Exhibit (4)-1
Commonwealth Edison Company
Form 10-Q file No. 1-1839
________________________________________________________________________________
$500,000,000
CREDIT AGREEMENT
Dated as of September 22, 1999
Among
COMMONWEALTH EDISON COMPANY
as Borrower
and
THE BANKS NAMED HEREIN
as Banks
and
CITIBANK, N.A.
as Administrative Agent
_______________________________________________________________________________
TABLE OF CONTENTS
Section Page
ARTICLE I
DEFINITIONS AND ACCOUNTING TERMS
Section 1.01. Certain Defined Terms.................................... 1
Section 1.02. Computation of Time Periods.............................. 14
Section 1.03. Computations of Outstandings............................. 14
Section 1.04. Accounting Terms......................................... 14
ARTICLE II
AMOUNTS AND TERMS OF THE ADVANCES
Section 2.01. The A Advances........................................... 15
Section 2.02. Making the A Advances.................................... 15
Section 2.03. The B Advances........................................... 16
Section 2.04. Fees..................................................... 20
Section 2.05. Reduction of the Commitments............................. 20
Section 2.06. Repayment of A Advances.................................. 20
Section 2.07. Interest on A Advances................................... 20
Section 2.08. Additional Interest on Eurodollar Rate Advances.......... 21
Section 2.09. Interest Rate Determination.............................. 21
Section 2.10. Voluntary Conversion of A Advances....................... 23
Section 2.11. Optional Prepayments of A Advances....................... 23
Section 2.12. Mandatory Prepayments.................................... 24
Section 2.13. Increased Costs.......................................... 24
Section 2.14. Illegality............................................... 25
Section 2.15. Payments and Computations................................ 26
Section 2.16. Taxes.................................................... 27
Section 2.17. Sharing of Payments, Etc................................. 28
Section 2.18. Extension of Termination Date............................ 29
ARTICLE III
CONDITIONS OF LENDING
Section 3.01. Conditions Precedent to Closing.......................... 30
Section 3.02. Conditions Precedent to Each A Borrowing................. 32
Section 3.03. Conditions Precedent to Each B Borrowing................. 32
Section 3.04. Conditions Precedent to Each Extension of the
Termination Date......................................... 33
Section 3.05. Reliance on Certificates................................. 34
ARTICLE IV
REPRESENTATIONS AND WARRANTIES
Section 4.01. Representations and Warranties of the Borrower........... 34
ARTICLE V
COVENANTS OF THE BORROWER
Section 5.01. Affirmative Covenants.................................... 36
Section 5.02. Negative Covenants....................................... 40
ARTICLE VI
EVENTS OF DEFAULT
Section 6.01. Events of Default........................................ 43
ARTICLE VII
THE ADMINISTRATIVE AGENT
Section 7.01. Authorization and Action................................. 45
Section 7.02. Administrative Agent's Reliance, Etc..................... 46
Section 7.03. Citibank, N.A. and Affiliates............................ 46
Section 7.04. Lender Credit Decision................................... 46
Section 7.05. Indemnification.......................................... 47
Section 7.06. Successor Administrative Agent........................... 47
ARTICLE VIII
MISCELLANEOUS
Section 8.01. Amendments, Etc.......................................... 48
Section 8.02. Notices, Etc............................................. 48
Section 8.03. No Waiver; Remedies...................................... 49
Section 8.04. Costs, Expenses, Taxes and Indemnification............... 49
Section 8.05. Right of Set-off......................................... 50
Section 8.06. Binding Effect........................................... 51
Section 8.07. Assignments and Participations........................... 51
Section 8.08. Confidentiality.......................................... 54
Section 8.09. Waiver of Jury Trial..................................... 54
Section 8.10. Consent.................................................. 55
Section 8.11. Governing Law............................................ 55
Section 8.12. Relation of the Parties; No Beneficiary.................. 55
Section 8.13. Execution in Counterparts................................ 55
SCHEDULES
---------
Schedule I: Commitment Allocations
Schedule II: List of Fossil Plants to be Offered for Sale
EXHIBITS
--------
Exhibit 1.01A-1: Form of A Note
Exhibit 1.01A-2: Form of B Note
Exhibit 2.02(a): Form of Notice of A Borrowing
Exhibit 2.03(a)(i): Form of Notice of B Borrowing
Exhibit 2.10: Form of Notice of Conversion
Exhibit 2.18(a): Form of Request for Extension of the Termination Date
Exhibit 3.01(a)(vii)-1: Form of Opinion of Counsel to the Borrower
Exhibit 3.01(a)(vii)-2: Form of Opinion of Counsel to the Agent
Exhibit 8.07: Form of Lender Assignment
iii
CREDIT AGREEMENT
Dated as of September 22, 1999
THIS CREDIT AGREEMENT (this "Agreement") is made by and among:
(i) COMMONWEALTH EDISON COMPANY, an Illinois corporation (the
"Borrower"),
(ii) the banks (the "Banks") listed on the signature pages hereof and
the other Lenders (as hereinafter defined) from time to time party hereto,
and
(iii) CITIBANK, N.A. ("Citibank"), as agent (the "Administrative Agent")
for the Lenders hereunder.
ARTICLE I
DEFINITIONS AND ACCOUNTING TERMS
SECTION 1.01. Certain Defined Terms. As used in this Agreement, the
following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):
"A Advance" means an advance by a Lender to the Borrower as part of an
A Borrowing and refers to a Base Rate Advance or a Eurodollar Rate Advance,
each of which shall be a "Type" of A Advance.
"A Borrowing" means a borrowing consisting of simultaneous A Advances
of the same Type, having the same Interest Period and ratably made or
Converted on the same day by each of the Lenders pursuant to Section 2.02
or 2.10, as the case may be. All Advances of the same Type, having the
same Interest Period and made or Converted on the same day shall be deemed
a single Borrowing hereunder until repaid or next Converted.
"A Note" means a promissory note of the Borrower payable to the order
of any Lender, in substantially the form of Exhibit 1.01A-1 hereto,
evidencing the aggregate indebtedness of the Borrower to such Lender
resulting from the A Advances made by such Lender.
"Advance" means an A Advance or a B Advance.
"Affiliate" means, with respect to any Person, any other Person
directly or indirectly controlling (including but not limited to all
directors and any officer who possesses the power described in the next
sentence), controlled by, or under direct or
2
indirect common control with such Person. A Person shall be deemed to
control another entity if such Person possesses, directly or indirectly,
the power to direct or cause the direction of the management and policies
of such entity, whether through the ownership of voting securities, by
contract, or otherwise.
"Alternate Base Rate" means a fluctuating interest rate per annum as
shall be in effect from time to time which rate per annum shall at all
times be equal to (a) the higher of: (i) the rate of interest announced
publicly by Citibank, N.A. in New York, New York, from time to time, as
Citibank, N.A.'s base rate; and (ii) 1/2 of one percent per annum above the
Federal Funds Rate and (b) for the period from December 1, 1999 through
(and including) January 31, 2000, a rate equal to 2% per annum above the
Federal Funds Rate.
Each change in the Alternate Base Rate shall take effect concurrently with
any change in such base rate or the Federal Funds Rate.
"Applicable Lending Office" means, with respect to each Lender, such
Lender's Domestic Lending Office in the case of a Base Rate Advance and
such Lender's Eurodollar Lending Office in the case of a Eurodollar Rate
Advance and, in the case of a B Advance, the office of such Lender notified
by such Lender to the Administrative Agent as its Applicable Lending Office
with respect to such B Advance.
"Applicable Margin" means, on any date, for a Eurodollar Rate Advance
or Base Rate Advance, the number of basis points set forth below in the
columns identified as Xxxxx 0, Xxxxx 0, Xxxxx 0, Xxxxx 4 and Level 5, as
determined by the respective ratings issued by S&P and Xxxxx'x for non-
credit-enhanced long-term senior secured debt of the Borrower (the
"Reference Ratings") and in effect on such date.
-------------------------------------------------------------------------------
Xxxxx 0 Xxxxx 0 Xxxxx 0 Xxxxx 0 Xxxxx 5
S&P ------- ------- ------- ------- -------
A- or better BBB+ BBB BBB- Lower than
Xxxxx'x and and and and Level 4 or
A3 or better Xxx0 Xxx0 Xxx0 unrated
-------------------------------------------------------------------------------
Basis Points Per Annum
-------------------------------------------------------------------------------
Eurodollar Rate 27.50 37.50 60.00 70.00 105.00
Advance
-------------------------------------------------------------------------------
Base Rate Advance 0 0 0 0 100.00
-------------------------------------------------------------------------------
The Applicable Margin shall increase (a)(i) by 12.50 basis points for any
Reference Rating designated as Xxxxx 0, Xxxxx 0, Xxxxx 0 or Level 4 and
(ii) by 25.00 basis points for any Reference Rating designated as Level 5,
in each case, at any time that more than 25% of the Commitments are
utilized, and (b) with respect to any Base Rate Advance, by 50.00 basis
points at any time any such Advance is outstanding during the period from
December 1, 1999 to (and including) December 31, 1999.
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Any change in the Reference Ratings shall effect an immediate change in the
Applicable Margin.
"Applicable Rate" means:
(i) in the case of each Base Rate Advance, a rate per annum equal at
all times to the sum of the Alternate Base Rate in effect from time to time
plus the Applicable Margin in effect from time to time; and
(ii) in the case of each Eurodollar Rate Advance comprising part of
the same A Borrowing, a rate per annum during each Interest Period equal at
all times to the sum of the Eurodollar Rate for such Interest Period plus
the Applicable Margin in effect from time to time during such Interest
Period.
"Available Commitment" means, for each Lender at any time on any day,
the unused portion of such Lender's Commitment, computed after giving
effect to all Extensions of Credit made or to be made on such day, the
application of proceeds therefrom and all prepayments and repayments of
Advances made on such day.
"Available Commitments" means the aggregate of the Lenders' Available
Commitments hereunder.
"B Advance" means an advance by a Lender to the Borrower as part of a
B Borrowing resulting from the auction bidding procedure described in
Section 2.03.
"B Borrowing" means a borrowing consisting of simultaneous B Advances
from each of the Lenders whose offer to make one or more B Advances as part
of such borrowing has been accepted by the Borrower under the auction
bidding procedure described in Section 2.03.
"B Note" means a promissory note of the Borrower payable to the order
of any Lender, in substantially the form of Exhibit 1.01A-2 hereto,
evidencing the aggregate indebtedness of the Borrower to such Lender
resulting from a B Advance made by such Lender.
"B Reduction" has the meaning assigned to that term in Section 2.01.
"Base Rate Advance" means an A Advance that bears interest as provided
in Section 2.07(a).
"Borrowing" means an A Borrowing or a B Borrowing. Any A Borrowing
consisting of A Advances of a particular Type may be referred to as being
an A Borrowing of such "Type".
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"Business Day" means a day of the year on which banks are not required
or authorized to close in New York City or Chicago, Illinois, and, if the
applicable Business Day relates to any Eurodollar Rate Advance, on which
dealings are carried on in the London interbank market.
"Capitalized Lease Obligations" means obligations to pay rent or other
amounts under any lease of (or other arrangement conveying the right to
use) real and/or personal property which obligation is required to be
classified and accounted for as a capital lease on a balance sheet prepared
in accordance with GAAP, and for purposes hereof the amount of such
obligations shall be the capitalized amount determined in accordance with
GAAP.
"Change of Control" means the occurrence, after the date of this
Agreement, of (i) any Person or two or more Persons acting in concert
acquiring beneficial ownership (within the meaning of Rule 13d-3 of the
Securities and Exchange Commission under the Securities Exchange Act of
1934, as amended), directly or indirectly, of securities of the Borrower
(or other securities convertible into such securities) representing 50% of
more of the combined voting power of all securities of the Borrower
entitled to vote in the election of directors; or (ii) commencing after the
date of this Agreement, individuals who as of the date of this Agreement
were directors ceasing for any reason to constitute a majority of the Board
of Directors of the Borrower unless the Persons replacing such individuals
were nominated by the stockholders or the Board of Directors of the
Borrower in accordance with the Borrower's Bylaws; or (iii) any Person or
two or more Persons acting in concert acquiring by contract or otherwise,
or entering into a contract or arrangement which upon consummation will
result in its or their acquisition of, or control over, securities of the
Borrower (or other securities convertible into such securities)
representing 50% or more of the combined voting power of all securities of
the Borrower entitled to vote in the election of directors; provided,
however, that the proposed merger or consolidation of Unicom Corporation
into and with New Holdco. pursuant to the terms and conditions of the
Agreement and Plan of Exchange and Merger dated as of September 22, 1999
among Unicom Corporation, New Holdco. and PECO Energy Company shall not
constitute a Change of Control.
"Closing" means the day upon which each of the applicable conditions
precedent enumerated in Section 3.01 shall be fulfilled to the satisfaction
of, or waived with the consent of, the Lenders, the Administrative Agent
and the Borrower. All transactions contemplated by the Closing shall take
place on a Business Day on or prior to September 22, 1999, at the offices
of King & Xxxxxxxx, 0000 Avenue of the Americas, Xxx Xxxx, Xxx Xxxx 00000,
at 10:00 a.m., or such later Business Day as the parties hereto may
mutually agree.
"Commitment" means, for each Lender, the obligation of such Lender to
make Advances to the Borrower in an amount no greater than the amount set
forth on Schedule I hereto or, if such Lender has entered into one or more
Lender Assignments, set forth for such Lender in the Register maintained by
the Administrative Agent pursuant to Section
5
8.07(c), in each such case as such amount may be reduced from time to time
pursuant to Section 2.05. "Commitments" means the total of the Lenders'
Commitments hereunder. The Commitments shall in no event exceed
$500,000,000.
"Consolidated Capital" means, with respect to any Person, at any date
of determination, the sum of (a) Consolidated Debt of such Person, (b)
consolidated equity of the common stockholders of such Person and its
Consolidated Subsidiaries, (c) consolidated equity of the preference
stockholders of such Person and its Consolidated Subsidiaries, (d)
consolidated equity of the preferred stockholders of such Person and its
Consolidated Subsidiaries, in each case determined at such date in
accordance with GAAP and (e) the aggregate principal amount of Subordinated
Deferrable Interest Securities of such Person and its Consolidated
Subsidiaries.
"Consolidated Debt" means, with respect to any Person, at any date of
determination, the aggregate Debt of such Person and its Consolidated
Subsidiaries determined on a consolidated basis in accordance with GAAP,
but shall not include (i) Nonrecourse Debt of any Subsidiary of the
Borrower, (ii) the aggregate principal amount of Subordinated Deferrable
Interest Securities of such Person and its Consolidated Subsidiaries and
(iii) the aggregate principal amount of Transitional Funding Instruments of
such Person and its Consolidated Subsidiaries.
"Consolidated Subsidiary" means, with respect to any Person, any
Subsidiary of such Person whose accounts are or are required to be
consolidated with the accounts of such Person in accordance with generally
accepted accounting principles.
"Convert", "Conversion" and "Converted" each refers to a conversion of
Advances of one Type into Advances of another Type, or to the selection of
a new, or the renewal of the same, Interest Period for Advances, as the
case may be, pursuant to Section 2.09 or 2.10.
"Debt" means, for any Person, any and all indebtedness, liabilities
and other monetary obligations of such Person (i) for borrowed money or
evidenced by bonds, debentures, notes or other similar instruments, (ii) to
pay the deferred purchase price of property or services (except trade
accounts payable arising and repaid in the ordinary course of business),
(iii) Capitalized Lease Obligations, (iv) under reimbursement or similar
agreements with respect to letters of credit (other than trade letters of
credit) issued to support indebtedness or obligations of such Person or of
others of the kinds referred to in clauses (i) through (iii) above and
clause (v) below, (v) reasonably quantifiable obligations under direct
guaranties or indemnities, or under support agreements, in respect of, and
reasonably quantifiable obligations (contingent or otherwise) to purchase
or otherwise acquire, or otherwise to assure a creditor against loss in
respect of, or to assure an obligee against failure to make payment in
respect of, indebtedness or obligations of others of the kinds referred to
in clauses (i) through (iv) above, and (vi) in respect of unfunded vested
benefits under Plans. In determining Debt for any Person, (A) there shall
be included accrued interest on the principal amount
6
thereof to the extent such interest has accrued for more than six months
and (B) in the cases of clauses (iv) and (v), such obligation shall be
excluded to the extent that the primary obligation has been included under
the preceding clauses.
"Default Rate" means (i) with respect to the unpaid principal of or
interest on any Advance, the greater of (A) 2% per annum above the
Applicable Rate in effect from time to time for such Advance and (B) 2% per
annum above the Applicable Rate in effect from time to time for Base Rate
Advances and (ii) with respect to any other unpaid amount hereunder, 2%
per annum above the Applicable Rate in effect from time to time for Base
Rate Advances.
"Dollars" and the sign "$" each means lawful money of the United
States.
"Domestic Lending Office" means, with respect to any Lender, the
office or affiliate of such Lender specified as its "Domestic Lending
Office" opposite its name on Schedule I hereto or in the Lender Assignment
pursuant to which it became a Lender, or such other office or affiliate of
such Lender as such Lender may from time to time specify in writing to the
Borrower and the Administrative Agent.
"Eligible Assignee" means (a) a commercial bank or trust company
organized under the laws of the United States, or any State thereof; (b) a
commercial bank organized under the laws of any other country that is a
member of the OECD, or a political subdivision of any such country,
provided that such bank is acting through a branch or agency located in the
United States; (c) the central bank of any country that is a member of the
OECD; and (d) any other commercial bank or other financial institution
engaged generally in the business of extending credit or purchasing debt
instruments; provided, however, that (A) any such Person shall also (i)
have outstanding unsecured long-term indebtedness that is rated A- or
better by S&P or A3 or better by Xxxxx'x (or an equivalent rating by
another nationally-recognized credit rating agency of similar standing if
neither of such corporations is then in the business of rating unsecured
indebtedness of entities engaged in such businesses) or (ii) have combined
capital and surplus (as established in its most recent report of condition
to its primary regulator) of not less than $250,000,000 (or its equivalent
in foreign currency), (B) any Person described in clause (a), (b), (c) or
(d) above, shall, on the date on which it is to become a Lender hereunder,
(i) be entitled to receive payments hereunder without deduction or
withholding of any United States Federal income taxes (as contemplated by
Section 2.16) and (ii) not be incurring any losses, costs or expenses of
the type for which such Person could demand payment under Section 2.13, and
(C) any Person described in clause (a), (b), (c) or (d) above shall, in
addition, be reasonably acceptable to the Administrative Agent and the
Borrower.
"ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and the regulations promulgated and rulings
issued thereunder.
7
"ERISA Affiliate" means, with respect to any Person, any trade or
business (whether or not incorporated) which is a member of a group of
which such Person is a member and which is under common control within the
meaning of the regulations under Section 414(b) or (c) of the Internal
Revenue Code of 1986, as amended from time to time.
