Exhibit 10.1
THREE YEAR CREDIT AGREEMENT
Dated as of November 14, 2002
OMNICOM FINANCE INC., a Delaware corporation ("OFI"), OMNICOM CAPITAL
INC., a Connecticut corporation ("OCI"), and OMNICOM FINANCE PLC, a corporation
organized under the laws of England and Wales ("OFP"; OFI, OCI and OFP are each
a "Borrower" and collectively, the "Borrowers"), OMNICOM GROUP INC., a New York
corporation (the "Guarantor"), the banks, financial institutions and other
institutional lenders (the "Initial Lenders") listed on the signature pages
hereof, XXXXXXX XXXXX XXXXXX INC. and ABN AMRO INCORPORATED, as lead arrangers
and book managers, ABN AMRO BANK N.V., as syndication agent, HSBC BANK USA,
WACHOVIA BANK, NATIONAL ASSOCIATION and SOCIETE GENERALE, as documentation
agents, and CITIBANK, N.A. ("Citibank"), as administrative agent (the "Agent")
for the Lenders (as hereinafter defined), agree as follows:
ARTICLE I
DEFINITIONS AND ACCOUNTING TERMS
SECTION 1.01. Certain Defined Terms. As used in this Agreement, the
following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):
"Advance" means an advance by a Lender to a Borrower as part of a
Borrowing and refers to a Base Rate Advance or a Eurocurrency Rate Advance
(each of which shall be a "Type" of Advance).
"Affiliate" means, as to any Person, any other Person (other than an
individual) that, directly or indirectly, controls, is controlled by or is
under common control with such Person; provided that, for purposes of
Section 5.01(h), an Affiliate of a Borrower shall include any Person that
(x) is a director or officer of such Person or (y) has the possession,
direct or indirect, of the power to vote 5% or more of the Voting Stock of
such Person. A Person shall be deemed to control another Person if such
Person possesses, directly or indirectly, the power to direct or cause the
direction of the management and policies of such Person, whether through
the ownership of Voting Stock, by contract or otherwise.
"Agent's Account" means (a) in the case of Advances denominated in
Dollars, the account of the Agent maintained by the Agent at Citibank at
its office at 000 Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Account No.
00000000, Attention: Bank Loan Syndications, (b) in the case of Advances
denominated in any Committed Currency, the account of the Sub-Agent
designated in writing from time to time by the Agent to the Borrowers and
the Lenders for such purpose and (c) in any such case, such other account
of the Agent as is designated in writing from time to time by the Agent to
the Borrowers and the Lenders for such purpose.
"Applicable Lending Office" means, with respect to each Lender, such
Lender's Domestic Lending Office in the case of a Base Rate Advance and
such Lender's Eurocurrency Lending Office in the case of a Eurocurrency
Rate Advance.
"Applicable Margin" means (a) for Base Rate Advances, 0% per annum
and (b) for Eurocurrency Rate Advances, as of any date, a percentage per
annum determined by reference to the Public Debt Rating in effect on such
date as set forth below:
--------------------------------------------------------
Public Debt Rating Applicable Margin for
S&P/Xxxxx'x Eurocurrency Rate Advances
--------------------------------------------------------
Xxxxx 0
A+ or A1 or above 0.150%
--------------------------------------------------------
Level 2
A or A2 0.255%
--------------------------------------------------------
Level 3
A- or A3 0.370%
--------------------------------------------------------
Xxxxx 0
BBB+ or Baa1 0.475%
--------------------------------------------------------
Level 5
BBB or Baa2 0.700%
--------------------------------------------------------
Xxxxx 0
Xxxxx xxxx Xxxxx 0 0.750%
--------------------------------------------------------
"Applicable Percentage" means, as of any date, a percentage per annum
determined by reference to the Public Debt Rating in effect on such date as set
forth below:
--------------------------------------------------------
Public Debt Rating Applicable
S&P/Xxxxx'x Percentage
--------------------------------------------------------
Xxxxx 0
A+ or A1 or above 0.100%
--------------------------------------------------------
Level 2
A or A2 0.120%
--------------------------------------------------------
Level 3
A- or A3 0.130%
--------------------------------------------------------
Xxxxx 0
BBB+ or Baa1 0.150%
--------------------------------------------------------
Level 5
BBB or Baa2 0.175%
--------------------------------------------------------
Xxxxx 0
Xxxxx xxxx Xxxxx 0 0.250%
--------------------------------------------------------
"Applicable Utilization Fee" means, as of any date that the aggregate
Advances exceed 50% of the aggregate Commitments, a percentage per annum
determined by reference to the Public Debt Rating in effect on such date as set
forth below:
--------------------------------------------------------
Public Debt Rating Applicable
S&P/Xxxxx'x Utilization Fee
--------------------------------------------------------
Xxxxx 0
A+ or A1 or above 0.125%
--------------------------------------------------------
Level 2
A or A2 0.125%
--------------------------------------------------------
Level 3
A- or A3 0.125%
--------------------------------------------------------
Xxxxx 0
BBB+ or Baa1 0.125%
--------------------------------------------------------
Level 5
BBB or Baa2 0.125%
--------------------------------------------------------
Xxxxx 0
Xxxxx xxxx Xxxxx 0 0.250%
--------------------------------------------------------
2
"Assignment and Acceptance" means an assignment and acceptance entered
into by a Lender and an Eligible Assignee, and accepted by the Agent, in
substantially the form of Exhibit C hereto.
"Assuming Lender" has the meaning specified in Section 2.17(d).
"Assumption Agreement" has the meaning specified in Section 2.17(d)(ii).
"Bankruptcy Law" means Title 11, U.S. Code, or any similar foreign,
federal or state law for the relief of debtors.
"Base Rate" means a fluctuating interest rate per annum in effect from
time to time, which rate per annum shall at all times be equal to the highest
of:
(a) the rate of interest announced publicly by Citibank in New York,
New York, from time to time, as Citibank's base rate;
(b) the sum (adjusted to the nearest 1/4 of 1% or, if there is no
nearest 1/4 of 1%, to the next higher 1/4 of 1%) of (i) 1/2 of 1% per
annum, plus (ii) the rate obtained by dividing (A) the latest three-week
moving average of secondary market morning offering rates in the United
States for three-month certificates of deposit of major United States
money market banks, such three-week moving average (adjusted to the basis
of a year of 360 days) being determined weekly on each Monday (or, if such
day is not a Business Day, on the next succeeding Business Day) for the
three-week period ending on the previous Friday by Citibank on the basis
of such rates reported by certificate of deposit dealers to and published
by the Federal Reserve Bank of New York or, if such publication shall be
suspended or terminated, on the basis of quotations for such rates
received by Citibank from three New York certificate of deposit dealers of
recognized standing selected by Citibank, by (B) a percentage equal to
100% minus the average of the daily percentages specified during such
three-week period by the Board of Governors of the Federal Reserve System
(or any successor) for determining the maximum reserve requirement
(including, but not limited to, any emergency, supplemental or other
marginal reserve requirement) for Citibank with respect to liabilities
consisting of or including (among other liabilities) three-month Dollar
non-personal time deposits in the United States, plus (iii) the average
during such three-week period of the annual assessment rates estimated by
Citibank for determining the then current annual assessment payable by
Citibank to the Federal Deposit Insurance Corporation (or any successor)
for insuring Dollar deposits of Citibank in the United States; and
(c) 1/2 of one percent per annum above the Federal Funds Rate.
"Base Rate Advance" means an Advance denominated in Dollars that bears
interest as provided in Section 2.06(a)(i).
"Borrowing" means a borrowing consisting of simultaneous Advances of the
same Type made by each of the Lenders pursuant to Section 2.01.
"Borrowing Minimum" means, in respect of Advances denominated in Dollars,
$10,000,000, in respect of Advances denominated in Sterling, (pound)10,000,000
and, in respect of Advances denominated in Euros, (euro)10,000,000.
"Borrowing Multiple" means, in respect of Advances denominated in Dollars,
$1,000,000 in respect of Advances denominated in Sterling, (pound)1,000,000 and,
in respect of Advances denominated in Euros, (euro)1,000,000.
3
"Business Day" means a day of the year on which banks are not required or
authorized by law to close in New York City and, if the applicable Business Day
relates to any Eurocurrency Rate Advances, on which dealings are carried on in
the London interbank market and banks are open for business in London and in the
country of issue of the currency of such Eurocurrency Rate Advance (or, in the
case of an Advance denominated in Euro, on which the Trans-European Automated
Real-Time Gross Settlement Express Transfer (TARGET) System is open).
"Commitment" means as to any Lender (a) the Dollar amount set forth
opposite such Lender's name on the signature pages hereof, (b) if such Lender
has become a Lender hereunder pursuant to an Assumption Agreement, the Dollar
amount set forth in such Assumption Agreement or (c) if such Lender has entered
into any Assignment and Acceptance, the Dollar amount set forth for such Lender
in the Register maintained by the Agent pursuant to Section 9.07(d), as such
amount may be reduced pursuant to Section 2.04 or increased pursuant to Section
2.17.
"Commitment Date" has the meaning specified in Section 2.17(b).
"Commitment Increase" has the meaning specified in Section 2.17(a).
"Committed Currencies" means lawful currency of the United Kingdom of
Great Britain and Northern Ireland and Euros.
"Confidential Information" means information that a Loan Party furnishes
to the Agent or any Lender in a writing designated as confidential, but does not
include any such information that is or becomes generally available to the
public or that is or becomes available to the Agent or such Lender from a source
other than a Loan Party.
"Consolidated" refers to the consolidation of accounts in accordance with
GAAP.
"Convert", "Conversion" and "Converted" each refers to a conversion of
Advances of one Type into Advances of the other Type pursuant to Section 2.07 or
2.08.
"Debt" of any Person means, without duplication, (a) all indebtedness of
such Person for borrowed money, (b) all obligations of such Person for the
deferred purchase price of property or services (other than earn-out payment
obligations of such Person in connection with the purchase of property or
services to the extent they are still contingent), (c) all obligations of such
Person evidenced by notes, bonds, debentures or other similar instruments, (d)
all obligations of such Person created or arising under any conditional sale or
other title retention agreement with respect to property acquired by such Person
(even though the rights and remedies of the seller or lender under such
agreement in the event of default are limited to repossession or sale of such
property), (e) all obligations of such Person as lessee under leases that have
been or should be, in accordance with GAAP, recorded as capital leases, (f) all
obligations, contingent or otherwise, of such Person in respect of acceptances,
letters of credit or similar extensions of credit, (g) all obligations of such
Person in respect of Hedge Agreements, (h) all Debt of others referred to in
clauses (a) through (g) above or clause (i) below and other payment obligations
guaranteed directly or indirectly in any manner by such Person, or in effect
guaranteed directly or indirectly by such Person through an agreement (1) to pay
or purchase such Debt or to advance or supply funds for the payment or purchase
of such Debt, (2) to purchase, sell or lease (as lessee or lessor) property, or
to purchase or sell services, primarily for the purpose of enabling the debtor
to make payment of such Debt or to assure the holder of such Debt against loss,
(3) to supply funds to or in any other manner invest in the debtor (including
any agreement to pay for property or services irrespective of whether such
property is received or such services are rendered) or (4) otherwise to assure a
creditor against loss, and (i) all Debt referred to in clauses (a) through (h)
above secured by (or for which the holder of such Debt has an existing right,
contingent or otherwise, to be secured by) any Lien on property (including,
without limitation, accounts and contract rights) owned by such Person, even
though such Person has not assumed or become liable for the payment of such
Debt.
4
"Debt for Borrowed Money" of any Person means all items that, in
accordance with GAAP, would be classified as indebtedness on a Consolidated
balance sheet of such Person.
"Default" means any Event of Default or any event that would constitute an
Event of Default but for the requirement that notice be given or time elapse or
both.
"Disclosed Litigation" has the meaning specified in Section 3.01(b).
"Dollars" and the "$" sign each means lawful currency of the United States
of America.
"Domestic Lending Office" means, with respect to any Lender, the office of
such Lender specified as its "Domestic Lending Office" opposite its name on
Schedule I hereto or in the Assumption Agreement or the Assignment and
Acceptance pursuant to which it became a Lender, or such other office of such
Lender as such Lender may from time to time specify to the Borrowers and the
Agent.
"EBITDA" means, for any period, net income (or net loss) plus the sum of
(a) net interest expense, (b) income tax expense, (c) depreciation expense and
(d) amortization expense, in each case determined in accordance with GAAP for
such period.
"Effective Date" has the meaning specified in Section 3.01.
"Eligible Assignee" means (i) a Lender; (ii) an Affiliate of a Lender; and
(iii) any other Person approved by the Agent and, unless an Event of Default has
occurred and is continuing at the time any assignment is effected in accordance
with Section 9.07, the Guarantor, such approval not to be unreasonably withheld
or delayed; provided, however, that neither the Guarantor nor an Affiliate of
the Guarantor shall qualify as an Eligible Assignee.
"Environmental Action" means any action, suit, demand, demand letter,
claim, notice of non-compliance or violation, notice of liability or potential
liability, investigation, proceeding, consent order or consent agreement
relating in any way to any Environmental Law, Environmental Permit or hazardous
materials or arising from alleged injury or threat of injury to health, safety
or the environment, including, without limitation, (a) by any governmental or
regulatory authority for enforcement, cleanup, removal, response, remedial or
other actions or damages and (b) by any governmental or regulatory authority or
any third party for damages, contribution, indemnification, cost recovery,
compensation or injunctive relief.
"Environmental Law" means any federal, state, local or foreign statute,
law, ordinance, rule, regulation, code, order, judgment, decree or judicial or
agency interpretation, policy or guidance relating to pollution or protection of
the environment, health, safety or natural resources, including, without
limitation, those relating to the use, handling, transportation, treatment,
storage, disposal, release or discharge of hazardous materials.
"Environmental Permit" means any permit, approval, identification number,
license or other authorization required under any Environmental Law.
"Equivalent" in Dollars of any Committed Currency on any date means the
equivalent in Dollars of such Committed Currency determined by using the quoted
spot rate at which the Sub-Agent's principal office in London offers to exchange
Dollars for such Committed Currency in London at approximately 4:00 P.M. (London
time) (unless otherwise indicated by the terms of this Agreement) on such date
as is required pursuant to the terms of this Agreement, and the "Equivalent" in
any Committed Currency of Dollars means the equivalent in such Committed
Currency of Dollars determined by using the quoted spot rate at which the
Sub-Agent's principal office in London offers to exchange such Committed
Currency for Dollars in London at approximately 4:00 P.M. (London time) (unless
otherwise indicated by the terms of this Agreement) on such date as is required
pursuant to the terms of this Agreement.
5
"ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and the regulations promulgated and rulings issued
thereunder.
"ERISA Affiliate" means any Person that for purposes of Title IV of ERISA
is a member of the Guarantor's controlled group, or under common control with
the Guarantor, within the meaning of Section 414 of the Internal Revenue Code.
"ERISA Event" means (a) (i) the occurrence of a reportable event, within
the meaning of Section 4043 of ERISA, with respect to any Plan unless the 30-day
notice requirement with respect to such event has been waived by the PBGC, or
(ii) the requirements of subsection (1) of Section 4043(b) of ERISA (without
regard to subsection (2) of such Section) are met with respect to a contributing
sponsor, as defined in Section 4001(a)(13) of ERISA, of a Plan, and an event
described in paragraph (9), (10), (11), (12) or (13) of Section 4043(c) of ERISA
is reasonably expected to occur with respect to such Plan within the following
30 days; (b) the application for a minimum funding waiver with respect to a
Plan; (c) the provision by the administrator of any Plan of a notice of intent
to terminate such Plan pursuant to Section 4041(a)(2) of ERISA (including any
such notice with respect to a plan amendment referred to in Section 4041(e) of
ERISA); (d) the cessation of operations at a facility of the Guarantor or any
ERISA Affiliate in the circumstances described in Section 4062(e) of ERISA; (e)
the withdrawal by the Guarantor or any ERISA Affiliate from a Multiple Employer
Plan during a plan year for which it was a substantial employer, as defined in
Section 4001(a)(2) of ERISA; (f) the conditions for the imposition of a lien
under Section 302(f) of ERISA shall have been met with respect to any Plan; (g)
the adoption of an amendment to a Plan requiring the provision of security to
such Plan pursuant to Section 307 of ERISA; or (h) the institution by the PBGC
of proceedings to terminate a Plan pursuant to Section 4042 of ERISA, or the
occurrence of any event or condition described in Section 4042 of ERISA that
constitutes grounds for the termination of, or the appointment of a trustee to
administer, a Plan.
"EURIBO Rate" means, for any Interest Period for each Eurocurrency Rate
Advance comprising part of the same Borrowing, the rate per annum appearing on
Page 248 of the Telerate Service (or on any successor or substitute page of such
Service, or any successor to or substitute for such Service, providing rate
quotations comparable to those currently provided on such page of such Service,
as determined by the Agent from time to time for purposes of providing
quotations of interest rates applicable to deposits in Euro by reference to the
Banking Federation of the European Union Settlement Rates for deposits in Euro)
at approximately 10:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period, as the rate for deposits in Euros with a
maturity comparable to such Interest Period or, if for any reason such rate is
not available, the average (rounded upward to the nearest whole multiple of 1/16
of 1% per annum, if such average is not such a multiple) of the respective rates
per annum at which deposits in Euros are offered by the principal office of each
of the Reference Banks in London, England to prime banks in the London interbank
market at 11:00 A.M. (London time) two Business Days before the first day of
such Interest Period in an amount substantially equal to such Reference Bank's
Eurocurrency Rate Advance comprising part of such Borrowing to be outstanding
during such Interest Period and for a period equal to such Interest Period
(subject, however, to the provisions of Section 2.07).
"Euro" means the lawful currency of the European Union as constituted by
the Treaty of Rome which established the European Community, as such treaty may
be amended from time to time and as referred to in the EMU legislation.
"Eurocurrency Liabilities" has the meaning assigned to that term in
Regulation D of the Board of Governors of the Federal Reserve System, as in
effect from time to time.
"Eurocurrency Lending Office" means, with respect to any Lender, the
office of such Lender specified as its "Eurocurrency Lending Office" opposite
its name on Schedule I hereto or in the Assumption Agreement or the Assignment
and Acceptance pursuant to which it became a Lender (or, if no such office
6
is specified, its Domestic Lending Office), or such other office of such Lender
as such Lender may from time to time specify to the Borrowers and the Agent.
"Eurocurrency Rate" means, for any Interest Period for each Eurocurrency
Rate Advance comprising part of the same Borrowing, an interest rate per annum
equal to the rate per annum obtained by dividing (a)(i) in the case of any
Advance denominated in Dollars or any Committed Currency other than Euro, the
rate per annum (rounded upward to the nearest whole multiple of 1/16 of 1% per
annum) appearing on Telerate Markets Page 3750 (or any successor page) as the
London interbank offered rate for deposits in Dollars or the applicable
Committed Currency at approximately 11:00 A.M. (London time) two Business Days
prior to the first day of such Interest Period for a term comparable to such
Interest Period or, if for any reason such rate is not available (but subject to
the provisions of Section 2.07), the average (rounded upward to the nearest
whole multiple of 1/16 of 1% per annum, if such average is not such a multiple)
of the rate per annum at which deposits in Dollars or the applicable Committed
Currency is offered by the principal office of each of the Reference Banks in
London, England to prime banks in the London interbank market at 11:00 A.M.
(London time) two Business Days before the first day of such Interest Period in
an amount substantially equal to such Reference Bank's Eurocurrency Rate Advance
comprising part of such Borrowing to be outstanding during such Interest Period
and for a period equal to such Interest Period or, (ii) in the case of any
Advance denominated in Euros, the EURIBO Rate by (b) a percentage equal to 100%
minus the Eurocurrency Rate Reserve Percentage for such Interest Period.
"Eurocurrency Rate Advance" means an Advance denominated in Dollars or a
Committed Currency that bears interest as provided in Section 2.06(a)(ii).
"Eurocurrency Rate Reserve Percentage" for any Interest Period for all
Eurocurrency Rate Advances comprising part of the same Borrowing means the
reserve percentage applicable two Business Days before the first day of such
Interest Period under regulations issued from time to time by the Board of
Governors of the Federal Reserve System (or any successor) for determining the
maximum reserve requirement (including, without limitation, any emergency,
supplemental or other marginal reserve requirement) for a member bank of the
Federal Reserve System in New York City with respect to liabilities or assets
consisting of or including Eurocurrency Liabilities (or with respect to any
other category of liabilities that includes deposits by reference to which the
interest rate on Eurocurrency Rate Advances is determined) having a term equal
to such Interest Period.
"Events of Default" has the meaning specified in Section 6.01.
"Federal Funds Rate" means, for any period, a fluctuating interest rate
per annum equal for each day during such period to the weighted average of the
rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers, as published for such day (or,
if such day is not a Business Day, for the next preceding Business Day) by the
Federal Reserve Bank of New York, or, if such rate is not so published for any
day that is a Business Day, the average of the quotations for such day on such
transactions received by the Agent from three Federal funds brokers of
recognized standing selected by it.
"GAAP" has the meaning specified in Section 1.03.
"Guaranteed Obligations" has the meaning specified in Section 7.01.
"Guaranty" means the provisions of Article VII.
"Hedge Agreements" means interest rate swap, cap or collar agreements,
interest rate future or option contracts, currency swap agreements, currency
future or option contracts and other similar agreements.
"Increase Date" has the meaning specified in Section 2.17(a).
7
"Increasing Lender" has the meaning specified in Section 2.17(b).
"Information Memorandum" means the information memorandum dated October 8,
2002 used by the Agent in connection with the syndication of the Commitments.
"Interest Period" means, for each Eurocurrency Rate Advance comprising
part of the same Borrowing, the period commencing on the date of such
Eurocurrency Rate Advance or the date of the Conversion of any Base Rate Advance
into such Eurocurrency Rate Advance and ending on the last day of the period
selected by the applicable Borrower pursuant to the provisions below and,
thereafter, with respect to Eurocurrency Rate Advances, each subsequent period
commencing on the last day of the immediately preceding Interest Period and
ending on the last day of the period selected by such Borrower pursuant to the
provisions below. The duration of each such Interest Period shall be one, two,
three or six months, and subject to clause (c) of this definition, nine or
twelve months, as the applicable Borrower may, upon notice received by the Agent
not later than 11:00 A.M. (New York City time) on the third Business Day prior
to the first day of such Interest Period, select; provided, however, that:
(a) the Borrowers may not select any Interest Period that ends after
the Termination Date;
(b) Interest Periods commencing on the same date for Eurocurrency
Rate Advances comprising part of the same Borrowing shall be of the same
duration;
(c) in the case of any such Borrowing, the Borrowers shall not be
entitled to select an Interest Period having duration of nine or twelve
months unless, by 2:00 P.M. (New York City time) on the third Business Day
prior to the first day of such Interest Period, each Lender notifies the
Agent that such Lender will be providing funding for such Borrowing with
such Interest Period (the failure of any Lender to so respond by such time
being deemed for all purposes of this Agreement as an objection by such
Lender to the requested duration of such Interest Period); provided that,
if any or all of the Lenders object to the requested duration of such
Interest Period, the duration of the Interest Period for such Borrowing
shall be one, two, three or six months, as specified by the Borrower
requesting such Borrowing in the applicable Notice of Borrowing as the
desired alternative to an Interest Period of nine or twelve months;
(d) whenever the last day of any Interest Period would otherwise
occur on a day other than a Business Day, the last day of such Interest
Period shall be extended to occur on the next succeeding Business Day,
provided, however, that, if such extension would cause the last day of
such Interest Period to occur in the next following calendar month, the
last day of such Interest Period shall occur on the next preceding
Business Day; and
(e) whenever the first day of any Interest Period occurs on a day of
an initial calendar month for which there is no numerically corresponding
day in the calendar month that succeeds such initial calendar month by the
number of months in such Interest Period, such Interest Period shall end
on the last Business Day of such succeeding calendar month.
"Internal Revenue Code" means the Internal Revenue Code of 1986, as
amended from time to time, and the regulations promulgated and rulings issued
thereunder.
"Lenders" means the Initial Lenders, each Assuming Lender that shall
become a party hereto pursuant to Section 2.17 and each Person that shall become
a party hereto pursuant to Section 9.07.
"Lien" means any lien, security interest or other charge or encumbrance of
any kind, or any other type of preferential arrangement intended to provide
security for the payment or performance of an obligation, including, without
limitation, the lien or retained security title of a conditional vendor and any
easement, right of way or other encumbrance on title to real property.
8
"Loan Party" means each Borrower and the Guarantor.
"Material Adverse Change" means any material adverse change in the
business, condition (financial or otherwise), operations, performance or
properties of the Guarantor or the Guarantor and its Subsidiaries taken as a
whole.
