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EXHIBIT 4.16
CREDIT AGREEMENT
among
PULTE CORPORATION
as Borrower,
THE MATERIAL SUBSIDIARIES OF PULTE CORPORATION
as Guarantors,
THE LENDERS IDENTIFIED HEREIN,
BANK OF AMERICA, N.A.,
as Administrative Agent,
BANK ONE, NA,
as Syndication Agent,
and
COMERICA BANK,
as Co-Agent
DATED AS OF AUGUST 31, 2000
BANC OF AMERICA SECURITIES LLC,
as Sole Lead Arranger and Sole Book Manager,
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TABLE OF CONTENTS
SECTION 1 DEFINITIONS AND ACCOUNTING TERMS.......................................................................1
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1.1 DEFINITIONS..............................................................................................1
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1.2 COMPUTATION OF TIME PERIODS AND OTHER DEFINITIONAL PROVISIONS...........................................20
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1.3 ACCOUNTING TERMS........................................................................................20
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1.4 TIME....................................................................................................21
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SECTION 2 CREDIT FACILITIES.....................................................................................21
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2.1 REVOLVING LOANS.........................................................................................21
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2.2 SWINGLINE LOANS SUBFACILITY.............................................................................24
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2.3 CONTINUATIONS AND CONVERSIONS...........................................................................26
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2.4 MINIMUM AMOUNTS.........................................................................................26
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2.5 EXTENSION OF MATURITY DATE..............................................................................26
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SECTION 3 GENERAL PROVISIONS APPLICABLE TO LOANS................................................................28
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3.1 INTEREST................................................................................................28
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3.2 PLACE AND MANNER OF PAYMENTS............................................................................29
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3.3 PREPAYMENTS.............................................................................................29
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3.4 FEES....................................................................................................30
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3.5 PAYMENT IN FULL AT MATURITY.............................................................................31
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3.6 COMPUTATIONS OF INTEREST AND FEES.......................................................................31
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3.7 PRO RATA TREATMENT......................................................................................32
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3.8 SHARING OF PAYMENTS.....................................................................................33
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3.9 CAPITAL ADEQUACY........................................................................................33
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3.10 INABILITY TO DETERMINE INTEREST RATE.................................................................34
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3.11 ILLEGALITY...........................................................................................34
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3.12 REQUIREMENTS OF LAW..................................................................................35
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3.13 TAXES................................................................................................36
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3.14 COMPENSATION.........................................................................................38
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3.15 SUBSTITUTION OF LENDER...............................................................................39
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3.16 EVIDENCE OF DEBT.....................................................................................39
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SECTION 4 GUARANTY..............................................................................................40
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4.1 GUARANTY OF PAYMENT.....................................................................................40
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4.2 OBLIGATIONS UNCONDITIONAL...............................................................................40
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4.3 MODIFICATIONS...........................................................................................41
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4.4 WAIVER OF RIGHTS........................................................................................41
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4.5 REINSTATEMENT...........................................................................................41
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4.6 REMEDIES................................................................................................42
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4.7 LIMITATION OF GUARANTY..................................................................................42
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4.8 RIGHTS OF CONTRIBUTION..................................................................................42
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SECTION 5 CONDITIONS PRECEDENT..................................................................................43
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5.1 CLOSING CONDITIONS......................................................................................43
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5.2 CONDITIONS TO ALL EXTENSIONS OF CREDIT..................................................................47
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SECTION 6 REPRESENTATIONS AND WARRANTIES........................................................................47
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6.1 FINANCIAL CONDITION.....................................................................................47
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6.2 NO MATERIAL CHANGE......................................................................................48
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6.3 ORGANIZATION AND GOOD STANDING..........................................................................48
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6.4 DUE AUTHORIZATION.......................................................................................48
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6.5 NO CONFLICTS............................................................................................48
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6.6 CONSENTS................................................................................................49
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6.7 ENFORCEABLE OBLIGATIONS.................................................................................49
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6.8 NO DEFAULT..............................................................................................49
