AMENDED AND RESTATED CREDIT AGREEMENT
Dated as of December 31, 2000
MEMC ELECTRONIC MATERIALS, INC., a Delaware corporation, as the borrower
(the "Borrower"), and E.ON AG, a company formed under the laws of the Federal
Republic of Germany ("E.ON"), as the initial lender (the "Initial Lender") and
as agent (together with any successor appointed pursuant to Article VII, the
"Agent") for the Lenders (as hereinafter defined), hereby agree as follows:
Preliminary Statement
WHEREAS, Borrower and E.ON are parties to a Revolving Credit Agreement
dated as of September 23, 1998 (the "Credit Agreement") pursuant to which E.ON
agreed to extend up to US$100,000,000 of credit to Borrower on a revolving
basis;
WHEREAS, Borrower and E.ON wish to restructure the existing financing
provided by E.ON and its Affiliates to Borrower by extending the maturity dates
of certain of such loans until their respective anniversaries in 2002, providing
for 12-month adjustable interest rates commencing in 2001 for such loans and
otherwise amending the loan agreements relating to all of the loans; and
WHEREAS, as part of such restructuring, Borrower and E.ON desire to amend
the Credit Agreement as herein set forth (this "Agreement").
NOW THEREFORE, in consideration of the foregoing premises and the mutual
covenants and conditions hereinafter set forth, the parties agree as follows:
ARTICLE I
AMENDMENT; DEFINITIONS AND ACCOUNTING TERMS
SECTION 1.01. Amendment. Subject to Section 8.06, the Credit Agreement
(including all Schedules and Exhibits thereto) is amended and restated in its
entirety as set forth in this Agreement.
SECTION 1.02. Certain Defined Terms. As used in this Agreement, the following
terms shall have the following meanings (such meanings to be equally applicable
to both the singular and plural forms of the terms defined):
"Advance" has the meaning specified in Section 2.01.
"Affiliate" means, as to any Person, any other Person that, directly
or indirectly, controls, is controlled by or is under common control with such
Person or is a director or officer of such Person. For purposes of this
definition, the term "control" (including the terms "controlling", "controlled
by" and "under common control with") of a Person means the possession, direct or
indirect, of the power to vote 50% or more of the voting stock of such Person or
to direct or cause the direction of the management and policies of such Person,
whether through the ownership of voting stock, by contract or otherwise.
"Agent" has the meaning specified in the recital of parties to this
Agreement.
"Agent's Account" means the Dollar account of the Agent maintained
with such bank as the Agent shall specify in writing to the Borrower and the
Lenders from time to time.
"Amendment Effective Date" means December 31, 2000.
"Applicable Spread" means:
(a) for any extension period commencing before or on December 31, 2000, a
percentage per annum equal to the excess of (i) the Bloomberg fair market sector
curves (adjusted for the chosen interest rate method) applicable two business
days prior to the Initial Termination Date to a B3 rated industrial borrower for
the period from the Initial Termination Date through the latest possible
Termination Date in 2001 (taking into account, if applicable, the latest
Extension Termination Date in 2001) over (ii) the corresponding Swap Rate for
such period, and
(b) for any extension period commencing on or after January 1, 2001, a
percentage per annum equal to the excess of (i) the Bloomberg fair market sector
curves (adjusted for the chosen interest rate method) applicable two business
days prior to the then applicable Extension Termination Date to a B3 rated
industrial borrower for the period from the then applicable Extension
Termination Date through
the latest possible Termination Date in 2002 (taking into account, if
applicable, the latest Extension Termination Date in 2002) over (ii) the
corresponding Swap Rate for such period.
"Approved Capital Expenditures" means the aggregate amount for
Borrower and its Subsidiaries of (a) all purchases or acquisitions by Borrower
and its Subsidiaries of items considered to be capital items under GAAP, which
in any event shall include all expenditures capitalized in accordance with GAAP
relating to property, plant, equipment or software on the consolidated balance
sheet of Borrower and its Subsidiaries, and which shall exclude any such
purchases or acquisitions by a Subsidiary that were purchased or acquired with
Restricted Proceeds and/or with Restricted Net Free Cash Flow, plus (b) any
capital contributions or equity investments by Borrower or its Subsidiaries in
Borrower's unconsolidated joint ventures; provided, that such expenditures,
acquisitions, contributions or investments were contained in the annual budget
approved of in advance by the board of directors of Borrower or were
subsequently approved by the board of directors of Borrower. For purposes of
determining Approved Capital Expenditures for a Subsidiary in a particular year,
all Approved Capital Expenditures in such year shall be considered to have been
purchased or acquired by such Subsidiary with Restricted Proceeds and/or with
Restricted Net Free Cash Flow to the extent that the Consolidated Net Free Cash
Flow as determined for such Subsidiary on a stand-alone basis (i.e., for that
Subsidiary and its consolidated Subsidiaries only) for that particular year is
equal to or less than the amount of the Approved Capital Expenditures by such
Subsidiary during such year.
"Assignment and Acceptance" means an assignment and acceptance entered
into by a Lender and an Eligible Assignee and accepted by the Agent, in
substantially the form of Exhibit C hereto.
"Bank" means any Lender other than the Initial Lender or any Affiliate
of the Initial Lender.
"Borrower" has the meaning specified in the recital of parties to this
Agreement.
"Borrowing" means the borrowing consisting of the Advances made by the
Lenders.
"Borrowing Notice" has the meaning specified in Section 2.02(a).
"Business Day" means a day of the year on which banks are not required
or authorized by law to close in New York City and, if the applicable business
day relates to any Advances, on which dealings are carried on in the London
interbank market.
"Change of Control" means the Initial Lender or any Affiliate of the
Initial Lender, through any transaction or series of transactions or otherwise,
no longer has beneficial ownership, directly or indirectly, of more than 50% of
the shares of common stock of the Borrower.
"Change of Control Date" means the date of occurrence of a Change of
Control.
"Commitment" has the meaning specified in Section 2.01.
"Confidential Information" means information that the Borrower
furnishes to the Agent or any Lender in a writing designated as confidential,
but does not include any such information that is or becomes generally available
to the public or that is or becomes available to the Agent or such Lender from a
source other than the Borrower, an Affiliate of the Borrower or an Affiliate of
the Initial Lender.
"Consolidated" refers to the consolidation of accounts in accordance
with GAAP.
"Consolidated Net Free Cash Flow" shall mean, for any fiscal year, the
following amount:
(c) the sum of:
(i) Consolidated Net Income for such period, plus
(ii) Consolidated Working Capital Adjustment, plus
(iii) Consolidated depreciation and amortization expense during
such period, plus
(iv) the amount of cash dividends and distributions paid to
Borrower by Borrower's unconsolidated joint ventures during such period, plus
(v) the excess, if any, of (i) the amount of expense for
contributions to be made to the MEMC Pension Plan and Borrower's other
retirement plans included in Consolidated Net Income, over (ii) the amount of
cash contributions made to the MEMC Pension Plan and Borrower's other retirement
plans, plus
(vi) any non-cash losses during such period not included in the
foregoing items (ii) through (v),
minus
(d) the sum of:
(i) the amount of Approved Capital Expenditures during such
period, plus
(ii) the aggregate amount of scheduled or required permanent
principal payments of Debt for borrowed money of Borrower and its Subsidiaries
during such period, plus
(iii) the aggregate amount of any voluntary permanent repayments
of principal by Borrower on E.ON Loans (which repayments, in the case of any
E.ON Loan that is a revolving loan, are accompanied by a concurrent permanent
reduction of the revolving loan commitment) during such period, plus
(iv) the excess, if any, of (i) the amount of cash contributions
made to the MEMC Pension Plan and Borrower's other retirement plans, but only to
the extent such contributions are required pursuant to such plans or to meet
minimum funding standards or to avoid participant notice requirements ERISA,
over (ii) the amount of expense for contributions to be made to the MEMC Pension
Plan and Borrower's other retirement plans included in Consolidated Net Income,
plus
(v) any non-cash income during such period not included in
items (i) through (iv).
Notwithstanding the foregoing, Consolidated Net Free Cash Flow shall
exclude any Restricted Net Free Cash Flow.
"Consolidated Net Income" means, for any period, the Consolidated net
income (or loss) of Borrower and its Subsidiaries for such period (on a
Consolidated basis in conformity with GAAP).
"Consolidated Working Capital" means, as at any date of determination,
the excess (or deficit) of (a) the total assets of Borrower and its Subsidiaries
on a Consolidated basis which may properly be classified as current assets in
conformity with GAAP, excluding the current portion of deferred tax assets and
cash and cash equivalents over (b) the total liabilities of Borrower and its
Subsidiaries on a Consolidated basis which may properly be classified as current
liabilities in conformity with GAAP, excluding the current portions of Debt.
"Consolidated Working Capital Adjustment" means, for any period on a
Consolidated basis, the amount (which may be a negative number) by which
Consolidated Working Capital as of the beginning of such period exceeds (or is
less than) Consolidated Working Capital as of the end of such period.
"Debt" means (a) indebtedness for borrowed money, (b) obligations
evidenced by bonds, debentures, notes or other similar instruments, (c)
obligations to pay the deferred purchase price of property or services, (d)
obligations as lessee under leases which shall have been or should be, in
accordance with generally accepted accounting principles, recorded as capital
leases, and (e) obligations under direct or indirect guaranties (other than
guaranties of Debt of Borrower's Affiliates which Debt is otherwise included in
Debt) in respect of, and obligations (contingent or otherwise) to purchase or
otherwise acquire, or otherwise to
assure a creditor against loss in respect of, indebtedness or obligations of
others of the kinds referred to in clause (a) through (d) of this definition.
"Default" means any Event of Default or any event that would
constitute an Event of Default but for the requirement that notice be given or
time elapse or both.
"Dollars" and the sign "$" each means lawful money of the United
States of America.
"Effective Date" has the meaning specified in Section 3.01.
"Eligible Assignee" means any Person approved by all of the Lenders;
provided, however, that neither the Borrower nor any Subsidiary of the Borrower
shall qualify as an Eligible Assignee.
"E.ON Loans" means any and all existing and future Debt of Borrower to
E.ON and its Affiliates, including without limitation the term loans and
revolving loans outstanding between Borrower and E.ON and its Affiliates on the
date hereof.
"ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and the regulations promulgated and rulings issued
thereunder.
"Eurocurrency Liabilities" has the meaning assigned to that term in
Regulation D of the Board of Governors of the Federal Reserve System, as in
effect from time to time.
"Eurodollar Lending Office" means, with respect to any Bank, the
office of such Bank specified as its "Eurodollar Lending Office" in the
Assignment and Acceptance pursuant to which it became a Lender, or such other
office of such Bank as such Bank may from time to time specify to the Borrower
and the Agent.
"Eurodollar Rate Reserve Percentage" for any Interest Period for all
Advances comprising part of the same Borrowing means the reserve percentage
applicable two Business Days before the first day of such Interest Period under
regulations issued from time to time by the Board of
Governors of the Federal Reserve System (or any successor) for determining the
maximum reserve requirement (including, without limitation, any emergency,
supplemental or other marginal reserve requirement) for a member bank of the
Federal Reserve System in New York City with respect to liabilities or assets
consisting of or including Eurocurrency Liabilities (or with respect to any
other category of liabilities that includes deposits by reference to which the
interest rate on Advances is determined) having a term equal to such Interest
Period.
"Events of Default" has the meaning specified in Section 6.01.
"Extension Certificate" has the meaning specified in Section 2.15.
"Extension Request Notice" has the meaning set forth in Section 2.15.
