAL BY JURY
THE ADMINISTRATIVE AGENT, THE LENDERS AND THE BORROWER KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY
IN RESPECT OF ANY LITIGATION ARISING OUT OF, UNDER OR IN CONNECTION WITH THE
LOAN DOCUMENTS OR THE TRANSACTIONS
59
CONTEMPLATED THEREBY. FURTHER, THE BORROWER HEREBY CERTIFIES THAT NO
REPRESENTATIVE OR AGENT OF THE ADMINISTRATIVE AGENT OR THE LENDERS, OR COUNSEL
TO THE ADMINISTRATIVE AGENT OR THE LENDERS, HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT THE ADMINISTRATIVE AGENT OR THE LENDERS WOULD NOT, IN THE EVENT
OF SUCH LITIGATION, SEEK TO ENFORCE THIS WAIVER OF RIGHT TO JURY TRIAL
PROVISION. THE BORROWER ACKNOWLEDGES THAT THE ADMINISTRATIVE AGENT AND THE
LENDERS HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, INTER ALIA, THE
PROVISIONS OF THIS SECTION.
11.20 EFFECTIVE DATE
This Agreement shall be effective at such time (the "EFFECTIVE
DATE") as the Administrative Agent shall have received executed counterparts
hereof by the Borrower, the Administrative Agent and each Lender and the
conditions set forth in Sections 5.1 through 5.3 have been or simultaneously
will be satisfied, PROVIDED that this Agreement shall not become effective or be
binding on any party hereto unless all of such conditions are satisfied not
later than June 25, 2004.
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CVS CORPORATION
364 DAY CREDIT AGREEMENT
AS EVIDENCE of the agreement by the parties hereto to the terms and
conditions herein contained, each such party has caused this
364 Day Credit
Agreement to be executed on its behalf.
CVS CORPORATION
By:
---------------------------------------
Name: Xxxxxx X. Xxxxx
Title: Senior Vice President and Treasurer
364 DAY CREDIT AGREEMENT
EXHIBIT A
LIST OF COMMITMENTS
Lender Commitment Amount
----------------------------- ----------------------------
The Bank of New York $ 57,500,000
Bank of America, N.A. $ 55,000,000
Credit Suisse First Boston $ 55,000,000
Wachovia Bank, National Association $ 55,000,000
SunTrust Bank $ 40,000,000
ABN AMRO Bank N.V. $ 40,000,000
Keybank National Association $ 32,500,000
HSBC Bank USA $ 32,500,000
Branch Banking and Trust Company $ 22,500,000
Comerica Bank $ 22,500,000
Xxxxx Fargo Bank, National Association $ 22,500,000
Barclays Bank PLC $ 22,500,000
Sumitomo Mitsui Banking Corp., New York $ 22,500,000
US Bank, National Association $ 22,500,000
Manufacturers and Traders Trust Company $ 15,000,000
Fifth Third Bank $ 15,000,000
Sovereign Bank $ 15,000,000
Union Bank of California, N.A. $ 15,000,000
Regions Bank $ 12,500,000
Mellon Bank, N.A. $ 12,500,000
Union Planters Bank, NA $ 12,500,000
Citizens Bank of Rhode Island $ 12,500,000
PNC Bank, National Association $ 12,500,000
The Northern Trust Company $ 12,500,000
National City Bank $ 12,500,000
Bank One $ 12,500,000
UMB Bank, N.A. $ 7,500,000
Hibernia National Bank $ 5,000,000
----------------------------
TOTAL $ 675,000,000
364 DAY CREDIT AGREEMENT
EXHIBIT B
FORM OF NOTE
June 11, 2004
New York, New York
FOR VALUE RECEIVED, the undersigned,
CVS CORPORATION, a Delaware
corporation (the "BORROWER"), hereby promises to pay to the order of
_________________________ (the "LENDER") the outstanding principal balance of
the Lender's Loans, together with interest thereon, at the rate or rates, in the
amounts and at the time or times set forth in the
364 Day Credit Agreement (as
the same may be amended, supplemented or otherwise modified from time to time,
the "CREDIT AGREEMENT"), dated as of June 11, 2004, by and among the Borrower,
the Lenders party thereto, the co-syndication agents named therein, the
documentation agent named therein, and The Bank of New York, as administrative
agent (in such capacity, the "ADMINISTRATIVE AGENT"), in each case at the office
of the Administrative Agent located at One Wall Street, New York, New York, or
at such other place as the Administrative Agent may specify from time to time,
in lawful money of the United States of America in immediately available funds.