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6.9 LIENS...................................................................................................49
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6.10 INDEBTEDNESS.........................................................................................49
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6.11 LITIGATION...........................................................................................50
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6.12 TAXES................................................................................................50
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6.13 COMPLIANCE WITH LAW..................................................................................50
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6.14 ERISA................................................................................................50
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6.15 SUBSIDIARIES.........................................................................................51
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6.16 USE OF PROCEEDS......................................................................................51
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6.17 GOVERNMENT REGULATION................................................................................52
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6.18 ENVIRONMENTAL MATTERS................................................................................52
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6.19 INTELLECTUAL PROPERTY................................................................................53
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6.20 SOLVENCY.............................................................................................54
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6.21 INVESTMENTS..........................................................................................54
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6.22 DISCLOSURE...........................................................................................54
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6.23 LICENSES, ETC........................................................................................54
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6.24 BURDENSOME RESTRICTIONS..............................................................................54
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6.25 LABOR CONTRACTS AND DISPUTES.........................................................................54
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6.26 BROKER'S FEES........................................................................................55
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SECTION 7 AFFIRMATIVE COVENANTS.................................................................................55
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7.1 INFORMATION COVENANTS...................................................................................55
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7.2 FINANCIAL COVENANTS.....................................................................................58
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7.3 PRESERVATION OF EXISTENCE AND FRANCHISES................................................................59
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7.4 BOOKS AND RECORDS.......................................................................................59
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7.5 COMPLIANCE WITH LAW.....................................................................................59
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7.6 PAYMENT OF TAXES AND OTHER INDEBTEDNESS.................................................................59
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7.7 INSURANCE...............................................................................................59
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7.8 MAINTENANCE OF PROPERTY.................................................................................60
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7.9 PERFORMANCE OF OBLIGATIONS..............................................................................60
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7.10 USE OF PROCEEDS......................................................................................60
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7.11 AUDITS/INSPECTIONS...................................................................................60
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7.12 ADDITIONAL CREDIT PARTIES............................................................................60
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SECTION 8 NEGATIVE COVENANTS....................................................................................61
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8.1 INDEBTEDNESS............................................................................................61
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8.2 LIENS...................................................................................................62
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8.3 NATURE OF BUSINESS......................................................................................62
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8.4 CONSOLIDATION AND MERGER................................................................................62
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8.5 SALE OR LEASE OF ASSETS.................................................................................62
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8.6 SALE AND LEASEBACK......................................................................................63
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8.7 ADVANCES, INVESTMENTS AND LOANS.........................................................................64
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8.8 RESTRICTED PAYMENTS.....................................................................................64
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8.9 TRANSACTIONS WITH AFFILIATES............................................................................64
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8.10 FISCAL YEAR; ORGANIZATIONAL DOCUMENTS................................................................64
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8.11 NO LIMITATIONS.......................................................................................64
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8.12 NO OTHER NEGATIVE PLEDGES............................................................................64
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8.13 OTHER INDEBTEDNESS...................................................................................65
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SECTION 9 EVENTS OF DEFAULT.....................................................................................65
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9.1 EVENTS OF DEFAULT.......................................................................................65
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9.2 ACCELERATION; REMEDIES..................................................................................68
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9.3 ALLOCATION OF PAYMENTS AFTER EVENT OF DEFAULT...........................................................69
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SECTION 10 AGENCY PROVISIONS....................................................................................69
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10.1 APPOINTMENT..........................................................................................69
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10.2 DELEGATION OF DUTIES.................................................................................70
