AMENDED, RESTATED AND CONSOLIDATED
CREDIT AGREEMENT dated as of December 15,
1997, among FM PROPERTIES OPERATING CO., a
Delaware general partnership ("FMPOC"),
CIRCLE C LAND CORP., a Texas corporation
("Circle C", and together with FMPOC, the
"Borrowers"); FM PROPERTIES INC., a Delaware
corporation, as a Restricted Entity (as
defined herein) ("FMPO"); the undersigned
financial institutions (collectively, the
"Lenders"), and THE CHASE MANHATTAN BANK, a
New York banking corporation ("Chase"), as
administrative agent for the Lenders (in such
capacity, the "Administrative Agent") and as
documentary agent for the Lenders (in such
capacity, the "Documentary Agent"; the
Administrative Agent and Documentary Agent
being, collectively, the "Agents").
Freeport-McMoRan Inc., a Delaware corporation
("FTX"), intends to consummate a merger, whereby FTX shall
be merged with and into IMC Global Inc., a Delaware
corporation ("IGL"), by the end of 1997 (the "Merger"), and
as a condition thereof FTX has, with the consent of the
Lenders, transferred to FMPO, and FMPO has assumed, FTX's
interest as managing general partner of FMPOC.
In connection therewith, the Borrowers desire to
amend and restate the terms and provisions of the following
agreements entered into by FMPOC and Circle C and shall
consolidate such terms and provisions into this Agreement:
(i) the Amended and Restated Credit Agreement dated as of
December 20, 1996, among FMPOC, FTX, the banks party thereto
and Chase (the "FMPOC Revolving Facility"); (ii) the Second
Amended and Restated Note Agreement, as amended, dated as of
June 30, 1995, among FMPOC, FTX, Hibernia National Bank
("Hibernia") and Chase (the "FMPOC Term Loan Facility"); and
(iii) the Amended and Restated Credit Agreement dated as of
December 20, 1996, between Circle C and Texas Commerce Bank
National Association ("TCB") (the "Circle C Loan Facility",
and together with the FMPOC Revolving Facility and FMPOC
Term Loan Facility, the "Credits").
Upon its effectiveness, this Agreement shall
govern both the indebtedness which shall remain outstanding
as of the Effective Date under the Credits, as well as
subsequent Borrowings thereunder, in an aggregate amount
equal to $50,000,000, (i) $21,796,246 of which represents
the FMPOC Revolving Facility and the FMPOC Term Loan
Facility, each of which shall be amended and restated to be
one revolving credit facility (the "New FMPOC Revolving
Tranche") under this Agreement in such aggregate amount,
which shall also include as part thereof a new letter of
credit facility under this Agreement in an amount of up to
$7,500,000 established by FMPOC with Chase (the "FMPOC L/C
Facility"), and (ii) $28,203,754 of which represents the
Circle C Loan Facility, which shall be amended and restated
to be a revolving credit facility (the "New Circle C
Revolving Tranche") in the amount of $13,203,754, which
shall also include as part thereof a new letter of credit
facility under this Agreement in an amount of up to
$7,500,000 established by Circle C with Chase (the "Circle C
L/C Facility") and a term loan in the amount of $15,000,000
(the "New Circle C Term Tranche", and together with the New
FMPOC Revolving Tranche and New Circle C Revolving Tranche,
the "Tranches"); provided, that, in no event, shall the sum
of the aggregate amount of Letters of Credit (as defined
below) outstanding at any time under the Circle C L/C
Facility and the FMPOC L/C Facility exceed $7,500,000.
It is the intent of the parties to this Agreement
that this Agreement (i) shall evidence the Borrowers' Debt
(as defined below) under the Credits, (ii) has been entered
into in substitution for, and not in payment of, the
obligations of the Borrowers under the Credits and (iii) is
in no way intended to constitute a novation of any of the
Borrowers' Debt which was evidenced by any of the Credits.
The Lenders are willing to amend and restate the
above-referenced agreements upon the terms and subject to
the conditions hereinafter set forth.
NOW, THEREFORE, in consideration of the premises
and of the mutual covenants herein contained, the parties
hereto agree as follows:
ARTICLE I
Definitions
SECTION 1.01. Definitions. As used in this
Agreement, the following terms have the meanings indicated
(any term defined in this Article I or elsewhere in this
Agreement in the singular and used in this Agreement in the
plural shall include the plural, and vice versa):
"Administrative Fee" has the meaning specified in
Section 2.06(c).
"Administrative Questionnaire" means an
Administrative Questionnaire in the form of Exhibit A.
"Affiliate" means, when used with respect to a
specified Person, another Person that directly, or
indirectly through one or more intermediaries, Controls or
is Controlled by or is under common Control with the Person
specified.
"Aggregate Circle C Revolving Credit Exposure"
means the aggregate amount of the Lenders' Circle C
Revolving Credit Exposures.
"Aggregate FMPOC Revolving Credit Exposure" means
the aggregate amount of the Lenders' FMPOC Revolving Credit
Exposures.
"Alternate Base Rate" means for any day, a rate
per annum (rounded upwards, if not already a whole multiple
of 1/100 of 1%, to the next higher 1/100 of l%) equal to the
greatest of (a) the Prime Rate in effect on such day,
(b) the Base CD Rate in effect on such day plus 1% and
(c) the Federal Funds Effective Rate in effect for such day
plus 1/2 of 1%. For purposes hereof, the term "Prime Rate"
means the rate of interest per annum publicly announced from
time to time by Chase as its prime rate in effect at its
principal office in The City of New York; each change in the
Prime Rate shall be effective on the date such change is
publicly announced as being effective. "Base CD Rate" means
the sum of (x) the product of (i) the Three-Month Secondary
CD Rate and (ii) Statutory Reserves and (y) the Assessment
Rate. "Three-Month Secondary CD Rate" means, for any day,
the secondary market rate for three-month certificates of
deposit reported as being in effect on such day (or, if such
day shall not be a Business Day, the next preceding Business
Day) by the Board through the public information telephone
line of the Federal Reserve Bank of New York (which rate
will, under the current practices of the Board, be published
in Federal Reserve Statistical Release H.15(519) during the
week following such day), or, if such rate shall not be so
reported on such day or such next preceding Business Day,
the average of the secondary market quotations for three-
month certificates of deposit of major money center banks in
New York City received at approximately 10:00 a.m., New York
City time, on such day (or, if such day shall not be a
Business Day, on the next preceding Business Day) by the
Administrative Agent from three New York City negotiable
certificate of deposit dealers of recognized standing
selected by it. "Federal Funds Effective Rate" means, for
any day, 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 on the next succeeding 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 the day of such transactions received
by the Administrative Agent from three Federal funds brokers
of recognized standing selected by it. If for any reason
the Administrative Agent shall have determined (which
determination shall be conclusive absent manifest error)
that it is unable to ascertain the Base CD Rate or the
Federal Funds Effective Rate or both for any reason,
including the inability or failure of the Administrative
Agent to obtain sufficient quotations in accordance with the
terms hereof, the Alternate Base Rate shall be determined
without regard to clause (b) or (c), or both, of the first
sentence of this definition, as appropriate, until the
circumstances giving rise to such inability no longer exist.
Any change in the Alternate Base Rate due to a change in
the Prime Rate, the Three-Month Secondary CD Rate or the
Federal Funds Effective Rate shall be effective on the
effective date of such change in the Prime Rate, the Three-
Month Secondary CD Rate or the Federal Funds Effective Rate,
respectively.
"Applicable LIBO Rate" means on a per annum basis,
in respect of any LIBO Rate Loan, for each day during the
Interest Period for such Loan, the sum of (i) the LIBO Rate
as determined by the Administrative Agent plus (ii) the
Applicable Margin.
"Applicable Margin" means, with respect to any
LIBO Rate Loan or Reference Rate Loan, the applicable
percentage set forth on Schedule I.
"Applicable Percentage" of any Lender means the
percentage set opposite such Lender's name on Schedule II in
respect of any of the Tranches, as modified from time to
time as provided hereby.
"Applicable Reference Rate" means on a per annum
basis in respect of any Reference Rate Loan, for any day,
the sum of (i) the Alternate Base Rate plus (ii) the
Applicable Margin.
"Assessment Rate" means, with respect to each day
during an Interest Period, the annual assessment rate
(rounded upwards, if not already a whole multiple of 1/100
of l%, to the next highest whole multiple of 1/100 of 1%) in
effect on such day that is payable by a member of the Bank
Insurance Fund classified as "well-capitalized" and within
supervisory subgroup "B" (or a comparable successor risk
classification) within the meaning of 12 C.F.R. Part 327 (or
any successor provision) to the Federal Deposit Insurance
Corporation for insurance by such Corporation of time
deposits made in dollars at the offices of such member in
the United States; provided that if, as a result of any
change in any law, rule or regulation, it is no longer
possible to determine the Assessment Rate as aforesaid, then
the Assessment Rate shall be such annual rate as shall be
determined by the Administrative Agent to be representative
of the cost of such insurance to the Lenders.
"Board" means the Board of Governors of the
Federal Reserve System of the United States.
"Borrowing" means a group of Loans of a single
Type and a single Tranche made by the relevant Lenders on a
single date and as to which a single Interest Period is in
effect.
"Borrowing Date" means, with respect to any Loan,
the date on which such Loan is disbursed.
"Business Day" means any day other than a
Saturday, Sunday or a day on which banks in New York City
are authorized or required by law to close; provided,
however, that when used in connection with a LIBO Rate Loan,
the term "Business Day" shall also exclude any day on which
banks are not open for dealings in Dollar deposits in the
London interbank market.
"Capitalized Lease Obligation" means the
obligation of any Person to pay rent or other amounts under
a lease of (or other agreement conveying the right to use)
real and/or personal property which obligation is, or in
accordance with GAAP (including Statement of Financial
Accounting Standards No. 13 of the Financial Accounting
Standards Board) is required to be, classified and accounted
for as a capital lease on a balance sheet of such Person
under GAAP, and for purposes of this Agreement the amount of
such obligation shall be the capitalized amount thereof
determined in accordance with GAAP.
"CERCLA" means, collectively, the Comprehensive
Environmental Response, Compensation, and Liability Act of
1980, as amended by the Superfund Amendments and
Reauthorization Act of 1986, 42 U.S.C. SS 9601 et seq.
A "Change in Control" shall be deemed to have
occurred if (a) any Person or group (within the meaning of
Rule 13d-5 of the SEC as in effect on the Effective Date)
shall own directly or indirectly, beneficially or of record,
shares representing 30% or more of the aggregate ordinary
voting power represented by the issued and outstanding
capital stock of FMPO; or (b) a majority of the seats (other
than vacant seats) on the Board of Directors of FMPO shall
at any time be occupied by Persons who were not (i) members
of the Board of Directors of FMPO on the Effective Date or
(ii) appointed as, or nominated for election as, directors
by a majority of the directors who are (x) referred to in
clause (i) and (y) other directors who are appointed or
nominated in accordance with this clause (ii); provided,
however, that neither the Merger nor the transfer of the
general partnership interest in FMPOC from FTX to FMPO shall
constitute a Change in Control under this Agreement.
"Circle C L/C Commitment" means the commitment of
an Issuing Bank to issue Circle C Letters of Credit pursuant
to Section 2.18.
"Circle C L/C Exposure" means, at any time, the
sum of (a) the aggregate undrawn amount of all outstanding
Circle C Letters of Credit at such time plus (b) the
aggregate principal amount of all L/C Disbursements made
pursuant to Circle C Letters of Credit that have not yet
been reimbursed at such time. The Circle C L/C Exposure of
any Circle C Revolving Credit Lender at any time means its
Applicable Percentage of the aggregate Circle C L/C Exposure
at such time.
"Circle C L/C Participation Fee" has the meaning
assigned to such term in Section 2.06(d).
"Circle C Letter of Credit" means any letter of
credit issued under the applicable Circle C L/C Commitment
for the account of Circle C, the Restricted Entities or any
of their respective Affiliates pursuant to Section 2.18 and
the letters of credit listed on Schedule VI, which for
purposes hereof, shall be deemed to be Circle C Letters of
Credit issued hereunder.
"Circle C Loan Facility" has the meaning assigned
to such term in the preamble to this agreement.
"Circle C Term Lender" means each Lender set forth
on Schedule II as making a Loan to Circle C under the New
Circle C Term Tranche.
"Circle C Revolving Credit Commitment" means, with
respect to each Lender, the commitment of such Lender
hereunder to make revolving loans to Circle C as set forth
on Schedule II, or in the Commitment Transfer Supplement
pursuant to which such Lender assumed its Circle C Revolving
Credit Commitment, as the same may be permanently terminated
or reduced from time to time pursuant to Section 2.07 and
pursuant to assignments by such Lender pursuant to
Section 10.03. The Circle C Revolving Credit Commitment of
each Lender shall automatically and permanently terminate on
the Circle C Revolving Commitment Maturity Date.
"Circle C Revolving Credit Exposure" means, with
respect to any Lender under the New Circle C Revolving
Tranche at any time, the aggregate principal amount at such
time of all outstanding Revolving Loans made to Circle C
under the New Circle C Revolving Tranche by such Lender,
plus the aggregate amount at such time of such Lender's
Circle C L/C Exposure.
"Circle C Revolving Commitment Maturity Date"
means January 1, 2001, or, if earlier, the date of
termination of the Circle C Revolving Credit Commitments
pursuant to the terms hereof.
"Circle C Revolving Credit Lender" means a Lender
with a Circle C Revolving Credit Commitment.
"Closing Date" means the date upon which this
Agreement is executed and delivered by all parties hereto.
"Code" means the Internal Revenue Code of 1986, as
amended from time to time.
"Commitment" means, with respect to any Lender,
such Lender's Revolving Credit Commitments and Term Loan
Commitment.
"Commitment Fee" has the meaning assigned to such
term in Section 2.06(a).
"Commitment Termination Date" has the meaning
assigned to such term in Section 2.06(a).
"Commitment Transfer Supplement" means a
Commitment Transfer Supplement entered into by a Lender and
an assignee, and accepted by the Administrative Agent, in
the form of Exhibit B or such other form as shall be
approved by the Administrative Agent.
"Control" means the possession, directly or
indirectly, of the power to direct or cause the direction of
the management or policies of a Person, whether through the
ownership of voting securities, by contract or otherwise,
and "Controlling" and "Controlled" shall have meanings
correlative thereto.
"Credit Event" means the making of a Loan.
"Debt" of any Person means, without duplication,
(a) all obligations of such Person for borrowed money,
(b) all obligations of such Person evidenced by bonds,
debentures, notes or similar instruments, (c) all
obligations of such Person for the unearned balance of any
payment received under any contract outstanding for
180 days, (d) all obligations of such Person under
conditional sale or other title retention agreements
relating to property or assets purchased by such Person,
(e) all obligations of such Person issued or assumed as the
deferred purchase price of property or services (excluding
trade accounts payable and accrued obligations incurred in
the ordinary course of business so long as the same are not
180 days overdue or, if overdue, are being contested in good
faith and by appropriate proceedings), (f) all Debt of
others secured by (or for which the holder of such Debt has
an existing right, contingent or otherwise, to be secured
by) any Lien on property owned or acquired by such Person,
whether or not the obligations secured thereby have been
assumed, (g) all Guarantees by such Person of Debt of
others, (h) all Capitalized Lease Obligations of such
Person, (i) all recourse obligations of such Person with
respect to sales of accounts receivable which would be shown
under GAAP on the balance sheet of such Person as a
liability, (j) all obligations of such Person as an account
party (including reimbursement obligations to the issuer of
a letter of credit) in respect of bankers' acceptances and
letters of credit Guaranteeing Debt and (k) all
noncontingent obligations of such Person as an account party
(including reimbursement obligations to the issuer of a
letter of credit) in respect of letters of credit other than
those referred to in clause (j) above. The Debt of any
Person shall include the Debt of any partnership in which
such Person is a general partner but shall exclude
obligations under leases which are characterized as
Operating Leases.
"Debt Basket" has the meaning assigned to such
term in Section 5.03(c).
"Default" means any event or condition which upon
the giving of notice or lapse of time or both would become
an Event of Default.
"Dollars" or "$" means United States Dollars.
"Domestic Office" means, for any Lender, the
Domestic Office set forth for such Lender on the signature
pages hereof, unless such Lender shall designate a different
Domestic Office by notice in writing to the Administrative
Agent and the Borrowers.
"Effective Date" means the date on which the
conditions specified in Article IV are satisfied (or waived
in accordance with Section 10.07).
"environment" shall mean ambient air, surface
water and groundwater (including potable water, navigable
water and wetlands), the land surface or subsurface strata
or as otherwise defined in any Environmental Law.
"Environmental Claim" means any written notice of
violation, claim, demand, order, directive, cost recovery
action or other cause of action by, or on behalf of, any
Governmental Authority or any Person for damages, injunctive
or equitable relief, personal injury (including sickness,
disease or death), Remedial Action costs, tangible or
intangible property damage, natural resource damages,
nuisance, pollution, any adverse effect on the environment
caused by any Hazardous Material, or for fines, penalties or
restrictions resulting from or based upon: (a) the threat or
existence, or the continuation of the existence, of a
Release (including sudden or non-sudden, accidental or
nonaccidental Releases); (b) exposure to any Hazardous
Material; (c) the presence, use, handling, transportation,
storage, treatment or disposal of any Hazardous Material; or
(d) the violation of any Environmental Law or Environmental
Permit.
"Environmental Law" means any and all applicable
treaties, laws, rules, regulations, codes, ordinances,
orders, decrees, judgments, injunctions, notices or binding
agreements issued, promulgated or entered into by any
Governmental Authority, relating in any way to the
environment, preservation or reclamation of natural
resources, the management, Release or threatened Release of
any Hazardous Material or to health and safety matters,
including CERCLA, the Solid Waste Disposal Act, as amended
by the Resource Conservation and Recovery Act of 1976 and
Hazardous and Solid Waste Amendments of 1984, 42 U.S.C. SS
6901 et seq., the Federal Water Pollution Control Act, as
amended by the Clean Water Act of 1977, 33 U.S.C. 1251 et
seq., the Clean Air Act of 1970, as amended 42 U.S.C. 7401
et seq., the Toxic Substances Control Act of 1976, 15 U.S.C.
SS 2601 et seq., the Occupational Safety and Health Act of
1970, as amended, 29 U.S.C. SS 651 et seq., the Emergency
Planning and Community Right-to-Know Act of 1986, 42 U.S.C.
SS 11001 et seq., the Safe Drinking Water Act of 1974, as
amended, 42 U.S.C. SS 300(f) et seq., the Hazardous
Materials Transportation Act, 49 U.S.C. SS 1801 et seq., and
any similar or implementing state or local law, and all
amendments or regulations promulgated thereunder.
"Environmental Permit" means any permit, approval,
authorization, certificate, license, variance, filing or
permission required by or from any Governmental Authority
pursuant to any Environmental Law.
"Equity Payment" means, directly or indirectly,
any dividend or distribution on, or purchase, redemption or
other payment in respect of, the capital stock of a Borrower
or Restricted Entity, whether in cash, property or a
combination thereof.
"ERISA" means the Employee Retirement Income
Security Act of 1974, as amended from time to time.
"ERISA Affiliate" means any trade or business
(whether or not incorporated), that together with a Borrower
or Restricted Entity, is treated as a single employer under
Section 414(b) or (c) of the Code or, solely for purposes of
Section 302 of ERISA and Section 412 of the Code, is treated
as a single employer under Section 414 of the Code.
"ERISA Event" means (i) any "reportable event", as
defined in Section 4043 of ERISA or the regulations issued
thereunder, with respect to a Plan; (ii) the adoption of any
amendment to a Plan that would require the provision of
security pursuant to Section 401(a)(29) of the Code;
(iii) the existence with respect to any Plan of an
"accumulated funding deficiency" (as defined in Section 412
of the Code), whether or not waived; (iv) the incurrence of
any liability under Title IV of ERISA with respect to any
Plan or Multiemployer Plan, other than any liability for
contributions not yet due or payment of premiums not yet
due; (v) the receipt by a Borrower or any ERISA Affiliate
thereof from the PBGC of any notice relating to the
intention of the PBGC to terminate any Plan or Plans or to
appoint a trustee to administer any Plan; (vi) the receipt
by a Borrower or any ERISA Affiliate thereof of any notice
concerning the imposition of Withdrawal Liability or a
determination that a Multiemployer Plan is, or is expected
to be, insolvent or in reorganization, within the meaning of
Title IV of ERISA; and (vii) any other similar event or
condition with respect to a Plan or Multiemployer Plan that
could reasonably result in liability of a Borrower or
Restricted Entity.
"Event of Default" means any Event of Default
defined in Article VII.
"Federal Funds Effective Rate" has the meaning
assigned to such term that is contained in the definition of
the term "Alternate Bate Rate" in this Section 1.01.
"Fees" means the Commitment Fees, the
Administrative Fee, the L/C Participation Fees and the
Issuing Bank Fees.
"Financial Officer" of any corporation means the
principal financial officer, principal accounting officer,
treasurer, assistant treasurer or controller of such
corporation.
"FMPO Guarantee Agreement" means the FMPO
Guarantee Agreement dated as of December [ ], 1997, by FMPO
for the benefit of the Lenders.
"FMPOC L/C Commitment" means the commitment of an
Issuing Bank to issue FMPOC Letters of Credit pursuant to
Section 2.18.
"FMPOC L/C Exposure" means, at any time, the sum
of (a) the aggregate undrawn amount of all outstanding FMPOC
Letters of Credit at such time plus (b) the aggregate
principal amount of all L/C Disbursements made pursuant to
FMPOC Letters of Credit that have not yet been reimbursed at
such time. The FMPOC L/C Exposure of any FMPOC Revolving
Credit Lender at any time means its Applicable Percentage of
the aggregate FMPOC L/C Exposure at such time.
"FMPOC L/C Participation Fee" has the meaning
assigned to such term in Section 2.06(d).
"FMPOC Letter of Credit" means any letter of
credit issued under the applicable FMPOC L/C Commitment for
the account of FMPOC, the Restricted Entities or any of
their respective Affiliates pursuant to Section 2.18 and the
letters of credit listed on Schedule VI, which for purposes
hereof, shall be deemed to be FMPOC Letters of Credit issued
hereunder.
"FMPOC Revolving Credit Commitment" means, with
respect to each Lender, the commitment of such Lender
hereunder to make revolving loans to FMPOC as set forth on
Schedule II, or in the Commitment Transfer Supplement
pursuant to which such Lender assumed its FMPOC Revolving
Credit Commitment, as the same may be permanently terminated
or reduced from time to time pursuant to Section 2.07 and
pursuant to assignments by such Lender pursuant to
Section 10.03. The FMPOC Revolving Credit Commitment of
each Lender shall automatically and permanently terminate on
the FMPOC Revolving Commitment Maturity Date.
"FMPOC Revolving Commitment Maturity Date" means
January 1, 2001, or, if earlier, the date of termination of
the FMPOC Revolving Credit Commitments pursuant to the terms
hereof.
"FMPOC Revolving Credit Exposure" means, with
respect to any Lender under the New FMPOC Revolving Tranche
at any time, the aggregate principal amount at such time of
all outstanding Revolving Loans made to FMPOC under the New
FMPOC Revolving Tranche by such Lender, plus the aggregate
amount at such time of such Lender's FMPOC L/C Exposure.
"FMPOC Revolving Credit Lender" means a Lender
with an FMPOC Revolving Credit Commitment.
"FMPOC Revolving Facility" has the meaning
assigned to such term in the preamble to this Agreement.
"FMPOC Term Loan Facility" has the meaning
assigned to such term in the preamble to this Agreement.
"FTX" has the meaning specified in the preamble to
this Agreement.
"FTX Guarantee Agreement" means the Amended,
Restated and Consolidated FTX Guarantee Agreement dated as
of December [ ], 1997, by FTX for the benefit of the
Lenders.
"GAAP" has the meaning assigned to such term in
Section 1.02.
"Governmental Authority" means any Federal, state,
local or foreign court or governmental agency, authority,
instrumentality or regulatory body.
"Governmental Rule" means any statute, law,
treaty, rule, code, ordinance, regulation, permit,
certificate or order of any Governmental Authority or any
judgment, decree, injunction, writ, order or like action of
any court, arbitrator or other judicial or quasi judicial
tribunal.
"Guarantee" means, with respect to any Person, any
obligation, contingent or otherwise, of such Person
guaranteeing or having the economic effect of guaranteeing
any Debt or obligation of any other Person in any manner,
whether directly or indirectly, and including, without
limitation, any agreement or obligation (i) to pay dividends
or other distributions upon the stock of such other Person,
or any obligation of such other Person, direct or indirect,
(ii) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Debt or obligation or to
purchase (or advance or supply funds for the purchase of)
any security for the payment of such Debt, obligation,
dividend or distribution, (iii) to purchase or lease
property, securities or services for the purpose of assuring
the owner of such Debt or obligation or the holder of such
stock of the payment of such Debt, obligation, dividend or
distribution including, without limitation, any take-or-pay
contract or agreement to buy a minimum amount or quantity of
production or to provide an operating subsidy which, in each
case, is utilized for a third party financing, or (iv) to
maintain working capital, equity capital or any other
financial statement condition of the primary obligor, so as
to enable the primary obligor to pay such Debt, obligation,
dividend or distribution; provided, however, that the term
Guarantee shall not include any endorsement for collection
or deposit in the ordinary course of business.
"Guarantee Agreements" means (i) the FMPO
Guarantee Agreement; and (ii) the FTX Guarantee Agreement,
or, upon (x) the consummation of the Merger and the
assumption by IGL, as successor by merger to FTX, of all
FTX's rights and obligations as a Guarantor hereunder and
under the FTX Guarantee Agreement and (y) compliance with
the conditions set forth in the IGL Guarantee Agreement, the
IGL Guarantee Agreement, which shall then amend and restate
the FTX Guarantee Agreement in its entirety.
"Guarantors" means FTX and FMPO, together with all
successors in interest thereto.
"Hazardous Materials" means all explosive or
radioactive materials, substances or wastes, hazardous or
toxic materials, substances or wastes, pollutants, solid,
liquid or gaseous wastes, including petroleum or petroleum
distillates, asbestos or asbestos-containing materials,
polychlorinated biphenyls ("PCBs") or PCB-containing
materials or equipment, radon gas, infectious or medical
wastes and all other substances or wastes of any nature
regulated pursuant to any Environmental Law.