"Extension Termination Date" means the earlier of (a) either (i) the
first anniversary of the earlier of (A) the Initial Termination Date or (B) the
45th Business Day following the Change of Control Date, or (ii) if there has
been an earlier applicable Extension Termination Date on or prior to December
31, 2000, the first anniversary of such prior Extension Termination Date, or
(iii) if there has been an earlier applicable Extension Termination Date after
December 31, 2000 and on or before December 31, 2001, the first anniversary of
such prior Extension Termination Date, and (b) the termination in whole of the
Commitments pursuant to Section 2.04 or Section 6.01; provided, that in no event
shall an Extension Termination Date be after December 31, 2002.
"Federal Funds Rate" means, for any period, a fluctuating interest
rate per annum equal for each day during such period to the weighted average of
the rates on overnight federal funds transactions with members of the Federal
Reserve System arranged by federal funds brokers, as published for such day (or,
if such day is not a Business Day, for the next preceding Business Day) by the
Federal Reserve Bank of New York, or, if such rate is not so published for any
day that is a Business Day, the
average of the quotations for such day on such transactions received by the
Agent from three federal funds brokers of recognized standing selected by it.
"GAAP" has the meaning specified in Section 1.03.
"Governmental Authority" means any nation or government, any state or
other political subdivision thereof, and any federal, state, local or foreign
court or governmental, executive, legislative, judicial, administrative or
regulatory agency, department, authority, instrumentality, commission, board or
similar body.
"Indemnified Party" has the meaning specified in Section 8.04(b).
"Initial Lender" has the meaning specified in the recital of parties
to this Agreement.
"Initial Termination Date" for any Advance means October 1, 1999.
"Interest Period" means, for each Advance comprising part of the same
Borrowing, the period commencing on the date of such Advance and ending on the
last day of the period selected by the Borrower pursuant to the provisions below
and, thereafter, each subsequent period commencing on the last day of the
immediately preceding Interest Period and ending on the last day of the period
selected by the Borrower pursuant to the provisions below. The duration of each
such Interest Period shall be one week or one, two, three or twelve months, as
the Borrower may, upon notice received by the Agent not later than 11:00 A.M.
(New York City time) on the third Business Day prior to the first day of such
Interest Period, select; provided, however, that:
(e) the Borrower may not select any Interest Period that ends after
the Termination Date;
(f) Interest Periods commencing on the same date for Advances
comprising part of the same Borrowing shall be of the same duration;
(g) whenever the last day of any Interest Period would
otherwise occur on a day other than a Business Day, the last day of such
Interest Period shall be extended to occur on the next succeeding Business Day,
provided, however, that, if such extension would cause the last day of such
Interest Period to occur in the next following calendar month, the last day of
such Interest Period shall occur on the next preceding Business Day; and
(h) whenever the first day of any Interest Period occurs on a day of
an initial calendar month for which there is no numerically corresponding day in
the calendar month that succeeds such initial calendar month by the number of
months equal to the number of months in such Interest Period, such Interest
Period shall end on the last Business Day of such succeeding calendar month.
"Interest Rate" for any Interest Period means a rate per annum at all
times equal to the sum of (i) the British Bankers' Association (BBA) LIBOR rate
(as shown on the Reuters page FRBD or comparable pages) for such Interest Period
for such Advance, divided by a percentage equal to 100% minus the Eurodollar
Rate Reserve Percentage for such Interest Period, plus (ii) the Applicable
Spread.
"Lender" means the Initial Lender and each Person that shall become a
party hereto pursuant to Section 8.07.
"Material Adverse Change" means any material adverse change in the
business, condition (financial or otherwise), operations, performance,
properties or prospects of the Borrower or the Borrower and its Subsidiaries
taken as a whole.
"Net Proceeds" means, with respect to any issuance of debt securities
(including debt securities convertible into equity) or any incurrence of Debt
(other than non-interest bearing Debt not for borrowed money (i.e., customer
deposits), other than Debt from E.ON or its Affiliates and other than Debt to
the extent incurred to refinance, in whole or in part, Debt
for borrowed money outstanding as of December 31, 2000), an amount equal to the
cash proceeds received in respect thereof (including cash proceeds received as
income or other proceeds of any noncash proceeds), less any direct expenses
reasonably incurred by Borrower and its Subsidiaries in connection therewith and
excluding any Restricted Proceeds.
"Note" means a promissory note of the Borrower payable to the order of
any Lender, substantially in the form of Exhibit A hereto, evidencing the Debt
of the Borrower to such Lender resulting from the Advance made by such Lender.
"Other Taxes" has the meaning specified in Section 2.12(b).
"Person" means an individual, partnership, corporation (including a
business trust), joint stock company, trust, unincorporated association, joint
venture, limited liability company or other entity, or a government or any
political subdivision or agency thereof.
"Register" has the meaning specified in Section 8.07(c).
"Replacement Financing Arrangement" means a financing arrangement with
any Person who is not an Affiliate of the Borrower or the Agent or any Lender on
substantially the terms which would apply hereunder during the period from the
then applicable Termination Date to the latest possible Extension Termination
Date, provided that the interest rate of such Replacement Financing Arrangement
shall be no higher than the Interest Rate and, if no lesser interest rate is
available, shall be the Interest Rate.
"Required Lenders" means, at any time, Lenders owed at least 51% of
the then aggregate unpaid principal amount of Advances owing to Lenders or, if
no such principal amount is then outstanding, Lenders having at least 51% of the
Commitments.
"Restricted Net Free Cash Flow" means Consolidated Net Free Cash Flow
as determined for a Subsidiary on a stand-alone basis (i.e., for that Subsidiary
and its consolidated Subsidiaries only), to the extent that the declaration or
payment of dividends or similar distributions by that
Subsidiary of such net free cash flow is not at that time permitted by operation
of the terms of its charter or any agreement, instrument, judgment, decree,
order, statute, rule or governmental regulation applicable to that Subsidiary.
"Restricted Proceeds" means cash proceeds received by a Subsidiary
from any issuance of debt securities or any incurrence of Debt, to the extent
that the declaration or payment of dividends or similar distributions by that
Subsidiary of such proceeds is not at that time permitted by operation of the
terms of its charter or any agreement, instrument, judgment, decree, order,
statute, rule or governmental regulation applicable to that Subsidiary.
"S&P" means Standard & Poor's Ratings Group, a division of McGraw
Hill, Inc.
"Subsidiary" of any Person means any corporation, partnership, joint
venture, limited liability company, trust or estate of which (or in which) more
than 50% of (a) the issued and outstanding capital stock having ordinary voting
power to elect a majority of the board of directors of such corporation
(irrespective of whether at the time capital stock of any other class or classes
of such corporation shall or might have voting power upon the occurrence of any
contingency), (b) the interest in the capital or profits of such limited
liability company, partnership or joint venture or (c) the beneficial interest
in such trust or estate is at the time directly or indirectly owned or
controlled by such Person, by such Person and one or more of its other
Subsidiaries or by one or more of such Person's other Subsidiaries; provided,
however, that the term "Subsidiary" shall not include any joint venture of the
Borrower with respect to any action or decision of the board of directors of
such joint venture if, by written agreement, such action or decision requires a
vote in excess of the number of members of such board of directors elected or
controlled by the Borrower.
"Swap Rate" means the US-Dollar denominated interbank
interest rate swap rates/LIBOR offered rates as shown on Reuters page ICAP
and other comparable brokerage pages, adjusted for the chosen interest rate
method (annual/semi-annual compounding, etc.).
"Taxes" has the meaning specified in Section 2.12(a).
"Termination Date" means the earlier of (a) either the Initial
Termination Date or, if applicable, the Extension Termination Date and (b)
the termination in whole of the Commitments pursuant to Section 2.04 or
Section 6.01.
"United States" and "U.S." each means the United States of America.
The words "include," "includes" and "including" shall be deemed to be
followed by the phrase "without limitation."
SECTION 1.03. Computation of Time Periods. In this Agreement in the computation
of periods of time from a specified date to a later specified date, the word
"from" means "from and including" and the words "to" and "until" each means "to
but excluding."
SECTION 1.04. Accounting Terms. All accounting terms not specifically defined
herein shall be construed in accordance with generally accepted accounting
principles consistent with those applied in the preparation of the financial
statements referred to in Section 4.01(e) ("GAAP").
ARTICLE II
AMOUNTS AND TERMS OF THE ADVANCES
SECTION 2.01. The Advances. Each Lender severally agrees, on the terms and
conditions hereinafter set forth, to make advances (each, an "Advance") to the
Borrower from time to time on any Business Day during the period from the
Effective Date until the Termination Date in an amount not to exceed the amount
set forth opposite such Lender's name on the signature pages hereof or, if such
Lender has entered into any Assignment and Acceptance, set forth for such Lender
in the Register maintained by the Agent pursuant to Section 8.07(c), as such
amount may be reduced pursuant to Section 2.04 (such Lender's "Commitment").
Each Borrowing shall be in an aggregate amount of $5,000,000 or an integral
multiple of $5,000,000 in excess thereof and shall be made simultaneously by the
Lenders ratably according to their respective Commitments. Within the limits of
each Lender's Commitment, the Borrower may borrow or reborrow under this Section
2.01.
SECTION 2.02. Making the Advances. (a) Each Borrowing shall be made on notice,
given not later than 11:00 A.M. (New York City time) on the third Business Day
prior to the date of the proposed Borrowing by the Borrower to the Agent, which
shall give to each Lender prompt notice thereof by telecopier or telex. Each
notice of a Borrowing (a "Borrowing Notice") shall be by telephone, confirmed
immediately in writing, or telecopier or telex, in substantially the form of
Exhibit B hereto, specifying therein, among other things, the requested (i) date
of such Borrowing, (ii) the amount of such Borrowing and (iii) the initial
Interest Period for such Advances. Each Lender shall, before 11:00 A.M. (New
York City time) on the date of such Borrowing, make available for the account of
its Eurodollar Lending Office to the Agent at the Agent's Account, in same day
funds, such Lender's ratable portion of such Borrowing. After the Agent's
receipt of such funds and upon fulfillment of the applicable conditions set
forth in Article III, the Agent will make such funds available to the Borrower
by depositing the proceeds of the Advances in such Dollar account of the
Borrower (or of such Person as the Borrower shall specify to the Lender in the
Borrowing Notice or by other written notice to the Lender given simultaneously
with or prior to such Borrowing Notice) maintained with such bank as the
Borrower shall specify to the Agent in such Borrowing Notice.
The parties hereto understand and agree that the Initial Lender may, in its
sole discretion (but shall have no obligation to), designate a financial
institution or another Person to perform the Initial Lender's obligations
hereunder in accordance with the terms hereof. The Borrower agrees that
performance of any such obligation by any such designee of the Initial Lender
shall be deemed to constitute performance by the Initial Lender for all purposes
of this Agreement and the Note and shall discharge the Initial Lender from such
obligation to the extent of such performance.
(b) Anything in subsection (a) of this Section 2.02 to the contrary
notwithstanding, the Borrower may not request a Borrowing if the obligation
of the Lenders to make Advances shall be suspended pursuant to Section
2.10.
(c) Any Borrowing Notice delivered by the Borrower to the Agent shall
be irrevocable and binding on the Borrower. The Borrower shall indemnify
each Lender against any loss, cost or expense incurred by such Lender as a
result of any failure to fulfill on or before the date specified in such
Borrowing Notice for such Borrowing the applicable conditions set forth in
Article III, including, without limitation, any loss (including loss of
anticipated profits), cost or expense incurred by reason of the liquidation
or reemployment of deposits or other funds acquired by such Lender to fund
the Advance to be made by such Lender as part of such Borrowing when such
Advance, as a result of such failure, is not made on such date.
