EXHIBIT 10.1
EXECUTION FORM
▇▇▇▇▇▇▇▇▇▇▇▇
MINING LLC
Dated as of
March 8, 2004
Amending and Supplementing the
Term Loan Agreement, dated as of April 27, 2001, as previously amended,
and providing for the issuance of
$20,375,000 aggregate principal amount of
6.85% Senior Guaranteed Secured Notes,
Series C, due December 31, 2011
and
$14,625,000 aggregate principal amount of
Floating Rate Senior Guaranteed Secured Notes,
Series D, due December 31, 2011
THIS
THIRD AMENDMENT TO TERM LOAN AGREEMENT (“Amendment”), dated as
of March 8, 2004, is made by and among ▇▇▇▇▇▇▇▇▇▇▇▇ MINING LLC, a
Delaware limited liability company (the “Company”), the
Guarantors (defined as each of the parties to this Amendment which is designated
as a “Guarantor” on the signature pages hereof) and each of the
Purchasers (defined as each of the parties to this Amendment which is designated
as a “Purchaser” on the signatures page hereof) party to the Term Loan
Agreement (defined below);
W I T N E S S E T H :
WHEREAS,
the parties hereto entered into that certain Term Loan Agreement, dated as of
April 27, 2001, as amended by that certain First Amendment to Note Purchase
Agreement, dated as of August 15, 2001, and that certain Second Amendment to
Term Loan Agreement dated as of March 25, 2002, by and among the Company, the
Guarantors and the Purchasers (the “Term Loan Agreement”;
capitalized terms not otherwise defined herein having the respective meanings
given to them under the Term Loan Agreement);
WHEREAS,
the Company has requested that the Purchasers amend certain provisions of the
Term Loan Agreement, for the purpose, among others, of providing for the issue
thereunder by the Company of two additional series of notes, consisting of the
Series C Notes and the Series D Notes referred to below, limited to $35,000,000
in original aggregate principal amount, ranking pari passu with the Notes
currently outstanding under the Term Loan Agreement and entitled, together with
such outstanding Notes, to the equal and ratable benefit and security of the
Security Documents and the other Financing Documents; and, in that connection,
the Company is desirous of effecting, and obtaining the consent of the
Purchasers to,
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(1) the authorization, issue and sale by the Company of the Series C Notes and the Series
D Notes and the modification of the Term Loan Agreement and the other Financing Documents as herein
contemplated in order to provide for such issue and sale; and
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(2) the execution and delivery by the Collateral Agent and the respective other parties
thereto of (A) a Confirmation of Security Documents (the "Security Document Amendment") in substantially
the form annexed hereto as Exhibit 2A, amending the Subject Security Documents referred to therein in
the manner therein set forth and confirming the lien and security interest of certain of the Security
Documents and extending the same for the equal and ratable benefit and security of all Notes, including,
from and after the issuance thereof as herein provided, the Series C Notes and the Series D Notes, (B)
amendments (the "Mortgage Amendments"), in substantially the respective forms annexed hereto as Exhibits
2B, 2C, 2D and 2E, to the Mortgages (Noteholders), and (C) an amendment (the "Intercreditor Agreement
Amendment"), in substantially the form annexed hereto as Exhibit 3, to the Intercreditor Agreement; and
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WHEREAS,
the parties hereto agree to amend the Term Loan Agreement, and to provide for
the issue and purchase of such Series C Notes and Series D Notes as hereinafter
provided, all on the terms and conditions set forth below;
NOW,
THEREFORE, the parties hereto, in consideration of the mutual covenants and
agreements herein contained and intending to be legally bound hereby, covenant
and agree as follows:
1. Amendment to Schedules to Term Loan Agreement.
(a) Amendment to Schedule A. Schedule A to the Term Loan Agreement shall be amended and
restated in the form of Schedule A hereto.
(b) Amendment to Schedule B.
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(i) The definitions of Consolidated Net Worth, Default Rate, Make-Whole Amount and
Permitted Affiliate Transactions set forth in Schedule B to the Term Loan Agreement shall be amended and
restated as follows:
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“Consolidated
Net Worth shall mean as of any date of determination consolidated
stockholders’ equity of the Company and its Subsidiaries as of such date
determined and consolidated in accordance with GAAP, but specifically excluding
the cumulative effect on stockholders’ equity arising from (i) Non-Cash
Income Tax Expense and (ii) 75% of Other Non-Cash Expenses.”
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“Default
Rate means (a) for purposes of any Series A Notes, a rate of interest
that is 2% per annum above the Base Rate Option (as defined and computed in
accordance with Schedule 1 to Exhibit 1A), as such rate changes from time
to time, (b) for purposes of any Series B Notes, the greater of (i) the
rate described in the foregoing clause (a) and (ii) 11.39%, (c) for
purposes of any Series C Note, the sum of (i) 2% per annum plus (ii) the greater
of (x) the rate of interest stated in clause (a) of the first paragraph of the
form of Series C Notes set forth in Exhibit 1C and (y) the rate of
interest publicly announced by PNC Bank National Association from time to time
in Pittsburgh, Pennsylvania, as its “base” or “prime” rate,
or (d) for purposes of any Series D Notes, the sum of (i) 2% per annum plus (ii)
the greater of (x) the Adjusted LIBOR Rate (as defined in the form of Series D
Notes set forth in Exhibit 1D) applicable to the Series D Notes in
accordance with their terms from time to time and (y) the rate of interest
publicly announced by PNC Bank National Association from time to time in
Pittsburgh, Pennsylvania, as its “base” or “prime” rate.
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“Make-Whole
Amount shall have the meaning (i) for Series B Notes, given such term in the
form of Series B Notes set forth in Exhibit 1B and (ii) for Series C
Notes, given such term in the form of Series C Notes set forth in Exhibit
1C.”
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“Permitted
Affiliate Transactions means: (i) the services to be provided and fees
payable under the Management Agreement or pursuant to Section 10.5(c) of this
Agreement, (ii) upon the occurrence and during the continuance of a force
majeure event (which arises through no fault of the Obligors) under any Coal
Supply Contract and which prevents the Obligors from supplying the buyers with
the requested amount of coal thereunder, sales of coal from any member of the
Parent Group to any of the Obligors to satisfy the requests of the buyers under
such Coal Supply Contract so long as the terms and conditions of the transaction
are commercially reasonable in all respects (including at a price which enables
the Obligor to earn a reasonable profit from the transaction and otherwise on
terms and conditions no less favorable to the Obligor than those offered by
independent third parties) and so long as such supply by the member of the
Parent Group is more favorable to the Company than supply of such coal by any
other Obligor able to supply it, (iii) in the event that any buyer of coal under
a Coal Supply Contract increases its demands for coal under such agreement
beyond the ability of the Obligor to the Coal Supply Contract to satisfy such
requirements, a member of the Parent Group shall be permitted to bid on and
supply coal to such buyer, provided that such action in no way reduces the
amount of coal that is to be supplied by the Obligor under the Coal Supply
Contract at such time or in the future, (iv) in the event that the Obligors have
excess coal production (beyond the needs of the buyers under the Coal Supply
Contracts) available for sale to non-Affiliate third parties, a member of the
Parent Group shall be permitted to act as a broker for the Obligors in such
sales and shall be entitled to a brokerage fee which is typical in the
marketplace for providing such services (such brokerage fees at the time of
Closing would be in the range of $0.25 to $0.50 per ton of coal sold) and (v) to
the extent that any Coal Supply Contract permits the buyer of coal thereunder to
require that coal be obtained from a source other than the Obligors, a member of
the Parent Group shall be permitted to sell coal to such buyer so long as the
buyer pays the fee associated with such activity in accordance with the Coal
Supply Contract; provided, however, that no such transaction referred to in any
of the foregoing clauses (i) through (v) shall constitute a Permitted Affiliate
Transaction unless it is consummated on terms and conditions that are
commercially reasonable in light of prevailing market conditions relative to the
subject matter of such transaction and that, when considered as a whole, are
generally similar to the terms and conditions that would obtain in a comparable
transaction consummated between unaffiliated parties.”
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(ii) Clause (i) to the definition of Permitted Investments set forth in Schedule B
to the Term Loan Agreement shall be amended and restated as follows:
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“(i) direct obligations of the United States of America or any agency or instrumentality
thereof or obligations backed by the full faith and credit of the United States of America or
obligations of state or local governments rated not lower than AAA/Aaa by Standard & Poor's or
▇▇▇▇▇'▇ maturing no later than (A) except as provided in the following subclause (B), twelve
months from the date of acquisition, or (B) in the case of investments of funds deposited to
the credit of the Series B Trust Account, December 31, 2008."