"ERISA Event" means (i) the occurrence of a reportable event, within
the meaning of Section 4043 of ERISA, unless the 30-day notice requirement
with respect thereto has been waived by the PBGC; (ii) the provision by the
administrator of any Plan of notice of intent to terminate such Plan,
pursuant to Section 4041(a)(2) of ERISA (including any such notice with
respect to a plan amendment referred to in Section 4041(e) of ERISA); (iii)
except in connection with the sale of certain fossil-fired generating
facilities listed on Schedule II hereto, the cessation of operations at a
facility in the circumstances described in Section 4062(e) of ERISA; (iv)
the withdrawal by the Borrower or an ERISA Affiliate of the Borrower from a
Multiple Employer Plan during a plan year for which it was a "substantial
employer", as defined in Section 4001(a)(2) of ERISA; (v) the failure by
the Borrower or an ERISA Affiliate of the Borrower to make a payment to a
Plan required under Section 302(f)(1) of ERISA, which failure results in
the imposition of a lien for failure to make required payments; (vi) the
adoption of an amendment to a Plan requiring the provision of security to
such Plan, pursuant to Section 307 of ERISA; or (vii) the institution by
the PBGC of proceedings to terminate a Plan, pursuant to Section 4042 of
ERISA, or the occurrence of any event or condition which might reasonably
be expected to constitute grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, a Plan.
"Eurocurrency Liabilities" has the meaning assigned to that term in
Regulation D of the Board of Governors of the Federal Reserve System, as in
effect from time to time.
"Eurodollar Lending Office" means, with respect to any Lender, the
office or affiliate of such Lender specified as its "Eurodollar Lending
Office" opposite its name on Schedule I hereto or in the Lender Assignment
pursuant to which it became a Lender (or, if no such office is specified,
its Domestic Lending Office), or such other office or affiliate of such
Lender as such Lender may from time to time specify in writing to the
Borrower and the Administrative Agent.
"Eurodollar Rate" means, for each Interest Period for each Eurodollar
Rate Advance made as part of the same A Borrowing, an interest rate per
annum equal to the average (rounded upward to the nearest whole multiple of
1/16 of 1% per annum, if such average is not such a multiple) of the rate
per annum at which deposits in Dollars are offered by the principal office
of each of the Reference Banks in London, England to prime banks in the
London interbank market at 11:00 a.m. (London time) two Business Days
before the first day of such Interest Period in an amount substantially
equal to such Reference Bank's Eurodollar Rate Advance made as part of such
A Borrowing and for a period equal to such Interest Period. The Eurodollar
Rate for the Interest Period for each
8
Eurodollar Rate Advance made as part of the same A Borrowing shall be
determined by the Administrative Agent on the basis of applicable rates
furnished to and received by the Administrative Agent from the Reference
Banks two Business Days before the first day of such Interest Period,
subject, however, to the provisions of Section 2.09.
"Eurodollar Rate Advance" means an A Advance that bears interest as
provided in Section 2.07(b).
"Eurodollar Reserve Percentage" of any Lender for each Interest Period
for each Eurodollar Rate Advance means the reserve percentage applicable to
such Lender during such Interest Period (or if more than one such
percentage shall be so applicable, the daily average of such percentages
for those days in such Interest Period during which any such percentage
shall be so applicable) under Regulation D or other regulations issued from
time to time by the Board of Governors of the Federal Reserve System (or
any successor) for determining the maximum reserve requirement (including,
without limitation, any emergency, supplemental or other marginal reserve
requirement) then applicable to such Lender with respect to liabilities or
assets consisting of or including Eurocurrency Liabilities having a term
equal to such Interest Period.
"Events of Default" has the meaning assigned to that term in Section
6.01.
"Existing Facilities" means (a) the 364-Day Credit Agreement, dated as
of October 8, 1998 and (b) the 5-Year Credit Agreement, dated as of October
8, 1998, each among the Borrower, the Administrative Agent and certain
lenders party thereto, as amended or modified as of the date hereof.
"Extension Date" has the meaning assigned to that term in Section
2.18(b).
"Extension of Credit" means the making of a Borrowing. For purposes
of this Agreement, a Conversion shall not constitute an Extension of
Credit.
"Facility Fee" means a fee which shall be payable on the aggregate
amount of the Commitments, irrespective of usage, to the Lenders pro rata
on the amounts of their respective Commitments at the rate (expressed in
basis points per annum) set forth below in the columns identified as Xxxxx
0, Xxxxx 0, Xxxxx 0, Xxxxx 4 and Level 5, as determined by the respective
ratings issued by S&P and Xxxxx'x for non-credit-enhanced long-term senior
secured debt of the Borrower.
----------------------------------------------------------------------------
Xxxxx 0 Xxxxx 0 Xxxxx 0 Xxxxx 0 Xxxxx 5
------- ------- ------- ------- -------
S&P A- or better BBB+ BBB BBB- Lower than
and and and and Level 4 or
Xxxxx'x A3 or better Xxx0 Xxx0 Xxx0 unrated
----------------------------------------------------------------------------
Basis Points 10.00 12.50 15.00 17.50 20.00
----------------------------------------------------------------------------
9
The Facility Fee will be based upon the level corresponding to the
Reference Ratings at the time of determination. Any change in the
Reference Ratings shall effect an immediate change in the Facility Fee.
"Federal Funds Rate" means, for any period, a fluctuating interest
rate per annum equal for each day during such period to the weighted
average of the rates on overnight Federal funds transactions with members
of the Federal Reserve System arranged by Federal funds brokers, as
published for such day (or, if such day is not a Business Day, for the next
preceding Business Day) by the Federal Reserve Bank of New York, or, if
such rate is not so published for any day which is a Business Day, the
average of the quotations for such day on such transactions received by the
Administrative Agent from three Federal funds brokers of recognized
standing selected by it.
"GAAP" means generally accepted accounting principles in effect from
time to time, consistent with the principles used in preparing the most
recent June 30 financial statements that have been delivered to the Lenders
in accordance with Section 5.01(i) (provided that, prior to the first
delivery under said Section, such financial statements shall be the
financial statements referred to in Section 4.01(g) hereof).
"Governmental Approval" means any authorization, consent, approval,
license, franchise, lease, ruling, tariff, rate, permit, certificate,
exemption of, or filing or registration with, any governmental authority or
other legal or regulatory body.
"Hazardous Substance" means any waste, substance, or material
identified as hazardous, dangerous or toxic by any office, agency,
department, commission, board, bureau, or instrumentality of the United
States or of the State or locality in which the same is located having or
exercising jurisdiction over such waste, substance or material.
"Interest Period" means, for each A Advance made as part of the same A
Borrowing, the period commencing on the date of such A Advance or the date
of the Conversion of any A Advance into such an A Advance and ending on the
last day of the period selected by the Borrower pursuant to the provisions
below and, thereafter, each subsequent period commencing on the last day of
the immediately preceding Interest Period and ending on the last day of the
period selected by the Borrower pursuant to the provisions below. The
duration of each such Interest Period shall be 1 or 2 or 3 months in the
case of a Eurodollar Rate Advance, in each case as the Borrower may, upon
notice received by the Administrative Agent not later than 12:00 noon (New
York City time) on the third Business Day prior to the first day of such
Interest Period in the case of a Eurodollar Rate Advance, select; provided,
however, that:
(i) the Borrower may not select any Interest Period that ends after the
Termination Date;
(ii) the Borrower may not select any Interest Period that begins on or
prior to December 31, 1999 and that ends on or after January 1, 2000;
10
(iii) Interest Periods commencing on the same date for A Advances
comprising part of the same A Borrowing shall be of the same duration; and
(iv) whenever the last day of any Interest Period would otherwise
occur on a day other than a Business Day, the last day of such Interest
Period shall be extended to occur on the next succeeding Business Day,
provided, in the case of any Interest Period for a Eurodollar Rate Advance,
that if such extension would cause the last day of such Interest Period to
occur in the next following calendar month, the last day of such Interest
Period shall occur on the next preceding Business Day.
"Lenders" means the Banks listed on the signature pages hereof and
each Eligible Assignee that shall become a party hereto pursuant to Section
8.07.
"Lender Assignment" means an assignment and acceptance agreement
entered into by a Lender and an Eligible Assignee, and accepted by the
Administrative Agent, in substantially the form of Exhibit 8.07.
"Lien" has the meaning assigned to that term in Section 5.02(a).
"Loan Documents" means this Agreement, the Notes, the Syndication
Letter and all other agreements, instruments and documents now or hereafter
executed and/or delivered pursuant hereto or thereto.
"Majority Lenders" means, on any date of determination, Lenders that,
collectively, on such date (i) hold greater than 50% of the then aggregate
unpaid principal amount of the A Advances owing to Lenders and (ii) if no A
Advances are then outstanding, have Percentages in the aggregate greater
than 50%. Any determination of those Lenders constituting the Majority
Lenders shall be made by the Administrative Agent and shall be conclusive
and binding on all parties absent manifest error.
"Material Adverse Effect" means, relative to any occurrence of
whatever nature (including, without limitation, any adverse determination
in any litigation, arbitration or governmental investigation or
proceedings), a material adverse effect on:
(a) the consolidated business, assets, revenues, financial
condition, results of operations, operations or prospects of the
Borrower and its Subsidiaries; or
(b) the ability of the Borrower to make any payment when due
under this Agreement or to perform any of its other obligations under
the Loan Documents.
"Moody's" means Xxxxx'x Investors Service, Inc. or any successor
thereto.
11
"Multiemployer Plan" means a multiemployer plan, as defined in
Section 4001(a)(3) of ERISA, which is subject to Title IV of ERISA and to
which the Borrower or any ERISA Affiliate of the Borrower is making or
accruing an obligation to make contributions, or has within any of the
preceding five plan years made or accrued an obligation to make
contributions, such plan being maintained pursuant to one or more
collective bargaining agreements.
"Multiple Employer Plan" means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, which is subject to Title IV of ERISA and
which (i) is maintained for employees of the Borrower or an ERISA Affiliate
of the Borrower and at least one Person other than the Borrower and its
ERISA Affiliates or (ii) was so maintained and in respect of which the
Borrower or an ERISA Affiliate of the Borrower could have liability under
Section 4064 or 4069 of ERISA in the event such plan has been or were to be
terminated.
"Nonrecourse Debt" means any Debt that finances the acquisition,
development, ownership or operation of an asset in respect of which the
Person to which such Debt is owed has no recourse whatsoever to the
Borrower or any of its Affiliates other than:
(i) recourse to the named obligor with respect to such Debt (the
"Debtor") for amounts limited to the cash flow or net cash flow
(other than historic cash flow) from the asset; and
(ii) recourse to the Debtor for the purpose only of enabling amounts
to be claimed in respect of such Debt in an enforcement of any
security interest or lien given by the Debtor over the asset or
the income, cash flow or other proceeds deriving from the asset
(or given by any shareholder or the like in the Debtor over its
shares or like interest in the capital of the Debtor) to secure
the Debt, but only if:
(A) the extent of the recourse to the Debtor is limited solely
to the amount of any recoveries made on any such
enforcement; and
(B) the Person to which such Debt is owed is not entitled, by
virtue of any right or claim arising out of or in
connection with such Debt, to commence proceedings for the
winding up or dissolution of the Debtor or to appoint or
procure the appointment of any receiver, trustee, or
similar Person or officer in respect of the Debtor or any
of its assets (other than the assets subject to the
security interest or lien referred to above); and
(iii) recourse to the Debtor generally or indirectly to any Affiliate
of the Debtor, under any form of assurance, undertaking or
support, which recourse is limited to a claim for damages (other
than liquidated damages and damages required to be calculated in
a specified way) for a breach of
12
an obligation (other than a payment obligation or an obligation
to comply or to procure compliance by another with any financial
ratios or other tests of financial condition) by the Person
against which such recourse is available.
"Note" means an A Note or a B Note.
"Notice of A Borrowing" has the meaning assigned to that term in
Section 2.02(a).
"Notice of B Borrowing" has the meaning assigned to that term in
Section 2.03(a).
"Notice of Conversion" has the meaning assigned to that term in
Section 2.10.
"PBGC" means the Pension Benefit Guaranty Corporation (or any
successor entity) established under ERISA.
"Percentage" means, for any Lender on any date of determination, the
percentage obtained by dividing such Lender's Commitment on such day by the
total of the Commitments on such date, and multiplying the quotient so
obtained by 100%.
"Person" means an individual, partnership, corporation (including a
business trust), limited liability company, joint stock company, trust,
unincorporated association, joint venture or other entity, or a government
or any political subdivision or agency thereof.
"Plan" means a Single Employer Plan or a Multiple Employer Plan.
"PUHCA" means the Public Utility Holding Company Act of 1935, as
amended from time to time.
"Reference Banks" means Citibank, N.A., and any additional or
substitute Lenders as may be selected from time to time to act as Reference
Banks hereunder by the Administrative Agent, the Majority Lenders and the
Borrower.
"Register" has the meaning assigned to that term in Section 8.07(c).
"S&P" means Standard & Poor's Ratings Services, a division of the
XxXxxx-Xxxx Companies, Inc., or any successor thereto.
"Senior Financial Officer" means the President, the Chief Executive
Officer, the Chief Financial Officer or the Treasurer of the Borrower.
13
"Significant Subsidiary" means any direct or indirect Subsidiary of
the Borrower that, on a consolidated basis with any of its Subsidiaries as
of any date of determination, accounts for more than 20% of the
consolidated assets (valued at book value) of the Borrower and its
Subsidiaries; but shall not include any Subsidiary set up for the sole
purpose of facilitating the issuance of Transitional Funding Instruments.
"Single Employer Plan" means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, which is subject to Title IV of ERISA and
which (i) is maintained for employees of the Borrower or an ERISA Affiliate
of the Borrower and no Person other than the Borrower and its ERISA
Affiliates, or (ii) was so maintained and in respect of which the Borrower
or an ERISA Affiliate of the Borrower could have liability under Section
4069 of ERISA in the event such plan has been or were to be terminated.
"Subordinated Deferrable Interest Securities" means all obligations of
the Borrower and its Subsidiaries in respect of "ComEd-Obligated
Mandatorily Redeemable Preferred Securities of Subsidiary Trusts", as set
forth from time to time in the consolidated balance sheets of the Borrower
and its Consolidated Subsidiaries delivered pursuant to Section 5.01(i).
"Subsidiary" means, with respect to any Person, any corporation or
unincorporated entity of which more than 50% of the outstanding capital
stock (or comparable interest) having ordinary voting power (irrespective
of whether at the time capital stock (or comparable interest) of any other
class or classes of such corporation or entity shall or might have voting
power upon the occurrence of any contingency) is at the time directly or
indirectly owned by said Person (whether directly or through one of more
other Subsidiaries). In the case of an unincorporated entity, a Person
shall be deemed to have more than 50% of interests having ordinary voting
power only if such Person's vote in respect of such interests comprises
more than 50% of the total voting power of all such interests in the
unincorporated entity.
"Syndication Letter" means that certain Syndication Letter, dated the
date hereof, among the Borrower, Xxxxxxx Xxxxx Xxxxxx Inc. and Citibank, in
form and substance satisfactory to the Agent.
"Termination Date" means the earlier to occur of (i) January 31, 2000
(or such later date as the Lenders may from time to time agree pursuant to
Section 2.18(a)) and (ii) the date of termination or reduction in whole of
the Commitments pursuant to Section 2.05 or 6.01.
"Transitional Funding Instruments" means any instruments, pass-through
certificates, notes, debentures, certificates of participation, bonds,
certificates of beneficial interest or other evidences of indebtedness or
instruments evidencing a beneficial interest which (i) are issued pursuant
to a "transitional funding order" (as such term is defined in Section 18-
102 of the Illinois Public Utilities Act, as amended) issued by the
Illinois Commerce Commission at the request of an electric utility and (ii)
are
14
secured by or otherwise payable from non-bypassable cent per kilowatt
hour charges authorized pursuant to such order to be applied and invoiced
to customers of such utility. The instrument funding charges so applied
and invoiced must be deducted and stated separately from the other charges
invoiced by such utility against its customers.
"Type" has the meaning assigned to that term (i) in the definition of
"A Advance" when used in such context and (ii) in the definition of
"Borrowing" when used in such context.
"Unmatured Default" means an event that, with the giving of notice or
lapse of time, or both, would constitute an Event of Default.
"Year 2000 Issues" means, in respect of a person or entity,
anticipated costs, problems and uncertainties associated with the inability
of certain computer applications to effectively handle data including dates
on and after January 1, 2000, as such inability affects the business,
operations and financial condition of such person or entity.
"Year 2000 Program" means, in respect of a person or entity, a program
for remediating on a timely basis any Year 2000 Issues of or relating to
such person or entity that if not remediated on a timely basis, could
reasonably be expected to result in a Material Adverse Effect on such
person or entity.
SECTION 1.02. Computation of Time Periods. Unless otherwise indicated, each
reference in this Agreement to a specific time of day is a reference to New York
City time. In the computation of periods of time under this Agreement, any
period of a specified number of days or months shall be computed by including
the first day or month occurring during such period and excluding the last such
day or month. In the case of a period of time "from" a specified date "to" or
"until" a later specified date, the word "from" means "from and including" and
the words "to" and "until" each means "to but excluding".
SECTION 1.03. Computations of Outstandings. Whenever reference is made in
this Agreement to the "principal amount outstanding" on any date under this
Agreement, such reference shall refer to the aggregate principal amount of all
Advances outstanding on such date after giving effect to all Extensions of
Credit to be made on such date and the application of the proceeds thereof.
SECTION 1.04. Accounting Terms. Except as otherwise provided herein, all
accounting terms not specifically defined herein shall be construed in
accordance with generally accepted accounting principles.
15
ARTICLE II
AMOUNTS AND TERMS OF THE ADVANCES
SECTION 2.01. The A Advances. (a) Each Lender severally agrees, on the
terms and conditions hereinafter set forth, to make A Advances to the Borrower
from time to time on any Business Day during the period from the Closing until
the Termination Date in an aggregate outstanding amount not to exceed at any
time such Lender's Available Commitment, provided that the aggregate amount of
the Commitments of the Lenders shall be deemed used from time to time to the
extent of the aggregate amount of the B Advances then outstanding and such
deemed use of the aggregate amount of the Commitments shall be applied to the
Lenders ratably according to their respective Percentages (such deemed use of
the aggregate amount of the Commitments being a "B Reduction"). Each A Borrowing
shall be in an aggregate amount not less than $10,000,000 (or, if lower, the
amount of the Available Commitments) or an integral multiple of $1,000,000 in
excess thereof and shall consist of A Advances of the same Type made on the same
day by the Lenders ratably according to their respective Percentages. Within the
limits of each Lender's Commitment and as hereinabove and hereinafter provided,
the Borrower may request Extensions of Credit hereunder, and repay or prepay
Advances pursuant to Section 2.11 and utilize the resulting increase in the
Available Commitments for further Extensions of Credit in accordance with the
terms hereof.
(b) In no event shall the Borrower be entitled to request or receive any
Extensions of Credit that would cause the principal amount outstanding hereunder
to exceed the Commitments.