"Hedge Agreement" means any interest rate,
currency or commodity swap, cap, floor or collar agreement
or similar hedging arrangement providing for the transfer or
mitigation of interest rate, commodity price or currency
value or exchange rate risks, either generally or under
specific contingencies.
"IGL" has the meaning assigned to such term in the
preamble to this Agreement.
"IGL Credit Facility" means the credit agreement
dated as of December 15, 1997, among IGL, the financial
institutions from time to time parties thereto, Xxxxxx
Guaranty Trust Company of New York, as administrative agent,
Royal Bank of Canada, as documentation agent, and The Chase
Manhattan Bank and Nationsbank, N.A., as co-syndication
agents, as the same may be amended, modified, renewed or
extended from time to time and including any bank credit
facility which refinances or replaces the IGL Credit
Facility then in effect and which serves as IGL's primary
bank credit facility.
"IGL Guarantee Agreement" means the Amended and
Restated IGL Guarantee Agreement to be entered into by IGL
for the benefit of the Lenders upon the consummation of the
Merger, the form of which is attached to the FTX Guarantee
Agreement as Exhibit A thereto.
"Interest Payment Date" means (i) as to any
Reference Rate Loan, the next succeeding March 31, June 30,
September 30 or December 31 (subject to Section 2.16), or if
earlier, the Maturity Date, and (ii) as to any LIBO Rate
Loan, the last day of the Interest Period applicable to such
Loan (and, in the case of any Interest Period of more than
three months' duration, the date that would be the last day
of such Interest Period if such Interest Period were of
three months' duration) and the date of any continuation or
conversion of any Loan as or into a Loan of the same or a
different Type.
"Interest Period" means (i) as to any LIBO Rate
Loan, the period commencing on the date of such LIBO Rate
Loan or on the last day of the immediately preceding
Interest Period applicable to such Loan, as the case may be,
and ending on the numerically corresponding day (or, if
there is no numerically corresponding day, on the last day)
in the calendar month that is one, two, three or six months
thereafter, as the relevant Borrower may elect, and (ii) as
to any Reference Rate Loan, the period commencing on the
date of such Reference Rate Loan or on the last day of the
immediately preceding Interest Period applicable to such
Loan, as the case may be, and ending on the earliest of
(x) the next succeeding March 31, June 30, September 30 or
December 31, (y) the Maturity Date and (z) the date such
Loan is prepaid or converted as permitted hereby; provided,
however, that (1) if any Interest Period would end on a day
that shall not be a Business Day, such Interest Period shall
be extended to the next succeeding Business Day unless, with
respect to LIBO Rate Loans only, such next succeeding
Business Day would fall in the next calendar month, in which
case such Interest Period shall end on the next preceding
Business Day, (2) no Interest Period with respect to any
Loan shall end later than the Maturity Date and (3) interest
shall accrue from and including the first day of an Interest
Period to but excluding the last day of such Interest
Period.
"Investment Basket" has the meaning assigned to
such term in Section 5.03(b).
"Issuing Bank" means, as the context may require,
(a) The Chase Manhattan Bank (or its Affiliates), with
respect to Letters of Credit issued by it, (b) Texas
Commerce Bank (or its Affiliates) with respect to Letters of
Credit issued by it, (c) any other Lender that may become an
Issuing Bank pursuant to Section 2.18(i) or (k), with
respect to Letters of Credit issued by such Lender, or (d)
collectively, any of the foregoing.
"Issuing Bank Fees" has the meaning specified in
Section 2.06(d).
"L/C Disbursement" means a payment or disbursement
made by an Issuing Bank pursuant to a Letter of Credit.
"L/C Exposure" means the sum of the FMPOC L/C
Exposure and the Circle C L/C Exposure.
"L/C Participation Fees" has the meaning assigned
to such term in Section 2.06(d).
"Lender" means each financial institution
signatory hereto and its successors and permitted assigns
under Section 10.03.
"Letter of Credit" means an FMPOC Letter of Credit
or a Circle C Letter of Credit, as applicable.
"LIBO Rate" means, with respect to any LIBO Rate
Loan for any Interest Period, the rate appearing on
Page 3750 of the Telerate Service (or on any successor or
substitute page of such Service, or any successor to or
substitute for such Service, providing rate quotations
comparable to those currently provided on such page of such
Service, as determined by the Administrative Agent from time
to time for purposes of providing quotations of interest
rates applicable to Dollar deposits in the London interbank
market) at approximately 11:00 a.m., London time, two
Business Days prior to the commencement of such Interest
Period, as the rate for dollar deposits with a maturity
comparable to such Interest Period. In the event that such
rate is not available at such time for any reason, then the
"LIBO Rate" with respect to such LIBO Rate Loan for such
Interest Period shall be the rate at which Dollar deposits
of $5,000,000 and for a maturity comparable to such Interest
Period are offered by the principal London office of the
Administrative Agent in immediately available funds in the
London interbank market at approximately 11:00 a.m., London
time, two Business Days prior to the commencement of such
Interest Period.
"LIBO Rate Loan" means any Loan for which interest
is determined, in accordance with the provisions hereof, at
the Applicable LIBO Rate.
"LIBOR Office" means, for any Lender, the LIBOR
Office set forth for such Lender on the signature pages
hereof or as otherwise notified in writing to the
Administrative Agent and the Borrowers, unless such Lender
shall designate a different LIBOR Office by notice in
writing to the Administrative Agent and the Borrowers.
"Lien" means with respect to any asset, (a) a
mortgage, deed of trust, lien, pledge, encumbrance, charge
or security interest in or on such asset, (b) the interest
of a vendor or a lessor under any conditional sale
agreement, capital lease or title retention agreement
relating to such asset, (c) in the case of securities, any
purchase option, call or similar right of a third party with
respect to such securities and (d) other encumbrances of any
kind, including, without limitation, production payment
obligations.
"Loans" means the Revolving Loans and the Term
Loan.
"Loan Documents" means this Agreement, the
Guarantee Agreements, any promissory note issued pursuant to
Section 2.04(e) and all other agreements, certificates and
instruments now or hereafter entered into in connection
therewith or in furtherance thereof, in each case as amended
and modified from time to time.
"Margin Stock" has the meaning assigned to such
term in Regulation U.
"Material Adverse Effect" means (a) a materially
adverse effect on the business, assets, operations,
prospects or condition, financial or otherwise, of a
Borrower and its Restricted Entities taken as a whole, or a
Guarantor (other than IGL), (b) material impairment of the
ability of a Borrower and its Restricted Entities or a
Guarantor (other than IGL) to perform any of its obligations
under any Loan Document to which it is or will be a party or
(c) material impairment of the rights of or benefits
available to the Lenders under any Loan Document.
"Merger" has the meaning assigned to such term in
the preamble to this Agreement.
"Multiemployer Plan" means a multiemployer plan as
defined in Section 4001(a)(3) of ERISA to which a Borrower
or Restricted Entity, or any ERISA Affiliate thereof, 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.
"New Circle C Revolving Tranche" has the meaning
assigned to such term in the preamble to this Agreement.
"New Circle C Term Tranche" has the meaning
assigned to such term in the preamble to this Agreement.
"New FMPOC Revolving Tranche" has the meaning
assigned to such term in the preamble to this Agreement.
"Non-Excluded Taxes" has the meaning assigned to
such term in Section 2.17(a).
"Nonrestricted Subsidiary" means (i) any of the
Subsidiaries listed on Schedule III hereto as a
Nonrestricted Subsidiary, (ii) any Subsidiary of any
Nonrestricted Subsidiary, (iii) any surviving Person (other
than any Borrower or Restricted Entity) into which any of
such Persons referred to in clause (i) or (ii) is merged or
consolidated, subject to Section 5.02(c), and (iv) any
Subsidiary organized after the Closing Date for the purpose
of acquiring the stock or other ownership interests or
assets of another Person or for start-up ventures or
development programs or activities and designated as a
Nonrestricted Subsidiary by such Borrower as of the time of
its organization. By written notice to the Administrative
Agent, a Borrower or Restricted Entity may (x) declare any
Nonrestricted Subsidiary to be a Restricted Entity and such
former Nonrestricted Subsidiary shall thereafter be deemed
to be a Restricted Entity for all purposes of this Agreement
or (y) at any time other than when a Default or Event of
Default has occurred and is continuing or would exist after
giving effect to such declaration, in any fiscal year,
declare one or more Restricted Entities, the interest of
such Borrower or Restricted Entity in all of which has an
equity value or loan investment of less than $500,000 in the
aggregate, to be a Nonrestricted Subsidiary and any such
former Restricted Entity shall thereafter be deemed to be a
Nonrestricted Subsidiary for all purposes of this Agreement.
"Operating Lease" means any lease other than a
lease giving rise to a Capitalized Lease Obligation.
"Other Taxes" has the meaning assigned to such
term in Section 2.17(b).
"Participants" has the meaning assigned such term
in Section 10.03(b).
"PBGC" means the Pension Benefit Guaranty
Corporation referred to and defined in ERISA.
"Permitted Investments" means customary portfolio
cash management investments made pursuant to prudent cash
management practices.
"Person" means any natural person, corporation,
limited liability company, partnership, joint venture,
trust, incorporated or unincorporated association, joint
stock company or government (or an agency or political
subdivision thereof).
"Plan" means any employee pension benefit plan
(other than a Multiemployer Plan) which is subject to the
provisions of Title IV of ERISA or Section 412 of the Code
and in respect of which a Borrower or Restricted Entity, or
any ERISA Affiliate thereof, is (or, if such plan were
terminated, would under Section 4069 of ERISA be deemed to
be) an "employer" as defined in Section 3(5) of ERISA.
"Properties" means the properties owned, leased or
operated by a Borrower or Restricted Entity, or any
Subsidiary thereof.
"Purchasing Lender" has the meaning assigned to
such term in Section 10.03(c).
"Real Estate Business" means the ownership,
operation, development or acquisition of, or other like
involvement in, real estate and improvements thereon.
"Reference Rate Loan" means any Loan for which
interest is determined, in accordance with the provisions
hereof, at the Applicable Reference Rate.
"Register" has the meaning assigned to such term
in Section 10.03(d).
"Regulation D" means Regulation D of the Board as
from time to time in effect and all official rulings and
interpretations thereunder or thereof.
"Regulation G" means Regulation G of the Board as
from time to time in effect and all official rulings and
interpretations thereunder or thereof.
"Regulation U" means Regulation U of the Board as
from time to time in effect and all official rulings and
interpretations thereunder or thereof.
"Regulation X" means Regulation X of the Board as
from time to time in effect and all official rulings and
interpretations thereunder or thereof.
"Release" means any spilling, leaking, pumping,
pouring, emitting, emptying, discharging, injecting,
escaping, leaching, dumping, disposing, depositing,
dispersing, emanating or migrating of any Hazardous Material
in, into, onto or through the environment.
"Remedial Action" means (a) "remedial action" as
such term is defined in CERCLA, 42 U.S.C. S 9601(24), and
(b) all other actions required by any Governmental Authority
or voluntarily undertaken to: (i) cleanup, remove, treat,
xxxxx or in any other way address any Hazardous Material in
the environment; (ii) prevent the Release or threat of
Release, or minimize the further Release of any Hazardous
Material so it does not migrate or endanger or threaten to
endanger public health, welfare or the environment; or (iii)
perform studies and investigations in connection with, or as
a precondition to, (i) or (ii) above.
"Required Lenders" means at any time, subject to
Section 10.07(b), Lenders having Loans, L/C Exposure and
unused Commitments representing more than 66_% of all Loans
outstanding, L/C Exposure and unused Commitments at such
time.
"Responsible Officer" of any corporation means any
executive officer or Financial Officer of such corporation
and any other officer or similar official thereof
responsible for the administration of the obligations of
such corporation in respect of this Agreement.
"Restricted Entities" means FMPO and any
Subsidiary that is not a Nonrestricted Subsidiary.
"Restricted Subsidiaries" means the Restricted
Entities other than FMPO.
"Revolving Credit Borrowing" means a Borrowing
comprised of Revolving Loans.
"Revolving Credit Commitment" means, with respect
to any Lender, its FMPOC Revolving Credit Commitment and
Circle C Revolving Credit Commitment, as applicable.
"Revolving Credit Lender" means any FMPOC
Revolving Credit Lender or Circle C Revolving Credit Lender.
"Revolving Loan" means any revolving loan made
pursuant to Section 2.01.
"SEC" means the Securities and Exchange Commission
or any Governmental Authority succeeding to any or all of
the functions of the SEC.
"Statutory Reserves" means a fraction (expressed
as a decimal), the numerator of which is the number one and
the denominator of which is the number one minus the
aggregate of the maximum reserve percentages (including,
without limitation, any marginal, special, emergency or
supplemental reserves) expressed as a decimal established by
the Board and any other banking authority, domestic or
foreign, to which the Administrative Agent or any Lender
(including any branch, Affiliate, or other funding office
making or holding a Loan) is subject (a) with respect to the
Base CD Rate (as such term is used in the definition of
"Alternate Base Rate"), for new negotiable nonpersonal time
deposits in Dollars of over $100,000 with maturities
approximately equal to the applicable Interest Period, and
(b) with respect to the LIBO Rate, for eurocurrency funding
(currently referred to as "Eurocurrency Liabilities" in
Regulation D of the Board). Such reserve percentages shall
include, without limitation, those imposed under Regulation
D. Statutory Reserves shall be adjusted automatically on
and as of the effective date of any change in any reserve
percentage.
"Subsidiary" means, with respect to any Person, a
corporation at least a majority of whose securities having
ordinary voting power for the election of directors (other
than securities having such power only by reason of the
happening of a contingency) are at the time owned by such
Person and/or one or more other Subsidiaries of such Person
and any partnership (other than joint ventures for which the
intention under the applicable agreements, including
operating agreements, if any, is that such joint ventures be
partnerships solely for purposes of the Code) in which such
Person or a Subsidiary of such Person is a general partner.
"Term Loan" means the term loan made pursuant to
Section 2.01.
"Term Loan Commitment" means, with respect to each
Lender, the commitment of such Lender to make the Term Loan
to Circle C set forth on Schedule II, or in the Commitment
Transfer Supplement pursuant to which such Lender assumed
its Term Loan Commitment, as the same may be permanently
terminated or reduced from time to time pursuant to
Section 2.07 and pursuant to assignments by such Lender
pursuant to Section 10.03. The Term Loan Commitment of each
Lender shall automatically and permanently terminate on the
Term Loan Maturity Date.
"Term Loan Maturity Date" means January 1, 2001.
"Third Party" has the meaning assigned to such
term in Section 5.02(g).
"Tranches" has the meaning specified in the
preamble to this Agreement.
"Transfer Effective Date" has the meaning assigned
to such term in each Commitment Transfer Supplement.
"Transferee" means any Participant or Purchasing
Lender.
"Type", when used in respect of any Loan or
Borrowing, shall refer to the Rate by reference to which
interest on such Loan or on the Loans comprising such
Borrowing is determined. For purposes hereof, the term
"Rate" means the Applicable LIBO Rate or the Applicable
Reference Rate, as applicable.
"Withdrawal Liability" means liability to a
Multiemployer Plan as a result of a complete or partial
withdrawal from such Multiemployer Plan, as such terms are
defined in Part I of Subtitle E of Title IV of ERISA.
SECTION 1.02. Accounting Terms. Except as
otherwise herein specifically provided, each accounting term
used herein shall have the meaning given it under United
States generally accepted accounting principles in effect
from time to time (with such changes thereto as are approved
or concurred in from time to time by the relevant Borrower's
independent public accountants, as applicable) applied on a
basis consistent with those used in preparing the financial
statements referred to in Section 5.01(a) ("GAAP");
provided, however, that each reference in Section 5.02, or
in the definition of any term used in Section 5.02, to GAAP
shall mean generally accepted accounting principles as in
effect on the Effective Date and as applied by the Borrowers
in preparing the financial statements referred to in
Section 3.01(e). In the event any change in GAAP materially
affects any provision of this Agreement, the Lenders and the
Borrowers agree that they shall negotiate in good faith in
order to amend the affected provisions in such a way as will
restore the parties to their respective positions prior to
such change, and until such amendment becomes effective the
Borrowers' compliance with such provisions shall be
determined on the basis of GAAP as in effect immediately
before such change in GAAP became effective.
SECTION 1.03. Section, Article, Exhibit and
Schedule References, etc. Unless otherwise stated, Section,
Article, Exhibit and Schedule references made herein are to
Sections, Articles, Exhibits or Schedules, as the case may
be, of this Agreement. Whenever the context may require,
any pronoun shall include the corresponding masculine,
feminine and neuter forms. The words "include", "includes"
and "including" shall be deemed to be followed by the phrase
"without limitation". Except as otherwise expressly
provided herein, any reference in this Agreement to any Loan
Document shall mean such document as amended, restated,
supplemented or otherwise modified from time to time.
ARTICLE II
The Loans
SECTION 2.01. Commitments. Subject to the terms
and conditions and relying upon the representations and
warranties herein set forth, (a) each Circle C Term Lender
agrees, severally and not jointly, to make a Term Loan to
Circle C on the Effective Date in a principal amount not to
exceed its Term Loan Commitment, (b) each Circle C Revolving
Credit Lender agrees, severally and not jointly, to make
Revolving Loans to Circle C, at any time and from time to
time on or after the date hereof, and until the earlier of
the Circle C Revolving Commitment Maturity Date and the
termination of the Circle C Revolving Credit Commitment of
such Lender in accordance with the terms hereof, in an
aggregate principal amount at any time outstanding that will
not result in such Lender's Circle C Revolving Credit
Exposure exceeding such Lender's Circle C Revolving Credit
Commitment and (c) each FMPOC Revolving Credit Lender
agrees, severally and not jointly, to make Revolving Loans
to FMPOC, at any time and from time to time on or after the
date hereof, and until the earlier of the FMPOC Revolving
Commitment Maturity Date and the termination of the FMPOC
Revolving Credit Commitment of such Lender in accordance
with the terms hereof, in an aggregate principal amount at
any time outstanding that will not result in such Lender's
FMPOC Revolving Credit Exposure exceeding such Lender's
FMPOC Revolving Credit Commitment; provided, however, that,
notwithstanding the foregoing, the sum of the FMPOC L/C
Exposure and the Circle C L/C Exposure shall not exceed
$7,500,000, in the aggregate, at any time. A Lender's
aggregate Commitments hereunder shall be made ratably among
the Tranches based on the aggregate amount of all the
Lenders' Commitments under each such Tranche on the
Effective Date. Within the limits set forth in clauses (b)
and (c) of the second preceding sentence and subject to the
conditions and limitations set forth herein, the Borrowers
may borrow, pay or repay and reborrow Revolving Loans, as
applicable. Amounts paid or prepaid in respect of the Term
Loan may not be reborrowed.
SECTION 2.02. Loans. (a) Each Loan shall be
made as part of a Borrowing consisting of Loans to the
relevant Borrower made by the Lenders ratably in accordance
with their respective Term Loan Commitments or Revolving
Credit Commitments, as the case may be; provided, however,
that the failure of any Lender to make a Loan shall not in
itself relieve any other Lender of its obligation to lend
hereunder (it being understood, however, that no Lender
shall be made responsible for the failure of any other
Lender to make any Loan required to be made by such other
Lender). Except for Loans deemed to be made pursuant to
Section 2.02(e), the Loans comprising any Borrowing shall be
in an aggregate principal amount which is (i) an integral
multiple of $1,000,000 or (ii) equal to the remaining
available balance of the applicable Commitments.
(b) Each Loan shall be either a Reference Rate
Loan or a LIBO Rate Loan as the relevant Borrower may
request pursuant to Section 2.03. Subject to the provisions
of Sections 2.03 and 2.09, Loans of more than one Type may
be outstanding at the same time.
(c) Each Lender shall make its portion, as
determined under Section 2.14, of each Loan hereunder on the
proposed date thereof by paying the amount required to the
Administrative Agent in New York, New York by wire transfer
in immediately available funds not later than 2:00 p.m., New
York City time, and the Administrative Agent shall by
3:00 p.m., New York City time, credit the amounts so
received to the general deposit account of the relevant
Borrower with the Administrative Agent or, if Loans shall
not be made on such date because any condition precedent to
a Borrowing herein specified is not met, return the amounts
so received to the respective Lenders. Unless the
Administrative Agent shall have received notice from a
Lender prior to the date of any Borrowing that such Lender
will not make available to the Administrative Agent such
Lender's portion of such Borrowing, the Administrative Agent
may assume that such Lender has made such portion available
to the Administrative Agent on the date of such Borrowing in
accordance with this paragraph (c) and the Administrative
Agent may, in reliance upon such assumption, make available
to the relevant Borrower on such date a corresponding
amount. If the Administrative Agent shall have so made
funds available, then to the extent that such Lender shall
not have made such portion available to the Administrative
Agent, such Lender and such Borrower severally agree to
repay without duplication 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 such Borrower until the date such amount
is repaid to the Administrative Agent at an interest rate
equal to (i) in the case of such Borrower, the interest rate
applicable at the time to the Loans comprising such
Borrowing and (ii) in the case of such Lender, a rate
determined by the Administrative Agent to represent its cost
of overnight or short-term funds (which determination shall
be conclusive absent manifest error). If such Lender shall
repay to the Administrative Agent such corresponding amount,
such amount shall constitute such Lender's Loan for purposes
of this Agreement.
(d) Notwithstanding any other provision of this
Agreement, no Borrower shall be entitled to request any
Revolving Credit Borrowing or Term Loan if the Interest
Period requested with respect thereto would end after the
Circle C Revolving Commitment Maturity Date, the FMPOC
Revolving Commitment Maturity Date or the Term Loan Maturity
Date, as applicable.
(e) If an Issuing Bank makes an L/C Disbursement
in respect of a Letter of Credit and shall not have received
from the applicable Borrower the payment required to be made
by such Borrower pursuant to Section 2.18(e) within the time
specified in such Section, such Issuing Bank will promptly
notify the Administrative Agent of the L/C Disbursement and
the Administrative Agent will promptly notify each Revolving
Credit Lender of such L/C Disbursement and its Applicable
Percentage thereof. Each Revolving Credit Lender shall pay
by wire transfer in immediately available funds to the
Administrative Agent not later than 3:00 p.m., New York City
time, on such date (or, if such Revolving Credit Lender
shall have received such notice later than 1:00 p.m.,
New York City time, on any day, not later than 10:00 a.m.,
New York City time, on the immediately following Business
Day), an amount equal to such Lender's Applicable Percentage
of such L/C Disbursement (it being understood that such
amount shall be deemed to constitute a Reference Rate Loan
of such Lender to such Borrower and such payment shall be
deemed to have reduced the FMPOC L/C Exposure or Circle C
L/C Exposure, as applicable, by the amount of such payment),
and the Administrative Agent will promptly pay to such
Issuing Bank any amounts received by it from the Revolving
Credit Lenders. The Administrative Agent will promptly pay
to such Issuing Bank any amounts received by it from such
Borrower pursuant to Section 2.18(e) prior to the time any
Revolving Credit Lender makes any payment pursuant to this
Section 2.02(e); any such amounts received by the
Administrative Agent thereafter will be promptly remitted by
the Administrative Agent to the Revolving Credit Lenders
that shall have made such payments and to such Issuing Bank,
as their interests may appear. If any Revolving Credit
Lender shall not have made its Applicable Percentage of such
L/C Disbursement available to the Administrative Agent as
provided above, such Lender and such Borrower, severally and
not jointly, agree to pay interest on such amount, for each
day from and including the date such amount is required to
be paid in accordance with this paragraph to but excluding
the date such amount is paid, to the Administrative Agent at
(i) in the case of such Borrower, a rate per annum equal to
the interest rate applicable for Reference Rate Loans and
(ii) in the case of such Lender, for the first such day, the
Federal Funds Effective Rate, and for each day thereafter,
the Alternate Base Rate.
(f) Notwithstanding any provision to the contrary
in this Agreement, a Borrower shall not request any LIBO
Rate Loan which, if made, would result in more than 10
separate LIBO Rate Loans of any Lender to such Borrower
under a single Tranche. For purposes of the foregoing,
Loans having different Interest Periods, regardless of
whether they commence on the same date, shall be considered
part of separate Borrowings.
SECTION 2.03. Notice of Loans. (a) A Borrower
shall request a Borrowing (other than a deemed Borrowing
pursuant to Section 2.02(e), as to which this Section 2.03
shall not apply) by giving the Administrative Agent
telephonic (promptly confirmed in writing), written,
telecopy or telex notice in the form of Exhibit C with
respect to each Loan (i) in the case of a LIBO Rate Loan,
not later than 10:30 a.m., New York City time, three
Business Days before a proposed Borrowing, and (ii) in the
case of a Reference Rate Loan, not later than 10:30 a.m.,
New York City time, on the date of a proposed Borrowing.
Such notice shall be irrevocable (except that in the case of
a LIBO Rate Loan, such Borrower may, subject to
Section 2.13, revoke such notice by giving written or telex
notice thereof to the Administrative Agent not later than
10:30 a.m., New York City time, two Business Days before
such proposed Borrowing) and shall in each case refer to
this Agreement and specify (1) whether the Loan then being
requested is to be a Reference Rate Loan or LIBO Rate Loan,
(2) the date of such Loan (which shall be a Business Day)
and amount thereof, and (3) if such Loan is to be a LIBO
Rate Loan, the Interest Period or Interest Periods (which
shall not end after the Maturity Date) with respect thereto.
If no election as to the Type of Loan is specified in any
such notice by such Borrower, such Loan shall be a Reference
Rate Loan. If no Interest Period with respect to any LIBO
Rate Loan is specified in any such notice by such Borrower,
then such Borrower shall be deemed to have selected an
Interest Period of one month's duration.
(b) A Borrower may continue or convert all or any
part of any of its Loans as or into a Loan or Loans of the
same or a different Type in accordance with Section 2.10 and
subject to the limitations set forth herein. If such
Borrower shall not have delivered a Borrowing notice in
accordance with this Section 2.03 prior to the end of the
Interest Period then in effect for any Loan requesting that
such Loan be converted or continued as permitted hereby,
then such Borrower shall (unless such Borrower has notified
the Administrative Agent, not less than three Business Days
prior to the end of such Interest Period, that such Loan is
to be repaid at the end of such Interest Period) be deemed
to have delivered a Borrowing notice pursuant to this
Section 2.03 requesting that such Loan be converted into or
continued as a Reference Rate Loan of equivalent amount.