(d) The Agent shall only make available to the Borrower on the date of
any Borrowing the ratable portion of such Borrowing of each Lender that
such Lender has made available to the Agent on or prior to the date of such
Borrowing.
(e) The failure of any Lender to make the Advance to be made by it as
part of any Borrowing shall not relieve any other Lender of its obligation,
if any, hereunder to make its Advance on the date of such Borrowing, but no
Lender shall be responsible for the failure of any other Lender to make the
Advance to be made by such other Lender on the date of any Borrowing.
SECTION 2.03. Commitment Fee. The Borrower agrees to pay to the Agent for the
account of each Lender a commitment fee on the unused portion of such Lender's
Commitment from the Effective Date in the case of the Initial Lender and from
the effective date specified in the Assignment and Acceptance pursuant to which
it became a Lender in the case of each other Lender until the Termination Date
at a rate per annum equal to 1/4 of 1%, payable in arrears quarterly on the last
day of each March, June, September and December, commencing December
31, 1998, and on the Termination Date.
SECTION 2.04. Optional Termination or Reduction of the Commitments. The Borrower
shall have the right, upon at least three Business Days' notice to the Agent, to
terminate in whole or reduce ratably in part the unused portions of the
respective Commitments of the Lenders, provided that each partial reduction
shall be in the aggregate amount of $5,000,000 or an integral multiple of
$1,000,000 in excess thereof.
SECTION 2.05. Repayment. The Borrower shall repay to the Agent for the ratable
account of the Lenders on the Termination Date the aggregate principal amount of
the Advances then outstanding.
SECTION 2.06. Interest. (a) Interest on the Advances. The Borrower shall pay
interest on the unpaid principal amount of each Advance owing to each Lender
from the date of such Advance until such principal amount shall have been paid
in full at an interest rate per annum equal to the Interest Rate, payable in
arrears on the last day of such Interest Period and on the date such Advance
shall be paid in full.
(b) Interest on Overdue Amounts. In the event that any principal
amount of any Advance or any interest, fees, costs, expenses or other
amounts payable hereunder are not paid when due, the Borrower shall pay
interest on such unpaid amount from the date such amount is due until the
date such amount is paid in full, payable on demand, at an interest rate
per annum equal to the interest rate referred to in subsection (a) of this
Section 2.06 then in effect plus 2%.
SECTION 2.07. Reserved.
SECTION 2.08. Interest Rate Determination. (a) The Agent shall give prompt
notice to the Borrower and the Lenders of the applicable interest rate
determined by the Agent for purposes of Section 2.06(a).
(b) If the Borrower shall fail to select the duration of any Interest
Period for any Advances in accordance with the provisions contained in the
definition of "Interest Period" in Section 1.01, the Agent will forthwith
so notify the Borrower and the Lenders and such Advances will
automatically, on the last day of the then existing Interest Period
therefor, convert into an Advance bearing interest at the Interest Rate
applicable to Advances of the same aggregate amount having an Interest
Period of twelve months.
(c) On the date on which the aggregate unpaid principal amount of
Advances comprising any Borrowing shall be reduced, by payment or
prepayment or otherwise, to less than $5,000,000, such Advances shall
automatically convert into an Advance bearing interest at the Interest Rate
applicable to Advances of the same aggregate amount having an Interest
Period of twelve months.
SECTION 2.09. Increased Costs, Etc. If due to either (a) the introduction of or
any change (including, without limitation, any change by way of imposition or
increase of reserve requirements) in or in the interpretation of any law or
regulation or (b) the compliance with any guideline or request from any central
bank or other Governmental Authority (whether or not having the force of law),
there shall be any increase in the cost to any Bank of agreeing to make or
making, funding or maintaining an Advance, then the Borrower shall from time to
time, upon demand by such Bank (with a copy of such demand to the Agent), pay to
the Agent for the account of such Bank additional amounts sufficient (as
applicable) to compensate such Bank for such increased cost. A certificate as to
the amount of such increased cost, submitted to the Borrower by such Bank, shall
be conclusive and binding for all purposes, absent manifest error.
SECTION 2.10. Illegality. Notwithstanding any other provision of this Agreement,
if any Bank shall notify the Borrower that any law or regulation, or the
introduction of or any change in or in the interpretation of any law or
regulation, makes it unlawful, or any central bank or other Governmental
Authority asserts that it is unlawful, for such Bank to perform its obligations
hereunder to make an Advance or to fund or maintain an Advance hereunder, (a)
the obligation of such Bank to make, fund and maintain any Advance shall be
suspended until such Bank shall notify the Borrower that the
circumstances causing such suspension no longer exist, (b) such Bank shall
promptly notify the Borrower of such circumstances and such suspension, and (c)
unless the Borrower and such Bank shall have otherwise agreed within ten
Business Days of such notice, the Borrower shall forthwith on such tenth
Business Day prepay in full the Advances then outstanding together with interest
accrued thereon.
SECTION 2.11. Payments and Computations. (a) The Borrower shall make each
payment hereunder and under the Notes not later than 1:00 P.M. (New York City
time) on the day when due in Dollars to the Agent at the Agent's Account, in
each case in immediately available funds. The Agent will promptly thereafter
cause to be distributed like funds relating to the payment of principal or
interest or fees ratably (other than amounts payable pursuant to Section 2.09,
2.12 or 8.04(c)) to the Lenders for the account of their respective Eurodollar
Lending Offices, and like funds relating to the payment of any other amount
payable to any Lender to such Lender for the account of its Eurodollar Lending
Office, in each case to be applied in accordance with the terms of this
Agreement. Upon its acceptance of an Assignment and Acceptance and recording of
the information contained therein in the Register pursuant to Section 8.07(d),
from and after the effective date specified in such Assignment and Acceptance,
the Agent shall make all payments hereunder and under the Notes in respect of
the interest assigned thereby to the Lender assignee thereunder, and the parties
to such Assignment and Acceptance shall make all appropriate adjustments in such
payments for periods prior to such effective date directly between themselves.
(b) All computations of interest and of fees shall be made in good
faith by the Agent on the basis of a year of 360 days for the actual number
of days (including the first day but excluding the last day) occurring in
the period for which such interest or fees are payable.
(c) Whenever any payment hereunder or under the Notes shall be stated
to be due on a day other than a Business Day, such payment shall be made on
the next succeeding Business Day, and such extension of time shall in such
case be included in the computation of payment of interest or
fee, as the case may be; provided, however, that if such extension would
cause payment of interest on or principal of any Advances to be made in the
next following calendar month, such payment shall be made on the next
preceding Business Day.
(d) Unless the Agent shall have received notice from the Borrower
prior to the date on which any payment is due to the Lenders hereunder that
the Borrower will not make such payment in full, the Agent may assume that
the Borrower has made such payment in full to the Agent on such date and
the Agent may, in reliance upon such assumption, cause to be distributed to
each Lender on such due date an amount equal to the amount then due such
Lender. If and to the extent the Borrower shall not have so made such
payment in full to the Agent, each Lender shall repay to the Agent
forthwith on demand such amount distributed to such Lender together with
interest thereon, for each day from the date such amount is distributed to
such Lender until the date such Lender repays such amount to the Agent, at
the Federal Funds Rate.
SECTION 2.12. Taxes. (a) Any and all payments by the Borrower hereunder or under
the Notes shall be made in accordance with Section 2.11, free and clear of and
without deduction for any and all present or future taxes, levies, imposts,
deductions, charges or withholdings, and all liabilities with respect thereto,
excluding, in the case of each Lender and the Agent, net income taxes that are
imposed by the United States and net income taxes (or franchise taxes imposed in
lieu thereof) that are imposed on such Lender or the Agent by the state or
foreign jurisdiction under the laws of which such Lender or the Agent (as the
case may be) is organized or any political subdivision thereof and, in the case
of each Lender, net income taxes (or franchise taxes imposed in lieu thereof)
that are imposed on such Lender by the state or foreign jurisdiction of such
Lender's Eurodollar Lending Office or any political subdivision thereof (all
such nonexcluded taxes, levies, imposts, deductions, charges, withholdings and
liabilities in respect of payments hereunder or under the Notes being
hereinafter referred to as "Taxes"). If the Borrower shall be required by law to
deduct any Taxes from or in respect of any sum payable hereunder or under any
Note, (i) the sum payable shall be increased as may be necessary so that, after
making all required deductions (including deductions applicable to additional
sums payable under this Section 2.12), such Lender or the Agent receives an
amount equal to the sum it would have received had no such deductions been made,
(ii) the Borrower shall make such deductions and (iii) the Borrower shall pay
the full amount deducted to the relevant taxation authority or other authority
in accordance with applicable law.
(b) In addition, the Borrower shall pay any present or future stamp,
documentary, excise, property or other taxes, charges or levies that arise
from any payment made hereunder or under the Notes or from the execution,
delivery or registration of, or otherwise with respect to, this Agreement
or the Notes (hereinafter referred to as "Other Taxes").
(c) The Borrower shall indemnify each Lender and the Agent for the
full amount of Taxes or Other Taxes and for the full amount of Taxes or
Other Taxes imposed by any jurisdiction on amounts payable under this
Section 2.12 imposed on or paid by such Lender or the Agent (as the case
may be) or any liability (including penalties, additions to tax, interest
and expenses) arising therefrom or with respect thereto, whether or not
such Taxes or Other Taxes were correctly or legally asserted. This
indemnification shall be made within 30 days from the date such Lender or
the Agent makes written demand therefor.
(d) Within 30 days after the date of any payment of Taxes, the
Borrower shall furnish to the Agent, at its address referred to in Section
8.02, the original receipt of payment or a certified copy of such receipt.
If no Taxes are payable in respect of any payment hereunder or under the
Notes, the Borrower shall furnish to the Agent, at such address, a
certificate from each appropriate taxing authority, or an opinion of
counsel acceptable to the Lenders, in either case stating that such payment
is exempt from or not subject to Taxes.
(e) Each Lender organized under the laws of a jurisdiction outside the
United States shall, on the Effective Date in the case of the Initial
Lender and on the date of the Assignment and Acceptance pursuant to which
it became a Lender in the case of each other Lender, and from time to time
thereafter if requested in writing by the Borrower or the Agent (but only
so long as such Lender remains lawfully able to do so), provide each of the
Borrower and the Agent with Internal Revenue Service form W-8BEN or any
successor or other form prescribed by the internal Revenue Service,
certifying that such Lender is exempt from or entitled to a reduced rate of
United States withholding tax on payments of interest pursuant to this
Agreement or the Notes. If the form provided by such Lender at the time
such Lender becomes a party to this Agreement indicates a United States
interest withholding tax rate in excess of zero, withholding tax at such
rate shall be considered excluded from Taxes unless and until such Lender
provides the appropriate form certifying that a lesser rate applies,
whereupon withholding tax at such lesser rate only shall be considered
excluded from Taxes for periods governed by such form; provided, however,
that, if at the date of the Assignment and Acceptance pursuant to which a
Lender becomes a party to this Agreement, the Lender assignor was entitled
to payments under Section 2.12(a) in respect of United States withholding
tax with respect to interest paid at such date, then, to such extent, the
term Taxes shall include (in addition to withholding taxes that may be
imposed in the future or other amounts otherwise includable in Taxes)
United States withholding tax, if any, applicable with respect to the
Lender assignee on such date. If any form or document referred to in this
subsection (e) requires the disclosure of information, other than
information necessary to compute the tax payable and information required
on the date hereof by Internal Revenue Service form W-8BEN, that the Lender
reasonably considers to be confidential, the Lender shall give notice
thereof to the Borrower and shall not be obligated to include in such form
or document such confidential information.