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(iii)
Schedule B to the Term Loan Agreement shall be further amended by inserting
the following definitions alphabetically into the list of defined terms:
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“‘Other
Non-Cash Expenses’ shall mean all reclamation amounts, pension
accruals, medical retiree accruals and all other non-cash charges or expenses
(other than Non-Cash Income Tax Expenses) of the Company and the Obligors that
would otherwise be deducted in determining Consolidated Net Worth in accordance
with GAAP, less all cash payments in respect of matters of the same character as
those regarding which any such amounts, accruals or other non-cash charges or
expenses are determined.”
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“‘Required
Series C Holders’ means, at any time, the holders of at least 51% in
principal amount of the Series C Notes (exclusive of Series C Notes then owned
by the Company or any of its Affiliates).”
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“‘Required
Series D Holders’ means, at any time, the holders of at least 51% in
principal amount of the Series D Notes (exclusive of Series D Notes then owned
by the Company or any of its Affiliates).”
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“‘Series
C Notes’ means all Notes issued under this Agreement and designated as
Series C Notes, which, among other things, have a maturity date of December
31, 2011, and have a fixed stated interest rate (subject to adjustment as
provided therein) of 6.85% per annum.”
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“‘Series
D Breakage Amount’ shall mean any reasonable loss, cost
or expense incurred by any holder of a Series D Note as a result of any payment
or prepayment thereof on a day other than a regularly scheduled Payment Date for
such Series D Note or at the scheduled maturity (whether voluntary, mandatory,
automatic, by reason of acceleration or otherwise), and any loss or expense
arising from the liquidation or reemployment of funds obtained by such holder to
purchase (or maintain the indebtedness evidenced by) such Note or from fees
payable to terminate the deposits from which such funds were obtained. Each
holder of a Series D Note shall determine the Series D Breakage Amount with
respect to the principal amount of its Series D Notes then being paid or prepaid
(or required to be paid or prepaid) by written notice to the Company setting
forth such determination in reasonable detail not less than two (2) Business
Days prior to the date of such payment or prepayment of Series D Notes. Each
such determination shall be conclusive absent manifest error.”
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“Series
D Notes means all Notes issued under this Agreement and designated as
Series D Notes, which, among other things, have a maturity date of December
31, 2011.”
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(c)
Amendments to Schedule 8.1. Schedule 8.1 to the Term Loan Agreement shall be amended
and restated in the form of Schedule 8.1 hereto.
(d)
Amendments to Schedule 10.16. Schedule 10.16 to the Term Loan Agreement shall be
amended and restated in the form of Schedule 10.16 hereto.
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(e)
Amendments to Schedule 10.17. Schedule 10.17 to the Term Loan Agreement shall be
amended and restated in the form of Schedule 10.17 hereto.
(f)
Additional Exhibits to Term Loan Agreement. The Term Loan Agreement is hereby amended
by adding thereto Exhibits 1C and 1D in the forms of Exhibit 1C and Exhibit 1D hereto.
(g)
Amendments to Disclosure Schedules. Schedules 5.1, 5.2, 5.3, 5.7, 5.9, 5.19, 5.21,
5.23, 5.25, 5.27, and 5.28 are hereby amended and restated, as of the date hereof, as set forth on Schedules 5.1,
5.2, 5.3, 5.7, 5.9, 5.19, 5.21, 5.23, 5,25, 5.27, and 5.28 hereto. The disclosure in respect of the
representation and warranty set forth in the second sentence of Section 5.8 of the Term Loan Agreement is hereby
amended and restated, as of the date hereof, as set forth on Schedule 5.8 hereto.
2. Amendments to Term Loan Agreement.
(a)
Authorization of Notes [Section 1]. Section 1 of the Term Loan Agreement shall be
amended by amending and restating the first two sentences of such section as follows:
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“The
Company will authorize the issue and sale of (i) $20,000,000 aggregate
principal amount of its Floating Rate Senior Guaranteed Secured Notes, Series A,
due June 30, 2002 (the “Series A Notes”) and
(ii) $100,000,000 aggregate principal amount of its 9.39% Senior Guaranteed
Secured Notes, Series B, due December 31, 2008 (the “Series B
Notes”), (iii) $20,375,000 aggregate principal amount of its 6.85%
Senior Guaranteed Secured Notes, Series C, due December 31, 2011 (the
“Series C Notes”) and (iv) $14,625,000 aggregate principal amount
of its Floating Rate Senior Guaranteed Secured Notes, Series D, due
December 31, 2011 (the “Series D Notes” and, together with the
Series A Notes, the Series B Notes, and the Series C Notes, the
“Notes”) such term to include any such Notes issued in substitution
therefor pursuant to Section 13 of this Agreement. The Series A Notes,
Series B Notes, the Series C Notes and the Series D Notes shall be
substantially in the respective forms set out in Exhibits 1A,
1B, 1C and 1D with such changes therefrom, if any, as may
be approved by each Purchaser and the Company.” |
(b)
Sale and Purchase of Notes [Section 2]. Section 2 of the Term Loan Agreement shall be
amended and restated as follows:
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“Subject
to the terms and conditions of this Agreement, the Company will issue and sell
to the Purchasers and each Purchaser will purchase from the Company, (1) at the
Closing provided for in Section 3.1, Notes in the Series and in the
principal amount specified opposite such Purchaser’s name in Schedule
A at the purchase price of 100% of the principal amount thereof with an
aggregate principal amount of Notes being sold at the Closing of $100,000,000,
(2) at the Deferred Closing provided for in Section 3.2, Notes in the Series and
in the principal amount specified opposite such Purchaser’s name in
Schedule A at the purchase price of 100% of the principal amount thereof
with an aggregate principal amount of Notes being sold at the Deferred Closing
of $20,000,000, (3) at the Series C Deferred Closing provided for in Section
3.3, Series C Notes in the principal amount, if any, specified opposite such
Purchaser’s name in Schedule A at the purchase price of 100% of the
principal amount thereof with an aggregate principal amount of Series C Notes
being sold at the Series C Deferred Closing of $20,375,000, and (4) at the
Series D Deferred Closing provided for in Section 3.4, Series D Notes in the
principal amount, if any, specified opposite such Purchaser’s name in
Schedule A at the purchase price of 100% of the principal amount thereof
with an aggregate principal amount of Notes being sold at the Series D Deferred
Closing of $14,625,000. Each Purchaser’s obligations hereunder are
several and not joint obligations, and no Purchaser shall have any liability to
any Person for the performance or nonperformance by any other Purchaser
hereunder.” |
(c)
Closing; Deferred Closing [Section 3]. Section 3 of the Term Loan Agreement shall be
amended by (i) amending and restating the title of such Section to read as follows "Closing; Deferred Closing;
Series C Deferred Closing; and Series D Deferred Closing" and (ii) adding the following new sections 3.3, 3.4
and 3.5 thereto immediately following section 3.2:
"3.3
Series C Deferred Closing.
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The
sale and purchase of the Series C Notes to be purchased by the Purchasers
scheduled to purchase Series C Notes shall occur at the offices of ▇▇▇▇▇▇▇▇▇
Traurig, LLP, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, at 10:00 a.m., at
a closing (the “Series C Deferred Closing”) on March 8, 2004 or such
other Business Day on or prior to thirty (30) days thereafter as may be agreed
upon by the Company and the Purchasers scheduled to purchase Series C Notes, as
indicated on Schedule A hereto (the “Series C Deferred Closing Date”).
At the Series C Deferred Closing, the Company will deliver to each Purchaser the
Series C Notes, if any, to be purchased by such Purchaser on such date in the
form of a single Note (or such greater number of Notes in denominations of at
least $100,000 as such Purchaser may request) dated the date of the Series C
Deferred Closing and registered in such Purchaser’s name (or in the name of
such Purchaser’s nominee), against delivery by such Purchaser to the
Company or its order of immediately available funds in the amount of the
purchase price therefor by wire transfer of immediately available funds for the
account of the Company to account name: ▇▇▇▇▇▇▇▇▇▇▇▇ Mining LLC, account number
0850817867 at ▇▇▇▇▇ Fargo, ABA# ▇▇▇▇▇▇▇▇▇, Contact ▇▇▇▇▇▇▇▇▇▇▇▇: ▇▇. ▇▇▇▇▇▇
▇. ▇▇▇▇. If the Series C Deferred Closing fails to occur on or before the date
specified above or if at the Series C Deferred Closing the Company shall fail to
tender such Notes to any Purchaser as provided above in this Section 3.3,
or any of the conditions specified in Section 4.3 shall not have been fulfilled
to such Purchaser’s satisfaction, such Purchaser shall, at such
Purchaser’s election, be relieved of all further obligations under this
Agreement to purchase additional Notes, without thereby waiving any rights such
Purchaser may have by reason of such failure or such nonfulfillment.
