CREDIT AGREEMENT
Dated as of November 17, 2000
among
NIKE, INC.,
as the Borrower,
BANK OF AMERICA, N.A.,
as Administrative Agent,
CITICORP USA, INC.,
as Syndication Agent,
BANK ONE, NA and HSBC BANK USA,
as Co-Documentation Agents,
and
THE BANKS PARTY HERETO
________________ _________________ ________________
Co-Lead Arrangers and Co-Book Managers:
BANC OF AMERICA SECURITIES LLC
and
XXXXXXX XXXXX XXXXXX INC.
Senior Managing Agent:
THE BANK OF TOKYO-MITSUBISHI, LTD.
Managing Agents:
FLEET NATIONAL BANK
and
COMMERZBANK AG, NEW YORK AND GRAND CAYMAN BRANCHES
TABLE OF CONTENTS
Page
ARTICLE I
DEFINITIONS AND OTHER INTERPRETIVE PROVISIONS
1.1. Defined Terms 1
1.2. Other Interpretive Provisions 17
1.3. References to Agreements and Laws 18
ARTICLE II
THE FACILITIES
2.1. The Facilities 18
2.2. Ratable Advances 19
2.3. Competitive Bid Advances 21
2.4. Fees 25
2.5. General Facility Terms 27
2.6. Extension of FacilityA Termination Date 30
2.7. Extension of FacilityB Termination Date 32
2.8. FacilityB Term Loans 33
ARTICLE III
TAXES, CHANGE IN CIRCUMSTANCES
3.1. Taxes 34
3.2. Yield Protection 35
3.3. Availability of Rate Options 36
3.4. Funding Indemnification 36
3.5. Regulation D Compensation 36
3.6. Bank Statements; Survival of Indemnity 36
3.7. Removal of Banks 37
ARTICLE IV
CONDITIONS PRECEDENT
4.1. Closing 37
4.2. Each Advance 38
ARTICLE V
REPRESENTATIONS AND WARRANTIES
5.1. Corporate Existence 39
5.2. Authorization and Validity 39
5.3. No Conflict; Government Consent 39
5.4. Financial Statements 39
5.5. Material Adverse Change 39
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TABLE OF CONTENTS
(continued)
Page
5.6. Taxes 39
5.7. Litigation and Contingent Obligations 40
5.8. Subsidiaries 40
5.9. ERISA 40
5.10. Accuracy of Information 40
5.11. Regulation U 40
5.12. Material Agreements 40
5.13. Compliance With Laws 41
5.14. Ownership of Properties 41
5.15. Post-Retirement Benefits 41
5.16. Environmental and Safety and Health Matters 41
ARTICLE VI
COVENANTS
6.1. Financial Reporting 41
6.2. Use of Proceeds 42
6.3. Notice of Default 42
6.4. Preservation of Existence; Conduct of Business 43
6.5. Taxes 43
6.6. Insurance 43
6.7. Compliance with Laws 43
6.8. Maintenance of Properties; Trademarks and Franchises 43
6.9. Inspection 43
6.10. Dividends 44
6.11. Merger 44
6.12. Sale of Assets 44
6.13. Sale and Leaseback 44
6.14. Acquisitions 44
6.15. Liens 44
6.16. Affiliates 45
6.17. Leverage Ratio 45
6.18. Notice of Rating Change 45
ARTICLE VII
DEFAULTS
Defaults 46
ARTICLE VIII
ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES
8.1. Acceleration 48
8.2. Amendments and Waivers 48
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TABLE OF CONTENTS
(continued)
Page
8.3. Preservation of Rights 49
ARTICLE IX
NOTICES
9.1. Giving Notice 50
9.2. Change of Address 50
ARTICLE X
GENERAL PROVISIONS
10.1. Survival of Representations 50
10.2. Governmental Regulation 50
10.3. Taxes 50
10.4. Headings 50
10.5. Entire Agreement 50
10.6. Several Obligations 51
10.7. Expenses; Indemnification 51
10.8. Numbers of Documents 51
10.9. Accounting 51
10.10. Severability of Provisions 52
10.11. Nonliability of Banks 52
10.12. Confidentiality 52
10.13. CHOICE OF LAW 53
10.14. CONSENT TO JURISDICTION 53
10.15. WAIVER OF JURY TRIAL 53
10.16. OREGON LEGAL NOTICE 53
10.17. Counterparts 53
ARTICLE XI
THE ADMINISTRATIVE AGENT
11.1. Appointment and Authorization; "Administrative Agent" 54
11.2. Delegation of Duties 54
11.3. Liability of Administrative Agent 54
11.4. Reliance by Administrative Agent 54
11.5. Notice of Default 55
11.6. Credit Decision 55
11.7. Indemnification of Administrative Agent 56
11.8. Administrative Agent in Individual Capacity 56
11.9. Successor Administrative Agent 57
11.10. Foreign Banks 57
11.11. Other Agents; Co-Lead Arrangers 58
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TABLE OF CONTENTS
(continued)
Page
ARTICLE XII
SETOFF; RATABLE PAYMENTS
12.1. Setoff 58
12.2. Ratable Payments 58
ARTICLE XIII
BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS
13.1. Successors and Assigns 59
13.2. Participations 59
13.3. Assignments 60
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EXHIBITS
________
EXHIBIT A-1 Ratable Facility A Note
EXHIBIT A-2 Ratable Facility B Note
EXHIBIT B-1 Competitive Facility A Bid Note
EXHIBIT B-2 Competitive Facility B Bid Note
EXHIBIT C Competitive Bid Quote Request
EXHIBIT D Invitation for Competitive Bid Quotes
EXHIBIT E Competitive Bid Quotes
EXHIBIT F Borrower Counsel Opinion
EXHIBIT G Ratable Borrowing Notice
EXHIBIT H Notice of Conversion/Continuation
EXHIBIT I Compliance Certificate
EXHIBIT J Assignment Agreement
EXHIBIT K Facility B Term Loan Borrowing Notice
SCHEDULES
_________
Schedule 1 Subsidiaries
Schedule 2 Liens
Schedule 3 Commitments and Pro Rata Shares
Schedule 4 Eurodollar and Domestic Lending Offices
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CREDIT AGREEMENT
This Credit Agreement, dated as of November 17, 2000, is among NIKE, Inc.,
the Banks and Bank of America, N.A., as Administrative Agent, Citicorp USA,
Inc., as Syndication Agent, and Bank One, NA and HSBC Bank USA, as Co-
Documentation Agents. The parties hereto agree as follows:
ARTICLE I
DEFINITIONS AND OTHER INTERPRETIVE PROVISIONS
_____________________________________________
1.1 Defined Terms. As used in this Agreement, the following terms
shall have the meanings set forth below:
"Absolute Facility A Rate" means, with respect to an Absolute Facility
A Rate Loan made by a given Facility A Bank for the relevant Absolute Rate
Interest Period, the rate of interest per annum (rounded to the nearest 1/1000
of 1%) offered by such Facility A Bank and accepted by the Borrower.
"Absolute Facility A Rate Loan" means a Facility A Loan which bears
interest at the Absolute Facility A Rate.
"Absolute Facility B Rate" means, with respect to an Absolute Facility
B Rate Loan made by a given Facility B Bank for the relevant Absolute Rate
Interest Period, the rate of interest per annum (rounded to the nearest 1/1000
of 1%) offered by such Facility B Bank and accepted by the Borrower.
"Absolute Facility B Rate Loan" means a Loan which bears interest at
the Absolute Facility B Rate.
"Absolute Rate" means (a) with respect to Absolute Facility A Rate
Loans, the Absolute Facility A Rate, and (b) with respect to Absolute Facility
B Rate Loans, the Absolute Facility B Rate.
"Absolute Rate Advance" means (a) a borrowing hereunder consisting of
the aggregate amount of the several Absolute Facility A Rate Loans made by
some or all of the Facility A Banks to the Borrower at the same time and for
the same Interest Period, or (b) a borrowing hereunder consisting of the
aggregate amount of the several Absolute Facility B Rate Loans made by some or
all of the Facility B Banks to the Borrower at the same time and for the same
Interest Period.
"Absolute Rate Auction" means a solicitation of Competitive Bid Quotes
setting forth Absolute Rates pursuant to Section 2.3.
"Absolute Rate Interest Period" means, with respect to an Absolute
Rate Advance, a period of not less than 7 and not more than 183 days
commencing on a Business Day selected by the Borrower pursuant to this
Agreement. If such Absolute Rate Interest Period would end on a day which is
not a Business Day, such Absolute Rate Interest Period shall end on the next
succeeding Business Day.
"Absolute Rate Loan" means an Absolute Facility A Rate Loan or an
Absolute Facility B Rate Loan.
"Acquisition" means any material transaction, or any series of related
transactions, consummated after the date of this Agreement, by which the
Borrower or any of the Subsidiaries (i) acquires any going business or all or
substantially all of the assets of any firm, corporation or division thereof,
whether through purchase of assets, merger or otherwise, or (ii) directly or
indirectly acquires (in one transaction or as the most recent transaction in a
series of transactions) at least a majority (in number of votes) of the
securities of a corporation which have ordinary voting power for the election
of directors (other than securities having such power only by reason of the
happening of a contingency).
"Administrative Agent" means Bank of America, N.A. in its capacity as
administrative agent for the Banks pursuant to Article XI, and not in its
individual capacity as a Bank, and any successor Administrative Agent
appointed pursuant to Article XI.
"Administrative Agent-Related Persons" means Bank of America and any
successor agent arising under Section 11.9, together with their respective
Affiliates (including, in the case of Bank of America, Banc of America
Securities LLC), and the officers, directors, employees, agents and attorneys-
in-fact of such Persons and Affiliates.
"Administrative Agent's Office" means the Administrative Agent's
address and, as appropriate, account as set forth on Schedule 4, or such other
address or account as the Administrative Agent may from time to time notify to
the Borrower and the Banks.
"Advance" means a Facility A Advance or a Facility B Advance.
"Affiliate" means, as to any Person, any other Person which, directly
or indirectly, is in control of, is controlled by, or is under common control
with, such Person. A Person shall be deemed to control another Person if the
controlling Person possesses, directly or indirectly, the power to direct or
cause the direction of the management and policies of the other Person,
whether through the ownership of voting securities, membership interests, by
contract, or otherwise.
"Agreement" means this Credit Agreement.
"Agreement Accounting Principles" means generally accepted principles
of accounting as in effect from time to time, applied in a manner consistent
with that used in preparing the financial statements referred to in Section
5.4.
"Alternate Base Rate" means, on any date and with respect to all
Floating Rate Advances, a fluctuating rate of interest per annum equal to the
higher of (i) the Federal Funds Rate most recently determined by the
Administrative Agent plus 1/2% per annum, and (ii) the Base Rate. Changes in
the rate of interest on that portion of any Advance maintained as a Floating
Rate Advance will take effect simultaneously with each change in the Alternate
Base Rate. The Administrative Agent will give notice promptly to the Borrower
and the Applicable Banks of changes in the Alternate Base Rate in respect of
any outstanding Floating Rate Loans.
2
"Applicable Banks" means (a) with respect to any Facility A Commitments
and Facility A Advances, the Facility A Banks, and (b) with respect to any
Facility B Commitments and Facility B Advances, the Facility B Banks.
"Applicable Facility Fee Rate" means, on any date and with respect to
each Commitment whether used or unused, the applicable fee (in basis points)
set forth below based on the type of Commitment and the Applicable Rating Level
on such date (provided, however, that on the Effective Date the Applicable
Rating Level shall be deemed to be Level III):
Applicable Rating Level Applicable Facility Fee Rate (in basis points)
_______________________ ______________________________________________
Facility A Commitments Facility B Commitments
______________________ _______________________
Level I 5.5 4.0
Level II 7.0 5.0
Level III 8.0 6.0
Level IV 10.0 6.0
Level V 12.5 6.0
Level VI 15.0 6.0
"Applicable Margin" means, on any date and with respect to each
Eurodollar Ratable Loan, the applicable margin set forth below based on the
Applicable Rating Level on such date (provided, however, that on the Effective
Date the Applicable Rating Level shall be deemed to be Level III):
Applicable Rating Level Applicable Margin (in basis points)
_______________________ ___________________________________
Facility A Loans Facility B Loans
________________ _________________
Level I 14.5 16.0
Level II 15.5 17.5
Level III 22.0 24.0
3
Applicable Rating Level Applicable Margin (in basis points)
_______________________ ___________________________________
Facility A Loans Facility B Loans
________________ _________________
Xxxxx XX 00.0 00.0
Xxxxx X 00.0 24.0
Level VI 47.5 24.0
"Applicable Rating Level" shall mean and be determined by the ratings
issued from time to time by S&P and Xxxxx'x (or S&P or Xxxxx'x, if ratings
shall be available from only one of such Rating Agencies) in respect of the
Borrower's long-term, senior unsecured, non-credit-enhanced debt in accordance
with the following (provided, however, that on the Effective Date the
Applicable Rating Level shall be deemed to be Level III):
Rating Level S&P Xxxxx'x
____________ ___ _______
Level I More favorable than A+ More favorable than A1
Level II A+ A1
Level III X X0
Xxxxx XX X- X0
Xxxxx V BBB+ Baa1
Level VI Less than BBB+ or not rated Less than Baa1 or not rated
For purposes of the foregoing, (a) if ratings are available from both
S&P and Xxxxx'x, and the ratings available from such Rating Agencies do not
correspond to the same rating level on the chart above, then (1) if such rating
levels differ by only one level on the chart above, then the Applicable Rating
Level shall correspond to the higher of the two ratings, and (2) if such rating
levels differ by more than one level on the chart above, then the Applicable
Rating Level shall correspond to that rating which is one rating higher than
the lower of the two ratings; (b) if determinative ratings shall change (other
than as a result of a change in the rating system used by any applicable Rating
Agency) such that a change in the Applicable Rating Level would result, such
change shall effect a change in the Applicable Rating Level as of the day on
which the Administrative Agent receives notice of such change (such day, a
"Change Day"), and any change in the Applicable Margin shall take effect
commencing on such Change Day and ending on the date immediately preceding the
next Change Day; (c) if the rating system of any of the Rating Agencies shall
change prior to the date all Obligations hereunder have been paid and the
Commitments cancelled, the Borrower and the Majority Banks shall negotiate in
4
good faith to amend the references to specific ratings in this definition to
reflect such changed rating system, and pending such amendment, if no
Applicable Rating Level is otherwise determinable based upon the foregoing, the
most recent Applicable Rating Level in effect shall apply; (d) if the Borrower
shall fail to give notice to the Administrative Agent of any change in rating
by any Rating Agency in respect of the Borrower's long-term, senior unsecured
debt on the date required by Section 6.18, the Applicable Rating Level shall be
deemed to be Level VI for the period from the date such notice was required to
be delivered to the date such notice is received by the Administrative Agent;
and (e) upon the occurrence of and during the existence of a Default, the
Applicable Rating Level shall be deemed to be Level VI.
"Applicable Termination Date" means (a) with respect to Facility A
Loans and Facility A Advances, the Facility A Termination Date, and (b) with
respect to Facility B Loans and Facility B Advances, the Facility B Termination
Date, or if the Facility B Term Loans are made, the Facility B Term Loan
Maturity Date.
"Attorney Costs" has the meaning set forth in Section 10.7.
"Bank of America" means Bank of America, N.A., and its successors.
"Banks" means the financial institutions listed on the signature pages
of this Agreement and their respective successors and assigns.
"Base Rate" means for any day a fluctuating rate per annum equal to the
higher of (a) the Federal Funds Rate plus 1/2 of 1%, and (b) the rate of
interest in effect for such day as publicly announced from time to time by Bank
of America as its "prime rate." Such rate is a rate set by Bank of America
based upon various factors including Bank of America's costs and desired
return, general economic conditions and other factors, and is used as a
reference point for pricing some loans, which may be priced at, above, or below
such announced rate. Any change in such rate announced by Bank of America
shall take effect at the opening of business on the day specified in the public
announcement of such change.
"Borrower" means NIKE, Inc., an Oregon corporation.
"Borrowing Date" means a date on which an Advance is made hereunder.
"Business Day" means (i) with respect to any borrowing, payment or rate
selection of Eurodollar Ratable Advances or Eurodollar Bid Rate Advances, a day
other than Saturday or Sunday on which banks are open for business in San
Francisco and New York City and on which dealings in United States dollars are
carried on in the London interbank market, and (ii) for all other purposes, a
day other than Saturday or Sunday on which banks are open for business in San
Francisco and New York City.
"Capitalized Lease" of a Person means any lease of property by such
Person as lessee which would be capitalized on a balance sheet of such Person
prepared in accordance with Agreement Accounting Principles.
5
"Capitalized Lease Obligations" of a Person means the amount of
obligations of such Person under Capitalized Leases which would be shown as a
liability on a balance sheet of such Person prepared in accordance with
Agreement Accounting Principles.
"Co-Arrangers" means Banc of America Securities LLC and Xxxxxxx Xxxxx
Barney Inc., each in its capacity as a co-lead arranger and a co-book manager.
"Code" means the Internal Revenue Code of 1986.
"Co-Documentation Agents" means Bank One, NA and HSBC Bank USA, each in
its capacity as a co-documentation agent and not in its individual capacity as
a Bank.
"Commitment" means, (a) as to each Facility A Bank, its Facility A
Commitment, and (b) as to each Facility B Bank, its Facility B Commitment.
"Competitive Bid Advance" means (a) with respect to any Facility A
Bank, a Competitive Facility A Bid Advance, and (b) with respect to any
Facility B Bank, a Competitive Facility B Bid Advance.
"Competitive Bid Borrowing Notice" is defined in Section 2.3.6.
"Competitive Bid Loan" means a Competitive Facility A Bid Loan or a
Competitive Facility B Bid Loan.
"Competitive Bid Margin" means the margin above or below the applicable
Eurodollar Base Rate offered for a Eurodollar Bid Rate Loan, expressed as a
percentage (rounded to the nearest 1/1000 of 1%) to be added or subtracted from
such Eurodollar Base Rate.
"Competitive Bid Quote" means a Competitive Bid Quote substantially in
the form of Exhibit E hereto completed and delivered by a Bank to the
Administrative Agent in accordance with Section 2.3.4.
"Competitive Bid Quote Request" means a Competitive Bid Quote Request
substantially in the form of Exhibit C hereto completed and delivered by the
Borrower to the Administrative Agent in accordance with Section 2.3.2.
"Competitive Facility A Bid Advance" means a borrowing hereunder prior
to the Facility A Termination Date consisting of the aggregate amount of the
several Competitive Facility A Bid Loans made by some or all of the Facility A
Banks to the Borrower at the same time and for the same Interest Period.
"Competitive Facility A Bid Loan" means a Eurodollar Facility A Bid
Rate Loan or an Absolute Facility A Rate Loan, or both, as the case may be.
"Competitive Facility A Bid Note" means a promissory note in
substantially the form of Exhibit B-1 hereto, with appropriate insertions, duly
executed and delivered to the Administrative Agent by the Borrower for the
account of a Facility A Bank and payable to the order of such Facility A Bank,
including any amendment, modification, renewal or replacement of such
promissory note.
6
"Competitive Facility B Bid Advance" means a borrowing hereunder prior
to the Facility B Termination Date consisting of the aggregate amount of the
several Competitive Facility B Bid Loans made by some or all of the Facility B
Banks to the Borrower at the same time and for the same Interest Period.
"Competitive Facility B Bid Loan" means a Eurodollar Facility B Bid
Rate Loan or an Absolute Facility B Rate Loan, or both, as the case may be.
"Competitive Facility B Bid Note" means a promissory note in
substantially the form of Exhibit B-2 hereto, with appropriate insertions, duly
executed and delivered to the Administrative Agent by the Borrower for the
account of a Facility B Bank and payable to the order of such Facility B Bank,
including any amendment, modification, renewal or replacement of such
promissory note.
"Controlled Group" means all members of a controlled group of
corporations and all trades or businesses (whether or not incorporated) under
common control which, together with the Borrower or any Subsidiary, are treated
as a single employer under Section 414(b) or 414(c) of the Code.
"Conversion/Continuation Date" means any date on which, under Section
2.2.4, the Borrower (a) converts an Advance bearing interest based on a Rate
Option to an Advance bearing interest based on another Rate Option, or (b)
continues an Advance bearing interest based on the same Rate Option, but with a
new Interest Period.
"Default" means an event described in Article VII.
"Dollars" and "$" mean lawful money of the United States of America.
"Effective Date" means the date on which all conditions set forth in
Section 4.1 are satisfied or waived by the Administrative Agent and the Banks
(or, in the case of Section 4.1(k), waived by the Person entitled to receive
the applicable payment), provided such date shall not be later than November
17, 2000.
"Eligible Assignee" means (a) a commercial bank organized under the
laws of the United States, or any state thereof, and having a combined capital
and surplus of at least $100,000,000; (b) a commercial bank organized under the
laws of any other country which is a member of the Organization for Economic
Cooperation and Development or a political subdivision of any such country, and
having a combined capital and surplus of at least $100,000,000, provided that
such bank is acting through a branch or agency located in the United States;
and (c) a Person that is primarily engaged in the business of commercial
banking and that is (i) a Subsidiary of a Bank, (ii) a Subsidiary of a Person
of which a Bank is a Subsidiary, or (iii) a Person of which a Bank is a
Subsidiary.
7
"Environmental Laws" means the Resource Conservation and Recovery Act
of 1987, the Comprehensive Environmental Response, Compensation and Liability
Act, any so-called "Superfund" or "Superlien" law, the Toxic Substances Control
Act, and any other federal, state or local statute, law, ordinance, code, rule,
regulation, order or decree regulating, relating to, or imposing liability or
standards of conduct concerning, any hazardous materials or other hazardous or
toxic substance, as now or at any time hereafter in effect.
"ERISA" means the Employee Retirement Income Security Act of 1974 and
any regulations issued pursuant thereto.
"Eurodollar Auction" means a solicitation of Competitive Bid Quotes
setting forth Eurodollar Bid Rates pursuant to Section 2.3.
"Eurodollar Base Rate" means for any Interest Period with respect to
any Eurodollar Ratable Advance or a Eurodollar Bid Rate Advance:
(a) the rate per annum equal to the rate determined by the
Administrative Agent to be the offered rate that appears on the page of
the Telerate screen (or any successor thereto) that displays an average
British Bankers Association Interest Settlement Rate for deposits in
Dollars (for delivery on the first day of such Interest Period) with a
term equivalent to such Interest Period, determined as of approximately
11:00 a.m. (London time) two Business Days prior to the first day of
such Interest Period, or
(b) if the rate referenced in the preceding subsection (a) does
not appear on such page or service or such page or service shall cease
to be available, the rate per annum equal to the rate determined by the
Administrative Agent to be the offered rate on such other page or other
service that displays an average British Bankers Association Interest
Settlement Rate for deposits in Dollars (for delivery on the first day
of such Interest Period) with a term equivalent to such Interest
Period, determined as of approximately 11:00 a.m. (London time) two
Business Days prior to the first day of such Interest Period, or
(c) if the rates referenced in the preceding subsections (a) and
(b) are not available, the rate per annum determined by the
Administrative Agent as the rate of interest (rounded upward to the
next 1/100th of 1%) at which deposits in Dollars for delivery on the
first day of such Interest Period in same day funds in the approximate
amount of the Eurodollar Ratable Advance or Eurodollar Bid Rate Advance
being made (or that would be made by Bank of America if such Advance
were a Eurodollar Ratable Advance), continued or converted by Bank of
America and with a term equivalent to such Interest Period would be
offered by Bank of America's London Branch to major banks in the
offshore Dollar market at their request at approximately 11:00 a.m.
(London time) two Business Days prior to the first day of such Interest
Period.
8
"Eurodollar Bid Rate" means, (a) with respect to Eurodollar Facility A
Bid Rate Loans, the Eurodollar Facility A Bid Rate, and (b) with respect to
Eurodollar Facility B Bid Rate Loans, the Eurodollar Facility B Bid Rate.
"Eurodollar Bid Rate Advance" means a Eurodollar Facility A Bid Rate
Advance or a Eurodollar Facility B Bid Rate Advance.
"Eurodollar Facility A Bid Rate" means, with respect to a Eurodollar
Facility A Bid Rate Loan made by a given Facility A Bank for the relevant
Eurodollar Interest Period, the sum of (i) the Eurodollar Base Rate and (ii)
the Competitive Bid Margin offered by such Facility A Bank and accepted by the
Borrower.
"Eurodollar Facility A Bid Rate Advance" means a Competitive Facility A
Bid Advance which bears interest at a Eurodollar Facility A Bid Rate.
"Eurodollar Facility A Bid Rate Loan" means a Facility A Loan which
bears interest at the Eurodollar Facility A Bid Rate.
"Eurodollar Facility A Ratable Advance" means a Facility A Advance
which bears interest at a Eurodollar Rate requested by the Borrower pursuant to
Section 2.2.
"Eurodollar Facility A Ratable Loan" means a Facility A Loan which
bears interest at a Eurodollar Rate requested by the Borrower pursuant to
Section 2.2.
"Eurodollar Facility B Bid Rate" means, with respect to a Eurodollar
Facility B Bid Rate Loan made by a given Facility B Bank for the relevant
Eurodollar Interest Period, the sum of (i) the Eurodollar Base Rate and (ii)
the Competitive Bid Margin offered by such Facility B Bank and accepted by the
Borrower.
"Eurodollar Facility B Bid Rate Advance" means a Competitive Facility B
Bid Advance which bears interest at a Eurodollar Facility B Bid Rate.
"Eurodollar Facility B Bid Rate Loan" means a Facility B Loan which
bears interest at the Eurodollar Facility B Bid Rate.
"Eurodollar Facility B Ratable Advance" means a Facility B Advance
which bears interest at a Eurodollar Rate requested by the Borrower pursuant to
Section 2.2.
"Eurodollar Facility B Ratable Loan" means a Facility B Loan which
bears interest at a Eurodollar Rate requested by the Borrower pursuant to
Section 2.2.
"Eurodollar Interest Period" means, with respect to a Eurodollar
Ratable Advance or a Eurodollar Bid Rate Advance, a period of one, two, three
or six months commencing on a Business Day selected by the Borrower pursuant to
this Agreement. Such Eurodollar Interest Period shall end on (but exclude) the
day which corresponds numerically to such date one, two, three or six months
thereafter, provided, however, that if there is no such numerically
corresponding day in such next, second, third or sixth succeeding month, such
Eurodollar Interest Period shall end on the last Business Day of such next,
second, third or sixth succeeding month. If a Eurodollar Interest Period would
otherwise end on a day which is not a Business Day, such Eurodollar Interest
Period shall end on the next succeeding Business Day, provided, however, that
if said next succeeding Business Day falls in a new month, such Eurodollar
Interest Period shall end on the immediately preceding Business Day.
9
"Eurodollar Ratable Advance" means a Eurodollar Facility A Ratable
Advance or a Eurodollar Facility B Ratable Advance.
"Eurodollar Ratable Loan" means a Eurodollar Facility A Ratable Loan or
a Eurodollar Facility B Ratable Loan.
"Eurodollar Rate" means, with respect to a Eurodollar Ratable Advance
for the relevant Eurodollar Interest Period, the sum of (i) the Eurodollar Base
Rate applicable to that Eurodollar Interest Period plus (ii) the Applicable
Margin.
"Existing Credit Facilities" means (i) that certain 1998 NIKE 364-day
Credit Agreement dated as of May 21, 1998 among the Borrower, Bank of America,
as Agent, and the other financial institutions party thereto, and (ii) that
certain Credit Agreement dated as of September 15, 1995 among the Borrower,
certain of its Subsidiaries, Bank of America, as Agent, and the other financial
institutions party thereto.
"Exposure" means as to any Bank at any time (a) (i) prior to the
termination of the Facility A Commitments, such Bank's Facility A Commitment,
and (ii) after the termination of the Facility A Commitments, the aggregate
principal amount of all outstanding Facility A Loans made by such Bank plus (b)
(i) prior to the termination of the Facility B Commitments, such Bank's
Facility B Commitment and (ii) after the termination of the Facility B
Commitments, the aggregate outstanding principal amount of the Facility B Loans
made by such Bank.
"Facility A Advance" means a borrowing hereunder consisting of the
aggregate amount of the several Facility A Loans made by some or all of the
Facility A Banks to the Borrower on the same Borrowing Date, at the same Rate
Option (or on the same interest basis in the case of Competitive Facility A Bid
Advances) and for the same Interest Period and includes a Competitive
Facility A Bid Advance.