"Material Adverse Effect" means a material adverse effect on (a) the
business, condition (financial or otherwise), operations, performance or
properties of the Guarantor or the Guarantor and its Subsidiaries taken as a
whole, (b) the rights and remedies of the Agent or any Lender under this
Agreement or any Note or (c) the ability of any Loan Party to perform its
obligations under this Agreement or any Note.
"Moody's" means Xxxxx'x Investors Service, Inc.
"Multiemployer Plan" means a multiemployer plan, as defined in Section
4001(a)(3) of ERISA, to which the Guarantor or any ERISA Affiliate is making or
accruing an obligation to make contributions, or has within any of the preceding
five plan years made or accrued an obligation to make contributions.
"Multiple Employer Plan" means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, that (a) is maintained for employees of the
Guarantor or any ERISA Affiliate and at least one Person other than the
Guarantor and the ERISA Affiliates or (b) was so maintained and in respect of
which the Guarantor or any ERISA Affiliate could have liability under Section
4064 or 4069 of ERISA in the event such plan has been or were to be terminated.
"Note" means a promissory note of a Borrower payable to the order of any
Lender, delivered pursuant to a request made under Section 2.15 in substantially
the form of Exhibit A hereto, evidencing the aggregate indebtedness of such
Borrower to such Lender resulting from the Advances made by such Lender to such
Borrower.
"Notice of Borrowing" has the meaning specified in Section 2.02(a).
"Payment Office" means, for any Committed Currency, such office of
Citibank as shall be from time to time selected by the Agent and notified by the
Agent to the Borrowers and the Lenders.
"PBGC" means the Pension Benefit Guaranty Corporation (or any successor).
"Permitted Liens" means such of the following as to which no enforcement,
collection, execution, levy or foreclosure proceeding shall have been commenced:
(a) Liens for taxes, assessments and governmental charges or levies to the
extent not required to be paid under Section 5.01(b) hereof; (b) Liens imposed
by law, such as materialmen's, mechanics', carriers', workmen's and repairmen's
Liens and other similar Liens arising in the ordinary course of business
securing obligations that are not overdue for a period of more than 30 days or
that are being contested in good faith and by appropriate proceedings that
prevent the forfeiture or sale of the assets subject to such Lien; (c) pledges
or deposits to secure obligations under workers' compensation laws or similar
legislation or to secure public or statutory obligations or, in any such case,
to secure reimbursement obligations under letters of credit or bonds issued to
support such obligations; and (d) easements, rights of way and other
encumbrances on title to real property that do not render title to the property
encumbered thereby unmarketable or materially adversely affect the use of such
property for its present purposes.
"Person" means an individual, partnership, corporation (including a
business trust), joint stock company, trust, unincorporated association, joint
venture, limited liability company or other entity, or a government or any
political subdivision or agency thereof.
"Plan" means a Single Employer Plan or a Multiple Employer Plan.
9
"Post-Petition Interest" has the meaning specified in Section 7.05.
"PTR Scheme" shall mean the Provisional Treaty Relief Scheme as described
in Inland Revenue Guidelines dated July 1999 and administered by the Inland
Revenue's Centre for Non-Residents.
"Public Debt Rating" means, as of any date, the rating that has been most
recently announced by either S&P or Moody's, as the case may be, for any class
of non-credit enhanced long-term senior unsecured debt issued by the Guarantor
or, if either such rating agency shall have issued more than one such rating,
the lowest such rating issued by such rating agency. For purposes of the
foregoing, (a) if only one of S&P and Moody's shall have in effect a Public Debt
Rating, the Applicable Margin, the Applicable Percentage and the Applicable
Utilization Fee shall be determined by reference to the available rating; (b) if
neither S&P nor Moody's shall have in effect a Public Debt Rating, the
Applicable Margin, the Applicable Percentage and the Applicable Utilization Fee
will be set in accordance with Level 6 under the definition of "Applicable
Margin", "Applicable Percentage" or "Applicable Utilization Fee", as the case
may be; (c) if the ratings established by S&P and Moody's shall fall within
different levels, the Applicable Margin, the Applicable Percentage and the
Applicable Utilization Fee shall be based upon the higher rating unless such
rating differs by two or more levels, in which case the applicable level will be
deemed to be one level above the lower of such levels; (d) if any rating
established by S&P or Moody's shall be changed, such change shall be effective
as of the date on which such change is first announced publicly by the rating
agency making such change; and (e) if S&P or Moody's shall change the basis on
which ratings are established, each reference to the Public Debt Rating
announced by S&P or Moody's, as the case may be, shall refer to the then
equivalent rating by S&P or Moody's, as the case may be.
"Reference Banks" means Citibank, ABN AMRO Bank N.V., JPMorgan Chase Bank
and Wachovia Bank, National Association.
"Register" has the meaning specified in Section 9.07(d).
"Required Lenders" means at any time Lenders owed at least a majority in
interest of the then aggregate unpaid principal amount (based on the Equivalent
in Dollars at such time) of the Advances owing to Lenders, or, if no such
principal amount is then outstanding, Lenders having at least a majority in
interest of the Commitments.
"S&P" means Standard & Poor's, a division of The XxXxxx-Xxxx Companies,
Inc.
"Single Employer Plan" means a single employer plan, as defined in Section
4001(a)(15) of ERISA, that (a) is maintained for employees of the Guarantor or
any ERISA Affiliate and no Person other than the Guarantor and the ERISA
Affiliates or (b) was so maintained and in respect of which the Guarantor or any
ERISA Affiliate could have liability under Section 4069 of ERISA in the event
such plan has been or were to be terminated.
"Sub-Agent" means Citibank International plc.
"Subordinated Obligations" has the meaning specified in Section 7.05.
"Subsidiary" of any Person means any corporation, partnership, joint
venture, limited liability company, trust or estate of which (or in which) more
than 50% of (a) the issued and outstanding Voting Stock of such Person, (b) the
interest in the capital or profits of such limited liability company,
partnership or joint venture or (c) the beneficial interest in such trust or
estate is at the time directly or indirectly owned or controlled by such Person,
by such Person and one or more of its other Subsidiaries or by one or more of
such Person's other Subsidiaries.
"Termination Date" means the earlier of (a) November 14, 2005 and (b) the
date of termination in whole of the Commitments pursuant to Section 2.04 or
6.01.
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"Voting Stock" means capital stock issued by a corporation, or equivalent
interests in any other Person, the holders of which are ordinarily, in the
absence of contingencies, entitled to vote for the election of directors (or
persons performing similar functions) of such Person, even if the right so to
vote has been suspended by the happening of such a contingency.
SECTION 1.02. Computation of Time Periods. In this Agreement in the
computation of periods of time from a specified date to a later specified date,
the word "from" means "from and including" and the words "to" and "until" each
mean "to but excluding".
SECTION 1.03. Accounting Terms. All accounting terms not specifically
defined herein shall be construed in accordance with generally accepted
accounting principles consistent with those applied in the preparation of the
financial statements referred to in Section 4.01(e) ("GAAP").
ARTICLE II
AMOUNTS AND TERMS OF THE ADVANCES
SECTION 2.01. The Advances. Each Lender severally agrees, on the terms and
conditions hereinafter set forth, to make Advances to the Borrowers from time to
time on any Business Day during the period from the Effective Date until the
Termination Date in an aggregate amount (based in respect of any Advances to be
denominated in a Committed Currency by reference to the Equivalent thereof in
Dollars determined on the date of delivery of the applicable Notice of
Borrowing) not to exceed at any time outstanding such Lender's Commitment. Each
Borrowing shall be in an amount not less than the Borrowing Minimum or an
integral multiple of the Borrowing Multiple in excess thereof and shall consist
of Advances of the same Type and in the same currency made on the same day by
the Lenders ratably according to their respective Commitments. Within the limits
of each Lender's Commitment, the Borrowers may borrow under this Section 2.01,
prepay pursuant to Section 2.09 and reborrow under this Section 2.01.
SECTION 2.02. Making the Advances. (a) Each Borrowing shall be made on
notice, given not later than (x) 11:00 A.M. (New York City time) on the third
Business Day prior to the date of the proposed Borrowing in the case of a
Borrowing consisting of Eurocurrency Rate Advances denominated in Dollars, (y)
4:00 P.M. (London time) on the third Business Day prior to the date of the
proposed Borrowing in the case of a Borrowing consisting of Eurocurrency Rate
Advances denominated in any Committed Currency, or (z) 11:00 A.M. (New York City
time) on the date of the proposed Borrowing in the case of a Borrowing
consisting of Base Rate Advances, by the applicable Borrower to the Agent (and,
in the case of a Borrowing consisting of Eurocurrency Rate Advances,
simultaneously to the Sub-Agent), which shall give to each Lender prompt notice
thereof by telecopier or telex. Each such notice of a Borrowing (a "Notice of
Borrowing") shall be by telephone, confirmed immediately in writing, or
telecopier or telex in substantially the form of Exhibit B hereto, specifying
therein the requested (i) date of such Borrowing, (ii) Type of Advances
comprising such Borrowing, (iii) aggregate amount of such Borrowing, and (iv) in
the case of a Borrowing consisting of Eurocurrency Rate Advances, initial
Interest Period and currency for each such Advance. Each Lender shall, before
1:00 P.M. (New York City time) on the date of such Borrowing, in the case of a
Borrowing consisting of Advances denominated in Dollars, and before 11:00 A.M.
(London time) on the date of such Borrowing, in the case of a Borrowing
consisting of Eurocurrency Rate Advances denominated in any Committed Currency,
make available for the account of its Applicable Lending Office to the Agent at
the applicable Agent's Account, in same day funds, such Lender's ratable portion
of such Borrowing. After the Agent's receipt of such funds and upon fulfillment
of the applicable conditions set forth in Article III, the Agent will make such
funds available to the applicable Borrower at the Agent's address referred to in
Section 9.02 or at the applicable Payment Office, as the case may be.
(b) Anything in subsection (a) above to the contrary notwithstanding, (i)
the Borrowers may not select Eurocurrency Rate Advances for any Borrowing if the
aggregate amount of such Borrowing is less than the Borrowing Minimum or if the
obligation of the Lenders to make Eurocurrency Rate Advances for the requested
currency shall then be suspended pursuant to Section 2.07 or 2.11 and (ii) the
Eurocurrency Rate Advances may not be outstanding as part of more than six
separate Borrowings.
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(c) Each Notice of Borrowing shall be irrevocable and binding on the
Borrower requesting such Borrowing. In the case of any Borrowing that the
related Notice of Borrowing specifies is to be comprised of Eurocurrency Rate
Advances, the applicable Borrower shall indemnify each Lender against any loss,
cost or expense incurred by such Lender as a result of any failure to fulfill on
or before the date specified in such Notice of Borrowing for such Borrowing the
applicable conditions set forth in Article III, including, without limitation,
any loss (including loss of anticipated profits), cost or expense incurred by
reason of the liquidation or reemployment of deposits or other funds acquired by
such Lender to fund the Advance to be made by such Lender as part of such
Borrowing when such Advance, as a result of such failure, is not made on such
date.
(d) Unless the Agent shall have received notice from a Lender prior to the
time of any Borrowing that such Lender will not make available to the Agent such
Lender's ratable portion of such Borrowing, the Agent may assume that such
Lender has made such portion available to the Agent on the date of such
Borrowing in accordance with subsection (a) of this Section 2.02 and the Agent
may, in reliance upon such assumption, make available to the applicable Borrower
on such date a corresponding amount. If and to the extent that such Lender shall
not have so made such ratable portion available to the Agent, such Lender and
such Borrower severally agree to repay to the Agent forthwith on demand such
corresponding amount together with interest thereon, for each day from the date
such amount is made available to such Borrower until the date such amount is
repaid to the Agent, at (i) in the case of a Borrower, the higher of (A) the
interest rate applicable at the time to Advances comprising such Borrowing and
(B) the cost of funds incurred by the Agent in respect of such amount and (ii)
in the case of such Lender, (A) the Federal Funds Rate in the case of Advances
denominated in Dollars or (B) the cost of funds incurred by the Agent in respect
of such amount in the case of Advances denominated in Committed Currencies. If
such Lender shall repay to the Agent such corresponding amount, such amount so
repaid shall constitute such Lender's Advance as part of such Borrowing for
purposes of this Agreement.
(e) The failure of any Lender to make the Advance to be made by it as part
of any Borrowing shall not relieve any other Lender of its obligation, if any,
hereunder to make its Advance on the date of such Borrowing, but no Lender shall
be responsible for the failure of any other Lender to make the Advance to be
made by such other Lender on the date of any Borrowing.
SECTION 2.03. Fees. (a) Facility Fee. The Borrowers agree to pay to the
Agent for the account of each Lender a facility fee on the aggregate amount of
such Lender's Commitment from the Effective Date in the case of each Initial
Lender and from the effective date specified in the Assumption Agreement or in
the Assignment and Acceptance pursuant to which it became a Lender in the case
of each other Lender until the Termination Date at a rate per annum equal to the
Applicable Percentage in effect from time to time, payable in arrears quarterly
on the last day of each March, June, September and December, commencing December
31, 2002, and on the Termination Date.
(b) Agent's Fees. The Borrowers shall pay to the Agent for its own account
such fees as may from time to time be agreed between the Guarantor and the
Agent.
SECTION 2.04. Optional Termination or Reduction of the Commitments. The
Borrowers shall have the right, upon at least five Business Days' notice to the
Agent, to terminate in whole or permanently reduce ratably in part the unused
portions of the respective Commitments of the Lenders, provided that each
partial reduction shall be in the aggregate amount of $10,000,000 or an integral
multiple of $1,000,000 in excess thereof.
SECTION 2.05. Repayment of Advances. The Borrowers shall repay to the
Agent for the ratable account of the Lenders on the Termination Date the
aggregate principal amount of the Advances then outstanding.
SECTION 2.06. Interest on Advances. (a) Scheduled Interest. The Borrowers
shall pay interest on the unpaid principal amount of each Advance owing to each
Lender from the date of such Advance until such principal amount shall be paid
in full, at the following rates per annum:
(i) Base Rate Advances. During such periods as such Advance is a
Base Rate Advance, a rate per annum equal at all times to the sum of (x)
the Base Rate in effect from time to time plus (y) the Applicable Margin
in effect from time to time plus (z) the Applicable Utilization Fee, if
any, in effect from
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time to time, payable in arrears quarterly on the last day of each March,
June, September and December during such periods and on the date such Base
Rate Advance shall be Converted or paid in full.
(ii) Eurocurrency Rate Advances. During such periods as such Advance
is a Eurocurrency Rate Advance, a rate per annum equal at all times during
each Interest Period for such Advance to the sum of (x) the Eurocurrency
Rate for such Interest Period for such Advance plus (y) the Applicable
Margin in effect from time to time plus (z) the Applicable Utilization
Fee, if any, in effect from time to time, payable in arrears on the last
day of such Interest Period and, if such Interest Period has a duration of
more than three months, on each day that occurs during such Interest
Period every three months from the first day of such Interest Period and
on the date such Eurocurrency Rate Advance shall be Converted or paid in
full.
(b) Default Interest. Upon the occurrence and during the continuance of an
Event of Default under Section 6.01(a), the Agent may, and upon the request of
the Required Lenders shall, require the Borrowers to pay interest ("Default
Interest") on (i) the unpaid principal amount of each Advance owing to each
Lender, payable in arrears on the dates referred to in clause (a)(i) or (a)(ii)
above, at a rate per annum equal at all times to 2% per annum above the rate per
annum required to be paid on such Advance pursuant to clause (a)(i) or (a)(ii)
above and (ii) to the fullest extent permitted by law, the amount of any
interest, fee or other amount payable hereunder that is not paid when due, from
the date such amount shall be due until such amount shall be paid in full,
payable in arrears on the date such amount shall be paid in full and on demand,
at a rate per annum equal at all times to 2% per annum above the rate per annum
required to be paid on Base Rate Advances pursuant to clause (a)(i) above;
provided, however, that following acceleration of the Advances pursuant to
Section 6.01, Default Interest shall accrue and be payable hereunder whether or
not previously required by the Agent.
SECTION 2.07. Interest Rate Determination. (a) Each Reference Bank agrees
to furnish to the Agent timely information for the purpose of determining each
Eurocurrency Rate. If any one or more of the Reference Banks shall not furnish
such timely information to the Agent for the purpose of determining any such
interest rate, the Agent shall determine such interest rate on the basis of
timely information furnished by the remaining Reference Banks. The Agent shall
give prompt notice to the applicable Borrower and the Lenders of the applicable
interest rate determined by the Agent for purposes of Section 2.06(a)(i) or
(ii), and the rate, if any, furnished by each Reference Bank for the purpose of
determining the interest rate under Section 2.06(a)(ii).
(b) If, with respect to any Eurocurrency Rate Advances, the Required
Lenders notify the Agent that (i) they are unable to obtain matching deposits in
the London inter-bank market at or about 11:00 A.M. (London time) on the second
Business Day before the making of a Borrowing in sufficient amounts to fund
their respective Advances as a part of such Borrowing during its Interest Period
or (ii) the Eurocurrency Rate for any Interest Period for such Advances will not
adequately reflect the cost to such Required Lenders of making, funding or
maintaining their respective Eurocurrency Rate Advances for such Interest
Period, the Agent shall forthwith so notify the applicable Borrower and the
Lenders, whereupon (A) such Borrower will, on the last day of the then existing
Interest Period therefor, (1) if such Eurocurrency Rate Advances are denominated
in Dollars, either (x) prepay such Advances or (y) Convert such Advances into
Base Rate Advances and (2) if such Eurocurrency Rate Advances are denominated in
any Committed Currency, either (x) prepay such Advances or (y) exchange such
Advances into an Equivalent amount of Dollars and Convert such Advances into
Base Rate Advances and (B) the obligation of the Lenders to make, or to Convert
Advances into, Eurocurrency Rate Advances in the affected currency shall be
suspended until the Agent shall notify the Borrowers and the Lenders that the
circumstances causing such suspension no longer exist; provided that, if the
circumstances set forth in clause (ii) above are applicable, the applicable
Borrower may elect, by notice to the Agent and the Lenders, to continue such
Advances in such Committed Currency for Interest Periods of not longer than one
month, which Advances shall thereafter bear interest at a rate per annum equal
to the Applicable Margin plus the Applicable Utilization Fee, if any, plus, for
each Lender, the cost to such Lender (expressed as a rate per annum) of funding
its Eurocurrency Rate Advances by whatever means it reasonably determines to be
appropriate. Each Lender shall certify its cost of funds for each Interest
Period to the Agent and the applicable Borrower as soon as practicable (but in
any event not later than ten Business Days after the first day of such Interest
Period).
(c) If any Borrower shall fail to select the duration of any Interest
Period in accordance with the provisions contained in the definition of
"Interest Period" in Section 1.01 for any Eurocurrency Rate Advances
13
made to it, the Agent will forthwith so notify such Borrower and the Lenders and
such Advances will automatically, on the last day of the then existing Interest
Period therefor, (i) if such Eurocurrency Rate Advances are denominated in
Dollars, Convert into Base Rate Advances and (ii) if such Eurocurrency Rate
Advances are denominated in a Committed Currency, be exchanged for an Equivalent
amount of Dollars and Convert into Base Rate Advances.
(d) On the date on which the aggregate unpaid principal amount of
Eurocurrency Rate Advances comprising any Borrowing shall be reduced, by payment
or prepayment or otherwise, to less than the Borrowing Minimum, such Advances
shall automatically Convert into Base Rate Advances.
(e) Upon the occurrence and during the continuance of any Event of Default
under Section 6.01(a), (i) each Eurocurrency Rate Advance will automatically, on
the last day of the then existing Interest Period therefor, (A) if such
Eurocurrency Rate Advances are denominated in Dollars, be Converted into Base
Rate Advances and (B) if such Eurocurrency Rate Advances are denominated in any
Committed Currency, be exchanged for an Equivalent amount of Dollars and be
Converted into Base Rate Advances and (ii) the obligation of the Lenders to
make, or to Convert Advances into, Eurocurrency Rate Advances shall be
suspended; provided that the applicable Borrower may elect, by notice to the
Agent and the Lenders within one Business Day of such Event of Default, to
continue such Advances in such Committed Currency, whereupon the Agent may
require that each Interest Period relating to such Eurocurrency Rate Advances
shall bear interest at the Overnight Eurocurrency Rate for a period of three
Business Days and thereafter, each such Interest Period shall have a duration of
not longer than one month. "Overnight Eurocurrency Rate" means the rate per
annum applicable to an overnight period beginning on one Business Day and ending
on the next Business Day equal to the sum of 1%, the Applicable Interest Rate
Margin and the average, rounded upward to the nearest whole multiple of 1/16 of
1%, if such average is not such a multiple, of the respective rates per annum
quoted by each Reference Bank to the Agent on request as the rate at which it is
offering overnight deposits in the relevant currency in amounts comparable to
such Reference Bank's Eurocurrency Rate Advances.
(f) If Telerate Markets Page 3750 is unavailable and fewer than two
Reference Banks furnish timely information to the Agent for determining the
Eurocurrency Rate for any Eurocurrency Rate Advances,
(i) the Agent shall forthwith notify the Borrowers and the Lenders
that the interest rate cannot be determined for such Eurocurrency Rate
Advances,
(ii) with respect to Eurocurrency Rate Advances, each such Advance
will automatically, on the last day of the then existing Interest Period
therefor, (A) if such Eurocurrency Rate Advance is denominated in Dollars,
Convert into a Base Rate Advance and (B) if such Eurocurrency Rate Advance
is denominated in any Committed Currency, be prepaid by the applicable
Borrower or be automatically exchanged for an Equivalent amount of Dollars
and be Converted into a Base Rate Advance (or if such Advance is then a
Base Rate Advance, will continue as a Base Rate Advance), and
(iii) the obligation of the Lenders to make Eurocurrency Rate
Advances or to Convert Advances into Eurocurrency Rate Advances shall be
suspended until the Agent shall notify the Borrowers and the Lenders that
the circumstances causing such suspension no longer exist.
SECTION 2.08. Optional Conversion of Advances. Each Borrower may on any
Business Day, upon notice given to the Agent not later than 11:00 A.M. (New York
City time) on the third Business Day prior to the date of the proposed
Conversion and subject to the provisions of Sections 2.07 and 2.11, Convert all
Advances made to such Borrower denominated in Dollars of one Type comprising the
same Borrowing into Advances denominated in Dollars of the other Type; provided,
however, that any Conversion of Eurocurrency Rate Advances into Base Rate
Advances shall be made only on the last day of an Interest Period for such
Eurocurrency Rate Advances, any Conversion of Base Rate Advances into
Eurocurrency Rate Advances shall be in an amount not less than the minimum
amount specified in Section 2.02(b) and no Conversion of any Advances shall
result in more separate Borrowings than permitted under Section 2.02(b). Each
such notice of a Conversion shall, within the restrictions specified above,
specify (i) the date of such Conversion, (ii) the Dollar denominated Advances to
be Converted, and (iii) if such Conversion is into Eurocurrency Rate Advances,
the duration of the initial Interest
14
Period for each such Advance. Each notice of Conversion shall be irrevocable and
binding on the applicable Borrower.
SECTION 2.09. Prepayments of Advances. (a) Optional. Each Borrower may,
upon notice at least two Business Days' prior to the date of such prepayment, in
the case of Eurocurrency Rate Advances, and not later than 11:00 A.M. (New York
City time) on the date of such prepayment, in the case of Base Rate Advances, to
the Agent stating the proposed date and aggregate principal amount of the
prepayment, and if such notice is given the Borrower giving such notice shall,
prepay the outstanding principal amount of the Advances comprising part of the
same Borrowing in whole or ratably in part, together with accrued interest to
the date of such prepayment on the principal amount prepaid; provided, however,
that (x) each partial prepayment shall be in an aggregate principal amount of
not less than the Borrowing Minimum or an integral multiple of the Borrowing
Multiple in excess thereof and (y) in the event of any such prepayment of a
Eurocurrency Rate Advance, such Borrower shall be obligated to reimburse the
Lenders in respect thereof pursuant to Section 9.04(c).
(b) Mandatory. (i) If, on any date, the Agent notifies the Borrowers that,
on any interest payment date, the sum of (A) the aggregate principal amount of
all Advances denominated in Dollars then outstanding plus (B) the Equivalent in
Dollars (determined on the third Business Day prior to such interest payment
date) of the aggregate principal amount of all Advances denominated in Committed
Currencies then outstanding exceeds 103% of the aggregate Commitments of the
Lenders on such date, the Borrowers shall, as soon as practicable and in any
event within two Business Days after receipt of such notice, subject to the
proviso to this sentence set forth below, prepay the outstanding principal
amount of any Advances owing by the Borrowers in an aggregate amount sufficient
to reduce such sum to an amount not to exceed 100% of the aggregate Commitments
of the Lenders on such date together with any interest accrued to the date of
such prepayment on the aggregate principal amount of Advances prepaid; provided
that if the aggregate principal amount of Base Rate Advances outstanding at the
time of such required prepayment is less than the amount of such required
prepayment, the portion of such required prepayment in excess of the aggregate
principal amount of Base Rate Advances then outstanding shall be deferred until
the next succeeding last day of an Interest Period of outstanding Eurocurrency
Rate Advances in an aggregate amount equal to the excess of such required
prepayment. The Agent shall give prompt notice of any prepayment required under
this Section 2.09(b) to the Borrowers and the Lenders, and shall provide prompt
notice to the Borrowers of any such notice of required prepayment received by it
from any Lender.