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3.4
Series D Deferred Closing.
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The
sale and purchase of the Series D Notes to be purchased by the Purchasers
scheduled to purchase Series D Notes shall occur at the offices of ▇▇▇▇▇▇▇▇▇
Traurig, LLP, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, at 10:00 a.m., at a
closing (the “Series D Deferred Closing”) on such Business Day as may
be determined by the Company by providing such Purchasers as are scheduled to
purchase Series D Notes, as indicated on Schedule A hereto with no less
than thirty (30) days prior written notice of the Series D Deferred Closing,
which date shall occur no sooner than the seven (7) month anniversary of the
date of the Series C Deferred Closing and no later than December 31, 2004, or
such other Business Day as may be agreed upon by the Company and such Purchasers
of the Series D Notes (the “Series D Deferred Closing Date”). At the
Series D Deferred Closing, the Company will deliver to each such Purchaser the
Series D Notes to be purchased by such Purchaser on such date in the form of a
single Note (or such greater number of Notes in denominations of at least
$100,000 as such Purchaser may request) dated the date of the Series D Deferred
Closing and registered in such Purchaser’s name (or in the name of such
Purchaser’s nominee), against delivery by such Purchaser to the Company or
its order of immediately available funds in the amount of the purchase price
therefor by wire transfer of immediately available funds for the account of the
Company to account name: ▇▇▇▇▇▇▇▇▇▇▇▇ Mining LLC, account number 0850817867 at
▇▇▇▇▇ Fargo, ABA# ▇▇▇▇▇▇▇▇▇, Contact ▇▇▇▇▇▇▇▇▇▇▇▇: ▇▇. ▇▇▇▇▇▇ ▇. ▇▇▇▇. If
the Series D Deferred Closing fails to occur on or before the date
specified above or if at the Series D Deferred Closing the Company shall fail to
tender such Notes to any Purchaser as provided above in this Section 3.4,
or any of the conditions specified in Section 4.4 shall not have been
fulfilled to such Purchaser’s satisfaction, such Purchaser shall, at such
Purchaser’s election, be relieved of all further obligations under this
Agreement to purchase additional Notes, without thereby waiving any rights such
Purchaser may have by reason of such failure or such nonfulfillment.”
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"3.5.
Series D Commitment Fee.
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The
Company shall pay each Purchaser scheduled to purchase Series D Notes a
commitment fee (the “Series D Commitment Fee”) equal to 0.50% per
annum (computed on the basis of a 360-day year of twelve 30 day months) on the
principal amount of Series D Notes scheduled to be purchased by such Purchaser
as set forth on Schedule A for the period from March 8, 2004 to the date
of the Series D Deferred Closing. Accrued Series D Commitment Fees shall be
payable to each such Purchaser scheduled to purchase Series D Notes on each
Payment Date subsequent to the Series C Closing Date and any balance accrued to
the date of the Series D Deferred Closing shall be paid on such date.”
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(d)
Conditions to Closing and Deferred Closing [Section 4]. Section 4 of the Term Loan
Agreement shall be amended by (i) amending and restating the title of such Section to read as follows "Conditions
to Closing, Deferred Closing, Series C Deferred Closing; and Series D Deferred Closing" and (ii) adding the
following new sections 4.3 and 4.4 thereto immediately following section 4.2:
"4.3
Series C Deferred Closing.
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Each
Purchaser’s obligation to purchase and pay for the Notes, if any, to be
sold to such Purchaser at the Series C Deferred Closing is subject to the
fulfillment to such Purchaser’s satisfaction, prior to or at the Series C
Deferred Closing, of each of the following conditions:
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(a) Series C Deferred Closing Date.
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The
Series C Deferred Closing shall take place on or before March 15, 2004, unless
extended by the Purchasers scheduled to purchase Series C Notes, as indicated on
Schedule A, in their sole discretion.
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All
material consents and governmental approvals to effectuate the transactions
contemplated hereunder to be consummated at the Series C Deferred Closing,
including the issue and purchase of the Series C Notes, shall have been obtained
in form and substance satisfactory to the Purchasers of the Series C Notes.
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The
Company shall sell to the Purchasers of the Series C Notes and the Purchasers of
the Series C Notes shall purchase the Notes contemplated herein to be purchased
by such Purchasers at the Series C Deferred Closing, on a substantially
contemporaneous basis.
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The
representations and warranties of each of the Obligors in this Agreement and in
the other Financing Documents shall be correct when made and at the time of the
Series C Deferred Closing.
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Each
Obligor shall have performed and complied with all agreements and conditions
contained in this Agreement required to be performed or complied with by it
prior to or at the Series C Deferred Closing, and after giving effect to the
issue and sale of the Series C Notes (and the application of the proceeds
thereof as contemplated by Section 5.10) no Potential Default or Event of
Default shall have occurred and be continuing.
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(i) Officer's Certificate. Each Obligor shall have delivered to
each Purchaser of Series C Notes an Officer's Certificate, dated the date of
the Series C Deferred Closing, certifying that the conditions specified in
subdivisions (a), (b) and (h), and the first and third sentences of
subdivision (i), of Section 4.1 have been fulfilled.
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(ii)
Secretary's Certificate. Each Obligor shall have delivered
to each Purchaser of Series C Notes a certificate certifying as to the
following:
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1)
all action taken by such Obligor in connection with
this Agreement and the other Financing Documents has been and
continues to be duly authorized pursuant to the resolutions certified
and delivered to the Purchasers;
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2)
the Authorized Officers specified in the
certificate delivered under Section 4.1(c)(ii) of this Agreement have
not changed or providing a new or updated listing of such officers
with specimen signatures; and
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3)
there has been no change in such Obligor's
organizational documents, including its certificate of incorporation,
bylaws, certificate of limited partnership, partnership agreement,
certificate of formation, and limited liability company agreement, as
the case may be, since the Closing which have not been previously
furnished by the Company to the Purchasers (or certifying as true and
correct copies annexed thereto of any new or updated organizational
documents, including its certificate of incorporation, bylaws,
certificate of limited partnership, partnership agreement,
certificate of formation, and limited liability company agreement, as
the case may be) and such Obligor continues to exist and is in good
standing in each state where organized or qualified to do business.
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The
Obligors shall have caused to be delivered endorsements, satisfactory to the
Purchasers, to the title insurance policy or policies delivered pursuant to
Section 4.2(d) of this Agreement.
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The
respective appropriate Obligors and the Collateral Agent shall have duly entered
into (i) an amendment to the Guaranty Agreements, in a form satisfactory to the
Purchasers, confirming that the Guarantors will be liable for the Obligations as
increased by the Notes being issued and sold at the Series C Deferred Closing,
and (ii) amendments to the Mortgages (Noteholders) with respect to real estate
interests and to each other Security Document effective to reflect the issuance
of, and extend the Lien of the Security Documents to secure, the Notes to be
issued and sold at the Series C Deferred Closing. Each such Mortgage
(Noteholders), each such amendment and all financing statements and/or
instruments shall have been executed and delivered for recording or filing in
public offices as may be necessary or desirable in order to perfect the Liens
granted or extended thereby as against creditors of and purchasers from the
Obligors. The Purchasers shall have received such evidence as they may
reasonably request as to the absence of any intervening Liens since the Closing
Date that would affect the priority of the Lien of the Security Documents as
such Security Documents are amended by the amendments referred to in the
preceding sentence.
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Each
Purchaser shall have received opinions in form and substance satisfactory to it,
dated the Series C Deferred Closing Date, (i) from the General Counsel of
the Company and ▇▇▇▇ and ▇▇▇▇ LLP, counsel for the Obligors, covering such
matters incident to the transactions contemplated to occur hereunder in
connection with the Series C Deferred Closing as such Purchaser or its special
counsel may reasonably request (and the Obligors hereby instruct their counsel
to deliver such opinion to the Purchasers) and (ii) from ▇▇▇▇▇▇▇▇▇
Traurig, LLP, the Purchasers’ special counsel in connection with such
transactions, covering such matters incident to such transactions as such
Purchaser may reasonably request.
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(j) Purchase Permitted By Applicable Law, etc.