"Facility A Bank" means a Bank having a Facility A Commitment as set
forth on Schedule 3 hereof and its successors and assigns.
"Facility A Commitment" means, for each Facility A Bank, the obligation
of the Facility A Bank to make Facility A Loans not exceeding the amount set
forth opposite the Facility A Bank's name in Schedule 3 hereof, as such amount
may be modified from time to time pursuant to the terms of this Agreement
(collectively, the "Facility A Commitments").
"Facility A Exposure" means, as to any Facility A Bank, the Exposure of
such Facility A Bank with respect to its Facility A Commitment and its
Facility A Loans.
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"Facility A Loan" means a Loan made to the Borrower pursuant to Section
2.1(a).
"Facility A Pro Rata Share" means, as to any Facility A Bank at any
time, the percentage equivalent (expressed as a decimal, rounded to the ninth
decimal place) at such time of such Facility A Bank's Facility A Exposure
divided by the combined Facility A Exposure of all Facility A Banks.
"Facility A Termination Date" means November 17, 2005 or such later
date to which the Facility A Termination Date is extended pursuant to Section
2.6, unless the Facility A Commitments or this Agreement are earlier cancelled
or terminated pursuant to the terms hereof.
"Facility B Advance" means a borrowing hereunder consisting of the
aggregate amount of the several Facility B Loans made by some or all of the
Facility B Banks to the Borrower on the same Borrowing Date, at the same Rate
Option (or on the same interest basis in the case of Competitive Facility B Bid
Advances) and for the same Interest Period and includes a Competitive
Facility B Bid Advance.
"Facility B Bank" means a Bank having a Facility B Commitment as set
forth on Schedule 3 hereof and its successors and assigns.
"Facility B Commitment" means, for each Facility B Bank, the obligation
of the Facility B Bank to make Facility B Loans not exceeding the amount set
forth opposite the Facility B Bank's name in Schedule 3 hereof, as such amount
may be modified from time to time pursuant to the terms of this Agreement
(collectively, the "Facility B Commitments"); provided that if the Facility B
Term Loans are made, "Facility B Commitment" means, for each Facility B Bank,
the outstanding principal amount of the Facility B Term Loans made by such
Facility B Bank, and "Facility B Commitments" means the aggregate principal
amount of all Facility B Term Loans.
"Facility B Exposure" means, as to any Facility B Bank, the Exposure of
such Facility B Bank with respect to its Facility B Commitment and its
Facility B Loans.
"Facility B Loan" means a Loan made to the Borrower pursuant to Section
2.1(b) or a Facility B Term Loan.
"Facility B Pro Rata Share" means, as to any Facility B Bank at any
time, the percentage equivalent (expressed as a decimal, rounded to the ninth
decimal place) at such time of such Facility B Bank's Facility B Exposure
divided by the combined Facility B Exposure of all Facility B Banks.
"Facility B Termination Date" means November 16, 2001 or such later
date to which the Facility B Termination Date is extended pursuant to Section
2.7, unless the Facility B Commitments or this Agreement are earlier cancelled
or terminated pursuant to the terms hereof.
"Facility B Term Loan Borrowing Notice" means a notice substantially in
the form of Exhibit K hereto.
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"Facility B Term Loan" has the meaning specified in Section 2.8.1.
"Facility B Term Loan Maturity Date" has the meaning specified in
Section 2.8.1.
"Federal Funds Rate" means, for any day, the rate per annum (rounded
upwards to the nearest 1/100 of 1%) equal to the weighted average of the rates
on overnight Federal funds transactions with members of the Federal Reserve
System arranged by Federal funds brokers on such day, as published by the
Federal Reserve Bank on the Business Day next succeeding such day; provided
that (a) if such day is not a Business Day, the Federal Funds Rate for such day
shall be such rate on such transactions on the next preceding Business Day as
so published on the next succeeding Business Day, and (b) if no such rate is so
published on such next succeeding Business Day, the Federal Funds Rate for such
day shall be the average rate charged to Bank of America on such day on such
transactions as determined by the Administrative Agent.
"Fixed Rate" means the Eurodollar Rate, the Eurodollar Bid Rate or the
Absolute Rate.
"Fixed Rate Advance" means an Advance which bears interest at a Fixed
Rate.
"Fixed Rate Loan" means a Loan which bears interest at a Fixed Rate.
"Floating Rate" means, for any day, a rate per annum equal to the
Alternate Base Rate.
"Floating Rate Advance" means a Floating Rate Facility A Advance or a
Floating Rate Facility B Advance.
"Floating Rate Facility A Advance" means a Facility A Advance which
bears interest at the Floating Rate.
"Floating Rate Facility B Advance" means a Facility B Advance which
bears interest at the Floating Rate.
"Floating Rate Interest Period" means, with respect to a Floating Rate
Advance, a period of three months commencing on a Business Day selected by the
Borrower pursuant to this Agreement. If such Floating Rate Interest Period
would end on a day which is not a Business Day, such Floating Rate Interest
Period shall end on the next succeeding Business Day.
"Floating Rate Loan" means a Loan which bears interest at the Floating
Rate.
"Further Taxes" means any and all present or future taxes, levies,
assessments, imposts, duties, deductions, fees, withholdings or similar charges
(including net income taxes and franchise taxes), and all liabilities with
respect thereto, imposed by any jurisdiction on account of amounts payable or
paid pursuant to Section 3.1.
"Governmental Authority" means any nation or government, any state or
other political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, administrative tribunal, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government, and any
corporation or other entity owned or controlled, through stock or capital
ownership or otherwise, by any of the foregoing.
12
"Indebtedness" of a Person means such Person's (i) obligations for
borrowed money, (ii) obligations representing the deferred purchase price of
property or services other than accounts payable arising in the ordinary course
of such Person's business payable on terms customary in the trade, (iii)
obligations, whether or not assumed, secured by Liens or payable out of the
proceeds or production from property now or hereafter owned or acquired by such
Person, (iv) obligations which are evidenced by notes, acceptances, or other
instruments, (v) Capitalized Lease Obligations, (vi) net liabilities under
interest rate swap, foreign exchange or cap agreements, and (vii) liability
under any arrangement by which such Person assumes, guarantees, contingently
agrees to purchase or provide funds for the payment of, or otherwise becomes or
is contingently liable upon, the obligation or liability of any other Person,
or agrees to maintain the net worth or working capital or other financial
condition of any other Person.
"Indemnified Liabilities" has the meaning specified in Section 10.7.
"Interest Period" means a Floating Rate Interest Period, a Eurodollar
Interest Period or an Absolute Rate Interest Period.
"Invitation for Competitive Bid Quotes" means an Invitation for
Competitive Bid Quotes substantially in the form of Exhibit D hereto, completed
and delivered by the Administrative Agent to the Applicable Banks in accordance
with Section 2.3.3.
"IRS" means the Internal Revenue Service of the United States Treasury.
"Knight Family" means, collectively, Xxxxxx X. Xxxxxx, and his wife,
children, parents and siblings, and any trust, corporation or partnership with
respect to his assets established for estate planning purposes.
"Laws" means, collectively, all international, foreign, Federal, state
and local statutes, treaties, rules, guidelines, regulations, ordinances, codes
and administrative or judicial precedents or authorities, including the
interpretation or administration thereof by any Governmental Authority charged
with the enforcement, interpretation or administration thereof, and all
applicable administrative orders, directed duties, requests, licenses,
authorizations and permits of, and agreements with, any Governmental Authority,
in each case whether or not having the force of law.
"Lending Office" means, as to any Bank, the office or offices of such
Bank described as such on Schedule 4, or such other office or offices as a Bank
may from time to time notify the Borrower and the Administrative Agent.
"Leverage Ratio" means, with respect to the Borrower and its
Subsidiaries on a consolidated basis, the ratio of (i) Indebtedness to (ii) net
worth as determined in accordance with generally accepted accounting
principles.
13
"Lien" means any security interest, mortgage, pledge, lien (statutory
or other), claim, charge, encumbrance, title retention agreement, lessor's
interest under a Capitalized Lease or analogous instrument, in, of or on any
Person's assets or properties in favor of any other Person.
"Loan" means, with respect to a Bank, such Bank's portion, if any, of
any Advance.
"Loan Documents" means this Agreement and the Notes.
"Majority Banks" means Banks in the aggregate having more than 50% of
the combined Exposure at such time of all Banks.
"Majority Facility A Banks" means Facility A Banks in the aggregate
having more than 50% of the combined Facility A Exposure at such time of all
Facility A Banks.
"Majority Facility B Banks" means Facility B Banks in the aggregate
having more than 50% of the combined Facility B Exposure at such time of all
Facility B Banks.
"Material Adverse Effect" means with respect to any matter that such
matter (i) could reasonably be expected to materially and adversely affect the
business, properties, condition (financial or otherwise), or results of
operations of the Borrower or the Borrower and its Subsidiaries taken as a
whole, or (ii) has been brought by or before any court or arbitrator or any
governmental body, agency or official, and draws into question the validity or
enforceability of any material provision of any Loan Document against any
obligor party thereto.
"Material Subsidiary" means, at any time, any Subsidiary having at such
time either (i) total (gross) revenues for the preceding four fiscal quarter
period in excess of 10% of the Borrower's consolidated total (gross) revenues
for such period, or (ii) total assets, as of the last day of the preceding
fiscal quarter, having a net book value in excess of 10% of the net book value
of the Borrower's consolidated total assets on such date, in each case, based
upon the Borrower's most recent annual or quarterly financial statements
delivered to the Administrative Agent under Section 6.1.
"Moody's" means Xxxxx'x Investors Service, Inc. and any successor
thereto that is a nationally-recognized rating agency.
"Multiemployer Plan" means a Plan maintained pursuant to a collective
bargaining agreement or any other arrangement to which the Borrower or any
member of the Controlled Group is a party to which more than one employer is
obligated to make contributions.
"Notes" means, collectively, the Competitive Facility A Bid Notes, the
Competitive Facility B Bid Notes and the Ratable Notes; and "Note" means any
one of the Notes.
"Notice of Conversion/Continuation" is defined in Section 2.2.4.
"Obligations" means all unpaid principal of and accrued and unpaid
interest on the Loans, all accrued and unpaid fees and all other
14
reimbursements, indemnities or other obligations of the Borrower to the Banks
or to any Bank, the Administrative Agent or any indemnified party hereunder
arising under the Loan Documents.
"Occupational Safety and Health Law" means the Occupational Safety and
Health Act of 1970 and any other Law regulating, relating to or imposing
liability or standards of conduct concerning employee health and/or safety.
"Other Taxes" means any present or future stamp, court or documentary
taxes or any other excise or property taxes, charges or similar levies which
arise from any payment made hereunder or from the execution, delivery,
performance, enforcement or registration of, or otherwise with respect to, this
Agreement or any other Loan Documents, excluding, in the case of each Bank and
the Administrative Agent, respectively, taxes imposed on or measured by its net
income by the jurisdiction (or any political subdivision thereof) under the
laws of which such Bank or the Administrative Agent, as the case may be, is
organized or maintains a lending office.
"Participants" is defined in Section 13.2.1.
"Payment Date" means the last Business Day of each February, May,
August and November.
"PBGC" means the Pension Benefit Guaranty Corporation and its
successors and assigns.
"Person" means any individual, trustee, corporation, general
partnership, limited partnership, limited liability company, joint stock
company, trust, unincorporated organization, bank, business association, firm,
joint venture or Governmental Authority.
"Plan" means an employee pension benefit plan which is covered by Title
IV of ERISA or subject to the minimum funding standards under Section 412 of
the Code as to which the Borrower or any member of the Controlled Group may
have any liability.
"Ratable Advance" means a Ratable Facility A Advance or a Ratable
Facility B Advance.
"Ratable Borrowing Notice" is defined in Section 2.2.3.
"Ratable Facility A Advance" means a borrowing hereunder consisting of
the aggregate amount of the several Ratable Facility A Loans made by the
Facility A Banks to the Borrower at the same time, at the same Rate Option and
for the same Interest Period.
"Ratable Facility A Loan" means any Ratable Facility A Loan made by a
Facility A Bank to the Borrower pursuant to Section 2.2.1(a) hereof.
"Ratable Facility A Note" means a promissory note in substantially the
form of Exhibit A-1 hereto, duly executed and delivered to the Administrative
Agent by the Borrower for the account of each Facility A Bank and payable to
the order of a Facility A Bank in the amount of its Facility A Commitment,
including any amendment, modification, renewal or replacement of such
promissory note.
15
"Ratable Facility B Advance" means a borrowing hereunder consisting of
the aggregate amount of the several Ratable Facility B Loans made by the
Facility B Banks to the Borrower at the same time, at the same Rate Option and
for the same Interest Period.
"Ratable Facility B Loan" means any Ratable Facility B Loan made by a
Facility B Bank to the Borrower pursuant to Section 2.2.1(b) hereof.
"Ratable Facility B Note" means a promissory note in substantially the
form of Exhibit A-2 hereto, duly executed and delivered to the Administrative
Agent by the Borrower for the account of each Facility B Bank and payable to
the order of a Facility B Bank in the amount of its Facility B Commitment,
including any amendment, modification, renewal or replacement of such
promissory note.
"Ratable Loan" means a Ratable Facility A Loan or a Ratable Facility B
Loan.
"Ratable Notes" means the Ratable Facility A Notes and the Ratable
Facility B Notes.
"Rate Option" means the Eurodollar Rate or the Floating Rate.
"Rating Agency" means S&P and Moody's.
"Regulation D" means Regulation D of the Board of Governors of the
Federal Reserve System from time to time in effect and shall include any
successor or other regulation or official interpretation of said Board of
Governors relating to reserve requirements applicable to member banks of the
Federal Reserve System.
"Regulations U and X" means Regulations U and X of the Board of
Governors of the Federal Reserve System from time to time in effect and shall
include any successor or other regulation or official interpretation of said
Board of Governors relating to the extension of credit by banks for the purpose
of purchasing or carrying margin stocks applicable to member banks of the
Federal Reserve System.
"Reportable Event" means any of the events set forth in Section 4043(c)
of ERISA, other than events for which the 30-day notice period has been waived.
"Reserve Requirement" means, with respect to a Eurodollar Interest
Period, the maximum aggregate reserve requirement (including all basic,
supplemental, marginal and other reserves) which is imposed under Regulation D
on eurocurrency liabilities (as defined in Regulation D). The Reserve
Requirement shall be adjusted automatically on and as of the effective date of
any change in the applicable reserve requirement.
"S&P" means Standard & Poor's Ratings Services, a division of The
XxXxxx-Xxxx Companies, Inc. and any successor thereto that is a nationally-
recognized rating agency.
"Single Employer Plan" means a Plan maintained by the Borrower or any
member of the Controlled Group for employees of the Borrower or any member of
the Controlled Group.
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"Subsidiary" of a Person means a corporation, partnership, joint
venture, limited liability company or other business entity of which a majority
of the shares of securities or other interests having ordinary voting power for
the election of directors or other governing body (other than securities or
interests having such power only by reason of the happening of a contingency)
are at the time beneficially owned, or the management of which is otherwise
controlled, directly, or indirectly through one or more intermediaries, or
both, by such Person. Unless otherwise specified, all references herein to a
"Subsidiary" or to "Subsidiaries" shall refer to a Subsidiary or Subsidiaries
of the Borrower.
"Substantial Portion" is defined in Section 6.12.
"Syndication Agent" means Citicorp USA, Inc. in its capacity as
syndication agent and not in its individual capacity as a Bank.
"Taxes" means any and all present or future taxes, levies, assessments,
imposts, duties deductions, fees withholdings or similar charges, and all
liabilities with respect thereto, excluding, in the case of each Bank and the
Administrative Agent, respectively, taxes imposed on or measured by its net
income by the jurisdiction (or any political subdivision thereof) under the
laws of which such Bank or the Administrative Agent, as the case may be, is
organized or maintains a lending office.
"Unfriendly Acquisition" means the Acquisition of a corporation,
limited liability company or similar business entity if the Acquisition has not
been approved by the board of directors (or comparable governing body) of such
entity.
"Unfunded Liabilities" means, (i) in the case of Single Employer Plans,
the amount (if any) by which the present value of all vested nonforfeitable
benefits under such Plan exceeds the fair market value of all Plan assets
allocable to such benefits, all determined as of the then most recent valuation
date for such Plans, and (ii) in the case of Multiemployer Plans, the
withdrawal liability that would be incurred by the Controlled Group if all
members of the Controlled Group completely withdrew from all Multiemployer
Plans.
"Unmatured Default" means an event which but for the lapse of time or
the giving of notice, or both, would constitute a Default.
"Withdrawing Bank" means a Facility A Withdrawing Bank (as defined in
Section 2.6(a)) or a Facility B Withdrawing Bank (as defined in Section
2.6(a)).
1.2. Other Interpretive Provisions.
(a) The meanings of defined terms are equally applicable to the
singular and plural forms of the defined terms.
(b) (i) The words "herein" and "hereunder" and words of
similar import when used in any Loan Document shall refer to such Loan Document
as a whole and not to any particular provision thereof.
17
(ii) Unless otherwise specified herein, Article, Section,
Exhibit and Schedule references are to this Agreement.
(iii) The term "including" is by way of example and not
limitation.
(iv) The term "documents" includes any and all
instruments, documents, agreements, certificates, notices, reports,
financial statements and other writings, however evidenced.
(c) In the computation of periods of time from a specified date to
a later specified date, the word "from" means "from and including;" the words
"to" and "until" each mean "to but excluding;" and the word "through" means "to
and including."
1.3. References to Agreements and Laws. Unless otherwise expressly
provided herein, (a) references to agreements (including the Loan Documents)
and other contractual instruments shall be deemed to include all subsequent
amendments, restatements, extensions, supplements and other modifications
thereto, but only to the extent that such amendments, restatements, extensions,
supplements and other modifications are not prohibited by any Loan Document;
and (b) references to any Law shall include all statutory and regulatory
provisions consolidating, amending, replacing, supplementing, reforming or
interpreting such Law.
ARTICLE II
THE FACILITIES
2.1. The Facilities.
(a) Facility A. From the Effective Date until the
Facility A Termination Date, each Facility A Bank severally agrees to make
Ratable Facility A Loans to the Borrower from time to time in amounts not to
exceed in the aggregate at any one time outstanding, the amount of its
Facility A Commitment.
(i) Each Facility A Bank may, in its sole
discretion and not subject to the amount of its Facility A Commitment,
make bids to make Competitive Facility A Bid Loans to the Borrower in
accordance with Section 2.3.
(ii) In no event may the aggregate principal
amount of all outstanding Facility A Advances (including both the
Ratable Facility A Advances and the Competitive Facility A Bid
Advances) exceed the Facility A Commitments.
(iii) Subject to the terms of this Agreement, the
Borrower may borrow, repay and re-borrow within the limits of each
Facility A Bank's Facility A Commitment at any time prior to the
Facility A Termination Date.
(b) Facility B. From the Effective Date until the
Facility B Termination Date, each Facility B Bank severally agrees to make
Ratable Facility B Loans to the Borrower from time to time in amounts not to
exceed in the aggregate at any one time outstanding, the amount of its
Facility B Commitment.
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(i) Each Facility B Bank may, in its sole discretion and
not subject to the amount of its Facility B Commitment, make bids to
make Competitive Facility B Bid Loans to the Borrower in accordance
with Section 2.3.
(ii) In no event may the aggregate principal amount of
all outstanding Facility B Advances (including both the Ratable
Facility B Advances and the Competitive Facility B Bid Advances) exceed
the Facility B Commitments.
(iii) Subject to the terms of this Agreement, the
Borrower may borrow, repay and re-borrow within the limits of each
Facility B Bank's Facility B Commitment at any time prior to the
Facility B Termination Date.
2.2. Ratable Advances.
2.2.1. General.
(a) Facility A. Each Ratable Facility A Advance hereunder
shall consist of borrowings made from the several Facility A Banks ratably in
proportion to the amounts of their respective Facility A Commitments. The
aggregate outstanding amount of Competitive Facility A Bid Advances shall
reduce each Facility A Bank's Facility A Commitment ratably in the proportion
such Facility A Bank's Facility A Commitment bears to the Facility A
Commitments regardless of which Facility A Bank or Facility A Banks make such
Competitive Facility A Bid Advances. No Facility A Bank shall be obligated to
make a Facility A Loan hereunder if the aggregate principal amount of such
Bank's Facility A Loans outstanding would exceed its Facility A Commitment.
Ratable Facility A Advances shall be evidenced by the Ratable Facility A Notes.
(b) Facility B. Each Ratable Facility B Advance hereunder
shall consist of borrowings made from the several Facility B Banks ratably in
proportion to the amounts of their respective Facility B Commitments. The
aggregate outstanding amount of Competitive Facility B Bid Advances shall
reduce each Facility B Bank's Facility B Commitment ratably in the proportion
such Facility B Bank's Facility B Commitment bears to the Facility B
Commitments regardless of which Facility B Bank or Facility B Banks make such
Competitive Facility B Bid Advances. No Facility B Bank shall be obligated to
make a Facility B Loan hereunder if the aggregate principal amount of its
Facility B Loans outstanding would exceed such Bank's Facility B Commitment.
Ratable Facility B Advances shall be evidenced by the Ratable Facility B Notes.
2.2.2. Ratable Advance Rate Options. The Ratable Advances may be
Floating Rate Advances or Eurodollar Ratable Advances, or a combination
thereof, selected by the Borrower in accordance with Section 2.2.3, and as
converted or continued in accordance with Section 2.2.4; provided that (a) no
Facility A Advance may mature after the Facility A Termination Date, and (b) no
Facility B Advance may mature after the Facility B Termination Date.
2.2.3. Method of Selecting Rate Options and Interest Periods for
Ratable Advances. The Borrower shall select the Rate Option and Interest
19
Period applicable to each Ratable Advance from time to time. The Borrower
shall give the Administrative Agent irrevocable notice in the form attached
hereto as Exhibit G (a "Ratable Borrowing Notice") not later than 8:00 a.m.
(San Francisco time) (a) on the Business Day preceding the Borrowing Date of
each Floating Rate Advance, and (b) three Business Days before the Borrowing
Date for each Eurodollar Ratable Advance. Notwithstanding the foregoing, a
Ratable Borrowing Notice for a Floating Rate Advance may be given not later
than 15 minutes after the time which the Borrower is required to reject one or
more bids offered in connection with an Absolute Rate Auction pursuant to
Section 2.3.6 and a Ratable Borrowing Notice for a Eurodollar Ratable Advance
may be given not later than 15 minutes after the time the Borrower is required
to reject one or more bids offered in connection with a Eurodollar Auction
pursuant to Section 2.3.6. A Ratable Borrowing Notice shall specify:
(a) whether such Ratable Advance is a Ratable Facility A
Advance or a Ratable Facility B Advance;
(b) the Borrowing Date, which shall be a Business Day, of
such Ratable Advance;
(c) the aggregate amount of such Ratable Advance;
(d) the Rate Option selected for such Ratable Advance; and
(e) in the case of each Fixed Rate Advance, the Interest
Period applicable thereto (which may not end after the Applicable Termination
Date).
2.2.4. Conversion and Continuation Elections.
(a) Subject to subsection 2.2.4(d), the Borrower may, upon
irrevocable written notice to the Administrative Agent in accordance with
subsection 2.2.4(b): (i) elect, as of any Business Day, in the case of a
Floating Rate Advance, or as of the last day of the applicable Interest Period,
in the case of a Eurodollar Ratable Advance, to convert such Advance into an
Advance bearing interest based on another Rate Option; or (ii) elect, as of the
last day of the applicable Interest Period, to continue a Eurodollar Ratable
Advance or Floating Rate Advance having an Interest Period expiring on such
day; except, that during the existence of a Default or Unmatured Default, the
Borrower may not elect to have any Advance converted into or continued as a
Eurodollar Ratable Advance unless (1) with respect to any conversion or
continuation of a Facility A Advance, the Majority Facility A Banks consent
thereto, or (2) with respect to any conversion or continuation of a Facility B
Advance, the Majority Facility B Banks consent thereto. All conversions and
continuations of Advances shall be made ratably according to the respective
outstanding principal amounts of the Loans with respect to which the notice was
given held by each Applicable Bank.
(b) The Borrower shall deliver a notice of
conversion/continuation in the form attached hereto as Exhibit H (a "Notice of
Conversion/Continuation") to be received by the Administrative Agent not later
than 8:00 a.m. (San Francisco time) (i) on the Business Day preceding the
Conversion/Continuation Date if the Advance is to be converted into or
20
continued as a Floating Rate Advance, and (ii) three Business Days before the
Conversion/Continuation Date if the Advance is to be converted into or
continued as a Eurodollar Ratable Advance; specifying:
(i) whether such Ratable Advance to be converted or
continued is a Facility A Advance or a Facility B Advance;
(ii) the Conversion/Continuation Date, which shall be
a Business Day, of such Ratable Advance;
(iii) the aggregate amount of such Ratable Advance to
be converted or continued;
(iv) the Rate Option for such Ratable Advance
resulting from the conversion or continuation; and
(v) in the case of each Fixed Rate Advance, the
Interest Period applicable thereto (which may not end after the Applicable
Termination Date).
(c) If upon the expiration of any Interest Period applicable to
a Eurodollar Ratable Advance, the Borrower has failed to select timely a new
Interest Period to be applicable to such Advance, or if any Default or
Unmatured Default then
exists, the Borrower shall be deemed to have elected to convert such Advance
into a Floating Rate Advance effective as of the expiration date of such
Interest Period.
(d) Notwithstanding anything herein to the contrary, the
Borrower may not (i) convert a Facility A Advance into a Facility B Advance, or
(ii) convert a Facility B Advance into a Facility A Advance.
2.3. Competitive Bid Advances.
2.3.1. Competitive Bid Option. In addition to Ratable Advances
pursuant to Section 2.2, but subject to the terms and conditions of this
Agreement (including any limitations as to the maximum aggregate principal
amount of all outstanding Facility A Advances and any limitations as to the
maximum aggregate principal amount of all outstanding Facility B Advances
hereunder), the Borrower may, as set forth in this Section 2.3, request the
Applicable Banks, prior to the Applicable Termination Date, to make offers to
make Competitive Bid Advances to the Borrower. Each Applicable Bank may, but
shall have no obligation to, make such offers and the Borrower may, but shall
have no obligation to, accept any such offers in the manner set forth in this
Section 2.3. Competitive Facility A Bid Advances shall be evidenced by the
Competitive Facility A Bid Notes and Competitive Facility B Bid Advances shall
be evidenced by the Competitive Facility B Bid Notes.
2.3.2. Competitive Bid Quote Request. When the Borrower wishes to
request offers to make Competitive Bid Loans under this Section 2.3, it shall
transmit to the Administrative Agent by telecopy a Competitive Bid Quote
Request substantially in the form of Exhibit C hereto so as to be received no
21
later than (i) 8:00 a.m. (San Francisco time) at least four Business Days prior
to the Borrowing Date proposed therein, in the case of a Eurodollar Auction, or
(ii) 8:00 a.m. (San Francisco time) at least one Business Day prior to the
Borrowing Date proposed therein, in the case of an Absolute Rate Auction
specifying:
(a) whether the Borrower is requesting offers to make
Competitive Facility A Bid Loans or offers to make Competitive Facility B Bid
Loans;
(b) the proposed Borrowing Date, which shall be a Business Day,
for the proposed Competitive Bid Advance;
(c) the aggregate principal amount of such Competitive Bid
Advance;
(d) whether the Competitive Bid Quotes requested are to set
forth a Eurodollar Bid Rate or an Absolute Rate, or both; and
(e)the Interest Period applicable thereto (which may not end
after the Applicable Termination Date).
The Borrower may request offers to make Competitive Bid Loans for more
than one Interest Period in a single Competitive Bid Quote Request; provided
that the Borrower may not request offers to make Competitive Facility A Bid
Loans and offers to make Competitive Facility B Bid Loans in a single
Competitive Bid Quote Request. No Competitive Bid Quote Request shall be given
within 5 Business Days (or, in either case upon reasonable prior notice to the
Applicable Banks, such other number of days as the Borrower and the
Administrative Agent may agree) of any other Competitive Bid Quote Request.
Each Competitive Bid Quote Request shall be in Dollars in a minimum amount of
$5,000,000 (and in integral multiples of $1,000,000 in excess thereof). A
Competitive Bid Quote Request that does not conform substantially to the format
of Exhibit C hereto shall be rejected, and the Administrative Agent shall
promptly notify the Borrower of such rejection by telecopy.