Capitalized terms used herein that are not otherwise defined herein
shall have the respective meanings ascribed thereto in the Credit Agreement.
The Loans evidenced by this Note are prepayable in the amounts, and
on the dates, set forth in the Credit Agreement. This Note is one of the Notes
under the Credit Agreement, and is subject to, and shall be construed in
accordance with, the provisions thereof, and is entitled to the benefits set
forth in the Loan Documents.
The Lender is hereby authorized to record on the schedule annexed
hereto, and any continuation sheets which the Lender may attach thereto (a) the
date and amount of each Revolving Credit Loan and Competitive Bid Loan made by
the Lender, (b) the Interest Period for each Revolving Credit Loan (Eurodollar
Advance only) and Competitive Bid Loan made by the Lender, (c) the Type of each
Revolving Credit Loan made by the Lender as one or more ABR Advances, one or
more Eurodollar Advances, or a combination thereof, (d) the Eurodollar Rate
applicable to each Revolving Credit Loan (Eurodollar Advance only) and the
Competitive Bid Rate applicable to each Competitive Bid Loan made by the Lender
and (d) the date and amount of each Conversion of each Revolving Credit Loan
made by the Lender, and each payment or prepayment of principal of, each Loan
made by the Lender. The failure to so record or any error in so recording shall
not affect the obligation of the Borrower to repay the Loans, together with
interest thereon, as provided in the Credit Agreement.
Except as specifically otherwise provided in the Credit Agreement,
the Borrower hereby waives presentment, demand, notice of dishonor, protest,
notice of protest and all other demands, protests and notices in connection with
the execution, delivery, performance, collection and enforcement of this Note.
THIS NOTE IS BEING DELIVERED IN, IS INTENDED TO BE PERFORMED IN,
SHALL BE CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, AND BE GOVERNED BY THE
LAWS OF, THE STATE OF NEW YORK.
This Note may only be amended by an instrument in writing executed
pursuant to the provisions of Section 11.1 of the Credit Agreement.
CVS CORPORATION
By:
-----------------------------
Name:
---------------------------
Title:
--------------------------
SCHEDULE TO NOTE
Date and
Interest Type of Interest Amount of
Period (If Revolving Rate (If Conversion Date and
Type other Credit other of Amount of
Date and than an Loan than an Revolving Principal
of Amount ABR (ABR or ABR Credit Payment or Notation
Loan of Loan Advance) Eurodollar) Advance) Loan Prepayment Made by
----------- ----------- ------------- --------------- ------------- --------------- ---------------- ------------
364 DAY CREDIT AGREEMENT
EXHIBIT C
FORM OF BORROWING REQUEST
[Date]
The Bank of New York, as Administrative Agent
Xxx Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: ______________,
______________
Re:
364 Day Credit Agreement, dated as of June 11, 2004, by and
among
CVS Corporation, the Lenders party thereto, the
co-syndication agents named therein, the documentation agent
named therein, and The Bank of New York, as Administrative Agent
(as amended, supplemented or otherwise modified from time to
time, the "Credit Agreement")___________________________________
________________________________________________
Capitalized terms used herein that are not otherwise defined herein shall
have the respective meanings ascribed thereto in the Credit Agreement.
Pursuant to Section 2.3 of the Credit Agreement, the Borrower hereby gives
notice of its intention to borrow Revolving Credit Loans in the aggregate sum of
$____________ on ____________, which borrowing shall consist of the following:
Revolving Credit Loans
(ABR Advance or Eurodollar Interest Period
Advance) Amount (Other than ABR)
---------------------------------- ------ ----------------
The Borrower hereby certifies that on the Borrowing Date set forth above, and
after giving effect to the Loans requested hereby:
(a) There shall exist no Default or Event of Default.
(b) The representations and warranties contained in the Credit Agreement
shall be true and correct, except those which are expressly specified to be made
as of an earlier date.
IN EVIDENCE of the foregoing, the undersigned has caused this Borrowing
Request to be duly executed on its behalf.