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On
the Series C Deferred Closing Date the purchase of Series C Notes hereunder by
each Purchaser scheduled to purchase the same, as indicated on Schedule A
hereto, shall (i) be permitted by the laws and regulations of each
jurisdiction to which such Purchaser is subject, without recourse to provisions
(such as Section 1405(a)(8) of the New York Insurance Law) permitting limited
investments by insurance companies without restriction as to the character of
the particular investment, (ii) not violate any applicable law or
regulation (including, without limitation, Regulation U, T or X of the Board of
Governors of the Federal Reserve System) and (iii) not subject such
Purchaser to any tax, penalty or liability under or pursuant to any applicable
law or regulation, which law or regulation was not in effect on March 8, 2004.
If requested by any such Purchaser, such Purchaser shall have received an
Officer’s Certificate certifying as to such matters of fact as such
Purchaser may reasonably specify to enable such Purchaser to determine whether
such purchase is so permitted.
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Without
limiting the provisions of Section 15.1 hereof, the Company shall have paid at
or before the date of the Series C Deferred Closing the fees, charges and
disbursements of the Purchasers’ special counsel referred to in Section
4.3(h) to the extent reflected in an invoice of such counsel rendered to the
Company at least one Business Day prior to such date.
|
| |
(l) Private Placement Number.
|
| |
A
Private Placement Number issued by S&P’s CUSIP Service Bureau (in
cooperation with the Securities Valuation Office of the National Association of
Insurance Commissioners) shall have been obtained for the Series C Notes.
|
| |
All
limited liability company, corporate and other proceedings in connection with
the transactions contemplated by this Agreement to occur at or prior to the
Series C Deferred Closing, and all documents and instruments incident to such
transactions, shall be reasonably satisfactory to each Purchaser and the
Purchasers’ special counsel, and such Purchaser and such special counsel
shall have received all such counterpart originals or certified or other copies
of such documents as such Purchaser or special counsel may reasonably request.
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4.4
Series D Deferred Closing.
| |
Each
Purchaser’s obligation to purchase and pay for the Notes, if any, to be
sold to such Purchaser at the Series D Deferred Closing is subject to the
fulfillment to such Purchaser’s satisfaction, prior to or at the Series D
Deferred Closing, of each of the following conditions:
|
| |
(a) Series C Deferred Closing.
|
| |
The
Series C Deferred Closing shall have been consummated in accordance with the
terms hereof upon the fulfillment, or waiver by the Purchasers of the Series C
Notes, of the conditions set forth in Section 4.3. The Series D Deferred Closing
shall take place on or before December 31, 2004, unless extended by the
Purchasers scheduled to purchase Series D Notes, as indicated on Schedule
A, in their sole discretion.
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11
| |
All
material consents and governmental approvals to effectuate the transactions
contemplated hereunder to be consummated at the Series D Deferred Closing,
including the issue and purchase of the Series D Notes, shall have been obtained
in form and substance satisfactory to the Purchasers of the Series D Notes.
|
| |
The
Company shall sell to the Purchasers of the Series D Notes and the Purchasers of
the Series D Notes shall purchase the Notes contemplated herein to be purchased
by such Purchasers at the Series D Deferred Closing, on a substantially
contemporaneous basis.
|
| |
The
representations and warranties of each of the Obligors in this Agreement and in
the other Financing Documents shall be correct when made and at the time of the
Series D Deferred Closing.
|
| |
Each
Obligor shall have performed and complied with all agreements and conditions
contained in this Agreement required to be performed or complied with by it
prior to or at the Series D Deferred Closing, and after giving effect to the
issue and sale of the Series D Notes (and the application of the proceeds
thereof as contemplated by Section 5.10) no Potential Default or Event of
Default shall have occurred and be continuing.
|
| |
(i) Officer's Certificate. Each Obligor shall have delivered to
each Purchaser of the Series D Notes an Officer's Certificate, dated the date
of the Series D Deferred Closing, certifying that the conditions specified in
subdivisions (a), (b) and (h), and the first and third sentences of
subdivision (i), of Section 4.1 have been fulfilled.
|
| |
(ii)
Secretary's Certificate. Each Obligor shall have delivered
to each Purchaser of Series D Notes a certificate certifying as to the
following:
|
| |
1)
all action taken by such Obligor in connection with
this Agreement and the other Financing Documents has been and
continues to be duly authorized pursuant to the resolutions certified
and delivered to the Purchasers;
|
12
| |
2)
the Authorized Officers specified in the
certificate delivered under Section 4.1(c)(ii) of this Agreement have
not changed or providing a new or updated listing of such officers
with specimen signatures; and
|
| |
3)
except as previously provided to the Purchasers,
there has been no change in such Obligor's organizational documents,
including its certificate of incorporation, bylaws, certificate of
limited partnership, partnership agreement, certificate of formation,
and limited liability company agreement, as the case may be, since
the date of the Series C Deferred Closing (or certifying copies
annexed thereto of any new or updated organizational documents,
including its certificate of incorporation, bylaws, certificate of
limited partnership, partnership agreement, certificate of formation,
and limited liability company agreement, as the case may be) and such
Obligor continues to exist and is in good standing in each state
where organized or qualified to do business.
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| |
The
Obligors shall have caused to be delivered endorsements, satisfactory to the
Purchasers, to the title insurance policy or policies delivered pursuant to
Section 4.2(d) of this Agreement.
|
| |
The
respective appropriate Obligors and the Collateral Agent shall have duly entered
into (i) an amendment to the Guaranty Agreements, in a form satisfactory to the
Purchasers, confirming that the Guarantors will be liable for the Obligations as
increased by the Notes being issued and sold at the Series D Deferred Closing,
and (ii) amendments to the Mortgages (Noteholders) with respect to real estate
interests and to each other Security Document effective to reflect the issuance
of, and extend the Lien of the Security Documents to secure, the Notes to be
issued and sold at the Series D Deferred Closing. Each such Mortgage
(Noteholders), each such amendment and all financing statements and/or
instruments shall have been executed and delivered for recording or filing in
public offices as may be necessary or desirable in order to perfect the Liens
granted or extended thereby as against creditors of and purchasers from the
Obligors. The Purchasers shall have received such evidence as they may
reasonably request as to the absence of any intervening Liens since the Closing
Date that would affect the priority of the Lien of the Security Documents
theretofore delivered, as such Security Documents are amended by the amendments
referred to in the preceding sentence.
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13
| |
Each
Purchaser shall have received opinions in form and substance satisfactory to it,
dated the Series D Deferred Closing Date, (i) from the General Counsel of
the Company and ▇▇▇▇ and ▇▇▇▇ LLP, counsel for the Obligors, covering such
matters incident to the transactions contemplated to occur hereunder in
connection with the Series D Deferred Closing as such Purchaser or its special
counsel may reasonably request (and the Obligors hereby instruct their counsel
to deliver such opinion to the Purchasers) and (ii) from ▇▇▇▇▇▇▇▇▇
Traurig, LLP, the Purchasers’ special counsel in connection with such
transactions, covering such matters incident to such transactions as such
Purchaser may reasonably request.
|
| |
(j) Purchase Permitted By Applicable Law, etc.
|
| |
On
the Series D Deferred Closing Date the purchase of Series D Notes hereunder by
each Purchaser scheduled to purchase the same, as indicated on Schedule A
hereto, shall (i) be permitted by the laws and regulations of each
jurisdiction to which such Purchaser is subject, without recourse to provisions
(such as Section 1405(a)(8) of the New York Insurance Law) permitting limited
investments by insurance companies without restriction as to the character of
the particular investment, (ii) not violate any applicable law or
regulation (including, without limitation, Regulation U, T or X of the Board of
Governors of the Federal Reserve System) and (iii) not subject such
Purchaser to any tax, penalty or liability under or pursuant to any applicable
law or regulation, which law or regulation was not in effect on March 8, 2004.
If requested by any such Purchaser, such Purchaser shall have received an
Officer’s Certificate certifying as to such matters of fact as such
Purchaser may reasonably specify to enable such Purchaser to determine whether
such purchase is so permitted.
|
| |
Without
limiting the provisions of Section 15.1 hereof, the Company shall have paid at
or before the date of the Series D Deferred Closing the fees, charges and
disbursements of the Purchasers’ special counsel referred to in Section
4.4(h) to the extent reflected in an invoice of such counsel rendered to the
Company at least one Business Day prior to such date.