2.3.3. Invitation for Competitive Bid Quotes. Promptly and in any event
before the close of business on the same Business Day of receipt of a
Competitive Bid Quote Request that is not rejected pursuant to Section 2.3.2,
the Administrative Agent shall send to each of the Applicable Banks by telecopy
an Invitation for Competitive Bid Quotes substantially in the form of Exhibit D
hereto, which shall constitute an invitation by the Borrower to each Applicable
Bank to submit Competitive Bid Quotes offering to make the Competitive Bid
Loans to which such Competitive Bid Quote Request relates in accordance with
this Section 2.3.
2.3.4. Submission and Contents of Competitive Bid Quotes.
(a) Each Applicable Bank may, in its sole discretion, submit a
Competitive Bid Quote containing an offer or offers to make Competitive Bid
Loans in response to any Invitation for Competitive Bid Quotes. Each
Competitive Bid Quote must comply with the requirements of this Section 2.3.4
and must be submitted to the Administrative Agent by telecopy at the
Administrative Agent's Office not later than (a) 9:00 a.m. (San Francisco time)
at least three Business Days prior to the proposed Borrowing Date, in the case
of a Eurodollar Auction or (b) 9:00 a.m. (San Francisco time) on the proposed
Borrowing Date, in the case of an Absolute Rate Auction (or, in either case
upon reasonable prior notice to the Applicable Banks, such other time and date
as the Borrower and the Administrative Agent may agree); provided that
Competitive Bid Quotes submitted by Bank of America may only be submitted if
Bank of America notifies the Borrower of the terms of the offer or offers
contained therein not later than 15 minutes prior to the latest time at which
the relevant Competitive Bid Quotes must be submitted by the other Applicable
Banks. Subject to Articles IV and VIII, any Competitive Bid Quote so made
shall be irrevocable except with the written consent of the Administrative
Agent given on the instructions of the Borrower.
(b) Each Competitive Bid Quote shall be in substantially the form
of Exhibit E hereto and shall in any case specify:
(i) whether the Competitive Bid Quote applies to a proposed
Competitive Facility A Bid Loan or a proposed Competitive Facility B Bid Loan;
(ii) the proposed Borrowing Date, which shall be the same as
that set forth in the applicable Invitation for Competitive Bid Quotes,
(iii) the principal amount of the Competitive Bid Loan for
which each such offer is being made, which principal amount (1) may be greater
than, less than or equal to the Facility A Commitment or the Facility B
Commitment, as the case may be, of the quoting Bank, (2) must be at least
$5,000,000 and an integral multiple of $1,000,000, and (3) may not exceed the
principal amount of Competitive Bid Loans for which offers were requested,
(iv) in the case of a Eurodollar Auction, the Competitive
Bid Margin offered for each such Competitive Bid Loan,
(v) the minimum or maximum amount, if any, of the
Competitive Bid Loan which may be accepted by the Borrower,
(vi) in the case of an Absolute Rate Auction, the Absolute
Rate offered for each such Competitive Bid Loan, and
(vii) the identity of the quoting Bank.
(c) The Administrative Agent shall reject any Competitive Bid
Quote that:
(i) is not substantially in the form of Exhibit E hereto or
does not specify all of the information required by Section 2.3.4(b);
(ii) contains qualifying, conditional or similar language,
other than any such language contained in Exhibit E hereto;
23
(iii) proposes terms other than or in addition to those
set forth in the applicable Invitation for Competitive Bid Quotes; or
(iv) arrives after the time set forth in Section
2.3.4(a).
If any Competitive Bid Quote shall be rejected pursuant to this Section
2.3.4(c), then the Administrative Agent shall notify the relevant Bank of such
rejection as soon as practical.
2.3.5. Notice to Borrower. The Administrative Agent shall promptly
notify the Borrower of the terms (i) of any Competitive Bid Quote submitted by
an Applicable Bank that is in accordance with Section 2.3.4, and (ii) of any
Competitive Bid Quote that is in accordance with Section 2.3.4 and amends,
modifies or is otherwise inconsistent with a previous Competitive Bid Quote
submitted by such Applicable Bank with respect to the same Competitive Bid
Quote Request. Any such subsequent Competitive Bid Quote shall be disregarded
by the Administrative Agent unless such subsequent Competitive Bid Quote
specifically states that it is submitted solely to correct a manifest error in
such former Competitive Bid Quote. The Administrative Agent's notice to the
Borrower shall specify the aggregate principal amount of Competitive Bid Loans
for which offers have been received for each Interest Period specified in the
related Competitive Bid Quote Request and the respective principal amounts and
Eurodollar Bid Rates or Absolute Rates, as the case may be, so offered.
2.3.6. Acceptance and Notice by Borrower. Not later than (i) 10:00 a.m.
(San Francisco time) at least three Business Days prior to the proposed
Borrowing Date, in the case of a Eurodollar Auction, or (ii) 10:00 a.m. (San
Francisco time) on the proposed Borrowing Date, in the case of an Absolute Rate
Auction (or, in either case upon reasonable prior notice to the Applicable
Banks, such other time and date as the Borrower and the Administrative Agent
may agree), the Borrower shall notify the Administrative Agent of its
acceptance or rejection of the offers so notified to it pursuant to Section
2.3.5; provided, however, that the failure by the Borrower to give such notice
to the Administrative Agent shall be deemed to be a rejection of all such
offers. In the case of acceptance, such notice (a "Competitive Bid Borrowing
Notice") shall specify the aggregate principal amount of offers for each
Interest Period that are accepted. The Borrower may accept any Competitive Bid
Quote in whole or in part (subject to the terms of Section 2.3.4(b)(v));
provided that:
(a) the aggregate principal amount of each Competitive Bid
Advance may not exceed the applicable amount set forth in the related
Competitive Bid Quote Request;
(b) acceptance of offers may only be made on the basis of
ascending Eurodollar Bid Rates or Absolute Rates, as the case may be; and
(c) the Borrower may not accept any offer that is described in
Section 2.3.4(c) or that otherwise fails to comply with the requirements of
this Agreement for the purpose of obtaining a Competitive Bid Loan under this
Agreement.
2.3.7. Allocation by Administrative Agent. If offers are made by two or
more Banks with the same Eurodollar Bid Rates or Absolute Rates, as the case
24
may be, for a greater aggregate principal amount than the amount in respect of
which offers are accepted for the related Interest Period, the principal amount
of Competitive Bid Loans in respect of which such offers are accepted shall be
allocated by the Administrative Agent among such Banks as nearly as possible
(in such multiples, not less than $1,000,000, as the Administrative Agent may
deem appropriate) in proportion to the aggregate principal amount of such
offers; provided, however, that no Bank shall be allocated a portion of any
Competitive Bid Advance which is less than the minimum amount which such Bank
has indicated that it is willing to accept. Allocations by the Administrative
Agent of the amounts of Competitive Bid Loans shall be conclusive in the
absence of manifest error. The Administrative Agent shall promptly, but in any
event on the same Business Day, notify each Bank of its receipt of a
Competitive Bid Borrowing Notice and the aggregate principal amount of such
Competitive Bid Advance allocated to each participating Bank.
2.4. Fees.
2.4.1. Arrangement, Structuring and Agency Fees. The Borrower shall pay
such arrangement, structuring and agency fees to Bank of America and the
Administrative Agent in the amounts and at the times specified in the letter
agreement, dated October 5, 2000, between the Borrower, Bank of America and
Banc of America Securities LLC. Such fees shall be fully earned when paid and
shall be nonrefundable for any reason whatsoever.
2.4.2. Administration Fee. The Borrower hereby agrees to pay to the
Administrative Agent an administration fee for Competitive Bid Quote Requests
in such amounts as are from time to time agreed upon by the Borrower and the
Administrative Agent.
2.4.3. Applicable Facility Fees.
(a) Facility A. The Borrower shall pay to the Administrative
Agent for the account of each Facility A Bank in accordance with its Facility A
Pro Rata Share, a facility fee equal to the Applicable Facility Fee Rate times
the actual daily amount of the Facility A Commitments, regardless of usage.
The facility fee shall accrue at all times from the Effective Date until the
Facility A Termination Date and shall be due and payable quarterly in arrears
on each Payment Date, commencing with the first Payment Date to occur after the
Effective Date, and on the Facility A Termination Date.
(b) Facility B. The Borrower shall pay to the Administrative
Agent for the account of each Facility B Bank in accordance with its Facility B
Pro Rata Share, a facility fee equal to the Applicable Facility Fee Rate times
the actual daily amount of the Facility B Commitments, regardless of usage.
The facility fee shall accrue at all times from the Effective Date until the
Facility B Termination Date (or if the Facility B Term Loans are made, the
Facility B Term Loan Maturity Date) and shall be due and payable quarterly in
arrears on each Payment Date, commencing with the first Payment Date to occur
after the Effective Date, and on the Facility B Termination Date (or if the
Facility B Term Loans are made, the Facility B Term Loan Maturity Date).
25
(c) Calculation of Facility Fees. The facility fees shall be
calculated quarterly in arrears, and if there is any change in the Applicable
Facility Fee Rate during any quarter, the actual daily amount shall be computed
and multiplied by the Applicable Facility Fee Rate separately for each period
during such quarter that such Applicable Facility Fee Rate was in effect. The
facility fees shall accrue at all times, including at any time during which one
or more of the conditions in Article IV is not met.
2.4.4. Utilization Fees.
(a) Facility A. The Borrower shall pay to the Administrative
Agent for the account of each Facility A Bank in accordance with its Facility A
Pro Rata Share, a utilization fee of 0.10% times the actual daily aggregate
outstanding Facility A Loans on each day that the aggregate outstanding amount
of the Facility A Loans and the Facility B Loans exceeds 33.0% of the
Facility A Commitments and the Facility B Commitments. The utilization fee
shall be due and payable quarterly in arrears on each Payment Date, commencing
with the first Payment Date to occur after the Effective Date, and on the
Facility A Termination Date. The utilization fee shall be calculated quarterly
in arrears.
(b) Facility B. The Borrower shall pay to the Administrative
Agent for the account of each Facility B Bank in accordance with its Facility B
Pro Rata Share, a utilization fee of 0.10% times the actual daily aggregate
outstanding Facility B Loans on each day that the aggregate outstanding amount
of the Facility A Loans and the Facility B Loans exceeds 33.0% of the
Facility A Commitments and the Facility B Commitments. The utilization fee
shall be due and payable quarterly in arrears on each Payment Date, commencing
with the first Payment Date to occur after the Effective Date, and on the
Facility B Termination Date (or if the Facility B Term Loans are made, the
Facility B Term Loan Maturity Date).
(c) Calculation of Utilization Fees. The utilization fees shall
be calculated quarterly in arrears. The utilization fees shall accrue at all
times, including at any time during which one or more of the conditions in
Article IV is not met.
2.4.5. Banks' Participation Fee. On the Effective Date, the Borrower
shall pay to the Administrative Agent, for the account of the Banks in
accordance with their respective pro rata shares, a participation fee in an
amount set forth in a separate letter agreement between the Borrower, Bank of
America and Banc of America Securities LLC. Such participation fees are for
the credit facilities committed by the Banks under this Agreement and are fully
earned on the date paid. The participation fee paid to each Bank is solely for
its own account and is nonrefundable for any reason whatsoever.
2.4.6. Computation of Fees. Computation of all fees shall be calculated
on the basis of a year of 360 days and the actual number of days elapsed, which
results in a higher yield to the payee thereof than a method based on a year of
365 or 366 days.
26
2.5. General Facility Terms.
2.5.1. Method of Borrowing. Not later than 11:00 a.m. (San Francisco
time) on each Borrowing Date, each Bank shall make available its Loan or Loans
in funds immediately available to the Administrative Agent at the
Administrative Agent's Office. Unless otherwise instructed by the Borrower,
the Administrative Agent shall deposit the funds so received from the Banks in
the Borrower's account at Bank of America's main office in San Francisco.
2.5.2. Minimum Amount of Each Advance. Each Ratable Advance, and each
conversion and continuation with respect to a Ratable Advance, shall be in the
minimum amount of $10,000,000 (and in integral multiples of $1,000,000 if in
excess thereof); provided, however, that (a) any Floating Rate Facility A
Advance may be in the aggregate amount of the unused Facility A Commitments,
and (b) any Floating Rate Facility B Advance may be in the aggregate amount of
the unused Facility B Commitments.
2.5.3. Repayment. Except for optional payments pursuant to Section
2.5.4, (a) each Competitive Bid Advance shall be paid in full by the Borrower
on the last day of the Interest Period applicable thereto, and (b) each Ratable
Advance shall be paid in full by the Borrower on the last day of the Interest
Period applicable thereto, unless such Ratable Advance is converted or
continued in accordance with Section 2.2.4; provided that in any event all
Facility A Advances shall be paid in full on the Facility A Termination Date
and all Facility B Advances shall be paid in full on the Facility B Termination
Date (provided that if the Facility B Term Loans are made, the Facility B Term
Loans shall be paid in full on the Facility B Term Loan Maturity Date).
2.5.4. Optional Principal Payments. The Borrower may from time to time
pay all outstanding Ratable Advances, or, in a minimum aggregate amount of
$10,000,000 (and in multiples of $1,000,000 if in excess thereof), any portion
of the outstanding Ratable Advances upon three Business Days' prior notice to
the Administrative Agent. All such payments shall be made in immediately
available funds to the Administrative Agent at the Administrative Agent's
Office by 11:00 a.m. (San Francisco time) on the date of payment. A
Competitive Bid Advance may not be prepaid prior to the last day of its
applicable Interest Period without the prior consent of the Bank which
originally made such Loan, which consent may be given or withheld at the Bank's
sole and absolute discretion. Any prepayment of a Fixed Rate Advance prior to
the end of an applicable Interest Period shall be subject to the
indemnification provided in Section 3.4.
2.5.5. Interest Periods. Subject to the provisions of Section 2.5.6,
each Advance shall bear interest from the first day of the Interest Period
applicable thereto to the earlier of (a) the last day of such Interest Period,
or (b) the date of any earlier prepayment as permitted by Section 2.5.4, at the
interest rate determined as applicable to such Advance, subject to the
Borrower's right to convert or continue Ratable Advances pursuant to
Section 2.2.4. The Borrower shall not request a Fixed Rate Advance if, after
giving effect to the requested Fixed Rate Advance, more than 20 separate Fixed
Rate Advances would be outstanding.
2.5.6. Rate after Maturity. Except as provided in the next sentence,
any Advance not paid at maturity, whether by acceleration or otherwise, shall
bear interest until paid in full at a rate per annum equal to the Alternate
27
Base Rate plus 1% per annum. In the case of a Fixed Rate Advance the maturity
of which is accelerated, such Fixed Rate Advance shall bear interest for the
remainder of the applicable Interest Period, at the higher of (a) the rate
otherwise applicable to such Interest Period plus 1% per annum, or (b) the
Alternate Base Rate plus 1% per annum.
2.5.7. Interest Payment Dates; Interest Basis. Interest accrued on each
Advance shall be payable on the last day of its applicable Interest Period and
on any date on which such Advance is prepaid, whether due to acceleration or
otherwise. Interest accrued on each Fixed Rate Advance having an Interest
Period longer than three months shall also be payable on the last day of each
three-month interval during such Interest Period. Interest on all Floating
Rate Advances calculated on the basis of the Base Rate shall be calculated on
the basis of a year of 365 or 366 days, as the case may be, and the actual
number of days elapsed. Interest on all other Advances shall be calculated for
the actual number of days elapsed on the basis of a year of 360 days and the
actual number of days elapsed, which results in a higher yield to the payee
thereof than a method based on a year of 365 or 366 days. Interest shall be
payable for the day an Advance is made but not for the day of any payment on
the amount paid if payment is received prior to 11:00 a.m. (San Francisco time)
at the place of payment. If any payment of principal or interest on an Advance
shall become due on a day which is not a Business Day, such payment shall be
made on the next succeeding Business Day and, in the case of a principal
payment, such extension of time shall be included in computing interest in
connection with such payment.
2.5.8. Method of Payment. All payments to be made by the Borrower shall
be made without condition or deduction for any counterclaim, defense,
recoupment or setoff, without prejudice to Borrower's right to later assert any
counterclaim, defense, recoupment or setoff. Except as specifically provided
in this Agreement and in the following sentence, all payments by the Borrower
hereunder shall be made to the Administrative Agent, for the account of the
respective Banks to which such payment is owed, at the Administrative Agent's
Office in Dollars and in immediately available funds not later than 11:00 a.m.
(San Francisco time) on the date when due and shall be applied (i) first,
ratably among the Applicable Banks with respect to any principal and interest
due in connection with Ratable Advances, (ii) second, after all amounts
described in clause (i) have been satisfied, ratably among those Applicable
Banks for whom any payment of principal and interest is due in connection with
any Competitive Bid Advances, and (iii) third, after all amounts described in
clauses (i) and (ii) have been satisfied, ratably to any other Obligations then
due to the Applicable Banks. If such payment is received by the Administrative
Agent by 11:00 a.m. (San Francisco time) such delivery to the Banks shall be
made on the same day and if received thereafter shall be made on the next
succeeding Business Day. The Administrative Agent is hereby authorized to
charge the account of the Borrower held at Bank of America for each payment of
principal, interest and fees owing by the Borrower as it becomes due hereunder.
2.5.9. Notes; Telephonic Notices; Designation of Borrower. Each Bank is
hereby authorized to record on the schedule attached to each of its Notes, or
otherwise record in accordance with its usual practice, the date and amount of
each of its Loans of the type evidenced by such Note; provided, however, that
any failure to so record shall not affect the Borrower's Obligations under this
Agreement or any Note. The Borrower hereby authorizes the Banks and the
Administrative Agent to extend, continue and convert Advances, effect Rate
Option selections and submit Competitive Bid Quotes based on telephonic notices
28
made by any person or persons the Administrative Agent or any Bank in good
faith believes to be an authorized officer or an officer, employee or agent of
the Borrower designated by an authorized officer. The Borrower agrees to
deliver promptly to the Administrative Agent a written or telecopy confirmation
of each telephonic notice signed by an authorized officer. If the written or
telecopy confirmation differs in any material respect from the action taken by
the Administrative Agent and the Banks, the records of the Administrative Agent
and the Banks shall govern absent manifest error.
2.5.10. Notification of Advances, Interest Rates and Prepayments. The
Administrative Agent will notify each Applicable Bank of the contents of each
Ratable Borrowing Notice, Notice of Conversion/Continuation (or automatic
conversion pursuant to subsection 2.2.4(c)), and payment notice received by it
hereunder promptly and in any event (provided such items were timely received
by the Administrative Agent from the Borrower) before the close of business on
the same Business Day of receipt thereof (or, in the case of borrowing notices
with respect to Floating Rate Advances, within one hour of receipt thereof).
The Administrative Agent will notify each Applicable Bank of the interest rate
applicable to each Fixed Rate Advance promptly upon determination of such
interest rate and will give each Applicable Bank prompt notice of each change
in the Alternate Base Rate in respect of any outstanding Floating Rate Advance.
2.5.11. Non-Receipt of Funds by the Administrative Agent. Unless the
Borrower or a Bank, as the case may be, notifies the Administrative Agent prior
to the date on which it is scheduled to make payment to the Administrative
Agent of (i) in the case of a Bank, the proceeds of a Loan, or (ii) in the case
of the Borrower, a payment of principal, interest or fees to the Administrative
Agent for the account of the Applicable Banks, that it does not intend to make
such payment, the Administrative Agent may assume that such payment has been
made. The Administrative Agent may, but shall not be obligated to, make the
amount of such payment available to the intended recipient in reliance upon
such assumption. If such Bank or the Borrower, as the case may be, has not in
fact made such payment to the Administrative Agent, the recipient of such
payment shall, on demand by the Administrative Agent, repay to the
Administrative Agent the amount so made available together with interest
thereon in respect of each day during the period commencing on the date such
amount was so made available by the Administrative Agent until the date the
Administrative Agent recovers such amount at a rate per annum equal to (x) in
the case of payment by a Bank, the Federal Funds Rate for such day, or (y) in
the case of payment by the Borrower, the interest rate applicable to the
relevant Loan.
2.5.12. Cancellation. The Borrower may, at any time after the Effective
Date, upon not less than five Business Days' prior written notice to the
Administrative Agent, terminate or permanently reduce the Facility A
Commitments and/or the Facility B Commitments in whole, or in a minimum
aggregate amount of $10,000,000 (and in integral multiples of $1,000,000 in
excess thereof); unless, after giving effect thereto and to any prepayments of
Loans made on the effective date thereof, (a) with respect to any termination
or permanent reduction of the Facility A Commitments, the then-outstanding
principal amount of the Facility A Loans would exceed the amount of the
29
combined Facility A Commitments then in effect, or (b) with respect to any
termination or permanent reduction of the Facility B Commitments, the then-
outstanding principal amount of the Facility B Loans would exceed the amount of
the combined Facility B Commitments then in effect. Any reduction of the
Facility A Commitments shall be applied to each Facility A Bank according to
its Facility A Pro Rata Share, and any reduction of the Facility B Commitments
shall be applied to each Facility B Bank according to its Facility B Pro Rata
Share. All accrued commitment fees to, but not including, the effective date
of any reduction or termination of Commitments shall be paid on the effective
date of such reduction or termination. Once the Facility A Commitments or the
Facility B Commitments are reduced in accordance with this Section, they may
not be increased.
2.5.13. Lending Offices. Each Bank may from time to time, by written or
telecopy notice to the Administrative Agent and the Borrower, change its
Lending Office and for whose account Loan payments are to be made.
2.6. Extension of Facility A Termination Date.
(a) The Borrower may, from time to time, by written notice to
the Administrative Agent (each such notice being a "Facility A Extension
Notice") given no later than 30 days but not sooner than 60 days prior to
November 17 of each year beginning 2001 (each such November 17 called an
"Extension Date"), extend the Facility A Termination Date to a date one year
after the then applicable Facility A Termination Date. Such extension shall
not be effective with respect to a Facility A Bank which, by a notice (a
"Facility A Withdrawal Notice") to the Borrower and the Administrative Agent
given within 30 days following the Administrative Agent's receipt of such
Facility A Extension Notice, declines to consent to such extension or which has
failed to respond to the Borrower and the Administrative Agent within said
30-day period (each Facility A Bank giving a Facility A Withdrawal Notice or
failing to respond in a timely manner being called a "Facility A Withdrawing
Bank" and each Facility A Bank other than a Facility A Withdrawing Bank being a
"Facility A Continuing Bank"). Such extension shall be effective only if the
aggregate of the Facility A Commitments of the Facility A Continuing Banks is
66-2/3% or more of the Facility A Commitments in effect on the date of this
Agreement.
(b) If Facility A Banks with less than 66-2/3% of the Facility A
Commitments elect to be Facility A Continuing Banks, the Facility A Termination
Date shall not be extended and the Facility A Banks (including Facility A
Withdrawing Banks) shall be obligated to make Facility A Loans to the Borrower
in accordance with the original terms of this Agreement (including any
previously approved extensions). If Facility A Banks with 66-2/3% or more, but
less than 100%, of the Facility A Commitments elect to be Facility A Continuing
Banks, the Borrower may, at any time prior to the then applicable Extension
Date, invite the Facility A Continuing Banks to increase their Facility A
Commitments and/or invite other banks to become party to the Agreement as
Facility A Banks in accordance with Section 13.3, in an aggregate amount not to
exceed the Facility A Commitments of the Facility A Withdrawing Banks. If the
Borrower fails to receive new or increased Facility A Commitments equal to the
Facility A Commitments of the Facility A Withdrawing Banks prior to the then
applicable Extension Date, the Borrower may, at its option, elect to cancel the
requested extension of the Facility A Termination Date and the Facility A
Banks, including the Facility A Withdrawing Banks, shall continue to be
obligated to make Facility A Loans in accordance with the original terms of
this Agreement (including any previously approved extensions). If the Borrower
30
receives the consent of Facility A Banks having 66-2/3% or more, but less than
100%, of the Facility A Commitments, and the Borrower elects not to cancel the
requested extension, the Facility A Termination Date shall be extended by one
year, provided, however, that the Facility A Commitment of each Facility A
Withdrawing Bank shall terminate on the then applicable Facility A Termination
Date without giving any effect to such extension. In such event, the Borrower
shall pay in full all Facility A Loans outstanding from each Facility A
Withdrawing Bank on such Facility A Termination Date, provided, however, that
so long as no Default or Unmatured Default exists, the Borrower may, at any
time prior to such Facility A Termination Date and by not less than five
Business Days' prior written notice to the Administrative Agent and any
Facility A Withdrawing Bank, cancel such Facility A Bank's Facility A
Commitment, and thereupon prepay all Facility A Loans made by such Facility A
Bank, together with interest and fees accrued to the date of such prepayment
and breakage costs due under Section 3.4, if any, whereupon such Facility A
Bank shall cease to be obliged to make further Facility A Loans hereunder, its
Facility A Commitment shall be reduced to zero and it shall be released from
all unaccrued obligations with respect to Facility A Commitments under this
Agreement.
(c) The Administrative Agent shall notify each Facility A Bank of
its receipt of a Facility A Extension Notice within two Business Days after the
Administrative Agent's receipt thereof. The Borrower may deliver only one
Facility A Extension Notice per year.
(d) Each Facility A Withdrawing Bank shall be obliged, at the
request of the Borrower and subject to the Facility A Withdrawing Bank
receiving payment in full of all amounts owing to it under this Agreement prior
to completion of an assignment, to assign, without recourse or warranty and by
an assignment agreement in substantially the form of Exhibit J attached hereto,
and in accordance with Section 13.3, all of its rights and obligations
hereunder to another financial institution which is an Eligible Assignee
nominated by the Borrower and willing to participate in the facility in the
place of such Facility A Withdrawing Bank; provided that such transferee
satisfies all the requirements of this Agreement.
(e) If the Facility A Termination Date shall have been extended
in respect of Facility A Continuing Banks in accordance with this Section 2.6,
any Ratable Borrowing Notice or Notice of Conversion/Continuation with respect
to any Facility A Loans or Facility A Advances specifying a Borrowing Date or
Conversion/Continuation Date occurring after the Facility A Termination Date
applicable to a Facility A Withdrawing Bank or requesting an Interest Period
extending beyond such date (i) shall have no effect in respect of such
Facility A Withdrawing Bank, and (ii) shall not specify a requested aggregate
principal amount exceeding, when combined with all then outstanding Facility A
Advances, the Facility A Commitments of the Facility A Continuing Banks.
(f) If the Facility A Termination Date shall have been extended
in respect of Facility A Continuing Banks in accordance with this Section 2.6,
all references herein to the "Facility A Termination Date" shall, with respect
to all parties hereto other than Facility A Withdrawing Banks, refer to the
Facility A Termination Date as so extended.
31
2.7. Extension of Facility B Termination Date
(a) The Borrower may, from time to time, by written notice to
the Administrative Agent (each such notice being a "Facility B Extension
Notice") given no later than 30 days but not sooner than 60 days prior to the
then applicable Facility B Termination Date, beginning November 16, 2001,
extend the Facility B Termination Date to a date 364 days after the then
applicable Facility B Termination Date. Such extension shall not be effective
with respect to a Facility B Bank which, by a notice (a "Facility B Withdrawal
Notice") to the Borrower and the Administrative Agent given within 30 days
following the Administrative Agent's receipt of such Facility B Extension
Notice, declines to consent to such extension or which has failed to respond to
the Borrower and the Administrative Agent within said 30-day period (each
Facility B Bank giving a Facility B Withdrawal Notice or failing to respond in
a timely manner being called a "Facility B Withdrawing Bank" and each
Facility B Bank other than a Facility B Withdrawing Bank being a "Facility B
Continuing Bank"). Such extension shall be effective only if the aggregate of
the Facility B Commitments of the Facility B Continuing Banks is 66-2/3% or
more of the Facility B Commitments in effect on the date of this Agreement.