(ii) Each prepayment made pursuant to this Section 2.09(b) shall be made
together with any interest accrued to the date of such prepayment on the
principal amounts prepaid and, in the case of any prepayment of a Eurocurrency
Rate Advance on a date other than the last day of an Interest Period or at its
maturity, any additional amounts which the applicable Borrower shall be
obligated to reimburse to the Lenders in respect thereof pursuant to Section
9.04(b). The Agent shall give prompt notice of any prepayment required under
this Section 2.09(b) to the Borrowers and the Lenders.
SECTION 2.10. Increased Costs. (a) If, due to either (i) the introduction
of or any change in or in the interpretation of any law or regulation after the
date hereof, or (ii) the compliance with any guideline or request issued after
the date hereof from any central bank or other governmental authority including,
without limitation, any agency of the European Union or similar monetary or
multinational authority (whether or not having the force of law), there shall be
any increase in the cost to any Lender of agreeing to make or making, funding or
maintaining Eurocurrency Rate Advances (excluding for purposes of this Section
2.10 any such increased costs resulting from (i) Taxes or Other Taxes (as to
which Section 2.13 shall govern) and (ii) changes in the basis of taxation of
overall net income or overall gross income by the United States or by the
foreign jurisdiction or state under the laws of which such Lender is organized
or has its Applicable Lending Office or any political subdivision thereof), then
the Borrowers shall from time to time, upon demand by such Lender (with a copy
of such demand to the Agent), pay to the Agent for the account of such Lender
additional amounts sufficient to compensate such Lender for such increased cost;
provided, however, that before making any such demand, each Lender agrees to use
reasonable efforts (consistent with its internal policy and legal and regulatory
restrictions) to designate a different Applicable Lending Office if the making
of such a designation would avoid the need for, or reduce the amount of, such
increased cost and would not, in the reasonable judgment of such Lender, be
otherwise disadvantageous to such Lender. A certificate as to the amount of such
increased cost, submitted to the Borrowers and the Agent by such Lender, shall
be conclusive and binding for all purposes, absent manifest error.
15
(b) If any Lender determines that compliance with any law or regulation or
any guideline or request taking effect or issued after the date hereof from any
central bank or other governmental authority (whether or not having the force of
law) affects or would affect the amount of capital required or expected to be
maintained by such Lender or any corporation controlling such Lender and that
the amount of such capital is increased by or based upon the existence of such
Lender's commitment to lend hereunder and other commitments of this type, then,
upon demand by such Lender (with a copy of such demand to the Agent), the
Borrowers shall pay to the Agent for the account of such Lender, from time to
time as specified by such Lender, additional amounts sufficient to compensate
such Lender or such corporation in the light of such circumstances, to the
extent that such Lender reasonably determines such increase in capital to be
allocable to the existence of such Lender's commitment to lend hereunder. A
certificate as to such amounts submitted to the Borrowers and the Agent by such
Lender shall be conclusive and binding for all purposes, absent manifest error.
(c) Failure or delay on the part of any Lender to demand compensation
pursuant to this Section shall not constitute a waiver of such Lender's right to
demand such compensation; provided that the Borrowers shall not be required to
compensate a Lender pursuant to this Section for any increased costs or
reductions incurred more than six months prior to the date that such Lender
notifies the Borrowers of the circumstances giving rise to such increased costs
or reductions and of such Lender's intention to claim compensation therefor;
provided further that, if the circumstances giving rise to such increased costs
or reductions cause such increased costs or reductions to be retroactive, then
the six-month period referred to above shall be extended to include the period
of retroactive effect thereof.
SECTION 2.11. Illegality. Notwithstanding any other provision of this
Agreement, if any Lender shall notify the Agent that the introduction of or any
change in or in the interpretation of any law or regulation makes it unlawful,
or any central bank or other governmental authority asserts that it is unlawful,
for any Lender or its Eurocurrency Lending Office to perform its obligations
hereunder to make Eurocurrency Rate Advances in Dollars or any Committed
Currency or to fund or maintain Eurocurrency Rate Advances in Dollars or any
Committed Currency hereunder, (a) (i) if such Eurocurrency Rate Advance is
denominated in Dollars, be Converted into a Base Rate Advance and (ii) if such
Eurocurrency Rate Advance is denominated in any Committed Currency, be exchanged
into an Equivalent amount of Dollars and be Converted into a Base Rate Advance
and (b) the obligation of the Lenders to make Eurocurrency Rate Advances in the
affected currency or to Convert Advances into Eurocurrency Rate Advances shall
be suspended until the Agent shall notify the Borrowers and the Lenders that the
circumstances causing such suspension no longer exist; provided, however, that
before making any such demand, each Lender agrees to use reasonable efforts
(consistent with its internal policy and legal and regulatory restrictions) to
designate a different Eurocurrency Lending Office if the making of such a
designation would allow such Lender or its Eurocurrency Lending Office to
continue to perform its obligations to make such Eurocurrency Rate Advances or
to continue to fund or maintain such Eurocurrency Rate Advances and would not,
in the judgment of such Lender, be otherwise disadvantageous to such Lender.
SECTION 2.12. Payments and Computations. (a) The Borrowers shall make each
payment hereunder (except with respect to principal of, interest on, and other
amounts relating to, Advances denominated in a Committed Currency), irrespective
of any right of counterclaim or set-off, not later than 11:00 A.M. (New York
City time) on the day when due in Dollars to the Agent at the applicable Agent's
Account in same day funds. The Borrowers shall make each payment hereunder with
respect to principal of, interest on, and other amounts relating to, Advances
denominated in a Committed Currency, irrespective of any right of counterclaim
or set-off, not later than 11:00 A.M. (at the Payment Office for such Committed
Currency) on the day when due in such Committed Currency to the Agent, by
deposit of such funds to the applicable Agent's Account in same day funds. The
Agent will promptly thereafter cause to be distributed like funds relating to
the payment of principal or interest or facility fees ratably (other than
amounts payable pursuant to Section 2.10, 2.13 or 9.04(c)) to the Lenders for
the account of their respective Applicable Lending Offices, and like funds
relating to the payment of any other amount payable to any Lender to such Lender
for the account of its Applicable Lending Office, in each case to be applied in
accordance with the terms of this Agreement. Upon any Assuming Lender becoming a
Lender hereunder as a result of a Commitment Increase pursuant to Section 2.17,
and upon the Agent's receipt of such Lender's Assumption Agreement and recording
of the information contained therein in the Register, from and after the
applicable Increase Date, the Agent shall make all payments hereunder and under
any Notes issued in connection therewith in respect of the interest assumed
thereby to the Assuming Lender. Upon its acceptance of an Assignment and
Acceptance and recording of the information contained therein in the Register
pursuant to Section 9.07(c), from and after the
16
effective date specified in such Assignment and Acceptance, the Agent shall make
all payments hereunder and under any Notes in respect of the interest assigned
thereby to the Lender assignee thereunder, and the parties to such Assignment
and Acceptance shall make all appropriate adjustments in such payments for
periods prior to such effective date directly between themselves.
(b) Each Borrower hereby authorizes each Lender, if and to the extent
payment owed to such Lender is not made when due hereunder or under the Note
held by such Lender, to charge from time to time against any or all of such
Borrower's accounts with such Lender any amount so due.
(c) All computations of interest based on the Base Rate shall be made by
the Agent on the basis of a year of 365 or 366 days, as the case may be, all
computations of interest based on the Eurocurrency Rate or the Federal Funds
Rate and of fees shall be made by the Agent on the basis of a year of 360 days
(or, in each case of Advances denominated in Committed Currencies where market
practice differs, in accordance with market practice), in each case for the
actual number of days (including the first day but excluding the last day)
occurring in the period for which such interest or fees are payable. Each
determination by the Agent of an interest rate hereunder shall be conclusive and
binding for all purposes, absent manifest error.
(d) Whenever any payment hereunder or under the Notes shall be stated to
be due on a day other than a Business Day, such payment shall be made on the
next succeeding Business Day, and such extension of time shall in such case be
included in the computation of payment of interest or facility fee, as the case
may be; provided, however, that, if such extension would cause payment of
interest on or principal of Eurocurrency Rate Advances to be made in the next
following calendar month, such payment shall be made on the next preceding
Business Day.
(e) Unless the Agent shall have received notice from the applicable
Borrower prior to the date on which any payment is due to the Lenders hereunder
that such Borrower will not make such payment in full, the Agent may assume that
such Borrower has made such payment in full to the Agent on such date and the
Agent may, in reliance upon such assumption, cause to be distributed to each
Lender on such due date an amount equal to the amount then due such Lender. If
and to the extent the applicable Borrower shall not have so made such payment in
full to the Agent, each Lender shall repay to the Agent forthwith on demand such
amount distributed to such Lender together with interest thereon, for each day
from the date such amount is distributed to such Lender until the date such
Lender repays such amount to the Agent, at (i) the Federal Funds Rate in the
case of Advances denominated in Dollars or (ii) the cost of funds incurred by
the Agent in respect of such amount in the case of Advances denominated in
Committed Currencies.
(f) To the extent that the Agent receives funds for application to the
amounts owing by any Borrower under or in respect of this Agreement or any Note
in currencies other than the currency or currencies required to enable the Agent
to distribute funds to the Lenders in accordance with the terms of this Section
2.12, the Agent shall be entitled to convert or exchange such funds into Dollars
or into a Committed Currency, to the extent necessary to enable the Agent to
distribute such funds in accordance with the terms of this Section 2.12;
provided that each Borrower and each of the Lenders hereby agree that the Agent
shall not be liable or responsible for any loss, cost or expense suffered by
such Borrower or such Lender as a result of any conversion or exchange of
currencies affected pursuant to this Section 2.12(f) or as a result of the
failure of the Agent to effect any such conversion or exchange; and provided
further that the Borrowers agree to indemnify the Agent and each Lender, and
hold the Agent and each Lender harmless, for any and all losses, costs and
expenses incurred by the Agent or any Lender for any conversion or exchange of
currencies (or the failure to convert or exchange any currencies) in accordance
with this Section 2.12(f).
SECTION 2.13. Taxes. (a) Any and all payments by any Loan Party to or for
the account of any Lender or the Agent hereunder or under the Notes or any other
documents to be delivered hereunder shall be made, in accordance with Section
2.12 or the applicable provisions of such other documents, free and clear of and
without deduction for any and all present or future taxes, levies, imposts,
deductions, charges or withholdings, and all liabilities with respect thereto,
excluding, in the case of each Lender and the Agent, taxes imposed on its
overall net income, and franchise taxes imposed on it in lieu of net income
taxes, by the jurisdiction under the laws of which such Lender or the Agent (as
the case may be) is organized or any political subdivision thereof and, in the
case of each Lender, taxes imposed on its overall net income, and franchise
taxes imposed on it in lieu of net income taxes,
17
by the jurisdiction of such Lender's Applicable Lending Office or any political
subdivision thereof and excluding such taxes imposed by the United States or the
United Kingdom that are payable as of the date such Lender or the Agent became a
party to this Agreement (all such non-excluded taxes, levies, imposts,
deductions, charges, withholdings and liabilities in respect of payments
hereunder or under the Notes being hereinafter referred to as "Taxes"). If any
Loan Party shall be required by law to deduct any Taxes from or in respect of
any sum payable hereunder or under any Note or any other documents to be
delivered hereunder to any Lender or the Agent, (i) the sum payable shall be
increased as may be necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this Section
2.13) such Lender or the Agent (as the case may be) receives an amount equal to
the sum it would have received had no such deductions been made, (ii) such Loan
Party shall make such deductions and (iii) such Loan Party shall pay the full
amount deducted to the relevant taxation authority or other authority in
accordance with applicable law.
(b) In addition, the Borrowers shall pay any present or future stamp or
documentary taxes or any other excise or property taxes, charges or similar
levies that arise from any payment made hereunder or under the Notes or any
other documents to be delivered hereunder or from the execution, delivery or
registration of, performing under, or otherwise with respect to, this Agreement
or the Notes or any other documents to be delivered hereunder (hereinafter
referred to as "Other Taxes").
(c) The Borrowers shall indemnify each Lender and the Agent for and hold
it harmless against the full amount of Taxes or Other Taxes (including, without
limitation, taxes of any kind imposed or asserted by any jurisdiction on amounts
payable under this Section 2.13) imposed on or paid by such Lender or the Agent
(as the case may be) and any liability (including penalties, interest and
expenses) arising therefrom or with respect thereto. This indemnification shall
be made within 30 days from the date such Lender or the Agent (as the case may
be) makes written demand therefor.
(d) Within 45 days after the date of any payment of Taxes, the applicable
Loan Party shall furnish to the Agent, at its address referred to in Section
9.02, the original or a certified copy of a receipt evidencing such payment to
the extent such a receipt is issued therefor, or other written proof of payment
thereof that is reasonably satisfactory to the Agent. In the case of any payment
hereunder or under the Notes or any other documents to be delivered hereunder by
or on behalf of any Loan Party (other than OFP) through an account or branch
outside the United States or by or on behalf of any Loan Party (other than OFP)
by a payor that is not a United States person, if such Loan Party determines
that no Taxes are payable in respect thereof, such Loan Party shall furnish, or
shall cause such payor to furnish, to the Agent, at such address, an opinion of
counsel acceptable to the Agent stating that such payment is exempt from Taxes.
For purposes of this subsection (d) and subsection (e), the terms "United
States" and "United States person" shall have the meanings specified in Section
7701 of the Internal Revenue Code.
(e) Each Lender organized under the laws of a jurisdiction outside the
United States, on or prior to the date of its execution and delivery of this
Agreement in the case of each Initial Lender and on the date of the Assumption
Agreement or the Assignment and Acceptance pursuant to which it becomes a Lender
in the case of each other Lender, and from time to time thereafter as reasonably
requested in writing by OFI and OCI (but only so long as such Lender remains
lawfully able to do so), shall provide each of the Agent OFI and OCI with two
original Internal Revenue Service forms W-8BEN or W-8ECI, as appropriate, or any
successor or other form prescribed by the Internal Revenue Service, certifying
that such Lender is exempt from or entitled to a reduced rate of United States
withholding tax on payments made by OFI and OCI pursuant to this Agreement or
the Notes. If the form provided by a Lender at the time such Lender first
becomes a party to this Agreement indicates a United States interest withholding
tax rate in excess of zero, withholding tax at such rate shall be considered
excluded from Taxes unless and until such Lender provides the appropriate forms
certifying that a lesser rate applies, whereupon withholding tax at such lesser
rate only shall be considered excluded from Taxes for periods governed by such
form; provided, however, that, if at the date of the Assignment and Acceptance
pursuant to which a Lender assignee becomes a party to this Agreement, the
Lender assignor was entitled to payments under subsection (a) in respect of
United States withholding tax with respect to interest paid at such date, then,
to such extent, the term Taxes shall include (in addition to withholding taxes
that may be imposed in the future or other amounts otherwise includable in
Taxes) United States withholding tax, if any, applicable with respect to the
Lender assignee on such date. If any form or document referred to in this
subsection (e) requires the disclosure of information, other than information
necessary to compute the tax payable and information required on the date hereof
by Internal Revenue Service
18
form W-8BEN or W-8ECI, that the Lender reasonably considers to be confidential,
the Lender shall give notice thereof to OFI and OCI and shall not be obligated
to include in such form or document such confidential information.
(f) For any period with respect to which a Lender has failed to provide
OFI and OCI with the appropriate form, certificate or other document described
in Section 2.13(e) (other than if such failure is due to a change in law, or in
the interpretation or application thereof, occurring subsequent to the date on
which a form, certificate or other document originally was required to be
provided, or if such form, certificate or other document otherwise is not
required under subsection (e) above), such Lender shall not be entitled to
indemnification under Section 2.13(a) or (c) with respect to Taxes imposed by
the United States by reason of such failure; provided, however, that should a
Lender become subject to Taxes because of its failure to deliver a form,
certificate or other document required hereunder, the Borrowers shall take such
steps as the Lender shall reasonably request to assist the Lender to recover
such Taxes.
(g) In respect of Advances to OFP, each Lender shall designate an
Applicable Lending Office that is beneficially entitled to interest under such
Advances and that, on the date of this Agreement or (in the case of any Person
that becomes a Lender hereunder by means of an assignment) on the date such
Lender becomes a party hereto is either (i) within the charge to United Kingdom
corporation tax in respect of interest in respect of an advance by a person that
was a bank (for the purposes of Section 349 Income and Corporation Taxes Act
1988) at the time the advance was made; or (ii) resident in a country with which
the United Kingdom has a double taxation agreement which makes provision for
full exemption from United Kingdom taxation on interest payable by OFP pursuant
to this Agreement and does not carry on business in the United Kingdom through a
permanent establishment with which the payment is effectively connected (each
such bank which is so resident being hereinafter in this Section 2.13 referred
to as a "Treaty Lender"); or (iii) a company resident in the United Kingdom, or
a partnership each member of which is a company resident in the United Kingdom
for United Kingdom tax purposes; or (iv) a company not so resident in the United
Kingdom which carries on a trade in the United Kingdom through a branch or
agency and which is required to bring into account interest payable to it by OFP
pursuant to this Agreement in computing its chargeable profits for the purposes
of Section 11(2) of the Income and Corporation Taxes Xxx 0000. If any Lender
does not or ceases to comply with clause (i), (ii), (iii) or (iv) above other
than by reason of any change after the date of this Agreement in (or in the
interpretation, administration or application of) any law or double taxation
agreement or any published practice or concession of any relevant taxing
authority, the Borrowers shall not be required to compensate such Lender under
Section 2.13(a) or 2.13(c) for the amount of Taxes imposed by the United Kingdom
in consequence. Any Lender to whom clause (ii) above is relevant shall cooperate
with OFP in promptly completing any procedural formalities necessary for OFP to
obtain authorization to make interest payments without deduction for UK income
tax.
(h) Each Treaty Lender irrevocably appoints the Agent to act as syndicate
manager under, and authorizes the Agent to operate, and take any action
necessary or desirable under, the PTR Scheme in connection with any Borrowing
hereunder. Each Treaty Lender shall cooperate with the Agent in completing any
procedural formalities necessary under the PTR Scheme, and shall promptly supply
to the Agent such information as the Agent may request in connection with the
operation of the PTR Scheme. Each Treaty Lender without limiting the liability
of any Borrower under this Agreement, shall, within five Business Days of
demand, indemnify the Agent for any liability or loss incurred by the Agent as a
result of the Agent acting as syndicate manager under the PTR Scheme in
connection with the Treaty Lender's participation in any Borrowing (except to
the extent that the liability or loss arises directly from the Agent's gross
negligence or willful misconduct). Each Treaty Lender shall, within five
Business Days of demand, indemnify each Borrower for any Tax which such Borrower
becomes liable to pay in respect of any payments made to such Treaty Lender
arising as a result of any incorrect information supplied by such Treaty Lender
which results in a provisional authority issued by the UK Inland Revenue under
the PTR Scheme being withdrawn. Each Borrower acknowledges that it is fully
aware of its contingent obligations under the PTR Scheme and shall (i) promptly
inform the Agent of all actions required to be performed by the Agent under the
PTR Scheme, (ii) promptly supply to the Agent such information as the Agent may
request in connection with the operation of the PTR Scheme; and (iii) act in
accordance with any provisional notice issued by the UK Inland Revenue under the
PTR Scheme. The Agent agrees to provide, as soon as reasonably practicable, a
copy of any provisional authority issued to it under the PTR Scheme in
connection with any Borrowing to those Borrowers specified in such provisional
authority. Each of the Borrowers, the Treaty Lenders and the Agent acknowledges
that the Agent: (i) is entitled to rely completely upon information provided to
it in connection with this clause; (ii) is not
19
obliged to undertake any inquiry into the accuracy of such information nor into
the status of the Treaty Lender or, as the case may be, Borrower providing such
information; and (iii) shall have no liability to any person for the accuracy of
any information it submits to the UK Inland Revenue in connection with this
clause.
(i) Any Lender claiming any additional amounts payable pursuant to this
Section 2.13 agrees to use reasonable efforts (consistent with its internal
policy and legal and regulatory restrictions) to change the jurisdiction of its
Eurocurrency Lending Office if the making of such a change would avoid the need
for, or reduce the amount of, any such additional amounts that may thereafter
accrue and would not, in the reasonable judgment of such Lender, be otherwise
disadvantageous to such Lender.
SECTION 2.14. Sharing of Payments, Etc. If any Lender shall obtain any
payment (whether voluntary, involuntary, through the exercise of any right of
set-off, or otherwise) on account of the Advances owing to it (other than
pursuant to Section 2.10, 2.13 or 9.04(c)) in excess of its ratable share of
payments on account of the Advances obtained by all the Lenders, such Lender
shall forthwith purchase from the other Lenders such participations in the
Advances owing to them as shall be necessary to cause such purchasing Lender to
share the excess payment ratably with each of them; provided, however, that if
all or any portion of such excess payment is thereafter recovered from such
purchasing Lender, such purchase from each Lender shall be rescinded and such
Lender shall repay to the purchasing Lender the purchase price to the extent of
such recovery together with an amount equal to such Lender's ratable share
(according to the proportion of (i) the amount of such Lender's required
repayment to (ii) the total amount so recovered from the purchasing Lender) of
any interest or other amount paid or payable by the purchasing Lender in respect
of the total amount so recovered. Each Borrower agrees that any Lender so
purchasing a participation from another Lender pursuant to this Section 2.14
may, to the fullest extent permitted by law, exercise all its rights of payment
(including the right of set-off) with respect to such participation as fully as
if such Lender were the direct creditor of such Borrower in the amount of such
participation.
SECTION 2.15. Evidence of Debt. (a) Each Lender shall maintain in
accordance with its usual practice an account or accounts evidencing the
indebtedness of each Borrower to such Lender resulting from each Advance owing
to such Lender from time to time, including the amounts of principal and
interest payable and paid to such Lender from time to time hereunder in respect
of Advances made to such Borrower. The Borrowers agree that upon notice by any
Lender to the Borrowers (with a copy of such notice to the Agent) to the effect
that a Note is required or appropriate in order for such Lender to evidence
(whether for purposes of pledge, enforcement or otherwise) the Advances owing
to, or to be made by, such Lender, the Borrowers shall promptly execute and
deliver to such Lender a Note payable to the order of such Lender in a principal
amount up to the Commitment of such Lender.
(b) The Register maintained by the Agent pursuant to Section 9.07(d) shall
include a control account, and a subsidiary account for each Lender, in which
accounts (taken together) shall be recorded (i) the date and amount of each
Borrowing made hereunder, the Type of Advances comprising such Borrowing and, if
appropriate, the Interest Period applicable thereto, (ii) the terms of each
Assumption Agreement and each Assignment and Acceptance delivered to and
accepted by it, (iii) the amount of any principal or interest due and payable or
to become due and payable from each Borrower to each Lender hereunder and (iv)
the amount of any sum received by the Agent from each Borrower hereunder and
each Lender's share thereof.
(c) Entries made in good faith by the Agent in the Register pursuant to
subsection (b) above, and by each Lender in its account or accounts pursuant to
subsection (a) above, shall be prima facie evidence of the amount of principal
and interest due and payable or to become due and payable from each Borrower to,
in the case of the Register, each Lender and, in the case of such account or
accounts, such Lender, under this Agreement, absent manifest error; provided,
however, that the failure of the Agent or such Lender to make an entry, or any
finding that an entry is incorrect, in the Register or such account or accounts
shall not limit or otherwise affect the obligations of any Borrower under this
Agreement.
SECTION 2.16. Use of Proceeds. The proceeds of the Advances shall be
available (and each Borrower agrees that it shall use such proceeds) solely for
general corporate purposes of the Borrowers and their Subsidiaries.
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SECTION 2.17. Increase in the Aggregate Commitments. (a) The Guarantor
may, at any time but in any event not more than once in any calendar year prior
to the Termination Date, by notice to the Agent, request that the aggregate
amount of the Commitments be increased by an amount of $10,000,000 or an
integral multiple thereof (each a "Commitment Increase") to be effective as of a
date that is at least 90 days prior to the scheduled Termination Date then in
effect (the "Increase Date") as specified in the related notice to the Agent;
provided, however that (i) in no event shall the aggregate amount of the
Commitments at any time exceed $1,000,000,000 and (ii) on the date of any
request by the Guarantor for a Commitment Increase and on the related Increase
Date the applicable conditions set forth in Article III shall be satisfied.