SECTION 2.04. Repayment of Loans; Evidence of
Debt. (a) Each of the Borrowers hereby unconditionally
agrees to pay to the Administrative Agent for the account of
each applicable Lender (i) in the case of Circle C, the then
unpaid principal amount of each Term Loan in accordance with
the terms of this Agreement and (ii) the then unpaid
principal amount of each Revolving Loan to such Borrower in
accordance with the terms of this Agreement.
(b) Each Lender shall maintain in accordance with
its usual practice an account or accounts evidencing the
indebtedness of each Borrower to such Lender resulting from
each Loan made by such Lender from time to time, including
the amounts of principal and interest payable and paid to
such Lender from time to time under this Agreement.
(c) The Administrative Agent shall maintain
accounts for (i) the Type of each Loan made and the Interest
Period applicable thereto, (ii) the amount of any principal
or interest due and payable or to become due and payable
from each Borrower to the relevant Lenders hereunder and
(iii) the amount of any sum received by the Administrative
Agent hereunder from each Borrower and each Lender's share
thereof.
(d) The entries made in the accounts maintained
pursuant to paragraphs (b) and (c) of this Section 2.04
shall be prima facie evidence of the existence and amounts
of the obligations therein recorded; provided, however, that
the failure of any Lender or the Administrative Agent to
maintain such accounts or any error therein shall not in any
manner affect the obligations of the Borrowers to repay the
Loans in accordance with the terms of this Agreement.
(e) Any Lender may request that any Loans made by
it be evidenced by a promissory note. In such event, the
relevant Borrower shall prepare, execute and deliver to such
Lender a promissory note payable to the order of such Lender
(or, if requested by such Lender, to such Lender and its
registered assigns) and in a form approved by the
Administrative Agent. Thereafter, the Loans of each
Borrower evidenced by such promissory note and interest
thereon shall at all times (including after assignment
pursuant to Section 10.03) be represented by one or more
promissory notes of such Borrower in such form payable to
the order of the payee named therein (of if such promissory
note is a registered note, to such payee and its registered
assigns).
SECTION 2.05. Interest on Loans. (a) Subject to
the provisions of Section 2.08, each Reference Rate Loan
shall bear interest at a rate per annum (computed on the
basis of the actual number of days elapsed over a year of
365 or 366 days, as the case may be, when determined by
reference to the Prime Rate, and over a year of 360 days at
all other times), equal to the Applicable Reference Rate.
(b) Subject to the provisions of Section 2.08,
each LIBO Rate Loan shall bear interest at a rate per annum
(computed on the basis of the actual number of days elapsed
over a year of 360 days) equal to the Applicable LIBO Rate
for the Interest Period in effect for such Loan; provided,
however, upon the date of the consummation of the Merger,
the Applicable LIBO Rate for all LIBO Rate Loans hereunder
(including any LIBO Rate Loans outstanding as of such date)
shall be calculated by reference to the spread over the
London Interbank Offered Rate (as defined in the IGL Credit
Facility) payable (or to be payable) by IGL for the
applicable loans made thereunder as provided in Schedule I;
provided that the Administrative Agent shall promptly notify
the Borrowers, upon receipt of notification from IGL, of any
change in the spread to be used in calculating the
Applicable LIBO Rate and any such change shall not take
effect in respect of this Agreement until the Borrowers are
notified by the Administrative Agent of such change.
(c) Interest on each Loan shall be payable on
each applicable Interest Payment Date. The Applicable
Reference Rate and the Applicable LIBO Rate shall be
determined by the Administrative Agent, and such
determination shall be conclusive absent manifest error.
The Administrative Agent shall promptly advise each relevant
Borrower and Lender of such determination.
SECTION 2.06. Fees. (a) The relevant Borrower
shall pay each Lender, through the Administrative Agent, on
the last Business Day of each March, June, September and
December, and on the date on which the portion of the
Commitment of such Lender applicable to the Borrowings of
each such Borrower shall be terminated as provided herein
(the "Commitment Termination Date"), in immediately
available funds, a commitment fee (a "Commitment Fee") equal
to the Commitment Fee Percentage set forth in Schedule I on
the average daily unused amount (treating L/C Exposure as
usage of the New FMPOC Revolving Tranche or the New Circle C
Revolving Tranche, as applicable) of the Commitments of such
Lender, in each case during the quarter ending on such date
(or shorter period commencing with the earlier of the
Closing Date and the Effective Date or ending with the
Commitment Termination Date); provided that, upon the
consummation of the Merger, the Administrative Agent shall
promptly notify the Borrowers, upon receipt of notification
from IGL, of any change in the facility fee percentage under
the IGL Credit Facility to be used in calculating the
Commitment Fee Percentage hereunder and any such change
shall not take effect in respect of this Agreement until the
Borrowers are notified by the Administrative Agent of such
change.
(b) All Commitment Fees under this Section 2.06
shall be computed on the basis of the actual number of days
elapsed in a year of 365 or 366 days, as the case may be.
The Commitment Fees due to each Lender shall cease to accrue
on the earlier of the Maturity Date and the termination of
the Commitment of such Lender pursuant to Section 2.07.
(c) The Borrowers agree, on a joint and several
basis, to pay to the Administrative Agent, for its own
account, on the Effective Date and on each anniversary
thereof, an annual administration fee (the "Administrative
Fee") as agreed between the Borrowers and the Administrative
Agent in the fee letter dated the date hereof, between
Chase, FMPOC and Circle C.
(d) FMPOC agrees to pay (i) each FMPOC Revolving
Credit Lender, through the Administrative Agent, a fee (an
"FMPOC L/C Participation Fee") calculated on such FMPOC
Revolving Credit Lender's Applicable Percentage of the
average daily aggregate FMPOC L/C Exposure (excluding the
portion thereof attributable to the applicable unreimbursed
L/C Disbursements) at the L/C Participation Fee Percentage
set forth in Schedule I during the period from and including
the earlier of the Closing Date and the Effective Date to
but excluding the later of the FMPOC Revolving Commitment
Maturity Date or the date on which all FMPOC Letters of
Credit have been canceled or have expired) and (ii) in
connection with the issuance, amendment or transfer of any
FMPOC Letter of Credit or any related L/C Disbursement, such
Issuing Bank's customary documentary and processing charges
(collectively, the "Issuing Bank Fees"); provided that the
Administrative Agent shall promptly notify the Borrowers,
upon receipt of notification from IGL, of any change in the
letter of credit fee under the IGL Credit Facility to be
used in calculating the L/C Participation Fee Percentage
hereunder and any such change shall not take effect in
respect of this Agreement until the Borrowers are notified
by the Administrative Agent of such change. Circle C agrees
to pay (i) each Circle C Revolving Credit Lender, through
the Administrative Agent, a fee (a "Circle C L/C
Participation Fee" and, together with the FMPOC L/C
Participation Fees, the "L/C Participation Fees") calculated
on such Circle C Revolving Credit Lender's Applicable
Percentage of the average daily aggregate Circle C L/C
Exposure (excluding the portion thereof attributable to the
applicable unreimbursed L/C Disbursements) at the L/C
Participation Fee Percentage set forth in Schedule I during
the period from and including the earlier of the Closing
Date and the Effective Date to but excluding the later of
the Circle C Revolving Commitment Maturity Date or the date
on which all Circle C Letters of Credit have been canceled
or have expired) and (ii) in connection with the issuance,
amendment or transfer of any Circle C Letter of Credit or
any related L/C Disbursement, the Issuing Bank Fees. L/C
Participation Fees accrued through and including the last
day of March, June, September and December of each year
shall be payable on the third Business Day following such
last day, commencing on the earlier of the Closing Date and
Effective Date; provided that all such fees shall be payable
on the FMPOC Revolving Commitment Maturity Date or the
Circle C Revolving Commitment Maturity Date, as applicable,
and any such fees occurring after such date shall be payable
on demand. Any other fees payable to an Issuing Bank
pursuant to this paragraph shall be payable within 10 days
after demand. All L/C Participation Fees and Issuing Bank
Fees shall be computed on the basis of the actual number of
days elapsed in a year of 360 days.
(e) All such Fees shall be paid on the dates due,
in immediately available funds, to the Administrative Agent
for distribution, if and as appropriate, among the Lenders
except that the Issuing Bank Fees shall be paid directly to
the applicable Issuing Bank. Once paid, all such Fees shall
be fully earned and non-refundable under any and all
circumstances.
SECTION 2.07. Maturity and Reduction of
Commitments. (a) The Term Loan Commitments shall
automatically terminate at 5:00 p.m., New York City time, on
the Effective Date. The FMPOC Revolving Credit Commitment
and the FMPOC L/C Commitment shall automatically terminate
on the FMPOC Revolving Commitment Maturity Date. The
Circle C Revolving Credit Commitment and the Circle C L/C
Commitment shall automatically terminate on the Circle C
Revolving Commitment Maturity Date. Notwithstanding the
foregoing, all the Commitments shall automatically terminate
at 5:00 p.m., New York City time, on January 31, 1998, if
the conditions precedent set forth in Article IV shall not
have occurred by such time.
(b) Upon at least five days' prior written,
telecopied or telex notice to the Administrative Agent (a
copy of which notice shall be promptly delivered by the
Administrative Agent to each Guarantor), a Borrower may
without penalty at any time in whole permanently terminate,
or from time to time permanently reduce, the Term Loan
Commitment (in the case of Circle C) or its Revolving Credit
Commitments, in each case ratably among the Lenders in
accordance with the amounts of their respective Commitments
in respect of the related Tranche; provided, however, that
each partial reduction of the Commitments (other than a
reduction pursuant to Section 2.07(c)) shall be in a minimum
principal amount of $1,000,000 and an integral multiple of
$1,000,000; provided further, that the Commitments under any
of the Tranches may not be reduced to an amount which is
less than the aggregate principal amount of all Loans under
such Tranche outstanding after such reduction. Such
Borrower shall pay to the Administrative Agent for the
account of the Lenders, on the date of each termination or
reduction, the Commitment Fees on the amount of the
Commitments so terminated or reduced accrued to but
excluding the date of such termination or reduction.
(c) (i) On the dates set forth below or, if any
such date is not a Business Day, on the next succeeding
Business Day, the aggregate amount of the FMPOC Revolving
Credit Commitments, Circle C Revolving Credit Commitments
and the outstanding Term Loan shall be automatically and
permanently reduced, ratably among the Lenders in accordance
with the amounts of their respective FMPOC Revolving Credit
Commitments and Circle C Revolving Credit Commitments and
their respective Applicable Percentage of the Term Loan
outstanding at such time, to the aggregate amount set forth
below opposite such date (subject to Section 2.07(b)):
Date Amount
January 1, 1999 $35,000,000
January 1, 2000 15,000,000
January 0, 0000 -0-
(xx) Xx or before the 15th Business Day preceding
each of the dates set forth above in this paragraph (c)(i),
the Borrowers shall notify the Administrative Agent as to
the amount by which the amount of the FMPOC Revolving Credit
Commitments, the Circle C Revolving Credit Commitments and
the outstanding Term Loan shall be reduced pursuant to this
Section 2.07(c).
(iii) To the extent that, after giving effect to
the aforementioned reduction, the Aggregate FMPOC Revolving
Credit Exposure exceeds the aggregate FMPOC Revolving Credit
Commitments, FMPOC shall, on the date of such reduction,
repay Revolving Credit Borrowings and/or L/C Disbursements
under the New FMPOC Revolving Tranche to the Administrative
Agent or terminate Letters of Credit issued by FMPOC under
the New FMPOC Revolving Tranche, as the case may be, in an
aggregate amount sufficient to eliminate such excess, for
the benefit of the FMPOC Revolving Credit Lenders, together
with accrued and unpaid interest on the principal amount to
be repaid to but excluding the date of such payment.
(iv) To the extent that, after giving effect to
the aforementioned reduction, the Aggregate Circle C
Revolving Credit Exposure exceeds the aggregate Circle C
Revolving Credit Commitments, Circle C shall, on the date of
such reduction, repay Revolving Credit Borrowings and/or L/C
Disbursements under the New Circle C Revolving Tranche to
the Administrative Agent or terminate Letters of Credit
issued by Circle C under the New Circle C Revolving Tranche,
as the case may be, in an amount sufficient to eliminate
such excess, for the benefit of the Circle C Revolving
Credit Lenders, together with accrued and unpaid interest on
the principal amount to be repaid to but excluding the date
of such repayment.
(v) To the extent that the Term Loan shall be
reduced as part of the aforementioned reduction, Circle C
shall, on the date of such reduction, repay the Term Loan in
an amount equal to the principal amount by which the Term
Loan is reduced pursuant to paragraph (c)(i) above, for the
account of the Circle C Term Lenders, together with the
accrued and unpaid interest on the principal amount to be
repaid to but excluding the date of such repayment.
SECTION 2.08. Interest on Overdue Amounts;
Alternative Rate of Interest. (a) If a Borrower shall
default in the payment of the principal of or interest on
any Loan or any other amount becoming due hereunder or under
any other Loan Document, by acceleration or otherwise, such
Borrower shall on demand from time to time pay interest, to
the extent permitted by law, on such defaulted amount up to
the date of actual payment (after as well as before
judgment):
(i) in the case of the payment of principal of or
interest on a LIBO Rate Loan, at a rate 2% per annum
above the rate which would otherwise be payable under
Section 2.05(b) until the last date of the Interest
Period then in effect with respect to such Loan and
thereafter as provided in clause (ii) below; and
(ii) in the case of the payment of principal of or
interest on a Reference Rate Loan or any other amount
payable hereunder (other than principal of or interest
on any LIBO Rate Loan to the extent referred to in
clause (i) above), at a rate 2% per annum above the
Applicable Reference Rate.
(b) In the event, and on each occasion, that on
the day two Business Days prior to the commencement of any
Interest Period for a LIBO Rate Loan the Administrative
Agent shall have determined (which determination shall be
conclusive and binding upon the Borrowers absent manifest
error) that (i) Dollar deposits in the requested principal
amount of such LIBO Rate Loan are not generally available in
the London interbank market, (ii) the rates at which Dollar
deposits are being offered will not adequately and fairly
reflect the cost to any Lender of making or maintaining such
LIBO Rate Loan during such Interest Period or
(iii) reasonable means do not exist for ascertaining the
Applicable LIBO Rate, the Administrative Agent shall as soon
as practicable thereafter give written, telecopied or telex
notice of such determination to the Borrowers and the other
Lenders, and any request by a Borrower for the making of a
LIBO Rate Loan pursuant to Section 2.03 or 2.10 shall, until
the Administrative Agent shall have advised such Borrower
and the Lenders that the circumstances giving rise to such
notice no longer exist, be deemed to be a request for a
Reference Rate Loan; provided, however, that if the
Administrative Agent makes the determination specified in
(ii) above, at the option of such Borrower such request
shall be deemed to be a request for a Reference Rate Loan
only from such Lender referred to in (ii) above; provided
further, however, that such option shall not be available to
such Borrower if the Administrative Agent makes the
determination specified in (ii) above with respect to three
or more Lenders. Each determination of the Administrative
Agent hereunder shall be conclusive absent manifest error.
SECTION 2.09. Prepayment of Loans. (a) Each
Borrower shall have the right at any time and from time to
time to prepay any of its Borrowings, in whole or in part,
subject to the requirements of Section 2.13 but otherwise
without premium or penalty, upon prior written or telex
notice to the Administrative Agent by 10:30 a.m., New York
City time (a copy of which notice shall be promptly
delivered by the Administrative Agent to each Guarantor), on
the date of such prepayment; provided, however, that each
such partial prepayment shall be in a minimum amount of
$1,000,000 and an integral multiple of $1,000,000.
(b) In the event of any termination of the entire
Commitment under a Tranche, the relevant Borrower shall
repay or prepay all its outstanding Loans under such Tranche
on the date of such termination. On the date of any partial
reduction of the Commitments in respect of any Tranche
pursuant to Section 2.07, the relevant Borrower shall pay or
prepay so much of its Loans in respect of such Tranche as
shall be necessary in order that the aggregate principal
amount of the Loans (after giving effect to any other
prepayment of Loans on such date) outstanding with respect
to such Tranche will not exceed the Commitments under such
Tranche immediately following such reduction.
(c) All prepayments under this Section 2.09 shall
be subject to Section 2.13. Each notice of prepayment
delivered pursuant to paragraph (a) above shall specify the
prepayment date and the principal amount of each Loan (or
portion thereof) to be prepaid, shall be irrevocable and
shall commit the relevant Borrower to prepay such Loan by
the amount stated therein on the date stated therein. All
prepayments shall be applied first to Reference Rate Loans
and then to LIBO Rate Loans and shall be accompanied by
accrued interest on the principal amount being prepaid to
the date of prepayment. Any amounts prepaid may be
reborrowed to the extent permitted by the terms of this
Agreement.
SECTION 2.10. Continuation and Conversion of
Loans. Each Borrower shall have the right, subject to the
provisions of Section 2.08, (i) on three Business Days'
prior irrevocable notice by such Borrower to the
Administrative Agent, to continue or convert any Type of
Loans as or into LIBO Rate Loans, or (ii) with irrevocable
notice by such Borrower to the Administrative Agent by
10:30 a.m. on the date of such proposed continuation or
conversion, to continue or convert any Type of Loans as or
into Reference Rate Loans, in each case subject to the
following further conditions:
(a) each continuation or conversion shall be made
on a pro rata basis as to each Type of Loan of such Borrower
to be continued or converted among the Lenders in accordance
with the respective amounts of their respective Commitments
and the notice given to the Administrative Agent by such
Borrower shall specify the aggregate principal amount of
Loans to be continued or converted;
(b) in the case of a continuation or conversion of
less than all the Loans of a Tranche, the Loans continued or
converted under such Tranche shall be in a minimum aggregate
principal amount of $1,000,000 and an integral multiple of
$1,000,000;
(c) accrued interest on each Loan (or portion
thereof) being continued or converted shall be paid by such
Borrower at the time of continuation or conversion;
(d) the Interest Period with respect to any Loan
made in respect of a continuation or conversion thereof
shall commence on the date of the continuation or
conversion;
(e) any portion of a Loan maturing or required to
be prepaid in less than one month may not be continued as or
converted into a LIBO Rate Loan;
(f) a LIBO Rate Loan may be continued or converted
on the last day of the applicable Interest Period and,
subject to Section 2.13, on any other day;
(g) no Loan (or portion thereof) may be continued
as or converted into a LIBO Rate Loan if, after such
continuation or conversion, an aggregate of more than 10
separate LIBO Rate Loans of any Lender would result under a
single Tranche, determined as set forth in Section 2.02(f);
(h) no Loan shall be continued or converted if
such Loan by any Lender would be greater than the amount by
which its Commitment under the related Tranche exceeds the
amount of its other Loans under such Tranche at the time
outstanding or if such Loan would not comply with the other
provisions of this Agreement; and
(i) any portion of a LIBO Rate Loan which cannot
be converted into or continued as a LIBO Rate Loan by reason
of clause (e) or (g) above shall be automatically converted
at the end of the Interest Period in effect for such Loan
into a Reference Rate Loan.
The Administrative Agent shall communicate the information
contained in each irrevocable notice delivered by any
Borrower pursuant to this Section 2.10 to the other Lenders
promptly after its receipt of the same.
The Interest Period applicable to any LIBO Rate
Loan resulting from a continuation or conversion shall be
specified by the relevant Borrower in the irrevocable notice
of continuation or conversion delivered pursuant to this
Section 2.10; provided, however, that if no such Interest
Period for a LIBO Rate Loan shall be specified, such
Borrower shall be deemed to have selected an Interest Period
of one month's duration.
For purposes of this Section 2.10, notice received
by the Administrative Agent from a Borrower after
10:30 a.m., New York City time, on a Business Day shall be
deemed to be received on the immediately succeeding Business
Day.
SECTION 2.11. Reserve Requirements; Change in
Circumstances. (a) Each Borrower shall pay to each Lender
on the last day of each Interest Period for any LIBO Rate
Loan to such Borrower so long as such Lender may be required
to maintain reserves against eurocurrency funding (currently
referred to as "Eurocurrency Liabilities" in Regulation D of
the Board) (or so long as such Lender may be required to
maintain reserves against any other category of liabilities
which includes deposits by reference to which the interest
rate on any LIBO Rate Loan is determined as provided in this
Agreement or against any category of extensions of credit or
other assets of such Lender which includes any LIBO Rate
Loan) an additional amount (determined by such Lender and
notified to such Borrower), equal to the product of the
following for each affected LIBO Rate Loan for each day
during such Interest Period:
(i) the principal amount of such affected LIBO
Rate Loan outstanding on such day;
(ii) the remainder of (x) the product of Statutory
Reserves on such date times the Applicable LIBO Rate on
such day, minus (y) the Applicable LIBO Rate on such
day; and
(iii) 1/360.
Each Lender shall separately xxxx the relevant Borrower
directly for all amounts claimed pursuant to this
Section 2.11(a).
(b) Notwithstanding any other provision herein,
if after the Effective Date any change in condition or
applicable law or regulation or in the interpretation or
administration thereof (whether or not having the force of
law and including, without limitation, Regulation D of the
Board) by any Governmental Authority charged with the
administration or interpretation thereof shall occur which
shall:
(i) subject any Lender or Issuing Bank (which
shall for the purpose of this Section include any
assignee or lending office of any Lender or Issuing
Bank) to any tax of any kind whatsoever with respect to
its LIBO Rate Loans or other fees or amounts payable
hereunder, as applicable, or change the basis of
taxation of any of the foregoing (other than taxes
(including Non-Excluded Taxes) described in
Section 2.17 and other than any franchise tax or tax or
other similar governmental charges, fees or assessments
based on the overall net income of such Lender or
Issuing Bank by the U.S. Federal government or by any
jurisdiction in which such Lender or Issuing Bank
maintains an office, unless the presence of such office
is solely attributable to the enforcement of any rights
hereunder with respect to an Event of Default);
(ii) impose, modify or deem applicable any reserve,
special deposit or similar requirement against assets
of, deposits with or for the account of or credit
extended by any Lender or Issuing Bank;
(iii) impose on any such Lender, such Issuing Bank
or the London interbank market any other condition
affecting this Agreement or LIBO Rate Loans made by
such Lender or Letters of Credit issued by such Issuing
Bank; or
(iv) impose upon any Lender or Issuing Bank any
other condition with respect to any amount paid or to
be paid by any Lender or Issuing Bank with respect to
its LIBO Rate Loans or Letters of Credit issued
hereunder, respectively, or this Agreement;
and the result of any of the foregoing shall be to increase
the cost to such Lender or Issuing Bank of (x) making or
maintaining any LIBO Rate Loan or (y) issuing or maintaining
any Letter of Credit, respectively, or purchasing or
maintaining a participation therein or to reduce the amount
of any sum received or receivable by such Lender or Issuing
Bank hereunder (whether of principal, interest or otherwise)
or to require such Lender or Issuing Bank to make any
payment in respect of any such Loan or Letter of Credit, as
applicable, in each case by or in an amount which such
Lender or Issuing Bank, in its sole judgment, shall deem
material, then the relevant Borrower shall pay to such
Lender or Issuing Bank, as the case may be, on demand such
an amount or amounts as will compensate such Lender or
Issuing Bank, as the case may be, for such additional costs,
reductions or payments.
(c) If any Lender or Issuing Bank shall have
determined that the applicability of any law, rule,
regulation, agreement or guideline adopted after the
Effective Date regarding capital adequacy, or any change
after the Effective Date in any such law, rule, regulation,
agreement or guideline (whether such law, rule, regulation,
agreement or guideline has been adopted) or in the
interpretation or administration of any of the foregoing by
any Governmental Authority charged with the interpretation
or administration thereof, or compliance by any Lender or
Issuing Bank (or any lending office thereof) or any Lender's
or Issuing Bank's holding company with any request or
directive regarding capital adequacy (whether or not having
the force of law) of any such Governmental Authority made or
issued after the Effective Date, has or would have the
effect of reducing the rate of return on such Lender's or
Issuing Bank's capital or on the capital of such Lender's or
Issuing Bank's holding company, if any, as a consequence of
this Agreement or the Loans made or participations in
Letters of Credit purchased by such Lender pursuant hereto
or the Letters of Credit issued by such Issuing Bank
pursuant hereto to a level below that which such Lender or
Issuing Bank or such Lender's or Issuing Bank's holding
company could have achieved but for such applicability,
adoption, change or compliance (taking into consideration
such Lender's or Issuing Bank's policies and the policies of
such Lender's or Issuing Bank's holding company with respect
to capital adequacy) by an amount deemed by such Lender or
Issuing Bank to be material, then from time to time the
relevant Borrower shall pay to such Lender or Issuing Bank,
as the case may be, such additional amount or amounts as
will compensate such Lender or Issuing Bank or such Lender's
or Issuing Bank's holding company for any such reduction
suffered.
(d) If and on each occasion that a Lender or
Issuing Bank makes a demand for compensation pursuant to
paragraph (a), (b) or (c) above, or under Section 2.17 (it
being understood that a Lender or Issuing Bank may be
reimbursed for any specific amount under only one such
paragraph or Section), the relevant Borrower may, upon at
least three Business Days' prior irrevocable written or
telex notice to such Lender or Issuing Bank, as applicable,
and the Administrative Agent, in whole permanently replace
the Commitment of such Lender or the obligations of such
Issuing Bank hereunder, as applicable; provided that such
notice must be given not later than the 90th day following
the date of a demand for compensation made by such Lender or
Issuing Bank, as applicable; and provided that such Borrower
shall replace such Commitment or obligations, as applicable,
with the Commitment or obligations, as applicable, of a
commercial bank satisfactory to the Administrative Agent.
Such notice from such Borrower shall specify an effective
date for the termination of such Lender's Commitment or such
Issuing Bank's obligations, as applicable, which date shall
not be later than the 180th day after the date such notice
is given. On the effective date of any termination of such
Lender's Commitment or such Issuing Bank's obligations, as
applicable, pursuant to this clause (d), such Borrower shall
pay to the Administrative Agent for the account of such
Lender (A) any Commitment Fees on the amount of such
Lender's Commitment or any L/C Participation Fees on the
obligations of the Lenders hereunder so terminated accrued
to the date of such termination, (B) the principal amount of
any outstanding Loans or L/C Disbursements held by such
Lender or Issuing Bank, as applicable, plus accrued interest
on such principal amount to the date of such termination and
(C) the amount or amounts requested by such Lender or
Issuing Bank pursuant to clause (a), (b) or (c) above or
Section 2.17, as applicable. Such Borrower will remain
liable to such terminated Lender or Issuing Bank for any
loss or expense that such Lender or Issuing Bank may sustain
or incur as a consequence of such Lender's making any LIBO
Rate Loan or such Issuing Bank's issuance of a Letter of
Credit hereunder, as applicable, or any part thereof or the
accrual of any interest on any such Loan or in respect of
any such Letter of Credit, as applicable, in accordance with
the provisions of this Section 2.11(d) as set forth in
Section 2.13. Upon the effective date of termination of any
Lender's Commitments or Issuing Bank's obligations under
this Agreement pursuant to this Section 2.11(d), such Lender
or Issuing Bank, as applicable, shall cease to be a "Lender"
or "Issuing Bank" hereunder, as applicable; provided that no
such termination shall affect (i) any liability or
obligation of the relevant Borrower or any other Lender or
Issuing Bank to such terminated Lender or Issuing Bank which
accrued on or prior to the date of such termination or
(ii) such terminated Lender's or Issuing Bank's rights
hereunder in respect of any such liability or obligation.