(b) If Facility B Banks with less than 66-2/3% of the Facility B
Commitments elect to be Facility B Continuing Banks, the Facility B Termination
Date shall not be extended and the Facility B Banks (including Facility B
Withdrawing Banks) shall be obligated to make Facility B Loans to the Borrower
in accordance with the original terms of this Agreement (including any
previously approved extensions and Advances pursuant to Section 2.8). If
Facility B Banks with 66-2/3% or more, but less than 100%, of the Facility B
Commitments elect to be Facility B Continuing Banks, the Borrower may, at any
time prior to the then applicable Facility B Termination Date, invite the
Facility B Continuing Banks to increase their Facility B Commitments and/or
invite other banks to become party to the Agreement as Facility B Banks in
accordance with Section 13.3, in an aggregate amount not to exceed the
Facility B Commitments of the Facility B Withdrawing Banks. If the Borrower
fails to receive new or increased Facility B Commitments equal to the
Facility B Commitments of the Facility B Withdrawing Banks prior to the then
applicable Facility B Termination Date, the Borrower may, at its option, elect
to cancel the requested extension of the Facility B Termination Date and the
Facility B Banks, including the Facility B Withdrawing Banks, shall continue to
be obligated to make Facility B Loans in accordance with the original terms of
this Agreement (including any previously approved extensions and Advances
pursuant to Section 2.8). If the Borrower receives the consent of Facility B
Banks having 66-2/3% or more, but less than 100%, of the Facility B
Commitments, and the Borrower elects not to cancel the requested extension, the
Facility B Termination Date shall be extended by 364 days, provided, however,
that the Facility B Commitment of each Facility B Withdrawing Bank shall
terminate on the then applicable Facility B Termination Date without giving any
effect to such extension. In such event, the Borrower shall pay in full all
Facility B Loans outstanding from each Facility B Withdrawing Bank on such
Facility B Termination Date, provided, however, that so long as no Default or
Unmatured Default exists, the Borrower may, at any time prior to such
Facility B Termination Date and by not less than five Business Days' prior
written notice to the Administrative Agent and any Facility B Withdrawing Bank,
cancel such Facility B Bank's Facility B Commitment, and thereupon prepay all
Facility B Loans made by such Facility B Bank, together with interest and fees
32
accrued to the date of such prepayment and breakage costs due under Section
3.4, if any, whereupon such Facility B Bank shall cease to be obliged to make
further Facility B Loans hereunder, its Facility B Commitment shall be reduced
to zero and it shall be released from all unaccrued obligations with respect to
Facility B Commitments under this Agreement.
(c) The Administrative Agent shall notify each Facility B Bank of
its receipt of a Facility B Extension Notice within two Business Days after the
Administrative Agent's receipt thereof. The Borrower may deliver only one
Facility B Extension Notice per year.
(d) Each Facility B Withdrawing Bank shall be obliged, at the
request of the Borrower and subject to the Facility B Withdrawing Bank
receiving payment in full of all amounts owing to it under this Agreement prior
to completion of an assignment, to assign, without recourse or warranty and by
an assignment agreement in substantially the form of Exhibit J attached hereto,
and in accordance with Section 13.3, all of its rights and obligations
hereunder to another financial institution which is an Eligible Assignee
nominated by the Borrower and willing to participate in the facility in the
place of such Facility B Withdrawing Bank; provided that such transferee
satisfies all the requirements of this Agreement.
(e) If the Facility B Termination Date shall have been extended
in respect of Facility B Continuing Banks in accordance with this Section 2.7,
any Ratable Borrowing Notice or Notice of Conversion/Continuation with respect
to any Facility B Loans or Facility B Advances specifying a Borrowing Date or
Conversion/Continuation Date occurring after the Facility B Termination Date
applicable to a Facility B Withdrawing Bank or requesting an Interest Period
extending beyond such date (i) shall have no effect in respect of such
Facility B Withdrawing Bank, and (ii) shall not specify a requested aggregate
principal amount exceeding, when combined with all then outstanding Facility B
Advances, the Facility B Commitments of the Facility B Continuing Banks.
(f) If the Facility B Termination Date shall have been extended
in respect of Facility B Continuing Banks in accordance with this Section 2.7,
all references herein to the "Facility B Termination Date" shall, with respect
to all parties hereto other than Facility B Withdrawing Banks, refer to the
Facility B Termination Date as so extended.
2.8. Facility B. Term Loans.
2.8.1. Advances. In the event that the Borrower elects not to extend
the Facility B Termination Date pursuant to Section 2.7, each Facility B Bank
severally agrees on the terms and conditions set forth in this Agreement to
advance to the Borrower (upon request of the Borrower pursuant to this
Agreement) on the then applicable Facility B Termination Date an amount up to
the outstanding principal amount of the Facility B Loans made by such
Facility B Bank and outstanding as of the opening of business on such
Facility B Termination Date. The aggregate of such advances is collectively
called the "Facility B Term Loans" and shall be made by each Facility B Bank in
accordance with its Facility B Pro Rata Share. The Facility B Term Loans will
mature and are due and payable one year after such Facility B Termination Date
(the "Facility B Term Loan Maturity Date"). Amounts borrowed under this
Section 2.8 and subsequently repaid or prepaid may not be reborrowed.
33
2.8.2. Notice. The Facility B Term Loans shall be made upon the
irrevocable written notice (including notice via facsimile confirmed
immediately by a telephone call) of the Borrower in the form of a Facility B
Term Loan Borrowing Notice (which notice must be received by the Administrative
Agent not later than 8:00 a.m. (San Francisco time) not less than three
Business Days prior to the Facility B Termination Date), specifying: (A) the
amount of the Facility B Term Loans which shall be in an aggregate principal
amount not more than the aggregate principal amount of the Facility B Loans
which will be outstanding as of the opening of business on the Facility B
Termination Date; (B) the Rate Option selected for such Facility B Term Loans;
and (C) the Interest Period applicable to any Eurodollar Rate Loans included in
such notice.
2.8.3. Use of Proceeds. The proceeds of the Facility B Term Loans will
first be used to pay the principal amount of the Facility B Loans which are
outstanding at the time the Facility B Term Loans are made and then in
accordance with Section 6.2.
ARTICLE III
TAXES, CHANGE IN CIRCUMSTANCES
3.1. Taxes.
(a) Any and all payments by the Borrower to each Bank or the
Administrative Agent under this Agreement and any other Loan Document shall be
made free and clear of, and without deduction or withholding for, any Taxes.
In addition, the Borrower agrees to pay all Other Taxes.
(b) If the Borrower shall be required by law to deduct or
withhold any Taxes, Other Taxes or Further Taxes from or in respect of any sum
payable hereunder to any Bank or the Administrative Agent, then:
(i) the sum payable shall be increased as necessary so
that,
after making all required deductions and withholdings (including
deductions and withholdings applicable to additional sums payable under
this Section), such Bank or the Administrative Agent, as the case may
be, receives and retains an amount equal to the sum it would have
received and retained had no such deductions or withholdings been made;
(ii) the Borrower shall make such deductions and
withholdings;
(iii) the Borrower shall pay the full amount deducted or
withheld to the relevant taxing authority or other authority in
accordance with applicable Law; and
(iv) the Borrower shall also pay to each Bank or the
Administrative Agent for the account of such Bank, at the time interest is
paid, Further Taxes in the amount that the respective Bank specifies as
necessary to preserve the after-tax yield
34
the Bank would have received if such Taxes, Other Taxes or Further Taxes had
not been imposed.
(c) The Borrower agrees to indemnify and hold harmless each Bank
and the Administrative Agent for the full amount of (i) Taxes, (ii) Other
Taxes, and (iii) Further Taxes in the amount that the respective Bank specifies
as necessary to preserve the after-tax yield the Bank would have received if
such Taxes, Other Taxes or Further Taxes had not been imposed, and any
liability (including penalties, interest, additions to tax and expenses)
arising therefrom or with respect thereto, whether or not such Taxes, Other
Taxes or Further Taxes were correctly or legally asserted. Payment under this
indemnification shall be made within 30 days after the date the Bank or the
Administrative Agent makes written demand therefor.
(d) Within 30 days after the date of any payment by the Borrower
of Taxes, Other Taxes or Further Taxes, the Borrower shall furnish to each Bank
or the Administrative Agent the original or a certified copy of a receipt
evidencing payment thereof, or other evidence of payment satisfactory to such
Bank or the Administrative Agent.
3.2. Yield Protection. If, after the date hereof, because of the
enactment of, or any change in, any Law or any governmental or
quasi-governmental rule, regulation, policy, guideline or directive (whether or
not having the force of law), or any interpretation thereof (other than such
enactments or changes that are not effective as of August 31, 2000 but are
scheduled to become effective thereafter pursuant to such laws, rules,
regulations, policies, guidelines, directives or interpretations that are
effective as of August 31, 2000), which
(a) imposes or increases or deems applicable any reserve,
assessment, insurance charge, special deposit or similar requirement against
assets of, deposits with or for the account of, or credit extended by, any Bank
(other than reserves and assessments taken into account in determining the
interest rate applicable to Fixed Rate Advances), or
(b) imposes any other condition the result of which is to increase
the cost to any Bank of making, funding or maintaining loans or reduces any
amount receivable by any Bank in connection with loans, or requires any Bank to
make any payment calculated by reference to the amount of loans held or
interest received by it, by an amount deemed material by such Bank, or
(c) affects the amount of capital required or expected to be
maintained by any Bank or any corporation controlling any Bank and such Bank
determines the amount of capital required is increased by or based upon the
existence of this Agreement or its obligation to make Loans hereunder or of
commitments of this type,
Then, within 15 days of demand by such Bank through the Administrative Agent,
the Borrower shall pay such Bank that portion of such increased expense
incurred (including, in the case of Section 3.2(c), any reduction in the rate
of return on capital to an amount below that which it could have achieved but
for such law, rule, regulation, policy, guideline or directive and after taking
into account such Bank's policies as to capital adequacy) or reduction in an
amount received which such Bank determines is attributable to making, funding
35
and maintaining its Loans and its Commitment. Notwithstanding the foregoing,
if a Bank fails to make a claim within 90 days after it becomes, or ought
reasonably to have become, aware of any event giving rise to a claim under this
Section 3.2, then such Bank shall be entitled to make any claim under this
Section 3.2 only in respect of any amounts due under this Section 3.2 that are
attributable to the period following the 90th day preceding the day upon which
the Bank makes such claim.
3.3. Availability of Rate Options. If any Bank determines that
maintenance of any of its Fixed Rate Loans at a suitable Lending Office would
violate any applicable law, rule, regulation or directive, whether or not
having the force of law, such Bank shall so notify the Administrative Agent and
the Administrative Agent shall suspend the availability of the affected Rate
Option and require any Fixed Rate Advances outstanding under the affected Rate
Option to be repaid; or if any Bank determines that (i) deposits of a type or
maturity appropriate to match fund Fixed Rate Advances are not available, the
Administrative Agent shall suspend the availability of the affected Rate Option
with respect to any Fixed Rate Advances made after the date of any such
determination, or (ii) a Rate Option does not accurately reflect the cost of
making a Fixed Rate Advance at such Rate Option, such Bank shall so notify the
Administrative Agent and then the Administrative Agent shall suspend the
availability of the affected Rate Option with respect to any Fixed Rate
Advances made after the date of any such determination.
3.4. Funding Indemnification. If any payment of a Fixed Rate Advance
occurs on a date which is not the last day of the applicable Interest Period,
whether because of acceleration, prepayment, automatic conversion or otherwise,
or the Borrower requests a Fixed Rate Advance, or the continuation or
conversion of an Advance as or to a Fixed Rate Advance, and the Borrower does
not borrow, continue or convert such Fixed Rate Advance on the date specified
by the Borrower except by reason of default by the Applicable Banks, the
Borrower will indemnify each Applicable Bank for any loss or cost incurred by
it resulting therefrom, including any loss or cost in liquidating or employing
deposits acquired to fund or maintain the Fixed Rate Advance.
3.5. Regulation D Compensation. Each Applicable Bank may through the
Administrative Agent request the Borrower to pay and upon such request the
Borrower shall pay, contemporaneously with each payment of interest on the
Borrower's Eurodollar Ratable Loans, additional interest on such Loans at a
rate per annum determined by such Bank up to but not exceeding the excess of
(i) (A) the Eurodollar Base Rate divided by (B) one minus the Reserve
Requirement with respect to Eurodollar liabilities over (ii) the Eurodollar
Base Rate. Any Applicable Bank wishing to require payment of such additional
interest (x) shall so notify the Borrower and the Administrative Agent, in
which case such additional interest on the Eurodollar Ratable Loans of such
Bank shall be payable to such Bank at the place indicated in such notice with
respect to each Interest Period commencing at least five Business Days after
the giving of such notice, and (y) shall notify the Borrower at least five
Business Days prior to each date on which interest is payable on the Eurodollar
Ratable Loans of the amount then due it under this Section.
2.6. Bank Statements; Survival of Indemnity. To the extent reasonably
possible, each Bank shall designate an alternate Lending Office with respect to
its Fixed Rate Loans to reduce any liability of the Borrower to such Bank under
36
Section 3.1 or 3.2 or to avoid the unavailability of a Rate Option under
Section 3.3, so long as such designation is not prohibited by applicable legal
and regulatory restrictions and not disadvantageous to such Bank as determined
in its sole discretion. Each Bank shall deliver to the Borrower through the
Administrative Agent a written statement of such Bank as to the amount due, if
any, under Sections 3.1, 3.2 or 3.4, simultaneously with making a request for
payment under said Sections 3.1, 3.2 or 3.4. Such written statement shall set
forth in reasonable detail the calculations upon which such Bank determined
such amount and shall be final, conclusive and binding on the Borrower in the
absence of manifest error. Determination of amounts payable under such
Sections in connection with a Fixed Rate Loan shall be calculated as though
each Bank funded its Fixed Rate Loan through the purchase of a deposit of the
type and maturity corresponding to the deposit used as a reference in
determining the Fixed Rate for such Loan, whether in fact that is the case or
not. Unless otherwise provided herein, the amount specified in the written
statement shall be payable on demand after receipt by the Borrower of the
written statement. The Obligations of the Borrower under Sections 3.1, 3.2 and
3.4 shall survive payment of the Obligations and termination of this Agreement.
3.7. Removal of Banks. If (i) the obligation of any Bank to make or
continue any Loans as, or convert Loans to, Eurodollar Ratable Loans has been
suspended pursuant to Section 3.3, or (ii) any Bank has demanded compensation
under Section 3.1 or 3.2, the Borrower may elect to terminate this Agreement as
to such Bank, provided that (i) the Borrower notifies such Bank through the
Administrative Agent of such election at least five Business Days before any
date fixed for a borrowing, (ii) the Borrower repays all of such Bank's
outstanding Obligations at the end of the respective Interest Periods
applicable thereto and (iii) no Default or Unmatured Default exists. Upon
receipt by the Administrative Agent of such notice, the Commitment of such Bank
shall terminate.
ARTICLE IV
CONDITIONS PRECEDENT
4.1. Closing. Concurrently with the execution of this Agreement and
prior to making the initial Advance, the Borrower will deliver to the
Administrative Agent, with sufficient copies for the Banks, the following
documents, in form and substance satisfactory to the Administrative Agent and
the Banks:
(a) Executed copies of this Agreement
(b) Competitive Facility A Bid Notes, Competitive Facility B Bid
Notes, and Ratable Notes payable to the order of each of the Applicable Banks.
(c) Copies, certified as of a date not more than one week prior to
the Effective Date by the Secretary or Assistant Secretary (or comparable
officer) of the Borrower, of its Board of Directors' (or Executive Committee's)
resolutions authorizing execution of the Loan Documents.
(d) An incumbency certificate, executed as of a date not more than
one week prior to the Effective Date by the Secretary or Assistant Secretary
37
(or comparable officer) of the Borrower which shall identify by name and title
and bear the signature of the officers of the Borrower authorized to sign the
Loan Documents and to make borrowings hereunder, upon which certificate the
Administrative Agent and the Banks shall be entitled to rely until informed of
any change in writing by the Borrower.
(e) A written opinion of the Borrower's in-house counsel,
addressed to the Administrative Agent and the Banks in substantially the form
of Exhibit F hereto (which opinion the Borrower hereby expressly instruct such
counsel to prepare and deliver to the Administrative Agent and the Banks for
their benefit).
(f) One copy of the Articles of Incorporation (or comparable
document) of the Borrower, together with all amendments, certified as of a
recent date by the appropriate governmental officer in the State of Oregon.
(g) A copy, certified by the Secretary or Assistant Secretary (or
comparable officer) of the Borrower, of its Bylaws.
(h) A certificate, signed by the chief financial officer of the
Borrower, stating that on the Effective Date no Default or Unmatured Default
has occurred and is continuing.
(i) Evidence satisfactory to the Administrative Agent that each of
the Existing Credit Agreements has been terminated and no loans or other
amounts are outstanding thereunder.
(j) Such other documents as any Bank or its counsel may have
reasonably requested prior to execution of the Agreement.
(k) Any fees required to be paid on or before the Effective Date
shall have been paid.
4.2. Each Advance. The Applicable Banks shall not be required to make
any Advance, unless on the applicable Borrowing Date:
(a) There exists no Default or Unmatured Default.
(b) The representations and warranties contained in Article V are
true and correct as of such Borrowing Date except for changes in the Schedules
hereto reflecting transactions permitted by this Agreement.
Each Ratable Borrowing Notice or Competitive Bid Quote Request with
respect to each such Advance shall constitute a representation and warranty by
the Borrower that the conditions contained in Sections 4.2(a) and (b) have been
satisfied.
38
ARTICLE V
REPRESENTATIONS AND WARRANTIES
The Borrower represents and warrants to the Banks that:
5.1. Corporate Existence. The Borrower is a corporation duly
incorporated and validly existing under the laws of the State of Oregon and is
duly qualified and has all requisite authority to conduct its business in each
jurisdiction in which its business is conducted.
5.2. Authorization and Validity. The Borrower has the corporate power
and authority and legal right to execute and deliver the Loan Documents and to
perform its Obligations thereunder. The execution and delivery by the Borrower
of the Loan Documents and the performance of its Obligations thereunder have
been duly authorized by proper corporate proceedings, and the Loan Documents
constitute legal, valid and binding Obligations of the Borrower enforceable
against the Borrower in accordance with their terms, except as enforceability
may be limited by bankruptcy, insolvency or similar laws affecting the
enforcement of creditors' rights generally.
5.3. No Conflict; Government Consent. Neither the execution and
delivery by the Borrower of the Loan Documents, nor the consummation of the
transactions therein contemplated, nor compliance with the provisions thereof
will violate any Law, order, writ, judgment, injunction, decree or award
binding on the Borrower or any Subsidiary or the Borrower's or any Subsidiary's
articles of incorporation or bylaws or the provisions of any indenture,
instrument or agreement to which the Borrower or any Subsidiary is a party or
is subject, or by which it, or its property, is bound, or conflict with or
constitute a default thereunder, or result in the creation or imposition of any
Lien in, of or on the property of the Borrower or a Subsidiary pursuant to the
terms of any such indenture, instrument or agreement. No order, consent,
approval, license, authorization, or validation of, or filing, recording or
registration with, or exemption by, any Governmental Authority, or any
subdivision thereof, is required to authorize, or is required in connection
with the execution, delivery and performance of, or the legality, validity,
binding effect or enforceability of, any of the Loan Documents.
5.4. Financial Statements. The August 31, 2000 consolidated financial
statements of the Borrower and the Subsidiaries heretofore delivered to the
Banks were prepared in accordance with generally accepted accounting principles
in effect on the date such statements were prepared and fairly present the
consolidated financial condition and operations of the Borrower and the
Subsidiaries at such date and the consolidated results of their operations for
the period then ended.
5.5. Material Adverse Change. Since May 31, 2000, there has been no
change in the business, properties, condition (financial or otherwise) or
results of operations of the Borrower and its Subsidiaries which could have a
Material Adverse Effect.
5.6. Taxes. The Borrower and the Subsidiaries have filed all United
States federal tax returns and all other United States and foreign tax returns
which are required to be filed and have paid all taxes due pursuant to said
39
returns or pursuant to any assessment received by the Borrower or any
Subsidiary, except such taxes, if any, as are being contested in good faith and
as to which adequate reserves have been provided. The United States income tax
returns of the Borrower and the Subsidiaries have been audited by the Internal
Revenue Service through the fiscal year ended May 31, 1994. No tax liens have
been filed and no claims are being asserted with respect to any such taxes.
The charges, accruals and reserves on the books of the Borrower and the
Subsidiaries in respect of any taxes or other governmental charges are
adequate.
5.7. Litigation and Contigent Obligations. There is no litigation,
arbitration, governmental investigation, proceeding or inquiry pending or, to
the knowledge of any of the Borrower's officers, threatened against or
affecting the Borrower or any Subsidiary which might materially adversely
affect the business, properties, financial condition prospects, or results of
operations of the Borrower or the ability of the Borrower to perform its
Obligations under the Loan Documents. The Borrower has no material contingent
obligations not provided for or disclosed in the financial statements referred
to in Section 5.4.
5.8. Subsidiaries. Schedule 1 hereto contains an accurate list of all of
the presently existing Subsidiaries of the Borrower, setting forth their
respective jurisdictions of incorporation and the percentage of their
respective capital stock owned by the Borrower or other Subsidiaries as of the
Effective Date. All of the issued and outstanding shares of capital stock of
such Subsidiaries have been duly authorized and issued and are fully paid and
non-assessable. Each Subsidiary is duly organized or formed and validly
existing under the laws of its jurisdiction of incorporation or organization
and is duly qualified and has all requisite power and authority to conduct its
business in each jurisdiction in which its business is conducted.
5.9. ERISA. There are no material Unfunded Liabilities. Each Plan
complies in all material respects with all applicable requirements of Law and
regulations, no Reportable Event has occurred with respect to any Plan, neither
the Borrower nor any other members of the Controlled Group has withdrawn from
any Plan or initiated steps to do so, and no steps have been taken to terminate
any Plan.
5.10. Accuracy of Information. No information, exhibit or report
furnished by the Borrower or any Subsidiary to the Administrative Agent or to
any Bank in connection with the negotiation of, or compliance with, the Loan
Documents contained any material misstatement of fact or omitted to state a
material fact or any fact necessary to make the statements contained therein
not misleading.
5.11. Regulation U. Neither the Borrower nor any Subsidiary owns any
margin stock (as defined in Regulation U).
5.12. Material Agreements. Neither the Borrower nor any Subsidiary is a
party to any agreement or instrument or subject to any charter or other
corporate restriction which might have a Material Adverse Effect. Neither the
Borrower nor any Subsidiary is in default in the performance, observance or
fulfillment of any of the obligations, covenants or conditions contained in (i)
any agreement to which it is a party, which default might have a Material
Adverse Effect or (ii) any agreement or instrument evidencing or governing
Indebtedness.
40
5.13. Compliance With Laws. The Borrower and its Subsidiaries have
complied with all applicable statutes, rules, regulations, orders and
restrictions of any domestic or foreign government or any instrumentality or
agency thereof, having jurisdiction over the conduct of their respective
businesses or the ownership of their respective properties where failure to
comply might have a Material Adverse Effect.
5.14. Ownership of Properties. Except as set forth on Schedule 2 hereto,
on the date of this Agreement, the Borrower and its Subsidiaries will have good
title, free of all Liens other than those permitted by Section 6.15, to all of
the properties and assets reflected in the financial statements as owned by
them.
5.15. Post-Retirement Benefits. The amount of the present value of the
expected cost of post-retirement medical and insurance benefits payable by the
Borrower and its Subsidiaries to their employees and former employees, as
estimated by the Borrower in accordance with reasonable procedures and
assumptions, is not material to the financial condition of the Borrower.
5.16. Environmental and Safety and Health Matters. To the best of the
knowledge of the Borrower, the Borrower and each Subsidiary are in compliance
with all Environmental Laws and Occupational and Health Laws where failure to
comply would reasonably be expected to have a Material Adverse Effect on the
ability of the Borrower to perform its obligations hereunder. Neither the
Borrower nor any Subsidiary has received notice of any claims that any of them
is not in compliance in all material respects with the Environmental Laws where
failure to comply would reasonably be expected to have a Material Adverse
Effect on the ability of the Borrower to perform its Obligations.
ARTICLE VI
COVENANTS
During the term of this Agreement, unless the Majority Facility A Banks
and the Majority Facility B Banks (if the Facility B Commitments are in effect
or any Facility B Loans are outstanding) shall otherwise consent in writing:
6.1. Financial Reporting. The Borrower will maintain, for itself and
each Material Subsidiary, a system of accounting established and administered
in accordance with generally accepted accounting principles, and furnish to the
Administrative Agent with sufficient copies for each Bank:
(a) Within 120 days after the close of each of its fiscal years,
an unqualified audit report certified by independent certified public
accountants, acceptable to the Banks, prepared in accordance with generally
accepted accounting principles on a consolidated basis for itself and the
Subsidiaries, including balance sheets as of the end of such period, related
profit and loss and reconciliation of surplus statements, and a statement of
cash flows.
(b) Within 60 days after the close of each of the first three
quarterly periods of each of its fiscal years, for itself and the
Subsidiaries, a consolidated unaudited balance sheet as at the close of such
period, and a
41
consolidated profit and loss statement and a consolidated statement of cash
flows for the period from the beginning of such fiscal year to the end of such
quarter, all certified by its chief financial officer.
(c) Together with the financial statements required hereunder, a
compliance certificate in substantially the form of Exhibit I hereto signed by
its chief financial officer showing the calculations necessary to determine
compliance with this Agreement and stating that no Default or Unmatured Default
exists or, if any Default or Unmatured Default exists, stating the nature and
status thereof.
(d) Promptly upon the furnishing thereof to the shareholders of
the Borrower, copies of all financial statements, reports and proxy statements
so furnished.
(e) Promptly upon the filing thereof, copies of all S-1's, 10-Ks
and 10-Qs (and any substitute which may hereafter be required) which the
Borrower or any Material Subsidiary files with the Securities and Exchange
Commission.
(f) Such other information (including non-financial information)
as the Administrative Agent or any Bank may from time to time reasonably
request.
6.2. Use of Proceeds. The Borrower will, and the Borrower will cause
each Subsidiary to, use the proceeds of the Advances for working capital
purposes and general corporate purposes; provided that the proceeds of the
Advances shall not be used for the direct financing of an Unfriendly
Acquisition, a bid to make an Unfriendly Acquisition or any steps preliminary
to an Unfriendly Acquisition or a bid to make an Unfriendly Acquisition. The
Borrower will not, nor will the Borrower permit any Subsidiary to, use any of
the proceeds of the Loans to purchase or carry any "margin stock" (as defined
in Regulations U and X) or to extend credit to any person to purchase or carry
any margin stock, or extend credit to any person for any of the aforesaid
purposes.
6.3. Notice of Default. The Borrower will, and will cause each
Subsidiary to, give prompt notice in writing to the Administrative Agent and
Banks of (i) the occurrence of any Default or Unmatured Default, (ii) any
other development, financial, legal or otherwise, which the Borrower
reasonably expects will have a Material Adverse Effect or would materially
adversely affect the ability of the Borrower to repay the Obligations, and
(iii) receipt of any notice that the operations of the Borrower or any
Subsidiary are not in compliance with requirements of any applicable
Environmental Law or any Occupational Safety and Health Law where failure to
comply would reasonably be expected to have a Material Adverse Effect on the
ability of the Borrower to perform its Obligations hereunder, or receipt of
notice that any properties or assets of the Borrower or any Subsidiary are
subject to an Environmental Lien securing obligations in excess of
$20,000,000. As used herein, "Environmental Lien" means a Lien in favor of any
Governmental Authority for (i) any liability under any Environmental Law, or
(ii) damages arising from or costs incurred by such Governmental Authority in
response to a spillage, disposal or release into the environment of any
hazardous or toxic substance.
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6.4. Preservation of Existence; Conduct of Business. The Borrower
will, and will cause each Subsidiary to, do all things necessary to remain
duly incorporated and validly existing as a corporation in its jurisdiction of
incorporation and maintain all requisite authority to conduct its business in
each jurisdiction in which its business is conducted; provided that the
Borrower may liquidate or dissolve any Subsidiary into the Borrower or any
other Subsidiary, provided, however, that a Material Subsidiary may not
liquidate or dissolve into a Subsidiary that is not a Material Subsidiary.
The Borrower will not, and will not permit any Subsidiary to, engage in any
material line of business substantially different from those lines of business
carried on by the Borrower and its Subsidiaries on the date hereof or such
other lines of business as are reasonably related thereto.
6.5 Taxes. The Borrower will, and will cause each Subsidiary to, pay
when due all taxes, assessments and governmental charges and levies upon it or
its income, profits or property, except those which are being contested in
good faith by appropriate proceedings and with respect to which adequate
reserves have been set aside.
6.6 Insurance. The Borrower will, and will cause each Subsidiary to,
maintain with financially sound and reputable insurance companies insurance,
or a program of self-insurance, on all their property in such amounts and
covering such risks as is consistent with sound business practice, and the
Borrower will furnish to the Administrative Agent upon any Bank's request
full information as to the insurance carried.