(b) The Agent shall promptly notify the Lenders of a request by the
Guarantor for a Commitment Increase, which notice shall include (i) the proposed
amount of such requested Commitment Increase, (ii) the proposed Increase Date
and (iii) the date by which Lenders wishing to participate in the Commitment
Increase must commit to an increase in the amount of their respective
Commitments (the "Commitment Date"). Each Lender that is willing to participate
in such requested Commitment Increase (each an "Increasing Lender") shall, in
its sole discretion, give written notice to the Agent on or prior to the
Commitment Date of the amount by which it is willing to increase its Commitment.
If the Lenders notify the Agent that they are willing to increase the amount of
their respective Commitments by an aggregate amount that exceeds the amount of
the requested Commitment Increase, the requested Commitment Increase shall be
allocated among the Lenders willing to participate therein in such amounts as
are agreed between the Guarantor and the Agent.
(c) Promptly following each Commitment Date, the Agent shall notify the
Guarantor as to the amount, if any, by which the Lenders are willing to
participate in the requested Commitment Increase. If the aggregate amount by
which the Lenders are willing to participate in any requested Commitment
Increase on any such Commitment Date is less than the requested Commitment
Increase, then the Guarantor may extend offers to one or more Eligible Assignees
to participate in any portion of the requested Commitment Increase that has not
been committed to by the Lenders as of the applicable Commitment Date; provided,
however, that the Commitment of each such Eligible Assignee shall be in an
amount of $10,000,000 or an integral multiple of $1,000,000 in excess thereof.
(d) On each Increase Date, each Eligible Assignee that accepts an offer to
participate in a requested Commitment Increase in accordance with Section
2.17(b) (each such Eligible Assignee, an "Assuming Lender") shall become a
Lender party to this Agreement as of such Increase Date and the Commitment of
each Increasing Lender for such requested Commitment Increase shall be so
increased by such amount (or by the amount allocated to such Lender pursuant to
the last sentence of Section 2.17(b)) as of such Increase Date; provided,
however, that the Agent shall have received on or before such Increase Date the
following, each dated such date:
(i) (A) certified copies of resolutions of the Board of Directors of
each Loan Party or the Executive Committee of such Board approving the
Commitment Increase and (B) an opinion of counsel for the Loan Parties
(which may be in-house counsel), in substantially the form of Exhibits D-1
and D-2 hereto;
(ii) an assumption agreement from each Assuming Lender, if any, in
form and substance satisfactory to the Guarantor and the Agent (each an
"Assumption Agreement"), duly executed by such Eligible Assignee, the
Agent and the Guarantor; and
(iii) confirmation from each Increasing Lender of the increase in
the amount of its Commitment in a writing satisfactory to the Guarantor
and the Agent.
On each Increase Date, upon fulfillment of the conditions set forth in the
immediately preceding sentence of this Section 2.17(d), the Agent shall notify
the Lenders (including, without limitation, each Assuming Lender) and the Loan
Parties, on or before 1:00 P.M. (New York City time), by telecopier or telex, of
the occurrence of the Commitment Increase to be effected on such Increase Date
and shall record in the Register the relevant information with respect to each
Increasing Lender and each Assuming Lender on such date.
21
ARTICLE III
CONDITIONS TO EFFECTIVENESS AND LENDING
SECTION 3.01. Conditions Precedent to Effectiveness of Section 2.01.
Section 2.01 of this Agreement shall become effective on and as of the first
date (the "Effective Date") on which the following conditions precedent have
been satisfied:
(a) There shall have occurred no Material Adverse Change since
December 31, 2001.
(b) There shall exist no action, suit, investigation, litigation or
proceeding affecting the Guarantor or any of its Subsidiaries pending or
threatened before any court, governmental agency or arbitrator that (i)
could be reasonably likely to have a Material Adverse Effect other than
the matters described on Schedule 3.01(b) hereto (the "Disclosed
Litigation") or (ii) purports to affect the legality, validity or
enforceability of this Agreement or any Note or the consummation of the
transactions contemplated hereby, and there shall have been no adverse
change in the status, or financial effect on the Guarantor or any of its
Subsidiaries, of the Disclosed Litigation from that described on Schedule
3.01(b) hereto.
(c) Nothing shall have come to the attention of the Lenders during
the course of their due diligence investigation to lead them to believe
that the Information Memorandum was or has become misleading, incorrect or
incomplete in any material respect; without limiting the generality of the
foregoing, the Lenders shall have been given such access to the
management, records, books of account, contracts and properties of the
Guarantor and its Subsidiaries as they shall have requested.
(d) All governmental and third party consents and approvals
necessary in connection with the transactions contemplated hereby shall
have been obtained (without the imposition of any conditions that are not
acceptable to the Lenders) and shall remain in effect, and no law or
regulation shall be applicable in the reasonable judgment of the Lenders
that restrains, prevents or imposes materially adverse conditions upon the
transactions contemplated hereby.
(e) The Borrowers shall have notified each Lender and the Agent in
writing as to the proposed Effective Date.
(f) The Borrowers shall have paid all accrued fees and expenses of
the Agent and the Lenders (including the accrued fees and expenses of
counsel to the Agent).
(g) On the Effective Date, the following statements shall be true
and the Agent shall have received for the account of each Lender a
certificate signed by a duly authorized officer of the Guarantor, dated
the Effective Date, stating that:
(i) The representations and warranties contained in Section
4.01 are correct on and as of the Effective Date, and
(ii) No event has occurred and is continuing that constitutes
a Default.
(h) The Agent shall have received on or before the Effective Date
the following, each dated such day, in form and substance satisfactory to
the Agent and (except for the Notes) in sufficient copies for each Lender:
(i) The Notes to the order of the Lenders to the extent
requested by any Lender pursuant to Section 2.15.
(ii) Certified copies of the resolutions of the Board of
Directors of each Loan Party approving this Agreement and the Notes
to which it is a party, and of all documents evidencing
22
other necessary corporate action and governmental approvals, if any,
with respect to this Agreement and the Notes to which it is a party.
(iii) A certificate of the Secretary or an Assistant Secretary
of each Loan Party certifying the names and true signatures of the
officers of such Loan Party authorized to sign this Agreement and
the Notes to which it is a party and the other documents to be
delivered by it hereunder.
(iv) A favorable opinion of Xxxxx Xxxxxxxxxx LLP, New York
counsel for the Loan Parties, and MacFarlanes, English counsel for
OFP, substantially in the form of Exhibits D-1 and D-2 hereto,
respectively, and as to such other matters as any Lender through the
Agent may reasonably request.
(v) A favorable opinion of Shearman & Sterling, counsel for
the Agent, in form and substance satisfactory to the Agent.
(i) The Borrowers shall have terminated the commitments and paid in
full all Debt, interest, fees and other amounts outstanding, under (x) the
364-Day Credit Agreement dated as of April 25, 2002 among the Borrowers,
the lenders parties thereto and Citibank, as agent, and (y) the Amended
and Restated Five Year Credit Agreement dated as of May 10, 1996, as
amended, among the Borrowers, the lenders parties thereto and ABN AMRO
Bank N.V., as agent, and each of the Lenders that is a party to either
such credit agreement hereby waives, upon the execution of this Agreement,
any requirement of prior notice relating to the termination of the
commitments thereunder.
SECTION 3.02. Conditions Precedent to Each Borrowing and Each Commitment
Increase. The obligation of each Lender to make an Advance on the occasion of
each Borrowing and each Commitment Increase shall be subject to the conditions
precedent that the Effective Date shall have occurred and on the date of such
Borrowing or such Increase Date (a) the following statements shall be true (and
each of the giving of the applicable Notice of Borrowing, request for Commitment
Increase and the acceptance by a Borrower of the proceeds of such Borrowing
shall constitute a representation and warranty by such Borrower that on the date
of such Borrowing or such Increase Date such statements are true):
(i) the representations and warranties contained in Section 4.01
(except, in the case of a Borrowing, the representations set forth in the
last sentence of subsection (e) thereof and in subsection (f)(i) thereof)
are correct on and as of such date, before and after giving effect to such
Borrowing or such Commitment Increase and to the application of the
proceeds therefrom, as though made on and as of such date, and
(ii) no event has occurred and is continuing, or would result from
such Borrowing or such Commitment Increase or from the application of the
proceeds therefrom, that constitutes a Default;
and (b) the Agent shall have received such other approvals, opinions or
documents as any Lender through the Agent may reasonably request.
SECTION 3.03. Determinations Under Section 3.01. For purposes of
determining compliance with the conditions specified in Section 3.01, each
Lender shall be deemed to have consented to, approved or accepted or to be
satisfied with each document or other matter required thereunder to be consented
to or approved by or acceptable or satisfactory to the Lenders unless an officer
of the Agent responsible for the transactions contemplated by this Agreement
shall have received notice from such Lender prior to the date that the
Borrowers, by notice to the Lenders, designate as the proposed Effective Date,
specifying its objection thereto. The Agent shall promptly notify the Lenders of
the occurrence of the Effective Date.
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ARTICLE IV
REPRESENTATIONS AND WARRANTIES
SECTION 4.01. Representations and Warranties of the Guarantor. The
Guarantor represents and warrants as follows:
(a) Each Loan Party is a corporation duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization.
(b) The execution, delivery and performance by each Loan Party of
this Agreement and the Notes to be delivered by it, and the consummation
of the transactions contemplated hereby, are within the such Loan Party's
corporate powers, have been duly authorized by all necessary corporate
action, and do not contravene (i) the such Loan Party's charter or by-laws
or other organizational documents or (ii) law or any contractual
restriction binding on or affecting any Loan Party.
(c) No authorization or approval or other action by, and no notice
to or filing with, any governmental authority or regulatory body or any
other third party is required for the due execution, delivery and
performance by the any Loan Party of this Agreement or the Notes to be
delivered by it.
(d) This Agreement has been, and each of the Notes to be delivered
by it when delivered hereunder will have been, duly executed and delivered
by each Loan Party party thereto. This Agreement is, and each of the Notes
when delivered hereunder will be, the legal, valid and binding obligation
of each Loan Party party thereto enforceable against such Loan Party in
accordance with their respective terms.
(e) The Consolidated balance sheet of the Guarantor and its
Subsidiaries as at December 31, 2001, and the related Consolidated
statements of income and cash flows of the Guarantor and its Subsidiaries
for the fiscal year then ended, accompanied by an opinion of Xxxxxx
Xxxxxxxx LLP, independent public accountants, and the Consolidated balance
sheet of the Guarantor and its Subsidiaries as at June 30, 2002, and the
related Consolidated statements of income and cash flows of the Guarantor
and its Subsidiaries for the six months then ended, duly certified by the
chief financial officer of the Guarantor, copies of which have been
furnished to each Lender, fairly present, subject, in the case of said
balance sheet as at June 30, 2002, and said statements of income and cash
flows for the six months then ended, to year-end audit adjustments, the
Consolidated financial condition of the Guarantor and its Subsidiaries as
at such dates and the Consolidated results of the operations of the
Guarantor and its Subsidiaries for the periods ended on such dates, all in
accordance with generally accepted accounting principles consistently
applied. Since December 31, 2001, there has been no Material Adverse
Change.
(f) There is no pending or, to the knowledge of the Guarantor,
threatened action, suit, investigation, litigation or proceeding,
including, without limitation, any Environmental Action, affecting the
Guarantor or any of its Subsidiaries before any court, governmental agency
or arbitrator that (i) could be reasonably likely to have a Material
Adverse Effect (other than the Disclosed Litigation), and there has been
no adverse change in the status, or financial effect on the Guarantor or
any of its Subsidiaries, of the Disclosed Litigation from that described
on Schedule 3.01(b) hereto or (ii) purports to affect the legality,
validity or enforceability of this Agreement or any Note or the
consummation of the transactions contemplated hereby.
(g) No Loan Party is engaged in the business of extending credit for
the purpose of purchasing or carrying margin stock (within the meaning of
Regulation U issued by the Board of Governors of the Federal Reserve
System), and no proceeds of any Advance will be used to purchase or carry
any margin stock or to extend credit to others for the purpose of
purchasing or carrying any margin stock.
(h) No Loan Party is an "investment company", or a company
"controlled" by an "investment company", within the meaning of the
Investment Company Act of 1940, as amended.
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(i) All factual information (taken as a whole) heretofore or
contemporaneously furnished by or on behalf of any Loan Party in writing
to any Lender (including, without limitation, all information contained in
this Agreement) for purposes of or in connection with this Agreement or
any transaction contemplated herein is, and all other such factual
information (taken as a whole) hereafter furnished by or on behalf of such
Loan Party in writing to any Lender will be, true and accurate in all
material respects on the date as of which such information is dated or
certified and does not or will not omit to state any fact necessary to
make such information (taken as a whole) not misleading in any material
respect at such time in light of the circumstances under which such
information was provided.
ARTICLE V
COVENANTS OF THE GUARANTOR
SECTION 5.01. Affirmative Covenants. So long as any Advance shall remain
unpaid or any Lender shall have any Commitment hereunder, the Guarantor will:
(a) Compliance with Laws, Etc. Comply, and cause each of its
Subsidiaries to comply with all applicable laws, rules, regulations and
orders, such compliance to include, without limitation, compliance with
ERISA and Environmental Laws except, in each case, to the extent that
failure to comply would not reasonably be expected to have a Material
Adverse Effect.
(b) Payment of Taxes, Etc. Pay and discharge, and cause each of its
Subsidiaries to pay and discharge, before the same shall become
delinquent, (i) all taxes, assessments and governmental charges or levies
imposed upon it or upon its property and (ii) all lawful claims that, if
unpaid, might by law become a Lien upon its property; provided, however,
that neither the Guarantor nor any of its Subsidiaries shall be required
to pay or discharge any such tax, assessment, charge or claim that is
being contested in good faith and by proper proceedings and as to which
appropriate reserves are being maintained.
(c) Maintenance of Insurance. Maintain, and cause each of its
Subsidiaries to maintain, insurance with responsible and reputable
insurance companies or associations in such amounts and covering such
risks as is usually carried by companies engaged in similar businesses and
owning similar properties in the same general areas in which the Guarantor
or such Subsidiary operates.
(d) Preservation of Corporate Existence, Etc. Preserve and maintain,
and cause each of its Subsidiaries to preserve and maintain, its corporate
existence, rights (charter and statutory) and franchises; provided,
however, that the Guarantor and its Subsidiaries may consummate any merger
or consolidation permitted under Section 5.02(b) and provided further that
neither the Guarantor nor any of its Subsidiaries shall be required to
preserve any right or franchise if the Board of Directors of the Guarantor
or such Subsidiary shall determine that the preservation thereof is no
longer desirable in the conduct of the business of the Guarantor or such
Subsidiary, as the case may be, and that the loss thereof is not
disadvantageous in any material respect to the Guarantor, such Subsidiary
or the Lenders.
(e) Visitation Rights. At any reasonable time and from time to time,
permit the Agent or any of the Lenders or any agents or representatives
thereof, to examine and make copies of and abstracts from the records and
books of account of, and visit the properties of, the Guarantor and any of
its Subsidiaries, and to discuss the affairs, finances and accounts of the
Guarantor and any of its Subsidiaries with any of their officers or
directors and with their independent certified public accountants.
(f) Keeping of Books. Keep, and cause each of its Subsidiaries to
keep, proper books of record and account, in which full and correct
entries shall be made of all financial transactions and the assets and
business of the Guarantor and each such Subsidiary in accordance with
generally accepted accounting principles in effect from time to time.
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(g) Maintenance of Properties, Etc. Maintain and preserve, and cause
each of its Subsidiaries to maintain and preserve, all of its properties
that are used or useful in the conduct of its business in good working
order and condition, ordinary wear and tear excepted.
(h) Transactions with Affiliates. Conduct, and cause each of its
Subsidiaries to conduct, all transactions otherwise permitted under this
Agreement with any of their Affiliates on terms that are fair and
reasonable and no less favorable to the Guarantor or such Subsidiary than
it would obtain in a comparable arm's-length transaction with a Person not
an Affiliate.
(i) Reporting Requirements. Furnish to the Lenders:
(i) as soon as available and in any event within 50 days after
the end of each of the first three quarters of each fiscal year of
the Guarantor, the Consolidated balance sheet of the Guarantor and
its Subsidiaries as of the end of such quarter and Consolidated
statements of income and cash flows of the Guarantor and its
Subsidiaries for the period commencing at the end of the previous
fiscal year and ending with the end of such quarter, duly certified
(subject to year-end audit adjustments) by the chief financial
officer of the Guarantor as having been prepared in accordance with
generally accepted accounting principles and certificates of the
chief financial officer of the Guarantor as to compliance with the
terms of this Agreement and setting forth in reasonable detail the
calculations necessary to demonstrate compliance with Section 5.03,
provided that in the event of any change in generally accepted
accounting principles used in the preparation of such financial
statements, the Guarantor shall also provide, if necessary for the
determination of compliance with Section 5.03, a statement of
reconciliation conforming such financial statements to GAAP;
(ii) as soon as available and in any event within 95 days
after the end of each fiscal year of the Guarantor, a copy of the
annual audit report for such year for the Guarantor and its
Subsidiaries, containing the Consolidated balance sheet of the
Guarantor and its Subsidiaries as of the end of such fiscal year and
Consolidated statements of income and cash flows of the Guarantor
and its Subsidiaries for such fiscal year, in each case accompanied
by an opinion acceptable to the Required Lenders by KPMG LLP or
other independent public accountants acceptable to the Required
Lenders and certificates of the chief financial officer of the
Guarantor as to compliance with the terms of this Agreement and
setting forth in reasonable detail the calculations necessary to
demonstrate compliance with Section 5.03, provided that in the event
of any change in generally accepted accounting principles used in
the preparation of such financial statements, the Guarantor shall
also provide, if necessary for the determination of compliance with
Section 5.03, a statement of reconciliation conforming such
financial statements to GAAP;
(iii) as soon as possible and in any event within five days
after any senior officer of the Guarantor or a Borrower becomes
aware or should have become aware of the occurrence of any Default,
the occurrence of each Default continuing on the date of such
statement, a statement of the chief financial officer of the
Guarantor setting forth details of such Default and the action that
the Guarantor has taken and proposes to take with respect thereto;
(iv) promptly after the sending or filing thereof, copies of
all reports that the Guarantor sends to any of its securityholders,
and copies of all reports and registration statements that the
Guarantor or any Subsidiary files with the Securities and Exchange
Commission or any national securities exchange;
(v) promptly after the commencement thereof, notice of all
actions and proceedings before any court, governmental agency or
arbitrator affecting the Guarantor or any of its Subsidiaries of the
type described in Section 4.01(f); and
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(vi) such other information respecting the Guarantor or any of
its Subsidiaries as any Lender through the Agent may from time to
time reasonably request.
Reports and financial statements required to be delivered by the
Guarantor pursuant to paragraphs (i), (ii), (iv) and (v) of this Section
5.01(i) shall be deemed to have been delivered on the date on which it
posts such reports, or reports containing such financial statements, on
its website on the Internet at xxx.xxxxxxxxxxxx.xxx or when such reports,
or reports containing such financial statements are posted on the SEC's
website at xxx.xxx.xxx; provided that it shall deliver notice that such
reports and financial statements are so available and shall deliver paper
copies of the reports and financial statements referred to in paragraphs
(i), (ii), (iv) and (v) of this Section 5.01(i) to the Agent or any Lender
who requests it to deliver such paper copies until written notice to cease
delivering paper copies is given by the Agent or such Lender.
SECTION 5.02. Negative Covenants. So long as any Advance shall remain
unpaid or any Lender shall have any Commitment hereunder, the Guarantor will
not:
(a) Liens, Etc. Create or suffer to exist, or permit any of its
Subsidiaries to create or suffer to exist, any Lien on or with respect to
any of its properties, whether now owned or hereafter acquired, or assign,
or permit any of its Subsidiaries to assign, any right to receive income,
other than:
(i) Permitted Liens,
(ii) purchase money Liens upon or in any real property or
equipment acquired or held by the Guarantor or any Subsidiary in the
ordinary course of business to secure the purchase price of such
property or equipment or to secure Debt incurred solely for the
purpose of financing the acquisition of such property or equipment,
or Liens existing on such property or equipment at the time of its
acquisition (other than any such Liens created in contemplation of
such acquisition that were not incurred to finance the acquisition
of such property) or extensions, renewals or replacements of any of
the foregoing for the same or a lesser amount, provided, however,
that no such Lien shall extend to or cover any properties of any
character other than the real property or equipment being acquired
and fixed improvements thereon or accessions thereto, and no such
extension, renewal or replacement shall extend to or cover any
properties not theretofore subject to the Lien being extended,
renewed or replaced,
(iii) the Liens existing on the Effective Date and described
on Schedule 5.02(a) hereto,
(iv) Liens on property of a Person existing at the time such
Person is merged into or consolidated with the Guarantor or any
Subsidiary of the Guarantor or becomes a Subsidiary of the
Guarantor; provided that such Liens were not created in
contemplation of such merger, consolidation or acquisition and do
not extend to any assets other than those of the Person so merged
into or consolidated with the Guarantor or such Subsidiary or
acquired by the Guarantor or such Subsidiary,
(v) Liens securing Debt permitted by Section 5.02(d)(vii),
(vi) Liens granted by Subsidiaries of the Guarantor (other
than the Borrowers) to secure Debt permitted by Section 5.02(d)(iv),
and
(vii) other Liens securing Debt, provided that the aggregate
principal amount of such secured Debt shall not exceed 15% of the
Consolidated net worth of the Guarantor and its Subsidiaries at any
time.
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(b) Mergers, Etc. Merge or consolidate with or into, or convey,
transfer, lease or otherwise dispose of (whether in one transaction or in
a series of transactions) all or substantially all of its assets (whether
now owned or hereafter acquired) to, any Person, or permit any of the
Borrowers to do so.
(c) Accounting Changes. Make or permit, or permit any of its
Subsidiaries to make or permit, any change in accounting policies or
reporting practices, except as required or permitted by generally accepted
accounting principles.
(d) Subsidiary Debt. Permit any of its Subsidiaries to create or
suffer to exist, any Debt other than:
(i) Debt existing on the Effective Date and described on
Schedule 5.02(d) hereto (the "Existing Debt"), and any Debt
extending the maturity of, or refunding or refinancing, in whole or
in part, the Existing Debt, provided that the principal amount of
such Existing Debt shall not be increased above the principal amount
thereof outstanding immediately prior to such extension, refunding
or refinancing plus any capitalized fees incurred in connection
therewith, and the direct and contingent obligors therefor shall not
be changed (other than to release any contingent obligor), as a
result of or in connection with such extension, refunding or
refinancing,
(ii) accrued expenses and trade payables incurred in the
ordinary course of business, and obligations under trade letters of
credit incurred in the ordinary course of business, which are to be
repaid in full not more than one year after the date on which such
Debt is originally incurred to finance the purchase of goods by such
Subsidiary,
(iii) obligations under letters of credit or surety bonds
incurred in the ordinary course of business in support of
obligations incurred in connection with leases, worker's
compensation, unemployment insurance and other social security
legislation,
(iv) Debt owed to the Guarantor or to a wholly owned
Subsidiary of the Guarantor,
(v) Debt of the Borrowers,
(vi) other Debt of Subsidiaries of the Guarantor which are not
organized under the laws of the United States of America, a State of
the United States of America or the District of Columbia and
substantially all of whose assets and business are located or
conducted outside the United States of America,
(vii) Debt of a Person existing at the time such Person is
merged into or consolidated with the Guarantor or any Subsidiary of
the Guarantor or becomes a Subsidiary of the Guarantor; provided
that such Debt was not created in contemplation of such merger,
consolidation or acquisition, provided further that the aggregate
principal amount of the Debt referred to in this clause (iv) shall
not exceed $50,000,000 at any time outstanding,
(viii) (x) Debt consisting of any guaranty made any Subsidiary
of the Guarantor in respect of Debt of any Loan Party, provided that
such Subsidiary shall have entered into a guaranty of the Debt of
the Guarantor under this Agreement in form and substance reasonably
satisfactory to the Required Lenders and (y) Debt constituting
guaranties of the Debt of the Guarantor under this Agreement, and
(ix) indorsement of negotiable instruments for deposit or
collection or similar transactions in the ordinary course of
business.
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(e) Change in Nature of Business. Make, or permit any of its
Subsidiaries to make, any material change in the nature of its business as
carried on at the date hereof and other reasonably related businesses or
businesses reasonably incidental thereto.