SECTION 2.02. Making the A Advances. (a) Each A Borrowing shall be made on
notice, given not later than 12:00 noon (i) on the third Business Day prior to
the date of the proposed A Borrowing, in the case of an A Borrowing comprised of
Eurodollar Rate Advances, and (ii) on the date of the proposed A Borrowing, in
the case of an A Borrowing comprised of Base Rate Advances, in each case by the
Borrower to the Administrative Agent, which shall give to each Lender prompt
notice thereof by telecopier, telex or cable. Each such notice of an A Borrowing
(a "Notice of A Borrowing") shall be by telecopier, telex or cable, in
substantially the form of Exhibit 2.02(a) hereto, specifying therein the
requested (A) date of such A Borrowing, (B) Type of A Advances comprising such A
Borrowing, (C) aggregate amount of such A Borrowing and (D) in the case of an A
Borrowing comprised of Eurodollar Rate Advances, initial Interest Period for
each such A Advance. Each Lender shall, before (x) 12:00 noon on the date of
such A Borrowing, in the case of an A Borrowing comprised of Eurodollar Rate
Advances, and (y) 1:00 p.m. on the date of such A Borrowing, in the case of an A
Borrowing comprised of Base Rate Advances, make available for the account of its
Applicable Lending Office to the Administrative Agent at its address referred to
in Section 8.02, in same day funds, such Lender's ratable portion of such A
Borrowing. After the Administrative Agent's receipt of such funds and upon
fulfillment of the applicable conditions set forth in Article III, the
Administrative Agent will promptly make such funds available to the Borrower at
the Administrative Agent's aforesaid address.
16
(b) Each Notice of A Borrowing shall be irrevocable and binding on the
Borrower. In the case of any A Borrowing which the related Notice of A Borrowing
specifies is to be comprised of Eurodollar Rate Advances, the Borrower shall
indemnify each Lender against any loss, cost or expense incurred by such Lender
as a result of any failure to fulfill on or before the date specified in such
Notice of A Borrowing for such A Borrowing the applicable conditions set forth
in Article III, including, without limitation, any loss, cost or expense
incurred by reason of the liquidation or reemployment of deposits or other funds
acquired by such Lender to fund the A Advance to be made by such Lender as part
of such A Borrowing when such A Advance, as a result of such failure, is not
made on such date.
(c) Unless the Administrative Agent shall have received notice from a
Lender prior to the date of any A Borrowing that such Lender will not make
available to the Administrative Agent such Lender's A Advance as part of such A
Borrowing, the Administrative Agent may assume that such Lender has made such A
Advance available to the Administrative Agent on the date of such A Borrowing in
accordance with subsection (a) of this Section 2.02 and the Administrative Agent
may, in reliance upon such assumption, make available to the Borrower on such
date a corresponding amount. If and to the extent that such Lender shall not
have so made such A Advance available to the Administrative Agent, such Lender
and the Borrower severally agree to repay to the Administrative Agent forthwith
on demand such corresponding amount, together with interest thereon, for each
day from the date such amount is made available to the Borrower until the date
such amount is repaid to the Administrative Agent, at (i) in the case of the
Borrower, the interest rate applicable at the time to A Advances comprising such
A Borrowing and (ii) in the case of such Lender, the Federal Funds Rate. If such
Lender shall repay to the Administrative Agent such corresponding amount, such
amount so repaid shall constitute such Lender's A Advance as part of such A
Borrowing for purposes of this Agreement.
(d) The failure of any Lender to make the A Advance to be made by it as
part of any A Borrowing shall not relieve any other Lender of its obligation, if
any, hereunder to make its A Advance on the date of such A Borrowing, but no
Lender shall be responsible for the failure of any other Lender to make the A
Advance to be made by such other Lender on the date of any A Borrowing.
SECTION 2.03. The B Advances. (a) Each Lender severally agrees that the
Borrower may request B Borrowings under this Section 2.03 from time to time on
any Business Day during the period from the date hereof until the date occurring
30 days prior to the Termination Date in the manner, and subject to the terms
and conditions, set forth below. The rates of interest offered by the Lenders
and accepted by the Borrower for each B Borrowing shall be fixed rates per annum
or LIBOR based bids.
(i) The Borrower may request a B Borrowing under this Section 2.03 by
delivering to the Administrative Agent, by telecopier, telex or cable, a
notice of a B Borrowing (a "Notice of B Borrowing"), in substantially the
form of Exhibit 2.03(a)(i) hereto, specifying the date and aggregate amount
of the proposed B Borrowing, the maturity date for repayment of each B
Advance to be made as part of such B Borrowing (which maturity date may not
be earlier than the date occurring 30 days after the date of
17
such B Borrowing nor later than the earlier to occur of the then-scheduled
Termination Date and the date occurring 180 days following the date of such
B Borrowing), the interest payment date or dates relating thereto, the
interest rate basis to be used by the Lenders and any other terms to be
applicable to such B Borrowing, not later than 3:00 p.m. at least one
Business Day prior to the date of the proposed B Borrowing for fixed rate
bids and not later than 3:00 p.m. at least four Business Days prior to the
date of the proposed B Borrowing for LIBOR based bids. The Administrative
Agent shall in turn promptly notify each Lender of each request for a B
Borrowing received by it from the Borrower by sending such Lender a copy of
the related Notice of B Borrowing.
(ii) Each Lender may, if, in its sole discretion, it elects to do so,
irrevocably offer to make one or more B Advances to the Borrower as part of
such proposed B Borrowing at a rate or rates of interest specified by such
Lender in its sole discretion, by notifying the Administrative Agent (which
shall give prompt notice thereof to the Borrower), before 11:00 a.m., on
the date of such proposed B Borrowing, of the minimum amount and maximum
amount of each B Advance which such Lender would be willing to make as part
of such proposed B Borrowing (which amounts may, subject to the limitation
contained in subsection (d) below, exceed such Lender's Commitment), the
rate or rates of interest therefor and such Lender's Applicable Lending
Office with respect to such B Advance; provided that if the Administrative
Agent in its capacity as a Lender shall, in its sole discretion, elect to
make any such offer, it shall notify the Borrower of such offer before
10:30 a.m. on the date on which notice of such election is to be given to
the Administrative Agent by the other Lenders. If any Lender shall elect
not to make such an offer, such Lender shall so notify the Administrative
Agent before 11:00 a.m. on the date on which notice of such election is to
be given to the Administrative Agent by the other Lenders, and such Lender
shall not be obligated to, and shall not, make any B Advance as part of
such B Borrowing; provided that the failure by any Lender to give such
notice shall not cause such Lender to be obligated to make any B Advance as
part of such proposed B Borrowing.
(iii) The Borrower shall, in turn, before 12:00 noon on the date of
such proposed B Borrowing either
(x) cancel such B Borrowing by either giving the Administrative
Agent notice to that effect or failing to accept one or more offers as
provided in clause (y) below, or
(y) accept one or more of the offers, in its sole discretion,
made by any Lender or Lenders pursuant to paragraph (ii) above, in
order of the lowest to the highest rates of interest, with pro rata
allocation of any matching rates of interest, by giving written notice
to the Administrative Agent of the amount of each B Advance (which
amount shall be equal to or greater than the minimum amount, and equal
to or less than the maximum amount, notified to the Borrower by the
Administrative Agent on behalf of such Lender for such B Advance
pursuant to paragraph (ii) above) to be made by each Lender as part of
such B Borrowing, and
18
reject any remaining offers made by Lenders pursuant to paragraph (ii)
above, by giving the Administrative Agent written notice to that
effect.
(iv) If the Borrower cancels such B Borrowing pursuant to paragraph
(iii)(x) above, the Administrative Agent shall give prompt notice thereof
to the Lenders and such B Borrowing shall not be made.
(v) If the Borrower accepts one or more of the offers made by any
Lender or Lenders pursuant to paragraph (iii)(y) above, such acceptance
shall be irrevocable and binding on the Borrower and, subject to the
satisfaction of the applicable conditions set forth in Article III, on such
Lender or Lenders. The Borrower shall indemnify each such Lender against
any loss, cost or expense incurred by such Lender as a result of any
failure to fulfill, on or before the date specified in the notice provided
pursuant to paragraph (vii)(A) below, the applicable conditions set forth
in Article III, including, without limitation, any loss, cost or expense
incurred by reason of the liquidation or reemployment of deposits or other
funds acquired by such Lender to fund the B Advance to be made by such
Lender as part of such B Borrowing when such B Advance, as a result of such
failure, is not made on such date.
(vi) Unless the Administrative Agent shall have received notice from a
Lender prior to the date of any B Borrowing in which such Lender is
required to participate that such Lender will not make available to the
Administrative Agent such Lender's B Advance as part of such B Borrowing,
the Administrative Agent may assume that such Lender has made such B
Advance available to the Administrative Agent on the date of such B
Borrowing in accordance with paragraph (vii) below, and the Administrative
Agent may, in reliance upon such assumption, make available to the Borrower
on such date a corresponding amount. If and to the extent that such Lender
shall not have so made such B Advance available to the Administrative
Agent, such Lender and the Borrower severally agree to repay to the
Administrative Agent forthwith on demand such corresponding amount together
with interest thereon, for each day from the date such amount is made
available to the Borrower until the date such amount is repaid to the
Administrative Agent, at (i) in the case of the Borrower, the interest rate
applicable to such B Advance and (ii) in the case of such Lender, the
Federal Funds Rate. If such Lender shall repay to the Administrative Agent
such corresponding amount, such amount so repaid shall constitute such
Lender's B Advance as part of such B Borrowing for purposes of this
Agreement.
(vii) If the Borrower accepts one or more of the offers made by any
Lender or Lenders pursuant to paragraph (iii)(y) above, the Administrative
Agent shall in turn promptly notify (A) each Lender that has made an offer
as described in paragraph (ii) above, of the date and aggregate amount of
such B Borrowing and whether or not any offer or offers made by such Lender
pursuant to paragraph (ii) above, have been accepted by the Borrower, (B)
each Lender that is to make a B Advance as part of such B Borrowing of the
amount of the B Advance to be made by such Lender as part of such B
Borrowing and (C) each Lender that is to make a B Advance as part of such B
19
Borrowing, upon receipt, that the Administrative Agent has received forms
of documents appearing to fulfill the applicable conditions set forth in
Article III. Each Lender that is to make a B Advance as part of such B
Borrowing shall, before 1:00 p.m. on the date of such B Borrowing specified
in the notice received from the Administrative Agent pursuant to clause (A)
of the preceding sentence or any later time when such Lender shall have
received notice from the Administrative Agent pursuant to clause (C) of the
preceding sentence, make available for the account of its Applicable
Lending Office to the Administrative Agent at its address referred to in
Section 8.02 such Lender's B Advance, in same day funds. Upon fulfillment
of the applicable conditions set forth in Article III and after receipt by
the Administrative Agent of such funds, the Administrative Agent will
promptly make such funds available to the Borrower at the Administrative
Agent's aforesaid address. Promptly after each B Borrowing the
Administrative Agent will notify each Lender of the amount of the B
Borrowing, the consequent B Reduction and the dates upon which such B
Reduction commenced and will terminate.
(b) Each B Borrowing shall be in an aggregate amount not less than
$10,000,000 or an integral multiple of $1,000,000 in excess thereof.
(c) Within the limits and on the conditions set forth in this Section
2.03, the Borrower may from time to time borrow under this Section 2.03, repay
pursuant to subsection (e) below and reborrow under this Section 2.03, provided
that a B Borrowing shall not be made within three Business Days of the date of
any other B Borrowing.
(d) In no event shall the Borrower be entitled to request or receive any B
Advances that would cause the principal amount outstanding hereunder to exceed
the Commitments.
(e) The Borrower shall repay to the Administrative Agent for the account
of each Lender which has made a B Advance, or each other holder of a B Note, on
the maturity date of each B Advance (such maturity date being that specified by
the Borrower for repayment of such B Advance in the related Notice of B
Borrowing delivered pursuant to subsection (a)(i) above, and provided in the B
Note evidencing such B Advance), the then unpaid principal amount of such B
Advance.
(f) The Borrower shall pay interest on the unpaid principal amount of each
B Advance from the date of such B Advance to the date the principal amount of
such B Advance is repaid in full, at the rate of interest for such B Advance
specified by the Lender making such B Advance in its notice with respect thereto
delivered pursuant to subsection (a)(ii) above, payable on the interest payment
date or dates specified by the Borrower for such B Advance in the related Notice
of B Borrowing delivered pursuant to subsection (a)(i) above, as provided in the
B Note evidencing such B Advance, provided, however, that upon the occurrence
and during the continuance of any Event of Default, each B Advance shall bear
interest at the Default Rate.
20
(g) The indebtedness of the Borrower resulting from each B Advance made to
the Borrower as part of a B Borrowing shall be evidenced by a separate B Note of
the Borrower payable to the order of the Lender making such B Advance.
SECTION 2.04. Fees. (a) The Borrower agrees to pay to the Administrative
Agent for the account of each Lender the Facility Fee from the date hereof, in
the case of each Bank, and from the effective date specified in the Lender
Assignment pursuant to which it became a Lender, in the case of each other
Lender, until the Termination Date, payable quarterly in arrears on the last day
of each December, March, June and September during the term of such Lender's
Commitment, commencing December 31, 1999, and on the Termination Date.
(b) In addition to the fee provided for in subsection (a) above, the
Borrower shall pay to the Administrative Agent, for the account of the
Administrative Agent, such fees as are provided for in the Syndication Letter.
SECTION 2.05. Reduction of the Commitments. (a) The Borrower shall have
the right, upon at least three Business Days' notice to the Administrative
Agent, to terminate in whole or reduce ratably in part the unused portions of
the respective Commitments of the Lenders; provided that the aggregate amount of
the Commitments of the Lenders shall not be reduced to an amount which is less
than the aggregate principal amount of the A and B Advances then outstanding;
and provided, further, that each partial reduction shall be in a minimum amount
of $10,000,000 or any whole multiple of $1,000,000 in excess thereof. Any
termination or reduction of the Commitments shall be irrevocable, and the
Commitments shall not thereafter be reinstated.
(b) On the Termination Date, and upon the occurrence of a Change of
Control, the Commitments of the Lenders shall be reduced to zero.
(c) So long as Citibank is the sole Lender hereunder, Citibank may, upon
notice to the Borrower, terminate its Commitment at any time under the
conditions set forth in the Syndication Letter.
SECTION 2.06. Repayment of A Advances. The Borrower shall repay the
principal amount of each A Advance made by each Lender in accordance with the A
Note to the order of such Lender.
SECTION 2.07. Interest on A Advances. The Borrower shall pay interest
on the unpaid principal amount of each A Advance owing to each Lender from the
date of such A Advance until such principal amount shall be paid in full, at the
Applicable Rate for such A Advance (except as otherwise provided in this Section
2.07), payable as follows:
(a) Base Rate Advances. If such A Advance is a Base Rate Advance,
interest thereon shall be payable quarterly in arrears on the last day of each
March, June, September and December on the date of any Conversion of such Base
Rate Advance and on the date such Base Rate Advance shall become due and payable
or shall otherwise be paid in full; provided that at any time an Event of
Default shall have occurred and be continuing, thereafter each Base Rate
21
Advance shall bear interest payable on demand, at a rate per annum equal at all
times to the Default Rate.
(b) Eurodollar Rate Advances. If such A Advance is a Eurodollar Rate
Advance, interest thereon shall be payable on the last day of such Interest
Period and, if the Interest Period for such A Advance has duration of more than
three months, on that day of each third month during such Interest Period that
corresponds to the first day of such Interest Period (or, if any such month does
not have a corresponding day, then on the last day of such month); provided that
at any time an Event of Default shall have occurred and be continuing,
thereafter each Eurodollar Rate Advance shall bear interest payable on demand,
at a rate per annum equal at all times to the Default Rate.
SECTION 2.08. Additional Interest on Eurodollar Rate Advances. The
Borrower shall pay to Administrative Agent for the account of each Lender any
costs actually incurred by such Lender with respect to Eurodollar Rate Advances
which are attributable to such Lender's compliance with regulations of the Board
of Governors of the Federal Reserve System requiring the maintenance of reserves
with respect to liabilities or assets consisting of or including Eurocurrency
Liabilities. Such costs shall be paid to the Administrative Agent for the
account of such Lender in the form of additional interest on the unpaid
principal amount of each Eurodollar Rate Advance of such Lender, from the date
of such A Advance until such principal amount is paid in full, at an interest
rate per annum equal at all times to the remainder obtained by subtracting (i)
the Eurodollar Rate for the Interest Period for such A Advance from (ii) the
rate obtained by dividing such Eurodollar Rate by a percentage equal to 100%
minus the Eurodollar Reserve Percentage of such Lender for such Interest Period,
payable on each date on which interest is payable on such A Advance. Such
additional interest shall be determined by such Lender and notified to the
Borrower through the Administrative Agent. A certificate as to the amount of
such additional interest, submitted to the Borrower and the Administrative Agent
by such Lender, shall be conclusive and binding for all purposes, absent
manifest error, provided that the determination thereof shall have been made by
such Lender in good faith.
SECTION 2.09. Interest Rate Determination. (a) Each Reference Bank agrees
to furnish to the Administrative Agent timely information for the purpose of
determining each Eurodollar Rate. If any one or more of the Reference Banks
shall not furnish such timely information to the Administrative Agent for the
purpose of determining any such interest rate, the Administrative Agent shall
determine such interest rate on the basis of timely information furnished by the
remaining Reference Banks.
(a) The Administrative Agent shall give prompt notice to the Borrower and
the Lenders of the applicable interest rate determined by the Administrative
Agent for purposes of Section 2.07(a) or (b), and the applicable rate, if any,
furnished by each Reference Bank for the purpose of determining the applicable
interest rate under Section 2.07(b).
(b) If no Reference Bank furnishes timely information to the
Administrative Agent for determining the Eurodollar Rate for any Eurodollar Rate
Advances, due to the unavailability of funds to such Reference Banks in the
relevant financial markets:
22
(i) the Administrative Agent shall forthwith notify the Borrower and
the Lenders that the interest rate cannot be determined for such Eurodollar
Rate Advances;
(ii) each such Advance will automatically, on the last day of the then
existing Interest Period therefor, Convert into a Base Rate Advance (or if
such Advance is then a Base Rate Advance, will continue as a Base Rate
Advance); and
(iii) the obligation of the Lenders to make, or to Convert A Advances
into, Eurodollar Rate Advances shall be suspended until the Administrative
Agent shall notify the Borrower and the Lenders that the circumstances
causing such suspension no longer exist.
(c) If, with respect to any Eurodollar Rate Advances, the Majority Lenders
notify the Administrative Agent that the Eurodollar Rate for any Interest Period
for such Advances will not adequately reflect the cost to such Majority Lenders
of making, funding or maintaining their respective Eurodollar Rate Advances for
such Interest Period, the Administrative Agent shall forthwith so notify the
Borrower and the Lenders, whereupon:
(i) each Eurodollar Rate Advance will automatically, on the last day
of the then existing Interest Period therefor, Convert into a Base Rate
Advance; and
(ii) the obligation of the Lenders to make, or to Convert A Advances
into, Eurodollar Rate Advances shall be suspended until the Administrative
Agent shall notify the Borrower and the Lenders that the circumstances
causing such suspension no longer exist.