6.7. Compliance with Laws. The Borrower will, and will cause each
Subsidiary to, comply with all laws, rules, regulations, orders, writs,
judgments, injunctions, decrees or awards to which it may be subject.
6.8. Maintenance of Properties; Trademarks and Franchises. The
Borrower will, and will cause each Subsidiary to, do all things necessary to
maintain, preserve, protect and keep its properties in good repair, working
order and condition, and make all necessary and proper repairs, renewals and
replacements so that its business carried on in connection therewith may be
properly conducted at all times. The Borrower and each Subsidiary own, are
licensed or otherwise have the lawful right to use, and will continue to own,
be licensed or have the lawful right to use, all permits and other
governmental approvals, patents, trademarks, trade names, copyrights,
technology, know-how and processes used in or necessary for the conduct of
their businesses as currently conducted. The use of such permits and other
governmental approvals, patents, trademarks, trade names, copyrights,
technology, know-how and processes by the Borrower and each of its
Subsidiaries does not infringe on the rights of any Person.
6.9. Inspection. Subject to Section 10.12 hereof, the Borrower will,
and will cause each Subsidiary to, permit the Administrative Agent or any
Bank, by their respective representatives and agents, to inspect any of the
properties, corporate books and financial records of the Borrower and each
Subsidiary, to examine and make copies of the books of accounts and other
financial records of the Borrower and each Subsidiary, and to discuss the
affairs, finances and accounts of the Borrower and each Subsidiary with, and
to be advised as to the same by, their respective officers at such reasonable
times and intervals as the Administrative Agent or any Bank may designate.
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6.10. Dividends. The Borrower will not, nor will it permit any
Subsidiary to, declare or pay any dividends on its capital stock (other than
dividends payable in its own capital stock) or redeem, repurchase or otherwise
acquire or retire any of its capital stock at any time outstanding, if, after
giving effect thereto, the Borrower or any Subsidiary is in violation of any
of the provisions hereof.
6.11. Merger. The Borrower will not, nor will it permit any Material
Subsidiary to, merge or consolidate with or into any other Person, except that
(a) a Material Subsidiary may merge or consolidate with the Borrower or
another Material Subsidiary, provided, that in connection with any merger or
consolidation involving the Borrower, the Borrower is the surviving entity,
and (b) the Borrower or a Material Subsidiary may merge or consolidate with
any other Person to effect an Acquisition permitted by Section 6.14, provided,
that the Borrower or such Material Subsidiary, as applicable, is the surviving
entity.
6.12. Sale of Assets. The Borrower will not, nor will it permit any
Subsidiary to, lease, sell or otherwise dispose of all or any of its property,
assets or business to any other Person except (i) sales of inventory in the
ordinary course of business, and (ii) any other disposals of assets (including
sale and leasebacks but excluding the sale and leaseback of the Borrower's
headquarters in Beaverton, Oregon) so long as the aggregate book value of the
assets so disposed by the Borrower and its Subsidiaries in any period of
twelve consecutive months, commencing on or after the date hereof, does not
exceed 20% of the aggregate book value of the assets of the Borrower and its
Subsidiaries, taken as a whole ("Substantial Portion"), as of the end of the
fiscal quarter immediately preceding the date of calculation.
6.13. Sale and Leaseback. The Borrower will not, nor will it permit
any Subsidiary to, sell or transfer any property in order to concurrently or
subsequently lease as lessee such or similar property except with respect to
sales of property or sale and leaseback transactions which would be permitted
by Section 6.12.
6.14. Acquisitions. The Borrower will not, nor will it permit any
Subsidiary to, make any Acquisition if the Acquisition is of a Person engaged
in businesses not permitted by Section 6.4.
6.15 Liens. The Borrower will not, nor will it permit any Subsidiary
to, create, incur, or suffer to exist any Lien in, of or on the property of the
Borrower or any Subsidiary, except:
(a) Liens for taxes, assessments or governmental charges or levies
on its property if the same shall not at the time be delinquent or thereafter
can be paid without penalty, or are being contested in good faith and by
appropriate proceedings.
(b) Liens imposed by law, such as carriers', warehousemen's and
mechanics' liens and other similar liens arising in the ordinary course of
business which secure payment of obligations not more than 30 days past due.
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(c) Liens arising out of pledges or deposits under worker's
compensation laws, unemployment insurance, old age pensions, or other social
security or retirement benefits, or similar legislation.
(d) Utility easements, building restrictions and such other
encumbrances or charges against real property as are of a nature generally
existing with respect to properties of a similar character and which do not in
any material way affect the marketability of the same or interfere with the
use thereof in the business of the Borrower or the Subsidiaries.
(e) Liens existing on the date hereof and described in Schedule 2
hereto.
(f) Liens incurred in connection with the purchase by the
Borrower or a Subsidiary of tangible assets (excluding inventory) provided the
Indebtedness secured thereby does not exceed the purchase price of such asset,
plus any related interest and fees and the Lien attaches only to the asset so
purchased.
(g) Liens incurred in connection with the acquisition of real
estate and construction of buildings for or on behalf of the Borrower or a
Subsidiary provided that:
(i) the Indebtedness secured by such Lien does not exceed
the cost of such construction, plus any related interest and fees, and
(ii) the aggregate book value of all real estate and
buildings subject to Liens permitted by this subparagraph (g), does not exceed
20% of the Borrower's net worth at the time of determination.
(h) Liens not otherwise permitted hereunder, on property other
than accounts receivable and inventory, provided that the aggregate amount of
Indebtedness secured thereby (other than those referred to in (a) through (g)
above) shall not at any one time exceed $100,000,000 or its Dollar equivalent
at such time in other currencies.
(i) Liens filed in connection with the construction of, and
additions to, the Borrower's headquarters in Beaverton, Oregon in an aggregate
amount which do not reflect obligations of the Borrower in excess of
$100,000,000.
6.16. Affiliates. The Borrower will not, and will not permit any
Subsidiary to, enter into any transaction (including the purchase or sale of
any property or service) with, or make any payment or transfer to, any
Affiliate except in the ordinary course of business and pursuant to the
reasonable requirements of the Borrower's or such Subsidiary's business and
upon fair and reasonable terms no less favorable to the Borrower than the
Borrower or such Subsidiary would obtain in a comparable arm's length
transaction.
6.17. Leverage Ratio. The Borrower will not as of the end of any
fiscal quarter from and after the Effective Date permit the Leverage Ratio to
exceed 1.00 to 1.00.
6.18. Notice of Rating Change. The Borrower shall, no later than ten
(10) Business Days after the chief executive officer, the president, any
45
corporate vice president or the treasurer of the Borrower obtains knowledge of
any such change, give notice to the Administrative Agent (by telephone,
followed promptly by written notice transmitted by facsimile with a hard copy
sent promptly thereafter) of any change in rating by any Rating Agency in
respect of the Borrower's long-term, senior unsecured, non-credit-enhanced
debt, together with the details thereof, and of any announcement by any Rating
Agency that its rating in respect of such senior unsecured long-term debt is
"under review" or that any such debt rating has been placed on a "CreditWatch
List" (registered xxxx) or "watch list" or that any similar action has been
taken by such Rating Agency.
ARTICLE VII
DEFAULTS
The occurrence of any one or more of the following events shall
constitute a Default:
7.1. Any representation or warranty made or deemed made by or on behalf
of the Borrower or any Subsidiary to the Banks or the Administrative Agent
under or in connection with this Agreement, any Loan, or any certificate or
information delivered in connection with this Agreement or any other Loan
Document shall be materially false on the date as of which made.
7.2. Nonpayment of principal of any Note when due, or nonpayment of
interest upon any Note or of any commitment fee or other Obligations under any
of the Loan Documents within five days after the same becomes due.
7.3. The breach by the Borrower of any of the terms or provisions of
Sections 6.10, 6.11, 6.12, 6.13, 6.14, 6.15, 6.16 or 6.17. The breach by the
Borrower (other than a breach which constitutes a Default under Section 7.1,
7.2 or the preceding sentence of this Section 7.3) of any of the terms or
provisions of this Agreement which is not remedied within 30 days after written
notice from the Administrative Agent or any Bank.
7.4. Failure of the Borrower or any Subsidiary to pay any Indebtedness
in an aggregate principal amount in excess of $50,000,000 within 30 days after
the Borrower knows or ought reasonably to have known, that such Indebtedness
was due; or the default by the Borrower or any Subsidiary in the performance of
any term, provision or condition contained in any agreement under any such
Indebtedness was created or is governed, or any other event shall occur or
condition exist, the effect of which is to cause, or to permit the holder or
holders of such Indebtedness to cause such Indebtedness to become due prior to
its stated maturity; or any such Indebtedness of the Borrower or any Subsidiary
shall be declared to be due and payable or required to be prepaid (other than
by a regularly scheduled payment) prior to the stated maturity thereof; or the
Borrower or any Subsidiary shall not pay, or admit in writing its inability to
pay, its debts generally as they become due.
7.5. The Borrower or any Subsidiary shall (i) have an order for relief
entered with respect to it under the Federal or State bankruptcy laws as now or
hereafter in effect, (ii) make an assignment for the benefit of creditors,
(iii) apply for, seek, consent to, or acquiesce in, the appointment of a
46
receiver, custodian, trustee, examiner, liquidator or similar official for it
or any substantial part of its property, (iv) institute any proceeding seeking
an order for relief under the Federal bankruptcy laws as now or hereafter in
effect or seeking to adjudicate it a bankrupt or insolvent, or seeking
dissolution, winding up, liquidation, reorganization, arrangement, adjustment
or composition of it or its debts under any Law relating to bankruptcy,
insolvency or reorganization or relief of debtors or fail to file an answer or
other pleading denying the material allegations of any such proceeding filed
against it, (v) take any corporate action to authorize or effect any of the
foregoing actions set forth in this Section 7.5, or (vi) fail to contest in
good faith any appointment or proceeding described in Section 7.6.
7.6 Without the application, approval or consent of the Borrower or any
Subsidiary, a receiver, trustee, examiner, liquidator or similar official shall
be appointed for the Borrower or any Subsidiary or any substantial part of its
property, or a proceeding described in Section 7.5(iv) shall be instituted
against the Borrower or any Subsidiary and such appointment continues
undischarged or such proceeding continues undismissed or unstayed for a period
of 30 days with respect to any such appointment or proceeding against the
Borrower or a Subsidiary incorporated within the United States and 60 days with
respect to any Subsidiary incorporated outside of the United States.
7.7. Any court, government or governmental agency shall condemn, seize
or otherwise appropriate, or take custody or control of all or any Substantial
Portion of the property of the Borrower or any Subsidiary.
7.8. The Borrower or any Subsidiary shall fail within 30 days to pay,
bond or otherwise discharge, one or more judgments or orders for the payment of
money in excess of $20,000,000 in the aggregate, which are not stayed on appeal
or otherwise being appropriately contested in good faith. Any Liens arising
out of such judgments or orders are subject to the provisions of Section
6.15(h).
7.9. Any Reportable Event shall occur in connection with any Plan or any
material Unfunded Liabilities shall exist.
7.10. Any Change in Control shall occur. "Change in Control" means
either (a) with respect to any capital stock of the Borrower that is publicly
traded, the acquisition after the date of this Agreement by any Person or two
or more Persons acting in concert, other than the Knight Family, of beneficial
ownership (within the meaning of Rule 13d-3 of the Securities and Exchange
Commission under the Securities Exchange Act of 1934) of 50% or more of the
outstanding shares of such capital stock which are entitled to vote in the
election of directors; or (b) with respect to any capital stock of the Borrower
that is not publicly traded, if the Knight Family shall at any time fail to own
and control 67% or more of the outstanding shares of such capital stock.
7.11. There occurs under any agreement or arrangement designed to protect
at least one of the parties thereto from the fluctuations of interest rates,
exchange rates or forward rates applicable to such party's assets, liabilities
or exchange transactions, including, but not limited to, interest rate exchange
agreements, forward currency exchange agreements, interest rate cap or collar
protection agreements, forward rate currency or interest rate options, puts and
47
warrants (each, a "Swap Contract"), an "early termination date" (as defined in
such Swap Contract) resulting from (a) any "event of default" (as defined in
such Swap Contract) under such Swap Contract as to which the Borrower or any
Subsidiary is the defaulting party, or (b) any "termination event" (as defined
in such Swap Contract) as to which the Borrower or any Subsidiary is an
affected party, and, in either event, the net xxxx-to-market value for such
Swap Contract, as determined by the Borrower based upon one or more mid-market
or other readily available quotations provided by any recognized dealer in such
Swap Contracts, owed by the Borrower or such Subsidiary as a result thereof is
greater than $20,000,000.
ARTICLE VIII
ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES
8.1. Acceleration. If any Default described in Section 7.5, 7.6 or 7.7
occurs, the obligations of the Banks to make Loans to the Borrower hereunder
shall automatically terminate and the Obligations of the Borrower shall
immediately become due and payable without any election or action on the part
of the Administrative Agent or any Bank. If any other Default occurs, (a) the
Majority Facility A Banks may terminate or suspend the obligations of the
Facility A Banks to make Facility A Loans to the Borrower hereunder, or declare
the Facility A Obligations of the Borrower to be due and payable, or both, and
(b) the Majority Facility B Banks may terminate or suspend the obligations of
the Facility B Banks to make Facility B Loans to the Borrower hereunder, or
declare the Facility B Obligations of the Borrower to be due and payable, or
both, whereupon such Facility A Obligations or such Facility B Obligations, as
the case may be, shall become immediately due and payable, without presentment,
demand, protest or notice of any kind, all of which the Borrower hereby
expressly waives.
If, within 14 days after acceleration of the maturity of the Facility A
Obligations or termination of the obligations of the Facility A Banks to make
Facility A Loans hereunder as a result of any Default (other than any Default
as described in Section 7.5, 7.6, 7.7 or 7.10) and before any judgment or
decree for the payment of the Facility A Obligations due shall have been
obtained or entered, the Majority Facility A Banks (in their sole discretion)
shall so direct, the Administrative Agent shall, by notice to the Borrower,
rescind and annul such acceleration and/or termination.
If, within 14 days after acceleration of the maturity of the Facility B
Obligations or termination of the obligations of the Facility B Banks to make
Facility B Loans hereunder as a result of any Default (other than any Default
as described in Section 7.5, 7.6, 7.7 or 7.10) and before any judgment or
decree for the payment of the Facility B Obligations due shall have been
obtained or entered, the Majority Facility B Banks (in their sole discretion)
shall so direct, the Administrative Agent shall, by notice to the Borrower,
rescind and annul such acceleration and/or termination.
8.2. Amendments and Waivers. No amendment or waiver of any provision of
this Agreement, and no consent with respect to any departure by the Borrower
therefrom, shall be effective unless the same shall be in writing and (A)
signed by (i) the Majority Facility A Banks (or by the Administrative Agent at
the written request of the Majority Facility A Banks) if such waiver, amendment
or consent affects the Facility A Banks, (ii) the Majority Facility B Banks (or
48
by the Administrative Agent at the written request of the Majority Facility B
Banks) if such waiver, amendment or consent affects the Facility B Banks, and
(iii) the Borrower, and (B) acknowledged by the Administrative Agent, and then
any such waiver or consent shall be effective only in the specific instance and
for the specific purpose for which given; provided, however, that no such
waiver, amendment or consent shall, without the consent of each Applicable Bank
affected thereby, do any of the following:
(a) Extend the scheduled maturity of any Loan or Note or reduce
the principal amount thereof (other than as permitted by this Agreement), or
reduce the rate or extend the time of payment of interest or fees thereon.
(b) Reduce the percentage specified in the definitions of
Majority Banks, Majority Facility A Banks, or Majority Facility B Banks.
(c) Subject to Sections 2.6, 2.7 and 2.8, extend the Facility A
Termination Date or the Facility B Termination Date, increase the amount of the
Commitment of any Bank hereunder, or permit the Borrower to assign its rights
under this Agreement.
(d) Amend or waive the provisions of Article IV.
(e) Amend this Section 8.2.
No amendment of any provision of this Agreement relating to the
Administrative Agent shall be effective without the written consent of the
Administrative Agent. The Administrative Agent may waive payment of the fee
required under Section 10.7(a) or 13.3.3 without obtaining the consent of any
of the Banks.
8.3. Preservation of Rights. No delay or omission of the Banks or the
Administrative Agent to exercise any right under the Loan Documents shall
impair such right or be construed to be a waiver of any Default or an
acquiescence therein, and the making of a Loan notwithstanding the existence of
a Default or the inability of the Borrower to satisfy the conditions precedent
to such Loan shall not constitute any waiver or acquiescence. Any single or
partial exercise of any such right shall not preclude other or further exercise
thereof or the exercise of any other right, and no waiver, amendment or other
variation of the terms, conditions or provisions of the Loan Documents
whatsoever shall be valid unless in writing signed by the Banks and the
Administrative Agent required pursuant to Section 8.2, and then only to the
extent in such writing specifically set forth. All remedies contained in the
Loan Documents or by law afforded shall be cumulative and all shall be
available to (a) the Administrative Agent until the Obligations have been paid
in full, (b) the Facility A Banks until the Facility A Obligations have been
paid in full, and (c) the Facility B Banks until the Facility B Obligations
have been paid in full.
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ARTICLE IX
NOTICES
9.1. Giving Notice. Except as otherwise permitted by Section 2.5.9 with
respect to borrowing notices, all notices and other communications provided to
any party hereto under this Agreement or any other Loan Document shall be in
writing or by facsimile and addressed or delivered to such party at its address
set forth below its signature hereto or at such other address as may be
designated by such party in a notice to the other parties. Any notice, if
mailed by certified mail, return receipt requested and properly addressed with
postage prepaid, shall be deemed given when received and receipt confirmed; any
notice, if transmitted by facsimile, shall be deemed given when legibly
transmitted and receipt confirmed.
9.2. Change of Address. The Borrower, the Administrative Agent and any
Bank may each change the address for service of notice upon it by a notice in
writing to the other parties hereto.
ARTICLE X
GENERAL PROVISIONS
10.1. Survival of Representations. All representations and warranties
made hereunder and in any other Loan Document or other document delivered
pursuant hereto or thereto or in connection herewith or therewith shall survive
the execution and delivery hereof and thereof. Such representations and
warranties have been or will be relied upon by the Administrative Agent and
each Bank, regardless of any investigation made by the Administrative Agent or
any Bank or on their behalf and notwithstanding that the Administrative Agent
or any Bank may have had notice or knowledge of any Default or Unmatured
Default at the time of any Loan or Commitment, and shall continue in full force
and effect as long as any Loan or any other Obligation shall remain unpaid or
unsatisfied.
10.2. Governmental Regulation. Anything contained in this Agreement to
the contrary notwithstanding, no Bank shall be obligated to extend credit to
the Borrower in violation of any limitation or prohibition provided by any
applicable statute or regulation.
10.3. Taxes. Any taxes (excluding income taxes) or other similar
assessments or charges payable or ruled payable by any Governmental Authority
in respect of the Loan Documents shall be paid by the Borrower, together with
interest and penalties, if any.
10.4. Headings. Section headings in the Loan Documents are for
convenience of reference only, and shall not govern the interpretation of any
of the provisions of the Loan Documents.
10.5. Entire Agreement. This Agreement, together with the other Loan
Documents, comprises the complete and integrated agreement of the parties on
the subject matter hereof and thereof and supersedes all prior agreements,
written or oral, on such subject matter. In the event of any conflict between
the provisions of this Agreement and those of any other Loan Document, the
provisions of this Agreement shall control; provided that the inclusion of
50
supplemental rights or remedies in favor of the Administrative Agent or the
Banks in any other Loan Document shall not be deemed a conflict with this
Agreement. Each Loan Document was drafted with the joint participation of the
respective parties thereto and shall be construed neither against nor in favor
of any party, but rather in accordance with the fair meaning thereof.
10.6. Several Obligations. The respective obligations of the Banks
hereunder are several and not joint and no Bank shall be the partner or agent
of any other (except to the extent to which the Administrative Agent is
authorized to act as such). The failure of any Bank to perform any of its
obligations hereunder shall not relieve any other Bank from any of its
obligations hereunder. This Agreement shall not be construed so as to confer
any right or benefit upon any Person other than the parties to this Agreement
and their respective successors and assigns.
10.7. Expenses; Indemnification.
(a) The Borrower shall reimburse the Administrative Agent for the
costs and expenses incurred in the preparation, execution and administration of
the Loan Documents as set forth in a letter agreement between the
Administrative Agent and the Borrower dated October 5, 2000.
(b) The Borrower shall reimburse the Administrative Agent and each
Bank for all itemized, reasonable costs and expenses (including attorney's fees
and time charges of attorneys for the Administrative Agent and each Bank, which
attorneys may be employees of a Bank) (hereinafter, collectively, "Attorney
Costs") paid or incurred in connection with the collection and enforcement of
the Loan Documents during the existence of a Default or after acceleration of
the Advances (including in connection with any "workout" or restructuring
regarding the Advances, and including in any insolvency proceeding). The
Borrower further agrees to indemnify the Administrative Agent, the Co-Arrangers
and each Bank, and each of their respective directors, officers and employees
against all losses, claims, damages, penalties, judgments, liabilities and
expenses (including all expenses of litigation or preparation therefor whether
or not the Administrative Agent or any Bank is a party thereto, including
Attorney Costs) which any of them may pay or incur arising out of or relating
to this Agreement, the other Loan Documents, the transactions contemplated
hereby or the direct or indirect application or proposed application of the
proceeds of any Loan hereunder (together, "Indemnified Liabilities"), subject
to Oregon Revised Statutes (section xxxx) 20.096. The Obligations of the
Borrower under this Section shall survive the termination of this Agreement.
10.8. Numbers of Documents. All statements, notices, closing documents,
and requests hereunder shall be furnished to the Administrative Agent with
sufficient counterparts so that the Administrative Agent may furnish one to
each of the Applicable Banks.
10.9. Accounting. Except as provided to the contrary herein, all
accounting terms used herein shall be interpreted and all accounting
determinations hereunder shall be made in accordance with Agreement Accounting
Principles. The Borrower will not make any change in its fiscal year or in the
accounting principles and methods used in preparing its financial statements.
51
10.10. Severability of Provisions. Any provision of this Agreement and
the other Loan Documents to which the Borrower is a party 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 thereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.
10.11. Nonliability of Banks. The relationship between the Borrower and
the Banks and the Administrative Agent with respect to this Agreement shall be
solely that of borrower and lender. Neither the Administrative Agent nor any
Bank shall have any fiduciary responsibilities to the Borrower with respect to
this Agreement. Neither the Administrative Agent nor any Bank undertakes under
this Agreement any responsibility to the Borrower to review or inform the
Borrower of any matter in connection with any phase of the Borrower's business
or operations.
10.12. Confidentiality. Each of the Administrative Agent and the Banks
agrees to maintain the confidentiality of the Information (as defined below),
and not disclose the Information to any Person who is not an officer or
employee of the Administrative Agent or the Banks (or counsel to them) involved
with the lending facilities contemplated by this Agreement; except that
Information may be disclosed (a) to its and its Affiliates' directors,
officers, employees and agents, including accountants, legal counsel and other
advisors who are involved with the lending facilities contemplated by this
Agreement (it being understood that the Persons to whom such disclosure is made
will be informed of the confidential nature of such Information and instructed
to keep such Information confidential); (b) to the extent requested by any
regulatory authority; (c) to the extent required by applicable Laws or
regulations or by any subpoena or similar legal process; (d) to any other party
to this Agreement; (e) in connection with the exercise of any remedies
hereunder or any suit, action or proceeding relating to this Agreement or the
enforcement of rights hereunder; (f) subject to an agreement containing
provisions substantially the same as those of this Section, to (i) any Eligible
Assignee of or Participant in, or any prospective Eligible Assignee of or
Participant in, any of its rights or obligations under this Agreement or (ii)
any direct or indirect contractual counterparty or prospective counterparty (or
such contractual counterparty's or prospective counterparty's professional
advisor) to any credit derivative transaction relating to obligations of the
Borrower; (g) with the consent of the Borrower; (h) to the extent such
Information (i) becomes publicly available other than as a result of a breach
of this Section or (ii) becomes available to the Administrative Agent or any
Bank on a nonconfidential basis from a source other than the Borrower; or (i)
to the National Association of Insurance Commissioners or any other similar
organization or any nationally recognized rating agency that requires access to
information about a Bank's or its Affiliates' investment portfolio in
connection with ratings issued with respect to such Bank or its Affiliates.
For the purposes of this Section, "Information" means all information received
from the Borrower relating to the Borrower or its business, other than any such
information that is available to the Administrative Agent or any Bank on a
nonconfidential basis prior to disclosure by the Borrower; provided that, in
the case of information received from the Borrower after the date hereof, such
information is clearly identified in writing at the time of delivery as
confidential. Any Person required to maintain the confidentiality of
Information as provided in this Section shall be considered to have complied
with its obligation to do so if such Person has exercised the same degree of
52
care to maintain the confidentiality of such Information as such Person would
accord to its own confidential information. The obligations under this Section
10.12 shall survive for two years following (a) the termination of this
Agreement, or (b) with respect to a Withdrawing Bank, when such Withdrawing
Bank withdraws.
10.13. CHOICE OF LAW. THE LOAN DOCUMENTS (OTHER THAN THOSE CONTAINING A
CONTRARY EXPRESS CHOICE OF LAW PROVISION) SHALL BE CONSTRUED IN ACCORDANCE WITH
THE INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF OREGON BUT
GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.
10.14. CONSENT TO JURISDICTION. THE BORROWER HEREBY IRREVOCABLY SUBMITS
TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR OREGON STATE
COURT SITTING IN PORTLAND, OREGON IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO ANY LOAN DOCUMENTS AND THE BORROWER HEREBY IRREVOCABLY AGREES THAT
ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED
IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER
HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A
COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT
THE RIGHT OF ANY ADMINISTRATIVE AGENT OR ANY BANK TO BRING PROCEEDINGS AGAINST
THE BORROWER IN THE COURTS OF ANY OTHER JURISDICTION.
10.15 WAIVER OF JURY TRIAL. THE BORROWER, THE ADMINISTRATIVE AGENT AND
EACH BANK HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING,
DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR
OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH ANY LOAN
DOCUMENT OR THE RELATIONSHIP ESTABLISHED THEREUNDER.
10.16. OREGON LEGAL NOTICE. UNDER OREGON LAW, MOST AGREEMENTS, PROMISES
AND COMMITMENTS MADE BY US AFTER THE EFFECTIVE DATE OF THIS ACT CONCERNING
LOANS AND OTHER CREDIT EXTENSIONS WHICH ARE NOT FOR PERSONAL, FAMILY OR
HOUSEHOLD PURPOSES OR SECURED SOLELY BY THE BORROWER'S RESIDENCE MUST BE IN
WRITING, EXPRESS CONSIDERATION AND BE SIGNED BY US TO BE ENFORCEABLE. THE TERM
"THIS ACT" MEANS CHAPTER 967 OREGON LAWS 1989. THE TERM "US" MEANS THE
ADMINISTRATIVE AGENT AND THE BANKS. THE EFFECTIVE DATE OF THIS ACT IS OCTOBER
3, 1989.
10.17. Counterparts. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one agreement, and
any of the parties hereto may execute this Agreement by signing any such
counterpart.
53
ARTICLE XI
THE ADMINISTRATION AGENT
11.1. Appointment and Authorization; "Administrative Agent" TC . Each
Bank hereby irrevocably (subject to Section 11.9) appoints, designates and
authorizes the Administrative Agent to take such action on its behalf under the
provisions of this Agreement and each other Loan Document and to exercise such
powers and perform such duties as are expressly delegated to it by the terms of
this Agreement or any other Loan Document, together with such powers as are
reasonably incidental thereto. Notwithstanding any provision to the contrary
contained elsewhere in this Agreement or in any other Loan Document, the
Administrative Agent shall not have any duties or responsibilities, except
those expressly set forth herein and therein, nor shall the Administrative
Agent have or be deemed to have any fiduciary relationship with any Bank, and
no implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or any other Loan Document or
otherwise exist against the Administrative Agent. Without limiting the
generality of the foregoing sentence, the use of the term "agent" in this
Agreement with reference to the Administrative Agent is not intended to connote
any fiduciary or other implied (or express) obligations arising under agency
doctrine of any applicable Law. Instead, such term is used merely as a matter
of market custom and is intended to create or reflect only an administrative
relationship between independent contracting parties.