CVS CORPORATION
By:
-----------------------------
Name:
---------------------------
Title:
--------------------------
364 DAY CREDIT AGREEMENT
EXHIBIT D-1
FORM OF OPINION OF
COUNSEL TO THE BORROWER
June 11, 2004
The Lenders, the Co-Syndication Agents,
the Documentation Agent and
the Administrative Agent Referred to Below
x/x Xxx Xxxx xx Xxx Xxxx,
as Administrative Agent
Xxx Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
I am general counsel of CVS Corporation, a Delaware corporation (the
"BORROWER"), and have acted as such in connection with the 364 Day Credit
Agreement, dated as of June 11, 2004, by and among the Borrower, the lenders
party thereto, Bank of America, N.A., Credit Suisse First Boston and Wachovia
Securities, Inc., as Co-Syndication Agents, ABN AMRO Bank N.V., as Documentation
Agent, and The Bank of New York, as Administrative Agent (the "CREDIT
AGREEMENT"). Capitalized terms not otherwise defined herein shall have the
meanings assigned to them in the Credit Agreement.
I have examined originals or copies, certified or otherwise identified to
my satisfaction, of such documents, corporate records, certificates of public
officials and other instruments and have conducted such other investigations of
fact and law as I have deemed necessary or advisable for purposes of this
opinion. In rendering my opinions set forth below, I have assumed (i) the due
authorization, execution and delivery by all parties thereto (other than the
Borrower) of the Credit Agreement, (ii) the authenticity of all documents
submitted to me as originals and (iii) the conformity to original documents of
all documents submitted to me as copies.
Based upon the foregoing, I am of the opinion that:
1. The Borrower is a corporation duly incorporated, validly existing
and in good standing under the laws of the State of Delaware. The Borrower has
all requisite corporate power and authority to own its Property and to carry on
its business as now conducted.
2. The Borrower is qualified to do business as a foreign corporation
and is in good standing in each jurisdiction in which it owns or leases real
Property or in which the nature of its business requires it to be so qualified
(except those jurisdictions where the failure to be so qualified or to be in
good standing could not reasonably be expected to have a Material Adverse
effect).
3. The execution, delivery and performance by the Borrower of the
Credit Agreement and the Notes are within the Borrower's corporate powers and
have been duly authorized by all necessary corporate action on the part of the
Borrower.
4. The execution, delivery and performance by the Borrower of the
Credit Agreement and Notes do not require any action or approval on the part of
the shareholders of the Borrower or any action by or in respect of, or filing
with, any governmental body, agency or official under United States federal law
or the Delaware General Corporation Law, and do not contravene, or constitute a
default under, any provision of (i) United States federal law or the Delaware
General Corporation Law, (ii) the Certificate of Incorporation or bylaws of the
Borrower or (iii) any existing material mortgage, material indenture, material
contract or material agreement, in each case binding on the Borrower or any
Subsidiary or affecting the Property of the Borrower or any Subsidiary.
5. The Credit Agreement and the Notes delivered by the Borrower on or
prior to the date hereof have been duly executed and delivered by the Borrower
and each constitutes the valid and binding agreement of the Borrower, in each
case enforceable in accordance with their respective terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
from time to time in effect affecting the enforcement of creditors' rights
generally and to general principles of equity.
6. The Borrower is not an "investment company" (as such term is defined
in the United States Investment Company Act of 1940, as amended).
7. To the best of my knowledge, there are no actions, suits,
arbitration proceedings or claims (whether purportedly on behalf of the
Borrower, any Subsidiary or otherwise) pending or threatened against the
Borrower or any Subsidiary or any of their respective Properties, or maintained
by the Borrower or any Subsidiary, at law or in equity, before any Governmental
Authority which could reasonably be expected to have a Material Adverse effect.
To the best of my knowledge, there are no proceedings pending or threatened
against the Borrower or any Subsidiary (a) which call into question the validity
or enforceability of, or otherwise seek to invalidate, any Loan Document or (b)
which could reasonably be expected to, individually or in the aggregate,
materially and adversely affect any of the transactions contemplated by any Loan
Document (it being understood that the Eckerd Acquisition is not a transaction
contemplated by any Loan Document for purposes of this clause (b)).
8. To the best of my knowledge, the Borrower is not in default under
any agreement to which it is a party or by which it or any of its Property is
bound the effect of which could reasonably be expected to have a Material
Adverse effect.
2
9. To the best of my knowledge, no provision of any judgment, decree or
order, in each case binding on the Borrower or any Subsidiary or affecting the
Property of the Borrower or any Subsidiary conflicts with, or requires any
consent which has not already been obtained under, or would in any way prevent
the execution, delivery or performance by the Borrower of the terms of, any Loan
Document.