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14
| |
(l) Private Placement Number.
|
| |
A
Private Placement Number issued by S&P’s CUSIP Service Bureau (in
cooperation with the Securities Valuation Office of the National Association of
Insurance Commissioners) shall have been obtained for the Series D Notes.
|
| |
All
limited liability company, corporate and other proceedings in connection with
the transactions contemplated by this Agreement to occur at or prior to the
Series D Deferred Closing, and all documents and instruments incident to such
transactions, shall be reasonably satisfactory to each Purchaser and the
Purchasers’ special counsel, and such Purchaser and such special counsel
shall have received all such counterpart originals or certified or other copies
of such documents as such Purchaser or special counsel may reasonably request.
|
(e)
USA Patriot Act [Section 5]. Section 5 of the Term Loan Agreement shall be further
amended by adding the following new Section 5.38 thereto immediately following Section 5.37 thereof:
"5.38
USA Patriot Act.
| |
As
of the Series C Deferred Closing Date and the Series D Deferred Closing Date,
neither the Company nor any of the Obligors (i) is a Person whose property or
interests in property are blocked pursuant to Section 1 of Executive Order 13224
of September 23, 2001 Blocking Property and Prohibiting Transactions With
Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079
(2001)) or (ii) knowingly engages in any dealings or transactions, or is
otherwise knowingly associated, with any such Person. Neither the Company nor
any of the Obligors is or will be in violation of the Uniting and Strengthening
America By Providing Appropriate Tools Required To Intercept And Obstruct
Terrorism (USA Patriot Act of 2001), except for any such violation which would
not, either alone or together with all other such violations, constitute or be
reasonably likely to result in a Material Adverse Change.”
|
(f)
Use of Proceeds; Margin Stock; Section 20 Subsidiaries [Section 5.10]. Clause (a) of
section 5.10 of the Term Loan Agreement shall be amended and restated as follows:
| |
“The
Obligors will apply the proceeds of the sale of the Series A Notes and the
Series B Notes, together with other funds of the Company, to consummate the
acquisitions contemplated by the Asset Acquisition Agreement and the Stock
Purchase Agreement. The Obligors will apply the proceeds of the sale of the
Series C Notes and the Series D Notes to make distributions or payments to the
Parent (whether as contemplated by clause (c) of Section 10.5 of this Agreement
or to repay accrued obligations of the Company to the Parent) and for other
working capital purposes.”
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15
(g)
Regularly Scheduled Prepayments; Payment at Final Maturity [Section 8.1].
| |
(i)
Clause (a) of section 8.1 of the Term Loan Agreement shall be amended and
restated as follows:
|
| |
“The
Notes of each Series are subject to regularly scheduled prepayments of principal
in accordance with Schedule 8.1. On each Payment Date, the Company shall
prepay the principal amount of Notes of each Series (if any) specified opposite
such Payment Date in the column applicable to such Series on Schedule 8.1
(or, in each case, such lesser principal amount of Notes of such Series as shall
then be outstanding), each such prepayment to be at par and without payment of
the Make-Whole Amount or any premium or Series D Breakage Amount except for
breakage fees, if any, associated with prepaying any Borrowing Tranche of the
Series A Notes bearing interest at a Euro-Rate Option in accordance with
Schedule 1 annexed to the form of Series A Note set forth in Exhibit 1A;
provided that, upon any partial prepayment of the Notes of any Series
pursuant to Section 8.2(b), the principal amount of each required prepayment of
the Notes of such Series becoming due under this Section 8.1 on and after the
date of such partial prepayment shall be reduced in the same proportion as the
aggregate unpaid principal amount of the Notes of such Series is reduced as a
result of such partial prepayment. In no event shall a prepayment of the
principal amount of the Notes of any one Series result in a reduction in the
principal amount of the Notes of any other Series required to be prepaid under
this Section 8.1 on any Payment Date.”
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| |
(ii)
Section 8.1 of the Term Loan Agreement shall be further amended by adding the
following new clause (d) thereto immediately following clause (c) thereof:
|
| |
“(d)
On December 31, 2011, the Company will pay the entire remaining unpaid
principal balance of the Series C Notes and the Series D Notes, together with all interest
accrued thereon."
|
(h)
Mandatory Prepayments with Surplus Cash Flow; Optional Prepayments [Section 8.2].
| |
(i)
Clause (b) of section 8.2 of the Term Loan Agreement shall be amended and
restated as follows:
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16
| |
“The
Company may, at its option, upon notice as provided below, prepay at any time
all, or from time to time any part of, the Notes, in a principal amount not less
than $2,000,000 of the aggregate principal amount of the Notes then outstanding
in the case of a partial prepayment, plus, (x) in the case of a prepayment of
Series B Notes or Series C Notes, the Make-Whole Amount determined for the
prepayment date with respect to the principal amount of Series B Notes or
Series C Notes, as the case may be, being prepaid or (y) in the case of a
prepayment of Series D Notes on any date other than a Payment Date, the Series D
Breakage Amount determined for the prepayment date with respect to such
principal amount; provided, that (i) no prepayment may be made under this
Section 8.2(b) of the principal amount of any Series D Note until after the
second anniversary of the Series D Deferred Closing and (ii) so long as Notes of
more than one Series shall remain outstanding, the Company may not prepay any
Notes pursuant to this Section 8.2(b) at any time during which there shall be
continuing any Potential Default or Event of Default unless the principal amount
of the Notes so to be prepaid shall be allocated among the Notes of each Series
then outstanding in proportion, as nearly as practicable, to the respective
unpaid principal amounts thereof outstanding immediately prior to such
prepayment. Subject to compliance with the provisions of the preceding sentence,
after the Series A Notes have been paid in full, the Company may prepay Notes of
any one or more other Series pursuant to this Section 8.2(b) in such order as
the Company may determine. The Company will give each holder of Notes written
notice of each optional prepayment under this Section 8.2 not less than
thirty (30) days and not more than sixty (60) days prior to the date fixed for
such prepayment. Each such notice shall specify such date, the aggregate
principal amount of the Notes to be prepaid on such date, the principal amount
of each Note held by such holder to be prepaid (determined in accordance with
Section 8.3(c)), and the interest to be paid on the prepayment date with
respect to such principal amount being prepaid, and, in the case of a prepayment
of Series B Notes or Series C Notes, shall be accompanied by a certificate of a
Senior Financial Officer as to the estimated Make-Whole Amount for the Notes
being prepaid due in connection with such prepayment (calculated as if the date
of such notice were the date of the prepayment), setting forth the details of
such computation. Two (2) Business Days prior to any such prepayment of Series B
Notes or Series C Notes, the Company shall deliver to each holder of Series B
Notes or Series C Notes, as the case may be, a certificate of a Senior Financial
Officer specifying the calculation of such applicable Make-Whole Amount as of
the specified prepayment date of principal. Each determination by the Company
set forth in any such notice of the Make-Whole Amount applicable in respect of a
prepayment of Series B Notes or Series C Notes held by any such holder
shall be subject to verification by such holder.”
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| |
(ii)
Clause (c) of Section 8.2 of the Term Loan Agreement shall be amended by
changing the phrase "of either Series" occurring in the first line thereof to be and read "of any
Series".