(f) Payment Restrictions Affecting Subsidiaries. Directly or
indirectly, enter into or suffer to exist, or permit any of its
Subsidiaries to enter into or suffer to exist, any agreement or
arrangement limiting the ability or any of its Subsidiaries to (i) pay
dividends or make any other distributions on its capital stock or any
other interest or participation in its profits owned by the Guarantor or
any of its Subsidiaries, or pay any Debt owed to the Guarantor or any of
its Subsidiaries, (ii) make loans or advances to the Guarantor or (iii)
transfer any of its properties or assets to the Guarantor, except for such
agreements or arrangements existing under or by reason of (x) applicable
law, (y) this Agreement and (z) customary provisions restricting
subletting or assignment of any lease governing a leasehold interest of a
Subsidiary of the Guarantor.
SECTION 5.03. Financial Covenants. So long as any Advance shall remain
unpaid or any Lender shall have any Commitment hereunder, the Guarantor will:
(a) Leverage Ratio. Maintain a ratio of Consolidated Debt for
Borrowed Money of the Guarantor and its Subsidiaries to Consolidated
EBITDA of the Guarantor and its Subsidiaries for the four quarters most
recently ended of not greater than 3.0 to 1.
(b) Interest Coverage Ratio. Maintain a ratio of Consolidated EBITDA
of the Guarantor and its Subsidiaries for the four quarters most recently
ended to interest payable on, and amortization of debt discount in respect
of, all Debt during such period by the Guarantor and its Subsidiaries of
not less than 5.0 to 1.
ARTICLE VI
EVENTS OF DEFAULT
SECTION 6.01. Events of Default. If any of the following events ("Events
of Default") shall occur and be continuing:
(a) Any Borrower shall fail to pay any principal of any Advance when
the same becomes due and payable; or any Borrower shall fail to pay any
interest on any Advance or make any other payment of fees or other amounts
payable under this Agreement or any Note within three Business Days after
the same becomes due and payable; or
(b) Any representation or warranty made by the Guarantor herein or
by any Loan Party (or any of its officers) in connection with this
Agreement shall prove to have been incorrect in any material respect when
made; or
(c) (i) The Guarantor shall fail to perform or observe any term,
covenant or agreement contained in Section 5.01(d), (e), (h) or (i), 5.02
or 5.03, or (ii) any Loan Party shall fail to perform or observe any other
term, covenant or agreement contained in this Agreement on its part to be
performed or observed if such failure shall remain unremedied for 30 days
after written notice thereof shall have been given to the Guarantor by the
Agent or any Lender; or
(d) The Guarantor or any of its Subsidiaries shall fail to pay any
principal of or premium or interest on any Debt that is outstanding in a
principal or notional amount of at least $60,000,000 in the aggregate (but
excluding Debt outstanding hereunder) of the Guarantor or such Subsidiary
(as the case may be), when the same becomes due and payable (whether by
scheduled maturity, required prepayment, acceleration, demand or
otherwise), and such failure shall continue after the applicable grace
period, if any, specified in the agreement or instrument relating to such
Debt; or any other event shall occur or condition
29
shall exist under any agreement or instrument relating to any such Debt
and shall continue after the applicable grace period, if any, specified in
such agreement or instrument, if the effect of such event or condition is
to accelerate, or to permit the acceleration of, the maturity of such
Debt; or any such Debt shall be declared to be due and payable, or
required to be prepaid or redeemed (other than by a regularly scheduled
required prepayment or redemption), purchased or defeased, or an offer to
prepay, redeem, purchase or defease such Debt shall be required to be
made, in each case prior to the stated maturity thereof; or
(e) The Guarantor or any of its Subsidiaries shall generally not pay
its debts as such debts become due, or shall admit in writing its
inability to pay its debts generally, or shall make a general assignment
for the benefit of creditors; or any proceeding shall be instituted by or
against the Guarantor or any of its Subsidiaries seeking to adjudicate it
a bankrupt or insolvent, or seeking liquidation, winding up,
reorganization, arrangement, adjustment, protection, relief, or
composition of it or its debts under any law relating to bankruptcy,
insolvency or reorganization or relief of debtors, or seeking the entry of
an order for relief or the appointment of a receiver, trustee, custodian
or other similar official for it or for any substantial part of its
property and, in the case of any such proceeding instituted against it
(but not instituted by it), either such proceeding shall remain
undismissed or unstayed for a period of 60 days, or any of the actions
sought in such proceeding (including, without limitation, the entry of an
order for relief against, or the appointment of a receiver, trustee,
custodian or other similar official for, it or for any substantial part of
its property) shall occur; or the Guarantor or any of its Subsidiaries
shall take any corporate action to authorize any of the actions set forth
above in this subsection (e); or
(f) Judgments or orders for the payment of money in excess of
$60,000,000 in the aggregate shall be rendered against the Guarantor or
any of its Subsidiaries and either (i) enforcement proceedings shall have
been commenced by any creditor upon such judgment or order or (ii) there
shall be any period of 60 consecutive days during which a stay of
enforcement of such judgment or order, by reason of a pending appeal or
otherwise, shall not be in effect; provided, however, that any such
judgment or order shall not be an Event of Default under this Section
6.01(f) if and for so long as (i) the amount of such judgment or order is
covered by a valid and binding policy of insurance between the defendant
and the insurer covering payment thereof and (ii) such insurer, which
shall be rated at least "A" by A.M. Best Company, has been notified of,
and has not disputed the claim made for payment of, the amount of such
judgment or order; or
(g) (i) Any Person or two or more Persons acting in concert shall
have acquired beneficial ownership (within the meaning of Rule 13d-3 of
the Securities and Exchange Commission under the Securities Exchange Act
of 1934), directly or indirectly, of Voting Stock of the Guarantor (or
other securities convertible into such Voting Stock) representing 30% or
more of the combined voting power of all Voting Stock of the Guarantor; or
(ii) during any period of up to 12 consecutive months, commencing after
the date of this Agreement, individuals who at the beginning of such
12-month period were directors of the Guarantor shall cease for any reason
to constitute a majority of the board of directors of the Guarantor; or
(iii) the Guarantor shall cease for any reason to own, directly or
indirectly, 100% of the Voting Stock of each of the Borrowers; or
(h) Any material provision of the Guaranty shall cease to be valid
and binding on or enforceable against the Guarantor, or the Guarantor
shall so state in writing; or
(i) The Guarantor or any of its ERISA Affiliates shall incur, or
shall be reasonably likely to incur liability in excess of $60,000,000 in
the aggregate as a result of one or more of the following: (i) the
occurrence of any ERISA Event; (ii) the partial or complete withdrawal of
the Guarantor or any of its ERISA Affiliates from a Multiemployer Plan; or
(iii) the reorganization or termination of a Multiemployer Plan;
then, and in any such event, the Agent (i) shall at the request, or may with the
consent, of the Required Lenders, by notice to the Borrowers, declare the
obligation of each Lender to make Advances to be terminated, whereupon the same
shall forthwith terminate, and (ii) shall at the request, or may with the
consent, of the Required Lenders, by
30
notice to the Borrowers, declare the Advances, all interest thereon and all
other amounts payable under this Agreement to be forthwith due and payable,
whereupon the Advances, all such interest and all such amounts shall become and
be forthwith due and payable, without presentment, demand, protest or further
notice of any kind, all of which are hereby expressly waived by each Borrower;
provided, however, that in the event of an actual or deemed entry of an order
for relief with respect to any Loan Party under the Federal Bankruptcy Code, (A)
the obligation of each Lender to make Advances shall automatically be terminated
and (B) the Advances, all such interest and all such amounts shall automatically
become and be due and payable, without presentment, demand, protest or any
notice of any kind, all of which are hereby expressly waived by the Borrowers.
ARTICLE VII
GUARANTY
SECTION 7.01. Guaranty. The Guarantor hereby absolutely, unconditionally
and irrevocably guarantees the punctual payment when due, whether at scheduled
maturity or on any date of a required prepayment or by acceleration, demand or
otherwise, of all obligations of each other Loan Party now or hereafter existing
under or in respect of the this Agreement and the Notes (including, without
limitation, any extensions, modifications, substitutions, amendments or renewals
of any or all of the foregoing obligations), whether direct or indirect,
absolute or contingent, and whether for principal, interest, premiums, fees,
indemnities, contract causes of action, costs, expenses or otherwise (such
obligations being the "Guaranteed Obligations"), and agrees to pay any and all
expenses (including, without limitation, fees and expenses of outside counsel
and the allocated costs and expenses of in-house counsel) incurred by the Agent
or any Lender in enforcing any rights under this Agreement. Without limiting the
generality of the foregoing, the Guarantor's liability shall extend to all
amounts that constitute part of the Guaranteed Obligations and would be owed by
any other Loan Party to the Agent or any Lender under or in respect of this
Agreement and the Notes but for the fact that they are unenforceable or not
allowable due to the existence of a bankruptcy, reorganization or similar
proceeding involving such other Loan Party.
SECTION 7.02. Guaranty Absolute. The Guarantor guarantees that the
Guaranteed Obligations will be paid strictly in accordance with the terms of
this Agreement and the Notes, regardless of any law, regulation or order now or
hereafter in effect in any jurisdiction affecting any of such terms or the
rights of the Agent or any Lender with respect thereto. This Guaranty is an
absolute and unconditional guaranty of payment when due, and not of collection,
by the Guarantor of the Guaranteed Obligations. The obligations of the Guarantor
under or in respect of this Guaranty are independent of the Guaranteed
Obligations or any other obligations of any other Loan Party under or in respect
of this Agreement and the Notes, and a separate action or actions may be brought
and prosecuted against the Guarantor to enforce this Guaranty, irrespective of
whether any action is brought against any Borrower or whether any Borrower is
joined in any such action or actions. The liability of the Guarantor under this
Guaranty shall be irrevocable, absolute and unconditional irrespective of, and
the Guarantor hereby irrevocably waives any defenses it may now have or
hereafter acquire in any way relating to, any or all of the following:
(a) any lack of validity or enforceability of any provision of this
Agreement or any Note or any agreement or instrument relating thereto;
(b) any change in the time, manner or place of payment of, or in any
other term of, all or any of the Guaranteed Obligations or any other
obligations of any Borrower under or in respect of this Agreement or the
Notes, or any other amendment or waiver of or any consent to departure
from this Agreement or the Notes, including, without limitation, any
increase in the Guaranteed Obligations resulting from the extension of
additional credit to any Borrower or any of its Subsidiaries or otherwise;
(c) any taking, exchange, release or non-perfection of any
collateral, or any taking, release or amendment or waiver of, or consent
to departure from, any other guaranty, for all or any of the Guaranteed
Obligations;
(d) any manner of application of collateral, or proceeds thereof, to
all or any of the Guaranteed Obligations, or any manner of sale or other
disposition of any collateral for all or any of the
31
Guaranteed Obligations or any other obligations of any Loan Party under
this Agreement or the Notes or any other assets of any Borrower or any of
its Subsidiaries;
(e) any change, restructuring or termination of the corporate
structure or existence of any Borrower or any of its Subsidiaries;
(f) any failure of the Agent or any Lender to disclose to the
Guarantor any information relating to the business, condition (financial
or otherwise), operations, performance, properties or prospects of any
Borrower now or hereafter known to the Agent or such Lender (the Guarantor
waiving any duty on the part of the Agent and the Lenders to disclose such
information);
(g) the failure of any other Person to execute or deliver any other
guaranty or agreement or the release or reduction of liability of the
Guarantor or other guarantor or surety with respect to the Guaranteed
Obligations; or
(h) any other circumstance (including, without limitation, any
statute of limitations) or any existence of or reliance on any
representation by the Agent or any Lender that might otherwise constitute
a defense available to, or a discharge of, any Loan Party or any other
guarantor or surety.
This Guaranty shall continue to be effective or be reinstated, as the case may
be, if at any time any payment of any of the Guaranteed Obligations is rescinded
or must otherwise be returned by the Agent or any Lender or any other Person
upon the insolvency, bankruptcy or reorganization of any Borrower or otherwise,
all as though such payment had not been made.
SECTION 7.03. Waivers and Acknowledgments. (a) The Guarantor hereby
unconditionally and irrevocably waives promptness, diligence, notice of
acceptance, presentment, demand for performance, notice of nonperformance,
default, acceleration, protest or dishonor and any other notice with respect to
any of the Guaranteed Obligations and this Guaranty and any requirement that the
Agent or any Lender protect, secure, perfect or insure any Lien or any property
subject thereto or exhaust any right or take any action against any Loan Party
or any other Person or any collateral.
(b) The Guarantor hereby unconditionally and irrevocably waives any
right to revoke this Guaranty and acknowledges that this Guaranty is
continuing in nature and applies to all Guaranteed Obligations, whether
existing now or in the future.
(c) The Guarantor hereby unconditionally and irrevocably waives (i)
any defense arising by reason of any claim or defense based upon an
election of remedies by the Agent or any Lender that in any manner
impairs, reduces, releases or otherwise adversely affects the subrogation,
reimbursement, exoneration, contribution or indemnification rights of the
Guarantor or other rights of the Guarantor to proceed against any of the
other Loan Parties, any other guarantor or any other Person or any
collateral and (ii) any defense based on any right of set-off or
counterclaim against or in respect of the obligations of the Guarantor
hereunder.
(d) The Guarantor hereby unconditionally and irrevocably waives any
duty on the part of the Agent or any Lender to disclose to the Guarantor
any matter, fact or thing relating to the business, condition (financial
or otherwise), operations, performance, properties or prospects of any
other Loan Party or any of its Subsidiaries now or hereafter known by the
Agent or such Lender.
(e) The Guarantor acknowledges that it will receive substantial
direct and indirect benefits from the financing arrangements contemplated
by this Agreement and that the waivers set forth in Section 7.02 and this
Section 7.03 are knowingly made in contemplation of such benefits.
SECTION 7.04. Subrogation. The Guarantor hereby unconditionally and
irrevocably agrees not to exercise any rights that it may now have or hereafter
acquire against any Borrower or any other insider guarantor
32
that arise from the existence, payment, performance or enforcement of the
Guarantor's obligations under or in respect of this Guaranty, including, without
limitation, any right of subrogation, reimbursement, exoneration, contribution
or indemnification and any right to participate in any claim or remedy of the
Agent or any Lender against any Borrower or any other insider guarantor or any
collateral, whether or not such claim, remedy or right arises in equity or under
contract, statute or common law, including, without limitation, the right to
take or receive from any Borrower or any other insider guarantor, directly or
indirectly, in cash or other property or by set-off or in any other manner,
payment or security on account of such claim, remedy or right, unless and until
all of the Guaranteed Obligations and all other amounts payable under this
Guaranty shall have been paid in full in cash and the Commitments shall have
expired or been terminated. If any amount shall be paid to the Guarantor in
violation of the immediately preceding sentence at any time prior to the later
of the payment in full in cash of the Guaranteed Obligations and all other
amounts payable under this Guaranty and the Termination Date, such amount shall
be received and held in trust for the benefit of Agent and the Lenders, shall be
segregated from other property and funds of the Guarantor and shall forthwith be
paid or delivered to the Agent in the same form as so received (with any
necessary endorsement or assignment) to be credited and applied to the
Guaranteed Obligations and all other amounts payable under this Guaranty,
whether matured or unmatured, in accordance with the terms of this Agreement, or
to be held as collateral for any Guaranteed Obligations or other amounts payable
under this Guaranty thereafter arising. If (i) the Guarantor shall make payment
to the Agent or any Lender of all or any part of the Guaranteed Obligations,
(ii) all of the Guaranteed Obligations and all other amounts payable under this
Guaranty shall have been paid in full in cash and (iii) the Termination Date
shall have occurred, the Agent and the Lenders will, at the Guarantor's request
and expense, execute and deliver to the Guarantor appropriate documents, without
recourse and without representation or warranty, necessary to evidence the
transfer by subrogation to the Guarantor of an interest in the Guaranteed
Obligations resulting from such payment made by the Guarantor pursuant to this
Guaranty.
SECTION 7.05. Subordination. The Guarantor hereby subordinates any and all
debts, liabilities and other obligations owed to the Guarantor by each other
Loan Party (the "Subordinated Obligations") to the Guaranteed Obligations to the
extent and in the manner hereinafter set forth in this Section 7.05:
(a) Prior Payment of Guaranteed Obligations. In any proceeding under
any Bankruptcy Law relating to any other Loan Party, the Guarantor agrees
that the Agent and the Lenders shall be entitled to receive payment in
full in cash of all Guaranteed Obligations (including all interest and
expenses accruing after the commencement of a proceeding under any
Bankruptcy Law, whether or not constituting an allowed claim in such
proceeding ("Post Petition Interest")) before the Guarantor receives
payment of any Subordinated Obligations.
(b) Turn-Over. After the occurrence and during the continuance of
any Event of Default under Section 6.01(e), the Guarantor shall, if the
Agent so requests, collect, enforce and receive payments on account of the
Subordinated Obligations as trustee for the Agent and the Lenders and
deliver such payments to the Agent on account of the Guaranteed
Obligations (including all Post Petition Interest), together with any
necessary endorsements or other instruments of transfer, but without
reducing or affecting in any manner the liability of the Guarantor under
the other provisions of this Guaranty.
(c) Agent Authorization. After the occurrence and during the
continuance of any Event of Default under Section 6.01(e), the Agent is
authorized and empowered (but without any obligation to so do), in its
discretion, (i) in the name of the Guarantor, to collect and enforce, and
to submit claims in respect of, Subordinated Obligations and to apply any
amounts received thereon to the Guaranteed Obligations (including any and
all Post Petition Interest), and (ii) to require the Guarantor (A) to
collect and enforce, and to submit claims in respect of, Subordinated
Obligations and (B) to pay any amounts received on such obligations to the
Agent for application to the Guaranteed Obligations (including any and all
Post Petition Interest).
SECTION 7.06. Continuing Guaranty; Assignments. This Guaranty is a
continuing guaranty and shall (a) remain in full force and effect until the
later of the payment in full in cash of the Guaranteed Obligations and all other
amounts payable under this Guaranty and the Termination Date, (b) be binding
upon the Guarantor, its successors and assigns and (c) inure to the benefit of
and be enforceable by the Agent and the Lenders and their
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successors, transferees and assigns. Without limiting the generality of clause
(c) of the immediately preceding sentence, any Lender may assign or otherwise
transfer all or any portion of its rights and obligations under this Agreement
(including, without limitation, all or any portion of its Commitments, the
Advances owing to it and the Note or Notes held by it) to any other Person, and
such other Person shall thereupon become vested with all the benefits in respect
thereof granted to such Lender herein or otherwise, in each case as and to the
extent provided in Section 9.07. The Guarantor shall not have the right to
assign its rights hereunder or any interest herein without the prior written
consent of each of the Lenders.
ARTICLE VIII
THE AGENT
SECTION 8.01. Authorization and Action. Each Lender hereby appoints and
authorizes the Agent to take such action as agent on its behalf and to exercise
such powers and discretion under this Agreement as are delegated to the Agent by
the terms hereof, together with such powers and discretion as are reasonably
incidental thereto. As to any matters not expressly provided for by this
Agreement (including, without limitation, enforcement or collection of the
Notes), the Agent shall not be required to exercise any discretion or take any
action, but shall be required to act or to refrain from acting (and shall be
fully protected in so acting or refraining from acting) upon the instructions of
the Required Lenders, and such instructions shall be binding upon all Lenders
and all holders of Notes; provided, however, that the Agent shall not be
required to take any action that exposes the Agent to personal liability or that
is contrary to this Agreement or applicable law. The Agent agrees to give to
each Lender prompt notice of each notice given to it by any Loan Party pursuant
to the terms of this Agreement.
SECTION 8.02. Agent's Reliance, Etc. Neither the Agent nor any of its
directors, officers, agents or employees shall be liable for any action taken or
omitted to be taken by it or them under or in connection with this Agreement,
except for its or their own gross negligence or willful misconduct. Without
limitation of the generality of the foregoing, the Agent: (i) may treat the
Lender that made any Advance as the holder of the Debt resulting therefrom until
the Agent receives and accepts an Assumption Agreement entered into by an
Assuming Lender as provided in Section 2.17 or an Assignment and Acceptance
entered into by such Lender, as assignor, and an Eligible Assignee, as assignee,
as provided in Section 9.07; (ii) may consult with legal counsel (including
counsel for the Loan Parties), independent public accountants and other experts
selected by it and shall not be liable for any action taken or omitted to be
taken in good faith by it in accordance with the advice of such counsel,
accountants or experts; (iii) makes no warranty or representation to any Lender
and shall not be responsible to any Lender for any statements, warranties or
representations (whether written or oral) made in or in connection with this
Agreement; (iv) shall not have any duty to ascertain or to inquire as to the
performance, observance or satisfaction of any of the terms, covenants or
conditions of this Agreement on the part of any Loan Party or the existence at
any time of any Default or to inspect the property (including the books and
records) of any Loan Party; (v) shall not be responsible to any Lender for the
due execution, legality, validity, enforceability, genuineness, sufficiency or
value of this Agreement or any other instrument or document furnished pursuant
hereto; and (vi) shall incur no liability under or in respect of this Agreement
by acting upon any notice, consent, certificate or other instrument or writing
(which may be by telecopier, telegram or telex) believed by it to be genuine and
signed or sent by the proper party or parties.
SECTION 8.03. Citibank and Affiliates. With respect to its Commitment, the
Advances made by it and any Note issued to it, Citibank shall have the same
rights and powers under this Agreement as any other Lender and may exercise the
same as though it were not the Agent; and the term "Lender" or "Lenders" shall,
unless otherwise expressly indicated, include Citibank in its individual
capacity. Citibank and its Affiliates may accept deposits from, lend money to,
act as trustee under indentures of, accept investment banking engagements from
and generally engage in any kind of business with, the Guarantor, any of its
Subsidiaries and any Person who may do business with or own securities of the
Guarantor or any such Subsidiary, all as if Citibank were not the Agent and
without any duty to account therefor to the Lenders. The Agent shall have no
duty to disclose information obtained or received by it or any of its Affiliates
relating to the Guarantor or its Subsidiaries to the extent such information was
obtained or received in any capacity other than as Agent.
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SECTION 8.04. Lender Credit Decision. Each Lender acknowledges that it
has, independently and without reliance upon the Agent or any other Lender and
based on the financial statements referred to in Section 4.01 and such other
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon the Agent or
any other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under this Agreement.
SECTION 8.05. Indemnification. The Lenders agree to indemnify the Agent
(to the extent not reimbursed by the Borrowers), ratably according to the
respective principal amounts of the Advances then owed to each of them (or if no
Advances are at the time outstanding, ratably according to the respective
amounts of their Commitments), from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever that may be imposed
on, incurred by, or asserted against the Agent in any way relating to or arising
out of this Agreement or any action taken or omitted by the Agent under this
Agreement (collectively, the "Indemnified Costs"), provided that no Lender shall
be liable for any portion of the Indemnified Costs resulting from the Agent's
gross negligence or willful misconduct. Without limitation of the foregoing,
each Lender agrees to reimburse the Agent promptly upon demand for its ratable
share of any out-of-pocket expenses (including reasonable counsel fees) incurred
by the Agent in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice in respect of
rights or responsibilities under, this Agreement, to the extent that the Agent
is not reimbursed for such expenses by the Borrowers. In the case of any
investigation, litigation or proceeding giving rise to any Indemnified Costs,
this Section 8.05 applies whether any such investigation, litigation or
proceeding is brought by the Agent, any Lender or a third party.
SECTION 8.06. Successor Agent. The Agent may resign at any time by giving
written notice thereof to the Lenders and the Borrowers and may be removed at
any time with or without cause by the Required Lenders. Upon any such
resignation or removal, the Required Lenders shall have the right to appoint a
successor Agent from among the Lenders with the consent, so long as no Event of
Default has occurred and is continuing, of the Guarantor, which consent will not
be unreasonably withheld or delayed. If no successor Agent shall have been so
appointed by the Required Lenders, and shall have accepted such appointment,
within 30 days after the retiring Agent's giving of notice of resignation or the
Required Lenders' removal of the retiring Agent, then the retiring Agent may, on
behalf of the Lenders, appoint a successor Agent, which shall be a Lender that
is a commercial bank organized under the laws of the United States of America or
of any State thereof and having a combined capital and surplus of at least
$500,000,000. Upon the acceptance of any appointment as Agent hereunder by a
successor Agent, such successor Agent shall thereupon succeed to and become
vested with all the rights, powers, discretion, privileges and duties of the
retiring Agent, and the retiring Agent shall be discharged from its duties and
obligations under this Agreement. After any retiring Agent's resignation or
removal hereunder as Agent, the provisions of this Article VIII shall inure to
its benefit as to any actions taken or omitted to be taken by it while it was
Agent under this Agreement.
SECTION 8.07. Sub-Agent. The Sub-Agent has been designated under this
Agreement to carry out duties of the Agent. The Sub-Agent shall be subject to
each of the obligations in this Agreement to be performed by the Sub-Agent, and
each of the Borrowers and the Lenders agrees that the Sub-Agent shall be
entitled to exercise each of the rights and shall be entitled to each of the
benefits of the Agent under this Agreement as relate to the performance of its
obligations hereunder.