(e) A certificate of a Lender or Issuing Bank (or
Transferee) setting forth such amount or amounts as shall be
necessary to compensate such Lender or Issuing Bank (or
Transferee) as specified in paragraph (a), (b) or (c) (and
in the case of paragraph (c), such Lender's or Issuing
Bank's holding company, as applicable) above or
Section 2.17, as the case may be, shall be delivered as soon
as practicable to the relevant Borrower, and in any event
within 90 days of the change giving rise to such amount or
amounts, and shall be conclusive absent manifest error. The
relevant Borrower shall pay each Lender or Issuing Bank the
amount shown as due on any such certificate within 15 days
after its receipt of the same. In preparing such a
certificate, each Lender may employ such assumptions and
allocations of costs and expenses as it shall in good xxxxx
xxxx reasonable. The failure of any Lender or Issuing Bank
(or Transferee) to give the required 90-day notice shall
excuse the relevant Borrower from its obligations to pay
additional amounts pursuant to such Sections incurred for
the period that is 90 days or more prior to the date such
notice was required to be given.
(f) Failure on the part of any Lender or Issuing
Bank to demand compensation for any increased costs or
reduction in amounts received or receivable or reduction in
return on capital within the 90 days required pursuant to
Section 2.11(e) shall not constitute a waiver of such
Lender's or Issuing Bank's right to demand compensation for
any increased costs or reduction in amounts received or
receivable or reduction in return on capital for any period
after the date that is 90 days prior to the date of the
delivery of demand for compensation. The protection of this
Section 2.11 shall be available to each Lender or Issuing
Bank regardless of any possible contention of invalidity or
inapplicability of the law, regulation or condition which
shall have occurred or been imposed. The Borrowers shall
not be required to make any additional payment to any Lender
or Issuing Bank pursuant to Section 2.11(a) or (b) in
respect of any such cost, reduction or payment that could be
avoided by such Lender or Issuing Bank in the exercise of
reasonable diligence, including a change in the lending
office of such Lender or Issuing Bank if possible without
material cost to such Lender. Each of the Lenders and
Issuing Banks agrees that it will promptly notify the
relevant Borrower and the Administrative Agent of any event
of which the responsible account officer shall have
knowledge which would entitle such Lender or Issuing Bank,
as applicable, to any additional payment pursuant to this
Section 2.11. The Borrowers agree to furnish promptly to
the Administrative Agent official receipts evidencing any
payment of any tax.
SECTION 2.12. Change in Legality.
(a) Notwithstanding anything to the contrary herein
contained, if after the Effective Date any change in any law
or regulation or in the interpretation thereof by any
Governmental Authority charged with the administration or
interpretation thereof shall make it unlawful for any Lender
to make or maintain any LIBO Rate Loan or to give effect to
its obligations as contemplated hereby with respect to any
LIBO Rate Loan, then, by written notice to the Borrowers and
to the Administrative Agent, such Lender may:
(i) declare that LIBO Rate Loans will not
thereafter (for the duration of such unlawfulness or
impracticality) be made by such Lender hereunder,
whereupon the Borrowers shall be prohibited from
requesting LIBO Rate Loans from such Lender hereunder
unless such declaration is subsequently withdrawn; and
(ii) require that all outstanding LIBO Rate Loans
made by it be converted to Reference Rate Loans, in
which event (A) all such LIBO Rate Loans shall be
automatically converted to Reference Rate Loans as of
the end of the applicable Interest Period, unless an
earlier conversion date is legally required, (B) all
payments and prepayments of principal which would
otherwise have been applied to repay the converted LIBO
Rate Loans shall instead be applied to repay the
Reference Rate Loans resulting from the conversion of
such LIBO Rate Loans and (C) the Reference Rate Loans
resulting from the conversion of such LIBO Rate Loans
shall be prepayable only at the times the converted
LIBO Rate Loans would have been prepayable,
notwithstanding the provisions of Section 2.09.
(b) Before giving any notice to the Borrowers and
the Administrative Agent pursuant to this Section 2.12, such
Lender shall designate a different LIBOR Office if such
designation will avoid the need for giving such notice and
will not in the judgment of such Lender, be otherwise
disadvantageous to such Lender. For purposes of
Section 2.12(a), a notice to the Borrowers by any Lender
shall be effective on the date of receipt by the Borrowers.
SECTION 2.13. Indemnity. Each Borrower shall
indemnify each Lender against any funding, redeployment or
similar loss or expense which such Lender may sustain or
incur with respect to such Borrower as a consequence of (a)
any event, other than a default by such Lender in the
performance of its obligations hereunder, which results in
(i) such Lender receiving or being deemed to receive any
amount on account of the principal of any LIBO Rate Loan
prior to the end of the Interest Period in effect therefor
(any of the events referred to in this clause (i) being
called a "Breakage Event") or (ii) any Loan to such Borrower
to be made by such Lender not being made after notice of
such Loan shall have been given by such Borrower hereunder
or (b) any default in the making of any payment or
prepayment of any amount required to be made hereunder. In
the case of any Breakage Event, such loss shall include an
amount equal to the excess, as reasonably determined by such
Lender, of (i) its cost of obtaining funds for the Loan
which is the subject of such Breakage Event for the period
from the date of such Breakage Event to the last day of the
Interest Period in effect (or which would have been in
effect) for such Loan over (ii) the amount of interest (as
reasonably determined by such Lender) that would be realized
by such Lender in reemploying the funds so paid, prepaid or
converted or not borrowed, continued or converted by making
a LIBO Rate Loan in such principal amount and with a
maturity comparable to such period. A certificate of any
Lender setting forth any amount or amounts which such Lender
is entitled to receive pursuant to this Section shall be
delivered to the relevant Borrower and shall be conclusive
absent manifest error.
SECTION 2.14. Pro Rata Treatment. Except as
permitted under any of Section 2.08(b), 2.11, 2.12, 2.13 or
2.17, each Borrowing under each Type of Loan, each payment
or prepayment of principal of the Loans, each payment of
interest on the Loans, each other reduction of the principal
or interest outstanding under the Loans, however achieved,
including by setoff by any Person, each payment of Fees and
other amounts accrued for the accounts of the Lenders, each
reduction of the Commitments and each conversion or
continuation of Loans shall be allocated pro rata among the
Lenders in the proportions that their respective Commitments
bear to the aggregate Commitments under the relevant Tranche
(or, if such Commitments shall have expired or been
terminated, in accordance with the respective principal
amounts of their outstanding Loans). Each Lender agrees
that in computing such Lender's portion of any Borrowing to
be made hereunder, the Administrative Agent may, in its
discretion, round each Lender's Applicable Percentage of
such Borrowing to the next higher or lower whole Dollar
amount.
SECTION 2.15. Sharing of Setoffs. Each Lender
agrees that if it shall, through the exercise of a right of
banker's lien, setoff or counterclaim against a Borrower or
pursuant to a secured claim under Section 506 of Title 11 of
the United States Code or other security or interest arising
from, or in lieu of, such secured claim, received by such
Lender under any applicable bankruptcy, insolvency or other
similar law or otherwise, or by any other means obtain
payment (voluntary or involuntary) in respect of any Loan or
L/C Disbursement of such Borrower held by it as a result of
which the unpaid principal portion of the Loans or L/C
Disbursement of such Borrower held by it shall be
proportionately less than the unpaid principal portion of
the Loans and participations in L/C Disbursements of such
Borrower held by any other Lender (other than as permitted
under any of Section 2.08(b), 2.11, 2.12, 2.13 or 2.17), it
shall be deemed to have simultaneously purchased from such
other Lender at face value, and shall promptly pay to such
other Lender the purchase price for, a participation in the
Loans and L/C Exposure, as the case may be, of such Borrower
held by such other Lender, so that the aggregate unpaid
principal amount of the Loans and L/C Exposure of such
Borrower and participation in Loans and L/C Exposure of such
Borrower held by each Lender shall be in the same proportion
to the aggregate unpaid principal amount of all Loans and
L/C Exposure of such Borrower then outstanding as the
principal amount of the Loans and L/C Exposure of such
Borrower held by it prior to such exercise of banker's lien,
setoff or counterclaim was to the principal amount of all
Loans and L/C Exposure of such Borrower outstanding prior to
such exercise of banker's lien, setoff or counterclaim or
other event; provided, however, that if any such purchase or
purchases or adjustments shall be made pursuant to this
Section 2.15 and the payment giving rise thereto shall
thereafter be recovered, such purchase or purchases or
adjustments shall be rescinded to the extent of such
recovery and the purchase price or prices or adjustment
restored without interest. To the fullest extent permitted
by applicable law, each of the Borrowers expressly consents
to the foregoing arrangements and agrees that any Lender
holding a participation in a Loan of such Borrower deemed to
have been so purchased may exercise any and all rights of
banker's lien, setoff or counterclaim with respect to any
and all moneys owing by such Borrower hereunder to such
Lender as fully as if such Lender had made a Loan directly
to such Borrower in the amount of such participation.
SECTION 2.16. Payments. (a) Except as otherwise
provided in this Agreement, all payments and prepayments to
be made by the Borrowers to the Lenders hereunder, whether
on account of Fees, payment of principal or interest on any
Loan or any L/C Disbursement or other amounts at any time
owing hereunder or under any other Loan Document, shall be
made to the Administrative Agent at its office at 000 Xxxx
Xxxxxx, Xxx Xxxx, Xxx Xxxx, for the account of the several
Lenders in immediately available funds. All such payments
(other than Issuing Bank Fees, which shall be paid directly
to the applicable Issuing Bank) shall be made to the
Administrative Agent as aforesaid not later than 10:30 a.m.,
New York City time, on the date due; and funds received
after that hour shall be deemed to have been received by the
Administrative Agent on the following Business Day.
(b) As promptly as possible, but no later than
2:00 p.m., New York City time, on the date of each
Borrowing, each Lender participating in the Loans made on
such date shall pay to the Administrative Agent such
Lender's Applicable Percentage of each such Borrowing plus,
if such payment is received by the Administrative Agent
after 2:00 p.m., New York City time, on the date of such
Borrowing, interest at a rate per annum equal to the rate in
effect on such day, quoted by the Administrative Agent at
its office at 000 Xxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx, for the
overnight "sale" to such Lender of Federal funds. At the
time of, and by virtue of, such payment, such Lender shall
be deemed to have made its Loan in the amount of such
payment. The Administrative Agent agrees to pay any moneys,
including such interest, so paid to it by the lending
Lenders promptly, but no later than 3:00 p.m., New York City
time, on the date of such Borrowing, to the relevant
Borrower in immediately available funds.
(c) If any payment of principal, interest or Fees
or any L/C Disbursement or any other amount payable to the
Lenders hereunder on any Loan or L/C Exposure, as
applicable, shall fall due on a day that is not a Business
Day, then (except in the case of payments of principal of or
interest on LIBO Rate Loans, in which case such payment
shall be made on the next preceding Business Day if the next
succeeding Business Day would fall in the next calendar
month) such due date shall be extended to the next
succeeding Business Day, and interest shall be payable on
principal in respect of such extension.
(d) Unless the Administrative Agent shall have
been notified by a Borrower prior to the date on which any
payment or prepayment is due hereunder (which notice shall
be effective upon receipt) that such Borrower does not
intend to make such payment or prepayment, the
Administrative Agent may assume that such Borrower has made
such payment or prepayment when due and the Administrative
Agent may in reliance upon such assumption (but shall not be
required to) make available to each Lender or Issuing Bank,
as applicable, on such date an amount equal to the portion
of such assumed payment or prepayment such Lender or Issuing
Bank, as applicable, is entitled to hereunder, and, if such
Borrower has not in fact made such payment or prepayment to
the Administrative Agent, such Lender or Issuing Bank, as
applicable, shall, on demand, repay to the Administrative
Agent the amount made available to such Lender or Issuing
Bank, as applicable, together with interest thereon in
respect of each day during the period commencing on the date
such amount was made available to such Lender or Issuing
Bank, as applicable, and ending on (but excluding) the date
such Lender or Issuing Bank, as applicable, repays such
amount to the Administrative Agent, at a rate per annum
equal to the rate, determined by the Administrative Agent to
represent its cost of overnight or short-term funds (which
determination shall be conclusive absent manifest error).
(e) All payments of the principal of or interest
on the Loans or any other amounts to be paid to any Lender,
any Issuing Bank or the Administrative Agent under this
Agreement or any of the other Loan Documents shall be made
in Dollars, without reduction by reason of any currency
exchange expense.
SECTION 2.17. U.S. Taxes. (a) Any and all
payments by the Borrowers hereunder shall be made, in
accordance with Section 2.16, 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 imposed by the United
States or any political subdivision thereof, excluding taxes
imposed on the net income of an Agent or any Lender (or
Transferee) and franchise taxes of an Agent or any Lender
(or Transferee), as applicable, as a result of a connection
between the jurisdiction imposing such taxes and such Agent
or such Lender (or Transferee), as applicable, other than a
connection arising solely from such Agent or such Lender (or
Transferee), as applicable, having executed, delivered,
performed its obligations or received a payment under, or
enforced, this Agreement (all such nonexcluded taxes,
levies, imposts, deductions, charges, withholdings and
liabilities being hereinafter referred to as "Non-Excluded
Taxes"). If a Borrower shall be required by law to deduct
any Non-Excluded Taxes from or in respect of any sum payable
hereunder to the Lenders (or any Transferee) or an Agent,
(i) the sum payable shall be increased by the amount
necessary so that after making all required deductions
(including deductions applicable to additional sums payable
under this Section 2.17) such Lender (or Transferee) or an
Agent (as the case may be) shall receive an amount equal to
the sum it would have received had no such deductions been
made, (ii) such Borrower shall make such deductions and
(iii) such Borrower shall pay the full amount deducted to
the relevant taxing authority or other Governmental
Authority in accordance with applicable law; provided,
however, that no Transferee of any Lender shall be entitled
to receive any greater payment under this Section 2.17 than
such Lender would have been entitled to receive with respect
to the rights assigned, participated or otherwise
transferred unless such assignment, participation or
transfer shall have been made at a time when the
circumstances giving rise to such greater payment did not
exist.
(b) In addition, each Borrower agrees to bear and
to pay to the relevant Governmental Authority in accordance
with applicable law any current or future stamp or
documentary taxes or any other similar excise taxes, charges
or similar levies that arise from any payment made hereunder
or from the execution, delivery, registration or enforcement
of, or otherwise with respect to, this Agreement or any
other Loan Document and any property taxes that arise from
the enforcement of this Agreement or any other Loan Document
("Other Taxes").
(c) The relevant Borrower will indemnify each
Lender (or Transferee) and each Agent for the full amount of
Non-Excluded Taxes and Other Taxes (including Non-Excluded
Taxes or Other Taxes imposed on amounts payable under this
Section 2.17) paid by such Lender (or Transferee) or such
Agent, as the case may be, in respect of a Loan to such
Borrower and any liability (including penalties, interest
and expenses (including reasonable attorney's fees and
expenses)) arising therefrom or with respect thereto. A
certificate as to the amount of such payment or liability
prepared by a Lender or Agent, or the Administrative Agent
on behalf of such Lender or Agent, absent manifest error,
shall be final, conclusive and binding for all purposes.
Such indemnification shall be made within 30 days after the
date such Lender (or Transferee) or such Agent, as the case
may be, makes written demand therefor.
(d) Within 30 days after the date of any payment
of Non-Excluded Taxes or Other Taxes by a Borrower to the
relevant Governmental Authority, such Borrower will furnish
to the Administrative Agent, at its address referred to on
the signature page, the original or a certified copy of a
receipt issued by such Governmental Authority evidencing
payment thereof.
(e) At the time it becomes a party to this
Agreement or a Transferee, each Lender (or Transferee) that
is organized under the laws of a jurisdiction outside the
United States shall (in the case of a Transferee, subject to
the immediately succeeding sentence) deliver to the
Borrowers either a valid and currently effective Internal
Revenue Service Form 1001 or Form 4224 or, in the case of a
Lender (or Transferee) claiming exemption from U.S. Federal
withholding tax under Section 871(h) or 881(c) of the Code
with respect to payments of "portfolio interest", a Form
W-8, or any subsequent version thereof or successors
thereto, (and if such Lender (or Transferee) delivers a Form
W-8, a certificate representing that such Lender (or
Transferee) is not a bank for purposes of Section 881(c) of
the Code, is not a 10-percent shareholder (within the
meaning of Section 871(h)(3)(B) of the Code) of any of the
Borrowers and is not a controlled foreign corporation
related to any of the Borrowers (within the meaning of
Section 864(d)(4) of the Code)), properly completed and duly
executed by such Lender (or Transferee) establishing that
such payment is (i) not subject to United States Federal
withholding tax under the Code because such payment is
effectively connected with the conduct by such Lender (or
Transferee) of a trade or business in the United States or
(ii) totally exempt from (or in case of a Transferee,
entitled to a reduced rate of) United States Federal
withholding tax. Notwithstanding any other provision of
this Section 2.17(e), no Transferee shall be required to
deliver any form pursuant to this Section 2.17(e) that such
Transferee is not legally able to deliver. In addition,
each Lender (or Transferee) shall deliver such forms
promptly upon the obsolescence or invalidity of any form
previously delivered, but only, in such case, to the extent
such Lender (or Transferee) is legally able to do so.
(f) Notwithstanding anything to the contrary
contained in this Section 2.17, the Borrowers shall not be
required to pay any additional amounts to any Lender (or
Transferee) in respect of United States Federal withholding
tax pursuant to paragraph (a) above if the obligation to pay
such additional amounts would not have arisen but for a
failure by such Lender (or Transferee) to comply with the
provisions of paragraph (e) above.
(g) Any Lender (or Transferee) claiming any
additional amounts payable pursuant to this Section 2.17
shall use reasonable efforts (consistent with legal and
regulatory restrictions) to file any certificate or document
requested by any of the Borrowers or to change the
jurisdiction of its applicable lending office if the making
of such a filing or change would avoid the need for or
reduce the amount of any such additional amounts which may
thereafter accrue and would not, in the sole determination
of such Lender, be otherwise disadvantageous to such Lender
(or Transferee).
(h) Without prejudice to the survival of any
other agreement contained herein, the agreements and
obligations contained in this Section 2.17 shall survive the
payment in full of the principal of and interest on all
Loans made hereunder.
(i) Nothing contained in this Section 2.17 shall
require any Lender (or Transferee) or the Administrative
Agent to make available any of its income tax returns (or
any other information that it deems to be confidential or
proprietary).
SECTION 2.18. Letters of Credit. (a) General.
A Borrower may request the issuance of Letters of Credit, in
a form reasonably acceptable to the Administrative Agent and
the applicable Issuing Bank, appropriately completed, for
the account of such Borrower, any Restricted Entity or, upon
the written approval of the Administrative Agent, any of its
Affiliates, at any time and from time to time while the
applicable Revolving Credit Commitments remain in effect,
provided that such Borrower shall be a co-applicant with
respect to each Letter of Credit issued for the account of
any such Restricted Entity or Affiliate. Upon the receipt
of such a request and, subject to the satisfaction of the
following terms and conditions of this Section 2.18, the
applicable Issuing Bank shall issue the requested Letter of
Credit. This Section shall not be construed to impose an
obligation upon an Issuing Bank to issue any Letter of
Credit that is inconsistent with the terms and conditions of
this Agreement.
(b) Notice of Issuance, Amendment, Renewal,
Extension; Certain Conditions. In order to request the
issuance of a Letter of Credit (or to amend, renew or extend
an existing Letter of Credit), a Borrower shall hand deliver
or telecopy to the applicable Issuing Bank and the
Administrative Agent (reasonably in advance of the requested
date of issuance, amendment, renewal or extension) a notice
requesting the issuance of a Letter of Credit, or
identifying the Letter of Credit to be amended, renewed or
extended, the date of issuance, amendment, renewal or
extension, the date on which such Letter of Credit is to
expire (which shall comply with paragraph (c) below), the
amount of such Letter of Credit, the name and address of the
beneficiary thereof and such other information as shall be
necessary to prepare such Letter of Credit. A Letter of
Credit shall be issued, amended, renewed or extended only
if, and upon issuance, amendment, renewal or extension of
each Letter of Credit the relevant Borrower shall be deemed
to represent and warrant that, after giving effect to such
issuance, amendment, renewal or extension (A) in the case of
an FMPOC Letter of Credit, the FMPOC L/C Exposure shall not
exceed $7,500,000 and the Aggregate FMPOC Revolving Credit
Exposure shall not exceed the aggregate FMPOC Revolving
Credit Commitments at such time, (B) in the case of a
Circle C Letter of Credit, the Circle C L/C Exposure shall
not exceed $7,500,000 and the Aggregate Circle C Revolving
Credit Exposure shall not exceed the aggregate Circle C
Revolving Credit Commitments at such time and (C) in the
case of any Letter of Credit, the sum of the FMPOC L/C
Exposure and the Circle C L/C Exposure shall not exceed
$7,500,000.
(c) Expiration Date. Each Letter of Credit shall
expire at the close of business on the earlier of the date
one year after the date of the issuance of such Letter of
Credit and the date that is five Business Days prior to the
FMPOC Revolving Commitment Maturity Date or the Circle C
Revolving Credit Maturity Date, as applicable, unless such
Letter of Credit expires by its terms on an earlier date.
Each Letter of Credit may, upon the request of the relevant
Borrower, include a provision whereby such Letter of Credit
shall be renewed automatically for additional consecutive
periods of 12 months or less (but not beyond the date that
is five Business Days prior to the FMPOC Revolving
Commitment Maturity Date or the Circle C Revolving Credit
Maturity Date, as applicable) unless the applicable Issuing
Bank notifies the beneficiary thereof at least 30 days prior
to the then applicable expiry date that such Letter of
Credit will not be renewed.
(d) Participations. By the issuance of a Letter
of Credit and without any further action on the part of the
applicable Issuing Bank or the Lenders, the Issuing Bank in
respect of such Letter of Credit hereby grants to each
Lender, and each such Lender hereby acquires from such
Issuing Bank, a participation in such Letter of Credit equal
to such Lender's Applicable Percentage of the aggregate
amount available to be drawn under such Letter of Credit,
effective upon the issuance of such Letter of Credit. In
consideration and in furtherance of the foregoing, each such
Lender hereby absolutely and unconditionally agrees to pay
to the Administrative Agent, for the account of such Issuing
Bank, such Lender's Applicable Percentage of each L/C
Disbursement made by such Issuing Bank and not reimbursed by
the relevant Borrower (or, if applicable, another party
pursuant to its obligations under any other Loan Document)
forthwith on the date due as provided in Section 2.02(e).
Each Lender acknowledges and agrees that its obligation to
acquire participations pursuant to this paragraph in respect
of Letters of Credit is absolute and unconditional and shall
not be affected by any circumstance whatsoever, including
the occurrence and continuance of a Default or an Event of
Default, and that each such payment shall be made without
any offset, abatement, withholding or reduction whatsoever.
(e) Reimbursement. Subject to Section 2.18(h),
if the Issuing Bank in respect of a Letter of Credit shall
make any L/C Disbursement in respect of such Letter of
Credit, the relevant Borrower shall pay to the
Administrative Agent an amount equal to such L/C
Disbursement not later than 3:00 p.m., New York City time,
on the day on which such Borrower shall have received notice
from such Issuing Bank that payment of such draft will be
made, or, if such Borrower shall have received such notice
later than 11:00 a.m., New York City time, on any Business
Day, FMPOC shall make such payment not later than 11:00
a.m., New York City time, on the immediately following
Business Day.
(f) Obligations Absolute. Each Borrower's
obligations to reimburse L/C Disbursements as provided in
paragraph (e) above shall be absolute, unconditional and
irrevocable, and shall be performed strictly in accordance
with the terms of this Agreement, under any and all
circumstances whatsoever (until such time as an amount equal
to all such L/C Disbursements, and any interest accrued
thereon, shall have been paid to the applicable Issuing
Banks pursuant to paragraph (e) above), and irrespective of:
(i) any lack of validity or enforceability of any
Letter of Credit or any Loan Document, or any term or
provision therein;
(ii) any amendment or waiver of or any consent to
departure from all or any of the provisions of any
Letter of Credit or any Loan Document;
(iii) the existence of any claim, setoff, defense
or other right that the relevant Borrower, any other
party guaranteeing, or otherwise obligated with, such
Borrower, any Subsidiary or other Affiliate thereof or
any other Person may at any time have against the
beneficiary under any Letter of Credit, the relevant
Issuing Bank, the Administrative Agent or any Lender or
any other Person, whether in connection with this
Agreement, any other Loan Document or any other related
or unrelated agreement or transaction;
(iv) any draft or other document presented under a
Letter of Credit proving to be forged, fraudulent,
invalid or insufficient in any respect or any statement
therein being untrue or inaccurate in any respect;
(v) payment by the relevant Issuing Bank under a
Letter of Credit against presentation of a draft or
other document that does not comply with the terms of
such Letter of Credit; and
(vi) any other act or omission to act or delay of
any kind of the relevant Issuing Bank, the Lenders, the
Administrative Agent or any other Person or any other
event or circumstance whatsoever, whether or not
similar to any of the foregoing, that might, but for
the provisions of this Section, constitute a legal or
equitable discharge of the relevant Borrower's
obligations hereunder.