(f) For any period with respect to which a Lender has failed to
provide the Borrower with the appropriate form described in Section 2.12(e)
(other than if such failure is due to a change in law occurring subsequent
to the date on which a form originally was required to be provided, or if
such form otherwise is not required under the first sentence of Section
2.12(e) above), such Lender shall not be entitled to indemnification under
Section 2.12(a) with respect to Taxes imposed by the United States;
provided, however, that should such Lender become subject to Taxes because
of its failure to deliver a form required hereunder, the Borrower shall
take such steps as such Lender shall reasonably request to assist such
Lender to recover such Taxes.
SECTION 2.13. Sharing of Payments, Etc. If any Lender shall obtain any payment
(whether voluntary, involuntary, through the exercise of any right of setoff, or
otherwise) on account of the Advance owing to it (other than pursuant to Section
2.09, 2.12 or 8.04(c)) in excess of its ratable share of payments on account of
the Advances obtained by all the Lenders, such Lender shall forthwith purchase
from the other Lenders such participations in the Advances owing to them as
shall be necessary to cause such purchasing Lender to share the excess payment
ratably with each of them; provided, however, that if all or any portion of such
excess payment is thereafter recovered from such purchasing Lender, such
purchase from each Lender shall be rescinded and such Lender shall repay to the
purchasing Lender the purchase price to the extent of such recovery together
with an amount equal to such Lender's ratable share (according to the proportion
of (a) the amount of such Lender's required repayment to (b) the total amount so
recovered from the purchasing Lender) of any interest or other amount paid or
payable by the purchasing Lender in respect of the total amount so recovered.
The Borrower agrees that any Lender so purchasing a participation from another
Lender pursuant to this Section 2.13 may, to the fullest extent permitted by
law, exercise all its rights of payment (including the right of setoff) with
respect to such participation as fully as if such Lender were the
direct creditor of the Borrower in the amount of such participation.
SECTION 2.14. Use of Proceeds. The proceeds of the Advances shall be available
(and the Borrower agrees that it shall use such proceeds) solely for general
corporate purposes of the Borrower and its Subsidiaries.
SECTION 2.15. Extension. If the then applicable Termination Date is a date on or
before December 31, 2001 and the Borrower may desire that the Lenders extend the
then applicable Termination Date to the Extension Termination Date, then (a) the
Borrower shall give written notice of said fact (the "Extension Request Notice")
to the Agent and the Lenders no later than four (4) months before the
Termination Date, (b) the Borrower shall use its best efforts to obtain and
enter into on or before the date which is two months prior to the Termination
Date a Replacement Financing Arrangement and (c) if the Borrower shall not have
entered into a Replacement Financing Arrangement on or before the date which is
two months prior to the Termination Date, the Borrower shall deliver to the
Agent and the Lenders a certificate of the Borrower (the "Extension
Certificate") (x) certifying that the Borrower has not entered into a
Replacement Financing Arrangement, but the Borrower used its best efforts to do
so as required by clause (b) and setting forth such evidence and back-up detail
as necessary to demonstrate the efforts made, including a written letter from
each bank from which a Replacement Financing Arrangement as required by clause
(b) was requested, indicating that Borrower made such a request and that the
request was denied, and (y) requesting that the Termination Date be extended to
the Extension Termination Date. For purposes of this Section, the Borrower shall
be deemed to have complied with the requirement to use its "best efforts" by
requesting from and, if applicable, diligently negotiating a Replacement
Financing Arrangement as required by clause (b) with each of three (3)
commercial banks that are nationally recognized in the United States and each
have total assets in excess of $20,000,000,000. The Agent shall have the right
to designate, within ten (10) Business Days after receipt of an Extension
Request Notice, one of the three banks referred to in the preceding sentence.
For purposes of this Section, diligent negotiation shall mean negotiation in
good faith and without denial or unreasonable delay of any reasonable request by
any such bank for information in connection with its consideration of providing
a Replacement Financing Arrangement to Borrower. For the avoidance of doubt,
nothing herein is intended to prevent Borrower from obtaining a Replacement
Financing Arrangement on terms equal to or better than those provided hereunder.
Following receipt of the Extension Certificate, the Agent and/or the
Lenders shall have the right (without any obligation to do so) to obtain for the
Borrower a Replacement Financing Arrangement on terms equal to or better than
those provided hereunder.
If the Borrower has (a) delivered the Extension Request Notice within the
time period specified above, (b) used its best efforts to obtain and enter into
a Replacement Financing Arrangement and delivered the Extension Certificate
within the time period specified above and (c) not unreasonably or in bad faith
refused to enter into a Replacement Financing Arrangement (with terms equal to
or better than those provided hereunder) obtained for the Borrower by the Agent
or any of the Lenders pursuant to the preceding paragraph, the Termination Date
shall be extended to the Extension Termination Date and the interest rate shall
be the Interest Rate.
The Borrower shall be responsible for the payment of any customary
commitment fee and other fees in connection with obtaining a Replacement
Financing Arrangement.
For the avoidance of doubt, in no event shall an Extension Termination Date
be requested by the Borrower after December 31, 2001 or be on a date after
December 31, 2002.
ARTICLE III
CONDITIONS TO EFFECTIVENESS AND LENDING
SECTION 3.01. Conditions Precedent to Effectiveness of Section 2.01. Section
2.01 of this Agreement became effective on and as of the first date (the
"Effective Date") on which the following conditions precedent were satisfied:
(a) There shall have occurred no Material Adverse Change since June 30,
1998.
(b) There shall exist no action, suit, investigation, litigation or
proceeding affecting the Borrower or any of its Subsidiaries pending or
threatened in writing before any court, governmental agency or arbitrator
that (i) may materially adversely affect the financial condition or
operations of the Borrower or any of its subsidiaries or (ii) purports to
affect the legality, validity or enforceability of this Agreement or any
Note or the consummation of the transactions contemplated hereby.
(c) On the Effective Date, the following statements shall be true and the
Agent shall have received a certificate signed by a duly authorized officer
of the Borrower, dated the Effective Date, stating that:
(i) the representations and warranties contained in Section 4.01 are
correct on and as of the Effective Date, and
(ii) no event has occurred and is continuing that constitutes a
Default.
(d) The Agent shall have received on or before the Effective Date the
following, each dated such date, in form and substance satisfactory to the
Lenders (except for the Notes):
(i) executed counterparts of this Agreement duly executed and
delivered by the Borrower;
(ii) the Notes to the order of the Lenders;
(iii) certified copies of the resolutions of the board of directors of
the Borrower approving this Agreement and the Notes, and of all
documents evidencing other necessary corporate action and
governmental approvals, if any, with respect to this Agreement
and the Notes; and
(iv) a certificate of the Secretary or an Assistant Secretary of the
Borrower certifying the names and true signatures of the
officers
of the Borrower authorized to sign this Agreement and the Notes and the
other documents to be delivered hereunder.
SECTION 3.02. Conditions Precedent to each Borrowing. The obligation of each
Lender to make an Advance on the occasion of each Borrowing shall be subject to
the conditions precedent that the Effective Date shall have occurred and on the
date of such Borrowing the following statements shall be true (and each of the
giving of the applicable Borrowing Notice and the acceptance by the Borrower of
the proceeds of such Borrowing shall constitute a representation and warranty by
the Borrower that on the date of such Borrowing such statements are true):
(a) the representations and warranties contained in Section 4.01 (other
than the last sentence of subsection (e) thereof) are correct on and as of
the date of such Borrowing, before and after giving effect to such
Borrowing and to the application of the proceeds therefrom, as though made
on and as of such date, and
(b) no event has occurred and is continuing, or would result from such
Borrowing or from the application of the proceeds therefrom, that
constitutes a Default.
SECTION 3.03. Determinations Under Section 3.01. For purposes of determining
compliance with the conditions specified in Section 3.01, each Lender shall be
deemed to have consented to, approved or accepted or to be satisfied with each
document or other matter required thereunder to be consented to or approved by
or acceptable or satisfactory to the Lenders unless an officer of the Agent
responsible for the transactions contemplated by this Agreement shall have
received notice from such Lender prior to the date that the Borrower, by notice
to the Lenders, designates as the proposed Effective Date, specifying its
objection thereto. The Agent shall promptly notify the Lenders of the occurrence
of the Effective Date.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES
SECTION 4.01. Representations and Warranties of the Borrower. Effective as of
the Effective Date and, other than the last sentence of Section
4.01(e), as of the date of each Borrowing, the Borrower represents and warrants
as follows:
(a) The Borrower is a corporation duly organized, validly existing and in
good standing under the laws of the State of Delaware.
(b) The execution, delivery and performance by the Borrower of this
Agreement and the Notes are within the Borrower's corporate powers,
have been duly authorized by all necessary corporate action, and do
not contravene (i) the Borrower's charter or by-laws or (ii) any law
or any contractual restriction binding on or affecting the Borrower.
(c) No authorization or approval or other action by, and no notice to or
filing with, any Governmental Authority is required for the due
execution, delivery and performance by the Borrower of this Agreement
and the Notes.
(d) This Agreement has been, and the Notes when delivered hereunder will
have been, duly executed and delivered by the Borrower. This Agreement
is, and each of the Notes when delivered hereunder will be, legal,
valid and binding obligations of the Borrower enforceable against the
Borrower in accordance with their respective terms.
(e) The Consolidated balance sheets of the Borrower and its Subsidiaries
as at December 31, 1997 and June 30, 1998 and the related Consolidated
statements of income and cash flows of the Borrower and its
Subsidiaries for the fiscal year and the six months then ended, copies
of which have been furnished to the Lenders, fairly present the
financial condition of the Borrower and its Subsidiaries as at such
date and the results of the operations of the Borrower and its
Subsidiaries for the period ended on such date, all in accordance with
GAAP. Since June 30, 1998 there has been no Material Adverse Change.
(f) There is no pending or threatened action or proceeding affecting the
Borrower or any of its Subsidiaries before any court, governmental
agency or arbitrator, that (i) may materially adversely
affect the financial condition or operations of the Borrower or any of
its Subsidiaries or (ii) purports to affect the legality, validity or
enforceability of this Agreement or the Notes or the consummation of
the transactions contemplated hereby.
(g) The Borrower is not engaged in the business of extending credit for
the purpose of purchasing or carrying margin stock (within the meaning
of Regulation U issued by the Board of Governors of the Federal
Reserve System), and no proceeds of any Advance will be used to
purchase or carry any margin stock or to extend credit to others for
the purpose of purchasing or carrying any margin stock.
(h) The Advances and all related obligations of the Borrower under this
Agreement and the Notes rank pari passu with all other unsecured
obligations of the Borrower that are not, by their terms, expressly
subordinate to such other obligations of the Borrower.
ARTICLE V
COVENANTS OF THE BORROWER
SECTION 5.01. Affirmative Covenants. On and after the Change of Control Date and
so long as any Advance shall remain unpaid or any Lender shall have any
Commitment hereunder, the Borrower will, unless the Lenders shall otherwise
consent in writing:
(a) Compliance with Laws, Etc. Comply, and cause each of its Subsidiaries
to comply, in all material respects, with all applicable laws, rules,
regulations and orders, such compliance to include, without
limitation, compliance with ERISA and environmental laws.