|
| |
(iii)
Clause (d) of section 8.2 of the Term Loan Agreement shall be amended by
amending and restating the last sentence of such clause as follows:
|
17
| |
“At
any time during which no Series A Notes shall remain outstanding, all of the
Noteholder Share of Surplus Cash Flow shall be deposited into the Series B Trust
Account until the aggregate amount deposited in the Series B Trust Account
equals $30,000,000, after which time (including, without limitation, when no
Series B Notes remain outstanding) any Noteholder Share of Surplus Cash Flow
shall be retained by the Company. The amounts in the Series B Trust Account
shall be applied in accordance with the applicable provisions of the Collateral
Agency Agreement and the following Section 8.2(e).” |
(i)
Change in Control [Section 8.3]. Clause (a) of section 8.3 of the Term Loan Agreement
shall be amended and restated to read as follows:
| |
“The
Company shall mandatorily prepay the Notes of each Series in full (at par,
together with, (x) in the case of the prepayment of the Series B Notes or the
Series C Notes, the Make-Whole Amount determined for the prepayment date in
respect of the outstanding principal amount of the Series B Notes or Series C
Notes, as the case may be, or (y) in the case of the prepayment of the Series D
Notes, the Series D Breakage Amount determined for the prepayment date in
respect of the outstanding principal amount of the Series D Notes) in the event
that there shall occur (i) any Obligors’ Change in Control or Control Event
with respect to the Company or any of the other Obligors or (ii) any Parent
Change in Control with respect to the Parent. Any prepayment pursuant to this
Section 8.3 shall (A) be made in accordance with the terms of Section 8.2(b)
(and at the prepayment price provided for therein) and (B) notwithstanding any
provision hereof to the contrary, be made not later than the effectiveness of
the Obligors’ Change of Control or Parent Change of Control in respect of
which, or contemplated by the Control Event in respect of which, such prepayment
is required.” |
(j)
Maturity, Surrender, etc. [Section 8.4]. Section 8.4 of the Term Loan Agreement shall
be amended and restated as follows:
| |
“In
the case of each prepayment of Notes pursuant to this Section 8, the principal
amount of each Note to be prepaid shall mature and become due and payable on the
date fixed for such prepayment, together with interest on such principal amount
accrued to such date and, in the case of the Series B Notes or Series C Notes,
the applicable Make-Whole Amount, if any, or, in the case of the Series D Notes,
the applicable Series D Breakage Amount, if any. From and after such date,
unless the Company shall fail to pay such principal amount when so due and
payable, together with the interest and Make-Whole Amount or Series D Breakage
Amount, if any, as aforesaid, interest on such principal amount shall cease to
accrue. Any Note paid or prepaid in full shall be surrendered to the Company and
cancelled and shall not be reissued, and no Note shall be issued in lieu of any
prepaid principal amount of any Note.” |
18
(k)
Dividends and Related Distributions [Section 10.5]. Section 10.5 of the Term Loan
Agreement shall be amended and restated as follows:
| |
“The
Company shall not, and shall not permit any of its Subsidiaries to, make or pay,
or agree to become or remain liable to make or pay, any dividend or other
distribution of any nature (whether in cash, property, securities or otherwise)
on account of or in respect of its shares of capital stock, partnership
interests or limited liability company interests or on account of the purchase,
redemption, retirement or acquisition of its shares of capital stock,
partnership interests or limited liability company interests (or warrants,
options or rights therefor), except that, so long as no Potential Default or
Event of Default is in existence or would result therefrom, the Company may (a)
make distributions to the Parent out of the Company Share of Surplus Cash Flow
as and to the extent permitted by Section 9.1(m) or distributions as permitted
by line item (vii) of Section 9.1(m) and (b) pay the Management Fee to the
Parent as and to the extent permitted by Section 9.1(r) and subject to Section
9.1(m) and (c) (i) make distributions to the Parent from the proceeds of
the sale of the Series C Notes and the Series D Notes and (ii) make
payments to the Parent, from the proceeds of the sale of the Series C Notes
and the Series D Notes, in an amount equal to the amount of the tax
benefits conferred on the Company by the Parent through the expenditure of the
Parent’s net operating loss carryforwards under the Internal Revenue Code,
but the amount paid or distributed by the Company to the Parent under this
clause (c) shall not exceed the full amount of the proceeds of the
Series C Notes and the Series D Notes. The Company shall not and shall
not permit any of its Subsidiaries to enter into any contract or agreement which
restricts in any manner the payment by Company’s Subsidiaries of dividends
and distributions to the Company or any other Obligor.”
|
(l)
Minimum Debt Service Coverage Ratio; Maximum Leverage Ratio; Maximum Consolidated Total Indebtedness to Consolidated Total Capitalization [Sections 10.18, 10.19 and 10.20].
Sections 10.18, 10.19
and 10.20 of the Term Loan Agreement shall be amended and restated as follows:
"10.18
Minimum Debt Service Coverage Ratio.
| |
The
Obligors shall not permit the Debt Service Coverage Ratio to be less than the
ratio set forth below for the periods specified below, calculated as of the end
of each fiscal quarter after the Closing Date based upon the immediately
preceding four fiscal quarters (provided, however, for periods ending on or
before March 31, 2002, in lieu of using the preceding four fiscal quarters, the
above computation shall be determined by annualizing the Consolidated EBITDA for
the period from the Closing Date through the date of determination):
|
| Period |
Ratio |
| Closing Date through September 30, 2005 |
1.15 to 1.00 |
| October 1, 2005 through September 30, 2006 |
0.90 to 1.00 |
| October 1, 2006 through September 30, 2007 |
1.05 to 1.00 |
| October 1, 2007 and thereafter |
1.15 to 1.00 |
19
10.19
Maximum Leverage Ratio.
| |
The
Obligors shall not permit the ratio of Consolidated Total Indebtedness of the
Company and its Subsidiaries to Consolidated EBITDA to exceed the ratio set
forth below for the periods specified below, calculated as of the end of each
fiscal quarter during each such period based upon the immediately preceding four
fiscal quarters (provided, however, for periods ending on or before March 31,
2002, in lieu of using the preceding four fiscal quarters, the above computation
shall be determined by annualizing the Consolidated EBITDA for the period from
the Closing Date through the date of determination):
|
| Period |
Ratio |
| Closing Date through December 31, 2001 |
2.25 to 1.00 |
| January 1, 2002 through December 31, 2003 |
2.00 to 1.00 |
| January 1, 2004 through September 30, 2006 |
2.25 to 1.00 |
| October 1, 2006 through September 30, 2007 |
1.75 to 1.00 |
| October 1, 2007 and thereafter |
1.50 to 1.00 |
10.20
Maximum Consolidated Total Indebtedness to Consolidated Total
Capitalization.
| |
The
Obligors shall not permit the ratio of Consolidated Total Indebtedness to
Consolidated Total Capitalization of the Company and its Subsidiaries, as
determined at the end of each fiscal quarter, to exceed the ratio set forth
below:
|
| Testing Date |
Ratio |
December 31, 2001 through the fiscal quarter ending
September 30, 2002 |
.75 to 1.00 |
December 31, 2002 through the fiscal quarter ending
September 30, 2003 |
.60 to 1.00 |
December 31, 2003 through the fiscal quarter ending
September 30, 2005 |
.75 to 1.00 |
December 31, 2005 through the fiscal quarter ending
September
30, 2006 |
.65 to 1.00 |
December 31, 2006 through the fiscal quarter ending
September
30, 2007 |
.55 to 1.00 |
| December 31, 2007 and thereafter |
.40 to 1.00 |
(m)
Remedies on Default, etc.; Acceleration [Section 12.1].
Clause (c) of section 12.1 of
the Term Loan Agreement shall be amended by amending and restating the final paragraph of such clause as follows:
| |
“Upon
any Notes becoming due and payable under this Section 12.1, whether
automatically or by declaration, such Notes will forthwith mature and the entire
unpaid principal amount of such Notes, plus (x) all accrued and unpaid interest
thereon and (y) in the case of the Series B Notes and the Series C Notes, the
Make-Whole Amount or, in the case of the Series D Notes, the Series D Breakage
Amount, as the case may be, determined in respect of such principal amount (to
the full extent permitted by applicable law), shall all be immediately due and
payable, in each and every case without presentment, demand, protest or further
notice, all of such are hereby waived. The Company acknowledges, and the parties
hereto agree, that each holder of a Note has the right to maintain its
investment in the Notes free from repayment by the Company (except as herein
specifically provided for), and that the provision for payment of a Make-Whole
Amount or Series D Breakage Amount, as the case may be, by the Company in the
event that the Notes are prepaid or are accelerated as a result of an Event of
Default, is intended to provide compensation for the deprivation of such right
under such circumstances.”
|
20
(n)
Rescission [Section 12.3].
Section 12.3 of the Term Loan Agreement shall be amended
to insert the phrase "or Series D Breakage Amount" after the words "Make-Whole Amount" and before the phrase ",
if any," in each of the two places such words appear in such Section.
(o)
Transfer and Exchange of Notes [Section 13.2].
Section 13.2 of the Term Loan
Agreement shall be amended by amending and restating the second sentence of such section as follows: "Each such
new Note shall be payable to such Person as such holder may request and shall be substantially in the form of
Exhibit 1A, 1B, 1C or 1D, as appropriate."
(p)
Confidential Information [Section 20].
Section 20 of the Term Loan Agreement shall be
amended by adding the following at the end of the existing text of such section:
| |
“Notwithstanding
anything to the contrary set forth herein or in any other written or oral
understanding or agreement to which the parties hereto are parties or by which
they are bound, the parties acknowledge and agree that (i) any obligations of
confidentiality contained herein and therein do not apply and have not applied
from the commencement of discussions between the parties to the tax treatment
and tax structure of the Notes (and any related transactions or arrangements),
and (ii) each party and each of its employees, representatives, or other agents)
may disclose to any and all Persons, without limitation of any kind, the tax
treatment and tax structure of the Notes, and all materials of any kind
(including opinions or other tax analyses) that are provided to such party
relating to such tax treatment and tax structure, all within the meaning of
Treasury Regulations Section 1.6011-4.”
|
(q)
Sharing Provisions [Section 22.2].