Without limiting the generality of the foregoing,
it is expressly understood and agreed that the absolute and
unconditional obligation of each Borrower hereunder to
reimburse L/C Disbursements will not be excused by the gross
negligence or wilful misconduct of the relevant Issuing
Bank. However, the foregoing shall not be construed to
excuse the relevant Issuing Bank from liability to either
Borrower to the extent of any direct damages (as opposed to
consequential damages, claims in respect of which are hereby
waived by each Borrower to the extent permitted by
applicable law) suffered by such Borrower that are caused by
such Issuing Bank's gross negligence or wilful misconduct in
performance of its obligations hereunder; it is understood
that an Issuing Bank may accept documents that appear on
their face to be in order, without responsibility for
further investigation, regardless of any notice or
information to the contrary and, in making any payment under
any Letter of Credit (i) an Issuing Bank's exclusive
reliance on the documents presented to it under such Letter
of Credit as to any and all matters set forth therein,
including reliance on the amount of any draft presented
under such Letter of Credit, whether or not the amount due
to the beneficiary thereunder equals the amount of such
draft and whether or not any document presented pursuant to
such Letter of Credit proves to be insufficient in any
respect, if such document on its face appears to be in
order, and whether or not any other statement or any other
document presented pursuant to such Letter of Credit proves
to be forged or invalid or any statement therein proves to
be inaccurate or untrue in any respect whatsoever and (ii)
any noncompliance in any immaterial respect of the documents
presented under such Letter of Credit with the terms thereof
shall, in each case, be deemed not to constitute wilful
misconduct or gross negligence of the Issuing Bank.
(g) Disbursement Procedures. An Issuing Bank
shall, promptly following its receipt thereof, examine all
documents purporting to represent a demand for payment under
a Letter of Credit issued by it. Such Issuing Bank shall as
promptly as possible give telephonic notification, confirmed
by telecopy, to the Administrative Agent and the relevant
Borrower of such demand for payment and whether the Issuing
Bank has made or will make an L/C Disbursement thereunder;
provided, however, that any failure to give or delay in
giving such notice shall not relieve such Borrower of its
obligation to reimburse such Issuing Bank and the relevant
Lenders with respect to any such L/C Disbursement pursuant
to Section 2.18(e). The Administrative Agent shall promptly
give notice thereof to each Lender with a participation in
such Letter of Credit.
(h) Interim Interest. If the Issuing Bank in
respect of a Letter of Credit shall make any L/C
Disbursements in respect of a Letter of Credit, then, unless
the relevant Borrower shall reimburse such L/C Disbursement
in full on such date, the unpaid amount thereof shall bear
interest for the account of such Issuing Bank, for each day
from and including the date of such L/C Disbursement, to but
excluding the earlier of the date of payment by such
Borrower or the date on which interest shall commence to
accrue thereon as provided in Section 2.02(e), at the rate
per annum that would apply to such amount if such amount
were a Reference Rate Loan.
(i) Resignation or Removal of an Issuing Bank.
An Issuing Bank may resign at any time by giving 180 days'
prior written notice to the Administrative Agent, the
Lenders and the Borrowers, and may be removed at any time by
the Borrowers by notice to such Issuing Bank, the
Administrative Agent and the Lenders. Subject to the next
succeeding paragraph, upon the acceptance of any appointment
as an Issuing Bank hereunder by a Lender that shall agree to
serve as a successor Issuing Bank, such successor shall
succeed to and become vested with all the interests, rights
and obligations of the retiring Issuing Bank (other than
with respect to outstanding Letters of Credit previously
issued by it) and the retiring Issuing Bank shall be
discharged from its obligations to issue additional Letters
of Credit hereunder. At the time such removal or
resignation shall become effective, the relevant Borrower
shall pay all accrued and unpaid fees pursuant to Section
2.06(d). The acceptance of any appointment as an Issuing
Bank hereunder by a successor Lender shall be evidenced by
an agreement entered into by such successor, in a form
satisfactory to the Borrowers and the Administrative Agent,
and, from and after the effective date of such agreement,
(i) such successor Lender shall have all the rights and
obligations of the previous Issuing Bank under this
Agreement and the other Loan Documents (other than with
respect to outstanding Letters of Credit previously issued
by it) and (ii) references herein and in the other Loan
Documents to the term "Issuing Bank" shall be deemed to
refer to such successor or to any previous Issuing Bank, or
to such successor and all previous Issuing Banks, as the
context shall require. After the resignation or removal of
an Issuing Bank hereunder, the retiring Issuing Bank shall
remain a party hereto and shall continue to have all the
rights and obligations of an Issuing Bank under this
Agreement and the other Loan Documents with respect to
Letters of Credit issued by it prior to such resignation or
removal, but shall not be required to issue additional
Letters of Credit.
(j) Cash Collateralization. If any Event of
Default shall occur and be continuing, the relevant Borrower
shall, on the Business Day it receives notice thereof from
the Administrative Agent or the Required Lenders (or if the
maturity of the Loans has been accelerated, Lenders under
(i) the New FMPOC Revolving Tranche holding participations
in outstanding FMPOC Letters of Credit representing greater
than 50% of the aggregate undrawn amount of all outstanding
FMPOC Letters of Credit or (ii) the New Circle C Revolving
Tranche holding participations in outstanding Circle C
Letters of Credit representing greater than 50% of the
aggregate undrawn amount of all outstanding Circle C Letters
of Credit, as applicable) demanding the deposit of cash
collateral pursuant to this paragraph, such Borrower shall
deposit in an account with the Administrative Agent, for the
benefit of the Lenders, an amount in cash equal to the FMPOC
L/C Exposure or the Circle C L/C Exposure, as applicable, as
of such date plus any accrued and unpaid interest thereon
and fees related thereto; provided that the obligation to
deposit such cash collateral shall become effective
immediately, and such deposit shall become immediately due
and payable, without demand or other notice of any kind,
upon the occurrence of any Event of Default with respect to
a Borrower, Restricted Entity or Guarantor described in
clause (i) or (j) of Article VII. Each such deposit shall
be held by the Administrative Agent as collateral for the
payment and performance of the obligations of the Borrowers
under this Agreement. The Administrative Agent shall have
exclusive dominion and control, including the exclusive
right of withdrawal, over such account. Other than any
interest earned on the investment of such deposits in
Permitted Investments, which investments shall be made in
the sole discretion of the Administrative Agent and at the
Borrowers' risk and expense, such deposits shall not bear
interest (it being understood that the Administrative Agent
shall have no obligation to invest such amounts in any
investments other than overnight Permitted Investments).
Interest or profits, if any, on such investments shall
accumulate in such account. Moneys in such account shall
automatically be applied by the Administrative Agent to
reimburse the applicable Issuing Banks for L/C Disbursements
for which they have not been reimbursed, and, to the extent
not so applied, shall be held for the satisfaction of the
reimbursement obligations of the relevant Borrower for the
L/C Exposure at such time or, if the maturity of the Loans
has been accelerated (but subject to the consent of Lenders
with L/C Exposure representing greater than 50% of the total
L/C Exposure), be applied to satisfy other obligations of
the Borrowers under the Loan Documents. If a Borrower is
required to provide an amount of cash collateral hereunder
as a result of the occurrence of an Event of Default, such
amount (to the extent not applied as aforesaid) shall be
returned to such Borrower within three Business Days after
all Events of Default have been cured or waived.
(k) Additional Issuing Banks. The Borrowers may,
at any time and from time to time with the consent of the
Administrative Agent (which consent shall not be
unreasonably withheld) and such Lender, designate one or
more additional Lenders to act as an Issuing Bank under the
terms of this Agreement. Any Lender designated as an
issuing bank pursuant to this paragraph (k) shall be deemed
(in addition to being a Lender) to be an Issuing Bank with
respect to Letters of Credit issued or to be issued by such
Lender, and all references herein and in the other Loan
Documents to the term "Issuing Bank" shall, with respect to
such Letters of Credit, be deemed to refer to such Lender in
its capacity as Issuing Bank, as the context shall require.
ARTICLE III
Representations and Warranties
SECTION 3.01. Representations and Warranties. As
of the Effective Date and each other date upon which such
representations and warranties are required to be made or
deemed made pursuant to Section 6.01(i), each of the
Borrowers and FMPO, as a Restricted Entity, represents and
warrants to each Lender, Issuing Bank and Agent as follows
with respect to itself and, as applicable, its Subsidiaries:
(a) Organization; Powers. Such Borrower or FMPO,
as applicable, (i) is duly organized, validly existing and
in good standing under the laws of the state of its
organization, (ii) has the requisite power and authority to
own its property and assets and to carry on its business as
now conducted and as proposed to be conducted, and (iii) is
qualified to do business in every jurisdiction where such
qualification is required, except where the failure so to
qualify would not have a Material Adverse Effect on its
condition, financial or otherwise. Such Borrower or FMPO,
as applicable, has the corporate or other equivalent power
to execute, deliver and perform its obligations under this
Agreement and the other Loan Documents to which it is or is
to be a party and, in the case of the Borrowers, to borrow
and to obtain Letters of Credit hereunder. Such Borrower or
FMPO, as applicable, has all requisite corporate or other
equivalent power, and has all material governmental
licenses, authorizations, consents and approvals necessary
to own its own assets and carry on its business as now being
or as proposed to be conducted.
(b) Authorization. The execution, delivery and
performance of this Agreement (including, without
limitation, performance of the obligations set forth in
Section 5.01(l)) and the other Loan Documents to which such
Borrower or FMPO, as applicable, is or is to be a party and
the Borrowings hereunder by such Borrower and the Letters of
Credit to be issued hereunder to such Borrower (i) have been
duly authorized by all requisite corporate or partnership,
as applicable, and, if required, stockholder or partner, as
applicable, action on the part of such Borrower or FMPO, as
applicable, and (ii) will not (A) violate (x) any
Governmental Rule or such Borrower's or FMPO's Certificate
of Incorporation and By-laws or Agreement of General
Partnership, as applicable, or (y) any provisions of any
indenture, agreement or other instrument to which such
Borrower or FMPO, as applicable, is a party, or by which
such Borrower or FMPO, as applicable, or any of its
Properties or assets are or may be bound, (B) be in conflict
with, result in a breach of or constitute (alone or with
notice or lapse of time or both) a default under any
indenture, agreement or other instrument referred to in
(ii)(A)(y) above or (C) result in the creation or imposition
of any Lien, charge or encumbrance of any nature whatsoever
upon any property or assets of such Borrower or FMPO, as
applicable.
(c) Governmental Approvals. No registration with
or consent or approval of, or other action by, any
Governmental Authority is or will be required in connection
with the execution, delivery and performance by such
Borrower or FMPO, as applicable, of this Agreement or any
other Loan Document to which it is, or is to be, a party or
the Borrowings hereunder by such Borrower and the Letters of
Credit to be issued hereunder to such Borrower except such
as have been made or obtained and are in full force and
effect. Other than routine authorizations, permissions or
consents which are of a minor nature and which are
customarily granted in due course after application or the
denial of which would not materially adversely affect the
business, financial condition or operations of such Borrower
or FMPO, as applicable, such Borrower or FMPO, has all
franchises, licenses, certificates, authorizations,
approvals or consents from all national, state and local
governmental and regulatory authorities required to carry on
its business as now conducted and as proposed to be
conducted.
(d) Enforceability. This Agreement and each of
the other Loan Documents to which it is a party constitutes
a legal, valid and binding obligation of such Borrower or
FMPO, as applicable, enforceable in accordance with their
respective terms (subject, as to the enforcement of remedies
against such Borrower or FMPO, as applicable, to applicable
bankruptcy, reorganization, insolvency, moratorium and
similar laws affecting creditors' rights against such
Borrower or FMPO, as applicable, generally in connection
with the bankruptcy, reorganization or insolvency of such
Borrower or FMPO, as applicable, or a moratorium or similar
event relating to such Borrower or FMPO, as applicable).
(e) Financial Statements. FMPOC or FMPO, as
applicable, has heretofore furnished to each of the Lenders
an audited consolidated balance sheet and statement of
operations and changes in retained earnings and cash flow as
of and for the fiscal year ended December 31, 1996, and an
unaudited consolidated balance sheet and statement of
operations and cash flow as of and for the fiscal quarter
ended September 30, 1997. All such balance sheets and
statements of operations and cash flow present fairly the
financial condition and results of operations of FMPOC or
FMPO, as applicable, and their respective Subsidiaries as of
the dates and for the periods indicated. Such financial
statements and the notes thereto disclose all material
liabilities, direct or contingent, of FMPOC or FMPO, as
applicable, and their respective Subsidiaries as of the
dates thereof which are required to be disclosed in the
footnotes to financial statements prepared in accordance
with GAAP. The financial statements referred to in this
Section 3.01(e) have been prepared in accordance with GAAP.
There has been no material adverse change since
September 30, 1997, in the businesses, assets, operations,
prospects or condition, financial or otherwise, of such
Borrower or FMPO, as applicable, and their respective
Subsidiaries taken as a whole.
(f) Litigation; Compliance with Laws; etc.
(i) Except as disclosed in the FMPO Annual Report on
Form 10-K for the fiscal year ended December 31, 1996, and
any subsequent filings made by FMPO pursuant to the periodic
reporting requirements of the SEC, there are no actions,
suits or proceedings at law or in equity or by or before any
Governmental Authority now pending or, to the knowledge of
such Borrower or FMPO, as applicable, threatened against or
affecting such Borrower or FMPO, as applicable, or any of
their respective Subsidiaries or the businesses, assets or
rights of such Borrower or FMPO, as applicable, or any of
their respective Subsidiaries (x) which involve this
Agreement or any of the other Loan Documents or any of the
transactions contemplated hereby or thereby or (y) as to
which there is a reasonable possibility of an adverse
determination and which, if adversely determined, could,
individually or in the aggregate, materially impair the
ability of such Borrower or FMPO, as applicable, to conduct
its business substantially as now conducted, or materially
and adversely affect the businesses, assets, operations,
prospects or condition, financial or otherwise, of such
Borrower or FMPO, as applicable, or impair the validity or
enforceability of, or the ability of such Borrower or FMPO,
as applicable, to perform its obligations under, this
Agreement or any of the other Loan Documents to which it is
a party.
(ii) Neither such Borrower or FMPO, as
applicable, nor any of their respective Subsidiaries is in
violation of any Governmental Rule, or in default with
respect to any judgment, writ, injunction, decree, rule or
regulation of any Governmental Authority, where such
violation or default could result in a Material Adverse
Effect. Without limitation of the foregoing, such Borrower
and FMPO, and each of their respective Subsidiaries have
complied with all Environmental Laws where any such
noncompliance could have a Material Adverse Effect on the
business, assets, operations or condition, financial or
otherwise, of such Borrower or FMPO or their respective
Subsidiaries. Neither such Borrower or FMPO nor any of
their respective Subsidiaries has received notice of any
material failure so to comply. Such Borrower's and FMPO's,
and their respective Subsidiaries', plants do not handle any
Hazardous Materials in violation of any Environmental Law
where any such violation could have a Material Adverse
Effect on the business, assets, operations or condition,
financial or otherwise, of such Borrower or FMPO. Such
Borrower and FMPO are aware of no events, conditions or
circumstances involving contaminants or employee health or
safety that could reasonably be expected to result in
material liability on the part of such Borrower, FMPO or any
of their respective Subsidiaries.
(g) Title, etc. Such Borrower or FMPO, as
applicable, and their respective Subsidiaries have good and
valid title to their respective material properties, assets
and revenues (exclusive of oil, gas and other mineral
properties on which no development or production activities
are being conducted and commercially exploitable reserves
have not been discovered), in the case of such Borrower and
the Restricted Entities, free and clear of all Liens except
such Liens as are permitted by Section 5.02(d) and except
for covenants, restrictions, rights, easements and minor
irregularities in title which do not individually or in the
aggregate interfere with the occupation, use and enjoyment
by such Borrower or Restricted Entity of such properties and
assets in the normal course of business as presently
conducted or materially impair the value thereof for use in
such business.
(h) Federal Reserve Regulations; Use of Proceeds.
(i) Neither such Borrower or FMPO, as applicable, nor any
of their respective Subsidiaries is engaged principally, or
as one of its important activities, in the business of
extending credit for the purpose of purchasing or carrying
Margin Stock.
(ii) No part of the proceeds of the Loans or any
Letter of Credit will be used, whether directly or
indirectly, and whether immediately, incidentally or
ultimately, for any purpose which entails a violation of, or
which is inconsistent with, the provisions of the
Regulations of the Board, including, without limitation,
Regulations G, U or X thereof.
(iii) Such Borrower will use the proceeds of all
Loans made to it and request the issuance of Letters of
Credit for the funding of capital expenditures, working
capital and general corporate purposes.
(i) Taxes. Such Borrower or FMPO, as applicable,
and their respective Subsidiaries have filed or caused to be
filed all material Federal, state, local and foreign tax
returns which are required to be filed by them, and have
paid or caused to be paid all taxes shown to be due and
payable on such returns or on any assessments received by
any of them, other than any taxes or assessments the
validity of which such Borrower or FMPO, as applicable, or
any Subsidiary thereof is contesting in good faith by
appropriate proceedings, and with respect to which such
Borrower or FMPO, as applicable, or any Subsidiary thereof
shall, to the extent required by GAAP, have set aside on its
books adequate reserves.
(j) Employee Benefit Plans. Each of such
Borrower or FMPO, as applicable, and their respective ERISA
Affiliates is in compliance in all material respects with
the applicable provisions of ERISA and the Code and the
regulations and published interpretations thereunder. No
ERISA Event has occurred or is reasonably expected to occur
that, when taken together with all other such ERISA Events,
could materially and adversely affect the financial
condition and operations of such Borrower or FMPO, as
applicable, and their respective ERISA Affiliates, taken as
a whole. The present value of all benefit liabilities under
each Plan, determined on a plan termination basis (based on
those assumptions used for financial disclosure purposes in
accordance with Statement of Financial Accounting Standards
No. 87 of the Financial Accounting Standards Board ("SFAS
87") did not, as of the last annual valuation date
applicable thereto, exceed by more than $ 5,000,000 the value
of the assets of such Plan, and the present value of all
benefit liabilities of all underfunded Plans, determined on
a plan termination basis (based on those assumptions used
for financial disclosure purposes in accordance with SFAS
87) did not, as of the last annual valuation dates
applicable thereto, exceed by more than $5,000,000 the value
of the assets of all such underfunded Plans.
(k) Investment Company Act. Neither such
Borrower or FMPO, as applicable, nor any of their respective
Subsidiaries is an "investment company" as defined in, or
subject to regulation under, the Investment Company Act of
1940, as amended from time to time.
(1) Public Utility Holding Company Act. Neither
such Borrower or FMPO, as applicable, nor any of their
respective Subsidiaries is a "holding company", or a
"subsidiary company" of a "holding company", or an
"affiliate" of a "holding company" or of a "subsidiary
company" of a "holding company", within the meaning of the
Public Utility Holding Company Act of 1935, as amended from
time to time.
(m) Subsidiaries. Schedule III constitutes a
complete and correct list, as of the Effective Date or the
date of any update thereof required by Section 5.01(a)(5),
of all Restricted Entities of the Borrowers with at least
$1,000,000 in total assets, indicating the jurisdiction of
incorporation or organization of each corporation or
partnership and the percentage of shares or units owned on
such date directly or indirectly by the Borrowers in each.
Each entity shown as a parent company owns on such date,
free and clear of all Liens, the percentage of voting shares
or partnership interests outstanding of its Restricted
Entities shown on Schedule III, and all such shares or
partnership interests are validly issued and fully paid.
(n) Environmental Matters. (1) The Properties
of such Borrower or FMPO, as applicable, and their
respective Subsidiaries and all operations of such Borrower
or FMPO, as applicable, and their respective Subsidiaries
are in compliance, and in the last three years have been in
compliance, with all Environmental Laws, and all necessary
Environmental Permits have been obtained and are in effect,
and are not the subject of any pending or threatened
challenge by any Governmental Authority or Person, except to
the extent that such noncompliance, challenge or failure to
obtain any necessary permits, in the aggregate, could not
reasonably be expected to result in a Material Adverse
Effect.
(2) There have been no Releases or threatened
Releases at, from, under or proximate to its Properties or
otherwise in connection with the operations of such Borrower
or FMPO, as applicable, or their respective Subsidiaries,
which Releases or threatened Releases, in the aggregate,
could reasonably be expected to result in a Material Adverse
Effect.
(3) Neither such Borrower or FMPO, as applicable,
nor any of their respective Subsidiaries has received any
notice of an Environmental Claim in connection with its
Properties or the operations of such Borrower or FMPO, as
applicable, or their respective Subsidiaries or with regard
to any Person whose liabilities for environmental matters
such Borrower or FMPO, as applicable, or their respective
Subsidiaries has retained or assumed, in whole or in part,
contractually, by operation of law or otherwise, which, in
the aggregate, could reasonably be expected to result in a
Material Adverse Effect, nor does such Borrower or FMPO, as
applicable, or their respective Subsidiaries have reason to
believe that any such notice will be received or is being
threatened.
(4) Hazardous Materials have not been transported
from the Properties of such Borrower or FMPO, as applicable,
or their respective Subsidiaries, nor have Hazardous
Materials been generated, treated, stored or disposed of at,
on or under any of such Properties in a manner that could
give rise to liability under any Environmental Law, nor has
such Borrower or FMPO, as applicable, nor any of their
respective Subsidiaries retained or assumed any liability,
contractually, by operation of law or otherwise, with
respect to the generation, treatment, storage or disposal of
Hazardous Materials, which transportation, generation,
treatment, storage or disposal, or retained or assumed
liabilities, in the aggregate, could reasonably be expected
to result in a Material Adverse Effect.
(o) Solvency. (i) The fair salable value of the
assets of such Borrower and its Subsidiaries will exceed the
amount that will be required to be paid on or in respect of
the Debt and other obligations of such Borrower and its
Subsidiaries as they become absolute and mature.
(ii) Such Borrower and its Subsidiaries will not
have unreasonably small capital to carry out their
businesses as conducted or as proposed to be conducted.
(iii) Such Borrower, on a consolidated basis, does
not intend to, and does not believe that it will, incur Debt
and other obligations beyond its ability to pay such Debt
and obligations as they mature (taking into account the
timing and amounts of cash to be received by it and the
amounts to be payable on or in respect of such Debt and
obligations).
(p) No Material Misstatements. No information,
report (including any exhibit, schedule or other attachment
thereto or other document delivered in connection
therewith), financial statement, exhibit or schedule
prepared or furnished by such Borrower or FMPO, as
applicable, to the Administrative Agent or any Lender or
Issuing Bank in connection with this Agreement or any of the
other Loan Documents or included therein contained or
contains any material misstatement of fact or omitted or
omits to state any material fact necessary to make the
statements therein, taken as a whole in the light of the
circumstances under which they were made, not misleading.
ARTICLE IV
Conditions to Initial Credit Event
Subject to satisfaction of the conditions to each
Credit Event required by Section 6.01, the Borrowers may not
borrow Loans hereunder until the first date upon which the
following conditions have been satisfied:
(a) The Administrative Agent (or its counsel)
shall have received from each party hereto and to the FTX
Guarantee Agreement and the FMPO Guarantee Agreement either
(i) a counterpart of this Agreement or such Guarantee
Agreements, as applicable, signed on behalf of such party or
(ii) written evidence satisfactory to the Administrative
Agent (which may include telecopy transmission of a signed
signature of this Agreement or such Guarantee Agreements, as
applicable) that such party has signed a counterpart to this
Agreement or such Guarantee Agreements, as applicable.
(b) The Administrative Agent shall have received,
on behalf of itself and the Lenders, a favorable written
opinion (addressed to the Administrative Agent and the
Lenders and dated the Effective Date) of each of (i) the
General Counsel of the Borrowers, substantially to the
effect set forth in Exhibit D, (ii) Jones, Walker,
Xxxxxxxxx, Xxxxxxx & Xxxxxxx, L.L.P., counsel for the
Borrowers, FTX and FMPO, substantially to the effect set
forth in Exhibit E, (iii) Texas counsel for Circle C,
ssubstantially to the effect set forth in Exhibit F, and
(iv) Neww York counsel, substantially to the effect set forth
in Exhibit G, and, in the case of each such opinion required
by this paragraph, covering such other matters relating to
the Loan Documents and the transactions contemplated thereby
as the Administrative Agent shall reasonably request, and
the Borrowers hereby instruct such counsel to deliver such
opinions.
(c) All legal matters incident to this Agreement,
the Guarantee Agreements, the Borrowings and extensions of
credit hereunder or the other Loan Documents shall be
satisfactory to the Lenders, the Issuing Banks and to
Cravath, Swaine & Xxxxx, special counsel for the Agents.
(d) The Administrative Agent shall have received
(i) a copy of the Certificate of Incorporation, including
all amendments thereto, of each of Circle C and the
Guarantors, certified as of a recent date by the Secretary
of State of the state of its organization, and a certificate
from such Secretary of State as to the good standing of each
of Circle C and the Guarantors as of a recent date and the
filing of all franchise tax returns and the payment of all
franchise taxes rrequired by law to be filed and paid by each
of Circle C and the Guarantors to the date of such
certificate; (ii) a certificate of the Secretary or
Assistant Secretary of each of Circle C and the Guarantors
dated the Effective Date and certifying (A) that attached
thereto is a true and complete copy of the By-laws of
Circle C or such Guarantor, as applicable, as in effect on
the Effective Date and at all times since a date prior to
the date of the resolutions described in clause (B) below,
(B) that attached thereto is a true and complete copy of
resolutions duly adopted by the Board of Directors of
Circle C or such Guarantor, as applicable, authorizing the
execution, delivery and performance of the Loan Documents to
which Circle C or such Guarantor, as applicable (and, in the
case of FMPO, also in its capacity as a Restricted Entity),
is a party and, in the case of Circle C, the Borrowings
hereunder and the Letters of Credit issued hereunder, and
that such resolutions have not been modified, rescinded or
amended and are in full force and effect, (C) that the
Certificate of Incorporation and By-laws of Circle C or such
Guarantor, as applicable, have not been amended since the
date of the last amendment thereto shown on the certificate
of good standing furnished pursuant to clause (i) above or
the date of the certificate furnished pursuant to clause
(ii) above, as applicable, and (D) as to the incumbency and
specimen signature of each officer executing any Loan
Document or any other document delivered in connection
herewith on behalf of Circle C or such Guarantor, as
applicable (and, in the case of FMPO, also in its capacity
as a Restricted Entity); (iii) a certificate of another
officer of each of Circle C and the Guarantors (and, in the
case of FMPO, also in its capacity as a Restricted Entity)
as to the incumbency and specimen signature of the
applicable Secretary or Assistant Secretary executing the
certificate pursuant to clause (ii) above; (iv) a
certificate of the Secretary or an Assistant Secretary of
FMPOC (or, if there shall be no such officer appointed, of
FMPO as managing general partner of FMPOC), dated the
Effective Date and certifying (A) that attached thereto are
true and complete copies of the Agreement of General
Partnership and all other constitutive documents, if any, of
FMPOC as in effect on the date of such certificate and at
all times since the resolution of FMPOC described in
item (B) below, (B) that attached thereto is a true and
complete copy of a resolution or similar authorization
adopted by FMPO, as managing general partner of FMPOC,
authorizing the execution, delivery and performance of this
Agreement and the other Loan Documents executed and
delivered or to be executed and delivered, as applicable, by
FMPOC and the Borrowings hereunder by FMPOC and the Letters
of Credit issued hereunder on behalf of FMPOC, and that such
resolution or authorization has not been modified, rescinded
or amended and is in full force and effect and (C) as to the
incumbency and specimen signature of each officer executing
on behalf of FMPOC the foregoing documents and any other
document delivered or to be delivered in connection herewith
or therewith; (v) a certificate of another officer of FMPOC
(or, if there shall be no such officer appointed, of FMPO as
managing general partner of FMPOC) as to the incumbency and
signature of such Secretary or Assistant Secretary; and
(vi) such other documents as the Lenders or Cravath, Swaine
& Xxxxx, special counsel for the Agents, may reasonably
request.