(b) Payment of Taxes, Etc. Pay and discharge, and cause each of its
Subsidiaries to pay and discharge, before the same shall become
delinquent, (i) all taxes, assessments and governmental charges or
levies imposed upon it or upon its property and (ii) all lawful claims
that, if unpaid, might by law become a lien upon its property;
provided, however, that neither the Borrower nor any of its
Subsidiaries shall be required to pay or discharge any
such tax, assessment, charge or claim that is being contested in good
faith and by proper proceedings and as to which appropriate reserves
are being maintained, unless and until any lien resulting therefrom
attaches to its property and becomes enforceable against its other
creditors.
(c) Preservation of Corporate Existence, Etc. Preserve and maintain, and
cause each of its Subsidiaries to preserve and maintain, its corporate
existence, rights (charter and statutory) and franchises; provided,
however, that neither the Borrower nor any of its Subsidiaries shall
be required to preserve any right or franchise if the board of
directors of the Borrower or such Subsidiary shall determine that the
preservation thereof is no longer desirable in the conduct of the
business of the Borrower or such Subsidiary, as the case may be, and
that the loss thereof is not disadvantageous in any material respect
to the Borrower, such Subsidiary or the Lenders.
(d) Keeping of Books. Keep, and cause each of its Subsidiaries to keep,
proper books of record and account, in which full and correct entries
shall be made of all financial transactions and the assets and
business of the Borrower and each such Subsidiary in accordance with
GAAP or, in the case of any Subsidiary organized under the laws of a
jurisdiction other than the United States or any state thereof, the
equivalent of GAAP applicable in such jurisdiction.
(e) Maintenance of Properties, Etc. Maintain and preserve, and cause each
of its Subsidiaries to maintain and preserve, all of its properties
that are used or useful in the conduct of its business in good working
order and condition, ordinary wear and tear excepted.
(f) Reporting Requirements. Furnish to the Lenders:
(i) as soon as available and in any event within 45 days after the
end of each of the first three quarters of each fiscal year of
the Borrower, Consolidated balance sheets of the Borrower and
its Subsidiaries as of the end of such quarter and
Consolidated statements of income and cash flows of the Borrower
and its Subsidiaries for the period commencing at the end of the
previous fiscal year and ending with the end of such quarter,
duly certified (subject to year-end audit adjustments) by the
chief financial officer of the Borrower as having been prepared
in accordance with GAAP;
(ii) as soon as available and in any event within 90 days after the
end of each fiscal year of the Borrower, a copy of the annual
report for such year for the Borrower and its Subsidiaries,
containing Consolidated balance sheets of the Borrower and its
Subsidiaries as of the end of such fiscal year and Consolidated
statements of income and cash flows of the Borrower and its
Subsidiaries for such fiscal year, in each case accompanied by
an opinion acceptable to the Lenders by KPMG LLP or other
independent public accountants reasonably acceptable to the
Lenders;
(iii) as soon as possible and in any event within ten days after the
occurrence of each Default continuing on the date of such
statement, a statement of the chief financial officer of the
Borrower setting forth details of such Default and the action
that the Borrower has taken and proposes to take with respect
thereto;
(iv) promptly after the sending or filing thereof, copies of all
reports which the Borrower sends to any of its securityholders,
and copies of all reports and registration statements which the
Borrower or any of its Subsidiaries files with the Securities
and Exchange Commission or any national securities exchange;
(v) promptly after the filing or receiving thereof, copies of all
reports and notices which the Borrower or any Subsidiary files
under ERISA with the Internal Revenue Service or the Pension
Benefit Guaranty Corporation or the U.S. Department of Labor or
which the Borrower or any Subsidiary receives from the Pension
Benefit Guaranty Corporation;
(vi) promptly after the commencement thereof, notice of all actions
and proceedings before any court, governmental agency or
arbitrator affecting the Borrower or any of its Subsidiaries of
the type described in Section 4.01(f); and
(vii) such other information respecting the Borrower or any of its
Subsidiaries as any Lender through the Agent may from time to
time reasonably request.
SECTION 5.02. Negative Covenants. On and after October 1, 1998 and so long as
any Advance shall remain unpaid or any Lender shall have any Commitment
hereunder, the Borrower will not, unless the Lenders shall otherwise consent in
writing:
(a) Liens, Etc. Create or suffer to exist, or permit any of its
Subsidiaries to create or suffer to exist, any lien, security interest
or other charge or encumbrance, or any other type of preferential
arrangement, upon or with respect to any of its properties, whether
now owned or hereafter acquired, or assign, or permit any of its
Subsidiaries to assign, any right to receive income, in each case to
secure any Debt of any Person, other than:
(i) purchase money liens or purchase money security interests upon
or in any property acquired or held by the Borrower or any
Subsidiary in the ordinary course of business to secure the
purchase price of such property or to secure indebtedness
incurred solely for the purpose of financing the acquisition of
such property;
(ii) liens or security interests existing on such property at the
time of its acquisition (other than any such lien or security
interest created in contemplation of such acquisition);
(iii) liens for taxes, assessments and governmental charges
or levies to the extent not required to be paid under Section
5.01(b) hereof;
(iv) liens imposed by law, such as materialmen's, mechanics',
carriers', workmen's and repairmen's liens and other similar
liens arising in the ordinary course of business securing
obligations that are not overdue for a period of more than 30
days;
(v) pledges or deposits to secure obligations under workers'
compensation laws or similar legislation or to secure public or
statutory obligations;
(vi) easements, rights of way and other encumbrances on title to real
property that do not render title to the property encumbered
thereby unmarketable or materially adversely affect the use of
such property for its present purposes; and
(vii) liens incurred or deposits made in the ordinary course of
business to secure the performance of letters of credit, bids,
tenders, sales contracts, leases, surety, appeal and performance
bonds and other similar obligations not incurred in connection
with the borrowing of money;
provided that the aggregate principal amount of the Debt, other
indebtedness, taxes, assessments, governmental charges or levies and
other obligations secured by the liens or security interests referred
to in clauses (i) through (vii) of this Section 5.02(a) shall not
exceed $45,000,000 in the aggregate at any time outstanding.
(b) Accounting Changes. Make or permit, or permit any of its Subsidiaries
to make or permit, any change in accounting policies or reporting
practices, except as allowed by generally accepted accounting
principles.
SECTION 5.03. Mandatory Repayment of E.ON Loans. (a) In addition to any other
mandatory repayments or commitment reductions pursuant to this Agreement, within
90 days after the end of each fiscal year commencing with the fiscal year ending
December 31, 2000, Borrower shall pay E.ON an amount equal to 50% of the
Consolidated Net Free Cash Flow for such year as a mandatory repayment of
principal of outstanding E.ON Loans in accordance with the requirements of
Section 5.03(d). Within 80 days after the end of each fiscal year, Borrower
shall deliver to E.ON a certificate setting forth its calculation of the
Consolidated Net Free Cash Flow for the prior year and the components thereof,
together with documents supporting such calculation.
(b) In addition to any other mandatory repayments or commitment
reductions pursuant to this Agreement, on each date on or after
the Amendment Effective Date upon which any of Borrower or its
Subsidiaries receives any Net Proceeds, Borrower shall pay to E.ON
an amount equal to 75% of the Net Proceeds as a mandatory
repayment of principal of outstanding E.ON Loans in accordance
with the requirements of Section 5.03(d). At the time of each
payment under the preceding sentence, Borrower shall deliver to
E.ON a certificate setting forth a calculation of the Net Proceeds
received by Borrower and its Subsidiaries in such financing,
together with documents supporting such calculation. Within 30
days after the end of each fiscal year, Borrower shall deliver to
E.ON a certificate certifying that Borrower and its Subsidiaries
have not received any Net Proceeds during the prior fiscal year
that would have been subject to this Section 5.03(b) other than
those for which Borrower made all payments required by this
Section 5.03(b).
(c) To the extent that any Subsidiary has Restricted Proceeds and/or
Restricted Net Free Cash Flow in a fiscal year, Borrower shall use
reasonable commercial efforts to obtain as soon as practicable
such Restricted Proceeds and/or Restricted Net Free Cash Flow from
such Subsidiary by way of loans, dividends or similar
distributions (taking into account tax consequences and such
Subsidiary's reasonable capital requirements) in subsequent fiscal
years and, in the case of Restricted Proceeds, in the same fiscal
year. Any such Restricted Proceeds
and/or Restricted Net Free Cash Flow received by Borrower in
subsequent fiscal years by way of loans, dividends, reductions or
repurchases of equity, share redemptions or similar distributions
shall be considered Net Proceeds or Consolidated Net Free Cash
Flow, as the case may be, in such subsequent fiscal years, and
within forty-five (45) days following the end of the calendar
quarter in which such funds have been received by Borrower,
Borrower shall pay to E.ON as a mandatory repayment of principal
of outstanding E.ON Loans an amount equal to 50% of the
Restricted Net Free Cash Flow so received by Borrower and 75% of
the Restricted Proceeds so received by Borrower. For purposes of
this Section 5.03(c), the amount of Restricted Net Free Cash Flow
generated in a particular fiscal year shall be limited to the
lesser of (i) the Restricted Net Free Cash Flow for such fiscal
year and (ii) the sum of the Consolidated Net Free Cash Flow and
the Restricted Net Free Cash Flow for such fiscal year. By way of
illustration, if the Consolidated Net Free Cash Flow for a
particular fiscal year is negative $10 million and the Restricted
Net Free Cash Flow for such fiscal year is positive $30 million,
then for purposes of this Section 5.03(c) the Restricted Net Free
Cash Flow considered to be generated in such fiscal year shall be
$20 million.
(d) Each amount required to be applied to repay E.ON Loans pursuant
to Sections 5.03(a), (b) or (c) shall be applied (i) first, to
repay the remaining scheduled principal payments of the then
outstanding E.ON Loans that are term loans, and (ii) second, if
all outstanding E.ON Loans that are term loans have been fully
repaid, to repay the principal amount of any then outstanding
E.ON Loans that are revolving loans (and permanently reduce the
revolving loan commitment under such loan); provided, that in
each case, Borrower shall propose to E.ON, and Borrower and E.ON
shall seek to agree on, which term loan or revolving loan shall
be repaid and which advance or advances thereunder; provided,
further, that if Borrower and E.ON cannot agree on which term
loan or revolving loan and which advances
shall be repaid, E.ON may make such determination in its sole
discretion; provided, further, that Borrower shall not be required to
repay any loan prior to its Initial Termination Date unless all other
E.ON Loans with earlier Initial Termination Dates have previously been
repaid. In addition to each amount required to be applied to repay
E.ON Loans pursuant to Sections 5.03(a), (b) or (c) Borrower shall pay
accrued interest to the date of such repayment on the principal amount
repaid. Borrower shall not be required to pay any amounts under
Section 8.04(c) in connection with any loans repaid pursuant to
Sections 5.03(a), (b) or (c).