SECTION 8.08. Other Agents. Each Lender hereby acknowledges that neither
the documentation agent nor any other Lender designated as any "Agent" on the
signature pages hereof (other than the Agent) has any liability hereunder other
than in its capacity as a Lender.
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ARTICLE IX
MISCELLANEOUS
SECTION 9.01. Amendments, Etc. No amendment or waiver of any provision of
this Agreement or the Notes, nor consent to any departure by any Loan Party
therefrom, shall in any event be effective unless the same shall be in writing
and signed by the Required Lenders, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given; provided, however, that no amendment, waiver or consent shall, unless in
writing and signed by all the Lenders, do any of the following: (a) waive any of
the conditions specified in Section 3.01, (b) increase the Commitments of the
Lenders, (c) reduce the principal of, or interest on, the Advances or any fees
or other amounts payable hereunder, (d) postpone any date fixed for any payment
of principal of, or interest on, the Advances or any fees or other amounts
payable hereunder, (e) change the percentage of the Commitments or of the
aggregate unpaid principal amount of the Advances, or the number of Lenders,
that shall be required for the Lenders or any of them to take any action
hereunder, (f) amend the definition of "Committed Currencies" to add any
additional currency, (g) reduce or limit the obligations of the Guarantor under
Section 7.01 or release the Guarantor or otherwise limit the Guarantor's
liability with respect to the obligations owing to the Agent and the Lenders
under Article VII or (h) amend this Section 9.01; and provided further that no
amendment, waiver or consent shall, unless in writing and signed by the Agent in
addition to the Lenders required above to take such action, affect the rights or
duties of the Agent under this Agreement or any Note.
SECTION 9.02. Notices, Etc. All notices and other communications provided
for hereunder shall be in writing (including telecopier, telegraphic or telex
communication) and mailed, telecopied, telegraphed, telexed or delivered, if to
Loan Parties, at the address of the Guarantor at Xxx Xxxx Xxxxxx Xxxxxx,
Xxxxxxxxx, Xxxxxxxxxxx 00000, Attention: Xxxx Xxxxxxx; if to any Initial Lender,
at its Domestic Lending Office specified opposite its name on Schedule I hereto;
if to any other Lender, at its Domestic Lending Office specified in the
Assumption Agreement or the Assignment and Acceptance pursuant to which it
became a Lender; and if to the Agent, at its address at Xxx Xxxxx Xxx, Xxx
Xxxxxx, Xxxxxxxx 00000, Attention: Bank Loan Syndications Department; or, as to
any Loan Party or the Agent, at such other address as shall be designated by
such party in a written notice to the other parties and, as to each other party,
at such other address as shall be designated by such party in a written notice
to the Borrowers and the Agent. All such notices and communications shall, when
mailed, telecopied, telegraphed or telexed, be effective when deposited in the
mails, telecopied, delivered to the telegraph company or confirmed by telex
answerback, respectively, except that notices and communications to the Agent
pursuant to Article II, III or VIII shall not be effective until received by the
Agent. Delivery by telecopier of an executed counterpart of any amendment or
waiver of any provision of this Agreement or the Notes or of any Exhibit hereto
to be executed and delivered hereunder shall be effective as delivery of a
manually executed counterpart thereof.
SECTION 9.03. No Waiver; Remedies. No failure on the part of any Lender or
the Agent to exercise, and no delay in exercising, any right hereunder or under
any Note shall operate as a waiver thereof; nor shall any single or partial
exercise of any such right preclude any other or further exercise thereof or the
exercise of any other right. The remedies herein provided are cumulative and not
exclusive of any remedies provided by law.
SECTION 9.04. Costs and Expenses. (a) The Borrowers agree to pay on demand
all costs and expenses of the Agent in connection with the preparation,
execution, delivery, administration, modification and amendment of this
Agreement, the Notes and the other documents to be delivered hereunder,
including, without limitation, (A) all due diligence, syndication (including
printing, distribution and bank meetings), transportation, computer,
duplication, appraisal, consultant, and audit expenses and (B) the reasonable
fees and expenses of counsel for the Agent with respect thereto and with respect
to advising the Agent as to its rights and responsibilities under this
Agreement. The Borrowers further agree to pay on demand all costs and expenses
of the Agent and the Lenders, if any (including, without limitation, reasonable
fees and expenses of outside counsel and the allocated costs and expenses of
in-house counsel), in connection with the enforcement (whether through
negotiations, legal proceedings or otherwise) of this Agreement, the Notes and
the other documents to be delivered hereunder, including, without limitation,
reasonable fees and expenses of counsel for the Agent and each Lender in
connection with the enforcement of rights under this Section 9.04(a).
(b) The Borrowers agree to indemnify and hold harmless the Agent and each
Lender and each of their Affiliates and their officers, directors, employees,
agents and advisors (each, an "Indemnified Party") from and against any and all
claims, damages, losses, liabilities and expenses (including, without
limitation, reasonable fees and expenses of counsel) incurred by or asserted or
awarded against any Indemnified Party, in each case arising out of or in
connection with or by reason of (including, without limitation, in connection
with any investigation, litigation or proceeding or preparation of a defense in
connection therewith) (i) the Notes, this
36
Agreement, any of the transactions contemplated herein or the actual or proposed
use of the proceeds of the Advances or (ii) the actual or alleged presence of
hazardous materials on any property of the Guarantor or any of its Subsidiaries
or any Environmental Action relating in any way to the Guarantor or any of its
Subsidiaries, except to the extent such claim, damage, loss, liability or
expense is found in a final, non-appealable judgment by a court of competent
jurisdiction to have resulted from such Indemnified Party's gross negligence or
willful misconduct. In the case of an investigation, litigation or other
proceeding to which the indemnity in this Section 9.04(b) applies, such
indemnity shall be effective whether or not such investigation, litigation or
proceeding is brought by any Loan Party, its directors, equityholders or
creditors or an Indemnified Party or any other Person, whether or not any
Indemnified Party is otherwise a party thereto and whether or not the
transactions contemplated hereby are consummated. The Loan Parties also agree
not to assert any claim for special, indirect, consequential or punitive damages
against the Agent, any Lender, any of their Affiliates, or any of their
respective directors, officers, employees, attorneys and agents, on any theory
of liability, arising out of or otherwise relating to the Notes, this Agreement,
any of the transactions contemplated herein or the actual or proposed use of the
proceeds of the Advances.
(c) If any payment of principal of, or Conversion of, any Eurocurrency
Rate Advance is made by any Borrower to or for the account of a Lender (i) other
than on the last day of the Interest Period for such Advance, as a result of a
payment or Conversion pursuant to Section 2.07, 2.09 or 2.11, acceleration of
the maturity of the Notes pursuant to Section 6.01 or for any other reason, or
by an Eligible Assignee to a Lender other than on the last day of the Interest
Period for such Advance upon an assignment of rights and obligations under this
Agreement pursuant to Section 9.07 as a result of a demand by the Guarantor
pursuant to Section 9.07(a) or (ii) as a result of a payment or Conversion
pursuant to Section 2.07, 2.09 or 2.11, the Borrower of such Advance shall, upon
demand by such Lender (with a copy of such demand to the Agent), pay to the
Agent for the account of such Lender any amounts required to compensate such
Lender for any additional losses, costs or expenses that it may reasonably incur
as a result of such payment or Conversion, including, without limitation, any
loss (including loss of anticipated profits), cost or expense incurred by reason
of the liquidation or reemployment of deposits or other funds acquired by any
Lender to fund or maintain such Advance. If the amount of the Committed Currency
purchased by any Lender in the case of a Conversion or exchange of Advances in
the case of Section 2.07 or 2.11 exceeds the sum required to satisfy such
Lender's liability in respect of such Advances, such Lender agrees to remit to
the applicable Borrower such excess.
(d) Without prejudice to the survival of any other agreement of the
Borrowers hereunder, the agreements and obligations of the Borrowers contained
in Sections 2.10, 2.13 and 9.04 shall survive the payment in full of principal,
interest and all other amounts payable hereunder and under the Notes.
SECTION 9.05. Right of Set-off. Upon (i) the occurrence and during the
continuance of any Event of Default and (ii) the making of the request or the
granting of the consent specified by Section 6.01 to authorize the Agent to
declare the Notes due and payable pursuant to the provisions of Section 6.01,
each Lender and each of its Affiliates is hereby authorized at any time and from
time to time, to the fullest extent permitted by law, to set off and apply any
and all deposits (general or special, time or demand, provisional or final) at
any time held and other indebtedness at any time owing by such Lender or such
Affiliate to or for the credit or the account of any Loan Party against any and
all of the obligations of such Loan Party now or hereafter existing under this
Agreement and any Note held by such Lender, whether or not such Lender shall
have made any demand under this Agreement or such Note and although such
obligations may be unmatured. Each Lender agrees promptly to notify the
applicable Loan Party after any such set-off and application, provided that the
failure to give such notice shall not affect the validity of such set-off and
application. The rights of each Lender and its Affiliates under this Section are
in addition to other rights and remedies (including, without limitation, other
rights of set-off) that such Lender and its Affiliates may have.
SECTION 9.06. Binding Effect. This Agreement shall become effective (other
than Section 2.01, which shall only become effective upon satisfaction of the
conditions precedent set forth in Section 3.01) when it shall have been executed
by each Loan Party and the Agent and when the Agent shall have been notified by
each Initial Lender that such Initial Lender has executed it and thereafter
shall be binding upon and inure to the benefit of the Loan Parties, the Agent
and each Lender and their respective successors and assigns, except that no Loan
Party shall have the right to assign its rights hereunder or any interest herein
without the prior written consent of each of the Lenders.
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SECTION 9.07. Assignments and Participations. (a) Each Lender may and, if
demanded by the Guarantor (following a demand by such Lender pursuant to Section
2.10 or 2.13) upon at least five Business Days' notice to such Lender and the
Agent, will assign to one or more Persons all or a portion of its rights and
obligations under this Agreement (including, without limitation, all or a
portion of its Commitment, the Advances owing to it and the Note or Notes held
by it); provided, however, that (i) each such assignment shall be of a constant,
and not a varying, percentage of all rights and obligations under this
Agreement, (ii) except in the case of an assignment to a Person that,
immediately prior to such assignment, was a Lender or an assignment of all of a
Lender's rights and obligations under this Agreement, the amount of the
Commitment of the assigning Lender being assigned pursuant to each such
assignment (determined as of the date of the Assignment and Acceptance with
respect to such assignment) shall in no event be less than $10,000,000 or an
integral multiple of $1,000,000 in excess thereof unless the Guarantor and the
Agent otherwise agree, (iii) each such assignment shall be to an Eligible
Assignee, (iv) each such assignment made as a result of a demand by the
Guarantor pursuant to this Section 9.07(a) shall be arranged by the Guarantor
after consultation with the Agent and shall be either an assignment of all of
the rights and obligations of the assigning Lender under this Agreement or an
assignment of a portion of such rights and obligations made concurrently with
another such assignment or other such assignments that together cover all of the
rights and obligations of the assigning Lender under this Agreement, (v) no
Lender shall be obligated to make any such assignment as a result of a demand by
the Guarantor pursuant to this Section 9.07(a) unless and until such Lender
shall have received one or more payments from either the Borrowers or one or
more Eligible Assignees in an aggregate amount at least equal to the aggregate
outstanding principal amount of the Advances owing to such Lender, together with
accrued interest thereon to the date of payment of such principal amount and all
other amounts payable to such Lender under this Agreement and (vi) the parties
to each such assignment shall execute and deliver to the Agent, for its
acceptance and recording in the Register, an Assignment and Acceptance, together
with any Note subject to such assignment and a processing and recordation fee of
$3,500, payable by the parties to each such assignment, provided, however, that
in the case of each assignment made as a result of a demand by the Guarantor,
such recordation fee shall be payable by the Guarantor except that no such
recordation fee shall be payable in the case of an assignment made at the
request of the Guarantor to an Eligible Assignee that is an existing Lender.
Upon such execution, delivery, acceptance and recording, from and after the
effective date specified in each Assignment and Acceptance, (x) the assignee
thereunder shall be a party hereto and, to the extent that rights and
obligations hereunder have been assigned to it pursuant to such Assignment and
Acceptance, have the rights and obligations of a Lender hereunder and (y) the
Lender assignor thereunder shall, to the extent that rights and obligations
hereunder have been assigned by it pursuant to such Assignment and Acceptance,
relinquish its rights (other than its rights under Section 2.10, 2.13 and 9.04
to the extent any claim thereunder relates to an event arising prior such
assignment) and be released from its obligations under this Agreement (and, in
the case of an Assignment and Acceptance covering all or the remaining portion
of an assigning Lender's rights and obligations under this Agreement, such
Lender shall cease to be a party hereto).
(b) By executing and delivering an Assignment and Acceptance, the Lender
assignor thereunder and the assignee thereunder confirm to and agree with each
other and the other parties hereto as follows: (i) other than as provided in
such Assignment and Acceptance, such assigning Lender makes no representation or
warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with this Agreement or
the execution, legality, validity, enforceability, genuineness, sufficiency or
value of this Agreement or any other instrument or document furnished pursuant
hereto; (ii) such assigning Lender makes no representation or warranty and
assumes no responsibility with respect to the financial condition of any Loan
Party or the performance or observance by any Loan Party of any of its
obligations under this Agreement or any other instrument or document furnished
pursuant hereto; (iii) such assignee confirms that it has received a copy of
this Agreement, together with copies of the financial statements referred to in
Section 4.01 and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such
Assignment and Acceptance; (iv) such assignee will, independently and without
reliance upon the Agent, such assigning Lender or any other Lender and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
this Agreement; (v) such assignee confirms that it is an Eligible Assignee; (vi)
such assignee appoints and authorizes the Agent to take such action as agent on
its behalf and to exercise such powers and discretion under this Agreement as
are delegated to the Agent by the terms hereof, together with such powers and
discretion as are reasonably incidental thereto; and (vii) such assignee agrees
that it will perform in accordance with their terms all of the obligations that
by the terms of this Agreement are required to be performed by it as a Lender.
38
(c) Upon its receipt of an Assignment and Acceptance executed by an
assigning Lender and an assignee representing that it is an Eligible Assignee,
together with any Note or Notes subject to such assignment, the Agent shall, if
such Assignment and Acceptance has been completed and is in substantially the
form of Exhibit C hereto, (i) accept such Assignment and Acceptance, (ii) record
the information contained therein in the Register and (iii) give prompt notice
thereof to the Borrowers.
(d) The Agent shall maintain at its address referred to in Section 9.02 a
copy of each Assumption Agreement and each Assignment and Acceptance delivered
to and accepted by it and a register for the recordation of the names and
addresses of the Lenders and the Commitment of, and principal amount of the
Advances owing to, each Lender from time to time (the "Register"). The entries
in the Register shall be conclusive and binding for all purposes, absent
manifest error, and each Loan Party, the Agent and the Lenders may treat each
Person whose name is recorded in the Register as a Lender hereunder for all
purposes of this Agreement. The Register shall be available for inspection by
any Loan Party or any Lender at any reasonable time and from time to time upon
reasonable prior notice.
(e) Each Lender may sell participations to one or more banks or other
entities (other than the Guarantor or any of its Affiliates) in or to all or a
portion of its rights and obligations under this Agreement (including, without
limitation, all or a portion of its Commitment, the Advances owing to it and any
Note or Notes held by it); provided, however, that (i) such Lender's obligations
under this Agreement (including, without limitation, its Commitment to the
Borrowers hereunder) shall remain unchanged, (ii) such Lender shall remain
solely responsible to the other parties hereto for the performance of such
obligations, (iii) such Lender shall remain the holder of any such Note for all
purposes of this Agreement, (iv) the Borrowers, the Agent and the other Lenders
shall continue to deal solely and directly with such Lender in connection with
such Lender's rights and obligations under this Agreement and (v) no participant
under any such participation shall have any right to approve any amendment or
waiver of any provision of this Agreement or any Note, or any consent to any
departure by any Loan Party therefrom, except to the extent that such amendment,
waiver or consent would reduce the principal of, or interest on, the Notes or
any fees or other amounts payable hereunder, in each case to the extent subject
to such participation, or postpone any date fixed for any payment of principal
of, or interest on, the Notes or any fees or other amounts payable hereunder, in
each case to the extent subject to such participation, or reduce or limit the
obligations of the Guarantor under Section 7.01 or release the Guarantor from
its obligations under Article VII.
(f) Any Lender may, in connection with any assignment or participation or
proposed assignment or participation pursuant to this Section 9.07, disclose to
the assignee or participant or proposed assignee or participant, any information
relating to the Guarantor furnished to such Lender by or on behalf of the
Guarantor; provided that, prior to any such disclosure, the assignee or
participant or proposed assignee or participant shall agree to preserve the
confidentiality of any Confidential Information relating to the Guarantor
received by it from such Lender.
(g) Notwithstanding any other provision set forth in this Agreement, any
Lender may at any time create a security interest in all or any portion of its
rights under this Agreement (including, without limitation, the Advances owing
to it and any Note or 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.
SECTION 9.08. Confidentiality. Neither the Agent nor any Lender shall
disclose any Confidential Information to any other Person without the consent of
the Guarantor, other than (a) to the Agent's or such Lender's Affiliates and
their officers, directors, employees, agents and advisors and, as contemplated
by Section 9.07(f), to actual or prospective assignees and participants, and
then only on a confidential basis, (b) as required by any law, rule or
regulation or judicial process, (c) as requested or required by any state,
federal or foreign authority or examiner regulating banks or banking and (d) 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.
SECTION 9.09. Governing Law. This Agreement and the Notes shall be
governed by, and construed in accordance with, the laws of the State of New
York.
SECTION 9.10. Execution in Counterparts. This Agreement may be executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be
39
deemed to be an original and all of which taken together shall constitute one
and the same agreement. Delivery of an executed counterpart of a signature page
to this Agreement by telecopier shall be effective as delivery of a manually
executed counterpart of this Agreement.
SECTION 9.11. Judgment. (a) If for the purposes of obtaining judgment in
any court it is necessary to convert a sum due hereunder in Dollars into another
currency, the parties hereto agree, to the fullest extent that they may
effectively do so, that the rate of exchange used shall be that at which in
accordance with normal banking procedures the Agent could purchase Dollars with
such other currency at Citibank's principal office in London at 11:00 A.M.
(London time) on the Business Day preceding that on which final judgment is
given.
(b) If for the purposes of obtaining judgment in any court it is necessary
to convert a sum due hereunder in a Committed Currency into Dollars, the parties
agree to the fullest extent that they may effectively do so, that the rate of
exchange used shall be that at which in accordance with normal banking
procedures the Agent could purchase such Committed Currency with Dollars at
Citibank's principal office in London at 11:00 A.M. (London time) on the
Business Day preceding that on which final judgment is given.
(c) The obligation of the Borrowers in respect of any sum due from it in
any currency (the "Primary Currency") to any Lender or the Agent hereunder
shall, notwithstanding any judgment in any other currency, be discharged only to
the extent that on the Business Day following receipt by such Lender or the
Agent (as the case may be), of any sum adjudged to be so due in such other
currency, such Lender or the Agent (as the case may be) may in accordance with
normal banking procedures purchase the applicable Primary Currency with such
other currency; if the amount of the applicable Primary Currency so purchased is
less than such sum due to such Lender or the Agent (as the case may be) in the
applicable Primary Currency, the Borrowers agree, as a separate obligation and
notwithstanding any such judgment, to indemnify such Lender or the Agent (as the
case may be) against such loss, and if the amount of the applicable Primary
Currency so purchased exceeds such sum due to any Lender or the Agent (as the
case may be) in the applicable Primary Currency, such Lender or the Agent (as
the case may be) agrees to remit to the applicable Borrower such excess.
SECTION 9.12. Jurisdiction, Etc. (a) Each of the parties hereto hereby
irrevocably and unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of any New York State court or federal court of the
United States of America sitting in New York City, and any appellate court from
any thereof, in any action or proceeding arising out of or relating to this
Agreement or the Notes, or for recognition or enforcement of any judgment, and
each of the parties hereto hereby irrevocably and unconditionally agrees that
all claims in respect of any such action or proceeding may be heard and
determined in any such New York State court or, to the extent permitted by law,
in such federal court. The Loan Parties hereby agree that service of process in
any such action or proceeding brought in the any such New York State court or in
such federal court may be made upon the Guarantor at its offices at Xxx Xxxx
Xxxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxxxxxx 00000 Attention: General Counsel and the
Loan Parties hereby irrevocably appoint the Guarantor its authorized agent to
accept such service of process, and agrees that the failure of the Guarantor to
give any notice of any such service shall not impair or affect the validity of
such service or of any judgment rendered in any action or proceeding based
thereon. Each Loan Party hereby further irrevocably consents to the service of
process in any action or proceeding in such courts by the mailing thereof by any
parties hereto by registered or certified mail, postage prepaid, to such Loan
Party at its address specified pursuant to Section 9.02. Each of the parties
hereto agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or
in any other manner provided by law. Nothing in this Agreement shall affect any
right that any party may otherwise have to bring any action or proceeding
relating to this Agreement or the Notes in the courts of any jurisdiction.
(b) Each of the parties hereto irrevocably and unconditionally waives, to
the fullest extent it may legally and effectively do so, any objection that it
may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Agreement or the Notes in any New
York State or federal court. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.
SECTION 9.13. Substitution of Currency. If a change in any Committed
Currency occurs pursuant to any applicable law, rule or regulation of any
governmental, monetary or multi-national authority, this Agreement (including,
without limitation, the definitions of Eurocurrency Rate) will be amended to the
extent
40
determined by the Agent (acting reasonably and in consultation with the
Guarantor) to be necessary to reflect the change in currency and to put the
Lenders and the Borrowers in the same position, so far as possible, that they
would have been in if no change in such Committed Currency had occurred.
41
SECTION 9.14. Waiver of Jury Trial. Each of the Loan Parties, the Agent
and the Lenders hereby irrevocably waives all right to trial by jury in any
action, proceeding or counterclaim (whether based on contract, tort or
otherwise) arising out of or relating to this Agreement or the Notes or the
actions of the Agent or any Lender in the negotiation, administration,
performance or enforcement thereof.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.
OMNICOM FINANCE INC., as Borrower
By /s/ Xxxxxx X. Xxxxxx
-----------------------------------
Title: Director & Treasurer
OMNICOM CAPITAL INC., as Borrower
By /s/ Xxxxxx X. Xxxxxx
-----------------------------------
Title: President & CEO
OMNICOM FINANCE PLC., as Borrower
By /s/ Xxxxxx X. Xxxxxx
-----------------------------------
Title: Director
By /s/ Xxxxx X. Xxxxxx
-----------------------------------
Title: Director
OMNICOM GROUP INC., as Guarantor
By /s/ Xxxxxx X. Xxxxxx
-----------------------------------
Title: Treasurer
CITIBANK, N.A., as Agent
By /s/ Xxxxx Xxxx Xxxxxxxx
-----------------------------------
Title: Director
42
Initial Lenders
Commitment
$100,000,000 ABN AMRO BANK N.V.
By /s/ Xxxxxxx Xxxxx
-----------------------------------
Title: Senior Vice President
By /s/ Xxxxx Xxxxxxxxxx
-----------------------------------
Title: Group Vice President
$100,000,000 CITIBANK, N.A.
By /s/ Xxxxx Xxxx Xxxxxxxx
-----------------------------------
Title: Director
$100,000,000 HSBC BANK USA
By /s/ Xxxxx Xxxxxxxxx
-----------------------------------
Title: First Vice President
$100,000,000 JPMORGAN CHASE BANK
By /s/ Xxxxx X. Xxxxx
-----------------------------------
Title: Managing Director
$100,000,000 SOCIETE GENERALE
By /s/ Xxxxxx Xxxxxx
-----------------------------------
Title: Director
$100,000,000 WACHOVIA BANK, NATIONAL ASSOCIATION
By /s/ Xxxxxx Xxxxx
-----------------------------------
Title: Managing Director
$30,000,000 BARCLAYS BANK PLC
By /s/ Xxxxxxxx Xxxx
-----------------------------------
Title: Director
$30,000,000 BANCO BILBAO VIZCAYA ARGENTARIA
By /s/ Xxxxxx X. Xxxxxxxx
-----------------------------------
Title: Vice President
By /s/ Xxxxx Xxxxxx
-----------------------------------
Title: Vice President
$25,000,000 BANK OF AMERICA, N.A.