(e) The Administrative Agent shall have received
a certificate from each of the Borrowers and the Guarantors
dated the Effective Date and signed by a Financial Officer
of each such Borrower or Guarantor, as applicable,
confirming compliance with the conditions precedent set
forth in paragraphs (i) and (iii) of Section 6.01.
(f) The Administrative Agent shall have received
all fees and other amounts due and payable on or prior to
the Effective Date, including, to the extent invoiced,
reimbursement or payment of all out-of-pocket expenses
required to be reimbursed or paid by the Borrowers or the
Guarantors hereunder or under any other Loan Document.
(g) After giving effect to the transactions
contemplated hereby, the Borrowers and the Restricted
Entities shall have outstanding no Debt or preferred stock
other than (i) the Loans and other extensions of credit
under this Agreement and (ii) the Debt permitted under
Section 5.02(e); provided, however, that such Debt that
shall remain outstanding after the Effective Date pursuant
to the terms of Section 5.02(e) shall be satisfactory in all
respects to the Lenders (including, but not limited to,
terms and conditions relating to the interest rates, fees,
amortization, maturity, subordination, covenants, events of
default and remedies).
(h) The Lenders and the Issuing Banks shall be
satisfied that the consummation of the transactions
contemplated by this Agreement will not (i) violate any
applicable law, statute, rule or regulation (including, but
not limited to, ERISA, margin regulations and Environmental
Laws) or (ii) conflict with, or result in a default or event
of default under (x) any indenture relating to any existing
indebtedness of any of the Borrowers, Restricted Entities or
Guarantors that is not being repaid, repurchased or redeemed
in full on or prior to the Effective Date in connection with
the Merger or (y) any other material agreement of a
Borrower, Restricted Entity or Guarantor, and the
Administrative Agent shall have received one or more legal
opinions to such effect satisfactory to the Administrative
Agent, from counsel to the Borrowers and the Guarantors
satisfactory to the Administrative Agent.
(i) The Borrowers, Restricted Entities and
Guarantors shall have in place insurance with reputable
insurance companies or associations (or, to the extent
consistent with prudent business practice, through its own
program of self-insurance) in such amounts and covering such
risks as is usually carried by companies in similar
businesses and owning similar Properties in the same general
areas in which such Borrower, Restricted Entity or Guarantor
operates.
(j) The Lenders and the Issuing Banks shall have
received a copy, in a form satisfactory to the
Administrative Agent, of the IGL Credit Facility.
ARTICLE V
Covenants
SECTION 5.01. Affirmative Covenants of the
Borrowers and FMPO. Each of the Borrowers and FMPO
covenants and agrees with each Lender and Issuing Bank and
Agent that, from and after the Effective Date and so long as
this Agreement shall remain in effect and until the
Commitments have been terminated and the principal of and
interest on each Loan, all Fees and all other expenses or
amounts payable under any Loan Document shall have been paid
in full and all Letters of Credit have been canceled or have
expired and all amounts drawn thereunder have been
reimbursed in full, unless the Required Lenders otherwise
provide prior written consent:
(a) Financial Statements, etc. With respect to
the Borrowers and FMPO, each such Person, as applicable,
shall furnish each Lender and Issuing Bank:
(1) within 95 days after the end of each fiscal
year of FMPO, a consolidated balance sheet of FMPO and
its Subsidiaries as at the close of such fiscal year
and consolidated statements of operation and changes in
retained earnings and cash flow of FMPO and its
Subsidiaries for such year, with the opinion thereon of
Xxxxxx Xxxxxxxx LLP or other independent public
accountants of national standing selected by FMPO to
the effect that such consolidated financial statements
fairly present FMPO's financial condition and results
of operations on a consolidated basis in accordance
with GAAP consistently applied, except as disclosed in
such auditor's report;
(2) within 50 days after the end of each of the
first three quarters of each of FMPO's fiscal years, a
consolidated balance sheet of FMPO and FMPO's
Subsidiaries as at the end of such quarter and
consolidated statements of income of FMPO and FMPO's
Subsidiaries, for such quarter and for the period from
the beginning of the fiscal year to the end of such
quarter, certified by one of FMPO's Financial Officers
as fairly presenting FMPO's financial condition and
results of operations on a consolidated basis in
accordance with GAAP consistently applied, subject to
normal year-end audit adjustments;
(3) promptly after their becoming available,
(i) copies of all financial statements, reports and
proxy statements which it shall have sent to its
stockholders or unitholders, as applicable, generally,
(ii) copies of all registration statements (excluding
registration statements relating to employee benefit
plans) and regular and periodic reports, if any, which
it shall have filed with the SEC or any national
securities exchange and (iii) if requested by any
Lender or Issuing Bank, copies of each annual report
filed with any Governmental Authority pursuant to ERISA
with respect to each Plan of it or any of its
Subsidiaries;
(4) promptly upon the occurrence of any Default or
Event of Default, the occurrence of any default under
any other Loan Document, the commencement of any
proceeding regarding it or any of its Subsidiaries
under any Federal or state bankruptcy law, any other
development that has resulted in, or could reasonably
be expected to result in, a Material Adverse Effect,
notice thereof, describing the same in reasonable
detail (copies of which notice shall be promptly
delivered by the Administrative Agent to each
Guarantor);
(5) promptly upon the occurrence of any
development that, in the judgment of either Borrower or
FMPO, has resulted in, or could reasonably be
anticipated to result in, a Material Adverse Effect on
the business, assets, operations or financial condition
of the Borrowers or their respective ability to comply
with their respective obligations under the Loan
Documents, notice thereof, describing the same in
reasonable detail;
(6) 30 days prior to the commencement of each
fiscal year of FMPO, a consolidated operating budget of
FMPO (including the operating budgets of the Borrowers)
for such fiscal year;
(7) at the time of provision of the financial
statements referred to in clauses (1) and (2) above, an
update of Schedule III to correct, add or delete any
required information; and
(8) from time to time, such further information
regarding the business, affairs and financial condition
of it or any Subsidiary thereof as any Lender may
reasonably request.
At the time a Borrower or FMPO furnishes financial
statements pursuant to the foregoing clauses (1) and (2), it
also will furnish each Lender and Issuing Bank a certificate
signed by its Treasurer or any other authorized Financial
Officer certifying that no Default or Event of Default has
occurred, or if such a Default or Event of Default has
occurred, specifying the nature and extent thereof and any
corrective action taken or proposed to be taken with respect
thereto.
(b) Obligations, Taxes and Claims. Such Borrower
or FMPO, as applicable, shall, and shall cause each of its
Subsidiaries to, pay its material obligations promptly and
pay and discharge promptly when due all taxes, assessments
and governmental charges or levies imposed upon it or upon
its income or profits, or upon any property belonging to it,
prior to the date on which material penalties attach
thereto, as well as all lawful claims for labor, materials
and supplies or otherwise that, with respect to any of the
foregoing, if unpaid, could reasonably be expected to give
rise to a Lien upon such properties or any part thereof
which is not permitted by Section 5.02(d); provided that
neither such Borrower or FMPO nor any Subsidiary thereof
shall be required to pay or discharge any such obligation,
tax, assessment, charge, levy or claim, the payment of which
is being contested in good faith by proper proceedings and
with respect to which such Borrower or FMPO, or such
Subsidiary thereof, shall have, to the extent required by
GAAP, set aside on its books adequate reserves and such
contest operates to suspend collection of the contested
obligation, tax, assessment or charge and enforcement of
such Lien and, in the case of a mortgaged property, there is
no risk of forfeiture of such property.
(c) Maintenance of Existence; Conduct of
Business. Such Borrower shall, and shall cause its
Restricted Subsidiaries to, or FMPO shall, as applicable,
preserve and maintain its corporate existence and all its
rights, privileges and franchises necessary or desirable in
the normal conduct of its business; provided that nothing
herein shall prevent any transaction permitted by
Section 5.02(c).
(d) Compliance with Applicable Laws. Such
Borrower or FMPO, as applicable, shall, and shall cause each
of its Subsidiaries to, comply with the requirements of all
applicable laws, rules, regulations and orders of any
Governmental Authority, a breach of which would materially
and adversely affect its consolidated financial condition or
business, except where contested in good faith and by proper
proceedings and with respect to which such Borrower or FMPO,
or such Subsidiary thereof, shall have, to the extent
required by GAAP, set aside on its books adequate reserves.
(e) Litigation. Such Borrower shall, and shall
cause its Restricted Subsidiaries to, or FMPO shall, as
applicable, promptly give to each Lender and Issuing Bank
notice in writing of all litigation and all proceedings
before any Governmental Authority or arbitration authorities
affecting it or any Subsidiary thereof, except those which,
if adversely determined, do not relate to the Loan Documents
and which would not have a Material Adverse Effect on its
business, assets, operations or financial condition or its
ability to comply with its obligations under the Loan
Documents.
(f) ERISA. Such Borrower shall, and shall cause
each of its ERISA Affiliates to, or FMPO shall, and shall
cause each of its ERISA Affiliates to, as applicable, comply
in all material respects with the applicable provisions of
ERISA and the Code and furnish to the Administrative Agent
as soon as possible, and in any event within 30 days after
any Responsible Officer of it or any ERISA Affiliate thereof
knows or has reason to know that any ERISA Event has
occurred that alone or together with any other ERISA Event
could reasonably be expected to result in liability of it in
an aggregate amount exceeding $25,000,000 or requires
payment exceeding $10,000,000 in any year, a statement of a
Financial Officer thereof setting forth details as to such
ERISA Event and the action that it proposes to take with
respect thereto.
(g) Compliance with Environmental Laws. Such
Borrower shall, and shall cause its Restricted Subsidiaries
and all lessees and other Persons occupying its Properties
to, or FMPO shall, and shall cause all lessees and other
Persons occupying its Properties to, as applicable, comply
in all material respects with all Environmental Laws and
Environmental Permits applicable to its operations and
Properties; obtain and renew all material Environmental
Permits necessary for its operations and Properties; and
conduct any Remedial Action in accordance with Environmental
Laws; provided, however, that neither such Borrower nor the
Restricted Entities shall be required to undertake any
Remedial Action to the extent that its obligation to do so
is being contested in good faith and by proper proceedings
and appropriate reserves are being maintained with respect
to such circumstances in accordance with GAAP.
(h) Preparation of Environmental Reports. If a
default caused by reason of a breach of Section 3.01(n) or
5.01(g) shall have occurred and be continuing, at the
request of the Required Lenders through the Administrative
Agent, such Borrower or FMPO, as applicable, shall provide
to the Lenders within 45 days after such request, at the
expense of such Borrower or FMPO, as applicable, an
environmental site assessment report for the Properties
(which are the subject of such default) prepared by an
environmental consulting firm acceptable to the
Administrative Agent, indicating the presence or absence of
Hazardous Materials and the estimated cost of any compliance
or Remedial Action in connection with such Properties.
(i) Insurance. Such Borrower shall, and shall
cause its Restricted Subsidiaries to, or FMPO shall, as
applicable, (i) keep its insurable Properties adequately
insured at all times; (ii) maintain such other insurance, to
such extent and against such risks, including fire, flood
and other risks insured against by extended coverage, as is
customary with companies in the same or similar businesses;
(iii) maintain in full force and effect public liability
insurance against claims for personal injury or death or
property damage occurring upon, in, about or in connection
with the use of any properties owned, occupied or controlled
by it in such amount as it shall reasonably deem necessary;
and (iv) maintain such other insurance as may be required by
law.
(j) Access to Premises and Records. Such
Borrower or FMPO, as applicable, shall, and shall cause each
of its Subsidiaries to, maintain financial records in
accordance with GAAP, and, at all reasonable times and as
often as any Lender or Issuing Bank may reasonably request,
permit representatives of any Lender to have access to its
financial records and its premises and to the records and
premises of any of its Subsidiaries and to make such
excerpts from and copies of such records as such
representatives deem necessary and to discuss its affairs,
finances and accounts with its officers and its independent
certified public accountants or other parties preparing
consolidated or consolidating statements for it or on its
behalf.
(k) Maintenance of Property. Such Borrower
shall, and shall cause each of its Restricted Subsidiaries
to, or FMPO shall, as applicable, keep and maintain all
property material to the conduct of its business, taken as a
whole, in good working order and condition, ordinary wear
and tear excepted.
(l) Further Assurances. Such Borrower shall, and
shall cause the Restricted Subsidiaries to, and FMPO shall
execute any and all further documents, financing statements,
agreements and instruments, and take all further actions,
which may be required under applicable law, or which the
Required Lenders, the Administrative Agent or the
Documentary Agent may reasonably request, in order to
effectuate the transactions contemplated by this Agreement
and the other Loan Documents.
SECTION 5.02. Negative Covenants of the Borrowers
and FMPO. Each of the Borrowers and FMPO covenants and
agrees with each Lender, Issuing Bank and Agent that, from
and after the Effective Date and so long as this Agreement
shall remain in effect and until the Commitments have been
terminated and the principal of and interest on each Loan,
all Fees and all other expenses or amounts payable under any
Loan Document have been paid in full, and all Letters of
Credit have been canceled or have expired and all amounts
drawn thereunder have been reimbursed in full, without the
prior written consent of the Required Lenders:
(a) Conflicting Agreements. Such Borrower shall
not, and shall cause its Restricted Subsidiaries not to, or
FMPO shall not, as applicable, enter into any agreement with
any Person containing any provision which (i) would be
violated or breached by the performance of its obligations
under any Loan Document or under any instrument or document
delivered or to be delivered by it hereunder or thereunder
or in connection herewith or therewith or (ii) would
prohibit or restrict the payment of dividends or other
distributions by such Borrower or any of its Restricted
Subsidiaries, as applicable.
(b) Hedge Transactions. Such Borrower shall, and
shall cause its Restricted Subsidiaries to, or FMPO shall,
as applicable, enter into or become obligated with respect
to Hedge Agreements only in the ordinary course of business
to hedge or protect against actual or reasonably anticipated
exposures and not for speculation.
(c) Consolidation or Merger; Disposition of
Assets and Capital Stock. Such Borrower shall not, and
shall cause its Restricted Subsidiaries not to, or FMPO
shall not, as applicable, merge, acquire or consolidate with
any other Person or permit any other Person to merge into or
consolidate with it, unless (i) either Borrower or any
Restricted Entity shall be the continuing entity, or the
successor entity (if other than either Borrower or any
Restricted Entity) formed by or resulting from such merger,
acquisition or consolidation is organized under the laws of
any jurisdiction in the United States and assumes such
Person's obligations under this Agreement and
(ii) immediately after giving effect to such transaction, no
Event of Default shall have occurred and be continuing;
provided, however, that notwithstanding the above or any
other provision of this Agreement to the contrary, FMPO may
sell, transfer or otherwise dispose of, or give options to
purchase, all the stock and/or assets of Circle C, provided
that contemporaneously with any such sale, transfer or other
disposition, each of the Circle C Revolving Credit
Commitments and the Term Loan Commitment are terminated and
the principal of and interest on each of the Revolving Loans
made to Circle C and the Term Loan, and all Fees and other
expenses or amounts payable relating to such Revolving Loans
and the Term Loan, have been paid in full by Circle C and
all Circle C Letters of Credit have been canceled, have
expired or have otherwise been cash collateralized in full
and all L/C Disbursements under a Circle C Letter of Credit,
together with any interest accrued thereon, have been repaid
in full by Circle C pursuant hereto; and provided further
that FMPO shall not, under any circumstances during the term
of this Agreement, sell, transfer or dispose of all or
substantially all of the partnership interests or assets of
FMPOC. Upon any sale, transfer or other disposition of the
stock and/or assets of Circle C, Circle C shall be fully
released from all of its rights and obligations hereunder
(other than any obligations arising under Section 2.17,
10.02 or 10.04) and under any other Loan Documents.
(d) Liens. Such Borrower shall not, and shall
cause its Restricted Subsidiaries not to, or FMPO shall not,
as applicable, create, incur, assume or suffer to exist any
Lien upon any of its Properties or assets (including stock
or other securities of any Person, including any Subsidiary)
that is pari passu with or senior to the Liens granted to
the Guarantors under the Guarantee Agreements, except for:
(i) materialmen's, suppliers', tax and other
similar Liens arising in the ordinary course of the
business of such Borrower, such Restricted Subsidiary
or FMPO, securing obligations which are not overdue or
are being contested in good faith by appropriate
proceedings and as to which adequate reserves have been
set aside on such Person's books to the extent required
by GAAP;
(ii) Liens arising in connection with worker's
compensation, unemployment insurance and progress
payments under government contracts;
(iii) other Liens incident to the ordinary conduct
of the business of such Borrower, such Restricted
Subsidiary or FMPO or the ordinary operation of such
Person's properties or assets and not incurred in
connection with the obtaining of any Debt and which do
not in the aggregate materially detract from the value
of such Person's assets or materially impair the use
thereof in the operation of such Person's business;
(iv) zoning restrictions, easements, rights-of-way,
restrictions on use of real property and other similar
encumbrances incurred in the ordinary course of
business which, in the aggregate, are not substantial
in amount and do not materially detract from the value
of the property subject thereto or interfere with the
ordinary conduct of the business of such Borrower, such
Restricted Subsidiary or FMPO;
(v) Liens of lessors of property (in such
capacity) leased by such Borrower, such Restricted
Subsidiary or FMPO which Liens are limited to the
property leased thereunder;
(vi) Liens existing on the Effective Date and set
forth on Schedule IV;
(vii) Liens upon such Borrower's, such Restricted
Entity's or FMPO's interest in any investment included
in the Investment Basket pursuant to Section 5.03(b) or
securing Debt included in the Debt Basket pursuant to
Section 5.03(c);
(viii) Liens upon cash securing any payment
obligations or contingent reimbursement obligations of
such Borrower, such Restricted Subsidiary or FMPO to
the extent that such obligations are permitted under
this Agreement; and
(ix) any extension, renewal or replacement of any
of the foregoing.
(e) Debt. Such Borrower shall not, and shall
cause its Restricted Subsidiaries not to, or FMPO shall not,
as applicable, incur, create, assume or permit to exist any
Debt except for:
(i) unsecured Debt (x) between the Borrowers,
(y) between any Restricted Entities and (z) between any
Borrower and any Restricted Entity;
(ii) Debt included in the Debt Basket pursuant to
Section 5.03(c);
(iii) in addition to the other Debt permitted by
this Section 5.02(e), Debt (including the aggregate
Loans outstanding under the Tranches) not in excess of
the aggregate amounts set forth in Section 2.07(c)(i)
as of the dates set forth therein;
(iv) Debt secured by Liens permitted under
Section 5.02(d)(vi), which Debt is set forth on
Schedule IV;
(v) the reimbursement obligations of such Borrower
or Restricted Entity to the Guarantors; and
(vi) the Loans.
(f) Fiscal Year. Such Borrower or FMPO, as
applicable, shall not change its fiscal year to end on any
date other than December 31.
(g) Investments in Nonrestricted Subsidiaries and
Persons Not Subsidiaries. Such Borrower shall not, and
shall cause its Restricted Subsidiaries not to, or FMPO
shall not, as applicable, (i) purchase, hold or acquire any
capital stock, evidences of Debt or other securities of,
(ii) make or permit to exist any loans or advances to or
(iii) make or permit to exist any investment or any other
interest in, any Person other than a Borrower or a
Restricted Entity (each such party, a "Third Party") except
for:
(A) investments, loans, advances, holdings and
contributions existing on the Effective Date;
(B) Permitted Investments;
(C) investments of cash or other assets included
in the Investment Basket pursuant to Section 5.03(b);
(D) promissory notes payable to a Borrower or
Restricted Entity representing the purchase price of assets
sold by such Borrower or Restricted Entity to the extent
such promissory notes are secured by the assets sold;
provided that such asset sales are made to Third Parties
pursuant to arm's-length transactions; and
(E) any transactions otherwise permitted under
Section 5.02(e).
(h) Federal Reserve Regulations. Such Borrower
shall not, and shall cause its Restricted Subsidiaries not
to, or FMPO shall not, as applicable, use the proceeds of
any Loan in any manner that would result in a violation of,
or be inconsistent with, the provisions of Regulations G, U
or X. Such Borrower shall not, and shall cause its
Restricted Subsidiaries not to, or FMPO shall not, as
applicable, take any action at any time that would (A)
result in a violation of the substitution and withdrawal
requirements of said Regulations, in the event the same
should become applicable to this Agreement or any Loan or
(B) cause the representation and warranty contained in
Section 3.01(h) at any time to be other than true and
correct.
(i) Equity Payments. Such Borrower shall not,
and shall cause its Restricted Subsidiaries not to, or FMPO
shall not, as applicable, make an Equity Payment; provided,
however, that such Borrower or Restricted Entity may make an
Equity Payment to any other Borrower or Restricted Entity.
(j) Scope of Borrower's Business. Such Borrower
shall not, and shall cause its Restricted Subsidiaries not
to, or FMPO shall not, as applicable, engage in any material
manner in any business activities other than the Real Estate
Business.
(k) Asset Sales. Except in connection with a
transaction permitted under Section 5.02(c), such Borrower
shall not, and shall cause its Restricted Subsidiaries not
to, or FMPO shall not, as applicable, sell, lease, assign,
transfer or otherwise dispose of, or give options to
purchase, all or substantially all of the properties and
assets of the Borrowers and the Restricted Entities, taken
as a whole, to any Person in a single transaction or a
series of related transactions, unless, contemporaneously
with such sale, all the Commitments have been terminated and
the principal of and interest on each Loan, all fees and
other expenses or amounts payable under such Loan Documents
have been paid in full and all Letters of Credit have been
canceled or have expired and all amounts drawn thereunder
have been reimbursed in full.
SECTION 5.03. Permitted Transactions. (a) Each
of the Borrowers and Restricted Entities may invest in Third
Parties and incur Debt in connection with such investments
on the terms set forth in this Section 5.03. Any Borrower
may invest in any other Borrower or in any Restricted Entity
and incur Debt in connection with such investments without
limitation or restriction. Any Restricted Entity may invest
in any Borrower or in any other Restricted Entity without
limitation or restriction. Nonrestricted Subsidiaries and
other Affiliates of the Borrowers may invest in any Persons
and incur Debt in connection with such investments without
limitation or restriction.
(b) Permitted Third Party Investments. Each of
the Borrowers and Restricted Entities may make investments
of cash and other assets (valued at the book value disclosed
in the most recent Annual Report on Form 10-K filed by FMPO
with the SEC prior to the date of such investment) in Third
Parties; provided, however, that (i) such Third Party is
involved primarily in the Real Estate Business and (ii) the
aggregate amount of all such outstanding investments by all
the Borrowers and Restricted Entities pursuant to this
paragraph (b) at any time, when taken as a whole, shall not
exceed $10,000,000 (the "Investment Basket").
(c) Permitted Third Party Debt. Each of the
Borrowers and the Restricted Entities may incur, create,
assume or permit to exist any Debt (including Guarantees of
Debt of any Third Party and Capitalized Lease Obligations)
in connection with any investments in Third Parties
permitted by paragraph (b) above; provided, however, that
the aggregate amount of all such outstanding Debt incurred
by all the Borrowers and Restricted Entities pursuant to
this paragraph (c) at any time, when taken as a whole, shall
not exceed $10,000,000 (the "Debt Basket").
ARTICLE VI
Conditions to Credit Events
SECTION 6.01. Conditions Precedent to Each Credit
Event. Each Credit Event shall be subject to the following
conditions precedent:
(i) the representations and warranties on the part
of the relevant Borrower, FMPO, as a Restricted Entity,
and the Guarantors contained in the Loan Documents
shall be true and correct in all material respects at
and as of the date of such Credit Event as though made
on and as of such date;
(ii) the Administrative Agent shall have received a
notice of such Borrowing as required by Section 2.03;
(iii) no Event of Default shall have occurred and
be continuing on the date of such Credit Event or would
result after giving effect to such Credit Event;
(iv) the Loans to be made by the Lenders on such
date, and the use of the proceeds thereof and the
security arrangements contemplated hereby shall not
result in a violation of Regulations G, U or X, as in
effect on the date of such Borrowing. If required by
Regulation U as a result of such use of proceeds, such
Borrower shall have delivered to the Lenders a
statement in conformity with the requirements of
Federal Reserve Form U-1 referred to in Regulation U;
(v) there shall have been no amendments to the
Certificate of Incorporation, By-laws or Agreement of
General Partnership, as applicable, of the Borrowers or
Guarantors since the date of the Certificates furnished
by the Borrowers and Guarantors on the Effective Date,
other than amendments, if any, copies of which have
been furnished to the Administrative Agent; and
(vi) there shall be no proceeding for the
dissolution or liquidation of any of the Borrowers or
Guarantors or any proceeding to revoke the Certificate
of Incorporation or Agreement of General Partnership,
as applicable, of such Borrower or Guarantor or its
corporate existence, which is pending or, to the
knowledge of the Borrowers or Guarantors, threatened
against or affecting it.
SECTION 6.02. Representations and Warranties with
Respect to Credit Events. Each Credit Event shall be deemed
a representation and warranty by the relevant Borrower that
the conditions precedent to such Credit Event, unless
otherwise waived in accordance herewith, shall have been
satisfied.