ARTICLE VI
EVENTS OF DEFAULT
SECTION 6.01. Events of Default. If any of the following events ("Events of
Default") shall occur and be continuing:
(a) the Borrower shall fail to pay (i) any principal of any Advance when
the same becomes due and payable or (ii) any interest on any Advance
or any other amount payable under this Agreement or any Note within
ten days from the date the same becomes due and payable; or
(b) any representation or warranty made by the Borrower herein or by the
Borrower (or any of its officers) in connection with this Agreement
shall prove to have been incorrect in any material respect when made;
or
(c) (i) the Borrower shall fail to perform or observe any term, covenant
or agreement contained in subsection (c) of Section 5.01 or in Section
5.02 or (ii) the Borrower shall fail to perform or observe any other
term, covenant or agreement contained in this Agreement or any Note on
its part to be performed or observed if such failure shall remain
unremedied for 30 days after written notice thereof shall have been
given to the Borrower by the Agent or any Lender; or
(d) the Borrower or any of its Subsidiaries shall fail to pay any
principal of or premium or interest on any Debt that is outstanding in
a principal amount of at least $5,000,000 in the aggregate (but
excluding Debt outstanding hereunder) of the Borrower or such
Subsidiary (as the case may be), when the same becomes due and payable
(whether by scheduled maturity, required prepayment, acceleration,
demand or otherwise), and such failure shall continue after the
applicable grace period, if any, specified in the agreement or
instrument relating to such Debt; or any other event shall occur or
condition shall exist under any agreement or instrument relating to
any such Debt and shall continue after the applicable grace period, if
any, specified in such agreement or instrument, if the effect of such
event or condition is to accelerate, or to permit the acceleration of,
the maturity of such Debt; or any such Debt shall be declared to be
due and payable, or required to be prepaid (other than by a regularly
scheduled required prepayment), redeemed, purchased or defeased, or an
offer to prepay, redeem, purchase or defease such Debt shall be
required to be made, in each case prior to the stated maturity
thereof; or
(e) the Borrower or any of its Subsidiaries shall generally not pay its
debts as such debts become due, or shall admit in writing its
inability to pay its debts generally, or shall make a general
assignment for the benefit of creditors; or any proceeding shall be
instituted by or against the Borrower or any of its Subsidiaries
seeking to adjudicate it a bankrupt or insolvent, or seeking
liquidation, winding up, reorganization, arrangement, adjustment,
protection, relief, or composition of it or its debts under any law
relating to bankruptcy, insolvency or reorganization or relief of
debtors, or seeking the entry of an order for relief or the
appointment of a receiver, trustee, custodian or other similar
official for it or for any substantial part of its property and, in
the case of any such proceeding instituted against it (but not
instituted by it), either such proceeding shall remain undismissed or
unstayed for a period of 60 days, or any of the actions sought
in such proceeding (including, without limitation, the entry of an
order for relief against, or the appointment of a receiver, trustee,
custodian or other similar official for, it or for any substantial
part of its property) shall occur; or the Borrower or any of its
Subsidiaries shall take any corporate action to authorize any of the
actions set forth above in this Section 6.01(e); or
(f) any judgment or order for the payment of money in excess of $5,000,000
shall be rendered against the Borrower or any of its Subsidiaries and
either (i) enforcement proceedings shall have been commenced by any
creditor upon such judgment or order or (ii) there shall be any period
of 30 consecutive days during which a stay of enforcement of such
judgment or order, by reason of a pending appeal or otherwise, shall
not be in effect;
then, and in any such event, the Agent (i) shall at the request, or may
with the consent, of the Lenders, by notice to the Borrower, declare the
obligation of each Lender to make Advances to be terminated, whereupon the
same shall forthwith terminate, and (ii) shall at the request, or may with
the consent, of the Lenders, by notice to the Borrower, declare the Notes,
all interest thereon and all other amounts payable under this Agreement to
be forthwith due and payable, whereupon the Notes, all such interest and
all such amounts shall become and be forthwith due and payable, without
presentment, demand, protest or further notice of any kind, all of which
are hereby expressly waived by the Borrower; provided, however, that in the
event of an actual or deemed entry of an order for relief with respect to
the Borrower under the Federal Bankruptcy Code, (A) the obligation of each
Lender to make Advances shall automatically be terminated and (B) the
Notes, all such interest and all such amounts shall automatically become
and be due and payable, without presentment, demand, protest or any notice
of any kind, all of which are hereby expressly waived by the Borrower.
ARTICLE VII
THE AGENT
SECTION 7.01. Authorization and Action. Each Lender hereby appoints and
authorizes the Agent to take such action as agent on its behalf and to exercise
such powers and discretion under this Agreement as are delegated to the Agent by
the terms hereof, together with such powers and discretion as are reasonably
incidental thereto. As to any matters not expressly provided for by this
Agreement (including, without limitation, enforcement or collection of the
Notes), the Agent shall not be required to exercise any discretion or take any
action, but shall be required to act or to refrain from acting (and shall be
fully protected in so acting or refraining from acting) upon the instructions of
the Lenders, and such instructions shall be binding upon all Lenders and all
holders of Notes; provided, however, that the Agent shall not be required to
take any action that exposes the Agent to personal liability or that is contrary
to this Agreement or applicable law. The Agent agrees to give to each Lender
prompt notice of each notice given to it by the Borrower pursuant to the terms
of this Agreement.
SECTION 7.02. Agent's Reliance, Etc. Neither the Agent nor any of its directors,
officers, agents or employees shall be liable for any action taken or omitted to
be taken by it or them under or in connection with this Agreement, except for
its or their own gross negligence or willful misconduct. Without limitation of
the generality of the foregoing, the Agent: (a) may treat the payee of any Note
as the holder thereof until the Agent receives and accepts an Assignment and
Acceptance entered into by the Lender that is the payee of such Note, as
assignor, and an Eligible Assignee, as assignee, as provided in Section 8.07;
(b) may consult with legal counsel (including counsel for the Borrower),
independent public accountants and other experts selected by it and shall not be
liable for any action taken or omitted to be taken in good faith by it in
accordance with the advice of such counsel, accountants or experts; (c) makes no
warranty or representation to any Lender and shall not be responsible to any
Lender for any statements, warranties or representations (whether written or
oral) made in or in connection with this Agreement; (d) shall not have
any duty to ascertain or to inquire as to the performance or observance of any
of the terms, covenants or conditions of this Agreement on the part of the
Borrower or to inspect the property (including the books and records) of the
Borrower; (e) shall not be responsible to any Lender for the due execution,
legality, validity, enforceability, genuineness, sufficiency or value of this
Agreement or any other instrument or document furnished pursuant hereto; and (f)
shall incur no liability under or in respect of this Agreement by acting upon
any notice, consent, certificate or other instrument or writing (which may be by
telecopier, telegram or telex) believed by it to be genuine and signed or sent
by the proper party or parties.
SECTION 7.03. E.ON. With respect to its Commitment, the Advance made by it and
the Note issued to it, E.ON shall have the same rights and powers under this
Agreement as any other Lender and may exercise the same as though it were not
the Agent; and the term "Lender" or "Lenders" shall, unless otherwise expressly
indicated, include E.ON in its individual capacity.
SECTION 7.04. Lender Credit Decision. Each Lender acknowledges that it has,
independently and without reliance upon the Agent or any other Lender and based
on the financial statements referred to in Section 4.01 and such other documents
and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each Lender also acknowledges that it
will, independently and without reliance upon the Agent or any other Lender and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under this Agreement.
SECTION 7.05. Indemnification. The Lenders agree to indemnify the Agent (to the
extent not reimbursed by the Borrower), ratably according to the respective
principal amounts of the Notes then held by each of them (or if no Notes are at
the time outstanding or if any Notes are held by Persons that are not Lenders,
ratably according to the respective amounts of their Commitments), from and
against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever that may be imposed on, incurred by, or asserted against the
Agent in any way relating to or arising out of this Agreement or any action
taken or omitted by the Agent under this Agreement, provided that no Lender
shall be liable for any portion of such liabilities, obligations, losses,
damages, penalties,
actions, judgments, suits, costs, expenses or disbursements resulting from the
Agent's gross negligence or willful misconduct. Without limitation of the
foregoing, each Lender agrees to reimburse the Agent promptly upon demand for
its ratable share of any out-of-pocket expenses (including counsel fees)
incurred by the Agent in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice in respect of
rights or responsibilities under, this Agreement, to the extent that the Agent
is not reimbursed for such expenses by the Borrower.
SECTION 7.06. Successor Agent. The Agent may resign at any time by giving
written notice thereof to the Lenders and the Borrower and may be removed at any
time with or without cause by the all of the Lenders. Upon any such resignation
or removal, the Lenders shall have the right to appoint a successor Agent. If no
successor Agent shall have been so appointed by the Lenders, and shall have
accepted such appointment, within 30 days after the retiring Agent's giving of
notice of resignation or the Lenders' removal of the retiring Agent, then the
retiring Agent may, on behalf of the Lenders, appoint a successor Agent, which
shall be a commercial bank organized under the laws of the United States or of
any state thereof and having a long-term senior unsecured debt rating by S&P of
"A" or better. Upon the acceptance of any appointment as Agent hereunder by a
successor Agent, such successor Agent shall thereupon succeed to and become
vested with all the rights, powers, discretion, privileges and duties of the
retiring Agent, and the retiring Agent shall be discharged from its duties and
obligations under this Agreement. After any retiring Agent's resignation or
removal hereunder as Agent, the provisions of this Article VII shall inure to
its benefit as to any actions taken or omitted to be taken by it while it was
Agent under this Agreement.
ARTICLE VIII
MISCELLANEOUS
SECTION 8.01. Amendments, Etc. No amendment or waiver of any provision of this
Agreement or the Notes, nor consent to any departure by the Borrower therefrom,
shall in any event be effective unless the same shall be in writing and signed
by the Required Lenders, and then such waiver or consent shall be effective only
in the specific instance and for the specific purpose for which given; provided,
however, that no amendment, waiver or consent shall, unless in writing and
signed by all the Lenders, do any of the following: (a) waive any of the
conditions specified in Section 3.01, (b) increase the Commitments of the
Lenders or subject the Lenders to any additional obligations, (c) reduce the
principal of, or interest on, the Notes or any fees or other amounts payable
hereunder, (d) postpone any date fixed for any payment of principal of, or
interest on, the Notes or any fees or other amounts payable hereunder, (e)
change the percentage of the Commitments or of the aggregate unpaid principal
amount of the Notes, or the number of Lenders, that shall be required for the
Lenders or any of them to take any action hereunder or (f) amend this Section
8.01; and provided further that no amendment, waiver or consent shall, unless in
writing and signed by the Agent in addition to the Lenders required above to
take such action, affect the rights or duties of the Agent under this Agreement
or any Note.
SECTION 8.02. Notices, Etc. All notices and other communications provided for
hereunder shall be in writing (including telecopier, telegraphic or telex
communication) and mailed, telecopied, telegraphed, telexed or delivered, if to
the Borrower, at its address at 000 Xxxxx Xxxxx, Xx. Xxxxxx, Xxxxxxxx 00000,
Attention: Treasurer (telecopier number (000) 000-0000); if to the Initial
Lender or the Agent, at Xxxxxxxxxxxxxx 0, X-00000 Xxxxxxxxxx, Xxxxxxx,
Attention: Corporate Finance (telecopier number 49 211 4579 354), with a copy to
E.ON North America, Inc., 000 Xxxxxxxxx Xxxxxx, Xxx Xxxx, XX 00000, Attention:
President (telecopier number (000) 000-0000); if to any other Lender or any
Bank, at its Eurodollar Lending Office specified in the Assignment and
Acceptance pursuant to which it became a Lender; or, as to any party, at such
other address as shall be designated by such party in a written notice to the
other parties. All such notices and communications shall, when mailed,
telecopied, telegraphed or telexed, be effective when received by the party to
whom such notice is addressed, except that notices and communications pursuant
to Section 2.06 shall not be effective until confirmed in writing by the party
to whom such notice is addressed. Delivery by telecopier of an executed
counterpart of any amendment or waiver of any provision of this Agreement or the
Notes or of any Schedule or Exhibit hereto to be executed and delivered
hereunder shall be effective as delivery of a manually executed counterpart
thereof.
SECTION 8.03. No Waiver; Remedies. No failure on the part of any Lender or the
Agent to exercise, and no delay in exercising, any right hereunder or under any
Note shall operate as a waiver thereof; nor shall any single or partial exercise
of any such right preclude any other or further exercise thereof or the exercise
of any other right. The remedies herein provided are cumulative and not
exclusive of any remedies provided by law.