The foregoing opinion is subject to the following qualifications:
(a) I express no opinion as to the effect (if any) of any law of
any jurisdiction (except the Commonwealth of Massachusetts) in which any
Lender is located which may limit the rate of interest that such Lender
may charge or collect.
(b) I express no opinion as to provisions in the Credit Agreement
which purport to create rights of set-off in favor of participants or
which provide for set-off to be made otherwise than in accordance with
applicable laws.
(c) I note that public policy considerations or court decisions
may limit the rights of any party to obtain indemnification under the
Credit Agreement.
I am a member of the bar of the Commonwealth of Massachusetts and the
foregoing opinion is limited to the laws of the Commonwealth of Massachusetts,
the federal law of the United States of America and the Delaware General
Corporation Law. For purposes of paragraph 5 of this opinion, I have assumed
that, with your permission and without any research or investigation, the laws
of the State of New York are identical to the law of the Commonwealth of
Massachusetts.
This opinion is rendered solely to you in connection with the above
matter. This opinion may not be relied upon by you for any other purpose or
relied upon by any other person without my prior written consent, except that
any person that becomes a Lender in accordance with the provisions of the Credit
Agreement may rely upon this opinion as if it were specifically addressed and
delivered to such person on the date hereof.
Very truly yours,
3
364 DAY CREDIT AGREEMENT
EXHIBIT D-2
FORM OF OPINION OF
SPECIAL COUNSEL TO THE BORROWER
June 11, 2004
The Co-Syndication Agents,
the Documentation Agent,
the Administrative Agent
and the lenders party
to the Credit Agreement referred to below
x/x Xxx Xxxx xx Xxx Xxxx,
as Administrative Agent
Re: CVS Corporation
Ladies and Gentlemen:
We have acted as special New York counsel to CVS Corporation, a Delaware
corporation (the "COMPANY"), in connection with the 364 Day Credit Agreement
dated as of June 11, 2004 among the Company, the lenders listed on the signature
pages thereof (the "LENDERS"), Bank of America, N.A., Credit Suisse First
Boston, and Wachovia Securities, Inc., as Co-Syndication Agents, Suntrust Bank,
as Documentation Agent and The Bank of New York, as Administrative Agent (in
such capacity, the "ADMINISTRATIVE AGENT") (as in effect on the date hereof, the
"CREDIT AGREEMENT"). Capitalized terms defined in the Credit Agreement and not
otherwise defined herein are used herein as therein defined.
We have reviewed an executed copy of the Credit Agreement. In addition, we
have examined originals or copies, certified or otherwise identified to our
satisfaction, of such documents, corporate records, certificates of public
officials and other instruments, and have conducted such other investigations of
fact and law, as we have deemed necessary or advisable for purposes of this
opinion.
-2-
June 11, 2004
Based upon the foregoing, and subject to the qualifications and
assumptions set forth herein, we are of the opinion that (i) the Credit
Agreement constitutes a valid and binding agreement of the Company, enforceable
against the Company in accordance with its terms, and (ii) the execution,
delivery and performance by the Company of the Credit Agreement (x) require no
consent or other action by or in respect of, or filing with, any governmental
body, agency or official under New York State law, and (y) do not contravene, or
constitute a default under, any provision of New York State law or regulation
that in our experience is normally applicable to general business corporations
in relation to transactions of the type contemplated by the Credit Agreement.
The foregoing opinions are subject to the following qualifications and
assumptions:
(a) Our opinions are subject to the effects of applicable bankruptcy,
insolvency and similar laws affecting creditors' rights generally and
equitable principles of general applicability, and the enforceability of
indemnification provisions may be limited by Federal or State laws or
policies underlying such laws.
(b) As to various provisions in the Credit Agreement that grant the
Administrative Agent or the Lenders certain rights to make determinations or
take actions in their discretion, we assume that such discretion will be
exercised in good faith and in a commercially reasonable manner.
(c) We express no opinion as to the effect (if any) of any law of any
jurisdiction (except the State of New York) in which any Lender is located
that may limit the rate of interest that such Lender may charge or collect.
(d) We express no opinion as to the effect of Section 548 of the United
States Bankruptcy Code or any similar provisions of State law.