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10.3 EXCULPATORY PROVISIONS...............................................................................70
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10.4 RELIANCE ON COMMUNICATIONS...........................................................................71
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10.5 NOTICE OF DEFAULT....................................................................................71
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10.6 NON-RELIANCE ON ADMINISTRATIVE AGENT AND OTHER LENDERS...............................................71
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10.7 INDEMNIFICATION......................................................................................72
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10.8 ADMINISTRATIVE AGENT IN ITS INDIVIDUAL CAPACITY......................................................72
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10.9 SUCCESSOR ADMINISTRATIVE AGENT.......................................................................73
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SECTION 11 MISCELLANEOUS........................................................................................73
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11.1 NOTICES..............................................................................................73
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11.2 RIGHT OF SET-OFF.....................................................................................73
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11.3 BENEFIT OF AGREEMENT.................................................................................74
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11.4 NO WAIVER; REMEDIES CUMULATIVE.......................................................................77
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11.5 PAYMENT OF EXPENSES; INDEMNIFICATION.................................................................77
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11.6 AMENDMENTS, WAIVERS AND CONSENTS.....................................................................78
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11.7 COUNTERPARTS/TELECOPY................................................................................79
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11.8 HEADINGS.............................................................................................79
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11.9 DEFAULTING LENDER....................................................................................79
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11.10 SURVIVAL OF INDEMNIFICATION AND REPRESENTATIONS AND WARRANTIES.......................................79
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11.11 GOVERNING LAW; JURISDICTION..........................................................................79
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11.12 WAIVER OF JURY TRIAL.................................................................................80
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11.13 SEVERABILITY.........................................................................................80
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11.14 FURTHER ASSURANCES...................................................................................80
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11.15 ENTIRETY.............................................................................................80
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11.16 BINDING EFFECT; CONTINUING AGREEMENT.................................................................81
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SCHEDULES
Schedule 1.1(a) Revolving Loan Commitment Percentages
Schedule 1.1(b) Permitted Liens
Schedule 6.10 Indebtedness
Schedule 6.11 Litigation
Schedule 6.15 Subsidiaries
Schedule 6.21(a) Investment Policy
Schedule 6.21(b) Investments
Schedule 6.25 Labor Contract and Disputes
Schedule 11.1 Notices
EXHIBITS
Exhibit 2.1(b) Form of Notice of Borrowing
Exhibit 2.1(f) Form of Revolving Note
Exhibit 2.2(b) Form of Swingline Loan Request
Exhibit 2.2(e) Form of Swingline Note
Exhibit 2.3 Form of Notice of Continuation/Conversion
Exhibit 7.1(c) Form of Officer's Certificate
Exhibit 7.12 Form of Joinder Agreement
Exhibit 11.3(b) Form of Assignment Agreement
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CREDIT AGREEMENT
THIS CREDIT AGREEMENT (this "Credit Agreement") is entered into as of
August 31, 2000 among PULTE CORPORATION, a Michigan corporation (the
"Borrower"), each of the Material Subsidiaries of the Borrower (individually a
"Guarantor" and collectively the "Guarantors"), the Lenders (as defined herein),
BANK OF AMERICA, N.A., as Administrative Agent for the Lenders, BANK ONE, NA, as
Syndication Agent for the Lenders and COMERICA BANK, as Co-Agent for the
Lenders.
RECITALS
WHEREAS, the Borrower and the Guarantors have requested the Lenders to
provide a senior revolving credit facility in an aggregate principal amount of
up to $375 million, which may be increased in accordance with the terms hereof
to up to $600 million; and
WHEREAS, the Lenders party hereto have agreed to make the requested
senior revolving credit facility available to the Borrower on the terms and
conditions hereinafter set forth.
NOW, THEREFORE, IN CONSIDERATION of the premises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:
SECTION 1
DEFINITIONS AND ACCOUNTING TERMS
1.1 DEFINITIONS.
As used herein, the following terms shall have the meanings herein
specified unless the context otherwise requires. Defined terms herein shall
include in the singular number the plural and in the plural the singular:
"Acquisition", by any Person, means the acquisition by such
Person of the Capital Stock or all or substantially all of the assets
of another Person, whether or not involving a merger or consolidation
with such Person.
"Additional Credit Party" means each Person that becomes a
Guarantor after the Closing Date, as provided in Section 7.12 or
otherwise.
"Adjusted Eurodollar Rate" means the Eurodollar Rate plus the
Applicable Percentage.
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"Adjusted LIBOR Market Index Rate" means the LIBOR Market
Index Rate plus the Applicable Percentage.
"Administrative Agent" means Bank of America, N.A. (or any
successor thereto) or any successor administrative agent appointed
pursuant to Section 10.9.
"Administrative Fees" has the meaning set forth in Section
3.4(c).
"Affiliate" means, with respect to any Person, any other
Person directly or indirectly controlling (including but not limited to
all directors and officers (or the equivalent) of such Person),
controlled by or under direct or indirect common control with such
Person. A Person shall be deemed to control an entity if such Person
possesses, directly or indirectly, the power (a) to vote 10% or more of
the ordinary voting power for the election of directors (or the
equivalent) of such entity or (b) to direct or cause direction of the
management and policies of such entity, whether through the ownership
of voting securities, by contract or otherwise.
"Agency Services Address" means Bank of America, N.A., 000
Xxxxx XxXxxxx Xxxxxx, Xxxxxxx, XX 00000, or such other address as may
be identified by written notice from the Administrative Agent to the
Borrower.
"Applicable Percentage" means, for Eurodollar Loans, Index
Rate Swingline Loans and Facility Fees, the appropriate applicable
percentages corresponding to the Debt to Capitalization Ratio and the
long term unsecured debt rating of the Borrower as described below:
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Long Term Applicable
Unsecured Percentage for Applicable
Debt to Debt Rating Eurodollar Loans and Percentage
Pricing Capitalization of Index Rate Swingline for
Level Ratio Borrower Loans Facility Fees
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I <= 20% =>BBB+/Baa1 .475% .150%
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II > 20% but <= 35% BBB/Baa2 .700% .175%
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III > 35% but <= 45% BBB-/Baa3 .825% .225%
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IV > 45%