SECTION 8.04. Costs and Expenses. (a) The Borrower agrees to pay on demand all
reasonable costs and expenses of the Agent in connection with the preparation,
execution, delivery, modification and amendment of this Agreement, the Notes and
the other documents to be delivered hereunder, including, without limitation,
the reasonable fees and expenses of counsel for the Agent with respect thereto
and with respect to advising the Agent as to its rights and responsibilities
under this Agreement. The Borrower further agrees to pay on demand all costs and
expenses of the Agent and the Lenders, if any (including, without limitation,
reasonable counsel fees and expenses), in connection with the enforcement
(whether through negotiations, legal proceedings or otherwise) of this
Agreement, the Notes and the other documents to be delivered hereunder,
including, without limitation, reasonable fees and expenses of counsel
for the Agent and each Lender in connection with the enforcement of rights under
this Section 8.04(a).
(b) The Borrower agrees to indemnify and hold harmless the Agent and
each Lender and each of their Affiliates and their officers, directors,
employees, agents and advisors (each, an "Indemnified Party") from and
against any and all claims, damages, losses, liabilities and expenses
(including, without limitation, reasonable fees and expenses of counsel)
that may be incurred by or asserted or awarded against any Indemnified
Party, in each case arising out of or in connection with or by reason of,
or in connection with the preparation for a defense of, any investigation,
litigation or proceeding arising out of, related to or in connection with
the Notes, this Agreement, any of the transactions contemplated herein or
the actual or proposed use of the proceeds of the Advances, whether or not
such investigation, litigation or proceeding is brought by the Borrower,
its directors, shareholders or creditors or an Indemnified Party or any
other Person or any Indemnified Party is otherwise a party thereto and
whether or not the transactions contemplated hereby are consummated, except
to the extent such claim, damage, loss, liability or expense is found in a
final, nonappealable judgment by a court of competent jurisdiction to have
resulted from such Indemnified Party's gross negligence or willful
misconduct. The Borrower also agrees not to assert any claim against the
Agent, any Lender, any of their Affiliates, or any of their respective
directors, officers, employees, attorneys and agents, on any theory of
liability, for special, indirect, consequential or punitive damages arising
out of or otherwise relating to the Notes, this Agreement, any of the
transactions contemplated herein or the actual or proposed use of the
proceeds of the Advances.
(c) If any payment of principal of any Advance is made by the Borrower
to or for the account of a Lender other than on the last day of the
Interest Period for such Advance, as a result of a payment pursuant to
Section 2.08(a), acceleration of the maturity of the Notes pursuant to Section
6.01 or for any other reason, the Borrower shall, upon demand by such Lender
(with a copy of such demand to the Agent), pay to the Agent for the account of
such Lender any amounts required to compensate such Lender for any additional
losses, costs or expenses that it may reasonably incur as a result of such
payment including, without limitation, any loss (including loss of anticipated
profits), cost or expense incurred by reason of the liquidation or reemployment
of deposits or other funds acquired by any Lender to fund or maintain such
Advance.
(d) Without prejudice to the survival of any other agreement of the
Borrower hereunder, the agreements and obligations of the Borrower
contained in Sections 2.09, 2.12 and 8.04 shall survive the payment in full
of principal, interest and all other amounts payable hereunder and under
the Notes.
SECTION 8.05. Right of Setoff. Upon (a) the occurrence and during the
continuance of any Event of Default and (b) the making of the request or the
granting of the consent specified by Section 6.01 to authorize the Agent to
declare the Notes due and payable pursuant to the provisions of Section 6.01,
each Lender and each of its Affiliates 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 such
Affiliate to or for the credit or the account of the Borrower against any and
all of the obligations of the Borrower now or hereafter existing under this
Agreement and the Note held by such Lender, whether or not such Lender shall
have made any demand under this Agreement or such Note and although such
obligations may be unmatured. Each Lender agrees promptly to notify the Borrower
after any such setoff and application, provided that the failure to give such
notice shall not affect the validity of such setoff and application. The rights
of each Lender and its Affiliates under this Section 8.05 are in addition to
other rights and remedies (including, without limitation, other
rights of setoff) that such Lender and its Affiliates may have.
SECTION 8.06. Binding Effect. This Agreement shall become effective upon the
Amendment Effective Date. Prior to the Amendment Effective Date, the Credit
Agreement shall remain in full force and effect.
SECTION 8.07. Assignments and Participations. (a) Each Lender may assign to one
or more Persons all or a portion of its rights and obligations under this
Agreement (including, without limitation, all or a portion of its Commitment,
the Advance owing to it and the Note or Notes held by it); provided, however,
that (i) each such assignment shall be of a constant, and not a varying,
percentage of all rights and obligations under this Agreement, (ii) except in
the case of an assignment to a Person that, immediately prior to such
assignment, was a Lender or an assignment of all of a Lender's rights and
obligations under this Agreement, the amount of the Commitment of the assigning
Lender being assigned pursuant to each such assignment (determined as of the
date of the Assignment and Acceptance with respect to such assignment) shall in
no event be less than $5,000,000 or an integral multiple of $1,000,000 in excess
thereof, (iii) each such assignment shall be to an Eligible Assignee, and (iv)
the parties to each such assignment shall execute and deliver to the Agent, for
its acceptance and recording in the Register, an Assignment and Acceptance,
together with any Note subject to such assignment. Upon such execution,
delivery, acceptance and recording, from and after the effective date specified
in each Assignment and Acceptance, (A) the assignee thereunder shall be a party
hereto and, to the extent that rights and obligations hereunder have been
assigned to it pursuant to such Assignment and Acceptance, have the rights and
obligations of a Lender hereunder and (B) the Lender assignor thereunder shall,
to the extent that rights and obligations hereunder have been assigned by it
pursuant to such Assignment and Acceptance, relinquish its rights and be
released from its obligations under this Agreement (and, in the case of an
Assignment and Acceptance covering all or the remaining portion of an assigning
Lender's rights and obligations under this Agreement, such Lender shall cease to
be a party hereto).
(b) By executing and delivering an Assignment and Acceptance, the
Lender assignor thereunder and the assignee thereunder confirm to and agree
with each other and the other parties hereto as follows: (i) other than as
provided in such Assignment and Acceptance, such assigning 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 or any other instrument
or document furnished pursuant hereto; (ii) such assigning Lender makes no
representation or warranty and assumes no responsibility with respect to
the financial condition of the Borrower or the performance or observance by
the Borrower of any of its obligations under this Agreement or any other
instrument or document furnished pursuant hereto; (iii) such assignee
confirms that it has received a copy of this Agreement, together with
copies of the financial statements referred to in Section 4.01 and such
other documents and information as it has deemed appropriate to make its
own credit analysis and decision to enter into such Assignment and
Acceptance; (iv) such assignee will, independently and without reliance
upon the Agent, such assigning Lender or any other Lender and based on such
documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action
under this Agreement; (v) such assignee confirms that it is an Eligible
Assignee; (vi) such assignee appoints and authorizes the Agent to take such
action as agent on its behalf and to exercise such powers and discretion
under this Agreement as are delegated to the Agent by the terms hereof,
together with such powers and discretion as are reasonably incidental
thereto; and (vii) such assignee agrees that it will perform in accordance
with their terms all of the obligations that by the terms of this Agreement
are required to be performed by it as a Lender.
(c) The Agent shall maintain at its address referred to in
Section 8.02 a copy of each Assignment and Acceptance delivered to and accepted
by it and a register for the recordation of the names and addresses of the
Lenders and the Commitment of, and principal amount of the Advances owing to,
each Lender from time to time (the "Register"). The entries in the Register
shall be conclusive and binding for all purposes, absent manifest error, and the
Borrower, the Agent and the Lenders may treat each Person whose name is recorded
in the Register as a Lender hereunder for all purposes of this Agreement. The
Register shall be available for inspection by the Borrower or any Lender at any
reasonable time and from time to time upon reasonable prior notice.
(d) Upon its receipt of an Assignment and Acceptance executed by an
assigning Lender and an assignee representing that it is an Eligible
Assignee, together with any Note or Notes subject to such assignment, the
Agent shall, if such Assignment and Acceptance has been completed and is in
substantially the form of Exhibit C hereto, (i) accept such Assignment and
Acceptance, (ii) record the information contained therein in the Register
and (iii) give prompt notice thereof to the Borrower. Within five Business
Days after its receipt of such notice, the Borrower, at its own expense,
shall execute and deliver to the Agent in exchange for the surrendered Note
a new Note to the order of such Eligible Assignee in an amount equal to the
Commitment assumed by it pursuant to such Assignment and Acceptance and, if
the assigning Lender has retained a Commitment hereunder, a new Note to the
order of the assigning Lender in an amount equal to the Commitment retained
by it hereunder. Such new Note or Notes shall be in an aggregate principal
amount equal to the aggregate principal amount of such surrendered Note or
Notes, shall be dated the effective date of such Assignment and Acceptance
and shall otherwise be in substantially the form of Exhibit A hereto.
(e) Each Lender may sell participations to one or more banks or other
entities (other than the Borrower or any of its Affiliates) in or to all or
a portion of its rights and obligations under this Agreement
(including, without limitation, all or a portion of its Commitment, the Advances
owing to it and the Note or Notes held by it); provided, however, that (i) such
Lender's obligations under this Agreement (including, without limitation, its
Commitment to the Borrower hereunder) shall remain unchanged, (ii) such Lender
shall remain solely responsible to the other parties hereto for the performance
of such obligations, (iii) such Lender shall remain the holder of any such Note
for all purposes of this Agreement, (iv) the Borrower, the Agent and the other
Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender's rights and obligations under this Agreement and
(v) no participant under any such participation shall have any right to approve
any amendment or waiver of any provision of this Agreement or any Note, or any
consent to any departure by the Borrower therefrom, except to the extent that
such amendment, waiver or consent would reduce the principal of, or interest on,
the Notes or any fees or other amounts payable hereunder, in each case to the
extent subject to such participation, or postpone any date fixed for any payment
of principal of, or interest on, the Notes or any fees or other amounts payable
hereunder, in each case to the extent subject to such participation.
(f) Any Lender may, in connection with any assignment or participation
or proposed assignment or participation pursuant to this Section 8.07, disclose
to the assignee or participant or proposed assignee or participant, any
information relating to the Borrower furnished to such Lender by or on behalf of
the Borrower; provided that, prior to any such disclosure, the assignee or
participant or proposed assignee or participant shall agree to preserve the
confidentiality of any Confidential Information relating to the Borrower
received by it from such Lender.
(g) Notwithstanding any other provision set forth in this Agreement,
any Lender may at any time create a security interest in all or any portion of
its rights under this Agreement (including, without limitation, the Advances
owing to it and the Note held by it) in favor of any Federal
Reserve Bank in accordance with Regulation A of the Board of Governors of the
Federal Reserve System.
(h) In connection with the initial assignment or proposed initial
assignment by the Initial Lender pursuant to this Section 8.07, the Borrower
shall, upon the request of the Initial Lender, furnish to the Initial Lender a
favorable opinion of counsel for the Borrower acceptable to the Initial Lender,
in form and substance reasonably satisfactory to the Initial Lender.
SECTION 8.08. Confidentiality. Neither the Agent nor any Lender shall disclose
any Confidential Information to any Person without the consent of the Borrower,
other than (a) to the Agent's or such Lender's Affiliates and their officers,
directors, employees, agents and advisors and to actual or prospective assignees
and participants, and then, in each case, only on a confidential and need-to-
know basis, (b) as required by any law, rule or regulation or judicial process
and (c) as requested or required by any state, federal or foreign authority or
examiner regulating banks or banking.