By /s/ Xxxx X. Xxxxxxxx
-----------------------------------
Title: Managing Director
43
$25,000,000 U.S. BANK NATIONAL ASSOCIATION
By /s/ Xxxx Xxxxxxxxxx
-----------------------------------
Title: Vice President
$25,000,000 FLEET NATIONAL BANK
By /s/ Xxxxxx X. Xxxx
-----------------------------------
Title: Senior Vice President
$25,000,000 WESTPAC BANKING CORPORATION
By /s/ Xxxx Xxxxxx
-----------------------------------
Title: Vice President
$15,000,000 THE NORTHERN TRUST COMPANY
By /s/ Xxxxxxx Xxxxxxxxxx
-----------------------------------
Title: Vice President
$15,000,000 SAN PAOLO IMI S.P.A.
By /s/ Xxxxx Xxxxx
-----------------------------------
Title: Vice President
By /s/ Xxxxxx Xxxxxxx
-----------------------------------
Title: Senior Vice President
$10,000,000 THE BANK OF NOVA SCOTIA
By /s/ Xxxx X. Xxxxxx
-----------------------------------
Title: Managing Director
SCOTIABANK EUROPE PLC
By /s/ X. Xxxxxxxxx
-----------------------------------
Title: Director
$800,000,000 Total of the Commitments
44
SCHEDULE I
OMNICOM GROUP
THREE YEAR CREDIT AGREEMENT
APPLICABLE LENDING OFFICES
-----------------------------------------------------------------------------------------------------------
Name of Initial Lender Domestic Lending Office Eurodollar Lending Office
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
ABN Amro Bank N.V.
-----------------------------------------------------------------------------------------------------------
Banco Bilbao Vizcaya Argentaria
-----------------------------------------------------------------------------------------------------------
Bank of America, N.A.
-----------------------------------------------------------------------------------------------------------
The Bank of Nova Scotia Attn: Xxxxxx Xxxxxxxxxx Attn: Xxxxxx Xxxxxxxxxx
T: 000 000-0000 T: 000 000-0000
F: 000 000-0000 F: 000 000-0000
-----------------------------------------------------------------------------------------------------------
Barclays Bank plc
-----------------------------------------------------------------------------------------------------------
Citibank, N.A. Two Penns Way Xxx Xxxxx Xxx
Xxx Xxxxxx, XX 00000 Xxx Xxxxxx, XX 00000
Attn: Xxxxxxx Xxxxx Attn: Xxxxxxx Xxxxx
T: 000 000-0000 T: 000 000-0000
F: 000 000-0000 F: 000 000-0000
-----------------------------------------------------------------------------------------------------------
Firstar Bank, N.A.
-----------------------------------------------------------------------------------------------------------
Fleet National Bank
-----------------------------------------------------------------------------------------------------------
HSBC Bank USA Attn: Xxxxx Xxx Attn: Xxxxx Xxx
T: 000 000-0000 T: 000 000-0000
F: 000 000-0000 F: 000 000-0000
-----------------------------------------------------------------------------------------------------------
JPMorgan Chase Bank
-----------------------------------------------------------------------------------------------------------
The Northern Trust Company
-----------------------------------------------------------------------------------------------------------
San Paolo IMI S.p.A. 000 Xxxx Xxxxxx, 00xx Xxxxx 000 Xxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000 Xxx Xxxx, XX 00000
Attn: Xxxxx Xxxxxx Attn: Xxxxx Xxxxxx
T: 000 000-0000 T: 000 000-0000
F: 000 000-0000 F: 000 000-0000
-----------------------------------------------------------------------------------------------------------
Societe Generale
-----------------------------------------------------------------------------------------------------------
Wachovia Bank, National Association 000 Xxxxx Xxxxxxx Xxxxxx, CP-17 000 Xxxxx Xxxxxxx Xxxxxx, XX-00
Xxxxxxxxx, XX 00000 Xxxxxxxxx, XX 00000
Attn: Xxxxxx Xxxxxx Attn: Xxxxxx Xxxxxx
T: 000 000-0000 T: 000 000-0000
F: 000 000-0000 F: 000 000-0000
-----------------------------------------------------------------------------------------------------------
Westpac Banking Corporation
-----------------------------------------------------------------------------------------------------------
SCHEDULE 3.01(b)
DISCLOSED LITIGATION
On June 13, 2002, a lawsuit was filed against Omnicom Group Inc. ("OGI")
and certain of OGI's senior executives in the federal court in the Southern
District of New York on behalf of a purported class of purchasers of OGI common
shares during the period April 25, 2000 to June 11, 2002. The executives named
as defendants are OGI's chairman, chief executive officer, chief financial
officer and controller. The complaint alleges, among other things, that OGI's
press releases and SEC reports during the alleged class period contained
materially false and misleading statements or omitted to state material
information relating to (1) OGI's calculation of the organic component of
period-to-period revenue growth, (2) the formation of Seneca Investments LLC in
May 2001, and (3) the characterization of acquisition payments and the existence
and amount of OGI's future obligations in respect of acquisitions. The complaint
seeks an unspecified amount of money damages plus attorneys' fees and other
costs. Ten other complaints were subsequently filed in the same court, each
making similar allegations and referencing the same class period. All of the
cases are at a preliminary stage.
In addition to the proceedings described above, a shareholder derivative
action was filed on June 28, 2002 in New York state court in New York City by a
plaintiff shareholder, purportedly on OGI's behalf, against current and certain
former directors alleging breaches of fiduciary duty, disclosure failures, abuse
of control and gross mismanagement in connection with the formation of Seneca,
including as a result of open-market sales of OGI common shares by OGI's
chairman and two former employee directors during the period August 2001 to May
2002. The complaint seeks the imposition of a constructive trust on profits
received in the stock sales, an unspecified amount of money damages and
attorneys' fees and other costs.
The case names and numbers are as follows:
1) Xxxxxx v. Omnicom Group Inc., No. 02-CV-4483
2) Black v. Omnicom Group Inc., No. 02-CV-4681
3) Brody v. Omnicom Group Inc., No. 02-CV-4696
4) Xxxxxxx v. Omnicom Group Inc., No 02-CV-4697
5) Xxxxxxxx v. Omnicom Group Inc., No. 02-CV-4878
6) Xxxxxx x. Omnicom Group Inc., No. 02-CV-4912
7) Lehan v. Omnicom Group Inc., No. 02-CV-4975
8) Xxx x. Omnicom Group Inc., No. 02-CV-4976
9) Xxxxx x. Omnicom Group Inc., No. 02-CV-5096
10) Mirken v. Omnicom Group Inc., No. 02-CV-5106
11) Xxxxxxxxxx v. Omnicom Group Inc., Xx. 00 Xxx. 0000
00) Xxxxxxx v. Omnicom Group Inc., Xx. 00 Xxx. 0000
XXXXXXXXX 5.02(a) AND 5.02(d)
EXISTING LIENS AND EXISTING DEBT
Amount Due
Subsidiary Borrower Lender(s) Each Lender Total Debt
------------------- -------- ----------- ----------
DAS Xxxxxxx Citizens Leasing Corp 662,295
CIT Group 467,651
Bankgroup 366,200 1,496,146
DAS Case Xxxxxx De Lage Lander Financial 15,985 15,985
DAS Xxxxxxxxx-Xxxxxxx JTA Capital Leases 9,532 9,532
DAS Xxxxx Xxxxxxxx NEC Leasing 33,007
OBC Bank 24,698
Bank of Tokyo Mitsubishi 616,050
Daimler Chrysler 19,614 693,369
DAS GPC Domestic JTA Capital Leases 29,850 29,850
DAS Xxxxxxxx Xerox 135,989
IBM Credit Corp. 355,816 491,805
DAS Xxxxxxxx Media Group Inc. NTFC Capital 21,150
Phone Lease 37,841 58,991
DAS MarketStar Lucent 78,400
First Security 85,777
AT&T 31,167 195,344
DAS National In-Store Advanta 38,808
Chesterfield 21,519
USBancorp 80,918
LPI 45,691 186,936
DAS Xxxx Xxxx Water Factory Systems 2,026 2,026
DAS Interbrand Corp. Key Equipment Finance 493,379
Ford Motor Credit 32,883 526,262
DAS U30 Group Dryad 28,809 28,809
OMG ICON* JPMorgan Chase 1,348,598 1,348,598
OMG Novus Print Media Integris 70,298 70,298
---------- ----------
TOTAL $5,153,951 $5,153,951
========== ==========
In addition, Omnicom Capital Inc. has indebtedness outstanding under its
commercial paper program in the amount of $701,000,000 and indebtedness having a
maturity of one year or less with commercial banks in the amount of $50,000,000.
Omnicom Finance PLC has $30,000,000 of indebtedness outstanding under its
commercial paper program.
Omnicom Finance PLC also has indebtedness outstanding under the Amended
and Restated Credit Agreement dated as of May 10, 1996, and as subsequently
amended from time to time, among the Borrowers and certain financial
institutions.
----------
* This debt is unsecured. All other obligations are capital leases.
2
EXHIBIT A - FORM OF
PROMISSORY NOTE
U.S.$ Dated: , 200_
---------------------- -----------
FOR VALUE RECEIVED, the undersigned, [OMNICOM FINANCE INC., a Delaware
corporation][OMNICOM CAPITAL INC., a Connecticut corporation][OMNICOM FINANCE
PLC, a corporation organized under the laws of England and Wales], (the
"Borrower"), HEREBY PROMISES TO PAY to the order of _________________________
(the "Lender") for the account of its Applicable Lending Office on the
Termination Date (each as defined in the Credit Agreement referred to below) the
principal sum of U.S.$[amount of the Lender's Commitment in figures] or, if
less, the aggregate principal amount of the Advances made by the Lender to the
Borrower pursuant to the Three Year Credit Agreement dated as of November 14,
2002 among the Borrowers referred to therein (including the undersigned), the
Lender and certain other lenders parties thereto, Xxxxxxx Xxxxx Xxxxxx Inc. and
ABN AMRO Incorporated, as lead arrangers and book managers, ABN AMRO Bank N.V.,
as syndication agent, HSBC Bank USA, Wachovia Bank, National Association and
Societe Generale, as documentation agents, and Citibank, N.A. as Agent for the
Lender and such other lenders (as amended or modified from time to time, the
"Credit Agreement"; the terms defined therein being used herein as therein
defined) outstanding on the Termination Date.
The Borrower promises to pay interest on the unpaid principal amount of
each Advance from the date of such Advance until such principal amount is paid
in full, at such interest rates, and at such times, as are specified in the
Credit Agreement.
Both principal and interest in respect of each Advance (i) in Dollars are
payable in lawful money of the United States of America to the Agent at its
account maintained at 000 Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, in same
day funds and (ii) in any Committed Currency are payable in such currency at the
applicable Payment Office in same day funds. Each Advance owing to the Lender by
the Borrower pursuant to the Credit Agreement, and all payments made on account
of principal thereof, shall be recorded by the Lender and, prior to any transfer
hereof, endorsed on the grid attached hereto which is part of this Promissory
Note.
This Promissory Note shall be governed by, and construed in accordance
with, the laws of the State of New York.
This Promissory Note is one of the Notes referred to in, and is entitled
to the benefits of, the Credit Agreement. The Credit Agreement, among other
things, (i) provides for the making of Advances by the Lender to the Borrower
from time to time in an aggregate amount not to exceed at any time outstanding,
subject to Section 2.09(b) of the Credit Agreement, 103% of the Dollar amount
first above mentioned, the indebtedness of the Borrower resulting from each such
Advance being evidenced by this Promissory Note, (ii) contains provisions for
determining the Dollar Equivalent of Advances denominated in Committed
Currencies and (iii) contains provisions for acceleration of the maturity hereof
upon the happening of certain stated events and also for prepayments on account
of principal hereof prior to the maturity hereof upon the terms and conditions
therein specified.
[OMNICOM FINANCE INC.]
[OMNICOM CAPITAL INC.]
[OMNICOM FINANCE PLC]
By
-----------------------------
Title:
3
ADVANCES AND PAYMENTS OF PRINCIPAL
-----------------------------------------------------------------------------------------------------------------
Amount of
Date Amount of Principal Paid Unpaid Principal Notation
Advance or Prepaid Balance Made By
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4
EXHIBIT B - FORM OF NOTICE OF
BORROWING
Citibank, N.A., as Agent
for the Lenders parties
to the Credit Agreement
referred to below
Xxx Xxxxx Xxx
Xxx Xxxxxx, Xxxxxxxx 00000
[Date]
Attention: Bank Loan Syndications Department
Ladies and Gentlemen:
The undersigned, [Omnicom Finance Inc.][Omnicom Capital Inc.][Omnicom
Finance plc], (the "Borrower"), refers to the Three Year Credit Agreement, dated
as of November 14, 2002 (as amended or modified from time to time, the "Credit
Agreement", the terms defined therein being used herein as therein defined),
among the Borrowers referred to therein (including the undersigned), certain
Lenders parties thereto, Xxxxxxx Xxxxx Barney Inc. and ABN AMRO Incorporated, as
lead arrangers and book managers, ABN AMRO Bank N.V., as syndication agent, HSBC
Bank USA, Wachovia Bank, National Association and Societe Generale, as
documentation agents, and Citibank, N.A., as Agent for said Lenders, and hereby
gives you notice, irrevocably, pursuant to Section 2.02 of the Credit Agreement
that the undersigned hereby requests a Borrowing under the Credit Agreement, and
in that connection sets forth below the information relating to such Borrowing
(the "Proposed Borrowing") as required by Section 2.02(a) of the Credit
Agreement:
(i) The Business Day of the Proposed Borrowing is _______________,
200_.
(ii) The Type of Advances comprising the Proposed Borrowing is [Base
Rate Advances] [Eurocurrency Rate Advances].
(iii) The aggregate amount of the Proposed Borrowing is
$_______________][for a Borrowing in a Committed Currency, list currency
and amount of Borrowing].
[(iv) The initial Interest Period for each Eurocurrency Rate Advance
made as part of the Proposed Borrowing is _____ month[s]. [If nine or
twelve months is selected, specify alternate Interest Period of one, two,
three or six months.]
The undersigned hereby certifies that the following statements are true on
the date hereof, and will be true on the date of the Proposed Borrowing:
(A) the representations and warranties contained in Section 4.01 of
the Credit Agreement (except the representations set forth in the last
sentence of subsection (e) thereof and in subsection (f)(i) thereof)) are
correct, before and after giving effect to the Proposed Borrowing and to
the application of the proceeds therefrom, as though made on and as of
such date; and
(B) no event has occurred and is continuing, or would result from
such Proposed Borrowing or from the application of the proceeds therefrom,
that constitutes a Default.
Very truly yours,
[OMNICOM FINANCE INC.]
[OMNICOM CAPITAL INC.]
[OMNICOM FINANCE PLC]
By
----------------------------
Title:
2
EXHIBIT C - FORM OF
ASSIGNMENT AND ACCEPTANCE
Reference is made to the Three Year Credit Agreement dated as of November
14, 2002 (as amended or modified from time to time, the "Credit Agreement")
among Omnicom Finance Inc., Omnicom Capital Inc. and Omnicom Finance plc (the
"Borrowers"), Omnicom Group Inc. (the "Guarantor"), the Lenders (as defined in
the Credit Agreement), Xxxxxxx Xxxxx Xxxxxx Inc. and ABN AMRO Incorporated, as
lead arrangers and book managers, ABN AMRO Bank N.V., as syndication agent, HSBC
Bank USA, Wachovia Bank, National Association and Societe Generale, as
documentation agents, and Citibank, N.A., as agent for the Lenders (the
"Agent"). Terms defined in the Credit Agreement are used herein with the same
meaning.
The "Assignor" and the "Assignee" referred to on Schedule I hereto agree
as follows:
1. The Assignor hereby sells and assigns to the Assignee, and the Assignee
hereby purchases and assumes from the Assignor, an interest in and to the
Assignor's rights and obligations under the Credit Agreement as of the date
hereof equal to the percentage interest specified on Schedule 1 hereto of all
outstanding rights and obligations under the Credit Agreement. After giving
effect to such sale and assignment, the Assignee's Commitment and the amount of
the Advances owing to the Assignee will be as set forth on Schedule 1 hereto.
2. The Assignor (i) represents and warrants that it is the legal and
beneficial owner of the interest being assigned by it hereunder and that such
interest is free and clear of any adverse claim; (ii) makes no representation or
warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with the Credit Agreement
or the execution, legality, validity, enforceability, genuineness, sufficiency
or value of the Credit Agreement or any other instrument or document furnished
pursuant thereto; (iii) makes no representation or warranty and assumes no
responsibility with respect to the financial condition of any Loan Party or the
performance or observance by any Loan Party of any of its obligations under the
Credit Agreement or any other instrument or document furnished pursuant thereto;
and (iv) attaches the Note[, if any,] held by the Assignor [and requests that
the Agent exchange such Note for a new Note payable to the order of [the
Assignee in an amount equal to the Commitment assumed by the Assignee pursuant
hereto or new Notes payable to the order of the Assignee in an amount equal to
the Commitment assumed by the Assignee pursuant hereto and] the Assignor in an
amount equal to the Commitment retained by the Assignor under the Credit
Agreement[, respectively,] as specified on Schedule 1 hereto].
3. The Assignee (i) confirms that it has received a copy of the Credit
Agreement, together with copies of the financial statements referred to in
Section 4.01 thereof and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Assignment and Acceptance; (ii) agrees that it will, independently and without
reliance upon the Agent, the Assignor or any other Lender and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under the Credit
Agreement; (iii) confirms that it is an Eligible Assignee; (iv) appoints and
authorizes the Agent to take such action as agent on its behalf and to exercise
such powers and discretion under the Credit Agreement as are delegated to the
Agent by the terms thereof, together with such powers and discretion as are
reasonably incidental thereto; (v) agrees that it will perform in accordance
with their terms all of the obligations that by the terms of the Credit
Agreement are required to be performed by it as a Lender; and (vi) attaches any
U.S. Internal Revenue Service or U.K. Inland Revenue forms required under
Section 2.13 of the Credit Agreement.
4. Following the execution of this Assignment and Acceptance, it will be
delivered to the Agent for acceptance and recording by the Agent. The effective
date for this Assignment and Acceptance (the "Effective Date") shall be the date
of acceptance hereof by the Agent, unless otherwise specified on Schedule 1
hereto.
5. Upon such acceptance and recording by the Agent, as of the Effective
Date, (i) the Assignee shall be a party to the Credit Agreement and, to the
extent provided in this Assignment and Acceptance,
have the rights and obligations of a Lender thereunder and (ii) the Assignor
shall, to the extent provided in this Assignment and Acceptance, relinquish its
rights and be released from its obligations under the Credit Agreement.
6. Upon such acceptance and recording by the Agent, from and after the
Effective Date, the Agent shall make all payments under the Credit Agreement and
the Notes in respect of the interest assigned hereby (including, without
limitation, all payments of principal, interest and facility fees with respect
thereto) to the Assignee. The Assignor and Assignee shall make all appropriate
adjustments in payments under the Credit Agreement and the Notes for periods
prior to the Effective Date directly between themselves.
7. This Assignment and Acceptance shall be governed by, and construed in
accordance with, the laws of the State of New York.
8. This Assignment and Acceptance may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement. Delivery of an executed
counterpart of Schedule 1 to this Assignment and Acceptance by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment
and Acceptance.
IN WITNESS WHEREOF, the Assignor and the Assignee have caused Schedule 1
to this Assignment and Acceptance to be executed by their officers thereunto
duly authorized as of the date specified thereon.
2
Schedule 1
to
Assignment and Acceptance
Percentage interest assigned: _____%
Assignee's Commitment: $______
Aggregate outstanding principal amount of Advances assigned: $______
Principal amount of Note payable to Assignee: $______
Principal amount of Note payable to Assignor: $______
Effective Date*: _______________, 200_
[NAME OF ASSIGNOR], as Assignor
By __________________________
Title:
Dated: _______________, 200_
[NAME OF ASSIGNEE], as Assignee
By __________________________
Title:
Dated: _______________, 200_
Domestic Lending Office:
[Address]
Eurocurrency Lending Office:
[Address]
----------
* This date should be no earlier than five Business Days after the delivery
of this Assignment and Acceptance to the Agent.
3
Accepted [and Approved]** this
___________ day of ___________, 200_
CITIBANK, N.A., as Agent
By _____________________________
Title:
[Approved this __________ day
of _______________, 200_
OMNICOM GROUP INC.
By _____________________________]*
Title:
----------
** Required if the Assigness is an Eligible Assignee solely by reason of
clause (iii) of the Definition of "Eligible Assigness".
* Required if the Assigness is an Eligible Assignee solely by reason of
clause (iii) of the definition of "Eligible Assigness".
4
EXHIBIT D-1 - FORM OF
OPINION OF NEW YORK COUNSEL
FOR THE LOAN PARTIES
[Effective Date]
To each of the Lenders parties
to the Three Year Credit Agreement dated
as of November 14, 2002
among Omnicom Finance Inc.,
Omnicom Capital Inc. and Omnicom
Finance plc, (the "Borrowers"),
said Lenders and Citibank, N.A.,
as Agent for said Lenders, and
to Citibank, N.A., as Agent
Omnicom Finance Inc., Omnicom Capital Inc. and Omnicom Finance plc
Ladies and Gentlemen:
This opinion is furnished to you pursuant to Section 3.01(h)(iv) of the
Three Year Credit Agreement, dated as of _______________, 2002 (the "Credit
Agreement"), among Omnicom Finance Inc. ("OFI"), Omnicom Capital Inc. ("OCI")
and Omnicom Finance plc ("OFP", and, collectively with OFI and OCI, the
"Borrowers"), Omnicom Group Inc. (the "Guarantor"), the Lenders parties thereto,
Xxxxxxx Xxxxx Xxxxxx Inc. and ABN AMRO Incorporated, as lead arrangers and book
managers, ABN AMRO Bank N.V., as syndication agent, HSBC Bank USA, Wachovia
Bank, National Association and Societe Generale, as documentation agents, and
Citibank, N.A., as Agent for said Lenders. Capitalized terms used herein without
definition are used as defined in the Credit Agreement.
We have acted as New York counsel for the Loan Parties in connection with
the preparation, execution and delivery of the Credit Agreement.
In connection with this opinion, we have examined originals or copies
(including conformed copies) of the following documents:
(1) The Credit Agreement.
(2) The documents furnished by the Loan Parties pursuant to Article
III of the Credit Agreement.
(3) The Certificate of Incorporation and all amendments thereto (the
"Charter") of each of OFI, OCI and the Guarantor (collectively, the "US
Loan Parties"), as certified as of a recent date by a public official of
the state of its incorporation.
(4) The by-laws and all amendments thereto (the "By-laws") of each
US Loan Party, as certified to us by each US Loan Party.
(5) A certificate of the Secretary of State of Delaware, dated
_______________, 2002, attesting to the continued corporate existence and
good standing of OFI in that State as of the date thereof.
(6) A certificate of the Secretary of State of Connecticut, dated
_____________, 2002, attesting to the continued corporate existence and
good standing of OCI in that State as of the date thereof.
(7) A certificate of the Secretary of State of New York, dated
________________, 2002, attesting to the continued corporate existence and
good standing of the Guarantor in that State as of the date thereof.
In addition, we have examined originals or copies, certified or otherwise
identified to our satisfaction, of such records, instruments and other
documents, and have made such other investigations, as we have deemed relevant
and necessary as a basis for the opinions hereinafter set forth.
For the purposes hereof, we have assumed, with your permission and without
independent verification of any kind: (a) that the signatures of persons signing
all documents in connection with which this opinion is rendered are genuine and
authorized; (b) the legal capacity of all natural persons; (c) that all
documents submitted to us as originals or duplicate originals are authentic; and
(d) that all documents submitted to us as copies, whether certified or not,
conform to authentic original documents. As to questions of fact relevant to
this opinion, we have assumed, without independent investigation or verification
of any kind, the accuracy of the representations and warranties of the Loan
Parties in the Credit Agreement and have relied upon certificates and oral or
written statements and other information of public officials, and officers and
representatives of the Loan Parties. For purposes of the opinion set forth in
the paragraph numbered 1 below, we have relied solely upon copies of good
standing certificates as certified by public officials as of the dates and in
the jurisdictions listed on Annex I hereto.
In rendering the opinions expressed below, we have assumed, with your
permission and without any independent investigation or verification of any
kind, that: OFP has been duly organized and is validly existing and in good
standing under the laws of its jurisdiction of incorporation and is duly
qualified in each other jurisdiction in which the conduct of its business or the
ownership of its property makes such qualification necessary; (ii) OFP has full
power and authority to execute, deliver and perform the Credit Documents to
which it is a party; (iii) the execution, delivery and performance of the Credit
Documents by OFP have been duly authorized by all requisite corporate action on
the part of OFP; (iv) the Credit Documents have been duly executed and delivered
by OFP; and (v) the execution, delivery and performance of the Credit Documents
by OFP do not and will not violate the Charter, By-laws or other organizational
documents of OFP. We have further assumed, with your permission and without any
independent investigation or verification of any kind, that the Credit Agreement
constitutes the valid and legally binding obligation of each Person party
thereto (other than the US Loan Parties and OFP), enforceable against such
Person in accordance with its terms. Furthermore, in giving the opinions set
forth in paragraphs numbered 4, 5 and 6 below, we express no opinion as to state
securities or blue sky laws.