The first sentence of Section 22.2 of the Term
Loan Agreement shall be amended by (i) inserting the phrase "or Series C Notes" after the phrase "Series B Notes"
where that phrase appears in subclause (2) of such sentence and (ii) inserting before the period at the end of
such sentence a new subclause (4) reading as follows:
| |
“or
(4) made in connection with the prepayment of a principal amount of Series D
Notes and consisting of the Series D Breakage Amount determined in respect of
such principal amount”. |
21
3. Representations and Warranties.
The Obligors, jointly and
severally, represent and warrant to the Purchasers as follows (it being
understood that such representations and warranties shall for all purposes of
the Term Loan Agreement be deemed made pursuant thereto and in connection with
the transactions contemplated thereby):
(a)
Representations and Warranties Under the Term Loan Agreement.
The representations and
warranties of the Company contained in the Term Loan Agreement are, after giving effect hereto, true and correct
on and as of the date hereof with the same force and effect as though made by the Company on such date, except to
the extent that any such representation or warranty expressly relates solely to a previous date (in which case
such representation and warranty shall be true and correct as of such previous date) or is the subject of
transactions permitted under the Term Loan Agreement. No Potential Default or Event of Default exists.
(b)
Power and Authority; Validity and Binding Effect; No Conflict.
The Company and each
other Obligor has full power to enter into, execute, deliver and carry out this Amendment and the Other Amendment
Documents (as defined in Section 5 hereof), and such actions have been duly authorized by all necessary
proceedings on its part. Each of this Amendment and the Other Amendment Documents (as hereinafter defined) has
been duly and validly executed and delivered by the Company and each other Obligor. This Amendment constitutes
and, upon execution and delivery thereof, each of the Other Amendment Documents will constitute, the legal, valid
and binding obligation of the Company and each other Obligor which is party thereto, enforceable against the
Company and each such other Obligor in accordance with its terms, except to the extent that enforceability
thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the
enforceability of creditors' rights generally or by general equitable principles limiting the availability of
specific performance or other equitable remedies. Neither the execution and delivery of this Amendment or the
Other Amendment Documents, nor the consummation of the transactions herein and therein contemplated will conflict
with, constitute a default under or result in any breach of (i) the terms and conditions of any organizational
documents of the Company or any other Obligor or (ii) any Law or any agreement or instrument or other obligation
to which the Company or any other Obligor is a party or by which it or any of the other Obligors is bound, or
result in (or require) the creation or enforcement of any Lien upon any property of the Company or any other
Obligor other than as set forth in the Security Documents as amended by the Security Document Amendment.
(c)
Consents and Approvals; No Event of Default.
No consent, approval, exemption, order
or authorization of any person or entity other than, as the case may be, the parties hereto or the parties to the
Other Amendment Documents is required by any Law or any agreement in connection with the execution, delivery and
carrying out of this Amendment and the Other Amendment Documents. No event has occurred and is continuing and no
condition exists or will exist after giving effect to this Amendment and the Other Amendment Documents which
constitutes an Event of Default.
22
(d)
Authorized Officer.
The individual executing this Amendment and the Other Amendment
Documents on behalf of the Company and each other Obligor, is authorized to execute and deliver such agreement,
as the case may be, on behalf of the Company and each other Obligor, and holds the office(s) with the Company and
each other Obligor, as the case may be, set forth below his signature to this Amendment or the Other Amendment
Documents.
(e)
Disclosure.
The Company, through Rothschild, Inc., its agent in connection with the
offer of the Series C Notes and the Series D Notes, has delivered to each Purchaser a copy of a Presentation to
Private Placement Lenders, dated December 2003 (the "Presentation" ), relating to the transactions contemplated
by this Amendment. Without limiting the Company's representation and warranty in Section 5.11 of the Term Loan
Agreement, the Term Loan Agreement as amended and supplemented by this Amendment, the Presentation, the
documents, certificates and other writings delivered to the Purchasers by or on behalf of the Obligors pursuant
to the Term Loan Agreement or in connection with the transactions contemplated by this Amendment, including,
without limitation, the financial statements and other materials delivered to the Purchasers pursuant to Section
7 of the Term Loan Agreement (all of the foregoing collectively, the "Materials"), taken as a whole, do not
contain any untrue statement of a material fact or omit to state any material fact necessary to make the
statements therein not misleading in light of the circumstances under which they were made. Except as disclosed
in the Materials furnished to the Purchasers on or prior to the date hereof, since the date of the Obligors' most
recent audited financial statements heretofore delivered to the Purchasers pursuant to Section 7 of the Term Loan
Agreement, there has been no change in the financial condition, operations, business, properties or prospects of
the Company or any Subsidiary except changes that individually or in the aggregate could not reasonably be
expected to constitute or give rise to a Material Adverse Change. There is no fact known to any Obligor that
could reasonably be expected to constitute or give rise to a Material Adverse Change that has not been set forth
in the Materials. Neither the Company nor any other Obligor makes any representation or warranty as to the
financial projections included in the Presentation, other than that the Company believes such financial
projections represent a reasonable range of possible results in light of the history of the business, present and
foreseeable conditions (including those identified in the Presentation), and the intentions of the Company's
management.
(f)
Private Offering of Series C and Series D Notes.
Neither any Obligor nor Rothschild,
Inc. (the only Person authorized or employed by the Company or the other Obligors in connection with the offer
and sale of the Series C Notes and the Series D Notes) has offered the Series C Notes or the Series D Notes or,
except for the original offer and sale of the Series A Notes and the Series B Notes pursuant to the Term Loan
Agreement, any similar securities, for sale to, or solicited any offer to buy any of the same from, or otherwise
approached or negotiated in respect thereof with, any Person other than the Purchasers, each of which has been
offered the Series C Notes and the Series D Notes and the guaranty thereof pursuant to the Guaranty Agreement at
a private sale for investment. Neither any Obligor nor anyone acting on behalf of an Obligor has taken, or will
take, any action that would subject the issuance or sale of the Notes or the Guaranty Agreement to the
registration requirements of Section 5 of the Securities Act.
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4. Conditions Precedent.
The
Company, the Guarantors and the Purchasers acknowledge that the amendments to
the Term Loan Agreement provided for in this Amendment shall not be effective
until such date (“Effective Date”) when each of the following
conditions precedent has been satisfied (as determined by the Required Combined
Holders in their sole discretion):
(a)
Execution, etc.
The Company, the Guarantors and the Required Combined Holders and the
Purchasers of the Series C Notes and the Series D Notes shall have executed this Amendment and each of the
Purchasers shall have received a counterpart original or a true and correct copy hereof. Each of the Other
Amendment Documents shall have duly authorized, executed and delivered by each party thereto other than the
Purchasers and shall be in full force and effect; and each Purchaser shall have received a counterpart original
or a true and correct copy of each such Other Amendment Document.
(b)
Amendment of Bank Credit Agreement.
The Company, the Guarantors and the banks party
to the Bank Credit Agreement and the other Bank Financing Documents shall have entered into amendments to the
Bank Credit Agreement and the other Bank Financing Documents providing for amendments to the terms thereof
consistent with the amendments to the Term Loan Agreement and the other Financing Documents provided for herein
(except to the extent that the amendments provided for herein relate to the issuance and purchases of the Series
C Notes and the Series D Notes) and in the Other Amendment Documents; such amendments shall be embodied in
instruments reasonably satisfactory in form and substance to the Purchasers and shall be in full force and
effect; and each Purchaser shall have received a true and correct copy of each such instrument;
(c)
Representations and Warranties.
Each of the representations and warranties set forth
in Section 3 hereof shall be true and correct on and as of the date hereof and on and as of the Effective Date;
and
(d)
Authorization by Obligors.
There shall be delivered to the Purchasers evidence of
appropriate action taken by the Company and the other Obligors relative to approval of this Amendment and the
Other Amendment Documents.
(e)
Series C Deferred Closing.
All conditions precedent provided in Section 4.3 of the
Term Loan Agreement (as amended hereby) shall have been satisfied or waived, except for the payment of the
purchase price for the Series C Notes and the delivery to the applicable Purchasers of the Series C Notes.
5. Consent of Purchasers.
Each
Purchaser, by its execution and delivery of this Amendment, consents to the
matters set forth below, to the extent such consent is required under the
Financing Documents:
(a)
Series C Notes and Series D Notes.
The authorization, issue and sale by the Company
of the Series C Notes and the Series D Notes pursuant to and as contemplated by the Term Loan Agreement
as amended hereby and the incurrence by the Company of the Indebtedness evidenced by such Notes;
24
(b)
Security Document Amendment.
The execution and delivery by the Collateral Agent, the
respective other parties to the Security Documents and the Parent of the Security Document Amendment and
the amendments to the Subject Security Documents (as defined therein) provided for therein;
(c)
Mortgage Amendments.