(d) If the Borrower shall fail to (i) select the duration of any Interest
Period for any Eurodollar Rate Advances in accordance with the provisions
contained in the definition of "Interest Period" in Section 1.01, (ii) provide a
Notice of Conversion with respect to any Eurodollar Rate Advances on or prior to
12:00 noon on the third Business Day prior to the last day of the Interest
Period applicable thereto, in the case of a Conversion to or in respect of
Eurodollar Rate Advances, or (iii) satisfy the applicable conditions precedent
set forth in Section 3.02 with respect to the Conversion to or in respect of any
Eurodollar Rate Advances, the Administrative Agent will forthwith so notify the
Borrower and the Lenders and such Advances will automatically, on the last day
of the then existing Interest Period therefor, Convert into Base Rate Advances;
provided, however, that if, in the case of any failure by the Borrower pursuant
to clause (iii) above, the Majority Lenders do not notify the Borrower within 30
days after such Conversion into Base Rate Advances that they have agreed to
waive, or have decided not to waive, the applicable conditions precedent set
forth in Section 3.02 that the Borrower failed to satisfy, the Majority Lenders
shall be deemed to have waived such conditions precedent solely with respect to
the Advances so Converted, and the Borrower shall, at any time after such 30-day
period, be permitted to Convert such Advances into Eurodollar Rate Advances; and
provided further, however, that such deemed waiver shall be of no further force
or effect if, at any time after such 30-day period, the Majority Lenders notify
the Borrower that they no longer agree to waive such conditions precedent, in
which case any such Advances so Converted into Eurodollar
23
Rate Advances shall automatically Convert into Base Rate Advances on the last
day of the then existing Interest Period therefor.
(e) On the date on which the aggregate unpaid principal amount of A
Advances comprising any A Borrowing shall be reduced, by payment or prepayment
or otherwise, to less than the product of (i) $1,000,000 and (ii) the number of
Lenders on such date, such A Advances shall, if they are Advances of a Type
other than Base Rate Advances, automatically Convert into Base Rate Advances,
and on and after such date the right of the Borrower to Convert such A Advances
into Advances of a Type other than Base Rate Advances shall terminate; provided,
however, that if and so long as each such A Advance shall be of the same Type
and have the same Interest Period as A Advances comprising another A Borrowing
or other A Borrowings, and the aggregate unpaid principal amount of all such A
Advances shall equal or exceed the product of (i) $1,000,000 and (ii) the
number of Lenders on such date, the Borrower shall have the right to continue
all such A Advances as, or to Convert all such A Advances into, Advances of such
Type having such Interest Period.
(f) Upon the occurrence and during the continuance of any Event of
Default, each outstanding Eurodollar Rate Advance shall automatically Convert to
a Base Rate Advance at the end of the Interest Period then in effect for such
Eurodollar Rate Advance.
SECTION 2.10. Voluntary Conversion of A Advances. Subject to the
applicable conditions set forth in Section 3.02, the Borrower may on any
Business Day, by delivering a notice of Conversion (a "Notice of Conversion") to
the Administrative Agent not later than 12:00 noon (i) on the third Business Day
prior to the date of the proposed Conversion, in the case of a Conversion to or
in respect of Eurodollar Rate Advances and (ii) on the date of the proposed
Conversion, in the case of a Conversion to or in respect of Base Rate Advances,
and subject to the provisions of Sections 2.09 and 2.13, Convert all A Advances
of one Type comprising the same A Borrowing into Advances of another Type;
provided, however, that, in the case of any Conversion of any Eurodollar Rate
Advances into Advances of another Type on a day other than the last day of an
Interest Period for such Eurodollar Rate Advances, the Borrower shall be
obligated to reimburse the Lenders in respect thereof pursuant to Section
8.04(b). Each such Notice of Conversion shall be in substantially the form of
Exhibit 2.10 and shall, within the restrictions specified above, specify (A) the
date of such Conversion, (B) the A Advances to be Converted, (C) if such
Conversion is into Eurodollar Rate Advances, the duration of the Interest Period
for each such A Advance, and (D) the aggregate amount of A Advances proposed to
be Converted.
SECTION 2.11. Optional Prepayments of A Advances. The Borrower may,
upon at least three Business Days notice to the Administrative Agent stating the
proposed date and aggregate principal amount of the prepayment, and if such
notice is given the Borrower shall, prepay the outstanding principal amounts of
the A Advances comprising part of the same Borrowing in whole or ratably in
part, together with accrued interest to the date of such prepayment on the
principal amount prepaid; provided, however, that each partial prepayment shall
be in an aggregate principal amount not less than $10,000,000 (or, if lower, the
principal amount outstanding hereunder on the date of such prepayment) or an
integral multiple of
24
$1,000,000 in excess thereof. In the case of any such prepayment of a Eurodollar
Rate Advance, the Borrower shall be obligated to reimburse the Lender(s) in
respect thereof pursuant to Section 8.04(b). Except as provided in this Section
2.11, the Borrower shall have no right to prepay any principal amount of any
Advances. The Borrower shall have no right to optionally prepay any principal
amount of any B Advances.
SECTION 2.12. Mandatory Prepayments. (a) On the date of any termination
or reduction of the Commitments pursuant to Section 2.05, the Borrower shall pay
or prepay for the ratable accounts of the Lenders so much of the principal
amount outstanding under this Agreement as shall be necessary in order that the
principal amount outstanding (after giving effect to such prepayment) will not
exceed the amount of Commitments following such termination or reduction,
together with (A) accrued interest to the date of such prepayment on the
principal amount repaid or prepaid and (B) in the case of prepayments of
Eurodollar Rate Advances or B Advances, any amount payable to the Lenders
pursuant to Section 8.04(b).
(b) The Borrower shall pay or prepay for the ratable account of the
Lenders the aggregate principal amount outstanding hereunder such that, for a
period of at least one day during any 364-day period, the principal amount
outstanding hereunder shall be zero.
(c) All prepayments required to be made pursuant to this Section 2.12
shall be applied by the Administrative Agent as follows:
(i) first, to the prepayment of the A Advances (without reference to
minimum dollar requirements), applied to outstanding Base Rate Advances up
to the full amount thereof before they are applied to the ratable
prepayment of Eurodollar Rate Advances; and
(ii) second, to the prepayment of the B Advances (without reference to
minimum dollar requirements), applied ratably among all the Lenders holding
B Advances.
SECTION 2.13. Increased Costs. (a) If, due to either (i) the
introduction of or any change (other than any change by way of imposition or
increase of reserve requirements included in the Eurodollar Rate Reserve
Percentage) in or in the interpretation of any law or regulation or (ii) the
compliance with any guideline or request from any central bank or other
governmental authority (whether or not having the force of law), there shall be
any increase in the cost to any Lender of agreeing to make or making, funding or
maintaining Eurodollar Rate Advances, then the Borrower shall from time to time,
upon demand by such Lender (with a copy of such demand to the Administrative
Agent), pay to the Administrative Agent for the account of such Lender
additional amounts sufficient to compensate such Lender for such increased cost.
A certificate as to the amount of such increased cost, submitted to the Borrower
and the Administrative Agent by such Lender, shall be conclusive and binding for
all purposes, absent manifest error, provided that the determination thereof
shall have been made by such Lender in good faith.
(b) If any Lender determines that compliance with any law or regulation or
any guideline or request from any central bank or other governmental authority
(whether or not having the force of law) affects or would affect the amount of
capital required or expected to be
25
maintained by such Lender or any corporation controlling such Lender and that
the amount of such capital is increased by or based upon the existence of such
Lender's commitment to lend hereunder and other commitments of this type, then,
upon demand by such Lender (with a copy of such demand to the Administrative
Agent), the Borrower shall immediately pay to the Administrative Agent for the
account of such Lender, from time to time as specified by such Lender,
additional amounts sufficient to compensate such Lender or such corporation in
the light of such circumstances, to the extent that such Lender reasonably
determines such increase in capital to be allocable to the existence of such
Lender's Commitment. A certificate as to such amounts submitted to the Borrower
and the Administrative Agent by such Lender, describing in reasonable detail the
manner in which such amounts have been calculated, shall be conclusive and
binding for all purposes, absent manifest error, provided that the determination
and allocation thereof shall have been made by such Lender in good faith.
(c) Notwithstanding the provisions of subsection (a) or (b) to the
contrary, no Lender shall be entitled to demand compensation or be compensated
hereunder to the extent that such compensation relates to any period of time
more than 180 days prior to the date upon which such Lender first notified the
Borrower of the occurrence of the event entitling such Lender to such
compensation (unless, and to the extent that, any such compensation so demanded
shall relate to the retroactive application of any event so notified to the
Borrower).
SECTION 2.14. Illegality. Notwithstanding any other provision of this
Agreement to the contrary, if any Lender (the "Affected Lender") shall notify
the Administrative Agent and the Borrower that the introduction of or any change
in or in the interpretation of any law or regulation makes it unlawful, or any
central bank or other governmental authority asserts that it is unlawful, for
the Affected Lender or its Eurodollar Lending Office to perform its obligations
hereunder to make Eurodollar Rate Advances or to fund or maintain Eurodollar
Rate Advances hereunder, (i) all Eurodollar Rate Advances of the Affected Lender
shall, on the fifth Business Day following such notice from the Affected Lender,
automatically be Converted into a like number of Base Rate Advances, each in the
amount of the corresponding Eurodollar Rate Advance of the Affected Lender being
so Converted (each such Advance, as so Converted, being an "Affected Lender
Advance"), and the obligation of the Affected Lender to make, maintain, or
Convert A Advances into Eurodollar Rate Advances shall thereupon be suspended
until the Administrative Agent shall notify the Borrower and the Lenders that
the circumstances causing such suspension no longer exist, or the Affected
Lender has been replaced pursuant to Section 8.07(g), and (ii) in the event
that, on the last day of each of the then-current Interest Periods for each
Eurodollar Rate Advance (each such Advance being an "Unaffected Lender Advance")
of each of the other Lenders (each such Lender being an "Unaffected Lender"),
the Administrative Agent shall have yet to notify the Borrower and the Lenders
that the circumstances causing such suspension of the Affected Lender's
obligations as aforesaid no longer exist, or the Affected Lender has not yet
been replaced pursuant to Section 8.07(g), such Unaffected Lender Advance shall
be Converted by the Borrower in accordance with Section 2.10 into an Advance of
another Type (or, in the event that the Borrower shall fail to duly deliver a
Notice of Conversion with respect thereto, into a Base Rate Advance), and the
obligation of such Unaffected Lender to make, maintain, or Convert A Advances
into Eurodollar Rate Advances shall be suspended until the Administrative Agent
shall so notify the Borrower and the Lenders, or the Affected Lender
26
shall be so replaced. For purposes of any prepayment under this Agreement, each
Affected Lender Advance shall be deemed to continue to be part of the same
Borrowing as the Unaffected Lender Advance to which it corresponded at the time
of the Conversion of such Affected Lender Advance pursuant to clause (i) above.
SECTION 2.15. Payments and Computations. (a) The Borrower shall make
each payment hereunder and under the Notes not later than 1:00 p.m. on the day
when due in Dollars to the Administrative Agent at its address referred to in
Section 8.02 in same day funds. The Administrative Agent will promptly
thereafter cause to be distributed like funds relating to the payment of
principal or interest or fees ratably (other than amounts payable pursuant to
Section 2.03, 2.08, 2.12(b)(iii), 2.16 or 8.04(b)) to the Lenders for the
account of their respective Applicable Lending Offices, and like funds relating
to the payment of any other amount payable to any Lender to such Lender for the
account of its Applicable Lending Office, in each case to be applied in
accordance with the terms of this Agreement. Upon its acceptance of a Lender
Assignment and recording of the information contained therein in the Register
pursuant to Section 8.07(d), from and after the effective date specified in such
Lender Assignment, the Administrative Agent shall make all payments hereunder
and under the Notes in respect of the interest assigned thereby to the Lender
assignee thereunder, and the parties to such Lender Assignment shall make all
appropriate adjustments in such payments for periods prior to such effective
date directly between themselves.
(b) The Borrower hereby authorizes each Lender, if and to the extent
payment owed to such Lender is not made when due hereunder or under any Note
held by such Lender, to charge from time to time against any or all of the
Borrower's accounts with such Lender any amount so due.
(c) All computations of interest based on the Alternate Base Rate and the
Federal Funds Rate and of fees shall be made by the Administrative Agent on the
basis of a year of 365 or 366 days, as the case may be, and all computations of
interest based on the Eurodollar Rate shall be made by the Administrative Agent,
and all computations of interest pursuant to Section 2.09 shall be made by a
Lender, on the basis of a year of 360 days, in each case for the actual number
of days (including the first day but excluding the last day) occurring in the
period for which such interest or fees are payable. Each determination by the
Administrative Agent (or, in the case of Section 2.09, by a Lender) of an
interest rate hereunder shall be conclusive and binding for all purposes, absent
manifest error.
(d) Whenever any payment hereunder or under the Notes shall be stated to
be due on a day other than a Business Day, such payment shall be made on the
next succeeding Business Day, and such extension of time shall in such case be
included in the computation of payment of interest or fees, as the case may be;
provided, however, that if such extension would cause payment of interest on or
principal of Eurodollar Rate Advances to be made in the next following calendar
month, such payment shall be made on the next preceding Business Day.
(e) Unless the Administrative Agent shall have received notice from the
Borrower prior to the date on which any payment is due to the Lenders hereunder
that the Borrower will
27
not make such payment in full, the Administrative Agent may assume that the
Borrower has made such payment in full to the Administrative Agent on such date
and the Administrative Agent may, in reliance upon such assumption, cause to be
distributed to each Lender on such due date an amount equal to the amount then
due such Lender. If and to the extent that the Borrower shall not have so made
such payment in full to the Administrative Agent, each Lender shall repay to the
Administrative Agent forthwith on demand such amount distributed to such Lender
together with interest thereon, for each day from the date such amount is
distributed to such Lender until the date such Lender repays such amount to the
Administrative Agent, at the Federal Funds Rate.
SECTION 2.16. Taxes. (a) Any and all payments by the Borrower hereunder
and under the other Loan Documents shall be made, in accordance with Section
2.15, free and clear of and without deduction for any and all present or future
taxes, levies, imposts, deductions, charges or withholdings, and all liabilities
with respect thereto, excluding, in the case of each Lender and the
Administrative Agent, taxes imposed on its overall net income and franchise
taxes imposed on it by the jurisdiction under the laws of which such Lender or
the Administrative Agent (as the case may be) is organized or any political
subdivision thereof and, in the case of each Lender, taxes imposed on its
overall net income and franchise taxes imposed on it by the jurisdiction of such
Lender's Applicable Lending Office or any political subdivision thereof (all
such non-excluded taxes, levies, imposts, deductions, charges, withholdings and
liabilities being hereinafter referred to as "Taxes"); provided, however, that,
notwithstanding the foregoing, Taxes shall not include any taxes otherwise
required to be deducted by the Borrower pursuant to this subsection (a) as a
result of activities of any Lender or the Administrative Agent in the State of
Iowa (other than as a result, or in respect, of this Agreement). If the
Borrower shall be required by law to deduct any Taxes from or in respect of any
sum payable hereunder or under any other Loan Document to any Lender or the
Administrative Agent, (i) the sum payable shall be increased as may be necessary
so that after making all required deductions (including deductions applicable to
additional sums payable under this Section 2.16) such Lender or the
Administrative Agent (as the case may be) receives an amount equal to the sum it
would have received had no such deductions been made, (ii) the Borrower shall
make such deductions and (iii) the Borrower shall pay the full amount deducted
to the relevant taxation authority or other authority in accordance with
applicable law.
(b) In addition, the Borrower agrees to pay any present or future stamp or
documentary taxes or any other excise or property taxes, charges or similar
levies which arise from any payment made hereunder or under any other Loan
Document or from the execution, delivery or registration of, or otherwise with
respect to, this Agreement or any other Loan Document (hereinafter referred to
as "Other Taxes").
(c) The Borrower will indemnify each Lender and the Administrative Agent
for the full amount of Taxes or Other Taxes (including, without limitation, any
Taxes or Other Taxes imposed by any jurisdiction on amounts payable under this
Section 2.16) paid by such Lender or the Administrative Agent (as the case may
be) and any liability (including penalties, interest and expenses) arising
therefrom or with respect thereto, whether or not such Taxes or Other Taxes were
correctly or legally asserted. This indemnification shall be made within 30
days from the
28
date such Lender or the Administrative Agent (as the case may be) makes written
demand therefor. Nothing herein shall preclude the right of the Borrower to
contest any such Taxes or Other Taxes so paid, and the Lenders in question or
the Administrative Agent (as the case may be) will, following notice from, and
at the expense of, the Borrower, reasonably cooperate with the Borrower to
preserve the Borrower's rights to contest such Taxes or Other Taxes.
(d) Within 30 days after the date of any payment of Taxes, the Borrower
will furnish to the Administrative Agent, at its address referred to in Section
8.02, the original or a certified copy of a receipt evidencing payment thereof.
(e) Each Lender agrees that, on or prior to the date upon which it shall
become a party hereto, and upon the reasonable request from time to time of the
Borrower or the Administrative Agent, such Lender will deliver to the Borrower
and the Administrative Agent either (i) a statement that it is organized under
the laws of a jurisdiction within the United States or (ii) duly completed
copies of such form or forms as may from time to time be prescribed by the
United States Internal Revenue Service indicating that such Lender is entitled
to receive payments without deduction or withholding of any United States
federal income taxes, as permitted by the Internal Revenue Code of 1986, as
amended from time to time. Each Lender that delivers to the Borrower and the
Administrative Agent the form or forms referred to in the preceding sentence
further undertakes to deliver to the Borrower and the Administrative Agent
further copies of such form or forms, or successor applicable form or forms, as
the case may be, as and when any previous form filed by it hereunder shall
expire or shall become incomplete or inaccurate in any respect. Each Lender
represents and warrants that each such form supplied by it to the Administrative
Agent and the Borrower pursuant to this subsection (e), and not superseded by
another form supplied by it, is or will be, as the case may be, complete and
accurate.
(f) Any Lender claiming any additional amounts payable pursuant to this
Section 2.16 shall use its best efforts (consistent with its internal policy and
legal and regulatory restrictions) to change the jurisdiction of its Applicable
Lending Office if the making of such a change would avoid the need for, or
reduce the amount of, any such additional amounts which may thereafter accrue
and would not, in the reasonable judgment of such Lender, be otherwise
disadvantageous to such Lender.
(g) Without prejudice to the survival of any other agreement of the
Borrower hereunder, the agreements and obligations of the Borrower contained in
this Section 2.16 shall survive the payment in full of principal and interest
hereunder and under the Notes.