11.2. Delegation of Duties. The Administrative Agent may execute any of
its duties under this Agreement or any other Loan Document by or through
agents, employees or attorneys-in-fact and shall be entitled to advice of
counsel concerning all matters pertaining to such duties. The Administrative
Agent shall not be responsible to any Bank for the negligence or misconduct of
any agent or attorney-in-fact that it selects in the absence of gross
negligence or willful misconduct.
11.3. Liability of Administrative Agent. No Administrative
Agent-Related Person shall (a) be liable for any action taken or omitted to be
taken by any of them under or in connection with this Agreement or any other
Loan Document or the transactions contemplated hereby (except for its own gross
negligence or willful misconduct in connection with its duties expressly set
forth herein or therein), or (b) be responsible in any manner to any Bank or
participant for any recital, statement, representation or warranty made by the
Borrower or any Subsidiary or Affiliate of the Borrower, or any officer
thereof, contained in this Agreement or in any other Loan Document, or in any
certificate, report, statement or other document referred to or provided for
in, or received by the Administrative Agent under or in connection with, this
Agreement or any other Loan Document, or the validity, effectiveness,
genuineness, enforceability or sufficiency of this Agreement or any other Loan
Document, or for any failure of the Borrower or any other party to any Loan
Document to perform its obligations hereunder or thereunder. No Administrative
Agent-Related Person shall be under any obligation to any Bank to ascertain or
to inquire as to the observance or performance of any of the agreements
contained in, or conditions of, this Agreement or any other Loan Document, or
to inspect the properties, books or records of the Borrower or any of its
Subsidiaries or Affiliates.
11.4. Reliance by Administrative Agent.
54
(a) The Administrative Agent shall be entitled to rely, and shall
be fully protected in relying, upon any writing, communication, signature,
resolution, representation, notice, consent, certificate, affidavit, letter,
telegram, facsimile, telex or telephone message, statement or other document or
conversation believed by it to be genuine and correct and to have been signed,
sent or made by the proper Person or Persons, and upon advice and statements of
legal counsel (including counsel to the Borrower), independent accountants and
other experts selected by the Administrative Agent. The Administrative Agent
shall be fully justified in failing or refusing to take any action under this
Agreement or any other Loan Document unless it shall first receive such advice
or concurrence of the Majority Banks, the Majority Facility A Banks or the
Majority Facility B Banks as it deems appropriate and, if it so requests, it
shall first be indemnified to its satisfaction by the Banks against any and all
liability and expense which may be incurred by it by reason of taking or
continuing to take any such action. The Administrative Agent shall in all
cases be fully protected in acting, or in refraining from acting, under this
Agreement or any other Loan Document in accordance with a request or consent of
the Majority Banks, the Majority Facility A Banks or the Majority Facility B
Banks, as applicable, or all the Banks, if required hereunder, and such request
and any action taken or failure to act pursuant thereto shall be binding upon
all of the Banks and participants. Where this Agreement expressly permits or
prohibits an action unless the Majority Banks, the Majority Facility A Banks or
the Majority Facility B Banks otherwise determine, the Administrative Agent
shall, and in all other instances, the Administrative Agent may, but shall not
be required to, initiate any solicitation for the consent or a vote of the
Banks.
(b) For purposes of determining compliance with the conditions
specified in Section 4.1, each Bank that has executed this Agreement shall be
deemed to have consented to, approved or accepted or to be satisfied with, each
document or other matter either sent by the Administrative Agent to such Bank
for consent, approval, acceptance or satisfaction, or required thereunder to be
consented to or approved by or acceptable or satisfactory to a Bank.
11.5. Notice of Default. The Administrative Agent shall not be deemed
to have knowledge or notice of the occurrence of any Default or Unmatured
Default, except with respect to defaults in the payment of principal, interest
and fees required to be paid to the Administrative Agent for the account of the
Applicable Banks, unless the Administrative Agent shall have received written
notice from a Bank or the Borrower referring to this Agreement, describing such
Default or Unmatured Default and stating that such notice is a "notice of
default." The Administrative Agent will notify the Banks of its receipt of any
such notice. The Administrative Agent shall take such action with respect to
such Default or Unmatured Default as may be requested by the Majority Banks in
accordance with Article VIII; provided, however, that unless and until the
Administrative Agent has received any such request, the Administrative Agent
may (but shall not be obligated to) take such action, or refrain from taking
such action, with respect to such Default or Unmatured Default as it shall deem
advisable or in the best interest of the Banks.
11.6. Credit Decision. Each Bank acknowledges that none of the
Administrative Agent-Related Persons has made any representation or warranty to
it, and that no act by the Administrative Agent hereafter taken, including any
consent to and acceptance of any assignment or review of the affairs of the
Borrower and its Subsidiaries, shall be deemed to constitute any representation
or warranty by any Administrative Agent-Related Person to any Bank as to any
55
matter, including whether Administrative Agent-Related Persons have disclosed
material information in their possession. Each Bank represents to the
Administrative Agent that it has, independently and without reliance upon any
Administrative Agent-Related Person and based on such documents and information
as it has deemed appropriate, made its own appraisal of and investigation into
the business, prospects, operations, property, financial and other condition
and creditworthiness of the Borrower and its Subsidiaries, and all applicable
bank or other regulatory Laws relating to the transactions contemplated hereby,
and made its own decision to enter into this Agreement and to extend credit to
the Borrower hereunder. Each Bank also represents that it will, independently
and without reliance upon any Administrative Agent-Related Person and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit analysis, appraisals and decisions in taking or
not taking action under this Agreement and the other Loan Documents, and to
make such investigations as it deems necessary to inform itself as to the
business, prospects, operations, property, financial and other condition and
creditworthiness of the Borrower. Except for notices, reports and other
documents expressly required to be furnished to the Banks by the Administrative
Agent herein, the Administrative Agent shall not have any duty or
responsibility to provide any Bank with any credit or other information
concerning the business, prospects, operations, property, financial and other
condition or creditworthiness of the Borrower or any of its Affiliates which
may come into the possession of any of the Administrative Agent-Related
Persons.
11.7. Indemnification of Administrative Agent. Whether or not the
transactions contemplated hereby are consummated, the Banks shall indemnify
upon demand the Administrative Agent-Related Persons (to the extent not
reimbursed by or on behalf of the Borrower and without limiting the obligation
of the Borrower to do so), pro rata, from and against any and all Indemnified
Liabilities incurred by it; provided, however, that no Bank shall be liable for
the payment to any Administrative Agent-Related Person of any portion of such
Indemnified Liabilities resulting solely from such Person's gross negligence or
willful misconduct; provided, however, that no action taken in accordance with
the directions of the Majority Banks, the Majority Facility A Banks or the
Majority Facility B Banks shall be deemed to constitute gross negligence or
willful misconduct for purposes of this Section. Without limitation of the
foregoing, each Bank shall reimburse the Administrative Agent upon demand for
its ratable share of any costs or out-of-pocket expenses (including Attorney
Costs) incurred by the Administrative Agent in connection with the preparation,
execution, delivery, administration, modification, amendment or enforcement
(whether through negotiations, legal proceedings or otherwise) of, or legal
advice in respect of rights or responsibilities under, this Agreement, any
other Loan Document, or any document contemplated by or referred to herein, to
the extent that the Administrative Agent is not reimbursed for such expenses by
or on behalf of the Borrower. The undertaking in this Section shall survive
termination of the Commitments, the payment of all Obligations hereunder and
the resignation or replacement of the Administrative Agent.
11.8. Administrative Agent in Individual Capacity. Bank of America and
its Affiliates may make loans to, issue letters of credit for the account of,
accept deposits from, acquire equity interests in and generally engage in any
kind of banking, trust, financial advisory, underwriting or other business with
the Borrower and its Affiliates as though Bank of America were not the
56
Administrative Agent hereunder and without notice to or consent of the Banks.
The Banks acknowledge that, pursuant to such activities, Bank of America or its
Affiliates may receive information regarding the Borrower or its Affiliates
(including information that may be subject to confidentiality obligations in
favor of the Borrower or such Affiliates) and acknowledge that the
Administrative Agent shall be under no obligation to provide such information
to them. With respect to its Loans, Bank of America shall have the same rights
and powers under this Agreement as any other Bank and may exercise the same as
though it were not the Administrative Agent, and the terms "Bank," "Banks,"
"Applicable Bank" and "Applicable Banks" include Bank of America in its
individual capacity.
11.9. Successor Administrative Agent. The Administrative Agent may, and
at the request of the Majority Banks shall, resign as Administrative Agent upon
30 days' notice to the Banks. If the Administrative Agent resigns under this
Agreement, the Majority Banks shall appoint from among the Banks a successor
agent for the Banks. If no successor agent is appointed prior to the effective
date of the resignation of the Administrative Agent, the Administrative Agent
may appoint, after consulting with the Banks and the Borrower, a successor
agent from among the Banks. Upon the acceptance of its appointment as
successor agent hereunder, such successor agent shall succeed to all the
rights, powers and duties of the retiring Administrative Agent and the term
"Administrative Agent" shall mean such successor agent and the retiring
Administrative Agent's appointment, powers and duties as Administrative Agent
shall be terminated. After any retiring Administrative Agent's resignation
hereunder as Administrative Agent, the provisions of this Article XI and
Section 10.7 shall inure to its benefit as to any actions taken or omitted to
be taken by it while it was Administrative Agent under this Agreement. If no
successor agent has accepted appointment as Administrative Agent by the date
which is 30 days following a retiring Administrative Agent's notice of
resignation, the retiring Administrative Agent's resignation shall nevertheless
thereupon become effective and the Banks shall perform all of the duties of the
Administrative Agent hereunder until such time, if any, as the Majority Banks
appoint a successor agent as provided for above.
11.10. Foreign Banks. Each Bank that is a "foreign corporation,
partnership or trust" within the meaning of the Code shall deliver to the
Administrative Agent, prior to receipt of any payment subject to withholding
under the Code (or after accepting an assignment of an interest herein), two
duly signed completed copies of either IRS Form W-8BEN or any successor thereto
(relating to such Person and entitling it to an exemption from, or reduction
of, withholding tax on all payments to be made to such Person by the Borrower
pursuant to this Agreement) or IRS Form W-8ECI or any successor thereto
(relating to all payments to be made to such Person by the Borrower pursuant to
this Agreement) or such other evidence satisfactory to the Borrower and the
Administrative Agent that such Person is entitled to an exemption from, or
reduction of, U.S. withholding tax. Thereafter and from time to time, each
such Person shall (a) promptly submit to the Administrative Agent such
additional duly completed and signed copies of one of such forms (or such
successor forms as shall be adopted from time to time by the relevant United
States taxing authorities) as may then be available under then current United
States laws and regulations to avoid, or such evidence as is satisfactory to
the Borrower and the Administrative Agent of any available exemption from or
reduction of, United States withholding taxes in respect of all payments to be
57
made to such Person by the Borrower pursuant to this Agreement, (b) promptly
notify the Administrative Agent of any change in circumstances which would
modify or render invalid any claimed exemption or reduction, and (c) take such
steps as shall not be materially disadvantageous to it, in the reasonable
judgment of such Bank, and as may be reasonably necessary (including the re-
designation of its Lending Office) to avoid any requirement of applicable Laws
that the Borrower make any deduction or withholding for taxes from amounts
payable to such Person. If such Person fails to deliver the above forms or
other documentation, then the Administrative Agent may withhold from any
interest payment to such Person an amount equivalent to the applicable
withholding tax imposed by Sections 1441 and 1442 of the Code, without
reduction. If any Governmental Authority asserts that the Administrative Agent
did not properly withhold any tax or other amount from payments made in respect
of such Person, such Person shall indemnify the Administrative Agent therefor,
including all penalties and interest, any taxes imposed by any jurisdiction on
the amounts payable to the Administrative Agent under this Section, and costs
and expenses (including Attorney Costs) of the Administrative Agent. The
obligations of the Banks under this Section shall survive the payment of all
Obligations and the resignation or replacement of the Administrative Agent.
11.11. Other Agents; Co-Lead Arrangers. None of the Persons identified
in this Agreement as a "Syndication Agent," "Co-Documentation Agent" or "Co-
Arranger" shall have any right, power, obligation, liability, responsibility or
duty under this Agreement other than those applicable to all Banks as such.
Without limiting the foregoing, none of the Persons so identified shall have or
be deemed to have any fiduciary relationship with any Bank. Each Bank
acknowledges that it has not relied, and will not rely, on any of the Persons
so identified in deciding to enter into this Agreement or in taking or not
taking action hereunder.
ARTICLE XII
SETOFF; RATABLE PAYMENTS
12.1. Setoff. In addition to any rights and remedies of the Banks
provided by law, if the Borrower becomes insolvent, however evidenced, or any
Default or Unmatured Default occurs and is continuing, each Bank is authorized
at any time and from time to time, without prior notice to the Borrower, any
such notice being waived by the Borrower 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 by, and other indebtedness at
any time owing by, such Bank to or for the credit or the account of the
Borrower against any and all Obligations owing to such Bank, now or hereafter
existing, irrespective of whether or not the Administrative Agent or such Bank
shall have made demand under this Agreement or any other Loan Document and
although such Obligations may be contingent or unmatured. Each Bank agrees
promptly to notify the Borrower and the Administrative Agent after any such
set-off and application made by such Bank; provided, however, that the failure
to give such notice shall not affect the validity of such set-off and
application.
12.2. Ratable Payments. If any Bank, whether by setoff or otherwise, has
payment made to it upon its Loans in a greater proportion than that received by
any other Bank (except as specifically contemplated by the terms of this
Agreement), such Bank agrees, promptly upon demand, to purchase a portion of
the Facility A Loans or Facility B Loans, as the case may be, held by the other
Applicable Banks so that after such purchase each Applicable Bank will hold its
58
ratable proportion of Facility A Loans or Facility B Loans, as the case may be.
If any Bank, whether in connection with setoff or amounts which might be
subject to setoff or otherwise, receives collateral or other protection for its
Obligations or such amounts which may be subject to set off, such Bank agrees,
promptly upon demand, to take such action necessary such that all Banks share
in the benefits of such collateral ratably in proportion to their Loans. In
case any such payment is disturbed by legal process, or otherwise, appropriate
further adjustments shall be made. Nothing in this Section shall impair the
right of any Bank to exercise any right of set-off or counterclaim it may have
and apply the amount subject to such exercise to the payment of indebtedness of
the Borrower other than the Obligations.
ARTICLE XIII
BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS
13.1. Successors and Assigns. The provisions of this Agreement shall be
binding upon and inure to the benefit of the Borrower and the Banks and their
respective successors and assigns permitted hereby, except that the Borrower
may not assign or otherwise transfer any of its rights or Obligations hereunder
without the prior written consent of each Bank (and any attempted assignment or
transfer by the Borrower without such consent shall be null and void) and any
assignment by any Bank must be made in compliance with Section 13.3. The
Administrative Agent may treat the payee of any Note as the owner thereof for
all purposes hereof unless and until such payee complies with Section 13.3 in
the case of an assignment thereof or, in the case of any other transfer, a
written notice of the transfer is filed with the Administrative Agent. Any
assignee or transferee of a Note agrees by acceptance thereof to be bound by
all the terms and provisions of the Loan Documents. Any request, authority or
consent of any Person, who at the time of making such request or giving such
authority or consent is the holder of any Note, shall be conclusive and binding
on any subsequent holder, transferee or assignee of such Note or of any Note or
Notes issued in exchange therefor. Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby and, to the
extent expressly contemplated hereby, the Administrative Agent-Related Persons)
any legal or equitable right, remedy or claim under or by reason of this
Agreement.
13.2. Participations.
13.2.1. Permitted Participants; Effect. Any Bank may, in the ordinary
course of its commercial banking business and in accordance with applicable
law, at any time sell to one or more banks or other financial institutions
("Participants") participating interests in any Loan owing to such Bank, any
Note held by such Bank, any Commitment of such Bank or any other interest of
such Bank under the Loan Documents. Participations in Competitive Bid Loans
may be sold to any entity. In the event of any such sale by a Bank of
participating interests to a Participant, such Bank's obligations under the
Loan Documents shall remain unchanged, such Bank shall remain solely
responsible to the other parties hereto for the performance of such
obligations, such Bank shall remain the holder of any such Note for all
purposes under the Loan Documents, all amounts payable by the Borrower under
this Agreement shall be determined as if such Bank had not sold such
participating interests, and the Borrower and the Administrative Agent shall
59
continue to deal solely and directly with such Bank in connection with such
Bank's rights and obligations under the Loan Documents.
13.2.2. Voting Rights. Each Bank shall retain the sole right to approve,
without the consent of any Participant, any amendment, modification or waiver
of any provision of the Loan Documents other than any amendment, modification
or waiver with respect to any Loan or Commitment in which such Participant has
an interest which forgives principal, interest or fees or reduces the interest
rate or fees payable with respect to any such Loan or Commitment, postpones any
date fixed for any regularly-scheduled payment of principal of, or interest or
fees on, any such Loan or Commitment, releases any guarantor of any such Loan
or releases any substantial portion of collateral, if any, securing any such
Loan.
13.2.3. Benefit of Setoff. The Borrower agrees that each Participant
shall be deemed to have the right of setoff provided in Section 12.1 in respect
of its participating interest in amounts owing under the Loan Documents to the
same extent as if the amount of its participating interest were owing directly
to it as a Bank under the Loan Documents, provided that each Bank shall retain
the right of setoff provided in Section 12.1 with respect to the amount of
participating interests sold to each Participant. The Banks agree to share
with each Participant, and each Participant, by exercising the right of setoff
provided in Section 12.1, agrees to share with each Bank, any amount received
pursuant to the exercise of its right of setoff, such amounts to be shared in
accordance with Section 12.2 as if each Participant were a Bank.
13.3. Assignments.
13.3.1. Permitted Assignments by Facility A Banks. Any Facility A Bank
may, in the ordinary course of its commercial banking business, in accordance
with applicable law, with the prior consent of the Borrower and the
Administrative Agent (which consent shall not be unreasonably withheld and
provided that no such consent shall be necessary in connection with assignments
to Purchasers that are Affiliates of such Bank and provided further that no
consent of the Borrower shall be required if there exists a Default), at any
time assign to one or more Eligible Assignees ("Purchasers") all or any part of
its rights and obligations as a Facility A Bank and all or any part of its
Facility A Obligations, ratably, under the Loan Documents, provided that each
assignment shall be in a minimum principal amount of $10,000,000 and in
increments of $1,000,000 in excess thereof (or, if less, the remaining amount
of Facility A Commitment and Facility A Loans held by the assignor) and further
provided, that assignments of Competitive Facility A Bid Loans may be made to
any entity on a ratable or non-ratable basis. Such assignment shall be
substantially in the form of Exhibit J hereto or such other form based on the
LSTA model as is reasonably acceptable to the Administrative Agent. Such
consent shall be substantially in the form attached as Exhibit 2 to Exhibit J
hereto.
13.3.2. Permitted Assignments by Facility B Banks. Any Facility B Bank
may, in the ordinary course of its commercial banking business, in accordance
with applicable law, with the prior consent of the Borrower and the
Administrative Agent (which consent shall not be unreasonably withheld and
provided that no such consent shall be necessary in connection with assignments
to Purchaser that are Affiliates of such Bank and provided further that no
consent of the Borrower shall be required if there exists a Default), at any
60
time assign to one or more Eligible Assignees ("Purchasers") all or any part of
its rights and obligations as a Facility B Bank and all or any part of its
Facility B Obligations, ratably, under the Loan Documents, provided that each
assignment shall be in a minimum principal amount of $10,000,000 and in
increments of $1,000,000 in excess thereof (or, if less, the remaining amount
of Facility B Commitment and Facility B Loans held by the assignor) and further
provided, that assignments of Competitive Facility B Bid Loans may be made to
any entity on a ratable or non-ratable basis. Such assignment shall be
substantially in the form of Exhibit J hereto or such other form based on the
LSTA model as is reasonably acceptable to the Administrative Agent. Such
consent shall be substantially in the form attached as Exhibit 2 to Exhibit J
hereto.
13.3.3. Effect; Effective Date. Upon (i) delivery to the Administrative
Agent of a notice of assignment, substantially in the form attached as Exhibit
1 to Exhibit J hereto (a "Notice of Assignment"), together with any consents
required by Section 13.3.1 or Section 13.3.2, and (ii) payment of a $3,500 fee
to the Administrative Agent from the assignor for processing such assignment,
such assignment shall become effective on the effective date specified in such
Notice of Assignment. On and after the effective date of such assignment, such
Purchaser shall for all purposes be a Bank party to this Agreement and any
other Loan Document executed by the Banks and shall have all the rights and
Obligations of a Bank under the Loan Documents, to the same extent as if it
were an original party hereto, and no further consent or action by the
Borrower, the Banks or the Administrative Agent shall be required to release
the transferor Bank with respect to the percentage of the Commitments and Loans
assigned to such Purchaser. Upon the consummation of any assignment to a
Purchaser pursuant to this Section 13.3.3, the transferor Bank, the
Administrative Agent and the Borrower shall make appropriate arrangements so
that replacement Notes are issued to such transferor Bank and new Notes or, as
appropriate, replacement Notes, are issued to such Purchaser, in each case in
principal amounts reflecting their Commitment, as adjusted pursuant to such
assignment.
13.3.4. Federal Reserve Banks. Notwithstanding anything to the contrary
contained in this Agreement, any Bank may at any time create a security
interest in, or pledge, all or any portion of its rights under and interests in
this Agreement (and the Notes 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 or U.S. Treasury Regulation 31 CFR (section xxxx)203.14, and may
assign all or any portion of its rights under or interests in this Agreement
(and the Notes held by it) to any Affiliate for purposes of creating such a
security interest or pledge, and such Federal Reserve Bank may enforce such
security interest or pledge in any manner permitted under applicable law.
[Remainder of page intentionally left blank.]
IN WITNESS WHEREOF, the Borrower, the Banks and the Administrative
Agent have executed this Agreement as of the date first above written.
NIKE, INC., as the Borrower
By: _______________________________
Xxxxxx X. Xxxxxxxx
Treasurer
Xxx Xxxxxxxx Xxxxx
Xxxxxxxxx, XX 00000-0000
Attention: Xxxxxx X. Xxxxxxxx,
Treasurer
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
BANK OF AMERICA, N.A.,
as Administrative Agent and a Bank
By: _______________________________
Xxxx Xxxxxx
Vice President
Send Notices for Advances/Conversions/Continuations to:
Bank of America, N.A.
Agency Administrative Services
Mail Code: CA4-706-05-09
0000 Xxxxxxx Xxxx., 0xx Xxxxx
Xxxxxxx, XX 00000
Attn: Xxxxxx Xxxxxxx, Credit Services
Rep.
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Send All Other Notices to:
Bank of America, N.A.
Agency Management Services-LA
Mail Code: CA9-706-11-03
000 Xxxxx Xxxxxx Xx., 00xx Xxxxx
Xxx Xxxxxxx, XX 00000
Attn: Xxxx Xxxxxx, Vice President
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
CITICORP USA, INC.,
as Syndication Agent and as a Bank
By: _______________________________
Name:
Title:
Send Notices for Advances/Conversions/Continuations to:
Citicorp U.S.A.
Xxx Xxxxx Xxx
Xxxxx 000
Xxx Xxxxxx, XX 00000
Attn: Xxxxxxx Xxxxx, Assistant Manager
Tel: (000) 000-0000
Fax: (000) 000-0000
Send All Other Notices to:
Citicorp U.S.A.
Xxx Xxxxxxx Xx.
00xx Xxxxx
Xxx Xxxxxxxxx, XX 00000
Attn: Xxxx Xxxxxxx, Vice President
Tel: (000) 000-0000
Fax: (000) 000-0000
BANC ONE, NA
as Co-Documentation Agent and as a Bank
By: _______________________________
Name:
Title:
Send Notices for Advances/Conversions/Continuations to:
Bank One, NA
000 X. Xxxxxxxx Xx.
0xx Xxxxx
Xxx Xxxxxxx, XX 00000
Attn: Xxxxxxxx XxXxx, Xx. Banker I
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Send All Other Notices to:
Bank One, NA
1 Bank Xxx Xxxxx
00xx Xxxxx
Xxxxxxx, XX 00000
Attn: Xxxxxxx X. Xxxxxx, Operations
Officer
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
With a Copy to:
Bank One, NA
1 Bank Xxx Xxxxx
00xx Xxxxx
Xxxxxxx, XX 00000
Attn: Xxxx Xxxxxxxx, Counsel
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
HSBC BANK USA,
as Co-Documentation Agent and as a Bank
By: _______________________________
Name:
Title:
Send Notices for Advances/Conversions/Continuations to:
HSBC Bank USA
000 Xxxxxxxx
0xx Xxxxx
Xxx Xxxx, XX 00000-0000
Attn: Xxxx Xxxxx, Vice President
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Send All Other Notices to:
HSBC Bank USA
0 XXXX Xxxxxx
Xxxxxxx, XX 00000
Attn: Xxxxx Xxxxx, Asset Syndication
Officer
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
ABN-AMRO BANK N.V.,
as a Bank
By: _______________________________
Name:
Title:
Send Notices for Advances/Conversions/Continuations to:
ABN AMRO Bank N.V.
000 X. XxXxxxx Xx.
Xxxxx 0000
Xxxxxxx, XX 00000-0000
Attn: Loan Administration
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Send All Other Notices to:
ABN AMRO Bank N.V.
000 X. XxXxxxx Xx.
Xxxxx 0000
Xxxxxxx, XX 00000-0000
Attn: Credit Administration
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
With a Copy to:
ABN AMRO Bank N.V.
000 X. Xxxxx Xxx.
Xxxxx 0000
Xxx Xxxxxxx, XX 00000
Attn: Xxxxx Xxxxxxx
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
BANCA COMMERCIALE ITALIANA, LOS
ANGELES FOREIGN BRANCH,
as a Bank
By: _______________________________
Name:
Title:
By: _______________________________
Name:
Title:
Send Notices for Advances/Conversions/Continuations to:
Banca Commerciale Italiana
New York Branch
Xxx Xxxxxxx Xx.
Xxx Xxxx, XX 00000
Attn: Xxxxxxxx Xxxx
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Send All Other Notices to:
Same As Above.
BANCA INTESA S.p.A.,
as a Bank
By: _______________________________
Name:
Title:
By: _______________________________
Name:
Title:
Send Notices for Advances/Conversions/Continuations to:
Banca Intesa, S.p.A.
00 Xxxx 00xx Xxxxxx
00xx Xxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxxxxx Xxxxxx, AVP
Tel: (000) 000-0000
Fax: (000) 000-0000
Send All Other Notices to:
Banca Intesa, S.p.A.
00 Xxxx 00xx Xxxxxx
00xx Xxxxx
Xxx Xxxx, XX 00000
Attn: Anthony, Giobbi, FVP
Tel: (000) 000-0000
Fax: (000) 000-0000
ROYAL BANK OF CANADA,
as a Bank
By: _______________________________
Name:
Title:
Send Notices for Advances/Conversions/Continuations to:
Royal Bank of Canada
New York Branch
Xxx Xxxxxxx Xxxxx, 0xx Xxxxx
Xxx Xxxx, XX 00000-0000
Attn: Manager, Loans Administration
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
With a Copy to:
Royal Bank of Canada
Xxx Xxxxxxx Xxxxx
0xx Xxxxx
Xxx Xxxx, XX 00000-0000
Attn: Xxxxx Xxx
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Send All Other Notices to:
Same As Above.
COMMERZBANK AG, NEW YORK and GRAND
CAYMAN BRANCHES,
as a Bank
By: _______________________________
Name:
Title:
By: _______________________________
Name:
Title:
Send Notices for Advances/Conversions/Continuations to:
Commerzbank A.G.
New York Branch
0 Xxxxx Xxxxxxxxx Xxxxxx
Xxx Xxxx, XX 00000-0000
Attn: Xxxxxx Xxxxxxxxx
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Send All Other Notices to:
Commerzbank A.G.