(e) We have assumed, with your permission and without independent
investigation, that (i) the Company is a corporation duly incorporated,
validly existing and in good standing under the laws of the State of
Delaware, (ii) the execution, delivery and performance by the Company of the
Credit Agreement are within its corporate powers and have been duly
authorized by all necessary corporate and other action, and (iii) the
execution, delivery and performance by the Company of the Credit Agreement
(x) require no consent or other action by or in respect of, or filing with,
any governmental body, agency or official under United States federal law or
the Delaware General Corporation Law and (y) do not contravene, or
constitute a default under, any provision of (a) United States federal law
or regulation or the Delaware
-3-
June 11, 2004
General Corporation Law, or (b) the certificate of incorporation or bylaws
of the Company.
We are members of the bar of the State of New York and the foregoing
opinion is limited to the laws of the State of New York.
This opinion is rendered solely to you in connection with the above
matter. This opinion may not be relied upon by you for any other purpose or
relied upon by any other person (other than an assignee permitted under Section
11.7 of the Credit Agreement) without our prior written consent.
Very truly yours,
364 DAY CREDIT AGREEMENT
EXHIBIT E
FORM OF ASSIGNMENT AND ACCEPTANCE AGREEMENT
Reference is made to the 364 Day Credit Agreement, dated as of June 11,
2004 (as amended and in effect on the date hereof, the "CREDIT AGREEMENT"), by
and among CVS Corporation, the Lenders party thereto, the co-syndication agents
named therein, the documentation agent named therein, and The Bank of New York,
as Administrative Agent. Capitalized terms used herein that are not otherwise
defined herein shall have the respective meanings ascribed thereto in the Credit
Agreement.
The Assignor named below hereby sells and assigns, without recourse, to
the Assignee named below, and the Assignee hereby purchases and assumes, without
recourse, from the Assignor, effective as of the Assignment Date (defined
below), the interests set forth below (the "ASSIGNED INTEREST") in the
Assignor's rights and obligations under the Credit Agreement, including, without
limitation, the interests set forth below in the Commitment and the Revolving
Credit Loans and Competitive Bid Loans owing to the Assignor that are
outstanding on the Assignment Date, but excluding accrued interest and fees to
and excluding the Assignment Date. The Assignee hereby acknowledges receipt of a
copy of the Credit Agreement. From and after the Assignment Date, (i) the
Assignee shall be a party to and be bound by the provisions of the Credit
Agreement and, to the extent of the Assigned Interest, have the rights and
obligations of a Lender under the Loan Documents and (ii) the Assignor shall, to
the extent of the Assigned Interest, relinquish its rights and be released from
its obligations under the Loan Documents.
This Assignment and Acceptance is being delivered to the Administrative
Agent, together with (i) if the Assignee is a Foreign Lender, any documentation
required to be delivered by the Assignee pursuant to Section 3.10(b) of the
Credit Agreement, duly completed and executed by the Assignee, and (ii) if the
Assignee is not already a Lender under the Credit Agreement, an Administrative
Questionnaire in the form supplied by the Administrative Agent, duly completed
by the Assignee. The [ASSIGNEE/ASSIGNOR](1) shall pay the fee payable to the
Administrative Agent pursuant to Section 11.7(b) of the Credit Agreement.
THIS ASSIGNMENT AND ACCEPTANCE SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
Date of Assignment:
Legal Name of Assignor:
Legal Name of Assignee:
Assignee's Address for Notices:
--------
(1) DELETE INAPPLICABLE TERM.
Effective Date of
Assignment (the "ASSIGNMENT DATE"):
Commitment Assigned:
Principal Amount of Revolving Credit Loans Assigned:
Principal Amount of each Competitive Bid Loan Assigned:
[SIGNATURE PAGE FOLLOWS]
The terms set forth above are hereby agreed to:
[NAME OF ASSIGNOR], as Assignor
By:
----------------------------
Name:
--------------------------
Title:
--------------------------
[NAME OF ASSIGNEE], as Assignee
By:
----------------------------
Name:
--------------------------
Title:
--------------------------
The undersigned hereby consent to the within assignment:
CVS CORPORATION
By:
----------------------------
Name:
--------------------------
Title:
--------------------------
THE BANK OF NEW YORK,
as Administrative Agent
By:
----------------------------
Name:
--------------------------
Title:
--------------------------
364 DAY CREDIT AGREEMENT
EXHIBIT F
FORM OF COMPETITIVE BID REQUEST
[Date]
The Bank of New York, as Administrative Agent
Xxx Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: ______________,
______________
Re: 364 Day Credit Agreement, dated as of June 11, 2004, by and among
CVS Corporation, the Lenders party thereto, the co-syndication
agents named therein, the documentation agent named therein, and The
Bank of New York, as Administrative Agent (as amended, supplemented
or otherwise modified from time to time, the "Credit Agreement")____
____________________________________________________________________
Capitalized terms used herein that are not otherwise defined herein shall
have the respective meanings ascribed thereto in the Credit Agreement.