SECTION 2.17. Sharing of Payments, Etc. If any Lender shall obtain any
payment (whether voluntary, involuntary, through the exercise of any right of
set-off, or otherwise) on account of the A Advances made by it (other than
pursuant to Section 2.08, 2.13, 2.16 or 8.04(b)) in excess of its ratable share
of payments on account of the A Advances obtained by all the Lenders, such
Lender shall forthwith purchase from the other Lenders such participations in
the Advances made by them as shall be necessary to cause such purchasing Lender
to share the excess payment ratably with each of them; provided, however, that
if all or any portion of such
29
excess payment is thereafter recovered from such purchasing Lender, such
purchase from each Lender shall be rescinded and such Lender shall repay to the
purchasing Lender the purchase price to the extent of such recovery, together
with an amount equal to such Lender's ratable share (according to the proportion
of (i) the amount of such Lender's required repayment to (ii) the total amount
so recovered from the purchasing Lender) of any interest or other amount paid or
payable by the purchasing Lender in respect of the total amount so recovered.
The Borrower agrees that any Lender so purchasing a participation from another
Lender pursuant to this Section 2.17 may, to the fullest extent permitted by
law, exercise all its rights of payment (including the right of set-off) with
respect to such participation as fully as if such Lender were the direct
creditor of the Borrower in the amount of such participation.
SECTION 2.18. Extension of Termination Date. (a) At least 30 days but
not more than 20 days prior to the then-current Termination Date, the Borrower
may request that the Lenders, by written notice to the Administrative Agent (in
substantially the form attached hereto as Exhibit 2.18(a)), consent to a 364-day
extension of the Termination Date. Each Lender shall, in its sole discretion,
determine whether to consent to such request and shall notify the Administrative
Agent of its determination at least 15 days but not more than 20 days prior to
the then-current Termination Date. The failure to respond by any Lender within
such time period shall be deemed a denial of such request. The Administrative
Agent shall deliver a notice to the Borrower and the Lenders at least 10 days
prior to the then-current Termination Date of the identity of the Lenders that
have consented to such extension and the Lenders that have declined such consent
(the "Declining Lenders"). If Lenders holding in the aggregate more than 50% of
the Commitments have not consented to the requested extension, the Termination
Date shall not be extended, and the Commitments of all Lenders shall terminate
on the then-current Termination Date.
(b) If Lenders holding in the aggregate more than 50% of the Commitments
have consented to the requested extension, the Termination Date shall be
extended as to such consenting Lenders only (and not as to any Declining Lender)
for a period of 364 days from the then-current Termination Date (for purposes of
this Section 2.18, the "Extension Date"), and the Commitments of any Declining
Lenders shall terminate on the Extension Date (as theretofore in effect) and all
Advances of such Declining Lenders shall be repaid to them on such date. If the
Borrower so requests, each Lender consenting to such request shall be given the
opportunity at least seven days but not more than 10 days prior to the Extension
Date, in each Lender's sole discretion, to commit to increase its Commitment by
submission of a written notice setting forth the desired increase in such
Lender's Commitment to the Administrative Agent in amounts such that the
aggregate Commitments hereunder after giving effect to any such extension and
increase in the Commitments shall not exceed the aggregate Commitment
immediately prior to the Extension Date. If the Administrative Agent receives
Commitments to increase the Commitments from the Lenders, which, when aggregated
with the existing Commitments, (A) are less than or equal to the Commitments
immediately prior to the Extension Date, the Administrative Agent shall accept
all such Commitments, (B) are greater than the Commitments on the date hereof,
the Administrative Agent may determine, in its reasonable discretion, which
Commitments to accept and the amounts by which each submitting Lender's
Commitments shall be increased so that the aggregate Commitments after such
Extension Date shall equal the
30
aggregate Commitments immediately prior to such Extension Date (any Lender whose
commitment to increase its Commitment hereunder is accepted by the
Administrative Agent, an "Increasing Commitment Lender"). If Lenders do not
consent to increase the aggregate Commitments to an amount equal to the
Commitments immediately prior to such Extension Date, the Borrower may, at least
two days but not more than seven days prior to such Extension Date, request that
the Administrative Agent, in its sole discretion, accept the Commitment or
Commitments of an Eligible Assignee or Eligible Assignees such that the
aggregate Commitments hereunder after such Extension Date shall not be greater
than Commitments hereunder immediately prior to such Extension Date. If the
Administrative Agent shall accept the Commitment of any Increasing Commitment
Lender or Eligible Assignee, the Commitments of the Declining Lenders shall
terminate on such Extension Date, and any Advances made by such Declining
Lenders shall be repaid on such date in accordance with this Agreement.
(c) Each such accepted Eligible Assignee and each Increasing Commitment
Lender shall deliver a signature page hereto indicating that it is bound by the
terms hereof and setting forth its aggregate Commitment hereunder. Such new
signature page shall constitute a part hereof upon acceptance by the
Administrative Agent and, in the case of any signature page submitted by any
Increasing Commitment Lender, shall replace such Increasing Commitment Lender's
previously delivered signature page. Any such extension shall become effective
upon the satisfaction of the conditions set forth in Section 3.04 hereof. Upon
satisfaction of such conditions and the effectiveness of such extension, each
new Lender and Increasing Commitment Lender shall make A Advances to the
Borrower (i) in the case of each new Lender, equal to such Lender's ratable
portion of the A Advances outstanding immediately prior to such Extension Date
and (ii) in the case of each Increasing Commitment Lender, equal to such
portion of such Lender's ratable portion of the A Advances (assuming that such
Lender's Commitment consists only of the increased portion thereof) outstanding
immediately prior to such Extension Date, in each case, without giving effect to
any repayment of A Advances to Declining Lenders made on such Extension Date.
ARTICLE III
CONDITIONS OF LENDING
SECTION 3.01. Conditions Precedent to Closing. The Commitments of the
Lenders shall not become effective unless the following conditions precedent
shall have been fulfilled on or prior to September 22, 1999 (or such later
Business Day as the parties hereto may mutually agree):
(a) The Administrative Agent shall have received the following, each dated
the date of the Closing, in form and substance satisfactory to the Lenders and
(except for the Notes) in sufficient copies for each Lender:
(i) this Agreement, duly executed by the Borrower, each Bank and the
Administrative Agent;
31
(ii) the A Notes payable to the order of the Lenders, respectively,
duly completed and executed by the Borrower;
(iii) the Syndication Letter, duly executed by Citibank, Xxxxxxx Xxxxx
Xxxxxx Inc. and the Borrower;
(iv) certified copies of the resolutions of the Board of Directors of
the Borrower approving this Agreement, the Notes and the other Loan
Documents to which it is, or is to be, a party, and of all documents
evidencing other necessary corporate action with respect to this Agreement,
the Notes and such Loan Documents;
(v) a certificate of the Secretary or an Assistant Secretary of the
Borrower certifying the names, true signatures and incumbency of the
officers of the Borrower authorized to sign this Agreement, the Notes and
the other Loan Documents to which it is, or is to be, a party;
(vi) copies of the Restated Articles of Incorporation (or comparable
charter document) and by-laws of the Borrower, together with all amendments
thereto, certified by the Secretary or an Assistant Secretary of the
Borrower;
(vii) certified copies of all Governmental Approvals, if any, required
in connection with the execution, delivery and performance of this
Agreement and the other Loan Documents;
(viii) favorable opinions of:
(A) Sidley & Austin, counsel for the Borrower, in
substantially the form of Exhibit 3.01(a)(viii)-1 and as to such other
matters as the Majority Lenders, through the Administrative Agent, may
reasonably request;
(B) King & Spalding, counsel to the Administrative Agent,
in substantially the form of Exhibit 3.01(a)(viii)-2 and as to such
other matters as the Majority Lenders, through the Administrative
Agent, may reasonably request; and
(ix) such other approvals, opinions and documents as any Lender,
through the Administrative Agent, may reasonably request.
(b) The following statements shall be true and correct and the
Administrative Agent shall have received a certificate of a duly authorized
officer of the Borrower, dated the date of the Closing and in sufficient copies
for each Lender, stating that:
(i) the representations and warranties set forth in Section 4.01 of
this Agreement are true and correct on and as of the date of the Closing as
though made on and as of such date, and
32
(ii) no event has occurred and is continuing that constitutes an
Unmatured Default or an Event of Default.
(c) The Borrower shall have paid (i) all fees under or referenced in the
Syndication Letter and Section 2.04 hereof, to the extent then due and payable,
and (ii) all costs and expenses of the Administrative Agent (including counsel
fees and disbursements) incurred through (and for which statements have been
provided prior to) the Closing.
(d) The Borrower shall have paid in full all debt outstanding under the
Existing Facilities, and the commitments of all the lenders thereunder shall
have been terminated.
SECTION 3.02. Conditions Precedent to Each A Borrowing. The obligation
of each Lender to make an A Advance on the occasion of each A Borrowing
(including the initial A Borrowing) shall be subject to the conditions precedent
that, on the date of such A Borrowing,
(a) the following statements shall be true and correct (and each of the
giving of the applicable Notice of A Borrowing and the acceptance by the
Borrower of the proceeds therefrom shall constitute a representation and
warranty by the Borrower that, on the date of such A Borrowing, such statements
are true and correct):
(i) the representations and warranties contained in Section 4.01 are
true and correct in all material respects on and as of the date of such A
Borrowing, before and after giving effect to the application of the
proceeds therefrom, as though made on and as of such date; and
(ii) no event has occurred and is continuing, or would result from
such A Borrowing or from the application of the proceeds therefrom, which
constitutes an Event of Default or an Unmatured Default; and
(b) the Administrative Agent shall have received such other approvals,
opinions, or documents as the Administrative Agent, or the Majority Lenders
through the Administrative Agent, may reasonably request, and such approvals,
opinions, and documents shall be satisfactory in form and substance to the
Administrative Agent.
SECTION 3.03. Conditions Precedent to Each B Borrowing. The obligation of
each Lender to make a B Advance on the occasion of a B Borrowing (including the
initial B Borrowing) shall be subject to the conditions precedent that (a) the
Administrative Agent shall have received the written confirmatory Notice of B
Borrowing with respect thereto; (b) on or before the date of such B Borrowing,
but prior to such B Borrowing, the Administrative Agent shall have received a B
Note payable to the order of such Lender for each of the one or more B Advances
to be made by such Lender as part of such B Borrowing, in a principal amount
equal to the principal amount of the B Advance to be evidenced thereby and
otherwise on such terms as were agreed to for such B Advance in accordance with
Section 2.03; (c) on the date of such B Borrowing the following statements shall
be true and correct (and each of the giving of the applicable Notice of B
Borrowing and the acceptance by the Borrower of the proceeds therefrom
33
shall constitute a representation and warranty by the Borrower that, on the date
of such B Borrowing, such statements are true and correct):
(i) the representations and warranties contained in Section 4.01 are
true and correct in all material respects on and as of the date of such B
Borrowing, before and after giving effect to such B Borrowing and to the
application of the proceeds therefrom, as though made on and as of such
date; and
(ii) no event has occurred and is continuing, or would result from
such B Borrowing or from the application of the proceeds therefrom, which
constitutes an Event of Default or an Unmatured Default; and
(d) the Administrative Agent shall have received such other approvals,
opinions, or documents as the Administrative Agent, or the Majority Lenders
through the Administrative Agent, may reasonably request, and such approvals,
opinions, and documents shall be satisfactory in form and substance to the
Administrative Agent.
SECTION 3.04. Conditions Precedent to Each Extension of the Termination
Date. In the event that the Borrower shall request an extension of the
Termination Date pursuant to Section 2.18, such extension shall take effect only
upon the satisfaction of the following conditions precedent, together with such
other conditions precedent as the extending Lenders may require in connection
with such extension:
(a) The Administrative Agent shall have prepared and delivered to the
Borrower and each Lender (including each new bank and other financial
institution to which a non-extending Lender's Commitment has been assigned
pursuant to Section 8.07 hereof) a revised Schedule I which reflects the
Commitments, as applicable, of each Lender.
(b) The Borrower shall have paid all fees under or referenced in Section
2.04 hereof, to the extent then due and payable.
(c) The Administrative Agent shall have received such other documents and
legal opinions in respect of any aspect or consequence of the transactions
contemplated by Section 2.18 as the Administrative Agent shall reasonably
request, including, without limitation, copies of the resolutions, in form and
substance satisfactory to the Administrative Agent, of the Board of Directors of
the Borrower authorizing the extension of the then-current Termination Date.
(d) The following statements shall be true on and as of the Extension
Date:
(i) The representations and warranties contained in Section 4.01 are
correct, provided that the representation and warranty contained in Section
4.01(g) shall be true and correct in all material respects with respect to
the financial statements most recently delivered to the Banks; and
34
(ii) No event has occurred and is continuing, or would result from
such extension of the then-current Termination Date, that constitutes an
Event of Default or an Unmatured Default.
SECTION 3.05. Reliance on Certificates. The Lenders and the
Administrative Agent shall be entitled to rely conclusively upon the
certificates delivered from time to time by officers of the Borrower as to the
names, incumbency, authority and signatures of the respective Persons named
therein until such time as the Administrative Agent may receive a replacement
certificate, in form acceptable to the Administrative Agent, from an officer of
such Person identified to the Administrative Agent as having authority to
deliver such certificate, setting forth the names and true signatures of the
officers and other representatives of such Person thereafter authorized to act
on behalf of such Person.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES
SECTION 4.01. Representations and Warranties of the Borrower. The
Borrower represents and warrants as follows:
(a) The Borrower and each of its Significant Subsidiaries is a corporation
duly organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation and is duly qualified to do business in, and
is in good standing in, all other jurisdictions where the nature of its business
or the nature of property owned or used by it makes such qualification necessary
(except where the failure to so qualify would not have a material adverse affect
on the business, financial condition, operations, results of operations or
prospects of the Borrower and its Subsidiaries, taken as a whole).
(b) The execution, delivery and performance by the Borrower of this
Agreement, the Notes and the other Loan Documents to which it is or will be a
party are within the Borrower's corporate powers, have been duly authorized by
all necessary corporate action, and do not and will not contravene (i) the
Borrower's Restated Articles of Incorporation or by-laws, (ii) law or (iii) any
legal or contractual restriction binding on or affecting the Borrower; and such
execution, delivery and performance do not and will not result in or require the
creation of any Lien upon or with respect to any of its properties.
(c) No Governmental Approval is required in connection with the execution,
delivery or performance of any Loan Document, except for the authorization
issued by the Federal Energy Regulatory Commission to the Borrower dated
December 15, 1998, which authorization is in full force and effect and not the
subject of any pending or threatened appeal, stay or other challenge. The
Borrower will have obtained and made, on or before each date on which this
representation shall be made or reaffirmed, all necessary notices to or filings
with the Federal Energy Regulatory Commission with respect to the transactions
contemplated by this Agreement and the other Loan Documents, and all such
notices and filings will have been duly made, and will be in full force and
effect.
35
(d) There is no pending or threatened action or proceeding affecting the
Borrower or any of its Subsidiaries or properties before any court, governmental
agency or arbitrator, that might reasonably be expected to materially adversely
affect (i) the business, condition (financial or otherwise) or results of
operations of the Borrower and its Subsidiaries, taken as a whole, or (ii) the
ability of the Borrower to perform its obligations under this Agreement or any
other Loan Document to which the Borrower is or is to be a party.
(e) Since June 30, 1999 or, in connection with any extension of the then-
current Termination Date, the June 30 for which financial statements have been
delivered to the Lenders the same calendar year as an Extension Date, there has
been no material adverse change in the business, condition (financial or
otherwise) or results of operations of the Borrower and its Subsidiaries, taken
as a whole, or in the Borrower's ability to perform its obligations under this
Agreement or any other Loan Document to which it is or will be a party.
(f) Neither this Agreement nor any other document, certificate or
statement furnished to the Administrative Agent by the Borrower in connection
herewith contains any untrue statement of a material fact or omits to state a
material fact necessary in order to make the statements contained herein and
therein, under the circumstances in which they were made, not misleading.
(g) The consolidated balance sheets of the Borrower and its Consolidated
Subsidiaries as at June 30, 1999, and the related consolidated statements of
operations of the Borrower and its Consolidated Subsidiaries for the three
months, six months and twelve months then ended, copies of each of which have
been furnished to each Bank, fairly present (subject to year-end adjustments)
the consolidated financial condition of the Borrower and its Consolidated
Subsidiaries as at such dates and the consolidated results of operations of the
Borrower and its Consolidated Subsidiaries for the periods ended on such date,
all in accordance, in all material respects, with generally accepted accounting
principles consistently applied (except for changes in such principles required
by generally accepted accounting principles and noted in such financial
statements).
(h) No ERISA Event has occurred or is reasonably expected to occur with
respect to any Plan of the Borrower or any of its ERISA Affiliates which would
result in a liability of $25,000,000 or more to the Borrower. Since the most
recent June 30 for which financial statements have been delivered to the Lenders
in accordance with Section 5.01(i) hereof, there has been no material adverse
change in the funding status of the Plans and no "prohibited transaction" has
occurred with respect thereto which is in either event reasonably expected to
result in a liability of $25,000,000 or more to the Borrower. Neither the
Borrower nor any of its ERISA Affiliates has incurred nor reasonably expects to
incur any material withdrawal liability under ERISA to any Multiemployer Plan.
(i) The Borrower has filed all tax returns (Federal, state and local)
required to be filed and paid all taxes shown thereon to be due, including
interest and penalties, or, to the extent the Borrower is contesting in good
faith an assertion of liability based on such returns, has
36
provided adequate reserves for payment thereof in accordance with generally
accepted accounting principles.
(j) This Agreement is, and each other Loan Document to which the Borrower
will be a party when executed and delivered hereunder will be, legal, valid and
binding obligations of the Borrower enforceable against the Borrower in
accordance with their respective terms, subject to the qualifications, however,
that the enforcement of the rights and remedies herein and therein is subject to
bankruptcy and other similar laws of general application affecting rights and
remedies of creditors and that the remedy of specific performance or of
injunctive relief is subject to the discretion of the court before which any
proceedings therefor may be brought.
(k) Following application of the proceeds of each Advance, not more than
25 percent of the value of the assets of the Borrower and its Subsidiaries on a
consolidated basis will be margin stock (within the meaning of Regulation U
issued by the Board of Governors of the Federal Reserve System).
(l) The Borrower is not an "investment company" or a company "controlled"
by an "investment company", within the meaning of the Investment Company Act of
1940, as amended.
(m) The Borrower is a "holding company" within the meaning of PUHCA, but
the Borrower and its Subsidiaries are exempt from the provisions of that Act,
except Section 9(a)(2) thereof, by virtue of an order issued by the Securities
and Exchange Commission on June 30, 1948. Such exemption is in full force and
effect and the Borrower is not aware of any existing or proposed proceedings
contemplating the revocation or modification of such exemption.
(n) The Borrower has made a reasonable assessment of its Year 2000 Issues
and has a realistic and achievable Year 2000 Program. Based on such assessment
and on its Year 2000 Program, the Borrower does not reasonably anticipate that
Year 2000 Issues will have a Material Adverse Effect.