Los Angeles Branch
000 X. Xxxxx Xx.
Xxxxx 0000
Xxx Xxxxxxx, XX 00000
Attn: Xxxxxx Xxxxxxxxxxx
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
DEUTSCHE BANK AG, NEW YORK BRANCH
and/or CAYMAN ISLANDS BRANCH,
as a Bank
By: _______________________________
Name:
Title:
By: _______________________________
Name:
Title:
Send Notices for Advances/Conversions/Continuations to:
Deustche Bank AG
New York Branch
000 Xxxxxxx Xx. (MS 1414)
Xxx Xxxx, XX 00000
Attn: Xxxxxx Xxxxxxxx, Associate
Telephone: (000) 000-0000
Facsimile: (000) 000-0000/1707
Send All Other Notices to:
Deustche Bank AG
New York Branch
00 X. 00xx Xx. (MS 2412)
Xxx Xxxx, XX 00000
Attn: Xxxxxxxxx Xxxxx, Vice President
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
FIRST UNION NATIONAL BANK,
as a Bank
By: _______________________________
Name:
Title:
Send Notices for Advances/Conversions/Continuations to:
First Union National Bank
One South Penn Square
00xx Xxxxx Xxxxxxx Xxxx.
Xxxxxxxxxxxx, XX 00000
Attn: Xxxx Xxxxxxx Keys, Loan Portfolio
Analyst
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
With a Copy to:
First Union National Bank
One South Penn Square
0xx Xxxxx Xxxxxxx Xxxx.
Xxxxxxxxxxxx, XX 00000
Attn: Xxx Xxxxxxxx, Vice President
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Send All Other Notices to:
First Union National Bank
One South Penn Square
00xx Xxxxx Xxxxxxx Xxxx.
Xxxxxxxxxxxx, XX 00000
Attn: Xxxx Xxx, Vice President
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
FLEET NATIONAL BANK,
as a Bank
By: _______________________________
Name:
Title:
Send Notices for Advances/Conversions/Continuations to:
Fleet National Bank
Two Xxxxxxxx Xxxxxx
X.X. Xxx 0000
Xxxxxxxx, XX 00000
Attn: Xxxxxxx Xxxxxxxxxx, Sr. Vice
President
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Send All Other Notices to:
Fleet National Bank
Two Xxxxxxxx Xxxxxx
X.X. Xxx 0000
Xxxxxxxx, XX 00000
Attn: Xxx Xxx, Loan Administrator
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
With a Copy to:
Xxxxxxx, Xxxxx & Xxxxxx
0000 Xxxxx Xxxxxx
Xxxxxxxxxx, XX 00000
Attn: Xxxxxxx Xxxxxx, Partner
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
THE INDUSTRIAL BANK OF JAPAN, LTD.,
as a Bank
By: _______________________________
Xxxxx Xxxxxxxx
Senior Vice President and Manager
Send Notices for Advances/Conversions/Continuations to:
The Industrial Bank of Japan, Ltd.
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, XX 00000-0000
Attn: Xxxxxx Xxxxxx, Credit
Administrator
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Send All Other Notices to:
The Industrial Bank of Japan, Ltd.
Xxx Xxxxxx
Xxxxx Xxxxx, Xxxxx 0000
Xxx Xxxxxxxxx, XX 00000-0000
Attn: Xxxxxxx Xxxx-Fat, Assistant Vice
President
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
THE NORTHERN TRUST COMPANY,
as a Bank
By: _______________________________
Name:
Title:
Send Notices for Advances/Conversions/Continuations to:
The Northern Trust Company
00 X. XxXxxxx Xx.
00xx Xxxxx
Xxxxxxx, XX 00000
Attn: Xxxxx XxXxxxxx
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Send All Other Notices to:
The Northern Trust Company
00 X. XxXxxxx Xx.
Xxxxxxx, XX 00000
Attn: Xxxxx Honda
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
THE BANK OF NOVA SCOTIA,
as a Bank
By: _______________________________
Name:
Title:
Send Notices for Advances/Conversions/Continuations to:
The Bank of Nova Scotia
000 X. X. Xxxxx Xxx.
Xxxxx 000
Xxxxxxxx, XX 00000-0000
Attn: Xxxxx Xxxxx, Director
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Send All Other Notices to:
The Bank of Nova Scotia
000 Xxxxxxxxx Xx., X.X.
Xxxxx 0000
Xxxxxxx, XX 00000
Attn: Xxxxxxx Xxxxxxx, Loan Operations
Officer
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
STATE STREET BANK AND TRUST COMPANY,
as a Bank
By: _______________________________
Name:
Title:
Send Notices for Advances/Conversions/Continuations to:
State Street Bank and Trust Company
000 Xxxxxxxx Xx.
00 Xxxxx
Xxxxxx, XX 00000
Attn: Xxxx X. Xxxxxx, Acting Vice
President
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Send All Other Notices to:
State Street Bank and Trust Company
000 Xxxxxxxx Xx.
00 Xxxxx
Xxxxxx, XX 00000
Attn: Xxxxxxxx Xxxxx, International
Trade Bkg.
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
THE BANK OF TOKYO-MITSUBISHI, LTD.,
as a Bank
By: _______________________________
Name:
Title:
Send Notices for Advances/Conversions/Continuations to:
The Bank of Tokyo-Mitsubishi, Ltd.
0000 Xxxxxxx Xxxxxx
0000 X. X. Xxxxx Xxx.
Xxxxxxxx, XX 00000
Attn: Xxxxx Xxxxxxx, Vice President and
Manager
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Send All Other Notices to:
The Bank of Tokyo-Mitsubishi, Ltd.
0000 Xxxxxxx Xxxxxx
0000 X. X. Xxxxx Xxx.
Xxxxxxxx, XX 00000
Attn: Xxxxxx Xxxxxxxx, Vice President
and Manager
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
U.S. BANK NATIONAL ASSOCIATION,
as a Bank
By: _______________________________
Xxxxx X. Xxxxxx
Vice President
Send Notices for Advances/Conversions/Continuations to:
U.S. Bank National Association
000 X. X. Xxx Xx., XX-0
Xxxxxxxx, XX 00000
Attn: Xxxxx X. Xxxxxx, Vice President
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Send All Other Notices to:
U.S. Bank National Association
000 X. X. Xxx Xx., XX-0
Xxxxxxxx, XX 00000
Attn: Xxx Xxxx, Participation
Specialist
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
XXXXX FARGO BANK, N.A.,
as a Bank
By: _______________________________
Xxxxxx X. Xxxxxxxx
Senior Vice President
Send Notices for Advances/Conversions/Continuations to:
Xxxxx Fargo Bank, N.A.
MAC: P6101-076
0000 X. X. Xxxxx Xxx.
0xx Xxxxx
Xxxxxxxx, XX 00000
Attn: Xxxx X. Xxxx, Assistant Vice
President
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Send All Other Notices to:
Xxxxx Fargo Bank, N.A.
MAC: A0187-081
000 Xxxxx Xx.
Xxx Xxxxxxxxx, XX 00000
Attn: Xxxxxx Xxxxxxx, Vice President
and Manager
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
WESTDEUTSCHE LANDESBANK
GIROZENTRALE, NEW YORK BRANCH,
as a Bank
By: _______________________________
Name:
Title:
Send Notices for Advances/Conversions/Continuations to:
Westdeutsche Landesbank Girozentrale
1211 Avenue of the Xxxxxxxx
00xx Xxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxx Xxxxxx, Manager
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Send All Other Notices to:
Westdeutsche Landesbank Girozentrale
1211 Avenue of the Xxxxxxxx
00xx Xxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxxx Xxxxx, Director
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
With a Copy to:
Westdeutsche Landesbank Girozentrale
1211 Avenue of the Xxxxxxxx
00xx Xxxxx
Xxx Xxxx, XX 00000
Attn: Xxxx Xxxxxx, Director
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
WESTPAC BANKING CORPORATION,
as a Bank
By: _______________________________
Name:
Title:
Send Notices for Advances/Conversions/Continuations to:
Westpac Banking Corporation
000 Xxxxx Xxx.
00xx Xxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxx Xxxxxx, Head of
Relationship Management
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Send All Other Notices to:
Westpac Banking Corporation
000 Xxxxx Xxx.
00xx Xxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxx Xxxxxxxxx, Institutional
Banking Officer
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
With a Copy to:
Westpac Banking Corporation
000 Xxxxx Xxx.
00xx Xxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxxx Xxxxxxx, Assistant Counsel
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
EXHIBIT A-1
NOTE
(Ratable Facility A Loans)
$ _________ ___________, 200__
NIKE, Inc., an Oregon corporation (the "Borrower"), promises to pay to
the order of _______________ (the "Bank") the lesser of the principal sum of
___________ Dollars ($_______) and the aggregate unpaid principal amount of all
Ratable Facility A Loans made by the Bank to the Borrower pursuant to Section
2.2.1(a) of the Credit Agreement (as the same may be amended or modified, the
"Agreement") hereinafter referred to, in immediately available funds at the
Administrative Agent's Office or as otherwise directed by the Administrative
Agent pursuant to the terms of the Agreement, together with interest on the
unpaid principal amount hereof at the rates and on the dates set forth in the
Agreement. The Borrower shall pay each of these respective Ratable Facility A
Loans in full on the last day of such Ratable Facility A Loan's applicable
Interest Period. All Ratable Facility A Loans not sooner repaid shall be paid
in full on the Facility A Termination Date.
The Bank shall, and is hereby authorized to, record on the schedule
attached hereto, or to otherwise record in accordance with its usual practice,
the date and amount of each Ratable Facility A Loan made by it and the date and
amount of each principal payment hereunder; provided, however, that any failure
to so record shall not affect the Borrower's Obligations under this Note.
This Note is one of the Ratable Facility A Notes issued pursuant to,
and is entitled to the benefits of, the Credit Agreement, dated as of November
17, 2000, among the Borrower, Bank of America, N.A., as Administrative Agent,
and the Banks and other Persons party thereto, including the Bank, to which
Agreement, as it may be amended from time to time, reference is hereby made for
a statement of the terms and conditions under which this Note may be prepaid or
its maturity date accelerated. Capitalized terms used herein and not otherwise
defined herein are used with the meanings attributed to them in the Agreement.
OREGON LEGAL NOTICE. UNDER OREGON LAW, MOST AGREEMENTS, PROMISES AND
COMMITMENTS MADE BY US AFTER THE EFFECTIVE DATE OF THIS ACT CONCERNING LOANS
AND OTHER CREDIT EXTENSIONS WHICH ARE NOT FOR PERSONAL, FAMILY OR HOUSEHOLD
PURPOSES OR SECURED SOLELY BY THE BORROWER'S RESIDENCE MUST BE IN WRITING,
EXPRESS CONSIDERATION AND BE SIGNED BY US TO BE ENFORCEABLE. THE TERM "THIS
ACT" MEANS CHAPTER 967 OREGON LAWS 1989. THE TERM "US" MEANS THE BANK. THE
EFFECTIVE DATE OF THIS ACT IS OCTOBER 3, 1989.
A-1-1
NIKE, INC.
By:
Name:
Title:
A-1-2
SCHEDULE OF LOANS AND PAYMENTS OF PRINCIPAL
TO
NOTE (RATABLE FACILITY A LOANS) OF NIKE, INC.
Principal Maturity Principal
Amount of of Interest Amount Unpaid
Date Borrower Loan Period Paid Balance
____ _______ _________ ___________ _________ ________
X-0-0
XXXXXXX X-0
NOTE
(Ratable Facility B Loans)
$ _________ ___________, 200__
NIKE, Inc., an Oregon corporation (the "Borrower"), promises to pay to
the order of _______________ (the "Bank") the lesser of the principal sum of
________ Dollars ($_______) and the aggregate unpaid principal amount of all
Ratable Facility B Loans made by the Bank to the Borrower pursuant to Section
2.2.1(b) of the Credit Agreement (as the same may be amended or modified, the
"Agreement") hereinafter referred to, in immediately available funds at the
Administrative Agent's Office or as otherwise directed by the Administrative
Agent pursuant to the terms of the Agreement, together with interest on the
unpaid principal amount hereof at the rates and on the dates set forth in the
Agreement. The Borrower shall pay each of these respective Ratable Facility B
Loans in full on the last day of such Ratable Facility B Loan's applicable
Interest Period. All Ratable Facility B Loans not sooner repaid shall be paid
in full on the Facility B Termination Date.
The Bank shall, and is hereby authorized to, record on the schedule
attached hereto, or to otherwise record in accordance with its usual practice,
the date and amount of each Ratable Facility B Loan made by it and the date and
amount of each principal payment hereunder; provided, however, that any failure
to so record shall not affect the Borrower's Obligations under this Note.
This Note is one of the Ratable Facility B Notes issued pursuant to,
and is entitled to the benefits of, the Credit Agreement, dated as of November
17, 2000, among the Borrower, Bank of America, N.A., as Administrative Agent,
and the Banks and other Persons party thereto, including the Bank, to which
Agreement, as it may be amended from time to time, reference is hereby made for
a statement of the terms and conditions under which this Note may be prepaid or
its maturity date accelerated. Capitalized terms used herein and not otherwise
defined herein are used with the meanings attributed to them in the Agreement.
OREGON LEGAL NOTICE. UNDER OREGON LAW, MOST AGREEMENTS, PROMISES AND
COMMITMENTS MADE BY US AFTER THE EFFECTIVE DATE OF THIS ACT CONCERNING LOANS
AND OTHER CREDIT EXTENSIONS WHICH ARE NOT FOR PERSONAL, FAMILY OR HOUSEHOLD
PURPOSES OR SECURED SOLELY BY THE BORROWER'S RESIDENCE MUST BE IN WRITING,
EXPRESS CONSIDERATION AND BE SIGNED BY US TO BE ENFORCEABLE. THE TERM "THIS
ACT" MEANS CHAPTER 967 OREGON LAWS 1989. THE TERM "US" MEANS THE BANK. THE
EFFECTIVE DATE OF THIS ACT IS OCTOBER 3, 1989.
A-2-1
NIKE, INC.
By:
Name:
Title:
A-2-2
SCHEDULE OF LOANS AND PAYMENTS OF PRINCIPAL
TO
NOTE (RATABLE FACILITY B LOANS) OF NIKE, INC.
Principal Maturity Principal
Amount of of Interest Amount Unpaid
Date Borrower Loan Period Paid Balance
____ _______ _________ ___________ _________ ________
X-0-0
XXXXXXX X-0
NOTE
(Competitive Facility A Bid Loans)
___________, 200__
NIKE, Inc., an Oregon corporation (the "Borrower"), promises to pay, on
or before the Facility A Termination Date, to the order of ________________
(the "Bank") the aggregate unpaid principal amount of all Competitive Facility
A Bid Loans made by the Bank to the Borrower pursuant to Section 2.3 of the
Credit Agreement hereinafter referred to (as the same may be amended or
modified, the "Agreement"), in lawful money of the United States in immediately
available funds at the Administrative Agent's Office or as otherwise directed
by the Administrative Agent pursuant to the terms of the Agreement, together
with interest, in like money and funds, on the unpaid principal amount hereof
at the rates and on the dates determined in accordance with the Agreement. The
Borrower shall pay each of the Competitive Facility A Bid Loans in full on the
last day of such Competitive Facility A Bid Loan's applicable Interest Period.
The Bank shall, and is hereby authorized to, record on the schedule
attached hereto, or otherwise record in accordance with its usual practice, the
date and amount of each Competitive Facility A Bid Loan made by it and the date
and amount of each principal payment hereunder, provided, however, that any
failure to so record shall not affect the Borrower's Obligations under this
Note.
This Note is one of the Competitive Facility A Bid Notes issued
pursuant to, and is entitled to the benefits of, the Credit Agreement dated as
of November 17, 2000, among the Borrower, Bank of America, N.A., as
Administrative Agent, and the Banks and other Persons party thereto, including
the Bank, to which Agreement, as it may be amended from time to time, reference
is hereby made for a statement of the terms and conditions under which this
Note may be prepaid or its maturity date accelerated. Capitalized terms used
herein and not otherwise defined herein are used with the meanings attributed
to them in the Agreement.
OREGON LEGAL NOTICE. UNDER OREGON LAW, MOST AGREEMENTS, PROMISES AND
COMMITMENTS MADE BY US AFTER THE EFFECTIVE DATE OF THIS ACT CONCERNING LOANS
AND OTHER CREDIT EXTENSIONS WHICH ARE NOT FOR PERSONAL, FAMILY OR HOUSEHOLD
PURPOSES OR SECURED SOLELY BY THE BORROWER'S RESIDENCE MUST BE IN WRITING,
EXPRESS CONSIDERATION AND BE SIGNED BY US TO BE ENFORCEABLE. THE TERM "THIS
ACT" MEANS CHAPTER 967 OREGON LAWS 1989. THE TERM "US" MEANS THE BANK. THE
EFFECTIVE DATE OF THIS ACT IS OCTOBER 3, 1989.
B-1-1
NIKE, INC.
By:
Name:
Title:
B-1-2
SCHEDULE OF LOANS AND PAYMENTS OF PRINCIPAL
TO
NOTE (COMPETITIVE FACILITY A BID LOANS)
OF NIKE, INC.
Principal Maturity Principal
Amount of of Interest Amount Unpaid
Date Borrower Loan Period Paid Balance
____ _______ _________ ___________ _________ ________
X-0-0
XXXXXXX X-0
NOTE
(Competitive Facility B Bid Loans)
___________, 200__
NIKE, Inc., an Oregon corporation (the "Borrower"), promises to pay, on
or before the Facility B Termination Date, to the order of _________________
(the "Bank") the aggregate unpaid principal amount of all Competitive Facility
B Bid Loans made by the Bank to the Borrower pursuant to Section 2.3 of the
Credit Agreement hereinafter referred to (as the same may be amended or
modified, the "Agreement"), in lawful money of the United States in immediately
available funds at the Administrative Agent's Office or as otherwise directed
by the Administrative Agent pursuant to the terms of the Agreement, together
with interest, in like money and funds, on the unpaid principal amount hereof
at the rates and on the dates determined in accordance with the Agreement. The
Borrower shall pay each of the Competitive Facility B Bid Loans in full on the
last day of such Competitive Facility B Bid Loan's applicable Interest Period.
The Bank shall, and is hereby authorized to, record on the schedule
attached hereto, or otherwise record in accordance with its usual practice, the
date and amount of each Competitive Facility B Bid Loan made by it and the date
and amount of each principal payment hereunder, provided, however, that any
failure to so record shall not affect the Borrower's Obligations under this
Note.
This Note is one of the Competitive Facility B Bid Notes issued
pursuant to, and is entitled to the benefits of, the Credit Agreement dated as
of November 17, 2000, among the Borrower, Bank of America, N.A., as
Administrative Agent, and Banks and other Persons party thereto, including the
Bank, to which Agreement, as it may be amended from time to time, reference is
hereby made for a statement of the terms and conditions under which this Note
may be prepaid or its maturity date accelerated. Capitalized terms used herein
and not otherwise defined herein are used with the meanings attributed to them
in the Agreement.
OREGON LEGAL NOTICE. UNDER OREGON LAW, MOST AGREEMENTS, PROMISES AND
COMMITMENTS MADE BY US AFTER THE EFFECTIVE DATE OF THIS ACT CONCERNING LOANS
AND OTHER CREDIT EXTENSIONS WHICH ARE NOT FOR PERSONAL, FAMILY OR HOUSEHOLD
PURPOSES OR SECURED SOLELY BY THE BORROWER'S RESIDENCE MUST BE IN WRITING,
EXPRESS CONSIDERATION AND BE SIGNED BY US TO BE ENFORCEABLE. THE TERM "THIS
ACT" MEANS CHAPTER 967 OREGON LAWS 1989. THE TERM "US" MEANS THE BANK. THE
EFFECTIVE DATE OF THIS ACT IS OCTOBER 3, 1989.
B-2-1
NIKE, INC.
By:
Name:
Title:
B-2-2
SCHEDULE OF LOANS AND PAYMENTS OF PRINCIPAL
TO
NOTE (COMPETITIVE FACILITY B BID LOANS)
OF NIKE, INC.
SCHEDULE OF LOANS AND PAYMENTS OF PRINCIPAL
TO
NOTE (RATABLE FACILITY A LOANS) OF NIKE, INC.
Principal Maturity Principal
Amount of of Interest Amount Unpaid
Date Borrower Loan Period Paid Balance
____ _______ _________ ___________ _________ ________
B-2-1
EXHIBIT C
COMPETITIVE BID QUOTE REQUEST
(Section 2.3.2)
___________, 200_
To: Bank of America, N.A.,
as Administrative Agent (the "Administrative Agent")
From: NIKE, Inc. ("Borrower")
Re: Credit Agreement (as extended, renewed, amended or restated
from time to time, the "Agreement") dated as of November 17, 2000 among the
Borrower, Bank of America, N.A., as Administrative Agent, and the Banks and
other Persons party thereto
Borrower hereby gives notice pursuant to Section 2.3.2 of the Agreement
that it requests Competitive Bid Quotes offering to make [Competitive
Facility A Bid Loans] [Competitive Facility B Bid Loans] as follows:
Borrowing Date: , 200_
Principal Amount 1 Interest Period 2
$____________ ____________
Such Competitive Bid Quotes should offer [a Competitive Bid Margin] [an
Absolute Rate].
Upon acceptance by the undersigned of any or all of the Competitive Bid
Advances offered by Banks in response to this request, the undersigned shall
be deemed to affirm as of such date the representations and warranties made
in the Agreement to the extent specified in Article IV thereof. Capitalized
terms used herein have the meanings assigned to them in the Agreement.
________________________
1 Amount must be at least $5,000,000 and an integral multiple of $1,000,000.
2 One, two, three or six months (Eurodollar Auction) or at least 7 and up to
183 days (Absolute Rate Auction), subject to the provisions of the
definitions of Eurodollar Interest Period and Absolute Rate Interest
Period may not after the Applicable Termination Date.
C-1
NIKE, Inc.
By:
Name:
Title:
C-2
EXHIBIT D
INVITATION FOR COMPETITIVE BID QUOTES
(Section 2.3.3)
__________ , 200_
To: [Name of Bank]
Re: Invitation for Competitive Bid Quotes to
NIKE, Inc. (the "Borrower")
Pursuant to Section 2.3.3 of the Credit Agreement dated as of November
17, 2000, (as extended, renewed, amended or restated from time to time, the
"Agreement") among the Borrower, the Banks and other Persons party thereto, and
the undersigned, as Administrative Agent, we are pleased on behalf of the
Borrower to invite you to submit Competitive Bid Quotes offering to make
[Competitive Facility A Bid Loans] [Competitive Facility B Bid Loans] to the
Borrower as follows:
Borrowing Date: , 200_
Principal Amount Interest Period
$____________ ____________
Such Competitive Bid Quotes should offer [a Competitive Bid Margin] [an
Absolute Rate]. Your Competitive Bid Quote must comply with Section 2.3.4 of
the Agreement and the foregoing terms on which the Competitive Bid Quote
Request was made. Capitalized terms used herein have the meanings assigned to
them in the Agreement.
Please respond to this invitation by no later than 9:00 a.m. San
Francisco time on _______, 200_.
BANK OF AMERICA, N.A.,
as Administrative Agent
By:
Authorized Officer
D-1
EXHIBIT E
COMPETITIVE BID QUOTE
(Section 2.3.4)
____________, 200_
To: Bank of America, N.A., as Administrative Agent
Attn: _______________
Re: Competitive Bid Quote to NIKE, Inc. (the "Borrower")
In response to your invitation on behalf of the Borrower dated
___________, 20__, we hereby make the following Competitive Bid quote pursuant
to Section 2.3.4 of the Credit Agreement hereinafter referred to and on the
following terms:
1. Quoting Bank: _______________
2. Person to contact at Quoting Bank: _______________
3. Borrowing Date: __ , 200 1
4. We hereby offer to make [Competitive Facility A Bid Loans] [Competitive
Facility B Bid Loans] in the following principal amounts, for the
following Interest Periods and at the following rates:
Principal Interest [Competitive [Absolute Minimum or
Amount 2 Period 3 Bid Margin 4] Rate 5] Maximum Amount 6
________ _________ ______________ __________ ________________
$
________________________
1 As specified in the related Invitation.
2 Principal amount bid fo reach Interest Period may not exceed principal amount
requested. Bids must be made for at least $5,000,000 and an integral multiple
of $1,000,000.
3 One, two, three or six months at least 7 and up to 183 days, as specified
in the related Invitation. The Interest Period may not end after the
Applicable Termination Date.
4 Competitive Bid Margin over or under the Eurodollar Base Rate determined for
the applicable Interest Period. Specify percentage (rounded to the nearest
1/1000 of 1%) and specify whether "PLUS" or "MINUS."
5 Specify rate of interest per annum (rounded to the nearest 1/1000 of 1%).
6 Specify minimum or maximum amount which the Borrower may accept (see Section
2.3.4(b)(v)).
E-1
We understand and agree that the offer(s) set forth above, subject to
the satisfaction of the applicable conditions set forth in the Credit
Agreement, dated as of November 17, 2000 (as extended, renewed, amended or
restated from time to time), among the Borrower, the Banks and other Persons
listed on the signature pages thereof, and yourselves, as Administrative Agent,
irrevocably obligates us to make [Competitive Facility A Bid Loans]
[Competitive Facility B Bid Loans] for which any offer(s) are accepted, in
whole or in part.
Very truly yours,
[NAME OF BANK]
Dated: , 200_ By:
Authorized Officer
E-2
EXHIBIT F
BORROWER COUNSEL OPINION
November 17, 2000
To the Administrative Agent and Banks who are parties to the
Credit Agreement described below:
Re: Opinion of Counsel
Ladies and Gentlemen:
I serve as General Counsel of NIKE, Inc., an Oregon corporation (the
"Borrower"). In that capacity, I provide this Opinion Letter in connection
with the Credit Agreement dated as of November 17, 2000 among the Borrower,
Bank of America, N.A., as Administrative Agent, and the Banks named therein,
providing for loans in an aggregate principal amount not exceeding
$1,250,000,000 at any one time outstanding, and the Ratable Notes, Competitive
Facility A Bid Notes, and Competitive Facility B Bid Notes executed in
connection therewith (collectively, the "Agreement"). Capitalized terms used
in this Opinion Letter are defined as set forth in the Agreement or the Accord
(see below).
This Opinion Letter is governed by, and shall be interpreted in
accordance with, the Legal Opinion Accord (the "Accord") of the ABA Section of
Business Law (1991). As a consequence, it is subject to a number of
qualifications, exceptions, definitions, limitations on coverage and other
limitations, all as more particularly described in the Accord, and this Opinion
Letter should be read in conjunction therewith. The Law covered by the
opinions expressed herein is limited to the Federal Laws of the United States
and the Law of the State of Oregon. This Opinion Letter is limited to matters
about which I possess Actual Knowledge.
Based on and subject to the foregoing, I am of the opinion that:
1. The Agreement is enforceable against the Borrower.
2. Execution and delivery by the Borrower of, and performance of its
agreements in, the Agreement do not (i) violate its Constituent Documents, (ii)
breach or result in a default under any existing obligation of the Borrower, or
result in or require the creation or imposition of any Lien, under any contract
filed by the Borrower with the U.S. Securities and Exchange Commission, or
(iii) breach or otherwise violate any existing obligation of the Borrower under
any Court Order.
3. Execution and delivery by the Borrower of, and performance by the
Borrower of its agreements in, the Agreement do not violate applicable
provisions of statutory law or regulation.
F-1
4. There are no actions or proceedings against the Borrower or any of
its Subsidiaries, pending, or overtly threatened in writing, before any court,
governmental agency or arbitrator which (a) seek to affect the enforceability
of the Agreement, or (b) would would result in a material adverse effect on the
business or financial condition of the Borrower.
The General Qualifications apply to the opinions set forth in paragraphs
1 and 3 above and the Other Common Qualifications apply to all of the opinions
set forth above. This Opinion Letter may be relied upon only by you and your
assignees and the Banks in connection with the Transaction and may not, without
our prior written consent, be used or relied upon by you or any other person
for any purpose whatsoever, except to the extent authorized in the Accord.
Very truly yours,
Xxxxx X. Xxxxxx
F-2
EXHIBIT G
RATABLE BORROWING NOTICE
Date: ___________, 200
To: Bank of America, N.A. as Administrative Agent for the Banks
parties to the Credit Agreement dated as of November 17, 2000 (as
extended, renewed, amended or restated from time to time, the
"Credit Agreement") among NIKE, Inc., the Banks and other Persons
party thereto, and Bank of America, N.A., as Administrative Agent
Ladies and Gentlemen:
The undersigned, NIKE, Inc. (the "Borrower"), refers to the Credit
Agreement, the terms defined therein being used herein as therein defined, and
hereby gives you notice irrevocably, pursuant to Section 2.2.3. of the Credit
Agreement, of the [Ratable Facility A Advance] [Ratable Facility B Advance]
specified below:
(i) The Business Day of the proposed Ratable Advance is ______, 200_.