Based upon the foregoing, and subject to the limitations set forth herein,
we are of the opinion that:
1. Each US Loan Party (i) is a validly existing corporation in good
standing under the laws of the jurisdiction of its incorporation listed on Annex
I hereto and (ii) has the corporate power and authority to own its property and
assets and to transact the business in which it is engaged.
2. Each US Loan Party has the corporate power to execute, deliver and
perform the terms and provisions of the Credit Agreement and the Notes to be
delivered by it and has taken all necessary corporate action to authorize the
execution, delivery and performance of the Credit Agreement and the Notes to be
delivered by it. Each US Loan Party has duly executed and delivered the Credit
Agreement and the Notes to be delivered by it.
3. The Credit Agreement constitutes the legal, valid and binding
obligation of each Loan Party enforceable against such Loan Party in accordance
with its terms. Each Note to be delivered by a Loan Party will constitute the
legal, valid and binding obligation of such Loan Party enforceable against such
Loan Party in accordance with its terms.
4. Neither the execution and delivery, nor the performance, by any US Loan
Party of the Credit Agreement or the Notes to be delivered by it, nor compliance
by such US Loan Party with the terms and provisions thereof, (i) will contravene
any provision of any law, statute, rule or regulation (including, without
limitation, Regulation X of the Board of Governors of the Federal Reserve
System) of the United States of America or the State of New York applicable to
such US Loan Party or (ii) will violate any provision of the Charter or By-Laws
of such US Loan Party.
5. Neither the execution and delivery, nor the performance, by OFP of the
Credit Agreement and the Notes to be delivered by it, nor compliance by it with
the terms and provisions thereof, will contravene any provision of any law,
statute, rule or regulation (including, without limitation, Regulation X of the
Board of Governors of the Federal Reserve System) of the United States of
America or the State of New York applicable to OFP.
6. No order, consent, approval, license, authorization or validation of,
or filing, recording or registration with (except as have been obtained or made
on or prior to the date hereof), or exemption by, any governmental or public
body or authority of the United States of America, or the State of New York,
applicable to any Loan Party is required to authorize, or is required in
connection with, (i) the execution, delivery and performance by any Loan Party
of the Credit Agreement and the Notes to be delivered by it or (ii) the
enforceability of the Credit Agreement and the Notes to be delivered by it in
accordance with their terms against such Loan Party.
7. The choice of New York law as the governing law of the Credit Agreement
and the Notes is, under the laws of the State of New York, a valid choice of
law.
8. The consent by each Loan Party in Section 9.12 of the Credit Agreement
to the jurisdiction of courts sitting in the State of New York is a valid
consent to the jurisdiction of such courts.
Our opinions are subject to the qualifications that:
A. The enforceability of the Credit Agreement and the Notes is subject to
and may be limited by bankruptcy, insolvency, reorganization, fraudulent
conveyance, moratorium, or other similar laws relating to or affecting the
rights of creditors generally (including such as may deny giving effect to
waivers of debtors' or guarantors' rights), and the application of general
principles of equity (regardless of whether considered in a proceeding in equity
or at law), including, without limitation, (i) the possible unavailability of
specific performance, injunctive relief or any other equitable remedy and (ii)
concepts of materiality, reasonableness, good faith and fair dealing.
Accordingly, no opinion is given herein as to (i) the availability of the right
to accelerate any obligation and certain remedies provided for in the Credit
Agreement in the event of a nonmaterial default, or (ii) the enforceability of
any provision of the Credit Agreement relating to cumulation of remedies or
waiving the remedy of specific performance, or the waiver of debtors' rights.
B. We express no opinion as to the enforceability of any contractual
provision in the Credit Agreement as to waiver of any procedural right,
including, without limitation, (i) the first sentence of Section 9.12(a) of the
Credit Agreement insofar as such sentence relates to the subject matter
jurisdiction of a federal court of the United States of America sitting in New
York City to adjudicate any controversy related to any of the Credit Documents,
and (ii) the waiver of inconvenient forum set forth in Section 9.12(b) of the
Credit Agreement with respect to proceedings in a federal court of the United
States of America sitting in New York City.
C. We express no opinion as to the enforceability of any contractual
provision in the Credit Documents relating to indemnification, including,
without limitation, with respect to the enforceability of Section 9.04 of the
Credit Agreement, to the extent that these may be limited (i) in the case of
litigation against any Loan Party which is decided adversely to the person
claiming indemnification or in a case involving a claim of indemnification for
attorneys' fees, (ii) by laws rendering unenforceable indemnification contrary
to federal or state securities laws and the public policy underlying such laws,
or (iii) by laws limiting the enforceability of provisions exculpating or
exempting a party, or requiring indemnification of a party, for liability for
its own action or inaction, to the extent the action or inaction involves gross
negligence, recklessness, willful misconduct or unlawful conduct.
D. Furthermore, no opinion is given herein as to:
(i) Section 7.02 of the Credit Agreement, to the extent that it
relates to action contemplated by Section 7.02(b) of the Credit Agreement
taken without the Guarantor's consent, which may not be enforceable to the
extent that the Guaranteed Obligations are materially altered; or
(ii) the enforceability of the provisions of Section 9.11 of the
Credit Agreement (A) to the extent that a judgment not in (1) Dollars is
obtained in respect of the Credit Agreement in a jurisdiction other than
the United States of America or (2) Committed Currencies is obtained in
respect of the Credit Agreement in a jurisdiction other than a
member-state of the European Union and the respective Loan Party pays such
judgment or (B) insofar as those provisions contemplate an alternative or
additional cause of action for a claim that may have merged with claims
covered by an earlier judgment; or
(iii) Section 7.02(h) of the Credit Agreement, to the extent it
relates to any waiver of an applicable statute of limitations; or
(iv) the enforceability of the right of setoff provided for in
Section 9.05 of the Credit Agreement (A) in respect of an interest under
the Credit Agreement purchased by a Lender pursuant to Section 2.14 or
9.07 of the Credit Agreement, to the extent the relevant purchase does not
give rise to a direct obligation of any Borrower to such Lender, or (B)
insofar as that right relates to setoff of unmatured obligations under the
Credit Agreement or of obligations owed to any Loan Party by an Affiliate
of a Lender or by an Affiliate of the Administrative Agent.
We are members of the Bar of the State of New York and express no opinion
as to the laws of any jurisdiction other than those of the laws of the State of
New York, the General Corporation Law of the State of Delaware and the federal
laws of the United States of America. Our opinions set forth in paragraph
numbers 1, 2 and 4(ii) above, as they apply to OCI, are based on our review of
the Connecticut Business Corporation Act as reported by 33 Conn. Gen. Stat. Xxx.
ss. 33-600 et seq. (West 1997, 2002 supp.) to be in effect on the date of this
opinion letter.
This opinion is rendered solely to you by us as special counsel to the
Loan Parties in connection with the transactions contemplated by the Credit
Agreement and the Notes. Each Lender (and its successors and permitted assigns)
may rely upon this opinion in connection with those transactions. This opinion
may not be relied upon in any other manner or for any other purpose, or
furnished or relied upon by any other person, without our prior written consent.
The information set forth herein is as of the date of this letter, and we
disclaim any undertaking to advise you of changes which thereafter may be
brought to our attention.
Very truly yours,
ANNEX I
Type and Date of
Name and Jurisdiction Certificate in Jurisdiction
of Incorporation of Incorporation
--------------------------------- ----------------------------------
Omnicom Finance Inc. (Delaware) Good Standing - ____________, 2002
Omnicom Capital Inc. (Connecticut) Legal Existence -___________, 2002
Omnicom Group Inc. (New York) Subsisting - ____________, 2002
EXHIBIT D-2 - FORM OF
OPINION OF ENGLISH
COUNSEL FOR OFP
To each of the Lenders parties to the Credit Agreement
referred to below and to Citibank, N.A. as Agent
Our Ref MHL/539576
November 2002
Dear Sirs
Omnicom Finance plc
1 Introduction
We have acted as special English lawyers for Omnicom Finance plc, a
company incorporated and existing under the laws of England and
Wales ("OFP"), in connection with its authorisation of the execution
and delivery of the following documents (together, the "Credit
Documents"):
1.1 the 364-Day Credit Agreement dated as of November 2002 made among
Omnicom Finance Inc., Omnicom Capital Inc. and OFP (collectively,
the "Borrowers"), Omnicom Group Inc. as Guarantor, the initial
Lenders named therein, Xxxxxxx Xxxxx Barney Inc. as lead arranger
and book manager and Citibank, N.A. as Administrative Agent for the
Lenders (the "Credit Agreement"); and
1.2 the Notes of OFP, if any, to be delivered pursuant to Section
2.15(a) of the Credit Agreement.
We have been asked by OFP to give you this opinion for the purposes
of Section 3.01(h)(iv) of the Credit Agreement and we have taken
instructions in this regard solely from OFP. You should be aware
that our sole involvement with this transaction has been in giving
this opinion and we have not been involved in the negotiation of the
Credit Documents or in any other aspect of the transaction.
Terms defined in the Credit Agreement have the same meanings when
used in this opinion.
2 English law opinion
This opinion is limited to English law as applied by the English
courts as at the date of this letter and is given on the basis that
it will be governed by and construed in accordance with English law.
We have made no investigation of the laws of any jurisdiction other
than those of England and we do not express or imply any opinion as
to the laws of any jurisdiction other than those of England. We
express no opinion as to matters of fact.
3 Documents examined
For the purpose of this opinion we have examined the following
documents:
3.1 a copy of the Credit Agreement (including the Exhibits thereto)
bearing a signature on behalf of OFP which is stated therein to be
that of one of the persons identified in the certificate referred to
at paragraph 3.4 below as a Director of OFP;
3.2 a copy of the certificate given by OFP pursuant to Section 3.01 (h)
(ii) and (iii) of the Credit Agreement and having attached thereto,
inter alia:
3.2.1 copies of the certificate of incorporation and Memorandum and
Articles of Association of OFP, each certified as true, complete and
up-to-date as at the date hereof by a Director of OFP; and
3.3 a copy of the minutes of a meeting of the Board of Directors of OFP
held on 7 November 2002, the resolutions set out in such minutes
having been certified as true, complete and still in force as at the
date hereof by a Director of OFP; and
3.4 a further certificate addressed to us from a director of OFP, a copy
of which is attached hereto (the "Certificate").
4 Enquiries made
For the purpose of giving this opinion, we have:
4.1 made an oral enquiry by telephone of the Central Registry of Winding
Up Petitions in respect of OFP on 11 November 2002; and
4.2 arranged for a review of the microfiche relating to OFP kept at the
Companies Registration Office in London and obtained on 11 November
2002.
Except for the documents listed in paragraph 3 above and the matters
referred to in this paragraph 4, we have not examined any contracts
or other documents entered into by or affecting any party to the
Credit Documents nor any corporate records of OFP and we have not
made any other enquiries or searches concerning OFP.
5 Assumptions
In examining the documents referred to in paragraph 3 above, in
making the enquiries referred to in paragraph 4 above and in giving
this opinion we have assumed without further enquiry:
5.1 the genuineness of all signatures and seals on documents, the
conformity to the originals of all documents supplied to us as
copies and the authenticity of the originals of such documents;
5.2 that the information disclosed by our oral enquiry at the Central
Registry of Winding-up Petitions was then accurate and that such
enquiry did not fail to disclose any matters which it should have
disclosed and which are relevant for the purposes of this opinion
and since the time of such enquiry there has been no alteration in
the status or condition of OFP as represented by the Clerk at the
Registry;
5.3 that the file of records maintained at the Companies Registration
Office concerning OFP, and reproduced on microfiche for public
inspection, was complete, accurate and up-to-date at the time of the
review referred to in paragraph 4.2 above and that there has been no
alteration in the status or condition of OFP as represented by the
microfiche;
5.4 that OFP has not passed a voluntary winding-up resolution and that
no petition has been presented to or order made by a court for the
winding-up or dissolution of OFP or the appointment of an
administrator of OFP and that no receiver or administrator has been
appointed in respect of OFP or any of its assets which in any such
case has not been revealed by the enquiries referred to in paragraph
4 above;
5.5 (in relation to paragraph 6.7 only, if relevant) that each of the
parties to the Credit Documents (other than OFP) is in existence and
has full corporate capacity, right, power and authority to enter
into and to exercise its rights and perform its obligations under
the Credit Documents;
5.6 (in relation to paragraph 6.7 only, if relevant) that under the laws
of the State of New York, USA, each of the Credit Documents
constitutes valid, legally binding and enforceable obligations of
the parties thereto, including OFP;
5.7 that any copies certified and all documents dated earlier than the
date of this letter on which we have expressed reliance remain
accurate, complete and in full force and effect at the date of this
letter;
5.8 that there are no provisions of the laws of any applicable
jurisdiction outside England which would be contravened by the
execution and delivery of the Credit Documents and that, insofar as
any obligation under the Credit Documents is to be performed in any
jurisdiction outside England, its performance will not be illegal or
contrary to public policy by virtue of the laws of that
jurisdiction;
5.9 the accuracy of the statements contained in the Certificate; and
5.10 (as regards our opinions in paragraphs 6.5 and 6.6 below) that all
Advances made to OFP pursuant to the Credit Agreement will be made
by persons who are (i) authorised persons (within the meaning of the
Financial Services and Markets Act 2000) who have permission to
accept deposits or to effect or carry out contracts of insurance, or
(ii) acting in the course of carrying on a business consisting
wholly or to a significant extent of lending money, or (iii)
otherwise described in paragraph 6(1) of the Financial Services and
Markets Xxx 0000 (Regulated Activities) Order 2001.
6 Opinion
Based upon and subject to the foregoing, and subject to the
qualifications and reservations mentioned below and to any matters
not disclosed to us, we are of the following opinion.
6.1 OFP (i) is duly incorporated and validly existing as a public
limited company under the laws of England and Wales; (ii) has the
power and authority to own its property and assets and to transact
the business in which it is engaged (as such property, assets and
business are described in the Certificate); and (iii) is not
required to be qualified as a "foreign corporation" in order to do
business within England and Wales.
6.2 The enquiry and review referred to in paragraph 4 above did not
reveal any appointment of, or resolution or petition to appoint, a
liquidator, administrator or administrative receiver of OFP, or that
OFP is delinquent in filing its statutory annual directors' report
and accounts, or any notification by the Registrar of Companies of
intention to strike OFP's name off the Register of Companies.
6.3 OFP has the corporate power to execute, deliver and perform the
terms and provisions of each of the Credit Documents to which it is
expressed to be a party and to borrow under the Credit Agreement and
has taken all necessary corporate action to authorise the execution,
delivery and
performance by it of each of such Credit Documents and borrowing by
it under the Credit Agreement.
6.4 OFP has validly executed the Credit Agreement. When the Notes are
signed by one of the Directors of OFP, such Notes will have been
validly executed by OFP.
6.5 The execution, delivery and performance by OFP of the Credit
Documents to which it is expressed to be a party, the compliance by
it with the terms and provisions thereof and the borrowing by it
under the Credit Agreement will not (i) contravene any provision of
any law, statute, rule or regulation of England and Wales or (ii)
violate any provision of the memorandum and articles of association
of OFP as currently in force.
6.6 Under English law, no order, consent, approval, licence,
authorisation or validation of, or filing, recording or registration
with, or exemption by, any governmental or public body or authority
of or in England and Wales (except such as have been obtained or
made prior to the date hereof) is required to authorise, or is
required in connection with, (i) the execution, delivery and
performance by OFP of any Credit Document to which OFP is expressed
to be a party, (ii) the borrowing by OFP under the Credit Agreement
or (iii) the enforceability of any such Credit Document against OFP.
6.7 The English courts would recognize and give effect to the choice of
the laws of the State of New York, USA, as the governing law of the
Credit Documents.
6.8 The submission to the jurisdiction of the courts of the State of New
York, USA, by OFP in the Credit Documents is within the corporate
powers of OFP and does not contravene any law of England.
6.9 A judgment rendered by a court in the United States has no direct
operation in England but may be enforceable by action or
counterclaim or be recognised by the English courts as a defence to
an action or as conclusive of an issue in an action. For a judgment
rendered by a court in the United States to be enforced by the
English courts it would be necessary to prove to the satisfaction of
the English court that:-
(i) the United States court had jurisdiction;
(ii) the judgment is final and conclusive; and
(iii) the judgment is for a fixed sum.
For a defendant to such an action to have a good defence, it would
be necessary for him to prove that:-
(1) the judgment was obtained by fraud; or
(2) the judgment is contrary to English public policy; or
(3) the judgment involves the enforcement of foreign public, penal
or revenue laws; or
(4) enforcement would be contrary to section 5 of the Protection
of Trading Xxxxxxxxx Xxx 0000 (which prohibits the enforcement
of judgments for multiple damages and judgments based on a
provision or rule of law specified by the Secretary of State
as being concerned with the prohibition or regulation of
anti-competitive arrangements or with the promotion of
competition); or
(5) the judgment was obtained in a manner contrary to the rules of
natural justice; or
(6) the judgment involves a matter previously determined by an
English court; or
(7) the United States action was brought in breach of agreement
for settlement of disputes.
The question of whether enforcement of a judgment is contrary to
English public policy (see (2) above) depends on the circumstances
of the transaction as a whole and the subsequent conduct of the
litigation in the United States and English proceedings. Solely on
the basis of our examination of the documents referred to in
paragraphs 3.1 to 3.3 (inclusive) above, we are not aware of any
reason why enforcement of a judgment to pay a sum of money due under
the Credit Agreement would be contrary to English public policy as
at the date of this letter.
7 Qualifications and reservations
Our opinion is subject to the following qualifications and
reservations.
7.1 We express no opinion on the effectiveness of any of the provisions
of the Credit Documents, since the Credit Documents are governed by
New York law.
7.2 The obligations of OFP under the Credit Documents will be subject to
any laws from time to time in effect relating to insolvency,
administration, bankruptcy, liquidation, reorganisation, moratorium
or similar laws affecting creditors' rights generally and we express
no opinion on such laws.
7.3 The enquiry at the Central Registry of Winding-up Petitions referred
to in paragraph 4.1 above relates only to a compulsory winding-up
and is not conclusively capable of revealing whether or not a
winding-up petition in respect of a compulsory winding-up has been
presented since details of the petition may not have been entered on
the records of the Central Registry of Winding-up Petitions
immediately or, in the case of a petition presented to a County
Court, may not have been notified to the Central Registry and
entered on such records at all, and the response to an enquiry only
relates to the period of six months prior to the date when the
enquiry was made.
7.4 The microfiche at the Companies Registration Office referred to in
paragraph 4.2 above is not conclusively capable of revealing whether
or not certain events have occurred, including the commencement of
winding up or the making of an administration order or the
appointment of a receiver, administrative receiver, administrator or
liquidator, as notice of these matters may not be filed with the
Registrar of Companies immediately and, when filed, may not be
entered on the public microfiche of the relevant company
immediately.
7.5 The choice of a particular law to govern an agreement or document
would not be recognised or upheld by the English Courts if the
choice of law was not bona fide and legal or if there were reasons
for avoiding the choice of law on the grounds of public policy. The
choice of a particular law would not be upheld, for example, if it
was made with the intention of evading the law of the jurisdiction
with which the contract had its most substantial connection and
which, in the absence of the chosen law, would have invalidated the
contract or been inconsistent with it. We have not made any
investigation into the bona fides of the parties to the Credit
Documents; however we are not aware of any reason for an English
Court to find that the choice of New York law to govern the Credit
Documents is not bona fide or not legal, nor are we aware of any
English public policy that would be violated by the enforcement of
the Credit Documents in accordance with their respective terms.
7.6 We have not considered the particular circumstances of any party to
the Credit Documents (save OFP to the extent expressly stated
herein) or the effect of such particular circumstances on the Credit
Documents or the transactions contemplated thereby.
7.7 English courts can give judgments in a currency other than sterling
if, subject to the terms of the contract, that currency is the
currency which most fairly expresses the plaintiff's loss.
8 Reliance
This opinion may be relied on solely by the addressees and may not
be regarded as addressed to or relied on by any other person (save
the addressees' successors and assigns) without our prior written
consent. It is strictly limited to the matters stated herein and
does not extend to, and is not to be read as extending by
implication to, any other matter in connection with the Credit
Documents.
Yours faithfully
Macfarlanes
EXECUTION COPY
U.S. $800,000,000
THREE YEAR CREDIT AGREEMENT
Dated as of November 14, 2002
Among
OMNICOM FINANCE INC.
OMNICOM CAPITAL INC.
and
OMNICOM FINANCE PLC
as Borrowers
OMNICOM GROUP INC.
as Guarantor
THE INITIAL LENDERS NAMED HEREIN
as Initial Lenders
XXXXXXX XXXXX XXXXXX INC.
and
ABN AMRO INCORPORATED
as Lead Arrangers and Book Managers
ABN AMRO BANK N.V.
as Syndication Agent
HSBC BANK USA
WACHOVIA BANK, NATIONAL ASSOCIATION
and
SOCIETE GENERALE
as Documentation Agents
and
CITIBANK, N.A.
as Administrative Agent
TABLE OF CONTENTS
ARTICLE I
SECTION 1.01. Certain Defined Terms 1
SECTION 1.02. Computation of Time Periods 11
SECTION 1.03. Accounting Terms 11
ARTICLE II
SECTION 2.01. The Advances 11
SECTION 2.02. Making the Advances 11
SECTION 2.03. Fees 12
SECTION 2.04. Optional Termination or Reduction
of the Commitments 12
SECTION 2.05. Repayment of Advances 12
SECTION 2.06. Interest on Advances 12
SECTION 2.07. Interest Rate Determination 13
SECTION 2.08. Optional Conversion of Advances 14
SECTION 2.09. Prepayments of Advances 15
SECTION 2.10. Increased Costs 15
SECTION 2.11. Illegality 16
SECTION 2.12. Payments and Computations 16
SECTION 2.13. Taxes 17
SECTION 2.14. Sharing of Payments, Etc. 20
SECTION 2.15. Evidence of Debt 20
SECTION 2.16. Use of Proceeds 20
SECTION 2.17. Increase in the Aggregate Commitments 21
ARTICLE III
SECTION 3.01. Conditions Precedent to Effectiveness
of Section 2.01 22
SECTION 3.02. Conditions Precedent to Each Borrowing. 23
SECTION 3.03. Determinations Under Section 3.01 23
ARTICLE IV
SECTION 4.01. Representations and Warranties of the Guarantor 24
ARTICLE V
SECTION 5.01. Affirmative Covenants 25
SECTION 5.02. Negative Covenants 27
SECTION 5.03. Financial Covenants 29
ARTICLE VI
SECTION 6.01. Events of Default 29
ARTICLE VII
SECTION 7.01. Guaranty 31
SECTION 7.02. Guaranty Absolute 31
SECTION 7.03. Waivers and Acknowledgements 32
SECTION 7.04. Subrogation 32
SECTION 7.05. Subordination 33
SECTION 7.06. Continuing Guaranty; Assignments 33
ARTICLE VIII
SECTION 8.01. Authorization and Action 34
SECTION 8.02. Agent's Reliance, Etc. 34
SECTION 8.03. Citibank and Affiliates 34
SECTION 8.04. Lender Credit Decision 35
SECTION 8.05. Indemnification 35
SECTION 8.06. Successor Agent 35
SECTION 8.07. Sub-Agent 35
SECTION 8.08. Other Agents. 35
ARTICLE IX
SECTION 9.01. Amendments, Etc. 36
SECTION 9.02. Notices, Etc. 36
SECTION 9.03. No Waiver; Remedies 36
SECTION 9.04. Costs and Expenses 36
SECTION 9.05. Right of Set-off 37
SECTION 9.06. Binding Effect 37
SECTION 9.07. Assignments and Participations 38
SECTION 9.08. Confidentiality 39
SECTION 9.09. Governing Law 39
SECTION 9.10. Execution in Counterparts 39
SECTION 9.11. Judgment 40
SECTION 9.12. Jurisdiction, Etc. 40
SECTION 9.13. Substitution of Currency 40
SECTION 9.14. Waiver of Jury Trial 42
Schedules
---------
Schedule I - List of Applicable Lending Offices
Schedule 3.01(b) - Disclosed Litigation
Schedule 5.02(a) - Existing Liens
Schedule 5.02(d) - Existing Debt
Exhibits
--------
Exhibit A - Form of Note
Exhibit B - Form of Notice of Borrowing
Exhibit C - Form of Assignment and Acceptance
Exhibit D-1 - Form of Opinion of New York Counsel for the Loan Parties
Exhibit D-2 - Form of Opinion of English Counsel for OFP