ARTICLE V
COVENANTS OF THE BORROWER
SECTION 5.01. Affirmative Covenants. So long as any amount in respect of
any Note shall remain unpaid or any Lender shall have any Commitment, the
Borrower will, unless the Majority Lenders shall otherwise consent in writing:
(a) Preservation of Existence, Etc. Preserve and maintain, and cause each
of its Significant Subsidiaries to preserve and maintain, its corporate
existence, material rights (statutory and otherwise) and franchises; provided,
however, that neither the Borrower nor any of its Significant Subsidiaries shall
be required to preserve and maintain any such right or franchise, and no such
Significant Subsidiary shall be required to preserve and maintain its corporate
existence, unless the failure to do so would have a material adverse effect on
the business,
37
condition (financial or otherwise) or results of operations of the Borrower and
its Subsidiaries, taken as a whole, or on the Borrower's ability to perform its
obligations under this Agreement or any other Loan Document to which it is or
will be a party.
(b) Compliance with Laws, Etc. Comply, and cause each of its Subsidiaries
to comply, with the requirements of all applicable laws, rules, regulations and
orders of any governmental authority, including without limitation any such
laws, rules, regulations and orders relating to zoning, environmental
protection, use and disposal of Hazardous Substances, land use, ERISA,
construction and building restrictions, and employee safety and health matters
relating to business operations, the non-compliance with which would have a
material adverse effect on the business, condition (financial or otherwise) or
results of operations of the Borrower and its Subsidiaries, taken as a whole, or
on the Borrower's ability to perform its obligations under this Agreement or any
other Loan Document to which it is or will be a party.
(c) Payment of Taxes, Etc. Pay and discharge, and cause each of its
Significant Subsidiaries to pay and discharge, before the same shall become
delinquent, all taxes, assessments and governmental charges, royalties or levies
imposed upon it or upon its property, except to the extent the Borrower or such
Significant Subsidiary is contesting the same in good faith and by appropriate
proceedings and has set aside adequate reserves for the payment thereof in
accordance with generally accepted accounting principles.
(d) Payment of Material Obligations. Pay, and cause each Significant
Subsidiary to pay, promptly as the same shall become due each material
obligation of the Borrower or such Significant Subsidiary, except to the extent
that the Borrower or such Significant Subsidiary is contesting the same in good
faith and by appropriate proceedings and has set aside adequate reserves for the
payment thereof in accordance with generally accepted accounting principles.
(e) Inspection Rights. At any reasonable time and from time to time upon
reasonable notice, permit or arrange for the Administrative Agent, the Lenders
and their respective agents and representatives to examine and make copies of
and abstracts from the records and books of account of, and, to the extent
permitted by applicable law, permit an examination of the properties of, the
Borrower and each of its Subsidiaries, and to discuss the affairs, finances and
accounts of the Borrower and its Subsidiaries with the Borrower and its
Subsidiaries and their respective officers and directors and, following the
occurrence and during the continuance of an Event of Default, their respective
accountants; provided, however, that, prior to the disclosure of any information
or materials of the Borrower or its Subsidiaries relating to wholesale
transactions, customers, pricing methods or formulae, transmission and
distribution system utilization or pricing, or proprietary methods or processes,
the Borrower may require the Lender seeking to inspect the same to enter into a
confidentiality and nondisclosure agreement with respect to the use and
disclosure of such information or materials in form and substance reasonably
satisfactory to the Borrower and such Lender and otherwise containing customary
terms.
(f) Keeping of Books. Keep, and cause its Subsidiaries to keep, proper
records and
38
books of account, in which full and correct entries shall be made of all
financial transactions of the Borrower and its Subsidiaries and the assets and
business of the Borrower and its Subsidiaries, in accordance with generally
accepted accounting principles.
(g) Maintenance of Properties, Etc. Maintain, and cause each of its
Subsidiaries to maintain, good and marketable title to, and preserve, maintain,
develop, and operate in substantial conformity with all laws and material
contractual obligations, all of its properties which are used or useful in the
conduct of its business in good working order and condition, ordinary wear and
tear excepted, except where the failure to do so would not have a material
adverse effect on the business, condition (financial or otherwise) or results of
operations of the Borrower and its Subsidiaries, taken as a whole, or on the
Borrower's ability to perform its obligations under this Agreement or any other
Loan Document to which it is or will be a party.
(h) Maintenance of Insurance. Maintain, or cause to be maintained,
insurance covering the Borrower and each of its Subsidiaries and their
respective properties in effect at all times as may be required by law and such
other insurance in such amounts and covering such risks as is usually carried by
companies similarly situated.
(i) Reporting Requirements. Furnish to each Lender:
(i) as soon as possible and in any event within five Business Days
after the occurrence of each Unmatured Default or Event of Default
continuing on the date of such statement, a statement of a Senior Financial
Officer setting forth details of such Unmatured Default or Event of Default
and the action that the Borrower proposes to take with respect thereto;
(ii) as soon as available and in any event within 60 days after the
end of each of the first three quarters of each fiscal year of the
Borrower, a consolidated balance sheet of the Borrower and its Consolidated
Subsidiaries as at the end of such quarter and statements of income,
consolidated operations, consolidated retained earnings and consolidated
cash flows of the Borrower and its Consolidated Subsidiaries for the period
commencing at the end of the previous fiscal year and ending with the end
of such quarter, all in reasonable detail and duly certified (subject to
year-end audit adjustments) by a Senior Financial Officer as having been
prepared in accordance (in all material respects) with generally accepted
accounting principles together with a certificate of said officer stating
that no Unmatured Default or Event of Default has occurred and is
continuing or, if an Unmatured Default or Event of Default has occurred and
is continuing, a statement as to the nature thereof and the action that the
Borrower proposes to take with respect thereto; provided that delivery of a
copy of the Borrower's Quarterly Report on Form 10-Q for such quarter shall
be deemed to satisfy such financial statement delivery requirements;
(iii) as soon as available and in any event within 120 days after the
end of each fiscal year of the Borrower, a copy of the consolidated balance
sheet of the Borrower and its Consolidated Subsidiaries as at the end of
such fiscal year and statements of
39
consolidated operations, consolidated retained earnings and consolidated
cash flows of the Borrower and its Consolidated Subsidiaries for such
fiscal year, in each case in reasonable detail and duly certified by a
Senior Financial Officer as having been prepared in accordance (in all
material respects) with generally accepted accounting principles, together
with a certificate of a Senior Financial Officer stating that no Unmatured
Default or Event of Default has occurred and is continuing or, if an
Unmatured Default or Event of Default has occurred and is continuing, a
statement as to the nature thereof and the action that the Borrower
proposes to take with respect thereto; provided that delivery of a copy of
the Borrower's Annual Report on Form 10-K (containing such statements) or
Current Report on Form 8-K (containing such statements) for such year shall
be deemed to satisfy such financial statement delivery requirements;
(iv) as soon as possible and in any event (A) within 30 days after any
ERISA Event described in clause (i) of the definition of ERISA Event with
respect to any Plan of the Borrower or any ERISA Affiliate of the Borrower
has occurred and (B) within 10 days after any other ERISA Event with
respect to any Plan of the Borrower or any ERISA Affiliate of the Borrower
has occurred, a statement of a Senior Financial Officer describing such
ERISA Event and the action, if any, which the Borrower or such ERISA
Affiliate proposes to take with respect thereto;
(v) promptly after receipt thereof by the Borrower or any of its
ERISA Affiliates from the PBGC, copies of each notice received by the
Borrower or such ERISA Affiliate of the PBGC's intention to terminate any
Plan of the Borrower or such ERISA Affiliate or to have a trustee appointed
to administer any such Plan;
(vi) promptly after receipt thereof by the Borrower or any ERISA
Affiliate of the Borrower from a Multiemployer Plan sponsor, a copy of each
notice received by the Borrower or such ERISA Affiliate concerning the
imposition or amount of withdrawal liability in an aggregate principal
amount of at least $25,000,000 pursuant to Section 4202 of ERISA in respect
of which the Borrower or such ERISA Affiliate is reasonably expected to be
liable;
(vii) promptly after the Borrower becomes aware of the occurrence
thereof, notice of all actions, suits, proceedings or other events of (A)
of the type described in Section 4.01(d) or (B) for which the
Administrative Agent and the Lenders will be entitled to indemnity under
Section 8.04(c);
(viii) promptly after the sending or filing thereof, copies of all such
information statements, financial statements, and reports which the
Borrower sends to its public security holders (if any), and copies of all
regular, periodic and special reports, and all registration statements and
periodic or special reports, if any, which the Borrower files with the
Securities and Exchange Commission or any governmental authority which may
be substituted therefor, or with any national securities exchange;
(ix) such information concerning the Borrower's Year 2000 Programs as
the
40
Administrative Agent may reasonably request; and
(x) promptly after requested, such other information respecting the
business, properties, results of operations, prospects, revenues, condition
or operations, financial or otherwise, of the Borrower or any of its
Subsidiaries (including, but not limited to, copies of each Schedule B
(Actuarial Information) to the annual report (Form 5500 Series) filed with
the Internal Revenue Service) as the Administrative Agent or any Lender
through the Administrative Agent may from time to time reasonably request.
(j) Use of Proceeds. Use the proceeds of the initial Advances and any
other Advances hereunder as a commercial paper backstop and solely for the
Borrower's general corporate purposes.
(k) Debt to Capitalization. Maintain at all times a ratio of Consolidated
Debt to Consolidated Capital of not more than 65%.
(l) Further Assurances. At the expense of the Borrower, promptly execute
and deliver, or cause to be promptly executed and delivered, all further
instruments and documents, and take and cause to be taken all further actions,
that may be necessary or that the Majority Lenders through the Administrative
Agent may reasonably request to enable the Lenders and the Administrative Agent
to enforce the terms and provisions of this Agreement and to exercise their
rights and remedies hereunder or under any other Loan Document. In addition,
the Borrower will use all reasonable efforts to duly obtain Governmental
Approvals required in connection with the Loan Documents from time to time on or
prior to such date as the same may become legally required, and thereafter to
maintain all such Governmental Approvals in full force and effect.
(m) Year 2000. Take all such actions as are reasonably necessary to
successfully implement its Year 2000 Program and to assure that Year 2000 Issues
will not have a Material Adverse Effect. At the request of the Administrative
Agent, the Borrower will provide a description of its Year 2000 Program,
together with any updates or progress reports with respect thereto.
SECTION 5.02. Negative Covenants. So long as any amount in respect of
any Note shall remain unpaid or any Lender shall have any Commitment, the
Borrower will not, without the written consent of the Majority Lenders:
(a) Liens, Etc. Create, incur, assume, or suffer to exist, or permit any
of its Significant Subsidiaries to create, incur, assume, or suffer to exist,
any lien, security interest, or other charge or encumbrance (including the lien
or retained security title of a conditional vendor) of any kind, or any other
type of arrangement intended or having the effect of conferring upon a creditor
a preferential interest upon or with respect to any of its properties of any
character, in each case to secure or provide for the payment of any Debt of any
Person (any of the foregoing being referred to herein as a "Lien"), excluding,
however, from the operation of the foregoing restrictions the Liens created
under the Loan Documents and the following:
41
(i) Liens for taxes, assessments or governmental charges or levies to
the extent not past due or contested in good faith by appropriate
proceedings, with adequate reserves set aside for the payment thereof in
accordance with generally accepted accounting principles;
(ii) Liens imposed by law, such as materialmen's, mechanics',
carriers', workmen's, repairmen's, warehousemen's and landlord's liens and
other similar Liens arising in the ordinary course of business securing
obligations which are not overdue or which are being contested in good
faith by appropriate proceedings, with adequate reserves set aside for the
payment thereof in accordance with generally accepted accounting
principles;
(iii) pledges or deposits to secure obligations under workmen's
compensation laws or similar legislation, to secure obligations
individually or in the aggregate equal to or less than $25,000,000 referred
to in clause (vi) of the definition of Debt, to secure public or statutory
obligations of the Borrower or such Significant Subsidiary, or to secure
the utility obligations of the Borrower or any such Significant Subsidiary
incurred in the ordinary course of business;
(iv) (A) purchase money Liens upon or in property now owned or
hereafter acquired by the Borrower or any of its Significant Subsidiaries
in the ordinary course of business (consistent with present practices) to
secure (1) the purchase price of such property or (2) Debt incurred solely
for the purpose of financing the acquisition, construction or improvement
of any such property to be subject to such Liens, or (B) Liens existing on
any such property at the time of acquisition, or extensions, renewals or
replacements of any of the foregoing for the same or a lesser amount,
provided that no such Lien shall extend to or cover any property other than
the property being acquired, constructed or improved and replacements,
modifications and proceeds of such property, and no such extension, renewal
or replacement shall extend to or cover any property not theretofore
subject to the Lien being extended, renewed or replaced;
(v) attachment, judgment or other similar Liens arising in connection
with court proceedings, provided that, with respect to any Lien involving
an amount of $25,000,000 or more, the execution or other enforcement of
such Liens is effectively stayed and the claims secured thereby are being
actively contested in good faith by appropriate proceedings or the payment
of which is covered in full (subject to customary deductible amounts) by
insurance maintained with responsible insurance companies and the
applicable insurance company has acknowledged its liability therefor in
writing;
(vi) Liens arising under the Mortgage dated July 1, 1923, as
supplemented and amended by a Supplemental Indenture dated August 1, 1944
and other supplemental indentures, from the Borrower, as mortgagor, to
Xxxxxx Trust and Savings Bank and X.X. Xxxxxxx, as trustees, pursuant to
which the Borrower has issued, and may hereafter issue, its mortgage bonds;
42
(vii) Liens, if any, arising in connection with (A) the sale or
sale/leaseback of nuclear fuel to the extent permitted in clause (w) of the
proviso to Section 5.02(d) hereof, but only to the extent that the Liens so
arising are placed upon the nuclear fuel so sold or sold/leased back, or
(B) the sale, pledge or other disposition of accounts receivable to the
extent permitted by clause (y) of the proviso of Section 5.02(d) hereof,
but only to the extent that the Liens so arising are placed upon the
accounts receivable so sold, pledged or otherwise disposed of;
(viii) Liens, if any, arising in connection with Capitalized Lease
Obligations, but only on the equipment or property subject to such
Capitalized Lease Obligations;
(ix) Liens on the capital stock of or any other equity interest in any
of the Borrower's Subsidiaries (which are not Significant Subsidiaries) or
any such Subsidiary's assets to secure the payment and performance of Debt
obligations in connection with any project financing for such Subsidiary
(provided that the obligee of such obligations shall have no recourse to
the Borrower to satisfy such obligations, other than pursuant to any such
Liens on the Borrower's equity interests in such Subsidiary);
(x) Liens on the assets and/or rights to receive income of any Person
that exist at the time that such Person becomes a Significant Subsidiary
and the continuation of such Liens in connection with any refinancing or
restructuring of the obligations secured by such Liens; and
(xi) other Liens which, taken together with the Liens arising pursuant
to the foregoing clauses or individually, do not have a Material Adverse
Effect.
(b) Compliance with ERISA. (i) Permit to exist any "accumulated funding
deficiency" (as defined in Section 412(a) of the Internal Revenue Code of 1986,
as amended from time to time) (unless such deficiency exists with respect to a
Multiple Employer Plan or Multiemployer Plan and the Borrower has no control
over the reduction or elimination of such deficiency), (ii) terminate, or permit
any ERISA Affiliate of the Borrower to terminate, any Plan of the Borrower or
such ERISA Affiliate so as to result in a liability of $25,000,000 or more of
the Borrower to the PBGC, or (iii) permit to exist any occurrence of any
Reportable Event (as defined in Title IV of ERISA), other than a Reportable
Event for which the 30-day notice requirement with respect thereto has been
waived by the PBGC or any other event or condition, which presents a material
(in the reasonable opinion of the Majority Lenders) risk of such a termination
by the PBGC of any Plan of the Borrower or such ERISA Affiliate and such a
liability to the Borrower.
(c) Transactions with Affiliates. Enter into, or permit any of its
Subsidiaries to enter into, any transaction with an Affiliate of the Borrower,
unless (i) such transaction is on terms no less favorable to the Borrower or
such Subsidiary, as the case may be, than if the transaction had been negotiated
in good faith on an arm's length basis with a Person which was not an Affiliate
of the Borrower or (ii) such transaction is conducted pursuant to the Affiliated
Interests
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Agreement dated as of December 4, 1995 among the Borrower, Unicom Corporation
and the other entities named therein, as it may be amended or modified from time
to time.
(d) Mergers, Etc. Merge or consolidate with or into any Person, or
convey, transfer, lease or otherwise dispose of (whether in one transaction or
in a series of transactions, and whether in a sale/leaseback transaction or
otherwise) more than 10% of its assets (whether now owned or hereafter
acquired), unless, in the case of a merger, immediately after giving effect
thereto, (i) no event shall occur and be continuing that constitutes an
Unmatured Default or an Event of Default, (ii) the Borrower is the surviving
corporation, and (iii) the Borrower shall not be liable with respect to any Debt
or allow its property to be subject to any Lien which it could not become liable
with respect to or allow its property to become subject to under this Agreement
on the date of such transaction; provided, however, that so long as no Unmatured
Default or Event of Default has occurred and is continuing or would result from
such transaction, (w) the Borrower may engage in sale or sale/leaseback
transactions with respect to nuclear fuel, (x) the Borrower may sell, pledge or
otherwise dispose of its accounts receivable, (y) the Borrower may engage in
transactions involving the issuance of Transitional Funding Instruments, and (z)
the Borrower may sell its electric generating assets in one or a series of arms-
length transactions for not less than the fair market value of such assets.
(e) Maintenance of Ownership of Significant Subsidiaries. Sell, assign,
transfer, pledge or otherwise dispose of any shares of capital stock of any of
its Significant Subsidiaries or any warrants, rights or options to acquire such
capital stock, or permit any of its Significant Subsidiaries to issue, sell or
otherwise dispose of any shares of such Significant Subsidiary's capital stock,
except (and only to the extent) as may be necessary to give effect to a
transaction permitted by subsection (d) above.