(ii) The aggregate amount of the proposed Ratable Advance is $______.
(iii) The Advance shall be a [Eurodollar Facility A Ratable Advance]
[Eurodollar Facility B Ratable Advance] [Floating Rate Facility A
Advance] [Floating Rate Facility B Advance].
[(iv) The duration of the Interest Period of the [Eurodollar Facility A
Ratable Advance] [Eurodollar Facility B Ratable Advance] shall be
___ month[s].]
The undersigned hereby certifies that the following statements are true
on the date hereof, and will be true on the date of the proposed Ratable
Advance, before and after giving effect thereto and to the application of the
proceeds therefrom.
(a) the representations and warranties contained in Article V of the
Credit Agreement are true and correct as though made on and as of such date
except for changes in the Schedules hereto reflecting transactions permitted by
this Agreement;
(b) no Default or Unmatured Default has occurred and is continuing, or
would result from such proposed Ratable Advance; and
(c) The proposed Ratable Advance will not cause the aggregate principal
amount of all outstanding [Facility A Loans to exceed the combined Facility A
Commitments of the Facility A Banks] [Facility B Loans to exceed the combined
Facility B Commitments of the Facility B Banks].
G-1
NIKE, Inc.
By:
Name:
Title:
X-0
XXXXXXX X
XXXXXX XX XXXXXXXXXX/XXXXXXXXXXXX
Date:______________, 200_
To: Bank of America, N.A. as Administrative Agent for the Banks
parties to the Credit Agreement dated as of November 17, 2000 (as
extended, renewed, amended or restated from time to time, the
"Credit Agreement") among NIKE, Inc., the Banks and other Persons
party thereto, and Bank of America, N.A., as Administrative Agent
Ladies and Gentlemen:
The undersigned, NIKE, Inc. (the "Borrower"), refers to the Credit
Agreement, the terms defined therein being used herein as therein defined, and
hereby gives you notice irrevocably, pursuant to Section 2.2.4. of the Credit
Agreement, of the [conversion] [continuation] of the [Facility A Ratable
Advance] [Facility B Ratable Advance] specified below:
(i) The Business Day of the proposed Conversion/Continuation Date is
_____________, 200_.
(ii) The aggregate amount of the Advance to be [converted] [continued]
is $________.
(iii) The Advance shall be [converted into] [continued as] a
[Eurodollar Facility A Ratable Advance] [Eurodollar Facility B
Ratable Advance] [Floating Rate Facility A Advance] [Floating
Rate Facility B Advance].
[(iv) The duration of the Interest Period of the [Eurodollar Facility A
Ratable Advance] [Eurodollar Facility B Ratable Advance] included
in the [conversion] [continuation] shall be ___ month[s].]
NIKE, Inc.
By:
Name:
Title:
H-1
EXHIBIT I
COMPLIANCE CERTIFICATE
To: The Banks parties to the
Credit Agreement Described Below
This Compliance Certificate is furnished pursuant to that certain Credit
Agreement dated as of November 17, 2000, among NIKE, Inc., the Banks and other
Persons party thereto, and Bank of America, N.A., as Administrative Agent for
the Banks (as extended, renewed, amended or restated from time to time, the
"Agreement"). Unless otherwise defined herein, the terms used in this
Compliance Certificate have the meanings ascribed thereto in the Agreement.
THE UNDERSIGNED HEREBY CERTIFIES THAT:
1. I am the duly elected ______________ of the Borrower;
2. I have reviewed the terms of the Agreement and I have made, or
have caused to be made under my supervision, a detailed review of the
transactions and conditions of the Borrower and its Subsidiaries during the
accounting period covered by the attached financial statements;
3. The examinations described in paragraph 2 did not disclose, and I
have no knowledge of, the existence of any condition or event which constitutes
a Default or Unmatured Default during or at the end of the accounting period
covered by the attached financial statements or as of the date of this
Certificate, except as set forth below; and
4. Schedule I attached hereto sets forth financial data and
computations evidencing the Borrower's compliance with certain covenants of the
Agreement, all of which data and computations are true, complete and correct.
Described below are the exceptions, if any, to paragraph 3 by listing,
in detail, the nature of the condition or event, the period during which it has
existed and the action which the Borrower has taken, is taking, or proposes to
take with respect to each such condition or event:
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
I-1
The foregoing certifications, together with the computations set forth
in Schedule I hereto and the financial statements delivered with this
Certificate in support hereof, are made and delivered this ___ day of _____,
200__.
By:
Name:
I-2
SCHEDULE "I" TO COMPLIANCE CERTIFICATE
Schedule of Compliance as of ______, 200_, with
Provisions of Sections 6.12, 6.15(h), 6.15(i) and 6.17 of
the Agreement
Maximum Permitted Actual
_________________ _______
I. Section 6.12: $_________ $________
Aggregate book value of the assets (See attached worksheet)
disposed of by the Borrower and its
Subsidiaries during the past twelve
months pursuant to Section 6.12(ii)
II. Section 6.15(h): $100,000,000 $_________
Aggregate amount of Indebtedness
secured by Liens, not otherwise
permitted under Section 6.15, on
property other than accounts receivable
and inventory
Section 6.15(i): $100,000,000 $_________
Aggregate amount of obligations of the
Borrower subject to Liens filed in
connection with the construction of, and
additions to, the Borrower's
headquarters in Beaverton, Oregon
III. Section 6.17: Leverage Ratio
(Indebtedness to net worth) 1.00 to 1.00 ____ to 1.00
____________
I-3
NIKE, Inc.
Compliance Certificate - Covenants Worksheet
Page 2
I. Section 6.12:
Sale of Assets:
A. Amount Permitted
Consolidated Assets (at book value)
as of ___________, 200__: $
x 0.20
Amount permitted during period beginning
________ and ending __________: $
B. Disposals of Fixed Assets
(per Statement of Cash Flows
during period beginning
and ending : $
(A) must be greater than/equal to (B)
In Compliance?
(Yes or No)
II. Section 6.15:
Liens:
A. Aggregate amount of Indebtedness secured by Liens
permitted under Section 6.15(h) of the Agreement: $___________
B. Maximum amount permitted under Section 6.15(h): $ 100,000,000
C. Aggregate amount of obligations of the Borrower subject to
Liens filed in connection with the construction of, and additions
to, the Borrower's headquarters in Beaverton, Oregon: $___________
D. Maximum amount permitted under Section 6.15(i): $100,000,000
(A) must be less than/equal to (B); (C) must be less than/equal to (D)
In Compliance?
(Yes or No)
I-4
III. Section 6.17
Leverage Ratio:
A. Indebtedness $
B. Net Worth $
C. INDEBTEDNESS/NW (A/B) :1.00
Maximum Ratio Permitted 1.00:1.00
In Compliance?
(Yes or No)
I-5
EXHIBIT J
ASSIGNMENT AGREEMENT
This Assignment Agreement (this "Assignment Agreement") between
(the "Assignor") and (the "Assignee") is dated as of
, 200 . The parties hereto agree as follows:
1. PRELIMINARY STATEMENT. The Assignor is a party to a Credit
Agreement, dated as of November 17, 2000 (which, as it may be amended,
modified, renewed or extended from time to time, is herein called the "Credit
Agreement"), among NIKE, Inc. (the "Borrower"), the Banks and other Persons
party thereto, and Bank of America, N.A., as Administrative Agent. Capitalized
terms used herein and not otherwise defined herein shall have the meanings
attributed to them in the Credit Agreement. The Assignor desires to assign to
the Assignee, and the Assignee desires to assume from the Assignor, an interest
(the "Purchased Percentage") in the [Facility A Commitment] [and] [Facility B
Commitment] of the Assignor such that after giving effect to the assignment and
assumption hereinafter provided, [the Facility A Commitment of the Assignee
shall equal $ and its percentage of the Facility A Commitments
shall equal ___%] [and] [the Facility B Commitment of the Assignee shall equal
$ and its percentage of the Facility B Commitments shall equal
___%].
2. ASSIGNMENT. For and in consideration of the assumption of
obligations by the Assignee set forth in Section 3 hereof and the other
consideration set forth herein, and effective as of the Effective Date (as
hereinafter defined), the Assignor does hereby sell, assign, transfer and
convey all of its right, title and interest in and to the Purchased Percentage
of (i) the [Facility A Commitment] [and] [Facility B Commitment] of the
Assignor (as in effect on the Effective Date), (ii) [any Facility A Loan
constituting part of a Ratable Facility A Advance [or part of any Competitive
Facility A Bid Advance]] [and] [any Facility B Loan constituting part of a
Ratable Facility B Advance [or part of any Competitive Facility B Bid Advance]]
outstanding on the Effective Date, and (iii) the Credit Agreement and the other
Loan Documents [other than [the Competitive Facility A Bid Note] [and] [the
Competitive Facility B Bid Note] payable to Assignor (the "Transferred
Documents")]. Pursuant to Section 13.3 of the Credit Agreement, on and after
the Effective Date the Assignee shall have the same rights, benefits and
obligations as the Assignor had under the [Loan Documents] [Transferred
Documents] with respect to the Purchased Percentage of the [Loan Documents]
[Transferred Documents], all determined as if the Assignee had ___% of the
[Facility A Commitments] [Facility B Commitments]. The "Effective Date" shall
be the later of _______, 200__ or two Business Days (or such shorter period
agreed to by the Administrative Agent) after a Notice of Assignment
substantially in the form of Exhibit 1 attached hereto and any consents
substantially in the form of Exhibit 2 attached hereto required to be delivered
to the Administrative Agent by Section 13.3 of the Credit Agreement have been
delivered to the Administrative Agent. In no event will the Effective Date
occur if the payments required to be made by the Assignee to the Assignor on
the Effective Date under Section 4 hereof are not made on the proposed
J-1
Effective Date. The Assignor will notify the Assignee of the proposed
Effective Date on the Business Day prior to the proposed Effective Date.
3. ASSUMPTION. For and in consideration of the assignment of rights
by the Assignor set forth in Section 2 hereof and the other consideration set
forth herein, and effective as of the Effective Date, the Assignee does hereby
accept that assignment, and assume and covenant and agree fully, completely and
timely to perform, comply with and discharge, each and all of the obligations,
duties and liabilities of the Assignor under the Credit Agreement which are
assigned to the Assignee hereunder, which assumption includes, without
limitation, the obligation to fund the unfunded portion of the [Facility A
Commitment] [and] [Facility B Commitment] in accordance with the provisions set
forth in the Credit Agreement as a "Bank" under the Credit Agreement with [
% of the [Facility A Commitments] [and] [ % of the Facility B Commitments].
The Assignee agrees to be bound by all provisions relating to "Banks" and
"Applicable Banks" under and as defined in the Credit Agreement, including,
without limitation, provisions relating to the dissemination of information and
the payment of indemnification.
4. PAYMENTS OBLIGATIONS. On and after the Effective Date, the
Assignee shall be entitled to receive from the Administrative Agent all
payments of principal, interest and fees with respect to the Purchased
Percentage of the Assignor's [Facility A Commitment] [and] [Facility B
Commitment] and [Facility A Loans] [and] [Facility B Loans] [constituting part
of any [Ratable Facility A Advances] [Ratable Facility B Advances]]. The
Assignee shall advance funds directly to the Administrative Agent with respect
to all such Loans and reimbursement payments made on or after the Effective
Date. In consideration for the sale and assignment of such Loans hereunder,
(i) with respect to all Floating Rate Loans made by the Assignor outstanding on
the Effective Date, the Assignee shall pay the Assignor, on the Effective
Date,[ an amount equal to the Purchased Percentage of all such Floating Rate
Loans; and (ii) with respect to each Fixed Rate Loan made by the Assignor
outstanding on the Effective Date, (a) on the last day of the Interest Period
therefor or (b) on such earlier date agreed to by the Assignor and the Assignee
or (c) on the date on which any such Fixed Rate Loan either becomes due (by
acceleration or otherwise) or is prepaid (the date as described in the
foregoing clauses (a), (b) or (c) being hereinafter referred to as the "Payment
Date")]*, the Assignee shall pay the Assignor an amount equal to the Purchased
Percentage of such Fixed Rate Loan. On and after the Effective Date, the
Assignee will also remit to the Assignor any amounts of interest on Loans
[constituting part of any [Ratable Facility A Advances] [Ratable Facility B
Advances]] and fees received from the Administrative Agent which relate to the
Purchased Percentage of [Facility A Loans] [and] [Facility B Loans] made by the
Assignor accrued for periods prior to the Effective Date, in the case of
Floating Rate Loans, or the Payment Date, in the case of Fixed Rate Loans, and
not heretofore paid by the Assignee to the Assignor. In the event interest for
the period from the Effective Date to but not including the Payment Date is not
paid by the Borrower with respect to any Fixed Rate Loan sold by the Assignor
to the Assignee hereunder, the Assignee shall pay to the Assignor interest for
such period on such Fixed Rate Loan at the applicable rate provided by the
Credit Agreement. In the event that either party hereto receives any payment
___________________
* Assignor and Assignee may substitute their own terms here.
J-2
to which the other party hereto is entitled under this Assignment Agreement,
then the party receiving such amount shall promptly remit it to the other party
hereto.
5. CREDIT DETERMINATION; LIMITATIONS ON ASSIGNOR'S LIABILITY. The
Assignee represents and warrants to the Assignor that it is capable of making
and has made and shall continue to make its own credit determinations and
analysis based upon such information as the Assignee deemed sufficient to enter
into the transaction contemplated hereby and not based on any statements or
representations by the Assignor. It is understood and agreed that the
assignment and assumption hereunder are made without recourse to the Assignor
and that the Assignor makes no representation or warranty of any kind to the
Assignee and shall not be responsible for (i) the due execution, legality,
validity, enforceability, genuineness, sufficiency or collectibility of the
Credit Agreement or any other Loan Document, including without limitation,
documents granting the Assignor and the other Banks a security interest in
assets of the Borrower, (ii) any representation, warranty or statement made in
or in connection with any of the Loan Documents, (iii) the financial condition
or creditworthiness of the Borrower, (iv) the performance of or compliance with
any of the terms or provisions of any of the Loan Documents, (v) inspecting any
of the property, books or records of the Borrower, or (vi) the validity,
enforceability, perfection, priority, condition, value or sufficiency of any
collateral securing or purporting to secure the Loans. Neither the Assignor
nor any of its officers, directors, employees, agents or attorneys shall be
liable for any mistake, error of judgment, or action taken or omitted to be
taken in connection with the Loans or the Loan Documents, except for its or
their own bad faith or willful misconduct.
6. INDEMNITY. The Assignee agrees to indemnify and hold the Assignor
harmless against any and all losses, costs and expenses (including, without
limitation, reasonable attorneys' fees) and liabilities incurred by the
Assignor in connection with or arising in any manner from the Assignee's
performance or non-performance of obligations assumed under this Assignment
Agreement.
7. SUBSEQUENT ASSIGNMENTS. After the Effective Date, the Assignee
shall have the right pursuant to Section 13.3 of the Credit Agreement to assign
the rights which are assigned to the Assignee hereunder to any Person, provided
that (i) any such subsequent assignment does not violate any of the terms and
conditions of the Loan Documents or any law, rule, regulation, order, writ,
judgment, injunction or decree and that any consent required under the terms of
the Loan Documents has been obtained, and (ii) the Assignee is not thereby
released from any of its obligations to the Assignor hereunder.
J-3
8. REDUCTIONS OF COMMITMENT. If any reduction in the [Facility A
Commitments] [Facility B Commitments] occurs between the date of this
Assignment Agreement and the Effective Date, the percentage of the [Facility A
Commitments] [Facility B Commitments] assigned to the Assignee shall remain the
percentage specified in Section 1 hereof and the dollar amount of the [Facility
A Commitment] [Facility B Commitment] of the Assignee shall be recalculated
based on the reduced [Facility A Commitments] [Facility B Commitments].
9. ENTIRE AGREEMENT. This Assignment Agreement and the attached
consent embody the entire agreement and understanding between the parties
hereto and supersede all prior agreements and understandings between the
parties hereto relating to the subject matter hereof.
10. GOVERNING LAW. This Assignment Agreement shall be governed by
the internal law, and not the law of conflicts, of the State of California.
11. NOTICES. Notices shall be given under this Assignment Agreement
in the manner set forth in the Credit Agreement. For the purpose hereof, the
addresses of the parties hereto (until notice of a change is delivered) shall
be the address set forth under each party's name on the signature pages hereof.
J-4
IN WITNESS WHEREOF, the parties hereto have executed this Assignment
Agreement by their duly authorized officers as of the date first above written.
[NAME OF ASSIGNOR]
By:
Name:
Title:
Notice Address:
[NAME OF ASSIGNEE]
By:
Name:
Title:
Notice Address:
J-5
EXHIBIT 1 to EXHIBIT J
NOTICE
OF ASSIGNMENT
To: NIKE, Inc.
BANK OF AMERICA, N.A.
From: [NAME OF ASSIGNOR]
[NAME OF ASSIGNEE]
, 200_
1. We refer to that Credit Agreement, dated as of November 17, 2000
(which, as it may be amended, modified, renewed or extended from time to time,
is herein called the "Credit Agreement") among NIKE, Inc. (the "Borrower"), the
Banks and other Persons party thereto, including ____________ (the "Assignor"),
and Bank of America, N.A., as administrative agent for the Banks (as such, the
"Administrative Agent"). Capitalized terms used herein and in any consent
delivered in connection herewith and not otherwise defined herein or in such
consent shall have the meanings attributed to them in the Credit Agreement.
2. This Notice of Assignment (this "Notice") is given and delivered to
the Borrower and the Administrative Agent pursuant to Section 13.3.2 13.3.3 of
the Credit Agreement.
3. The Assignor and _________ (the "Assignee") have entered into an
Assignment Agreement, dated as of , 200 , pursuant to which,
among other things, the Assignor has sold, assigned, delegated and transferred
to the Assignee, and the Assignee has purchased, accepted and assumed from the
Assignor, an interest in and to all of the Assignor's rights and obligations
under the Credit Agreement such that Assignee's percentage of the [Facility A
Commitments] [Facility B Commitments] shall equal %, effective as of the
"Effective Date" (as hereinafter defined). The "Effective Date" shall be the
later of __ , 200 or two Business Days (or such shorter period as
agreed to by the Administrative Agent) after this Notice of Assignment and any
consents and fees required by Sections 13.3.1, 13.3.2 and 13.3.3 of the Credit
Agreement have been delivered to the Administrative Agent, provided that the
Effective Date shall not occur if any condition precedent agreed to by the
Assignor and the Assignee has not been satisfied.
J-6
4. As of this date, the percentage of the Assignor in the [Facility A
Commitments] [Facility B Commitments] and [Facility A Ratable Advances]
[Facility B Ratable Advances] is %____%. As of the Effective Date, the
percentage of the Assignor in the [Facility A Commitments] [Facility B
Commitments] and [Facility A Ratable Advances] [Facility B Ratable Advances]
will be ____% (as such percentage may be reduced or increased by assignments
which become effective prior to the assignment to the Assignee becoming
effective) and the percentage of the Assignee in the [Facility A Commitments]
[Facility B Commitments] and [Facility A Ratable Advances] [Facility B Ratable
Advances] will be ____%.
5. The Assignor and the Assignee hereby give to the Borrower and the
Administrative Agent notice of the assignment and delegation referred to
herein. The Assignor will confer with the Administrative Agent before ____,
200 to determine if the Assignment Agreement will become effective on such
date pursuant to Section 3 hereof, and will confer with the Administrative
Agent to determine the Effective Date pursuant to Section 3 hereof if it occurs
thereafter. The Assignor shall notify the Administrative Agent if the
Assignment Agreement does not become effective on any proposed Effective Date
as a result of the failure to satisfy the conditions precedent agreed to by the
Assignor and the Assignee. At the request of the Administrative Agent, the
Assignor will give the Administrative Agent written confirmation of the
occurrence of the Effective Date.
6. The Assignee hereby accepts and assumes the assignment and
delegation referred to herein and agrees as of the Effective Date (i) to
perform fully all of the obligations under the Credit Agreement which it has
hereby assumed and (ii) to be bound by the terms and conditions of the Credit
Agreement as a "Bank".
7. The Assignor and the Assignee request and agree that any payments
to be made by the Administrative Agent to the Assignor on and after the
Effective Date shall, to the extent of the assignment referred to herein, be
made entirely to the Assignee, it being understood that the Assignor and the
Assignee shall make between themselves any desired allocations.
8. The Assignor or the Assignee shall pay to the Administrative Agent
on or before the Effective Date the processing fee of $3,500 required by
Section 13.3.3 of the Credit Agreement.
9. The Assignor and the Assignee request and direct that the
Administrative Agent prepare and cause the Borrower to execute and deliver new
Notes or, as appropriate, replacement notes, to the Assignor and the Assignee
in accordance with Section 13.3.3 of the Credit Agreement. The Assignor agrees
to deliver to the Administrative Agent the relevant original Note(s) received
from it by the Borrower upon its receipt of a new Note (or Notes) in the amount
set forth above.
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10. The Assignee advises the Administrative Agent that the address
listed below is its address for notices under the Credit Agreement:
_____________________________
_____________________________
_____________________________
ASSIGNOR ASSIGNEE
By: By:
Name: Name:
Title: Title:
J-8
EXHIBIT 2 to EXHIBIT J
CONSENT AND RELEASE
TO: [NAME OF ASSIGNOR]
_____________________
_____________________
[NAME OF ASSIGNEE]
_____________________
_____________________
, 200__
1. We acknowledge receipt from (the
"Assignor") and ____________ (the "Assignee") of the Notice of Assignment,
dated as of , 200 (the "Notice"). Capitalized terms used
herein and not otherwise defined herein shall have the meanings attributed to
them in the Notice.
2. In consideration of the assumption by the Assignee of the
obligations of the Assignor as referred to in the Notice, the Borrower hereby
(i) irrevocably consents, as required by Section 13.3 of the Credit Agreement,
to the assignment and delegation referred to in the Notice and (ii) as of the
Effective Date, irrevocably reduces the percentage of the Assignor in the
[Facility A Commitments] [Facility B Commitments] by the percentage of the
[Facility A Commitments] [Facility B Commitments] assigned to the Assignee and
releases the Assignor from all of its obligations to the Borrower under the
Loan Documents to the extent that such obligations have been assumed by the
Assignee.
3. The Borrower directs the Administrative Agent to prepare for
issuance by the Borrower new Notes as requested by the Assignor and the
Assignee in the Notice.
4. In consideration of the assumption by the Assignee of the
obligations of the Assignor as referred to in the Notice, the Administrative
Agent hereby (i) irrevocably consents, as required by Section 13.3 of the
Credit Agreement, to the assignment and delegation referred to in the Notice,
(ii) as of the Effective Date, irrevocably releases the Assignor from its
obligations to the Administrative Agent under the Loan Documents to the extent
that such obligations have been assumed by the Assignee, and (iii) agrees that,
as of the Effective Date, the Administrative Agent shall consider the Assignee
as a "Bank" for all purposes under the Loan Documents to the extent of the
assignment and delegation referred to in the Notice.
NIKE, INC. BANK OF AMERICA, N.A.,
as Administrative Agent
By: By:
Name: Name:
Title: Title:
J-9
EXHIBIT K
FACILITY B TERM LOAN BORROWING NOTICE
Date: ___________, 200_
To: Bank of America, N.A. as Administrative Agent for the Banks
parties to the Credit Agreement dated as of November 17, 2000 (as
extended, renewed, amended or restated from time to time, the
"Credit Agreement") among NIKE, Inc., Bank of America, N.A., as
Administrative Agent, and the Banks and other Persons party
thereto.
Ladies and Gentlemen:
The undersigned, NIKE, Inc., (the "Company") refers to the Credit
Agreement, the terms defined therein being used herein as therein defined, and
hereby gives you notice irrevocably, pursuant to Section 2.8.2 of the Credit
Agreement, of the Borrowing specified below:
1. The Business Day of the proposed Borrowing Date: ____________,
200_.
2. The aggregate principal amount of the Facility B Term Loans shall
be $______________.
3. The Borrower has selected the [Eurodollar Rate] [Floating Rate]
for the Facility B Term Loans.
4. [If applicable:] The duration of the Interest Period for the
Facility B Term Loans shall be month[s].
The undersigned hereby certifies that the following statements are true
on the date hereof, and will be true on the date on which the Facility B Term
Loans are made, before and after giving effect thereto and to the application
of the proceeds therefrom:
(a) the representations and warranties of the Borrower contained in
Article V of the Credit Agreement are true and correct as though made on and as
of such date (except to the extent such representations and warranties relate
to an earlier date, in which case they are true and correct as of such date);
(b) no Default or Event of Default has occurred and is continuing, or
would result from the making of the Facility B Term Loans; and
(c) the aggregate principal amount of the Facility B Term Loans shall
not exceed the sum of (i) the aggregate principal amount of the Facility B
Loans which will be outstanding as of the opening of business on the Facility B
Termination Date, plus (ii) the aggregate amount available to be borrowed from
the Facility B Banks as of the opening of business on the Facility B
Termination Date.
K-1
NIKE, INC.
By: _______________________________
Name:
Title:
K-2
SCHEDULE 1
SUBSIDIARIES
Name of Subsidiary Addresses Ownership
Schedule 1-1
SCHEDULE 2
LIENS
NONE
Schedule 2-1
SCHEDULE 3
COMMITMENTS
AND PRO RATA SHARES
Facility A Commitments
Bank Facility A Commitment Facility A Pro Rata Share
Bank of America, N.A. $45,000,000.00 9.0%
ABN-AMRO Bank N.V. $20,000,000.00 4.0%
Banca Commerciale Italiana $10,000,000.00 2.0%
Banca Intesa $10,000,000.00 2.0%
Bank One, NA $38,000,000.00 7.6%
Royal Bank of Canada
(RBC Securities Corp.) $20,000,000.00 4.0%
Citicorp USA, Inc. $45,000,000.00 9.0%
Commerzbank AG $34,000,000.00 6.8%
Deutsche Bank AG $20,000,000.00 4.0%
First Union National Bank $20,000,000.00 4.0%
Fleet National Bank $34,000,000.00 6.8%
HSBC Bank USA $38,000,000.00 7.6%
Industrial Bank of Japan, Ltd. $10,000,000.00 2.0%
The Northern Trust Company $14,000,000.00 2.8%
Bank of Nova Scotia $20,000,000.00 4.0%
State Street Bank & Trust Co. $20,000,000.00 4.0%
Bank of Tokyo-Mitsubishi, Ltd. $38,000,000.00 7.6%
U.S. Bank National Association $20,000,000.00 4.0%
Xxxxx Fargo Bank, N.A. $14,000,000.00 2.8%
Westdeutsche Landesbank
Girozentrale $20,000,000.00 4.0%
Westpac Banking Corp. $10,000,000.00 2.0%
Total $500,000,000.00 100.0%
Schedule 3-1
Facility B Commitments
Bank Facility B Commitment Facility B Pro Rata Share
Bank of America, N.A. $67,500,000.00 9.0%
ABN-AMRO Bank N.V. $30,000,000.00 4.0%
Banca Commerciale Italiana $15,000,000.00 2.0%
Banca Intesa $15,000,000.00 2.0%
Bank One, NA $57,000,000.00 7.6%
Royal Bank of Canada
(RBC Securities Corp.) $30,000,000.00 4.0%
Citicorp USA, Inc. $67,500,000.00 9.0%
Commerzbank AG $51,000,000.00 6.8%
Deutsche Bank AG $30,000,000.00 4.0%
First Union National Bank $30,000,000.00 4.0%
Fleet National Bank $51,000,000.00 6.8%
HSBC Bank USA $57,000,000.00 7.6%
Industrial Bank of Japan, Ltd. $15,000,000.00 2.0%
The Northern Trust Co. $21,000,000.00 2.8%
Bank of Nova Scotia $30,000,000.00 4.0%
State Street Bank & Trust Co. $30,000,000.00 4.0%
Bank of Tokyo-Mitsubishi, Ltd. $57,000,000.00 7.6%
U.S. Bank National Association $30,000,000.00 4.0%
Xxxxx Fargo Bank, N.A. $21,000,000.00 2.8%
Westdeutsche Landesbank
Girozentrale $30,000,000.00 4.0%
Westpac Banking Corp. $15,000,000.00 2.0%
Total $750,000,000.00 100.0%
SCHEDULE 4
EURODOLLAR AND DOMESTIC LENDING OFFICES