ARTICLE VII
Events of Default
SECTION 7.01. Events of Default. If any of the
following acts or occurrences (an "Event of Default") shall
occur and be continuing:
(a) default for three or more days in the payment
when due of any principal of any Loan;
(b) default for five or more days in the payment
when due of any interest on any Loan, or of any other
amount payable under the Loan Documents;
(c) any representation or warranty made or deemed
made in or in connection with any Loan Document or in
any certificate, letter or other writing or instrument
furnished or delivered to the Lenders or the Agents
pursuant to any Loan Document shall prove to have been
incorrect in any material respect when made or effec-
tive or reaffirmed and repeated, as the case may be;
(d) default by a Borrower or FMPO in the due
observance or performance of any covenant, condition or
agreement in Section 5.01(a)(4) (with respect to
notices of Defaults or Events of Default) or in
Section 5.01(c) or (l), other than the covenant to
preserve and maintain all of such Borrower's or FMPO's,
as applicable, rights, privileges and franchises
desirable in the normal conduct of its business;
(e) default by a Borrower or FMPO in the due
observance or performance of any covenant, condition or
agreement in Section 5.02 (other than Section 5.02(f));
(f) default by a Borrower or any Restricted Entity
in the due observance or performance of any other
covenant, condition or agreement in the Loan Documents
which shall remain unremedied for 30 days after written
notice thereof shall have been given to such Borrower
or Restricted Entity, as applicable, by the
Administrative Agent or any Lender;
(g) upon the consummation of the Merger and the
assumption by IGL, as successor by merger to FTX, of
all FTX's rights and obligations as a Guarantor
hereunder and under the FTX Guarantee Agreement, the
execution of the IGL Guarantee Agreement and the
satisfaction of the conditions precedent set forth in
the IGL Credit Agreement, default by IGL in the due
observance or performance of any covenant, condition or
agreement in the IGL Guarantee Agreement;
(h) either a Borrower, Restricted Entity or
Guarantor shall (i) voluntarily commence any proceeding
or file any petition seeking relief under Title 11 of
the United States Code, as now constituted or hereafter
amended, or any other Federal or state bankruptcy,
insolvency, liquidation or similar law, (ii) consent to
the institution of, or fail to contravene in a timely
and appropriate manner, any proceeding or the filing of
any petition described in clause (i) below, (iii) apply
for or consent to the appointment of a receiver,
trustee, custodian, sequestrator or similar official
for such Borrower, Restricted Entity or Guarantor or
for a substantial part of its property or assets, (iv)
file an answer admitting the material allegations of a
petition filed against it in any such proceeding, (v)
make a general assignment for the benefit of creditors,
(vi) become unable, admit in writing its inability or
fail generally to pay its debts as they become due or
(vii) take any action for the purpose of effecting any
of the foregoing;
(i) an involuntary proceeding shall be commenced
or an involuntary petition shall be filed in a court of
competent jurisdiction seeking (i) relief in respect of
a Borrower, Restricted Entity or Guarantor, or of a
substantial part of the property or assets of a
Borrower, Restricted Entity or Guarantor, under Title
11 of the United States Code, as now constituted or
hereafter amended, or any other Federal or state
bankruptcy, insolvency, receivership or similar law,
(ii) the appointment of a receiver, trustee, custodian,
sequestrator or similar official for a Borrower,
Restricted Entity or Guarantor or for a substantial
part of the property of such Borrower, Restricted
Entity or Guarantor or (iii) the winding-up or
liquidation of a Borrower, Restricted Entity or
Guarantor; and such proceeding or petition shall
continue undismissed for 60 days, or an order or decree
approving or ordering any of the foregoing shall
continue unstayed and in effect for 30 days;
(j) default shall be made with respect to
(i) Hedge Agreements or (ii) any Debt of a Borrower or
a Restricted Entity if the effect of any such default
shall be to permit the holder or obligee of any such
obligations or Debt (or any trustee on behalf of such
holder or obligee) to accelerate (with or without
notice or lapse of time or both), the maturity of such
Debt and/or the payment of any net termination value in
respect of Hedge Agreements, as applicable, in an
aggregate amount in excess of $5,000,000; or any
payment, regardless of amount, of (A) net termination
value on any such obligation in respect of Hedge
Agreements and/or (B) any Debt of a Borrower or
Restricted Entity, as applicable, in an aggregate
principal amount (or in the case of a Hedge Agreement,
net termination value) in excess of $5,000,000, shall
not be paid when due, whether at maturity, by
acceleration or otherwise (after giving effect to any
period of grace specified in the instrument evidencing
or governing such Debt or other obligation);
(k) upon the consummation of the Merger and the
assumption by IGL, as successor by merger to FTX, of
all FTX's rights and obligations as a Guarantor
hereunder and under the FTX Guarantee Agreement, the
execution of the IGL Guarantee Agreement and the
satisfaction of the conditions precedent set forth in
the IGL Guarantee Agreement, default shall be made with
respect to any Debt of IGL if the effect of any such
default shall be to accelerate the maturity of such
Debt in an aggregate principal amount in excess of
$100,000,000;
(l) an ERISA Event shall have occurred with
respect to any Plan or Multiemployer Plan that, when
taken together with all other ERISA Events, reasonably
could be expected to result in liability of a Borrower
or Restricted Entity and any ERISA Affiliate thereof in
an aggregate amount exceeding $5,000,000 or requires
payments exceeding $5,000,000 in any year;
(m) one or more judgments for the payment of money
in an aggregate amount in excess of $5,000,000 shall be
rendered by a court or other tribunal against a
Borrower or Restricted Entity and shall remain
undischarged for a period of 45 consecutive days during
which execution of such judgment shall not have been
effectively stayed; or any action shall be legally
taken by a judgment creditor to levy upon assets or
Properties of such Borrower or Restricted Entity to
enforce any such judgment; or
(n) there shall have occurred a Change in Control;
then, and in any such event (other than an event with
respect to a Borrower, Restricted Entity or Guarantor
described in clause (h) or (i) above), and at any time
thereafter during the continuance of such event, the
Administrative Agent may, and at the request of the Required
Lenders shall, by written, telecopied, telex or telegraphic
notice to the Borrowers, Restricted Entities and Guarantors,
take one or more of the following actions at the same or
different times: (i) declare the Commitments under the
Tranches to be terminated, whereupon such Commitments shall
forthwith terminate or (ii) declare the Loans and all other
sums then owing by the Borrowers under the Loan Documents to
be forthwith due and payable, whereupon all the principal of
the Loans so declared to be due and payable, together with
accrued interest thereon and any unpaid accrued Fees and all
other liabilities of the Borrowers accrued hereunder and
under any other Loan Document, shall become and be
immediately due and payable without presentment, demand,
protest or other notice of any kind, all of which are hereby
expressly waived by the Borrowers, anything contained herein
to the contrary notwithstanding; provided, however, that
upon the occurrence of any event described in clause (h) or
(i) of this Section 7.01 as to which a Borrower or Guarantor
is the entity involved, the Commitments will forthwith
terminate and all sums then owing by the Borrowers to the
Lenders on the Loans or otherwise hereunder shall, without
any declaration or other action by any Lender, Issuing
Lender or Agent hereunder, be immediately due and payable
and the Commitments under the Tranches shall be immediately
terminated without presentment, demand, protest or other
notice of any kind, all of which are expressly waived by the
Borrowers, anything contained herein or in any other Loan
Document to the contrary notwithstanding; and provided
further that upon the consummation of the Merger and the
assumption by IGL, as successor by merger to FTX, of all
FTX's rights and obligations as a Guarantor hereunder and
under the FTX Guarantee Agreement, the execution of the IGL
Guarantee Agreement and the satisfaction of the conditions
precedent set forth in the IGL Guarantee Agreement, the IGL
Guarantee Agreement shall be deemed to amend and restate the
FTX Guarantee Agreement in its entirety and, with respect to
any Events of Default applicable to IGL hereunder, the
amendment or waiver of the same event of default or the
related cure rights or periods by the lenders under the IGL
Credit Facility shall be deemed to constitute on amendment
or waiver of the corresponding Event of Default or cure
right or period hereunder. Promptly following the making of
any such declaration described above, the Administrative
Agent shall give prompt notice thereof to the Borrowers and
Guarantors but failure to do so shall not impair the effect
of such declaration. Upon the occurrence of any Event of
Default, any security interests of the Guarantors in respect
of the Properties or assets of the Borrowers shall be
subordinated to the interests of the Lenders hereunder and
in the other Loan Documents.
ARTICLE VIII
Guarantees
All the rights and obligations of each of the
Guarantors in connection with the transactions contemplated
by this Agreement shall be set forth in the applicable
Guarantee Agreement, as shall be in effect from time to
time.
ARTICLE IX
The Agents
(a) For convenience of administration and to
expedite the transactions contemplated by this Agreement,
Chase is hereby appointed as Administrative Agent and
Documentary Agent for the Lenders under this Agreement.
Neither of the Agents shall have any duties or
responsibilities with respect hereto except those expressly
set forth herein or in the other Loan Documents. Each
Lender and Issuing Bank and its successors and permitted
assigns hereby irrevocably appoints and expressly authorizes
the Agents, without hereby limiting any implied authority,
to take such action as the Agents may deem appropriate on
its behalf and to exercise such powers under this Agreement
as are specifically delegated to such Person by the terms
hereof, together with such powers as are reasonably
incidental thereto. The Administrative Agent is hereby
expressly authorized by the Lenders and Issuing Banks,
without hereby limiting any implied authority, (a) to
receive on behalf of the Lenders and Issuing Banks all
payments of principal of and interest on the Loans and all
other amounts due to the Lenders and Issuing Banks
hereunder, and promptly to distribute to each Lender and
Issuing Bank its proper share of each payment so received;
(b) to give notice on behalf of the Lenders and Issuing
Banks to the Borrowers of any Event of Default specified in
this Agreement of which the Administrative Agent has actual
knowledge acquired in connection with its agency hereunder
or as directed by the Required Lenders; and (c) to
distribute to each Lender and Issuing Bank copies of all
notices, financial statements and other materials delivered
by the Borrowers pursuant to this Agreement as received by
the Administrative Agent.
(b) Neither of the Agents or any of their
respective directors, officers, agents or employees shall be
liable as such for any action taken or omitted to be taken
by any of them except for its or his own gross negligence or
wilful misconduct, or be responsible for any statement,
warranty or representation herein or the contents of any
document delivered in connection herewith, or be required to
ascertain or to make any inquiry concerning the performance
or observance by the Borrowers or any other party of any of
the terms, conditions, covenants or agreements contained in
any Loan Document. The Agents shall not be responsible to
the Lenders or the Issuing Banks for the due execution,
genuineness, validity, enforceability or effectiveness of
this Agreement or any other Loan Documents or other
instruments or agreements. The Agents shall in all cases be
fully protected in acting, or refraining from acting, in
accordance with written instructions signed by the Required
Lenders and, except as otherwise specifically provided
herein, such instructions and any action or inaction
pursuant thereto shall be binding on each Lender and its
successors or permitted assigns. Each Agent shall, in the
absence of knowledge to the contrary, be entitled to rely on
any instrument or document believed by it in good faith to
be genuine and correct and to have been signed or sent by
the proper Person or Persons. Neither of the Agents nor any
of their respective directors, officers, employees or agents
shall have any responsibility to the Borrowers or any other
party on account of the failure of or delay in performance
or breach by any Lender or Issuing Bank of any of its
obligations hereunder or to any Lender or Issuing Bank on
account of the failure of or delay in performance or breach
by any other Lender or Issuing Bank or the Borrowers or any
other party of any of their respective obligations hereunder
or under any other Loan Document or in connection herewith
or therewith. Each of the Agents may execute any and all
duties hereunder by or through agents or employees and shall
be entitled to rely upon the advice of legal counsel
selected by it with respect to all matters arising hereunder
and shall not be liable for any action taken or suffered in
good faith by it in accordance with the advice of such
counsel. Each of the Lenders and Issuing Banks hereby
acknowledge that none of the Agents shall be under any duty
to take any discretionary action permitted to be taken by it
pursuant to the provisions of this Agreement unless it shall
be requested in writing to do so by the Required Lenders.
(c) To the extent that any Agent shall not be
reimbursed by the Borrowers for any costs, liabilities or
expenses incurred in such capacity, each Lender agrees (i)
to reimburse the Agents, on demand (in the amount of its
Applicable Percentage hereunder) of any expenses incurred
for the benefit of the Lenders by the Agents, including
counsel fees and compensation of agents and employees paid
for services rendered on behalf of the Lenders and (ii) to
indemnify and hold harmless each Agent and any of its
directors, officers, employees or agents, on demand, in the
amount of such Applicable Percentage, from and against any
and all liabilities, taxes, 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 it in its
capacity as Agent or any of them in any way relating to or
arising out of this Agreement or any other Loan Document or
any action taken or omitted by it or any of them under this
Agreement or any other Loan Document; provided, however,
that no Lender shall be liable to an Agent for any portion
of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or
disbursements resulting from the gross negligence or wilful
misconduct of such Agent or of its directors, officers,
employees or agents.
(d) With respect to the Loans made by it
hereunder or the Letters of Credit issued by it hereunder,
each Agent, in its individual capacity and not as Agent,
shall have the same rights and powers as any other Lender or
Issuing Bank, as applicable, and may exercise the same as
though it were not an Agent, and the Agents and their
Affiliates may accept deposits from, lend money to and
generally engage in any kind of business with the Borrowers
or any of their respective Subsidiaries or other Affiliate
thereof as if it were not an Agent.
(e) Subject to the appointment and acceptance of
a successor Agent as provided below, any Agent may resign at
any time by giving written notice thereof to the Lenders,
the Issuing Banks and the Borrowers. Upon any such
resignation, the Required Lenders shall have the right to
appoint, and the Borrowers shall have the right to approve
(such approval not to be unreasonably withheld or delayed) a
successor Administrative Agent or Documentary Agent, as the
case may be. If no successor Administrative Agent or
Documentary Agent, as the case may be, shall have been so
appointed and approved and shall have accepted such
appointment, within 30 days after the retiring Agent's
giving of notice of resignation, then the retiring Person
may, on behalf of the Lenders and the Issuing Banks, appoint
a successor Administrative Agent or Documentary Agent, as
the case may be, which shall be a Lender with an office in
New York, New York, having a combined capital and surplus of
at least $500,000,000 or an Affiliate of any such Lender.
Upon the acceptance of any appointment as Administrative
Agent or Documentary Agent hereunder by a successor
Administrative Agent or Documentary Agent, as the case may
be, such successor Administrative Agent or Documentary Agent
shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Agent,
and the retiring Agent shall from and after such date be
discharged from its duties and obligations hereunder. After
any such retiring Agent's resignation hereunder as
Administrative Agent or Documentary Agent, as applicable,
the provisions of this Article IX and Section 10.04 shall
inure to its benefit as to any actions taken or omitted to
be taken by it while it was acting as the Administrative
Agent or Documentary Agent, as applicable.
(f) The Administrative Agent and the Documentary
Agent shall be responsible for supervising the preparation,
execution and delivery of this Agreement and the other
agreements and instruments contemplated hereby, any
amendment or modification thereto and the closing of the
transactions contemplated hereby and thereby.
(g) The obligations of the Administrative Agent
and the Documentary Agent shall be separate and several and
neither of them shall be responsible or liable for the acts
or omissions of the other, except, to the extent that any
such Agent serves in more than one agent capacity, such
Agent shall be responsible for the acts and omissions
relating to each such agency function.
(h) Each Lender and Issuing Bank acknowledges
that it has, independently and without reliance upon the
Agents or any other Lender or Issuing Banks 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 and Issuing Bank also acknowledges
that it will, independently and without reliance upon the
Agents or any other Lender or Issuing Banks and based on
such documents and information as it shall from time to time
deem appropriate, continue to make its own decisions in
taking or not taking action under or based upon this
Agreement or any other Loan Document, any related agreement
or any document furnished hereunder or thereunder.
ARTICLE X
Miscellaneous
SECTION 10.01. Notices. Notices and other
communications provided for herein shall be in writing and
shall be delivered by hand or overnight or same day courier
service or mailed or sent by telex, telecopy, graphic
scanning or other telegraphic communications equipment of
the sending party to the appropriate party's address set
forth below:
(a) if to FMPOC, to it at:
0000 Xxxxxxx Xxxxxx
Xxx Xxxxxxx, XX 00000
Attention of: Xxxx X. Xxxxx
Telecopy No.: (000) 000-0000;
(b) if to Circle C, to it at:
0000 Xxxxxxx Xxxxxx
Xxx Xxxxxxx, XX 00000
Attention of: Xxxx X. Xxxxx
Telecopy No.: (000) 000-0000;
(c) if to FMPO, to it at:
0000 Xxxxxxx Xxxxxx
Xxx Xxxxxxx, XX 00000
Attention of: Xxxx X. Xxxxx
Telecopy No.: (000) 000-0000;
(d) if to IGL, to it at:
0000 Xxxxxxx Xxxx
Xxxxxxxxxx, XX 00000
Attention of: Xxxx Xxxxxxxx, Assistant
Treasurer
Telecopy No.: (000) 000-0000;
with a copy to:
Sidley & Austin
Xxx Xxxxx Xxxxxxxx Xxxxx
Xxxxxxx, XX 00000
Attention of: Xxxx X. Xxxxxxxx
Telecopy No.: (000) 000-0000
(e) if to the Administrative Agent or the
Documentary Agent to:
The Chase Manhattan Bank
Loan and Agency Services Group
One Chase Xxxxxxxxx Xxxxx
0xx Xxxxx
Xxx Xxxx, XX 00000
Attention of: Xxxxx Xxxxxxx
Telecopy No.: (000) 000-0000;
with a copy to:
The Chase Manhattan Bank
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Attention of: Xxxxx Xxxxxx
Telecopy No.: (000) 000-0000; and
(f) if to any Lender, to it at its address (or
telecopy number) set forth in its Administrative
Questionnaire.
All notices and other communications given to any party
hereto in accordance with the provisions of this Agreement
shall be deemed to have been given on the date of receipt if
hand delivered or delivered by any telecopy, telegraphic or
telex communications equipment or three days after being
sent by registered or certified mail, postage prepaid,
return receipt requested, in each case addressed to such
party as provided in this Section 10.01 or in accordance
with the latest unrevoked direction from such party.
SECTION 10.02. Survival of Agreement. All
covenants, agreements, representations and warranties made
by the Borrowers and FMPO, as a Restricted Entity, herein
and by each of the Guarantors in the applicable Guarantee
Agreement and in the certificates or other instruments
prepared or delivered in connection with this Agreement or
any other Loan Document shall be considered to have been
relied upon by the Lenders, the Issuing Banks and the Agents
and shall survive the making by the Lenders of the Loans or
the issuing of Letters of Credit by the Issuing Banks
regardless of any investigation made by the Lenders or
Issuing Banks, as applicable, or on their behalf, and shall
continue in full force and effect as long as the principal
of or any accrued interest on any Loan, L/C Disbursement,
Fee or other fee or amount payable under the Loan Documents
(other than contingent indemnification obligations) is
outstanding and unpaid and so long as the Commitments and
the outstanding Letters of Credit issued hereunder have not
been terminated or have not expired.
SECTION 10.03. Successors and Assigns;
Participation; Purchasing Lenders. (a) This Agreement
shall be binding upon and inure to the benefit of the
Borrowers, the Lenders, the Issuing Banks, the Agents and
their respective successors and assigns, except that neither
of the Borrowers may assign, delegate or transfer any of its
rights or obligations under this Agreement without the prior
written consent of each Lender and the other Borrower,
except in connection with the Merger. Any Lender may at any
time pledge or assign all or any portion of its rights under
this Agreement to a Federal Reserve Bank to secure
extensions of credit by such Federal Reserve Bank to such
Lender; provided that no such pledge or assignment shall
release a Lender from any of its obligations hereunder or
substitute any such Federal Reserve Bank for such Lender as
a party hereto.
(b) Any Lender may, in accordance with applicable
law, at any time sell to one or more banks or other entities
("Participants") participating interests in all or a portion
of any Loan owing to such Lender, any Commitment of such
Lender or any other interest of such Lender hereunder;
provided, however, that any such participating interest
shall include a pro rata portion of each Tranche. In the
event of any such sale by a Lender of participating
interests to a Participant, such Lender's obligations under
this Agreement to the other parties to this Agreement shall
remain unchanged, such Lender shall remain solely
responsible for the performance thereof and the Borrowers,
the Issuing Banks and the Agents shall continue to deal
solely and directly with such Lender in connection with such
Lender's rights and obligations under this Agreement. The
Borrowers agree that if amounts outstanding under this
Agreement are due and unpaid, or shall have been declared
due or shall have become due and payable upon the occurrence
of an Event of Default, each Participant shall be deemed to
have the right of setoff in respect of its participating
interest in amounts owing under this Agreement to the same
extent as if the amount of its participating interest were
owing directly to it as a Lender under this Agreement;
provided that such right of setoff shall be subject to the
obligation of such Participant to share with the Lenders,
and the Lenders agree to share with such Participant, as
provided in Section 2.14. The Borrowers also agree that
each Participant shall be entitled to the benefits of
Sections 2.10, 2.11, 2.12, 2.14, 2.16 and 10.05 with respect
to its participation in the Commitments and the Loans
outstanding from time to time as if it were a Lender;
provided that no Participant shall be entitled to receive
any greater payment pursuant to such Sections than the
transferor Lender would have been entitled to receive in
respect of the amount of the participation transferred by
such transferor Lender to such Participant unless such
participation shall have been made at a time when the
circumstances giving rise to such greater payment did not
exist; and provided that the voting rights of any
Participant would be limited to amendments, modifications or
waivers decreasing any fees payable hereunder or the amount
of principal of or the rate at which interest is payable on
the Loans, extending any scheduled principal payment date or
date fixed for the payment of interest on the Loans or
changing or extending the Commitments.
(c) Any Lender may, in accordance with applicable
law and subject to Section 10.03(h), at any time assign all
or any part of its rights and obligations under this
Agreement (including all or a portion of its Commitment and
the Loans at the time owing to it and its participation in
Letters of Credit) (I) to any Lender or any Affiliate
thereof, without the Borrowers' consent, or (II) to one or
more additional banks or financial institutions (any such
entity referred to in clause (I) or (II) being a "Purchasing
Lender") with the consent of the Administrative Agent, the
Borrowers and the Guarantors (and in the case of an
assignment of all or a portion of a Revolving Credit
Commitment or any Lender's obligations in respect of the L/C
Exposure, the Issuing Banks), such consent not to be
unreasonably withheld (it being understood that the
Borrowers and Issuing Banks may withhold their respective
consents to a Purchasing Lender (i) which is not a
commercial bank or savings and loan institution or (ii)
which would, as of the effective date of such assignment, be
entitled to claim compensation under Section 2.11 which the
transferor Lender would not be entitled to claim as of such
date), pursuant to a Commitment Transfer Supplement in the
form of Exhibit B, executed by such Purchasing Lender and
such transferor Lender (and, in the case of a Purchasing
Lender that is not then a Lender or an Affiliate thereof, by
the Borrowers and the Administrative Agent), and delivered
for its recording in the Register to the Administrative
Agent, together with the registration and processing fee
required by Section 10.03(e) and an Administrative
Questionnaire for the Purchasing Lender if it is not already
a Lender. A proportionate interest in the Loans and
Commitments of each Tranche must be assigned. Upon such
execution, delivery and recording (and, if required, consent
of the Borrowers and the Administrative Agent), from and
after the Transfer Effective Date determined pursuant to
such Commitment Transfer Supplement (which shall be at least
five days after the execution and delivery thereof), (x) the
Purchasing Lender thereunder shall (if not already a party
hereto) be a party hereto and have the rights and
obligations of a Lender hereunder with a Commitment as set
forth in such Commitment Transfer Supplement, and (y) the
transferor Lender thereunder shall, to the extent assigned
by such Commitment Transfer Supplement, be released from its
obligations under this Agreement (and, in the case of a
Commitment Transfer Supplement covering all or the remaining
portion of a transferor Lender's rights and obligations
under this Agreement, such transferor Lender shall cease to
be a party hereto). Such Commitment Transfer Supplement
shall be deemed to amend this Agreement (including Schedule
II hereto) to the extent, and only to the extent, necessary
to reflect the addition of such Purchasing Lender (if not
already a party hereto) and the resulting adjustment of
Applicable Percentages arising from the purchase by such
Purchasing Lender of all or a portion of the rights and
obligations of such transferor Lender under this Agreement.
(d) The Administrative Agent, acting solely for
this purpose as an agent of the Borrowers, shall maintain at
one of its offices in The City of New York a copy of each
Commitment Transfer Supplement delivered to it and a
register (the "Register") for the recordation of the names
and addresses of the Lenders and the Commitment of, and
principal amount of the Loans owing to, each Lender from
time to time and the names and addresses of the Issuing
Banks and the L/C Exposure of, and L/C Disbursements made
thereby owing to, each Issuing Bank. The entries in the
Register shall be conclusive, in the absence of manifest
error, and the parties hereto may treat each Person whose
name is recorded in the Register as a Lender or Issuing
Bank, as applicable, for all purposes of this Agreement.
The Register shall be available for inspection by the
parties hereto at any reasonable time and from time to time
upon reasonable prior notice.
(e) Upon its receipt of a Commitment Transfer
Supplement executed by a transferor Lender and a Purchasing
Lender (and, in the case of a Purchasing Lender that is not
then a Lender or an Affiliate thereof, by the Borrowers and
the Administrative Agent) together with payment to the
Administrative Agent of a registration and processing fee of
$3,500, the Administrative Agent shall (i) promptly accept
such Commitment Transfer Supplement and (ii) on the Transfer
Effective Date determined pursuant thereto record the
information contained therein in the Register and give
notice of such acceptance and recordation to the Lenders,
the Issuing Banks and the Borrowers.
(f) Subject to Section 10.15, the Borrowers
authorize each Lender and Issuing Bank to disclose to any
Participant or Purchasing Lender (each, a "Transferee") and
any prospective Transferee any and all financial and other
information in such Lender's or Issuing Bank's, as
applicable, possession concerning the Borrowers and their
respective affiliates which has been delivered to such
Lender or Issuing Bank, as applicable, by or on behalf of
the Borrowers pursuant to this Agreement or which has been
delivered to such Lender or Issuing Bank, as applicable, by
or on behalf of the Borrowers in connection with such
Lender's or Issuing Bank's, as applicable, credit evaluation
of the Borrowers and their respective Affiliates prior to
becoming a party to this Agreement.
(g) If, pursuant to this Section 10.03, any
interest in this Agreement is transferred to any Transferee
which is organized under the laws of any jurisdiction other
than the United States or any State thereof, the transferor
Lender shall immediately notify the Administrative Agent of
such transfer, describing the terms thereof and indicating
the identity and country of residence of each Transferee.