ARTICLE VI
EVENTS OF DEFAULT
SECTION 6.01. Events of Default. If any of the following events (each
an "Event of Default") shall occur and be continuing after the applicable grace
period and notice requirement (if any):
(a) The Borrower shall fail to pay any principal of any Note when the same
becomes due and payable; or
(b) The Borrower shall fail to pay any interest on any Note or any other
amount due under this Agreement for three Business Days after the same becomes
due; or
(c) The Borrower or any of its Subsidiaries shall fail to pay any
principal of or premium or interest on any Debt of the Borrower that is
outstanding in a principal amount of $25,000,000 or more in the aggregate (but
excluding Debt evidenced by the Notes) when the same becomes due and payable
(whether by scheduled maturity, required prepayment,
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acceleration, demand or otherwise), and such failure shall continue after the
applicable grace period, if any, specified in the agreement or instrument
relating to such Debt; or
(d) The Borrower or any of its Subsidiaries shall fail to observe any term
or covenant on its part to be performed or observed and the effect of such
failure is to accelerate or permit acceleration of any Debt of the Borrower that
is outstanding in a principal amount of $25,000,000 or more in the aggregate
(but excluding Debt evidenced by the Notes); or
(e) Any representation or warranty made by or on behalf of the Borrower in
any Loan Document or in any certificate or other writing delivered pursuant
thereto shall prove to have been incorrect in any material respect when made or
deemed made; or
(f) The Borrower shall fail to perform or observe any term or covenant on
its part to be performed or observed contained in Section 5.01(k) or 5.02 (other
than subsection (c) thereof); or
(g) The Borrower shall fail to perform or observe any other term or
covenant on its part to be performed or observed contained in Section 5.01 or in
any other Loan Document, and any such failure shall remain unremedied, after
written notice thereof shall have been given to the Borrower by the
Administrative Agent, for a period of 30 days; or
(h) Any judgment or order for the payment of money in excess of
$25,000,000 shall be rendered against the Borrower or any of its Subsidiaries
and either (i) enforcement proceedings shall have been commenced by any creditor
upon such judgment or order or (ii) there shall be any period of ten consecutive
Business Days during which a stay of enforcement of such judgment or order, by
reason of a pending appeal or otherwise, shall not be in effect; or
(i) The Borrower shall generally not pay its debts as such debts become
due, or shall admit in writing its inability to pay its debts generally, or
shall make an assignment for the benefit of creditors; or any proceeding shall
be instituted by or against the Borrower seeking to adjudicate it a bankrupt or
insolvent, or seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief, or composition of its debts under any law
relating to bankruptcy, insolvency, or reorganization or relief of debtors, or
seeking the entry of an order for relief or the appointment of a receiver,
trustee, or other similar official for it or for any substantial part of its
property and, in the case of a proceeding instituted against the Borrower,
either such proceeding shall remain undismissed or unstayed for a period of 60
days or any of the actions sought in such proceeding (including without
limitation the entry of an order for relief against the Borrower or the
appointment of a receiver, trustee, custodian or other similar official for the
Borrower or any of its property) shall occur; or the Borrower shall take any
corporate or other action to authorize any of the actions set forth above in
this subsection (i); or
(j) Any Governmental Approval required in connection with the execution,
delivery and performance of the Loan Documents shall be rescinded, revoked,
otherwise terminated, or amended or modified in any manner which is materially
adverse to the interests of the Lenders and the Administrative Agent; or
45
(k) Any ERISA Event shall have occurred with respect to a Plan which could
reasonably be expected to result in a liability of $25,000,000 or more to the
Borrower, and, 30 days after notice thereof shall have been given to the
Borrower by the Administrative Agent or any Lender, such ERISA Event shall still
exist; or
(l) An "event of default" (as defined therein) shall occur and be
continuing under the Other Credit Agreement;
then, and in any such event, the Administrative Agent (i) shall at the request,
or may with the consent, of the Majority Lenders or, if no A Advances are then
outstanding, Banks having greater than 50% of the Commitments (without giving
effect to any B Reduction), by notice to the Borrower, declare the obligation of
each Lender to make Advances to be terminated, whereupon the same shall
forthwith terminate, and (ii) shall at the request, or may with the consent, of
the Majority Lenders or, if no A Advances are then outstanding, Lenders having
greater than 50% of the Commitments, by notice to the Borrower, declare the
Notes (if any), all interest thereon and all other amounts payable under this
Agreement to be forthwith due and payable, whereupon the Notes, all such
interest and all such amounts shall become and be forthwith due and payable,
without presentment, demand, protest or further notice of any kind, all of which
are hereby expressly waived by the Borrower; provided, however, that in the
event of an actual or deemed entry of an order for relief with respect to the
Borrower under the Federal Bankruptcy Code, (A) the Commitments and the
obligation of each Lender to make Advances shall automatically be terminated and
(B) the Notes, all such interest and all such amounts shall automatically become
and be due and payable, without presentment, demand, protest or any notice of
any kind, all of which are hereby expressly waived by the Borrower.
ARTICLE VII
THE ADMINISTRATIVE AGENT
SECTION 7.01. Authorization and Action. Each Lender hereby appoints and
authorizes the Administrative Agent to take such action as agent on its behalf
and to exercise such powers under this Agreement as are delegated to the
Administrative Agent by the terms hereof, together with such powers as are
reasonably incidental thereto. As to any matters not expressly provided for by
this Agreement or any other Loan Document (including, without limitation,
enforcement or collection of the Notes), the Administrative Agent shall not be
required to exercise any discretion or take any action, but shall be required to
act or to refrain from acting (and shall be fully protected in so acting or
refraining from acting) upon the instructions of the Majority Lenders, and such
instructions shall be binding upon all Lenders and all holders of Notes;
provided, however, that the Administrative Agent shall not be required to take
any action which exposes the Administrative Agent to personal liability or which
is contrary to this Agreement or applicable law. The Administrative Agent
agrees to give to each Lender prompt notice of each notice given to it by the
Borrower pursuant to the terms of this Agreement. The Administrative Agent
shall be deemed to have exercised reasonable care in the administration and
enforcement of this Agreement and the other Loan Documents if it undertakes such
administration and enforcement in a manner substantially equal to that which
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the Administrative Agent accords credit facilities similar to the credit
facility hereunder for which it is the sole lender.
SECTION 7.02. Administrative Agent's Reliance, Etc. Neither the
Administrative Agent nor any of its directors, officers, agents or employees
shall be liable for any action taken or omitted to be taken by it or them under
or in connection with this Agreement or any other Loan Document, except for its
or their own gross negligence or willful misconduct. Without limitation of the
generality of the foregoing, the Administrative Agent: (i) may treat the payee
of any Note as the holder thereof until the Administrative Agent receives and
accepts a Lender Assignment entered into by the Lender which is the payee of
such Note, as assignor, and an Eligible Assignee, as assignee, as provided in
Section 8.07; (ii) may consult with legal counsel (including counsel for the
Borrower), independent public accountants and other experts selected by it and
shall not be liable for any action taken or omitted to be taken in good faith by
it in accordance with the advice of such counsel, accountants or experts; (iii)
makes no warranty or representation to any Lender and shall not be responsible
to any Lender for any statements, warranties or representations (whether written
or oral) made in or in connection with this Agreement or any other Loan
Document; (iv) shall not have any duty to ascertain or to inquire as to the
performance or observance of any of the terms, covenants or conditions of this
Agreement or any other Loan Document on the part of the Borrower or to inspect
the property (including the books and records) of the Borrower; (v) shall not be
responsible to any Lender for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of this Agreement, any other
Loan Document or any other instrument or document furnished pursuant hereto or
thereto; and (vi) shall incur no liability under or in respect of this Agreement
or any other Loan Document by acting upon any notice, consent, certificate or
other instrument or writing (which may be by telecopier, telegram, cable or
telex) believed by it to be genuine and signed or sent by the proper party or
parties.
SECTION 7.03. Citibank, N.A. and Affiliates. With respect to its
Commitment, the Advances made by it and the Notes issued to it, Citibank, N.A.
shall have the same rights and powers under this Agreement as any other Lender
and may exercise the same as though it were not the Administrative Agent; and
the term "Bank" or "Banks" and "Lender" or "Lenders" shall, unless otherwise
expressly indicated, include Citibank, N.A. in its individual capacity.
Citibank, N.A. and its Affiliates may accept deposits from, lend money to, act
as trustee under indentures of, and generally engage in any kind of business
with, the Borrower, any of its Subsidiaries or Affiliates and any Person who may
do business with or own securities of the Borrower or any such Subsidiary or
Affiliate, all as if Citibank, N.A. were not the Administrative Agent and
without any duty to account therefor to the Lenders.
SECTION 7.04. Lender Credit Decision. Each Lender acknowledges that it
has, independently and without reliance upon the Administrative Agent or any
other Lender and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this
Agreement. Each Lender also acknowledges that it will, independently and
without reliance upon the 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 decisions in taking or not taking action under
this Agreement.
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SECTION 7.05. Indemnification. The Lenders agree to indemnify the
Administrative Agent (to the extent not reimbursed by the Borrower), ratably
according to (a) on or before the Termination Date, the respective principal
amounts of the A Notes then held by each of them (or if no A Notes are at the
time outstanding or if any A Notes are held by Persons which are not Lenders,
ratably according to the respective Percentages of the Lenders), or (b) after
the Termination Date, the respective principal amounts of the Notes then held by
each of them (or if no Notes are at the time outstanding or if any Notes are
held by Persons which are not Lenders, ratably according to the respective
unpaid principal amounts of the Advances made by each Lender), from and against
any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever which may be imposed on, incurred by, or asserted against the
Administrative Agent in any way relating to or arising out of this Agreement or
any action taken or omitted by the Administrative Agent under this Agreement,
provided that no Lender shall be liable for any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting from the Administrative Agent's gross
negligence or willful misconduct. Without limitation of the foregoing, each
Lender agrees to reimburse the Administrative Agent promptly upon demand for its
ratable share of any out-of-pocket expenses (including counsel fees) incurred by
the Administrative Agent in connection with the preparation, execution,
delivery, administration, modification, amendment or enforcement (whether
through negotiations, legal proceedings or otherwise) of, or legal advice in
respect of rights or responsibilities under, this Agreement, to the extent that
the Administrative Agent is not reimbursed for such expenses by the Borrower.
SECTION 7.06. Successor Administrative Agent. The Administrative Agent
may resign at any time by giving written notice thereof to the Lenders and the
Borrower and may be removed at any time with or without cause by the Majority
Lenders, with any such resignation or removal to become effective only upon the
appointment of a successor Administrative Agent pursuant to this Section 7.06.
Upon any such resignation or removal, the Majority Lenders shall have the right
to appoint a successor Administrative Agent, which shall be a Lender or shall be
another commercial bank or trust company reasonably acceptable to the Borrower
organized under the laws of the United States or of any State thereof. If no
successor Administrative Agent shall have been so appointed by the Majority
Lenders, and shall have accepted such appointment, within 30 days after the
retiring Administrative Agent's giving of notice of resignation or the Majority
Lenders' removal of the retiring Administrative Agent, then the retiring
Administrative Agent may, on behalf of the Lenders, appoint a successor
Administrative Agent, which shall be a Lender or shall be another commercial
bank or trust company organized under the laws of the United States or any State
thereof and reasonably acceptable to the Borrower. Upon the acceptance of any
appointment as Administrative Agent hereunder by a successor Administrative
Agent, such successor Administrative Agent 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 shall be discharged
from its duties and obligations under this Agreement. After any retiring
Administrative Agent's resignation or removal hereunder as Administrative Agent,
the provisions of this Article VII shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was Administrative Agent under this
Agreement.
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ARTICLE VIII
MISCELLANEOUS
SECTION 8.01. Amendments, Etc. No amendment or waiver of any provision
of any Loan Document, nor consent to any departure by the Borrower therefrom,
shall in any event be effective unless the same shall be in writing and signed
by the Majority Lenders and, in the case of any amendment, the Borrower, and
then such waiver or consent shall be effective only in the specific instance and
for the specific purpose for which given; provided, however, that no amendment,
waiver or consent shall, unless in writing and signed by all the Lenders, do any
of the following: (a) waive, modify or eliminate any of the conditions
specified in Section 3.01 or 3.02, (b) increase the Commitments of the Lenders,
change or extend the Termination Date (except as provided in Section 2.18) or
subject the Lenders to any additional obligations, (c) reduce the principal of,
or interest on, the A Notes, any Applicable Margin or any fees or other amounts
payable hereunder, (d) postpone any date fixed for any payment of principal of,
or interest on, the A Notes or any fees or other amounts payable hereunder, (e)
change the percentage of the Commitments or of the aggregate unpaid principal
amount of the A Notes, or the number of Lenders, which shall be required for the
Lenders or any of them to take any action hereunder or (f) amend this Section
8.01; and provided, further, that no amendment, waiver or consent shall, unless
in writing and signed by the Lenders making or maintaining such B Advances, do
any of the following: (a) waive, modify or eliminate any of the conditions to
any B Advance specified in Section 3.03, (b) reduce the principal of, or
interest on, any B Note or other amounts payable in respect thereof, (c)
postpone any date fixed for any payment of principal of, or interest on, any B
Note or any other amounts payable in respect thereof; and provided, further,
that no amendment, waiver or consent shall, unless in writing and signed by the
Administrative Agent in addition to the Lenders required above to take such
action, affect the rights or duties of the Administrative Agent under this
Agreement or any Note.
SECTION 8.02. Notices, Etc. All notices and other communications
provided for hereunder and under the other Loan Documents shall be in writing
(including telecopier, telegraphic, telex or cable communication) and mailed,
telecopied, telegraphed, telexed, cabled or delivered, if to the Borrower, at
its address at Bank One Plaza- 37th Floor, 00 Xxxxx Xxxxxxxx Xxxxxx, Xxxxxxx,
Xxxxxxxx 00000 (or X.X. Xxx 000, Xxxxxxx, Xxxxxxxx 00000-0000, if mailed),
Attention: Treasurer (telephone: 000-000-0000; and telecopier: 312-394-3110),
with a copy to the same address, attention: Associate General Counsel-Corporate
and Commercial (telephone: 000-000-0000; and telecopier: 312-394-3950); if to
any Bank, at its Domestic Lending Office specified opposite its name on Schedule
I hereto; if to any other Lender, at its Domestic Lending Office specified in
the Lender Assignment pursuant to which it became a Lender; and if to the
Administrative Agent, at its address at Xxx Xxxxxxxx, Xxx. 000, Xxx Xxxxxx,
Xxxxxxxx 00000, Attention: Bank Loan Syndications; or, as to each party, at such
other address as shall be designated by such party in a written notice to the
other parties. All such notices and communications shall, when mailed,
telecopied, telegraphed, telexed or cabled, be effective five days after being
deposited in the mails, or when delivered to the telegraph company, telecopied,
confirmed by telex answerback or delivered to the cable company, respectively,
except that notices and communications to the Administrative Agent pursuant to
Article II or VII shall not be effective until received by the Administrative
Agent.
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SECTION 8.03. No Waiver; Remedies. No failure on the part of any Lender
or the Administrative Agent to exercise, and no delay in exercising, any right
hereunder or under any Note shall operate as a waiver thereof; nor shall any
single or partial exercise of any such right preclude any other or further
exercise thereof or the exercise of any other right. The remedies herein
provided are cumulative and not exclusive of any remedies provided by law.
SECTION 8.04. Costs, Expenses, Taxes and Indemnification. (a) The
Borrower agrees to pay on demand all costs and expenses of the Administrative
Agent in connection with the preparation (including, without limitation,
printing costs), negotiation, execution, delivery, modification and amendment of
this Agreement and the other Loan Documents, and the other documents and
instruments to be delivered hereunder and thereunder, including, without
limitation, the reasonable fees and out-of-pocket expenses of counsel for the
Administrative Agent with respect thereto and with respect to the administration
of, and advising the Administrative Agent as to its rights and responsibilities
under, this Agreement and the other Loan Documents. The Borrower further agrees
to pay on demand all costs and expenses, if any (including, without limitation,
reasonable counsel fees and expenses), in connection with the enforcement
(whether through negotiations, legal proceedings or otherwise) of this Agreement
and the other Loan Documents and the other documents and instruments to be
delivered hereunder and thereunder, including, without limitation, reasonable
counsel fees and expenses in connection with the enforcement of rights under
this Section 8.04(a). In addition, the Borrower shall pay any and all stamp and
other taxes payable or determined to be payable in connection with the execution
and delivery of this Agreement and the other Loan Documents, and the other
documents and instruments to be delivered hereunder and thereunder, and agrees
to save the Administrative Agent and each Lender harmless from and against any
and all liabilities with respect to or resulting from any delay in paying or
omission to pay such taxes.
(b) If any payment of principal of, or Conversion of, any Eurodollar Rate
Advance or B Advance is made other than on the last day of the Interest Period
for such A Advance or other than on the maturity date of such B Advance, as a
result of a payment or Conversion pursuant to Section 2.10, 2.11, 2.12 or 2.14
or acceleration of the maturity of the Notes pursuant to Section 6.01 or for any
other reason, the Borrower shall, upon demand by any Lender (with a copy of such
demand to the Administrative Agent), pay to the Administrative Agent for the
account of such Lender any amounts required to compensate such Lender for any
additional losses, costs or expenses which it may reasonably incur as a result
of such payment or Conversion, including, without limitation, any loss, cost or
expense incurred by reason of the liquidation or reemployment of deposits or
other funds acquired by any Lender to fund or maintain such Advance.
(c) The Borrower hereby agrees to indemnify and hold each Lender, the
Administrative Agent and their respective officers, directors, employees,
professional advisors and affiliates (each, an "Indemnified Person") harmless
from and against any and all claims, damages, losses, liabilities, costs or
expenses (including reasonable attorney's fees and expenses, whether or not such
Indemnified Person is named as a party to any proceeding or is otherwise
subjected to judicial or legal process arising from any such proceeding) which
any of them may incur or which may be claimed against any of them by any Person
(except for such claims,
50
damages, losses, liabilities, costs and expenses resulting from such Indemnified
Person's gross negligence or willful misconduct):
(i) by reason of or in connection with the execution, delivery or
performance of any of the Loan Documents or any transaction contemplated
thereby, or the use by the Borrower of the proceeds of any Extension of
Credit;
(ii) in connection with any documentary taxes, assessments or charges
made by any governmental authority by reason of the execution and delivery
of any of the Loan Documents; or
(iii) in connection with or resulting from the utilization, storage,
disposal, treatment, generation, transportation, release or ownership of
any Hazardous Substance (i) at, upon, or under any property of the Borrower
or any of its Affiliates or (ii) by or on behalf of the Borrower or any of
its Affiliates at any time and in any place.
(d) The Borrower's obligations under this Section 8.04 shall survive the
repayment of all amounts owing to the Lenders under the Notes and the
termination of the Commitments. If and to the extent that the obligations of the
Borrower under this Section 8.04 are unenforceable for any reason, the Borrower
agrees to make the maximum contribution to the payment and satisfaction thereof
which is permissible under applicable law.
SECTION 8.05. Right of Set-off. (A) Upon (i) the occurrence and during the
continuance of any Event of Default and (ii) the making of the request or the
granting of the consent by the Majority Lenders specified by Section 6.01 to
authorize the Administrative Agent to declare the Notes due and payable pursuant
to the provisions of Section 6.01, each Lender is hereby authorized at any time
and from time to time, to the fullest extent permitted by law, to set off and
apply any and all deposits (general or special, time or demand, provisional or
final) at any time held and other indebtedness at any time owing by such Lender
to or for the credit or the account of the Borrower against any and all of the
obligations of the Borrower now or hereafter existing under any Loan Document
and any Note held by such Lender, irrespective of whether or not such Lender
shall have made any demand under such Loan Document or such Note and although
such obligations may be unmatured. Each Lender agrees promptly to notify the
Borrower after any such set-off and application made by such Lender, provided
that the failure to give such notice shall not affect the validity of such set-
off and application. The rights of each Lender under this Section are in
addition to other rights and remedies (including, without limitation, other
rights of set-off) which such Lender may have.