SECTION 8.09. Governing Law. This Agreement and the Notes shall be governed by,
and construed in accordance with, the laws of the State of New York.
SECTION 8.10. Execution in Counterparts. This Agreement may be executed in any
number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same agreement. Delivery of an
executed counterpart of a signature page to this Agreement by telecopier shall
be effective as delivery of a manually executed counterpart of this Agreement.
SECTION 8.11. Jurisdiction, Etc. (a) Each of the parties hereto 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 Notes, 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 any such New York State court 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 party may
otherwise have to bring any action or proceeding relating to this Agreement or
the Notes in the courts of any jurisdiction.
(b) Each of the parties hereto irrevocably and unconditionally waives,
to the fullest extent it may legally and effectively do so, any objection that
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 Notes 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.
[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]
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.
MEMC ELECTRONIC MATERIALS, INC.,
as Borrower
By /s/ Xxxxxxx X. Xxxxx
____________________________________
Name: Xxxxxxx X. Xxxxx
Title: Treasurer
E.ON AG, as Agent
By /s/ Xxxxxx Xxxxxxxxxxx
____________________________________
Name: Xx. Xxxxxx Xxxxxxxxxxx
Title: Chief Financial Officer
By /s/ Xxxxxxx Xxxxxxx
____________________________________
Name: Xx. Xxxxxxx Xxxxxxx
Title: Vice President
E.ON AG, as Initial Lender
By /s/ Xxxxxx Xxxxxxxxxxx
____________________________________
Name: Xx. Xxxxxx Xxxxxxxxxxx
Title: Chief Financial Officer
By /s/ Xxxxxxx Xxxxxxx
____________________________________
Name: Xx. Xxxxxxx Xxxxxxx
Title: Vice President
EXHIBIT A TO THE
REVOLVING CREDIT AGREEMENT
FORM OF PROMISSORY NOTE
U.S. $____________________ Dated: __________________, ______
FOR VALUE RECEIVED, the undersigned, MEMC ELECTRONIC MATERIALS, INC., a
Delaware corporation (the "Borrower"), HEREBY PROMISES TO PAY to the order of
[NAME OF LENDER], a [JURISDICTION] corporation (the "Lender") for its account on
the Termination Date (as defined in the Credit Agreement referred to below) the
principal SUM OF U.S.$[AMOUNT OF THE LENDER'S COMMITMENT IN FIGURES] or, if
less, the principal amount of the Advances made by the Lender to the Borrower
pursuant to the Revolving Credit Agreement dated as of [DATE OF AGREEMENT]
between the Borrower and E.ON AG, a company formed under the laws of the Federal
Republic of Germany ("E.ON"), as the Lender and as Agent (as amended,
supplemented or otherwise modified from time to time, the "Credit Agreement";
the terms defined therein being used herein as therein defined) outstanding on
the Termination Date.
The Borrower promises to pay interest on the unpaid principal amount of the
Advances from the date of the Advances until such principal amount is paid in
full, at such interest rates, and payable at such times, as are specified in the
Credit Agreement.
Both principal and interest are payable in lawful money of the United
States of America to E.ON, as Agent, at the Agent's Account, in same day funds.
The Advances owing to the Lender by the Borrower pursuant to the Credit
Agreement, and all payments made on account of principal thereof, shall be
recorded by the Lender and, prior to any transfer hereof, endorsed on the grid
attached hereto which is part of this Promissory Note.
This Promissory Note is one of the Notes referred to in, and is entitled to
the benefits of, the Credit Agreement. The Credit Agreement, among other things,
(i) provides for the making of Advances by the Lender to the Borrower from time
to time in an aggregate amount not to exceed at any time outstanding the Dollar
amount first above mentioned, the indebtedness of the Borrower resulting from
the Advances being evidenced by this Promissory Note, and (ii) contains
provisions for acceleration of the maturity hereof upon the happening of certain
stated events and also for prepayments on account of principal hereof prior to
the maturity hereof upon the terms and conditions therein specified.
MEMC ELECTRONIC MATERIALS, INC.
By_______________________________
Title:
ADVANCES AND PAYMENTS OF PRINCIPAL
Amount of Principal Unpaid Principal Notation
Date Amount of Advance Paid or Prepaid Balance Made By
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EXHIBIT B TO THE
REVOLVING CREDIT AGREEMENT
FORM OF NOTICE OF BORROWING
E.ON AG, as Agent
for the Lenders parties
to the Credit Agreement
referred to below
Xxxxxxxxxxxxxx 0
X-00000 Xxxxxxxxxx [Date]
Germany
Attention:_______________________
Ladies and Gentlemen:
The undersigned, MEMC ELECTRONIC MATERIALS, INC., refers to the Revolving
Credit Agreement, dated as of [DATE OF AGREEMENT] (as amended, supplemented or
otherwise modified from time to time, the "Credit Agreement", the terms defined
therein being used herein as therein defined), between the undersigned and E.ON
AG, as Initial Lender and as Agent for the Lenders thereunder, and hereby gives
you notice, irrevocably, pursuant to Section 2.02 of the Credit Agreement, that
the undersigned hereby requests a Borrowing under the Credit Agreement, and in
that connection sets forth below the information relating to such Borrowing (the
"Proposed Borrowing") as required by Section 2.02(a) of the Credit Agreement:
(a) The Business Day of the Proposed Borrowing is _______________,
________.
(b) The initial Interest Period for each Advance made as part of the
Proposed Borrowing is [one week] [one month] [two months] [three months] [twelve
months].
(c) The aggregate amount of the Proposed Borrowing is
$________________.
The undersigned hereby certifies that the following statements are true on
the date hereof, and will be true on and as of the date of the Proposed
Borrowing:
(i) the representations and warranties contained in Section 4.01
[(other than the last sentence of subsection (e) thereof)]* of the Credit
Agreement are correct, before and after giving effect to the Proposed Borrowing
and to the application of the proceeds therefrom, as though made on and as of
such date; and
(ii) (ii) no event has occurred and is continuing, or would result
from such Proposed Borrowing or from the application of the proceeds therefrom,
that constitutes a Default.
Very truly yours,
MEMC ELECTRONIC MATERIALS, INC.
By________________________________________
Title:
---------------
* To be included in any Borrowing Notice requesting a Borrowing to be made on
any Business Day other than the Effective Date.
EXHIBIT C TO THE
REVOLVING CREDIT AGREEMENT
FORM OF ASSIGNMENT AND ACCEPTANCE
Reference is made to the Revolving Credit Agreement dated as of [DATE OF
AGREEMENT] (as amended, supplemented or otherwise modified from time to time,
the "Credit Agreement") between MEMC ELECTRONIC MATERIALS, INC., a Delaware
corporation (the "Borrower"), and E.ON AG, a company formed under the laws of
the Federal Republic of Germany ("E.ON"), as Initial Lender and as Agent (the
"Agent") for the Lenders thereunder (each as defined in the Credit Agreement).
Terms defined in the Credit Agreement are used herein with the same meaning.
The "Assignor" and the "Assignee" referred to on Schedule 1 hereto agree as
follows:
1. The Assignor hereby sells and assigns to the Assignee, and the
Assignee hereby purchases and assumes from the Assignor, an interest in and to
the Assignor's rights and obligations under the Credit Agreement as of the date
hereof equal to the percentage interest specified on Schedule 1 hereto of all
outstanding rights and obligations under the Credit Agreement. After giving
effect to such sale and assignment, the Assignee's Commitment and the amount of
the Advances owing to the Assignee will be as set forth on Schedule 1 hereto.
2. The Assignor (a) represents and warrants that it is the legal and
beneficial owner of the interest being assigned by it hereunder and that such
interest is free and clear of any adverse claim; (b) makes no representation or
warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with the Credit Agreement
or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Credit Agreement or any other
instrument or document furnished pursuant thereto; (c) makes no representation
or warranty and assumes no responsibility with respect to the financial
condition of the Borrower or the performance or observance by the Borrower of
any of its obligations under the Credit Agreement or any other instrument or
document furnished pursuant thereto; and (d) attaches the Note held by the
Assignor and requests that the Agent exchange such Note for a new Note payable
to the order of the Assignee in an amount equal to the Commitment assumed by the
Assignee pursuant hereto or new Notes payable to the order of the Assignee in an
amount equal to the Commitment assumed by the Assignee pursuant hereto and the
Assignor in an amount equal to the Commitment retained by the Assignor under the
Credit Agreement, respectively, as specified on Schedule 1 hereto.
3. The Assignee (a) confirms that it has received a copy of the Credit
Agreement, together with copies of the financial statements referred to in
Section 4.01 thereof and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Assignment and Acceptance; (b) agrees that it will, independently and without
reliance upon the Agent, the Assignor or any other Lender and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under the Credit
Agreement; (c) confirms that it is an Eligible Assignee; (d) appoints and
authorizes the Agent to take such action as agent on its behalf and to exercise
such powers and discretion under the Credit Agreement as are delegated to the
Agent by the terms thereof, together with such powers and discretion as are
reasonably incidental thereto; (e) agrees that it will perform in accordance
with their terms all of the obligations that by the terms of the Credit
Agreement are required to be performed by it as a Lender; and (f) attaches any
U.S. Internal Revenue Service forms required under Section 2.12 of the Credit
Agreement.
4. Following the execution of this Assignment and Acceptance, it will
be delivered to the Agent for acceptance and recording by the Agent. The
effective date for this Assignment and Acceptance (the "Effective Date") shall
be the date of acceptance hereof by the Agent, unless otherwise specified on
Schedule 1 hereto.
5. Upon such acceptance and recording by the Agent, as of the
Effective Date, (a) the Assignee shall be a party to the Credit Agreement and,
to the extent provided in this Assignment and Acceptance, have the rights and
obligations of a Lender thereunder and (b) the Assignor shall, to the extent
provided in this Assignment and Acceptance, relinquish its rights and be
released from its obligations under the Credit Agreement.
6. Upon such acceptance and recording by the Agent, from and after the
Effective Date, the Agent shall make all payments under the Credit Agreement and
the Notes in respect of the interest assigned hereby (including, without
limitation, all payments of principal, interest and facility fees with respect
thereto) to the Assignee. The Assignor and Assignee shall make all appropriate
adjustments in payments under the Credit Agreement and the Notes for periods
prior to the Effective Date directly between themselves.
7. This Assignment and Acceptance shall be governed by, and construed
in accordance with, the laws of the State of New York.
8. This Assignment and Acceptance may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement. Delivery of an executed
counterpart of Schedule 1 to this Assignment and Acceptance by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment
and Acceptance.
IN WITNESS WHEREOF, the Assignor and the Assignee have caused Schedule 1 to
this Assignment and Acceptance to be executed by their officers thereunto duly
authorized as of the date specified thereon.
Schedule 1
to
Assignment and Acceptance
Percentage interest assigned: _______%
Assignee's Commitment: $_______________
Aggregate outstanding principal amount of Advances assigned: $_______________
Principal amount of Note payable to Assignee: $_______________
Principal amount of Note payable to Assignor: $_______________
Effective Date* : ___________________, _____
[NAME OF ASSIGNOR], as Assignor
By_____________________________________
Title:
Date: ___________________, _____
[NAME OF ASSIGNEE], as Assignee
By_____________________________________
Title:
Eurodollar Lending Office
[ADDRESS]
Accepted this ______ day
of _______________, ____
E.ON AG, as Agent
By_____________________________
Title:
---------------
* This date should be no earlier than five Business Days after the delivery
of this Assignment and Acceptance to the Agent.