Such transferor Lender or Transferee shall indemnify and
hold harmless the Borrowers and the Administrative Agent
from and against any tax, interest, penalty or other expense
that the Borrowers and the Administrative Agent may incur as
a consequence of any failure to withhold United States taxes
applicable because of any transfer or participation
arrangement that is not fully disclosed to them as required
hereunder.
(h) By executing and delivering a Commitment
Transfer Supplement, the transferor Lender thereunder and
the Purchasing Lender thereunder shall be deemed to confirm
to and agree with each other and the other parties hereto as
follows: (i) such transferor Lender warrants that it is the
legal and beneficial owner of the interest being assigned
thereby free and clear of any adverse claim and that its
Commitment, and the outstanding balance of its Loans, in
each case without giving effect to assignments thereof which
have not become effective, are as set forth in such
Commitment Transfer Supplement; (ii) except as set forth in
(i) above, such transferor Lender makes no representation or
warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in
connection with this Agreement, or the execution, legality,
validity, enforceability, genuineness, sufficiency or value
of this Agreement, the Guarantee Agreements, any other Loan
Document or any other instrument or document furnished
pursuant hereto, or the financial condition of the
Borrowers, the Guarantors or any of their respective
Subsidiaries or the performance or observance by the
Borrowers, the Guarantors or any of their respective
Subsidiaries of any of their respective obligations under
this Agreement, the Guarantee Agreements, any other Loan
Document or any other instrument or document furnished
pursuant hereto; (iii) such Purchasing Lender represents and
warrants that it is legally authorized to enter into such
Commitment Transfer Supplement; (iv) such Purchasing Lender
confirms that it has received a copy of this Agreement,
together with copies of the most recent financial
statements, if any, delivered pursuant to Section 5.01, the
Guarantee Agreements and such other documents and
information as it has deemed appropriate to make its own
credit analysis and decision to enter into such Commitment
Transfer Supplement; (v) such Purchasing Lender will
independently and without reliance upon the Agents, such
transferor Lender or any other Lender and based on such
documents and information as it shall deem appropriate at
the time, continue to make its own credit decisions in
taking or not taking action under this Agreement; (vi) such
Purchasing Lender appoints and authorizes the Agents to take
such action as agent on its behalf and to exercise such
respective powers under this Agreement and the other Loan
Documents as are delegated to the Agents by the terms
hereof, together with such powers as are reasonably
incidental thereto; and (vii) such Purchasing Lender agrees
that it will perform in accordance with their terms all the
obligations which by the terms of this Agreement are
required to be performed by it as a Lender.
SECTION 10.04. Expenses of the Lenders;
Indemnity. (a) The Borrowers agree, on a joint and several
basis, to pay all reasonable out-of-pocket expenses
reasonably incurred by the Agents in connection with the
consolidation of the Credits and the preparation, execution,
delivery and administration of this Agreement and the other
Loan Documents or with any amendments, modifications or
waivers of the provisions hereof or thereof (whether or not
the transactions hereby contemplated shall be consummated)
or reasonably incurred by the Agents or any Lender or
Issuing Bank in connection with the enforcement or
protection of their rights in connection with this Agreement
and the other Loan Documents or with the Loans made
hereunder or the Letters of Credit issued hereunder, as
applicable (whether through negotiations, legal proceedings
or otherwise), including, but not limited to, the reasonable
fees and disbursements of Cravath, Swaine & Xxxxx, special
counsel for the Agents, and, in connection with such
enforcement or protection, the reasonable fees and
disbursements of other counsel for any Lender. The
Borrowers further agree that they shall indemnify, on a
joint and several basis, the Lenders, the Issuing Banks and
the Agents from and hold them harmless against any
documentary taxes, assessments or charges made by any
Governmental Authority by reason of the execution and
delivery of or in connection with the performance of this
Agreement or any of the other Loan Documents. Further, the
Borrowers agree to pay, and to protect, indemnify and save
harmless, on a joint and several basis, each Lender, each
Issuing Bank, each Agent and each of their respective
officers, directors, stockholders, employees, agents and
servants from and against, any and all losses, liabilities
(including liabilities for penalties), actions, suits,
judgments, demands, damages, costs or expenses (including,
without limitation, reasonable fees, disbursements and other
charges of counsel) in connection with any investigative,
administrative or judicial proceeding, whether or not such
Lender, Issuing Bank or Agent shall be designated a party
thereto of any nature arising from or relating to (i) the
execution or delivery of this Agreement or any other Loan
Document or any agreement or instrument contemplated
thereby, the performance by the parties thereto of their
respective obligations thereunder or the consummation of the
transactions contemplated hereby and thereby (including the
Merger) or (ii) the use of the proceeds of the Loans or the
issuance of Letters of Credit; and the Borrowers also agree
to pay, and to protect, indemnify and save harmless, on a
joint and several basis, each Lender, each Issuing Bank,
each Agent and each of their respective officers, directors,
stockholders, employees, agents and servants from and
against, any and all losses, liabilities (including
liabilities for penalties), actions, suits, judgments,
demands, damages, costs or expenses (including, without
limitation, reasonable fees, disbursements and other charges
of counsel in connection with any investigative,
administrative or judicial proceeding, whether or not such
Lender, Issuing Bank or Agent shall be designated a party
thereto) of any nature arising from or relating to any
actual or alleged presence or Release or threatened Release
of Hazardous Materials on any of the Properties, or any
Environmental Claim related in any way to the Borrowers or
their respective Subsidiaries; provided that any such
indemnity referred to in this sentence shall not, as to any
indemnified Person, be available to the extent that such
losses, liabilities, actions, suits, judgments, demands,
costs or expenses are determined by a court of competent
jurisdiction by final and nonappealable judgment to have
resulted from the gross negligence or wilful misconduct of
such indemnified Person. If any action, suit or proceeding
arising from any of the foregoing is brought against any
Lender, Issuing Bank, Agent or other Person indemnified or
intended to be indemnified pursuant to this Section 10.04,
the Borrowers, to the extent and in the manner directed by
such indemnified party, shall resist and defend such action,
suit or proceeding or cause the same to be resisted and
defended by counsel designated by the Borrowers (which
counsel shall be satisfactory to such Lender, Issuing Bank,
Agent or other Person indemnified or intended to be
indemnified). If the Borrowers shall fail to do any act or
thing which it has covenanted to do hereunder or any
representation or warranty on the part of the Borrowers
contained in this Agreement shall be breached, any Lender,
Issuing Bank or Agent may (but shall not be obligated to) do
the same or cause it to be done or remedy any such breach,
and may expend its funds for such purpose. Any and all
amounts so expended by any Lender, Issuing Bank or Agent
shall be repayable to it by the Borrowers immediately upon
such Lender's or such Agent's demand therefor.
(b) The provisions of this Section 10.04 shall
remain operative and in full force and effect regardless of
the expiration of the term of this Agreement, the
consummation of the transactions contemplated hereby or
thereby, the repayment of any of the Loans or L/C
Disbursements, the termination or expiration of the Letters
of Credit issued hereunder, the invalidity or
unenforceability of any term or provision of this Agreement
or any other Loan Document, or any investigation made by or
on behalf of any Lender, Issuing Bank or any Agent. All
amounts due under this Section 10.04 shall be payable on
written demand therefor.
SECTION 10.05. Right of Setoff. If an Event of
Default shall have occurred and be continuing and the Loans
shall have been accelerated or any Lender shall have
requested the Administrative Agent to declare the Loans
immediately due and payable pursuant to Article VII, then
each Lender and Issuing Bank is hereby authorized at any
time and from time to time, to the fullest extent permitted
by law, to set off and apply any and all deposits (general
or special, time or demand, provisional or final) at any
time held and other indebtedness at any time owing by such
Lender or Issuing Bank to or for the credit or the account
of the Borrowers against any of and all the obligations of
the Borrowers now or hereafter existing under this
Agreement, irrespective of whether or not such Lender or
Issuing Bank shall have made any demand under this Agreement
and although such obligations may be unmatured. Each Lender
and Issuing Bank agrees promptly to notify the Borrowers and
the Guarantors after any such setoff and application made by
such Lender, but the failure to give such notice shall not
affect the validity of such setoff and application. The
rights of each Lender and Issuing Bank under this Section
10.05 are in addition to other rights and remedies
(including, without limitation, other rights of setoff)
which such Lender may have.
SECTION 10.06. APPLICABLE LAW. THIS AGREEMENT
SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE
LAWS OF THE STATE OF NEW YORK.
SECTION 10.07. Waivers; Amendments. (a) No
failure or delay of any Lender, Issuing Bank or Agent in
exercising any power or right hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of
any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the
exercise of any other right or power. The rights and
remedies of the Lenders, the Issuing Banks and the Agents
hereunder and under the other documents and agreements
entered into in connection herewith are cumulative and not
exclusive of any rights or remedies which they would
otherwise have. No waiver of any provision of this
Agreement, any other Loan Document or any other such
document or agreement or consent to any departure by the
Borrowers therefrom shall in any event be effective unless
the same shall be authorized as provided in paragraph (b)
below, and then such waiver or consent shall be effective
only in the specific instance and for the purpose for which
given; provided, however, that upon the consummation of the
Merger and the assumption by IGL, as successor by merger to
FTX, of all FTX's rights and obligations as a Guarantor
hereunder and under the FTX Guarantee Agreement, the
execution of the IGL Guarantee Agreement and the
satisfaction of the conditions precedent set forth in the
IGL Credit Agreement, the IGL Guarantee Agreement shall be
deemed to amend and restate the FTX Guarantee Agreement in
its entirety without the requirement of any waiver or
consent pursuant hereto. No notice or demand on the
Borrowers in any case shall entitle the Borrowers to any
other or further notice or demand in similar or other
circumstances.
(b) This Agreement (including any provision
hereof) may not be waived, amended or modified except
pursuant to an agreement or agreements in writing entered
into by the Borrowers and the Required Lenders (and a copy
of any such waiver, amendment or modification shall be
promptly delivered by the Administrative Agent to each
Guarantor); provided, however, that no such agreement shall
(i) change the principal amount of, or extend or advance the
maturity of or any date for the payment (other than pursuant
to Section 2.07(c), which may be amended by the Required
Lenders) of any principal of or interest on, any Loan
(including, without limitation, any such payment pursuant to
Section 2.07(a) or paragraph (a) or (b) of Section 2.09) or
any date for reimbursement of an L/C Disbursement, or waive
or excuse any such payment or any part thereof, or change
the rate of interest on any Loan or L/C Disbursement,
without the written consent of each holder affected thereby
and each Guarantor, which consent shall not be unreasonably
withheld (it being agreed and understood that it shall be
deemed reasonable to withhold such consent if a Guarantor,
in its sole discretion exercised in good faith, deems its
rights or interests in any property or assets of FMPO or
either Borrower will be materially and adversely affected),
(ii) change or extend the Commitment of any Lender without
the written consent of such Lender, or change any fees to be
paid to any Lender, Issuing Bank or Agent hereunder without
the written consent of such Lender, Issuing Bank or Agent,
as applicable, or (iii) amend or modify the provisions of
this Section 10.07, Sections 2.07 through 2.15 or
Section 10.04 or the definition of "Required Lenders",
without the written consent of each Lender; and provided
further that no such agreement shall amend, modify or
otherwise affect the rights or duties of an Agent hereunder
without the written consent of such Agent; and provided
further that, notwithstanding any of the foregoing, upon the
consummation of the Merger and the assumption by IGL, as
successor by merger to FTX, of all FTX's rights and
obligations as a Guarantor hereunder and under the FTX
Guarantee Agreement, the execution of the IGL Guarantee
Agreement and the satisfaction of the conditions precedent
set forth in the IGL Guarantee Agreement, the IGL Guarantee
Agreement shall be deemed to amend and restate the FTX
Guarantee Agreement in its entirety and any of the Events of
Default related to IGL, as a Guarantor, set forth in Section
7.01 shall be deemed to be amended or waived in the manner
prescribed by Section 7.01.
SECTION 10.08. Severability. In the event any
one or more of the provisions contained in this Agreement
should be held invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the
remaining provisions contained herein or therein shall not
in any way be affected or impaired thereby. The parties
shall endeavor in good-faith negotiations to replace the
invalid, illegal or unenforceable provisions with valid
provisions the economic effect of which comes as close as
possible to that of the invalid, illegal or unenforceable
provisions.
SECTION 10.09. Counterparts. This Agreement may
be executed in two or more counterparts, each of which shall
constitute an original but all of which when taken together
shall constitute but one contract, and shall become
effective when copies hereof which, when taken together,
bear the signatures of each of the parties hereto shall be
delivered or mailed to the Administrative Agent and the
Borrowers.
SECTION 10.10. Headings. Article and Section
headings and the table of contents included herein are for
convenience of reference only and are not to affect the
construction of, or to be taken into consideration in
interpreting, this Agreement.
SECTION 10.11. Entire Agreement. This Agreement,
the other Loan Documents and the exhibits and schedules
hereto contain the entire agreement among the parties hereto
with respect to the Loans and the related transactions. Any
previous agreement among the parties with respect to the
subject matter hereof is superseded by this Agreement and
the other Loan Documents. Nothing in this Agreement or in
the other Loan Documents, expressed or implied, is intended
to confer upon any party other than the parties hereto any
rights, remedies, obligations or liabilities under or by
reason of this Agreement or the other Loan Documents.
SECTION 10.12. WAIVER OF JURY TRIAL, ETC.
(A) EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR
INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS
AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS. EACH PARTY
HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B)
ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN
DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION 10.12.
(b) Except as prohibited by law, each party
hereto hereby waives any right it may have to claim or
recover in any litigation referred to in paragraph (a) of
this Section 10.12 any special, indirect, exemplary,
punitive or consequential damages or any damages other than,
or in addition to, actual damages.
(c) Each party hereto (i) certifies that no
representative, agent or attorney of any Lender has
represented, expressly or otherwise, that such Lender would
not, in the event of litigation, seek to enforce the
foregoing waivers and (ii) acknowledges that it has been
induced to enter into this Agreement or any other document,
as applicable, by, among other things, the mutual waivers
and certifications herein.
SECTION 10.13. Interest Rate Limitation.
Notwithstanding anything herein to the contrary, if at any
time the interest rate applicable to any Loan or L/C
Disbursement, together with all fees, charges and other
amounts which are treated as interest on such Loan or L/C
Disbursement, as applicable, under applicable law
(collectively, the "Charges"), as provided for herein or in
any other document executed in connection herewith, or
otherwise contracted for, charged, received, taken or
reserved by any Lender or Issuing Bank, as applicable, shall
exceed the maximum lawful rate (the "Maximum Rate") which
may be contracted for, charged, taken, received or reserved
by such Lender or Issuing Bank, as applicable, in accordance
with applicable law, the rate of interest in respect of such
Loan or L/C Disbursement, as applicable, hereunder, together
with all Charges payable to such Lender or Issuing Bank, as
applicable, shall be limited to the Maximum Rate and, to the
extent lawful, the interest and Charges that would have been
payable in respect of such Loan or L/C Disbursement, as
applicable, but were not payable as a result of the
operation of this Section 10.13 shall be cumulated and the
interest and Charges payable to such Lender or Issuing Bank,
as applicable, in respect of other Loans or L/C
Disbursement, as applicable, or periods shall be increased
(but not above the Maximum Rate therefor) until such
cumulated amount, together with interest thereon at the
Federal Funds Effective Rate to the date of repayment, shall
have been received by such Lender or Issuing Bank, as
applicable.
SECTION 10.14. JURISDICTION; CONSENT TO SERVICE
OF PROCESS. (A) EACH BORROWER HEREBY IRREVOCABLY AND
UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE
NONEXCLUSIVE JURISDICTION OF ANY NEW YORK STATE COURT OR
FEDERAL COURT OF THE UNITED STATES OF AMERICA SITTING IN NEW
YORK CITY, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, OR FOR
RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE
PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES
THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING
MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE OR, TO
THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT. EACH OF
THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH
ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED
IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY
OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT
SHALL AFFECT ANY RIGHT THAT ANY LENDER OR AGENT MAY
OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO
THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY
AGAINST ANY BORROWER OR ITS PROPERTIES IN THE COURTS OF ANY
JURISDICTION.
(B) EACH BORROWER HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY
AND EFFECTIVELY DO SO, ANY OBJECTION WHICH IT MAY NOW OR
HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR
THE TRANSACTIONS CONTEMPLATED HEREBY IN ANY NEW YORK STATE
OR FEDERAL COURT. EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW,
THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF
SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.
(C) EACH PARTY TO THIS AGREEMENT IRREVOCABLY
CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR
NOTICES IN SECTION 10.01. NOTHING IN THIS AGREEMENT WILL
AFFECT THE RIGHT OF ANY PARTY TO THIS AGREEMENT TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.
SECTION 10.15. Confidentiality. Each Lender and
Issuing Bank agrees (which agreement shall survive the
termination of this Agreement) that financial information,
information from the Borrowers', FMPO's and their respective
Subsidiaries' books and records, information concerning the
Borrowers', FMPO's and their respective Subsidiaries' trade
secrets and patents and any other information received from
the Borrowers and their respective Subsidiaries hereunder
shall be treated as confidential by such Lender or Issuing
Bank, as applicable, and each Lender and Issuing Bank agrees
to use their respective best efforts to ensure that such
information is not published, disclosed or otherwise
divulged to anyone other than employees or officers of such
Lender or Issuing Bank, as applicable, and its counsel and
agents; provided that it is understood that the foregoing
shall not apply to:
(i) disclosure made with the prior written
authorization of the relevant Borrower or FMPO, as
applicable;
(ii) disclosure of information (other than that
received from the relevant Borrower, FMPO and their
respective Subsidiaries prior to or under this
Agreement) already known by, or in the possession of,
such Lender or Issuing Bank, as applicable, without
restrictions on the disclosure thereof at the time such
information is supplied to such Lender or Issuing Bank,
as applicable, by the relevant Borrower, FMPO or their
respective Subsidiaries hereunder;
(iii) disclosure of information which is required
by applicable law or to a governmental agency having
supervisory or regulatory authority over any party
hereto;
(iv) disclosure of information in connection with
any suit, action or proceeding in connection with the
enforcement of rights hereunder or under the other Loan
Documents or in connection with the transactions
contemplated hereby or thereby;
(v) disclosure to any bank (or other financial
institution) which may acquire a participation or other
interest in the Loans or L/C Disbursements or rights of
any Lender or Issuing Bank hereunder; provided that
such bank (or other financial institution) agrees to
maintain any such information to be received in
accordance with the provisions of this Section 10.15;
(vi) disclosure by any party hereto to any other
party hereto or their counsel or agents;
(vii) disclosure by any party hereto to any entity,
or to any Subsidiary of such an entity, which owns,
directly or indirectly, more than 50% of the voting
stock of such party, or to any Subsidiary of such an
entity; or
(viii) disclosure of information that prior to such
disclosure has become public knowledge through no
violation of this Agreement.
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.
FM PROPERTIES OPERATING CO.,
by FM PROPERTIES INC., as a
general partner,
by/s/ Xxxxxx X. Xxxxx
-------------------
Name: Xxxxxx X. Xxxxx
Title: Treasurer
by FMPO L.L.C., as a general
partner,
by FM PROPERTIES INC., as sole
member thereof,
by /s/ Xxxxxx X. Xxxxx
-------------------
Name: Xxxxxx X.Xxxxx
Title: Treasurer
CIRCLE L LAND CORP.,
by/s/ Xxxxxxx X. Xxxxxxxxx III
----------------------------
Name: Xxxxxxx X. Xxxxxxxxx III
Title: President
FM PROPERTIES INC.,
by/s/ Xxxxxx X. Xxxxx
-------------------
Name: Xxxxxx X. Xxxxx
Title:President
THE CHASE MANHATTAN BANK,
individually and as
Administrative Agent and
Documentary Agent,
by/s/ Xxxxx X. Xxxxxx
-------------------
Name: Xxxxx X.Xxxxxx
Title: Vice President
TEXAS COMMERCE BANK NATIONAL
ASSOCIATION,
by/s/ Xxxx Xxxxxx
---------------
Name: Xxxx Xxxxxx
Title: Sr. Vice President
SCHEDULE I
APPLICABLE MARGIN FOR LOANS
COMMITMENT FEE PERCENTAGE
L/C PARTICIPATION FEES PERCENTAGE
(a) Prior to the Merger, (i) the Applicable
Margin for each Loan, as requested by the applicable
Borrower, shall be as follows:
Rate Applicable Margin
LIBO Rate Loans: 1% per annum
Reference Rate Loans: 0% per annum; and
(ii) the Commitment Fee Percentage shall be a rate
per annum equal to 0.375%.
(b) Upon the consummation of the Merger and the
assumption by IGL, as successor by merger to FTX, of all
FTX's rights and obligations as a Guarantor hereunder and
under the FTX Guarantee Agreement, (i) the Applicable Margin
for LIBO Rate Loans shall be the sum of (A) the spread over
the London Interbank Offered Rate (as defined in the IGL
Credit Facility) payable (or to be payable) by IGL for
applicable loans made thereunder (such applicable spreads to
be calculated pursuant to the IGL Credit Facility with
reference to the pricing schedule contained in the IGL
Credit Facility, which is set forth below in its current
form as of the date hereof), (B) 0.125% per annum and (C)
the facility fee percentage payable (or to be payable) by
IGL under the IGL Credit Facility, (ii) the Applicable
Margin for Reference Rate Loans shall be 0% per annum and
(iii) the Commitment Fee Percentage shall be the sum of (x)
the facility fee percentage payable (or to be payable) by
IGL under the IGL Facility and (y) 0.125% per annum.
(c) The L/C Participation Fees Percentage shall
be the letter of credit fee payable (or to be payable) by
IGL under the IGL Credit Facility in respect of the
aggregate amount then available for drawing under all
outstanding letters of credit issued thereunder.
(d) The following is a copy of the Pricing
Schedule attached to the IGL Credit Facility and in effect
as of the date hereof (capitalized terms used below are
defined in the IGL Credit Facility).
Pricing Schedule
The "Euro-Dollar Margin" and the "Facility Fee
Rate" for any day are the respective percentages set
forth below in the applicable row under the column
corresponding to the Status that exists on such day;
provided that Level II Status shall be deemed to exist
on any day prior to the Conversion Date:
XXXXX XXXXX XXXXX XXXXX XXXXX X
I II III IV
Facility Fee .07% .085% .11% .15% .25%
Rate
Euro-Dollar .155% .19% .215% .275% .425%
Margin
For purposes of this Schedule, the following terms
have the following meanings, subject to the last
paragraph of this Schedule:
"Conversion Date" means the earliest to occur of
(i) September 30, 1998, (ii) the date (if any) on which
the Debt of the Company and its Consolidated
Subsidiaries determined on a consolidated basis
("Consolidated Debt") exceeds 45% of the sum of
Consolidated Debt and Consolidated Net Worth and
(iii) the date (if any) on which the Company is rated
BBB- or lower by S&P or Baa3 or lower by Xxxxx'x.
"Level I Status" exists at any date if, at such
date, the Company is rated A- or higher by S&P or A3 or
higher by Xxxxx'x.
"Level II Status" exists at any date if, at such
date, (i) the Company is rated BBB+ or higher by S&P or
Baa1 or higher by Xxxxx'x and (ii) Level I Status does
not exist.
"Level III Status" exists at any date if, at such
date, (i) the Company is rated BBB or higher by S&P or
Baa2 or higher by Xxxxx'x and (ii) neither Level I
Status nor Level II Status exists.
"Level IV Status" exists at any date if, at such
date, (i) the Company is rated BBB- by S&P or Baa3 by
Xxxxx'x and (ii) neither Level I Status, Level II
Status nor Level III Status exists.
"Level V Status" exists at any date if, at such
date, no other Status exists.
"Status" refers to the determination of which of
Level I Status, Level II Status, Level III Status,
Level IV Status or Level V Status exists at any date.
The credit ratings to be utilized for purposes of
this Schedule are those assigned to the senior
unsecured long-term debt securities of the Company
without third-party credit enhancement, whether or not
any such debt securities are actually outstanding, and
any rating assigned to any other debt securities are
actually outstanding, and any rating assigned to any
debt security of the Company shall be disregarded. The
rating in effect at any date is that in effect at the
close of business on such date. If the Company is
split-rated and the ratings differential is one notch,
the higher of the two ratings will apply (e.g., A-/Baa1
results in Level I Status and BBB+/Baa2 results in
Level II Status). If the Company is split-rated and
the ratings differential is more than one notch, the
average of the two ratings (or the higher of two
intermediate ratings) shall be used (e.g., A-/Baa3
results in Level II Status and BBB+/Baa3 results in
Level III Status). If at any date, the Company's long-
term debt is rated by neither S&P nor Xxxxx'x, then
Level V shall apply.
SCHEDULE II
LENDER COMMITMENTS
New FMPOC New Circle C New Circle
Revolving Revolving C Term Applicable
Lender Tranche Tranche Tranche Percentage
---------- ------------- ------------- ---------- ----------
The Chase
Manhattan
Bank $9,372,385.78 $5,677,614.22 $6,450,000 43%
Texas
Commerce
Bank
National 12,423,860.22 7,526,139.78 8,550,000 57%
Association
SCHEDULE III
SUBSIDIARIES
Nonrestricted Subsidiaries of FMPO:
Estates of Xxxxxx Creek Utilities Inc.
Longhorn Properties Inc.
Xxxxxx Creek Realty Inc.
Xxxxxx Creek Properties
Austin 290 Properties Inc.
LW Properties Inc.
Texas B.D. Inc.
Longhorn Land Company
Longhorn Development Company
Delaware Business Development Inc.
Nonrestricted Subsidiaries of FMPOC:
FM Florida Properties Co.
Vailwood Properties L.P.
SCHEDULE IV
EXISTING DEBT AND LIENS
None.
SCHEDULE V
EXISTING LETTERS OF CREDIT
FMPOC Letters of Credit
Letter of Credit (No. PG633546) issued by Chase in a
principal amount of $339,912.11.
Letter of Credit (No. p-385776) issued by Chase in a
principal amount of $610,607.00.
Letter of Credit (No. I-467309) issued by Texas
Commerce Bank National Association ("TCB") in a
principal amount of $909,609.00
Circle C Letter of Credit
Letter of Credit (No. I-426230) issued by TCB in a
principal amount of $85,573.00.
[NYCORP2:449124]