(b) The Borrower agrees that it shall have no right of set-off, deduction
or counterclaim in respect of its obligations hereunder, and that the
obligations of the Lenders hereunder are several and not joint. Nothing
contained herein shall constitute a relinquishment or waiver of the Borrower's
rights to any independent claim that the Borrower may have against the
Administrative Agent or any Lender for the Administrative Agent's or such
Lender's, as the case may be, gross negligence or willful misconduct, but no
Lender shall be liable for the conduct
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of the Administrative Agent or any other Lender, and the Administrative Agent
shall not be liable for the conduct of any Lender.
SECTION 8.06. Binding Effect. This Agreement shall become effective when
it shall have been executed by the Borrower and the Administrative Agent and
when the Administrative Agent shall have been notified in writing by each Bank
that such Bank has executed it and thereafter shall be binding upon and inure to
the benefit of the Borrower, the Administrative Agent and each Lender and their
respective successors and assigns, except that the Borrower shall not have the
right to assign its rights hereunder or any interest herein without the prior
written consent of the Lenders.
SECTION 8.07. Assignments and Participations. (A) Each Lender may, upon
the written consent of the Administrative Agent and the Borrower (such consent
not to be unreasonably withheld), assign to one or more Eligible Assignees all
or a portion of its rights and obligations under this Agreement (including,
without limitation, all or a portion of its Commitment, the Advances owing to it
and the Note or Notes held by it); provided, however, that (i) each such
assignment shall be of a constant, and not a varying, percentage of all of the
assigning Lender's rights and obligations under this Agreement, (ii) the amount
of the Commitment of the assigning Lender being assigned pursuant to each such
assignment (determined as of the date of the Lender Assignment with respect to
such assignment) shall in no event be less than the lesser of the amount of such
Lender's then remaining Commitment and $15,000,000 (except in the case of
assignments between Lenders at the time already parties hereto), and (iii) the
parties to each such assignment shall execute and deliver to the Administrative
Agent, for its acceptance and recording in the Register, a Lender Assignment,
together with any Note or Notes subject to such assignment and a processing and
recordation fee of $3,000. Promptly following its receipt of such Lender
Assignment, Note or Notes and fee, the Administrative Agent shall accept and
record such Lender Assignment in the Register. Upon such execution, delivery,
acceptance and recording, from and after the effective date specified in each
Lender Assignment, (x) the assignee thereunder shall be a party hereto and, to
the extent that rights and obligations hereunder have been assigned to it
pursuant to such Lender Assignment, have the rights and obligations of a Lender
hereunder and (y) the Lender assignor thereunder shall, to the extent that
rights and obligations hereunder have been assigned by it pursuant to such
Lender Assignment, relinquish its rights and be released from its obligations
under this Agreement (and, in the case of a Lender Assignment covering all or
the remaining portion of an assigning Lender's rights and obligations under this
Agreement, such Lender shall cease to be a party hereto). Notwithstanding
anything to the contrary contained in this Agreement, any Lender may at any time
assign all or any portion of the Advances owing to it to any Affiliate of such
Lender. No such assignment, other than to an Eligible Assignee, shall release
the assigning Lender from its obligations hereunder.
(b) By executing and delivering a Lender Assignment, the Lender assignor
thereunder and the assignee thereunder confirm to and agree with each other and
the other parties hereto as follows: (i) other than as provided in such Lender
Assignment, such assigning Lender
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makes no representation or warranty and assumes no responsibility with respect
to any statements, warranties or representations made in or in connection with
any Loan Document or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of any Loan Document or any other instrument
or document furnished pursuant thereto; (ii) such assigning Lender makes no
representation or warranty and assumes no responsibility with respect to the
financial condition of the Borrower or the performance or observance by the
Borrower of any of its obligations under any Loan Document or any other
instrument or document furnished pursuant thereto; (iii) such assignee confirms
that it has received a copy of each Loan Document, together with such documents
and information as it has deemed appropriate to make its own credit analysis and
decision to enter into such Lender Assignment; (iv) such assignee will,
independently and without reliance upon the Administrative Agent, such assigning
Lender or any other Lender and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Loan Documents; (v) such assignee confirms
that it is an Eligible Assignee; (vi) such assignee appoints and authorizes the
Administrative Agent to take such action as agent on its behalf and to exercise
such powers under the Loan Documents as are delegated to the Administrative
Agent by the terms thereof, together with such powers as are reasonably
incidental thereto; and (vii) such assignee agrees that it will perform in
accordance with their terms all of the obligations which by the terms of the
Loan Documents are required to be performed by it as a Lender.
(c) The Administrative Agent shall maintain at its address referred to in
Section 8.02 a copy of each Lender Assignment delivered to and accepted by it
and a register for the recordation of the names and addresses of the Lenders and
the Commitment of, and principal amount of the Advances owing to, each Lender
from time to time (the "Register"). The entries in the Register shall be
conclusive and binding for all purposes, absent manifest error, and the
Borrower, the Administrative Agent and the Lenders may treat each Person whose
name is recorded in the Register as a Lender hereunder for all purposes of this
Agreement. The Register shall be available for inspection by the Borrower or any
Lender at any reasonable time and from time to time upon reasonable prior
notice.
(d) Upon its receipt of a Lender Assignment executed by an assigning
Lender and an assignee representing that it is an Eligible Assignee, together
with any Note or Notes subject to such assignment, the Administrative Agent
shall, with the consent of the Borrower (such consent not to be unreasonably
withheld), and provided that such Lender Assignment has been completed and is in
substantially the form of Exhibit 8.07 hereto, (i) accept such Lender
Assignment, (ii) record the information contained therein in the Register and
(iii) give prompt notice thereof to the Borrower. Within 10 Business Days after
its receipt of such notice, the Borrower, at its own expense, shall execute and
deliver to the Administrative Agent in exchange for the surrendered Note or
Notes a new Note to the order of such Eligible Assignee in an amount equal to
the Commitment assumed by it pursuant to such Lender Assignment and, if the
assigning Lender has retained a Commitment hereunder, a new Note to the order of
the assigning Lender in an amount equal to the Commitment retained by it
hereunder. Such new Note or Notes shall be in an aggregate principal amount
equal to the aggregate principal amount of such surrendered Note or Notes, shall
be dated the effective date of such Lender Assignment and shall otherwise be in
substantially the form of Exhibit 1.01A-1 hereto.
53
(e) Each Lender may sell participations to one or more banks, financial
institutions or other entities in all or a portion of its rights and obligations
under the Loan Documents (including, without limitation, all or a portion of its
Commitment, the Advances owing to it and the Note or Notes held by it);
provided, however, that (i) such Lender's obligations under this Agreement
(including, without limitation, its Commitment to the Borrower hereunder) shall
remain unchanged, (ii) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations, (iii) such Lender shall
remain the holder of any such Note for all purposes of this Agreement, and (iv)
the Borrower, the Administrative Agent and the other Lenders shall continue to
deal solely and directly with such Lender in connection with such Lender's
rights and obligations under this Agreement.
(f) Any Lender may, in connection with any assignment or participation or
proposed assignment or participation pursuant to this Section 8.07, disclose to
the assignee or participant or proposed assignee or participant, any information
relating to the Borrower furnished to such Lender by or on behalf of the
Borrower; provided that, prior to any such disclosure, the assignee or
participant or proposed assignee or participant shall agree, in accordance with
the terms of Section 8.08, to preserve the confidentiality of any Confidential
Information relating to the Borrower received by it from such Lender.
(g) If any Lender (or any bank, financial institution, or other entity to
which such Lender has sold a participation) shall (i) make any demand for
payment under Section 2.08, 2.13 or 2.16, (ii) give notice to the Administrative
Agent pursuant to Section 2.14, (iii) either (A) not have outstanding unsecured
long-term indebtedness rated at or above "investment grade" by each of Xxxxx'x
and S&P, or (B) not have outstanding short-term unsecured indebtedness rated at
or above A-2 or P-2 by each of Xxxxx'x and S&P or (iv) determine not to extend
the Termination Date in response to any request by the Borrower pursuant to
Section 2.18, then (1) in the case of any demand made under clause (i) above, or
the occurrence of the event described in clause (ii) above, within 30 days after
any such demand or occurrence (if, but only if, in the case of any demanded
payment described in clause (i), such demanded payment has been made by the
Borrower), and (2) in the case of the occurrence of the event described in
clause (iii) or (iv) above, at any time prior to the then-scheduled Termination
Date, the Borrower may, with the approval of the Administrative Agent (which
approval shall not be unreasonably withheld), and provided that no Event of
Default or Unmatured Default shall then have occurred and be continuing, demand
that such Lender assign in accordance with this Section 8.07 to one or more
Eligible Assignees designated by the Borrower all (but not less than all) of
such Lender's Commitment and the Advances owing to it within the period ending
on the latest to occur of (x) the last day in the period described in clause (1)
or (2) above, as applicable, (y) the last day of the longest of the then current
Interest Periods for such Advances, and (z) the latest maturity date of any B
Advances owing to such Lender. If any such Eligible Assignee designated by the
Borrower shall fail to consummate such assignment on terms acceptable to such
Lender, or if the Borrower shall fail to designate any such Eligible Assignees
for all or part of such Lender's Commitment or Advances, then such demand by the
Borrower shall become ineffective; it being understood for purposes of this
subsection (g) that such assignment shall be conclusively deemed to be on terms
acceptable to such Lender, and such Lender shall be compelled to consummate
54
such assignment to an Eligible Assignee designated by the Borrower, if such
Eligible Assignee (x) shall agree to such assignment by entering into a Lender
Assignment with such Lender and (y) shall offer compensation to such Lender in
an amount equal to all amounts then owing by the Borrower to such Lender
hereunder and under the Note made by the Borrower to such Lender, whether for
principal, interest, fees, costs or expenses (other than the demanded payment
referred to above and payable by the Borrower as a condition to the Borrower's
right to demand such assignment), or otherwise.
(h) Anything in this Section 8.07 to the contrary notwithstanding, any
Lender may assign and pledge all or any portion of its Commitment and the
Advances owing to it (i) with notice to the Borrower and the Agent, to any of
its affiliates and (ii) without the consent of the Borrower or the Agent, to any
Federal Reserve Bank (and its transferees) as collateral security pursuant to
Regulation A of the Board of Governors of the Federal Reserve System and any
Operating Circular issued by such Federal Reserve Bank. No such assignment shall
release the assigning Lender from its obligations hereunder.
SECTION 8.08. Confidentiality. In connection with the negotiation and
administration of this Agreement and the other Loan Documents, the Borrower has
furnished and will from time to time furnish to the Administrative Agent and the
Lenders (each, a "Recipient") written information which is identified to the
Recipient in writing when delivered as confidential (such information, other
than any such information which (i) is publicly available, or otherwise known to
the Recipient, at the time of disclosure, (ii) subsequently becomes publicly
available other than through any act or omission by the Recipient or (iii)
otherwise subsequently becomes known to the Recipient other than through a
Person whom the Recipient knows to be acting in violation of his or its
obligations to the Borrower, being hereinafter referred to as "Confidential
Information"). The Recipient will maintain the confidentiality of any
Confidential Information in accordance with such procedures as the Recipient
applies generally to information of that nature. It is understood, however, that
the foregoing will not restrict the Recipient's ability to freely exchange such
Confidential Information with current or prospective participants in or
assignees of the Recipient's position herein, but the Recipient's ability to so
exchange Confidential Information shall be conditioned upon any such prospective
participant's or assignee's entering into an understanding as to confidentiality
similar to this provision. It is further understood that the foregoing will not
prohibit the disclosure of any or all Confidential Information if and to the
extent that such disclosure may be required (i) by a regulatory agency or
otherwise in connection with an examination of the Recipient's records by
appropriate authorities, (ii) pursuant to court order, subpoena or other legal
process or in connection with any pending or threatened litigation, (iii)
otherwise as required by law, or (iv) in order to protect its interests or its
rights or remedies hereunder or under the other Loan Documents; in the event of
any required disclosure under clause (ii) or (iii) above, the Recipient agrees
to use reasonable efforts to inform the Borrower as promptly as practicable.
SECTION 8.09. Waiver of Jury Trial. THE ADMINISTRATIVE AGENT, THE LENDERS
AND THE BORROWER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY
RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED
HEREON, OR ARISING OUT OF, UNDER, OR IN
55
CONNECTION WITH, THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF
CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN), OR ACTIONS
OF THE ADMINISTRATIVE AGENT, SUCH LENDERS OR THE BORROWER. THIS PROVISION IS A
MATERIAL INDUCEMENT FOR THE ADMINISTRATIVE AGENT AND THE LENDERS ENTERING INTO
THIS AGREEMENT.
SECTION 8.10. Consent. Unless otherwise specified as being within the sole
discretion of the Administrative Agent, the Lenders, the Majority Lenders or the
Borrower, whenever the consent or approval of the Administrative Agent, the
Lenders, the Majority Lenders or the Borrower, respectively, is required herein,
such consent or approval shall not be unreasonably withheld or delayed.
SECTION 8.11. Governing Law. This Agreement and the other Loan Documents
shall be governed by, and construed in accordance with, the laws of the State of
New York. Each of the Borrower, each Lender, and the Administrative Agent (i)
irrevocably submits to the non-exclusive jurisdiction of any New York State
court or Federal court sitting in New York City in any action arising out of any
Loan Document, (ii) agrees that all claims in such action may be decided in such
court, (iii) waives, to the fullest extent it may effectively do so, the defense
of an inconvenient forum and (iv) consents to the service of process by mail. A
final judgment in any such action shall be conclusive and may be enforced in
other jurisdictions. Nothing herein shall affect the right of any party to serve
legal process in any manner permitted by law or affect its right to bring any
action in any other court.
SECTION 8.12. Relation of the Parties; No Beneficiary. No term, provision
or requirement, whether express or implied, of any Loan Document, or actions
taken or to be taken by any party thereunder, shall be construed to create a
partnership, association, or joint venture between such parties or any of them.
No term or provision of the Loan Documents shall be construed to confer a
benefit upon, or grant a right or privilege to, any Person other than the
parties thereto.
SECTION 8.13. Execution in Counterparts. This Agreement may be executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.
S-1
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.
COMMONWEALTH EDISON COMPANY
By_______________________________
Name:
Title:
S-2
Administrative Agent
--------------------
CITIBANK, N.A.,
as Administrative Agent and as Bank
By_______________________________
Name:
Title:
SCHEDULE I
COMMONWEALTH EDISON COMPANY
Credit Agreement, dated as of September 22, 1999, among
Commonwealth Edison Company, the Banks named therein and Citibank, N.A., as
Administrative Agent
Name of Bank Commitment Domestic Lending Office Eurodollar Lending Office
------------ ------------ ----------------------- -------------------------
Citibank, N.A. $500,000,000 Two Pennsway, Ste. 200, Same as Domestic Lending
Xxx Xxxxxx, Xxxxxxxx 00000 Office
Attention: Bank Loan Syndications
SCHEDULE II
Fossil-Fired Generating Facilities
Xxxxxxx Station, Morris, Illinois
Xxxxxxxx Station, Chicago, Illinois
Xxxx Station, Chicago, Illinois
Joliet Station, Joliet, Illinois
Powerton Station, Pekin, Illinois
Waukegan Station, Waukegan, Illinois
Will County Station, Lockport, Illinois
S-1
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.
COMMONWEALTH EDISON COMPANY
By_________________________
Name:
Title:
S-1
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.
COMMONWEALTH EDISON COMPANY
By_________________________
Name:
Title:
S-1
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.
COMMONWEALTH EDISON COMPANY
By_________________________
Name:
Title:
S-1
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.
COMMONWEALTH EDISON COMPANY
By_________________________
Name:
Title:
S-1
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.
COMMONWEALTH EDISON COMPANY
By_________________________
Name:
Title:
A NOTE
U.S. $500,000,000 September 22, 1999
FOR VALUE RECEIVED, the undersigned, COMMONWEALTH EDISON COMPANY, an
Illinois corporation (the "Borrower"), HEREBY PROMISES TO PAY to the order of
CITIBANK, N.A. (the "Lender") for the account of its Applicable Lending Office
(as defined in the Credit Agreement referred to below) the principal sum of
U.S. $500,000,000 or, if less, the aggregate principal amount of the A Advances
(as defined below) made by the Lender to the Borrower pursuant to the Credit
Agreement outstanding on the Termination Date (as defined in the Credit
Agreement).
The Borrower promises to pay interest on the unpaid principal amount of
each A Advance from the date of such A Advance until such principal amount is
paid in full, at such interest rates, and payable at such times, as are
specified in the Credit Agreement.
Both principal and interest are payable in lawful money of the United
States of America to Citibank, N.A., as Administrative Agent, at Xxx Xxxxxxxx,
Xxxxx 000, Xxx Xxxxxx, Xxxxxxxx 00000, Attention: Bank Loan Syndications, in
same day funds. Each A Advance made by the Lender to the Borrower pursuant to
the Credit Agreement, and all payments made on account of principal thereof,
shall be recorded by the Lender and, prior to any transfer hereof, endorsed on
the grid attached hereto which is part of the Promissory Note, provided that the
failure to so record any A Advance or any payment thereof shall not affect the
payment obligations of the Borrower hereunder or under the Credit Agreement.
This promissory note is one of the A Notes referred to in, and is entitled
to the benefits of, the Credit Agreement, dated as of September 22, 1999 (as
amended, modified or supplemented from time to time, the "Credit Agreement"),
among the Borrower, the Lender and certain other lenders parties thereto, and
Citibank, N.A., as Administrative Agent for the Lender and such other lenders.
The Credit Agreement, among other things, (i) provides for the making of
advances (the "A Advances") by the Lender to the Borrower from time to time in
an aggregate amount not to exceed at any time outstanding the U.S. dollar amount
first above mentioned, the indebtedness of the Borrower resulting from each such
A Advance being evidenced by this promissory note, and (ii) contains provisions
for acceleration of the maturity hereof upon the happening of certain stated
events and also for prepayments on account of principal hereof prior to the
maturity hereof upon the terms and conditions therein specified.
The Borrower hereby waives presentment, demand, protest and notice of any
kind. No failure to exercise, and no delay in exercising, any rights hereunder
on the part of the holder hereof shall operate as a waiver of such rights.
This Promissory Note shall be governed by, and construed in accordance
with, the laws of the State of New York. The Borrower (i) irrevocably submits to
the non-exclusive jurisdiction of any New York State Court or Federal court
sitting in New York City in any action arising out of this promissory note, (ii)
agrees that all claims in such action may be decided in such court, (iii)
waives, to the fullest extent it may effectively do so, the defense of an
inconvenient forum and (iv) consents to the service of process by mail. A final
judgment in any such action shall be conclusive and may be enforced in other
jurisdictions. Nothing herein shall affect the right of any party to serve
legal process in any manner permitted by law or affect its right to bring any
action in any other court.
COMMONWEALTH EDISON COMPANY
By _____________________________
Name:
Title:
2
ADVANCES, MATURITIES, AND PAYMENTS OF PRINCIPAL
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Amount of
Maturity Principal Unpaid
Amount of of Paid or Principal Notation
Date Advance Advance Prepaid Balance Made By
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