The execution and delivery by the Collateral Agent and the other
parties to the Mortgages (Noteholders) of the Mortgage Amendments and the amendments to the Mortgages
(Noteholders) provided for therein;
(d)
Intercreditor Agreement Amendment.
The execution and delivery by the parties to the
Intercreditor Agreement of the Intercreditor Agreement Amendment and the amendments to the Intercreditor
Agreement provided for therein; and
(e)
LLC Agreement Amendment.
The amendment of the Amended and Restated Limited Liability
Company Agreement of ▇▇▇▇▇▇▇▇▇▇▇▇ Mining LLC pursuant to an instrument in substantially the form of
Exhibit 4 annexed hereto (such amendment, together with the Security Document Amendment, the Mortgage
Amendments and the Intercreditor Agreement Amendment, the "Other Amendment Documents").
Each Purchaser acknowledges
and agrees that the Collateral Agent, in entering into the Other Amendment
Documents to which it is intended to be a party, shall be entitled to rely upon
the consent of such Purchaser pursuant to this Section 5.
6. Issue and Purchase of Series C and Series D Notes.
The
Company shall issue and sell to each Purchaser scheduled to purchase Series C
Notes and Series D Notes as indicated on Schedule A to the Term Loan Agreement
as amended hereby (each such Purchaser, a “Deferred Series
Purchaser”), and, subject to the applicable terms and conditions set
forth in the Term Loan Agreement as amended by this Amendment, such Deferred
Series Purchaser shall purchase from the Company, (a) at the Series C Deferred
Closing, Series C Notes in the principal amount specified opposite such Deferred
Series Purchaser’s name on Schedule A to the Term Loan Agreement as
amended by this Amendment and (b) at the Series D Deferred Closing, Series D
Notes in the principal amount specified opposite such Deferred Series
Purchaser’s name on such Schedule A. The obligations of the Deferred
Series Purchasers are several and not joint and this Amendment, and the Term
Loan Agreement as amended hereby, to the extent relating to the purchase and
sale of the Series C Notes and/ or the Series D Notes, shall for all purposes be
construed as and be deemed to constitute separate agreements between the
Company, on the one hand, and the each Deferred Series Purchaser, on the other,
with the Deferred Series Purchasers acting severally and not jointly with the
same effect as though a separate agreement to the effect provided herein with
respect to the purchase and sale of the of the Series C Notes and the Series D
Notes were hereby entered into by the Company and each Deferred Series
Purchaser.
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7. Incorporation into Term Loan Agreement.
This
Amendment is intended as and constitutes an agreement supplemental to the Term
Loan Agreement and shall be construed together with and as a part of the Term
Loan Agreement. As used in the Financing Documents (i) the term
“Agreement” shall mean the Term Loan Agreement as modified hereby,
(ii) the term “Notes” shall mean the Notes including the Series C
Notes and, when issued, the Series D Notes, (iii) the term “Security
Documents” shall mean each of the Security Documents as amended hereby or
by any of the Other Amendment Documents, (iv) term “Purchasers” means
the Purchasers including the Purchasers of the Series C Notes and the Purchasers
of the Series D Notes, when issued, and (v) the terms “Debt” and
“Obligations” shall mean Debt and Obligations including those under
the Series C Notes and the Series D Notes. All representations, warranties,
Events of Default and covenants set forth herein shall be a part of the Term
Loan Agreement as if originally contained therein.
8. Reimbursement of Expenses.
Without
limiting Section 15.1 of the Term Loan Agreement, the Company unconditionally
agrees to pay and reimburse each of the Purchasers and save each of the
Purchasers harmless against liability for the payment of all out-of-pocket
costs, expenses and disbursements, including without limitation, reasonable fees
and expenses of counsel, incurred by any of the Purchasers in connection with
the development, preparation, execution, administration, interpretation or
performance of this Amendment and the Other Amendment Documents and all other
documents or instruments to be delivered or recorded in connection herewith.
9. Severability.
Any
provision of this Amendment that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall (to the full extent permitted by law) not invalidate or
render unenforceable such provision in any other jurisdiction.
10. Entire Agreement.
This
Amendment sets forth the entire agreement and understanding of the parties with
respect to the amendment to the Term Loan Agreement and the schedules and
exhibits contemplated hereby and supersedes all prior understandings and
agreements, whether written or oral, between the parties hereto relating to such
amendments. No representation, promise, inducement or statement of intention has
been made by any party which is not embodied in this Amendment, and no party
shall be bound by or liable for any alleged representation, promise, inducement
or statement of intention not set forth herein.
11. Force and Effect.
The
Company reconfirms, restates, and ratifies the Term Loan Agreement, and all
other documents executed in connection therewith except to the extent any such
documents are expressly modified by this Amendment and the Company confirms
that, as so modified, all such documents remain in full force and effect.
26
12. Governing Law.
This
Amendment shall be construed and enforced in accordance with, and the rights of
the parties shall be governed by, the law of the State of New York applicable to
contracts made and to be performed in said state.
13. Counterparts.
This
Amendment may be signed in any number of counterparts each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.
[SIGNATURE PAGES TO FOLLOW]
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[SIGNATURE PAGE 1 OF 5 TO THIRD AMENDMENT
TO TERM LOAN AGREEMENT]
IN
WITNESS WHEREOF, the parties hereto, by their officers thereunto duly
authorized, have executed this Third Amendment to Term Loan Agreement as of the
day and year first above written with the intention that it constitute a sealed
instrument.
| |
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇ |
| |
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇ |
| |
Title: Vice President and Treasurer |
| |
WESTERN ENERGY COMPANY,
an Obligor and Guarantor |
| |
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇ |
| |
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇ |
| |
Title: Vice President and Treasurer |
| |
NORTHWESTERN RESOURCES CO.,
an Obligor and Guarantor |
| |
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇ |
| |
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇ |
| |
Title: Vice President and Treasurer |
28
[SIGNATURE PAGE 2 OF 5 TO THIRD AMENDMENT
TO TERM LOAN AGREEMENT]
| |
DAKOTA ▇▇▇▇▇▇▇▇▇▇▇▇ CORPORATION,
an Obligor and Guarantor |
| |
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇ |
| |
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇ |
| |
Title: Vice President and Treasurer |
| |
▇▇▇▇▇▇▇▇▇▇▇▇ SAVAGE CORP. (f/k/a
WCCO-KRC ACQUISITION
CORP.), an Obligor and Guarantor |
| |
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇ |
| |
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇ |
| |
Title: Vice President and Treasurer |
29
[SIGNATURE PAGE 3 OF 5 TO THIRD AMENDMENT
TO TERM LOAN AGREEMENT]
| |
TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA |
| |
By: /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ |
| |
Name: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ |
| |
Title: Director - Private Placements |
| |
PACIFIC LIFE INSURANCE COMPANY
(Nominee: Mac & Co.) |
| |
By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ |
| |
Name: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ |
| |
Title: Assistant Vice President |
| |
By: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ |
| |
Name: ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ |
| |
Title: Assistant Secretary |
30
[SIGNATURE PAGE 4 OF 5 TO THIRD AMENDMENT
TO TERM LOAN AGREEMENT]
| |
AMERICAN GENERAL INTERNATIONAL INVESTMENTS, INC. |
| |
By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇ |
| |
Name: ▇▇▇▇▇▇ ▇▇▇▇▇▇ |
| |
Title: Investment Officer |
| |
SUNAMERICA LIFE INSURANCE COMPANY
AIG ANNUITY INSURANCE COMPANY (Formerly American General Annuity Insurance Company) |
| |
By: AIG Global Investment Corp.,
Investment Advisor |
| |
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇ |
| |
Name: ▇▇▇▇ ▇. ▇▇▇▇▇▇▇ |
| |
Title: Managing Director |
| |
THE TRAVELERS INSURANCE COMPANY |
| |
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇ |
| |
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇ |
| |
Title: Investment Officer |
| |
CITICORP INSURANCE AND INVESTMENT TRUST |
| |
By: Travelers Asset Management International Company LLC |
| |
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇ |
| |
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇ |
| |
Title: Investment Officer |
31
[SIGNATURE PAGE 5 OF 5 TO THIRD AMENDMENT
TO TERM LOAN AGREEMENT]
| |
NATIONWIDE INDEMNITY COMPANY
NATIONWIDE MUTUAL FIRE INSURANCE COMPANY
NATIONWIDE MUTUAL INSURANCE COMPANY
NATIONWIDE LIFE INSURANCE COMPANY |
| |
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇ |
| |
Name: ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇ |
| |
Title: Associate Vice President |
| |
METROPOLITAN LIFE INSURANCE COMPANY |
| |
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇ |
| |
Name: ▇▇▇▇ ▇. ▇▇▇▇ |
| |
Title: Director |
32