Pursuant to Section 2.4 of the Credit Agreement, the Borrower hereby gives
notice of its request to borrow Competitive Bid Loans in the aggregate sum of
$____________ on ____________, which borrowing shall consist of the following:
Competitive
Amount Interest Period
------ ---------------
The Borrower hereby certifies that on the Borrowing Date set forth above,
and after giving effect to the Competitive Bid Loans requested hereby:
(a) There shall exist no Default or Event of Default.
(b) The representations and warranties contained in the Credit Agreement
shall be true and correct, except those which are expressly specified to be made
as of an earlier date.
IN EVIDENCE of the foregoing, the undersigned has caused this Competitive
Bid Request to be duly executed on its behalf.
CVS CORPORATION
By:
-----------------------------
Name:
---------------------------
Title:
--------------------------
364 DAY CREDIT AGREEMENT
EXHIBIT G
FORM OF INVITATION TO BID
[Date]
To the Lenders party
from time to time to the
captioned Credit Agreement
Re: 364 Day Credit Agreement, dated as of June 11, 2004, by and among
CVS Corporation, the Lenders party thereto, the co-syndication
agents named therein, the documentation agent named therein, and The
Bank of New York, as Administrative Agent (as amended, supplemented
or otherwise modified from time to time, "Credit Agreement")________
____________________________________________________________________
Capitalized terms used herein that are not otherwise defined herein
shall have the respective meanings ascribed thereto in the Credit Agreement.
Pursuant to a Competitive Bid Request, the Borrower gave notice of
its request to borrow Competitive Bid Loans in the aggregate sum of
$____________ on ____________, which borrowing would consist of the following:
Competitive
Amount Interest Period
------ ---------------
The Lenders are hereby invited to bid, pursuant to the terms and
conditions of the Credit Agreement, on such requested Competitive Bid Loans.
THE BANK OF NEW YORK,
as Administrative Agent
By:
-----------------------------
Name:
---------------------------
Title:
--------------------------
364 DAY CREDIT AGREEMENT
EXHIBIT H
FORM OF COMPETITIVE BID
[Date]
The Bank of New York, as Administrative Agent
Xxx Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: _________________,
_________________
Re: 364 Day Credit Agreement, dated as of June 11, 2004, by and among
CVS Corporation, the Lenders party thereto, the co-syndication
agents named therein, the documentation agent named therein, and The
Bank of New York, as Administrative Agent (as amended, supplemented
or otherwise modified from time to time, the "Credit Agreement")____
____________________________________________________________________
Capitalized terms used herein that are not otherwise defined herein
shall have the respective meanings ascribed thereto in the Credit Agreement.
In response to a Competitive Bid Request, the undersigned Lender
hereby offers to make Competitive Bid Loan(s) in the aggregate sum of
$____________ on ____________, which borrowing would consist of the following:
Competitive
Interest Competitive
Amount Period Bid Rate
------ ------ --------
[fixed rate]
[LENDER]
By:
-----------------------------
Name:
---------------------------
Title:
--------------------------
364 DAY CREDIT AGREEMENT
EXHIBIT I
FORM OF COMPETITIVE BID ACCEPT/REJECT LETTER
[Date]
The Bank of New York, as Administrative Agent
Xxx Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: ______________,
______________
Re: 364 Day Credit Agreement, dated as of June 11, 2004, by and among
CVS Corporation, the Lenders party thereto, the co-syndication
agents named therein, the documentation agent named therein, and The
Bank of New York, as Administrative Agent (as amended, supplemented
or otherwise modified from time to time, the "Credit Agreement")____
____________________________________________________________________
Capitalized terms used herein that are not otherwise defined herein shall
have the respective meanings ascribed thereto in the Credit Agreement.
Pursuant to Section 2.4(d) of the Credit Agreement, the Borrower hereby
gives notice of its acceptance of the following Competitive Bids:
_____________ _______________
_____________ _______________,
and its rejection of all other Competitive Bids, in each case made pursuant to
the Competitive Bid Request, dated _______________.
IN EVIDENCE of the foregoing, the undersigned has caused this Competitive
Bid Accept/Reject Letter to be duly executed on its behalf.
CVS CORPORATION
By:
-----------------------------
Name:
---------------------------
Title:
--------------------------
